TARGET MARKET
SCANDINAVIAN WOMEN
Scandinavia has been taken as the main targeted market because Sweden, Denmark, Finland, and Norway are listed among the 10 richest countries in Europe, thus their willingness to pay for a premium product is higher. Moreover, Scandinavian countries, are listed among the most sustainable countries in the world. Denmark and Sweden are both in the top 5 according to the Environmental Performance Index. Therefore, they are more adaptable to change to biodegradable products and support a green environmentally friendly movement.
OPPORTUNITY
In Sweden, based on the average monthly salary of €2,600, customer’s willingness to pay can be considered relatively high giving them a purchasing power to afford Amara. The willingness to pay has been calculated to range between €5 to €8 per month for female sanitary products.
Also, the opportunity in the feminine hygiene segment alone in Sweden amounts to $93M in 2020. There is an expected market growth of 1.9% annually in the next three years. This increase indicates a potential that Amara is now seizing to grab from competitors’ market shares.
MARKET ANALYSIS
When it comes to the opportunity already available in the market, statistics show that around 700,000 customers in Sweden fall under Amara’s customer persona. In Denmark, it is approximately 375,000, in Finland 340,000 and finally in Norway 360,000. The team has decided not to focus on capital cities to necessarily launch the products, as it is not through retailers but online e-commerce that would allow shipping of the goods to all regions of the country. Through this Amara can reach a larger customer base instead of narrowing the market down to central cities only.
PRICING
As for the pricing of the product, for it to fit with the willingness to pay of our customer, the team has decided to divide the customized sanitary pads boxes into three categories:
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10 pad pack for €4.99
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15 pad pack for €6.99
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20 pad pack for €7.99
When comparing prices with the ones provided by the market, the team priced Amara’s sanitary napkins almost the same price as the ones offered by competitors as the focus remains on differentiating the product through its social impact associated to it rather than its price.
PRODUCT-MARKET FIT
As for the product-market fit, the sanitary pads provided by Amara can be directly linked to the concerns associated with the people of Scandinavian countries. This is due to customized packages offering them choices and individualization, along with quick delivery that provides convenience to customers. Not only that, the fact that the product is earth and body-friendly, addressing a bigger issue in the Indian market, provides Scandinavian customers with an incentive to invest in Amara’s sanitary pads while raising awareness about the correct usage of menstrual hygiene products.