TURIBA UNIVERSITY

BUSINESS ADMINISTRATION FACULTY

Sainath BalasaniMBA Group-UMA1V22

PRACTICE REPORT[Stockmann]

Marketing Department

BUSINESS ADMINISTRATIONAdvisor: Vita Zariņa

Riga, 2016

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ACKNOWLEDGEMENT

I wish to acknowledgment the help of all those who have provided me information,

guidance another help during my internship period. Without their help it would

have been difficult to have reached this state of completion of my project report. I am very thankful to MRS. KARINA JERMUS Marketing manager of stockman

group for giving me their valuable advice and guidance towards fulfillment of the

project. In writing this project report, I have drawn on thoughts from a variety of

discipline that has bearing on the different facts of the topics. I own a profound

intellectual debt to Turiba University to contribute my thinking on this subject. I

would like to give heartily thanks to STOCKMANN. Who have given an

opportunity to learn something practical apart from books by including the in-plant

training in my MBA PROGRAM .We are also thankful to all our family members

and our friends who are help to make this project successfully.

I am also grateful to the Human Resource Department of Stockmann group for

granting me the opportunity to make my internship program in this organization.

My sincere thanks to Ieva Bruksle and Vita Zarina for supporting me to purse my

internship.

And even, I thank my colleague Anna Abenes for supporting me all the time when

I have doubts in my internship.

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Contents

EXECUTIVE SUMMARY....................................................................3

1. INTRODUCTION OF PROJECT...........................................................6

1.1 Introduction to Stockmann.......................................................................................................................... 6

1.2 History......................................................................................................................................................... 7

1.3 Company overview....................................................................................................................................... 9

1.4 For a more sustainable future or Future Manifesto...................................................................................10

2. STRATEGIC PLANNING PROCESS OF STOCKMANN GROUP....................11

2.1 Planning process of the Stockmann Group................................................................................................11

2.2 Suggestion for planning process of CSR strategy.......................................................................................13

2.3 Values......................................................................................................................................................... 14

3.0 HUMAN RESOURCES PROCESSES IN THE STOCKMANN GROUP.............15

3.1 ISSUES IN RETAIL HUMAN RESOURCE MANAGEMENT........................17

3.2 Management psychology – Stockmann......................................................................................................18

3.3 Labor relationship in Stockmann............................................................................................................... 19

4.0ASSESSMENT FOR MARKETING......................................................20

4.1 Marketing Environment Stockmann.......................................................................................................... 20

4.2 Marketing flow description:....................................................................................................................... 20

4.3 Marketing Strategy.................................................................................................................................... 20

4.4 Recommendation and conclusion for improvement...................................................................................24

5.0 ASSESSMENT OF BUSINESS-RELATED LEGISLATION AND THE COMPLIANCE PRINCIPLES IN THE COMPANY........................................24

5.1 Legislation.................................................................................................................................................. 24

5.2 Income tax.................................................................................................................................................. 25

CONCLUSION AND RECOMMENDATION...............................................25

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Executive Summary

My internship, which lasted 14 weeks, was done in a multinational company Stockmann

group in department and retail store in Riga, Latvia. I found this marketing internship on a

website gathering internship offers from all over the world. After looking for the ones which

could be appropriate for the degree, I sent my application for a quite large number of them. I

finally received a positive answer from this company. The internship responded to the range of

application in which the skills I acquired during my previous years of studies and experience

could be useful. The company, which has for main activity services of consumer and marketing

for other firms as well as for individuals.

World retail sector is witnessing one of the most hectic Marketing activities of all times.

The companies are fighting to win the hearts of customer who is” God „said by the business

tycoons. There is always a first mover advantage ‘in an upcoming sector. Here, that advantage

goes to ―STCOKMANN. It has brought about many changes in the buying habits of people. It

has created formats, which provides all items under one roof at low rates, or so it claims! .In this

project, I have studied its marketing strategies and promotional activities

A promotional strategy for marketing of Stockmann helps us to understand the effect of

promotional strategy which is responsible for attracting customers towards Stockmann .This

study is helpful to top level management to improve the present promotional strategy of

Stockmann. Author explain strategic planning of the company, what is the improvements need to

made for future development of the company. About my professional ambitions, my objective is

to work, in the future, for a company which would have international relations, so that it can

keep being in a multicultural environment.

With opportunity to use some of the theoretical knowledge which acquired during the

studies so far in fields such as marketing, management and human resource. It realized different

kinds of work tasks and worked with other interns from different countries and backgrounds, so

this internship was for author, to improve one’s adaptability, to get use to respect deadlines, and

to broaden the horizons by meeting and working with persons from different cultures. It will

develop the experience gained a little bit more in the conclusion of this report.

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With ample time of 14 weeks,It has learned as much as theoretical and practical

knowledge on Marketing and Human Resources. There are even more fields in retail industry to

gain knowledge. Stockmann has given me much international experience on marketing.

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1. Introduction of ProjectAs a part of my study of MBA program, it was given capstone internship to develop my

analytical faculties as professional student. In relation to the aforementioned objective the project

undertaken by me covers marketing analysis. The study converges on major giants in global

market and Baltic and sacnadavian countries:

1. Stockmann

Why has this industry/topic been selected?

One’s a customer get inside the store he will find all kinds of products available that may

be Food item, Cosmetic, Electronic, Garments, Furniture etc.

Because of these features it has a very good reputation in that area and customers who are

residing far away and in other areas they also visit the store.

This department is responsible for the product arrangement at the store with respect to

their nature.

This department is responsible for the maintenance of the systems of the stores.

1.1 Introduction to Stockmann

Stockmann is a Finnish listed company engaged in retail trade with presence across

multiple lines of business, the company owns and manages multiple retail formats that carter

wide cross-section of the western society and is able to capture almost the entire consumption

basket of the consumer. Stockmann Head quartered in Finland, the company operates through

500 stores in 18 countries .It has almost 52000 shareholders and 9000 employees. The

Stockmann group revenue is 2015 was Euro1434.8 million.Stockmann establishes in 1862 and

celebrated 150th anniversary in 2012.It owns and operate multiple divisions of retail fashion

chain and real estate. Stockmann retail forward into modern retail in 1862 with the continental

department store within couple of years Stockmann has various no of branches in Helsinki and

the nearby districts. The new department store that is still beyond compare was completed and

opened its doors to the public. Among the continental finesses the department store had were e.g.

a grand atrium, escalators, a revolving door and the Soda Fountain, a place for customers to take

refreshments on the second floor of the department store. [source:http://www.stockmanngroup.com/en/company-information]

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1.2 History

In 1942 Stockmann’s shares were listed on the Helsinki Stock Exchange.

In 1955 Stockmann became a Ford dealer. Over the years Stockmann has also sold

Volkswagen, Audi and Skoda car brands. The car business was sold in 2006

In 1986 Stockmann pioneered modern Loyal Customer marketing. Another first was a

cash card, which was introduced for the first time in Finland. Stockmann had already had

account customers for several decades. The first "Crazy Days" were held in April, and

they have been a giant success time and again.

In 1988 Stockmann purchased the Seppälä companies, which run a chain of fashion

stores.

In 1989 the first Stockmann stores in Russia were opened in Moscow. The Argos

enlargement was opened on 4 May 1989

Fig 1: Stockmann today: over 500 stores in 16 countries, operations in 21 countries

[source:http://www.stockmanngroup.com/en/en]

In late 1990’s company took various no of steps to open its roots to fashion and

electronics, where clothing and home appliances stores were open in Helsinki and Tallinn

in 5 stored building.

In early 2000 online site was introduced to consumers by Stockmann and quickly

developed into Finland’s leading online sites for consumers.

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In 2002 first store of Zara fashion chain in Helsinki and 1st shop of Stockmann beauty

cosmetic chain were opened

In 2003 Stockmann had opened its store in Riga with all fashion and electronic

appliances first sepal store was opened in Latvia

In meanwhile Stockmann entered into operation agreement with Nike of Russia on

setting up a store in Russia this operation lasted until 2010

Lindex opened its first store in in Russia and Finland Seppälä opened its stores in

Ukraine, Poland and online stores in Finland

In 2011 Lindex opened its online store in 28 countries with lindex.com

In 2012 due to 150th anniversary stockman group introduced a new organizational

structures in June and established a new fashion chain division, which includes all current

operation of Lindex and Seppälä.

Since 2013 Stockmann has 2 divisions: Department store division and Fashion chain

division

In April 2015 stockman sold its Seppälä subsidiary to its owners.[source:http://www.stockmanngroup.com/en/history]

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1.3 Company overviewStockmann has its own group which was organized by the Finland and which is imposed to all its

branches around the world which has divisions and supports functions

Company information

Fig 2: Organizational structure of Stockmann [Source:http://www.stockmanngroup.com/en/company-information]Stockmann Group Operates as a Departmental store. The company offers fashion and general

merchandise including home furnishings, utensils, crockery, cutlery, sports goods, electronics,

toys, footwear, men's and women's apparel, accessories such as sunglasses, watches, and

handbags, luggage, fruits, vegetables, and stationary products. Stockmann group was founded in

1862 and is based in Helsinki, Finland.

Stockmann's operating structure under three divisions: Stockmann Retail, Real Estate and Lindex

Table: 1 Main view of Stockmann group and Divisions[Source:http://www.stockmanngroup.com/en/divisions1]

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Stockmann groupFinance&LgalSupply chain

Stockmann RetailDepartmentsdelicatesian

stockmann.com

HR Marketing

Digilistationation

Real estate5 proprties in

helsenki,tallin riga and st petrburgh

ICT Internal Aduict

LINDEXAprox 450

fashionn stores lindex.com

Communitors and CSR

Hobby Hall

1.4 For a more sustainable future or Future Manifesto

‘Future’ the word which signifies optimism, growth, achievement, strength, beauty,

rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet

unwritten; create new opportunities and new successes. To strive for a glorious future brings to

us our strength, our ability to learn, unlearn and re-learn our ability to evolve, Responsibility is

an integral and recognized part of all Stockmann Group's business, supports business targets and

promotes efficiency. Company take measures to reduce the environmental impact of actions,

and offer customers responsible shopping experiences. Company operations are ethical, just and

show respect for environmental values. Responsibility is not only linked to own business but is

an essential part of the whole supply chain. Show respect to customers, personnel, suppliers,

investors, and other stakeholders. Corporate Social Responsibility (CSR) goals are stated in

group-level CSR strategy that is implemented in all business divisions. Company integrate

responsibility into daily work and decision-making of personnel working at Stockmann.

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2. Strategic planning process of Stockmann GroupStockmann has its own strategic process to move forward. A new operating structure

under three divisions – Stockmann Retail, Real Estate and Fashion Chains. Focus on group key

business, Reformed the group key management, an efficiency program are team launched for

consumer stratification, Group long term competiveness. In 2014, Stockmann started a strategy

review process. Employees have been engaged in the strategy work, most importantly through

several strategy working groups, with members from around the organization. Each group is

dedicated to one theme, for example the product selection, the loyalty program or the

Delicatessen food department. To keep personnel involved and in touch with the strategy

process, several strategy briefing sessions have been held. The sessions are supported with

material and news on the intranet, in the internal magazine and via a discussion platform.

In August 2014, as part of Stockmann’s strategy process, a first-of-a-kind organizational

health survey was conducted in all Stockmann’s functions, concerning management practices

and the working environment and atmosphere across the organization. The results showed that

while our employees in Russia and the Baltic countries were fairly content with their

employment, significant improvements were sought among the company’s Finnish employees,

especially in the support functions. Much of the criticism was directed at senior management

rather than immediate superiors, but the survey also showed that staff at Stockmann do care and

want to make a difference and are ready to put their know-how to use and contribute to making

even radical improvements. 

As a result, a large-scale project to promote cultural change within the company was

begun, as a part of the strategy work. A key element of this project was the establishment of a

Change Agent group, consisting of around 50 staff from all teams, functions and levels of the

organization in Finland. In 2014, the group convened for two half-day workshops, with

‘homework’ in between, to analyze the reasons behind low job satisfaction and to generate ideas

for how to improve things. The work is continuing in 2015. 

2.1 Planning process of the Stockmann Group

Stockmann strives to achieve profitable business operations with a long-term view by acting

ethically and responsibly in matters related to people, the economy, society and the environment.

Commitment to responsible operations forms a core part of Stockmann's values and daily ways

of working.

The main view of strategic view

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Picture: 1 Strategy [source:http://www.stockmanngroup.com/en/strategy]

This Code of Conduct, Stockmann's values and Stockmann's management practices

form a framework for the company's procedures and efforts to promote a sustainable

future.Stockmann's Code of Conduct defines ways of working for all employees and

management staff without exception. Stockmann also requires its goods suppliers and partners to

follow the principles of this Code of Conduct. Stockmann's Code of Conduct is supplemented by

more detailed rules and guidelines approved by the Group and its subsidiaries. Such rules and

guidelines may not contradict Stockmann's Code of Conduct.

Planning processStockmann has planning in much systemized way it follows the principle of CSR strategy

CSR( Corporate social responsibility) company values, the code of conduct and the 10 principles

of the united nations .The CSR strategy’s priorities are divided into five themes which create the

structure for company work,

The themes are:

Customers,

Products,

Environment,

Personnel,

Finance and Governance.

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Table 2: CSR strategy

The CSR themes create a systematic and persevering foundation to Stockmann’s corporate

responsibility strategy. Targets that enable monitoring and the evaluation of the success of

responsibility work have been set for each theme.

2.2 Suggestion for planning process of CSR strategyRetail:

Top notch shopping experience in department and online stores, which turn around in

profitability

Real estate: Enhancing customer shopping experience by attractive new tenants which cash

inflow and growing values of properties

Lindex:

Affordable fashion experience that is more feminine, Inspiring, joyful and sustainable which

leads to growth in existing and new market.

As part of the measures to improve company operations, company had to reduce the

number of personnel and working hours. Increasing company operating efficiency will also be

necessary in the future to secure the Group’s long-term profitable growth.

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Customers:

insipiration for responsible chociescustomer dialouge in all documentsrespect the omini channel

Products

hight quality lasting selectionresponsibility for product safteytransparennt supply chain

Enivironment

enegry efficiencenyreduced emission in logisticsminimising and recycling waste

Personal

motivation and enagementlearning workplaceoccupation and saftey &well being

Finance and Governence

ethical operationadded value to all stake holderstockmann value and code of conductun golbal conduct

The economic situation is challenging, and staff are facing many difficult decisions. Changes are

unavoidable, but company general principle will always be to act responsibly towards all our

stakeholders. In the past few years, Stockmann’s CSR work has focused on responsibility issues

in the supply chain, including improvements to working conditions in suppliers’ production

facilities. The retail sector has an important role in these matters. Following Lindex’ example

and as the first Finnish company, which published on company website a list of the factories that

are used to manufacture Stockmann’s own brand fashion products. Seppälä published its factory

list late last year.

2.3 ValuesThe Stockmann Group's values together define the value framework within which the

Group operates and on which its decision-making is based.

Table: 3 Values [source:http://www.stockmanngroup.com/en/strategy-and-values]

Author says stockmann has its values towards the customers and the staff to achieve its

profit towards number one position.

Inspire customers-make customer special and listen and respect customers.

Make decisions-challenge the way of thinking and experimenting the values and improve

from the feedback given by the customers.

Encourage staff-encourage the staff to achieve top results and be in first in retail world.

Responsibility-act responsibility towards people and the environment. And accomplish

through cooperation

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We inspire our customers

Make every customer encounter specialListen to and respect customers

Courage to make decisions

Challenge the way of thinking and dare to experiment.Learn and improve through feedback.

Encourage each other to achieve top results

Motivated by targets and results.Focus on the essential

Responsibility for our promises

Act responsibly towards people and the environment.Accomplish more through cooperation.

3.0 Human resources processes in the Stockmann group Stockmann considers that success depends on the collective effort of entire work force.

Human resource division of Stockmann has comprehensive policy and procedure that practices

best approaches with legal and ethical consideration. The major purpose of human resource

division is to introduce organizational policy and related to interns of Stockmann. It gives

specific guidelines of operation of human resource division with a vision to maintain the

expected standards that are maintained. It also provides specific direction regarding the

assessment, evaluation and long term benefits of interns in Stockmann. It sends a clear picture

about expected standards. The employees get idea of their present status, growth and value

addition process in the organization. The human resource division is a central reference of

employee relations and policies. Each policy is a guideline to be used with discretion,

understanding and management in the spirit in which the policy is written.

The four main activities of the process of Human Resource Management are

Planning,

Recruitment and Selection,

Training,

Performance.

When retailers are applying the Human Resource Management process, the labor laws, diversity

and employee privacy has to be considered.

PlanningBy analyzing the current workforce will allow the company to evaluate the department

performance and helps to realize what kind of staff are required in order to form the skills which

they needed. Company need to employ the right number of staff in order to make the workforce

more efficiency. Too many employees will increase costs, and too few will not able to carry out

of its work. Therefore, retailers have to analyze both current human resources within the retailing

organizations, and future plans or strategies of the organization and the effect on human

resource. However, it is less expensive than the recruitment and selection process. Meanwhile, it

will be helpful to find the employees who already have the skills that the company require.

Recruitment & SelectionRecruitment is the process of identifying the need for a new employee, defining the job and the

appropriate person for it, attracting a number of suitable candidates, then selecting the one best

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suited to the job. When a company is looking for new employees, they tend to use different

channels in order to find the most suitable personnel.

The channels could be educational institution, TV/magazine advertising, agency or any

other channels which is the best way to find the right personnel.

Moreover, when a retail company is looking for middle-management positions, they are

likely to use employment agencies, competitors, advertisements and current employees.

The recruitment process can be very costly. It takes a great deal of time to set up an

effective recruitment process.

Finally have physical examination.

Hiring & Training and development

This process requires the final decision which candidate will get the internship. The

company Stockmann Latvia delivers its answer by phone or email.Those processes that work on

an employee onboard for his skills and abilities up gradation. The company always tries to train

its employees to make them efficient, enhance their knowledge and skills, and be collaborative.

It also involves changing skills, knowledge, attitude, behavior. Orientation and socialization

helps employees to adapt. During the training employees are provided new skills, are kept up to

date with changes in the field, aimed to improve efficiency, can be external or “in-house”. The

company also develops employees for future work and challenges. After recruitment, employees

receive directions from the concerned department stating that what they should do what is

necessary, it is necessary, what are the rules of the company, technical things, hour register, and

must be accounted for and what to do in case of problems. Everyone in the company is ready to

help out and the main objective is to deliver client oriented output.

Motivating Talent – Aligning Goals

Policies and Supervision

Indicate what employees should do.

Behavior Enforced by Managers.

Incentives

Commission, Bonus, Stock Options/

Organization Culture

The set of values, traditions, and customs of a firm that guides employee behavior.

Behavior enforced by social pressure.

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Keeping Talent – Building Employee CommitmentStockmann has it unique type of employee commitments

Empowering Employees

Empowerment is the process of managers sharing power and decision-making authority

with employees

Gives employees confidence

Provides greater opportunity to provide service to customers

Employees are more committed to firm’s success

Creating Partnering Relationships with Employees

Reducing Status Differences

Promotion From Within

Balancing Careers and Families

Flextime, job sharing

Colleague discount cards.

3.1 Issues in Retail Human Resource ManagementWhich consists of managing diversity, growth in legal Restrictions on HR practice of technology

to increase employee productivity.

Table 4: Human resources management

Author says managing diversity in human resources management through diversity training and

support groups and mentoring and career development promotions which reach to consumers.

Growth of legal restrictions for employment, compensation, labor relations, employee safety and

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Diversity TrainingSupport Groups and MentoringCareer Development and Promotions

Managing Diversity

Equal employment opportunity, Compensation,Labor relationsEmployee safety and healthEmployee privacy

Growth in Legal Restrictions on HR

Practices

by new teconologiesUse of Technology to Increase Employee

Productivity

health with the privacy of staff or employee. And use of technology to increase employee

productivity by ads, promotions.

3.2 Management psychology – StockmannManagement psychology is the study and application of knowledge about how People,

individuals, and groups act in organizations. It interprets people-organization relationships in

terms of the whole person, whole group, whole organization, and whole social system. Its

purpose is to build better relationships by achieving human objectives, organizational objectives,

and social objectives.

Author work experiences had prepared me well to fit in an organization and understand

their organizational cultures. So, it was prepared and started performing the very day author

joined as it didn’t take me too long to understand my responsibilities. Author was impressed by

the nice, welcoming ambience and even more with the friendly behavior of the coordinators

which demonstrated that the HR department was successful in keeping a stress free working

environment. They explained and fully assisted me to learn the different systems of the recording

information of the employees. They were very patient with me; needed to improvise because of

which made small mistakes.

The HR Development and Training person was very motivating and appreciative. My ideas,

efforts and work were always acknowledged and appreciated. I was able to make an impression

by my problem solving skills.

The manager even helped author to learn how to be consumer psychologist in retail

industry which is useful to handle the consumers and even with staff. As a consumer

psychologist in the retail industry and department store, author will combine sound

psychological research methodology with business acumen and creativity. By working for a

corporation, an advertising agency, a marketing research firm, or you may contract yourself out

as a consultant.

As a consumer psychologist will require both left-brain analytical abilities, as well as

right-brain creativity. Author must have the ability to create practical studies which produce

credible outcomes for complex issues.

Consumer psychologists need very much:

Confidence to propose and implement projects with authority,

Discipline and attention to detail are essential for driving projects,

The ability to lead a team, maintain good relationships,

Inspire cooperation are essential qualities in this position,

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Working under the pressure of tight deadlines will require to be flexible and even

tempered.

3.3 Labor relationship in Stockmann Working conditions in the retail sector are closely influenced by national labour market

Institutions and employment regulations. Deregulation, especially of opening hours, has

significantly increased liberalization in the sector, although both labour law and collective

bargaining on the one hand and local-level regulation on the other may considerably affect the

final outcome towards increasing local differentiation.

We can observe that in Stockmann the hierarchy is quite present, as the authority of the

CEOs is well respected and it seems quite clear that the repartition of the tasks depends on this

hierarchy, the important decisions are made at the top of the organization and the more basic

decisions only are left to the employees. It is actually the case in most of the organizations in the

Baltic countries in contrary to the Scandinavians countries.

From CEO

“As part of the measures to improve our operations, we have had to reduce the number of personnel and working hours. Increasing our operating efficiency will also be necessary in the future to secure the Group’s long-term profitable growth. The economic situation is challenging, and we are facing many difficult decisions. Changes are unavoidable, but our general principle will always be to act responsibly towards all our stakeholders. In the past few years, Stockmann’s CSR work has focused on responsibility issues in the supply chain, including improvements to working conditions in suppliers’ production facilities. The retail sector has an important role in these matters. Last year we continued our long-term work to improve the transparency of the supply chain. Following Lindex’ example and as the first Finnish company, we published on our website a list of the factories that we use to manufacture Stockmann’s own brand fashion products. Seppälä published its factory list late last year.

2016 will continue to be a challenging year for us, but I believe that together with our staff we can turn the challenges into opportunities. We will continue our long-term work to increase the responsibility of our entire supply chain. We will also continue dialogue with our stakeholders. I wish to thank all our stakeholders for their trust and particularly our customers and staff for their commitment.”

[source:http://www.stockmanngroup.com/en/from-the-ceo]

Even though decisions are made by the headquarters, all the branches will be in

consideration, regarding the discipline in the company is not very strict, but it is not so easy-

going neither as the rules are quite clear.

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4.0Assessment for Marketing

4.1 Marketing Environment StockmannThe Head of marketing department is MRs Karina Jermus, with 19 years of experience

in marketing she is very perfect in her work, with team of 4 people she make everything best to

get huge profits and one of the best marketing manager in Baltic countries.

She will assign and send the task to everyone in Riga as well Baltic States, Marketing

environment is very good in Stockmann, and it mainly based on interns. They recruiting intern

from various parts of the world for marketing.As, a trainee author have learned many things from

her, she is always helpful to author in any doubts and even listened to author with his thoughts

and even suggest author with idealistic thoughts what she have.

4.2 Marketing flow description: Over here, after assessing the market by the marketing department and communicating

with the interested customers, the marketing teams sits with the sales team to assess the

customer’s current requirements and after putting the details onto it, the marketing and sales

team passes this to the administration to take the decision which product or solution is to be

provided to the customers, the admin add their own thought to it by researching and finding the

background of the problems experienced by the customers.

After concluding their outcomes, they pass it to the development department if it is to

be solved by software solutions, and if their outcomes are to be solved by the hardware solutions

then they pass it to the support department, where the support team deploys the products by

Stockmann. And after the development or product deployment is done, and then the payment is

dealt with the customers in presence of the marketing and administration.

4.3 Marketing Strategy The marketing strategy of Stockmann is, the interns have to do the following task assign by

the head,

1. Ideas of promoting and marketing.

2. Helping and listing the team for outline the flow chart of promotion and discounts,

3. Giving advertisement in different sites,

4. Taking surveys,

5. Organizing and participating business meetings.

Ideas for marketing for June to August

• From June to August renew your contact info and get your own LC day -20%

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• Boosting’s (LC day or separate by product groups)

• Cooperation with Musa Motors (-20% for your special shopping day)

Advertisement

They are placing so many advertisements in social media and writing blogs. I had tasks

which were mainly about communicating for the company by posting on social networks, for

example I had to write blog articles and make presentations with different kind of websites and

software.

[Fig: 4 Sample view of Marketing]

These presentations were made to promote the services of the company: I made one

through video scribe software to advertise the company's e-mail marketing campaign to potential

future clients, a PowerPoint presentation about the role logos play for a company, as well as a

presentation in English using pontoon (a free business presentation software, animated video

maker and PowerPoint alternative) of social media presenting why it is useful and important for

companies nowadays. The others that I did were about presenting the service the company

offers, those presentations were only made to be posted online on social networks or blogs.

Survey& Mystery shopping : They are placing so many advertisements in social media and writing blogs. I had tasks

which were mainly about communicating for the company by posting on social networks, for

example I had to write blog articles and make presentations with different kind of websites and

software. And had a nice experience with mystery shopping with 99% result. Author have even

participate in mystery shopping

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[Fig 6: Survey Findings]

Customer service steps

[Fig: 7 Customer service]

Author says the mystery shopping and the survey was 100% success, for food cashier was

approx. 89% and the food and Nonfood was around 80%and even the above pictures shows the

2015 and 2016 departments.

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MiscellaneousWhen I start my internship at stockman it was very much help full to learn many things

like techniques, how to think when promotion comes and reach up to consumers mind, building

attractive posters and banners, team sprit .

A. For Tourists (promotions and discount of 5 % when on visit Stockmann with keychain

of these hotels)

Now company is getting its advertising in relation with 5 star hotels like, Mercure

Radisson blue, by having promotions and sponsoring to many events, digital marketing, and

coupon based system to mobiles, etc.

[Table 5: Hotels for discount]

Business MeetingAuthor use to have various number of meeting in Riga with other department heads,

other department heads use to seek help from marketing team for company profit are promoting

their services in that meeting. Mrs. Karina use to be first to share team ideas about how to get

over the sale season and giving best thoughts to sponsors and promoters and how to design the

sale banners and promotions .

Two tasks:

1. Another of task has been to go to a free guided tour of Riga, which added to the cultural

knowledge we could get, was made for us to evaluate if it might be interesting for the

company to collaborate with the guides.

2. We have another tour to Elkor and the malls in old Riga to see how the promotions and

banners are posted and to know the sales percentage and how the sale is happening.

4.4 Recommendation and conclusion for improvementFrom the 14 weeks of internship author findings, suggestion and improvements are

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Findings

Most of the customers buy their requirement in Stockmann on the basis of Weekly and

monthly basis. Customers realized that Stockmann store provide qualitative

products/service with reasonable price.

At present time Stockmann provide different types of product assortments to the

customers.

Stockmann is a department store and hypermarket as it provides various kinds of goods

like apparels, grocery, stationary, food items, electronic items, leather items, watches,

jewelry, crockery, decorative items, sport items, chocolates and many more. It competes

with all the specialty stores of different products which provide goods at a discounted

rate all through the year.

Stockmann mainly deal with middle income group people who want qualitative product

with reasonable cost.

The customers are given response for most powerful advertisement is Stockmann We can

also interpret that the big-bazaar comparison is more powerful people attract with

advertisement like T.V., Hoarding, newspaper, is most of the part of purchasing by

advertisement.

Suggestions

Stockmann should provide large parking space for its customers so that they can easily

park their vehicles.

The infrastructure is needed to be changed a bit during weekends as heavy crowd comes

in to Stockmann during those days.

Stockmann should keep offers in regular intervals so that there should not be a long term

gap, because offer is the most influencing factor which is responsible for customer

purchase decision

They also concentrate on TV advertisement they should show ads and promotional offers

in a regular interval in languages like English Latvia & Russian.

5.0 Assessment of business-related legislation and the compliance principles in the company.

5.1 LegislationStockmann’s consolidated financial statements have been prepared in accordance with

International Financial Reporting Standards (IFRS), complying with the IAS and IFRS standards

and IFRIC and SIC interpretations in force on 31 December 2015. In the Finnish accounting

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legislation and the regulations issued pursuant to it, International Financial Reporting Standards

(IFRS) refer to the standards and their interpretations that have been approved for application in

the EU in accordance with the procedure stipulated in EU regulation (EC) No 1606/2002. The

notes to the consolidated financial statements are also in accordance with Finnish accounting and

company legislation that supplements IFRS regulations. The information in the financial

statements is based on original acquisition costs. The financial statements are presented in

millions of euros. Legislation with employment law, consumer protection, competition law are

maintained with rule and regulation of the company policy and EU regulations.

5.2 Income tax

Tax expenses in the income statement comprise taxes based on taxable income for the

period and deferred taxes. Taxes based on taxable income for the period are calculated on

taxable income using the tax rate that is in force in the country in which the particular Group

Company is based. With privacy and security issues management has not provide me exact

number of the income tax.

Conclusion and Recommendation

Suggestion for improvementAfter completing internship program, I have come up with some recommendation which

Stockmann for their improvement. These are

1. Even the company is maintained by the Finland, but the promotions should be done

according to nation wise.

2. All employees should speak in English, though their native language is Latvian, but

consumers are from various parts of world, there must be training for the new trainees

who speak in English to make tem perfect in vocabulary.

3. Even the some signs and price labels are in Latvian and Russian ,which are not

understand by many visitors, English must also be written .

ConclusionMy 14 weeks of working experience in organizations such as Stockmann gave me a solid

foundation to understand hardcore corporate culture. Therefore, I was quite prepared to blend

in the department that carried huge responsibilities. And the 14 Week’s internship in

Stockmann has honed by understanding of HR & Marketing in practice. It gave me an

important exposure and an insider look of such an organization. I could use my theoretical

and this practical knowledge of marketing in real practice while participating in many

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discussions. I was actively involved in the department meetings where I shared my

knowledge and views regarding the performance in Stockmann.

ReferencesList of resources used

1. Company page http://www.stockmanngroup.com

2.

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