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DEGREE PROJECT, IN ,INFORMATION AND COMMUNICATION TECHNOLOGYSECOND LEVEL

STOCKHOLM, SWEDEN 2014

CONQUERING A NEW CUSTOMERSEGMENT

INNOVATIVE MEDIA CONCEPT FOR THEPRE-LAUNCH COMMUNICATION OF THE NEWBMW 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 .......................................................................................................................... 37

4.3.2 Price ............................................................................................................................... 38

4.3.3 Place .............................................................................................................................. 39

4.3.4 Promotion ...................................................................................................................... 39

4.3.5 The creative idea ........................................................................................................... 45

5. Conclusion ................................................................................................. 49

5.1 Discussion .............................................................................................................................. 49

5.2 Future research ..................................................................................................................... 51

5.3 Summary of Key Findings ...................................................................................................... 52

List of References ............................................................................................. 54

Appendix A – Focus Group Memo .................................................................... 56

Appendix B – Online Survey Questions and Results ......................................... 62

Appendix C – Vroom Market Analysis .............................................................. 75

Appendix D – Lowe Brindfors Segmentation Input ........................................... 82

List of figures

Figure 1: BMW 2 Series Active Tourer design (own collage, pictures from bmw.de) ............................. 1

Figure 2: Structure of the thesis (own creation) ..................................................................................... 4

Figure 3: The research strategy (own creation, based on animation from video:

https://www.youtube.com/watch?v=_0yFXLA6YW0, at 2:36min) ....................................... 14

Figure 4: Research strategy - Methodology .......................................................................................... 17

Figure 5: Research strategy - Analytical Phase ...................................................................................... 23

Figure 6: BMW 2 Series Active Tourer design (own collage, pictures from bmw.de) ........................... 24

Figure 7: Research strategy - Strategic Phase ....................................................................................... 27

Figure 8: BMW 2 Series Active Tourer exterior design (own collage, pictures from BMW Press portal)

............................................................................................................................................... 32

Figure 9: Results Online Survey - Exterior ............................................................................................. 32

Figure 10: BMW 2 Series Active Tourer interior design (own collage, pictures from the BMW Press

portal) .................................................................................................................................... 33

Figure 11: Results Online Survey - Interior ............................................................................................ 34

Figure 12: BMW 2 Series Active Tourer versatility (own collage, pictures from BMW Press portal) ... 35

Figure 13: Results Online Survey - Versatility ........................................................................................ 35

Figure 14: Research strategy - Media Concept ..................................................................................... 37

Figure 16: Results Online Survey - Internet via phone usage ................................................................ 41

Figure 15: Consumption scale ............................................................................................................... 41

Figure 17: Results Online Survey - Internet via computer usage .......................................................... 42

Figure 18: Results Online Survey - Television consumption .................................................................. 42

Figure 19: Results Online Survey - Newspaper usage ........................................................................... 43

Figure 20: Results Online Survey - Magazine usage .............................................................................. 43

Figure 21: Online banner for BMW ActivityGenerator (own collage, pictures from Lowe Brindfors) .. 45

Figure 22: Online banner for BMW ActivityGenerator (picture from Lowe Brindfors) ........................ 46



List of tables

Table 1: Medium most comfortable consuming advertising (Data from Online Survey) ..................... 44

Table 2: Key findings of this thesis ........................................................................................................ 53

List of abbreviations

MPV Multi Purpose Vehicle

AT BMW 2 Series Active Tourer

SEK ISO code for Swedish krona

NPS Net Promoter Score

POS Point of Sale

MTB Mountain Bike

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1. Introduction

“The future belongs to those who dare.”

Dr. Norbert Reithofer, Chairman of the Board of Management of BMW AG (Munich, 14th May 2013)

1.1 Background

The future, of which Mr. Reithofer is dreaming about, is a strong BMW brand, leading the

premium car segment worldwide with high sales numbers and rising profitability. To achieve

this scenario he dares to throw traditional brand values into disarray and introduces the first

front-wheel driven BMW ever: the 2 Series Active Tourer.

Figure 1: BMW 2 Series Active Tourer design (own collage, pictures from bmw.de)

During the last years, the company was increasing their model portfolio significantly. One of

their new models will be the “2 Series Active Tourer”, which opens a completely new market

for BMW. This model will be placed in the “Compact MPV” (Multi Purpose Vehicle) segment

as a premium and sportive alternative to existing competitors. The cars are characterized by

short measurements outside and a lot of space inside. Usually they are built quite high to

create a great roominess on the back seats and additional space in the trunk. The segment

already exists since years and is dominated by Renault, Mercedes and Ford. Accordingly,

they had the chance to gain a lot of experience and knowledge concerning their customer’s

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needs, behaviors and preferences. All this is mainly unknown for BMW. Following, it is

necessary to examine and research the potential customer’s characteristics and attributes.

To regard the regional differences, this has to be done in a detailed way for every country

the car will be launched in. To support the marketing team of BMW Sweden, this research

focuses on potential Swedish customers and the best way to get them in touch with the new

product.

1.2 Purpose of the thesis

The purpose of this master thesis is basically to give BMW Sweden a better understanding

and knowledge about the newly targeted customer segment. Furthermore the goal is to

develop media and communication actions to raise awareness and interest for this new

model in the segment. This includes a precise definition of the segment and the target

group, followed by a research about their media behavior and consumption with the special

focus on the summer holiday time. Having this as a base, the goal is to identify the most

effective and most used media channels, where customers can be reached and targeted in

the best way. Together with the input of a communication agency, the creative concept, the

media measures and channels will be defined and portrayed within this thesis.

1.3 Research Question

From this described purpose naturally arises the research question, which is to be answered

within this thesis:

(RQ) How can BMW communicate the new “2 Series Active Tourer” to an

untouched customer segment in the best way?

As is it quite a challenge to find a spontaneous answer to this, the question needs to be

divided a bit into its pieces. First of all, it is important to define the right segment in which

this new model will be launched, then it is important to look at the customer in detail – who

are we targeting? And finally it needs to be examined how to communicate most effectively

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with the potential customer. These small parts of the research question lead to the sub-

questions of this thesis, which also have to be considered:

What is the definition of the segment and target group?

How is this target group using and consuming different media channels today?

Is there a significant difference in their consumption characteristics during the

summer holiday time? (when the car will be communicated for the first time)

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- Pointing out the focus of this thesis

- Main research question and sub-questions

1. Research Question

- Focusing on the theory of Marketing and Segmentation

- Picturing existing limitations

2. Theory

- Building up the research strategy according to:

Analytical Phase / Strategic Phase / Media Concept

- Methodology discussion

3. Research Strategy

- Introduce findings and insights of empirical research

- Showcase the results within the Research Strategy

4. Results

- Discussion of results and the research questions

- Suggestions for further research

5. Conclu-

sion

1.4 Structure of the thesis

Figure 2: Structure of the thesis (own creation)

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2. Theory


4. Results

5. Conclu-

sion

2. Theory

With regard to the topic of this thesis, the core research fields are market segmentation,

approaching new customers and creating a media concept. All of these are the essential

parts of Marketing as we know it today. The development towards a profession with

intensive market research has started already many years ago. Marketers now and then

wanted to understand what the customers really need.

2.1 The Foundations of Marketing

It was until the 1950s that classical economics were the way how to view the market and the

consumers. Meaning, that this ideology didn’t see any difference between each and

everyone’s demand characteristics and interests. This went totally in line with the idea of

mass production and traditional industrialization. During the height of this period, all

marketing practices were aimed at promoting mass consumption (Sheth & Parvatiyar, 1995).

Further, Sheth & Parvatiyar (1995) point out, that the marketer’s focus was lying more and

more on sales and promotion of goods, less on building ongoing relationships with the

consumer. This illustrates a break with the traditional relationship-orientated marketing,

where the trade was a direct transaction between customer and producer and so always had

a personal touch to it. Marketers rather jumped on the “economies of scale train” and

focused on spreading mass produced goods through their distribution channels as fast as

possible.

Around that time in the 1950’s, the later period of the industrial era, there emerged two

developments which started to change the mass production focus of marketing (Sheth &

Parvatiyar, 1995). One was the marketer’s realization, that a repeated purchase of

customers was key for the business. What came along with this realization was a rising focus

on quality, customer satisfaction and brand loyalty. The other important change was the

development of administrated vertical marketing systems (McCammon, 1965) where

marketers gained more control of the distribution channels. Nowadays very well known

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4. Results

5. Conclu-

sion

systems, like franchising and exclusive distribution rights, empowered the producers, cut out

the middlemen and brought them again closer to the customer.

When markets came to maturity and the competition got harder, it became more and more

important to know your customers well. The distinctive character of certain consumer

groups got highly relevant for the companies. The identification of different needs and

behaviors was emerging to a key marketing tool. Having this knowledge, the next step was

now, to please these needs and differentiate from the competition.

A perfect picture of the disparity between market differentiation and market segmentation

is provided by Wendell Smith (1956). He sees differentiation as a step out of the normal,

uniform supply from a producer for a market. Here, the unique product has to find its

customers. For Smith (1956) differentiation is “the bending of demand to the will of supply.”

Segmentation, on the other hand, is guided by developments on the demand side. It

underlies a research and analysis of consumer needs and requirements. The goal is to fulfill

these demands with precisely adjusted products and marketing effort (Smith, 1956, p.6).

What Smith (1956) emphasizes, is that marketers have to take a much more active role in

finding out what the consumers really want. To that time, this really takes it to another level,

because one thing is to realize that there are several groups of customers who have

common interests and it’s not just one big mass market. But to start tailoring the product

development, production and marketing communication towards specific customer needs,

really makes the difference.

With this article in the Journal of Marketing, Smith (1956) has written the importance of

market segmentation and product differentiation in stone. For years, the fact that markets

should be divided into segments, characterized by similar consumer behavior and

socioeconomic, demographic or psychological attributes, was in the center of attention.

Until today this foundation of strategic marketing is valid and has become one of the

cornerstones of modem marketing science and practice (Gunnarsson, 1999).

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4. Results

5. Conclu-

sion

2.2 Segmentation, Targeting and Positioning

“Any customer can have a car painted any colour that he wants, as long as it is

black”

Model T philosophy by Henry Ford (1909)

This philosophy, of one of the first producers who applied line manufacturing in the mass

production of automobiles, is no longer valid in our world. It makes you even smile a bit

from a today’s view. No one could imagine that all cars drive around in the same color,

predefined by the manufacturer. In our world, different customers drive different cars with a

different color and different leather interior. This is made possible by companies, which

respond to diverse preferences and needs, demanded by the market. They moved away

from mass marketing, towards a targeted marketing strategy which puts the focus on a

specific customer group. The characterization and identification of these customer groups is,

like mentioned before, the market segmentation. Moving from the mass production

example of Ford in the early 20th century to the modern product portfolio concept of BMW,

this development of market segmentation is clear to see. About 15 years ago, BMW started

to enlarge their product portfolio, coming from three premium models (3, 5 and 7 Series),

introducing three new Series (1, 6 and X5), resulting in a good mixture of six different

products in 2001 (BMW, 2001). Today, only a few years later, we are talking about a product

portfolio of 19 models with an immense variety of available engines. This is an example of

successful market segmentation, where all models are able to co-exist because each of them

pleases different needs and preferences. The process, by which segmentation takes place,

consists of three main elements: segmentation, targeting and positioning (Kotler, 1988).

2.2.1 Segmentation

How to segment a certain market can vary a lot, it depends on the product, the market and

the company’s intention. In consumer markets it is common to use the differentiation by

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4. Results

5. Conclu-

sion

age, sex and personality (Engel et al., 1990). Dibb and Simkin (1991, p. 6) tried to provide a

more detailed overview of how to segment a certain market:

A basic characterization of potential customers can be done by demographic variables like

age, sex, family and religion. Also Socioeconomics might play an important role when the

company wants to differentiate in terms of income, occupation, education and social class.

One of the most important factors is also the geographical location which includes country,

religion, type of urban area and type of housing. Further differentiation might appear in

certain branches, where specific attributes need to be segmented. For example holiday

companies often use the lifestyle as an indicator to create certain offers for young singles or

senior citizens (Plummer, 1974).

Beyond this basic characterization, Dibb and Simkin (1991, p. 6) talk about product-related

behavioral characteristics, which describe in more detail the consumer relation to the

product. They separate between

Purchase behavior

The Versace customer follows a different behavior than a Primark shopper. The one is highly

focused on the brand and loyal to it and the other one is just price orientated and has no

special bond to the brand.

Purchase occasion

The situation and reason for a purchase can differ a lot. A motorist, whose bike broke down,

has to make an emergency purchase and will not care too much about the price. Another

customer might have all the time he needs and can compare online stores to make the best

buying decision. Distress purchases of this kind rely particularly on fast distribution and

availability.

Benefits sought

When customers buy toothpaste they seek different benefits (Haley, 1968). For some, fresh

breath and taste are essential while for others, fluoride protection is the key. The main

benefit stands in the center here and absolutely depends on the consumer’s need.

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4. Results

5. Conclu-

sion

Consumption behavior and user status

Examining consumption patterns can indicate where companies should be concentrating

their efforts. Light or non-users are often neglected. The important question to ask is why

consumption in these groups is low.

Attitude to product

Different customers have different perceptions and preferences of products. This already

starts with the image of a brand, then personal experiences add to that feeling and finally, of

course, the product and the presentation has to be convincing. A company is always able to

influence and improve each of these impressions.

Once, all of the potential customers have been characterized and put into segments, it is still

necessary for a segment to fulfill several criteria to be defined as effective (e.g., Frank, Massy

and Wind, 1927; Loudon and Della Bitta, 1984; Baker, 1988; Kotler, 1988).

Identifiability

It must be possible to clearly identify the segments and to measure them. Demographic,

psychological and behavioral characteristics are the common tools to identify and measure

segments.

Substantiality

The market segment should be large enough to be profitable. A homogeneous group which

is attractive and big enough to tailor a marketing strategy for it.

Accessibility

A marketing campaign is a waste of money if it doesn’t reach the targeted customer. The

accessibility of a customer segment is crucial for the company. The marketing measures

must have an impact on the segment. So it has to be clear from the beginning which

communication and distribution channels are the most effective to reach the segment

group.

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Stability

Ensuring to be consistent and remaining the same over a longer period of time, long enough

to be able to take actions.

Responsiveness

The segment needs to be responsive to the marketing measures targeted towards them. If a

campaign doesn’t find any response from the audience then the segment is ineffective.

Actionability

The company must be able to tease the segment with marketing measures. Actions must

take place and find positive response.

After the clarification of how to segment a market and which criteria an effective segment

has to fulfill, it is now time to target specific segments.

2.2.2 Targeting

As soon as the segments have been identified, the decision has to be made how many and

which customer groups should be targeted. The options are pretty clear (Dibb et al., 1990):

either the company focuses on a single segment with one product, or one product will be

offered in several markets. Furthermore also different products can be targeted to several

segments. However the decision is made, in the end it depends a lot on the market, so there

is no right and wrong. All of the strategies have brought up successful examples.

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2.2.3 Positioning

After the segment is defined and wisely chosen, the product has to find its place in the

market. The positioning represents the "sharp end" for marketers: the product's image

relative to its competitors in the consumer's view (Ries & Trout, 1981). It is crucial to present

the best answer to the needs and demands of the targeted audience. This best answer does

not only depend on the product itself, it is the image which is created in the minds of the

potential customers. The challenge is to paint this picture in exactly that way how it is

desired by the target group.

To find the right position depends on several variables which are important to the consumer

and vary from market to market. In the fashion business it might be the design and the price,

whereas the service level might decide the choice of a hotel. Here in-depth market research

is necessary to get to know the customers motivations and expectation in a certain market.

How do consumers perceive the product?

Exactly this is one core question of the empirical research in this thesis, because it builds the

foundation for developing the perfect media concept.

2.2.4 Media concept

A successful marketing mix or media concept can be created in any imaginable way. Basically

it just describes the perfect mix of communication channels and marketing measures. The

best definition and the best approach to create a successful media concept is the 4 P’s

strategy (McCarthy, 1960). They stand for Product, Place, Price and Promotion. A good way

to understand what every “P” means, is to look at the questions which have to be answered

in order to define every element.

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4. Results

5. Conclu-

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Product

Which needs of a customer does the product satisfy?

What attributes does it have to meet these needs? Which are unnecessary, which did we

forget?

How and where is the customer using the product?

What does it look like? Size? Colour? Name?

How does the product differ from the competition?

Place

Where can our product be found by the customers?

Which distribution channels are used?

How can the distribution channels be accessed?

Does the product need to be presented on trade fairs, magazines or online?

What is the competition doing?

Price

What is the actual value of the product to the buyer?

Are there already existing established price levels in the market?

How price sensitive is the customer?

Should there be any special offers to certain groups in the segment?

How is the price comparison with the competition?

Promotion

Where and when can we send the marketing message to the target audience most

effectively?

Which communication channels are the best to use?

When is the best time for communicating?

What is the competition doing and how does that influence our marketing activities?

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5. Conclu-

sion

Having answered all of these questions, and probably even some more, the frame is set for a

successful and optimized marketing mix. What makes it really successful in the end, is to

cater for the consumer needs and to adjust product and marketing according to these needs.

To sustain continuous success, it is crucial to keep on working on these factors and to call all

elements of a media concept into question.

2.3 Theory Limitations

Debates about the actual value of segmentation are constantly cropping up in the marketing

community. Speaking about “mindless” segmentation (Hoek, 1996), it has to be discussed if

marketing strategies based on segmentation actually affect the bottom line. Those

discussions are always very hard to support with real evidence, so a final judgment is hard to

find without real proof. But this is a general problem in marketing, it was never the goal and

never really possible to make marketing a calculable business, where a clear return on

investment can be defined. The same goes for segmentation and the impact it might have or

not. But so far this strategy has proven quite well, so it can’t be all that wrong.

Another critical point, which was mentioned sometime before already, is the attempt to

generalize the process of segmentation and the creation of media concepts. It is basically

impossible to provide one perfect strategy for completely different businesses. The solution

always depends a lot on the individual situation and the market environment. What can be

done from the marketing theory side, is to provide the tools for a proper segmentation,

targeting and positioning strategy, as presented in the chapters before. Giving the chance to

utilize “marketing research, management and behavioral science concepts and methods as a

tool for better marketing decisions” (Wind and Thomas, 1982, p. 18).

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5. Conclu-

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3. Research Strategy – Conquering a new customer segment

After presenting the theory foundation for this thesis, the following chapter should reveal

the strategy on which the solution finding for the research question is based on. The goal is

to conquer a new customer segment and all the tools which are necessary to achieve that

goal have been discussed. The following illustration presents a clear overview of the

research strategy for this thesis:

Figure 3: The research strategy (own creation, based on animation from video: https://www.youtube.com/watch?v=_0yFXLA6YW0, at 2:36min)

The Analytical Phase contains important insights of already existing facts and given

premises. The purpose here is to set the stage and bring together central preconditions and

the local market situation. Central, in this case, means from the center of the company,

which is the headquarter of BMW in Munich, Germany. There, all the important decisions

are made, concerning the product. Additionally, the global communication department in

Munich provides all the markets with central research and information material. On the

Analytical Phase

Product (central)

Characteristics and consumer behavior

(central)

Market and competition

(local)

Strategic Phase

Segmentation

Targeting

Positioning

Media Concept

Product

Price

Place

Promotion

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4. Results

5. Conclu-

sion

market side, locally, the own competitor environment and the market situation should be

analyzed.

In the Strategic Phase the whole market strategy for the AT (BMW 2 Series Active Tourer) in

Sweden has to be defined. Tailored to this market, a precise segmentation, targeting and

positioning process needs to be in place. Here the central premises only play a subordinate

role and the focus lays merely on the Swedish market and the potential customers.

When the desired market position is defined on the paper, an innovative Media Concept

needs to implement those ideas. The 4 P’s constitute the core of this marketing strategy and

point out the importance of considering each and every step.

3.1 Delimitations

3.1.1 General Limitations

It’s in the nature of a master thesis, that not all parts of this research strategy can be

processed with the same dedication. In the end, it is just the available amount of time which

limits the fields of research in this thesis. Although every part of the presented research

strategy will be examined. But within the scope of this thesis, the focus has to be put on

specific parts of the whole process. The own primary research, with gathered data from an

online survey and a focus group interview, is geared towards these two focus areas of the

thesis:

3.1.2 Positioning

The positioning in the market is the key element to develop later a fitting media concept.

The actual position of a product in the market is displayed by the image, which the

consumers have of this product. This is why a big focus in this thesis is put on the customer

perception of the product. In the theory chapter the key question for the right positioning

was mentioned:

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How do consumers perceive the product?

Exactly this is the core research in terms of positioning.

3.1.3 Media Concept - Promotion

The other focus area of this thesis is the last “P” of the media concept. The promotion of the

new BMW constitutes a big challenge, as it will differ a lot from the usual. Especially the

launch date of the campaign needs to be treated special, because it lies exactly in the

summertime. Most of potential customers will follow a different media behavior when they

enjoy holidays and spare-time. Which channels should be used and when is the best time to

communicate – these are the core questions in this focus area.

3.2 Methodology

After the clarification of the research problem and the definition of the research strategy,

the task of data collection begins. To do so, the right method has to be chosen, starting with

the differentiation of primary and secondary data.

3.2.1 Primary and Secondary data

All self collected data like results of experiments, clinical trials, social science or research

results are defined as primary data (Steward, 1992). This is a direct source with fresh and

untouched data. Secondary data, on the other hand, has been collected by someone else

and was already interpreted in some way. Here we are talking about analyzes, interprets and

scientific discoveries. With the help of the research strategy, visualized in the following

illustration, it is clear to identify the primary and secondary sources for this thesis.

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Figure 4: Research strategy - Methodology

The secondary data (light blue) is the Product, Characteristics and consumer behavior,

Product, Price and Place. All of these parts rely on information given by the BMW

headquarter. Information which is not provided in a raw data package, rather deeply

analyzed, interpreted and well thought through. Primary data (dark blue) are Market and

Competition, Segmentation and Targeting; which is first hand data, gathered together with

the market research company “Vroom” and the creative agency “Lowe Brindfors”. The parts

Positioning and Promotion (dark blue; red border) build the core of this thesis, as described

before, and provide primary data with own data collection.

3.2.2 Quantitative, Qualitative and Mixed Methods

According to Kothari (2004), quantitative research is based on the measurement of amount

and quantity. Here, often experiments and surveys are used to statistically proof or disprove

hypotheses. But when the research is interested in investigating the reasons for human

behavior, why people think and do certain things, we are talking about qualitative research.

Here, the research aims at discovering the underlying motives and desires, using in depth

interviews for example (Kothari, 2004).

Analytical Phase

Product (central)


(central)


(local)

Strategic Phase

Segmentation

Targeting

Positioning

Media Concept

Product

Price

Place

Promotion

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With more and more complex research questions and more and more available research

tools, mixing methods has also become quite common. Especially during the last years this

method has lost its image of being just a hybrid of quantitative and qualitative approaches. It

has almost become a distinctive approach on its own (e.g. Creswell, 2003; Johnson and

Onwuegbuzie, 2004).

In the end, not only the way of collecting the data is the key, also the results of every

method will please different needs and should play an important role when choosing the

methods. Webster et al. (2006) points out the limits of a qualitative research: “While

qualitative methods allow an investigator to delve deeply into a given topic, results are

usually not generalizable to large groups of people.” This indicates that the results only can

be used quite individual and display very deep, but subjective insights. Whereas the

quantitative research can be used, to develop statements which are applicable to a larger

amount of people. The high number of answers to the same questions or experimental tries,

allow a generalization to a certain extinct. “Quantitative research embodies a view of social

reality as an external, objective reality” (Bryman and Bell, 2007).

The researcher now has to decide which results deliver the best arguments for investigating

the research question and accordingly has to choose the best method. The term

Methodological Eclecticism describes the act of selecting and creatively integrating the most

appropriate techniques from a wide variety of quantitative, qualitative and mixed strategies,

in order to thoroughly investigate the phenomena of interest (Teddlie & Tashakkori, 2010,

2011).

3.2.3 Methodological Eclecticism

The base, for all further decisions and the choice of methods, was a detailed literature study

and especially the analysis of the received secondary data from BMW. To answer the

research question of how to communicate the new AT towards an untouched customer

segment, it was necessary to elaborate the product itself first. Additionally it was interesting

to see how the communication highlights were defined for this car from the headquarter.

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After this analysis of “what do we have?” the question aroused “how is it perceived?”.

Accordingly, this was the first challenge which needed to be solved.

One idea was to ask this question to as many persons as possible, to get a feeling of what is

attractive about this car and what not. The second thought was, if someone asks me how I

like a certain car, I usually start looking at it closely, open the trunk, sit inside of it and test-

drive it, to really have a proper answer to that question. After these thoughts it was clear,

that a detailed feedback was needed but also the opinion of a broad audience. A qualitative

method as well as a quantitative one is the perfect choice for this.

The other challenge, which still needed to be faced, was “how to communicate this car?”.

That includes the definition of the best channels and the most effective timing for a launch

campaign, not to forget a good campaign itself of course. But in terms of channels and

timing, the real problem here was, that the whole media campaign would run during the

summer holiday time in Sweden (the reasons for this will be explained more detailed in

chapter 4.3.4. Promotion). The unknown factor was, how does the media usage of potential

customers change from a normal workday compared to holiday time. To get a reasonable

feedback to this question, which also has to be representative on a bigger scale, again

qualitative and quantitative methods are the way to go. Therefore, both thesis focus areas

(Positioning and Promotion) could be combined in one qualitative and one quantitative

research.

3.2.4 Focus Group

According to the reasons mentioned before, in depth feedback, on how the car is being

perceived, is provided best by a qualitative method. The most common qualitative method

in research is a personal interview. The goal was, within this thesis, to retain personal

opinions, but furthermore should the participants be given the possibility to have discussions

in the group. These discussions are often revealing new sites of a product which may not

have been noticed by everyone on their own. So one group member might dislike a certain

part of the car, where others would never have thought of and could jump into the

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discussion. Therefore a Focus Group provides the perfect method for this part of the

research.

It requires a person known as the interviewer, which was embodied by the researcher

himself, asking questions in face-to-face contact to the participants. Those were chosen with

the goal to combine car experts and unbiased attendees. The idea behind this was again to

drive discussions by participants with different perspectives. This interview method of

collecting data involves presentation of oral-verbal stimuli and reply in form of oral-verbal

responses (Kothari, 2004). The stimulus, in this case, was an introduction presentation

including pictures, videos and data of the new AT, followed by a targeted and pre-defined

framework of questions. Every participant had to answer the same questions, with the

freedom to raise own questions and start discussion. This method is called a semi-structured

interview (Cohen et al. 2007). The responses were audio-recorded directly on a computer via

the integrated microphone and later transcribed into a text file. Together with the question

framework, this text file can be found in the Appendix A.

3.2.5 Online Survey

Besides the qualitative feedback on the car, it was also important to be able to draw wider

conclusions in the thesis focus areas of media usage and design perception. The best input

for this is delivered by quantitative methods - in this case, an online survey. Not only being

able to generalize statements more easily, “Surveys obtain information that can be

quantified and analyzed statistically and thus can reach a higher degree of precision about

the group being studied that other forms of research cannot duplicate” (Berger, 2011).

The choice of conducting an online survey was also influenced, on one hand, by the

argument of little costs and the convenience to spread it, but much more by the option to

present several high quality pictures of the car. Having those as an introduction, the survey

questions focused, in the first part, on the participant’s opinion about the car and in the

second part on their media behavior. As a platform for the survey, the online provider

“SurveyGizmo” was chosen. The advantages over other offers were the high number of

accepted responses (1000), a big variety of question types and great analyzing tools. To be

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able to send the survey out to the right persons, the researcher got provided with the access

to a database of car owners from all over Sweden, mainly owning a BMW already. The

invitation email was formulated in Swedish to lower the entry-barriers for a click on the

survey, where the questions were presented in English. Another idea, to convince more

people to take part, was to offer test drives with the new AT, being the first ones in Sweden.

The aim with these efforts was to reach at least 200 participants, which represent a quite big

part of the target group. The estimated sales target of the AT lies at 600 vehicles in the first

year. In the end, after a participation period of three weeks, a total number of 237 valid

replies were registered. The final data sets were downloaded in Microsoft Excel and Word

versions and further graphs and analyses were constantly available online. The complete

survey insights and the analyzed results are presented in chapter 4.2.3. Positioning and

4.3.4. Promotion, the complete survey including the results can be found in the Appendix B.

3.2.6 Limitations

Beside the mentioned limitations about the right target group, Online Surveys always involve

the danger of participants not telling the truth (Berger, 2011). In this case, it most probably

could happen in the media usage and demographics part. These questions request quite

sensitive information which might not be shared so willingly. The design section seems

rather comfortable to answer, having in mind that these questions focus on the car and not

on the person directly. Nevertheless, this can be considered a risk but especially here in

Sweden, with a very open information attitude, it shouldn’t be leveled too high.

Another issue concerning the Mixed Methods has been observed by Maxwell and Loomis

(2003). They claim, that “it is sometimes quite difficult to work out from a mixed methods

study what the quantitative and qualitative components were and how they were combined

or otherwise used in conjunction with one another.” To avoid these blurred boundaries, it is

the aim within this thesis to point out clearly the benefits of the quantitative and qualitative

methods. Also the different characters of the results should be pictured right, to draw the

right conclusions in the end.

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Finally, turning back to the first method of data collection in this thesis, Secondary Data

provides not always absolutely reliable and valid information. It must be evaluated carefully

and weighted according to its recency and credibility, as Steward (1992) points it out. He

further claims that “data collection is usually purposive, and the purpose for which

information is obtained and analyzed may influence the conclusions drawn, the data

collection procedure employed, the definitions of terms and categories, and even the quality

of the information.” As for this thesis most of the secondary data comes from the BMW

headquarter, it is at least clear to state that this data is credible, reliable and valid. The key

point with this data is that it needs to be evaluated in the right way. The premises from

Munich might not apply to the Swedish market for instance. So if the researcher sees all this

data from a critical position and puts the messages into question, then the purpose of data

collection should not influence his conclusions in any way. A critical evaluation of the

received data definitely limits the risk of invalid Secondary Data.

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4. Results

After setting the stage, this chapter now presents the findings of the research. To have a

consistent logic and to be able to build up conclusions step by step, the result discussion also

follows the research strategy process.

4.1 Analytical Phase

Figure 5: Research strategy - Analytical Phase

4.1.1 Product

The product, which this whole work is about, is called the BMW 2 Series Active Tourer. In

chapter 1.1. Background, a short introduction already showed the key elements of this car.

But to have a better understanding of this product, it is necessary to take a closer look.

Especially in order to understand and follow the further conclusions and definitions, a good

product knowledge will help.

Analytical Phase

Product (central)


(central)


(local)

Strategic Phase

Segmentation

Targeting

Positioning

Media Concept

Product

Price

Place

Promotion

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5. Conclu-

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The AT is the first front-wheel driven BMW ever and will compete in the class of Compact

MPVs. This class is defined by vehicles with short outside measurements but a lot of space

inside, because they are usually built higher than other compact cars. This is also why the

company decided to make the AT front-wheel driven; with this setup you safe a lot of space

underneath and in the rear of the car and so can create more space in the inside. BMW

wants to bring the known company values also into this class, accordingly the AT will be the

best in class in terms of design, sportiness and driving dynamics. Furthermore it fulfills the

requirements for this class, which are so highly valued by the customers. These are: comfort

and functionality, more legroom and storage space, high seating position and great

versatility.

Facts and figures:

Engines: Diesel and Petrol engines reaching from 136hp – 232hp

Fuel consumption: 4.1 – 6.0L

Measurements: Length: 4,343mm Width: 1,800mm Height: 1,555mm

(comparable to Mercedes Benz B-Class)

Approx. 2cm longer than BMW 1 Series

Approx. 1cm higher than BMW X1

Seating position approx. 11cm higher than BMW 1 Series

Price: starting from 232.000 SEK

Figure 6: BMW 2 Series Active Tourer design (own collage, pictures from bmw.de)

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All of the information in this chapter is based on BMW internal documents, which

unfortunately can’t be published within this thesis.

4.1.2 Characteristics and consumer behavior

Additionally to the pure product information, the BMW headquarter also provided the

markets with a customer study and Marketing/Target Group Guidelines. They include

assumptions which are based on customer research studies conducted by BMW. These

studies are from the years 2010/2011 and were carried out for the German and the

European market. This indicates that the central material can only give a vast picture of what

we are actually dealing with. Five years old studies are not really representing what people

think today and a German or European market can be quite different to the Swedish one.

But in the end, customer opinions are not changing dramatically fast and European markets

might differ, but the big picture is still the same. So this material can show the direction to

go and the fine-tuning has to be done market specific in the next steps.

The key message from Munich is to target young families and “Silver Agers”. This definition

of the target group is pretty obvious after looking at the competitors. The Mercedes Benz B-

Class, the Volkswagen Golf Plus and Touran call these groups their main customers.

Accordingly, for BMW the focus now lies on targeting these customers and convincing them

to change the brand.

The generic family profile is described as

- 39 years old, married, two children, business employee

- Residential area, budget conscious, functionality, versatility, comfort and quality are

important

The typical “Silver Ager” would be

- 64 years old, married, grown up children, retired

- Residential area, environmental awareness, comfort, quality, reliability and safety

important

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The target group is set and also the next steps are already suggested from the headquarter:

The consumers need to be addressed without making the AT a family car or a car for old

people. Most of the potential customers are not even considering BMW right now as a brand

for themselves. That’s why the whole communication needs to be inviting and approachable

but not too soft. Especially emphasized is the idea to approach the target group where they

reside on a daily basis and not to wait until they visit the BMW dealerships. Therefore, local

cooperation should be generated to create early touch points.

4.1.3 Premium Market and competition in Sweden

After this first input from BMW Munich, an approximate direction was set and now it was

time to dive deeper into the Swedish market. The best way to do so, is receiving statistical

analyses from the leading automotive research company in Sweden, Vroom (Appendix C).

One part of their exclusive report displayed the situation in the Swedish premium market.

The other part investigated the facts about the Mercedes Benz B-Class. Obviously, numbers

and statistics can only show the past and not the future. But if there is a certain pattern

recognizable, also assumptions for the future can be made.

In the private premium market only 11% of the customers in Sweden are below 35 years old.

Almost all of them owned a car already before the recent one. Which is nothing special, but

interesting to see is that 60% had a premium car before. And these 60% are all coming from

BMW, Audi and Mercedes. Volvo (9%) and Volkswagen (7%) are not that strong represented

in the premium segment. One could claim that for BMW there are now only two brands

which need to be conquered. But if the company wants to set a foot into the Compact MPV

segment, also customers from more price sensitive competitors need to be convinced; the

focus on the premium segment is not enough.

The direct competitor in Sweden, the Mercedes B-Class, was sold in the last year 991 times,

which comprises strong 10,1% of the company’s total sales in Sweden. Obviously a good and

vivid market for these kind of cars. Besides that, astonishing 75% of all B-Class customers last

year were older than 61 years old. The focus here is obviously put on the segment of “Silver

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Agers”. The look at the previous owned car reveals that 40% of these cars were used cars,

but more interesting is the fact that it is a wild mix of different models and brands. Mainly

they drove a Mercedes Benz before already and the most pre-owned car was the Mercedes

B-Class with 13%. But all the following percentages are below 10, which indicates that all the

B-Class customers came from a variety of other brands and models. This shows to BMW that

the focus for new customers should be very wide and embracing.

4.2 Strategic Phase

The analytical work of existing data is completed, now it is time to define the right strategy.

This will be done in a step-by-step process, starting with market segmentation, followed by

the definition of the target group in Sweden. These parts were handled in cooperation with

the creative agency Lowe Brindfors. Finally the product’s position in the market has to be

found, this search will be supported by own empirical research.

Figure 7: Research strategy - Strategic Phase

Analytical Phase

Product (central)


(central)


(local)

Strategic Phase

Segmentation

Targeting

Positioning

Media Concept

Product

Price

Place

Promotion

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4.2.1 Segmentation

In the case of the AT, the best approach of segmenting the market was to come from a very

wide angle and then narrowing it down. This means, the researchers looked at very general

factors at the beginning and became more and more precise in time.

Together with Lowe Brindfors, the first step was to look at the benefits sought to identify

what is essential for potential customers. In this case it was the combination of design and

functionality, which can be found in a lot of other products too. The customers of these

other products are a potential target group and this is how the segmentation started.

The next step focused on the Attitude to the product, preferring customers who like the

brand BMW, but never owned one before. With the idea behind, that the AT is a great entry

model to the world of BMW.

An important role in Sweden also plays the geographical location of the citizens. There a

really major differences in the characteristics of urban cultures and communities on the

countryside. In this research the focus was put on Stockholm, Gothenburg, Malmö and

surroundings plus communities which are larger than 90.000 inhabitants.

In terms of Socioeconomics the only regulation was a yearly income of 600.000 SEK and

higher.

To continue with a wide scope, which we decided to use after the Vroom research (chapter

4.1.3. Premium Market and competition in Sweden), we didn’t define the demographic

variables on purpose. This factor should be kept open as long as possible.

To be able to narrow this selection further down, the plan was to look at the competitors

and see which motives their customers have. Following, the Purchase behavior of the

potential segment was defined as brand-orientated, they appreciate the joy of driving,

design, engine power and prestige but do not care too much about where it comes from

(cylinders, front-wheel drive,…). Combining this with a functional need for cargo space to

transport what interests them: food and wine, hiking, biking, gardening, construction work,

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horse or dog. Additionally, they prefer a smooth getting in and out of the car and enjoy

comfort.

With this characterization, several demographic segments can be described. The task was

now to look into chosen segments and find the right target group. As the approach was still

to keep the angle wide, the demographic variables were defined very soft. The segmentation

process, including all the selective factors mentioned before, resulted in three groups to look

at:

1. 3-4 living in household; married/cohabiting = 579.000 persons

2. Married/cohabiting = 1.167.000 persons

3. 3-4 living in household = 676.000 persons

The final question, each segment has to answer, is the point of being effective or not.

Several factors (chapter 2.2.1. Segmentation) need to be checked to answer this question. As

the segments contain pretty much the same characterization, the check will be performed

for all three segments:

Identifiability

All segments are clearly to identify. Only the lack of demographic information might blur

some lines between segments.

Substantiality

Each of the three segments is large enough to be profitable, bearing in mind the sales target

for this year of 600 vehicles.

Accessibility

This factor can only be answered accurately after a closer analysis of the different media

consumption. The right channels are the key here and those have to be found and defined

first.

Stability

The arguments, for all three segments to be stable over years, are provided by the big size of

the segments and very general variables. So if a bigger mind change would take place, it is

not really affecting these variables.

Responsiveness

A big plus at this point is the selection of bigger cities, in which the customers can be

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reached a lot better. This is due to a much higher variability of communication channels and

so the responsiveness should be no problem.

Actionability

Throughout all the segments, BMW has the ability to take actions and get in touch with the

consumer. The geographical areas are not too wide raging and the segment groups know the

brand and are open minded towards it.

All of the data, on which this chapter is based on, can be found in the Appendix D.

4.2.2 Targeting

After this detailed segmentation, the options are now pretty clear (Dibb et al., 1990): either

the company focuses on a single segment with one product, or one product will be offered in

several markets. From the beginning, the target was to keep the focus wide open and

accordingly the AT will be targeting several segments. To be more precise, two main target

groups have been defined and chosen:

- Married/cohabiting, no children at home anymore, city with 90.000+ inhabitants,

<600.000 SEK income, hiking, biking, gardening, horse or dog, high seating, comfort

Rörliga paret (Swedish for: active, moving couple; young in mind)

- 3-4 living in household, city with 90.000+ inhabitants, <600.000 SEK income, hiking,

biking, gardening, food and wine

Livliga familj (Swedish for: vivid family)

All in all, the Swedish target groups are not really far off from the central suggestions for

whole Europe. Nevertheless, both target groups are divided in demographical and

socioeconomic attributes, but what unites them, are their interests and the active lifestyle.

Exactly these common fields of interest present the best opportunity to get in touch with

them.

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4.2.3 Positioning

Now that we know who the new customers will be, it is time to put the product in place.

Obviously the product should be appealing to the new customers and so, it would be great

to find out how the AT is perceived by the audience.

4.2.3.1 Empirical research

This research was conducted using quantitative and qualitative methods, which were already

described in chapter 3.2.2. Quantitative, Qualitative and Mixed Methods. One method was

an online survey with 237 participants who shared their opinion on the design of the AT

(Appendix B). They were asked to give each design aspect (exterior, interior and versatility) a

grade on the scale from 0-10. The results are going to be presented with a NPS (Net

Promoter Score) system, which separates into “Promoters”(rated 10-8), “Neutrals”(rated 7-

4) and “Detractors”(rated 3-0).

Additionally, a focus group was set up to find further answers to this question. Four

participants, each an expert in his field, took part at a semi-structured interview in the BMW

Sweden offices (Appendix A). Two of the participants had already a good knowledge of the

new AT, because they are directly working with the brand. The other two experts had not

been in touch with the product before that interview. All of the attendees met each other

for the first time. After an introducing presentation with videos and detailed pictures of the

product, the participant’s opinion on the exterior design, interior and versatility should be

shared. As a grading framework, the Likert Scale from 0-10 was suggested, 0 marking the

negative end and 10 marking the best grade. The following pictures are the ones used in the

online survey and the focus group.

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Exterior

Figure 8: BMW 2 Series Active Tourer exterior design (own collage, pictures from BMW Press portal)

Figure 9: Results Online Survey - Exterior

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117 100

0

20

40

60

80

100

120

140

Promoters Neutrals Detractors

Online Survey Results - Exterior

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Focus Group Grading: 7- / 7+ / 5+ / 7+

Design perception always depends on the viewer himself of course. So it was not surprising

that the judgments varied a lot from “nice appearance” and “harmonious from all angels” to

“this type of car is normally not a beautiful one.” The critics based mainly on the high shape

of the AT, it looks “a bit bulky, not so slick” and elegant as a long coupé for example. Also the

resemblance to the Mercedes B-Class was perceived negatively. But the important

statement from all critics was that “it definitely looks better than the Mercedes B-Class”. So

in the end the positive arguments, like “good proportions” and “quite sporty” outweighed

the negative ones.

Interior

Figure 10: BMW 2 Series Active Tourer interior design (own collage, pictures from the BMW Press portal)

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Figure 11: Results Online Survey - Interior

Focus Group Grading: 7 / 7 / 8+ / 7+

“I totally think the interior is the strong point of this car”. This statement summarizes the

opinions of the interior quite well. Not one negative sentence was spoken about the interior

design. A special mention deserves the choice of materials, which makes the interior feel

“very light” and “sensual clean”. Furthermore, the “sporty, premium feeling”, core values of

BMW, were emphasized and the participants were sure that “it’s going to be really good to

sit in this car.”

77

119

41

0

20

40

60

80

100

120

140


Online Survey Results - Interior

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Versatility

Figure 12: BMW 2 Series Active Tourer versatility (own collage, pictures from BMW Press portal)

Figure 13: Results Online Survey - Versatility

50

122

63

0

20

40

60

80

100

120

140


Online Survey Results - Versatility

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Focus Group Grading: 8 / 6 / 5 / 7

The versatility is by far the most difficult point to judge when you can’t experience the car

live and only have to rely on pictures and short films. Nevertheless, some discussion came up

and especially the information, that the rear leg space is bigger than in the BMW 3 Series,

provided a perfect possibility to compare. Most participants were satisfied with the loading

capacities presented in a short film and gave the general judgment “pretty good” and “looks

quite high”. Finally only one thing really counts in terms of functionality and versatility: “the

car will meet at least the requirements which the customers have.” So obviously BMW did

his homework.

Conclusion

The product has to find its place in the market; this is the core task in the positioning

process. After the empirical research, the image which is created in the minds of the

participants is clear. The car is still perceived as a BMW and, even better, as the best in

segment design. This is a strong positioning argument and should be communicated

confidently. Additionally the functionality and roominess seems to fulfill the expectations.

These expectations constitute the entrance barrier to the compact MPV segment; a failure in

any of these attributes might cost the chance to conquer the market. The highest grades

and best judgments received the interior, which should be one of the focus topics in the

communication. The creative concept now has to transport this image and create the same

one in the minds of potential customers.

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4.3 Media Concept

Figure 14: Research strategy - Media Concept

The final step is reached and after analyzing and finding the right strategy, it is time to

specify concrete actions. The media concept is the umbrella under which all details,

concerning the communication of the AT, are combined. To display this umbrella in an

organized structure, the 4 P’s (McCarthy, 1960) provide a good overview and point out the

importance of considering each and every step. Product, Price and Place are in this case

predefined values, which cannot be touched or influenced within this thesis. The focus area

is the promotion of the product for which qualitative and quantitative research has been

conducted. In the following lines every step is being discussed in more detail.

4.3.1 Product

The communication highlights of the 2 Series Active Tourer are the best in class design,

driving dynamics and sportiness. Furthermore the product fulfills the needs of the customers

in terms of functionality, space and versatility. The AT is the perfect companion for the

Analytical Phase

Product (central)


(central)


(local)

Strategic Phase

Segmentation

Targeting

Positioning

Media Concept

Product

Price

Place

Promotion

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active lifestyle of the target group. If it is hiking, biking or skiing in the winter, the car

provides the right tool to do it. Also as a pure transport vehicle it can support gardening and

construction works on the house.

The AT will be launched in the segment of Compact MPVs, competing with the Mercedes

Benz B-Class, Volkswagen Golf Sportsvan and others. Further technical details are described

in chapter 4.1.1. Product.

4.3.2 Price

The prices for the AT are unveiled completely for the German market. Until the finalization

of this thesis only the entrance model price for the Swedish market was allowed to be

communicated:

BMW 218i Active Tourer 27.200 € 232.000 SEK

BMW 225i Active Tourer 37.950 €

BMW 218d Active Tourer 31.050 €

The engine portfolio will be extended from November 2014 on with the introduction of 220i,

216d and 220d.

Those are basically on the same level as the B-Class, which is also per definition the only

premium competitor in this segment. In that matter, BMW offers the newer and better

solution for the same price. In general you have to look at both of the target groups and see

that young families are usually much more price sensitive than a retired couple. Accordingly,

a lot of low-price competitors are targeting mainly young families and are dominating the

market like this. To compete with them is only possible with a low entry model price and a

very convincing product. The AT starting price of 232.000 SEK is recently about 50.000 SEK

(185000) higher than the cheaper competition. But it is important to mention that the

engine of BMW is not comparable with the entry models of the competitors. Additionally, a

premium model is usually not supposed and able to compete with the lowest prices.

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4.3.3 Place

In the automotive industry, this topic can be answered pretty fast. The distribution is

completely handled by the dealerships. Until a few months ago 100% of the new produced

cars were sold through the dealers. As one of the last industries, the car manufacturers

slowly enter the internet. One strategy is the direct sale via the own homepage, which is

now possible for the first time ever with the new BMW i3. But in case of the 2 Series Active

Tourer, the only option, which might be possible, is a distribution over internet portals

specified on new car sales.

All in all, the dealerships’ facilities are still the place where all contracts are made and

accordingly, the main point-of-sale (POS). The BMW dealers are spread all over the country

and especially focused on the bigger cities, which goes align with the geographical location

of the target group. The AT needs to be present at the POS as soon as possible, because the

communication will take place before the actual launch. To further please and tease the

audience before the launch, the car should be presented at events and placed in car

magazines. Thus, the AT will celebrate its Northern Europe premiere at the biggest golf

tournament in Scandinavia, the Nordea Masters in Malmö, Sweden. Several car magazines

will also have the chance to test-drive the car after the premiere and present it to their

readers.

4.3.4 Promotion

The above mentioned event and press actions can be already seen as promotional measures,

so it is about time to present the core creative ideas to promote this new BMW. Before the

creation of the final idea, it is crucial to identify when and how the target group can be

reached best. Accordingly, the first step is the definition of timing and channels.

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Timing

Usually the timing is not a big problem, as you basically orientate the start of the campaign

to the date of the car-launch. So the customers get in touch with the new product in the

newspapers, in television or any other channel and then visit their dealerships to get more

information and test-drive the car. For BMW Sweden, the communication timing of the AT is

not that easy as usual. During the launch of the car (27th of September) a big BMW charity

campaign is running, which will take all resources and channels from August until October.

Therefore, the AT campaign has to be switched to July, the main summer holiday time in

Sweden. Normally, this month is considered as a vacation month, where most of the

employees are out of office and the whole business takes kind of a summer break. Exactly in

this period the AT has to be pushed with ATL (Above the line) measures, which are actions

that are visible to a broad public and are spread via common media channels. To conclude,

the timing of the campaign is problematic, because the target group is not following its usual

media behavior when they are on vacation. Solving this problem was one key element of this

thesis’ research and is presented in the next paragraph.

Channels

Which media channels are the most effective ones during the summer holiday time?

The answer to this question is not only a big part of this thesis, it will also show BMW which

communication strategy is best for the 2 Series Active Tourer. Specific qualitative and

quantitative methods had been chosen to find the right solution. In this matter, a

combination of the results of both methods will deliver the strongest arguments.

The qualitative method, already introduced in chapter 3.2.4., focused on the opinion of four

experts. They shared their point-of-view concerning the car’s design and their personal

media behavior. Here, of course, lays the main interest for the definition of the most

effective media channels. The participants were asked to present their media usage on a

normal day and then describe the changes which might take place in comparison to holiday

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time. Based on their main media channels they should describe their usage characteristics

and compare them.

Within the Online survey, a total of 237 persons shared their media usage and gave insights

on how this usage changes during the vacation time. The participants were asked first, how

they consume media during their everyday-life when they are at work, following their usual

habits. After that they should describe how the media usage looks like during holidays. The

participants should define, channel by channel, how often they

are using it. The scale was reaching from several times a day,

daily, a few times per week, a few times per month, a few times

per year, never, no access to this medium until don’t know.

According to this, everyone had the chance to show their

normal and summer media consumption.

The main trend was that either channels lost massively in usage or others stayed more or

less the same. Ranked by the highest usage per day (blue and red), the most important

channel is the internet, either via mobile phone or the computer.

Figure 16: Results Online Survey - Internet via phone usage

Using the internet via mobile phone is one of the solid channels which didn’t drop

dramatically in usage during the summertime. Even though most of the focus group

members had the plan to “neglect my phone” and tried to be “more into doing activities

than looking on the phone”, they still used it quite a lot. One reason is the need to stay up-

to-date, so “the phone is often used for news articles updates.” Another very interesting

reason is caused by the more available time; some people “post a bit more”. All the new

impressions and beautiful experiences need to be shared with friends. Thus, the phone is

even used a bit more for posting on social networks for example. To conclude, this channel

presents the perfect opportunity to still reach the target group, even if it might be just once

0 50 100 150 200 250

Internet via phone (Summer)

Internet via mobilephone

Figure 15: Consumption scale

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a day when Wi-Fi is available. But the main message is summarized very well by this

statement: “During the vacation I would still be connected with my phone.”

Figure 17: Results Online Survey - Internet via computer usage

This statement can also be transcribed to the internet usage via computer. During the

summer time the usage is still, for most of the participants, on a daily basis and almost

everyone has access to the internet a few times per week. The dramatical drop of 38% in

daily usage can be explained probably with the omission of the internet usage at the

workplace. This development is also supported by the statements of the focus group. The

work computer is often “replaced by the phone and tablet” during vacation. But also here

the time aspect motivates to continuously using the internet: “I will have more time to read

newspapers or read them online.”

After those two strong channels, it is time for the biggest loser in terms of usage. The daily

TV consumption decreases by 43% and throws this medium far back in comparison to

others.

Figure 18: Results Online Survey - Television consumption

This decrease is often caused by the fact that the access to this medium is limited or not

existing when people are abroad. They might still catch the news on a TV in the hotel room

or at a bar, but these fixed usage times like after work or at the weekend are completely

dropped. Additionally, the TV would just hold them back from enjoying the good weather,

the garden, beach or mountains.

0 50 100 150 200 250

Internet via computer (Summer)

Internet via computer

0 50 100 150 200 250

Watch television (Summer)

Watch television

- 38%

- 43%

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The rest of the channels had no major changes in usage time, but some should be

emphasized, because within the focus group a lot of arguments were found for these ones.

“I also tend to buy more newspapers actually, like when you go to the beach for example.

Then I always like to take something with me to read.” Spending the time at the beach with

something to read is quite common and good described as “a shift to a bit long-term media”.

This also includes magazines of interest. Both channels are quite stable and the magazines

are even wining a few daily readers according to the survey participants; quite reliable

channels on the long-run.

Figure 19: Results Online Survey - Newspaper usage

Figure 20: Results Online Survey - Magazine usage

In the end, the most consumed channels during the summer time are the internet via phone

and via computer. The newspaper and magazines of interest are solid, accompanying

channels. To find out, how effective these channels are, a last question was proposed to the

experts in the focus group and to the participants of the online survey:

In which medium do you feel most comfortable consuming advertising?

The participants were asked to sort the given channels according to what they prefer most.

The displayed score is a weighted calculation of the channel ranking.

0 50 100 150 200 250

Read the newspaper (Summer)

Read the newspaper

0 50 100 150 200 250

Magazines of interest (Summer)

Magazines of interest

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Rank Medium Total Score

1 Advertising in Newspapers 1062

2 Television 1002

3 Advertising on websites used via computer 762

4 Sendings via post 689

5 Radio commercials 582

6 Advertising on websites used via mobilephone 511

7 Advertising in social media networks 438

Table 1: Medium most comfortable consuming advertising (Data from Online Survey)

The results first of all show that man is a creature of habit. In all of the classical channels,

where consumers are used to be confronted with advertising, they were pretty comfortable

with consuming ads. New forms of marketing, targeting mobile phones or social networks

were seen quite critical. If we now look at the most used channels during the vacation, we

find the internet via computer on rank three and surfing on a mobile phone on rank six.

Combined with the very accepted advertising in newspapers, the chosen channels should be

quite effective.

All in all, the creative campaign can rely on most of the channels also during the summer

time, except the television. Very effective channels, or at least very accepted advertising

channels are the newspapers and websites. I think it is also good, from time to time, to be a

bit uncomfortable, to get stuck in the people’s head. So a focus on mobile, the internet and

newspapers is the suggested strategy in terms of advertising channels.

The timing and the channels are set, the next step is the creative idea which will be

presented in the following chapter.

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4.3.5 The creative idea

Based on the active lifestyle of the target groups, the variability of the product and the

selection of the channels, the proposed creative idea is:

The BMW ActivityGenerator.

Supported by the slogan and campaign headline:

Every day is a journey. (Varje dag är en resa.)

It sounds very exciting and it is, in fact, a great tool which suggests a variety of local events

and activities, based on the user’s recent position. So let’s say you are right now enjoying

your nice summer time at home with the family. Free days ahead, so there is a lot of things

to do with the kids. In the evening you are surfing a bit in the internet, checking a few biking

equipment sites, some news pages and during this relaxed browsing you see the following

ads:

Figure 21: Online banner for BMW ActivityGenerator (own collage, pictures from Lowe Brindfors)

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On these banners all the events and activities, happening today or tomorrow around your

recent location, are displayed. It could be some kayak testing days, a biking round trip in

Sandviken or a MTB course in Huddinge. When the user clicks on the event he will find all

the detailed information about it, plus the closest BMW dealership and the invitation to take

the next activity with the AT, in form of a test-drive.

The BMW ActivityGenerator can also be combined with a bit more focus on the car (Figure

21, right side). First, several events are presented and then the user is contacted directly a

bit provocative: Where are you going today?

In both of these cases the user will be encouraged to book a test-drive and start the next

activity with the BMW 2 Series Active Tourer.

To make this idea even more exciting and interactive, the user could also be confronted with

a real ActivityGenerator machine. Here he gets invited to find a thrilling activity which is

happening on that day close by.

Figure 22: Online banner for BMW ActivityGenerator (picture from Lowe Brindfors)

“Press start if you want to do something thrilling today.” After pressing the START button, a

perfectly targeted event, which is based on the interests and browsing behavior of the user,

is presented.

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In this case, a visit to the art museum of Wanås is being suggested. If the user wants to

continue with the search, he just has to press “other activity” and gets to the next event,

tailored to his interests.


This example would be presented to users around Gävle, a nice bike tour of 4, 8 or 12 miles

in Gästrike. In the end, the targeted customer would also be encouraged to book a test-

drive.

This concept is of course adaptable to several devices and different channels. If we look at

the chosen and most effective channels, like for example the newspaper, ads could present

recent events, which are happening in the distribution area, and invite the readers to visit

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this event or the next one with the 2 Series Active Tourer. The mobile phone and the

computer could adapt the banners which had been described earlier. Furthermore, there

will be also developed a specific app. With the “BMW ActivityGenerator” the users can

always look for exciting events in the proximity and never have to search several event

portals and museum websites. Also radio spots are a great opportunity to put this idea into

action and present recent activities:

“Hiking, bus and base camp in Grövelsjön or island hopping for 3 persons, 4 days long in

Siaröfortet? Where are you going today? Every day is a journey. Start yours at the next BMW

dealer.”

Technically, the identification of the recent user’s position can be achieved through different

tools. One of them is the GPS position which is transmitted by phones or several notebook

models these days. Additionally, the IP address normally indicates where the user is

connected and located approximately. On local news web pages the content of the

ActivityGenerator is matched to the distribution area of the newspaper. Finally, to create the

perfect activity algorithm, also the browsing history and search habits are taken into

consideration. That, in the end, a real customer value is created by presenting exciting and

tailored activities to potential AT buyers.

The actual goal is, to bring the potential customers in touch with the new car. Especially

after the research about the people’s perception of the design, it was clear to see that the

interior is the big plus. Accordingly, the best argument to convince these customers is when

they take place in the AT and enjoy a test-drive.

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5. Conclusion

What is always left in the end, is to take a look back on what has happened and then try to

foresee what the future might bring. In the next chapter all the research questions are being

discussed, based on the results presented before. Additionally, the possibilities of future

research will be the topic.

5.1 Discussion

The last 50 pages were all dedicated to answer on big question, the research question. Let’s

see now if the effort was high enough to find a proper answer:

How can BMW communicate the new “2 Series Active Tourer” to an untouched

customer segment in the best way?

As described before the research, BMW had to learn a lot about the new targeted customer

group to find the right answer. This thesis provided a good look inside this target group,

identified their personal characteristics and tried to picture their media behavior and their

attitude towards the product.

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

(chapter 4.3.5. The creative idea). 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.

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For the sake of completeness, a brief look on the additional research questions is provided in

the following:

What is the definition of the segment and target group?

Through demographic, socioeconomic and geographical attributes the segments were

defined quite broad (chapter 4.2.1. Segmentation) but still precise enough to work

with them efficiently. Based on this segmentation, two main target groups could be

defined (chapter 4.2.2. Targeting). 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.

How is this target group using and consuming different media channels today?

This describes the media usage on a usual work day, which provided the base to be able to

compare this behavior with the behavior during the vacation time. The leading channels in

terms of consumption time were the internet via mobile phone or via computer and the

television. Also the advertising preferences of the media users were interrogated, to find

out in which channel it is most comfortable to be confronted with advertising. On the first

three positions were advertising in newspapers, TV and ads on websites used via computer.

Further relevant insights for this thesis are described in chapter 4.3.4. Promotion, the whole

results of the empirical research can be found in the Appendix A and B.

Is there a significant difference in their consumption characteristics during the

summer holiday time? (when the car will be communicated first)

In some channels this difference was really significant when you look at the daily usage. The

time per day in front of the TV dropped by 43% and browsing in the web on a computer lost

38% of the daily users. The rest of the channels could more or less hold their consumption

levels, due to the common shift towards long term media like newspapers or magazines in

the vacation time. Important for the answer of the research question was the fact that the

focus channels should be the internet both via computer and mobile phone, accompanied by

newspaper advertising.

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5.2 Future research

Especially the research about the differences between everyday media usage and

summertime usage, which was described in the last sub-question, is important to develop

further. The goal should be, to be able to see throughout the year how to address the target

group most effectively. This summer gap is still a big unknown factor, at least here in

Sweden, and that’s why continuous research on that field is necessary.

Furthermore it will be important for BMW to find out what the first test-drivers and

customers think about the car. Especially in the case of the AT, the targeted audience is new

and quite big, because the segments were defined quite broad. The research on the target

group is never completed and the company should always try to receive input and feedback.

As described in chapter 2.2.4., a good media concept is worthless without continuously

asking for the customer’s opinion and adjusting all the elements of the communication to it.

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5.3 Summary of Key Findings

To provide a clear overview of the key findings of this thesis, a summary for every chapter is

conducted in the following:

4.1 Analytical Phase Key Findings

Chapter 4.1.1. Product - BMW 2 Series Active Tourer, a compact MPV competing mainly

against MB B-Class and VW Golf Sportsvan - Prices start from 232.000 SEK and launch date is September 27th

Chapter 4.1.2. Characteristics and consumer behavior

- Target Groups: young families and Silver Agers - Communication needs to be inviting and approachable - Generate local cooperations to get in touch with new customers

Chapter 4.1.3. Premium market and Competition in Sweden

- Premium market dominated by BMW, Audi and Mercedes - Before the B-Class, the customers drove a huge variety of brands and

models -> BMW should have a wide focus for new customers

4.2. Strategic Phase Key Findings

Chapter 4.2.1. Segmentation - Target segments: city with 90.000+ inhabitants, <600.000SEK income,

functional need for cargo space, interested in food and wine, hiking, biking, gardening, construction work, horse or dog

- 3-4 persons in household or just married/cohabiting

Chapter 4.2.2. Targeting - Target groups: Rörliga paret and Livliga familj

Chapter 4.2.3. Positioning - AT perceived as best in segment design

- Functionality and roominess fulfill the expectations - Focus on the interior, received the best rating

4.3. Media Concept Key Findings

Chapter 4.3.1. Product - See chapter 4.1.1.

Chapter 4.3.2. Price - Starting from 232.000 SEK

Chapter 4.3.3. Place - Mainly distributed at the dealerships where the presentation must be

well prepared - Further publicity on events and via PR

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Chapter 4.3.4. Promotion - Timing: main campaign during July, vacation time

- Channels: most effective in that period are internet via phone and via computer plus classic newspapers

Chapter 4.3.5. The creative idea - BMW ActivityGenerator: interactive tool which suggests a variety of

events and activities based on the user’s recent position - Combining this tool with the invitation for a test-drive

Table 2: Key findings of this thesis

54

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Appendix A – Focus Group Memo

Host: So maybe let’s start in the round first, I would just like you to rate the car maybe between 1 and 10. What do you personally feel about the car, the exterior and maybe it would be great if you all could find some arguments like why this number and what you like about it and what not so much. Just be honest and feel free to say what you think. Markus Tegnér: I think the exterior looks really nice, speaking about the front. Nice appearance like the other models, 3 and 5 Series, I really like the look. All in all, the shape of the car looks very nice also. And also the back of the car, my first thought was: quite similar to the Mercedes. It looks very well and from a scale from 0 to 10, I would say a strong 6 or a weak 7. Host: Thank you. Jani Eriksson: I guess it is not so objective, working with this. But in general I think, I say it looks very good. I mean in general I like kind of these niche models more, even though this one will have a quite big volume for us. But I really like the concept, I like that it has good proportions, it looks very harmonious from almost all angels. So I think they really did a good job with the exterior design. So on a scale from 1 to 10 I would also rate it somewhere between, a strong 7, something like that. Oscar Erlandsson: I guess I am coming at this from a slightly different perspective. To me this type of car normally is not a beautiful car. A bit bulky, not so slick. But coming from there, they really did a good job. It definitely looks better than the Mercedes B-Class. Even though I guess it has pretty much the same measurements, it just looks better. So, from there I guess something about 5 or 6. I mean these are style-shots, so in reality it will probably look a bit more bulky than in these shots. Johan Wigren: I guess the segment for this car is going to like this. I like that they made it quite sporty, they put down the front of the car quite low, so it looks quite low and quite sporty. And I really think we are going to find a new segment that would like to go to buy a BMW actually. Because the people like this car, I think. It looks like the 3Series GT or the X1 today. And also as it is front-wheel drive I think it will be cheaper to build. And that will give us a good price. Jani Eriksson: Especially that we are working now with the lines, gives new dynamic to the car. If you look at the side lines, playing a bit with the light. If you wouldn’t have that, it would be just a sleek surface, or a surface which is not dynamic.

57

Host: What kind of grade would you give to the exterior then? Johan Wigren: I think this type or car a bit harder to design, so I think we made it very good. So I will say a strong 7 or something like that. Host: Great! I won’t share my opinion, as we would lose too much time. But I definitely agree with most of you and especially that it is hard to make this kind of car look as elegant and sporty as the other models. Let’s move on to the interior, I hope you saw some parts in the movie on the one hand on some pictures. So you can compare it to what you already experienced in your car. And maybe concerning the segment where it’s going to be launched, maybe take that also into perspective. Johan starts. Johan Wigren: I like it a lot. I never took place in this car, so I don’t know. I think you have a good view from the inside, I don't know if they're going to be a problem with the A-pillar, but you have this little windshield, but I think it will give us a good view from inside. And I like the sporty, premium feeling with the little more exclusive seats. I like it. Host: If you would rate it, what do you say? Johan Wigren: You lose a bit of sportiness when you have a quite high roof. But maybe a 7 again, I think. Oscar Erlandsson: I totally think the interior is the strong point of this car. What you can see from the pictures is that it is pretty spacious inside. Obviously it has a very light interior, which I think many people will choose. It is the opposite if practical, but that obviously makes it look much better. So with black leather it will look less exciting. But I really like the interior, there is a lot of shapiness to it. Again compared to the Mercedes it looks much better. I think it’s going to be really good to sit in this car. I tend to like high roof cars; they look shitty from outside, but great inside. So 7-ish. Jani Eriksson: I totally agree to Oscar, the interior is the strong point of this car. And definitely with the materials, the looks we can also target customers outside the premium segment. You can make them understand that you actually get a lot for your money. Because from the materials and the steering wheel, you have a really high quality here. And of course the spaciness is something you can really feel when you are in the car. That comes of course from having it front-wheel driven, you create more space in the car. This is something the customer group will really like. I also like the design of the central console, so I think an 8 maybe stretching to a 9 in this case.

58

Markus Tegnér: I agree to the others opinions. I was actually quite surprised that it has such a very premium look and feel to it. Especially compared to the 1-Series this is much much better. Also the screen in the middle, so this could be a strong argument when it comes to selling it. And I also very much like the sensual cleanliness, fewer buttons and the iDrive console like in my old 5-Series. I really like it, so 7, strong 7. Host: Let’s move on, although this is of course a difficult point to judge only from pictures and movies. Especially as you can feel roominess only when you really sit in there. But still you saw the pictures and the measurements, can compare it to the 1Series… So, your opinion about the roominess, first feeling kind of? Markus Tegnér: Yea, the snowboard hardly fit in. So yea, the measurements are quite good and without the total capacity of the trunk it is hard. But for the target group, young families, couples maybe connected to sports its pretty good. One question is also about the leg space, with the 3Series and the 5Series it was already quite small. So it would be nice to see it and try it out, going on a trip with friends. But from this perspective it looks decent, so an 8. Host: Jani did you already sit in it? Jani Eriksson: Yes I did. And you actually have a better leg space than a 3Series for example. You really have a good roominess in the car. Of course I think in general, this car offer what customers expect in that segment. Of course it is new to BMW, but if you launch a car in that segment, you should also have what the customer expects. For example the seats, the folding functions, also the foldable passenger seat for transporting long objects for example. So I think we will meet at least the requirements which the customers have, which is good. So I think it’s good, 6 around. Oscar Erlandsson: It looks ok, for this type of car it looks like pretty much what it should be. It did look pretty high from the films, also the windows stand quite high, so that adds to that feeling. Also the sunroof makes it look brighter, but that’s not going to be standard isn’t it? - Laughing in the room - And I would give a 5. Johan Wigren: I like it too. I like the opportunity to bring quite a lot of things. I think they made it quite smart with the option to put down the front seat. So I really like it. Host: Great and then we will look a bit towards the target groups. You already had a first guess, and what I want to know of course is do you feel addressed by the car, is it something you

59

could think about for yourself personally? Further which target group could it be, which direction should it go and your opinion on that. Johan Wigren: As we saw in the films, directed to that families who like an active life and they had the snowboard and everything. And I think that might be the segment for this car actually, maybe smaller families. So I think this car will be really good for them. Host: You personally would think about it? Johan Wigren: I like a little more sporty cars and I myself have the 3Series Touring, because I like that the forms of the car and how it works. But if you have a little family or something, this will be a good car. Because you have the possibility to buy a BMW for good type of money. Oscar Erlandsson: Yea, so I think the price point will be quite important for this one. Because I think really this is something like for small families or something. Also the film with the snowboard, that doesn’t tell me anything. But I think between the price and the functionality of the car, it’s something for a small family. You know they would have gotten a 5Series if they could but they don’t have the money to. And this is like a very good compromise. So I think the 2 model number is slightly misleading, to me it’s more like between 3 and 5 Series. But general at the right price you will sell a lot of them. Jani Eriksson: I also think young families, and I am one of them. So I think this car would fit quite well. And I could also consider it for some time at least. And I also think we might want to target younger customers and families, but I also think that it will attract silveragers who have no children living at home anymore. I think those will be interested in the car as well. And we shouldn’t neglect this target group, as many of them will like the car. But I think these are definitely the two target groups for this car and for myself at least for a period in life I consider it too. Markus Tegnér: Yes, I also think the target group is couples or small families with one or two kids. I think this car will really outsell the whole 1Series, I think this is a more attractive car and more spacious than the 1Series. I could consider it for myself, but I rather go for the 3Series, more space and capacity. But it’s very nice, attractive alternative. Oscar Erlandsson: I thought about the film: the target group in that film, they don’t really exist in Sweden. Like the 30-something people which go around doing stuff like 20year olds do. That you won’t see in Sweden. So this should be considered in the Swedish marketing, we found the exact same thing with MINI. Johan Wigren:

60

What they want to show us is that the car is sporty and fun. Maybe the target group doesn’t exist in Sweden, but they show that it’s sporty. Oscar Erlandsson: Yea sure, but the thing with 4 people jumping into the car, that doesn’t really happen here. Johan: But does it feel like the X1 to step into? Jani Eriksson: Yes definitely. You at least don’t have to sit down in the car. More or less the same height as the seats. It’s not like the 1Series where you climb down in the car. Host: Then we move more to the nicer times. I hope you all already booked your summer holidays. I want to focus now a bit on media behavior. Kind of you should make your own thoughts about how your media behavior changes from an everyday usage of phone, social media, TV, radio, newspapers towards a holiday behavior. Either you are just at home in the summertime but also if you are abroad travelling somewhere. How is your access to the medium and how does it change? Just think about how much you will use it then per day or per week. Markus Tegnér: Starting with the mobile phone in the morning, the first thing I do is checking it for updates. But I do not read newspapers, I go online and surf the web when I go to work, I check very quickly. Also during the day I check very much updates on my phone on social media. During a day I barely watch the television, I don’t have one at home and I wouldn’t pay for it. So I am not a target for TV commercials. During the vacation I would still be connected with my phone. Maybe I will have more time to read papers or read them online. And if accessible watch some television. When I am abroad I would very rarely use my phone because of the roaming costs. Unless it is connected to the Wifi. More into doing activities than looking on the phone. Jani Eriksson: The biggest change when I go on vacation is that I try to negate my phone, so I don’t use it as much, but maybe follow social media. But I try to be out more, which means that I watch less television than in general. And I also tend to buy more newspapers actually, like when you go to the beach for example I always like to take something with me to read. That is kind of good time spending. But I would still use my phone for news article updates, so I would still be online. But the consumption time will go down, as I tend to do other things in the summer time. Oscar Erlandsson: I think I consume less media, try to leave my phone away. I might post a bit more, because there is more stuff to share and you have time to actually do it. I think there would be a shift to a bit long-term media for me, like I would read a book or read a magazine or stuff like that.

61

Johan Wigren: I watch quite much television, I think that is a nice way to come down after work. In vacation time I think I use the phone and tablet quite much. I don’t read too much but, I am online and you usually have more time to share what you do and something like that. A nice way on Instagram is to follow accounts about your interests. So I am looking for a watch right now and follow the account of Omega. So this is a good chance for companies to do commercials, show new models. BMW could improve here.

62

Appendix B – Online Survey Questions and Results

1. What car brand are you driving recently?

Value Count Percent

none 1 0.5%

Alfa Romeo 1 0.5%

Aston Martin 0 0.0%

Audi 9 4.2%

Bentley 0 0.0%

BMW 185 86.9%

Bugatti 0 0.0%

Chevrolet 0 0.0%

63

Chrysler 0 0.0%

Citroën 0 0.0%

Dacia 0 0.0%

Daihatsu 0 0.0%

Ferrari 0 0.0%

Fiat 0 0.0%

Ford 0 0.0%

Honda 0 0.0%

Infiniti 0 0.0%

Jaguar 0 0.0%

Kia 0 0.0%

Lada 0 0.0%

Lamborghini 0 0.0%

Lancia 1 0.5%

Land Rover 0 0.0%

Lexus 0 0.0%

Lotus 0 0.0%

Maserati 0 0.0%

Maybach 0 0.0%

Mazda 1 0.5%

Mercedes Benz 3 1.4%

MINI 0 0.0%

Mitsubishi 0 0.0%

64

Nissan 0 0.0%

Opel 0 0.0%

Peugeot 0 0.0%

Porsche 4 1.9%

Renault 0 0.0%

Rolls-Royce 0 0.0%

Saab 0 0.0%

Seat 0 0.0%

Skoda 0 0.0%

Smart 0 0.0%

Subaru 1 0.5%

Suzuki 0 0.0%

Tata 0 0.0%

Toyota 0 0.0%

Volkswagen 3 1.4%

Volvo 4 1.9%

Statistics

Total Responses 213

65

2. Are you thinking about buying a car in the closer future?

Value Count Percent

No. 36 14.6%

No, but maybe in the next 2+ years. 60 24.3%

Maybe in the next 1-2 years. 82 33.2%

Yes, probably a used car in the next 6-12 months. 9 3.6%

Yes, probably a new car in the next 6-12 months. 30 12.2%

Yes, probably a used car in the next 6 months. 1 0.4%

Yes, probably a new car in the next 6 months. 29 11.7%

None of the above. 0 0.0%

Statistics

Total Responses 247

66

3. If yes, which type of car is interesting for you?

Value Count Percent

Compact Car 17 8.0%

Sedan/Limousine 61 28.6%

Kombi/Station wagon 82 38.5%

Van/Minibus 2 0.9%

Pickup 1 0.5%

SUV 70 32.9%

Sportcoupe 40 18.8%

Cab/Convertible 14 6.6%

Not interested 4 1.9%

Other 2 0.9%

Statistics

Total Responses 213

67

4. Based on your first impression, how much do you like the EXTERIOR of the

shown car?

Grading from 0="absolutely not" until 10="absolutely fantastic"

Net Promoter Score: -30.5

COUNT PERCENT

Promoters: 26

Neutrals: 117

Detractors: 100

Total Count: 243 100%

68

5. Based on your first impression, how much do you like the INTERIOR of the

shown car?


69

Net Promoter Score: 15.2

COUNT PERCENT

Promoters: 77

Neutrals: 119

Detractors: 41


70

6. Based on your first impression, how much do you like the ROOMINESS and

VERSATILITY of the shown car?


71

Net Promoter Score: -5.5

COUNT PERCENT

Promoters: 50

Neutrals: 122

Detractors: 63


72

7. The perfect car for you has to fulfill several demands. How important are the

following factors when you think about buying a car?

Very

Important Important

Moderately

Important

Of little

Importance Unimportant Responses

Design 54.2%

130

40.4%

97

3.3%

8

1.7%

4

0.4%

1

240

Price 11.7%

28

47.7%

114

37.2%

89

2.9%

7

0.4%

1

239

Fuel consumption

/ CO2 values

18.8%

45

47.1%

113

27.9%

67

5.0%

12

1.3%

3

240

Driving Dynamics 50.6%

121

43.5%

104

5.0%

12

0.4%

1

0.4%

1

239

Sportiness 28.8%

69

41.7%

100

25.0%

60

3.3%

8

1.3%

3

240

Roominess /

Space

22.1%

53

52.5%

126

21.7%

52

3.3%

8

0.4%

1

240

Versatility 13.8%

33

49.4%

118

33.9%

81

2.5%

6

0.4%

1

239

Comfort 53.6%

127

40.5%

96

4.6%

11

0.8%

2

0.4%

1

237

High Seating

position

13.4%

32

30.3%

72

33.2%

79

15.1%

36

8.0%

19

238

Safety 62.8%

150

31.8%

76

3.8%

9

1.3%

3

0.4%

1

239

73

8. On a normal day, to what extend do you...?

Several

times a

day

Daily

A few

times

per

week

A few

times

per

month

A few

times

per year

Never

No

access

to this

medium

Don't

know Responses

Watch

television

4.7%

11

66.5%

155

24.0%

56

2.6%

6

0.9%

2

0.9%

2

0.0%

0

0.4%

1

233

Watch

television via

the internet

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0

Use the

internet via

mobilephone

51.5%

121

26.8%

63

11.1%

26

4.7%

11

2.6%

6

2.6%

6

0.4%

1

0.4%

1

235

Use the

internet via

computer

67.2%

158

27.2%

64

4.3%

10

0.4%

1

0.0%

0

0.4%

1

0.0%

0

0.4%

1

235

Listen to the

radio

14.5%

34

54.3%

127

23.1%

54

4.7%

11

2.6%

6

0.0%

0

0.0%

0

0.9%

2

234

Read the

newspaper

11.5%

27

55.7%

131

20.0%

47

8.5%

20

2.6%

6

0.9%

2

0.0%

0

0.9%

2

235

Read

magazines of

interest

1.7%

4

15.3%

36

48.5%

114

29.8%

70

3.0%

7

0.4%

1

0.4%

1

0.9%

2

235

Use online

social

networks

(Facebook,

Twitter and co.)

18.1%

42

19.8%

46

21.1%

49

9.9%

23

5.6%

13

21.1%

49

3.9%

9

0.4%

1

232

Watch online

videos

1.7%

4

10.7%

25

32.1%

75

32.9%

77

12.8%

30

7.7%

18

1.7%

4

0.4%

1

234

74

9. During your summer holiday time (free time, out of work) to what extend do

you...?

Several

times a

day

Daily

A few

times

per

week

A few

times

per

month

A few

times

per year

Never

No

access

to this

medium

Don't

know Responses

Watch

television

3.0%

7

38.2%

89

47.2%

110

5.2%

12

2.6%

6

3.0%

7

0.0%

0

0.9%

2

233

Watch

television via

the internet

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0

Use the

internet via

mobilephone

35.3%

82

37.5%

87

14.7%

34

3.9%

9

2.6%

6

5.2%

12

0.4%

1

0.4%

1

232

Use the

internet via

computer

24.4%

57

35.0%

82

32.5%

76

4.7%

11

1.3%

3

1.3%

3

0.4%

1

0.4%

1

234

Listen to the

radio

9.0%

21

48.3%

113

29.5%

69

8.5%

20

3.4%

8

0.9%

2

0.0%

0

0.4%

1

234

Read the

newspaper

6.5%

15

51.7%

120

28.0%

65

9.1%

21

1.7%

4

2.2%

5

0.4%

1

0.4%

1

232

Read

magazines of

interest

3.4%

8

15.1%

35

46.1%

107

29.3%

68

3.0%

7

1.7%

4

0.0%

0

1.3%

3

232

Use online

social

networks

(Facebook,

Twitter and co.)

12.8%

30

18.8%

44

24.8%

58

8.5%

20

5.6%

13

24.4%

57

3.4%

8

1.7%

4

234

Watch online

videos

1.3%

3

8.6%

20

29.2%

68

30.9%

72

12.0%

28

15.0%

35

1.3%

3

1.7%

4

233

75

Appendix C – Vroom Market Analysis

82

Appendix D – Lowe Brindfors Segmentation Input

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