TV and Internet
Workers’ gross average monthly income in 2000 was DKr 19,790. Household incomes tend to be high in Denmark, owing to the large proportion of working women. There is a big difference between the gross income and the disposal income. The personal disposal income, income after paying the taxes, in average comprises of 66. 8 percent of the gross personal income. 4 It is caused by the high levels of taxation in Denmark, and at the same time the disposal income remains still high. Usually in the family both of the partners tend to have full-time jobs and it also brings the rather high income of the whole family.
However in Copenhagen and i?? rhus areas the incomes tend to be higher than in the rest of the country. We can conclude on this that Danes can afford to spend more money on the services and products of high price and which are not of the first importance. It is cohered with the demand of service products of the Eventmakers where the customers can spend more money on the activities and parties. – Occupation The size of the active population (those in work plus the unemployed) is about 3 million people. The labour force is slowly increasing through the last years.
At the same time the unemployment rate is fluctuating, it was about 5 percent in 2002. 5 In Copenhagen and i?? rhus most of the jobs exist, mainly in the service industries, public institutions and particular business services. In the case of the Eventmakers when a big segment of customers are companies, it will be necessary to promote the company in the big cities, however it is necessary to be aware of the competition in this areas and the attitude of the customers towards the events and leisure activities. – Educational level There is a traditional awareness in Denmark of the importance of education.
The result is a well-educated population with a high proportion of university graduates. Today, 83% of young people complete a secondary education programme and 40% complete higher education. In addition, great emphasis is placed on providing further education to the large proportion of the current workforce educated only to elementary school level. Quantity of customers with high educational level means the high demand for the quality of the product and the way it is delivered. We can assume that education institutions are another potential segment and that educated customers will require parties on a different intellectual level.
– Level of urbanisation: Denmark consists of the peninsula of Jutland and around 406 islands, 78 of which were inhabited in 1997. Of these, the largest and most densely populated are Zealand (on which Copenhagen, the capital and the biggest city is situated), Funen and the north Jutland Island. Most of the Danish population, 85%, live in towns and urbanized districts. Just fewer than 1. 8 million people currently live in the metropolitan district of Copenhagen rhus is one of the others major urban centres in Denmark, with a current population in the region of 215 thousands.
The major part of the country is covered by a network of small and medium-sized towns. Jutland represented Denmark’s fastest-growing region over recent years, reflecting the large number of municipalities situated on the Danish peninsula. The growth of service sector jobs in particular, in towns and cities like i?? rhus, Silkeborg, Vejle and Aalborg attracted new people to the region. If we will compare the income of the population and where the biggest part of active population is settled, we can assume that customers with high income are mostly living in the big cities such as Copenhagenrhus.
They will be more likely to purchase the company’s products. b) Media: Almost all of the Danish household have a television and 60% of these have cable TV or a satellite receiver. There are three nationwide channels, of which most frequently watched channels are TV2 and DRTV (Denmark’s Radio’s TV station). Although around a third of the population read two or more newspapers a day, just over one-in-four do not read a newspaper at all. Most of the newspapers, even they are popular, have difficulties that can be explained because of the competition from electronic media, such as TV and the Internet.
Through the last years there is a trend in increasing of circulation of non-daily newspapers over daily ones, and in the year of 2000 it comprised both of about 50%, at the same time the growth of non-daily is about 20 % from the last ten years. There is a decrease in the penetration of weekly magazines, however family and women’s magazines are the biggest magazine publications in terms of circulation. The last years there was an increase in the circulation of specialist monthly magazines, particularly in sectors such as computing and sports, reflecting overall trends in leisure activities.
Regarding this section we can conclude that the customers are becoming more and more TV and Internet oriented therefore the company could use these media to promote and to inform the clients. c) Technology: In this part we will look at the technological development in the country and to the proportion of people having personal computer (PC) and using Internet, mobile phones and other accessories. The number of PC’s owners is relatively high in Denmark and increases through the years. In the year of 2000, 66% of Danish households possessed a personal computer, say the national statistical offices.
We also found out that Denmark had the highest rate of internet access, mobile phone take-up and e-business implementation in Europe in the year of 2002. 6 In 2000, there were around 2. 1 million Internet users in Denmark. 7 Most of the Danes having access to the Internet from their homes; however other locations include schools, work places, public libraries and colleges. Today, the Internet is considered a common mean of communication, in line with the telephone and well ahead of the postal service.
E-mail services via the Internet took over most of this traffic and the general use of Intranets, Extranets, inter-company mailing systems and e-mails between companies helped familiarize many Danes to the Internet. E-commerce or e-trade is increasing and you often hear of deals made via the Internet. From these analysis we can conclude, the company should make use of this IT development in Denmark. Using IT for marketing purpose in order to get in touch with wider sort of customers and improve customer relations would be beneficial.
According to our opinion the company should extend their use of information technology also for internal purposes of the company. d) Attitudes: In this part we will try to come across the attitudes of Danes towards the products and services of the same or similar type as Evenmakers is providing to their customers. The attention will be mostly concentrated on the patterns and priorities of the people to the leisure and entertainment and the way these activities are organized. We will also look at the consumer expenditure patterns if it is popular in Denmark to have entertainment activities.
In the companies it is popular to celebrate events, such as birthdays of the company or employees, the date of long working experience in the company, as 5, 10 years and other occasions. The significant event which most of the companies are celebrating is Christmas, which can take more than several days when personnel is meeting together. These meetings usually take place in restaurants or in the nature – outside of the big cities. In 2000 one tenth part of total consumer expenditure was spent on leisure and entertainment.
The most famous type of activities is sport where almost one of two Danes is engaged. The popularity of sport activities is increasing in Denmark both for participation and as spectators. However the most popular types of sports are concerned with water activity and those in the fresh air, for instance sailing, swimming, canoeing and kayaking, rowing and cycling. Many of Danes own a holiday cottage, most of which are located in rural areas, that indicates that people are interested to escape the hectic environment of cities.
There is also a pattern in the leisure activities to visit pubs and bars, the favourite activity outside the home is cinema, theatre-goers, situated in Copenhagen, are also popular. Concluding on attitudes towards events and parties we can say that it is quite popular in Denmark and the company can increase the product’s range to serve more segments, not only business people for example, but also family’s activities or provide more types of events, however for this purpose we are going to analyse later on the company’s products portfolio.
e) Cultural changes: Cultural factors which affect the company, in some cases are very difficult to identify and analyse, they are usually based on the conditions and environment in which people are living. There are some rapid changes in the country happening in the population mix with regard to the cultural base, language, religion, age distribution, social class and ethnic origin. If we will look again into population variables we can see that most of people living in the country are Danes but 7% of total population are immigrants and refugees.
However there is a trend of increasing the number of foreign nationals coming to the country and it can have strong impact on the society and culture. The company should be aware of these changes because it can happen to be positive, if more people will purchase their products, or negative, if these nations will influence original inhabitants to change their attitudes against the company’s offer. f) Financial situation: Economical analysis has the same importance as the other factors because markets are requiring purchasing power as well as people.
The economic environment consists of factors that affect the consumer purchasing power and spending patterns. Danish economy is characterised by dependence on the foreign trade and that’s why they have a strong interest in free exchange of goods and services across its borders. In the recent years the economy of the country has been characterised by growth, high employment, low interests rate, low inflation and a surplus in the trade balance and the current account.
The inflation rate has not increased significantly through the last years and the price increases have remained relatively steady at about 2% increasing annually. These has contributed to pulling down interest rates and facilitated a real increase in wages. Foreign trade accounts about 2/3 of GDP (gross domestic product) and most foreign trade is with EU countries. While agricultural products used to dominate, industrial products now account for the greater part of Danish exports: machines, instruments, biochemical products etc.
Danish import consists mostly of consumer goods, which is about 30%, and raw materials, semi-manufactured products including energy, machinery and others. We can conclude on this, that Denmark has the industrial economy structure, which is characterised by the exchanging the manufacturing goods with other countries for the goods which are lacking and therefore needed in the economy. In this case there is a sizable middle class who makes Denmark a rich market for all sorts of goods and services. The consumer purchasing power is high, so the people can afford some luxuries and spend more money on health, education, leisure.
At the same time it is important to look at the consumer spending patterns, to see what the consumer’s priorities are and if they are changing. Companies who are warning about changes in consumer spending patterns can analyse the trends and take advantages from it. As the disposable income rose in the recent years, it is reflected in the increase of the consumer expenditure. Although the housing expenses continues to account for the biggest share of consumer spending and it decreases in one percent for the last ten years. The next places take the expenditure on transport and food.
The fourth place takes the amount spent on leisure and entertainment and as we mentioned before it accounts of 10% of total consumer spending and there is a slowly increase in it. From the financial analysis of the country we can conclude that nowadays situation is quite stable and the company can use this as an advantage and increase its market share by attracting more customers. g) Conclusion on the macroenvironment: Regarding the macroenvironment section of our analyses we found out many items which are influencing the company and from which it can benefit.
The population in the country is slowly increasing, at the same time the active employment group, which is considered to be as the potential customers of the company, is growing through the last years. As the highest urbanisation is in the Zealand, Funen and the North Jutland Island, the company has to concentrate on these areas, because of high possibility of getting potential customers. However it has to consider the level of the competition and probable changes in culture due to the increase in the number of foreign nationalities coming to the country.
The leisure and entertainment activities are becoming more popular which can positively affect the demand of the company’s products and services especially if we will take in consideration the high income of the population and economical stability of the country. The people in Denmark are becoming more interested in education and the technological development, in this case the Eventmakers has to be more specific in their offer and use IT for marketing purpose and improvements in customer relations. It is also corresponds to the trends in media as the customers are becoming more oriented towards the TV and Internet.