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|1.||THE EXPORTER COUNTRY: SETUZA||3|
|1.1.||Why to export Latvia||4|
|1.1.1.||Margarine market in Latvia||5|
|1.2.||Why to export Hungary||5|
|1.2.1.||Margarine market in Hungary||5|
|2.||COUNTRY AND SECTOR RESEARCH||6|
|2.1.1.||Latvian margarine sector research||7|
|2.2.1.||Hungarian margarine sector research||8|
|3.||ENTRANCE STRATEGY CHOICES||10|
|3.1.||Types of strategies||10|
|3.4.||Hungary and Latvia||14|
|7.2.||Types of foreign payments||22|
|8.1.||Pricing strategy for Latvia||24|
|8.2.||Pricing strategy for Hungary||25|
1. THE EXPORTER COUNTRY: SETUZA
SETUZA, a. s. is the most important company in the Czech Republic which processes oilseed. The name SETUZA is a contraction of SEveročeské TUkové ZÁvody, which means Nord Bohemian Fat Works, and the a. s. means that it is a joint stock company. Their product portfolio contains edible plant oils and fats, margarines, detergents, tooth pastes, men cosmetics, and soaps.
The history of the company starts in 1848 when Mr. Schicht, a butcher and a farmer in one person, received a licence for processing soaps. Firstly, it was a family company named Schicht after its founder and as the time went, it grew bigger and bigger and at the end of the 1890’s it was one of the most important factories in the Austrian-Hungarian Empire. Due to the brake-up of the monarchy after the WWI, the company lost a huge part of its market and decided to export. After the communist takeover it became a national corporation. In the 1990’s it was privatized. Even though the company focuses on the Czech market, it also operates on other 20 markets, including Slovakia, Poland, Germany, Hungary, Croatia, Bulgaria, and Latvia.
The company has the ISO 14001 certificate of environment protection compliance and ISO 9002 quality certificate. The company is also certified by HACCAP system according to Codex Alimentarius for vegetable oils, fats and margarine production. The company was also awarded by other awards which are very important, such as:
• Quality Czech Republic Award,
• National quality mark KLASA (2004: edible oils and fats –13 awarded products),
• National quality mark CZECH MADE (for Alfa vital – vegetable margarine with insulin and Vegetol – vitamin enriched sunflower edible oil),
• Zlatá Salima 1996 (Alfa plus – delicate spread margarine),
• and GASTROCUP 1998 – prestigious award for long-term quality.
SETUZA produces six types of margarines.
• Bianka Fit – low energetic margarine (25 % of fat), fulfils the requirements of modern and healthy life style, it is enriched by vitamins A and E, suitable for cold meat.
• Alfa Vital – margarine with soluble inulin fibre gained from the root of chicory.
• Alfa Optima – soft margarine with butter flavour.
• Diana light – low energetic margarine (40 % of fat), enriched by vitamins A and E, suitable for cold meat.
• Stella – margarine with butter flavour and suitable for baking.
• Lukana cukrářská – margarine dedicated for baking.
We have decided to export margarines to Hungary and Latvia. The company already exports to these countries, but not margarines. There is a potential on the both markets. In our marketing strategy we are going to focus on healthy life style.
1.1. Why to export Latvia?
• Business friendly; low bureaucratic obstacles;
• Transparent legal and judicial system;
• Business without borders – EU;
• State support programmes.
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