Brand Case Study Klarna AB

Topics: Brand, Brand management, Branding Pages: 22 (6499 words) Published: May 23, 2015

Table of Content

Table of Content1
1.Organization Overview2
2.Case Study4
2.1 The Market Segmentation Strategy of the Marketer in Sweden.4 2.2 The Target Marketing and Positioning Strategy of the Klarna in Sweden4 2.3 The services of the marketer & its implication on the Brand in Sweden.6 2.4 The Pricing Strategy in Sweden & its implication on the Brand.7 2.5 Klarnas IMC Strategy in Sweden & its implication on the Brand.8 2.6 Overall Branding Strategy & the Brand Equity in Sweden10 2.7 The SWOT Analysis of the Marketer and the Brand in Sweden.12 2.7.1 Strengths12

2.7.2 Weaknesses12
2.7.3 Opportunities12
2.7.4 Threats13
3. Conclusion14
3.1 Similarities and dissimilarities between theories in textbook by Keller (2013) and the practice regarding brand management of Klarna in Sweden.14 3.2 Concluding remarks regarding Klarna and their branding strategy in Sweden15 4.References17

1. OrganizationOverview

Klarna AB is a Swedish company which was founded in 2005 by Sebastian Siemiatkowski.Over the years it has expanded to many countries and is currently active in Scandinavia, Germany, Netherlands, Austria, England and the United States. Klarna AB provides services in the form of payment solutions via the internet for private individuals as well as online stores. The service that KlarnaAB offers means in practice that it enters as a third party in transactions between the customersand companies to ensure safety in both directions (

In the current situation, the services of Klarna have become increasingly popular, at least in the UK where Klarna has made a huge effortsandhas proved to yield good results. Klarna has therefore chosen to move the very knowledgeable and experienced staff from the Sweden office to England. This was to facilitate the expansion. Klarna has also for some time ago, decided to begin to work more with project teams to facilitate the development.

To the customers’ advantage Klarna offers a simple and a secure payment solution where customers can pay indirectly connected to the purchase or desired shop by using an invoice and a pay later occasion, a credit issued thus in practice. Klarna’s services for the companies mean that they ensure that they get paid for their goods that will besold to customers. If a customer does not pay, Klarna takes the role of the risk-taker and paysthe amount of the sales minus a fixed fee. Statistics indicate that approximately 20 percent of all purchases made over the internet in the current situation are made via Klarna and their services.

Klarna has done a tremendous expansion in the recent years, both in sales and in the number ofemployees. In the current situation, Klarna AB is the parent company with sales of more than 1.5billionand approximately with 800 employees. This compared to 2012 when they had sales of over 750 million and nearly 430 employees. In the current state 45,000 online storesuseKlarna’s services as a payment solution via the internet.

Klarna has in the recent years also tried to work intensively to simplify the use functions for its customers through their website. This is to make it easier for the customers to use their payment solutions over the internet. By doing this, they arealso trying to get closer to the customers and also create a sense of security and trust for the customers.

As the company has expanded enormously in the recent years it has also tried to reach out more into the community with its brand. Most of the large web stores in Sweden now have Klarna as their payment option. This is something that has proven to generate some security according to investigations. Customers see the web store more reliable as they can avoid worrying about any problems with the payment. Studies have also shown that customers tend to pay more for the product if they do not have to take the risk of payment problems. Something that Klarna with its product and...

References: Aaker, D.A. and Jacobson, R. (1994), Study shows brand building keys for stockholders, Advertising age, Vol.65 No, 30, p. 18.
Cobb-Walgren, C.J., Beal, C
Keller, K. L. (2013) Strategic Brand Management, Building, Measuring and Managing Brand Equity. Pearson. Fourth Edition. Global Edition.
Keller, K.L. (1998), Stretegic Brand Management: Building Measuring and Managing Brand Equity, Prectice-Hall, Upper Saddle River, NJ.
Keller, K.L
Klarna, (2015). Official Web Site. Till Företag, Integration, Sweden. [Online] Available from: [Accessed: 13th May 2015]
Klarna. (2014d). Klarna Checkout | Klarna. [Online] Available from: [Accessed: 7th May 2015]
Klarna. (2014f). Klarna Mobil. [Online] Available from: klarna/vara-tjanster/klarna-mobil [Accessed: 7th May 2015]
Lake, L
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