Optimal Country Selection for Expansion in Europe: A Comparative Loyalty System Introduction Analysis on behalf of hello again GmbH

Abstract

The motivation of this thesis is to identify which country offers the most suitable conditions for the introduction of loyalty systems, focusing on smaller software companies. This involves a variety of factors that directly influence the potential success of market entry. The goal of the thesis is to systematically evaluate the potential of a few European markets for expansion, as well as to provide recommendations for market entry. This is accomplished using only secondary data. The theoretical part of this thesis explains the concepts of target group analysis, market entry strategy, and digital loyalty solutions. The target group analysis entails outlining the topic's relevance and significance, as well as presenting various concepts for its analysis. There are various methods to complete this. However, for this thesis, the analysis is based on secondary data and, hence, equivalent to a third-level analysis. This means that the analysis is conducted remotely and in the language of the researcher, which is English in this specific case. The market entry strategy chapter also explains the topic in general, its significance, and examines the various opportunities within market entry strategies. For hello again GmbH, opening a new subsidiary is the most suitable approach for expansion. The chapter on digital loyalty solutions also concentrates on the issue itself and its significance, followed by a listing of the various types of solutions available. The result shows that hello again GmbH offers a hybrid loyalty solution, which is also the most effective type of program nowadays. With these insights forming the foundation of the theoretical section, the thesis then delves deeply into the empirical part. This segment will include three separate parts of a case study, serving as a basis to determine the most promising European country for expansion and what market entry mode should be applied. The first part analyses six European countries, namely Italy, the Netherlands, Poland, Portugal, Spain, and the UK by various criteria. The result shows that the Netherlands, the UK, and Spain are the most promising countries. Therefore, the second part analyses the number of potential customers in these three countries using a combination of different online tools. This results in the UK being the most suitable country for the expansion of innovative loyalty app providers. The last part dives deeper into the business culture and the personal values of UK citizens. Furthermore, there is a discussion on why opening a new subsidiary makes the most sense for expansion and there is an overview of the competitive landscape. The findings present that there are six strong competitors already operating in the UK. Lastly, marketing recommendations are given, stating that influencer marketing and social media advertising are the most successful ways to reach potential customers.

Date of Award	2024
Original language	English
Supervisor	Robert Füreder (Supervisor)