Internet marketing cases 2012 h2

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© 2013, Internet Marketing, Professor Janghyuk Lee 1 1 Internet Marketing Cases This document compiles „Internet marketing cases‟ conducted by students who took „Internet Marketing‟ course at Korea University Business School (2012 Fall Semester) taught by professor Janghyuk Lee (http://biz.korea.ac.kr/professor/janglee) Each of company report includes following contents; A brief history of target company A summary of target company‟s Internet Marketing activities Target campaign: description & performance References I‟d like to thank all of my students from KUBS and who were on exchange program from around the world. Janghyuk Lee, Associate Professor of Marketing September 2, 2013

description

a compilation of Internet marketing cases including that of Volkswagen USA, Sephora, Macy's as a part of Internet Marketing course taught at Korea University Business School.

Transcript of Internet marketing cases 2012 h2

Page 1: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 1 1

Internet Marketing Cases

This document compiles „Internet marketing cases‟ conducted by

students who took „Internet Marketing‟ course at Korea University

Business School (2012 Fall Semester) taught by professor Janghyuk Lee

(http://biz.korea.ac.kr/professor/janglee)

Each of company report includes following contents;

A brief history of target company

A summary of target company‟s Internet Marketing activities

Target campaign: description & performance

References

I‟d like to thank all of my students from KUBS and who were on

exchange program from around the world.

Janghyuk Lee, Associate Professor of Marketing

September 2, 2013

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© 2013, Internet Marketing, Professor Janghyuk Lee 2 2

List

Bohae „Moon‟ campaign, South Korea: an interactive new alcohol launch

campaign

Posten (Postal service in Sweden) „Sweden‟s safest hands‟ campaign

Sephora, US: Sephora to go (mobile App)

YG Entertainment, South Korea: Psy‟s Gangnam style campaign

Noroo paint, South Korea: Painted space mobile App

New Beetle, US: Launching campaign on Facebook (+ Time square

billboard synchronization)

Macy‟s, US: Backstage (campaign)

Dessange, France: Multi-channel campaign vs. Provost

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Company Report

Kyungyoon Kang

2008120243

Business School

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Table of Contents

I. Company Introduction

1. History of Bohae

2. Sales & Profit

3. Proportions

4. Main Business Units

5. Market Share

II. Internet Marketing

1. Bohae’s Marketing Activities

2. Recent Interest

III. Bohae Moon

IV. To be

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Company Introduction

Bohae was started as a Jeolla-Do local company, and now one of

major korean alcohol companies.

History of Bohae

Bohae at now Bohae‟s products

Bohae was founded in Jeolla-Do

at 1950

Even though founder‟s effort to

Extend its business,

Bohae was bankrupted at 1968

Due to bad economy.

By acquiring Gang-lim, Bohae

restarted its second life at 1972.

Start of Bohae

As one of main alcohol company

In Korea, Bohae now owns 5

Subsidiaries, which are related

To Bohae‟s main business.

Bohae also make an effort to

realize its social responsibility,

For that reason, Bohae owns

its own scholarship club, and

voluntary service center.

Bohae’s main business

Bohae has invented many kinds

of alcohol, especially fruit wine.

One of bohae‟s main products,

Machi was launched at 1982.

Ip-Se Ju was launched at 2002.

Bokbunzaju was launched at

2004.

Bohae Moon was launched at

2011.

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Company Introduction

7,761

(661,848)

556,983

(800,000)

(600,000)

(400,000)

(200,000)

0

200,000

400,000

600,000

800,000

1 2 3

Sales

Gross Margin

Net Profit(Loss)

2009 2010 2011

129,387d 129,682d 130,260d

56,168d 55,614d 52,752d

7,761d (661,848) 556,983d

Unit:100M

Sales keep slightly increasing from 2009 to 2011 (129,387-130,260)

As described at graph, the amount of increased sales is not big, so almost stable.

Gross Margin is also stable, but there was significant net loss at 2010.

That‟s because there was loss from discontinued Operations at 2010, but this

amount of money almost recovered at 2011. (2011‟s net profit is 559,983)

Most of Bohae‟s sales revenue is from Soju sales in Jeolla-Do, and Fruits Wine.

(This factor will be elaborated at next page.)

2009 2010 2011

Sales

Gross

Margin

Net Profit

(Loss)

Sales & Profit (Recent 3 years)

Notice

Because the table for specific number of graph

is placed on this slide, I do not connect this

Graph to the Excel file. But whole financial

Statement file is attached.

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Company Introduction

Soju

Fruit

Wine

Others

Domestic

Export

Sales Proportion of Bohae

As described at left, Bohae‟s sales consist

Of mostly domestic sales.

This proportion between domestic and

export is almost same to other competitors,

and this means there is severe

competition among Korean Alcohol

companies to secure their market share.

Bohae‟s sales consists of mainly two parts,

1)Soju product such as Ip-Se Ju,

2)Fruit Wine such as Bokbunzaju.

Even though Bohae has large market

share at fruit wine market, because the

whole size of market is less than Soju‟s,

sales of Soju is bigger than Fruit wine‟s.

Sales Composition 2011

Domestic vs Export 2011

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Company Introduction

Bohae has three main business units, 1)Ip-se Ju, 2) Bokbunzaju, and

3)Machi-soon.

Bohae Ip-Se Ju

Launched at 2002/02

Won silver medal at 2007 San

Francisco White Spirit Competition.

Bohae held lots of events named

After Ip-Se Ju.

Market leader product in Jeolla-Do.

(Marker share over 80%)

Main Local Soju in Jeolla-Do Bohae’s Main Fruit Wines

Bohae Bokbunzaju

Launched at 2004.03.23.

Designated as an official alcohol

At 2005 APEC Summit Meeting.

Won at „The Dallas Morning

News Wine Competition 2005‟

Designated as an official alcohol

At 2009 OCED World Forum.

Bohae Machi-Soon

Started from Machi - 1982.

Designated as an official alcohol

At 88 Olympic.

Machi-Soon developed at 1990.

Bohae has invented lots of other

version of Machi-soon, such as

Machi-soon classic, New machi

Soon, and Golden Machi-soon.

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Company Introduction

Company „Bohae‟ is the forth company in terms of market share in Soju market.

Its main product in So-ju market is „Ip-Se Ju‟.

Because Bohae is started as a local company in Jeolla-Do, most of their sale in

Soju occurred in Jeolla-Do.

Soju market share of „Ip-Se Ju‟ in Jeolla-Do is over 80%, but soju market in

Capital area and Seoul is almost occupied by Lotte and Jinro.

구 분 2011년 2010년 2009년

보해양조 5.59% 5.68% 5.95%

금 복 주 7.88% 8.14% 8.42%

롯데주류 17.66% 16.63% 15.46%

대선주조 4.03% 5.72% 7.09%

무 학 12.01% 9.45% 8.00%

선 양 3.45% 3.25% 3.12%

진 로 45.86% 47.32% 48.09%

충북소주 1.33% 1.51% 1.51%

보 배 0.99% 1.10% 1.16%

한 라 산 1.19% 1.20% 1.19%

Market Share in Korea Soju Market

Soju Market Share in 2011

Source: Bohae‟s Business Report on DART

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Table of Contents

I. Company Introduction

1. History of Bohae

2. Sales & Profit

3. Proportions

4. Main Business Units

5. Market Share

II. Internet Marketing

1. Bohae’s Marketing Activities

2. Recent Interest

III. Bohae Moon

IV. To be

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Internet Marketing Activities

Bohae had used Internet for marketing activities before, but was not active.

Bohae owned an united website for its company, and offered information for its

Products and company‟s history.

For internet marketing, Bohae run survey page and event page, to communicate

With its customers and collect their opinions and needs.

Internet Marketing strategy Bohae used was so limited, and could not be

Interpreted as active Internet marketing activities.

Bohae‟s Integrated Website Survey Event Page in website

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Internet Marketing Activities

Recent Interest – Bohae Moon

As described at market situation-Soju,

Sales of bohae soju is limited at Jeolla-Do.

Channels for alcohol sales are 1)Supply to pub or

bar, and 2) to small-middle size or supermarket.

To extend its business, Bohae started to have

Interest in soju sales in capital area And Seoul.

For this reason, Bohae launched Bohae Moon and

Bohae Gang at DEC/2011, which are made with

Single spirit - Sugar cane.

Unique Selling Proposition of those products are

„Easy to drink and less hangover‟.

But with only competitiveness of product, Bohae cannot compete with other

competitors because its products are not well known to people who live in capital

area.

Efficient way to expose its product is required!

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Table of Contents

I. Company Introduction

1. History of Bohae

2. Sales & Profit

3. Proportions

4. Main Business Units

5. Market Share

II. Internet Marketing

1. Bohae’s Marketing Activities

2. Recent Interest

III. Bohae Moon

IV. To be

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Bohae Moon

After healing campaign was launched, Visitors over 120M.

Diffused efficiently through web in spite of strict regulation for alcohol ad.

Campaign

Results

• Start: June 14, 2012

• Via Web platform – www.bohaemoon.com

• Provide interactive experience and healing service

Through simulation game with top actress Han Ga-In

• Website + SNS link + QR code + Phone number

Approximately 2 months in:

• Website Visitors : over 55M after 1 month, and

Over 120M after approximately 2 months

• The frequency of Daum search : Over market

leader‟s product search, and its main product

Search

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Bohae Moon Key Idea 1: Experience – Interaction

To give users special experience, Bohae implemented 1)Interactive

marketing.

Bohae built up Bohae moon‟s own website separated from company‟s website.

By visiting this website, users can play simulation game with Korea‟s top actress

Han Ga-In.

While playing this simulation, users can talk with Ga-In, and drink „Moon‟ together.

Ga-in‟s reaction can be different depending on users‟ answer to question.

This is called interactive marketing, because delivering information is not one-

way any more, instead users can feel as they are interacting with Ga-In.

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Bohae Moon Key Idea 2: Experience - Healing

The concept of this special experience is 2)Healing.

„Healing‟ process consists of three parts, 1)Alcohol for healing „Moon‟, 2)Place for

healing „Web platform- Virtual Bar‟, and 3)Human for healing „Ga-In‟.

During the whole process of this program, healing person „Ga-In‟ is concerned

about users‟ feeling and tries to treat users‟ worry by recommending „Moon‟ in

virtual bar.

Additionally, Ga-In also recommends music sets, which are good for healing mind.

Furthermore, if users click the button „I feel good today‟, Ga-In is going to

recommend music set which is appropriate for good mood.

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Bohae Moon Key Idea 3: Experience - Fun

In addition to Healing experience, Bohae moon offers 3)fun experience.

While playing this simulation, users can write down their own words on virtual

bar‟s wall.

While writing down on the wall, users can read what other people have wrote and

can communicate with them.

Bohae moon also offers tarot card readings through its web platform to maximize

users‟ utility.

Through those services, users can be immersed in this simulation and enjoy this.

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Bohae Moon Key Idea 4: Ubiquitous

Users can connect with Bohae Moon by using diverse platforms-

1)Youtube.

Bohae Moon made Busker-Busker‟s music video to advertise it‟s product „Moon‟.

Busker-Busker‟s „Yeosu Night Sea‟ was one of popular music and Yeosu was the

center of attention because of Yeosu Expo when they started this advertisement,

and this was good match to Bohae, because Bohae originated in Jeolla-Do.

To distribute this music video, Bohae used Youtube as a platform to overcome

regulation for alcohol advertisement and make self-diffusion.

This music video can be exposed to cinema screen and karaoke in spite of

regulation, because this is classified as an Music contents.

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Bohae Moon Key Idea 4: Ubiquitous

Users can connect with Bohae Moon by using diverse platforms-

2)Facebook and 3)Twitter.

1

1

Bohae Moon is actively using SNS such as Facebook and Twitter to

communicate with potential customers.

Bohae keeps doing various events to make people recognize „Moon‟ through

SNS.

Even though people can find „Moon‟ in major supermarkets, have difficulty in

finding „Moon‟ at pubs. To improve this situation, Bohae collects information about

customers‟ needs through SNS, and put its products at customers‟ hangouts at

first.

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Bohae Moon Key Idea 4&5: Ubiquitous and easy to use

Bohae Moon‟s web platform can be accessed through 4)Mobile platform,

so overcome locational constraint, and secure 30-45 segment.

Bohae Moon not only uses QR code or color code, but also uses mobile phone

number to offer their program to customer everywhere.

Traditional target customer segment for So-ju is 30-45 years old male customer.

But this hybrid marketing way such as QR code is hard to use for this segment.

To overcome this constraint, Bohae Moon uses phone number. By calling this

number, users can talk with Ga-In and automatically be connected to Bohae

Moon‟s web platform by touching SMS from Ga-In after talking.

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Bohae Moon Key Idea 6: Collecting data

Bohae Moon‟s web platform can collect customer base data naturally.

While playing this simulation, users are going to be asked their personal

information naturally.

Ga-In wants to know users‟ phone number, so Bohae can secure customer base

Information through this process.

To write down your own words on virtual bar, users are required to put their

personal information or make connection to their own FB page.

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Bohae Moon Indicators for ripple effect of Bohae Moon web platform

Just after its campaign, the number of visitors to its web platform and

frequency of search „Bohae Moon‟ dramatically increased.

According to press and Bohae, the number of visitors to its web platform during

6/14 – 7/25 was over 120M, and visitors per day was approximately 3M.

The frequency of search „Bohae Moon‟ through search engine „Daum‟ exceeded

market leader‟s product-Chameesul‟s search frequency and Bohae‟s other main

product-Bokbunzaju‟s search frequency just after its campaign started even

though Moon was new product.

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Bohae Moon Indicators for ripple effect of Bohae moon‟s FB and Twitter

Bohae Moon actively uses SNS such as FB and Twitter and keep in touch

with heavy users.

According to Facebook Statistics, the number of people who like Bohae Moon‟s

FB page is 982, and talk about this is 144. If considering Moon‟s market share,

it is reasonable to interpret that Bohae Moon actively uses FB page.

Bohae Moon also actively uses Twitter page and replies to many users‟ tweet.

If analyzing users who were frequently replied by Bohae moon, they are

classified as heavy users.

Bohae Moon‟s Tweet Stat

Shygirlzzang‟s Tweet Stat

Jihye‟s Tweet Stat

Bohae Moon‟s Facebook Stat

2 3

2

3

1

1

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Table of Contents

I. Company Introduction

1. History of Bohae

2. Sales & Profit

3. Proportions

4. Main Business Units

5. Market Share

II. Internet Marketing

1. Bohae’s Marketing Activities

2. Recent Interest

III. Bohae Moon

IV. To be

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Bohae Moon To be & Introspection

Bohae Moon should keep using SNS actively to secure their loyal

customers and keep trying to be exposed to them.

To wrap up, Bohae Moon did not only use website platform, but also tried to combine different types of

channels. For example, Bohae Moon made an effort to use its website for main service and archiving,

and also use twitter and facebook to diffuse information.

However, as described above, the frequency of Bohae moon‟s interaction through FB is dramatically

decreasing.

In order to secure their loyal customers and their market share in Seoul, Bohae moon should keep in

touch with their customers, keep creating and maintaining profitable relationship and actively use SNS

pages to be exposed to them.

Even though Bohae Moon used the popularity of „Yeosu Night Sea‟ and Ga-In, the number of hit of this

video is lower than the number of hit of live video of same singer. Bohae Moon should have done

more active promotion!

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Reference

Related URL

Bohae Moon http://www.bohaemoon.com

Bohae http://www.bohae.co.kr

Bohae Moon FB http://www.facebook.com/#!/bohaemoon

Bohae Moon Twitter https://twitter.com/bohae

Daum Trends http://trend.search.daum.net

Tweetstats http://www.tweetstats.com/

Video URL

Ga-In‟s reaction Video on Youtube

http://www.youtube.com/watch?v=Zy3cr6Vqrg8

Busker-Busker „Yeosu Night Sea‟ with Bohae

http://www.youtube.com/watch?v=JNNaNnCptbM

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(Posten AB) “Sweden‟s safest hands” (Trygga Händer)

Company report

Kim Baik Gin Hi 2010120384

Internet Marketing 2012 Prof. Janghyuk Lee

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Company Introduction

History and background

-PostNord AB is a holding company formed in 2009 after the merger of the

postal services of Sweden and Denmark, Posten AB and Post Danmark,

respectively. As a parent company of Posten AB and Post Danmark,

PostNord is a Swedish public company 40% owned by the Danish state

and 60% by the Swedish state. After the merger PostNord quickly started

to lead several areas of the European Nordic market, such as

communication, mail operations, advertising and logistic service provider.

Consequently, it has become a critical factor in the Nordic e-commerce.

“The mail operator for all of Denmark and all of Sweden”

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Company Introduction

Main business units

The main business are divided into four divisions, namely:

1) Breve Danmark (Mail Denmark): mailing and advertising (physical and digital

letters), newspaper services, drop-off and collection of parcels and supply of

distribution solutions for the Danish communications market.

2) Meddelange Sverige (Mail Sweden, under “Posten” brand): mailing and

advertising (physical and digital letters), newspaper services, drop-off and

collection of parcels and supply of distribution solutions for the Swedish

communications market.

3) Logistics: distribution networks in the Nordic area, mainly, parcels, pallets,

mixed cargo groupage, messaging, third-party logistics and freight forwarding.

Stock-keeping and distribution of parcels for e-commerce market.

4) Stralfors: development of systems, services and products to enhance business

communications. Marketing and distribution of parcels for e-commerce market.

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Company Introduction

Sales/Profit (2009-2011)

PostNord‟s Annual report 2010, 2011.

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Company Introduction

Performance Summary

PostNord‟s Annual report 2010, 2011.

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Company Introduction

Sales/Profit for Meddelange Sverige (Mail Sweden, Posten) (2009-2011)

PostNord‟s Annual report 2010, 2011.

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Internet Marketing Activities - Posten

Communication

Web:

http://www.postnord.com/en/

http://www.posten.se/en/Pages/home.aspx

Youtube channel (storage of videos used in Posten‟s website):

http://www.youtube.com/user/PosteniSverige

E-commerce blog:

http://e-handelsbloggen.nu/

App store:

https://itunes.apple.com/se/app/trygga-hander-ett-spel-fran/id510407632?mt=8

(Sweden‟s safest hand campaign)

https://play.google.com/store/apps/details?id=se.posten.postenqr&hl=en (Postcards)

Sales (some of the services are only available for Swedish citizens)

Channels

Direct link http://www.directlink.com/index.jsp (mail, distribution, finance mail and business

mail solutions service)

Online shop http://www.posten.se/en/shop/Pages/Shop.aspx (Stamp sales)

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Internet Marketing Activities - Posten

Sales

Channels

Private services http://www.posten.se/en/Private/Pages/home.aspx

- Buy and sell online: paid on delivery, express shipments, next-day delivery,

send valuables (and SMS or e-mail notification).

- ePostbox: online mailing system for banking, account statements, bills, etc.

-Send a greeting: http://www.gladjespridaren.se/ (postcards/postogram, greetings).

http://www.posten.se/en/Private/Send-a-greeting/Send-postcards/Pages/home.aspx

-Postcards (through mobile services) – iPhone and Android app with QR codes

Business services http://www.posten.se/en/Business-Mail/Pages/home.aspx

-Business mail, letters and parcels, business communication.

-E-commerce: marketing, distribution, payment, tools for e-retailers.

-Digital tool: Posten in office (digital service to send printed letters from one‟s

computer)

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Internet Marketing Activities - Posten

Sales

Channels

Logistics (Pacsoft online): shipments, delivery time calculation, customs

information, transportation, etc.

http://www.posten.se/en/Logistics/Pages/Home.aspx

Market communication: direct mail, marketing (google advertising)

http://www.posten.se/en/Market-Communication/Pages/Home.aspx

Other channels: physical distribution points in the Nordic area.

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Sweden‟s safest hands (Trygga Händer) – Mobile Campaign

“Sept. 26th~Oct. 9th

Agency: Akestam Holst, Stockholm. Developer: Monterosa

Campaign

Results

• Start: September 26, 2011 • Only for Swedish Citizens / Only for iPhone users

• Real world activities through game application.

Users will have to deliver virtual parcels to specific

locations.

• GPS tracking+ compass + accelerometer + Mobile app

Within the campaign duration:

• Google search volumes for “Trygga Händer” account for

10% of that of “Posten AB”. Increase of “Posten AB” hits for

the same period of Trygga Händer‟s campaign.

• Application D/L: reached 1st position within entertainment

apps and top ten within overall apps from the Apple App

Store Sweden.

Actual download figures are not disclosed by the App Store.

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Sweden‟s safest hands (Trygga Händer) – Mobile Campaign

Trygga Händer Trygga Händer vs. Posten AB Google Trends

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Sweden‟s safest hands (Trygga Händer) – Mobile Campaign

App download statistics.

AppFigures (daily rank available at the web)

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Users that download the application will have the chance to deliver the parcels that

are released every day at 6am, 12pm and 6pm during the duration of the campaign.

(42 parcels).

The parcels have to be carefully delivered to specific places according to the

user‟s location. If delivered properly, there is a reward of SEK 300 to SEK 5,000

(USD $42 – $740). If the user “drops” the parcel by bumping against an obstacle the

game will have to restart.

.

Sweden‟s safest hands (Trygga Händer) Key idea 1: Fun

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Real world interaction through mobile technology. (Augmented reality-like)

Delivers entertainment and rewards outstanding performers.

Multiple competitions per day, flexible time and customize localizations.

Real time and movement sensitive application that delivers realistic

challenges for users

Sweden‟s safest hands (Trygga Händer) Key idea 1: Fun

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One of the key ideas of this campaign is that Posten AB has the chance

to highlight the quality and innovative features of their service by

making customers experience a similar task of that of their business

operations.

Users will compete and make efforts to win the prize, consequently,

they will implicitly absorb the idea that the company will also do their best

in order to deliver a good service.

“A whole advertising campaign compressed into a single task (game).”

Sweden‟s safest hands (Trygga Händer) Key idea 2: Insight

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Users will follow directions from virtual maps in real locations. They are

also likely to pass by or follow Posten AB postal offices or similar

distribution networks.

Users will also learn the locations of several Posten AB postal offices.

Sweden‟s safest hands (Trygga Händer) Key idea 3: Integration of reality with virtual world

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Posten AB has the largest share in the postal market in Sweden, thus, awareness is not a problem for

the company. However, as shown before, Posten AB is a company offering several services through

internet and mobile devices, thus, Sweden‟s safest hands is also a perfect opportunity to break the

image of standard postal services through a direct exposure to the service.

The target audience is primarily private users (B2C focus).

Sweden‟s safest hands (Trygga Händer) Target audience and goals: B2C / Innovate the business

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Net sales for the period after the campaign (after Oct. 9th 2011) for 2010 and 201

1 are quite similar for Meddelande Sverige (Mail Sweden, Posten).

Sweden‟s safest hands (Trygga Händer) More results and conclusion

PostNord‟s Year end report 2011

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Posten AB‟s strongest competitor, namely, Posten Norge AS (Norwegian) with its brand Bring

Citymail and Bring mail, has had similar revenue figures for 2010 and 2011 as well, thus the

market share of this two companies is expected to stay equal, although Posten AB still enjoys

great dominance over the Swedish Market (around 88.6% as of 2009).

Sweden Safest Hand proved to be innovative and relatively new, whereas in terms of sales it

could not deliver. However, the success in app downloads should comply with the goal of

bringing insight and innovation of their business operations to the customers.

Sweden‟s safest hands (Trygga Händer) More results and conclusion

Posten Norge Annual Report 2011, notes. Swedish Post and Telecom Agency, 2001

Page 47: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 47 47

Campaign technical details

Advertising Agency: Å kestam Holst, Sweden

Web / App production: From Stockholm With Love

Sound production: Plan 8

Account supervisor: Göran Å kestam

Account manager: Jacob Stjärne

Creative Director: Andreas Ullenius

Copywriter: Hanna Björk

Art Director: Lars Holthe

Production manager: Daniel Sundin, Maria Ljung

Planner: Lars Friberg

Digital producer: Johan Eklund

Graphic designer: Oscar Gardö, Anna Forsberg, Andreas Dagman

Motion designer: Nisse Axman

Assistant Art Director: Kim Ihre

Page 48: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 48 48

Reference

Related URL

Trygga Händer http://www.tryggahander.nu/

Ourwork Safest Hands http://ourwork.se/safesthands/

PostNord Annual Reports 2010, 2011 http://www.postnord.com/en/Investor-Relations/Finansiell-infor

mation/2011/

Posten Norge Annual Report 2011 http://www.postennorge.com/annual-report-2011/results/notes

Swedish Post and Telecom Agency http://www.pts.se/upload/Rapporter/Post/Service%20and%20co

mpetition%202011.pdf

Posten AB service information http://www.posten.se/en/Pages/home.aspx

Google trends http://www.google.com/trends/explore#q=posten%20ab%2C%20Trygga%20H%C3%

A4nder&cmpt=q

AppFigures https://www.appfigures.com/reports/ranking

(Product: Trygga Händer From Stockholm with love, Sept 26th~Oct 9th, country Sweden)

Other links:

Google play QR codes for Postcards https://play.google.com/store/apps/details?id=se.posten.postenqr

&hl=en

Guerrilla Marketing http://www.creativeguerrillamarketing.com/guerrilla-marketing/swedens-safest-hand

s-iphone-app-hit/

Appover http://www.appover.com/search/trygga-h-nder-en-t-vling-fr-n-posten/461731785/

Video http://www.youtube.com/watch?v=-j0PXi2wz6Y

Page 49: Internet marketing cases 2012 h2

Company Report: Sephora USA Inc.

Ah hyun Kim

Page 50: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 50 50

Company Introduction (1)

History

Started in France in 1969 as a single perfume shop by Dominique

Mandonnaud

Expanded to several stores in 1979 with innovative retail shop concept,

“assisted self-service,” which encourages customers to do trial and select the

product by themselves.

Purchased by Luis Vuitton Moet Hennessy in 1997

Entered USA in 1998, selling a wide range of cosmetric, fragrance, hair, and

skin care products.

Now operates 1300 stores in 27 countries world wide and over 300 stores

across North America, carries over 13,000 products and 250 brands

Page 51: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 51 51

Company Introduction (2)

Internet Marketing Moves

Sephora.com launched in 1999 with 190 brands

Integrating third party built software (rating and review broads) to website to

add ratings and reviews in 2008

Started Facebook in 2009

“Beauty Talk” Customer QnA forum launched on Facebook and website in

2009

Started Twitter in 2009

Sephora Youtube channel initiated in 2009

Launched Mobile optimized website and Iphone shopping App in 2010

IPAD App in 2011

Main business units

Beauty Product Retail

Page 52: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 52 52

Company Introduction (3)

Finance

source: Sephora Annual Report 2011, p.6, http://issuu.com/ivanawong/docs/ivanaw_sephora

Page 53: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 53 53

Internet Marketing Activities

Communication

Web : http://sephora.com

Mobile : http://m.sephora.com

Facebook : http://ko-kr.facebook.com/Sephora

Youtube : www.youtube.com/user/sephora

Blog : http://ko-kr.facebook.com/Sephora

Twitter, Mobile Apps

Sales

Offline stores

Online Web and Mobile site, and Mobile App

Cases

Page 54: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 54

Sephora‟s Mobile Shopping App: “Sephora to Go”

2m downloads, top ranked from L2,

Review

Results

• Start: September, 2010

• Iphone App, simplifying shopping procedure and

easier access to product info and promotion =12

primary menu catagorires

• Pulling up product info. by scanning barcodes

• Linked to Mobile Website + App + SNS (incl.

pinterest) + Facebook + Youtube+Web service

• 100k downloads in the first few weeks

• 2m downloads by April 2012

• 4.5 out of 5.0 rating in Itunes app store

• ranked top from digital innovation think tank L2

• Having 1m reviews and ratings of products

• 300% mobile sales increase in 2011

Page 55: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 55 55

Sephora to Go Key Idea 1: Easy Off/Online Shopping

Organized and simplified version of the previous mobile website helps

customers to find products and related info quick and easy

Adding the “scaning” function to let customers view product videos, produ

ct information, ratings and reviews and add products to shopping lists in s

tores (offline) by scanning the product barcodes

“Try it on” menu gives custromers a chance to try on a vast spectrum of

polishes from Sephora by OPI to find their new favorites

Let Customers find Sephora stores closest to them using your phone's

GPS.

Page 56: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 56 56

Sephora to Go Key Idea 2: “Assisted Self-service”

Menus such as Try it on, Beauty Insider and Video are to provide

customers with chances to search for their favorite colors, review their

past purchase pattern and get experts‟ recommendation and info. These

lead customers to keep “studying” what they like and “analyzing” their

preference based on their own past purchase activity and expert‟s

advices.

As a result, customers can know definately what product they need by

themselves and have self-confidence and full self-satisfaction on their

purchase

Sephora’s Philosophy Also Actualized in Sephora to Go

Page 57: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 57 57

Sephora to Go Key Idea 3: Engagement and Integration

Customers can participate in reviewing and

rating products and view more than 1m re-

views and ratings written by your fellow Sep

hora shoppers.

Beauty Advice encourages customers to

share their product experiences and

advices on Facebook (linked to Facebook)

Linking mobile service to other digital marketing tools including Web,

Facebook, Youtube library, Twitter feeds, blog and Pinterest

Linking online to offline: Beauty Insider membership card into Apple‟s

passbook. Various types of card barcodes, including gift card, coupon,

membership card, are kept in iphone and used in offline stores

Page 58: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 58 58

Sephora Claus Campaign

Review • Started: 2009. 11.18 ~ 2009. 12. 19

• Sephora fans on Facebook and followers on twitter

tweet on twitter with an @Sephora message and tag

their wish (a product priced less than $150) with a

#sephoraclaus “hashtag,” and one wish is granted every

day.

• Fans can also submit a wish on the fansy flash-based micro-site,

“sephoraclaus.com”

• Gives free samples to those who become a Facebook fan and

•share her wish with other facebook fans

Results

• 50,257 wishes submitted and 30 granted, from over 107,189

visitors in 120 countries

• 46% increase in Twitter followers

• 53% increase in Facebook Fans, with 20,538,002 projected

Impressions.

• Estimated Influence (by Sephora): $1 million of sales

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Sephora Claus Campaign Key Idea 1: Fun

Designed sephoraclaus.com to be

fansy in order to attract the main

target customer, women.

One‟s wish tag image appears on

the site with her name on and gets

piled up as others submit: provides

visual fun

Once click on any tag, a person‟s

wish tag rolls up, comes to the

center and reveals what product

she wants: gives fun to see what

others want as well

Page 60: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 60 60

Sephora Claus Campaign Key Idea 2: Engagement and Integrated Channels

Promotion that if a person

becomes a Sephora fan on

Facebook and share her wish with

other facebook friends, she gets a

special code on Sephora online

store to receive free samples

Through the above, Sephora gets

increase in fans on facebook, visits

on online stores, fan‟s engagement

in the campaign and the number of

campaign participator in the end.

Page 61: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 61 61

Red Haute Mosaic Campaign

Review

• Started: 2010. 9 ~ 2010. 10

• Facebook App

• Fans are asked to wear a red lipstick found on sephora.com and take a

picture of themselves, edit the picture to show lips exclusively and

upload to a sephora’s red lips photo mosaic.

• Fans share their story of red lipstick experience they used on the

facebook.

• When the mosaic completed, auctioned off for charity purpose

Results

• Thousands of new Facebook fans

• In the first four weeks, No. of “likes” grew 118%

• 3773 Installed users

• Over 200 client stories shared

Page 62: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 62 62

Red Haute Mosaic Campaign Key Idea 1: Fun and Social Responsibility

When uploaded, the picture of one‟s lips with red lipsticks gets put on

the huge virtual kiss mosaic: fun to show off, see others and how the

mosaic gets filled with users‟ lips.

Once a user buys a red lipstick from any sephora stores (online/offline),

$1 of the price spent for donation to non-profit organization

When the virtual kiss mosaic completed, actioned off for charity

purpose

Page 63: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 63 63

Sephora Claus Campaign Key Idea 2: Engagement and CSR integrated

Integrating facebook app into the

Facebook wall by letting users

share kiss along with a personal

message on the facebook wall,

women can share their feeling and

opinion about red lipsticks.

User‟s online participation in the

campaign becomes social activity

to give poor ill-patients an

opportunity to go on a beauty spa

trip (Sephora gets CSR benefit also

through this campaign)

Page 64: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 64 64

15 days of Beauty Thrills Campaign

Review

• Started: 2012. 5.23 ~ 2012. 6. 6

• Facebook, Web

• A series of daily sweepstakes with prizes such as a Fiat with a

Gucci interior and a trip for two to LA

• “mini thrills” in the form of different cosmetic products given

away every day.

• A fan-gate of the Facebook app encouraged users to like

Sephora’s page for an exclusive preview of tomorrow’s “thrill”

.

Results

• Fan base about six times normal growth rate,

• A bigger lift in sales than what Sephora normally sees on

Facebook (excepted From SVP of Sephora USA, Julie

Bornstein. Specific Data not given yet)

Page 65: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 65 65

Sephora Claus Campaign Key Idea: Simplicity and Encouraging User to be exposed to new brands

Users simply click on the “like” on

the facebook, then they can view

daily sweaptakes and prize

giveaways and participate.

Gives incentives to those who

clicked “like” on a product when

purchase the product online for

“mini-thrill” (receiving full product or

samples)

Page 66: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 66 66

Conclusion (1)

Sephora‟s internet marketing widened the awareness of the brand: it has

continuously affected positively on

3.5 million Facebook fans, 522,000 Twitter followers and 30,000 Pinterest

followers as of now

Sourse: Sephora Direct: Investing Social Media, Video and Mobile,” , Harvard Business School Case, June

25 2012, p. 17

source: Sephora Annual Report 2011, p.6, http://issuu.com/ivanawong/docs/ivanaw_sephora

Page 67: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 67 67

Conclusion (2)

Sourse: Sephora Direct: Investing Social Media, Video and Mobile,” , Harvard Business School Case, June

25 2012, p. 19

source: Sephora Annual Report 2011, p.6, http://issuu.com/ivanawong/docs/ivanaw_sephora

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© 2013, Internet Marketing, Professor Janghyuk Lee 68 68

Conclusion (3)

These increases also affected on sales growth

Sourse: Sephora Direct: Investing Social Media, Video and Mobile,” , Harvard Business School Case, June

25 2012, p. 17

source: Sephora Annual Report 2011, p.6, http://issuu.com/ivanawong/docs/ivanaw_sephora

Page 69: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 69 69

Conclusion (4)

Sephora USA‟s Sales Growth 2011

Sourse: http://www.stores.org/2012/Hot-100-Retailers?order=field_percent_change_value&sort=asc

source: Sephora Annual Report 2011, p.6, http://issuu.com/ivanawong/docs/ivanaw_sephora

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© 2013, Internet Marketing, Professor Janghyuk Lee 70 70

Conclusion (5) Sephora Leading Internet Maketing

Retail Store

Analyzing, Following social media trend quickly, and integrating

channels and online/offline purchase – Started internet web store in

1999 based on the appreiciation of the growth in online sales,

Facebook, Youtube, Twitter and mobile services when they were

about to be boomed, and recently pinterest base on the analysis that

it is ranked 3 in the most popular SNS service ranking and Sephora‟s

target customers‟ preference on it. Finally, provides various fun

campaigns and marketing activities in the integrated channel forms.

Its successful off-store philosophy, “assisted self-service” well

reflected in internet marketing as well. Inventing and providing a way

to lead customers to find and share what they like by themselves and

purchase with confidence on their choice. Experiment product on

mobile devices, simple click or touch past purchase review that gives

experts‟ advice what product she would like based on the data…etc

are the case.

source: Sephora Annual Report 2011, p.6, http://issuu.com/ivanawong/docs/ivanaw_sephora

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Reference

Related Articles

Sephora Direct: Investing Social Media, Video and Mobile,” , Harvard

Business School Case, June 25 2012

2012 hot 100 retailer: http://www.stores.org/2012/Hot-100-

Retailers?order=field_percent_change_value&sort=asc

Sephora Annual Report 2011, p.6,

http://issuu.com/ivanawong/docs/ivanaw_sephora

How Sephora Used Facebook to „Thrill‟ Its Fan Base:

http://mashable.com/2012/06/20/sephora-15-days/

Sephora: A Brand Case Study:

http://home.ubalt.edu/nicole.kerber/pbds705/Sephora_Case_Study.pdf

15 days of Beauty Thrills: http://www.facebook-

studio.com/gallery/#/gallery/submission/red-haute-lips

Blog Article: http://econsultancy.com/kr/blog/9562-sephora-says-shopping-

via-mobile-grew-300-last-year

Page 72: Internet marketing cases 2012 h2

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Reference

Related URL

Web : http://sephora.com

Mobile : http://m.sephora.com

Facebook : http://ko-kr.facebook.com/Sephora

Youtube : www.youtube.com/user/sephora

Blog : http://ko-kr.facebook.com/Sephora

Twitter: http://twitter.com, @sephora

Video, image, etc.

http://blog.sephora.com/2010/09/help-us-build-worlds-largest-virtual.html

http://www.luuux.com/node/2160957

http://spoiledpretty.com/2012/05/sephoras-15-days-of-beauty-thrills/

http://www.24-7intouch.com/blog/index.php/2012/07/concentrate-on-the-

customer-experience-how-sephora-uses-social-developing-your-own-

strategy/

Page 73: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 73 73

Reference

http://sephoraclaus.com

https://itunes.apple.com/us/app/sephora-to-go/id393328150?mt=8

http://popsop.com/30687

http://www.mobilecommercedaily.com/sephora-sees-87k-passbook-

downloads-a-week-after-release

http://glossy-kiss.blogspot.kr/2009/11/with-sephora-claus-who-needs-

santa.html

http://www.lipsticking.com/2009/12/the-sephora-claus-holiday-promotion-

on-twitter-is-granting-a-beauty-wish-a-day.html

http://www.shop.org/c/document_library/get_file?folderId=195&name=DLF

E-970.pdf

http://www.youtube.com/watch?v=clUABxAAQik

Page 74: Internet marketing cases 2012 h2

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http://shop.sephora.com/w/webView?cid=18510126042&mid=1169143964

&pid=444936&vid=13520&ee=Y25lZXJvZDJAYW9sLmNvbQ__&si=&mv

=H&bv=H&oc=O&sc=&k=15hxYS&om_mmc=ret-n1-

20110102iPhoneCase---all-b2bban-gwp--om-us-landingtext-text-h-

&dcid=444936:18510126042:12059274

http://www.brandingbrand.com/products/sephora-to-go-iphone-app

http://pokenewyork.com/love/sephora/

http://www.ignitesocialmedia.com/social-media-examples/10-social-media-

marketing-examples-case-studies/

http://community.sephora.com/t5/Customer-Support/Beauty-Insider-Card-

in-Passbook-for-iPhone/td-p/373239

Page 75: Internet marketing cases 2012 h2

YG Entertainment

Hyeong-Jun KIM

2007120320

Page 76: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 76 76

Company Introduction

- Company name

: YG Entertainment Inc.

- Opening date

: Feb 04, 1998

- Main Entertainer

: Psy, BIG BANG, 2NE1 etc

- Main Business model

: Record producing,

Performance management,

Entertaining management

Main director : Yang Hyun Seok

Famous in 1990s, former member

of Seo-taji and kids.

Page 77: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 77 77

Company Introduction

Why Choose YG Ent?

Main Director : YG

Before scouting PSY,

He made other successes from other

Artists he produced.

<BIG BANG> <2NE1>

a lot of works in Entertainment

area.

Page 78: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 78 78

Company Introduction

History(timeline)

1998. 2

Establishment

2001. 5

Change name

To YG ent.

2006. 8

BIG BANG

Debut

2009. 7

2NE1 Debut

2010. 10

Incruit PSY

2012. 9

Gangnam Style

ranked 2nd on

Billboard

Page 79: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 79 79

Company Introduction

Sales/Profit (recent 3 years)

by Korean Won. 2012 half

2011 2010 Quarter Cummalative

Sales 22,797,024,127 40,671,805,730 78,120,542,357 57,515,835,449

Sales cost 12,762,188,430 22,458,867,928 46,984,772,686 33,132,787,063

Sales revenue 10,034,835,697 18,212,937,802 31,135,769,671 24,383,048,386

Operating cost 6,005,224,602 10,694,350,381 13,379,680,645 11,487,881,598

Other operating income 189,177,029 305,399,596 866,346,718 1,460,047,499

Other operating cost 121,625,223 167,184,739 1,285,976,394 765,609,727

Operating income 4,097,162,901 7,656,802,278 17,336,459,350 13,589,604,560

Financial income 785,368,750 699,687,905 369,823,752 104,265,167

Related corporation income 104,183,946 436,567,408 (60,449,322) (179,566,610)

EBIT 4,986,715,597 8,793,057,591 17,645,833,780 13,514,303,117

Taxation 1,489,854,734 2,265,079,443 4,711,925,140 3,883,669,636

Revenue 3,496,860,863 6,527,978,148 12,933,908,640 9,630,633,481

The company minizes costs and maximizes revenue with

conservative manner.

Page 80: Internet marketing cases 2012 h2

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Company Introduction

Sales/Profit (recent 3 years)

- expectation of this operating year

With Hit of Gangnam style, Comeback of BIG BANG, other revenues

YG entertainment grows fast with high income ratio!

year sales operating income income ratio net income

2010 57 14 24.5% 10

2011 78 17 22.2% 13

2012 F 122 29 23.6% 22

By billion won,

Source : Daewoo secruities

Page 81: Internet marketing cases 2012 h2

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Company Introduction

Market analysis

YG‟s main Business area is record and entertainment, and performance

management. It is not easy to estimate and evaluate the market size and

other factors such as cost and profit, and if the performance and record

of an artist are going well, we can easily assume that he or she can get

an additional chance to appear in TV or Radio and other programs with

broadcasting.

Entertainment Performance

Page 82: Internet marketing cases 2012 h2

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Company Introduction

Market analysis

128.1 142.8 142.3

30.9 39.2 43.7 33.4 36.7 41.1 11.4 12.1 14.1

19.8 10.8

16.4

0

50

100

150

200

250

300

2007 2008 2009

Performance market

Musical Concert Classic Opera etc

373.3 286.1

183.3 133.8 108.7 84.8 78.8 81.1 80.2

91.1 134.9

185 211.2 262.1 356.2

427.6 526.4 569.6

2001 2002 2003 2004 2005 2006 2007 2008 2009

Record Market

Record Digital

Source : 2010 음악산업백서 by billion won

Performance market is

constantly growing and

especially the concert area is

the most growing one in this

industry.

with the dissemination of portable

players and smart devices, digital

songs market grew much faster

than before, it has been a

majority of songs market.

Page 83: Internet marketing cases 2012 h2

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Company Introduction

Comparison with competitive corporations(SM ent, JYP ent)

Categories SM ent. YG ent. JYP ent.

Main Business Record, ent Digital, ent ent

Sales(2011) 109,936,173,878 78,120,542,357 9,922,659,912

Net Income 20,573,518,215 17,645,833,780 -2,702,950,363

Income ratio 18.7% 22.6% -27.2%

# of Main Artists 4 3 4

Record Market 30.40% 8.90% 3.60%

Digital Songs 4.40% 13.20% not rated

YG grows faster than other companies. In addition YG can be a

market leader if the company goes with this constant rapid growth

than other companies.

By korean won http://dart.fss.or.kr

Page 84: Internet marketing cases 2012 h2

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Internet Marketing Activities

Communication

Web/mobile site, blog, Facebook, YouTube, Twitter, App, etc.

Using Youtube, Facebook, Twitter as contents releasing

method.

Page 85: Internet marketing cases 2012 h2

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Internet Marketing Activities

Feature of Communication(Twitter, Facebook)

<2NE1 facebook : like 3.2 million> <Twitter of G-DRAGON>

Artists do Twitter or Facebook to communicate with Fans, this causes a

good feedback to producers and makes contribution to gathering

interests who are not familiar with their artists

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Internet Marketing Activities

Sales

Focused on digital contents

Uploading music video on the same day as records are released, music

video itself may function as a promoting campaign and people can react

to the entertainment contents immediately through the internet.

This may lead consumers to buy a song on internet, appstore or use

streaming services. Because of this new sales model, YG ent can take

the 1st market share on digital songs market.

Page 87: Internet marketing cases 2012 h2

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Internet Marketing Activities

Market shares of record and digital songs market

With those charts, he can see the YG ent god 1st on digital song market,

and the 2nd on records maket. Though they are focusing on the digital

market, it also gets population in the record market as well. So they get

profits.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Record Market

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

Songs Market

Source : 음악산업백서 2010, KOCCA

Page 88: Internet marketing cases 2012 h2

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Internet Marketing Activities

Recent success of Artists in Youtube.com

<Youtube M/V Top 20 from YG ent.> Rank ARTIST - SONGS Page view

1 PSY - GANGNAM STYLE 587,758,803 2 HYUNA - 오빤 딱 내스타일 116,912,211

3 2NE1 - I'M THE BEST 56,567,438 4 BIGBANG - FANTASTIC BABY 48,184,105

5 BIGBANG & 2NE1 - LOLLIPOP 39,309,362 6 BIGBANG - HARUHARU 31,806,583 7 2NE1 - FIRE 31,658,877

8 PSY - SEOUL STAND CONCERT 30,630,133 9 BIG BANG - BLUE 30,128,756 10 G-DRAGON - HEART BREAKER 29,499,713

11 BIG BANG - TONIGHT 29,337,750 12 2NE1 - LONELY 28,595,407

13 2NE1 - DON'T STOP THE MUSIC 26,402,508 14 BIG BANG - BAD BOY 23,895,000 15 2NE1 - I DON’T CARE 22,790,109

16 BIGBANG - MONSTER 22,668,557 17 BIG BANG- LOVE SONG 21,449,094 18 2NE1 - GO AWAY 21,123,283

19 BIGBANG - KOEWOKIKASETE 19,596,937 20 2NE1 - CAN'T NOBODY 19,578,416

AVERAGE 61,894,652 ADJUSTED AVG(without gn style) 29,564,229

Calculted 2012.10.29

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Internet Marketing Activities

Recent success of Artists(BIG BANG)

With talented members BIGBANG do a good performance in

entertainment market. They expressed themselves on the internet with

twitter or facebook, such as their style, dresscodes, and other things

related to themselves. Those things through the internet enhances their

reputations on-line and it leads to success in the real area as well.

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Internet Marketing Activities

Recent success of Artists(2NE1)

Their cutting-edge music and unique fashion style led to collaborations

with artists such will.i.am of the Black Eyed Peas to world-famous fashion

designer, Jeremy Scott.

Those two groups are main artists in YG ent, and they are also good

models can indicate that YG ent has done a good performance in the

entertainment industry. With YG ent‟s talent and know-how to produce

artists, they get huge fan bases from internet and the real world.

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PSY “Gangnam STYLE”

From 15th July, 2012 Youtube page view is ober 600 million (31 oct now)

2nd on Billboard.com 1st on iTunes and official charts uk

Gangnam style

Gangnam Style Syndrom

- Release 2012. 7.15

- Upload date(in Youtube.com) : 2012. 7.15

- Uploader : Official Psy

- Producer : Gun-hyung Yoo, Psy

Page 92: Internet marketing cases 2012 h2

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PSY “Gangnam STYLE”

Result 1 : Youtube.com

On Youtube.com, the total pageview of

Gangnam style exceeds 600million in 31

Oct. Moreover this song has ranked 3rd

place in total youtube pageview ranking,

maybe it can be the most famous Video clip

on Youtube.com.

In addition to that on Youtube.com, there

are so many parodies of Gangnam style , it

also shows that this M/V has made a

sensational reaction from the users.

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PSY “Gangnam STYLE”

Result 2 : Billborad Chart - 2nd place in 7 weeks in a row

It is a first time that Korean pop song ranked 2nd place on

Billboard chart. As we can see on this picture, the most

successful part of this chart is digital songs itself. It shows

that it is not just a coincidence, but it is a well prepared and

well structured project.

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PSY “Gangnam STYLE”

Result 3 : iTunes Chart - 1st place in songs and MVs.

iTunes has been a good channel to distribute digital songs on the

internet with the dissemination of smart devices such as iPhone,

ipad, and ipod. Moreover it has started its business form from 2003,

because of its early start of a new business iTunes chart has been

considered a public confidential chart in the world. In this respect

it is quite interesting “Gangnam style” keeps the 1st place on

iTunes songs and MV chart.

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© 2013, Internet Marketing, Professor Janghyuk Lee 95

PSY “Gangnam STYLE”

Result 4 : English Single Chart - 1st place

It is also very interesting that Psy conquered the English “official

charts” as well. He and his company YG do not provide an English

version single or any other events in England. However with the

downloads of digital song and MV Psy just conquered English

chart, especially it is one of a confidential chart in England.

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PSY “Gangnam STYLE” Success Factor 1: Funny and Stylish Music Video.

The most important success factor of Gangnam style is its funny and

stylish song itself. Only Psy can express the song properly, and the

Music Video makes people laugh. Through proper market analysis, YG

ent pick the correct song which satisfies customer need and wants.

Photos : youtube.com

Page 97: Internet marketing cases 2012 h2

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PSY “Gangnam STYLE” Success Factor 2: SNS

Twitter follower : about 1 million

Facebook like : 2.5 million

~ Follower and Facebook like are growing steady

Twitting with Celebrities : Britney Spears, Hugh Jackman, Usher etc.

~ Not just twitting with celebrities, the celebrities‟ followers of twitter site

can see and enjoy the moment with their favorite celebrity.

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PSY “Gangnam STYLE” Success Factor 3: Producing Knowhow of YG Ent.

YG has been a pioneer of this kind of marketing activities on the internet.

However this kind of fact cannot express the success step of Psy.

YG has produced a number of artists which made a success in Korea

entertainment industry.

Nowadays BIGBANG and 2NE1 get a lot of reputations and awards over

the world.

This know-how to represent their artists through the internet and well

prepared procedure to catch the consumer‟s wants, would be leaded into

huge success of “Gangnam style”.

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Reference

Related URL

Company introduction : http://www.ygfamily.com/

Sales and profit : official materials from YG ent on http://dart.fss.or.kr

Expectation of sales and profit Report from Daewoo secruties(10년 호황이 기대되는 업종, 응답하라 2022!)

Market analysis, comments and data of charts : The white paper of music

industry(2010, Kocca)

Youtube.com chart of YG : http://www.youtube.com/user/YGentertainment/

Previous successes from other artists : http://www.ygfamily.com/

Pictures of charts : http://www.youtube.com/ http://www.billboard.com/

http://www.apple.com/itunes/ http://www.officialcharts.com/

Photo of Britney spears : Twitter. https://twitter.com/britneyspears

Video, image, etc.

Other images which is not captured from google.com search

Page 100: Internet marketing cases 2012 h2

Company Report

2008120123 Dukeun Yoon

Internet Marketing

Page 101: Internet marketing cases 2012 h2

2008120123

Dukeun Yoon

NOROO Paint Application‘Painted Space’

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© 2013, Internet Marketing, Professor Janghyuk Lee 102 102

Contents

1 Company Introduction

2 Internet marketing Activities

3 Application „Painted Space‟

4 Effects & Results

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© 2013, Internet Marketing, Professor Janghyuk Lee 103 103

103

Company Introduction

„Bright Color, Smart World‟

● History

1945 ~ 1960 1960 ~ 1980 1980 ~ 2000 2000 ~ 2010 2010 ~ Now

Launching of Daihan Ink, The National Company

Business Diversification

Expansion of Production System

Advancing as Global Company Commencement

Sustainable green growth, Social responsibility

• 1945 Launching of ‘Daihan Ink’

• 1967

Completion of Guro Factory • 1973

Stocks’ Listing

• 2001 Established a branch company in Shanghai and an R&D center

• 1993 Presidential Prize in Productivity Contest • 1997 Completion of Pohang Factory

• 2011~

‘The Beautiful World and Clean Environment.’

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104

Company Introduction ‘Bright Color, Smart World’

● Main Business Unit

→ Paint & Coatings

• Surface Treatment Coating • Insulation Varnish • Industrial Paint • Waterproof Coatings

• Eco friendly Coatings • Heavy Duty Industry • Floor Coatings • Waterproof Coatings

1 Architectual

2

3

Industrial

Automative Refinishes

‘Sales Breakdown’

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105

Company Introduction

‘Bright Color, Smart World’

● Income Statement (2009, 2010, 2011)

Classification 2009 2010 2011

Sales Revenue 2,563 3,012 3,603

Cost Of Sales (2,066) (2,464) (2,979)

Gross Profit 495 548 624

Selling and Administrative Expenses

(404) (462) (509)

Other Operation Revenue and Expenses

11 10 15

Operation Profit 102 96 130

Financial Revenue and Expenses

62 65 (64)

Income Before Tax Expense

40 31 66

Income Tax Expense

7 2 16

Net Income 33 29 50

(Unit : 100 Million Won)

Comparing to 2009 ~ 2010, Net Income grows rapidly during 2010 ~ 2011

How Could it Happen?

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Contents

1 Company Introduction

2 Internet marketing Activities

3 Application „Painted Space‟

4 Effects & Results

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© 2013, Internet Marketing, Professor Janghyuk Lee 107 107

Before the Internet

107

√ Hard to communicate

directly with end users

Difficult to recognize

customers

√ Hard to sell the products

directly to end users

Lack of controlling power

over the price

Only focuses on B2B Market relying on retaining favorable relationships with other business units

√ Paints are used as

intermediate goods for other

industries

√ Paints are finishing

materials of diverse product

industries such as steel,

metal, ship and automobile

industries

Main customers of paints

are other business units

Characteristic of a Paint industry Limit as a manufacturing company

‘Bright Color, Smart World’

● Before the Internet, NOROO only focused on B2B market because of the characteristic

of a paint industry and the limit of a manufacturing company

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© 2013, Internet Marketing, Professor Janghyuk Lee 108 108

Internet made change

108

√ B2B paint market is

saturated

√ B2B business is more

affected by the ‘cost’ rather

than the ‘marketing

activities’, so it’s hard to

develop competitive

strategies against the fierce

competition

Fierce competition in B2B market Increasing needs of eco-friendly paints

‘Bright Color, Smart World’

● However, because of the fierce competition in B2B market and increasing needs of

eco-friendly paints from consumers , NOROO decided to target consumers which

became possible through the Internet

90 billion WON

Market size of Eco-friendly interiors

Market size of Eco-friendly paints

400 billion WON

NOROO decided to directly focus on consumers by building relationship with them

Internet made it Possible

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109

New Communication

Blog Application

Website Facebook

Directly

communicate

with

consumers

‘Bright Color, Smart World’

● By using diverse communication channels on the Internet, NOROO could directly reach

consumers

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110

New Sales Channel

Designated Website Open Market

Directly sell the products to consumers

‘Bright Color, Smart World’

● By using diverse sales channels on the Internet, NOROO could directly sell the prducts

to consumers

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111

New Advertising Campaigns

Monthly Series Events

Implement diverse advertisement campaigns directly appealing to consumers

‘Bright Color, Smart World’

● By implementing new advertising campaigns on the Internet, NOROO could directly

appeal to consumers, and give specific brand images to them

‘Love Transformer’ ‘I Love Seoul’

Page 112: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 112 112

Effect of the Internet marketing activities

112

‘Bright Color, Smart World’

● Because of NOROO’s successful internet marketing activities, NOROO could increase

its brand awareness

1st Place on

keyword Search

Google keyword search

Daum keyword search Google Trend search

Consumers started to search NOROO on the Internet

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113

Effect of the Internet marketing activities

‘Bright Color, Smart World’

● NOROO actively uses SNS and Youtube, which is unprecedented in the paint market

before and brings the most number of users comparing to its competitors.

Almost all the competitors even do not implement SNS, Youtube activities

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Internet Marketing Activities

114

Internet made it possible for ‘Noroo’ to target B2C market

New communication

New sales channel

New advertising

campaign

• Webpage • Facebook

• Blog

• Application

• Twitter

• Youtube

• Open market • Group

buying • Monthly series events

‘Bright Color, Smart World’

-Company’s perspective

√ Recognize its

customers

√ Understand B2C

market place

√ Develop customer-

based strategies

√ Build direct

relationships with

customers

-Consumer’s Perspective

√ Brand exposure and

awareness are highly

increased

√ Favorability is also

obtained

√ Easy to find

information during the

active evaluation

process

Opportunity to get into B2C market

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© 2013, Internet Marketing, Professor Janghyuk Lee 115 115

To Create Sustainable Profits in B2C market

√ How to make these relationships profitable?

√ How to create customer delights?

√ How to make these sustainable?

115

‘Bright Color, Smart World’

Then…

Providing the unique Application

‘Painted Space’

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Contents

1 Company Introduction

2 Internet marketing Activities

3 Application „Painted Space‟

4 Effects & Results

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117

Noroo „Painted Space‟

• Start : Feb 26, 2011

• Two major Services :

- Color Pick-up :

Recommendation of matching

colors

- Interior Simulation : Simulation

of customized interior services

by using virtual spots • Providing real-time Q&A, and detailed

information of nearby retail stores.

• First mobile application provided by the

paint-industry company

• Improving not only brand images but also direct

purchases

‘Bright Color, Smart World’

Basic Information

Meaning

Page 118: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 118 118

Noroo „Painted Space‟

118

‘Bright Color, Smart World’

1. Taking photos of interiors or

products which customers want

to check

2. Identifying color information by

designating images

3. Checking coloration information

and finding harmonizing colors

4. Saving the information

● Color Pickup

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© 2013, Internet Marketing, Professor Janghyuk Lee 119 119

Noroo „Painted Space‟

119

‘Bright Color, Smart World’

● Interior Simulation

1. Starting interior simulation and

selecting places which

customers want to check

2. Changing floors, windows,

furniture, and details with diverse

colors

3. Finding the best interior match

4. Saving the information

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Noroo „Painted Space‟

120

‘Bright Color, Smart World’

• Based on saved data, finding

appropriate product, and information

of available buying channels

• Finding nearby retail stores by

using AR / Google map service

● Finding Nearby Stores

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© 2013, Internet Marketing, Professor Janghyuk Lee 121 121

Contents

1 Company Introduction

2 Internet marketing Activities

3 Application „Painted Space‟

4 Effects & Results

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© 2013, Internet Marketing, Professor Janghyuk Lee 122 122

Effects & Results

122

Developing

Brand Image

• By more focusing on ‘color’ itself, giving fashionable images to customers rather than the old images of ordinary paint companies

• By giving plenty of

information to

customers, improving

their functional value

‘Bright Color, Smart World’

Net Income growth

( 2900 mil 5000mil) Improving

Customer

Perceived Value

Reducing

Advertising Cost

Securing Direct

Communication

Channel

• After making the

application, almost

zero marginal cost

occurred • Keeping in touch

with customers

directly and

continuously through

the App where only

‘NOROO’ and their

customers exist

Taking 2nd place in

B2C market

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© 2013, Internet Marketing, Professor Janghyuk Lee 123 123

Effects & Results

123

‘Bright Color, Smart World’

● After the ‘Painted Space’

2013 NOROO International Color Show 2012 NOROO New product Launching Expo

To build profitable relationship with customers and sustain it,

‘NOROO’ keeps trying to implement diverse activities

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© 2013, Internet Marketing, Professor Janghyuk Lee 124 124

Reference ● Related URL

• About NOROO

- Webpage : www.noroopaint.com

- Blog : blog.noroo.co.kr

- Facebook : www.facbook.com/noroopaint

- App : http://nstore.naver.com/appstore/web/detail.nhn?productNo=12700

- Youtube : http://www.youtube.com/user/noroopaints

• Income statement : http://dart.fss.or.kr/

●Video, image • „ I Love Seoul ‟ : http://www.youtube.com/watch?v=RQ7CmtRGsew

124

Page 125: Internet marketing cases 2012 h2

Company Report

2006120173

Moongu Cho

Group 7

Page 126: Internet marketing cases 2012 h2

Table of contents

1.Company introduction – Volkswagen

2.Internet marketing activities

3.New beetle campaign

4.Summary

5.Appendix

Page 127: Internet marketing cases 2012 h2

1.Company introduction – Volkswagen

2.Internet marketing activities

3.New beetle campaign

4.Summary

5.Appendix

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© 2013, Internet Marketing, Professor Janghyuk Lee 128 128

1. Volkswagen

The Volkswagen group is one of the leading automobile manufacturers

worldwide and the largest automobile producer in Europe

Main Business unit

Volkswagen Group

Volkswagen

Passenger

Cars

Audi SKODA SEAT Bentley Commercial

Vehicles

Scania MAN VW China Other

VW

Financial

Services

93% of total sales

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© 2013, Internet Marketing, Professor Janghyuk Lee 129 129

1. Volkswagen

Financial result (2011)

57.8% (profit), 25.5% (sales revenue), 14.9% (sales volume) more than in the

previous year (2010)

Sales / Profit

(in million euro)

105,187

126,875

159,337

1,855 7,141

11,271

2009 2010 2011

Sales volume (in thousand)

6,310

7,278

8,361

2009 2010 2011

Market share (percent)

9.6 10.3

11.2 11.3

12.3

2007 2008 2009 2010 2011

Page 130: Internet marketing cases 2012 h2

1.Company introduction – Volkswagen

2.Internet marketing activities

3.New beetle campaign

4.Summary

5.Appendix

Page 131: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 131 131

2. Internet marketing activities

The Volkswagen is one of the famous marketing companies in the

worldwide and selected as Top 10 fascinating brands in 2011

Communications

Actively communicate with its customers through various online channels.

Including company website, mobile application, blog (Why VW), YouTube,

Twitter, and Facebook

+1.3 million like (USA pages only)

+121 million watched, +42,000 subscribers

Why VW +10,000 share their stories about VW

+83,000 followers, +6,000 tweets

Channel Status

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© 2013, Internet Marketing, Professor Janghyuk Lee 132 132

2. Internet marketing activities

Recent marketing activities

Recently, Volkswagen tries new ways of marketing, not just traditional ways

Mobile application – “Volkswagen Real Racing GTI application”

Multi channel marketing – “New beetle campaign”

1

2

?

1st time launched a real world car

on mobile game

Downloaded over 6 million times

#1 free app in 36 countries

Created a profitable relationship with

their customers

Over 26,700 people “Liked”

Volkswagen USA on Facebook

Over 1,000 postings on FB a day

Over 3,000 Postings on blogs

through viral marketing

Created a good relationship with

their customers

Page 133: Internet marketing cases 2012 h2

1.Company introduction – Volkswagen

2.Internet marketing activities

3.New beetle campaign

4.Summary

5.Appendix

Page 134: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 134 134

3. New Beetle campaign

Description of the Campaign

If people click „Like‟ and upload their photos on VW facebook page, then photos are

displayed on the Billboard in Time Square with the big picture of the all-new Beetle

Objective of the Campaign

VW launched their all-new Beetle, but, new car is far different from the original one.

They needed a marketing strategy to stimulate interest in the new vehicle

WHAT is this? (1)

Page 135: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 135 135

3. New Beetle campaign

WHAT is this? (2)

Results of the Campaign

Over 26,700 people “Liked” Volkswagen USA on Facebook

Over 1,000 postings on Facebook a day

Over 3,000 Postings on blogs through viral marketing

Created a good relationship with their customers

Page 136: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 136 136

3. New Beetle campaign

KEY SUCCESS FACTOR: Multi channel marketing

1 Set appropriate targets

to meet the objective 2 Select channels to

attract those targets

3 Make combined

channel powerful

Time Square

Billboard Target: 20-30s young

generations

For implementing a successful multi channel marketing..

Page 137: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 137 137

3. New Beetle campaign

KEY SUCCESS FACTOR: Multi channel marketing

2 Select best channels to attract those targets

Over 50% of 800 million users are 20-30s

and they are growing fastest

Targets(20-30s) actively use and are

familiar with FB1

For VW, FB would be a communication

channel to easily communicate with

customers and promote their new product 1 48% of 20-30 year olds check Facebook when they wake up, with 28% doing so before even getting out of bed

Why Facebook?

Advertising on Time square billboard has

a symbolic meaning that can give their

targets unique experience (Fun) and attract

a large number of “young” people

For VW, time square billboard is always

the best spot for advertising (Daily floating

population is over 1.5 million)

Why Time Square?

Page 138: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 138 138

3. New Beetle campaign

KEY SUCCESS FACTOR: Multi channel marketing

3 Make combined channel powerful Objective is to increase the awareness and favorability of the all-new Beetle so most

important thing for VW is to attain the number of participants get involved in the

campaign.

They designed a combined channel with 1) providing unique fun experience and

people can easily participate by 2) just clicking few buttons (easy to use)

Simply click

“Like” on FB

Can see their photos on Time

Square!!

Customers: Unique fun

experience with very

little effort

Volkswagen: Achieve

their initial objective and

also advertise it on Time

Square

Increased the number

of participants

(engagement ↑)

Page 139: Internet marketing cases 2012 h2

1.Company introduction – Volkswagen

2.Internet marketing activities

3.New beetle campaign

4.Summary

5.Appendix

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© 2013, Internet Marketing, Professor Janghyuk Lee 140 140

4. Summary

Good points of multi channel marketing

Awareness Favorability Consideration Purchase Loyalty

Yes. Multi channel marketing is a great way to improve

awareness and favorability through providing unique

experience to the customers and can make a good

relationship with many people

26700

3000

New beetle campaign Other events Average

"Like" Clicked

X 20~ 1000

100

New beetle campaign Other events Average

Daily posting

X 10~

Through multi channel marketing..

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4. Summary

Limitations and recommendations

Awareness Favorability Consideration Purchase Loyalty

Yes. Volkswagen should make those customers purchase

and finally make a profitable relationship with customers Provide key features and other basic information of products through marketing

channels (e.g. Post key features of new Beetle on Facebook so that users who click

“like” can put new Beetle on the consideration set)

Multi channel marketing needs the following steps to induce actual purchase, not

just leave it as one time event (e.g. Provide price promotions for those who

participated in the campaign and then it can increase the number of purchase)

Consistently communicate with those customers through multi channels and keep

this relationship profitable

Since Volkswagen already spent too much money on advertising (Average

monthly cost for Time square adverting is about 200K~300K)

But it is not enough..

1

2

3

1 2 3

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© 2013, Internet Marketing, Professor Janghyuk Lee 142 142

Thank you

End of document

Page 143: Internet marketing cases 2012 h2

1.Company introduction – Volkswagen

2.Internet marketing activities

3.New beetle campaign

4.Summary

5.Appendix

Page 144: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 144 144

Appendix

Brief introduction of New beetle campaign in Time Square

Video clip provided by marketing company, NRG marketing

Page 145: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 145 145

Appendix

Other examples of multi channel marketing

1. Mather Columbia – Pictionary photo booth (Video clip)

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© 2013, Internet Marketing, Professor Janghyuk Lee 146 146

Appendix

Other examples of multi channel marketing

2. Diesel Cam (Video clip)

Page 147: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 147 147

Appendix

Other examples of multi channel marketing

3. Domino Pizza – Social Pizza (Video clip)

Page 148: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 148 148

Appendix

Other examples of multi channel marketing

4. Hyundai Motors – Real Like (Video clip)

Page 149: Internet marketing cases 2012 h2

© 2013, Internet Marketing, Professor Janghyuk Lee 149 149

Reference

Related URL

http://www.vw.com/en.html

http://why.vw.com/values

http://www.digitalbuzzblog.com/facebook-statistics-stats-facts-2011/

http://adage.com/article/news/cost-advertising-times-square/45719/

http://trendw.kr/

http://www.insidefacebook.com/2012/07/30/facebook-to-remove-a-like-button-

feature-many-marketers-and-publishers-didnt-know-they-had/

http://depauldigitalpr.com/

http://www.facebook.com/postview

https://itunes.apple.com/ca/app/real-racing-gti/id334366868?mt=8

http://www.insideline.com/volkswagen/gti/2010/2010-volkswagen-gti-

launched-via-real-racing-gti-app.html

Related Books

마카디어의 소셜미디어 정석, 이상배 저

Facebook marketing, Paul dunei

Related videos (Attached on zip file)

Page 150: Internet marketing cases 2012 h2

Company Report:

Macy‟s

2008120338 Ga Eun Chae

Internet Marketing

Korea University Business School

Page 151: Internet marketing cases 2012 h2

Company Introduction

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© 2013, Internet Marketing, Professor Janghyuk Lee 152 152

Company History

Founded by Rowland Hussey Macy in 1858.

Originally, opened as a dry goods store on 14th Street and 6th Avenue in

New York City.

Became the icon of an American department store ever since the

expansion of Macy‟s Herald Square “the World‟s Largest Store” in 1924.

Strived to increase symbolic value of the brand.

Annual Macy‟s Thanksgiving Day Parade (1924~)

- Creation of a holiday season tradition

Margaret Getchell (1861)

- The first female retail executive

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Company History

Expanded its business through acquiring department stores in other

regions.

Renamed acquired stores to Macy‟s through out the 1980s and

centralized operations.

Has been consolidating operations into 4 big divisions since 2008.

Opened a concept store in Gilbert, Arizona in 2009.

Macy‟s going wireless and localized.

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Company History

Launched the strategy of MAGIC Selling in 2010.

Aims at improving customer engagement in the stores.

Transformed 23 Macy‟s stores to pick and ship orders from other stores

or the Internet in 2011.

Omni-channel Strategy: integration of offline and online channels.

Started a QR code campaign named “Backstage Pass” in 2011.

Ranked the 1st in L2‟s 2011 and 2012 Digital IQ Index Report.

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Main Business Units

Macy‟s main sales channels are offline flagship stores.

As of September 2012, 800 Macy‟s department stores operate in 69

districts.

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© 2013, Internet Marketing, Professor Janghyuk Lee 156 156

Main Business Units

Macy‟s

Macy‟s East

Macy‟s Central East

Macy‟s North

Macy‟s Central

Macy‟s South

Macy‟s Midwest

Macy‟s West

Macy‟s Central West

Macy‟s North West

Macy‟s Florida

Divisional Consolidation

“My Macy‟s”(2008): Localization initiative through consolidation of Macy‟s

stores across the US.

Eliminate unnecessary positions & Reduce administrative expenses.

Cutting down offline expenses to invest in online activities.

Empower local executives to make decisions faster & more effectively.

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Main Business Units

Online Division

Technology, marketing, and merchandising teams solely dedicated to online

sales and promotions.

Responsible of:

macys.com

SNS: Facebook, Twitter, Youtube, mblog & Pinterest

Mobile applications and promotions

202 branches that can send items to online customers

23 stores that serve as web return centers, pickup locations, free shipping

outlets, payment booths and customer service centers for online sales to their

brick-and-mortar build11ings

Improved sales per square feet

Sales from the Internet up 39.6% in 2011 compared to online sales volume in

2010.

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Main Business Units

Merchandises

Online and mobile marketing has contributed to the increase in sales of

feminine accessories and cosmetics.

However, Macy‟s lately performed less strongly in Feminine apparel.

Private Brands

Developed 16 private brands that is designed to meet a certain customer

lifestyle.

Localization endeavor

Private brands fill in the niche that existing specialty brands do not cover.

20% of sales came from private brands.

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Performance Indicators

Profit Margin

Profitability continuously rises.

Macy‟s has generated profitable sales growth that covers rising expenses

from reorganization.

Allowed more spending on advertising, which may have lead to Macy‟s success on

both online and offline advertisement.

2011 2010 2009

Sales 26,405 25,003 23,489

Profit 1,256 847 329

Sales/Profit 21.023 29.519 71.395

Profit Margin 4.76% 3.39% 1.40%

($ millions)

2011 2010

Advertising

Expense 1,136 1,072

($ millions)

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Performance Indicators

Market Share

“The latest results show that Macy's continues gaining market share from

its rivals, a trend that began about a year ago as the retailer rejiggered its

selling approach to stock stores with merchandise that appealed to local

customers and also began increasing its online and mobile efforts.”

- November 10, 2011. Wall Street Journal.

Fitch Rating: BBB- → BBB (long term) F3 → F2 (short term)

Improvement in earnings and credit metrics.

“clearly indicating that the company is accelerating its market share gains”

Sales 2011 2010 2009

Macy‟s 26,405 25,003 23,489

Industry 187,901 186,367 185,204

Market Share 14.05% 13.42% 12.68%

($ millions)

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Performance Indicators

2011 2010 2009

Cost of Goods

Sold 15,738 14,824 13,973

Ang. Inventory 4935.5 4686.3 4692

Inventory

Turnover 3.19 3.16 2.97

($ millions)

Inventory Turnover

Items turn over more quickly.

Quick response to changes in customer needs and wants while replacing obsolete

items.

Evidence of a superior sales force and a successful advertising campaign.

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Internet Marketing Activities

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Communication

Website

Customer service page

Directs customers to other channels of communication

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Communication

Mobile page

The same as the Internet webpage

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Communication

Most of communication is done through SNSs.

Macy‟s keeps in touch with the customers through:

Facebook

Twitter

Pinterest

M-blog

Youtube

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Communication

Macy's Facebook Fan Page

Joined on April 6, 2009 & went official on June 30, 2009.

Started with 130 likes.

As of October 31 2012,

8,673,538 likes/ 273,704 talking about this/ 410,412 were here

The main channel of communication.

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Communication

Building relationship with customers.

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Communication

Providing:

Fashion tips

Product information (price, texture, etc.)

Direct link to purchase page

on macys.com

Likes & Comments which customers

can refer to when making purchasing

decisions.

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Communication

Addressing customers‟ difficulties and questions.

Collecting information on a customer‟s lifestyle, shopping habit and

preferences.

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Communication

Twitter

First tweet made on March 29, 2012

127,644 followers

Doing everything done on the facebook; however, receiving low level of

responses/customer reaction.

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Communication

Pinterest: used like an online catalog

10,365 Followers

3,098 Pins

168 Likes

Archiving visual images of products sold at Macy‟s.

Pinterest users can “pin” their favorites and share it with friends through

“repin.”

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Communication

mBlog & Beauty Forum

A group of Macy‟s fans (selected through a contest held on the facebook

fan page) post articles or discussions on topics, such as female and male

fashion, beauty tips, accessories, and lifestyle.

Provides customer-generated information; however, suffers from low

response rate just like on the twitter.

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Communication

YouTube

Joined: March 5, 2006

Subscribers: 2,768

Total Video Views: 5,493,245

Educate customers about new technologies

How to use Macy‟s Backstage Pass (22,436 views)

Campaigns and Promotions

Don‟t miss Macy‟s Million Dollar Makeover finale! (495,895 views)

Build brand image

What‟s in Store? Campaign (September 10, 2012~)

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Sales

Purchases can be made either on website or mobile site.

Macy‟s iPhone App

Last update on October 29, 2012

Number of downloads is not disclosed

6,729 customers has rated the app

Complaints are mostly about:

Slow speed

QR codes and discount codes not working

Inconvenience during the purchase and payment process

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Sales

Macy‟s official website is the main channel of sales.

macys.com

Daily visitors: 298,200

Daily Pageviews: 1,729,560

Advertising Revenue: $6,486/day

Website worth: $46,866,303

Omni-channel strategy:

Almost-immediate purchase & shipping

Attract male shoppers.

Also appeal to female shoppers:

Macy‟s exclusives

Online discounts

Broader assortments in sizes and colors online

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Sales

Facebook & Twitter aid sales and promotion activities

Distribute coupons

Announce seasonal sales schedule

Provide links to purchase pages on macys.com

Facilitate conversations among customers on Macy‟s merchandises

Run campaigns

International shipping is available on certain items online.

If the online price<offline price, lower offline price.

No adjustment to match other store‟s prices.

40% of online sales come from exclusive brands.

Prices already very competitive.

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Recent Campaigns

Backstage Pass

Integration of offline store, mobile application and YouTube.

Scan an in-store QR code of an item using Macy‟s

mobile app

Watch a YouTube video on fashion

& beauty tips related to the item

Purchase the item

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Recent Campaigns

Backstage Pass

2.4K likes on facebook

However, only 15 comments

112 promotional videos uploaded on YouTube

How to Use Macy‟s Backstage Pass has 22,438 views

345,000 Google search results

Received good press, but bad customer reviews.

Slow in operation

Problems with QR codes

Little customer perceived value of celebrity tips

Technical Issues

Can improve through

Marketing

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Recent Campaigns

What‟s in Store?

Make customers aware of the value of “one star that brings all stars

together.”

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What‟s in Store?

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Macy‟s „What‟s in Store?‟

Ongoing campaign, Google search 10.3M, Video View 371,333

Campaign

Results

• Start: September 10, 2012

• Broadcasted through YouTube

• Less than 30sec per video (except for two 1:03

videos)

• Feature celebrities including Taylor Swift, Justin

Bieber, Martha Stewart, Donald Trump, and more.

Google search ‘Macy‟s What‟s in Store?‟: 10.3M +

•11 videos (as of October 31 2012)

• Video View: 371,333

• 4,274 likes

• „Opening Credits‟ gets referred on 9 websites on

the first day of release, amassing 31,503 views

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Macy‟s „What‟s in Store?‟ Key Idea 1: Integration of Channels

Along with the YouTube channel, Macy‟s has a webpage dedicated to

the campaign.

http://social.macys.com/onlyonestar/#/shop

“Shop the Show” page

Items on the show assorted by brands and categories

All the items on the show are Macy‟s Exclusives

Items can only be purchased at Macy‟s

YouTube macys.com

Stores

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Macy‟s „What‟s in Store?‟ Key Idea 2: Millennials

Millennial: serve shoppers between 13 and 30 years old.

Macy‟s trying to broaden its market segment to teenagers.

“Retailality Show” – short & fun online video clip which is a parody of an

old sitcom “Brady‟s Bunch”

Attracted many younger shoppers while retaining older shoppers.

More female viewers in general.

Cast of the show represents each age group

Teens: Justin Bieber, Taylor Swift

20s: Camila Alves, Sean “Diddy” Combs

30s~: Martha Stewart, Donald Trump

Macy‟s Backstage Pass:

Backstage with the Stars

Opening Credits

Macy's presents "What's In Store?"

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Macy‟s „What‟s in Store?‟ Key Idea 3: Only One Star

Deliver the stars of fashion, food and home maintenance to customers

everywhere in-store.

The show portrays interactions with stars a fun experience.

Create a “face” to a “faceless” brand

INC and Levi‟s

Effort to combine commercials with social media platforms.

Backstage Pass = Bringing Stars to a shopper at Macy‟s

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Reference

Related URLs

http://www.macysinc.com/default.aspx

http://www.facebook.com/Macys

https://twitter.com/Macys

http://pinterest.com/macysofficial/

http://www.youtube.com/user/macys

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Company Report

Coralie

HONAJZER

Internet Marketing

Nationality : French

School : EM Strasbourg Business School - France

Major : Marketing

E.mail : [email protected]

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Table of Contents

An eye on the market

Company Presentation Introduction : What is Dessange?

Main Business Units

Sales & Profits

Internet Marketing Activities Marketing activities : What kind of communication?

Dessange‟s websites

iPhone & iPad application

Presence on the rest of the web

Against Direct Competition

Conclusions & Recommendations

References

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An eye on the market : France

French Hairdressing

Market

The hairdressing sector in France is very competitive. Hairdresser franchises represent the smallest share of the market with only 10%. Each salons must invest in marketing strategy to differentiate from the concurrence.

Hairdressing market is estimated at 5,35 billion € per year. 1 million peoples go to a hairdresser by day in France.

Although independent hairdressers dominate the market by the number, consumers need to be reassured and he or she prefers to go to a salon which he or she recognizes the brand. It is an undeniable advantage for franchises. For 10 years now, independents are under pressure to become franchisee.

The new issue of major franchises such as Dessange, Franck Provost and Jean Louis David is to control the market. Their marketing strategy is essential to retain consumers who are just waiting to be convinced.

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An eye on the market : Rest of the World

Global Hairdressing

Market

USA

The global hairdressing market is estimated at 50 billion to 30 billion dollars are in the USA.

It is clear the USA is the place to be for the French hairdressing brand.

According a recent report, it is exactly the Dessange International strategy. The group led by Benjamin Dessange, the founder's son, has acquired the investment fund Pouschine Cook Capital Management hairdressers Fantastic Sams, for undisclosed amount. Presented by its new owner as the first sign of hairdressers overseas, Fantastic Sams has over 1200 salons operated under franchise throughout the United States, Alaska, Hawaii. They realized a turnover of € 360 million last year.

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Company Introduction

What is Dessange?

Dessange is an hairdresser french brand,

one of the most luxurious. It is addressed to an high incomes population, or people who gives a big importance to hair care. We can qualify it as a prestigious brand on the French market.

Jacques Dessange opened his first salon in 1954, on the Champs-Elysée Avenue, in Paris. He offered to women revolutionary haircutting techniques and reinvented the image of the modern woman, in the post-war atmosphere.

The professionalism and the pioneering spirit explained the fulgurating success of Dessange House.

Jacques Dessange opened its first salon abroad in 1962 and launched his affiliate franchise in 1975.

Now, Dessange group count 500 salons in 45 countries around the world.

Others french hairdresser companies ta

ke their inspiration in Dessange‟s collections and follow the Dessange trend. It has a really important part in the fashion world.

The brand has kept its innovative spirit and has imposed its own style with some essential techniques like the famous “coiffé-décoiffé” Dessange or the blond Dessange, used now by the concurrence.

The brand takes care of the biggest stars and it is the official partner, among others, of Cannes Film Festival for more than 25 years, now.

It could be interesting to see how a famous and innovative brand like Dessange, consider as trendsetter by its competitor, uses internet to manage its marketing strategy. Especially for a sector which is not really represented yet on Internet, that of the hair.

Coiffé-Décoiffé DESSANGE

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Dessange‟s Business Units

Haircut experience The first activity of Dessange is to provide a qualitative hairdresser

service. Customers go into a Dessange‟s salon because they want have professional advices for their hair, a new haircut they will love and they expect a professional team to take care of them.

First of all, Dessange sells its haircut how-know and techniques, its trendy vision and its prestige. Dessange created an atmosphere in its salons. It is the same in every salon around the world, specific to the brand, sober, class and elegant with black and white colors. Its volunteer is to offer a real consumption experience to its clients and no just an haircut.

Professional quality at home To expand the brand and achieve more consumers, Dessange devel

oped a series of products for hair care which are available in all salons and also in supermarket (shampoo, hair care, hair brush

…). This is the way for the brand to diversify its customer. It is the means to customers to replicate the Dessange‟s experience known in salon and the Dessange‟s professional quality at home. We find this idea even in Dessange‟s slogan : “All the Dessan

ge‟s professional quality at home”.

Dessange’s training ant haircut techniques

Last Dessange activity, it sells training for professionals. It promotes its

innovative spirit and its trendy vision. The objective is to increase professional’s

number who use Dessange’s technique and open more Dessange’s salons.

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Sales & Profits

2009 2010 2011

To better understand the possibilities of a company in terms of marketing strategy, it is important to

observe its sales and profits over the last three years. The last capital know is 5 489 928 €.

All results are calculated on 12 months.

0 5000 10000

Turnover

NetK …

4000 5000 6000

Turnover

Net K €

0 10000

Turnover

NetK …

6059 K€

5043 K€ 7430 K€

5563 K€ 5447 K€

4909 K€

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Marketing Activities

What kind of communication? It is very common to see a Dessange‟s advertise

ment on the French television. These ads show Dessange‟s hair products and through its, Dessange‟s quality and technique that everybody can find in a salon. It is not uncommon either to see advertising posters in the street, introducing news products.

But Dessange is an international group, with 500 salons in 45 countries. The group needs to have a global marketing strategy. The best way to harmonize its communication around the world and become as famous as in France abroad is to have a strong internet marketing strategy.

After some basic researches on the web, we can do an initial inventory is as follows : Dessange has 4 different websites, a presence on social networks and video websites and an application for iPhone and iPad.

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www.dessange.com

We find all informations about the history, vision and what kind of brand it believes to be. We also find the

new collection, applications to have a personal hair diagnostic and its partnerships.

But it is especially possible to make the newsletter registration to receive it by email, complete an

employment's application, buy some hair products and find the address of a salon on line!

The problem is all website is in French and any translation is proposed. Second problem, we do not find some

links to be redirected to Dessange’s pages on social networks like Facebook or Twitter. In addition, we can

say that the site is long at startup

The site’s appearance is entirely in the style of the brand: sober, class and elegant.

After surfing on the different pages during 5 minutes, we can admit the site is developed.

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www.dessange-international.com

The second website is for an international audience, with English and French version. As the first one, the appearance is a

good reflect of the brand.

There is more information about the brand, the group, its internal organization, its international presence, its training, its

franchisees, its products, its press articles or its salons around the world.

This site is clearly aimed at an audience who does not know the brand yet. It is dedicated to an more professional audience

too (future potential international franchisees).

As the first website, we can buy hair products on line but Dessange’s collections are not presented. In the site, we can not

find some links to be redirected to social networks neither.

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www.secrets-dessange.com

This website targets French females (the website is just in French) and is designed to present the brand but

mainly its range of products and give some advices in hair care. The site’s name evokes we will learn

Dessange’s secrets to sublime our hair.

A form is available to establish an hair diagnostic. It is really complete and at the end, the site proposes

to buy directly on line the different products necessary to follow all advices given before. The site

proposes also some videos where professional hairdressers show how execute classical and famous

haircuts and it is possible to watch some advertising movies.

This web site is a complement of www.dessange.com and www.dessange-international.com .

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www.e-dessange.com

This website is the Dessange’s online store. Once again, it is just in French and any

translation in English is available.

It’s possible to find and buy all products of the brand : shampoo, hair care, hairdryer

and even Dessange’ make-up.

All purchase proposals on the tree others sites are just a link to be redirected to this

one.

The customer can find all promotions and create his or her personal count. The site

even propose to be in the “club Dessange” and thus benefit some advantages

(promotions, exclusive products, news about hair trend and the brand by email…).

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iPhone & iPad Application

Dessange is the official partner of Cannes Film Festival for more

than 25 years now. On the occasion of the 64th Edition, in 2011,

Dessange launched its new application for iPhone and iPad.

It is the way for all beauty and fashion fans to be aware of new

trends. Thanks to this application, it is possible to know the new

collection Dessange, find a salon and follow stars activities during

the Festival.

This application is free and was really successful since its inception.

It was a good opportunities for Dessange to assert itself again like an

essential brand in the beauty and fashion field. This application is

also a good way for Dessange to keep its trendy brand’s image.

Especially now, where all trendsetter share fashion news and

informations on the web (fashion blogs example).

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YouTube

Dessange has a YouTube channel where it posts group’s videos. It is DessangeParisTV. Just 5

videos are online and the most number of views are on the last collection making of on one of :

http://www.youtube.com/watch?v=7t84km4b2Y4&feature=channel&list=UL (we can also find it in the

website www.dessange.com).

This video has just 1259 views, so in others words, almost nothing.

The first one was posted in September 2012, really recently, so it can explain this number.

The Dessange YouTube TV can be find thanks to videos shared on Facebook, but not just with the

keyword “Dessange” in the YouTube search bar.

Some others videos Dessange are on YouTube too but they are not posted by

the group itself. Among them, some advertising videos and other

customer testimonies or advices about Dessange hair products.

It is a real referencing problem if we can find the official brand channel

just by typing Dessange as a keyword in the search bar.

And it is a real communication problem for the brand if the first image

we have about Dessange on a website like YouTube is not under the group’s

control.

On the rest of the Web… In addition to its own websites, the brand Dessange is also represented in several others social networks or video sites.

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On the rest of the Web…

Facebook

The group has an official “fan page” on Facebook, created in

March 2010, where all Dessange’s activities, videos,

partnerships, events or news are shared. A new activity is

frequently posted (about 2 by week). But the page is not really

elaborated and just 1918 peoples “like” it. Some fashion

bloggers fan pages (not official brand) have more options

(contests, animation…) and many more “likes”.

At the same time, we can also find a lot of other fan pages with

the keyword “Dessange”. After more investigation, the finding is

simple : each franchisee creates its own page on Facebook. The

fans number is less than the official page and often, very limited

information are shared.

It is really difficult for the brand to regroup all Dessange’s

customers and create a real communities because they are

dispersed between different pages created by salon or by

country.

In addition to its own websites, the brand Dessange is also represented in several others social networks or video sites.

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On the rest of the Web… In addition to its own websites, the brand Dessange is also represented in several others social networks or video sites.

Twitter

Almost 10 different counts with the keyword “Dessange” and

impossible to see, on the surface, which one is the “official”. In fact,

for half of Dessange twitter counts, the description could be the one

written by the group to present the brand. The only solution is to check

which website is in reference and find www.dessange.com.

After more investigation, which surprise when we can see the

difference between the number of tweets, followers and followings.

To better understand the situation, we have on the left side some

example what can be found on Twitter with the keyword “Dessange”.

The first one (DESSANGE Paris) is the official count, the second one

(Dessange Paris) is the one of a salon in Vienna, the third one

(Dessange Bahrain) is the one of a salon in Bahrain and the last one (쟈

고고 데 상 쥬) is for all salons in Korea (about 20).

Counts which represent just one or few salons have more followers

than the official one.

In this case, it is totally impossible for the customer to know which he

or she should follow and just give an unorganized image of the brand.

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The hidden side of the iceberg

After making the facebook and twitter counts inventory, we can see all the website given in reference are totally different than “official” ones.

Actually, each franchisee made and animate now his or her own website.

We can count on at least 10 other websites Dessange, in addition to the fourth official one animate by the headquarter of the company, seen before.

It was impossible to find them with the keyword “Dessange” in the Google search bar. The only way was thanks to Facebook and Twitter.

It is just impossible for the customer to clearly find what he or she is looking for. Dessange can not create a real customer community if all of them are totally dispersed between different sites.

On the rest of the Web… In addition to its own websites, the brand Dessange is also represented in several others social networks or video sites.

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Against Direct Competition : Franck Provost

To better understand what is possible in terms of internet marketing strategy, taking the example of Franck Provost, one of the first direct competitor Dessange. It is also a famous French hairdresser who offers the same services and products than Dessange. They target the same customer, and both are present in meditated events. Both ot them are popular with stars. Both brands were created at about the same time and both have an equivalent presence in France and abroad.

Here is the graph showing the research done on Google from 2005 to 2012 Dessange and Franck Provost. The blue color represents those made for Dessange and the red one, those madefor Franck Provost. A wide range of keyword has been taken into account for both of them.

We can see a significant difference between two of them. Franck Provost accumulated almost double the research done for Dessange.

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Against Direct Competition : Franck Provost

When we look closer to see who make the research, we can see in France, both brands are elbow to elbow. Everything plays abroad.

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Against Direct Competition : Franck Provost

Just one web site with the link to the Facebook page, the Twitter account, the Youtube channel and

an English version.

On Facebook and Twitter, we can find others pages and accounts Franck

Provost than the official one but all under the control of the brand.

All of them have the same design and the only distinction is made

By the country (for example ”Franck Provost Spain” for all

salons in Spain).

It has more than 50000 ”likes” on Facebook

(page created at the same time than Dessange’s

one, 1000 followers on Twitter and 360 000 views

on Youtube.

It is organized and elaborated, the customer is guided,

And it gives a professional image of the brand.

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Against Direct Competition : Franck Provost

The difference in financial results between the two brand is significant. This could explain the difference in marketing

strategy investment.

But when we know Dessange is able to put more than 50 000 € in a new collection shooting that will only last one season, we

can still ask if the brand can make an effort in its internet strategy.

We can also take the problem in the other way and wonder if it is in part thanks to its internet strategy that Franck Provost

records this results.

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Conclusions & Recommendations

After have a look around the web to establish the Dessange‟s internet marketing strategy diagnosis, the first thing to say is everything remains to be done.

Some good ideas are there : site web's aspect (really class and elegant), site web's elaboration (opportunity to buy on line, to find a salon, to subscribe to the newsletter and receive by mail, advice videos, forms to know what kind of hair we have and which product we should buy), application for iPhone and iPad. But it is not enough to compensate the lack of organization in the web presence.

First of all, 4 official websites is the best way to lose the customer from the start. Dessange should focus only on one site and organize differently to introduce all the information it considers essential to represent the brand.

Then, on its official website, Dessange should add an English version if it wants to claim as an international group and achieve an international audience. The customers is lazy, he or she doesn‟t spend too many time to find what he or she wants. If he or she needs to check 3 different websites to finally find what exactly he or she was looking for, it will give a bad image of the brand and maybe influence the purchase decision.

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Conclusions & Recommendations

Dessange should also add links on the first page of its website to be redirected to Facebook, Twitter and even Youtube. Now, it is easier to broaden its customer through social networks. Peoples go on Dessange website if they are looking for this brand or something really close to. But they can fall on Facebook or Twitter pages by chance.

It should organize Facebook and Twitter to be sure customers do not be confuse. One page on Facebook and one count on Twitter is the best, and with all information in English if they want achieve an international audience. It can post all comments both in English and in French, it is not a problem. Social networks are the best to create a real community and widen new customers. Especially with the fulgurate emergence of beauty, trend and fashion blogs. Today, fashion new trends begin in the street and are immediately posted on the web. Dessange should do the same to keep this pioneering and trendsetter spirit.

About Youtube, it should optimize the search engine like Youtube offers its videos in first choice.

Finally, Dessange should establish a clear marketing policy with its franchisees to avoid each entity creates its own web presence with a website, a Facebook fanpage and a Twitter count. For this kind of brand that sells beauty and appearance, it is essential to take care of its own image on the web.

Dessange should need to pay attention as its presence on the web as its collections and its salon‟s atmosphere because internet is become the new customer showcase.

If the Dessange Internet strategy was a collection picture, we could say

about it, despite the make-up effort, the haircut has 3 years late and some

strands of hair exceed.

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References

http://www.dessange.com/fr/

http://www.dessange-international.com/fr/

http://www.secrets-dessange.com/fr/

http://www.e-dessange.com/fr/

http://www.facebook.com/

http://www.youtube.com/

https://twitter.com/

http://www.dessangetysons.com/

http://www.jdjd.co.kr

http://www.score3.fr/DESSANGE-INTERNATIONAL-542065081.shtml#signaletique

http://www.google.com/trends/explore#q=dessange%2C%20provost&cmpt=q

http://www.franckprovost.com/

http://www.mediagong.tv/

http://www.lefigaro.fr/societes/2012/01/17/04015-20120117ARTFIG00731-dessange-change-d-echelle-aux-etats-unis.php

http://www.meilleurcoiffeur.com/news/le-secteur-de-la-coiffure-en-chiffres-1051.html