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USA as a potential market for Akvaterm Oy

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USA as a potential market for Akvaterm Oy

Juho Nuosmaa, Director of Technology and Export at Akvaterm Oy gave this assignment. Akvaterm Oy is an export oriented SME (Small and Medium Sized Enterprise) in Kokkola manufacturing hot water accumulator tanks.

The company was interested in an overview of the United States (US) accumulator tank market as well as the logistical options, costs, and legal requirements of exporting his company's products to the US from Finland. Knowledge of the market and costs associated with exporting would help the company in its decision making; whether opportunities in the US were worth international marketing efforts by the company. Knowledge of the export procedure and laws would make it easier and faster for them it they were to decide to begin exporting to the US in the future.

The study was implemented in the form of secondary research and two modes of primary research; mail surveys and company visits (personal interviews took place at some companies as part of the visit). The primary research focused on the Boston, Massachusetts and Minneapolis, Minnesota areas.

Among the most important findings of that research were that significantly greater current market for tanks similar to Akvaterm's exists in the Massachusetts area of research versus the Minnesota area. There was found to be almost no market for such tanks in Minnesota, however, some signs were found suggesting a greater number of accumulator tanks may be sold there in the future. Most tanks sold in Massachusetts, were found to be different sizes that those Akvaterm manufactures as its standard sized products. Only one of Akvaterm's standard sizes, their 300 liter tank, was found to be a somewhat (not very highly) popular size in Massachusetts. Calculations found that Akvaterm could be competitive on price selling their 300 liter accumulator tanks there. The overall business opportunity of selling that one size, however, was found to be rather limited (probably not worth the costs of marketing). The findings of this research study suggest Akvaterm should consider sales to the US, but marketing efforts for such action should be low on the companies' priority list.

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