Customer Segmentation in Industrial Markets - CASE: Labelstock Company

The aim of this thesis is to study segmentation in industrial markets and develop a segmenting method proposal and criteria case study for a labelstock manufacturing company. An industrial company is facing many different customers with varying needs. Market segmentation is a process for dividing a market into smaller groups in which customers have the same or similar needs. Segmentation gives tools to the marketer to better match the product or service more closely to the needs of the target market. In this thesis a segmentation tool proposal and segmenting criteria is case studied for labelstock company’s Europe, Middle East and Africa business area customers and market. In the developed matrix tool different customers are planned to be evaluated based on customer characteristic variables. The criteria for the evaluating matrix are based on the customer’s buying organizations characteristics and buying behaviour. There are altogether 13 variables in the evaluating matrix. As an example of variables there are loyalty, size of the customer, estimated growth of the customer purchases and customer’s decision-making and buying behaviour. These characteristic variables will help to identify market segments to target and the customers belonging to those segments.

Creative brand launch in phamaceutical over-the-counter markets – case Burana

The purpose of this study is to examine how a launch of a pharmaceutical over-the-counter sold (OTC) brand can be done by using creative solutions and thus affecting the product life cycle. The study is inspired by a phenomenon called Burana. The Burana brand has been a market leader of OTC painkillers in Finland for the past 27 years. The aim of this study is to “solve the mystery” behind Burana brand’s success by focusing on the launch phase of Burana as an OTC medicine. Farmos Group Ltd (the owner of the brand in 1980´s) had not originally invented the product in question – ibuprofen – and the product had already reached it´s maturity phase, if not even decline from the product life cycle aspect when this phenomenon takes place. This has made the marketing choices, the product launch phase as well as the product management even more interesting from the company point of view as well as from a learning point of view. The methodology in this study is qualitative with a descriptive research strategy, while the study is conducted as a longitudinal single-case study. The methods used in this study have been collecting, analyzing and interpreting the data, which is based on the interviewees’ comments and observed behavior. According to the study, the successful launch phase helped in setting the product one step ahead of the competitors and thus aided the brand leadership and prolonged the product life cycle. Another notable aspect that became clear from the interviews and the documentary of Burana´s launch phase was the innovative idea of involving the people of the distribution chain into the product launch through education. As this study has pointed out, it is not enough to for a company to build an innovative team of employees, but also to offer them an involved and encouraging management. According to the interviews, the support from the company management gave the marketing team the encouragement to be innovative. It can be thus stated that the management of a company has an essential role in fostering the creativity within the company.

Deregulation’s Impact on the Railway Freight Transport Sector’s Future in the Baltic Sea Region

The European transport market has confronted several changes during the last decade. Due to European Union legislative mandates, the railway freight market was deregulated in 2007. The market followed the trend started by other transport modes as well as other previously regulated industries such as banking, telecommunications and energy. Globally, the first country to deregulate the railway freight market was the United States, with the introduction of the Staggers Rail Act in 1980. Some European countries decided to follow suit already before regulation was mandated; among the forerunners were the United Kingdom, Sweden and Germany. The previous research has concentrated only on these countries, which has provided an interesting research gap for this thesis. The Baltic Sea Region consists of countries with different kinds of liberalization paths, including Sweden and Germany, which have been on the frontline, whereas Lithuania and Finland have only one active railway undertaking, the incumbent. The transport market of the European Union is facing further challenges in the near future, due to the Sulphur Directive, oil dependency and the changing structure of European rail networks. In order to improve the accessibility of this peripheral area, further action is required. This research focuses on topics such as the progression of deregulation, barriers to entry, country-specific features, cooperation and internationalization. Based on the research results, it can be stated that the Baltic Sea Region’s railway freight market is expected to change in the future. Further private railway undertakings are anticipated, and these would change the market structure. The realization of European Union’s plans to increase the improved rail network to cover the Baltic States is strongly hoped for, and railway freight market counterparts inside and among countries are starting to enhance their level of cooperation. The Baltic Sea Region countries have several special national characteristics which influence the market and should be taken into account when companies evaluate possible market entry actions. According to thesis interviews, the Swedish market has a strong level of cooperation in the form of an old-boy network, and is supported by a positive attitude of the incumbent towards the private railway undertakings. This has facilitated the entry process of newcomers, and currently the market has numerous operating railway undertakings. A contrary example was found from Poland, where the incumbent sent old rolling stock to the scrap yard rather than sell it to private railway undertakings. The importance of personal relations is highlighted in Russia, followed by the railway market’s strong political bond with politics. Nonetheless, some barriers to entry are shared by the Baltic Sea Region, the main ones being acquisition of rolling stock, bureaucracy and needed investments. The railway freight market is internationalizing, which is perceived via several alliances as well as the increased number of mergers and acquisitions. After deregulation, markets seem to increase the number of railway undertakings at a rather fast pace, but with the passage of time, the larger operators tend to acquire smaller ones. Therefore, it is expected that in a decade’s time, the number of railway undertakings will start to decrease in the deregulation pioneer countries, while the ones coming from behind might still experience an increase. The Russian market is expected to be totally liberalized, and further alliances between the Russian Railways and European railway undertakings are expected to occur. The Baltic Sea Region’s railway freight market is anticipated to improve, and, based on the interviewees’ comments, attract more cargoes from road to rail.

Identification of research trends in the field of separation processes. Application of epidemiological model, citation analysis, text mining, and technical analysis of the financial markets

Choice of industrial development options and the relevant allocation of the research funds become more and more difficult because of the increasing R&D costs and pressure for shorter development period. Forecast of the research progress is based on the analysis of the publications activity in the field of interest as well as on the dynamics of its change. Moreover, allocation of funds is hindered by exponential growth in the number of publications and patents. Thematic clusters become more and more difficult to identify, and their evolution hard to follow. The existing approaches of research field structuring and identification of its development are very limited. They do not identify the thematic clusters with adequate precision while the identified trends are often ambiguous. Therefore, there is a clear need to develop methods and tools, which are able to identify developing fields of research. The main objective of this Thesis is to develop tools and methods helping in the identification of the promising research topics in the field of separation processes. Two structuring methods as well as three approaches for identification of the development trends have been proposed. The proposed methods have been applied to the analysis of the research on distillation and filtration. The results show that the developed methods are universal and could be used to study of the various fields of research. The identified thematic clusters and the forecasted trends of their development have been confirmed in almost all tested cases. It proves the universality of the proposed methods. The results allow for identification of the fast-growing scientific fields as well as the topics characterized by stagnant or diminishing research activity.

The Use of Data Envelopment Analysis as Equity Portfolio Selection Criterion in the Finnish Stock Market

This thesis examines the application of data envelopment analysis as an equity portfolio selection criterion in the Finnish stock market during period 2001-2011. A sample of publicly traded firms in the Helsinki Stock Exchange is examined in this thesis. The sample covers the majority of the publicly traded firms in the Helsinki Stock Exchange. Data envelopment analysis is used to determine the efficiency of firms using a set of input and output financial parameters. The set of financial parameters consist of asset utilization, liquidity, capital structure, growth, valuation and profitability measures. The firms are divided into artificial industry categories, because of the industry-specific nature of the input and output parameters. Comparable portfolios are formed inside the industry category according to the efficiency scores given by the DEA and the performance of the portfolios is evaluated with several measures. The empirical evidence of this thesis suggests that with certain limitations, data envelopment analysis can successfully be used as portfolio selection criterion in the Finnish stock market when the portfolios are rebalanced at annual frequency according to the efficiency scores given by the data envelopment analysis. However, when the portfolios were rebalanced every two or three years, the results are mixed and inconclusive.

Stock Price Reactions on M&A, Dividends and Game Releases. Evidence from Gaming Industry.

A rapidly growing gaming industry, which specializes on PC, console, online and other games, attracts attention of investors and analysts, who try to understand what drives changes of the gaming industry companies’ stock prices. This master thesis shows the evidence that, besides long-established types of events (M&A and dividend payments), the companies’ stock price changes depend on industry-specific events. I analyzed specific for gaming industry events - game releases with respect to its subdivisions: new games-sequels, games ratings and subdivision according to a developer of a game (self-developed by publisher or outsourced). The master thesis analyzes stock prices of 55 companies from gaming industry from all over the world. The research period covers 5 year, spreading from April 2008 to April 2013. Executed with an event study method, results of the research show that all the analyzed events types have significant influence on the stock prices of the gaming industry companies. The current master thesis suggests that acquisitions in the industry affect positively bidders’ and targets’ stock prices. Mergers events cause positive stock price reactions as well. But dividends payments and game releases events influence negatively on the stock prices. Game releases’ effect is up to -2.2% of cumulative average abnormal return (CAAR) drop during the first ten days after the game releases. Having researched different kinds of events and identified the direction of their impact, the current paper can be of high value for investors, seeking profits in the gaming industry, and other interested parties.

Information and appearance - design creating value for wearable technology items in B2C markets

The objective of the thesis is to study the role of design in adding value for wearable technology (WT) items in B2C markets by applying previous value creation literature to the subject. The thesis investigates value creation through types of value perceived by the customer being functional/instrumental, experiential/hedonic, symbolic/expressive and cost/sacrifice. The data was collected in face-to-face interviews with both consumers and industry experts. The results suggest that value perceived by both experts and consumers in every end-user category was elementarily functional, however, design was considered to bring most added value to WT in the categories of health and medicine, infotainment, and fashion. Also, WT ought to have same characteristics as regular clothing in order to attract mass markets. The results of the study suggest that companies should invest in design in order to gain long-term user engagement.

The role of network externalities in value creating process of the commercial web service for two-sided international markets

Network externalities and two-sided markets in the context of web services and value creation is not very well discussed topic in academic literature. The explosive rise of the Internet users has created a strong base for many successful web services and pushed many firms towards e-business and online service based business models. Thus the subject of this thesis, the role of network externalities in value creating process of the commer-cial web service for two-sided international markets is very current and interesting topic to examine. The objective of this Master’s Thesis is to advance the study of network externalities from the viewpoint of two-sided markets and network effects as well as describe the value creation & value co-creation process in commercial web service business models. The main proposition suggests that the larger network of customers and the bigger number of users the web service is able to attract, the more value and stronger positive net-work externalities the service is able to create for each customer group. The empirical research of this study was implemented for commercial web service, targeted to Russian consumers and Finnish business users. The findings suggest that the size of the network is highly related to the experi-enced value of the customers and the whole value creation process of commercial web targeted for two-sided international markets varies from the value creation for one-sided or pure domestic markets.