M.A. IN INTERNATIONAL BUSINESS COMMUNICATION - INTERCULTURAL MARKETING

MASTER'S THESIS CULTURAL DISRUPTION OF AN INDUSTRY BY EXAMPLE OF THE GERMAN EROTIC INDUSTRY: A CASE STUDY OF BEATE UHSE Abstract I

Abstract

The German erotic industry in undergoing a disruption as consumer needs and behavior are becoming more postmodern and new players enter the market, thus as competition intensifies it becomes crucial for actors, and especially existing market incumbents, to stand out and position themselves relevant for postmodern consumers (Inglehart, 1997a; Möthe, 2015). Thus, a thorough understanding of the new dynamics of the market and its consumers is important for survival (Keller et al., 2012). Therefore, the aim of this thesis is to investigates the resulting changes in terms of competition and consumer behavior, and reveal relationships between different attributes and the brand choices made by consumers. Further, to gain general insight into the erotic industry and how long-existing market incumbents, such as Beate Uhse, are affected, as well as how the brand should respond to these activities and position itself accordingly in the market.

In the first part of the exploratory research, empirical results of an online questionnaire that was distributed in large German cities to a predefined target group, where 386 female participants responded, are presented. The thesis then utilizes the quantitative data and secondary data sources to verify or falsify hypotheses established based on the literature review conducted.

In conclusion, the results show that consumers hold postmodern values and emphasize the impact perceived brand positioning has on brand choices made within this industry. Further, a positive brand choice is statistically related to the attractiveness of distribution channels offered by that brand and a low degree of perceived masculinity of that brand. On the basis of the results of the research, the thesis recommends for the case study brand to launch a sub- brand that is not associated with the outdated perception consumers have of Beate Uhse.

The author points out the immense complexity of consumer behavior in relation to the topic of sexuality that is underlying the industry, thus this thesis, and recommends more in-depth qualitative studies to support this research.

Table of content II

Table of content

ABSTRACT I TABLE OF CONTENT II INDEX V DEFINITIONS VI 1. INTRODUCTION 1

1.1. Erotic industry in Germany: An overview 3 1.1.1. Market development and turnovers 3 1.1.2. Market trends 4 1.1.2.1. Erotic as a lifestyle 4 1.1.2.2. The green trend 5 1.1.2.3. Niche marketing 5 1.1.3. Market rivalry 6

1.2. The case study: Beate Uhse 8 1.2.1. Company profile 8 1.2.2. Development and current strategy 8

1.3. Aims of study 11 1.4. Problem statement 12 1.4.1. Guiding research questions 12

1.5. Analytical framework 12

2. LITERATURE REVIEW 14

2.1. Theories for macro analysis 14 2.1.1. Socio-cultural factors 15 2.1.2. Technological factors 17 2.1.3. Hypotheses derived from macro level theories 18

2.2. Theories for meso analysis 19 2.2.1. Industry forces 19 2.2.2. Competitive forces – segmentation and positioning 19 2.2.3. Distribution 22 2.2.4. Hypotheses derived from meso level theories 23

Table of content III

2.3. Theories for micro analysis 23 2.3.1. Consumer behavior and culture 23 2.3.2. Consumption and brand perception 25 2.3.3. Hypothesis derived from micro level theories 26

3. METHODOLOGY AND METHOD 26

3.1. Scientific approach and research philosophy 26 3.2. Research approach and design 28 3.3. Research strategy 28 3.4. Data collection method 29 3.4.1. Primary data – questionnaire 29 3.4.1.1. Target group and sample size 29 3.4.1.2. Collection and sampling 30 3.4.1.3. Questionnaire design 32 3.4.1.4. Measures 34 3.4.2. Secondary data 35

3.5. Method for statistical data analysis 35 3.6. Research quality 36 3.6.1. Reliabili