Report marketing-Analysis of Hesburger company PDF

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Marketing: Report about Hesburger

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This assignment explains about the environmental factors that have the effect on fast food industry and they are adapting the changes to be in the competitors. ! We will talked about the two parts of marketing environment; the macroenvironment and the microenvironment have been analyzed using the “Hesburger” fast food company. ! The macro-environmental factors include demographic, economic, technological, natural, political and cultural environment.! The micro-environment is composed to company, suppliers, competitors, marketing intermediaries, publics and customers.! Introduction The Hesburger is a fast-food company that is founded in Finland by Heikki Salmela in 1966. Started with a kiosk in a little town that it is called Naantaii and after that, in the 1980’s, fast food gained an even stronger presence in Finland with honest-togoodness fast food restaurants. Over the years, Hesburger has expanded throughout Finland and it become like trend. ! Describe the environmental forces that affect the company’s ability to serve its customers Before to describe the environmental forces that affect the company’s ability to serve its customers it is important to start with the definition of marketing environmental.! Marketing environment consists of actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.! Marketing environment is divided in two parts: microenvironment and macroenvironment. ! The first is referred to the actors close to the company that affect its ability and its costumers.! The second one is referred to the larger societal forces that affect the microenvironment.! We’re starting with the macroenvironment of Hesburger.! The forces that has some impacts on its are the following:! 1-Demographic;! 2-Economic:! 3-Political;! 4-Technological;! 5-Natural;! 6-Cultural;!

Explain how changes in the demographic and economic environments affect marketing decisions. Demographic environment: Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation and other statistics (Kotler, et al, 2004). ! The demographic environment is of great importance to marketers as it involves the study of people, and it is people that make up markets.! About Lithuania we can said that Lithuania, officially the Republic of Lithuania, is located in$Northern Europe$along the Baltic Sea east of$Denmark$and$Sweden. In 2020, Lithuania has an estimated population of 2.72 million, which ranks 142nd in the world.! Lithuania’s estimated population of 2.72 million is significantly lower than the estimated population of 3.04 million in 2011, and lower than the population in 2013.! -Ethnic:! Lithuanians$are neither$Slavic$nor$Germanic, although the union with$Poland,$German$and$Russian$colonization and settlement left cultural and religious influences.! The three largest cities in Lithuania are$Vilnius$(542,366) - which is also the capital of Lithuania, Kaunas (306,800) and Klaipeda (158,500).! The 2011 census found that 84% of the population is ethnic Lithuanians who spoke Lithuanian. ! Poles made up 6.6%, followed by Russians (5.8%), Belarusians (1.2%) and Ukrainians (0.5%).! Before World War II about 7.5% of the population was Jewish; they were concentrated in cities and towns and had a significant influence on crafts and business. ! They were called Litvaks and had a strong culture. ! Almost all of these Jews were killed during the Nazi German occupation, or later emigrated to the United States and Israel. Now there are only about 4,000 Jews living in Lithuania.! ! -Age:! The age structure in Lithuania is around 26% under the age of 25, 54% between the ages of 25 and 64, and nearly 20% are over the age of 65.! The current median age as of 2018 is calculated at 43.7 years of age.!

-Population Growth:! Currently, the population growth annual rate is at -.48% in 2018, which is a slight improvement from 2017.! At the end we can say that the demographic has some impacts on Hesburger because the main customers of its company is the age range more youngest, in particular the adolescents and the families, precisely because, how we can see by the statistics up, they are the most numerous age groups in Lithuania.! Thanks to the demographic’s statistics about Lithuania Hesburger can choose its customers and to try to elaborate some marketing strategies to sell her products and to convince its clients about its values.! Economic environment Despite this population decline, Lithuania has one of the fastest growing economies in the$European Union.! The economy of Lithuania is the largest economy among the three Baltic states. Lithuania is a member of the European Union and its GDP per capita is the highest in the Baltic states.! Lithuania was the first country to declare independence from Soviet Union in 1990 and rapidly moved from centrally planned to a market economy, implementing numerous liberal reforms.! It enjoyed high growth rates after joining the European Union along with the other Baltic states.! Lithuania's economy (GDP) grew more than 500 percent since regaining independence in 1990. Half of the workforce in the Baltic states – 3.3 million live in Lithuania – 1.4 million.! GDP growth reached its peak in 2008, and is approaching the same levels again in 2018.! Similar to the other Baltic States, the Lithuanian economy suffered a deep recession in 2009, with GDP falling by almost 15%.! After severe recession, the country's economy started to show signs of recovery already in 3rd quarter of 2009, returned to growth in 2010 with positive 1.3 outcome and with 6.6 per cent growth during the first half of 2011 country is one of the fastest growing economies in the EU.! One of the most important factors contributing to Lithuania's economic growth was its accession to the WTO in 2001 and the EU in 2004, which allows free movement of labour, capital, and trade among EU member states.! Unemployment in Lithuania has been volatile.! Since the year 2001, the unemployment rate has decreased from almost 20% to less than 4% in 2007 thanks to two main reasons.! Firstly, during the time of rapid economic expansion, numerous work places were established.! This caused a decrease in the unemployment rate and a rise in staff expenses. Secondly, emigration has also reduced unemployment problems since accession to the EU.!

However, the economic crisis of year 2008 has lowered the need for workers, so the unemployment rate increased to 13.8% and then stabilized in the third quarter of 2009.! Unemployment rate in I quarter of 2018 was 6.3 percent.! The number of the population aged 15 years and over is 1.45 million, activity rate was 60 percent in 2017.! In 2020 the economic situation in Lithuania is stable.! Thanks to all of these reasons, economic has an important impact on Hesburger company.! The motivations that lead Hesburger to invest in Lithuania is because this last one one is one of the most important baltic country in economic level, so for this reasons there are a lot of Hesburger’s restaurants in this country and it is for this that that company wants to invest as possible as it can there.! For the company it is very convenient to invest its money in Lithuania, because it is more probable than other countries that it can earn and sell.! In fact, how we can see thanks to the statistics, Lithuania is in the second place for number of stores.! In Finland there are a lot of places because, how we know, Hesburger is a Finland company.!

Country Finland

Number of stores 279

Lithuania

55

Latvia

50

Estonia

48

Russia

39

Bulgaria

18

Ukraine

5

Germany

2

Belarus

1

Hailing from Finland, Hesburger has successfully combined commercial acumen with commitment to sustainable development, to become a leading fast food chain in nine countries. ! Hesburger marketing campaigns rarely happen in a silo.!

They are often affected by external economic factors such as consumer confidence and unemployment rates. ! When developing a marketing strategy, businesses need to factor in the economy of their target market to ensure they prepare for the ramifications of an economic downturn.! Some of the biggest economic factors that affect marketing are demand and supply. ! Often, the goal of a marketing campaign is to drive up demand. When demand is high, the price of a product can also be high, increasing profitability for a business. When demand is low, the price lowers too. ! When there is a limited supply of materials, either due to manufacturing or environmental issues, the demand increases due to the availability. ! Hesburger marketing strategy is also applicable in this concept.! When releasing a new product or service, consider marketing it as "limited availability" to drive up demand and price. ! Hesburger understand that consumers are more likely to make purchases when they feel confident in the economy of their country and in their own financial situation. ! In addition to a logical factor, consumer confidence has an emotional component that is beneficial to Hesburger. ! When consumer confidence is high, Hesburger marketing campaigns can focus on the internal elements that affect purchasing decisions and include messaging that uses highly emotional language.!

Major trends in the natural and technological environment Natural environment The Government of Lithuania has largely supported the integrated draft National Energy and Climate Plan (NECP) for the period 2021-2030, laying down Lithuania’s ambitions to combat climate change, also because during these year Lithuania has undergone a lot of climate change.! For this reason recycling nowadays is an important topic within the climate change that it really affects customer’s decision.! Hesburger has reduced and thinned out the use of packaging materials in several ways. ! For example, polystyrene containers were eliminated in the 1990s and Hesburger restaurants have never used plastic bags. ! Today, many of the product packages used are biodegradable.$n 2019, Hesburger eliminated the use of plastic straws entirely from its Finnish operations. ! The plastic straws replaced by a drinking straw made of paperboard.$! Technological environment Lithuania is among the leaders in the development of renewable energy in the EU: together with Denmark, Estonia, Spain and Portugal, it is among the five most ambitious countries in the EU by renewable energy targets for 2030. ! By building several interconnections with the Western European electricity system, converting district heating systems to the use of biofuels, approving additional

auctions for the production of solar and wind electricity and by promoting prosumer policy, Lithuania will have the potential to exceed by 1.5 times EU’s overall clean energy production target. Lithuania is projected to have 45% of its electricity coming from renewable energy sources by 2030.! This has impacts on Hesburger that wants to respect the wills of these countries, in fact with a rapidly changing technology Hesburger wants to known as ecofriendly as much as possible. ! For that they are using renewable energies like solar panels to produce energy. From using to environmentally-friendly LED lighting to High-efficiency kitchen appliances, they are using as much technology as they can to save the World.! The key changes in the political and cultural environments. For Hesburger political and cultural environments are very important, because of its commitment about recycling and the natural environment. ! Cultural environment ! Lithuanians are fond of nature and have a strong feeling of a shared culture that begins as early as primary school, where folk music, national traditions, and holidays play an important role. ! Among those who remember life under the Soviet regime, pride in surviving a period of repression and difficulty is a focal point of the national culture.! The most recent marketing move was that she enlisted none other than American movie star and Internet phenomenon Chuck Norris to shoot a commercial for Hesburger, for that he is the symbol of strength and resistance, as are the Lithuanians and their history.! Political environment The Lithuanian government has collaborated with food manufacturers to reduce salt and sugar content in products.! Coca-Cola, Nestlé and Orkla are among the companies that have signed up to the initiative as the government aims to promote healthier lifestyles.! It seems that also Hesburger wants to join the initiative.! As part of the agreement,$the companies will make changes to their production voluntarily. ! Health minister Aurelijus Veryga hopes other companies will join the agreement.! The Lithuanian government said that people in the country consume 40% more salt, 39% more fat and 22% more sugar than is recommended by the World Health Organisation.! According to Mindaugas Snarskis, the chairman of the board of the Lithuanian Food Industry, producers are faced with the difficult task of providing the most favourable products for health, while preserving their flavour characteristics and avoiding significant changes in prices.! It also impact to the Hesburger and other fast food chain.!

How company deal to the marketing environment and its competitors and their main differences Lithuanians are the most frequent visitors to fast food restaurants in the Baltic States, with Hesburger sales in Lithuania reaching €14 million. ! According to a study, Lithuanians prefer to eat in the city, rather than stay at home and the euro introduction helped, it is a psychological aspect that encouraged customers to spend more.! In Lithuania Hesburger 's main competitors are: KFC, McDonald’s, Drama Burger, Charlie Pizza and Jummy. ! These chains are very famous and popular in Lithuania but the differences between them and Hesburger is the standardization of products (there are always the same variations of hamburgers and you can customize them), services( only fast food open 24h in Vilnius, so the only place to eat after 2.00 am) and prices( low and fixed): standardizing the functioning of the restaurant, finding its own specialization or its own unique and distinguishable identity, and applying strategies for customer acquisition, customer loyalty and increase in average customer spending, makes the success of this chain higher. ! Customers choose Hesburger because they already know the prices and quality of the products and prefer Hesburger because it has lower prices (especially the 13-20 age group).! Another aspect that pushes people to prefer Hesburger is the eco-sustainable policy that the fast food chain has been adopting for many years; people are adopting an attitude increasingly oriented towards eco-sustainability, in fact, as reported by the latest Morningstar Sustainability Atlas, European countries, especially the Nordics, are leading the ranking of the world's most sustainable stock markets. ! The finnish company is raising the stakes by investing more than €10 million in a new factory making plant proteins in Kaarina, South west Finland. ! It will start producing vegan products for Hesburger.! Salmela said “…as for now, Hesburger is doing many things from renewable energy to biodegradable packaging and circular economy to reduce its carbon footprint and to work sustainable”. ! Describe suppliers of the company and its Marketing Intermediaries as well as Public Environment

Hesburger’s supplier A large percentage of the raw materials used in Hesburger’s products are made in Finland. ! Hesburger makes some of its products at a production facility in Kaarina. Besides Hesburger has numerous kinds of food from Finnish suppliers. ! On its website, you can find detailed product descriptions and raw materials producer, production countries and meat product countries.!

Marketing intermediaries Hesburger sells its products by itself.! Therefore, there is no intermediary between, but it is possible to order its burgers and deliver it to your location by using several online applications such as Wolt in Vuilnius, and Foodora in four Finnish cities.! Government publics Hesburger held a hiring campaign by collaborating with Agency Réputé, an agency company which operates and helps business in the Baltic States. ! The campaign offered a job experience to young people who are struggling with finding a job because of having no job experience. ! As a result of this campaign, the number of job applications (who submitted CV or completed application on the homepage) in the Baltic States increased by 43%. ! In addition, the advertising campaign generated more than 9.5 million impressions and more than 30,000 clicks on the Hesburger homepage in Lithuania, Estonia and Latvia. Sponsor Vaadin TestBench is a tool for automated user interface testing of web applications on all platforms and browsers. ! Hesburger tests its user interface of its back-end system with the Vaadin TestBench and Hesburger is sure that it is the right tool for testing the user interface.! Media publics Hesburger uses SNS such as Facebook, YouTube and Instagram to advertise new products and new campaigns. ! For instance, its Facebook account has more than 250,000 followers, and Hesburger Finland’s Instagram account has 25,000 followers as of 9th of March 2020. ! It is sure that Hesburger is putting efforts into advertising on SNS since it posts more than once in every other day on Instagram. ! In addition, Hesburger has advertised on TV since numerous kinds of “TV ads of Hesburger” can be found on YouTube.!

References:! https://www.wikipedia.org/! https://en.wikipedia.org/wiki/Demographics_of_Lithuania! http://worldpopulationreview.com/countries/lithuania-population/! https://www.hesburger.com/about-hesburger/responsibility/environment/feweremissions! https://www.hesburger.com/about-hesburger/responsibility/environment/lessplastic! https://www.hesburger.com/about-hesburger/responsibility/environment/textilewaste-becomes-table-sets! https://www.hesburger.com/about-hesburger/responsibility/environment/diverserecycling! https://www.hesburger.com/about-hesburger/responsibility/environment/energyfrom-the-sun! https://lrv.lt/en/news/lithuanias-ambitions-to-combat-climate-change! https://www.delfi.com/! https://www.everyculture.com/Ja-Ma/Lithuania.html! https://www.hesburger.com/about-hesburger/responsibility/society/hesburger-is-amajor-employer! https://www.hesburger.com/about-hesburger/responsibility/society/school-inbangladesh! https://www.foodbev.com/news/lithuania-puts-sugar-tax-hold-unitingmanufacturers/?_! https://www.hesburger.com/feedback/?category[]=local-production#q1598! https://repute.lv/en/portfolio/hiring-campaign-by-hesburger-no-work-experiencefind-it-here/ ! https://vaadin.com/success-stories/tauski! https://www.facebook.com/hesburger/? eid=ARBZzhKyKKz3smlUVqYpGVddV44dXbc_7zP_Umbrt1hY3uW9Jg6HZm_gxqH J-GSoLPjukkN_OdJ8J_91 ! https://www.instagram.com/hesburgerfin/...