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ROCK in the EAST - Expectations Towards a Finnish Rock Festival in the Russian Context

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ROCK in the EAST - Expectations Towards a Finnish Rock Festival in the Russian Context NORTH KARELIA UNIVERSITY OF APPLIED SCIENCES Degree Programme in International Business Tanja Heiskanen (0601022, [email protected]) Jonna Puhkala (0800761, [email protected]) ROCK IN THE EAST - Expectations Towards a Finnish Rock Festival in the Russian Context Thesis May, 2012 THESIS May 2012 Degree Programme in International Business Sirkkalantie 12 A FIN 80110 JOENSUU FINLAND Tel. 358-13-260 600 Authors Tanja Heiskanen, Jonna Puhkala Title Rock in the East – Expectations Towards a Finnish Rock Festival in the Russian Context Commissioned by Joensuu Pop Musicians’ Association Abstract Competition amongst rock festivals in Finland is a notable pushing factor towards seeking growth from international festival-goers. In a country the size of Finland, festival organizers are bound to compete for the same audience, and thus increasing the amount of international visitors may fill this gap. Currently, the share of festival-goers from abroad totals only 5%. Joensuu Pop Musicians’ Association, which organizes Ilosaarirock, are increasingly interested in the benefits that internationalizing the customer base generates. The close proximity of Russia and St. Petersburg create a potential market area for Ilosaarirock. This study explores the perceived expectations of potential festival-goers in the Russian context. The primary purpose of this study was to adduce the image Russians have concerning Finnish rock festivals and furthermore compare the differences in behavior between Finnish and Russian festival-goers. The secondary motive was to determine how the research results could be incorporated into the marketing activities of Ilosaarirock. The empirical part of this study was conducted by both qualitative and quantitative research methods. Two qualitative studies under the InnoStudio® concept were organized in St. Petersburg, the purposes of which were to identify the perceived expectations and behavioral patterns concerning rock festivals. The quantitative data was collected by a survey, focusing on the interest towards attending foreign rock festival and the practicalities concerning it. Ilosaarirock was seemingly unknown to Russians, despite the organizer’s increased involvement in St. Petersburg. Moreover, the attitude and expectations towards rock festivals revealed a significantly different picture than the reality. Hence, it can be said that Ilosaarirock has great challenges in overcoming these preconceptions in the attempts of creating a comprehensive marketing strategy for Russia. Language Pages 73 English Appendices 4 Pages of Appendices 7 Keywords Rock festival, Ilosaarirock, perceived service quality, consumer behavior, Russia CONTENTS 1 INTRODUCTION .......................................................................................................... 5 1.1 Background ............................................................................................................... 5 1.2 Aims of the study ...................................................................................................... 5 1.3 Ilosaarirock ................................................................................................................ 6 1.4 Research problems .................................................................................................... 7 2 FINNISH FESTIVAL CULTURE ................................................................................ 8 2.1 General characteristics .............................................................................................. 8 2.2 Ilosaarirock ................................................................................................................ 8 3 RUSSIAN TOURISM ABROAD................................................................................. 10 4 COMPETITION IN THE RUSSIAN MARKET ....................................................... 12 4.1 The Russian rock festival scene .............................................................................. 12 4.2 Russian rock festivals .............................................................................................. 12 4.2.1 Nashestvie .......................................................................................... 13 4.2.2 Tuborg Greenfest ................................................................................ 14 4.2.3 Afisha Picnic ...................................................................................... 14 4.2.4 Empty Hills ......................................................................................... 15 5 SWOT ANALYSIS CONCERNING THE RUSSIAN MARKET ........................... 17 5.1 Strengths and Weaknesses ...................................................................................... 17 5.2 Opportunities and Threats ....................................................................................... 18 6 SERVICE MARKETING ........................................................................................... 21 6.1 Perceived service quality......................................................................................... 21 6.2 AIDAS .................................................................................................................... 22 6.3 Complete service offering ....................................................................................... 22 6.3.1 Inner circle: Service package ............................................................. 23 6.3.2 Middle circle: Extended service offering ........................................... 24 6.3.3 Outer circle: Image and communication of the service offering ........ 25 7 SOCIAL MEDIA AS A MARKETING TOOL......................................................... 26 7.1 Definition and value of social media ...................................................................... 26 7.2 Differences of social media compared to traditional media.................................... 27 7.3 Use of the Internet and social media in Russia ....................................................... 29 7.3.1 VKontakte .......................................................................................... 30 7.3.2 Facebook ............................................................................................ 31 7.3.3 Odnoklassniki ..................................................................................... 32 7.3.4 MoiMir ............................................................................................... 33 7.3.5 Twitter ................................................................................................ 34 7.4 Use of smartphones and mobile Internet in Russia ................................................. 35 8 RESEARCH METHODS ............................................................................................ 37 8.1 Aim of the study ...................................................................................................... 37 8.2 Research questions .................................................................................................. 38 8.3 Data collection methods .......................................................................................... 38 8.3.1 Validity and reliability ........................................................................ 39 8.4 Qualitative research ................................................................................................. 39 8.4.1 InnoStudio® concept .......................................................................... 39 8.4.2 The course of the first InnoStudio® ................................................... 40 8.4.3 The course of the second InnoStudio® .............................................. 42 8.5 Quantitative research ............................................................................................... 44 8.5.1 The beginning of the process .............................................................. 44 8.5.2 Background information ..................................................................... 44 8.5.3 Music taste and experiences from rock festivals ................................ 45 8.5.4 Interest in rock festivals ..................................................................... 46 8.5.5 Concerns towards taking part in a rock festival ................................. 47 8.5.6 Reasons to take part in a rock festival ................................................ 48 8.5.7 Information before a rock festival ...................................................... 49 8.5.8 Interest in Finnish rock festivals ........................................................ 49 8.5.9 Knowledge about Ilosaarirock and holidays ...................................... 50 8.5.10 The cost of a rock festival weekend in Finland ................................ 51 8.5.11 Tickets to events ............................................................................... 51 8.5.12 Medias followed ............................................................................... 52 8.5.13 Mobile usage .................................................................................... 52 9 RESULTS ..................................................................................................................... 54 9.1 First InnoStudio® .................................................................................................... 54 9.2 Second InnoStudio® ............................................................................................... 58 9.3 Survey ....................................................................................................................
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