International Marketing in Germany – From a cultural perspective

5.2.1
 
Price 
Göteborgs Kex applies adapted 
pricing strategy
towards every target market. The 
list prices
are also adapted to each market. In Sweden and Norway Göteborgs Kex has 40 % and 60 % 
share of the market respectively. This implies that the company has larger possibilities to set 
prices as it wishes in Sweden and Norway. But in a competitive market like Germany, it 
adapts its prices according to the market, since the German market is characterized by hard 
downward pressure on prices.
The German market is a tough market and it has been said that within a radius of 80 km of 
any bigger city in Germany, it is possible to buy any existing produced product. To be added 
is that Germany has many large close-by situated cities. Germans are very price concerned 
214
Wasa Bröd AB 
215
Ibid 
216
Göteborgs Kex AB. 

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56 
being interested in getting a low and good price as well as good quality. It is seen as 
completely normal for high-income earner as well as low-income earner to do the grocery 
shopping in low-price stores like Aldi and Lidl. The German market is characterized by strong 
consumer power, consumers don’t accept unmotivated high prices. 
Göteborgs Kex doesn’t use any 
discounts 
or 
allowances,
but a substitute to discounts called 
“Netto-netto Preis”, which means that each customer gets the lowest price possible, which is 
due to the strong price pressure. The “early-payment” discount (Skonto), practiced by many 
other companies, has not yet been practiced by Göteborgs Kex. The 
period of payment
is 
standardized having 30 days as standard and the company uses invoices for all its 
customers.
217
5.2.2