Halmstad University School of Business and Engineering Business Culture II VeniltonReinert

Marketing And Communication Plan
FALU RED PAINT

Friday, 14. Dec. 2012
Wan Ting Huang Tatjana Weber Jonathan Tran Quentin Peulot Cyril Albert Matthieu Fernandez

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Table des matières 1. Introduction (north country/ wood houses) ........................................................................ 3 1.1 Pestel analysis of Russia : ............................................................................................................ 5 1.2 Pestel analysis of Canada: ......................................................................................................... 12 2 Micro environment ............................................................................................................ 19 2.1 Brand ........................................................................................................................................ 19 2.2 Product ..................................................................................................................................... 20 2.3 Price ......................................................................................................................................... 21 2.4 Promotion ................................................................................................................................. 22 2.5 Place ......................................................................................................................................... 23 2.6 Competition on the Canadian market ........................................................................................ 24 2.7 Consumer ................................................................................................................................. 25 2.8 The Canadian Culture ................................................................................................................ 26 3 SWOT analysis .................................................................................................................... 29 3.1 Strengths : ................................................................................................................................ 29 3.2 Weaknesses : ............................................................................................................................ 29 3.3 Opportunities : .......................................................................................................................... 29 3.4 Threats : .................................................................................................................................... 29 4 Marketing Objectives ......................................................................................................... 30 5 Marketing strategy ............................................................................................................. 31 5.1 The 4 p’s in Sweden .................................................................................................................. 31 5.2 The 4 p’s in Canada .................................................................................................................. 37 5.3. Communication Objectives ...................................................................................................... 41 5.4 Communication strategies ........................................................................................................ 42 5.5 Creative ideas-­‐Emotional Appeals ............................................................................................. 45 5.6 Media strategies ....................................................................................................................... 48 5.7 Budget ...................................................................................................................................... 50

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1. INTRODUCTION (NORTH COUNTRY/ WOOD HOUSES)

Specialized in high resistance paint against cold since 1970, Fallu House is nowadays, famous all around Scandinavia. Actually one of the main brand of the market, Fallu House wants to diversify its market by internationalization of itself. Faced to big competitors on their home market, Fallu House has to choose a country to start its internationalization. Knowing that the company has products specialized in coldness, it is normal to choose a northern country. Implementing the company in a southern and warm country would have made absolutely no sense. Moreover, Fallu House can not really settle a brand in several countries at the same time, because of its limited resources. Then, it is necessary to choose the best country to establish. To make the settlement easier, it is better to choose an occidental country with a similar culture and modern infrastructure (as main and big distribution channel, potential distributors...) In order to determine the best country, it is possible to establish a “value board” in which each criteria represents point, and depending of the potential of each country, determining a final value. In this way, it is possible to determine precisely and logically the best country. A simple look to analyses of countries will not be enough precise to determine the most appropriate. Based on the hypothesis that the choice would be on an occident cold country, two countries seem to be more appropriated: Russia and Canada. After having reducing the “work field”, it is possible now to analyze in detailed Russia and Canada. To be sure not to forget any criteria, the “value board” will be based on the “PESTEL”.

First of all, our brand Fallu House is a leader brand. Moreover we want to keep a strong traditional and Swedish image. Indeed Fallu house is a company of red traditional paint, which is typically Swedish and well known. The brand sends a strong image linked to

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the environment, besides we want to respect the environment and to inculcate our customers this value for the environment as well. This aspect is also strongly linked to Sweden which is really wild country and where people know how important the environment is. Nevertheless we don’t want to lock ourselves in this old image of traditional company. Indeed keep the traditional point is important, however we also want to make this brand one of the most popular nowadays. People have to feel that used this brand give them the real sensation of Sweden, but also that this paint is a trend, a fashion that everybody acknowledges and that everybody knows, that this is not only an old traditional brand. Therefore Fallu House is really linked to its mother country, Sweden. Indeed all the values of Sweden are implemented in our company, in our main ideas. Traditionally, environment and respect are the more important terms in our company. In order to determine the best country, we analyze thanks to the PESTEL, which is a marketing tools which will able to know if country that we want to settle is ready to accept our product. Firstly, with Russia, located in East Europe, it is one of the biggest country of the world.

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1.1 PESTEL analysis of Russia :
In order to assess the both countries level accurately we used a value board pattern. It consists on giving a coefficient to every part and we then giving them a grad. (Further details in annexes)

Politic
Governmental politic Russia is a Federal Republic; the president is elected with direct universal vote for 6 years. The current president of the Russian federation is Vladimir Putin, representing the political party of the United Russia. Legislative power is represented by the federal assembly formed by the Douma (450 member elected for 4 years) and by the subjects of the federation (166 members called senators). Vladimir Poutine is the president since the 7th of May 2012. The president of the Douma is SergueïNarychkine and the council of the federation is preside by VelentinaMatvienko since September 2011. The political party of the United Russia and current party of the government has 64% of majority. Vladimir Putin wishes to verticalize the power to allow a consistent management with the others political organs. Fiscal and monetary politic The Russian fiscal code permits to determine the different taxes of Russia. The TVA is nowadays of 18%. The central bank of the federation of Russia was built in 1990, the currency is the Ruble and this bank has to face the current crisis of the Euro and has to proceed to several devaluation of the Ruble.

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Economy
Growth Russia is a part of the BRIC, a country in development. The Russian GDP is increasing of 2,9% on the third trimester of 2012, it is nowadays around 1,89 billions of dollars, however important doubt appear for the last part of the year. The GDP per capita, according to the inflation rate is above 3052 USD. Figures and economy The highest amount of the balance trade in 2012 was 17129 million USD in September. The Russian economy benefits nevertheless to a low public debt, indeed only 11% of the GDP. It permitted to Russia to decrease dramatically its interest rate. Indeed it decreases of 105% in 15 years, during the post-soviet area. Today the interest rate is 8.25% and the Russian average interest rate is 51% due to the really high rates after the collapse of the Soviet Union. The inflation rate is above 6.5%, the highest of 2012. For the same reason as the interest rate, the average rate of inflation since 1991 is 157%, it was in December 1992 above 2333%. Regarding the unemployment rate of Russia, which is 5.3%, it increases of 0,1% between September and October 2012. One interesting fact is that the middle salary is increasing each year since few years. The average salary per inhabitants is 19840 USD (figures of 2010), there is a big differences between the low class and the higher class in Russia. The amount of consumers spending in the second quarter of 2012 was to 177 billion USD. Russia also suffer of the Euro crises, nevertheless the FMI wants to allow it a more important place into the international decisions.

Social
Education Education in Russia is granted by the constitution and is compulsory between 7 to 16 years old. The alphabetization rate in 2008 was 99, 6%, one of the best rate in the world. Education is normally free for everyone. The quality of the university in Russia allows to Russia to consider a good future.

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Trends Russian mode and trend are still influenced by decades of Soviet. The collapse of the Soviet Union permits to people to buy new clothes, new goods, thanks to the economic liberalization. The trends tend to be like the Western trends. Furthermore, Russian people tend to be more and more involved in political action, contest and debate. Trying to change the current political situation of Russia. Life style More than 50% of the consumption is done by the middle class. That means more than 20% of the population of Russia. Nowadays, internet is an important factor of internationalization of Russian people, it is now democratized, and an important place for the young generation. The political subject is more and more debated and people tend to be involved to know what happen in all the country. Health The health system of Russia is not really good working. Indeed, the Russian system is one of the most important factors of mortality in Russia. People don’t have free access to drugs or medical cure. However, Russia have lot of brilliant doctors or medical staff, nevertheless it does not profit to the population. The government decided to fix this situation, to block the high rate of mortality, by an important reform of 19M $, it means 4 or 5% more per year. This reform should allow to the hospitals to buy new equipment to be able to cure on a better way the population. The figures are, that 10% of the population suffer of handicap; the most important minority of the country. 51% of the dead is due to hearth issue. The government wants to fix it until 2015. The other problem of this system is due to its history. Indeed Russian people are not ready to trust the health system, and the higher class prefer get cure in the foreign country. This system is still affected by the corruption.

Technology
R&D Since the collapse of the Soviet Union, the R&D is decreasing dramatically. Indeed the amount of invest in 2000 was 3 times less than in the US, about 1% of the PIB. The average of the OCDE is normally around 2.2%

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Historically, Russia is considered as one of the most advanced country as regards the nuclear and the scientific research. But the explanation of this decrease is closely linked to the budgetary cut in the military sector of the Russian federation. The transition to the liberal economy did not permit to continue to have a sustainable R&D; the government is still the most important investor in R&D. This sector is not supported by the inner economy and industry, nevertheless, some foreign investors are implicated in these investment, but they can not be consider as strong and sustainable invests. The R&D is not enough linked to the academic and university research. Innovation In regard of innovation, Russia wants to create the Skolkovo, a Russian version of the Silicon Valley. The major problems regarding innovation are political and economical. The idea of Skolkovo is debated hardly by the opposition who is scared to see another political manipulation. Russia enter this year into the OMC, it will permit to have more Western investment in all Russia and not only Moscow. Moreover, the innovation is closely linked to the R&D, as we saw before, the reduction of the budget in R&D, the low risk investments and the decrease of the Russian capacity to make new technology does not permit to the country to have a strong, an important place in the innovative economy. Moreover, Russia is also touched by the different financial crisis and can not invest more in this sector. Technologies Russia is really involved in the different technologies, nevertheless the size of the country and the political boundaries are not good for this sector. One of the priorities of the government is to develop the TIC, to be a society of information and communication. There is a big will to cut the Soviet image. Nevertheless the history and the corruption of the country are a big brake to this implantation of the global information society. The country wants to be an important actor in the telecommunication and in the transfer of information in the world, and plans to enter in the 20th countries more able to transmit information in 2015; currently it is 59th on 70th. Nevertheless it is important to know that there is still a control of information exercised by the states. Internet is a very important market in Russia, the average of surf is 22,4h per month and internet is developed in almost all the country. There are 51 millions of Russian who use internet regularly. Nevertheless the substantial size of Russia is a problem to extend the technologies everywhere in the country. Actually the penetration rate of internet in Russia is only 42%, not a big rate compare to the European countries.

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Environment
Weather and climate Russia is the biggest country in the world in regard to its geographical size. Therefore, Russia is divided into following different kind of climate and weather. However as a general information, Russia is submitted to a continental climate. It means really cold and strong winter, but also really warm, short, summer. Nevertheless the two more important cities, Moscow and St. Petersbourg, are submitted to a continental climate regaled by the Baltic Ocean. That means that the weather is not dramatically cold or hot in each season. Of course Siberia, the northeast part, is one of the most wild and cold region of the world. In Russia we can also find 4 different kind of wild vegetation, like the tundra, the taiga, the steppe and the mixed forest. Energy Russian underground is one of the most sustainable of the planet. Indeed, the two most important resources of Russia are oil and gas. Nevertheless Russia Is also full of nickel, iron, coal, etc. Following different sources, the amount of oil in the Russian underground is between 5 and 15% of the global reserves. Russia export more than 80% of its gas resources and 75% of its oil resources. Most of these resources come from region of Siberia. The weak point of Russian exportation of oil is the transports infrastructures which are old and can not allow to improve the capacity of Russia on it. Environment Russia, as we mentioned before, is a big country with 12% of the landmass. Therefore there are a lot of environmental issues which concerns all the global community, indeed the most important reserves of freshwater (lac Balkaï) is in Russia, and following a research of the environmental American ONG 5 of the 10 most polluted place of the world are situated in Russia. Furthermore, the country does not have sufficient resources to fight against all these issues. Nevertheless after decades of communism, Russia finally signs the Kyoto protocol few years ago, and wants actively fight and fix all these environmental issues. Some figures reported that 75% of the Russian water is not healthy to the consumption and that 40% of the territory is alarmingly polluted. Moreover, Russia front of a big problem concerning the radioactive waste due to the cold war experimentations and also the greenhouse effect.
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Legislation
Industrial ownership Firstly, the Russian organ of intellectual protection is the Russian patent and trademark office. It is really important to register there because of the high risk of hacking in Russia. But Russia is also member of OMPI, which is a global organization for the intellectual protection, and also signed the convention of Paris. Russia suffers of counterfeit and tries by lots of rules to fight against it. So all the different kind of intellectual property are submitted to the international laws on it. Norms Russia has its own TVA, at 18% and others taxes. Exports are not submitted to any taxes. In Russia, foreign companies are taxed on their Russian earing and not on the global earing as Russian companies. The amount of the taxes on the companies is 20% for big companies and 13% for small or medium firms. The average rate of taxes in one year is 46% of the profits. Moreover Russia is close to the European countries regarding the administrative way, which is really long and complicated. Accounting in Russia is governed by the RSA (Russian statutory accounting) which is different of the international common accounting’s rules. All these rules follow the accounting’s laws which are edited by the government (financial minister). Nevertheless these laws tend to be close to the IFRS which is easier for international trade. Contracts laws It is really important in Russia to edit clearly the different terms and duty of a contract. Russia is a member of the convention of Vienna regarding the international contracts. In case of conflicts, some specialized juridical courts are called to fix the problem and find a solution. All the economics and commercial issue are judged in a court of arbitration. This court is governed by the constitution of the federation of Russia. Moreover Russia is signatory of the convention of New-York in regard to the executions of arbitral sentences. Employment rules The legal time of working per week in Russia is 40 hours. The working contract is governed by the legal frame of work. The retirement age is 55 for women and 60 for men. The average salary is 16447 Rubles (= 528 USD), and the minimum salary is 2000 Rubles per week.
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The impact of the social partners is really low in Russia, indeed FIUR (Federation of independent union of Russia) is the major and most powerful union of Russia and the closest of the government. As an example, there are 95% of Russian who are linked to an union and are signatory of the FIUR.

Thanks to this analysis, we can see easier now the different characteristics of Russia, as the potential market. Therefore, this allows us to highlight the different points that will help us to decide if we have or not to penetrate this market.

GLOBAL MARK : 5,7 / 10 (Further details annexes)

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1.2 PESTEL analysis of Canada:
After the Pestel analysis of Russia, we decided to analyze another country. The second country that we analyzed is Canada, which is located in North America West, with the North Atlantic Ocean to the East, the North Pacific Ocean to the West and the Arctic Ocean to the North, and borders the US.

Politic
Governmental politic Canada is a constitutional monarchy, in which the monarchy is head of the state. Nowadays, the Conservative, New Democratic and Liberal parties are dominating the Canadian political arena. In Canada, democratic principles have been predominant since the late 19th century, when the provinces were self-governed. Throughout the early 20th century, the nation was ruled by a coalition of the Conservative and Liberal parties. After World War II, however, the country has been ruled by either the Conservatives or the Liberals. Canada ranked in the 95.3 percentile on voice and accountability in 2009 according to the Worldwide Governance Indicators, indicating the stability of the democratic system. On one hand, Canada has a good proactive attitude towards foreign relations, which has resulted in the development of significant trade and investment links. The economy of the country is dependent on trade, and the value of exports and imports makes up a significant portion of the GDP. The government is undertaking free-trade agreement (FTA) negotiations with Turkey, Ukraine, Morocco, the EU, South Korea, India, Singapore, the Dominican Republic, Honduras, El Salvador, Guatemala, Nicaragua, and Andean and Caribbean countries. Risks On the other hand, Canada has a loose federal structure and the provincial governments are given independent legislative powers (in local matters). However, this sometimes leads to conflict of interest between the central government and the provinces. Also, somes provinces that are particularly rich in natural resources have been growing stronger economically and have emerged as political nerve centers. Certain provinces, like Quebec, Ontario, British Columbia, and Alberta have emerged stronger, both economically and politically, than the other provinces. This has led to disappointment among some provincial authorities, who hold the state responsible for
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this inequitable growth. The non-uniform growth is also responsible for the growing animosity between developed and less-developed provinces. Fiscal and monetary politic Canada’s tax structure is among the lowest in the G8 countries, which makes it one of the most popular destinations for investment. It also has the most preferable R&D tax credit program and lowest payroll taxes among the G8 countries. Canada is expected to push ahead with plans to cut its corporate tax rate. By 2013, the country is expected to have the lowest statutory corporate income tax rate among the G8, which is bound to attract foreign investors. Under Budget 2011, the government has planned its next phase of economic action plan, that plans to aid economic growth and job creation through lower taxes and investments in innovation, education, and training.

Economy
Canada is among other countries the leading nations of the world, with a real GDP of $1.3 trillion in 2011. The economy has increased of 3,1% in 2011. However, low productivity and the continuing fiscal and trade deficits are a concern. Disparity in economic growth is also a challenge facing the government. In order to tackle the continuing fiscal deficit, the government has announced many measures that aim to achieve C$4bn ($3.88bn) in annual savings and return the country to a balanced budget by 2014–15. Figures and economy The country has a strong banking system and business environment, it is an important feature of the economy. Canada’s banking sector contributes substantially to the economy, including C$7.5bn ($7.28bn) as taxes, employment for around 260,000 people, and financing for 1.2 million small and medium businesses. It contributes more than 3% of GDP. The sector also provides more than 90,000 jobs outside Canada. The ability of Canadian banks to withstand the financial crisis will prove an important factor in ensuring the revival of the economy. Canada is one of the world’s leading free-market economies and a major exporter of oil, minerals, automobiles, manufactured goods, and forest products. In the 2011 Index of Economic Freedom, Canada’s score was 80.8, which makes the country the sixth freest in the world. The country has high scores in nine out of the 10 freedom metrics, with business freedom registering a high score of 96.4. The overall freedom to establish and run a business is strongly protected under Canada’s regulatory
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environment. Starting a business takes an average of five days and just one procedure, compared to the world average of 35 days. Obtaining a business license requires less than the world average of 18 procedures and 218 days. Canada’s system for registering a business has been entirely online since 2006, and there is no need for minimum capital to set up a business. These factors make Canada a favorable destination for foreign investment. Risks Since 2010 the Canadian dollar has been steadily appreciating against the US dollar. In April 2011, the exchange rate for the Canadian dollar against the US dollar ranged between C$1.01 and C$1.05 per US dollar. However, the persistent strengthening of the currency poses a threat to the economy, as the country is heavily dependent on the US for its exports. A strong Canadian dollar could affect the balance sheets of households, banks, and the government in the US, which could eventually lead to lower demand for Canadian products.

Social
Canada has performed well on various social parameters. According to the UN Development Programme’s Human Development Report 2010, the country was ranked eighth out of 169 countries with HDI value of 0.888. Life expectancy for the population is 78.8 years for males, whereas for females it is 84.1 Employment policies and programs are aimed at promoting labor force participation. The government provides support and labor market transitions to unemployed and underemployed people, and those facing barriers to employment. One of the initiatives of the government is the Universal Child Care Benefit system, which provides parents monthly installments of C$100 per month for each child under the age of six. The Office of Literacy and Essential Skills (OLES) is the Canadian government's center of expertise for literacy and essential skills. Through its partner-based approach, the OLES focuses on three areas: increasing the knowledge base in literacy and essential skills, developing effective training tools, and ensuring knowledge and tools are shared among stakeholders, partners, and the public. The Canada Pension Plan (CPP) is a contributory, earnings-related social insurance program. In 2010, the government announced changes to the CPP to respond to the needs of the aging population and changes in the labor market and economy. In 2010, the government announced that it would undertake reform of the Canada Pension Plan (CPP) through to 2016 that is expected to increase the amount received on pensions taken after age 65,

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and also increase the number of years of zero or low earnings that are excluded when calculating average earnings under the CPP. Risks Canada has one of the world's most lenient immigration policies, which makes it an easy destination for entrants from third-world countries.The favorable government policy towards immigrants may become a socially contentious issue. Reservations have been expressed in some quarters with respect to the government’s silence on immigration issues in view of declining employment conditions and high unemployment rate. Unemployment is still high in the country. Between 2008 and 2010, the number of part-time jobs increased by 139,000, while the number of full-time jobs has decreased by 186,000. Unemployment went up from around 6% in 2008 to 8% in 2010. Although many thousands of new jobs are created every month, the majority of them are part-time jobs.

Technology
Canada has retained its position as one of the most cost-effective countries among the advanced economies. Its geographical proximity and trade and investment relations with the US make it an attractive destination for investment. Canada is home to a well-developed manufacturing industry, which serves as the base for further development of high-end products. The industry is supported by a low overall tax rate, R&D incentives, a qualified labor force, and integration with the North American market. The machinery and equipment industry provides required components for the newly developed aerospace industry. More than 70% of the goods manufactured in Canada are exported to the US, and the same trend holds true for value-added goods, for which the returns are a lot higher. Risks The low number of patents received by Canadian firms reduces the nation's technological advantage. Lack of innovation in the private sector is one of the main reasons for this trend. Compared to the US, Japan, and Germany, the country’s total patent count was very low. In 2010, it received only 5,513 patents from the US Patent and Trademark Office, compared to the 121,179 patents received by the US.

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Although a high proportion of the Canadian population hold post-secondary qualifications, a low number have degrees, especially advanced qualifications that would provide skills and competencies to be used in business. While the number of educated people is high, education levels do not meet the requirements of a modern economy and knowledge-based society. According to The Conference Board of Canada’s How Canada Performs 2010 report, the low number of people with doctorates could be the main reason for the nation's low level of innovation.

Environment
Canada has a strong environment policy, legislative framework, and wellestablished institutions at the federal and state levels. The Environment Act of Canada is an umbrella act, having different statutes for water, air, waste management, and preserving biodiversity. There are separate agencies under federal and provincial governments that are entrusted with the implementation of these policy measures. The Canadian government has made substantial improvements in legislation and the implementation of its national environmental policies. The government has also committed itself to international agreements. Risks The increasing level of waste in the country is a cause for concern. There has been a small reduction in the amount of municipal waste, but nuclear waste generation jumped by nearly 75% during 1980–2000. Canada uses nuclear reactors to produce approximately 12% of the country’s energy requirements, but according to Environment Canada reports, disposal of nuclear waste continues to be an issue as the government and industry are yet to reach a consensus on the matter. According to a 2010 study of Canada’s environmental record by Simon Fraser University and the David Suzuki Foundation, the country had the worst environmental record among the OECD countries after the US. It ranked 24th out of 25 OECD countries, which were rated using 28 environmental indicators including sewage treatment, species at risk, GHG emissions, pesticide use, and nuclear waste.

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Legislation
The Canadian legal system has an independent judiciary, which is free from other branches of government. The federal structure of Canada has been extended to its judicial system as well. Legislative authority and responsibility are divided between various levels of government. The ability to make laws rests with the parliament of Canada and legislatures of 10 provinces. The Constitution of Canada is the supreme law of the country. The legal and regulatory framework provides transparency to the business environment. The regulatory processes are also favorable for foreign investors: national laws provide the freedom to start, operate, and close a business. Starting a business in Canada is far easier than in other nations, as it takes an average of five days and one procedure, compared to the Organisation for Economic Co-operation and Development (OECD) average of 13.8 days and 5.6 procedures. The procedures needed to set up an enterprise are more manageable and are transparent. Canada has low tax rates for businesses. The country also has the lowest payroll taxes among the G8 countries, and is expected to push ahead with plans to cut its corporate tax rate to 15% by 2012. By 2012, Canada will have the lowest statutory corporate income tax rate among the G8. The process of opening up the services sector has started with the telecoms field, and is expected to move further under the World Trade Organization's General Agreement on Trade in Services. Liberalization of the highly regulated power sector will lead to the more efficient generation and sale of energy. FDI liberalization in airlines, telecommunications, and broadcasting will boost competition among players. The process of regulatory reform in electricity, which aims to increase competition, has already started. Risks Currently, there is no single regulator in Canada and the responsibility for regulating the securities markets sits with the provinces. Substantial gains could be achieved by establishing efficient and effective security regulations throughout Canada, but governments to date have not agreed on the appropriate model.

Therefore, after the analyze of these two different countries, we choose to focus ourselves on Canada, indeed the best mark is the Canadian one, it is the country the most potentially profitable for our company. Moreover, knowing that the country the
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most profitable and easier to settle, is Canada, it is important to analyze the micro environment, which means, understand and determine who are our competitors, what are their advantages, and how to fight them in an efficient way.

GLOBAL MARK : 7,5 / 10(Further details annexes)

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2 MICRO ENVIRONMENT
In a first part, we introduce our main competitor in Sweden, FaluRödfärg. It is currently our challenger on the Swedish market but it has the advantage to be already settled in Canada and different countries of the world. Our product is unique comparing to Canadian competitors as we will see later. Nevertheless we have to concentrate on our largest competitor regarding the quality of the product, which is FaluRödfarg. Actually its product is roughly the same. With this information we are going to analyze the 4 P’s of this company, in order to see how different we are from this company and then conclude if we should rather change or improve. Knowing that they are in advance, and already well-structured, it will be useful to understand how FaluRodfarg manage its internationalization, to imitate their good practices.

2.1 Brand
FaluRödfärg, translated in English as “Falu Red Paint“, find its name originates from a town called “Falun”. It is situated in the middle of Sweden and it is famous for a greater copper mountain for hundred of years. The material of FaluRödfärg is a kind of byproduct produced while miners extract coppers from the mine. Therefore FaluRödfärg is legally protected and may only be used for paint containing pigment from the Falun Mine. Their well-known logo with the red gable was registered as a trademark in 1972, but the paint has been manufactured since the 1700s. The right of these special natural pigment now is owned by StoraKopparbergsBergslags AB which was also the owner of the mine in Falun and one of the largest wood product companies and crown jewels in Sweden.

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2.2 Product
FaluRödfärg has three kinds of main products which are powder, paint and pigment however owing the reduced demand and diminished profitability of powder, the company decides to discontinue the manufacture of powder. Nowadays, customers have four different colours they can choose, which are classic red, old-fashioned light red, modern black and the latest addition grey, and all colours can be mixed together.

powder

The paint

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2.3 Price
The price of the paint is a little bit higher compare to the powder. If customers purchase the paint, they can directly use it but the one who buying the powder have to mix other material with it to make the paint. That is the reason why the price for the powder can be lower than the price for the paint. Paint products have two different package styles for different volume, which are 5 and 10 liter, and the price from one of their retailer is 299 SEK and 499 SEK respectively. The covering capacity is approximately 3 m² per liter while using paints. The price of powder is around 195 SEK with brush usual, and have only one kind package in the volume of 5 kg, and the pigment is selling by weight, of course the more heavy customer buying the more discount they have.

weight 100g 500g 1kilo 10 kilo

price in Sweden Kr 23.87 Kr 83.35 Kr 131.76 Kr 922.3

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2.4 Promotion
Promotion is divided in different points. Indeed the communication plan is not only to choose the way to express our message or the way to show the product on the different channels of communication. The promotion is also to create an interesting packaging which will help the company to send the message and to attract the consumers. The main way that company try to promote their products is to emphasize how their goods are different from others, and one of the powerful reason why customer purchasing is their goods come from natural, and is low-environmental impact, also for that same reason make their paint last longer than other brands’ products. To express these ideas we will use different communication channels. Indeed each channels has its different benefits and inconvenients. To promote our product we will use TV, radio but also a Website. In their advertisement and website customers can easy realise how they made the products and where the resources are from.

The website page is translated into two language, English and Swedish, which makes people all over the world get their products information simply. Also, the company declares that their goods have several advantages compare to others.

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Following are the reasons they persuade to customers: ● Preserving wood very well against the Swedish weather, because the pigment in the Falun copper mine has a unique mineral composition including iron ochre, silicon dioxide, copper and zinc, all of which help preserve and protect the wood. ● The paint is long-lasting, and longer than most exterior house paints. ● Falun Red Paint does not peel. The binder in Falun Red Paint consists of a starch adhesive, reinforced with linseed oil. ● Falun Red Paint stays colour-true. Unlike most modern red paints made of synthetic or natural pigments that are sensitive to ultraviolet light, the inorganic pigment from the Falun copper mine stays colour-true. ● Falun Red Paint is economical. All comparisons with newer exterior paints show that Falun Red Paint is highly cost-effective. ● Falun Red Paint is fire-retardant. ● However, FaluRödfärg, the company that produces the paint, is not too concerned about exporting its product as there is only a limited amount of the raw material left, therefore only a small amount of it is exported because the red pigment is expected to run out by 2090.

2.5 Place
FaluRödfärg offers its products all over the world. You can find the representatives in Canada, Chile, France, Germany, the Netherlands, England and Finland.The manufacturers and retailers are settled in Sweden, Canada, France, Germany, Great Britain, the Netherlands and Chile. Less famous than Fallu House in Sweden, Falu red paint took advantages by internalization before our company. Clearly, they have advantages on the international market. Fallu House has big efforts to do in order to be competitive in the international environement.

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2.6 Competition on the Canadian market
In order to enter a new market in Canada we need to know about our competitors. The biggest exterior wood painting competitor to our brand in Canada is “The Canadian Painters” which deliver their painting products all over Canada. This company provides a service for interior as well as the exterior painting. It also offers the opportunity to become a partner of their company and to become a leading painting contractor in one of the area in Canada. The fact that they use the best, well-known painting product of the brand “BEHR” helps them a lot to be successful on the Canadian market.

Another large competitor is “Benjamin Moore Exterior Stains” that offers a high quality painting product named “Arborcoat” which provides protection and color without obscuring the grain or texture of the wood and a water repellent coating etc.

However also other small competitors need to be concerned as well, such as “ Homestead House Paint Co., Oakridge Painting & Decorating Ltd, Partnership Painting Inc. and Student Works Painting.”

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2.7 Consumer
In order to know who is the best target, it is important to identify the most profitable consumer. Indeed, it is possible to separate two groups on consumers: - Professionals consumers (B to B) - Particulars consumers (B to C) The consumers can be the end user who would like to paint their house from the outside as well as professional painters company for house which needs paints to paint house. Evidently, both sectors are important for Falu House. Yet there is a different way how to reach those customers. The ideal target customers will be preferably rural. Focusing on middle and upper class income. It can be either people living in countryside or urban inhabitants having a second house. After analyses of competitor’s companies in Canada, and which customers we want to reach, it is important to target these customers. Can we consider that their culture is similar from the Swedish one? If yes, it would be easy to adapt our product, if not, some efforts will be necessary to satisfy the Canadian customers.

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2.8 The Canadian Culture 2.8.1 Language
Canada is a bilingual country. The official languages are English and French. Due to the fact that the most of Canadian speak English then French, we decided to stick to English in our advertising.

2.8.2 Region
The central portion of the country, in its southern areas, is primarily boreal forest (the provinces of Ontario and Quebec). This forest region extends across the entire country from the eastern slopes of the Rocky Mountains through to the Atlantic coast, and is dominated by coniferous trees. A section of the country westward from the Great Lakes basin along the southern extent of this forest region is a prairie made up mostly of flat grasslands (in the provinces of Manitoba, Saskatchewan and Alberta). The westernmost portion of the country is dominated by the Rocky Mountains, with a narrow riverine environment, made up of northern rain forests, west of the mountains (in the province of British Columbia). Between the southern Carolinian forest of the central regions of the country lies a region in Ontario and Quebec characterized by numerous lakes and expanses of exposed rock known as the Canadian Shield, an area left exposed after the most recent glacial retreat. Across the northernmost portion of the country from east to west lies a region dominated by tundra and finally at its most northern reach, an arctic eco-zone (in northern Ontario and Quebec and in the territories of Nunavut, Northwest Territories, and the Yukon). Due to the fact that Canada has so much forest, most Canadians live in private homes. The houses are made of wood, which is an advantage for our company, because we concentrate our task on exterior wood painting.

2.8.3 Architecture in Canada
The architecture in Canada is closely linked to the techniques and styles developed in Canada, Europe and the United States. However all the design needs to be adapted to Canada's climate. All buildings need to be well insulated to protect their inhabitants against the extreme cold of the long winters. Buildings must be designed to survive the repeated cycle of freezing and thawing that can shatter stone and move buildings off their foundations. In

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most of Canada, buildings must also be able to survive the heavy weight of snow, which can collapse certain structure. Wooden houses are the best protection against the cold winter.

That is the reason why it is also important to use a high quality painting for the houses. High quality means in that case that the painting will last and protect the wood even within the cold, heavy weather. Nobody wants to repaint their houses twice a year. With our product we guarantee that it won't be necessary.

2.8.4 Color
We chose the color red and yellow, because they are a symbol for all the houses in Sweden. This should outline us from the competition. Red is also a very important color in Canada. For instance the basic color of Canadian flag is red. Also the Royal Canadian Mounted Police (RCMP) dress uniform is in red. This color should be a connection to our product. Plus, according to research, Canadian favorite three colors are red, white, and green that make our products having more chance to success. The color yellow represents mind and intellect, happiness and fun, communication of new ideas. It helps people to be creative and find new way of doing things but also to think clearly and to make quick decisions.

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2.8.5 Customer’s expectations of the paint in Canada
The prospects expect the highest level of quality; durable, technologically advanced coating products that meet the strictest environmental standards; good, quick service; a well communication; right on time delivery, daily support by any kind of questions; a quick drying paint; a long lasting paint; correction with problems of painting. The customer also wants a premium deck finish that offers maximum UV protection.

After analyses of the environment, of countries and customers, we determine that Canada is a country where the settlement of our company could be profitable. However, even if all external variables are ready, can we consider that Falu House has enough resources and is ready to settle its company in international business? In order to determine if Falu House is ready, and to avoid any risks, it is necessary to establish a SWOT (which is a marketing tools to understand which are our strengths, weaknesses and also threats and opportunities).

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3 SWOT ANALYSIS
3.1 Strengths:
We have a well-known strong brand. Actually, we are the market leader in Scandinavia. We already know how to target the audience in this kind of country thanks to our experience since 1970. If we focus on one country we have enough money to prepare an important advertising campaign. The CEO of the company is determined to internationalize the brand. He is a natural leader, which motivate the different actors and make them involved on the project. Our product is environmentally friendly and it is high quality paint with an effectiveness in preserving wood.

3.2 Weaknesses:
We don’t have any experience on the international market yet. We only sell paint for wood; we don’t have a lot of color. The Falu red paint is unknown by the foreigners.

3.3 Opportunities:
Canada is a big market with 35 000 000 people. That means we have a good possibility to target the potential group and to implement our products. The Canadian customers looks to be the perfect target for our company due to they have a lots of wood houses and they are sensibilized about the necessity to reduce the impact of the human on the environment.

3.4 Threats:
Some other good well-known companies have established their brand and product in Canada already. The competition is hard in this country and the market is mature. FaluRödfärg, our main swedes competitor, is already on the Canadian market.

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4 MARKETING OBJECTIVES
Knowing that the environment is profitable for settlement, but also that Falu House is able to develop a structural settlement, it is necessary to establish rational, quantify objectives to reach, in order to have a good strategy of development. At least, we have planned to sell 81 000 tones of paint in 5 years, between 2013 and 2017. Before 2015, we hope to sell 36 000 tones of paint thanks to our advertising and the Canadian distributors. Then, we can easily improve our sales thanks to our infrastructure implementation (Fallu House point of sale). During the second period, hopefully we can 45 000 additional tones of Fallu House paint. Marketing objective table Year 2013 2014 2015 2016 2017 Quantity (tonnes) 10 000 12 000 14 000 20 000 25 000 Infrastructures Implementations BtoC and BtoBdistributors

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5 MARKETING STRATEGY
Knowing that the Canadian market and our company are ready to settle Fallu House’s products abroad, it is now necessary to think about the 4 p’s. First, we will describe the 4p’s used in Sweden which is successful. Knowing that this strategy is successful, the perfect situation would be to settle the same strategy, however, the environment is different which involve modifications of the 4p’s. After having determine exactly our quantify objectives, it is necessary to think about a good strategy of settlement which enable profitable profits in long term.

5.1 The 4 p’s in Sweden
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Product:

For a question of identity, Fallu House offers only two colors strongly related to Sweden: Red and yellow. Considering that the “local aspect” was one of the main point which explain the success of the “company” in Sweden. The strategy established in the home market will be used also for the internationalization of the brand, expecting that the “Swedish local touch” could be an advantage thanks to differentiation. Focusing only on two colors is not only a question of personality, but also of better management of resources. That’s why, Fally House only offer the pack of 10 L in Sweden. Thanks to the strategy of short range and short product, the stock and the organization are much more easier for the company which decided to manage less products, but try to make them as best sellers. Fallu House sells two kinds of products: Normal paint and Powder. Each product has its own advantages and disadvantages. Offering two kinds of products give opportunities to customers to choose the best product adapted to their needs.

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Paint + Don’tneedanyprepa ration Easier long resistance (more or less : 10 years) Heavier Light +

Powder Needpreparation

Can personalize the More complicated final colour long resistance (more or less : 10 years)

As we mentioned before, Fallu House always try to act taking consideration of its Swedish value. That is why, “company” got 10 years ago an “eco-label” showing the strong involvement in global warming, and protection of earth. The few numbers of products, combining with Swedish identity as differentiation and the existence of a well-known “eco-label” represents a company with product of quality recognized in all Scandinavia. To highlight its eco friendly position, the packaging is in recyclable aluminum. Aluminum is well known for its strongness, but also for its lightness which involve easier transportation of paint. Moreover, knowing that Swedish eco values are important for the company, aluminum is the perfect material because it is recyclable. Always in accordance with its value, the packaging is yellow and red, the two colors available as paint.

As regards its packaging, our box of paint will present on it a moose, which is one of the most emblematic animal of Sweden. This point is highlighted by wood on the background. Indeed these two strong symbols are representative of the values of the company. Moreover the color of the paint is on the top of the box. Our packaging is so representative of our product but also of our values of the brand. This packaging is adapted to our market in Sweden, indeed Swedish people are really concerned by the environment and the respect of traditional values.

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•

Promotion :

Already well known in Sweden, Fallu House does not need to create a brand’s image. Well-known as a environmentally friendly brand, and selling products of good quality, the brand’s image represents a real selling arguments in Sweden. To keep its reputation, and to improve it, Fallu House always try to have more proximity with its customers. With professional customers, salesmen are always ready to help them, They often visit them when they need them to keep a long term relationship. Of course, every modern tools are useful to keep proximity: Website, mail, newsletter... With particulars customers, interactive website, web presence, events, sales promotions in DIY store are common, in order to keep a close relationships with its customers. In order to keep presence in mind of customers (professionals and above all, particulars customers), commercials on TV are released every 6 months, and big ads in city can be released in keep in touch with every single customer. The strategy to use publicity is managed by the fact that publicity touch a large public and so can increase our penetration on the market. Its legitimacy and its message are also well express with publicity. Moreover the website will helps us to attract the egeneration and also the current target which is using more and more new technologies.

• Place:
Having many manufactures all over Sweden, it is easy to supply distributors (B to B) and retailers (B to C). Supplying most of our products by trucks (because of its cheap price), distributors and trucks are constantly supplied during the whole year. Knowing that the product is made in Sweden, cost of transportation is quite cheap. To avoid infrastructure costs, Fallu House does not want to create their own stores, but uses grid of well-structured distributors. In this way, it enables Fallu Houses to do not have structural cost due to employees, buildings, but also to be spread easily all around Sweden based on professional and personal network of distributors. -In professional distributors (B to B): Because many company of paint’s House needs paint, and most of them buy their products in professional distributors.

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-In particular DIY store (Bto C): Selling our product in DIY store all around Sweden, Fallu House takes advantage of desires of DIY from family and especially, father of family. The desire of DIY is raising more and more, which involve a good business opportunity that Fallu House cannot avoid.

•

Price:

As we only have two kind of products, our prices are quite similar to our competitors. However, the well-known quality and the environmentally friendly arguments represents real advantages for Fallu House which able the company to be the leader of the Swedish Market.

- Only offering tin of paint based on a 10 L model the price of Fallu House paint is Kr 499. (The price per liter is 49,9 SEK). - Only offering pack of 5kg of powder. The price is about Kr 199.

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5.2Strategy of settlement in Canada
With the paint market, it is important to consider that there is two kind of target. ● The Business to Business market ● The Business to Customer market Knowing that expectations of both are different, it is important to identify what the needs to understand how to touch them.

1) Business to Business: Building’s professionals can use Falu paint. Building market is huge; targeting them is mandatory for the business. But, professionals do not have same expectation, and different argument have to be used to convince them. Media communication will not be the most efficient way to convince them while for particular consumers, it is the best way to attract and convince them of qualities of our products. In order to convince professional to buy our product, it is important to have our offers in maximum of professional distributors. To be able to be present in most of professional distributors for professional houses painters, it is necessary to settle basement for salesmen who are going to negotiate settlement of our products in severals professional distributors. 2) Business to Consumers: The second way to sell paint product is to focus on particular consumer. In a context of economic crisis, but also with the rise of desire to DIY (do it yourself), particular consumer represents a potential target, which should not be forgot. As we mentioned previously, particular consumers are sensitive to communication made by the company. The brand’s image, the product’s quality, the attraction’s power of the company are many points that Fallu House has to work on to be able to sell its products to Canada. In order to convince the B to C, it is important to determine the two axes of works: The media communication (based on tv, internet, radio) and the guerilla marketing (based on street actions such as events…).

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Working on the two markets is sources of positive benefits, because the two markets are linked and able to improve sustainably profits. B to C and B to B If the consumer is convinced thanks to advertising and communication, he’ll buy paints for his house for DOY. If the paint begins to be famous and well-recognized by particular consumers, they will ask to professional to use this paint for their house. B to B and B to C In the other way, if professional are convinced by the quality of our products, they will use our paints in most of their constructions, so they will offer to use Fallu House paint.

Based on strong Swedish values, Fallu House wants to keep its originality and personal aspects even with the internationalization of the brand. The best would be to keep the same “4p’s” strategy. However, settlement in new country involves necessary modifications to able a good adaptation to the local market. After analyses thanks to marketing tools, the company determines two axes, which have to be modified. The Place and Price strategy are easily adaptable to the Canadian Market. Thanks to modern infrastructures, it is easy to settle the place strategy. Thanks to the occidental aspect of the country, purchasing power of Canadians are almost the same of Swedish people, which able to involve the same price strategy. It is just necessary to adapt price with the Canadian currency. However, it is absolutely necessary to adapt the Product strategy and above all, the promotion strategy. Even if Canada is an occidental and modern country, some differences has been noticed after analyses done thanks to marketing tools. Less sensitive to environmental issue, different expectations about quantities, it is necessary to: - Work on the packaging of the product: More attractive visually (because americans pay lots of attention to packaging). - Work on quantities: We noticed the 10 L model is not totally adaptable in Canada. Professionnals needs big quantities, so 10 L model will be perfect, however, after the competitors’s analyses, we noticed that particular consumer did not buy big quantities,
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but maximum, 5 L. That is why, it is necessary to re adapt quantities, and have two models. One of 10 L for business to business, and one of 5 L for business to consumer. Definition of a new promotion and communication plan in accordance with Canadian’s expectations. Because Fallu House is not well known as in Sweden. We will focus on the particular customer market, and avoid voluntary the promotion B to B. Because we know that the B to B market pays more attention to professional facts, and that we do not have enough information about professional sector. We focus on the particular customer (such as the family, the father..) in order to create a promotion and communication oriented B to C. The company has to create a brand’s image, which does not exist in Canada. The question is: Keep the same environmentally image or a new image based on new positioning?

5.2 The 4 p’s in Canada
Thanks to the likeness between Canada and Russia, it is possible to keep the same strategy of Place and Price.
•

Place :

It is allowed to send the Fallu House paint to the Canada by ship across the Atlantic Ocean. The paint will still be produced in Sweden, then, transported to the American continent. - In B to B : It is important to remember that the Business to Business market can also produce a lot of profits. Green eco service website can be used to sell the paint to the professionals for example. This website permit to find environmentally friendly products. The Fallu House paint can be selled in the “natural paint” category. The brand will also target the professional paint stores like Paint Depot in Toronto.

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- In B to C: Finally, according to our strategy in Business to consumer, it is better to focus on the main distributors of the market because if the campaign failed we can drop out of our contract and remove the products from the Canada. In a second time, if the implementation is a success, we will maybe implement somes shops to get the advantages of direct distribution in order to avoid the war between the different brands on the shelfs.

The different paint distributors in which it is possible potentially to settle our products: Paintdistributors in CANADA Anchor Tools & Supplies CloverdalePaint&Paper Coast Distributions Ltd. General Paint Ltd. HD Supply Canada Facilities Maintenance Home Hardware ICI / ColorYour World Pacific CoastWholesaleSupply RONA The Home Depot Totem Building Supply TruServ Canada Inc. YHD Distributors

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•

Price :

The currency in Canada is the Canadian Dollar (CAD). The price of a pot of 10kg is 499 kr / 75 C$. So the price per liter is 49.9 Kr / 7.5 C$. To determine the price we can make a comparison between two competitors products in Home Depot and RONA in Canada : Exterior wood paint products with ECO label BEHR PREMIUM PLUS ULTRA RONA SEMIGLOSS FINISH Point of sale Quantity (L) Price (C$) Price per liter (C$) 15,02

Home Depot

3.53

53

RONA

3.6

55

15,27

In resume, the middle price for a liter of Eco label paint for wood in Canada is of about C$15.

Due to the transport costs of our product we have to increase it. For the moment the price per liter is C$. 7,5 We can easily sell the product at C$10. Moreover, the format is smaller than 10 liters. Indeed, we has chosen to sell pots of 5 liters. So, the price of a pot will be C$ 50 which is still less expensive than the competitors even if they sell pots of about 3.5 liters paint. Then, we can sell the product at C$ 70 which is C$ 14 per liter. In addition, we can use an odd price strategy, a price by which the consumer perception is altered: 69,99 C$ instead of C$70.

Finally, we deduced the best price to sell our product: Quantity Price 5L C$69,99

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•

Product :

We have to change our product to adapt it to the Canadian market. Some factors can be kept, however, others have to be modified. That is why we created a board to compare differences between the Swedish and the Canadian product.

Sweden Color used : Red and Yellow Quantities : Only 10 L Sell Paint and Powder Eco Label Packaging White and Red / aluminum

Canada Color used Red and Yellow Quantities : 10 L (B to B) / 5 L (B to C) Sell only Paint Eco Label Packaging White and Red / aluminum

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As we said previously, we have to determine a new strategy for the “P : Promotion”; In order to create a good brand’s image which will be profitable for sale. Famous in Sweden, but totally Unknown in Canada, it is necessary to create a different communication than the one used in Sweden. It involves long thinking to involve a good and structured strategy which will enable to make our company famous and thus, profitable in Canada.

5.3. Communication Objectives
Firstly, we have to determine our communication Objectives, which will be our positioning, which image we want to give to potential customers in Canada. Our communication strategy will be focused on particular customers, knowing that professional are not interested in communication, but need impact from their distributors. Analyzing the consumers, we found out that, Canada has lower level of environmental concern than our home market, Sweden. Canadian customers are closely related to the United States, and they can sometimes feel clueless about Europe. Many cultural factors lead us to adapt our Communication Strategy to this new market. However we would like to remain logical and stay as close as possible to our company's values. In this market we want our product to be perceived as high quality. We need to penetrate quickly and then make our products last in the long term. The communication has to be adapted but showing our main qualities, as they are a key point for our competitive advantage. Our main companies values and qualities are: Environmental issues, recyclable, Scandinavian Culture, cold protection, added value on houses decoration, do it yourself. - In order to adapt our communication to Canada, we will first swop the language from Swedish to English. -Secondly, we will show our product as a new fancy way to decorate and protect individual houses. - It is also important to promote the product as eco friendly. - Our paint is a good protection for a cold and rough winter. The ideal target customers will be preferably rural. Focusing on middle and upper class income. It can be either people living in countryside or urban inhabitants having a second house. We decided to use the push strategy in order to reach our potential customers. The push strategy means that the customers don’t know anything about our product.

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Therefore it’s our task to give the them all the information they need about the product and to explain why they need to buy it. So, how to do this in an appropriate way? In our advertising we will show our Swedish product which is made in Sweden and its benefits connected to Swedish tradition. Also the colours red and yellow should symbolize Swedish culture. Everyone can associate red and yellow houses when they are asked the question what is typical for Sweden? With this features we will outline our product and brand from the competition.

5.4 Communication strategies
After determining our positioning, it we have to establish a strategy to know, by which way we want to communicate.

5.4.1 Events
Firstly, events allow our company to be present in most part of the country, and above all, to create proximity with our potential customers. In order to reach with more proximity particular consumer in events for particular, but also, to reach with more proximity business company in professional events, we have decided to promote our products in Events all around Canada. An event is a place where all the stakeholders and organizers come together and communicate with each other. Even if, Fallu House will not sell products during events, the communication helps to introduce the new brand. This is a good way to improve the brand’s image and penetrate the market. Developing the notoriety of the brand among professionals and particulars consumers is profitable for the company, and also, to build new relationships with potential customers. To enhance our notoriety, it is necessary to diversify our communication techniques to be perceived as different, original company. For example, Fallu House can create competition between the stakeholders. For instance we can make an exhibition with small wooden houses which needed to be painted with our paint. During the exercise the time will be stopped, to show how easy it is to work with our paint. This kind of promotion can help to encourage our customers to buy our product. It’s exciting, because everyone wants to win and at the end the benefits of our product can be shown easily, such as high quality, quick drying, easy way of management, ecological benefits etc.

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After analyses of the existence of big events in Canada, Fallu House can be present during: - CMW - CANADIAN MANUFACTURING WEEK Toronto congress centre 2014 (Exposition of industrial products (international) - CANECT 2013: Canadian Environmental Conference and Tradeshow April 29 to May 1, 2013 at the International Centre, Mississauga, Ontario, Canada -Toronto Green Living Show 2013 (April 12 - 14) -Building Lasting Change: CaGBC National Green Building Conference (June 4 - 6, 2013) Tue Jun 4 to Thu Jun 6, 2013, Vancouver, BC -Alberta Sustainable Building Symposium 2013 Tue May 7, 2013, Edmonton, AB B to C - National Home show March 15-24 direct energy centre, exhibition place, Toronto - Canadian Home Furnishings Market Show: 12 - 15 Jan 2013 | Toronto, Canada Furniture, Furniture Supplies & Furniture Hardware

5.4.2 Advertising:
In order to reach particular consumer, it is necessary to use advertising. In our advertising we will show our customers all the benefits of our paint in simple way, because they need to understand what we are talking about. Our ad will give them all the information they need to know so that they can make an easy decision. Already our company’s slogan; “Give a new sense to your house” involves the customers and helps them to identify themselves with our product. Everyone likes to take care of their homes in a good way, even more nowadays with the rise of DIY desire. Furthermore we can show in our ad a famous male person who uses our paint. A male person will be chosen because most of the exterior painting is done by men. Also our main target focus is on men. The famous person will help to sell the product as well because they help the customers to identify themselves with celebrities. So if the most popular actor, singer, etc. uses the painting for their homes that means that the product is reliable and trustful. The customer will be “pushed” to buy our brand, too. In our ad, the celebrity can show how to use the paint in an appropriate way, so that there are no misunderstandings and confusions. He can show how the problem can be solved in an easy way without any complications.

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The use of humor will be inappropriate in our ad, since it will not show the important facets of the product. The product may not be taken seriously by the customer at the end. A better way is to use some music in the ad which can help to gain attention of customers and to outline our product from the competition. The subway advert: During the winter, Canadian people use the underground to move from a place to another. Using the Idea from Montpellier’s tram concept, Fallu House could plan to design the wagons of the subway with advert of Fallu House in the main cities such as Toronto for example. The purpose of this action is to catch the attention of the prospects and attract the medias and enable the word of mouth strategy. However, this kind of action is such hard to settle, for financial reason, but also because that would be difficulty acceptable by the city. Sales force support: More oriented business to business, and in order to convince them, it is important to settle basement for salesmen who are going to negotiate settlement of our products in their ranges. Professionals painters always use professional suppliers. The aim would be to settle our products in this professionals suppliers, in order to sell easily to painters (using their well-structured framework).

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5.5 Creative ideas-Emotional Appeals
Traditional and environmentally friendly is the main feature of our products. To send out the messages of it, we come out a creative ideas using human emotional awareness to the earth, and people as well to persuade our customers. Nowadays, more and more people notice that is really important to be nice for our own earth, the proportion that people tend to use eco-friendly products are more higher than before. Also, more persons are willing to spend time with families other than works, and care about their families more especially in health subject. Our paints is natural and with lower environmental impact which makes it really safe while people painting their house, even children can do it themselves. Plus, painting can be a really pleasant activity for entire family. Giving your house a totally different face with a low environment impact paints and you enjoy the family time as well!

5.5.1 Logo:
We have chosen to keep the traditional logo of our brand (realized on Photofiltre). Actually, we can find Moose in Canada, so, the customer can easily recognize the animal and can be more likely to accept this new product. Moreover, We think it is good option to standardize the communication strategy due to our future possible globalization strategy. We are going to adapt only some aspects to the new markets.

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5.5.2 Slogan:
We have chosen this slogan for the Canadian’s campaign: “Give a new sense to your house”.
-

Give : make the consumer act. Sense : Is related to the values of the brand, (green, tradition). New : Can be use because we are a new brand on the market which can be an advantage.

5.5.3Advertising campaign:
In resume, the spirit of our advertising can be the following :

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5.5.4 Artist support:
For the advertising campaign, Fallu House will sign a partnership with Rebecca Belmore, a famous Canadian performance and installation artist.

She will be able at the same time to reinforce our brand image by giving it an identity and make the local consumers more friendly to accept a foreign brand on the market. For example, she can help Fallu house to design the advertising campaign and maybe produce some work of art based on this paint.

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5.6 Media strategies 5.6.1 TV:
We chose first to focus on TV with a TV advert; indeed TV is one of the best ways to communicate due to the high audience of viewer. Indeed TV allows to have a large coverage and also to keep people focused on the advert, an advert is moving, there are music… all these factor keep the consumer focus on the product and the message that we want to send. On the other hand, a TV advert is really expensive. Thanks to our massive budget available for Canada, our company is able to pay the amount of money necessary to send our message, moreover we know that it’s hard to target a specific kind of consumer with a TV advert. Our strategy regarding the TV advert is to diffuse it during the large listening hours. It means between 5pm and 11pm. It will be interesting to diffuse the advert just before the TV news, which is one of the most viewed programs in a country. These hours are the most interesting regarding our target and our strategy, indeed during the day our target is working and not able to watch the television. To succeed with this strategy we will have to pay more, indeed to be choosing for these hours, we have to offer more than competitors. We will diffuse our advert on the CBC which is the most important public channel in the country. It is probably better to focus on a public channel to make the Canadian people friendlier to accept a foreigner brand.

5.6.2 Internet:
Internet is a cheap and the easy way to communicate nowadays, indeed in developed country almost everyone have an internet access and most of them use social network. Internet is an interactive way to communicate and allows diversifying our strategy, our advertisement. Furthermore, with internet we can adapt our message to every kind of consumer and then we can have a better efficiency with our targeting strategy. Nevertheless internet is now used by every companies. Although using it is nowadays necessary, it is now hard to be better than the others. It can quickly increase the notoriety, but at the same time be as quick to ruined it. Then we have to care about each point of our communication plan with internet Therefore our strategy on internet is to create a website of our brand to keep our consumers informed and also to contact us and to send our message in an efficient way.

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Moreover, nowadays, we can’t forget to be present on the social network, even if our target is not necessary one of the more connected to it. So we will create a Facebook page of our brand and our product to diffuse our message our identity, and also to target a more large part of the consumers.

5.6.3 Radio:
Radio advert is really useful to reach our target in each region of Canada, indeed with this kind of advertising you can focus on the local radio of the country and so inform more and more people about the brand and the product. It is really useful for our product, paint is really used in countryside and people have to know that we can procure them what they are looking for. Moreover, a radio advert is less expensive than a TV one and also covers much more consumers. On the other hand, a radio advert has a weak impact on the consumer mind, indeed it is really hard to send the image of the brand by radio messages, people can’t figure about it. The attention is not high also and this is a short term strategy. So message and image can’t be sending in the same time, and therefore are not automatically linked by the consumer. We have to diffuse our ad message during the large listening hours, it means during the beginning of the afternoon, 1pm-3pm, and also the evening between 6pm and 10pm. We have to be on the national radio first, like CBC radio stations.

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5.7 Budget
The brands focus exclusively on the Canadian market. It is already well settled in Scandinavia, so, an important budget of C$ 200 000 000 is available for the new market. We chose a goal oriented budget strategy. This means that we will adapt our budget in order to fit with our many objectives. We have forecasted on the table below how much we can invest depending on how much money we expect to make off of the market. From 2015, we won’t invest much on promotion as we are expecting to be known by our basis customers. We will then focus more on our notoriety and if needed invest on a brand reminding advert. These kind of adverts are way less expensive, so we will be able plan them and to refund them quite fast.

Budget table per year

2013 Television CBC Radio CBC Internet Subway Artist Total C$ 75 000 000 C$ 75 000 000 C$ 20 000 C$ 10 000 000 C$ 1 000 000 C$ 161 020 000

2014 C$ 10 000 000 C$ 10 000 000 C$ 10 000 C$ 10 000 000

2015

2016

2017

Total C$ 85 000 000 C$ 85 000 000 C$ 30 000 C$ 20 000 000 C$ 1 000 000 C$ 191 030 000

Unfortunately we cannot afford the cable channel, which is definitely an interesting media but it is far too expensive regarding our budget.

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6. SOURCES

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http://www.kilz.com/primer/v/index.jsp?vgnextoid=1d0f90033f9ff110VgnVCM1000 008a05d103RCRD http://www.socan.ca/creators/about-royalties http://www.fichier-pdf.fr/2012/02/19/country-profile-canada/country-profilecanada.pdf http://en.wikipedia.org/wiki/Politics_of_Canada http://www.paintdepot.com/http://www.thecanadianpainters.com/About_Us.html http://www.partnershippainting.com/CA/La-Canada-Painting-Contractor.html http://www.benjaminmoore.com/en-ca/for-your-home/exterior-stains http://www.canpages.ca/business/BC/vancouver/painters-and-paintingcontractors/961-5 87400.html http://www.everyculture.com/Bo-Co/Canada.html http://www.empower-yourself-with-color-psychology.com/color-yellow.html http://www.thecanadianencyclopedia.com/articles/architecture http://www.greenecoservices.com/top-69-eco-paints-and-stains/

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7. ANNEXES
• Value Board PESTEL Russia / Canada

PESTEL ANALYSIS RUSSIA

Politic (coeff 2)

5 : Politically, Russia is stable, nevertheless people have a limited trust regarding the government and the president, this situation leads to some troubles, and people tend to be more and more critical and opposed to the current political governance. 6,5 : Russia did not escape of the Euro-crisis, indeed the growth is not good on the last period, however Russia have a substantial reserve in oil and gas. Moreover, people tend to earn more and more money since a few years and are attracted to new market, new product. Russia is gradually becoming an international country, therefore the citizens are more open-minded to foreign brands, and their purchasing power is also increasing since few years. 7: Russia is democratic, people are free and the government allows everyone to have a free access to education. Russia is now open to the world. Nevertheless some bad points are still highlighted, like the health system.

Economy (coeff 3)

Social (coeff 1)

Technology (coeff 5 : The R&D sector is decreasing since the end of the URSS, 1) nevertheless future project of Russia regarding the information and communication technologies offer new perspective. Ecology (coeff 2) 3 : Ecology is a main question in Russia. Nevertheless the situation is really alarming, indeed the country suffer of lot and various kind of pollution.

Legislation (coeff 7 : Russia follows the same legislation as the international 3) community, this permits to make business easily and safely

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