Bachelor Report
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‘GET BRITAIN MOVING’ Bachelor of International Marketing Submission date: 22nd May 2013 Leeds Metropolitan University BI Norwegian Business School Authors: Ola F. Brandsrud, Maria Solum, Marte Ingvaldsen, Sandra Zieba, Charlotte Wold and Jonas S. Fløttum This paper is done as a part of the undergraduate program at BI Norwegian Business School. This does not entail that BI Norwegian Business School has cleared the methods applied, the result presented, or the conclusions drawn. The Authors We certify with our signatures that this is our own work. The work has not been presented elsewhere for assessment. Where material had been used from other sources it has been properly acknowledged and referenced. Acknowledgements The preparation of this report, ‘Get Britain Moving’, would not have been possible without the valuable guidance and support we have received throughout this process. Several people deserve a special thank you for contributing to our project. We would like to thank our mentor Gareth Williams from Leeds Metropolitan University, for his expertise and guidance and for being a motivator throughout the proses of writing this report. Further on, we have to thank Jax O `Connor and David Wiley from Helly Hansen UK, as well as the Helly Hansen establishment, for their cooperation during this process and for giving us such an interesting topic to work on in our International Marketing Consultancy Project (IMC) module. We would also like to thank the experts who, during the interviews, shared their knowledge and expertise and gave us a broader understanding of topics related to the project. Last, but not least, we would like to thank Leeds Metropolitan University, BI Norwegian Business School, individuals who conducted our questionnaire, our families and everybody else who has in different ways contributed to the project. Page 3 of 158 Executive Summary This report is a result of a cooperation with Helly Hansen UK. Helly Hansen is a Norwegian company, and one of the worlds leading brands within exercise and leisure apparel. The brand is well known in several countries, but not as much in the UK. The aim of this report has been to explore options for a promotion strategy that reaches a target group which is struggling to be active, in order to create awareness around the Helly Hansen brand. The report has analysed the sports apparel industry and its most important players. Nike, Adidas and Puma are Helly Hansen’s biggest competitors. These players all use different promotion strategies that are outlined in the report. Marketing communication strategies through social media and traditional media is also discussed, in addition to promotion strategies through events and sponsorships. Secondary research together with Delphi Interviews and questionnaires has been conducted in order to gain a deeper understanding into the physical activity habits in the UK, as well as information about appropriate promotion strategies. The findings revealed exercise- and physical activity patterns among the population in the UK, and several motivations and barriers were discovered. The results from secondary and primary research made the base for a synthesis and evaluation of two appropriate promotion strategies for Helly Hansen. The first alternative for a suitable promotion strategy was for Helly Hansen to host their own event. The second alternative was a sponsorship of an event promoting physical activity. Based on the secondary research, expert interviews, questionnaires and further analyses, the promotion strategy that has been recommended for Helly Hansen is to become the headline sponsor of the ‘Cliffhanger’ event. Page 4 of 158 Report Overview The report is divided into three sub sections. Part one: Introduction Chapter one, Terms of Reference, presents the framework of the project. This includes background information and aim and objectives for the project. Furthermore, it presents the limitation for the project. Chapter two will present the Methodology for the research process. Chapter three will explain the Literature Review, which includes a presentation of the theoretical frameworks for the project. Part two: Data collection Chapter four will analyse and give insight into Helly Hansen’s position in the UK market. Chapter five will give an introduction to the UK sports apparel industry, with a presentation of the current situation and a forecast of the market. The presentation of competitors will have its main focus on the promotion element the marketing mix. Chapter six presents insight into physical activity patterns in the UK. Chapter seven presents the expert interviews. Chapter eight presents the questionnaires. Part three: Strategy analysis Chapter nine provides a situation analysis, done by synthesising all the findings in the data collection. A SWOT will be used. Page 5 of 158 Chapter ten provides a concluding for all the work with the project aim and perception of their possible relevance and importance. Chapter eleven will present two alternative promotion strategies. Chapter twelve will, based on the findings and analysis, provide a suitable recommendation. Page 6 of 158 Table of Contents PART 1 – INTRODUCTION ............................................................................................................................... 13 Chapter 1. Terms of Reference ..................................................................................................................... 15 1.1 Background ............................................................................................................................................................... 15 1.2 Project aim and objectives ...................................................................................................................................... 16 1.2.1 Consultancy Request ................................................................................................................................... 16 1.2.1 Research Aim ................................................................................................................................................. 16 1.2.2 Research Objectives ..................................................................................................................................... 16 1.2.3 Research Questions ..................................................................................................................................... 17 1.3 Research Limitations ................................................................................................................................................. 18 Chapter 2. Methodology ................................................................................................................................ 20 2.1 Research Design .......................................................................................................................................................... 20 2.1.2 The Chosen Research Design .................................................................................................................... 21 2.2 Methods for Data Collection .................................................................................................................................. 22 2.2.1 Secondary Data ............................................................................................................................................. 22 2.2.2 Primary Data ................................................................................................................................................... 23 Chapter 3. Literature Review ......................................................................................................................... 29 3.1 External Environmental Theory ............................................................................................................................. 29 3.2.1 PESTEL ............................................................................................................................................................... 29 3.2.2 Porter’s Five Forces ...................................................................................................................................... 30 3.2 Consumer Behaviour Theory .................................................................................................................................. 31 3.2.1 The AIDA model ............................................................................................................................................ 32 3.2.2 Consumer Decision-making Model ......................................................................................................... 33 3.3 Brand Management Theory ................................................................................................................................... 34 3.3.1 Brand identity and positioning ................................................................................................................. 34 3.3.2 Brand image ................................................................................................................................................... 34 3.3.3 Brand awareness .......................................................................................................................................... 35 3.4 The Marketing Mix ....................................................................................................................................................