Søren P. Olesen and Ulf Schnack in one of more than 500 shops
Strategy
Long-term strategy and goal for Flügger Group

Vision
Flügger wants to be an international supplier of decorative paints
and products for surface treatments.


Mission
We wish to produce, distribute and market a wide and coordinated
assortment within decorative paints, wood stains and
natural accessories together with chemical products for cleaning
in a quality and cost efficient way.


Strategy 1: Organic growth in Scandinavia


With the Flügger brand we wish to be the supplier preferred to
our primary target group / end consumer who is the professional
painter and consumers who prefer good professional quality in
Scandinavia, Iceland, Greenland, and the Faeroe Islands.
In Denmark the leading position on the market is to be consolidated.
In Sweden and Norway as well as Iceland the Flügger
franchise concept is to be extended substantially. To ensure
optimal use of capacity we also aim at an assortment of car
chemicals as well as a low price assortment which is marketed in
the North.


Strategy 2: New markets: Poland and China


With regard to the development in sales in the long term the
Group wish to introduce the Flügger chain concept in Poland.
Preliminary, the effort will take place in Gdansk, Warsaw, and
Poznan.
In preparation for outsourcing of labour intensive production in
the Group as well as the establishing of target sales of decorative
paints in China, the Group has established a subsidiary in
Shanghai, China.


Strategy 3: Introduction of LEAN


Flügger produces paint and wood stain as well as chemical
products for cleaning and car wash on modern production plants
in Kolding, Denmark and in Bollebygd, Sweden. In Reykjavik,
Iceland we produce for the local markets.


Goal
Beginning of 2004, the Group made a 3-year growth plan with
the goal to increase the sales by at least 5% per year and to
maintain an EBIT margin of approx. 10% in anticipation of
developing and maintaining the independence of the Group.

 

During the financial year 2004/05 the net sales were increased
by 7,9 % and EBIT margin was 10,3 %.

 

During the financial year 2005/06 the net sales were increased
by 12,0 % and EBIT margin was 10,1%.

 

During the financial year 2006/07 we have estimated with a
growth in the net sales of between 5 and 10% and estimated an
EBIT margin of approx. 10%.

 

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