The market potential for premium beds in Moscow. Case company: Joensuun Sänkytehdas Oy

Abstract

This thesis paper introduces the Finnish producer of premium beds, Joensuun Sänkytehdäs Oy, and its potential plans of expanding on the Russian market. Currently the company sells its beds in St. Petersburg through the Gedoni retail chain and is interested in extending its business operations to the markets of Moscow. The aim of this research is to investigate the premium bed market in Moscow and to create a marketing strategy for the company. The company is planning to export three product lines, such as Koitere Platinum, Koitere Silver and Koitere Diamond.

The paper contains a description and analysis of the business environment in Moscow and the current situation of Moscow’s premium bed market. The reasons for choosing Moscow as a potential market for expanding business operations are size of the market, the standard of living, the demand for premium furniture and similarities with the St. Petersburg market.

The business environment of Moscow was analyzed with the use of PESTLE macroeconomic factors relevant to the industry. The competitive analysis describes the company’s competitors and their business operations in Moscow. The marketing analysis includes the description of products for export as well as the lists of potential distributors and promotional channels.

Conclusion and recommendations for the market entry are given based on the research and interviews with industry experts.