Gearing Towards Omnichannel Grocery Retail Through Business Model Innovation

Technological innovations and the advent of digitalization have led retail business into one of its biggest transformations of all time. Consumer behaviour has changed rapidly and the customers are ever more powerful, demanding, tech-savvy and moving on various plat-forms. These attributes will continue to drive the development and robustly restructure the architecture of value creation in the retail business. The largest retail category, grocery yet awaits for a real disruption, but the signals for major change are already on the horizon. The first wave of online grocery retail was introduced in the mid 1990’s and it throve until millennium. Many overreactions, heavy investments and the burst IT-bubble almost stag-nated the whole industry for a long period of time. The second wave started with a venge-ance around 2010. Some research was carried out during the first wave from a single-viewpoint of online grocery retail, but without a comprehensive approach to online-offline business model integration. Now the accelerating growth of e-business has initiated an increased interest to examine the transformation from traditional business models towards e-business models and their integration on the companies’ traditional business models. This research strove to examine how can we recognize and analyze how digitalization and online channels are affecting the business models of grocery retail, by using business mod-el canvas as an analysis tool. Furthermore business model innovation and omnichannel retail were presented and suggested as potential solutions for these changes. 21 experts in online grocery industry were being interviewed. The thoughts of the informants were being qualitatively analysed by using an analysis tool called the business model canvas. The aim of this research was to portray a holistic view on the Omnichannel grocery retail business model, and the value chain, in which the case company Arina along with its partners are operating. The key conclusions exhibited that online grocery retail business model is not an alterna-tive model nor a substitute for the traditional grocery retail business model, though all of the business model elements are to some extent affected by it, but rather a complementary business model that should be integrated into the prevailing, conventional grocery retail business model. A set of business model elements, such as value proposition and distribu-tion channels were recognized as the most important ones and sources of innovation within these components were being illustrated. Segments for online grocery retail were empiri-cally established as polarized niche markets in contrast of the segmented mass-market of the conventional grocery retail. Business model innovation was proven to be a considera-ble method and a conceptual framework, by which to come across with new value proposi-tions that create competitive advantage for the company in the contemporary, changing business environment. Arina as a retailer can be considered as a industry model innovator, since it has initiated an entire industry in its market area, where other players have later on embarked on, and in which the contributors of the value chain, such as Posti depend on it to a great extent. Consumer behaviour clearly affects and appears everywhere in the digi-talized grocery trade and it drives customers to multiple platforms where retailers need to be present. Omnichannel retail business model was suggested to be the solution, in which the new technologies are being utilized, contemporary consumer behaviour is embedded in decision-making and all of the segments and their value propositions are being served seamlessly across the channels.

Contemporary marketing in the high-tech industry: Perceptions of Finnish IT marketing professionals

Over the last 30 years, new technologies and globalization have radically changed the way in which marketing is conducted. However, whereas their effects on business in general have been widely discussed, the focus of the effects on marketing remains without clear recognition. Global research has been made to shed light onto the issue, but it has widely concentrated on the views of executives as well as the consumer markets. In addition, a research gap is existent in applying the concept of marketing change in a specific business-to-business (B2B) industry. Therefore, the main research question this study seeks to answer is: “How is contemporary marketing conducted in the high-technology industry?” In this research, the researcher considers the specific industry of high-technology. However, as the industry is comprised of differing markets, the focus will be given to one of the industry’s prime sectors – the information technology (IT) markets, where companies offer other firms products or services manufactured with advanced technology. The growing IT-market is considered of critical importance in the economies of technologically ready countries such as Finland, where this research is also conducted. Through multiple case studies the researcher aims to describe how the changes in technology, customer engagement and future trends have shaped the way in which successful high-tech marketing is conducted in today’s marketplace. Then, results derived from the empirical research are presented to the reader with links to existing literature. As a conclusion, a generalized framework is constructed to depict and ideal marketer-customer relationship, with emphasis on dynamic, two-way communication and its supporting elements of customer analytics, change adaptation, strategic customer communication and organizational support. From a managerial point of view, the research may provide beneficial information as contemporary marketing can yield profitable outcomes if managed correctly. As a new way to grasp competitive advantage, strategic marketing is much more data-driven and customer-focused than ever before. The study can also prove to be relevant for the academic communities, while its results may act as inspiring for new focus on the education trends of future marketers. This study was limited to the internal activities done at the high-tech industry, leaving out the considerations for co-marketing, marketing via business partners or marketing at other B2B-industries.

Pressure to change and resistance against it: consumer perceptions and acceptance of nutritionally modified foods

Selostus: Muutospaineet ja muutosvastarinta: kuluttajien suhtautuminen ravitsemuksellisesti muunnettuihin elintarvikkeisiin

Calculation of wood volume and stem taper using terrestrial single-image close-range photogrammetry and contemporary software tools

Abstract

The effect of brand trust on satisfaction, trust, and loyalty on a consumer magazine website

Internetin käyttö on yleistynyt valtavasti viimeisen kymmenen vuoden aikana. Internetissä kuluttajalta puuttuu kasvokkainen kontakti myyjään, mikä voi vähentää kuluttajan luottamusta myyjää kohtaan. Tällaisessa tilanteessa kuluttaja voi käyttää brändejä viitteenä myyjän luotettavuudesta. Tämän tutkielman tarkoituksena on tutkia brändiluottamuksen vaikutusta kuluttajan tyytyväisyyteen, luottamukseen ja uskollisuuteen Internet-sivuja kohtaan. Tutkielman kysely (n=875) toteutettiin Vauva-lehden Internet-sivuilla. Tutkielman tulokset paljastavat, että brändiluottamuksella on merkittävä myönteinen vaikutus kuluttajan tyytyväisyyteen, luottamukseen ja uskollisuuteen Internet-sivuja kohtaan. Internet-sivujen aikaisempikäyttö sekä rekisteröityminen sivuille vaikuttavat myös luottamukseen Internet-sivuja kohtaan. Lisäksi brändiluottamuksen vaikutus brändiuskollisuuden osoittautui erittäin merkittäväksi.

The Value System of Consumer Board Packaging

Olemassa olevien teollisuuden rakenteiden ja arvoketjujen muutos on usein onnistuneiden liiketoimintainnovaatioiden takana. Yritysten tulisikin olla tietoisia rakenteista, jotka määrittelevät arvon jakaantumista niiden arvoketjuissa. Tämän työn tavoitteena oli tutkia ja arvioida kartongin pakkausketjujen rakenteita kartongintuottajalta aina kauppiaalle asti. Työn kuluessa yritysketjujen arviointia varten oli kehitettävä uudenlainen analysointityökalu. Työssä käsitellyt kartonkipakkausketjut olivat nestekartonkipakkaaminen, elintarvikepakkaaminen, lääkepakkaaminen sekä graafisten kartonkien ketju. Jokaista edellä mainituista ketjuista arvioitiin käyttämällä kehitettyä analysointityökalua. Työn merkittävin tulos on kehitetty työkalu, jolla pakkausketjuja sekä myös muita yritysketjuja on mahdollista analysoida. Kehitettyä työkalua käyttämällä oli mahdollista tehdä johtopäätöksiä vertikaalin integraation mahdollisuudesta sekä pakkausketjujen suotuisuudesta uusille bisnesmalleille. Sekä analysointityökalua että saatuja johtopäätöksiä voidaan käyttää hyväksi, kun kartongintuottaja suunnittelee tulevaisuuden toimenpiteitä.

Consumer resistance to mobile commerce services

Oheinen opinnäytetyö on kvalitatiivinen tutkimus kuluttajavastarinnasta mobiilin kaupankäynnin palveluja kohtaan. Tutkimus kohdistuu läntisiin kulttuureihin, joissa kyseisen innovatiivisen palveluryhmän leviämistä tukevat monet aikaisemmat innovaatiot kuten matkapuhelin, Internet, digitaaliset pankkipalvelut. Tutkimus esittelee innovaatioiden vastarintatekijöitä ihmisen luonnollisena reaktiona tämän vakiintuneita elämäntapoja mullistavia keksintöjä kohtaan nimenomaan läntisissä kulttuureissa, joissa kuluttajat ovat perinteisesti hyvin teknologiamyönteisiä. Toisaalta tutkimusalueella on havaittavissa sosiaalisten ryhmien pirstoutuminen yhä pienemmiksi alaryhmiksi, mikä voi hidastaa sosiaalista oppimista. Tutkimus vastaa todelliseen tutkimusaukkoon. Aihe on samalla sekä ajankohtainen että relevantti vastatessaan nykyisin käytävään utopistiseen keskusteluun digitaalisen informaatioyhteiskunnan kehittymisestä ja merkityksestä modernille ihmiskunnalle. Tutkimuksen teoreettinen eksploratiivinen viitekehys rakentuu valikoiduista uusien tuotteiden ja palvelujen kehittämisen, palvelumarkkinoinnin ja sosiaalisen oppimisen teorioista sekä innovaatio- kommunikaatioteorioista. Empiirisen osan muodostavat kansainvälisten markkinatutkimuslaitosten ja haastateltujen asiantuntijoiden näkemykset alan kehityksestä. Tutkimus osoittaa, että kuluttajat eivät ole valmiita vastaanottamaan kehittyvien teknologioiden mahdollistamia mobiilin kaupankäynnin palveluita ennen kuin ne vastaavat kuluttajien perustarpeisiin ja rakenteelliset vastarintatekijät (alhainen käytettävyys, matala lisäarvo, koetut riskit, perinnevastarinta, palveluryhmän huono mielikuva) on poistettu. Tutkimus esittää, että mobiilin kaupankäynnin alalla toimivien yritysten tulisi työskennellä yhteistyössä keskenään ja kuluttajien kanssa luodakseen kuluttajien tarpeita ja toiveita vastaavia turvallisiksi koettuja mobiilin kaupankäynnin palveluita. Tutkimus ehdottaa, että kyselytutkimusten ohella käytettäisiin havaintomenetelmiä, jotta teknologiat voitaisiin valjastaa kuluttajien tarpeita ja kulutustottumuksia vastaaviksi.

The Strategic Intent and Launching of a Knowledge Management Tool in a Complex Organisation, case Stora Enso Consumer Boards

Informaatiotulva ja organisaation monimutkaisuus luoneet tarpeen tietämyksen hallinnalle. Tämän tutkimuksen tavoitteena on tunnistaa muutostarpeet, jotka portaalin käyttöönotto tietämyksenhallintatyökaluna luo. Tutkimuksessa verrataan myös uusia työkaluja olemassa oleviin sekä arvioidaan organisaation kykyä siirtää tietämystä virtuaalisesti. Kirjallisuutta vastaavanlaisista projekteista ei ole ollut saatavilla, sillä käyttöönotettava teknologia on melko uutta. Samaa teknologiaa on käytössä hieman eri alueella, kuin tässä projektissa on tavoitteena. Tutkimus on tapaustutkimus, jonka pääasialliset lähteet ovat erilaisissa kokouksissa tuotettuja dokumentteja. Tutkija on osallistunut aktiivisesti projektityöhön, joten osa taustatiedoista perustuu tutkijan huomioihin sekä vielä keskusteluihin. Teoriaosassa käsitellään tietämyksen jakamista tietämyksen hallinnan ja virtuaalisuuden näkökulmasta. Muutoksen hallintaa on käsitelty lyhyesti tietämyksenhallintatyökalun käyttöönotossa. Tutkimus liittyy Stora Enso Consumer Boardsin tietämyksen hallintaprojektiin.

Image and value of product brand in industrial markets: Case Stora Enso Consumer Packaging Boards

TUTKIMUKSEN TAVOITTEET Tutkielman tavoitteena oli luoda ensin yleiskäsitys tuotemerkkimarkkinoinnin roolista teollisilla markkinoilla, sekä suhdemarkkinoinnin merkityksestä teollisessa merkkituotemarkkinoinnissa. Toisena oleellisena tavoitteena oli kuvata teoreettisesti merkkituoteidentiteetin rakenne teollisessa yrityksessä ja sen vaikutukset myyntihenkilöstöön, ja lisäksi haluttiin tutkia tuotemerkkien lisäarvoa sekä asiakkaalle että myyjälle. Identiteetti ja sen vaikutukset, erityisesti imago haluttiin tutkia myös empiirisesti. LÄHDEAINEISTO JA TUTKIMUSMENETELMÄT Tämän tutkielman teoreettinen osuus perustuu kirjallisuuteen, akateemisiin julkaisuihin ja aikaisempiin tutkimuksiin; keskittyen merkkituotteiden markkinointiin, identiteettiin ja imagoon, sekä suhdemarkkinointiin osana merkkituotemarkkinointia. Tutkimuksen lähestymistapa on kuvaileva eli deskriptiivinen ja sekä kvalitatiivinen että kvantitatiivinen. Tutkimus on tapaustutkimus, jossa caseyritykseksi valittiin kansainvälinen pakkauskartonki-teollisuuden yritys. Empiirisen osuuden toteuttamiseen käytettiin www-pohjaista surveytä, jonka avulla tietoja kerättiin myyntihenkilöstöltä case-yrityksessä. Lisäksi empiiristä osuutta laajennettiin tutkimalla sekundäärilähteitä kuten yrityksen sisäisiä kirjallisia dokumentteja ja tutkimuksia. TULOKSET. Teoreettisen ja empiirisen tutkimuksen tuloksena luotiin malli jota voidaan hyödyntää merkkituotemarkkinoinnin päätöksenteon tukena pakkauskartonki-teollisuudessa. Teollisen brandinhallinnan tulee keskittyä erityisesti asiakas-suhteiden brandaukseen – tätä voisi kutsua teolliseksi suhdebrandaukseksi. Tuote-elementit ja –arvot, differointi ja positiointi, sisäinen yrityskuva ja viestintä ovat teollisen brandi-identiteetin peruskiviä, jotka luovat brandi-imagon. Case-yrityksen myyntihenkilöstön tuote- ja yritysmielikuvat osoittautuivat kokonaisuudessaan hyviksi. Paras imago on CKB tuotteilla, kun taas heikoin on WLC tuotteilla. Teolliset brandit voivat luoda monenlaisia lisäarvoja sekä asiakas- että myyjäyritykselle.

Nutrient enrichment and water depth modify consumer control in rocky shore macroalgal communities

The objective of my thesis is to assess mechanisms of ecological community control in macroalgal communities in the Baltic Sea. In the top-down model, predatory fish feed on invertebrate mesograzers, releasing algae partly from grazing pressure. Such a reciprocal relationship is called trophic cascade. In the bottom-up model, nutrients increase biomass in the food chain. The nutrients are first assimilated by algae and, via food chain, increase also abundance of grazers and predators. Previous studies on oceanic shores have described these two regulative mechanisms in the grazer - alga link, but how they interact in the trophic cascades from fish to algae is still inadequately known. Because the top-down and bottom-up mechanisms are predicted to depend on environmental disturbances, such as wave stress and light, I have studied these models at two distinct water depths. There are five factorial field experiments behind the thesis, which were all conducted in the Finnish Archipelago Sea. In all the experiments, I studied macroalgal colonization - either density, filament length or biomass - on submerged colonization substrates. By excluding predatory fish and mesograzers from the algal communities, the studies compared the strength of the top-down control to natural algal communities. A part of the experimental units were, in addition, exposed to enriched nitrogen and phosphorus concentrations, which enabled testing of bottom-up control. These two models of community control were further investigated in shallow (<1 m) and deep (ca. 3 m) water. Moreover, the control mechanisms were also expected to depend on grazer species. Therefore different grazer species were enclosed into experimental units and their impacts on macroalgal communities were followed specifically. The community control in the Baltic rocky shores was found to follow theoretical predictions, which have not been confirmed by field studies before. Predatory fish limited grazing impact, which was seen as denser algal communities and longer algal filaments. Nutrient enrichment increased density and filament length of annual algae and, thus, changed the species composition of the algal community. The perennial alga Fucus vesiculosusA and the red alga Ceramium tenuicorne suffered from the increased nutrient availabilities. The enriched nutrient conditions led to denser grazer fauna, thereby causing strong top-down control over both the annual and perennial macroalgae. The strength of the top-down control seemed to depend on the density and diversity of grazers and predators as well as on the species composition of macroalgal assemblages. The nutrient enrichment led to, however, weaker limiting impact of predatory fish on grazer fauna, because fish stocks did not respond as quickly to enhanced resources in the environment as the invertebrate fauna. According to environmental stress model, environmental disturbances weaken the top-down control. For example, on a wave-exposed shore, wave stress causes more stress to animals close to the surface than deeper on the shore. Mesograzers were efficient consumers at both the depths, while predation by fish was weaker in shallow water. Thus, the results supported the environmental stress model, which predicts that environmental disturbance affects stronger the higher a species is in the food chain. This thesis assessed the mechanisms of community control in three-level food chains and did not take into account higher predators. Such predators in the Baltic Sea are, for example, cormorant, seals, white-tailed sea eagle, cod and salmon. All these predatory species were recently or are currently under intensive fishing, hunting and persecution, and their stocks have only recently increased in the region. Therefore, it is possible that future densities of top predators may yet alter the strengths of the controlling mechanisms in the Baltic littoral zone.

Innovation process management of complex consumer products and services in new innovation paradigm – case location based business

Innovation is the word of this decade. According to innovation definitions, without positive sales impact and meaningful market share the company’s product or service has not been an innovation. Research problem of this master thesis is to find out what is the innovation process of complex new consumer products and services in new innovation paradigm. The objective is to get answers to two research questions: 1) What are the critical success factors what company should do when it is implementing the paradigm change in mass markets consumer business with complex products and services? 2) What is the process or framework one firm could follow? The research problem is looked from one company’s innovation creation process, networking and organization change management challenges point of views. Special focus is to look the research problem from an existing company perspective which is entering new business area. Innovation process management framework of complex new consumer products and services in new innovation paradigm has been created with support of several existing innovation theories. The new process framework includes the critical innovation process elements companies should take into consideration in their daily activities when they are in their new business innovation implementing process. Case company location based business implementation activities are studied via the new innovation process framework. This case study showed how important it is to manage the process, look how the target market and the competition in it is developing during company’s own innovation process, make decisions at right time and from beginning plan and implement the organization change management as one activity in the innovation process. In the end this master thesis showed that all companies need to create their own innovation process master plan with milestones and activities. One plan does not fit all, but all companies can start their planning from the new innovation process what was introduced in this master thesis.

Drivers and Barriers of Collaboration in the Value Chain of Paperboard-Packed Consumer Goods

Value chain collaboration has been a prevailing topic for research, and there is a constantly growing interest in developing collaborative models for improved efficiency in logistics. One area of collaboration is demand information management, which enables improved visibility and decrease of inventories in the value chain. Outsourcing of non-core competencies has changed the nature of collaboration from intra-enterprise to cross-enterprise activity, and this together with increasing competition in the globalizing markets have created a need for methods and tools for collaborative work. The retailer part in the value chain of consumer packaged goods (CPG) has been studied relatively widely, proven models have been defined, and there exist several best practice collaboration cases. The information and communications technology has developed rapidly, offering efficient solutions and applications to exchange information between value chain partners. However, the majority of CPG industry still works with traditional business models and practices. This concerns especially companies operating in the upstream of the CPG value chain. Demand information for consumer packaged goods originates at retailers' counters, based on consumers' buying decisions. As this information does not get transferred along the value chain towards the upstream parties, each player needs to optimize their part, causing safety margins for inventories and speculation in purchasing decisions. The safety margins increase with each player, resulting in a phenomenon known as the bullwhip effect. The further the company is from the original demand information source, the more distorted the information is. This thesis concentrates on the upstream parts of the value chain of consumer packaged goods, and more precisely the packaging value chain. Packaging is becoming a part of the product with informative and interactive features, and therefore is not just a cost item needed to protect the product. The upstream part of the CPG value chain is distinctive, as the product changes after each involved party, and therefore the original demand information from the retailers cannot be utilized as such – even if it were transferred seamlessly. The objective of this thesis is to examine the main drivers for collaboration, and barriers causing the moderate adaptation level of collaborative models. Another objective is to define a collaborative demand information management model and test it in a pilot business situation in order to see if the barriers can be eliminated. The empirical part of this thesis contains three parts, all related to the research objective, but involving different target groups, viewpoints and research approaches. The study shows evidence that the main barriers for collaboration are very similar to the barriers in the lower part of the same value chain; lack of trust, lack of business case and lack of senior management commitment. Eliminating one of them – the lack of business case – is not enough to eliminate the two other barriers, as the operational model in this thesis shows. The uncertainty of the future, fear of losing an independent position in purchasing decision making and lack of commitment remain strong enough barriers to prevent the implementation of the proposed collaborative business model. The study proposes a new way of defining the value chain processes: it divides the contracting and planning process into two processes, one managing the commercial parts and the other managing the quantity and specification related issues. This model can reduce the resistance to collaboration, as the commercial part of the contracting process would remain the same as in the traditional model. The quantity/specification-related issues would be managed by the parties with the best capabilities and resources, as well as access to the original demand information. The parties in between would be involved in the planning process as well, as their impact for the next party upstream is significant. The study also highlights the future challenges for companies operating in the CPG value chain. The markets are becoming global, with toughening competition. Also, the technology development will most likely continue with a speed exceeding the adaptation capabilities of the industry. Value chains are also becoming increasingly dynamic, which means shorter and more agile business relationships, and at the same time the predictability of consumer demand is getting more difficult due to shorter product life cycles and trends. These changes will certainly have an effect on companies' operational models, but it is very difficult to estimate when and how the proven methods will gain wide enough adaptation to become standards.