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Marketing in the Digital World

Zeropoint Compression

Dörr, Pauline
Oppong Asamoah, Grace
Nawafla, Ahmed
Halilovic, Marcel

April 2020
Color Coding

Pauline Dörr: Red

Grace Oppong Asamoah: Green

Ahmed Nawafla: Blue

Marcel Halilovic: Purple

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Table of Contents

1 Introduction......................................................................................................4
2 Company Description......................................................................................5
3 General Information.........................................................................................6
4 Preliminary Investigation..................................................................................7
4.1 DESTEP - Analysis...................................................................................7
4.2 SWOT – Analysis & Matrix.....................................................................10
4.3 Conclusion..............................................................................................13
5 Action & Implementation Plan.......................................................................14
6 List of References..........................................................................................19

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1 Introduction

Nowadays, due to globalization, an interconnected world has been created


through tools such as the internet, customers share products and services they
liked or disliked. This new concept of living has caused businesses to reframe
their marketing strategies. That is today known as digital marketing. Digital
marketing is the universal term to summarize marketing channels and methods
used to promote products or services on the internet or any electronic devices.
In the class of Marketing in a Digital World, the students were challenged to
apply the theoretical part of the lessons into the practical measure by working
with Finnish companies. The group consists of four exchange students with
different backgrounds. Three of the four members are from Germany, and the
fourth member is from Palestine. Although in this group, one culture seems to
outweigh the other, it did not limit the teamwork. The team decided to work with
a company named Zeropoint that was founded in 2009. Zeropoint produces
sustainable compression clothes. Our contact person throughout the research
was the Digital Marketing Manager of the company, Joonas Kyllönen
[ CITATION Ale20 \l 1031 ].

In this report, the company Zeropoint will firstly be described then the
company’s current situation, afterward, the action plan will be outlined and
lastly, the implementation plan explained.

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2 Company Description

Zeropoint is a private Finnish company, that was founded in 2009 in Jyväskylä


by university graduates. It mostly focuses on compression clothes. The reason
why Zeropoint is the world leader in sustainable apparel is that the nylon which
is used for their products is provided by their partner Econyl. Econyl consists of
100% recycled materials e.g. old carpets, plastic components, and fishnets.
Currently, 85% of Zeropoint’s clothing is recycled materials. But for the future,
their goal is to use 100% recycled materials by the year 2021. On top of that,
Zeropoint is also very local as its products are designed in Scandinavia and
produced in Europe. The company is spread globally throughout various
European countries especially the Nordic ones. The company is a partner of the
Olympic Team in Finland. Due to this partnership the company set a high focus
on the diversity of its products that are usable for any type of sports.
Furthermore, they believe in transparency and corporate responsibility and
therefore take care of the entire production chain. The company has
distributors/retailers in Switzerland, the UK, Hungary, the US, Japan, and
Korea. In Finland, their products are sold in multiple retail outlets including
Intersport, Top Sport, Stockmann, and Budget Sports.
To conclude their overall aim is to be inclusive, approachable and accessible for
everyone [ CITATION Zer20 \l 1031 ], [ CITATION Zer201 \l 1031 ], [ CITATION
zer18 \l 1031 ].  

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3 General Information

After outlining the company’s history and business model, the focus will be held
now on its current situation which is portrayed through Social Media.
Zeropoint has an Instagram account, a Facebook profile, and a website.
On Instagram, they have several accounts specified according to countries and
one main page. Currently, they have on their main page 7.007 (end of march)
followers but it is highly likely that they have a decrease in followers because at
the beginning of March they had 7.122 followers on their Instagram main page.
But that is not the same for their Finnish Instagram account. The Finnish
account has 3.515 followers (end of march) and at the beginning of March, it
had 3.457 followers.
They also have an account for the United Kingdom and for Switzerland. 
The problem with the decrease they have also with the page likes on Facebook.
They have their 21.296 (end of march) people who liked the page and at the
beginning of March, it was around 22.000 people. But going back to Zeropoint’s
Instagram account, it is heavily Influencer based. Their posting is not regular,
and they have one IG TV Video. 
What we found out in our preliminary investigation is that there is no real order
in their feed and that the engagement rates are not very high as they regularly
just get 40 to 120 likes on each post with a follower number of over 7.000. What
they have is several Story Highlights and an integrated shop on their
Instagram. 
The website they have is available in both languages Finnish and English with
the same content. Zeropoint uses advertising pop-ups and they explain their
meaning of compression and how they use sustainability in their company and
educate about their vision on sustainability. Furthermore, the website has a
clear structure when it comes to the user experience as they have distinguished
men and women sections, easy use of filters and minimalistic and
understatement design [ CITATION Zer201 \l 1031 ], [ CITATION Zer202 \l
1031 ], [ CITATION Zer203 \l 1031 ].  

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4 Preliminary Investigation

1.1 DESTEP - Analysis

This DESTEP-Analysis will not make use of all the aspects it usually covers,
because they are not relevant for the research.
The political aspect will not be covered, due to the fact that Finland is a
politically stable country and is not facing any threatening issues, that will affect
the business.
Another aspect that is not going to be covered is the technological part because
in the fashion industry it is not that relevant.

Demographic:

Finland is located in the north of Europe; it is one of the Scandinavian countries.


The total population count in 2020 for Finland is 5.537.704 people, which
means that in terms of the population Finland is a relatively small country, at the
moment it is placed at 116th place in the world. The population is distributed
quite equally between men and women, there are 49% men and 51% women
[ CITATION Wor201 \l 1031 ]. When it comes to the age distribution there are
16% from the age between 0 - 14, 62% are from the age between 15 - 64, 19%
from the age of 65 - 84 and 2% are older than 85 [ CITATION Sta202 \l 1031 ].
In addition to that, the Finnish population is one of the oldest populations among
the whole of Europe, also it is expected to continue to heavily age. It is
expected that the Finnish population will have a share of 30% of people that are
over 65 by 2060 [CITATION Fin20 \l 1031 ]. Currently, the annual population
growth rate is at 0,15%, by 2050 this growth rate will be only at 0,1%, which
means the population of Finland is not expected to really grow in the future.

Economic:

Finland's economy is in a stable situation, however, that might be affected by


the COVID-19 crisis, but it is still too early to review that. The expected GDP in
Finland for 2020 is 295.50 billion US $, which means it has the 45th highest
GDP in the world. The GDP growth rate from 2019 to 2020 is 1,6%. Another
very important part in examining the economic health of a country is to take a
look at the disposable income per capita, it illustrates how much money a
person is able to spend after taxes and social security charges. In Finland, the
disposable income per capita is 30.000 €, which is quite high and the Finnish
population has enough money to spend on free-time activities, clothing and
other non-vital product and services [ CITATION oec20 \l 1031 ]. Also, when
considering the client's branch, which is the Finnish sportswear and outdoor
market it is to say that it offers a good opportunity in the future. In 2020 the
Finnish sportswear and outdoor market are expected to create a revenue of 350
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million US $. In the next four years, this market is expected to grow by 14,3 %,
which means that in 2024 the revenue create by this market will be 400 million
US $ [ CITATION Sta203 \l 1031 ].

Social:

The social aspect of the DESTEP-Analysis especially focuses on the consumer


behavior in Finland and their social habits. This will especially focus on the
behavior of Finnish people in regard to sports. First of all a lot of people in
Finland are regularly working out or doing some kind of exercise, to be exact
82% of the Finnish people are regularly doing sports, the remaining 18%  of the
population is not doing any kind of sports [CITATION Yle20 \l 1031 ]. The
Finnish population values good quality very high, it is one of the main aspects
that lead to whether they purchase or not. In addition to that the brand image
and the origin of the products really matter to them, they prefer to purchase
from domestic brands. Finnish people mainly make only small purchases via the
internet, on the other hand, they like to buy bigger purchases in physical stores.
This can also be seen in the fact that malls in Finland become more and more
popular. 7-10 % of the retail market’s revenue is created online, the rest is
created traditionally by physical stores and malls. Sustainability is a highly
uprising trend in Finland, a lot of people are aware of climate change and
therefore look for sustainable ways to meet their needs. Social media is another
trend the Finnish population is really keen on, there are currently 60% of the
population that use Social media on a regular base [ CITATION San20 \l
1031 ]. 

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Ecological:

Finland is a country that is taking sustainability very seriously and is already


quite advanced when it comes to developing solutions for pollution, greenhouse
emissions and recycling. The Finnish government also puts a lot of financial
resources into research and development, in order to find solutions and
innovations to act sustainable. The forest is treated as a valuable resource,
which lead to the fact that the number of trees increased over the last years.
Finland has already made strides in developing energy-efficient systems and
technologies: the country is expected to be one of the fastest-growing
renewable energy markets in Europe over the next five years and wants to be
one of the EU’s leading users of renewable energy per capita by 2020. Due to
the measurements the Finnish government undertook, the air quality around
industrial areas has been greatly improved. Besides this, the measures also
lead to the fact that a lot of polluted lakes and rivers have been cleaned
[ CITATION UKE17 \l 1031 ] .

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1.2 SWOT – Analysis & Matrix

A SWOT Analysis is a technique for assessing the four aspects strengths,


weaknesses, opportunities, and threats of a business. 
The Analysis is made to assess the business’s current situation before deciding
on any new strategy. Through the SWOT Analysis things that work well and that
are not so good can find out [ CITATION Min20 \l 1031 ]. Those findings will be
portrayed in the following table where the four aspects are expressed and, in
the SWOT, -Matrix.   

Strengths Weaknesses

 Sustainable   No usage of a lot of digital


 Easy usage of the website  channels
 Well-structured website  Do not have a blog 
 Use of all tools that Instagram  Repetitiveness in the content on
provides Instagram 
 Although no retail shop, through  Built a target group that consists
B2B products can be found in of athletes 
shops (e.g. Intersport)  Sustainability not portrayed
enough on social media  

Opportunities Threats 

 Sustainable clothing trend is on  Malls are getting popular 


the rise → Zeropoint an online shop
 Getting verified as a sustainable  The Finnish population is aging
company (long term) 
 A sustainable lifestyle is getting  Coronavirus → people don’t go
more and more popular  to the gym, shops are closed 
 82% of the Finnish population  Sustainability becomes more
does regularly sports and more popular → more
 Finnish people prefer domestic competitive companies 
products than imported ones 

Starting with the strengths, Zeropoint has a major advantage on the sports
clothing market with the fact that they are sustainable. The company uses 85%
recycled materials and even has the aim to use 100% recycled materials by the
year 2021. Their website is well-structured and therefore easy to use as they,
for example, use pop-ups and well-highlighted categories where products are
easy to find. What Zeropoint also is doing well is the fact that they utilize all
tools on Instagram that this social media platform provides. They use stories
and make highlights out of it, they post regularly on their feed and have an
integrated online shop. Furthermore, they have an IG TV Video. Lastly,
although Zeropoint does not have any retail shops, the company’s products can

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be found in shops like, for example, Intersport or Stockmann as they have a


B2B sale [ CITATION Zer202 \l 1031 ][ CITATION Zer201 \l 1031 ].

When it comes to the weaknesses it can be seen that Zeropoint does not use a
lot of digital channels except from Instagram, Facebook, and their own website.
For the future, they could use Twitter which is good for promoting e.g. a blog,
this leads directly to the next weakness, Zeropoint has no blog. Additionally,
they have some repetitiveness on their Instagram feed that leads to confusion
of the customers. One major weakness of the company is the fact that they
have built a target group that consists of athletes who are either professional or
semi-professional, which does not focus on a bigger audience, for example,
amateur or hobby athletes. The last weakness of Zeropoint is that they do not
portray their sustainable part enough on their social media channels as
Instagram and Facebook [ CITATION Zer203 \l 1031 ][ CITATION Zer202 \l
1031 ].  

Searching for opportunities it is clear to see that Zeropoint has a major chance
with sustainability as the sustainable clothing trend is on the rise and more and
more consumers become aware of the fact that production of clothing has a
very bad impact on the environment. In addition to that, the sustainable lifestyle
is getting more popular and which means Zeropoint could get verified as a
sustainable company by applying for the seal of approval. Furthermore 82% of
the Finnish population does regularly sports that is good for their business as
they are a company that provides sports clothing. For the last point that could
be an opportunity for Zeropoint is that Finnish people prefer domestic products
than imported ones [ CITATION NNA19 \l 1031 ], [ CITATION Dan13 \l 1031 ].

Coming to the last point of the SWOT-Analysis, the threats. Malls are getting
more popular in Finland but Zeropoint just has an online shop and no retail
shop. The next threat could be that the Finnish population is aging seen in the
long term, which means that the target group of young, athletic people will
break. Furthermore, because of the fact that sustainability becomes more and
more popular, there could be more competitive companies in the future. The
last threat is caused by the Coronavirus that is currently limiting all processes in
the world and the world’s freedom. People do not go to the gym and shops are
closed. This will have an economic impact on the company [ CITATION Fin20 \l
1031 ]

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SWOT-Matrix

Strength + Opportunity:
Zeropoint is having 85% of recycled clothes, which is very sustainable. This
then goes hand in hand with the current trend and the development of the
Finnish customer behavior to strive more and more towards sustainable and
eco-friendly products. Zeropoint could get verified as a sustainable company as
applying for the seal of approval. 
Strength + Threat:
Malls are getting more and more popular among the Finnish population and
although Zeropoint focuses on online shops and does not have a retail shop,
through B2B the company’s products can be found in shops like Intersport or
Stockmann. 

Weakness + Opportunity:
The company has built a target group that focuses mostly on athletes that are
professionals or semi-professionals, however, 82% of the Finnish population is
regularly doing sports. This means the company’s products can be spread
among a much bigger audience if they would also target amateur or hobby
athletes. The company does not portray its sustainable aspect enough on social
media, sustainable living is turning more and more into a lifestyle that people
share on social media platforms.

Weakness + Threat:
The production of sustainable apparel becomes more and more popular for
companies which means that there will be more competitive companies.
Therefore, Zeropoint should focus more on their social media platforms as
currently, they do not portray the sustainability part enough on their social
media channels.

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1.3 Conclusion

All in all from the findings of the DESTEP and SWOT-Analysis can be
concluded that Finland offers great potential and a lot of opportunities. The
Potential in Finland can be seen in the high amount of people that are doing
regularly sport, 82% of the population is doing sports on a regular basis, which
is very good considering that Zeropoint relies on people that do sports.
Therefore, there is a huge number of potential customers in Finland. However,
Zeropoint mostly focuses on professional and semi-professional athletes, which
can be seen on how they promote their sportswear on social media platforms,
such as Instagram, therefore they miss out on a lot of amateur and hobby
athletes. Another aspect that shows the potential of Finland as a market is that
the Finnish population has a high annual disposable income of 30.000 US $,
which indicates that the Finnish population is wealthy and therefore is able to
spend money on non-vital products, such as Zeropoint’s sportswear. The
Finnish consumer behavior is moving more and more to purchasing sustainable
awarely, which means the Finnish population is aware of climate change,
because of that they try to meet their needs without having a bad impact on the
environment, even when this means they need to pay more money for the
product. This perfectly goes hand in hand with the value of Zeropoint, which is
to act responsibly and produce their products with recycled materials. The
Finnish population is still keen on offline shopping, which can be seen in the fact
that malls are becoming more and more popular. Even though Zeropoint is
putting a lot of emphasis on its online store, the customer can still find
Zeropoint’s products in offline stores such as Intersport or Stockmann.

To sum up Finland is a great market for Zeropoint that offers huge potential,
and this is even growing in the next 4 years, it is expected that the sportswear
market is going to increase by 14,3% in Finland by 2024. Overall Finland offers
great opportunities that Zeropoint can make use of very easily.

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5 Action & Implementation Plan

The last part of this report will list measurements that could be taken to improve
Zeropoint’s operation. The following questions were given by the contact person
of the company, Joonas Kyllönen. To explain the way of proceeding, it should
be mentioned that the 1. action fits with the 1. implementation, the 2. Action with
the 2. Implementation and so on. This applies to all questions. Furthermore this
action plan is based on the 5 classes of consumer motives in brand consumer
engagement.

A) How can we promote sustainability more on our website and on our


ads?

Actions:

1.Work together with sustainable organizations that can certify the sustainability
of Zeropoint’s products. If there is an approval of these organizations, Zeropoint
can showcase it on their product packaging and on their website.

2.Focus heavily on creating content that shows that your products are recycled,
and how your brand has so much care for nature as that would attract so many
people. Create videos showing the recycling process and how your products
are made.

3.Gain as much engagement as possible on your social media channels,


because this will lead to higher traffic and engagement on your website, where
people can see all the promotion of the sustainability that is already well done
on the website.

4.Showcase your vision and plans more on your website.

5.Promote your website and social media pages consistently, having a long-
term plan for that would greatly help your brand.

Implementations:

1.Contact greenpeople.org to register in order to gain the seal of approval


(http://www.greenpeople.org/seal-of-approval.cfm) + Give background
information about this seal. This would be a great way to win the interest of a
new audience for your brand, in addition to future possibilities of collaborating
with other companies and organizations that share the same vision on nature
and clothing production, and more.

2.Film a clip of how the production of Zeropoint’s products look like and focus
on the recycling products. Post more than one video on different products and
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try to show your vision for the future through these videos. This emphasizes the
product information motive of the customer and therefore can increase the
engagement.
2.1 Make a video of people that are experts or care about sustainability
(for example influencers), which explains why Zeropoint is a great
sustainable product. This would be a great way to expand your audience
and increase your sales, the more influencers you can work with the
more exposure your brand is going to get. Try focusing on collaborating
with influencers for a -long-term plan, because the results are not
guaranteed in the beginning. 
3.Like (and reply) to all the feedback you get. This would be a good way to try to
keep the people who have engaged with your products on the website to come
back and check your page again in the future.  
4.Create a blog section on your website, where you can for the beginning post
one article per month, in which you inform the customer about future goals
(such as the aim to use 100%  recycled material by 2021) and visions and the
current update on them. You can also include your working process
experiences, and how the brand started and so on. These things will be a good
addition to your website as it would give a more humanitarian aspect for the
website and the products. Consumers learn more about the value of the brand
and therefore the consumer can identify with the brand, which leads to a greater
engagement.
5.Make a long term social media plan, where you plan on what content needs to
be posted on what day (this also includes special sales events, etc. not only
content that promotes sustainability), in addition to that you should find out with
the help of the analytics from your account on what time your audience is the
most active. Depending on that you should post by the time when the audience
is most likely to engage and to view your content, this will help to increase the
reach of the post and therefore increase the impact of the posts.

B) How can we make customers create social media content for us? What
encourages our customers to tag our products on their stories, share the
benefits of our products on their posts and send us quality pictures of
them using our products?

Actions:

1.Contest for the best picture.

2.Already a lot of people tag Zeropoint in their posts, therefore Zeropoint should
continue working on their current strategy in this regard.

Implementations:
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1.Post an announcement for a contest, where people can post a picture of them
wearing Zeropoint clothing and can tag the Zeropoint Instagram page. Then the
community can vote for the best picture and the top 3 pictures can get some
rewards from Zeropoint such as a gift card or a free product. You can also use
this method on a regular base especially during the sales and holiday times, as
it will give you additional exposure to your brand. This focuses on the incentive
and promotion aspect of the consumer motives for engagement, due to the
reward the consumer might win, they are mobilized to engage with the brand.

C) What kind of content (pictures or videos) we should post on our


Instagram feed and stories?

Actions:

1.Follow the trends and what is happening around us in the world and relate
them somehow to your brand.

2.Posting different content to keep the audience interested in following your


social media pages, and to avoid repetitiveness which does nothing but harm to
your engagement.

3.Focus heavily on creating content that shows that your products are recycled,
and how your brand has so much care for nature as that would attract so many
people.

4.Post content that created the most engagement previously for you. Also
create content that includes questions, in order to create engagement.

5.Post engaging content on your stories.

Implementations:

1. Following the trends and the popular hashtags are very important for your
brand exposure especially in the first stages when you are building an
audience. What you can do, for example, in the current situation with the
Covid19, you can post At-Home workouts showing your products and maybe if
you can get an influencer to do that it would be of great help, this will show your
ability to adapt to every situation. We would also suggest that you create a
Twitter account too because it is one of the best platforms to engage with the
trends and the followers.

2.Reviewing your feed and see what type of content is repetitive and do not
post the same kind of content in the next few weeks, to avoid heavy
repetitiveness in your feed. Following the trends which are mentioned in point 1
can be quite helpful to give your content versatility. One other thing that you can
do is posting videos in your feed because we have noticed that your content is
mostly photos.
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3. Create videos showing the recycling process and how your products are
made and have interviews with scientists and experts in these videos talking
about the importance of what you are doing.

4.Review your feed once again and see what type of content created the most
engagement and post similar types of content, however, it should not be
repetitive, so only do it from time to time.  Also, in order to post engaging
content, there can be posts that include questions like what colorway of a
certain product is the customers favorite, or what types of clothes are the
customers favorite.

5.For your stories there are a lot of engaging features offered by Instagram
such as the poll system, where you can ask the followers to choose between
different options (colorways, type of clothing, etc.) or there is the option to let
the audience ask questions and the answers can be then posted in the story,
also this does not need to be concerning the brand, but about life in general
such as sustainability, sport or current events.

D) How can we encourage our customers to write product reviews on our


website?

Actions:

1.Reply to reviews.

2.Keep reminding customers to write a product review.

3.Adjust the review function (not that easy to find on the website).

Implementations:

1.Reply to all product reviews in order to encourage order customers to write


some to the feedback you get on your website.

2.Send follow up emails to remind the customer to write a product review until
they finally write one. The timing of these emails is so important, try to send
them in the time you think most of your audience will not be so busy at and
don’t send many emails because then it will cause more harm than good.

3.Add the review function below the product → should be immediately seen
without clicking on the review button. Many people are just used to scrolling
down to look at the comments and reviews, and the reviews section should be
the very visible and in-your-face type of section. 

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19

Zeropoint Website. (2020). Von https://www.zpcompression.com/this-is-


zeropoint/ abgerufen

Pauline Dörr: Red, Grace Oppong Asamoah: Green, Ahmed Nawafla: Blue, Marcel Halilovic: Purple

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