A Study of Switch Pac: What would be the efficient ways for Switch Pac to increase potential demand and capitalize on green attitudes and behavior in the Swedish market? Authors Brüning, Andrea 830111 Curtolo, Anna 820517 Group 1984 Tutor Tobias Eltebrandt Institution School of Sustainable, Development of Society and Technology Mälardalen University EFO705 Master Thesis Västerås VT 2008 Abstract Date: 6/14/2008 Course: Master Thesis (International Marketing) Institution: School of Sustainable Development of Society and Technology, Mälardalen University, Västerås (Sweden) Authors: Brüning, Andrea Curtolo,Anna 830111 820517 [email protected] [email protected] Tutor: Tobias Eltebrandt Title: A Study of Switch Pac: what would be the efficient ways for Switch Pac to increase potential demand and capitalize on green attitudes and behavior in the Swedish market? Problem: What would be the efficient ways for Switch Pac to increase potential demand and capitalize on green attitudes and behavior in the Swedish market? Purpose: The aim of our project is to see the potential of Switch Pac‟s oxo-biodegradable plastic bags on the Swedish market by capitalize on green attitudes and behaviour. Method: The report is based on primary data collected through questionnaires (end consumer/ B2B customers). For the investigation of Switch Pac‟s macro- and microenvironment secondary data was used (books, journals, newspaper and the Internet) Conceptual Framework: The conceptual framework consists of certain models to investigate the following topics: 1. consumer behavior . AIDA-Model . STP-Model 2. Switch Pac´s business environment . PESTEL Conclusion/ Recommendations: In our conclusion based on our frameworks PESTEL, AIDA and STP we concluded that peoples‟ awareness regarding environmental friendly plastic bags are not very high based on our questionnaire. The efficient ways for Switch Pac to increase potential demand is to target the customer in the age range from 20 – 49 years and cooperate with supermarkets and (department) stores. Furthermore, Switch Pac needs to position its products in the consumers mind through create brand awareness by using certain elements of the marketing mix model. Keywords: Sweden, Switch Pac, consumer behavior, (macro/ micro-) business environment (oxo-biodegradable) plastic bags ACKNOWLEDGEMENTS First of all, we would like to thank the owners of Switch Pac, Xi dam and Michael Harkén, for making this thesis possible. Thank you for giving us great feedback and support during the whole thesis period. Secondly, we would like to thank our tutor, Tobias Eltebrandt and our seminar group for your support in order to make this thesis into the best piece of work as possible. All the great peer review has made our work expand and ready to be handed in as a final version. And lastly, we would like to thank all of the 273 respondents of our questionnaires. Kindly Regards, Andrea Brüning & Anna Curtolo Saturday, June 14, 2008 Table of Contents 1. INTRODUCTION ................................................................................................................... 1 1.1 Background ...................................................................................................................... 1 1.2 Biodegradable Plastic Bags ............................................................................................. 2 1.3 Oxo-biodegradable Plastics ............................................................................................. 3 1.4 Problem Statement........................................................................................................... 5 1.5 Purpose ............................................................................................................................ 5 1.6 Target Audience ............................................................................................................... 5 2. METHODOLOGY ................................................................................................................... 6 2.1 Formulating and Clarifying the Research Topic .............................................................. 6 2.1.1 Interest & relevance .................................................................................................. 6 2.1.2 Durability.................................................................................................................... 7 2.1.3 Breadth of research question .................................................................................... 7 2.1.4 Topic adequacy ......................................................................................................... 7 2.1.5 Access ....................................................................................................................... 7 2.1.6 Micro politics.............................................................................................................. 7 2.1.7 Risk & security........................................................................................................... 7 2.1.8 Resources ................................................................................................................. 8 2.2 Choice of Theories & Models ........................................................................................... 8 2.2.1 PESTEL ..................................................................................................................... 8 2.2.2 AIDA – Model ............................................................................................................ 8 2.2.3 STP - Model............................................................................................................... 9 2.3 Critical Literature Review ................................................................................................. 9 2.4 Setting a Timeframe ....................................................................................................... 10 2.5 The Research Process................................................................................................... 11 2.5.1 Research philosophy............................................................................................... 12 2.5.2 Research approach ................................................................................................. 13 2.5.3 Research strategy ................................................................................................... 13 2.5.4 Research ethics....................................................................................................... 14 2.6 Using Secondary Data ................................................................................................... 15 2.7 Collecting Primary Data ................................................................................................. 15 2.7.1 Questionnaire .......................................................................................................... 15 2.7.2 The sample size ...................................................................................................... 16 2.8.3 Interviews ................................................................................................................ 17 2.8.4 Credibility of research data ..................................................................................... 19 2.9 Limitations ...................................................................................................................... 19 3. THEORIES & MODELS ....................................................................................................... 21 3.1 Consumer Behavior........................................................................................................ 21 3.1.1 AIDA Model ............................................................................................................. 21 3.1.2 Segmentation, Targeting, Positioning Model (STP) ............................................... 23 3.2 PESTEL .......................................................................................................................... 26 4. FINDINGS............................................................................................................................. 28 4.1 Green Marketing/ Green Consumerism ......................................................................... 28 4.2 Questionnaire Findings .................................................................................................. 29 4.3 B2B Customers – Questionnaire Findings..................................................................... 46 4.3.1 Company #1 ............................................................................................................ 46 4.3.2 Company #2 ............................................................................................................ 46 4.4 Topic Excursion .............................................................................................................. 47 4.5 PESTEL .......................................................................................................................... 49 4.5.1 Political factors ........................................................................................................ 49 4.5.2 Economic factors ..................................................................................................... 51 4.5.3 Social factors ........................................................................................................... 52 4.6.4