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IWOM watch 2nd half year review 2006
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IWOM watch 2nd half year review 2006

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  • 1. “You”— Time’s Person of the Year — also lives in China - CIC Watch 6 Month Review Report Period: July - Dec, 2006 CIC Contact: info@cicdata.com
  • 2. “You” – the Person of the Year Time recently selected “you” as the person of the year because “you” is taking control of the information age via blogs, message boards and video. Lucky for us, “you” also lives in China, with 2006 serving as a breakout year for Internet Word of Mouth (IWOM). Just as in the West, this was the year that consumers began taking control of their media. They created their own stars. Dell learned that they can create a crisis. Bloggers topped the best seller list with their printed blog content and searched on Baidu for quintessential net star Fu Rong Jie Jie more than they did Mao Ze Dong. Brands also reached out to consumers for marketing ideas, asking them to create TVC’s (Pepsi Creative Challenge) and tapping their net stars to be spokespersons (Sony Ericsson and Tian Xian MM). For this report, we have prepared a 6 month review past CIC watches. It doesn’t cover the whole year, but if these past 6 months are any indication, we are only at the beginning of a long and interesting ride with the consumers behind the wheel. We look forward to reporting more in 2007!
  • 3. Content Highlights • Be careful, consumers now are in control of your brand image Welcome to • Dell Hell China Agenda - Consumers rally on BBS to create a class action the Crisis lawsuit against Dell in less than 2 weeks 2.0 era • KFC’s Woes Continue – Netizens have a good memory Consumer- • Consumers’ ideas can bring you great marketing opportunities, do not Brand Co- just ignore popular buzz Creation • Mega Collaboration – consumers become marketers Extended • Corporate blog – an emerging trend to share companies’ great work in a PR/Marketing humanized voice Channel In • Extending your brand experience to the virtual world Web 2.0 • While breathing the common Net Language, netizens are also passionate The Rising to discuss things new like the online “Gate” incidents Net Culture • Creating Net Stars overnight – you could be the next one • Not just offline – famous actress Xu Jinglei gets picked by AMD for her world’s most influential blogger reputation
  • 4. Welcome to the Crisis 2.0 era In the "old days," a company crisis typically started in traditional media, and then was amplified via on BBS and Blogs. "Black March" of 2005 with SK-II, Heinz, KFC and others offer plenty of cases. And Crisis 1.0 Crisis 2.0 this is what we call crisis 1.0. Now, more and more, crisis' are actually starting on BBS or blogs. In the U.S., it started with Kryptonite. Then, Dell Hell, and more recently Comcast and AOL. For overview in China, see Business Week . Also, see our analysis here and here. This new era of crisis is 2.0 now.
  • 5. Be careful, consumers now are in control of your brand image In China In July, an offending VW Polo Ads left an impression that subway commuters should become "aspiring" Polo GP owner so they can overcome the seemingly working class subway. The reaction of netizens was fierce, and as netizens are apt to do in such situations, one poster juxtaposed the original ads with his own text copy added to Gulfstream Jet adverts. FYI: Toyota once met similar problem long time ago. In U.S A Comcast technician sleeping on my couch: one Comcast (a famous cable network company in U.S) technician fell asleep on the consumer’s couch when fixing the network problem. The consumer recorded this scene with camera, added text subtitle and background music, then uploaded it on YouTube which finally made coverage on mainstream media because of the loud buzz Source: CIC Watch Jul 1-15
  • 6. Dell Hell China Agenda - Consumers rally on BBS to create a class action lawsuit against Dell in less than 2 weeks •June 23, 2006: On IT168 BBS Dell Forum, a consumer complained that Dell shipped notebook with different chip than advertised on Dell website LINK •June 24, 2006: IT168 Dell Forum administrator set up a post in the forum inviting others to share their problems with Dell problems LINK •June 24, 2006: IT168 set up a “Dell Hell” section on its website to track the issue LINK •June 28, 2006: Dell responded to the incident, saying it is feeling sorry about the issue LINK •June 29 , 2006: Shanghai based lawyer Ma Jianrong (马建荣) posted a proposal on IT 168, saying he would like to provide lawsuit service to “Dell Hell” consumers LINK •June 30, 2006: Mainstream media began to report the lawsuit that over 200 consumers are suing Dell LINK •July 4, 2006: CCTV2 interviews lawyer leading class action suit against Dell and reported the status of the lawsuit LINK •July 5, 2006: Dell responded to the incident again, saying consumers can get refund LINK See BusinessWeek Article about Processor Gate here. Source: CIC Watch Jul 16-31
  • 7. KFC’s Woes Continue – Netizens have a good memory April July September - October 2006 2006 2006 “Eating KFC chicken wrap KFC chicken sandwich TVC KFC egg tart TVC is accused means a ticket to university?” gets accused of spoofing of deceptively portraying a This controversial TVC Chinese traditional culture. Japanese idea in a Chinese becomes the start of a serial (sample buzz) way. (sample buzz) TVC problem. (sample buzz) We are not stupid, respect us We love our country, do not insult anything Japan is not related to China welcome here Source: CIC Watch Oct 16-31
  • 8. Wow! Some of the customers really understand the brand, we should try these ideas… Consumer-Brand Co-Creation With the development of online interactive technology, working with your customers and letting them think about the brand at your position becomes much easier to access. Brands now have the opportunities to further expand their value through true engagement. I think it would be cool if they have a TVC like this…
  • 9. Consumers’ ideas can bring you great marketing opportunities, do not just ignore popular buzz “Diet Coke + Mentos Mint = Fountain”, in June, 2 creative men release a super viral video about how they use Coke and Mint to make a magnificent soda fountain which finally creates a hot scenario of similar consumer made videos. While Coke thinks such videos inappropriately displays its Diet Coke product, Mentos utilizes this opportunity to further associate its brand image with the popular trend by hosting “Mentos Geyser Video Contest” in July. Maybe because of the good success of Mentos Geyser Video Contest, in October, Coke finally changes its mind to welcome the original video makers as stars to represent its creativity marketing event “Poetry in Motion Challenge”. Source: CIC Watch Jul 1-15/Oct 16-31
  • 10. Mega Collaboration – consumers become marketers In 2006, many brands launched open source marketing to let consumers design products’ next TVC/logo or to let them share brand experience in daily lives through videos/text script. The buzz is good for brands, but more importantly, consumers become marketers by deeply thinking about the brand’s image/value. Total No. of Type of No. of Brand Campaign Description Online Social Submissions Submissions Media Mentions* write down an Skincare Creative Life creative idea in Video, Text 884 150 daily life Report on fight Electronic "War" Reporter against teeth Text 291 200 Toothbrush bacteria write a script for Text, Video, Computer Writing for XXX 1,311 380 TVC Picture write a script for Text, Video, Beverage Saving XXX XXX TVC 152 2,508 Flash ending Acting in brand Athletic Apparel JDI Video, Text 1,045 6,666 video write a script for Creative Beverage spokesperson Text 26,869 28,154 Challenge TVC Note: Based on CIC tracking, estimates and publicly available data. Source: CIC Watch Aug1-15
  • 11. Extended PR/Marketing Channel In the Times of Web 2.0 The interactive web technology not only brings a sea of change to netizens’ online experience, but also provides a whole new channel to conduct its PR and Marketing event. Consumer engagement has never been so massively close to brands.
  • 12. Corporate blog – an emerging trend to share companies’ great work in a humanized voice Companies that blog their core product/value: … and more If your company is also doing great work, why not yet share with others? Source: CIC Watch Oct 1-15
  • 13. Corporate blog – an emerging trend to share companies’ great work in a humanized voice Executive blogging Blogging your product Blogging your values Source: CIC Watch Oct 1-15
  • 14. Extending your brand experience to the virtual world In U.S 1 SecondLife is a popular online virtual life game, recently more and more organizations enter it to extend their influence 2 Screenshot at left: 1. Dell sets up Dell island for product information sharing, extensive branding and more… 2. Famous private PR firm Edelman creates new island in Second Life through cooperation with Electric Sheep Company. 3 3. For PR, US government organization Center for Disease Control enters Second Life. Players can buy their VW polo and cruise in it in the game In China Shanghai VW is now making its POLO available in the virtual gaming world “疯狂赛车”(crazy race). Players can purchase the virtual car and drive it in the game. POLO banners are also displayed in the gaming space. Such online-offline mixed connection would help to establish/strengthen the emotional bond between brands and consumers. Source: CIC Watch Oct 1-15/Nov1-15/Dec 1-15
  • 15. The Rising Net Culture - When online, do what netizens do Netizens have special language, create and worship their own celebrities. Many offline experiences just do not fine when they get online. For anyone who wants to fit in that world, it is wise to start observing. Furthermore, the net culture has not only online influence but also affects the offline world.
  • 16. While breathing the common Net Language, netizens are also passionate to discuss things like online “Gate” incidents Common Net Language “Gate” Incidents 粉丝 - fans April 拍砖 - make suggestions University Gate(大学门) 顶 - support 粉 - very June 大虾 (big shrimp)- savvy Processor Gate (换芯门) 74 (去死) - go to hell 偶 (我) - me June FT(晕倒) - faint Commentary Gate (解说门) PMP (拍马屁)- kissing ass MPJ (马屁精) - people who kiss ass August 表 - no Shi Yang Gate (师洋门) BT (变态)- sick BS (鄙视)- shame on others September 撒花 - congratulations Toilet Gate (厕所门) Source: CIC Watch Sept 1-15/Oct 16-31
  • 17. Creating Net Stars overnight – you could be the next one Tian Xian MM Netizens create Represent fan site after Become media focus Sony-Ericsson finding this ethnic mobile phone girl Bus MM A local beautiful bus conductor’s photo get uploaded to BBS by netizens which brings unexpected fame in local region and finally puts her on newspaper cover Ding Beili Fans take a picture of a Story gets Interviewed beautiful girl at an traditional media by major exhibition attention portal site Source: CIC Watch Aug 16-31
  • 18. Not just offline – famous actress Xu Jinglei gets picked by AMD for her world’s most influential blogger reputation AMD’s (world’s second biggest computer processor manufacturer) new TVC is directed and acted by world’s most influential blogger Xu Jinglei. The TVC is focusing on her famous blog. The netizen who uses AMD’s new processor becomes the first one leaves the comment to her blog. This idea is represented by the Chinese social media term of "grabbing the sofa" or "抢沙发" (the term used to describe the effort to place the first comment on a blog or BBS post, a point of pride for many). Source: CIC Watch Jul 1-15