K-Pop Music Digital Marketing Role in Brazil Case Study: Kim Hyun Joong
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K-Pop Music Digital Marketing Role in Brazil Case Study: Kim Hyun Joong By Patricia Portugal Marques de Carvalho Lourenço Dissertation submitted in Fulfilment of the Requirement for the Degree of Master of Science in Business Communication At ISCEM April 2015 Supervisor: Professor Luis Larcher, ISCEM, Lisbon, Portugal Co-Adviser: Professor Sang Yong Kim (김상용), Korea University, Seoul, South Korea Abstract K-Pop is hugely promoted offline/online in East Asia, while efforts to promote it elsewhere are kept to a minimum. Whilst addressing the role of digital marketing in the promotion of K-Pop in the Brazilian music industry this MSc dissertation aims to demonstrate that if K-Pop thinks globally and acts locally in their marketing and communication strategies they will provide their audience with a unique and engaging experience. A case study analysis of Korean Pop star Kim Hyun Joong including a broad survey of K-Pop world fan base and Kim Hyun Joong’s fans specifically was carried out online with 1169 fans to determine the validity of the hypothesis. The results have demonstrated the need to adapt global strategies to local markets in order to increase brand awareness and maximize profits. Resumo O K-Pop é fortemente promovido de modo offline/online no Leste Asiático, enquanto os esforços para a sua promoção noutras regiões mundiais têm sido mínimos. Esta dissertação aborda o papel do marketing digital na promoção de K-Pop na indústria musical Brasileira, com o objetivo de demonstrar que se as estratégias de marketing e comunicação do K-Pop forem pensadas globalmente e executadas localmente, poderão prover a sua audiência de uma experiencia única e cativante. Um estudo de caso de uma estrela de K-Pop, Kim Hyun Joong, incluindo uma pesquisa mundial dos fans de K-Pop e do Kim Hyun Joong foi conduzida online com recurso a 1169 fans para determinar a validade da hipótese. Os resultados demonstraram a necessidade de adaptar as estratégias globais aos mercados locais para incrementar o reconhecimento da marca e maximizar os lucros. Acknowledgments I List of Abbreviations II Table of Contents III List of Tables IV List of Images & Figures V Acknowledgements A good dissertation depends on the person who writes it. How great it becomes though it depends on the support of others during the challenging moments. For their belief in me and in this research study, for the guidance and support given me throughout this journey I want to thank my supervisors Dr. Luis Larcher, Professor Sang Yong Kim (김상용) and Dr. Felipe Pathe Duarte. Thank you for the privilege of being my mentors! Instrumental to the successful completion of this project, I want to thank Dr. Fernando Freire for being an outstanding professor and for the guidance and support during all the key challenges of this dissertation! Dr. Andre Saraiva, thank you for your statistical expertise and for the help with SPSS. Thank you to Dr. Pedro Mendonca for guiding me in transforming the idea of the research project into concrete goals and objectives that became the structure of this dissertation and for listening to me talking about it for four months prior to the course starting date. To Fiona Clark who has proofread the research including the English questionnaires; to Park Sunhee who has translated them into Korean and has helped me with everything Korea related; to Emerson for proof-reading the Portuguese questionnaires and to the Korean Embassy here in Portugal for promoting both of my K-Pop & Kim Hyun Joong surveys online, thank you so much! I want to thank Ines, Fatima, Teresa, Sandra, Carmen, Patricia and Marta my closest friends and my godmother who have put up with me speaking about K-Pop and Kim Hyun Joong constantly for the duration of this Master’s Degree. A big thank you as well to Dr. Rogerio Canhoto for the inspiration regarding Digital Marketing, for all the advice given, for believing in me like my supervisors and like Dr Fernando Freire, Dr. Andre Saraiva and Dr. Pedro Mendonca. Finally I want to thank my mom for her support, inspiration and belief in me, in my work and in my dissertation! I love you to bits! Thank you all for having been part of this journey with me! This dissertation is dedicated to you! I List of Abbreviations B2B Business to Business B2C Business to Consumer BE Brand Engagement BR Brazil CAGR Compound Annual Growth Rate CC Collectivist Cultures CM Content Marketing CPC Cost-per-click CS Collectivist Societies EM Email Marketing E-Purchasing Electronic Purchasing FAQ Frequently Asked Questions HC High Context HCC High Context Communication HCCT High Context Cultures IC Individualist Cultures IPAG Instituto de Pesquisa Economica Aplicada IS Individualist Societies K-Drama Korean Drama K-Ent. Korean Entertainment KHJ Kim Hyun Joong KPI Key Performance Indicators K-Pop Korean Pop Music LC Low Context LCC Low Context Communication LCCT Low Context Cultures LT Long-term M&E Media & Entertainment MV Music Video OA Online Advertising OPR Online Public Relations PO Power Distance PPC Pay-per-click Q Quarter ROI Return on Investment SEM Search Engine Marketing SEO Search Engine Optimization SK South Korea SMM Social Media Marketing SMMO Social Media Marketing Optimization S-Purchasing Social Purchasing ST Short-term UA Uncertainty Avoidance VM Viral Marketing WA Web Analytics WOM Word of Mouth ZMOT Zero Moment of Truth II Table of Contents Chapter 1 Introduction 1 -4 Chapter 2 Intercultural Communication 2.1 Introduction 5 2.2 Cross-cultural Communication 5 2.3 Hofstede Cultural Dimensions 5 – 7 2.3.1 South Korea and Brazil’s Culture Comparison 8 – 9 2.4 Hall’s High Context/ Low Context Culture Analysis 9 – 10 2.5 Culture and Consumer Attitudes and Behaviour 10 – 11 2.6 Intercultural Communication, Marketing and Advertising 11 – 12 2.7 Conclusion 12 – 13 Chapter 3 Digital Marketing & Social Media 3.1 Introduction 14 3.2 Marketing Mix in the Digital Context 14 – 17 3.3 Herzberg Theory of Motivation, Digital Consumer & Decision Buying Process 17 – 18 3.4 Social Media 19 3.4.1 Facebook, Twitter and Youtube KPI’s 19 – 21 3.5 Website 21 – 22 3.6 SEO 22 3.7 ROI 22 3.8 Conclusion 23 Chapter 4 Digital Media & Social Media Market 4.1 Introduction 24 4.2 Digital Media Market 24 4.2.1 Current Media & Entertainment Market 24 – 25 4.2.2 Internet Penetration Rates 25 – 26 4.2.3 Internet Users 26 – 27 4.2.4 Time Spent Online 27 – 28 4.2.5 Digital Consumer and E-Commerce 28 4.3 Social Media Market 28 – 31 4.4 Digital Media & Social Media Market Growth 31 – 32 4.5 Conclusion 32 Chapter 5 Digital Music Market & Social Media: Global & Brazilian Markets 5.1 Introduction 33 5.2 Music Market Overview 33 – 34 5.3 Digital Music Market 34 – 35 5.3.1 Downloads 35 – 36 5.3.2 Streaming 36 5.3.2.1 Ad-Supported 36 – 37 5.3.2.2 Subscription 37 – 39 III 5.3.3 Mobile 39 5.4 Digital Music Consumer & Local Repertoire 40 – 41 5.5 Digital Music & Social Media 41 – 42 5.6 Conclusion 42 Chapter 6 Methodology 6.1 Introduction 43 6.2 Primary Sources 43 6.2.1 B2C Research 43 6.2.1.1 Web Surveys 43 – 48 6.2.1.2 Social Network Interview 48 6.2.1.3 Face-to-Face Interviews 49 6.2.1.4 Web Analytics 49 – 50 6.2.2 B2B Research 50 6.2.2.1 Email Surveys 50 6.2.3 B2C and B2B Field Research & Observation 50 – 51 6.3 Secondary Sources 52 6.4 Conclusion 52 – 53 Chapter 7 K-Pop 7.1 Introduction 54 7.2 K-Pop Theoretical Background 54 – 56 7.3 K-Pop Research Findings & Discussion 56 7.3.1 Research Findings 56 7.3.1.1 Demographics 56 7.3.1.2 K-Pop 57 – 65 7.3.1.3 Social Media 65 – 67 7.3.1.4 Communication 68 – 70 7.3.2 K-Pop Findings Discussion 70 – 74 7.4 K-Pop in Brazil 74 – 75 7.4.1 K-Pop Environment 75 7.4.1.1 Concerts and K-Pop Promotion 75 – 76 7.4.1.2 Merchandising 76 – 77 7.4.2 K-Pop Brazil Research Findings & Discussion 77 7.4.2.1 Demographics 77 7.4.2.2 K-Pop 77 – 82 7.4.2.3 Social Media 82 – 84 7.4.2.4 Communication 84 – 86 7.5 Interviews Discussion & Field Research in Brief 86 7.5.1 Face-to-Face, Facebook & Email 86 – 87 7.5.2 Seoul & Tokyo Field Research 87 7.6 Conclusion 87 – 88 Chapter 8 Kim Hyun Joong 8.1 Introduction 89 8.2 Web Analytics 89 8.2.1 Facebook 89 – 90 8.2.2 Youtube 90 – 91 8.2.3 Website 91 – 92 8.3 KHJ Research Findings & Discussion 93 8.3.1 Demographics 93 8.3.2 KHJ 94 – 100 8.3.3 Social Media 100 - 102 8.3.4 Communication 103 – 105 8.3.5 K-Pop 105 8.4 Seoul & Tokyo Field Research 106 8.5 Conclusion 106 – 107 Chapter 9 Conclusion & Final Considerations 108 – 111 References 112 – 124 Appendix Chapter 6 125 Appendix Chapter 7 126 Appendix Chapter 8 127 List of Tables1 2.1 South Korea versus Brazil’s Cultural Dimensions 3.1 Product Differentiation 3.2 New Purchasing Options 3.3 New Models of Distribution 3.4 Promotional Tools 3.5 Services Provided to Customers Online 3.6 Social Media KPI’s and Analytics 3.7 Digital Marketing KPI’s 3.8 Performance Measurement Tools 4.1 Hours Spent on PC/Laptop & Mobile 5.1 Digital Revenue Distribution in 2013 and Change compared to 2012 7.1 Top 10 Albums 2010 – 2014 by K-Ent.