2. If so, which market(s) should it enter and why? Aquabear AB was founded in 1970 in Stockholm, Sweden, as a small private company that manufactured maritime leisurewear clothing. In 1975 the company started a line of ski clothing using the brand name Snowbear.

By the end of 2003 the company employed about 130 people. The sales volume for 2000 was about SKr175 million. (Assume an exchange rate of US$1 #

SKr7.41. and euro 1 # 9.17 Kr.) The company has experienced a period of rapid growth in the past 10 years due to the market growth in sportswear and leisurewear and is financially sound. The Snowbear line of ski clothing has become the dominant product line due largely to the efforts of a creative designer (and skiing enthusiast) who joined the company in 1979.

Aquabear AB has all its manufacturing capacity in Sweden, and as a result of the previous year’s success its plant and equipment in 2004 are up to date. In Sweden Aquabear sells directly to department stores and specialty retailers. The company has about 30 years’ experience of export to the western European market, mainly Germany, Austria, and Switzerland. Aquabear exports directly by using agents in the respective countries.

The skiwear products Aquabear AB’s Snowbear line of ski wear consists of high-quality clothing for nordic and alpine skiers.

Snowbear’s trademark is a striking design in bold yet simple patterns and colors, a good cut, and high quality material and finish. The garments are very functional with details such as closures at neck, hands, legs, and pockets very thoroughly thought out. The Aquabear production
design has followed market developments in fabrics for skiwear closely as well as successfully keeping up with fashion trends. The company has even become something of a market trendsetter for some items.

The collection of jackets, vests, ski suits and ski pants for men and women are matching and can be mixed at will. A typical collection consists of a couple of models and colors of each garment, although there are more jacket styles since jackets are also bought for nonski winter wear.

The price level of the product line is in the upper ranges but not in the same top price bracket as the designer label ski wear collections. Approximate retail prices in Sweden during late 2003 were as follows:

SKr Ski suits 2,800 Jackets (alpine) 1,800 Jackets (nordic) 1,200 Vests 1,000 Pants (alpine) 1,100 Pants (nordic) 900 Management’s search for new markets Aquabear has been very successful in the past 10 years, especially with its Snowbear line of products. The increasing number of skiers, and the increased use of ski wear as winter and leisure wear as well as the Snowbear clothes’ quality are the main reasons for this.

The company’s sales personnel judge that the primary customers are people of both sexes, both young and older people, belonging to middle- and upper-income groups, who rate quality and functional and original design higher than the price.