1

2

Figure 1.1 Linear regression model analysis on net profit and selling & distribution expenses of Rojam Entertainment Holdings Limited (8075.HK)

Record production & distribution music production digital distribution

Positive linear relationship

$1 selling expenses can produce ~$0.784 net profit

3

Net profit = c+ 0.784 Selling expensesr2(A) = 0.525 implies about 52% of the sample variability in net profit is explained by its linear dependence on marketing expenditure. r(A) = 0.72423

Source: Annual report of Rojam Entertainment Holdings Limited (8075.HK) from HKEX4

Figure 1.2 Linear regression model analysis on net profit and marketing expenses of Playmates Holdings Limited (635.HK)

Design development marketing & distribution of toys, family entertainment activity products

Positive linear relationship

$1 selling expenses can produce ~$1.356 net profit

5

Net profit = c+ 1.356 Selling expensesr2(B) = 0.876 implies about 88% of the sample variability in net profit is explained by its linear dependence on marketing expenditure. r(B) =0.93638

Source: Annual report of Playmates Holdings Limited (635.HK) from HKEX6

7

Figure 2.1 Competitive Analysis Figure 2.1 Competitive Analysis

Karaoke BoxKaraoke Boxtremendous innovative marketing campaignslimited service offeringMarketing communications

significant focus on celebritiesHK market becomes mature

Community Youth CentreCommunity Youth Centrenon-profit makinglow budget on marketing communicationslimited capacity & unfashionable image

8Source: California Red Limited & Neway Karaoke Box

9

Willing to try new entertainment apart from trad.?

n = 332

Target MarketTarget Market1.

innovators/early adopters

2.

fanatic/performers• 18-35 age group (Demographic)• exposure to internet (Behavioral)• get used to trad. entertainment• limited venues for performing

10

Have any specific target when hang out.? % of add. fees willing to pay

n = 332 n = 332

Source: Time Magazines

11

% of add. fees willing to pay

n = 332

12

•• Brand AwarenessBrand Awareness40% of target market aware of “Youth Club” by Oct, 2008to create customers’ retention of the ad in HK to 40% of audiences by Feb, 2008

•• DifferentiationDifferentiationbe unique from competitorsboth in physical & psychologicalmake “Youth Club” be the preferred brand of teens by Oct, 2008

•• Induce trialInduce trialachieve trail of Youth Club to 20% by Oct, 2008to gain 15% market by Oct, 2008

•• Positive brand imagePositive brand imagetrendy & healthy 13

14

StoryboardStoryboard

Part 1 – DreamEveryone’s dreamParadise of “ Free to choose”

Shot 1: A young man dated with 4 pretty girls(Voice-over: 每個男人都想…)

TVC designTVC design• not to spend promotional dollars on recruiting celebrities Ad Clutter• most important catch attention (humor, emotion & music)• exaggerating theme Choices

15

Shot 2 & 3: A boy playing video game console and got good result in exam(Voice-over: 每個細路都想…)

16

Shot 4: A dog having plentiful & variety meal(Voice-over: 連狗…都想)

17

Part 2 – Sad realityEveryone’s realityTragedy of “ No choices”

Shot 5: Back to reality, a family watching the Dream TVC happily(Voice-over: 但係…)(Bg. music: Sad music “Meditation”)

Shot 6: horrid wife… Shot 7: annoying homework… Shot 8: tasteless pet food…

18

Part 3 –“Choosing what you want at once”Describe the nature of Youth Club for the ease of understanding Mention brand name again for memorability

Shot 9: The “sad dog” screen become blurred and start speaking out the slogan. (Voice-over: 點解做人做狗都無得揀,黎Youth Club過百樣野比你揀, 你嗡得出o既野都有得玩)

Shot 10: Repeat the brand (Voice-over: Youth Club)

MeansMeans--

End Chain TheoryEnd Chain Theory

New Product:Awareness+Impression Brand Retention

Appeal & Execution FrameworkAppeal & Execution Frameworksurvey data revealed that in terms of attention & retention-

Humor, Emotional & Musical

• Part 1 –

Dream emotional appeal –

slice of life

• Part 2 –

Sad reality humor –

dramatization

emotional appeal –

slice of life musical appeal –

”Meditation”

• Part 3 –

“Choosing what you want at once” informative approach

Which are the most attractive & long lasting?

19

n = 332

20

•• Target Audience: Target Audience: – Teens who are innovative, creative,

like new ideas

•• Media Objective: Media Objective: – high reach to target & cost effective

•• Media & Vehicles selectionMedia & Vehicles selection -

based on variables like

reach, usage, frequency & cost

21

22

• TV & Radio are common media

TVCTVCimpact audience by visual & audio effectconveys brand imageespecially for attaching emotional feeling

RadioRadiochannels & programs

high degree of segmentationrecall of TVClow cost per reach

23

0 20 40

歲月風雲

舞動全城

同事三分親

一擲千金

味分高下

TVB Rating

Rating

Hours watching TV: 1 to 2 hrs: over 52% How many night watching TV: Every night: over 40%

Source: Breakthrough Ltd.

Source: CSM Media Research # Proportion in rating is counted by the two free TV Chinese channels in HK

24

Source: Asia Television Ltd.

Hours listening to radio: 1 to 3 hrs: over 75%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Favorite Radio Channel

Favorite Radio Channel

0.00%

20.00%

40.00%

Favourite Time Slot of Teens

Favourite Time Slot of Teens 25

Source: Breakthrough Ltd.

Source: Breakthrough Ltd.

• Printed newspaper: expensive with low appropriate reach

Magazines Magazines serve out target preciselyeasy to convey product informationhigh quality & special design are availablelonger life span, can keep for reference

26

19.20%

30.60%

33.80%6.40%

21.30%

21.40%

Types of Magazine

Integrated Youth Entertainment

Current Affairs Fashion Other

No. of Magazine will read per month: 1 to 2 : over 50% ; 3 to 4: 28%

0100200300400

2006 Readership of youth magazine ('000)

2006 Readership of youth magazine ('000)

0200400600800

TVB Weekly Oriental Sunday

Sudden Weekly

2006 readership of Entertainment Magazine ('000)

2006 readership of Entertainment Magazine ('000) 27

Source: Breakthrough Ltd.

Source: Breakthrough Ltd.

Magazine Cost for 4 

color Full  page ‐AD

Readershi

p 2006  (‘000)

CPM 

TotalReader Profile:  Percentage of segmented 

readershipAged 12 – 29 Aged 20 – 29

% Readership * 

% (‘000)% Readership*% (‘000)

Easy 

Finder30,000 366 81.96 15 24.4 4

2153.72

Milk 46,000 143 321.68 36 51.48 4

868.64

East 

Touch32,500 117 277.77 28 32.76 3

642.12

Sudden 55,000 661 83.2 8 52.88 2

2145.42

28

MTRMTRwide network coveragesophisticated segmentationlow cost per reachformat & design has high discretion

29

Mass Coverage over 2.8 million people/week

MTR advertising network:reach over 54% of the total

population in HKYoung

61% of all 15 - 34 year olds travel on the MTR.

2 phases of Ads

Which is the most attractive & long lasting?

30

Source: HK Nielsen Media Index 2004 - MTR Reach & Frequency Study

Phase 1: The Outburst - Plasma ring zone with extension + 4 Pillars and Floor vision surrounding

Phase 2: Student Package- Escalator Crown Network (253 panels)

31

‐20%

0%

20%

40%

60%

80%

Change

 in %

Change in HK Media Coverage 2000 vs 2005

Change in HK Media Coverage 2000 vs 2005

‐10%‐5%

0%5%

10%

Newspaper

Magazines

TV/Radio

Box Office

Cable/Satellite

Internet

Growth of time spent Online

Growth of time spent Online

• high reach, wide coverage especially to teens

• wide segmentation• low cost per reach

• HK internet accounts: 3.1 millions

• household broadband penetration rate: 68.7%

32

Source: Synovate media Alths HK 2006

Source: Media Guide 2006

Source: Yahoo e-marketing

0 50 100 150

Everyday

2‐ 4 days

5‐ 7 days

8 days or above

Frequency to visit internet forum

Frequency to visit internet forum 33

Messenger MSN

Top Popular 15 Websites in HK

1.Yahoo! HK2.Discuss.com.hk3.Xanga.com4.Uwants.com5.Youtube.com6.Window Live7.Facebook8.Microsoft9.HKJC10.Google.com.hk11.Atnext.com12.Google13.Watch.cc14.Baidu.com15.Blogger.com

Top Popular 15 Websites in HK

1.Yahoo! HK2.Discuss.com.hk3.Xanga.com4.Uwants.com5.Youtube.com6.Window Live7.Facebook8.Microsoft9.HKJC10.Google.com.hk11.Atnext.com12.Google13.Watch.cc14.Baidu.com15.Blogger.com

Source: Alexa Internet, Inc34

• most popular website in HK• advertising analysis &

evaluation• search Marketing

• Hitwise.com: HK has the highest volume of visits to forum

• Cnzz.com: 280,000,000 per month• >96% visitors of uwants.com are

aged fewer than 35

• increasing trend of reading news online

• free subscription• ranks no.1 online Chinese news• most visitors are teens

35

3%

56%31%

8% 2% 0%

Age Group in Atnext.com

20 or below 20 to 29

30 to 39 40 to 49

50 to 59 60 or above

Source: Hitwise Pty. Ltd

Source: atnext.com

36

Steppingstone to StarSteppingstone to Starroad show performance in crowded: MongKokrefer the talents to artiste management firmmake noise in the public selected by “Views” countpublish by ATV (new image)

37Source: Asia Television Ltd.

Net meetingNet meetingabout 55.5% of young people always use MSN to chat with others

(Youth Opinion Polls)

43% of the interviewed youngstersuse MSN everydayco-operate with Microsoft messengeronline reservation / check out event

38

Usage of MSN

Source: The Hong Kong Federation of Youth Groups (HKFYG)

n = 332

SponsorshipSponsorship+ve imagebrand awarenessin forms of annual performance/ sports event(Cycling competition is a proposed event)deliver some advertising specialties

39Source: Standard Chartered

Source: Sanmiguel

40

SweepstakesSweepstakesattract target customers - teenagers electronic products as the prize

corporate with shopping mallprize enables people free to consume in Youth club within certain period

41

DiscountDiscount“YC” = Youth Cluboffer discount for whose abbreviation name consists of “Y” & “C”e.g. Yau Chung Wai = YCW

Get the discount

42

Cash CouponCash Couponco-operate with retailers (e.g. Tom Lee Music & adidas)share same pool of customersoffer cash coupon if counterfoils are showed

Youth Club

Retailers

Geographical coupon: Whampoa Garden & Kwai Fong

43

Mutual benefit

SUMMERExamX’mas New year

Easter

44

45

0

200000

400000

600000

800000

1000000

1200000

1400000

Budget (HK$)

Budget (HK$)

Budget Allocation of HK$2,987,055 Media and

Medium selectedAds details Frequency Period Cost HKD % of

budgetFormat Duration

Broadcasting - TV

TV ads, Late Prime Time at TVB and ATV

30 sec 15 – 20 times per month

1 months 867,405 + 391,650 = 1,259,055

42%

Broadcasting - Radio 903

Sound ads 30 sec 2 times/night, 20 days/month

2 months , 196,000 7 %

Print - magazines 4 colors, Full page

2 magazines 1 page/issue 1 months,4 issues 238,000 8%

Online – Forums, online news and other popular websites

Banners, Word Searching

Whole year 142,000 5%

Outdoor - MTR Phase 1 + Phase 2

3 weeks + 4 weeks 716,000+ 76,000 = 792,000

27%

PR functions:-Steppingstone to Star- Net meeting- Sponsorship

few times/year 240,000 8%

Sales Promotion:- Sweepstakes- Discount- Cash Coupon

Discontinuous 120,000 4%

Total $ 2,987,055

46

Suppose the budget of this campaign is allocated by 10% of the projected sales.Projected Revenue: $ 29,870,550

Source: Rate card available in the market/official website

47

• Integrated Advertising, Promotion, and Marketing Communications E. Clow & D. Baack (3rd edition 2007) Prentice Hall

• Principles of Marketing Philip Kotler & Gary Armstrong (11th Edition 2006) Prentice Hall

• Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant W. Chan Renee Mauborgne http://en.wikipedia.org/wiki/Blue_Ocean_Strategy

48

http://en.wikipedia.org/wiki/Blue_Ocean_Strategy

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