Expanding Inditex in Finland [618920]

Expanding Inditex in Finland
Case C ompany: Bershka
LAHTI UNIVERSITY OF APPLIED
SCIENCES LTD
Faculty of Busi ness and Hospitality
Management
Degree P rogramme in International
Business
Bachelor’s T hesis
Autumn 2017
Iina Lehtovuori

Lahti University of Applied Sciences Ltd
Degree Programme in International Business
LEHTOVUORI, IINA : Expanding Inditex in Finland
Case C ompany: Bershka
Bachelor’s Thesis in International Business 45 pages, 1
pages of appendices
Autumn 2017
ABSTRACT

The aim of this thesis is to study how to bring a successful clothing
company to Finland. This thesis expl ores the idea of f ranchising, Finnish
market area , and potential customers. Women’s buying habits are
discussed as well as women’s buying behaviour in clothing stores . This
thesis concentrates on finding a potential customer base for Bershka
rather than making a business p lan.
The author uses both qualitative and quantitative research approaches.
Secondary data is collected from various sources of literature, including
books, articles and internet sources. The primary data is collected by
interviewing a person who is the store manager of a cloth store located in
Finland .
The theoretical part covers franchising , consumer behaviour and customer
segmentation. Women’s buying behaviour and advertising for women is
discussed. Porter’s five analysis about the market area in Finland, Bershka
company profile and the ecological side of Bershka and how it affects on
comsumers is addressed.
The results showed that expanding Inditex to Finland could be potential
through franchising, but it would require a lot of money since one of Inditex
principles is to open new stores in historic locations in the capitals. To
really understand the potential of bringing Bershka to Finland , the
consumer base should be studied more so that an effective marketing plan
could be made based on the find ings.

Key words: Inditex, Bershka, franchising, consumer behaviour , customer
segmentation

Lahden ammattikorkeakoulu
Kansainvälisen liiketalouden koulutusohjelma
LEHTOVUORI, IINA : Expanding Inditex in Finland
Case C ompany: Bershka
Kansainvälisen li iketalouden opinnäytetyö, 4 5 sivua, 1 liitesivua
Syksy 2017
TIIVISTELMÄ

Opinnäytetyön tavoiteena on tutkia miten tuoda suosittu muotiliike
Suomeen. Opinnäytetyö hyödyntää ideaa franchising yrittäjyydestä ja tutkii
Suomen markkina -aluetta ja mahdollista asiakaskuntaa. Naisten
ostovaatekäyttäytyminen ja käyttäytyminen vaatekaupoissa on
tutkimuksen yksi osa. Tämä opinnäytetyö keskittyy löytämään Bershkalle
asiakaskunnan ennemmin kuin tekemään liiketoimintasuunnitelmaa.
Kirjoittaja käyttää kvalitatiivisia ja kvantitatiivisia
tutkimusmenetelmiä. Sekundaarinen data on kerätty erilaisista
kirjallisuuden lähteistä, kirjoista, artikkeleista ja elektronisista lähteistä.
Primaari data on kerätty haastattelemalla Suomessa toimivan
vaatekaupan myymäläpäällikköä.
Teore ettisessa osuudessa käsitellään franchising yrittäjyyttä ,
kuluttajakäyttäytymistä ja asiakas segmentointia. Naisten
ostokäyttäytymistä ja markkinointia naisille käsitellään. Teoreettisessa
osuudessa käsitellään myös v iiden kilpailuvoiman mallia Suomen
mark kina-alueesta, Bershkaa yrityksenä, Bershkan ekologisuutta ja miten
se vaikuttaa kuluttajiin.
Tulokset näyttivät että Inditexin laajentamiseen Suomessa voi olla
potentiaalia franchising yrittäjänä, vaikka se vaatii paljon rahaa sillä Inditex
ketju avaa ain a uudet myymälät historialli sissa rakennuksissa
pääkaupunkien ytimessä. Bershkan asiakaskuntaa pitäisi tutkia enemmän,
jotta ymmärttäisimme liikkeen potentiaalin. Asiakaskuntaa tutkimalla
Bershkalle voisi tehdä kattavan liiketoimintasuunnitelman.

Asiasana t: Inditex, Bershka, franchis ing, kuluttajakäyttäytyminen ,
segmentointi

CONTENTS
1 INTRODUCTION 1
1.1 Research Background 1
1.2 Thesis Objectives, Research Questions and Limitations 2
1.3 Theoretical and Empirical Framework 2
1.4 Research Methodology and Data Collection 3
1.5 Thesis Structure 4
2 FRANCHISING 6
2.1 Franchising 6
2.2 Forms of Franchising 7
2.3 Advantages and Disadvantages 8
2.3.1 Advantages of Franchising Bershka 8
2.3.2 Disadvatages of Franchising Bershka 9
2.4 Franchising Zara 11
3 CONSUMER BEHAVIOUR A ND MARKETING 12
3.1 Consumer Behaviour 12
3.1.1 Models of Consumer Choice 13
3.2 Customer Segmentation 14
3.3 Women’s Buying Behaviour in Zara 15
3.4 Advertising for Women 16
3.5 Affect of Online Shopping 17
4 COMPETITOR ANALYSIS 19
4.1 Porter’s Five Forces 19
4.2 Porter’s Five Analysis on Bershka 21
5 CASE COMPANY: BERSHK A 24
5.1 Inditex 24
5.2 Bershka 24
5.3 Environmental Affect on Consumer Behaviour 25
5.3.1 Eco-Stores for Customers 27
5.3.2 Introducing Circular Economy to Consumers 28
5.4 Code of Conduct and Responsible Practices 28
6 MARKETING TO WOMEN 30
6.1 Vero Moda 30

6.2 Comparison of Vero Moda and Bershka 30
6.3 The Difference in Customer Service and Online
Shopping 31
6.4 Marketing Bershka for the Target Audience 32
7 CONCLUSIONS 35
7.1 Answers for Research Questions 35
7.2 Validity an d Reliability 37
7.3 Suggestions on Further Research 37
8 SUMMARY 39
REFERENCES 41
APPENDIX

LIST OF FIGURES
FIGURE 1. Thesis Structure
FIGURE 2. Customer Segmentation
FIGURE 3. Bershka Advertisement on Soho
FIGURE 4. Porter’s Five Forces
FIGURE 5. Porter’s Five Forces A nalysis for Bershka
FIGURE 6 . Outside of Bershka Shop
FIGURE 7. Inditex Business Model
FIGURE 8. Percentage of Women Who Trust B logs

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1 INTRODUCTION
This chapter helps the reader get familiar with the research topic of the
thesis. This chapter explains research background, thesis objectives,
research questions and limitations. Theoretical framework and thesis
structure are explained .
1.1 Research Background
The author got the idea for the topic when being in Cyprus for the school
exchange. Cyprus had two B ershka stores which were both beautifully
decorated to catch people’s eye. The author fell in love with the beautiful
design of the clothes and constantly changing fashionable clothes
collection made from soft materials. The idea to open a new Bershka stor e
to Finland was born.
Finland already has Zara franchise, which is part of the Inditex group as
well as Bershka, so why not bring Bershka to Finland? The author is also
interested in women’s buying behaviour and how the company’s
environmentally friendli ness affects on concumers. Interesting topic is also
how consumer buying decisions are made, so the thesis concetrates on
combining these two subjects.
Bershka is part of the Inditex group. Bershka is one of the youngest
brands of Inditex group, targeted e specially for young women. Bershka is
a familiar brand to many who value new trends and quality. Man y Finns
have visited Bershka shops in Europe . Bershka is very popular among
young people due to the fact that it is an affordable and fashionable brand.
People value Bershka brand and hope it will expand nationwide. There are
no Bershka shops in Finland. Finnish people shop Bershka clothes in
Estonia, Sweden or further away in Europe.

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1.2 Thesis Objectives, Research Questions and Limitations
For all the reasons mentioned above, the author decided to find out what it
takes to open a new Ber shka store in Helsinki, Finland. However, t his
thesis does not make a marketing plan for a new store, instead the main
focus point is in the customer group and how to market for the selected
customer group. This thesis also provides an idea about women’s buying
behaviour for future research purposes . This thesis also examines
franchising opportunities generally and for joining the Inditex group.
Research questions
To make the thesis more constructed, the author has one main question
and three sub-question s.
The main question of the research is:
Is the idea of expand ing Bershka to Finland beneficial to Inditex ?
The sub -research questions are:
Is it possible to franch ise Bershka in Finland ?
How does women’s buying behaviour affect stores?
How should Bershka advertise to the target consumer group?
1.3 Theoretical and Empirical Framework
The theoretical part covers franchising , forms of franchising and
advantages and disadvantages of franchising . Franchising Zara is also
discussed briefly . Advantages of franchising Bershka and disadvantages
of franchising Bershka are examined.
Consumer behaviour, models of consumer choice and customer
segmentation are used to identify the target consumer group for Bershka.
The author also uses Zara and the consumer behaviour in Zara to

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compare how the possible Bershka store would attract customers.
Advertising for women and the affect of online shopping is discussed.
The author also use s Porter’ s Five F orces to analyse the market
environment for Bershka in Finland. The competition and other possible
threats are examined. Bershka as a case company is introduced and the
ecological factors and how they affect consumers are discussed.
The em pirica l part of the thesis is an interview done with women ’s clothes
store Vero Moda’s store manager . The author uses this interview first to
compare Vero Moda and Bershka. Differences between customer service
in both stores are taken into account.This part of the thesis is a
comparison to how Bershka could succeed among Fi nnish customers.
1.4 Research Methodology and Data Collection
There are two research methods that can be applied to a thesis. Deductive
and inductive methods. Deductive research method is seen as more of a
top-down approach that works from the general to the specific. Deductive
approach lets a market researcher think about rese arch that has been
conducted and dev elop an idea about adding to that theoretical
foundation. In an inductive me thod, the researcher does not consi der
related theories until further along into the research , this means that
theories or hypotheses do not apply at the beginning of the research .
(Kothari 2004, 3, 4.)
There are also two types of data, qualitative and qua ntitative. Qualitative
methods focus more on small or localized objectives and examine them
more deeply. Qualitative data allows the individual to build up their own
theory. Qualitative methologies analyse subjective experiences with a
level of depth over a long period of ti me. In contrast, quantitative methods
tend to be more numerical. Quantitative data includes mathematical
structures and analytical graphs to reveal research a nswers . (Walter &
Andersen 2013, 11 ) Quantitative data is studying and measuring how
variables change. There are several types of variables which can be

4

assigned scales of measurement. (Martin, Bridgmon 2012, 4, 5)To this
research, the author uses both quantitative and qualitative approach.
Qualitative approach may outnumber quantitative approach because the
author decided to focus more deeply on female customer behaviour and
how it affects clothes stores.
1.5 Thesis Structure
From here we can see how the author is planned to write the thesis. Ea ch
part is marked in the order of appearance.

FIGURE 1. Thesis Structure
This thesis consists of seven chapters. In the first chapter the author
explains the methods and reasons for this study, second chapter focuses
Introduction
Thesis background,objectives,
data collection methods,
limitation, structure
Theoretical part
Franchising, consumer
behaviour and marketing,
competitor analysis, customer
segmentation, Bershka and the
ecological impact to consumers
Empirical part
Interview with store manager,
comparison of Vero Moda and
Bershka and findings
Conclusions
Answers to research questions
Summary

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in franchising and looks up the fran chising opportunities in Inditex and the
positive and negative sides of franchising Bershka . Franchising Zara is
briefly mentioned.
Chapter three then concentrates cons umer behaviour and consumer
behaviour models . Marketing to females and the affect of on line shopping
is discussed . Chapter four uses Porter’s Five F orces to analyse the
possible competition in Finland for the c ase company Bershka.
Chapter five introduces the case company Bershka thoroughly , discusses
Bershka’s environmental impact and how i t affects consumers. Ch apter six
compares Vero Moda and Bershka and how women behave as customers
and what are the differences in customer behaviour in these stores.
Chapter seven consists of author’s findings about women’s consumer
behaviour and whether i t is successful to expand Bershka to Finland
based on the consumer base . (See figure 1.)

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2 FRANCHISING
This chapter introduces the history of franchising briefly, different forms of
franchising and the advantages and disadvantages of starting a franchise.
Franchising opportunities in the Inditex group are discussed.
2.1 Franchising
When searching thr ough history, you can find examples of trading
practices that have a resemblance to franchising. In legal terms, the word
‘franchise’ means a grant of rights from the crown and in some countries
e.g. Australia and USA the word franchise means a grant by a
governmental authority. Franchising is believed to have started when,
following the Civil War, the Singer Sewing Machine Company established
a dealer network. The technique of franchising was not invented over
night. Franchising evolved from the solutions developed by businessmen
in response to the problems with whi ch they were confron ted in their
business operations. (Mendelsohn 2004 , 16.)
A franchise is a business system in which private entrepreneurs purchase
the rights to open and run a location of a larger company. The franchising
company signs a contractual agreement with the franchisee, in which the
company’s ru les for operating the franchise are explained. (Lorette 2017 .)
A franchise typically involves the granting by one party (a
franchisor) to another party (a franchisee) the right to carry on
a particular name or trade mark, according to an identified
system, usually within a territory or at a lo cation, for an agreed
upon term (Libava 2017 ).
Franchisors run the business according to the operation ’s manual and the
franchise contract. Franchisors must also pay the franchise fee (lice nce
fee) and ongoin g royalties as well as marketing and advertising fund.
(Caramela 2016.)

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Unfortunately, not all businesses can be franchised successfully. First of
all, the business must provide value to customers and franchisees. The
original business must be profitable to survive a long time. It must also be
a concept that a ppea ls to people who are planning to become franchisors.
A franchisor must offer a business that is better than starting a new one
from scratch an d provide ongoing value so that franchisee is willing to pay
royalties after learning how to run the business. (Norman 2006, 1.)
2.2 Forms of F ranchising
There are several ways to structure franchising pr ograms. In general,
there are two types of franchise rela tionships, indiv idual or ‘unit’ franchises
and area franchises. These terms used are commonly associated with
various structures of franchising programs. (Barkoff, Selden 2008 , 52, 53).
Indivi dual or unit franchises are those in which a franchisor grants the
franchisee a right to develop and operate one outlet within a defined
territory or a specific location. An individual or unit franchise is often used
with businesses requiring an owner -operator, in which the expertise of the
frachisee is critical to the success of the operation. Examples of these kind
of businesses are real estate, automotive service busines s and
foodservice. (Barkoff, Selden 2008 , 53.)
Next ter m discussed is area franchises . Area franchises use area
development agreements or multiple outlet franchises. A franchisee may
be granted the right to develop and operate two or more outlets within a
defined territory. Area development rights are used for businesses that
require a single franchise owner in the mark et in order to avoid intrusion,
advertising or other problems caused by multiple owners who are
developing a single market. (Barkoff, Selde n 2008 , 54.)
Another approach to larger market area development is subfranchising.
Subfranchising means that the master franchisor grants other
subfranchisors the right to licence others to operate outlets. This happens
by entering multiple -unit or single -unit subfranchise agreements with each

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subfranch isee. The master franchisor may dictate the economic
relationship between subfranchisor and subfranch isee. The sharing of the
revenue between masterfranchisor and subfranchisor is defined in their
contract and will depend in their relative investment and their contribution
to the system. (Barkoff, Selden 2008 , 54.)
Development agencies or reprensentatives offer an alternative used often
in many franchise systems. This alternative to subfranchising includes
master agreement between the franc hisor and the development agent or
area representative. The master agreement grants limited rights to recruit
new franchisees. The franchisor and the development agent may both be
parties to the unit franchise agreement, which is often a three -party
contract or directly from the franchisor to the unit franchisee. (Barkoff,
Selden 2008 , 56.)
2.3 Advantag es and D isadvantages
When starting a franchise , adva ntages and disadvantages may occur . The
advantages and disadvantages of franchising are looked upon and the
advantages and disadvantages of being a Bersh ka shop franchisee are
discussed.
2.3.1 Advantages of Franch ising Bershka
Buying a franchise offers many advantages that are not available for
entrepreneurs starting from scratch. In addition to a well -known brand
name you also get proven system of operati on and training in how to use
the system . New franchisees ca n avoid a lot of mistakes in starting a
business, because the franchisor has already perfecte d daily operations
through making mistakes and experimenting . (Entrepreneur 2017.)
The benefits of franchising include:
 Reduction of risk
 Standardized systems and products

9

 Standardized financial and accounting systems
 Consulting and supervision readily available
 Point -of-sale advertising
 Providing Operations Manual
 Marketing and sales a ssistance
(Entrepreneur, 2017.)
There are several advantages of starting a Bershka franchise. Bershka
has strong brand name and the support of the Inditex chain. Bershka is
already known for some Finnish people due to the fact that closest
Bershka shop is located in Estonia, where the passenger traffic is
increasing. According to Finest Link, a research done about Estonia’s
passenger traffic in 2015 was over eight millon travellers, 80 percent of the
travels done for leisure. (Finest Link 2015).
2.3.2 Disadvatages of Franchising Bershka
There might also be disadvantages of starting a franchise. The drawbacks
that may occur fall into three categories: lack of independence , inflexibility
and risk associated with the franchisors performance. (Holden 2017 ).
Lack of independence means that every aspect and of business format is
defined. Buy ing a franchise means that there is little space to be creative,
many aspects of running the business is laid down in the manuals.
Franchisors have to pay service charges which can be useful in the start ,
but as time passes and if services are not used it can be frustrating for the
franchisor to pay the fees. Reputation is also a big part of franchising, it
can be a good thing but also a bad thing. Each franchisee affects the
reputation of the whole system , which means that if there is a wide gap
between th e quality and service it affects the whole system. (Holden
2017.)
Fashion is constantly changing, new Bershka stores are opened in
different locations over the world. The cloths sold in Egypt may vary from
those sold in Estonia because of the difference i n climate. The clothes

10

come from Inditex factories, which means the quality is checked so that it
is consistent. Since each franchisee affects the whole chain, there is a risk
that other Bershka franchisees perform poorly and that gives bad
repurtation for the Bershka under planning. (Bershka 2017.)
The cost of franchising can be a shock to the franchisee . In some cases
you will have to rent a building and you will have to be responsible for
paying the monthly lease and the one -time security deposit. In add ition,
the deposit to the electric, gas and t elephone companies have to be paid,
employees salaries, w orking capital and money in the cash drawer to
make change has to be paid . Money is needed just to operate until there's
a cash flow. (Entrepreneur 2017.)
Responding to the market can be a bit challenging since the franchisee is
bound by the franchise contract to operate the business format in a certain
way. In some cases it might be difficult for the franchisee to respond for a
change in the local market a rea. (Holden 2017 ). Finnish market area can
be changing, as an example, Stockmann had to end the Zara franchisee
agreement because of the desire to concentrate on their own business
(reference from thesis page 11). Zara and Bershka are both franchise s
owned by Inditex . This might raise a question whether it is profitable to
start a franchise in the current economical situation.
There are also risks associated with the franchisor performance. When the
franchisee sign s the franchise agreement the franchise e is formally binded
into a particular franchisor and it is, therefore, vital to select one which is
competent and ethical. (Holden 2017.) Learning more about target
companies’ environmental policy, code of conduct and circular economy is
necessary to unde rstand how the business works. Bersh ka has very strict
policies conc erning environment, code of conduct and circular economy.
These policies and how they relate to consumer behaviour are defined in
chapter four.

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2.4 Franchising Zara
Most known franchise in In ditex is Zara. Zara is the flagship of Inditex
group. Zara stores have men’s, women’s and children’s clothing as well as
shoes, accessories and cosmetics. Zara’s products are supplied based on
consumer trends, new products are shipped on the stores twice a week.
Zara has also zero advertising policy, instead they invest percentage of
the revenues for opening new stores. Inditex launched Zara Home brand
in 2003. Zara Home offers cutlery, bedding , glassware and ot her home
decoration accessories . (Zara 2017 .)
Zara landed to Finland in 2002 and at the time, Zara’s stores we re being
franchised by Stockmann. In 2013, Stockmann ended franchising contract
with Inditex due to the fact that Stockmann wanted to concentrate on their
own core business. Zara stores in Fin land are owned by Z -Fashion
Finland, which is also owned by Inditex. (Penttilä 2013).
Setting up a franchise can be complex and expensive. Before starting a
franchise it must be consider ed whether the concept can be replicate d.
Consider whether there is competitive advantage, systems and brand to
franchise. It is important to analyse the competition so you know what to
expect from the market area. In this case, bringing Bershka to Finland is
the objective, so Finnish competition must be analysed in order to see the
bigger picture of the market. (Norman 2006, 2 ).

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3 CONSUMER BEHAVIOUR A ND MARKETING
This chapter addresses consumer behaviour, models of consumer choice,
customer segmentation, women’s buying behaviour and advertising for
women. Women’s buying b ehaviour in Zara is discussed briefly.
3.1 Consumer B ehaviour
Understanding consumer behaviour is vital part of marketing . By
examining consumer behaviour we will know how customer reacts to a
certain product or service. Consumer behaviour is the study of how people
make everyday life decisions about what they buy, want or need. There
are three factors that affect consumer behaviour: psychological, social and
personal factors. (Schofield 2017).
There are several psychological factors that affect consumer behavi our.
Needs are one of them. You buy food when you are hungry, you buy
protective gear to feel safe, needs vary a lot but the more basic the need
the more priority it drives the consumer to fulfil l it. Learning is also one of
the key factors that has an eff ect on consumer behaviour. If a commercial
message convinces customer to try a product but their post -purchasing
experiences are dissatisfying, the consumers learn to avoid that product.
Beliefs an d attitudes also modify consumer behaviour. If the company
shares the same values as the consumer, it may attract customers. (Mott
2017.)
The second factor that has impact on consumer behaviour is social
characteristics. Social influences include person’s family, social
interaction, friends, work or school communi ties or any person that the
consumer interacts with. Consumer’s income and social class are also
social characteristics. These factors influence on how people respond to
marketing messages and make pu rchasing decisions. (Schofield 2017).
The third factor i s personal factors. These are person specific factors that
may not relate to any certain group of people. These characters include
person’s habits, interests and opinions. The consumer behaviour is

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influenced also by age, culture, background and other personal matters.
(Schofield 2017).
3.1.1 Models of Consumer Choice
Consumer choise modelling was not developed by only one person. The
history of consumer choice modelling was developed independently by
mathematical psychologists and economists . Consumer choice shows how
people make choices given their financial status and preferences.
(Investopedia 2017 ).
The first model discussed is cognitive model. When consumers make
important purchase for the first time, they may reflect on alternatives and
discuss pros and cons with others with the intention of securing beneficts
and avoiding costs. Marketers can influence cognitive decision making by
providing information that leads to consumer either preferring or rejecting
alternatives. When satisficing mo del is found, the order which products are
is important since the first satisfact ory solution will be the one ado pted.
This means that more outstanding alternatives have better chance at
being selected. (East, Wright, Vanhuele 2013, 7, 8.)
The reinforcemen t model is controlled by factors in the environment that
reward more than other alternatives. Marketing influence can be achieved
by changing the consumer’s situation. However, what is rewarding to
some might not be so to others and this limitates the mark eting. The
principles of reinforcement a re applied in sales promotions, such as
discounts. (East, Wright, Vanhuele, 2013, 10).
The habit model is controlled by brand name, logo and other features that
are associated with a product as a result of previous purchase. In this
model, the consumers may be unaware of improvements in products from
which they could benefit. This purchasing model can be frequently
satisfactory but it may not be always the best solution due to the fact that
consumers always buys the same model unaware of the new one. (East,
Wright, Vanhuele 2013, 13).

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3.2 Customer Segmentation
Customer segmentation does not have to be a complex procedure.
Segmentation principles are based on different key differentials. It is
important to think what triggers customers to buy so that the marketing can
be done to the correct customer group . Customer segmentation is a
successful marketing tool when im plemented correctly. (Rouse 2015 ).
Information such as a customers' demographics (age,
race, religion, ge nder, family size, ethnicity, income,
education level), geography (where they live and work),
psychographic (social class, lifestyle and personality
characteristics) and behavioural (spending, consumption,
usage and desired benefits) tendencies are taken i nto
account when determining customer segmentation
practices. (Rous e 2015 ).

FIGURE 2 . Custo mer Segmentation (Sketch Bubble 2017.)

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The simplest way to start divi ding customers is by geographic location.
Geographic data includes customers occupation, how old they are, gender
and number of children. Knowing your customers based on this criteria is
useful because you can make advertising choices reflected on their
interests. (Rouse 2015 ). Bershka’s main clientele are women. Bershka
also has men and children collection but the main focus in this thesis is to
study how profitable the business would be based on women’s purchasing
power.
3.3 Women’s Buying Behaviour in Zara
When talking about women’s buying behaviour and how it affects stores
we have to mention Zara, which is the most successful of Inditex stores.
So what does Zara know about women that other stores do not know?
Zara has scored several victories. First of all , their knock -off or otherwise
called “speed -to-market” within the industry is incredibly fast. When you
see something in the Paris runway, two weeks later you are able to buy a
copy from it in Zara. Zara sees, copies, produces and delivers. (Underhill
2010, 124.)
Zara has also trained its shoppers to accept the prices. If you see
something you like and it fits you should buy it because it will never go on
sale and it will not be in store next week. Bershka works in the same
principle as Zara. The fashion s hifts quickly so the stores must adapt to it
to get the trendiest collection first to attract customers. (Underhill 2010,
124).
Many of Zara’s factories are within a few miles of the corporate
headquarters in northern Spain. This means that store -to-factor y-and-back
is a closed circuit with no communication problems and no buyer jet lag.
This has a huge impact on the whole performance of the store. Keeping
up the constantly changing collection would not be possible if it were not
for the factories nearby. ( Underhill 2010, 124, 125).

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3.4 Advertising for Women
Companies today recognize they cannot appeal to all buyers in the same
way. Buyers are too varied on their needs and buying practises.
Companies must identify the parts of the market they can serve best and
most profitably. Thus, companies have moved away from mass marketing
and toward target marketing. Target marketing includes identifying market
segments, selecting one or more of them and developing marketing
programs tailored for each. (Kotler, Armstrong 2014, 214).
Since Bershka belongs to Inditex group as well as Zara the only
comparison to marketing Inditex to Finnish women is Zara. The problem
with this is that Zar a does not use mass marketing. Why? Inditex does not
use advertising since they place all of their stores strategically on major
cities. They use all the money they could spend on advertising in opening
new stores. The key marketing strategy of Zara is based on exclusivity,
experience, differentiation and affordability. The company relies very
heavily in word of mouth. (Bhasin 2014).

17

FIGURE 3. Bershka Advert isement on Soho 2017. (Anderson 2017.)
Bershka, however, takes a different stand towards advertising than Zara.
Bershka is very active in social media with their own hashtag
#Bershkastyle. Bershka is clearly targeted for young audience and it is
shown through their advertising methods . In addition to having their own
hashtag on social media, Bershka also has few billboard advertisements
and new catalogues can be found at Bershka stores. (Bershka 2017).
3.5 Affect of Online Shopping
Bershka’s target consumer group is Finnish women. The main question is:
how to market Bershka for Finnish women? Young Finnish women spend
a lot of time in the internet. Studies show that 87 percent of young Finnish
women between the age of 16 to 24 use internet many times in a day.
(Tilastokeskus 2017.)
The increased use of internet and the facilities websites offer may change
the rationality of choice. The ability to compare prices online drives down
the price of goods and services bought online. The internet makes it easier
to compare products and prices without leaving your house, so it can take
some of the effort out of the shopping. The internet can assist consumers
to make better decisions and buy more cheaply , but it also takes the
shopping experience the consumer gets from the store away. If women
shop for the basics or clothes from familiar brand they already know,
online shopping can save time and be more convenient. When women
want something more unique fo r special occasions they go to stores
because they want customer service. ( East, Wright, Vanhuele 2013, 14).
Two dominant shopping motives identified are hedonic and utilitarian.
Goal -oriented (utilitarian) shoppers have four different motives:
informative ness, convenience, selection and the ability to control the
shopping experience. Hedonic (fun oriented) shoppers are motivated by
shopping experience caused by a certain product. Online shopping suits

18

utilitarian shoppers since they can control the whole s hopping experience
better when shopping on the internet. (Fernie 2005, 123 )

19

4 COMPETITOR ANALYSIS
In this chapter the author explaines Porter’s Five Forces and then uses the
model to analyse Finnish competition for Bershka.
4.1 Porter’s Five Forces
Originally developed by Harvard Business School’s Michael E. Porter in
1979, Porter’ s model looks at five specific factors that help determine
whether or not a business can be profitable based on the other businesses
in the industry. Porter’s Five Forces started a r evolution and continue to
shape business practices today. Porter’s Five Forces helps companies to
decide which industries to compete in. (Harvard Business School 2017).
The job of the strategist is to understand and cope with competition.
Managers often de fine competition too narrowly, concentrating only among
today’s direct competitors. Yet competition for profits goes beyond
established industry rivals to four other competitive forces as well:
customers, suppliers, potential entrants, and substitute produ cts. The
extended rivalry that is found by using the forces defines an industry’s
structure and shapes the nature of of competitive interaction within an
industry. The point of industry analysis is not to declare the industry
unattractive or attractive, b ut to understand the underpinnings of
competition and t he root causes of profitability. (Porter 2008, 3, 4.)
Porter’s insights started a revolution in the strategy field and continue to
shape academic thinking and busines s practice today. A Five Forces
analysis can help companies assess industry attractiveness, which
industries a company should compete in, how companies position
themselves for success and how trends will affect ind ustry competition.
(Harvard Business School 2017 ).

20

FIGURE 4. Porter’s Five Forces (CGMA 2017.)
Before using Porter’s Five Forces model, the five areas that help shape
competition must be understood. The five areas are:
Competitive rivalry determines how intense the competition is. Competitive
rivalry also determine s how many competitors there are and what each of
them is capable of doing in the business . Rivalry among competitors can
be seen as new product introducing and price discounting. Rivalry
competition can be high when there are just a few competitors equall y
selling a product. (Martin 2017 ).
Bargaining power of suppliers analyses how much power and control the
supplier has over the prices. The number of suppliers available is
analysed, the fewer there are, the more power they have over the market.
Suppliers can capture more value for themselves by charging higher
prices or limiting services. (Martin 2017 ).
Bargain ing power of buyers means the power the consumers affect s
pricing and quality. When there are lots of sellers but little amount of
consumers, the c onsumers have the power. When consumers buy small

21

amounts the buying power is low. Powerful customers can capture more
value by forcing down prices, demanding b etter quality and more service
and generally playing industry participants off against one another. (Martin
2017; Porter 2008, 14, 15).
Threat of new entrants studies how easy or difficult it is for the competitors
to join the marketplace in the industry t hat is being examined. Profitable
markets attract new entran ts, which erodes profitability. New entraints to
an industry bring new capacity and desire to gain market share that puts
pressure on prices, costs and the rate of investment necessary to
compete . (CGMA 2013; Porter 2008, 18 , 8).
Threat of substitute products and services explains how easy it is for
consumers to switch businesses product to competitors’ product. This
gives overall look to how many competitors there are and how their price
and qual ity comp ares to the one being examined . When the threat of
substitutes is high, the industry suffers. Substitutes are easy to overlook
because they may appear in very different form from the industry’s
product. As an example, to someone searching for a Fat her’s Day gift
neckties and powertools may be substitutes. (Martin 2017; Porter 2008,
17).
4.2 Porter’s Five Analysis on Bershka
Existing competition in the Finnish clothing business consist f rom a
selection on players based on the products they offer. Since t he target is
to bring Bershka to Helsinki, the Porter’s five is made based on what
Southern Finland people prefer and what kind of shops there are in
Helsinki.
The bargaining power of suppliers is medium. This is because Bershka
and other Inditex brands have the same suppliers. These suppliers are
picked following the Inditex code of conduct. Suppliers are located near
the Inditex headquarters in Spain. (Inditex 2017).

22

The threat of new entrants was found low. If Bershka were to enter the
Finnish market, it is possible that another Inditex group store could follow .
Inditex has already Zara and Massimo Dutti placed in the centre of
Helsinki. It might also be possible that smaller not so well -known
companies could try and follow if Bershka succeeds.
Continuing in the threats of new entrants, largest threat a possible new
entrant poses is that it is a local or Finnish othe rwise well branded fam ous
shop. In research conducted by Kantar TNS, in 2017, became clear that
over 40 percent of Finnish people would buy more Finnish brands if there
were any. The threat of new Finnish brand were found low since many
people can study to become a designer in Finland , but a few end up
selling their clot hes in a shop or as entrepreneur s. The industry also has
high capital requirements . Strong brand name, advanced technology and
logistics are also important factors to succeed in the Finnish clothing
industry . (Kantar TNS 2017; Auvinen, Kamaja, 2017.)
The bargaining power of buyers is high in Finland. Many people tend to go
for the cheapest option available , so it is very easy to switch to another
company ’s products . Bershka, as well as Zara , has the cutting edge
because of t he swiftly changing collection and competitive prices. Bershka
has clear target consumer group which helps to advertise the brand and
makes the buyer’s decision to wear Bershka’s clothes easier. ( Bershka
2017.)
Threat of substitute products is m edium. Many stores offer latest runway
trends to consumers, though they might not offer them as fast as Bershka.
Different variations of same clothes are found in different st ores. The
customer has the choic e which one they prefer the most. Finland fashion
industry follows latest fashion trends quite quickly. Finnish people like to
dress according to latest trends and the dressing style is very European.
Rivalry among existing competitors is high. Helsinki has many clothes
shops that sell clothes especiall y for young people. H&M, Monki, Zara,
Lindex, etc. are very popular and have very strong brand names . Bershka

23

has the competitive edge because of the low prising and constantly
changing collection that is designed for the young and adventurous.
(Bershka 20 17).

FIGURE 5. Porter’ s Five Forces A nalysis for Bershka (adapted by thesis
author).
Porter’s Five Forces figure above concludes the analysis. Finnish market
area is competitive and the highest threats are caused by the bargaining
power of buyers and rivalry among excisting competitors. Bargaining
power of supplier was found medium as well as the threat of substitute
products. Threat of new entrants in Finland is low because of the high
entry barriers for Finnish clothing industry.
Porter's
Five
ForcesThreat of new
entrants
LOW
Rivalry amoung
excisting
competitors
HIGH
Threat of
substitute
products
MEDIUMBargaining
power of buyers
HIGHBargaining
power of
suppliers
MEDIUM

24

5 CASE COMPANY: BERSHKA
This chapter discusses briefly Inditex and then the case company
Bershka. Bershka’s environmental affect on consumer buying habits is
discussed as well as eco logical affect to consumers.
5.1 Inditex
The story of Inditex began in 1963 in A Corona, north -west Spain. Inditex
started as a modest little workshop making dresses and quilt dressing
gowns for distribution. Quickly the company expa nded and first Zara store
was opened in 1975. Zara quickly became popular because of the trendy,
constantly changing collections with affordable prices. There on, Inditex
expanded and takes on more brands: Massimo Dutti, Pull&Bear, Bershka,
Stradivarius an d Oyho. Inditex group has five stores in Finland, five Zara’s
and one Massimo Dutti. Altogether Inditex has 7,405 stores in 94 mar kets
around the world. (Inditex 2017.)
Inditex Group is the world’s leading and fastest growing
fashion producer and retailer, headquartered in Arteixo,
Spain. The Inditex Group is made up of more than 100
companies operating in textile design, manufacturing, and
distribution, and is responsible for producing 840 million
garments a year, with eight retail store formats . (Inditex
2017 ).
5.2 Bershka
Bershka was created in 1998 as a new brand of the Spanish group Inditex.
Inditex has over 1000 Bershka shops in more than 70 countries, with sales
representing 9% of the total revenue of the group. Bershka has a sales
area of over 455,000 s quare meters. Bershka is targeted for adventurous
young people who are aware of the latest trends and are interested in
music, social networks and technology. Bershka’s products vary from
casual wear to sports and from basic garments to more fashionable it ems.

25

Bershka shops are distinguished by their strategic location and well –
detailed architecture. (Inditex 2017.)

FIGURE 6 . Outside of Bershka S hop (Bershka 2017) .
Bershka shops interior is designed to give maximum importance of the
display of fashion. Bershka s tores are a shopping experience: the music,
lightning, furniture and all included are making sure that the customer has
an unforgettable shopping experience. Bershka’s mission is to give the
customer an unforgettable shopping experience. (Inditex 2017 ).
5.3 Environmental Affect on Consumer Behaviour
Bershka aims to help the sustainable development of the society and
environment with which it interacts. Directly related to customers and
stores are some activities and goals that are developed w ith the
framework of environmental commitment the Inditex group has.
 Saving energy.
 Eco-efficient stores.

26

 Recycling and r educing waste production .
 Sharing commitment with the entire team.
 Team awareness .
(Bershka 2017 ).
Integrating sustainability and eff iency is thought by developing eco –
efficient stores. Eco -efficient store management model proposes
measures in all processes, from designing the store, heating and cooling
systems, assembling lightning and the potential of recycling furniture and
store dec orations. Bershka is also reducing waste production by recycling
hangars or alarms at the stores where they are processed to become
other plastic items. As an addition, both the plastic and cardboard used in
packaging are recycled. (Bershka 2017.)
Bershka shares the same values of many consumers. People are very
aware of the environment and shopping in a store that is designed from
used furniture and eco -friendly materials attracts customers. There are
several psychological buying behaviour factors that the awareness of the
environment triggers. The consumer wants beautiful clothes and it is
considered as a good factor that the garnment is made while thinking
about the environment and the impact on the environment. (Bershka
2017).

27

FIGURE 7 . Inditex Business M odel (Inditex 2017 ).
Everything Bershka does starting from the making of the clothes affects
the customers. Bershka sells clothes to consumers with the whole product
lifecycle in mind. Consumers get latest fashion clothes that they can be
sure ar e made responsibly by following circular economy. (Bershka 2017 ).
5.3.1 Eco-Stores for Customers
Inditex has 4, 519 eco -stores, the aim is to have 100 percent eco -efficient
stores by 2020. One of the primary considerations in Inditex stores is eco –
effiency. New s tores are designed eco -effiently and old ones are
renovated to comply with effiency targets. There are se veral factors to why
eco-stores are more efficient. The main factors include saving energy with
using led li ghtning and using automatic motion sensors that dim lighting up
to 80 percent when no one is present. (Inditex 2017 ).
Having eco -effient stores shows the concumer’s how important climate
change is to the company and how Bershka is doing changes to the stores
to slow down global warming. Having eco -effient stores has an effect on

28

the shopping experience as well. Green plants can be found in the stores,
which makes the store look beautiful but also benefits the eco -system
because plants clean the room air. (Inditex 2017).
5.3.2 Introducing Circular Economy to Consumers
Inditex aims to ease recycling for customers by receiving used clothes so
that they can recycle them or give seco nd life to them. The purchasing
teams and key suppliers receive special training on materials, social and
economic impact of the choices and awareness of the environment
encouraging them to work towards more sustainable choices . Inditex has
very strict policy on animal welfare. In ditex stores do not sell fur or
products from animals slaughtered exclusively for their skin. (Inditex
2017.)
Recycling old clothes to give them new life is infact trendy as well as
ecological. Young women tend to follow latest trends which include
recycling old clothes to give second life for them. To have recycling
opportunity in the store and knowing that used garnment will go for good
use later on will give the customers good mood and a feeling that they can
do somethin g for the environment. (Bershka 2017 ).
5.4 Code of Conduct and Responsible Practices
Inditex code of conduct provides action lines which are t hen followed by
Inditex Group and its employees in professional duties. The goal of this
code is to demand an ethical and responsible conduct from Inditex and i ts
entire workforce. These are the core values which training employees and
personal and profess ional careers in I nditex are based upon. (Inditex
2012.)
The Code is based upon the following principles:
 All the operat ions of the Inditex Group are to be developed
under responsible perspective.

29

 Obey with laws and regulations of each country.
 All pe rsons who maintain, directly or indirectly, any kind of
social, professional, economic or industrial relationships with
Inditex shall be treated in a fair and honourable manner.
 All the activities of Inditex shall be carried out in the manner
that most respects the env ironment.
(Inditex 2012 ).

Happy workers equal happy customers. The code of conduct makes sure
that the work force is treated in equal manner and justice. Ethical shopping
is considered as a trend and many consumers care about how their
clothes are made and where they are made. Child labour is a subject that
is closely monitored in the fashion industry. Consumers are also very
aware and research the ethicali ty of the bus iness before shopping. (Inditex
2017).

30

6 MARKETING TO WOMEN
This chapter co ncentrates on comparing Vero Moda and Bershka. In this
chapter the author compares Vero Moda and Bershka as stores and then
the advertisement strategies . For this chapter the author interviewed store
manager of clothes store Vero Moda.
6.1 Vero Moda
Vero Moda is a women’s clothes store, part of B est Seller Retail Finland.
Best S eller consists of several brands that are: Vero Moda, Only,
Jack&Jones, Name It, Mamalicious, Piec es, V ila Clothes and Noisy May.
Best S eller brands are available online and in stores across Europe. Vero
Moda is one of the brands under Bestseller group. Vero Moda’s target
customers are both young and old women but the main customer group
are middle -aged women. (Pusa 2017)
Vero Moda is values customers and the main emphasis is to give
customer an unforgettable shopping experience by offering high class
customer service done by trained workers. Vero Moda attends that the
workforce is updated by offering v arious training in women’s fashion and
customer service every month. Good sellers are rewarded in competitions
and others are being motivated by offering training and useful tips to sell
better. (Pusa 2017)
6.2 Comparison of Vero Moda and Bershka
When opening a clothes store which target group are women, it is
important to know more about the target group and their shopping
behaviour. This may indicate how profitable the business will be and how
the marketing should be done to reach the target cons umer group . Vero
Moda and Bershka stores have several differences concerning the target
consumer group and forms of marketing.

31

The most bought items in Vero Moda are jeans, coats and seasonal tops.
Women tend to buy products they detect are good in the lon g run. If
women buy good jeans, there is 70 percent chance they will return to buy
the same jeans in different colour. Finnish women value com fortable
clothes that are “easy to wear” and do not disappoint quality wise.
Branded clothes are more important to young customers than middle aged
women. It takes women approximately 15 -20 minutes to make buying
decisions in one store. Everyday casual wear clothes are very popular
whereas too unique clothes with too high prices are usually left to hangers.
(Pusa 2017.)
Bershka is known for making clothes that are according to the latest
fashion trends. This differs from Vero Moda because Vero Moda has a
collection of basic wear which is always available. Vero Moda and Bershka
differ a lot because of the ages of their target groups. Vero Moda’s target
consumer is middle -aged women who know what they want whereas
Bershka targets on young consumers that like to ride on the crest of the
wave of fashion. (Pusa 2017).
6.3 The Difference in Customer Service and Online Shopping
The seller has a huge impact to the customers buying decision. At least 50
percent of customers that get service will buy the products. In shops like
Vero Moda, 40 percent of customers are regular customers who shop in
the store because they get excellent c ustomer service. Since customer
service is such a huge part of the shopping experience it is ha rd to say
how stores without customer service will succeed in Finland. In this case,
Bershka does not have sellers to help customers but they attend to
customers by keeping the store tempting and clean for the customers.
Bershka does not have other stores in Finland so it is also a selling point
and makes up for the loss of full customer service. (Pusa 2017.)
Though Bershka does not have a store in Finland, they have online shop
where you can order to Finland. Since people are almost all of the time
connected to internet, it has been made very easy to order online. This

32

might have negative impact to stores which sell the same products online
and in the stores. For tunately, usually clothes stores have slightly if not
entirely different selection of clothes. Mainly the reason why people do not
buy everything online is shopping experience and the fact they get to see
and touch the clothes before buying them.
Vero Moda clothes can also be bought online in various places, this does
not affect the sales of the stores negatively. Vero Moda has collect your
online package service, where the customer can pick up their package
straight from the shop and try on the clothes rig ht away. This service
brings more customers to the shop and almost half of the customers
picking up a package end up buying something from the store too.
Bershka stores do not have this kind of custom but the difference is that
Bershka’ s clothes are only a vailable for buying in Bershka’s webpage
whereas Vero Moda branded clothes can be bought from many different
websites. (Pusa 2017.)
6.4 Marketi ng Bershka for the Target A udience
The advertising in Vero Moda is very active. Vero Moda has a lot of
special offers and events to get the consumers shopping. Vero Moda
updat es their Instagram very active ly and uses Facebook to reach
consumers that are spending time on the internet. (Pusa 2017).
Social media is constantly present in young peo ple’s lives. Almost all if not
many companies use social media for marketing and gaining the attention
of their target audience. Since Bershka especially directs young women,
social media is a “must” for direct communication. As mentioned before
(see thesi s page 17) , Bershka has their own hashtag #Bershk astyle where
consumers who have bought Bershka clothes pose in their style choices
and get featured in Bershka’s website.
Instagram is a great way to reach out for young consumers. The most
searched categor ies young women have on Instagram are #fitness,
#fashion, #healthy and #Love. (Instagram 2017). Many companies use

33

famous bloggers to market selected clothes. This could work well in
Finland also because many women read blogs. Bershka should advertise
actively through social media about offers and latest trends if they want to
reach the target consumer group.

FIGURE8. Percentage of Women Who Trust B logs (Wilson 2012).
BlogHer conducted Social Media Study in 2012, which states that 81
percent of American women trust on blogs and Pinterest, 73 percent trust
Twitter the most and 67 percent trust Facebook. This affects the buying
behaviour of women. (See Figure 8).
Another study conducted by marketing company Aller, women where
asked if a blogger had introduced a product that has awaken reader’s
interest and later on caused reader to buy the product. 35 percent of
women who answered the poll thought this to be true. 14 percent of
readers thought that a link to a specific product has made them buy the
product. Nine percent of women who answered thought that a discount

34

code the blogger gave has made them buy the product. In light of this
research, bloggers somewhat help the businesses when it comes to
advertising for women. (Aller 2014).

35

7 CONCLUS IONS
This chapter concludes the thesis and brin gs together all the main topics
and the research process.
7.1 Answers for Research Questions
The purpose of this thesis was to find out if there is real customer po tential
for Bershka to expand in Finland. The idea was to expand Bershka and
publish a new shop in the centre of Helsinki. The author picked young
women for the target consumer group.
The main question of this thesis was:
Is the idea of expanding Bershka to Finland b eneficial to Inditex ?
The question was not meant to answer the businesses financial state but
the popularity the potential store could receiv e. The author found i n the
customer segmentation process that the target audience for Bershka is
women and more clo sely, young women. Women’s customer behaviour
was essential part of this thesis, since it reveals a lot of information about
women shopping habits and what kind of clothes they prefer to wear.
The author came to a conclusion that young women like to dress more
according to latest trends whereas mature women like to shop clothes that
are “easy to wear”. Bershka would have a lot of potential if it would expand
to Finland, since there is clearly a spot for affordable but unique clothes
store. The author did n ot come to a simple conclusion that bringing
Bershka to Finland would be beneficial, however there is no evidence that
states it would not be benefi cial. Because of the wideness of the main
research question, the author decided that figuring out the answer more
research would need to be done.
Is it possible to franchise Bershka in Finland ?
The author considered franchising opportunities for Bershka. Like Zara
(which is a franchise), there are also op portunities to franchise Bershka to

36

Finland, however it t akes a lot of money. There are several positive and
negative factors in franchising which were related to the ownership of the
business. Franchising is relatively easy way to take company and its
operations overseas. The author thought analysing the compet ition in
Finnish market would be good to see the bigger picture as to how
successful bringing a new clothes chain would be. When expanding,
Bershka has good potential opportunity for sales grow. Although the
competition in clothing business i s fierce, it is possible that Bershka would
be successful because of the competitive prices and quality of products.
How does women’s buying behaviour affect stores?
Customer segmentation is used for identifying different consumer groups,
in this case the author was narrowing the research for women. Interview
with the store manager of VeroModa gave the author a larger picture to
how women shop and which clothes they prefer to shop. It was found that
Finnish women prefer simple clothes which are easy to com bine and easy
to use every day . This question is quite wide too, but the author found out
that women’s buying behaviour affects stores nearly 100 percent, since it
determines how women behave while shopping and how muc h they are
willing to spend while shop ping. In the research, it was found that Zara has
‘trained’ consumers to accept the prices because the collection changes
so quickly and the clothes are hardly found on sale.
How should Bershka advertise for the target consumer group?
It was found that the easiest way to reach young consumers was through
social media. Bershka should be more active and advertise and use their
hashtag to get young people on board . Another interesting fact that was
revealed was that bloggers are a huge influence to women’s buying
behaviour. Figure 8 (see thesis page 33) shows that 81 percent of women
trust blogs as a source of information.

37

7.2 Validity and Reliability
Validity and reliability proof the accuracy of the research results. Reliability
is a way of assessing the quality of the measurement procedure used to
collect data. In order for the result to be considered valid, the
measurement procedure must be first find reliable. Validity on the other
hand measures how the results are equivalent to the main goal of the
thesis.
The collected data included both secondary and primary data. The primary
data was collected through a longer interview with the store manager of
women’s cloth store, VeroModa. The secondary data was collected from
written sources, such as books and online sources. The thesis consists of
more secondary data, since it was more easily accessible . The author
thought the thesis to be reliable because of the carefully selected written
sources and wide interview of store manager.
7.3 Suggestions on Further Research
In the process of making this Bachelor’s thesis, the author gained a lot of
knowledge about franchising and what it is to be a franchisee. The author
found both problems and great opportunities in starting a franchise. The
easiest way to bring Bershka to F inland was by franchising since they
already are a strong brand name with many stores.
However, the main research question was left unanswered because of the
wideness of the question. For further research, the customer base needs
to be more carefully exam ined so that a good marketing plan targeted for
the young can be put in motion.
Information found was a basic level so deepening the knowledge is
necessary before starting up own company. It is especially important to
come up with good business plan for Bershka in the future. The author
defined the preliminary customer segment, this could be studied more
deeply in the market research. After studying customer segments planning
marketing strategies would be crucial .

38

39

8 SUMMARY
The final part of the thesis wi ll summarize the contents in detail. The main
objective of the thesis was to find out whether Bershka should expand in
Finland through the examination of the potential customer base.
The introduction presented the reader overview of the outlines of the
thesis, why this research was conducted, research questions , theoretical
and empirical framework, research methology and data collection and
thesis structure.
The second chapter covered franchising in general, what it is, the negative
and positive sides of franchising and franchising in Inditex. The author
chose franchising model because it is possible to bring Bershka to Finland
by franchising. The findings were that franchising requires a lot of money
and usually big companies buy smaller franchises becaus e of the lower
risk.
The third chapter covered consumer behaviour and marketing to women.
What impacts on consumer behaviour was discussed as well as consumer
behaviour models. Customer segmentation was explained as part of the
big picture.
The fourth chap ter consisted of competitor analysis which was just a
scratch of the possible threats in the market area. The author used
Porter’s five forces to determine how the market is in Finland. The results
were gathered in a cycle made by the author.
The fifth chapter concentrated on Bershka as a shop and shortly covered
Inditex chain. This chapter covered Bershka in general, environmental
policy in Bershka, how Bershka reacts to climate change and circular
economy, and the code of conduct and responsible pract ises in Bershka.
The ecological factors and how the affect the consumers were discussed.
The sixth chapter conc entrated on comparing Vero Moda and
Bershka. The empirical part of the study was covered with interview about
women’s buying behaviour. The effect of online shopping versus

40

traditional shopping was shortly discussed. Some marketing ideas for the
targeted young customers where discussed and the effect of social media
was mentioned.
This thesis provides a good base to continue the research further on and
develope a proper business plan for Bershka to enter Finnish market.
Target consumer base is identified so that the research and developing a
marketing plan can continue. Bershka is a well -known and popular shop
among young consumers and it would have good potential if it were to
expand to Finland.

41

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APPENDIX
APPENDIX 1 Interview with Vero Moda Store M anager
Interview structure for the store manager of VeroModa
1. What is VeroModa? (Explain briefly)
2. What are the most bought items in VeroModa?
3. What is the middle age of the customers?
4. What is the target customer of VeroModa like?
5. How long does it take for the customer to shop in your store?
6. What are the most valued features in clothes?
7. Why do customers come visit the shop over and over again?
8. How much does customer service affect the consumers buying
decision?
What about stores which do not have customer service? Why
do you think they are so popular (H&M, Zara) ?
9. How many regular customers do you have?
10. Does online shopping affect your store negatively? If so why?
Do customers come in asking for clothes they have se en in
your website?
Do you believe customer buy more of your clothes onli ne or
physically by visiting the store?