The "Boring Stuff" About Social Media is Most Crucial for Business Success


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I presented this piece at the Internet Marketing Conference (16 September 2010, Helsinki) about Valio\'s practical experiences of social media marketing so far. Conclusions include that the "boring stuff" about social media marketing - such as organization, training, planning, and the actual everyday doing - is the most crucial stuff for business success perspective. This is because social media marketing cannot be outsourced.

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The "Boring Stuff" About Social Media is Most Crucial for Business Success

  1. 1. The ”Boring Stuff” about Social Media Marketing Joonas Rokka 16.09.2010 Internet Marketing Conference, Helsinki
  2. 2. Who’s presenting? <ul><li>Joonas Rokka, DSc (Econ) </li></ul><ul><li>Digital Marketing Project Leader, Valio Ltd (2009 -) </li></ul><ul><ul><li>Digital marketing strategy and tools </li></ul></ul><ul><li>Researcher, Aalto University School of Economics (2006 -) </li></ul><ul><ul><li>Consumer & new media studies </li></ul></ul><ul><ul><li>Dissertation about how to study the cultural aspects of </li></ul></ul><ul><ul><li>online communities </li></ul></ul><ul><ul><li>Teacher in branding, marketing research, methods and </li></ul></ul><ul><ul><li>consumer behavior courses </li></ul></ul><ul><li>Visiting scholar, HEC School of Management, Paris (2008-2009) </li></ul><ul><ul><li>Research collaboration, teaching </li></ul></ul>© Valio Oy 04.10.10
  3. 3. Outline <ul><li>Why is Valio here today? </li></ul><ul><ul><li>And why exactly is social media relevant for Valio? </li></ul></ul><ul><li>How is Valio making use of social media in practice? </li></ul><ul><ul><li>What have been the biggest challenges in turning a ”traditional company” into a ”social media marketing company”? </li></ul></ul><ul><ul><li>How can this sort of change be managed? </li></ul></ul><ul><ul><li>What activities have been made? </li></ul></ul><ul><ul><li>What guidelines and principles are in use? </li></ul></ul>© Valio Oy 04.10.10
  4. 4. Valio Ltd <ul><li>Valio was founded in 1905 as an export co-operative for high-quality Finnish butter. </li></ul><ul><li>The name Valio still stands for excellent quality. </li></ul>
  5. 6. Valio, Finland’s biggest milk processor © Valio Ltd 04.10.10 Owners: 22 dairy co-operatives, about 10 000 Finnish milk producers Turnover: 1 844 million € in 2008 (30 % from abroad) Factories: 15 in Finland, 2 in Estonia and 1 in Belgium Subsidiaries: Sweden, Estonia, Lithuania, Latvia, Russia, Belgium, USA, China Sales: in over 60 countries Personnel: appr. 4 375 in Finland and abroad
  6. 7. Market shares in Finland (%) © Valio Ltd 04.10.10 Source: ACNielsen ScanTrack, moving annual total to 6th January 2008, market share by value Milk Cheese Cooking products Yoghurt Butter and spreads
  7. 8. Valio is the most responsible company in Finland © Valio Ltd 04.10.10 Finnish consumers named Valio the most responsible food company in 2009. Research made by Suomen Gallup Elintarviketieto Oy:n What is responsiblity according to Finnish consumers? High quality products, safety, freshness, enviromental issues, domestic.
  8. 9. Valio is one of the biggest advertisers in Finland… <ul><li>However , Valio’s marketing activities remained more or less outside of the digital realm </li></ul><ul><ul><li>Share of digital marketing practically close to zero </li></ul></ul><ul><ul><li>Valio is the poster child for ”traditional marketer” </li></ul></ul><ul><ul><li>No significant experience nor skills in the area of digital marketing </li></ul></ul><ul><ul><li>Consumers are adopting digital media very fast </li></ul></ul><ul><ul><li>Also competitors… </li></ul></ul>04.10.10
  9. 10. Valio’s activities <ul><li>Valio needed a new strategy in digital marketing </li></ul><ul><ul><li>Actually there was no strategy before.. </li></ul></ul><ul><li>Strategy project was launched in 2009 </li></ul><ul><ul><li>Internal digital and social media audit was conducted </li></ul></ul><ul><ul><li>Training sessions were planned </li></ul></ul><ul><ul><li>Strategy and mission were formulated </li></ul></ul><ul><ul><li>Guidelines and support was provided </li></ul></ul><ul><ul><li>Implementation underway </li></ul></ul><ul><ul><li>Several iniatives set forth </li></ul></ul>
  10. 11. Digital and social media audit <ul><li>Starting point </li></ul><ul><li>One-way info on web </li></ul><ul><li>Static, textual content </li></ul><ul><li>SE not supported </li></ul><ul><li>No flow, dead-ends </li></ul><ul><li>No interaction </li></ul><ul><li>Passive </li></ul><ul><li>No social media </li></ul><ul><li>Up-to-month info </li></ul><ul><li>Goal </li></ul><ul><li>Interaction, dialogue </li></ul><ul><li>Dynamic, visual content, UI </li></ul><ul><li>SEO, SEM always supported </li></ul><ul><li>Sharing, linking relevant contents </li></ul><ul><li>Active participation, engagement </li></ul><ul><li>Social media in use </li></ul><ul><li>Up-to-minute info </li></ul>
  11. 12. Training sessions <ul><li>The problem was not tecnology but people </li></ul><ul><ul><li>Social media cannot be outsourced.. </li></ul></ul><ul><li>Digital marketing team was set up </li></ul><ul><li>All employees were invited to learn more about </li></ul><ul><ul><li>Social media (kick-off) </li></ul></ul><ul><ul><li>Wikipedia </li></ul></ul><ul><ul><li>Facebook </li></ul></ul><ul><ul><li>Blogs, microblogs </li></ul></ul><ul><ul><li>Social media marketing </li></ul></ul><ul><ul><li>Online videos </li></ul></ul>
  12. 13. Valio’s vision 2015 <ul><li>“ Valio is an international forerunner , among food producers, in digital and social media and utilizes it actively in supporting its business and strategy.” </li></ul><ul><li>What does this mean? </li></ul><ul><ul><li>Valio offers best services for consumers in target markets </li></ul></ul><ul><ul><li>Valio understands and is connected with consumers’ lives and current phenomena </li></ul></ul><ul><ul><li>Valio is active in developing new innovative, value creating services </li></ul></ul>
  13. 14. Guidelines and support
  14. 15. Online forums 04.10.10
  15. 16. YouTube
  16. 18. Facebook <ul><li>Valio has two main sites where consumers and fans are activated and made visible </li></ul><ul><ul><li>Valio, 6.000 fans </li></ul></ul><ul><ul><li>Maito – kansallisjuoma, </li></ul></ul><ul><ul><li>22.500 fans </li></ul></ul><ul><li>In total Valio has nearly 80.000 fans in facebook </li></ul>04.10.10
  17. 21. 04.10.10
  18. 22. © Valio Oy 04.10.10
  19. 23. Twitter 04.10.10 Valio employs Twitter mainly for linking materials and news. More emphasis in Sweden and US than Finland.
  20. 27. Valio LinkedIn
  21. 29. Valio Consumer Council 04.10.10 Valio created a consumer council, where people are asked for feedback, ideas and comments
  22. 31. Netnography = (Inter)Net + (Et)nography <ul><li>Social media research method </li></ul><ul><ul><li>For gaining understanding and business insights </li></ul></ul><ul><ul><ul><li>What consumers do and aim for, social practices, rituals, meanings, values and language </li></ul></ul></ul><ul><ul><ul><li>Deeply contextual insights and holistic view on consumer behavior </li></ul></ul></ul><ul><ul><ul><li>Makes use of natually occurring data in the net </li></ul></ul></ul>© Valio Oy 04.10.10
  23. 32. Netnography in brief © Valio Oy 04.10.10
  24. 33. Measurement of online buzz © Valio Oy 04.10.10
  25. 34. © Valio Oy 04.10.10
  26. 35. Valio ranks 2nd in online buzz
  27. 36. Valio, the most postive youth brand 2010 © Valio Ltd 04.10.10 19 th March 2010 Source: 15/30 Research
  28. 37. Valio, the most postive youth brand 2010 <ul><li>Brand with most postitive feelings </li></ul><ul><li>Valio 5,7 % </li></ul><ul><li>Pirkka 5 % </li></ul><ul><li>Fazer 4,5 % </li></ul><ul><li>Nokia 4,5 % </li></ul><ul><li>Rainbow 3,3 % </li></ul><ul><li>Apple 3 % </li></ul><ul><li>Marimekko 2,3 % </li></ul><ul><li>… </li></ul><ul><li>Most authentic brand : </li></ul><ul><li>Valio 15,7 % </li></ul><ul><li>Fazer 7,3 % </li></ul><ul><li>Marimekko 4,3 % </li></ul><ul><li>… </li></ul>(Results based on a youth study, 15-30 yo respondents (n=5263), spontaneous response, unaided brand questions) 19 th March 2010 Source: 15/30 Research
  29. 38. Key takeaways <ul><li>The ”boring stuff” of social media marketing is the most crucial from business success perspective </li></ul><ul><ul><li>Training employees and teams </li></ul></ul><ul><ul><li>Development of company principles, rules and guidelines </li></ul></ul><ul><ul><li>Gaining support from top management </li></ul></ul><ul><ul><li>Gaining access to social media (from IT!) </li></ul></ul><ul><ul><li>” Doing” social media marketing requires continuous ”doing” </li></ul></ul><ul><ul><li>Measurement and evaluation of activities </li></ul></ul><ul><ul><li>Linking social media marketing to ”actual marketing” </li></ul></ul>04.10.10