National Student Advertising Competition Sara Bahnson Mike Brotzman Dara Charlton Eric Duchek Drew Miller Megan Miller Stefany Moser Allison Roberts Pierre Schmitt Cornelia Sprung Valerie Tucker

Overview Case overview Situation analysis Segment analysis Target market Positioning statement Value proposition Market strategy

Case overview

Situation analysis

Segment analysis

Target market

Positioning statement

Value proposition

Market strategy

Deliverables Increase trial and grow usage of AIM products by 15% Bridge the gap between AIM Messaging and AIM Social Media Increase AIM brand awareness

Increase trial and grow usage of AIM products by 15%

Bridge the gap between AIM Messaging and AIM Social Media

Increase AIM brand awareness

Objectives Extend the brand value AIM has achieved through messaging and expand it to the broader set of products in the social media arena Special focus on non-traditional marketing vehicles

Extend the brand value AIM has achieved through messaging and expand it to the broader set of products in the social media arena

Special focus on non-traditional marketing vehicles

Case Information Base target market: Men and women, ages 18-24 Campaign period: September 2008-August 2009 Budget: $25 million Campaign coverage: National in focus

Base target market: Men and women, ages 18-24

Campaign period: September 2008-August 2009

Budget: $25 million

Campaign coverage: National in focus

Market Research Primary Video intercept IM focus group User poll Secondary Guideline Research Company Internet sources

Primary

Video intercept

IM focus group

User poll

Secondary

Guideline Research Company

Internet sources

Situation Analysis The Product IM Market Competition Brand Personality Promotions

The Product

IM Market

Competition

Brand Personality

Promotions

AIM: The Product “Free online service that lets you communicate in real time” Downloadable or web-based IM client Features: Buddy List AIM Talk Center XM Satellite Radio Video Chat Cell phone integration File sharing

Downloadable or web-based IM client

Features:

Buddy List

AIM Talk Center

XM Satellite Radio

Video Chat

Cell phone integration

File sharing

IM Market 90% of teens and young adults use IM Business/Enterprise Workers: 135 million in 2007, 477 million by 2009 Revenue: $203 million in 2007, to $530 million by 2011 Interoperability Mobility

90% of teens and young adults use IM

Business/Enterprise

Workers: 135 million in 2007, 477 million by 2009

Revenue: $203 million in 2007, to $530 million by 2011

Interoperability

Mobility

Competition Yahoo! MSN Google Skype Trillian, Meebo, Bebo User Statistics Source: USA Today AOL 33 million Yahoo! 23 million MSN 19 million

Yahoo!

MSN

Google

Skype

Trillian, Meebo, Bebo

Source: comScore IM Growth Unique Visitors Instant Messengers Feb 06 Feb 07 % of change MSN-Windows Live Messenger 187,333 207,777 +11% Yahoo! Messenger 74,177 84,610 +14% AIM 26,968 29,080 +8% ICQ 25,843 27,427 +6% AOL Instant Messenger 18,729 13,547 -28% Skype IM n/a 8,673 n/a PalTalk 2,903 2,729 -6% Meebo n/a 2,290 n/a XFire n/a 1,757 n/a Twitter n/a 1,135 n/a Trillian 747 1,022 +37% Rediff Bol Messenger 235 989 +321% Plugoo n/a 900 n/a Userplane n/a 899 n/a

Brand Personality Approachable Witty Savvy Passionate Friendly

Approachable

Witty

Savvy

Passionate

Friendly

Promotion Historical Campaign: “I am AIM”

Historical Campaign: “I am AIM”

Strengths Name recognition “ Original” instant messenger Leading IM user-base Incredible amount of assets (Time Warner) Ease of use

Name recognition

“ Original” instant messenger

Leading IM user-base

Incredible amount of assets (Time Warner)

Ease of use

Weaknesses Poor brand image Product issues Security System lag Teen demographic appeal AOL/AIM is “old school” “… for people who don’t know any better.” 30% negative growth

Poor brand image

Product issues

Security

System lag

Teen demographic appeal

AOL/AIM is “old school”

“… for people who don’t know any better.”

30% negative growth

Opportunities Traditional media entertainment Time Warner assets Television Distribution and production companies Business market Mobile capabilities Google partnership Interoperability

Traditional media entertainment

Time Warner assets

Television

Distribution and production companies

Business market

Mobile capabilities

Google partnership

Interoperability

Threats MySpace and Facebook lead in social media Skype, Jabber for business market Yahoo! and MSN interoperability Google Looming threat OpenSocial and web-based IM

MySpace and Facebook lead in social media

Skype, Jabber for business market

Yahoo! and MSN interoperability

Google

Looming threat

OpenSocial and web-based IM

Segment Analysis The target from the case is 18-24 men and women How IM is used: 70% of internet users 38% send more IM than e-mail 33% use IM on their cell phone 26% of employed IM users IM at work 90% of 13-21 year olds 80% of 22-24 year olds

The target from the case is 18-24 men and women

How IM is used:

70% of internet users

38% send more IM than e-mail

33% use IM on their cell phone

26% of employed IM users IM at work

90% of 13-21 year olds

80% of 22-24 year olds

Reasons People IM 87% chat with friends and family 38% share photos 34% set up weekend plans 32% always multitask on computer while using IM 29% share files 25% communicate with others at work

87% chat with friends and family

38% share photos

34% set up weekend plans

32% always multitask on computer while using IM

29% share files

25% communicate with others at work

Current AIM Users Decreasing, large customer base Usage skews: 18-24 year olds Female (58%) 81% are Caucasian Student has an index of 299 Grew up using AIM

Decreasing, large customer base

Usage skews:

18-24 year olds

Female (58%)

81% are Caucasian

Student has an index of 299

Grew up using AIM

Major IM Trends Demand for traditional media entertainment 1st Possible Target Market: Entertainment junkie Move toward interoperability Integration 2nd Possible Target Market: Moderate user

Demand for traditional media entertainment

1st Possible Target Market:

Entertainment junkie

Move toward interoperability

Integration

2nd Possible Target Market:

Moderate user

Major IM Trends One third of Gen Y internet users are non IM users Possible Target Market: Non IMer Growth of Business IM Growth of Mobile IM Growth of VoIP in IM Possible Target Market: “ On-deck” professional

One third of Gen Y internet users are non IM users

Possible Target Market:

Non IMer

Growth of Business IM

Growth of Mobile IM

Growth of VoIP in IM

Possible Target Market:

“ On-deck” professional

Segments Evaluated on Five Criteria What the target values. The target’s underlying need. How can AIM meet that need? Can AIM do it better than the competitors? Opportunity of advertising revenue.

What the target values.

The target’s underlying need.

How can AIM meet that need?

Can AIM do it better than the competitors?

Opportunity of advertising revenue.

Entertainment Junkie PROS Opportunity to leverage AOL Time Warner assets Could create exclusive content High opportunity for advertising revenue CONS Missing link between AIM and entertainment More of strategy than a segment

PROS

Opportunity to leverage AOL Time Warner assets

Could create exclusive content

High opportunity for advertising revenue

CONS

Missing link between AIM and entertainment

More of strategy than a segment

Moderate IM users PROS Provides the opportunity for interoperability Use social media products CONS They view IM as “old school” They are not brand loyal Opportunity for advertising revenue low

PROS

Provides the opportunity for interoperability

Use social media products

CONS

They view IM as “old school”

They are not brand loyal

Opportunity for advertising revenue low

Non-Users PROS About one-third (38%) of Generation Y internet users do not IM AOL’s top of mind brand awareness CONS Satisfied with current offerings Opportunity for advertising revenue is low

PROS

About one-third (38%) of Generation Y internet users do not IM

AOL’s top of mind brand awareness

CONS

Satisfied with current offerings

Opportunity for advertising revenue is low

“ On-Deck” Professionals PROS Become the primary mobile business communicator Opportunity to blend social and professional networks Heavy users of social media CONS Competition may be able to provide similar services

PROS

Become the primary mobile business communicator

Opportunity to blend social and professional networks

Heavy users of social media

CONS

Competition may be able to provide similar services

Our Target Market “ On-Deck” Professionals Early job market/late college Take on leadership roles in work and school Always on the move Need constant connection to people Need the freedom of mobility

“ On-Deck” Professionals

Early job market/late college

Take on leadership roles in work and school

Always on the move

Need constant connection to people

Need the freedom of mobility

VALS Types of “On-Deck” Pro Innovators Successful, take charge people Emerging leaders in business and government Experiencers Value socializing and new trends Achievers Deep commitment of career and family

Innovators

Successful, take charge people

Emerging leaders in business and government

Experiencers

Value socializing and new trends

Achievers

Deep commitment of career and family

Positioning Statement For the young professional of tomorrow who is on the move and needs an open connection to professional and social networks, AIM is the launch pad that provides the freedom to communicate on your terms.

For the young professional of tomorrow who is on the move and needs an open connection to professional and social networks, AIM is the launch pad that provides the freedom to communicate on your terms.

Value Proposition AIM gives you on-the-go access to all the digital communication tools you use on your handheld device AIM will be mobile and interoperable “ Communication at your fingertips”

AIM gives you on-the-go access to all the digital communication tools you use on your handheld device

AIM will be mobile and interoperable

“ Communication at your fingertips”

Market Strategy Play defense Increase value Exclusive content Feature enhancements Leverage “recommenders” to gain new users Re-launch a new AIM: more integrated, more mobile Capitalize on alliances Create a pathway to social networking

Play defense

Increase value

Exclusive content

Feature enhancements

Leverage “recommenders” to gain new users

Re-launch a new AIM: more integrated, more mobile

Capitalize on alliances

Create a pathway to social networking

Feature Enhancement Develop applications: Twitter, real-time polls, etc. Open source Interface usability and design: Interoperable with multiple communication programs Versatile yet simple

Develop applications:

Twitter, real-time polls, etc.

Open source

Interface usability and design:

Interoperable with multiple communication programs

Versatile yet simple

Promotion Promote directly to existing AIM members to incorporate new friends through online marketing Sponsor a cause by clicking Exclusive content as a reward for inviting friends

Promote directly to existing AIM members to incorporate new friends through online marketing

Sponsor a cause by clicking

Exclusive content as a reward for inviting friends

Advertising Traditional Print ads Television Non-traditional Internet marketing on targeted sites Ad placement in television and movies Key word advertising on search engines AOL, AIM, Time Warner and other web properties Viral/word-of-mouth

Traditional

Print ads

Television

Non-traditional

Internet marketing on targeted sites

Ad placement in television and movies

Key word advertising on search engines

AOL, AIM, Time Warner and other web properties

Viral/word-of-mouth

Creative Brief Creative Strategy Convenience and ease Young professionals communicating while mobile Leisure or play spilling over into work May employ cause marketing Promise Young professionals will have more free time and simpler lives Tone Modern, cutting edge, genuine, bold, creative Tag Line AIM is your work source, your play source, your life source Work hard—Play hard—AIM high. If you aren’t using AIM, what are you missing? Take AIM. Wherever you are.

Creative Strategy

Convenience and ease

Young professionals communicating while mobile

Leisure or play spilling over into work

May employ cause marketing

Promise

Young professionals will have more free time and simpler lives

Tone

Modern, cutting edge, genuine, bold, creative

Tag Line

AIM is your work source, your play source, your life source

Work hard—Play hard—AIM high.

If you aren’t using AIM, what are you missing?

Take AIM. Wherever you are.