Project report

Hartwall company
Senni Oinonen, Janna Grönqvist, Jere Eronen, Kumkum Akter, Nguyen
Truong

Project report
Marketing communication
May 2021
International Business
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Contents

1 Introduction ................................................................................................................ 3
2 SWOT analysis ............................................................................................................. 3
2.1 National and International environment .......................................................................... 3
2.2 Strengths ........................................................................................................................... 4
2.3 Weaknesses ....................................................................................................................... 5
2.4 Opportunities .................................................................................................................... 5
2.5 Threats............................................................................................................................... 5
3 Objectives ................................................................................................................... 6
3.1 Personnel........................................................................................................................... 6
3.2 Recycle and recover waste ................................................................................................ 6
3.3 Heat and electricity are saved with smart solutions ......................................................... 6
3.4 Single brewery fills glass bottles ....................................................................................... 7
4 Implementation of concepts ........................................................................................ 7
5 Marketing tools ........................................................................................................... 7
5.1 Social media ...................................................................................................................... 8
6 Content ....................................................................................................................... 8
7 Market segmentation .................................................................................................. 9
7.1 Target market .................................................................................................................. 10
8 Marketing mix ........................................................................................................... 10
8.1 Product ............................................................................................................................ 11
8.2 Price ................................................................................................................................. 11
8.3 Promotion ....................................................................................................................... 12
8.4 Place ................................................................................................................................ 12
9 Timetable .................................................................................................................. 12
9.1.1 Budget .................................................................................................................... 14
10 References................................................................................................................. 15

Figures

Figure 1 SWOT ............................................................................................................................... 4

Figure 2 Marketing tools of Hartwall ............................................................................................ 8
Figure 3 Market segments ............................................................................................................ 9
Figure 4 Target market of Hartwall ............................................................................................. 10
Figure 5 Marketing mix ............................................................................................................... 11
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Figure 6 Timetable for the project .............................................................................................. 13

Figure 7 Action plan .................................................................................................................... 14
Figure 8 Budget ........................................................................................................................... 14
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1 Introduction

Role of the group is advertising agency due to the fact advertising agency because we are advertis-
ing a product. Our aim is to increase the volume of social media marketing of Hartwall and widen
their markets to Nordic countries.

Hartwall is a Finland based beverage company, which was founded in 1836. It had a turnover of
over 320 million euros in 2017, and it is one of the biggest producers of drinks and beverages in
Finland. Its best-known products are Hartwall Jaffa, Hartwall Novelle, Lapin Kulta, Karjala and Hart-
wall Original Long Drink. Hartwall employs 700 workers in Finland only.

“Hartwall is owned by the Danish beverage company Royal Unibrew, a leading regional player in a
number of markets primarily in Northern Europe, Italy and in the international malt beverage mar-
kets, creating new business possibilities for Hartwall as well” (Hartwall, 2021).

2 SWOT analysis

2.1 National and International environment

Lapin Kulta is the best-known beer in Finland. International Finnish beer brand to be ex-
ported to Sweden, Norway, Denmark, Russia, the Baltic countries, and the UK. Hartwall
operates in highly competitive global markets, where it succeeds with innovative products
and flexible service that is close to the customer. The company has created significant at-
tempt in product development and customer work in recent years and has successfully
opened up new markets, for instance, in the US and Asia.
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Figure 1 SWOT

2.2 Strengths

• Strong brand identity

Hartwall is a highly popular brand with a unique brand identity. Its soft drinks are the most-selling
drinks in the industry.

• Customer loyalty
Hartwall is considered one of US’s most emotionally connected brands. This valuable brand is con-
nected with ‘happiness’ and has strong customer loyalty. Customers can quickly identify their par-
ticular taste. Finding its substitutes is difficult for them.

• Extended global reach

Hartwall closely connected with customer around the [Link] has become the preferred partner
to several companies in retail, dairy beverage, logistic.

• Achievements
Hartwall Novelle mineral waters have developed and improved sales in the water market. During
the last 10 years mineral water consumption has more than doubled in Finland. Hartwall Novella is
the number one water brand in Finland.
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2.3 Weaknesses

• Less online presence

The activity of Hatwall is not much in social media where it is promoting product and service about
the company.

• Lack of diversification:
Consumer needs and demands are changing towards healthy beverages (sports drinks) and foods.
Hartwall needs to come up with new healthy beverage/food sub-brands.

2.4 Opportunities

• Introduce new products

Hartwall is known for its variety of quality beverages. Lapin Kulta beer, the Hartwall Jaffa soft drink
range, and Hartwall Novelle bottled waters are among its top brands.

• Build out an online presence including social media

social media is quickly turning into an important part of the brand communication process. The
power of social media marketing can support the companies to create brand awareness and also
to raise the consumers’ engagement with a brand. Nowadays people seem to pleasure being part
of an online brand community. Hartwall is making a strong social media presence is an effective
way to generate high visibility for the brand.

• Job vacancy
Hartwall kept great impact in job service, especially in summer by various campaign.

2.5 Threats

• Intense competition
Growing international competition create pressure to develop innovations to improve parcel han-
dling. Changing user demand for other competitor drinks.
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3 Objectives

Sustainable development has always been a top priority for beverage companies, not excluding
Hartwall. Although the COVID-19 pandemic had devastating consequences for both industry and
agriculture within the past 2020, Hartwall has always believed it can overcome this. The brewing
sector is Finland's fourth-largest food industry in terms of value-added, and consistent with the
Brewers' Association, it employs nearly 1,700 Finns directly. Additionally, Hartwall may be a major
summer job provider, especially within the Lahti region. By participating in the campaign, they
would like to demonstrate the importance of children to Hartwall and their commitment to the
principles of responsible summer work like direction, guidance, fairness, and equality.

The creation of non-alcoholic distilled products, beverages made with distillation, is on the in-
crease around the world. Taking care of your own health and well-being may be a global trend
that's also going strong in Finland.

3.1 Personnel

Developing the talents of our employees is vital to us. Through it, they make sure that they are
successful as individuals and corporations now and within the future. Competency development
also supports work happiness: for our employees to be good and responsive at work, their
knowledge and skills must be maintained so far.

3.2 Recycle and recover waste

Hartwall invests within the recycling sector, and in 2018, 97.5% of our waste gets recycled. Only
0.02% goes to landfills.

3.3 Heat and electricity are saved with smart solutions

In 2018, they started using liquid CO2 cold energy in our production, which has reduced the neces-
sity for steam and electricity. Steam savings are 3,500 MWh per annum, accounting for about 8%
of the annual steam demand at our Lahti production plant.
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3.4 Single brewery fills glass bottles

Washing and refilling bottles may be a sustainable circular economy because the rotating glass
bottles are refilled several dozen times. this is often a really eco-friendly packaging method -
scratches on the bottle indicate long service life and repeated refills.

4 Implementation of concepts

We have tried to implement concepts from the course regarding advertisement and how it is con-
nected to the product from lecture 4. We have also taken concepts from lectures 6 and 5. These
include how to use social media effectively and from lecture 5 we have tried to make a brand for
Hartwall.

With this project plan we are trying to create a brand image for Hartwall in the social media. This
is created through competitions and sponsorships alongside with the training of the social media
presentative to create more of an interactive brand for Hartwall. In the social media Hartwall can
easily advertise their products for example what is new or top selling at what point. Hartwall could
also engage the community by doing polls asking what their favorite drinks are and so on. This
would create a brand image for Hartwall and increase social media precense. This also would
count as advertisement for Hartwall and people would look at their posts.

5 Marketing tools

For this marketing plan, we have chosen to put the focus on social media channels like Instagram,
Facebook and Twitter. Offering more international content on social media could widen the mar-
ket from national to global. The activity in social media platforms is not that active now, which we
would like to fix. Hartwall posts rarely on their social media, between 1-2 times per month. They
have clearly focused on TV advertising, but we would expand their brand on social media.
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Instagram Facebook Twitter

• Young • Mature • Mature

audience audience audience
• Interactive • Interctive • Informative
content content content

Figure 2 Marketing tools of Hartwall

5.1 Social media

Instagram is one of the most popular social media platforms around the world. It is very popular in
the Nordic countries, especially among young adults and teenagers. The content of the advertising
plan should be considered according to the chosen platform. The content should be appealing to
the younger generation when posting on Instagram, whereas the content could be more mature
on Facebook. The latter platform is very popular among over 30-year-olds, so the content should
be targeted towards them. When it comes to Twitter, the content could be more professional.
Twitter is mainly used by adults, and businesses inform about their activities mostly there. Thus,
the content could be more of an informative type in Twitter. Social media is a low-cost way to
reach a lot of people, so Hartwall should use it for their advantage.

6 Content

The social media presence can be improved by adding more product placing and information on
Hartwall own social media platforms. Also, Hartwall could grow their visibility by sponsoring online
content creators that are as known as influencers to make videos or other posts to their social me-
dia pages.

Other idea was to get onto the music and food festivals and to make marketing campaign there.
The idea was to make a photo prop with Hartwall´s logos on it and to get all of the customers
drinking Long Drink to take photos on front of it. This is also great way to get more social media
coverage. The bait for the customers to join and post the picture would be for example tickets to
some upcoming festivals or events.
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7 Market segmentation

There are four markets segments to consider when planning the target market. The most im-
portant ones to review in the case of Hartwall are demographic and geological. Since the company
is based on Finland, it would be important to focus on the near regions in addition. Countries like
Sweden, Norway and Denmark could be possible countries considering for example distribution of
the products.

Demographic Psychographic

Market
segments

Behavioral Geographic

Figure 3 Market segments

The demographic segment of the market can be further divided into groups according to age, gen-
der, and race. In the Hartwall case, we are trying to cover all these demographics. The aim is for
Hartwall to be a brand that everyone can enjoy, regardless of these factors. The company can of-
fer products for each of these demographics since their line of brewery products is so wide. There
are products like sodas and fizzy waters for people of all ages, and alcoholic products like long
drinks and beer for adults. There is no need for this project plan to further widen their demo-
graphic accessibility, since there already is a variety of selection for everyone. Gender and race do
not come into play much in the marketing planning. Focus should be kept in the geographic seg-
ment of the marketplace.
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7.1 Target market

For this project plan, the target market is people of Nordic countries of all ages and genders. Hart-
wall is a very known brand in Finland, but the goal is to have more awareness and customers
around the Nordic Europe. Countries like Sweden, Norway and Denmark should be the focus
points. Widening distribution would be costly, but the customer base would be so much larger in
the long run and would increase the profits and brand value.

Geographic
Demographic Finland
All genders, Sweden Target market
races and ages Norway
Denmark

Figure 4 Target market of Hartwall

8 Marketing mix

The following figure shows a model of 4P from the perspective of a beverage company. Promotion
and distribution channel solutions are the most important areas of the beverage' marketing mix. In
terms of product and price, it is not easy to increase competitiveness in a mature market.
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Figure 5 Marketing mix

8.1 Product

Hartwall owns very dominant players in the beverage industry especially in Finland. Few of these
so-called players are Long Drink, Hartwall Jaffa and Karjala which are very popular beverages in
Finland. (Juvonen, 2020) Hartwall has almost an any kind of beverages you can think about, from
soft drinks to alcoholic beverages. Hartwall also own Mattsons brewery, which makes speciality
beers and lagers, so without thought Hartwall has great range of products available for consumers.
(Hartwall, 2021)

8.2 Price

Like previously mentioned Hartwall is one of the market leaders in the beverage industry in Fin-
land, so it states that they can run the pricing competition quite well, even though Coca-Cola com-
pany is quite hard competitor on the soft drink sector. Hartwall is very much able to compete on
the soft drinks and alcoholic beverages pricing wise.
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8.3 Promotion

Even today, the opportunities created by social media to implement new promotions and distribu-
tion solutions should be considered. With social media, Hartwall is able to communicate with cus-
tomers, employees and partners efficiently.

Here in Finland beverage companies have good opportunity to move into marketing in new areas.
Visibility on social media is great way to market beverage companies such as Hartwall itself. Pro-
motion can provide customers with detailed information about specific products like for example,
Long Drink. Awareness and value of the product can be increased this way.

Hartwall has quite unique and inclusive promotion strategy. Like previously mentioned Hartwall
has had many kinds of promotion campaigns as one of the biggest ones yet is the Years greyest
day campaign that is annually organised to promote the product Long Drink. Hartwall is continu-
ously promoting their products in platforms such as Instagram, Twitter, YouTube and Facebook.
(Hartwall, 2021)

8.4 Place

Products of Hartwall is available in almost all of the grocery stores in Finland. Hartwall also distrib-
utes drinks to music festivals, night clubs, bars and other events, so almost wherever you go there
is Hartwall products available for the consumers.

Hartwall companys product Long Drink is also available in 12 countries including Finland. For ex-
ample, countries such as Thailand, South Korea and United Kingdom. (Hartwall Oy, 2021)

9 Timetable

We will analyze the problems that the company Hartwall has. We would then propose fixes to the
problems that hartwall is experiencing. When our proposal gets accepted, we would than proceed
to writing a plan for the project. We would then proceed to write a theory how the project would
benefit Hartwall in the long run. We would execute the process and analyze how successful the
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project is and write a report of the success and the shortcoming so we can fix the problems in the
long run. This would go allong the process depicted in Figure 5.

The action plan is more detailed version of how the project plan will be put into action. This shows
the necessary steps to achieve the projects goal. The project goal is to generate more social media
attention for Hartwall. First step is to train the social media presentatives how to generate buzz
for Hartwall as seen in Figure 6. Second steps is to generate ideas for the competition for the
social media after the staff has been trained. Also looking for social media infulencers to boost
Hartwalls social media precense is important. The sponsorship would also create more people to
participate in the competition which in return would increase Hartwalls precense.

Figure 6 Timetable for the project

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Figure 7 Action plan

9.1.1 Budget

Project budget consist of the training costs, material needed for the project and the costs of the
sponsorships. The current budget according to Figure 6 is around 7 600€. This is for the whole IMC
project which would be highly profitable for Hartwall because it would increase presence in social
media and generate revenue for selling more of their product. The material cost is the estimated
price of making a Jaffa bottle and sending it to the sponsor.

Figure 8 Budget
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10 References

Hartwall. (2021). Hartwall. Retrieved from [Link]

Hartwall Oy. (2021). Yritys. Noudettu osoitteesta [Link]: [Link]

Juvonen, K. (2020). [Link]. Noudettu osoitteesta Asiakastarina hartwall:

[Link]

Panimoliitto. (2021). Long Drink. Noudettu osoitteesta [Link]:

[Link]

Panjwani, J. (2021). Moodle. Noudettu osoitteesta

[Link]

Panjwani, J. (2021). Moodle. Noudettu osoitteesta

[Link]

Panjwani, J. (2021). Moodle. Noudettu osoitteesta

[Link]