Marketing plan of Huhtamaki

MARKETING PLAN OF Presented by: ANTON GRÖNHOLM Supervised by: DIEGO MONFERRER TIRADO GRADO EN ADMINISTRACIÓN DE EMPRESAS AE - TRABAJO FINAL DE GRADO CURSO 2020-21 2 INDEX A. INDEX TABLES…………………………………………………………………………….6 B. INDEX FIGURES…………………………………………………………………………...7 C. INDEX GRAPHS…………………………………………………………………………...8 D. INDEX IMAGES…………………………………………………………………………….9 EXECUTIVE SUMMARY…………………………………………………………………….10 1. SITUATION ANALYSIS………………………………………………………………….12 1.1. Internal Analysis…………………………………………………………………...12 1.1.1.Presentation of the Company and its beginning……………………....12 1.1.2.The Company essence: mission, vision and values…………………..15 1.1.2.1. Mission…………………………………………………………………..16 1.1.2.2. Vision………………………………………………………………….....16 1.1.2.3. Values…………………………………………………………………....16 1.1.3.Company Resources………………………………………………………..17 1.1.3.1. Physical and Technological Resources……………………………...17 1.1.3.2. Human Resources……………………………………………………...18 1.1.3.3. Financial and Intangible Resources……………………………….....20 1.1.3.4. R&D……………………………………………………………………...22 1.1.3.5. Corporate Social Responsibility……………………………………....23 1.1.3.6. Marketing Resources……………………………………………….…24 1.1.4.Capabilities of the Company…………………………………………...…30 1.1.4.1. Organizational Capabilities and Structure………………………..…30 1.1.4.2. Distinctive Capabilities…………………………………………...……31 1.1.4.3. Value Chain…………………………………………………………..…33 1.2.External analysis………………………………………………………………...…35 1.2.1.Macro-environment analysis…………………………………………...…35 1.2.1.1. Political Factors…………………………………………………..……35 1.2.1.2. Economic Factors………………………………………………...……37 1.2.1.3. Social Factors……………………………………………………….…38 1.2.1.4. Technological Factors……………………………………………....…39 1.2.1.5. Environmental Factors………………………………………………...39 1.2.1.6. Legal Factors…………………………………………………………...41 1.2.2.Micro.environment analysis…………………………………………….…42 1.2.2.1. Threat of new entrants……………………………………………...…42 1.2.2.2. Buyer power…………………………………………………………….43 3 1.2.2.3. Supplier power………………………………………………………….43 1.2.2.4. Substitutive products………………………………………………..…44 1.2.2.5. Rivalry among existing competitors………………………………….44 1.2.3.Competition analysis…………………………………………………….…45 1.2.3.1. Competitive levels……………………………………………………...45 1.2.3.2. Main competitors…………………………………………………….....46 1.2.3.3. Comparative analysis……………………………………………...…..51 1.2.3.4. Competitor Positioning……………………….………………………..52 1.3.Market and demand analysis……………………………………………………..53 1.3.1.Sector evolution……………………………………………………………..53 1.3.2.Consumer analysis………………………………………………………….55 1.3.3.Main conclusions of the analysis……………………………………...…56 2.SITUATION DIAGNOSIS……………………………………………………………...…58 2.1.SWOT ………………………………………………………………………………...58 2.1.1.Strengths………………………………………………………………...……58 2.1.2.Weaknesses………………………………………………………………..…59 2.1.3.Opportunities…………………………………………………………...……60 2.1.4.Threats…………………………………………………………………...……61 2.2.Boston Consulting Group Matrix…………………………………………..……62 3.DEFINITION OF PRODUCT - MARKET………………………………………….……65 3.1.Segmentation…………………………………………………………………….…65 3.1.1.Segment identification……………………………………………………..65 3.1.1.1. Final consumer segmentation criteria…………………………...…..65 3.1.1.2. Organizational consumer segmentation criteria…………………....66 3.1.2.Target market selection…………………………………………………....67 3.2.Segmentation strategy…………………………………………………………....68 3.3.Positioning……………………………………………………………………….…68 4.MARKETING OBJECTIVES………………………………………………………...…70 4.1.Economic objectives…………………………………………………………...…71 4.2.Marketing objectives…………………………………………………………...…71 4.3.Relational objectives…………………………………………………………...…72 5.MARKETING STRATEGIES………………………………………………………...…74 5.1.Future growth strategy………………………………………………………..…74 5.2.Competitive strategy…………………………………………………………..…75 5.3.Competitive advantage strategy……………………………………………….76 6.MARKETING MIX DECISIONS………………………………………………………..77 4 6.1.Product decisions…………………………………………………………………..78 6.1.1.Action 1. Develop final consumer attracting product design………..78 6.1.2.Action 2. Develop next generation food delivery product solutions……………………………………………………………………....79 6.1.3.Action 3. Substitute plastic & resin products to sustainable………..79 6.1.4.Action 4. Change packaging to 100% plastic free and sustainable .………………………………………………………………………………….80 6.2.Place decisions…………………………………………………………………..…80 6.2.1.Action 5. Negotiate strong positioning in Macro and G&M………….80 6.2.2.Action 6. Strategic positioning online for the final consumer………81 6.3.Promotion decisions……………………………………………………………….81 6.3.1.Action 7. Plastic-free campaign in La Vila Vella (Brita) + other advertisements / commercials……………………………………………81 6.3.2.Action 8. Invest in the social medias, especially LinkedIn and Instagram…………………………………………………………………..…83 6.3.3.Action 9. Cooperation with food delivery firms for visibility……..…84 6.3.4.Action 10. Direct marketing and SEO……………………………………84 6.3.5.Action 11. Pledge yearly charitable donations ………………………..85 6.3.6.Action 12. Design government agencies products thematically……85 7.BUDGET…………………………………………………………………………………...87 8.TIMELINE………………………………………………………………………………….90 9.CONTROL…………………………………………………………………………………91 10.REFERENCES…………………………………………………………………………….92 11.BIBLIOGRAPHY………………………………………………………………………….95 ACADEMIC……………………………………………………………………………………95 ONLINE………………………………………………………………………………………..95 12.APPENDIX…………………………………………………………………………………99 5 A. INDEX TABLES Table 1. Marketing Mix Comparative Analysis…………………………………………51 Table 2. Summary of the SWOT analysis……………………………………………….62 Table 3. Huhtamaki’s target audience…………………………………………………...67 Table 4. Objectives……………………………………………………………………….…70 Table 5. Overview of the actions………………………………………………………….78 Table 6. Budgeting…………………………………………………………………………..87 Table 7. Timeline…………………………………………………………………………….90 Table 8. Action control……………………………………………………………………..91 6 B. INDEX FIGURES Figure 1. Employee segmentation………………………………………………………..19 Figure 2. Michael Porter’s Value Chain………………………………………………….33 Figure 3. Plastic waste per person……………………………………………………….40 Figure 4. Huhtamaki Competitive levels………………………………………………...45 Figure 5. Competitor positioning………………………………………………………...53 Figure 6. Huhtamaki BCG Matrix………………………………………………………....64 Figure 7. huhtamaki.com site visits (27.5.2021)……………………………………….73 Figure 8. Ansoff Matrix……………………………………………………………………..75 7 C. INDEX GRAPHS Graph 1. Spanish GDP Variation………………………………………………………….37 Graph 2. Unemployment in Spain………………………………………………………..38 Graph 3. Molded Fiber Market…………………………………………………………….55 8 D. INDEX IMAGES Image 1. First stone barn factory opened in 1920…………………………………………13 Image 2. Leiras Pharmaceuticals…………………………………………………………...14 Image 3. Huhtamaki, site in Nules province of Castellón…………………………………17 Image 4. Product line “Beverages”………………………………………………………25 Image 5. Bioware® Hot Drink Cup Range………………………………………………26 Image 6. Tiendavasospapel…………………………………………………………….…29 Image 7. Aerial picture of the municipality of La Vila Vella………………………….82 9 direction. So, all in all, the company essence is about uniqueness, honesty and the appeal to higher expectations. 1.1.2.1 Mission The reason for existence and the current “how” of how things are done. The mission can be updated at times to better describe the prevalent situation and surrounding of the company. Here, the latest mission of Huhtamaki: “We are for shaping the sustainable future of everyday life to offer wellbeing convenience and responsible lifestyle to billions of people everywhere. 1.1.2.2 Vision The vision means the end goal, and it will be reached by fulfilling the mission, adding the core values and having implemented a series of actions to support set strategies. The vision is simple and clear, leaving no doubt in its meaning and purpose for the observer. “To be the first choice in sustainable food packaging” 1.1.2.3 Values Care, Dare and Deliver are the core values of Huhtamaki. These values reflect well on the company. Care is for the environment and consumer and the dare and deliver relate to the embarking of new missions whilst fulfilling the expectations of a publicly listed for-profit company. The adjectives on their own might not be meaningful, hence, the company definition to each adjective: “Care - We care for each other, our customers, partners and communities. We care for the future of our planet embedding sustainability in everything we do” “Dare - We dare to innovate, grow and have an impact. We are diverse and entrepreneurial team seeking new opportunities with our customers” 16 “Deliver - We commit and deliver solutions to our customers, with integrity and as a team. We are ambitious and strive for high performance” 1.1.3 Company resources 1.1.3.1 Physical and Technological Resources Huhtamaki Oyj’s head office is located at Revotulenkatu 1 in Espoo, Finland, from where it governs the operations of all of its subsidiaries (the 62 most significant ones are listed on the Annual Report 2020) and their offices. Together Huhtamaki has 81 manufacturing units spread across 35 countries (2020) and 24 offices. The whole Group is divided into 3 businesses. These are “Fiber Foodservice EAO (Europe-Asia-Oceania)”, “North America” and “Flexible Packaging”. The Fiber Foodservice EAO holds 34 manufacturing units in 28 countries managed by their respective subsidiaries. One of these sites is located in Nules, a province of Castellón, Spain. Huhtamaki Spain S.L inaugurated in 1985, the current facilities were acquired in 1991 (Image 3). This business’ focus is QSR (stands for quick service restaurant), FMCG (stands for fast moving consumer goods), egg and fruit protective packaging and lastly other agile models. Image 3. Huhtamaki, site in Nules province of Castellón. Source: Huhtamaki Spain. The second business Huhtamaki is involved in is the North America category. Here 18 manufacturing sites are divided between the United States and Mexico. The focus of this business is retail, foodservice and consumer goods. 17 The third and last business is the Flexible Packaging with 29 manufacturing units in 16 countries. Mainly in Asia, but also in Africa, Europe and South America. The focus here is FMCG products, such as packaging for soups, ready meals and confectionery. Another product category produced is tube laminates for beauty and oral care. This short introduction of the business segments will serve to better understand the physical and technological resources and production requirements in each of these areas. Anyhow, the physical and technological resources are not specified to these areas. Nevertheless, the total assets for these segments are € million 3,116.9, with € million 6.5 in other activities and lastly unallocated assets are valued at € million 472.4 totaling the Group’s total assets at € million 3,595.8 (see Appendix 1. Consolidated statement of financial position). This sum therefore contains non-current-, current assets and other intangibles that are not to be confused with physical and technological assets. The total tangible assets (non-current) held in 2020, were € million 1,365.3 (€ million 1,398.1 in 2019), not including inventory nor financial assets. This is divided in two parts: owned property, plant and equipment € million 1,219.8 and right-of-use assets € million 145.6. The Spanish subsidiary had total assets of € million 57.3 in the financial year of 2019. Subcategorization of the total tangible assets allows for a more in depth view of asset localization (see Appendix 2. Tangible assets). Buildings and constructions had a book value of € million 247.6 and machinery and equipment a book value of € million 734.7 on December 31.2020. A huge importance for Huhtamaki is the performance of its production processes and how well this is regarding the competition. Apart from this reason, innovation and sustainability goals require Huhtamaki to have the highest grade of industrial working facilities and machinery. The year 2020 confronted everyone with new dilemmas and problems and one solution at Huhtamaki was to convert some of its facilities into face mask and visor production sites to help fight the Covid-19 caused pandemic. 1.1.3.2 Human Resources Since the first year’s 61 workers, Huhtamaki has come far, by having a 18,227 big workforce in 2020 working in numerous countries and different sites and areas of 18 business. From the very beginning, one of the most important pillars for the company has been employee wellbeing, co-creation and care. This is proven by different efforts by the company, for example the Speak up-channel exists to give workers a secure and effective way to bring forward important messages about any concern for it to be addressed accordingly. In the United States this channel is called Alertline. Programs such as this one are justified by on-going investigations and positive feedback given by the employees. The aim is to create transparency so that everyone can truly make a difference and bring their true potential to the problem solving and coexistence. This is reflected in the values, specifically the first one being Care and supported in one of the core ambitions to be reached up till 2030 is health and safety, with the aim of reducing incidents and accidents as much as possible. Fiber Foodservice EAO had a total of 6,440 employees, North America 4,185 employees and the last business category Flexible Packaging 7,468 employees at the end of the year 2020. The remaining 134 employees are assigned to other activities, such as global functions in Finland. As of Huhtamaki Spain S.L , the subsidiary counted 353 employees in 2019, a 3.52% increase to the previous year. The year 2018 saw a 20.07% increase in employees to the year 2017 going hand in hand with the growing sales. Here, the management body consists of 5 members, one being the president and 4 others. The gender of this administrative body is 100% male. One core concept understood by the company is that any single company or person can not know everything and because of that know-how and knowledge is shared across the company and its subsidiaries. The following Figure 1, shows the employee structure apart from the age division, which can be found in the Annual Report 2020. Figure 1. Employee segmentation. Source: Annual Report 2020. 19 Huhtamaki’s policies regarding personnel, human rights and social matters: • Huhtamaki Code of Conduct • OHSAS 18001 / ISO 45001 • Global Employment Guidelines • Huhtamaki Working Conditions Requirements • Group Performance Management Policy • Performance Review Guidelines • Code of Conduct for Huhtamaki Suppliers • Group Compensation and Benefits Policy • Huhtamaki Human Trafficking and Modern Slavery Statement • Global Human Rights Policy • Global Occupational Health and Safety Policy According to the Annual Report 2020, some subsidiaries manufacturing sites started producing at lower quantities or solely a narrower range of products to meet the new demand caused by the pandemic. Depending on the area, some market’s demands were focused on consumer goods and other’s on food delivery services. This adaptation led to some workers working less hours or being furloughed temporarily. Not much later, due to the quick response of Huhtamaki and the setting up of a crisis management team, the workers were called back to fulfill new functions of the production of face masks and face visors. Employees were highly content, encouraged and motivated to learn their now new responsibilities. Similar adaptations were promoted and supported across the Group’s locations. Of all the employment contracts 94.5% are regular workers, whereas 5.5% are fixed term contracts. The total personnel expenses in 2020 rose to € million 721.4 (see Appendix 3. Personnel expenses). The table presents salaries and benefits. 1.1.3.3 Financial and Intangible Resources Financial resources are the easily available resources of a company in a given year. These include cash and cash equivalents, bank deposits and financial investments. At the end of the financial year 2020, Huhtamaki held € million 293.6 in cash and bank, € million 21.9 in liquid marketable securities or cash equivalents, € million 520.5 in trade 20 and other current receivables, € million 16.3 in current tax assets, € million 7.4 in interest-bearing receivables and € million 473.4 in inventory. This totals € million 1,333.0. As explained in the section of physical and technological resources, the quantity for tangible non-current assets was € million 1,365.5 which means that in the case of Huhtamaki there are some assets non-disclosed. Firstly, € million 769.7 in intangibles, € million 61.3 in deferred income taxes and € million 66.3 in other long-term assets. This totals the non-current assets at € million 2,262.8 and total assets at € million 3,595.8. The intangibles are divided into goodwill and other intangible assets. The first valued at € million 732.4 and the latter € million 37.4 consisting of customer relations, software and other intangible rights (Appendix 1. Consolidated statement of financial position). This goodwill is further divided into North America € million 215.2, total Flexible Packaging € million 258.4, Foodservice EAO Global € million 93.4 and the remaining smaller units with goodwill € million 165.2. Net sales for the whole Group in 2020 was € million 3,301.8 which is approximately 2.9% lower to the previous year. For the income statement see Appendix 4. Consolidated statement of income. As of Huhtamaki Spain S.L, the subsidiary generated sales of € million 75.8 in 2019, meaning a 6.52% increase from the year prior. The yearly increase of sales between 2017 and 2018 was a substantial 18.14% for the subsidiary. On a side note, the subsidiary is held 100% by the parent company, Huhtamaki Oyj. The social capital for the Spanish subsidiary totaled € million 23.3 in 2019. Total stockholder’s equity was € million 1,284.1 and total liabilities € million 2,231.3 (Appendix 1. Consolidated statement of financial position). The consolidated financial statements include only those subsidiaries where Huhtamaki Oyj has 50% or more of each subsidiary’s voting rights. The weighted average number of shares outstanding was 104,350,000 (2020) and the total number of shares was 107,760,385 in 2020 (see Appendix 5. Shareholder’s equity). Of these shares the company owns 3.2% and the GET (global executive team) owns 66,351 shares in total (31.12.2020). The shareholder structure is as follows, 36% is owned by finnish institutions, companies 21 and organizations, 14% by households and the remaining 50% by foreign nominee-registered shareholders (Annual Report 2020). Basic earnings per share € 1.69 and the dividends paid in 2020 were 0.89 per share, meaning a total sum of dividends paid of € million 92.9. Net income that is related to the equity holders of the parent company, in millions of euros, € 176.8. Huhtamaki Spain S.L possesses the following certifications: ISO 9001, BRC/IOP Technical Standard, FDA/IMS (partial certificate), ISO 14001, OHSAS 18001 and Chain of Custody of Forest Products (PEFC and FSC), apart from this, it is a member of SEDEX. For more information, see Appendix 7. 1.1.3.4 R&D Huhtamaki, with its economic and sustainable ambitions and numerous business activities rely highly on the performance of research and development activities. The current global 2030 sustainability ambition (see Appendix 6. 2030 sustainability ambitions) requires together with R&D innovation and determination to reach the related goals. Depending on the subsidiary and manufacturing site, there are many processes to be improved or rather entirely changed and new functions implemented. Digitalization is favoured as it eases functions and improves customer satisfaction due to easier and more wholesome experiences and inquiries when doing business with Huhtamaki. One key ambition and more constantly spoken of is the topic of circular economy. This means using recycled materials as much as possible at least so that the amount of new materials required minimizes. Artistically, the flow of materials is circular and they will be reused in the economy anew. As such, the R&D is required to figure out how the product design, partnerships and other variables are to be structured to meet the ambition of having 100% of the products recyclable, compostable or reusable. Another less challenging area of concern is certified fiber, due to it already being almost in every site 100% certified. The R&D team is looking for innovative efforts to substitute plastics in products with other materials or come up with solutions to reduce the use and generally increase the percentage of recycled materials. Some of Huhtamaki’s products are coated with a thin 22 plastic layer which now has become a concern for the company, due to the rising topic of discussion in the EU committee of products containing even the slightest amounts of plastic. Below is presented a paradox on the topic by Huhtamaki (Annual Report 2020): “On the one hand, society wants to see fewer materials used, less packaging waste and less litter. On the other hand, it also wants safer products, less food waste and a longer shelf life. The debate should not be about more or less packaging. It should be about how we make packaging smarter and more sustainable with better end-of-life management; packaging that considers the full environmental, social and governance impacts.” The total expenses of all research and development activities in 2020 were € million 20.7, € million 1.3 lower than the previous year despite huge efforts and impromptu activities due to Covid-19 (see Appendix 4). Depreciation and impairment of R&D establishments and assets counted € million 0.4 in 2020. According to the 04/11/2020 financial data published (Cabrerizo, 2020), Huhtamaki Spain S.L has invested € million 25 in new top of the line manufacturing lines in the period of 2018-2020 and is expected to invest over € million 15 in the subsequent financial year (2021). 1.1.3.5 Corporate Social Responsibility The Annual Report 2020 claims that “as a part of strengthening its supply chain due diligence processes, Huhtamaki will start utilizing more third-party corporate responsibility audits in supplier assessments.” and that these will be chosen to be audited based on geographical location and supplier category while focusing on main suppliers. As a global company, Huhtamaki works with more than 20,000 suppliers. Currently, these audits are postponed for health reasons as a measure to help prevent the spread of the virus. Furthermore, Huhtamaki’s policies regarding personnel, human rights and social matters-list in the section of Human Resources, presents policies that have been implemented to ensure fair and just treatment of Huhtamaki’s stakeholders. These policies and codes of conduct can be viewed on the Annual Report 2020. Below a 23 citation from the “Overview of internal control” of the Annual Report 2020 stating how corporate social responsibility among other things are treated across the company: “Group policies, standards and guidelines are deployed in all business segments and business units. Policies, standards and guidelines on financial, human resources, corporate responsibility, environmental, legal and compliance as well as risk management related matters have been issued in the Group. In addition to the Group policies, there are more specific local policies in the business segments and their business units.” In Spain, the company had contributed 650,000 units of face visors to the society in 2020 (Cabrerizo, 2020). 1.1.3.6 Marketing Mix & resources This part of the company's resources will focus on Huhtamaki Spain S.L to be more coherent and specific with the rest of the analysis. Also related to this is the reason to avoid a too in depth explanation of product lines and categories not relevant for the marketing plan in question. Globally, the company spent € million 81.4 in sales and marketing. The amount is relevant because internal knowledge of consumer behavior is within the same public objective, easily transferable and thus used to some extent by other subsidiaries. Product Explaining the product as a part of the marketing mix will start with going through the product portfolio to give a wholesome picture of the Huhtamaki Spain S.L offering, not explaining other subsidiary’s product ranges. As a reminder, the business area in question is the Fiber Foodservice EAO (Image 4). The product lines are 5 (6), consisting of compostable products, beverages, food solutions, vending and lastly personalized products. The division is based on augmented elements and customer type, not directly on the product and its core elements such as all cups and plates. The product lines are the following, with the total number of products within each product line: 24 Compostable products, 61 Beverages, 73 Food Solutions, 82 Vending, 31 Personalized, in theory unlimited A sixth temporary product line Face Visors Image 4. Product line “Beverages”. Source: Huhtamaki “Cátalogo“ Foodservice Spain. Continuing with the length of the product line Compostable products, ranging from from cups and lids to plates and multifunctional boxes, 10 subcategories are found. These are the following together with respective subcategories’ depth: Bioware® Hot Drink Cup Range, 6 Range of caps and accessories for hot drinks, 5 Range of glasses and lids for cold drinks, 13 Strongholder ™ range of trays, 2 Range of multifunctional hinged containers, 5 Range of dishes/plates, 3 Range of cutlery, 5 Multifunctional packaging range, 6 Chinet® Good to Go range of plates and bowls, 7 Chinet® range of plates and bowls white, 9 25 This means that depending on the organization and competitive advantage in question both are not required. Anyhow, in the case of Huhtamaki, based on previous and subsequent analysis of the Group as a whole and its product portfolio it is clear that the company has the right organizational capabilities to maximize the value of its distinctive capabilities. The Group’s distinctive capabilities consist of global multisectorial experience of being the leader in the sector, adaptive technological innovation and R&D and a truthful and transparent company which highlights its values and ambitions meaning that according to the company it is not just a PR stunt, but an honest for-profit seeking firm’s statement. This means that Huhtamaki is wholly invested and committed to its ambitions and claims as each of these areas are indispensable for success and in the fulfillment of the company essence. Elaborating the capabilities, first about the experience and being a leader in the sector it is worth mentioning that it is not just about running its own business, but to take care of its stakeholders also government, collaborate and give back to the community as Huhtamaki did in the form of donations when the pandemic began. For the second capability, it is understood and accepted as something imperative, Huhtamaki persistently seeks to deploy newest and most effective technology to not only stay ahead of competition but get closer to a fully circular economy. The innovative 3 business segments, paperboard conversion packaging, molded fiber packaging and flexible packaging offer customers a high level of convenience, safety, availability and food waste reduction. The last capability, the truthfulness and transparency, combines partly the 2 previous ones in the sense that it understands the importance of taking care of stakeholders, in this case the environment and employees through multiple programs and tools like the Speak-up (or US Alertline) channel and the newly launched, November 2020, Huhtamaki app to keep approximately 18,000 manufacturing workers connected. Adding to this, the current 2030 ambitions are voluntarily set and costly and challenging to reach. It is therefore unlikely to believe that return is awaited immediately, but instead the ambitions are set based on company forecasts and embarking on said journey ahead of time, is seen as being the industry pioneer positioning the company robustly for the future. 32 1.1.4.3 Value Chain Professor Michael Eugene Porter’s model of Value Chain explains the “Interrelated operating activities businesses perform during the process of converting raw materials into finished products” (Figure 2). Simplistically put, the goal is adding value and reducing costs, as much as possible and so reach maximum benefits. Figure 2. Michael Porter’s Value Chain. Source: Prepared by the author based on the model of the Value Chain. ● Huhtamaki Spain S.L’s Primary Activities ○ Inbound logistics, refers to the planning of all the raw materials and external resources required at the manufacturing site. This means the paper, plastic, resin, ink and other materials such as plastic substitutes. These materials are transported by selected suppliers, the most significant are under non-pandemic times regularly audited to ensure fair and just products and to meet the sustainable production goals. The last one is what adds value to the brand and increases credibility and responsibility of the company. Responsible sourcing and due diligence is the first step of being able to make a sustainable difference. ○ Operations, the 35 countries where Huhtamaki is present with its manufacturing sites, is governed by the parent company Huhtamaki Oyj when necessary, but the individual subsidiaries are more than capable of seeing the value in working in accordance with the Group goals as it is what benefits everyone. The Spanish subsidiary is ultimately owned entirely by the parent company but the responsibility lies in the hands of 33 itself. One key reason for this structure is the better responsiveness to each market’s demands and changing law and political environments. ○ Outbound Logistics, insufficient data has been found about the intermediaries used to deliver products to warehouses and or further to customers. Each deal is most likely dealt with separately and so is the direct to consumer goods. The local transportation companies are anyways required to deliver the pallets and the products in other packaging forms to destination points. ○ Marketing & Sales, the company’s now 36 year market presence and experience has served in the acquisition of long term clients and market credibility. The now enrolling technological improvements in the customer interfaces will favor technologically and inclined economically aware companies to switch to Huhtamaki as many industry related costs and time will be saved. The marketing team plans for short and long term financially and socially value adding actions to be taken. ○ Service, the whole process of sourcing to deliver the finished goods are what makes Huhtamaki the company it is today. A global transparent and sustainable company with care for its stakeholders as a whole. At Huhtamaki it is understood that caring for nature, people and finances is jointly not only possible, but rather a lucrative business model. ● Huhtamaki Spain S.L’s Support Activities ○ Infrastructure, including management, sales, R&D, HR, legal, finance, IT and customer service departments are what forms the infrastructure of Huhtamaki. Apart from this, communication with other subsidiaries and the parent company is required for optimal performance and allocation of resources. All in all, it is each site's responsibility to appoint necessary personnel, whether manager, directors or other to oversee activities. ○ Human Resource Management, not only is the employees incentivized by company offered channels and programs to bring forward any issue or concern, but career development and medium to long term benefits 34 are used to pay back for commitment and great performance. Huhtamaki cares for its employees and expects that each of its stakeholders (suppliers or intermediaries in this case) are well treated. These policies and guidelines ensure fair treatment adds value internally and externally and so promotes the brand. ○ Technology Development, this part of the support activities is divided in two. One being the side where technological development is used in marketing activities and offering customers better service and the other is in the R&D of the actual production facilities and the technological development of the machinery. Huhtamaki seeks to outperform its possible competitors by not only focusing on cost reduction but by also paving the way for more sustainable products and materials. The company launched data analysis and digital workplace tools globally in 2018. ○ Procurement, as discussed in inbound logistics and in previous sections of the marketing plan, Huhtamaki stands strongly against unfair sourcing practices and takes measures to ensure that each supplier is aligned with the values and principles of Huhtamaki. Sustainable products and fair treatment of stakeholders do not mean anything if the procurement process is overlooked for cheaper ways to attain goods. Therefore, Huhtamaki is not interested in short term gain when it has everything to gain from staying true to its values, mission and stakeholders. 1.2 External analysis 1.2.1 Macro-environment analysis 1.2.1.1 Political Factors The food sector that Huhtamaki is in is highly regulated and the products are to meet local standards in safety and materials. Additionally, the sector of single use foodware, which contains plastic or derivatives as resin, face changing regulations, which is one reason as to why Huhtamaki’s R&D team is working on plastic/resin substitutes for the products which contain these materials. The previously mentioned paradox brings forward a point worth consideration. This point is to when debating politically regarding 35 the material plastic (synthetic materials/polymers) to execute studies on whether or not some usage of plastics actually cause less environmental damage or not. For example, the Spanish government formalized limitations and plans of collecting € million 724 annually from the production, importation and intra-community trade from single-use plastic products used in the Spanish market, based on the article of, iambiente (2020). The same article claims other countries such as The United Kingdom and Italy to implement similar taxation. The taxation subjects most specifically items as single use cups and trays and it aims to cut in half the usage of these items by the end of 2026 compared to the year 2022. The same government intends to set a holding target to move from a linear economy to a circular one by the end of the year 2030 (Espiral21, 2020). Another future requirement by the European Union is that 25% of single use plastic bottles are to be produced with recycled plastics starting from the year 2025, as stated by Lafraya (2021). The world needs a recycled plastic model because the planet can not continue like this. Every year 12.7 million tonnes of plastic ends up in the oceans, it is notable that 46% of the Great Pacific Garbage Patch’s plastic (the size of Spain, Germany and France) derives from the fishing industry consisting of nets, lines and other equipment, Hitchings-Hales (2021). As a last note, the VAT (value added tax) for Huhtamaki’s product categories are set in Spain at 21%. This amount is paid by the end user and it is withheld by the seller to later provide it to the local Spanish tax authorities (Hacienda). In case an amount higher than required is paid in VAT, the firm awaits the repayment of the correctional amount, which on average takes between 6-12 months according to serautonomo.net (2017). The reason the VAT is considered in this case political is that it is anticipated to be subject to higher taxation, meaning that the single-use products containing plastic will be required to pay a sort of a contamination tax. Single-use product categories in general are being targeted in such a manner to find alternative solutions and reduce the amount of waste. 36 1.2.1.2 Economic Factors The fight against plastic materials is not only due to political or environmental reasons. There are increasingly more economic factors and costs related to the material, these are manufacturing, use and disposal (including collection of plastic waste). The added cost will be paid by the consumer directly or indirectly, depending on if it is first assumed by companies selling and distributing the products. The quarterly GDP variation plummeted after the first quarter of 2020. First it decreased to -5.36% and subsequently reached a low point of -17.78% in the second quarter of 2020 (Graph 1). However, this changed in the third quarter of 2020 to a positive 17.05% quarterly growth and since then the variation has oscillated close to +-0% up until the first quarter of 2021. Graph 1. Spanish GDP Variation Source: INE Unemployment has greatly been affected by the still ongoing global pandemic. Based on the Statista workforce 2021 statistics (O’Neill, 2021), Spain’s service sector accounts for 75.83% (20.18% industry and 4% agriculture) of the workforce distribution. It is noteworthy that the percentage employed, furloughed and let go, changes drastically and unexpectedly in correlation to the present labour market conditions. Graph 2 portrays an increase of the unemployed in Spain. The first quarter of 2020 had 3.312 million unemployed, the third quarter was the highest with 3.722 million and the first quarter of 2021 shows signs of a reduction in unemployment, 3.653 million. This is based on contracts and many people faced highly challenging times as curfews and movement restrictions were implemented. This meant in many cases the inability to work and the family purchasing power decreased. 37 Graph 2. Unemployment in Spain. Source: Epdata, Data: INE 1.2.1.3 Social Factors The social concepts regarding the use of single use foodware will be explained by the social awareness and consumption habits. According to the Sanmartín (2020) article, which studied environmental awareness separating opinions based on the political party supported. First off, 90% of Spaniards see climate change as a serious issue. However, the January 2020 last updated article’s point about if climate change is currently a very serious issue, only 57.4% agrees. Secondly, the article presents the data, collected by “Sigma Dos”, about how people see individual consumption habits as an important factor. 62.5% state the same opinion. Also, 73.3% expect the government to listen more to scientists' forecasts and 43.8% see social movements as very important. Lastly, 69.5% see rigorous controls as very important and 65.5% think that changing the industrial processes is very important. A global and national challenge is to increase awareness and create social barriers to plastic use if other measures do not work. The current global population is 7,794 million and is continuing to grow by about 1% per year Worldometer (2021). This together with advancement of developing countries' economies cause the problem of increasing plastic consumption. So says the Forbes’ article (Vetter, 2020), developed countries consume far more plastic than developed countries. Anyhow, the developed countries have more advanced recycling programs than the developed countries. 38 Huhtamaki’s products or competitors are used by the whole Spanish population at some point of time. The products are present in restaurants, vending machines, businesses and other establishments. When in the situation of non-environmentally friendly options few would deny the service being rendered to oneself and simply choose the option. This however is a vague statement as what really matters are the quantities being consumed and not sporadic use. Social awareness and opinions are not enough, direct action and results are required. More about plastic consumption in the section of environmental factors. 1.2.1.4 Technological Factors Technological development continues providing solutions to many world problems and now is the turn for plastic alternatives and recycling among other solutions. These solutions are to function on a global scale and economically. With the help of commercial and governmental innovation and R&D the technological processes are advanced. The speed of development depends on incentives to pursue costly changes. The changes range from employee aiding improvements and cost saving to innovative not before though of production methods. Data collection and analysis, quantum computing and solutions in robotics and similar enables any kind of possible development. IT (information technology) and e-commerce n(electronic commerce) are also shaping the society's way of conducting business and the consumption of products and services. 1.2.1.5 Environmental Factors Waste, especially waste that is not necessary or can be avoided still exists. This is the case for many reasons and businesses still rely on the existence of single use foodware. There are about 80.000 different plastic resins on the market with varying specifications. Apart from that, some plastic products that are claimed to be biodegradable are not, because these “biodegradable plastics” require very specific conditions for the process to occur and not solely leaving the item in nature is enough (Eartheasy, n.a). However, reutilizable foodware has its own environmental effects as they require different raw materials and constant cleaning. According to the Huhtamaki 39 Annual Report 2020, “paper-based single-use tableware systems have over 2.5 times lower carbon footprint than traditional multi-use tableware systems”. In continuation, a brief analysis of the plastic waste by country. This Forbes article ranks the highest plastic consuming countries per capita. The list’s first place (Figure 3) goes to the United States and second to the United Kingdom. Based on the Hipertextual article by Rodriguez (2019), the world average is 50 kilograms of plastic per person per year. The European average lies at 30 kilograms. Spain comes in slightly higher with a per capita consumption of 41 kilograms, but it is pointed out that the nation has one of Europe’s highest plastic recycling rates, approximately 18 kilograms per person. Figure 3. Plastic waste per person. Source: Forbes, Data: Science Advances Eartheasy’s examples of plastic substitute materials used today: stainless steel, glass, platinum silicone, natural fiber cloth, wood, bamboo, paper, cardboard. These will naturally have possible complications for example in the functionality of being a substitute material in some solutions. Packaging substitutes: mushroom, seaweed, pressed hay and banana leaf solutions. Once again, the functionality and sanitary regulations might hinder the use of these on a greater scale. For a final point in plastic waste and its effects on the environment, it is noteworthy that plastic is forecasted to outweigh fish in the world oceans by 2050. So is the case according to Harrington (2017), Insider article (based on a report by the Ellen MacArthur Foundation). Currently global estimates count an approximate 165 million tons of plastic in the world Oceans. By the year 2050 plastic production is expected to 40 quadruple based on current rates and this will cause the amount of plastic in the Oceans to rise to 937 million tons of plastic in the Oceans by 2050 versus the 895 million tons of fish. However, the turning point is likely reached faster if fishing is not reduced and overfishing will destroy the fish populations. Based on the same article, only 14% of plastic is recycled leaving room for innovative solutions to collect the plastic from the Oceans and recycle it. 1.2.1.6 Legal Factors Huhtamaki has set a wide range of policies and a list of code of conducts that are set for company benefit, but also to ensure the adherence with regional laws, antitrust law, trade laws and competition compliance. The legal law ruling happens effectively on the European level by the European Union. The European Parliament (2019), voted with 560 votes in favor, 35 against and 28 absent, that following products are to disappear from the member countries during the year 2021: “single-use plastic cutlery (spoons, forks, knives and chopsticks) single-use plastic plates straws cotton ear buds made of plastic plastic sticks to hold balloons oxo degradable plastics and polystyrene food containers and cups” The subsequent law setting and formulation process is under way. After this, company’s manufacturing products that pertain to any of these categories will face difficulties in one way or another. The ambiguity stems from the uncertainty of, if these items will truly be forbidden or if these items require a penalty payment of some sort of plastic taxation where “the one who contaminates, pays”. As for Huhtamaki, it will be crucial to have strategic alternatives ready. New product lines, moving production of the yet to be forbidden items outside the EU legislative area and satisfy the demand abroad or have material substitutes to plastic and its prohibited derivatives. 41 revenue is ambiguous as the companies have gone through a merger and the available information is not specific to changes and other directly relevant factors impacting the company performance. However, the company states that sales are primarily down due to the negative impacts of the Covid-19 pandemic and has been forced to lower raw material costs. Impact of forerign currency is claimed to be another part of the financial result. Net loss was $ million 10 compared to the prior years’ net loss of $ million 240. The company has more than 12,000 employees employed in 7 countries. Product categories evolve around food processors, convenience stores, retail grocery and the food service sector in general. Products offered count to over 14,000 with 14 main raw materials used. The company has introduced almost 4,000 new products to the market in the time span of 5 years. Approximately, 500 of those products are related to sustainability by being recycled or produced with recycled materials. Finally, the company has matched Huhtamaki’s environmental ambitions of manufacturing 100% of its products with recycled, renewable or recyclable materials before 2030. More sustainable solutions are thus becoming more available and of higher importance. Sabert - the company offers high-quality and sustainable solutions for tableware,delivery, takeaway and catering services. The starting year was 1982, but it was not until 1998 that it was incorporated. The corporate family consists of 16 companies. Corporate office is situated in Sayreville in New Jersey, United States while the European head office is in Nivelles, Belgium. The European division began its operations in 1990. As of sales and employees, the company revenue in 2020 was $ million 315.07 and 560 employees were employed throughout the company. The 1,200 items are divided into the following product categories: natural and eco-friendly to go, KRAFT collection, hot meals delivery and takeaway, recycled PET for long-lasting freshness, catering platters, reusable high-end tableware and bakery. Some of these categories are entirely reusable and others single-use items. High quality premium solutions, tailored if necessary, sustainability and food-safety are distinguishing factors of Sabert. Sonoco - The founding year of Sonoco was 1899 in Hartsville South Carolina, United States.SInce then, Sonoco has grown to a global company with over 320 manufacturing plants in 36 countries. The workforce operating these plants are over 23.000 strong. Sonoco is a publicly traded company which reached net sales of $ million 5,240.0 in 2020. Similarly 48 to Huhtamaki, Sonoco is driven to deliver value through two channels. One being the production and sale of tableware product solutions of varying product categories and the second being returning value, in the form of financial benefit, to shareholders. Sonoco has in the latter delivered value through stock performance and dividends for 95 years or 380 consecutive quarters. The share price has continued growing during the year of 2020 and the first quarter of 2021 regardless of the pandemic caused economic disruption. The “i6 Innovation Process™”, material transformation experience and the industry-leading tableware and other food related product portfolios are what makes Sonoco a valuable company to its customers and a serious threat for the competition. Product categories are: consumer product packaging services, industrial products & services, protective packaging solutions, healthcare packaging solutions and lastly marketing research and design services. So, these categories function as separate business areas to reach higher operational effectiveness and it provides flexibility in terms of customer retention and customer demand-awareness. Genpak - The company was founded in 1969 and has its corporate headquarters in Charlotte in the state of North Carolina, United States. This industry leader has 19 facilities distributed throughout the United States and Canada employing 100 and it generated sales of € million 325.7 in 2020. Company motto is “Your food packaging company” and serve the quick service restaurants (QSR), casual restaurants and family dining with tableware solutions to each of these categories. Product categories are eco-friendliness, home delivery or takeaway, recyclable solutions and other hot and cold products. The company prides itself with its over 50 years of experience and innovation and growth together with the evolving restaurant industry. Sustainability and special customer needs are of high interest at Genpak pinpointing biodegradability and recycling as areas requiring more R&D and innovation. First Atlantic Capital, Ltd is the parent company having 10 subsidiaries under its name and 37 corporate family connections. The Spanish most significant competitors are García de Pou S.A, Medio Ambiente Pack S.A and Pérez Linares Plastic Solutions. These companies are chosen based off of their sectorial, CNAE 1729 - “Fabricación de envases de un solo uso en papel y cartón”, ranking and size. In this ranking, Huhtamaki is ranked number 1. Garcia de Pou S.A - is the second biggest national producer, after Huhtamaki, of single-use tableware solutions for the hospitality 49 and catering industry. It has more than 6,000 products in its portfolio serving many different customers and offering solutions for different events and situations. The year 2019 yielded sales of € million 71.45 (12.04% yearly increase) with a profit of € million 7.39. The company has its headquarters in Madrid and has grown its sales with double digits the last years as its number of employees. Employees in 2019 were 295, which meant an increase of 22.03%. The company’s social capital was € million 0.135 and total assets € million 82.9. Main categories of products offered by the company are: restaurant business, hospitality, bars, fast food, coffee shops, pastry and ice cream shops, bakeries and catering. The product solutions are based on the concept of eco-friendliness. Medio Ambiente Pack S.A - is located in Xativa, the Valencian community. It employs 16 workers in the wood sector producing cardboard sheets, baskets, trays and plates. The company also has a line of industrial products that are not relevant for this analysis. In 2019 the company reached sales slightly exceeding € million 3.1, but the financial year resulted in a financial loss of € 22.686. Medio Ambiente Pack S.A works mainly with wood and derivatives like cardboard. This means that plastic is not the main material and thus has the potential to be unaffected by the coming single-use foodware regulations in case the products are not treated or laminated with plastics / resins. The parent company is Transpack Group which offers an even wider range of sustainable solutions in renovations and other projects. Pérez Linares Plastic Solutions - This national competitor differs from the rest in the sense that its focus is plastic containers for mainly other ends than food containment and preservation of food or beverages. However, it is considered as a major competitor as its revenue is € million 2.73 in 2017 (13.6% yearly increase) and that it commercializes products that compete with Huhtamaki’s other business areas, but not the subsidiary’s specific product portfolio in Spain. Furthermore, due to its facilities, it could easily start changing its offering and so, with little capital investment, switch its focus and compete directly with Huhtamaki. This company with its head office in Castalia, in the province of Alicante, employs 16 and supposedly exports around 10% of its production. 50 1.2.3.3 Comparative analysis The comparative analysis will consider only national companies and not the Group’s global competitors. A reminder, there is no direct national or international, sector specific competitor to Huhtamaki that competes in Spain. Thus, the comparison will consist of 4 competitors: Garcia de Pou S.A, Medio Ambiente Pack S.A, Pérez Linares Plastic Solutions and more experimentally the remaining smaller, but direct sector rivals. However, the last mentioned sector rivals independently pose no threat nor are they a direct competitor to Huhtamaki, but added together, they serve a considerable share of the market. Table 1. Marketing Mix Comparative Analysis. Competitor Product Price Place Promotion Garcia de Pou Cups, caps, straws, boxes, serving plates, cutlery Paper cups: € 0.075-0.187 / unit. Similar to Huhtamaki Online, catering and hospitality supply store Trade Shows, catalogues, social media, direct marketing Medio Ambiente Pack Serving plates, boxes Unavailable - supposedly wholesale market average Online Direct marketing Pérez Linares Industrial plastic containers & bottles, cans, special containers Irrelevant as not a direct product substitute/ alternative Online, own store Direct marketing Direct rivals jointly Cups, caps, straws, boxes, serving plates, cutlery, etc Small economies of scale: low margins or high prices / market average Online, smaller shops, events, retail Social media, direct marketing, events Source: Prepared by the author based on previous analysis. Table1, represents a summarized comparative analysis. Additionally, the current national competitors or sector rivals do not possess any competitive advantages over Huhtamaki apart from the possibility of small manufacturers of single-use tableware product solutions for specific customer segments. Garcia de Pou, Medio Ambiente Pack and other smaller sector rivals have products that are categorized as recycled or biodegradable. Pricing is a difficult variable to represent as it depends on the purchasing power of customers, quantity and because there are too many products to consider. Thus the only true comparison is with Garcia de Pou’s cup example shown in 51 the table. Ultimately, the competitors or sector rivals distribution channels are more limited to geographical areas close to their respective manufacturing sites. 1.2.3.4 Competitor Positioning In the analysis of the competitors it is clear that the specific sector and the available information yields little to no options to position Huhtamaki with its Spanish competitors. The only noteworthy competitor, if not joining smaller brands together as one, is Garcia de Pou as it is of similar size, similar product offering and has a strong brand image. Of the other companies analyzed, Medio Ambiente Pack offers partly similar products, but company sales are insignificant in comparison when considering the whole company. This is especially the case when looking from the perspective of the consumers who seek a wide range of products for their all needs. Therefore, Medio Ambiente Pack is not considered as a complete competitor to Huhtamaki, as mentioned only a small share of their product offering is a direct substitute. Anyway, for the sake of positioning competitors the following presentation will be made. The two variables considered will be company sales and brand image from the perspective of organizational consumers. Price is a too hard to compare factor as are too many product alternatives and because of the difficulty of acquiring comparable prices that are not discounted as a result of deals or contracts. Another, often used variable is quality which in this sector, when considering direct competition, is ambiguous as the main raw materials are either plastic and derivatives or paper and fibers of which a final product is made. The ambiguity stems therefore from a, from the consumer perspective, a very similar product. However, from the manufacturers perspective there is much difference as some have more advanced manufacturing processes. Ultimately, the variables of company size and brand image for the organizational consumer will be considered, see Figure 5. 52 Figure 5. Competitor positioning. Strong Brand image Weak 0Company sales € million 100 Source: Prepared by the author based on previous analysis. As can be observed from the previous table, the four companies displayed into two groups. One with weaker brand image and lower sales and the other with stronger brand image and high sales on the national level, specific to the sector. This untraditional competitor positioning gives a relatively realistic view of how the average organizational consumer perceives each manufacturer. As competitors normally tend to have differences, so do these analysed ones. Huhtamaki stands apart in this market, with its identified competitive advantage global over a century of experience and being the global market leader. Thus, translating its meaning and tailoring it to the Spanish market means that the subsidiary enjoys the know-how, brand image and the sector’s highest quality production facilities producing the sector's most famous high quality product offering. As a bonus, the company’s values and sustainable 2030 ambitions are a major differentiating factor nationally. 1.3 Market and demand analysis 1.3.1 Sector evolution The sector of single-use tableware and hospitality food solutions is facing direct challenges as plastic and its derivatives are becoming increasingly more targeted by environmental and political campaigns on a governmental level. Nevertheless, the sector is not limited to plastic materials, but single-use products in general are required to be more environmentally friendly and advance their recycling options. First, about the sector in general. 55% of the global population lives in cities and while these are not all in developed countries the current trend is that the more developed the countries 53 become the higher the consumption of single-use tableware rises. Now, 6 billion people live in countries where the demand is expected to grow significantly and these markets are targeted by Huhtamaki and its competitors. The reason this information is relevant for this marketing plan is that in case the European Union legislative framework comes into force and directly hinders Huhtamaki’s business area from operating normally in Spain, it has the option of refraining from the use of plastic or simply change its target market to the developing and advancing African continent, which geographical location potentially proposes strategic advantages. Based on the Statista tableware market publication by van Gelder (2020), the size of the global disposable tableware market has grown from $ million 27,370 in 2016 to $ million 29,700 in 2020. This will be compared to the projected global market size of the same sector’s subcategory of plastic solutions, the size is projected to $ million 9,323.2 by 2027 (Market Research future, 2020). The market has continued growing together with the foodservice sector and the generalizing service of food delivery and takeaway services. Fortunately, for the environment, the consumer preferences are switching towards biodegradable and sustainable friendly packaging solutions. Due to Huhtamaki having a divested product portfolio in raw materials and product solutions it is challenging to obtain clear and specific information about the sector globally that would consider the market entirely. Thus, sector analysis is presented in its current format and style. In continuation the molded fiber packaging market will be explained. The market is forecasted to grow from $ million 8,470.0 in 2020 to $ million 12,358.3 in 2028, see Graph 3, for detailed growth pattern and geographical distribution of market share. All the studied geographical regions are expected to grow in proportion to each other similarly. Growing consumption habits of eco-friendly products and biodegradable product solutions are identified as key drivers of growth together with preferences in e-commerce buying and delivery services. This material experiences price fluctuations which slows down potential growth. The study covers Huhtamaki and Spain. In the specific sector in Spain of CNAE 1729: “Fabricación de otros artículos de papel y cartón”, the ranking puts Huhtamaki Spain S.L in first place and Garcia de Pou S.A in second as mentioned previously. The sector as per its definition sums 150 results (elEconomista.es, n.a). 54 Graph 3. Molded Fiber Market. Source: Data: Data Bridge Market Research. 1.3.2 Consumer analysis Due to the fact that Huhtamaki’s many customers are significant global companies, their respective sales of the Group account for approximately 30% of net sales. The customer companies size and operational characteristics makes Huhtamaki the choice of supplier in the Spanish market for various of the same global brands. This means that many of the global customers do have a contract with Huhtamaki in Spain and the Canary Islands. Indifferent to if the consumer is an organizational one or a final consumer, the trend and legal requirements forecasted to affect the market and the changed consumption habits or the social awareness has made a clear statement as of lately. More sustainable solutions and alternatives are to be produced to meet growing demand. Therefore, the consumer can be observed as more concerned over nature and show a change of purchasing habits. This for marketing purposes is invaluable as it allows companies to act on this changed demand and serve the market with the updated long-term product offerings which do not interfere with the upcoming legislative statutes. The consumer, no matter the type, increasingly states publicly about more ecological and sustainable actions and purchases. As for Huhtamaki, the company is placed in an advantageous position with respect to its competitors and when it comes to the readiness to serve this new demand and transitioning product offering as an entirety to 100 % recyclable or biodegradable. 55 1.3.3 Main conclusions of the analysis This marks the end of the internal and external analysis. Therefore, a short conclusion is in place before proceeding with the situation diagnosis. The exhaustive internal analysis of both Huhtamaki Group and the Spanish subsidiary showcase the Group’s intangible assets: brand recognition, loyalty, know-how and experience. It is important to note that these transferable assets play a major role in each independent subsidiary’s activity. Anyhow, for strategic purposes, the reason for having one or more subsidiaries in each market is the most effective approach in serving each market’s demand time-efficiently and precisely in operational and legislative terms. So, the subsidiary’s resources and structure allows it to stay ahead of the competition and remain the market leader. Based on the performed external analysis this will be the case in the future with one single threat on the horizon. Post short-term, it does not suffice anymore to offer the market the best single-use tableware product solutions on the market, whether sustainable or recycled, due to the prevalent and yet to be fully imposed European Union regulatory framework regarding plastics and single-use items. The aforementioned, proposes a certain level of threat and risk for the sector, but keeping in mind the innovative capabilities at Huhtamaki and the growing and evolving market demand, it is clear that this threat comes with an opportunity. This opportunity is to come as a leader to serve the new segmented demand or to come as a follower with a superior product offering to seize customers from the first arrivals and so gain a majority market share. All in all, the environment needs direct action, which in Huhtamaki’s case is aligned with the company values and already set Group ambitions. This comes to show a valuable role in the elaboration of strategies and actions later on. The existing marketing mix is strongly positioning the company, yet, some improvements could be made specifically in the promotion aspect directing it to the final consumer and so raising awareness of the existing product portfolio and new changes in the sector. Changes on the other hand, must be made to fit the company goals when new regulations are in force. Pricing and distribution are seen as factors with little to no need of change. Huhtamaki is able to control only the internal factors and be subjected to the external ones as they come to reformat sectorial processes. Focus is to be directed on 56 assuming all the stakeholders interests and form that develop a strategic long-term plan. Group stakeholders are: Customers & Consumers & Suppliers Employees and contingent workers Shareholders & Investors Industry associations & Trade unions Public authorities Non-Governmental Organizations Communities near our manufacturing units Media The competition as of now does not pose any direct and serious threat, but as the whole sector faces a turning point of having to somehow eliminate the use of plastic, or pay a possible plastic-tax, it is likely that considerable competitor product innovation will occur. Therefore, Huhtamaki’s areas of special attention will be the same, keeping the values in place and focusing on next generation plastic-free single-use tableware product solutions for the customer base. The accuracy and objectivity of this analysis is limited to the available resources of the specific sector and the subsidiary’s unaccounted internal reports. Thus, certain focus on Group’s resources and policies were elaborated with the aim to give proportional ideas of resources and practices. Ambiguity is assumed and Group statements are presented with explanatory commentary as to why it is relevant for this marketing plan. 57 Namely the growth phase. For the visual representation see Figure 6, the cup represents the plastic products and the “bioware-100%-compostable” logo represents the non-plastic product categories. Figure 6. Huhtamaki BCG Matrix. Relative Market Share high 0.5 low high Market 10% Growth low Source: Prepared by the author based BCG Model. 64 3. DEFINITION OF PRODUCT - MARKET 3.1 Segmentation The segmentation is divided into two target groups. One is the hospitality, service and organizational consumers. This is the main segment in the Spanish market as the channels in this market are focused on solutions for companies, whether restaurants of any sort or other businesses. The other segment is final consumers, who can purchase Huhtamaki products through the online page or some other store that retails or wholesales Huhtamaki’s products like for example Gros Merkat, but the products are for personal use. However, lacking specific data, it is assumed that the sales to the final consumer with respect to the organizational consumer segment is minor for Huhtamaki and thus not thoroughly exploited as a target market. The segmentation process is to provide clear and beneficial consumer characteristics based on the previous analysis. This crucial phase will define the target audience that will be used and referred to in continuation of this marketing plan with the aim to amalgamate the market demand with the marketing mix. A widely used segmentation method is that of Kotler & Keller, 2016, and it consists of the use of 4 criteria to define specific segments of the target audience. These are psychographic, behavioural, demographic and geographic. At times, firms can combine the two last criterias to create a more geographically accurate segmentation when the firm’s needs require this. However, there are many methods to segment a market, but in general, the segments should be accessible, substantial, measurable, differentiable and actionable. If these criteria are not met, then there is a decreased effect of any marketing action or campaign due to the absence of coherent information when in the making of a marketing plan. The market considered in the segmentation process is Spain and the territory of the Canary Islands where Huhtamaki operates. This means that the subsidiary’s foreign consumer segments are excluded. Table 3 summarizes the segmentation. 3.1.1 Segment identification 3.1.1.1 Final consumer segmentation criteria As of the fact that a minor portion of the subsidiary sales in Spain derive from the purchase, directly or indirectly, of Huhtamaki’s products, the final consumer segment 65 will be elaborated with a limited scope. This describes firstly the existing, exploited consumers. Followed by the soon to be targeted potential audience. Starting with the geographical aspects which in this case will cover the entirety of Spain, always when in close proximity to any of the wholesalers or when affordable delivery options function in range of distribution and delivery points. Furthermore, similar alternative product solutions should not be more readily available distance-wise. As to the behavioral aspects, those final consumers are identified who seek an easy, high-quality, single use and possibly biodegradable options for private events, activities or day-to-day use. Now, the two remaining characteristics will be joined together. In the psychographic there is not much more to mention than the readiness and social acceptance of buying single-use products. The demographic side is basically the entire population with any income or age due to the product being a basic commodity and used generally by everyone at some point of their lives. No further identification is necessary. Anyhow, the yet properly marketed and exploited final consumer category is those who await sustainable product solutions to smaller private events and activities. Here the product should appeal to the consumer segmentation criteria of psychographics where a clear ecological statement, possibly with personalized characteristics are added, is required and the end use is sporadic or more continuous. Product personalization exists, but with limited options and is directed towards larger clients and orders. Nevertheless, the product is to offer higher convenience and ease over other existing alternatives. Due to the product type, costs and easy understanding of the use, there is no need to identify more precisely any demographic characteristics. 3.1.1.2 Organizational consumer segmentation criteria The organizational consumer represents the majority of sales of Huhtamaki and consists of companies from a variety of sectors, yet most notoriously those of the restaurant and hospitality industries. No exhaustive analysis is regarded as necessary when it concerns specific sectors, company sizes, or served markets. The company that does business with Huhtamaki seeks the product solution for either internal needs or external. Internal means to for example offer employees the service of having single-use tableware at hand and the 66 external means that it forms a part of the using company’s business. This is the case for the quick service food restaurants as it is an essential part of the business and other restaurants or the hospitality sector which provides its customers with food or beverages and the to-go solution is single-use items. Demand for takeaway product solutions is growing and more restaurants seek more differentiated products and personalization plays an important role. So, the main organizational consumer segment is companies seeking the best high-quality products with an increasing share of sustainable and recyclable products. Personalization is crucial in some sectors and firms and this is exactly the need Huhtamaki looks to satisfy. Other segments are smaller companies that look for the same product characteristics but focus on the core benefits over so much the brand or the product portfolio’s more expensive sustainable products. 3.1.2 Target market selection Table 3. Huhtamaki’s target audience. Huhtamaki product portfolio Final Consumer Product focus Who % of sales Characteristics Core Benefits Sustainabilit Covered users Minor Private persons seeking single-use products for events / activities Yes Unexploited Unexisting, action awaited Statement looking individuals of sustainable and personalized solutions: opportunities Yes Organizational Consumer Product focus Main big firms Majority Global chains, restaurant and cafeteria chains, hotels Yes Smaller Major Smaller businesses in the service sector and industry for internal and external use Yes Source: Prepared by the author based on previous analysis. 67 3.2 Segmentation strategy The strategy used is a mix of full market coverage and multiple segments. The product offering is simple and so could in theory serve the entire market and satisfy its core needs. However, Huhtamaki seeks to identify those segments that require and will continue to require more product specialization in terms of sustainability, recyclability and personalization to fit the company’s purpose and business activities. As mentioned before, the product's nature is simple and is utilized by most people if not everyone at some point in their lives, more occasionally or not. This means that there is no option to focus on single segments or individual segmentation, apart from those looking for sustainable solutions. Most importantly, Huhtamaki as a firm is in the transformation process of converting its use of non-biodegradable resources into recycling of those resources and other similar more sustainable production methods. Thus, in the short term already, Huhtamaki can consider segments more homogeneously as Huhtamaki’s product offering converts to more sustainable. Nevertheless, there will be the main distinction of two segments, one seeking solely sustainable solutions due to it coinciding with company values and the other seeking functioning solutions which in case they are sustainable will be considered a plus. 3.3 Positioning The next phase is to establish the company positioning by the perception of its consumers. How consumers, whether final or organizational, perceive Huhtamaki depends on various factors of which some are brand, pricing in relation to quality, product characteristics and other commercial activities by the company. However, the aforementioned factors are actionable by the company, but the perception varies based on the consumer’s own sector, mission and objectives. This is important when planning the strategy and approaching each consumer segment to fully understand why the Huhtamaki brand would be perceived in a certain way. Instead of the variables price and quality, the two factors used are sales on the horizontal axis and brand image on the vertical axis. See figure 5, competitor positioning. 68 This positioning accurately describes the initial perception consumers obtain when visualizing Huhtamaki. In the sector, the only direct and big competitor is Garcia de Pou which operates solely on a national level. As such, the more plausible perception consumers have of Huhtamaki is the image of the global market leader as truly invested in the wellbeing of each stakeholder segment and the environment. The values and charitable activities highlight Huhtamaki as a wholesome, caring and an experienced manufacturer of consumer goods. The final note would be to improve the perception of Huhtamaki to a brand which is 100 % sustainable and environmentally friendly, making its best in the choice of raw materials and control of the recycling process. 69 4. MARKETING OBJECTIVES Marketing objectives are current objectives of a company that are specified in duration, practical meaning, characteristics and should be formulated so that they are measurable or quantifiable. The duration varies from 1 to 3 years and the objectives must be realistic and relevant to the company for it to strive for each objective with the highest priority. Any company that is about to set goals should have thoroughly analyzed the external and internal situation of the company to choose the most strategic objectives, as is the case after the previous analysis and diagnosis. These objectives are to get the company closer to the previously stated company vision. In continuation, the economic, commercial and relational objectives will be presented in Table 4, after which each will be thoroughly explained. These objectives as a whole seek to further consolidate and strengthen Huhtamaki Spain S.L’s market position and to formulate a series of actions and a mentality to best prepare for the future market opportunities and threats. The time span of these objectives vary, but will start from the beginning of the third quarter of the financial year of 2021 until the end of the financial year of 2023 (December). Table 4. Objectives. Objective (O) Indicator Duration Economic objectives (E) O1E Increase sales +33% to € million 100 2.5 years O2E Increase profit margin 2.5% from 5.5% to 8% 1.5 years Commercial objectives (C) O3C Increase market share 4.7-6.4% reach 20-25% of total market 2 years Relational objectives (R) O4R Improve satisfaction and brand image webpage traffic interaction NPS social capital -1 year -1 year -1.5 years -2 years O5R Government cooperation acquired contracts 1.5 years Source: Prepared by the author based on previous analysis. 70 4.1 Economic objectives The first established objective, O1E, is about increasing the subsidiary sales from approximately € million 75 in 2019 (assuming similar sales in 2020) to surpass € million 100 by the end of 2023. Thus, fixing a duration of 2.5 years. The unpublished year 2020 sales and the direct economic impact due to the pandemic on the subsidiary is unknown, but the situation is expected to normalize and business to continue unchanged 2022 and onwards. The threshold of a 3-figure sales turnover (in millions of €) is more than just a psychological statement. It sends a clear message and proposes a challenging yet realistic goal for the subsidiary and its competition. The result will allow Huhtamaki to further itself from the competition and to be considered nationally and internationally a more significant company. The second economic objective, the O2E, is related to the improvement of the financial return and management of resources and other financial methodologies to yield higher net profit returns. The net profit is assumed to be the same as the Group’s (due to unavailable information, regardless it will most likely be similar) at 5.5% of total turnover and the objective is to increase this percentage to 8%, or anyhow, 2.5% until the end of 2022 resulting in a duration of 1.5 years. Reasons behind these two economic objectives are to economically become the most significant player in the market with a clear advantage in size in economic terms over the competition. This is to strengthen the market position and to increase company attractiveness especially to the Group shareholders as Spain is a considerable market and its yield affects financial returns for investors. 4.2 Commercial objectives As for the commercial objectives, only one is set, namely the O3C. Based on previous market research and analysis, the specific total sector sales range between € million 370-550 (estimation), meaning that Huhtamaki has a market share between 13.6% - 20.3%. Few companies have a significant sales volume, but as stated before, only Garcia de Pou is a direct sector competitor with similar sales volume. As such, the optimal market share in the short-term goal setting would be to reach a market share between 20 and 25 %. This would mean to increase the current estimated market share between 4.7% - 6.4%.The duration is proposed for a period of 2 years. 71 Huhtamaki with this additional market share would have very favourable future market conditions and have more opportunities in the future to deploy a wider range of growth strategies of any sort. 4.3 Relational objectives As the economic and commercial objectives focus more on straightforward variables such as growth of sales and the market share, the relational objectives are established with the aim to highlight and enhance customer satisfaction and brand image nationally. This will consist of a package of 4 indicators, the first relational objective O4R, with a varying duration of 1-2 years starting from the beginning of the third quarter of 2021 and a governmental objective O5R that seeks to cooperate with government agencies and strengthen political ties with regional city halls and councils. O4R indicators: 1. Increase the webpage traffic by 150%, based on the proportional webpage visits of the Group, see Figure 7. Based on this and the sales revenue, the following, estimated, subsidiary website hits are proposed of 1,165 in the last month. This is undeniably vague, but serves as a comparable quantity and when reached would make the company approximately 3000 monthly visitors from various customer segments. Duration is fixed at 1 year. 2. Customer and stakeholder interaction in LinkedIn and other social media platforms and forums to increase. The channel LinkedIn receives the attention here as it is the only serious platform to interact with the stakeholders “informally”. Thus, an increase of 75% of customer interactions is proposed for the platform. Duration is 1 year. 3. Reach a NPS (Net Promoter Score) of 8.5 or greater. The scale is from 1-10. A series of perception related questions are presented and the sum determines, excluding biases and typhical questionnaire errors, the perception and overview stakeholders have of the company. With the environmental ambitions and changes to more sustainable and recyclable product solutions improved company perception is awaited. Duration is 1.5 years. 4. Increase company social capital to € million 30, an increase of 28 % of the respective 2019 value. Duration of this is 2 years. 72 Figure 7. huhtamaki.com site visits (27.5.2021). Source: Similarweb. The last set objective, O5R, plays an important role in the time of the pandemic and the upcoming anti-plastic law setting. Therefore, strategically, Huhtamaki with its Global image and its sustainable ambitions will contribute to the society in Spain by working together with government agencies. This can yield favourable results in terms of contracts and other barriers to competitors to follow Huhtamaki subsequently. Duration is set for 1.5 years. 73 some plastic substitutes are claimed to be biodegradable, but as mentioned previously, this is not always the case and might require very special conditions to function if at all. Thus, with the European Union plastic bans and other campaigns it is strategically important to transform the majority of the product portfolio to contain little or no plastics or similars. This gives a chance for increasingly sustainable friendly companies to rely on Huhtamaki in the future to supply them with sustainable product solutions. It will be paramount to develop the highest quality products with low costs, therefore to guarantee best results, the Group R&D team will be accompanied in the process. Related strategies are product development and market penetration. Associated objectives for this action (A3P) are O2E, O4R and O5R. 6.1.4 Action 4. Change packaging to 100% plastic free and sustainable The products that contain plastic are often at the center of discussion and debate while little light is given to another important aspect. This is the packaging of products that no matter the sector whether food or furniture is most of the time packaged in plastic. Now, independent of this, Huhtamaki has its own ambitions which are to be a pioneer in its sector and do the best for the stakeholders and the planet. Thus, while the transforming of the product portfolio is a longer process, changing the packaging has less dependent conditions and entails a more direct improvement in customer satisfaction and perception. Being 100% plastic free in packaging has its challenges which are to keep the products in sanitary conditions and ensure proper hygiene. Related strategy is product development and the associated objectives to this action (A4P) are O4R and O5R. 6.2 Place decisions 6.2.1 Action 5. Negotiate strong positioning in Macro and G&M As previously researched, Huhtamaki has some presence in G&M and also potentially in Makro. Due to this uncertainty, it is this action's purpose to strategically pick those wholesale outlets that favor Huhtamaki’s future growth strategy. This selection process of the chosen locations will require inside information of the sector which delimits the most strategic selling points and locations. This is an important action as it gives organizational consumers a first contact, if new to Huhtamaki, which serves in favor of 80 the Huhtamaki brand. This way, the consumer has the ability to test the products before purchasing in higher quantities or order personalized items. Apart from this, it creates a sense of competition as it will be present with competitor products. Important to note, Huhtamaki’s majority of sales is through its own online channel and by increasing the physical presence in the wholesale stores it is possible that the margin for the store-sold items reduces. Market position and suppliers will be used as an argumentative indicator of why Huhtamaki ought to have strong in store presence. Related strategy is market penetration and associated objectives for this action (A5D) are O1E and O3C. 6.2.2 Action 6. Strategic positioning online for the final consumer The second place / distribution related action is that of positioning Huhtamaki strategically online for the final consumer segment. However, this action is dependent on the other promotional actions. As of making this marketing plan, Huhtamaki Spain S.L’s website is directed towards the organizational customer with attractive design and specific information. This will through this action be mimicked to serve the final consumer segment with a separation at the homepage with the option: Company or Private entity. Other final consumer related options as adapted shipping, information about the products and sustainability are to be available attractively for the final consumer. Related strategy is market development as the new final consumer segment is targeted without developing the product nor market penetration. The associated objectives to this action (A6D) are O2E, O1E and O3C. 6.3 Promotion decisions 6.3.1 Action 7. Plastic-free campaign in La Vila Vella (Brita) + other advertisements / commercials The first of the promotional actions is action 7. The idea behind this action is that of the recent (March 2021) marketing campaign of the company Brita water filtration systems. Brita Spain, together with the famous actor Dani Rovira set out on a mission to eliminate all single-use plastic bottles from the town of Valldemossa and to replace these bottles with Brita products. This way, they achieved a plastic bottle free 81 marketing campaign that speaks loudly for sustainable and direct action on a larger scale. The key message is the realization that true change awaits after smaller sacrifices in learned habits. A rhetorical question asked by Dani Rovira: “Si hemos conseguido reducir el consumo de plástico en un pueblo, ¿por qué no podemos reducirlo en toda España?” This translates to: “If we have been able to reduce the amount of plastic in a town, why can we not reduce it in Spain as a whole?”. Therefore, as a similar problem is intended to solve and based on the previous research, market positioning and desired company outside perception, Huhtamaki will elaborate a similar publicity campaign in the municipality of La Vila Vella with population 3,226 (2018). This town is chosen due to it neighboring the company’s Nules manufacturing site and the reduced population, Image 7. Image 7. Aerial picture of the municipality of La Vila Vella Source: Lavilavella.com The end objective is to have replaced each single-use plastic item in all of the shops, restaurants, cafeterias and other outlets with Huhtamaki’s recyclable (plastic and resin free) or biodegradable products. Even though the municipality has a small population it will undoubtedly take time and effort to convince each in one way or another distributor of changing its product offering to Huhtamaki. The company will be prepared to aid some businesses financially in case additional expenses were to be incurred. The mayor, Carmen Navarro, will be approached with the intentions of this campaign to 82 agree upon legalities, compensation methods to the municipality and other signs of gratitude on behalf of nature. The last mentioned refers to extra actions such as the plantation of a smaller forest area, the restoration and opening of a smaller park area to be enjoyed by the inhabitants or other similar activities. This action will be completed first after each of the previously mentioned steps are met and the municipality is left with a sensation of change measured by changed purchasing options and subsequent polls. The campaign will be filmatized and published to the community to spread the message. This action will be the first of its kind for Huhtamaki Spain and it will be followed by other related advertisements and commercials. Related strategies are primarily market development towards the final consumer segment, but also market penetration as this campaign will promote the local businesses to be supplied by Huhtamaki. Additionally, other organizational consumers outside the municipality will be inclined to do business with such an exemplary company seeking to support the surrounding community and nature. Associated objectives to this action (A8Pr) are O4R, O1E and O3C. 6.3.2 Action 8. Invest in the social medias, especially LinkedIn and Instagram Here, a dedicated team of social media experts is put together, consisting of both internal and external members for best insight and expertise. This team’s purpose is creating an online presence, actively uploading and interacting with the community. Platforms such as LinkedIn and Instagram are preferred as LinkedIn has a serious note to itself with an environment in which innovative ideas and thoughts are shared. News and important announcements can also be shared with ease. Instagram will serve as a supportive platform for more direct communication of new products, processes and other updates in the sector of single-use tableware and hospitality. The select team is to survey and understand the market’s interests and topics of concern and turn this information into effective posts and updates targeting the said topics. The ultimate goal regarding social media platforms is to have created an 83 ongoing conversation with the community, basically to be co-creating ideas and of sharing values. Related strategies are market penetration and market development as this will be directed to both existing and new customer segments. Associated objectives of this action (A10Pr) are O4R and O1E. 6.3.3 Action 9. Cooperation with food delivery firms for visibility In the rise of food delivery services, especially in the times of a pandemic which still promotes the development of this service type, there is great opportunity to co-create and sponsor some of these food delivery services. Additionally, related is the acquisition of franchises as customers for food delivery and to be present in future food and sport events, both materially and as a sponsor. The focus will be on the collaboration with the food delivery service providers. Action A2P is regarding the development of next generation food delivery product solutions and because of that, these two actions go together adding the company more leverage in negotiations. The deals sought are to reach many contact points in the market and have a visible channel that promotes the brand creating a sense of connection in the minds of the consumers, linking food delivery with the Huhtamaki brand name. Related strategies are market development and market penetration. Associated objectives to this action (A9Pr) are O4R and O3R. 6.3.4 Action 10. Direct marketing and SEO Regarding this action, its intention is to optimize online marketing and reach the right audience. The target audience is both the final consumer and the organizational consumer. By performing direct marketing and SEO (search engine optimization) Huhtamaki is able to strengthen its brand, drive in more traffic to the website and to serve the market to its fullest potential by reaching those who seek the best single-use tableware product solutions. This will also serve as a means to gather information about market trends and consumer behavior. 84 Related strategies are market development and market penetration. Associated objectives of this action (A10Pr) are O4R and O3C. 6.3.5 Action 11. Pledge yearly charitable donations Unrelated to the publicity campaigns’ charitable actions, this will be a yearly charitable donation to the community. This pledge of doing good will, apart from doing a charitable deed, improve the society’s perception of the company and the sector, having the market leader showing example to other companies and entities of our shared responsibilities to take care of the environment. The yearly donation will be each year assessed separately and the quantity paid based on a minimum quantity of € 20,000 or a percentage of the yearly net profits. Related strategy is market development and market penetration as existing companies are interested to have suppliers that align their values with their own. Furthermore, the final consumer segment and government agencies are interested in a company giving back to the community. Associated objectives to this action (A11Pr) are primarily O4R and 05R. 6.3.6 Action 12. Design government agencies products thematically The last selected action to reach the set objectives is the consolidation of the Huhtamaki brand within government agencies and town halls. This will be done through the previously mentioned actions of improving the product, developing it to be more sustainable and of giving back to the community in form of better product offering and donations. The action is therefore to design some entities and regions personal product portfolios. This is limited to the printing of logos and color schemes. The negotiation process aims to substitute any existing competitor products with the company’s own and to offer more affordable solutions in the long-term and to appeal to the environmentally friendly activities the company is executing simultaneously for a better joint future. This action is also expected to yield favorable contracts and organizational relations. Related strategy is market development as the state entities can be considered as a new customer segment. However, this does not mean that Huhtamaki targets this audience as a segment, but rather as a strategic move, to be close to the government 85 both on a national level and a regional (autonomic community) level. The associated objectives of this action (A12Pr) are O5R and 01E. In summary, the joint effect of these actions will serve in favor of most of the five objectives either directly or indirectly, at least in the medium to long-term due to improved and strengthened company positioning and product superiority in the market. 86 7. BUDGET Table 6. Budgeting. Action Budget (€) Argumentation Objec tive Product (P) A1P 75,000 Collaboration with Huhtamaki Group. Conduct market study about likes and trend designs that help sell final consumer goods. O1E, O3C, O4R A2P 200,000 Collaboration with Huhtamaki Group. Some existing products exist on the market: improve and perfect. O1E, O3C A3P 650,000 Collaboration with Huhtamaki Group. The most crucial and impacting action requires a heftier budget, even though the joint effort. Costs will arise from the development, research and the substitution of traditional products to plastic free. O2E, O4R, O5R A4P 150,000 Company own project, process not in collaboration with the Group. National human resources will be used to find the solution. O4R, O5R Place / distribution (D) A5D 10,000 Elaboration of arguments and setting meetings render a cost claimed by Huhtamaki. O1E, O3C A6D 35,000 The actions that will bring in more traffic to the website, both final and organizational, require the website to be innovative, easy to use and captivating to ensure the highest retention rate. Designing the final consumer interface is costly and requires constant maintenance. O2E, O1E, O3C Promotion (Pr) A7Pr 100,000 A successful campaign needs to cover many areas. planning, permissions, settling deals and other costs incurring from related activities. The most likely action to require more funds. O4R, O1E, O3C A8Pr 25,000 The creation of a social media team of experts, internal and external (not full time), will be responsible for the creation of an attractive online presence in the social media. Budget relatively low, as it will be directed to salaries of external professionals. O4R, O1E A9Pr 15,000 Small financial incentives are offered as in the form of free trial periods of Huhtamaki products and in other situations incentives such as small online advertisements (social media) to gain the interest of food delivery firms by offering them visibility. Small sum justified by market positioning and brand image. O4R, O3C A10Pr 50,000 As A8Pr, this action requires a team managing the associated tasks optimizing direct marketing and SEO. Tools O4R, O1E 87 and hourly rates will be high. A11Pr Min 20,000 or % of profit Idea is to choose inexpensive donation destinations that will have a more visible and immediate effect on the community. Possibility to add polls to social media about desired and donation worthy destinations. O4R, O5R A12Pr 25,000 Relatively low as only design patterns are needed and meetings set and prepared with the entity in question. O5R, O1E Total 1,355,000 This total sum will be spent on the execution of the 12 actions to meet the objectives set within the time period established for each. There is some margin from the € million 1.5 mark. Important to note: these sums are budgets not necessarily the intended quantities to be used. O1-5 Source: Prepared by the author based on previous analysis. The forecasted company investment (€ million 15 in 2021) in next generation production lines doubling production capacity is excluded from this budgeting. Without specific information about the to-be doubled production capacity it is unknown if this quantity will be produced immediately or with progressive increases or if some of this will be exported. However, this marketing plan does not refer to this quantity in any other way than to pinpoint that the company has available resources and is using those to improve market positioning and market share while staying competitive and innovative. Thus, the maximum budget for this marketing plan is based on the actions to be implemented and this proportional quantity (€ million 15) that the firm will invest in increasing the production capacity, hence, the maximum 10% budget for this marketing plan (€ million 1.5). Ultimately, this action plan and budgeting when executed within the specified timeline and with the established control measures is expected to strengthen the company market position and brand image while meeting the set objectives. Apart from this, Huhtamaki will have reached a more senscial place in the society with campaigns giving back to the community and collaboration with state agencies. This with its more sustainable products will also serve the Group interest and possibly result in Spanish nationals investing in the publicly traded Huhtamaki Oyj to support the company’s activities in Spain. 88 Sections 8 and 9 are timeline and control respectively. These will finalize this marketing plan presenting the timeline for the actions and the objectives and subsequently the control measures the related sporadicity. 89 Genpak LLC (2021). Company Profile. D&B Business Directory Retrieved 14th of May, 2021 from https://www.dnb.com/business-directory/company-profiles.genpak_llc.3408a43de7e0a0 e975a2775fa67ae736.html#:~:text=Genpak%20LLC%20has%20100%20total,the%20G enpak%20LLC%20corporate%20family Huhtamaki Catalogue Spain. (2021). Catálogo Foodservice Spain. 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Retrieved 14th of May, 2021 from https://www.globenewswire.com/en/news-release/2021/02/24/2181814/0/en/Pactiv-Ever green-Reports-Fourth-Quarter-2020-Financial-Results.html Peconvi.es. (2021). Peconvi.es Huhtamaki’s Canary Island distributor. Retrieved 8th of April, 2021 from http://peconvi.es/ Pérez Linares Plastic Solutions. (2021). Information. Europages. Retrieved 15th of May, 2021 from https://www.europages.co.uk/PEREZ-LINARES-PLASTIC-SOLUTIONS/ESP179284-00 101.html Pérez Linares SL. (2021). Ranking de Empresas. Infocif Retrieved 15th of May, 2021 from https://ranking-empresas.lasprovincias.es/comunidad-valenciana/empresas-alicante/ca stalla/perez-linares-sl?ref=https%3A%2F%2Fwww.google.com%2F Sabert (2021). 30 Years of Packaging Expertise at Your Service. Retrieved 14th of May, 2021 from https://www.sabert.eu/about-us/ Sabert Corporation (2021). Company Profile. D&B Business Directory. Retrieved 14th of May, 2021 from https://www.dnb.com/business-directory/company-profiles.sabert_corporation.5a40c860 f23ad5e34241d4eefe5fbf09.html Similarweb. (2021). Huhtamaki traffic overview. Retrieved 15th of May, 2021 from https://www.similarweb.com/website/huhtamaki.com/#overview 97 Sonoco Report (2021). Sonoco Reports Fourth-Quarter and Full-Year 2020 Results. Retrieved 15th of May, 2021 from https://investor.sonoco.com/news-releases/news-release-details/sonoco-reports-fourthquarter-and-full-year-2020-results Sonoco (2021). Investor Relations. Corporate Profile.Retrieved 14th of May, 2021 from https://investor.sonoco.com/ tiendavasospapel.com. (2021). Huhtamaki Spain website. Retrieved 5th of April, 2021 from https://www.tiendavasospapel.com/ 98 12. APPENDIX Appendix 1. Consolidated statement of financial position / Balance sheet (IFRS). Source: Annual Report 2020 Source: Annual Report 2020 99 Consolidated statement of changes in equity (IFRS) Source: Annual Report 2020 Appendix 2. Tangible assets. Source: Annual Report 2020 Appendix 3. Personnel expenses. 100 Source: Annual Report 2020 Appendix 4. Consolidated statement of income (IFRS). Source: Annual Report 2020 Appendix 5. Shareholder’s equity 101 Source: Annual Report 2020 Appendix 6. Current stats and 2030 sustainability ambitions. Source: Annual Report 2020 102 Source: Annual Report 2020 Source: Annual Report 2020 Appendix 7. Certificates. Source: Huhtamaki.com, for more information visit: https://www.huhtamaki.com/es/foodservice-spain/sobre-nosotros/certificados/ 103 104