Kia Motors Europe (KME), with support from Kia Motors UK Ltd (KMUK), asked Magma to deliver a feasibility study comprising the design of a Kia Concept store and associated scenario-based business models. London was selected as the location for what could be considered as a pilot for a potential European wide roll out and special consideration was given to the 2012 London Olympics as a potential program accelerator.
Magma conducted a full geo-demographic analysis of London. The flux and diversity of the London population, comprising residents, commuters and visitors, limited precise targeting but were included in the overall model. The key to success for the Kia London retail store was to focus on the optimum location for Kia’s defined target audience. Moreover, the 2012 London Olympics provided an unprecedented opportunity to present the Kia concept store to a significant international audience.
The 2012 London Olympics was forecast to attract 10.8M visitors and the Olympic Park in Stratford was expected to receive 30% of those visitors. Westfield Stratford was not only the largest shopping mall in Europe, but it was also a ‘gateway’ to the Olympic Park. It had an estimated footfall of 40M and its range of 320 carefully selected shops would appeal to Kia’s brand focused target customers.
Magma understood that the retail landscape is rapidly changing with much of the change driven by technology. Magma sought to integrate technology into the store to create a more engaging multi-channel retail experience with consumers at its core. Magma scoped a customised CRM application to manage all contacts, leads and test drives, accommodating local, national and international prospects (principally for the Olympic visitors). Robust data handling processes were defined to ensure all leads could be managed by local and national dealers, store staff or the country-specific Kia National Sales Company (NSC) for overseas contacts as applicable.
Numerous scenario-based business models were generated using cost data, expected visitor numbers and Magma’s own empirical data to calculate engagement and conversion rates. A media equivalent value including Olympic Optimisation was calculated to offset the set-up and running costs and a value of lead generation calculated based on the expected conversion rates.