Buer lefse and lompe bakery

Abstract

This project is written by four students at the University of Mannheim, and concerns the possible introduction of Lompe in to the German market under the brand name Buer. Buer is a small bakery in Askim, Norway, that has specialized on making Lefse and Lompe. Lefse and Lompe are made of 80% potato, and can be regarded as a unique Norwegian product. Buer has recently had a change of ownership. After the new owner Bjørn Olav Drabløs took over operations, they have had a remarkably strong growth. By gaining a market share of 30% in Norway, Buer have had a 167% growth in revenue from 2006 – 2009. Our problem statement for this project is “Can Germany be a attractive market for Buer Lefse and if so, can Buer enter the market?” To understand if there might be a market for Buer Lefse in Germany, we used quantitative and qualitative methods. They are focused on finding out if the product is liked, and how it could fit into the marketing mix. To understand if Buer could enter the market, we have looked at the internal attributes of the company, and analyzed the external forces that influence the company. Furthermore, we have discussed the marketing mix and possible segments that would be attractive if Buer enters the new market. Our finding in this project is that there is a market for Lompe in Germany, however, we have reached a conclusion that Buer cannot currently enter the market. Our recommendation to Buer AS is that they stay in their domestic market. This decision is based on their limitations in terms of organizational and financial resources, and the opportunity to strengthen their position even further in Norway.