Proposal for the Next Helsinki project

I took my first course in University of Helsinki; Critical Themes in Promotional Culture, master’s course in International Communication and Media program. The course was held by Melissa Aronczyk, an Assistant Professor in the School of Communication and Information at Rutgers University, New York. Our final project (of an intense one-week course :D) was to argument whether or not The Guggenheim Museum would be a strategic investment for Finland. This is our counter-proposal with few arguments against the Guggenheim. Unfortunately we only had one day to do conduct the project but  I’m happy I got to do some research on the agendas and desired outcomes of this investment.

 

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The Solomon R. Guggenheim Foundation maintains a worldwide network of art museums. Their purpose is to increase public awareness of and appreciation for art, architecture and visual culture. The Guggenheim Foundation has long had the ambition of opening a fifth museum in Helsinki. Advocates of Guggenheim Helsinki state that “Finland has capability to advance the Guggenheim’s mission to promote the understanding and appreciation of art, architecture, urbanism, and other manifestations of the visual culture of our time”. They argue that the Guggenheim Helsinki project would be a strategic investment for both Helsinki and Finland, raising the international profile of the entire region. Guggenheim Helsinki would present internationally significant exhibitions of artworks from the twentieth and twenty-first centuries while also specializing in Nordic art and architecture. Its prestigious, waterfront location would act as “a welcome center for visitors and a year-round focus of culture and entertainment for city residents.”

The City Council of Helsinki voted to reserve a prominent waterfront site for the architectural competition of the proposed museum. Advocates state that from a global perspective, Helsinki is emerging as a city to watch. During the past few years, Helsinki has earned positive mentions in international media channels, including high rankings on Monocle Magazine’s ‘Most Livable Cities in the World’ list. Finland’s political stability and high-quality education system have laid the groundwork for a strong national economy. Creativity, design and technology are sources of national pride. “Helsinki is one of the best places in the world. We are convinced that the museum would benefit the city and the country as a whole as well as the Foundation,” said Richard Armstrong, Director of the Guggenheim Foundation, to the Finnish daily Helsingin Sanomat.

For the time being, there is a debate going on in the City of Helsinki, whether about 130 million Euro (plus VAT) tax money should be invested in the construction of a new trademark art exhibition space. This would also mean that the city would donate the most valuable piece of land in the Southern Harbor for this purpose. In addition, the city would pay 5 – 10 mio Euro annually in salaries, maintaining the building and the purchase of exhibitions. Obviously, this is a major investment of the State and City of Helsinki. Opponents of the project have launched a counter-competition, Next Helsinki, as a riposte to what critics have branded a misguided vanity project (Wainwright, 2014), and as a symbol of the Finnish capital ‘selling out’ to an American brand. In the next section, we will share our view on the proposal, and raise few points that, in our opinion, make the Guggenheim Helsinki extremely risky project.

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Though we appreciate and agree with the claims presented. However, several factors make this investment a major risk. We will provide our counter arguments for the Guggenheim Helsinki project, in the light of analysis of the official proposal and our knowledge of the economic situation. First of all, the economic situation in Finland does not look bright at the moment. Being part of European Union, Finland is exposed to decisions coming from the European Bank. Also, tourism of Helsinki is very dependent on Russian tourists visiting the city. However, as Russia is undergoing an economic depression as well (among other uncertainties), tourism from our eastern neighbor has declined enormously. There are no guarantees about the situation getting better anytime soon. Another argument can be made; Russian tourists are not coming for cultural activity but rather shopping and other activities. This applies to some extent to Asian tourism as well; thus Guggenheim cannot trust on Russian and Asian visitors, which in recent years have been top tourists segments.

As for Finnish visitors; though Finnish people would most likely be excited of the new cultural space and visit, their visit would hardly be frequent. Rather, they would most likely visit once or twice in a time period of several years. Also, many Finns are resisting the project in the first place. This is a comment when asked a local security guard near the site (Wainwright, 2014): “I’m not paying my taxes to be handed over to an American corporation to do with what they want. If we’re spending that kind of money, it should be on our own national museum, not another outpost of a global company.

The proposal was renewed 2013 with new estimated financial figures. Estimation of previous 527 000 visitors was raised up to 550 000. This figure is based on an estimation by BCG questionnaire that got 2500 responses from Finnish people and 550 tourists. From an accounting perspective, we claim that 3000 responses, only 500 of which from foreigners and rest from locals, is not enough to estimate an amount of visitors with such estimate. 550 000 will unlikely been hit for the reasons elaborated above.

Benchmarking can be made for further analysis. With close to 11 million commercial overnight stays per year (Stockholm Business Region, 2013), Stockholm ranks number ten on the list of the most attractive destinations in Europe. Copenhagen, then, has 8.5 million annual overnight stays (Wonderful Copenhagen Annual, 2013). The number of overnight stays in Helsinki is less than a third of Stockholm’s figures, and less than half of Copenhagen’s. These cities’ most popular museums, Moderna Museet and Louisiana Art Museum attract 500 000 and 600 000 visitors respectively. Estimated 550 000 seems extremely high compared to those figures and places considerable emphasis on the so-called ‘Guggenheim Effect’ (see e.g. Deutsche Welle, 2012).

Is the Guggenheim brand really going to attract equal amount of visitors with Louisiana and Moderna Museet, two of the most popular museums in Scandinavia? For example, Louisiana is currently displaying The Celia Asher collection, including works by Picasso, Miró, Kandinsky, Pollock, Dubuffet, Kiefer and Kelly. Moderna Museet is just finishing up with an exhibition including works by Jeff Koons among others. These two top quality museums are arguably a good representation of how many museum visitors can be attracted in a Nordic capital and the numbers may not be realistic to replicate in the smaller Helsinki.

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The Guggenheim Foundation is often refers to its success in making Bilbao a world famous cultural destination. In the Guggenheim Helsinki proposal, the foundation claims Bilbao to be an appropriate comparison for Helsinki. The Guggenheim Bilbao has been largely defined as a success and the financial benefits of the project are indeed impressive. However, in reality Bilbao’s narrative is not very compatible with Helsinki. Pre-Guggenheim, Bilbao was an industrial city trying to complete a complete transformation into a modern European city.

The city’s project was arguably a great success, but Guggenheim has perhaps taken too much of the credit, since many other improvements and investments were made in Bilbao during the late 1990s and early 2000s. Similar efforts to become a cultural destination by the Spanish city of Valencia failed miserably, leading into great financial difficulties (Kippo, 10.7.2012). It is hard to argue Helsinki is in need of a similar turnaround, although the discourse around Guggenheim suggests Helsinki needs something new. Guggenheim has been presented as this form of progress (Aronczyk, 2013, pp. 128). The success of Guggenheim Bilbao has created a phenomenon, often referred to as the Guggenheim Effect (Deutsche Welle, 2012) or the Bilbao Effect (Wainwright, 2014; The Economist, 2013). However, the Guggenheim Foundation does not have a track record of creating this effect repeatedly. According to the Guardian (Wainwright, 2014), franchises in Las Vegas, Berlin, Salzburg, Vilnius, Guadalajara, Rio de Janeiro and lower Manhattan have all been cancelled or closed down.

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In addition, the Guggenheim Abu Dhabi project has so far been a disappointment. There have been multiple delays, and especially the labour practices surrounding Abu Dhabi’s enormous cultural project have been heavily scrutinized. For example the activist group Occupy Museums has stated that ‘each time the Guggenheim speaks, its approach to migrant labour issues on Saadiyat Island sounds more like that of a global corporation than that of an educational or art institution’. Guggenheim Foundation’s failures in Abu Dhabi and elsewhere suggest, that instead of being a transcendent cultural force, the foundation might well be a one hit wonder which many cities and countries do not want to collaborate with.

 

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Helsinki already has several prestigious museums and due to the downturn, the city is cutting budgets for these. Why bring in another museum if the current ones are not profitable either? We wonder; does Helsinki and Finland really need to adopt an international concept that has nothing to do with the Finnish identity and culture? Isn’t Finland a strong enough brand already – why not build something truly unique and innovative around what we are known for, and in particular, want to be known for? There is hardly a need for Finland to brand itself as more western or global (Aronczyk, 2013).

We argue, that Finland simply does not have enough demand, at least right now, for another cultural museum. Finland should invest in a more ‘real’ phenomena, which we will elaborate in the next section. The investment is very significant at the time of economic depression. The estimated visits are very unlikely to happen. We argue that the investment is too risky and unnecessary.

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We argue that we should not “sell” this project for an international brand; rather, we ought to build something new and unique, built around the strengths of Finland and Helsinki. Thus we propose to use the site and investment of Guggenheim for another kind of space that would raise interest and approval among Finns and raise global interest as well as attract foreigners.Finland has strengthened its brand world-widely during past decades. Finnish brand itself is already strong yet mysterious. We have certain trademarks such as sauna, Santa and the northern lights. We are known for our high level of education and strong information technology know-how. Finland is quickly becoming a technology startup hub.

However, although Finland has some strong internationally known icons, our proposition would focus on the people of Helsinki and Finland, and their activities. Instead of communicating a singular ‘national brand’, the proposition puts emphasis on communality, diversity and creativity. Instead of trying to bridge ‘a gap’ between local and foreign understanding of Finland (Aronczyk, 2013, pp. 162), our purpose is to present Finland more like it actually is, not just Santa and sauna.

The Finns have always had a do-it-yourself mentality. One of the most famous lines in Finnish fiction is: “In the beginning, there were the swamp, the hoe and Jussi”. Today, this enterprising spirit is found in the many grassroots activities Finnish citizens take part in. There are for example over 135 000 registered associations in Finland (Patent and Registry Bureau). Some DIY-happenings like Restaurant Day and Cleaning Day have become significant movements. Student-based activities like Aaltoes and Helsinki Think Company are re-defining and motivating entrepreneurship within and outside the universities. This potential should be used as what can be called as a strong nationality; brand identity must not only be representative of particular ways of being but actually lived – embraced and embodied – by the county’s citizens if it to be effective as a modern version of nationality (Aronczyk 2008). The new multipurpose space would embrace the Finnish DIY-spirit.

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Our proposition: a multipurpose public space

Our proposal is centered on a multipurpose space offer facilities for the citizens of Helsinki and their innovative activities. There are enough one function buildings in downtown Helsinki (Kiasma, Music House etc.) already. In addition to supporting already well established Finnish events such as Restaurant Day, Cleaning Day and Helsinki Design Week, new events could be launched. This would be done with crowdsourcing event concept innovation, also on a global scale. The space would also be open to international non-commercial events seeking for an interesting space. The usage of space would be based on the ideal of co-creation; this would allow for the continuous emergence and exploitation of creative and valuable forms of consumer labor is the true meaning of the concept of co-creation (Zwick et al.). The risk of exploitation would be small, since activities are produced and consumed by the same people. All activities and events would be free of charge.

Overall, the intention is that the space would inspire people to come up with different activities so that the purpose of the building and its surroundings would change over time to reflect the interests of its users. Below are examples of uses and ideas the final concept could include:

Art and event facilities

Our space would include various different facilities for artists and organizers. Different kinds of events including art, music, dance etc. could be organized in the new premises. Individual, association and bigger non-profits would all be allowed. The public art institutions such as Ateneum and Kiasma could offer special exhibitions including co-operative displays with other Nordic museums, such as Arken and Moderna Museet (this has been a good way to attract international artists for Nordic music festivals). For many ascending artists, the space would offer a first chance to show works for the general public. There should be adequate space for un-organized activities as well, leaving space for smaller groups and amateurs as well.

Public Space

We envision plenty of seating, outdoor garden areas and spaces without a certain purpose. The center could become a meeting spot for the people of Helsinki and its visitors. Unlike many public outdoors spaces, restrictions on e.g. skateboarding and street performances would be loosened. The building could also offer quiet rooms for relaxation and working in peace.

The food hall

The renewed food hall next to the site would greatly complement the event space. The food hall concept would be developed even further, offering both more classic and modern Finnish cuisines. Local producers from all around Finland would have a chance to impress visitors with their self-produced goods. Iconic Finnish goods such as licorice, reindeer meet, Fazer chocolate, berries and so on would be available. Torvehallerne in Copenhagen could be used as benchmark.

Co-operation with Aalto University, Taideyliopisto (University of Arts) & The University of Helsinki

Education is a key component of the Finnish society. The higher education institutes of Helsinki could offer free classes to interested visitors and also display student projects. All three universities have a different profile so they would offer a diverse selection of interests.

Support for Slush and other start-up events

In addition to student organizations, start-up event Slush is the focal point for Eurasian startups and technology talent to meet with top-tier international investors, executives and media. The two-day event takes place every fall in the wintery Scandinavia amidst one the most dynamic tech ecosystems in the world. Slush 2014 took place on in Helsinki with more than 10.000 attendees. In the past three years, Slush has grown from a local, 300-person event to become one of the leading tech and startup events in the world, reaching attendees from 68 countries in 2013.

Slush a non-profit event organized by a community of first-time entrepreneurs, students and professional music festival organizers, while backed by founders of Nordic success stories such as MySQL, Rovio, Supercell and Skype. The event keeps expanding every year, leaving very few available spaces in Helsinki to be able to fit it in. The event has been offered to buy so far both to Russia and Sweden with millions of euros. Organizers naturally want to keep it in Finland, however, the space issue will continue. The new hall could serve as a space for Slush, which is quickly becoming one of the most potential and well acknowledged events in Finland. We are in the top of the world in technology and gamification – this potential should be fully captured and supported.

Architectural considerations

The building would stray away from so-called WOW-architecture, and be more based on the tradition of Finnish architecture, such as modernist styles of Alvar Aalto and Eero Saarinen. The building should be environmentally friendly, communicating our close association with nature and green values shared by many Finns. The milieu surrounding the area should be utilized, we envision a close relationship with the waterfront and good use of outdoor space.

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References:

Aronczyk, M. (2013). Branding the nation: the global business of national identity. Oxford University Press.

Deutsche Welle. (2012). Bilbao’s Guggenheim Continues to Divide. Retrieved January 15, from: http://www.dw.de/bilbaos-guggenheim-continues-to-divide/a-15904659

The Economist. (2013). The Bilbao Effect. Retrieved January 14, 2015 from http://www.economist.com/news/special-report/21591708-if-you-build-it-will-they-come-bilbao-effect

Guggenheim Museum Publications. (2013). Guggenheim Helsinki: Renewed Proposal. Retrieved January 13 from: http://www.guggenheimhki.fi/wp-content/uploads/2013/08/gHelsinki_web_ENG1.pdf

Kippo, J. (10.7.2012). Kiertoajelulla tuhlailijoiden maisemissa. Retrieved January 15, 2015 from http://www.hs.fi/paivanlehti/talous/Kiertoajelulla+tuhlailijoiden+maisemissa/a1341810665960

Nurmi, T. (2014). On/Off Helsinki Guggenheim is On Again… Retrieved from http://www.a10.eu/news/meanwhile/helsinki-to-hold-competition-for-new-guggenheim.html

Occupy Museums. Website. Retrieved from http://occupymuseums.org

Patent and Registry Bureau. Yhdistysrekisteri. Retreved January 15, 2015 from http://www.prh.fi/fi/yhdistysrekisteri.html

Slush. Official website. Retrieved January 15 from www.slush.org

Stockholm: The Capital of Scandinavia (2014). Facts About Stockholm ́s Tourism Industry Statistics for 2013. Retrieved January 14, 2015 from http://press.stockholmbusinessregion.se/Global/Facts%20about%20Stockholm%C2%B4s%20tourism%20industry%202013.pdf

Wainwright, O. (2014). Helsinki v Guggenheim: the backlash against the global megabrand is on. Retrieved January 15, 2015 from http://www.theguardian.com/artanddesign/architecture-design-blog/2014/sep/11/helsinki-guggenheim-outpost-battle

Wonderful Copenhagen (2014). Annual Report 2013. Retrieved January 14, 2015 from http://wonderfulcopenhagenannual.dk/uk.html

Visit Helsinki (2014). Helsinki Travel in 2013. Retrieved January 14, 2015 from http://www.visithelsinki.fi/sites/visithelsinki.fi/files/files/Tilastot/EN/helsinginmatkailuntilastoraportti2013_eng.pdf

Zwick, Detlev, Samuel K. Bonsu, and Aron Darmody. “Putting Consumers to WorkCo-creationand new marketing govern-mentality.” Journal of consumer culture 8.2 (2008): 163-196.

The Kaffa Effect – Mobile Game to Enhance Digital Marketing of Kaffa Roastery

My group and I designed a game for my personal favourite coffee supplier in Helsinki, Kaffa Roastery. The idea arose to my mind as I had recently delicately complained about the (terrible) taste of our office coffee – industrial Finnish brand, of which taste could be claimed has nothing to do with real coffee. My hopes were heard at work ( ❤ ) – we shifted over to Kaffa’s coffee.

Yet the idea of Kaffa Roastery -app started to evolve in my mind; what would be better than a educational game about coffee for all office employees appreciating good coffee? Most people have no idea where the beans come from and what are the processes behind coffee production before it ends up to their cups. We want to give our support for small roasters in town and help them increase their sales, to both private and business consumption. This is our pitch to develop a game to Kaffa Roastery or any other quality coffee supplier wanting to increase brand awareness, awareness of coffee processes, and eventually increase sales.   Screen Shot 2015-01-06 at 16.13.20 Screen Shot 2015-01-06 at 16.13.30 Screen Shot 2015-01-06 at 16.13.39 Screen Shot 2015-01-06 at 16.13.48 Screen Shot 2015-01-06 at 16.13.56

Executive summary

Finland has the highest coffee consumption per capita in the world. People have traditionally preferred quantity over quality, making quality coffee a niche market. What makes it even more challenging for local small specialty roasters is that they are not up-to-date with their digital tools. One of the largest sales channels are offices, where good quality coffee would be a valuable employee benefit, but the issue is hardly raised or thought after.

Our focus of the research and game plan was on how to increase the sales of quality coffee to the offices (B2B sales). Our customer company was Kaffa Roastery, a small roastery from Helsinki, that is planning to invest heavily in digital marketing. Kaffa Roastery is competing against bigger providers in the office coffee market, but finds it difficult to reach these customers. Our target was to design a game that could increase the sales of Kaffa Roastery’s coffee and act as a guerrilla marketing campaign towards the office customers.

We conducted a thorough market analysis on the current situation of the coffee market, supply chains of office coffee and the purchasing processes in different companies. Based on this analysis we understood that the decision-making regarding the purchase of office coffee is very distant from the end users and the process is seen as overly complicated. We chose a strategy to tackle the issue by bringing the options related to office coffee closer to the end users. Our aim is to increase the preference of good coffee within office employees.

Our recommendation is to focus on education about the differences of coffee varieties. We want people to know more about the coffee they drink and therefore we have designed a game that takes the player through the different coffee varieties and different origin countries. In each of these destinations, player plays a mini game, that teaches about the coffee country or variety in question. A player progresses through the stages, gets badges and unlocks new games and can share the progress in different social medias. The game also gives recommendations of a suitable coffee for the user based on the responses and the playing style. The game is closely integrated to the web store and makes it easy to buy coffee and access additional information.

Our research indicated that it is difficult to reach the target customers. Therefore we have created a marketing campaign to distribute the game to the wanted destinations. We also aim to introduce Kaffa Roastery as the digital market leader of coffee, by partnering with Slush ‘14 technology exhibition and promoting the digital aspect and disruptiveness of the business for growth-oriented companies.

The objective is to increase the market share of premium coffee in offices. We aim to bind people more to the coffee they drink by educating them about the differences and positive effect that coffee can have. By this we aim to increase Kaffa Roastery’s sales, the partnerships with offices and the preference towards Kaffa Roastery’s products within consumers.

Our estimate for the cost of the development is 10.000€, cost of marketing 10.000€ and the revenue target is 120.000€, with a margin of 50.000€. Therefore we highly recommend developing the game to increase sales and bring an innovative to the marketing of the company.

Table of Contents

  1. Introduction.
  2. Gamification and using gaming in digital marketing initiatives.
  3. Market Dynamics & Company Research.

3.1 Market dynamics in Finland.

3.2 Kaffa Roastery in brief

3.3 Current digital marketing initiatives.

3.3.1 Increasing brand awareness.

3.3.2 Increasing brand preference.

3.3.3 Driving sales.

  1. The Kaffa Effect – mobile game.

4.1 The direct challenges addressed.

4.2 The structure of the game.

4.3 Metrics used to measure performance.

4.4 Cost estimates for development and marketing.

4.5 Launch of the game and guerilla marketing campaign.

  1. Motivation and method behind the solution.
  2. Conclusion.

References.

1.   Introduction

The objective of this report is to outline the reasoning behind the attributes of the Kaffa Effect game and provide a detailed description on the characteristics of the actual solution. The structure of the report is as follows. First we will present findings from scientific literature and various studies on gamification and using gaming in digital marketing initiatives. Secondly, we will take a closer look at the market dynamics regarding the services and products of our case company and analyze the current digital marketing initiatives undertaken. After which we will highlight which challenges of the company our solution will address as well as present the attributes of the solution and its execution. We will end the report by elaborating on how we came up with this solution as well as concluding remarks.

2.   Gamification and using gaming in digital marketing initiatives

The utilization of mobile applications and gamification in digital marketing is spurred by the transforming user behavior. In the United States, time spent on digital media has surpassed the time spent on watching television (eMarketer, 2013) and an average European spends around 1.5 hours a day on his/her cell phone, which is almost identical with the time that he/she spends on his/her computer (Epstein, 2014). On average 60% of social media activity is spent on smartphones and tablets instead of traditional computers (Adler, 2014) and the usage of mobile games is reaching the popularity of computer and console based video games (Aamoth, 2014). This change in behavior has been acknowledged by marketing experts and elements of digital marketing have been increasingly built in to mobile applications and games (Tottman, 2014).

The first step has been to simply display commercials or advertisements in mobile games. The second wave of utilizing mobile games in marketing have involved the cooperation between game developers and traditional enterprises (IndustryWeek, 2012). As a result, special games have been based on services or products of partnering companies, and users have been able to gain an abundance of information about the companies during the gameplay. In some cases, for example, achieving a special level in the game directs the player to the website of the company, where the players can buy unique products or services for exclusive prices which are only available for the gamers. This approach can be seen to utilize gamification in marketing efforts, and the playing of the game is beneficial for the users, due to increased knowledge or received special offers. Several games also implemented tasks for purely educational purposes without commercialization features, which has helped in creating a positive acceptance among users.

Huotari and Hamari (2014) define gamification as“a process of enhancing a service with affordances for gameful experiences in order to support user’s overall value creation.” The authors highlight that this definition emphasizes the goal of gamification rather than the explanation of the methods. They also state that there are no clear gamification elements, which would be valid only for games. Dashboards, levels, points, progression metrics could be also found at stock exchanges, decision support systems or loyalty programs (ibid).

3.   Market Dynamics & Company Research

This section will provide insight into the market dynamics of coffee in Finland as well as provide an insight and justification to why the Kaffa Roastery was chosen as the target company. The company analysis will briefly introduce the company and look into the current digital marketing initiatives undertaken by Kaffa Roastery. It will also provide insight on how we believe the game will provide benefits for the company.

3.1 Market dynamics in Finland

According to trade statistics of the International Coffee Organization (ICO) Finland has the highest coffee consumption in the world when measured in kilograms of roasted coffee per person and the statistics show that in the past years as much as 1.1 percent of all coffee imports globally have been shipped to Finland (International Coffee Organization, 2013). The consumption has, however, remained rather stable in the past four decades (see figure 1). No clear statistics on the market share on specialty coffees were available, however according to Paulig 94% of the coffee consumed in Finland is light roasted, while the rest 6% are dark roasted or speciality coffee (Paulig Uutiset, 2012). Looking at the development of consumption, the sales director of Paulig Karri Kauppila predicts that while the coffee consumption habits are changing, the quantity of coffee consumed in kg per person is not likely to increase in the future (Ziemann, 2014).

Figure 1: Sales of Roasted coffee in Finland (Tilastokeskus)

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Based on our market research we understood that the current biggest providers are dominant in the office coffee market. They have their established networks and ways of working with heavy sales channels and marketing campaigns. They are mostly focused on the HR and decision-makers around the coffee purchase and don’t even try to talk for the end user. We see that there is a market for disruptive solutions that aim to increase the quality, create a more end-user focused branding and create the coffee offered in offices as an easy and cost-effective way to reward employees.

3.2 Kaffa Roastery in brief

Kaffa Roastery is a Helsinki based coffee roaster established in 2007. The origins of the company are in roasting special blends of coffee using high quality, fresh beans procured to as a high ratio as possible directly from coffee plantations. The company has grown rapidly and their coffee has received several titles in professional barista competitions. Currently the company offers a large variety of specialty coffee, coffee machines, accessories and service solutions such as continuous fulfillment and maintenance contracts. The sales are targeted at individual homes, offices and the HoReCa (hotel, restaurant, Cafeterias) branch. Based on the findings from our interview with the CEO and Head of Office Sales of Kaffa Roastery, there exist significant unutilized potential in the sales to offices. The picture below depicts the how the sales of coffee is divided between these three branches both in the industry in general and at Kaffa roastery. From this we can derive that there exist significant unutilized potential in the sales to offices.

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3.3 Current digital marketing initiatives

New media (social media, blogs, video sharing services etc.) and the proliferation of mobile smart devices has changed the marketing landscape. The traditional sales funnel approach assumes that consumers begin with a large variety of potential brands in mind and methodically cut down on the choices until they decide to buy; while after the purchase the relationship with the chosen brand is typically focused on the use of the product or service itself (Edelman, 2010). New research, however, indicates that rather than systematically narrowing down their choices, consumers tend to add and subtract brands from a group under consideration, and do this during an extended evaluation phase (ibid). The new media, has also led to the consequence that consumers tend to enter into an open-ended relationship with the brand and share their experience with it online (ibid).

This means that the marketing investments are needed to be highly focused on helping consumers navigate the evaluation process and then spread the positive word of mouth about the brands that they have built a bond with (Edelman, 2010). One can therefore derive, that it is extremely important to invest in marketing initiatives that help in building brand preference and make it easy and intriguing for consumers to build a bond with the brand. It has also been found that if the consumers’ bond with the brand is strong enough, they are likely to repurchase it without cycling through the entire earlier decision journey (Edelman, 2010).

As a result of the proliferation of mobile smart devices as well as the maturation of new media, we are also witnessing an emergence of social commerce. Barnes (2014) defines social commerce as a subset of e-commerce involving the use of social media that supports social interaction and user contributions, to assist in the online buying and selling of products and services. What this means to companies, is that they need to provide customers and consumers well designed and integrated digital tools and platforms that enable a seamless purchasing, sharing of experiences and advocating the brand.

Looking at the findings above, we aim to evaluate the current digital marketing initiatives of Kaffa Roastery and identify how we could assists them in their digital marketing efforts. We understand that the traditional sales funnel view is no longer totally valid in digital marketing, however in order to clearly structure the findings we utilize rather traditional three elements: Increasing brand awareness, Increasing brand preference and Driving sales.

3.3.1 Increasing brand awareness

Kaffa Roastery aims to build brand awareness in social media channels mostly through organic exposure. As organic exposure requires effort, Kaffa Roastery actively updates its Facebook and Twitter accounts. Having over 4000 likes in Facebook and 1100 followers in Twitter gives them a solid follower base. In addition to this Kaffa Roastery and their products are featured in several blogs.

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3.3.2 Increasing brand preference

Kaffa Roastery aims to build brand preference by creating and distributing valuable and relevant content to its target group through its digital marketing initiatives. Currently the distribution of the content is focused on the same social media channels focusing also on building brand awareness. According to the CEO, Svante Hampf, the aim of the company is to increase the role of targeted content marketing bringing it in the center of their digital marketing strategy. Therefore we see that a new channel, a mobile game, educating about the differences of coffee varieties would be a valuable supplement.

3.3.3 Driving sales

Based on interviews with the CEO, Svante Hampf, and the Head of Office Sales Ari Luostarinen, driving sales in Kaffa Roastery has been undertaken to large extent by utilizing conventional strategies, such as telephone and face-to-face contact by their sales representatives. However the company aims to concentrate investments in the future on digital sales solutions. At the moment the digital marketing initiatives in this area are concentrated on their webstore on their own homesite, in which they also provide an automated tool to assist offices to evaluate the most appropriate solution for them (see the following pictures).

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4.   The Kaffa Effect – mobile game

By reviewing theory on gamification and analyzing the current and desired digital marketing initiatives of the company, we decided to develop a mobile game, which would educate the players about the varieties and proprieties of a good coffee. In our vision Kaffa Roastery would act as the core service provider of the game. We decided to focus on the education and turning people who are aware of Kaffa Roastery to start to prefer its’ coffee. This game was designed to create excitement and educate the player of the origin, quality and the processes of what happens to coffee before it ends to one’s cup. Once people play and share this game at the office, they will mutually question the current coffee provider and consider Kaffa Roastery as their coffee provider. The game will provide recommendations on the suitable coffee solutions for different offices based on the amount of employees and taste towards coffee.

We feel that this is an issue that affects to the satisfaction of employees notably. People will not just love the taste of Kaffa’s coffee but be also proud of having it in their office, thus the game is very potential in changing awareness into preference in the sales funnel. For companies this is a simple trick of remuneration and employee satisfaction. The best part is that it is very easily measured, as the satisfaction towards the office coffee can be easily interviewed. Creating before/after -interviews and analyzing the change would be important for the companies to justify the decisions and also for Kaffa Roastery to further market their solutions.

We wanted to create a game that is cool to play and will make people share it to their friends. We wanted to make it educational yet interesting. People will play to miniature games to unlock quick facts about coffee. These games are traditional games such as Sudoku, Memory Game, Trivial and such. They are relatively easy to pass, but demanding enough to keep the player’s interest and motivate them to “achieve”, and unlock the information. After raising the excitement and interest, we have designed a tab to give recommendations and contact Kaffa to order coffee. Proceeding to the ordering process is done super easy for the player, yet not pushy.

4.1 The direct challenges addressed

A clear challenge identified for the company is that people are not aware of the major differences in coffee varieties. By educating the target group it is possible to increase their attention to the origins of the coffee as well as to the selection of assortments. Also as stated above, in the future the company wants to invest in enhancing the level of content marketing and in digital sales solutions. Our game offers a strong alternative to enhance content marketing and education through a new complementary digital channel.

4.2 The structure of the game

The player will learn about origins of coffee areas around the world, beans and other factors that affect the coffee beans taste. The game will also teach about the processes that beans go through before ending up to your cup.

Part 1, Landing page

Landing page will include the heading and below a world map and a game progress bar. Page will also include a dropdown box for Information about Kaffa, link to shop etc. Key element is the map and by pressing each continent you will proceed to next page.

Part 2 Continents

Every continent has its own map and within the continent you will find icons that represent information that can be unlocked through playing a mini game through. For example in Kenya you will unlock facts and pictures about Kenyan coffee. To unlock the information player needs to play a mini game. After playing that player can advance to next point on the map, for example Ethiopia etc. Playing game and unlocking information will also ad points to players progress bar.

Each continent that has coffee plantations will have its own map (Asia, Africa, South- and Middle America). In Europe and especially in Finland player can learn about the processes that are made here such as roasting, grinding and brewing.

Part 3 Mini games

Mini games such as Memory Game (matching pairs), Hanging Man (not hanging but same idea), Sudoku and Fact Quiz have to be passed to unlock the information. Especially in the beginning games will be easy but will get harder as player progresses. Also the information unlocked will get from very basics to more niches. As the player advances he will get awards (badges, discount codes etc.), which can then be shared on Facebook and other social medias.

Awards

Awards will include badges that player receives when progressing on the game for example when every 1/5 is accomplished. Badges can be shared on social medias and will say for example: “you are now Barista level coffee explorer” etc. This social media sharing will help game get more players and audience. These rewards will also give player feelings of accomplishment, which are a powerful psychological tool.

In addition to these awards, player will receive every now and then real life benefits by offering discounts and free deliveries etc. The game would also do these every now and then surprise discounts to attract consumers. See illustrative mock-up below.

5

4.3 Metrics used to measure performance

Number of downloads – expected 10 000

Cost of downloadmarketing budget for project/downloads

Number of new customers – estimated 1000 new office employees (50 x 20p offices)

Kilos sold more compared to earlier – expected 6500kg

CAC – customer acquisition cost and cost for additional kilo sold.

The cost of every new customer will be counted by: cost of marketing actions and game production / number of new office customer employees. This will be quite accurate but do not account for new B2C customers. So another metric will be used which is Cost of acquiring one kilo of more sale: Price of campaign / rise in kilos sold

Goal is to get 1000 new office employee customers (50 offices of 20 employees) and sell 6500 kilos of more coffee. With predicted costs of 20 000, CAC would be 20e and cost for additional kilo sold would be 3,08 euros.

Time spent in minigames – metric to measure game experience as recommended in research

Number of shares game and shared badges

K-factor – number of game invites sent per customer * percent conversion of each invite

Churn rate – 7 days, 30 days, 3 months

Amount of paying users (percentage and number

Average revenue per user (ARPU) euros

Increased revenue – percentage and euros

4.4 Cost estimates for development and marketing

6500€ Technical development

1500€ Graphic Design

2000€ Project Management

2000€ Promotional elements (coffee mugs, stickers, etc.)

4000€ Promotion salaries

4000€ SoMe -campaign

= total 20.000 €

4.5 Launch of the game and guerilla marketing campaign

The game will be designed for both the iOS and Android platforms and distributed through the designated app stores. The launch will be promoted and supported by a social media campaign in Kaffa Roastery’s Facebook and Twitter pages. We do, however, believe that this will not be enough as our research indicated that it is difficult to reach the target customers. Therefore we have also created a guerilla marketing campaign focused on office customers, in order to distribute the game to the wanted target markets. During this campaign coffee will be distributed in our target area by using Kaffa-style take away coffee cups with game information on it, instead of the current “basic” cups. During the campaign customers also get to pick a free coffee from Kaffa Roastery in exchange for showing the downloaded app. Kaffa will naturally promote the game in their newsletter and we will print out urban stickers designed for this campaign. We also aim to introduce Kaffa Roastery as the digital market leader of coffee, by partnering with Slush ‘14 technology exhibition and promoting the digital aspect and disruptiveness of the business for growth-oriented companies.

5.   Motivation and method behind the solution

We have ourselves experienced the problem of bad office coffee throughout the years in the corporate environment. The offices that aim to have good coffee are very rare. People (including us) are unsatisfied of the quality and taste of the coffee served in offices, but are unaware of better options out there. We want to bring the decision making and voice to participate in decision-making of coffee provider to everyone in the office, not just to the HR department.

To decide the game details and have better understanding of the market, we did a thorough research on the supply chain of office coffee. We interviewed different offices coffee-purchasers, Kaffa Roastery’s CEO and head of office coffee sales and also a representative of a competing roastery. This was done by simply calling the Kaffa Roastery people explaining the situation and walking in to the competing roastery to ask questions about sales to different offices. This gave us understanding of the sales, distribution and decision-making situation related to purchasing coffee in offices. It was evident that the purchasing process of office coffee is not very thought-after, the decision-makers simply aim to fill a need without focus on the coffee quality or the end user. The different alternatives and details are not considered nor transparent.

6.   Conclusion

Based on our market research, interviews and experience from offices, we see that gamified experience could be a truly disruptive option to increase preference towards good coffee. We want to widen the pool of decision-makers related to this and brand office coffee more strongly for the end users. By educating people about the differences and processes of coffee we hope to create a common subject of talk to any office between any employees and improve work satisfaction that way.

Overall we find that games and many traditional systems share elements such as dashboards, levels, points and progression metrics. These can be found at stock exchanges, decision support systems or loyalty programs and are very important for the experience, behavioral analysis and as a motivational element. This further supports our analysis, that marketing games can be an additional element or channel to a marketing campaign.

The game that we have designed aims to enhance the digital marketing efforts of Kaffa Roastery and further support their digital marketing activities. It tackles the number one challenge that their content marketing strategy at the moment has, reaching the relevant end users. This is done with a promotional launch marketing campaign targeted to channels with potential customer base and in-game social aspects that are built to spread the game organically.

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