market. Finally, we note that, while not without its nuances, Swedish national culture is very similar to Danish national culture across a number of key dimensions as measured by several researchers. Such a conclusion is particularly important in relation to work practices and culture, such that the opportunity exist for Irma to replicate its strong values‐based management style and organizational culture so that employees would be equally successful in living the brand in Sweden as they are in Denmark.
Nevertheless, it is only to be expected that Irma would have to adapt in certain respects to both potentially subtle differences in national culture and potentially distinct trends in the Swedish marketplace. For example, based on the Swedes’
demand for Swedish regional specialties, we would recommend a slight adaptation of Irma’s assortment offered in such a way as to be 100% consistent with core brand DNA.
While some of our findings are of course case specific, others can be extended to the challenges of premium retail brand internationalization more generally. From a process perspective, clearly a prerequisite to brand internationalization is the need for the brand identity, DNA, image and dynamics to first be fully understood in the context of the home market. Such an analysis provides invaluable insight into both how the brand differentiates itself and the eventual basis for brand‐consumer relationships.
Next, and equally clearly, the new potential host market must be analyzed from a brand and consumer behavior perspective. Not only must such analysis provide the required information on the competitive brand landscape, societal trends and consumer needs and wants, but it should also provide a clear indication of whether the same linkages are likely to exist relative to the development of brand‐consumer relationships among the target segments, and whether organizational processes required to support the brand are likely to function in the new context. In both of these cases, cultural factors could well have a significant impact and thus deserve special attention. Finally, by linking the brand analysis in the home market with that of the new potential host market, a fully understanding can be developed of how the brand could hope to differentiate and position itself in the new market and thus succeed despite any initial handicaps due to lack of market presence and experience.
In addition, the identification of important local market or societal trends, together with any idiosyncratic consumer behavior, would be an integral part of developing a full understanding of the needs and wants of the chosen target segments.
Psychographic and socio‐economic segmentation tools, such as VALS, should be considered as important aids in evaluating the attractiveness of various target segments, as well as the match between the firms offering and the segments’ needs and wants. Finally, certain implicit expectations are likely to be associated with premium brand internationalization. In particular, consumers are likely to demand tangible and intangible support for the premium status, including superior quality and service, broad assortments, inspiring store environments, and a certain cachet or exclusivity associated with the brand identity and image.
With respect to the concrete business case central to this thesis, namely the internationalization of the Irma brand from Denmark to Sweden, we conclude that in general it would be relatively simple for Irma to transfer the more tangible facets of the brand, such as the focus on quality and service, the assortment, the logo and slogan, and the store concept. Clearly the intangible elements of the brand, such as the cachet of the brand image and brand reputation would take time to develop, as would strong brand‐consumer relationships. However, it is also precisely these intangible brand elements that both function as the strongest differentiators and are more difficult for competitors to replicate, and thus are more likely to create a sustainable competitive advantage. Thus, our ultimate conclusion in the case of Irma is that their premium brand strongly anchored in the Danish grocery retail market can and should be internationalized to the Swedish market by transferring the tangible elements of the brand into the largely vacant corresponding brand niche within the Swedish retail grocery market. While the process of establishing and developing the corresponding intangible elements of the brand will clearly take time, we are confident that the prospects are quite favorable if Irma can leverage its existing organizational process and culture within the Swedish market. Simultaneously, we also suggest that it is imperative for Irma to take into account the conditions and trends of the host market.
Therefore a strategy of brand glocalization executed in a manner consistent with core
brand‐DNA will no doubt be required. Nonetheless, given the close correspondence of societal and consumer trends between the two countries, as well as the close similarity of their two cultures, we conclude that Irma’s chances for success in such brand internationalization are in fact quite promising. Thus, despite Josefsen’s outstanding insight and leadership in piloting Irma to the success it enjoys today in the Danish market, we find quite unfounded his contention that it is impossible to transfer the brand to the Swedish grocery retail market. Given that he would certainly be the ideal candidate to prove himself wrong, we can only hope that when the time is right he will reconsider.
7. References