1. Introduction The living standard and the personal economical assets of the Asian population have increased significantly during the past two decades. As a result of this, the growing middle class in Greater China can afford a higher standard of living which has led to a market boom in both domestic and international leisure traveling. Currently, Chinese, and Taiwanese people has the highest growth rate in the international tourism industry and when the Chinese travel industry polls the public on its dream destinations, no place ranks higher than Europe. This trend is also visible in the Nordic countries where an increased number of Chinese visitors have contributed to a shift in the Swedish and Norwegian tourism business. Swedish hotel industry experienced a growth of Chinese tourists of 420% in five years, and similar numbers have been reported from the neighboring countries.

According to national working policies the Taiwanese population is entitled to 14 paid vacation days per year and 11 days of leave during national holidays. Previously, the Taiwanese trend for traveling abroad has been to limit their vacation to only a week’s stay due to hectic business schedules. However, during the past years a change in this trend can be distinguished and the Taiwanese people, along with other Asian populations, tend to take longer vacations, especially when traveling to Europe. Public polls have also shown that Taiwanese are not only prepared to travel abroad during Chinese New Year but also during the summer to escape the hot and humid local weather.

As a result of the growth in Chinese and Taiwanese people traveling to the Nordic Countries the industry needs to reconsider its value proposition. In most cases, Europeans and Americans traveling to Sweden and Norway usually know sufficient English to get around by themselves. Furthermore, these traditional customers prefer traveling alone or in very small groups, seeing the challenge to organize the trip as a part of the experience. Market research, polls and observations have proven that the Chinese and Taiwanese mentality is of the opposite. Large tour groups are generally considered as a comfort and security. It is also a good way to get to know other people with similar mentality and wishes. Traveling on a group tour with a guide will enable the customer to get a better understanding of the local culture, nature and sights.

2. Problem identification and Business ideaFor Taiwanese people who seek the thrill of travelling to the Nordic countries it can be time consuming to organize a trip including transportation, hotel and potential sights and activities at the destination. This since finding information about these as well as required insurance documents and entering regulations into the country can be a difficult process with or without possessing the required level of English.

In order to gain the type of knowledge and insight in the above mentioned topics several hours of searching on the internet and reading in travelling magazines is needed. Even if one manages to do this it is possible that the trip will result in being more expensive than necessary because of the lack of knowledge about local companies offering alternative solutions to a better price.

Northern Experience sees the above stated situations as a business opportunity and has hence stated the business idea as follows.

Northern Experience aims to offer Taiwanese people a 10- 14 days package trip to Sweden and Norway in the Scandinavian region, during the summer period. The package tour offered includes the whole value chain from booking transportation to and from all destinations to managing the daily schedule of activities during the trip and accommodation.

With the combination of the unique knowledge of travelling in Sweden and Norway and the understanding of Taiwanese culture, Northern Experience will be able to offer a highly focused and satisfying service to Taiwanese customers. The company will have an office situated in the heart of Taipei with both English and Chinese speaking staff to meet the needs for a personal meeting and a more service focused approach.

3. Company structureNorthern Experience will be run as a Limited Liability Company (LLC) based in Taiwan under the name Northern Experience LLC. In current situation this has advantages over other business structures since a LLC is a separate legal entity that limits the liability of its members but still offers the tax benefits of a partnership. Furthermore a LLC only requires a 500’000NT$ minimum registered capital. This capital will be provided equally by the four entrepreneurs for an equal part of shares in the company.

3.1 OrganizationNorthern Experience will be managed by its four owners; Mr. Saamet Ekici, Mr. Vlad Månsson, Ms. Linnéa Petersson and Ms. Carolina Ståhlberg. Each owner has an equal say in the decision making process of the company and large strategic implementations. Although the business structure is flexible, each owner will be responsible for its own area of management. The responsibilities assigned to the owners are chosen with regards to previous education, experiences and qualities.

Organizational structure of Northern Experience LLC

Chief Executive OfficerBeing an experienced project leader in Braintek, a student recruitment company, and with several years of experience from managing a camping in Norway, Carolina Ståhlberg was chosen as the CEO for Northern Experience. She will have the main responsibilities of the company and also be in charge of contacts with suppliers on the Swedish markets. Having gained knowledge of both Swedish and

Chief Executive Officer

Carolina Ståhlberg

Chief Financial Officer

Linnea Petersson

Chief Marketing Officer

Vlad Månsson

Sales and Human Relations

Saamet Ekici

Internal Analysis

External AnalysisMarket Analysis

PEST analysis

Porter’s five forces SWOT analysisTaiwanese corporate management and being highly experienced in the field of travels in Scandinavia, Ståhlberg is well qualified for leading Northern Experience.

Chief Financial OfficerLinnea Petersson will serve as the Chief Financial Officer for the Company. She will initially also have main responsibilities for accounting and budgeting. She is currently perusing a M.Sc in Management of Economics and Innovation where she studies Financial Management and Revenue Management. This gives Petersson hands on knowledge on how to run the financial part of a Taiwanese enterprise.

Chief Marketing OfficerVlad Månsson was elected as Chief Marketing Officer for Northern Experience. Månsson has previously managed a hostel in Norway and also worked as travel advisor within the same enterprise. He has also been working with a student union arranging trips within Scandinavia and Europe. He has studied International Relations at University of Gothenburg, Gothenburg, Sweden where he gained knowledge of international politics and economics, skills considered valuable in the travel industry.

Responsible for Sales and Human ResourcesSaamet Ekici’s previous working experience as responsible for sales at Braintek makes him suitable to be responsible of the sales department at Northern Experience. Being part of the recruitment process at Braintek, Ekici also has prior experience in Human Resources and will thus also be in charge of Human Resources at Northern Experience.

All of the managers have finished a B.Sc. in Industrial Engineering and Management from Chalmers University of Technology, Gothenburg, Sweden and are currently pursuing exchange studies at National Chiao Tung University, Taiwan, which have given them knowledge of the Taiwanese culture and market. As responsible for Corporate Relations at Chalmers International Taiwan Office in Taiwan (http://www.asia.chalmers.se/) Månsson and Ekici have a close relation with the Swedish Trade Council in Taiwan and the Swedish Chamber of Commerce in Taiwan. This can provide the company with a network of potential business partners and assistance in establishing the company in Taiwan.

4. Market analysisThe purpose of the following market analysis is to investigate the attractiveness of the travel industry. This will be executed by performing both an external and an internal analysis of the market and the company. The external analysis will consist of an analysis of Porter’s five forces and a PEST analysis, resulting in the identification of opportunities and threats within the travel industry through Northern Experience’s perspective. The internal analysis will indentify Northern Experience’s internal strengths and weaknesses and these will, together with the opportunities and threats from the external analysis, be combined into the summarizing SWOT analysis.

4.1 External AnalysisTo investigate Northern Experience’s possibility to enter the market, an external market analysis has been executed. Porter’s five forces and a PEST analysis have been used as tools to evaluate different aspects of the travel industry.

4.1.1 Porter’s five forces

Market entranceThe traveling industry is characterized by not being capital-intensive, meaning that companies within this business generally have low fixed costs in an initial stage. The industry has low entry barriers and therefore it is easy for potential new entrants to successfully enter the market. In addition to this, a package tour is not a unique product and do not involve a technique which one can protect with a patent. Thus, it is easy to copy the product and the business strategy of an existing travel agency, which makes the threat for potential new entrants significant.

In order to maintain certain industry standards and practices, which are required for being able to compete on quality and service instead on simply price, a travel agency needs to be insured and fully licensed. It is also beneficial to be a member of one, or several, Travel industry associations, since that is a good way to show to the customers that this is a company which cares about quality and service. This however requires both time- and money consuming actions, and the companies applying for the licenses need to maintain a certain standard in order to receive it. The result is that not all new agencies obtain fully licensing and therefore this is a matter that increases the entry barriers into the travel industry.

Within the travel industry positive word-of-mouth is a key factor in order to be successful. This implies that satisfied reference customers are highly beneficial for a travel agency. As a new entrant on the market one might not have any reference customers yet and therefore cannot take advantage of word-of-mouth, which is a factor that decreases the threat from potential entrants.

Competitors In the market analysis two different types of competitors have been identified. The first type of competitors is defined as other companies offering equivalent package tours to Scandinavia, as Northern Experience intend to offer to its customers. These travel agencies solely offer tours to Scandinavia and specializes on this geographical market segment. The other type of competitors is defined as Taiwanese or Chinese travel agencies offering package tours in general with destinations all over the world, including Scandinavia.

Two of the most distinctive competitors to Northern Experience, which are based in Scandinavia, are Nordic Visitor and Visit Sweden. Nordic Visitor is a travel agency offering customized package tours according to individual customer needs to all the Nordic countries. Nordic Visitor focuses on delivering quality and service to its customers by, besides offering them tailor-made holidays, provide local travel guides who are knowledgeable about the visited area and 24/7 customer service during the stay. It is also possible to combine a visit in two or more Nordic countries in the same package. Visit Sweden, on the other hand, is a communication company, who’s primarily business is to market Sweden and its destinations and experiences within the country on an international market. Visit Sweden is not an ordinary travel agency, as for example Nordic visitor, but it is still possible to book package tours through Visit Sweden. However, these package deals all have a theme such as a golf

trip and a spa- or a castle weekend. They do not offer round trips through Sweden where the customers can experience different sides of the country though, nor the possibility to combine two or more Scandinavian countries.

None of these companies provide sales offices in the countries where the majority of their customers come from. This means that the customers do not have the possibility to visit a sales office in person in order to obtain a personal contact before the departure date. Both Nordic Visitor and Visit Sweden offer their services on an international market and do not focus on a customer segment in a specific market. This means that the information provided on their website is in English and the tour guides offered by these agencies are not Chinese speaking. Furthermore they do not offer package tours including flight tickets from the customer’s home country or pickup services to and from the airport.

The other category of competitors is the travel agencies based in Taiwan or China who offer package tours to Scandinavia. However, none of the players within the travel industry based in Taiwan focuses on Scandinavia. Instead they all have a wide product offer with World Wide package tours. Two of the identified travel agents in this category are EzTravel and Lion Travel. The companies have websites in Chinese and English and local offices based in Taiwan. EzTravel offers package tours to several Scandinavian countries, ranging from 7-14 days.

None of the above mentioned competitors have taken the position as an environmental friendly company and do not express a specific environmental strategy.

The bargaining power of customersThe travel industry is characterized by high competition due to numerous travel agencies providing travel services. The customers using these services therefore have a large bargaining power since they can easily receive information, through the use of internet, about other competitor’s offers. The customers can then compare deals and prices and easily switch to the travel agency with the best offer. This forces the travel agencies to either compete with lower prices, brand awareness or providing unique deals that the competitor’s are not providing.

The threat of substitute products and servicesA travel agent selling travel packages to specific destinations in Scandinavia are subject for competition from substitute products and services that provide the same travel experiences by other means. A substitute product for the contents and experiences of the package tour is for the customer to tailor-make the same trip by him or herself with the use of different travel sites. In this way the customer will be able to travel to the same locations and use the same means of transportation but the total cost for the trip can then be lower compared to buying a package tour.

The bargaining power of suppliersA travel agency providing package tours are dependent on different suppliers for transportation, living, food and attractions. The bargaining power of these suppliers is fairly low. This is because the travel agency is in most cases not locked to any specific suppliers and can choose to use the air companies, hotels and transportation companies that can provide the best services and prices. The bargaining power of the suppliers depends on the flexibility of the travel agency. The bargaining power of the suppliers will be lower if there is a possibility to redesign the travel package before customers purchase the trip, without losing customers, and instead use other suppliers.

However, the suppliers will have different degrees of bargaining power depending on what they supply. A large air company for example, can have a high bargaining power over a travel agency due to its relatively larger size and because not to many air companies fly the specific destination route. The travel agency can then have a harder time to influence and create a close partnership in order to receive discounts and better service. Hotels in a larger city, providing living, will have a lower bargaining power against a travel agency since there are many of them providing the same product and the agency can therefore more easily stress prices and receive group discounts.

4.1.2 PEST-analysis

PoliticalIt is a fact that flying is the means of transport which emits the largest amount of carbon dioxide. Today, the consequences of the environmental pollution are becoming significant and it is the government and ultimately the population who is paying the price. During the past few years several countries have introduced environmental taxes for companies within industries who contribute to the environmental pollution and it is not unlikely that the Taiwanese government will follow this pattern. For companies within the travel industry this action might increase their costs significantly.

During the last few years several serious acts of terrorism have occurred throughout the world, not to mention 9/11 in New York, USA. It is a fact that these occurrences decrease the demand for air travels and the possibility of similar acts in the future might affect the travel industry in a negative way.

4.1.2.2 EconomicalOne of the largest economical threats towards the travel industry is currency fluctuations. In general, the travel agencies allow their customers to make the payments in their own currency, while the travel agency’s expenses are in the destination’s currency. If the currency of the destination increases the price which the customer needs to pay will also be higher, in order for the travel agency not to lose money.

4.1.2.3 SocialThe population of today’s society is becoming more aware of the importance of protecting the environment and a positive trend in customers taking environmental affects into consideration when choosing between companies and products can be identified. However, as stated above, airplanes are the largest emitters of carbon dioxide out of all means of transport. This trend might therefore result in the international travel industry losing customers who chooses more environmental friendly ways of traveling.

Today’s society is a performance oriented society where people in general live hectic lives with tight schedules and long working hours. However, at the same time a positive trend for international travels all over the world can be distinguished. When analyzing the result from our performed market research it is clear that there is a demand for a complete travel solution where the travel agency arranges everything for the customer, from flight tickets to activities at the destination. In this way the customers do not have to worry about, and spend time on, the arrangement of the trip, but can still enjoy a unique travel experience.

4.1.2.4 TechnicalSince Northern Experience does not offer a physical product, but a service the technical part is not crucial to consider when analyzing the attractiveness of the market. This is the reason for excluding this parameter from the PEST analysis.

4.2 SWOT-analysisThe SWOT-analysis consists both of the identified opportunities and threats from the external analysis and the identified strengths and weaknesses from the internal analysis. Northern Experience can, by combining these four, get a clearer picture of how to use its strategic assets and competencies to counter threats as well as use opportunities to minimize its weaknesses. The SWOT-analysis is used to develop the business strategy and the product.

4.2.1 Internal analysisAn internal analysis has been conducted to provide an understanding of Northern Experience strategically assets and competencies. An evaluation of the company’s strengths and weaknesses is needed in order to find competitive advantages and develop successful strategies.

StrengthsOne of Northern Experience strength’s is its segmentation focus. There is a wide supply of different package tours to Sweden but these are not specifically targeting Taiwanese tourists. Northern Experience have the ability to locate an office in Taiwan where customers can visit and discuss in person with a travel consultant about their travel plans. The company also has the ability to create a homepage with the information in both English and Chinese in order to make it easier for Taiwanese people to book a trip, since many experience English to be a language barrier. The ability to communicate with the customers in Chinese, their native tongue, is not only limited to reservations for the trip. Northern Experience can provide a tour guide who is fluent in Chinese and who will be available to service the customers during the entire trip.

The management of the company is Swedish and all partners have a great insight to Swedish culture and sights with a diverse local knowledge of different parts of Sweden. All the managers have experience from living in Taiwan and have an understanding of the Taiwanese culture and some Chinese language skills. The management’s experience and knowledge of both countries is one of the company’s greater strengths since it gives more credibility for the customer and an opportunity to give the customer a superior customer service. Northern Experience can keep the Taiwanese customers more satisfied than competitors since the company can design the package tour after Taiwanese preferences such as providing Asian food and Chinese-speaking guides.

Furthermore, all the managers have experience from working in the travel and service industry. This is a valuable competence since insights in how the travel industry works, together with knowledge about customer behavior and expectations is important when developing successful strategies for Northern Experience. Two of the managers also have experience of setting up and running a business on the Swedish market. This valuable competence is useful when setting up Northern Experience in Taiwan since the experience of time calculations, risks and to avoid general pitfalls of entrepreneurship also implies here.

WeaknessesThe management of Northern Experience have no previous experience of setting up or running a

company in Taiwan. Also, the company has no licenses yet and no memberships within different travel organizations. In the customers eyes this can weaken the credibility of the firm. Furthermore, the company does not have any established relations to different marketing channels in the country. This is a weakness since the company can then encounter problems with not being able to communicate its services to its potential customers. The company lacks brand recognition due to its newness and has no reference customers at this stage which makes it difficult for the company to take advantage of word of mouth. Northern Experience is therefore dependent on the local marketing channels.

Another weakness is that the management lacks an extensive knowledge about the Taiwanese culture and the travel industry in Taiwan. This creates higher uncertainties about how valuable Northern Experience products are for Taiwanese travelers who want to go to Scandinavia. Moreover, no one in the management possesses the required IT-knowledge to set up an intranet and a website. The company therefore has to outsource these parts.

At this stage Northern Experience do not have any established relationships with suppliers in Sweden. This is a weakness since it is then more difficult to ensure the quality of the package tour. The risk of something going wrong with time-tables, activities or service is greater in the beginning.

4.2.2 Opportunities and ThreatsThe identified market factors in the external analysis are considered to be either opportunities or threats based on the perspective and strategy of “Northern Experience”. These factors are important to take into account when developing a successful future business strategy for Northern Experience.

OpportunitiesAs previously mentioned there are no competitors on the current market who solely focus on one specific geographical customer segment. This is an opportunity from Northern Experience perspective, since its business idea is to deliver package tours to Scandinavia only on the Taiwanese market. In this way the company can focus its competence and knowledge on one market and create a brand here, which will be favorable to achieve future growth.

As described in the competitor part, there exist direct competitors who offer package tours equivalent to the ones Northern Experience intend to provide. However, none of them have sales offices in Taiwan. This is considered to be an opportunity for Northern Experience since it will set up a sales office in Taiwan in an initial stage. This will attract customers who are not confident in arranging their travel bookings online and prefer the traditional way with the possibility to go into an office and book a trip through a personal relation with a sales person.

None of the previous mentioned competitors that only specialize on Scandinavian tours offer information on their websites in Chinese, or Chinese travel guides. This is an opportunity for Northern Experience since the performed market research indicates that these factors are requests from the potential customers. Seeing that, in general, Taiwan’s population’s level of English is somewhat lacking, the fact that Northern Experience will provide Chinese information and Chinese travel guides will add value to the perceived travel experience as well as attract more customers to the agency.

Northern Experience is not entirely bound to any specific travel routes in Scandinavia and can therefore be flexible when it comes to arranging the package tour. This is important if for example

train tickets to a specific destination become very expensive. The company can then rearrange the trip and choose a destination which does not cost as much. However, this scenario is only possible when designing different travel routes and not after a customer has purchased the trip. Northern Experience flexibility implies that the company is not overly dependent on its suppliers. The company can therefore play off its suppliers against each other to get better deals and prices. However, the goal is to find suppliers that it can create beneficial long term relationships with in order to create a better product.

The, in the market research, identified demand for a complete travel solution is considered to be an opportunity for Northern Experience. This because “Northern Experience” business idea is to offer package tours to Scandinavia as well as being responsible for all the administrative work that the trip involves, allowing the customer to simply enjoy the trip.

Threats Costumers high bargaining power is a threat to the company since it is relatively easy for them to switch to a competitor that provide similar package tours. This increases the pressure on Northern Experience to differentiate its product and have a unique product which offers more value to the customers compared to competitors. Another threat to Northern Experience is the increasing amount of user-friendly online services that can provide different parts of a package tour, enabling the customer to tailor-make the trip by him or herself at a lower cost.

As mentioned in Porter’s five forces analysis, the travel industry is not a capital intensive industry and it is characterized by low entry barriers for potential new entrants. Through the perspective that Northern Experience is already established on the travel market, this factor is a threat, since it facilitates the entry on the market for newly established companies. The result will be a higher level of competition within the industry.

There already exist companies on the current travel market who provide equivalent package tours to Scandinavia as “Northern Experience” intend to offer. There are even competitors who have chosen a similar market position as Northern Experience as being an agency which focuses on quality and customer service, for example “Nordic Visitor”. This is considered as a threat in the following SWOT analysis.

Since Northern Experience is a company within the travel industry a governmental introduction of environmental taxes on flights is considered to be a threat towards the company. This action would increase the price for a flight ticket and consequently result in higher operating costs for the company. The increased price will also lower the customer demand for flights and hence decrease the company’s sales and ultimately its profit.

The potential fear of future acts of terrorism, which was identified in the PEST analysis, is considered to be a threat towards Northern Experience since this might decrease the demand for flights and hence result in lower sales.

As stated in the PEST analysis the existence of currency fluctuations are considered to be a threat towards the travel industry and consequently Northern Experience. This statement is based on the facts that Northern Experience will allow their customers to pay in Taiwanese dollars while they have suppliers situated in Sweden and Norway and hence costs in these currencies. Assuming that the

value of either the Swedish Krona or the Norwegian Krone increases, the price for the tour and the included events will also increase. If Northern Experience wants to maintain its profit it forces them to charge their customers a higher price at risk of losing customers who are not willing to pay this extra fee.

As previously mentioned, the world’s population is becoming more environmentally conscious. Based on the fact that “Northern Experience” is a travel agency offering Scandinavian package tours on the Taiwanese market and that flying is the only possible means of transport to and from the destination, this increasing trend is considered to be a threat to “Northern Experience”.

4.2.3 Summary of the SWOT-analysisThe company’s internal strengths and weaknesses together with its opportunities and threats identified in the external analysis is summarized in the table below.

5. Market planThe market plan, including strategies for segmentation, differentiation and positioning, is based on the result from the previous market analysis and a market research. The result from the executed survey is summarized below in the part regarding customer needs. The respondents were only Taiwanese inhabitants in the upper middle age, having a stable income of about 70 000 – 100 000 TWD a month.

5.1 Customer needsIn general Taiwanese people only take one week of vacation when travelling abroad. However, the market research has shown a trend towards a higher willingness to spend even two weeks when travelling to Europe, and the Nordic countries.

When travelling abroad the best period for Taiwanese is around the Chinese New Year. Factors as climate, distance to the destination, scenery, nature and wildlife, culture and history, food, shopping and cost for the trip are taken into consideration when deciding where to go. Among the respondents that have travelled to Europe, keywords such as exotic, history, architecture and cuisine were occurring several times as reasons for having Europe as a travel destination. When considering if travelling to Europe or not factors such as cost of trip and possible length of vacation were important. For the respondents that have not been to Europe parameters such as cost, distance and difficulty to organize a trip and vacation possibilities acts as barriers.

In the market research the respondents expressed it to be a challenge to organize a trip to Scandinavia on their own, due to a lacking level of English. Even if it is relatively easy to buy a flight ticket to Scandinavia from different travel agencies who offer web sites and service in Chinese, once arriving there it will be hard to communicate without having basic English skills. The need for information about the trip in Chinese and a Chinese speaking travel guide could be distinguished from the result of the market survey.

The result from the market research showed that the older population, in general, finds it too difficult to comprehend how to book and organize a whole trip just by using web services. They would therefore prefer to buy their ticket from a travel agency office. Here the respondents also express the value of having a local travel agency office for being able to have personal contact when planning such a trip.

In general Taiwanese people prefer to travel in larger groups in an organized environment because it will help them overcome the barrier of uncertainty and fear when deciding to travel or not.

In the survey the respondents expressed a wish to experience the food, coffee and tea shops, Santa Claus, northern light, ocean, shopping, local handcraft and local traditions when travelling to Scandinavia.

Below is a polar diagram of what Taiwanese would like to experience on a trip to Scandinavia showing the most popular factor being the Swedish and Norwegian culture.

Animal life

City

Mountains and snow

Coastal experiences Scandinavian culture

Food

Sports activities

0

5

10

When presenting Northern Experience’s intended package trip to Scandinavia, the respondents stated that they were willing to pay between 100 000 – 200 000 TWD for a 10-14 days package trip.

5.2 The offerNorthern Experience’s offer to its targeted customers is based on the result of the market analysis, market research and identified customer needs.

The productNorthern Experience provides a unique package tour where transportation, accommodation and some activities already is included. This means that the customer will not have to worry about the arrangements of the trip and can therefore arrive at the destination in a peaceful state of mind. Thus the first part of the offer is to be able to travel to an exotic part of the world with minimized uncertainties and stress.

The package tours to Scandinavia will be offered in Gold and Platinum packages depending on the luxury level required by the customer. The Gold package represents 2-3 star hotels with basic transportation. The Platinum package will offer the customer a higher hotel standard combined with the possibility to travel in business class when flying to and from Scandinavia.

On arrival, the customer will be picked up at the airport in Stockholm by a co-operation partner and left off at their respective hotel. The package tour will begin with city sights in Stockholm and its surroundings. From Stockholm the customers will travel on through Sweden and Norway for 10-14days, by bus or flight when required. Since some Taiwanese people will not be able to travel for the full 14 days there will exist an option to return back home within 10 days. Along the way, the group will visit the two countries most interesting and exotic sights and engage in typical Scandinavian activities. Some examples are glacier walking, visiting castles and Viking ruins, boat travel in the Swedish archipelago, experiencing local food and culture and watching Nordic animal life like moose, lynx and dears. To be able to customize the tour the customer can purchase a so called Experience package which includes extra activities along the route. For example when traveling to northern Norway to see Northern Light the customer can also choose to purchase a Whale Watching day trip. Throughout the whole trip the customers will be accompanied and informed by a Chinese Speaking guide with extensive knowledge of the Nordic countries.

Stockholm has a unique archipelago, the old town, the king’s castle and great shopping. Central Sweden is a place of striking natural beauty with the Great Copper Mine in Falun, a UNESCO World Heritage site. Northern Sweden is Europe’s last remaining wilderness and also the ancestral home of the Sami, the indigenous people of the region, with unique traditions and culture. In this region you also find wildlife such as bear, elk, the wolverine, the golden eagle and the rare Arctic Fox . Furthermore northern Sweden is the place to be if you want to experience Midnight Sun and the amazingly beautiful Northern Light.

Bergen is an international city packed with history and tradition, a big city with small-town charm and atmosphere. It is also home to the world's biggest gingerbread cityCentral Norway offers easy accessible fjords and here you can engage in activities such as glacier walking, ride a fjord horse, go fishing or even try on skiing if you dare. In the south of Norway you can find a unique rocky coastline and experience traditional crafts, folk music and dancing. In the Arctic Circle area you can enjoy dog sledging, ice fishing or just try traditional Sami food and local products of reindeer, cheese, fish and birds.

Norway Sweden

The companyNorthern Experience will have an office located in the heart of Taipei in an easy accessible area near a subway station. The office in Taipei will act as head quarter where both Taiwanese and Swedish staff will work. The company will also have a smaller office located in Stockholm, Sweden where guides and administration will work.

The company will strive to always cooperate and work with suppliers who show a high environmental awareness. If given the choice, Northern Experience will work with the company that leaves the lowest negative environmental footprint.

The above is an example of sights and activities a customer will experience when traveling with Northern Experience.

5.2.1 DifferentiationThe differentiation of Northern Experience’s offer is based on the opportunities and gaps identified on the market in the external analysis.

As mentioned previously in the market analysis, there are no competitors on the current market who solely focus on package tours to Scandinavia while offering information in Chinese with Chinese speaking travel guides. Northern Experience will use this combination, together with providing a sales office in Taiwan, to differentiate their offer from competitors. In this way the company will provide a unique and appealing offer that is specifically designed according to Taiwanese culture and preferences.

Northern Experience will differentiate themselves from its competitors on the Taiwanese market by being the only Taiwanese travel agency that specializes on package tours to Scandinavia.

The company will differentiate their product by offering an experience package in addition to the standardized base package. The experience package includes additional activities throughout the route which will give the customer the feeling of being able to customize their trip. This will also give Northern experience increased sales which will result in higher revenues.

The fact that Northern Experience will offer the customer the choice to buy either a Gold or Platinum Package is a way to differentiate the product.

The management’s knowledge of both Taiwanese and Scandinavian culture enables the company to provide a superior customer service compared to its competitors.

As mentioned before in the PEST analysis, the Taiwanese people show a higher environmental awareness when traveling. This together with the fact that none of the competitors have taken the position as the “green” and environmental friendly travel agency supports Northern Experience’s choice to differentiate themselves as the most environmental friendly company.

5.2.2 PositioningThe market position of Northern Experience’s product is of great significance for attracting the target customer. Northern Experience aims to position themselves on the Taiwanese market as the number one travel agency providing package tours to Scandinavia with the highest quality, customer service and environmental strategy. In addition to this position, the company aims to be recognized as the travel agency offering unique travel experiences that differs to the mainstream ones. This position will contribute to Northern Experience goal as being top of mind according to their customer segment. In order to achieve the wanted market position it is crucial to keep the keywords, stated in the figure below, in mind when developing a successful marketing strategy.

Northern Experience

Superior Service

Unique travel experiences

Top of mind

Environmental friendly

Quality

Exlusive

5.2.3 Segmentation strategyNorthern Experience segmentation strategy is based on several different criteria. The company segments its customer after geographic segmentation to only focus on the Taiwanese market. This strong niche focus will enable the company to become experts of one market. The Taiwanese market is further segmented after lifestyle and behavior criteria. The product is suited for and targets adults, especially seniors, since this generation is more reluctant to book trips by online sites but prefer to use travel agencies. They are also most likely to have the ability to take vacation for two weeks. Moreover, the strategy is to target people who enjoy to travel in a group and who do not have the time organize the trip or simple prefer to buy a finished package tour.

5. 3 Sales and Marketing StrategyA sales strategy is needed to establish a customer base and increase sales. To accomplish this Northern Experience will use a “recruit a friend” strategy. This means that if a customer who has booked a trip with the company also gets a friend or a family member to book a trip that customer will receive a discount. Another way to increase sales is to offer group discounts.

In order to communicate with the customers, Northern Experience has developed a promotion strategy to create awareness about the company which will inform, persuade and achieve a higher level of trust among the customers. One of the promotion strategy tools is the use of internet as a means of mass advertising. By using several social media networks, such as facebook, twitter and blogs the company can market its offer in a cost-effective way. This marketing channel might not target the direct customers since these channels are more used by younger generations. However, by using this channel, information can spread fast and Northern Experience can create a media buzz about its products which in turn can spread to its target customers. Furthermore, the company will advertise through popular Taiwanese search engines, such as yahoo, by paying for being the first travel agency that shows when searching for different combinations of keywords, such as “Scandinavia”, “Nordic” and “package tours”.

The company will also seek to sponsor and participate in events in Taiwan that has a connection to Europe, especially Scandinavia, and traveling. This promotion strategy is most probably more costly than the mass advertising. However, in this way Northern Experience can directly target the people who are interested in Europe and Scandinavia. This kind of promotion strategy is valuable because the likelihood of persuading a customer is higher after establishing a personal contact with the customer. The company will also promote its products by offering information brochures in strategic places, such as travel expos and international airports.

5.4 PricingNorthern Experience pricing strategy is value-based instead of being based on margins and cost. This is because the company does not possess the strategic competences and assets needed to compete on price. Instead the company possesses other strategic competences and assets, which enables the company to provide a unique product, and the targeted customers will therefore value this product more compared to competitors’. This enables the company to use a value-based price strategy. However, since the industry is highly competitive this has to be taking into consideration when

setting the price strategy. Since the product is not of a complex technical character and fairly easy to copy it will be more difficult to charge a price giving large margins.