Preparing SWISS Gate for the Internationalisation into Germany
The demand for hemp and CBD in Switzerland, Germany and the EU is steadily increasing. Today's society is looking for methods to monitor their well-being. Therefore, the interest of consumers in CBD and hemp products from the food and beauty sectors has led to a growth in demand and product supply
Senthuran Somasundaram & Sven Wagner, 2022
Bachelor Thesis, SWISS Gate AG
Betreuende Dozierende: Michael Jeive
Keywords: Internationalisation, Switzerland, Germany, Budget Plan, Partners, Location, CBD, Hemp
SWISS Gate AG is a company located in Bachenbülach ZH. On cbuy.ch, the company's website, they sell Organic Hemp Food and Wellness and Health products with CBD. Next year they are planning to expand into the German market as a first step and the EU market at a later stage. This paper aims to show SWISS Gate the possibilities and to investigate the German market in the field of hemp food and CBD wellness and health. A market analysis, a location for the distribution warehouse and a budget plan for cost estimation are conducted. Further, ways to contact retailers and distributors are explored.
The expansion to Germany for the CBD and hemp products needs an analysis of the market. The Business Model Canvas and the PEST Model were applied to find the brand placement and process structure for the brand Herbalea in Germany. They were completed with data from statistics sources. Interviews with Switzerland Global Enterprise and Digitec Galaxus AG were conducted. Data on prices of competitor products and location evaluation were performed. Customs tariffs for CBD-containing products were gathered. As a result, a budget for the expansion was prepared.
A classical challenge when expanding from Switzerland to Germany is the price adjustment. SWISS Gate sells its products to Swiss customers at a price the client accepts. In Germany, the willingness to spend is significantly lower. Therefore, margin calculation, purchase price reduction from the manufacturer and negotiation for favourable contracts with distributors and Retailers are researched in this paper. It seems that CBD and Hemp are taking a significant role in the present time and going away from being a niche segment. Society sees the benefits of CBD and hemp products, and therefore the demand is consistently inclining.
Moreover, as interest in CBD has risen in recent years, it is vital to have a planned market expansion process and implement the relevant points appropriately. Furthermore, this analysis assists SWISS Gate to be able to use the strategies for further market entries later. The strengths and weaknesses will be shown to SWISS Gate. The firm can consult Switzerland Global Enterprise or a comparable institution to contact distributor experts and use the network to conduct the expansion successfully.
Studiengang: Business Administration International Management (Bachelor)
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