Slide 1Company BackgroundInternationalMission Statement Why pay more when you can pay less?Customer profileWhat Netto Offers…S.W.O.T. AnalysisBibliographyPresented By, Nanna Friedberg Martin Jensen Michelle Parsons George YerkouichCompany BackgroundCompany BackgroundNettoNetto was founded in 1981 and has since then expanded was founded in 1981 and has since then expanded to England, Germany, Poland and Swedento England, Germany, Poland and SwedenNetto is part of a bigger corporation called Dansk Netto is part of a bigger corporation called Dansk Supermarked (the biggest retailer corporation in Supermarked (the biggest retailer corporation in Denmark)Denmark)Netto is a discount grocery store and today Netto has 371 Netto is a discount grocery store and today Netto has 371 stores located in Denmark, 243 in Germany, 169 in stores located in Denmark, 243 in Germany, 169 in England, 111 in Poland and 78 in SwedenEngland, 111 in Poland and 78 in SwedenThe stores are being built in sizes of 500-1000 m2, all The stores are being built in sizes of 500-1000 m2, all located down town in each city and carry more than 1000 located down town in each city and carry more than 1000 different products. different products.InternationalInternational78 stores169 stores243 stores111 storesMission StatementMission Statement Why pay more when you can pay less?Why pay more when you can pay less?At Netto we have a firm belief in what we are doing. And it’s this At Netto we have a firm belief in what we are doing. And it’s this philosophy that runs right through the company from top to bottom philosophy that runs right through the company from top to bottom allowing us to continue to offer you the very best products, service allowing us to continue to offer you the very best products, service and prices week after week.and prices week after week.Sell the best quality products at the lowest possible pricesSell the best quality products at the lowest possible pricesHave the most efficient operation in the industryHave the most efficient operation in the industryWork conscientiously as a teamWork conscientiously as a teamEnsure everyone at Netto enjoys their workEnsure everyone at Netto enjoys their workAct in a professional manner at all timesAct in a professional manner at all timesCustomer profileCustomer profilePrice sensitive customersPrice sensitive customersConsumers interested in one-stop Consumers interested in one-stop shop convenienceshop convenienceWhat Netto Offers…What Netto Offers…Netto carries over 1100 productsNetto carries over 1100 productsNetto offers fresh fruits, vegetables, and Netto offers fresh fruits, vegetables, and meats which are delivered daily direct meats which are delivered daily direct from the sourcefrom the sourceNetto also offers things such as clothes, Netto also offers things such as clothes, gardening supplies, and “do it yourself” gardening supplies, and “do it yourself” homecare.homecare.S.W.O.T. AnalysisS.W.O.T. AnalysisStrengthsStrengthsGreat to adjust due to change in Great to adjust due to change in consumer behaviorconsumer behaviorEconomies of scale with hyper Economies of scale with hyper markets (i.e. markets (i.e. FøtexFøtex and and BilkaBilka) in ) in Denmark (not in the same degree in Denmark (not in the same degree in Europe though)Europe though)Part of Part of A.P. Moeller – MAERSKA.P. Moeller – MAERSK(biggest shipping company in the (biggest shipping company in the world, revenue approx 1/6 compared world, revenue approx 1/6 compared to WalMart )to WalMart )WeaknessesWeaknessesEasy to imitate pricing strategyEasy to imitate pricing strategyLow bargain power compared to Low bargain power compared to Tesco & ASDA in UKTesco & ASDA in UKYou pay for your You pay for your carrier bagcarrier bag!!!!!!OpportunitiesOpportunitiesExport to other European countriesExport to other European countriesExpand Expand DøgnNettoDøgnNettoExpand in Private labelsExpand in Private labelsThreatsThreatsOther discount stores:Other discount stores:AldiAldi, , LidlLidl (German), (German),FaktaFakta, , SuperBrugsenSuperBrugsen (Danish) (Danish)TescoTesco, (United Kingdom), (United Kingdom)AsdaAsda (Part of the WalMart family) (Part of the WalMart
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