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Swedish Branding Industry:Swedish Branding Industry:

Competitor AnalysisCompetitor Analysis-Silver-Silver ，， EmbrinkEmbrink ，， F&B HappyF&B Happy

Prepared by:

Cecilia Teljas 70394@student.hhs.seNataliia Danylchenko 70367@student.hhs.seYunyun Han 70369@student.hhs.seAhmed Ranjha 70376@student.hhs.seAdit Rahman 70392@student.hhs.se

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Executive SummaryExecutive Summary

►Resource-based View (RBV) for Resource-based View (RBV) for comparing the three design bureauscomparing the three design bureaus

► Creativity

Reputation

Client Relationship

Experience

Silver

13 Employees

Founded in 1998

Founders’ creativity

Distinguished clients

Embrink

18 employees

Experience since 1990

Cooperation with Berghs School of Communication

Work Process: make…visible

Happy F&B

14 Employees, Founded in 1997

Network of expertise, Work Method and Process

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►Founded in 1998Founded in 1998►Brand Identity, Packaging Design, Brand Identity, Packaging Design,

Commercial InteriorCommercial Interior►13 employees13 employees►Potential to become market leader in Potential to become market leader in

the industry categorythe industry category

Source:Source: Silver Facts, 2009 Silver Facts, 2009

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Silver-ResourcesSilver-Resources► Creativity and Personality of the foundersCreativity and Personality of the founders

(According to the annual survey “Årets Byrå 2007”)

► Creative design skills of the workforceCreative design skills of the workforce► ReputationReputation► Long term client relationshipsLong term client relationships

ACO HUD AB, ICA, Svenska Spel, V&S Group, Oriflame, Renée Voltaire

► Other distinguished clients H&M, Nokia, Eniro, Bjorn Borg, Norsteds and

many more!► ExperienceExperience

Sources:Sources: Silver Facts, 2009 Silver Facts, 2009

Silver, http://www.silver.se/Silver, http://www.silver.se/

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Silver-CapabilitiesSilver-Capabilities

►Creativity (ranked #2 in Sweden)►Knowledge in Branding (ranked #3 in

Sweden)►Benefit for Business (ranked #2 in

Sweden)(According to “Årets Byrå 2007”According to “Årets Byrå 2007”)

►Value Generating Design

Sources:Sources: Silver Facts, 2009 Silver Facts, 2009

Silver, http://www.silver.se/Silver, http://www.silver.se/

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Silver-PerformanceSilver-Performance

0

10

20

30

40

50

60

Brand Industry Turnover

M S

EK

►Total budgeted turnover in 2008/2009 – 15 M SEK

►Profit Margin – 15%

Source:Source: Silver Facts, 2009 Silver Facts, 2009

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Silver-PerformanceSilver-Performance

Results from Results from Årets ByråÅrets Byrå 2007 2007 (the largest (the largest annual study of the Swedish communications annual study of the Swedish communications industry)industry)

► Net Designbyrå1.1. Happy F & B - 8.51Happy F & B - 8.512.2. Stockholm Design Lab – 8.39Stockholm Design Lab – 8.393.3. Design Office Silver - 8.33 Design Office Silver - 8.33

► Design and design-related services 1. Happy F&B2. The Brand Union3. Stockholm Design Lab

Source:`Source:`http://www.aretsbyra.se/http://www.aretsbyra.se/vinnarna.htmvinnarna.htm

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Silver-WeaknessesSilver-Weaknesses► Analytical skillsAnalytical skills► Pro-activityPro-activity► Pricing ServicesPricing Services

(According to Årets Byrå; still above average (According to Årets Byrå; still above average compared to others)compared to others) Provide motivation and training to employees to develop Provide motivation and training to employees to develop

analytical skills and pro-activityanalytical skills and pro-activity► Sustainability of competitive advantage depends Sustainability of competitive advantage depends

too much on the cofounders’ charismatoo much on the cofounders’ charisma► No lack of creativity and skills among the No lack of creativity and skills among the

employees - the current position in the industry employees - the current position in the industry could be the result of current strategic thinkingcould be the result of current strategic thinking Management may want to revisit Silver’s long term Management may want to revisit Silver’s long term

strategic plansstrategic plans

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Embrink DesignEmbrink Design► Founded in 1990, StockholmFounded in 1990, Stockholm► Among the first bureaus to focus on Among the first bureaus to focus on

brandsbrands► Today: 18 employeesToday: 18 employees► Business concept: To give their clients a Business concept: To give their clients a

lead by strategic design:lead by strategic design:"Design Makes Your Business Visible”"Design Makes Your Business Visible”

► Customers such as:Customers such as: Hewlett Packard, Sony Ericsson, Hewlett Packard, Sony Ericsson,

Pharmacia, Fazer Bakery, Spenrups, Pharmacia, Fazer Bakery, Spenrups, Cederroth, Kronfågel, Svenska Lantchips…Cederroth, Kronfågel, Svenska Lantchips…

► Focus on ”rekoism”:Focus on ”rekoism”: Origin/ClosenessOrigin/Closeness CredibilityCredibility BalanceBalance ResponsibilityResponsibility Individual fellowshipIndividual fellowship

Source: www.embrink.se

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Embrink Embrink - - Resources & CapabilitiesResources & Capabilities

►ResourcesResources Skills of employeesSkills of employees The Embrink brand and The Embrink brand and

reputationreputation Customer portfolio Customer portfolio 19 years of experience19 years of experience NetworkNetwork Cooperation with Bergh’s Cooperation with Bergh’s

School of CommunicationSchool of Communication skills of employeesskills of employees

►CapabilitiesCapabilities CreativityCreativity Good Good

responsiveness to responsiveness to market trendsmarket trends

Design capabilityDesign capability Strategic Strategic

competencecompetence Project Project

managementmanagement Continuous Continuous

improvementimprovement

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Embrink PerformanceEmbrink Performance► Embrink was the only bureau nominated in two categories in 2008: Embrink was the only bureau nominated in two categories in 2008:

Sweden’s Best Design Bureau (F&B Happy & Silver top 3 2007)Sweden’s Best Design Bureau (F&B Happy & Silver top 3 2007) Sweden’s Best Branding BureauSweden’s Best Branding Bureau

► Business ratio during the past three years:Business ratio during the past three years:

► Why such differences?Why such differences?

Sources: www.allabolag.se, www.aretsbyra.se, www.embrink.se

Embrink 2007-06 2006-06 2005-06Number of employees 14 16 15Turnover (TKR) 16,057 16,602 16,361Result of the year (TKR) 474 -100 424Profit margin 2.38 % -0.27 % 6.07 %Solidity 32.45 % 26.38 % 36.82 %

F&B Happy 2007-06 2006-06 2005-06Number of employees 13 11 11Turnover (TKR) 28,705 20,918 23,839Result of the year (TKR) 2,027 327 723Profit margin 11.20% 2.17 % 5.26%Solidity 45.02% 49.11% 56.47%

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Embrink Embrink --Sustainbility Sustainbility of Competitive Advantageof Competitive Advantage

►Creativity Among the Co-workersCreativity Among the Co-workers►Design CapabilityDesign Capability►Strategic CompetenceStrategic Competence►EmployeesEmployees►NetworkNetwork►ManagementManagement

Capabilities: Valuable Rare Inimitable Non-subst.

Creativity among the co-workers Yes Yes No YesGood responsiveness to market trends Yes Yes No No

Design capability Yes Yes No Yes

Strategic competence Yes Yes No YesProject management Yes Yes No NoContinuous improvement Yes Yes No NoResources:

Employees Yes Yes No YesThe Embrink brand and reputation Yes Yes No NoCustomer portfolio Yes Yes No NoExperience since 1990 Yes Yes No No

Network Yes Yes No YesCooperation with Berghs Yes Yes No No

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Happy CompanyHappy Company► Established in 1997, filed under Graphic Design and Established in 1997, filed under Graphic Design and

Packaging, headquartered in Gothenburg, Sweden. Packaging, headquartered in Gothenburg, Sweden. ► Partially owned by Forsman& Bodenfors. Four Partially owned by Forsman& Bodenfors. Four

principal Happy creatives jointly own the rest of principal Happy creatives jointly own the rest of happy.happy.

► At happy 14 professionals practice their crafts. At happy 14 professionals practice their crafts. ► Any special required expertise- in photography, copy Any special required expertise- in photography, copy

writing, illustration- is easily procured from an writing, illustration- is easily procured from an extensive network of creative contacts. extensive network of creative contacts.

► Happy - an independent agency built on long term Happy - an independent agency built on long term client relationships with Swedish and international client relationships with Swedish and international brands.brands.

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Happy ResourcesHappy Resources

►Employees (Designers)Employees (Designers)►Work ProcessWork Process►Work Ethics Work Ethics ►Knowledge & CreativityKnowledge & Creativity►Portfolio of ClientsPortfolio of Clients►Long term Client RelationshipLong term Client Relationship

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Happy ClientsHappy Clients

►Approximately 55 clients Approximately 55 clients ►AAK, Abba Seafood, Apoteket, AAK, Abba Seafood, Apoteket,

Chalmers, Handelshogskolan I Chalmers, Handelshogskolan I Goteborg, If, IQ, JC, lindex, tele2,Goteborg, If, IQ, JC, lindex, tele2,

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Happy CapabilitiesHappy Capabilities

► Its about Relevant DesignIts about Relevant Design►Function as a Glue between Function as a Glue between

Companies and ConsumersCompanies and Consumers►As a glue they are more concerned As a glue they are more concerned

with the designs authenticity than with with the designs authenticity than with its pretty packaging. its pretty packaging.

►Developing a structure, a method for Developing a structure, a method for finding the design sweet spot using finding the design sweet spot using there Work Processthere Work Process

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Happy PerformanceHappy Performance

►Has a Strong Working MethodHas a Strong Working Method ProductProduct PositioningPositioning ProofProof Production Production

►Detailed Processes Detailed Processes Scientific AnalysisScientific Analysis Grip on what the Brand is about?Grip on what the Brand is about? Practical WorkPractical Work

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Competitive Advantage Competitive Advantage Sustainable?Sustainable?

►Long Term Relationship with ClientsLong Term Relationship with Clients►Brand Reputation Brand Reputation ►Effective and Efficient Working Effective and Efficient Working

Method?Method?

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Happy: Happy: Developments RequiredDevelopments Required

►Partnerships Partnerships Joint Venture with other CompaniesJoint Venture with other Companies

►Extend its capabilities to Animation.Extend its capabilities to Animation. Hire new employeesHire new employees Train its own DesignersTrain its own Designers

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ConclusionsConclusions

►The same valuable resources:The same valuable resources:► Reputation► Creativity ► Experience► Clients relationship

►Uniqueness to win!!Uniqueness to win!!??

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RecommendationsRecommendations

►Network of clientsNetwork of clients►Network of relative expertiseNetwork of relative expertise►New method for brandingNew method for branding►Understanding of trendsUnderstanding of trends

►Uniqueness among competitorsUniqueness among competitors► Slogan► Work Process► Presentation, Activities► Self Branding and Promotion

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ReferencesReferences► Silver Facts, 2009Silver Facts, 2009► Silver, http://www.silver.se/Silver, http://www.silver.se/► http://www.aretsbyra.se/vinnarna.htmhttp://www.aretsbyra.se/vinnarna.htm► Sveriges bästa designbyråSveriges bästa designbyrå: Silvermedalj till Embrink Design, : Silvermedalj till Embrink Design,

Webfinanser, 2008-12-12. http://www.webfinanser.com/nyheter/?Webfinanser, 2008-12-12. http://www.webfinanser.com/nyheter/?id=121508&page=2id=121508&page=2

► www.embrink.sewww.embrink.se► www.aretsbyra.sewww.aretsbyra.se► www.allabolag.sewww.allabolag.se► http://www.happy.fb.se/http://www.happy.fb.se/