DEGREE PROJECT, IN INFORMATION AND COMMUNICATION TECHNOLOGY , SECOND LEVEL STOCKHOLM, SWEDEN 2014 CONQUERING A NEW CUSTOMER SEGMENT INNOVATIVE MEDIA CONCEPT FOR THE PRE-LAUNCH COMMUNICATION OF THE NEW BMW 2 SERIES ACTIVE TOURER GERALD HEIDEMANN KTH ROYAL INSTITUTE OF TECHNOLOGY MASTER’S THESIS AT SCHOOL OF COMPUTER SCIENCE DEGREE PROJECT AT CSC, KTH CONQUERING A NEW CUSTOMER SEGMENT: INNOVATIVE MEDIA CONCEPT FOR THE PRE-LAUNCH COMMUNICATION OF THE NEW BMW 2 SERIES ACTIVE TOURER. Gerald Heidemann KTH e-mail: [email protected] Degree project in: Media Management Supervisor: Rosenqvist, Christopher (SSE) Examiner: Li, Haibo (KTH) Abstract The BMW 2 Series Active Tourer is a brand new car concept for the company and will be launched in Sweden at the end of September 2014. It will compete in the compact MPV (Multi Purpose Vehicles) segment with established competitors like the Mercedes Benz B- Class. Therefore, BMW Sweden has the goal to win new customers and unknown target groups, in order to conquer the market. To support BMW in this matter, this research shows systematically, who the new customers are, what they prefer, how they consume media and which communication concept will be the most effective one. The potential customers are divided into two target groups, one can be described as young, active families with one or two children and a high interest in outdoor activities. The other target group is defined as an elderly, retired but also very active couple, where the children moved out already and the free time is spent wisely in the nature, working in the garden or taking care of the dog. Besides the knowledge about preferences and demands of the target group, the right timing and effective media channels provide the key to a successful marketing campaign. Unfortunately, the timing was preset on the summer holiday period. Thus the right channels for these new circumstances had to be defined and the empirical research of this thesis delivered this definition. The final answer to the research question is given by the creative concept: The best way to communicate the new BMW 2 Series Active Tourer to the target groups “Livliga familj” and “Rörliga paret” is the interactive and innovative BMW ActivityGenerator. It’s the perfect support for the active lifestyle of the potential customers and provides them a real benefit in everyday life. The advertising for the AT is smoothly integrated and the concept is adaptable to all channels, which were identified as most effective during the campaign period. Sammanfattning BMW 2-serien Active Tourer är ett helt nytt bilkoncept för företaget och kommer att lanseras i Sverige i slutet av september 2014. Bilen kommer att tävla i det kompakta MPV (Multi Purpose Vehicles) segmentet med etablerade konkurrenter som Mercedes Benz B-klassen. Därför har BMW Sverige som mål att vinna nya kunder och hittills okända målgrupper, för att erövra marknaden. För att stödja BMW i denna fråga visar denna forskning systematiskt vem de nya kunderna är, vad de föredrar, hur de konsumerar medier och vilka kommunikationskoncept som kommer att vara de mest effektiva. De potentiella kunderna är uppdelade i två målgrupper, de som kan beskrivas som de unga, aktiva familjerna med ett eller två barn och ett stort intresse för friluftsliv. Den andra målgruppen är definierad som ett äldre pensionerat men också mycket aktivt par där barnen redan flyttat ut och fritiden spenderas i naturen, med trädgårdsskötsel eller genom att ta hand om hunden. Förutom kunskapen om målgruppens preferenser och krav, är rätt tidpunkt och effektiva mediekanaler nyckeln till en lyckad marknadsföringskampanj. Lanseringen är planerad att ske på semestertid. Alltså måste de rätta kanalerna för dessa nya förhållanden definieras och den empiriska forskningen i denna avhandling levererade denna definition. Det slutgiltiga svaret på forskningsfrågan ges av det kreativa konceptet: Det bästa sättet att kommunicera den nya BMW 2-serien Active Tourer till målgrupperna "Livliga familj" och "Rörliga Paret" är den interaktiva och innovativa BMW ActivityGenerator. Det är det perfekta stödet för potentiella kunder med aktiv livsstil och ger dem en verklig fördel i det dagliga livet. Reklamen för AT är smidigt integrerat och konceptet är anpassningsbart för alla kanaler som identifierades som mest effektiva under kampanjperioden. Acknowledgement I would like to thank my supervisor Christopher Rosenqvist from Stockholm School of Economics for his advice and support in the realization of this research paper. Additionally I would like to express my gratitude to my colleagues at BMW, the Marketing team of BMW Sweden and my former Product & Price team, without your support and openness this project would not have been possible. Last but not least, a big thank you to my family, my friends and my love. Table of contents 1. Introduction ................................................................................................. 1 1.1 Background .............................................................................................................................. 1 1.2 Purpose of the thesis ............................................................................................................... 2 1.3 Research Question .................................................................................................................. 2 1.4 Structure of the thesis ............................................................................................................. 4 2. Theory .......................................................................................................... 5 2.1 The Foundations of Marketing ................................................................................................ 5 2.2 Segmentation, Targeting and Positioning ............................................................................... 7 2.2.1 Segmentation .................................................................................................................. 7 2.2.2 Targeting ........................................................................................................................ 10 2.2.3 Positioning ..................................................................................................................... 11 2.2.4 Media concept ............................................................................................................... 11 2.3 Theory Limitations ................................................................................................................. 13 3. Research Strategy – Conquering a new customer segment........................ 14 3.1 Delimitations ......................................................................................................................... 15 3.1.1 General Limitations ....................................................................................................... 15 3.1.2 Positioning ..................................................................................................................... 15 3.1.3 Media Concept - Promotion .......................................................................................... 16 3.2 Methodology ......................................................................................................................... 16 3.2.1 Primary and Secondary data ......................................................................................... 16 3.2.2 Quantitative, Qualitative and Mixed Methods ............................................................. 17 3.2.3 Methodological Eclecticism ........................................................................................... 18 3.2.4 Focus Group ................................................................................................................... 19 3.2.5 Online Survey................................................................................................................. 20 3.2.6 Limitations ..................................................................................................................... 21 4. Results ....................................................................................................... 23 4.1 Analytical Phase ..................................................................................................................... 23 4.1.1 Product .......................................................................................................................... 23 4.1.2 Characteristics and consumer behavior ........................................................................ 25 4.1.3 Premium Market and competition in Sweden .............................................................. 26 4.2 Strategic Phase ...................................................................................................................... 27 4.2.1 Segmentation ................................................................................................................ 28 4.2.2 Targeting ........................................................................................................................ 30 4.2.3 Positioning ..................................................................................................................... 31 4.3 Media Concept ...................................................................................................................... 37 4.3.1 Product .........................................................................................................................