The marketing strategy of a biofore company: a case study of UPM, Helsinki

Abstract

Laurea University of Applied Sciences Abstract Leppävaara Degree Programme in Business Management

Roy, Uttam Kumar

The marketing strategy of a biofore company a case study of UPM, Helsinki.

May 2014 Pages 49

The main objective of this thesis is to evaluate the marketing strategies of a case company UPM. This thesis analysis is related to the business activities among stakeholders and UPM as forest based products of a multinational company. UPM is engaged in various development projects with customers. Many of the projects are related to product development, supply chain efficiency and optimization as well as the co-planning of activities. So, the observation is focused on customer collaboration in UPM’s business.

UPM is a multinational biofore (Bio means’ biomass’ and fore means ‘forest’) company. As a forest industry whose products are made from biomass plant materials, vegetation agricultural wastes. The world is becoming more polluted day by day for industrial particles and substances. In this case, ‘Biofore’ business is less polluted than those of another in the world.

The theoretical section focuses on marketing communication tools, word of mouth marketing, product marketing, organizational buying behavior and the experience economy. An approach of qualitative research has been used for the empirical section. The opinions of a marketing executive are examined with interviews and open dialog.

The research result indicates that the marketing activities of UPM are developing their business with forest based raw materials as demand of future markets. The research and development of this company are always trying to use reusable and recyclable items as raw materials of a product for saving cost and time. UPM is a prominent paper mill in the world which is executing business successfully in spite of the long term economic recession in Europe. UPM integrates bio and forest industries. The mission statement of UPM is “Putting biofore in action means living biofore every day.” Their developments are going on creating new products suitable for people and the en-vironment.

The most significant strategic initiative was made in wood-based renewable biofuel which is going to marketed at the end of 2014. UPM has constructed the world’s first biorefinery to produce high quality, second-generation renewable diesel from crude tall oil. As their future prospects, renewable diesel is a new opportunity for the company’s growth business. In the long term, biocomposite, biofibrills and biochemical will complement UPM’s ranges of innovative new products.

Key words Biofore, Marketing strategies, New product, Competitors analysis.