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Assignment 2: Research Methods and Sports Skills for Managers

Assignment 2 – Qualitative Research Proposal Digital Innovation in Formula E and Millennial Motorsport Fans

Introduction Formula E is an all-electric car racing championship comprising of 12 teams and 24 drivers. The championship takes place across major cities in the world including London, Paris and Berlin. Alejandro Agag came about with the idea of Formula E to demonstrate the potential of sustainable mobility to help create a better, cleaner world (Formula E, 2019). BMW, Porsche, Mercedes-Benz and Audi are a few car manufacturers participating in the 2019/20 Formula E Championship. In December 2019, it was announced that from the start of the 2020/21 season, Formula E would race with World Championship status (FIA, 2019), reflecting its growth both sportingly and commercially. Formula E seeks to target a younger audience, with the series claiming that 72% of its followers on social channels under the age of 35 (Formula E, 2018). To appeal to the millennial population1, the all-electric series implemented various digital innovations2 across social, mobile, virtual reality, gaming and artificial intelligence platforms. After the completion of season 5 (2018/19), the series reported spectator figures at all races over 400,000, with 850 million digital video views and 411 million TV viewers (Formula E, 2018). Standaert & Jarvenpaa (2016) conducted a study titled “Formula E: Next Generation Motorsport with Next Generation Fans” to understand how to build a passionate and committed fan base locally and globally. The case study posed questions for further 1

Referred through the study as “millennials”, aged between 13 and 24 years old “advances in scientific and technological knowledge for the purpose of creating and capturing value for a firm” (Bailetti, 2012)

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Assignment 2: Research Methods and Sports Skills for Managers

research, one being whether Formula E was effectively identifying, segmenting and targeting the fan base. The authors also asked what it would take for Formula E to connect emotionally and build a long-term relationship3 with fans. This study would look to develop better understanding on digital and product innovation in Formula E using case study analysis. The study would also delve into case studies concerning identification, segmentation and targeting of fans through digital innovations and environmental concerns in Formula E and Formula One.

Literature Review Multiple sectors in the global economy, including sport, have been impacted by the pervasiveness of digital and social media. According to Lyytinen (2015) advances in digital innovations improve network connectivity, speed and reach while reducing communication costs of products. The rise of social media has brought about the idea of content creating opportunities for generating new products (Yoo et al., 2010). Formula One Motorsport has faced major challenges in selling to millennials, with the generation showing less interest in buying and driving cars. Millennials have been found to have a small attention span, tech-savvy and concerned about the environment (Standaert & Jarvenpaa, 2016). Changes in consumption habits amongst the millennial generation, primarily the move from linear television to digital media4 (Kropielnicki, 2016) affected major television networks, which lost close to 20% of their reach between 2014 and 2018 (MoffettNathanson, 2018). With television viewership a major player in driving series revenue, motorsport series such as Formula One felt the need to grow and develop a longterm relationship with fans. According to Bernie Ecclestone, CEO of Formula One Group until 2017, targeting millennials was not a priority of the racing series. In The Global

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More than 5 years On-demand video, free to view video and social media platforms

Assignment 2: Research Methods and Sports Skills for Managers

Conversation with Sir David Sorell he said, “I couldn’t understand it……the young kids don’t buy the articles that our sponsors sell, so it doesn’t help us a lot” (Autosport, 2016) Liberty Media, upon the $4.6 billion takeover of Formula One in 2017, began to invest in promoting the series digitally. It launched an Esports series, relaxed rules on posting social media content from races on social media, and boosted its following across Facebook, Google, Instagram and Twitter by 53.7% between 2017 and 2018 (Forbes, 2019). A digital media service F1 TV was also launched supported with mobile-based applications to engage smartphone users to catch Formula One on demand. Formula One claimed to have 506 million fans at the end of 2018 (Formula One, 2019), with just 14% of its fanbase under the age of 25 (Forbes, 2019). Formula E Formula E reported a 347% growth in engagement amongst the 13-17 age group, and a 54% increase amongst the 18-24 age group in the same metric, between 2017 and 2018 (Formula E, 2018). The series’ popularity on Facebook and Instagram increased during this period, with a 55% growth in follower count. A series of digital marketing tools were used to activate a larger number of millennials, most of whom had no prior interest in motorsport. Video clips covering key moments and race highlights were uploaded on YouTube shortly after the completion of the race, free to view. Formula E also looked to tap into the growing culture of viral content. For instance, a video in which a stuntman, facing away from a Formula E car that approached him at 100 km an hour, performed a blind backflip over the car, reached close to 5 million views on YouTube in one week’s time (Standaert & Jarvenpaa, 2016). Formula E engages car manufacturers, drivers, partners and fans into a singular ecosystem using innovative digital ventures. One of these innovative ventures include FanBoost, where five drivers with the most FanBoost votes are awarded a significant burst of power, which can be deployed in a 5 second window during the second half of the race (Formula E, 2019). eRace was launched in 2015, building upon the popularity of eSports. The eRace

Assignment 2: Research Methods and Sports Skills for Managers

is a virtual racing competition, where drivers race against fans on simulators (Formula E, 2019). The three fastest fans during the race weekend go head-to-head against the three fastest Formula E drivers. eSports Formula E set up its virtual championship in 2017 which ran alongside the “real-world” championship. The eSports final in Las Vegas generated large media coverage through popular gaming streaming platform Twitch, while the prize fund of $1 million was considered as the largest ever in an eSports event at the time (Standaert & Jarvenpaa, 2016). Meanwhile, Formula One launched its eSports series in partnership with Codemasters and Gfinity in 2017. The series was based on the “F1 2017” game released by Codemasters. Carbon Neutral Formula E explained the role “Life Cycle Assessment”, a carbon footprint calculator that would double up as a data collection hub. The LCA would assess all areas of Formula E activity, including freight, travel, event logistics and management, spectator travel, infrastructure and energy consumption to determine the championship’s impact on climate change (Formula E, 2019). A short-term goal of being “Net Carbon Neutral” was set out at the beginning of the series, with the New York City ePrix in season 3 the first race weekend to achieve the objective (Formula E, 2019). Formula One announced its plan to be Net Carbon Neutral by 2030. The turbo-hybrid power units introduced in 2014 and continued use today deliver more power using less fuel than any other car (Formula One, 2019). Both Formula E and Formula One maintained their commitment to run on 100% renewable energy-powered offices, facilities and factories by 2025.

Assignment 2: Research Methods and Sports Skills for Managers

Research Questions Research Question: How does digital innovation effectively identify, segment and target a millennial fan base in Formula E? Sub-Research Question 1: What are the most effective digital innovations launched by Formula E in identifying, segmenting and targeting the millennial fan base? Sub-Research Question 2: What steps are being taken by Formula E to connect emotionally and build a long-term relationship with fans? Sub-Research Question 3: How prominent is the objective to be “Net Carbon Neutral” in millennials’ attitudes towards Formula E and Formula One?

Research Objectives Based on case study analysis of digital innovations in fan experience, racing format and digital media within Formula E, how these innovations reach and appeal to millennials would be studied. The study would look to answer the research questions to develop a better understanding of how Formula E would connect, integrate and build a long-term relationship with millennial fans. Obtaining the views of millennial motorsport fans would be aided by conducting interviews at Formula E and Formula One races. The researcher would look to capture the opinion of millennial motorsport fans on environmental issues, digital innovations, racing format and social media activities of Formula E and Formula One. Upon analysis of the data using content analysis, the researcher would then be able to provide findings that may be new and lead to subsequent reasoning.

Assignment 2: Research Methods and Sports Skills for Managers

Research Design Ontological and Epistemological position The study would assume an interpretivist ontological and epistemological position. de Gialdino (2009) discussed ontological and epistemological foundations in qualitative research, touching upon four principles - resistance to the "naturalization" of the social world, relevance of the life-world concept, transition from observation to understanding and from the external to the internal point of view, and a recognition of double interpretation. Qualitative research is interested in what is understood, experimented and produced (Mason, 1996) in the meanings of these phenomena. A degree of interpretation is involved to study phenomena and the social context within which the study is based (Gobo, 2005). The study would constitute a form of pure research. Pure research generates findings that do not usually have immediate practical applications and is driven by the desire to enhance knowledge in a given area (Saunders et al., 2012). The choice of topic and objectives of the study are determined by the researcher in the case of pure research.

Methodology and Analysis Case study analysis in qualitative research allows the researcher to explore organizations through relationships, communities or programs (Yin, 2003) and allows for interpretations and reconstruction of various phenomena. Baxter & Jack (2008) mention that case study analysis would be useful when looking to answer “how” and “why” questions. As Yin (2003) mentions, a descriptive case study would be particularly useful in describing a phenomenon and the real-life context in which it has occurred. Although a degree of descriptiveness would be used to understand digital innovations in Formula E, an exploratory view while analysing interviews of millennial fans would also be used. With relatively little previous research in the concerned field, results and findings may be new and different. Case study analysis involves depth of view into the research topic to provide

Assignment 2: Research Methods and Sports Skills for Managers

new constructions of theory that may be different from the ones that are mentioned in literature (Hartley, 2004). The study would involve case study analysis, which involves collection of evidence, analysing evidence and reporting findings (Yin, 2003). Content analysis would involve thematic coding of answers provided by interviewees, where raw data would be converted into a standardized form (Babbie, 2001). Unstructured interviews with probe questions would be used. Yin (2003) mentions that probe questions for the major part of prepared interview protocol, to provide a reliable framework for analysis of data. The interview protocol would involve Likert scale-based questions to summarize the opinions of the interviewees (Larson, 1992). According to Gläser & Laudel (2004), content analysis is not merely the measurement of patterns across text but rather better demonstrated by showing the different possibilities of interpretation in different situations. Mayring (2004) suggested a three-step analytical process for qualitative content analysis, involving summarization, explication and structuring of data collected using themes, which would constitute the units of scale. NVivo would be used for analysis of the qualitative data collected, as it would help in discovering themes and in exporting for mixed-method analysis (Hilal & Alabri, 2013). Bazeley (2013) mentions that in some instances, researchers reported that NVivo opened new ways of seeing data that they missed without the software. An inductive method of interpretation would be used, which would keep the categories created in the previous step as close as possible to the central topic of discussion. A mixed methods approach would be used for analysis. Jick (1979) asserts that quantitative and qualitative methods should be viewed as complementary rather than pose competition to each other. This would allow the researcher to use triangulation, which Jick (1979, p. 604) says “can improve the accuracy of their judgments by collecting different kinds of data bearing on the same phenomenon”. Collection and analysis of the interview transcripts

Assignment 2: Research Methods and Sports Skills for Managers

and case studies would be integrated using qualitative and quantitative methods of analysis. Content analysis would then be conducted to come at the findings of the study.

Quality of Data Titscher et al. (2000) pointed out the problem of inference, with may lead to confining the researcher to specific features of internal or external validity. Mayring (2004) developed specific quality criteria for content analysis, segregating validity into material-oriented, result-oriented and process-oriented. Semantic validity concerns setting rules for coding and appropriateness of category definitions. Sampling validity talks about the criteria for precise sampling. Construct validity involves comparison with past studies, theories and tests. Krippendorff (2004) identified four sources that may lead to a lack of reliability in qualitative case study analysis. Features of the units of evaluation, or codes may differ from the material. The properties of individual categories may vary, with an example being a common level of disagreement shown towards categories. Overlapping categories would lead to misleading interpretations. Finally, the quality of work would depend on the accuracy of defining codes by the researcher.

Limitations of Proposed Study This study would face certain limitations. With very little past research in the concerned field of study, the researcher would face the challenge of analysing multiple cases of literature. Furthermore, this study would focus on “millennials” who are also motorsport fans. To ensure the highest degree of appropriateness of the sample, the researcher would interview millennial fans attending Formula E and Formula One races. This would lead to a further limitation, in that there would be a cost involved in travelling to races.

Assignment 2: Research Methods and Sports Skills for Managers

Ethical Considerations The proposed study would involve interviews with a sample aged between 13 and 24 years old. There would be certain ethical considerations with respect to minors, under the age of 18 years old. Provisional consent would be needed before research being conducted within a broadly outlined framework (Flewitt, 2005), with consent coming from the participant or the parent/legal guardian of the participant. Price (1996) suggests that compromising the research would be better than compromising participants, leading to the important point of anonymity. The study would include an anonymity clause in the broadly constructed framework of research, with no real names being used unless asked to do so.

Conclusion This study would represent a unique case study on digital innovations within Formula E, and the attitudes of millennial fans towards them. With a great amount of money being spent by Formula One (Forbes, 2019) in tapping into millennials through digital platforms, ascertaining why and how digital innovations bring long-term fans to Formula E and Formula One would offer meaningful discussion. With a sense of exploratory research within the context of the topic of research, interpretations from analysis may lead to new findings, building blocks for future research.

Assignment 2: Research Methods and Sports Skills for Managers

References Autosport. (2016, April 25). Formula 1 must do more with says digital media, Ferrari president says. Retrieved from Autosport: https://www.autosport.com/f1/news/123968/ferrari-calls-for-f1-to-embracedigital-media Babbie, E. (2001). Content Analysis. The Practice of Social Research, 304-315. Bailetti, T. (2012). Technology entrepreneurship: overview, definition and distinctive aspects. Technology Innovation Management Review. Baxter, P., & Jack, S. (2008). Qualitative case study methodology: Study design and implementation for novice researchers. The qualitative report, 544-559. Bazeley, P. (2013). Qualitative data analysis: Practical strategies. Sage. de Gialdino, I. V. (2009). Ontological and Epistemological Foundations of Qualitative Research. Forum: Qualitative Social Research, Volume 10, No.2. FIA. (2019, December 3). FORMULA E TURNS INTO FIA WORLD CHAMPIONSHIP FROM SEASON SEVEN. Retrieved from Fédération Internationale de l'Automobile: https://www.fia.com/news/formula-e-turns-fia-world-championshipseason-seven Flewitt, R. (2005). Conducting research with young children: Some ethical considerations. Early child development and care, 553-565. Forbes. (2019, October 2). F1 Reveals That Just 14% Of Its Viewers Are Under 25. Retrieved from Forbes: https://www.forbes.com/sites/csylt/2019/10/02/formulaone-makes-2-million-loss-on-digital-media/#4bbca357752e

Assignment 2: Research Methods and Sports Skills for Managers

Forbes. (2019, January 13). F1 Reveals That Just 14% Of Its Viewers Are Under 25. Retrieved from Forbes: https://www.forbes.com/sites/csylt/2019/01/13/f1-revealsthat-just-14-of-its-viewers-are-under-25/#7a6a1fb36d5c Formula E. (2018, April 9). Sign of the times - Formula E captures new, younger audience. Retrieved from Formula E: https://www.fiaformulae.com/en/news/2018/april/sign-of-the-times-formula-ecaptures-new-younger-audience/ Formula E. (2019). History: The Formula E Story. Retrieved from Formula E: https://www.fiaformulae.com/en/discover/history Formula E. (2019). Measuring and Monitoring Our Impact. Retrieved from Formula E: https://www.fiaformulae.com/en/discover/sustainability/measuring-our-impact Formula E. (2019). What is Fanboost? Retrieved from Formula E: https://fanboost.fiaformulae.com/info Formula One. (2019, November 12). Formula 1 announces plan to be Net Zero Carbon by 2030. Retrieved from Formula One: https://www.formula1.com/en/latest/article.formula-1-announces-plan-to-be-netzero-carbon-by-2030.5IaX2AZHyy7jqxl6wra6CZ.html Formula One. (2019, January 18). Formula 1's TV and digital audiences grow for the second year running. Retrieved from Formula One: https://www.formula1.com/en/latest/article.formula-1s-tv-and-digital-audiencesgrow-for-the-second-year-running.OqTPVNthtZKFbKqBaimKf.html Gläser, J., & Laudel, G. (2004). The Sociological description of non-social conditions of research. REPP Discussion Paper. Gobo, G. (2005). The renaissance of qualitative methods. Forum Qualitative Social Research.

Assignment 2: Research Methods and Sports Skills for Managers

Hartley, J. (2004). Case Study Research. Essential guide to qualitative methods ...