Clash of Clans - Completed Individual Study

WHY IS CLASH OF CLANS SO
SUCCESSFUL?
Name: Ryan Thaker Student ID: THA12064667
APRIL 26, 2016
CANTERBURY CHRIST CHURCH UNIVERSITY
Individual Study - 5,000 words

Ryan Thaker
StudentID:THA12064667
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THE BUSINESS SCHOOL
BA/BSC: Marketing
YEAR 3
Student Name: Ryan Thaker
Module: Individual Study
Tutor’s Name: Sara Garratt
Student No: THA12064667
Assessment No 5,000 word individual study assignment
Submission Date: 26/04/2015
Word Count:5,384 (excludingabstracts, appendices,
direct quotes,bibliography,diagrams and illustrations)
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Introduction
In thisessay I will be lookingatFinnishmobile-game developerSupercell andhow theyhave
developedone of the mostsuccessful mobilegamesinthe industry(Clashof Clans).Iwill convey
howSupercell usesword-of-mouthmarketingfromcurrentusers, inorderto encourage potential
usersto participate.Iwill alsoexamine the businessmodel thattheyhave undertakenandhow it
has effectivelygainedloyal usersandhow Supercell usesthe freemiumbusinessmodel and
elementsof the game togenerate sales. Thisessaywill alsoexplore how Supercell continuously
bringsout updatedversionsof Clashof Clanstoincrease the lifecycleof the game,andhow they
have createda game where usershave made onlinecommunityforums,inorderto communicate
withotherswhoexpressinterestinthe same game.
Backgroundinformationand history
Clashof Clansisa game thatcan be playedon smartphonesandtablets;the game itself canbe
downloadedonthe Google PlayandApple appstore forfree.Mobile gamingisbecoming
increasingly more popular,resultinginarise of revenue formobilegame developers. “Theindustry’s
biggestmarketrevenuestreamsin 2014 were Digital Consoleand PC
(£1,048m, +18%, split between £573m forconsolesand £475m for PC),Boxed Software(£935m, -
6%),Consoleshardware(£915m, +46%, thanksto strong PS4 and Xbox Onesales) and Mobile
gaming (£548m, +21%)”(UKIE, 2016). Althoughmobilegamingwasnotthe biggest forproducing
revenue inthe gamingindustry,itwasin2014 however, showingsignsof increasinggenerated
income.
The rise of mobile gamingisexpectedtoincrease andgenerate more moneythanconsole games,as
consumersare nowstartingto gear theirpurchasingbehaviourtowardsmobilegamesasopposedto
console games. Thisisshownby Gaudiosi (2015) whonotedthat “In 2015, global mobilegame
revenueswill eclipse consolegamerevenuesforthe first time Newzoo expectsthatmobilegameswill
generate$30.3 billion worldwide;it predicts thatconsolegameswill takein $26.4 billion”. Inthe
USA, nearlyhalf of the population thatplaygamesuse mobile devices (Harland,2014).This
emphasises the consumer’s behaviourandthe shiftof changingplatformstoplaygames.This means
that there are more opportunitiesformobile game developerstotake advantage of the market
change and generate revenue.
“An online survey conducted on 5,566 peoplelate lastyear found thatthetypical mobilegamer
spendsabouttwo hoursa day playing on mobiledevices, an increase fromonehourand 20 minutes
documented in the last yearstudy two yearsago”(Rad,2015).This showsthatconsumersare
becomingactive inplayinggames ontheirmobiles,whichcreatesmore opportunityforSupercell,as
consumersare enjoyingplaying gamesonmobile phonesandtablets, whichmaycreate anadded
desire tomake purchasestoplaymobile games.
Althoughthere is anincrease inpeople spendingtime playing mobile games inadditionto an
increase inrevenuesfromgamesthatare available onmobiles, the numberof appshasincreased
dramaticallyoverthe pastfive years.InJune 2010 in the Apple store there were 225,000 apps
available toconsumers,fromJune 2015 it reached1.5 millionappsavailable onthe Apple AppStore
(Statista,2015). Although apercentage of the appsavailable onthe store are notgames,itshowsa
highincrease in a varietyof applicationsthatconsumerscan downloadanduse.Thisshowsthat
Supercell have hadtodeal witha lotof competitioninordertostandoutand become successful.

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Thisgraph showsmobile gamingandthe increase of
revenue ithasgeneratedfrom2013 to 2016 (in
billionU.Sdollars).Thisshowsthatmore peopleare
buyingmobile games,ormakingin-apppurchases(if
game model is freemium).Withthisstatistic
increasing, mobile game developershave ahigher
chance of generatingincome.
(Statista,2015)
Thisgraph showsconsumers
and theirusage behavioursof
smartphoneswhendoing
otheractivities,takinginto
account that usersmaybe
playingmobile games. With
individuals usingtheirphone
whilstperformingthese day-
time tasks,showsthat
mobilesare animportant
accessoryto have which
enhancesthe opportunityfor
mobile developerstotake
advantage of this.
(Mobileconsumer2015: The UKcut gameof phones,2015)
“The low entry barrier to the mobilegamesmarketis a main attractorformany hobbyistsand
independentdevelopers.In thecaseof Android,thisbarrieris especially low:justget yourself theSDK
and programaway”(ZechnerandGreen,2012). With the barrierbeinglow-entry,itprovides
opportunities fordeveloperstocreate new gamesandbringthemout. Supercell were determined
to produce a model,suchas Clashof Clans,that wouldattract andmaintaincustomers.

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Supercell,the mobile game developer of Clashof Clans,wasfounded in2010, in Helsinki (Finland)
by:
- IkkaPaananen(CEO)
- MikkoKodisoja
- LassiLeppinen
- NikoDerome
- VisaForsten
- Petri Stryman (Supercell,2013)
Since then officeshave expandedtoSan Francisco,Tokyo,Seoul andBeijing. The firstgame that
Supercell launchedwascalled Gunshine. Supercell’sinitial strategywastobringout a game that
couldbe playedacrossall platforms(desktopweb,Facebook,tabletandmobile). The runningof
Gunshine wasthen stopped bySupercellbecause theydoubtedthe longevityof the game play.The
companyalsoidentifiedthatplayinggamesonmobile devices wasvastly differenttoplayingona
desktop, asitwas too hard to replicate mouse andkeyboardexperiencesontotouchscreens.
Supercell revisitedtheirstrategy byreleasinggamesthatwouldpurelybe playedonsmartphones
and tablets (Supercell,2013). Since thisrestructure,Supercellhasbroughtfourgamesintothe
market.
- Hay Day
- Clashof Clans
- BoomBeach
- ClashRoyale (Supercell,2016)
Since the creationof these fourgames,Supercell’svaluehasincreasedto$3 billionin3years.In
2013, SoftbankCorpagreed tobuy $1.5 billion stake of the Finnishcompany(who, atthe time,only
had twogamesreleased:HayDayand Clashof Clans) for$1.5 billion,the largest evermade
investmentinmobile-appcompanies (Rossi,GrundbergandStoll,2013).Two of Supercell’sco-
foundersmade more than$200 millionapiece (Rossi,Grundberg andStoll,2013).In 2015, Softbank
bought22 percentmore of Supercell,whichfurtherincreasedthe value of the companyto$5.5
billion(Takahashi,2015).
Clashof Clanswasfirstreleasedin2012 andsince then,Supercell have generatedrecordsamountof
money.In2013 whenSupercell publishedtheirfinancial results,the resultsrevealedthatClashof
Clansand Hay Day generated$892m of revenue,whereas in2012 theygeneratedjustaproportion
of thatsum with $101m (Drench,2014). Supercell have successfullyusedthe freemiummodelin
orderto helpleverage Clashof Clans“You can play the entire gamewithoutspending any money,
butClash of Clan’scompany,Supercell,relieson the impatienceof its usersto fuel$1.56 million it
earnsevery day”(McAlone,2015). A mobile datafirm“Annie”releasednewresearchdetailingthe
top grossingtitlesbetweenJuly2010 and July2015 onthe iOSAppStore.Clashof Clanstoppedthe
all-time worldwiderevenue listwithCandyCrushoccupying the secondspot(Chapple,2015). One
playerinClashof Clansis saidto have spentmore than$1 milliononin-apppurchases,inorderto
buyhis wayto the top of the gamesleague (Edwards,2015).Thisshowshow addictive the game is to
some users,astheyare willingtospendlarge sumsof moneyinordertoprogressto the higher
levelsquicker.
In orderfor Clashof Clansto stand outfrom competitionand tohave beenable togenerate records
amountof money,Supercell usedthe freemiummodel effectivelyand hasembedded featuresin
orderto attract more usersand to create a desire topurchase itemsinthe in-appstore.

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SocialNeeds
In orderfor Clashof Clans to become one of the biggestmobile appgames,Supercell hashadto
understand theirtargetmarketand have had to identify theirneedsandwants. Clashof Clansisa
game wherebyuserscanpartake in battles,inordertowinrewardssuch as lootor trophies.Loot
gainedfrombattlescanbe usedtoupgrade resourcesor armies,which canprogressa userto the
nextgaminglevel. The Clashof Clans game encouragesplayerstoinvite friendsand familymembers
to the game,as players workingina team(orclan) can helpimprove chancesof quicklydeveloping
an individual’s base. Anindividual’sbase iswhereauserhas theirresources,defencesandarmies
stored.The higherthe level of the base (TownHall),the betterqualityof resources,defences,army
and more loot(game currency) the gamerhas. “’Clash of Clans’,tribe thinking is designed in.
Withouta clan, a user will find it much moredifficult to defend againstattacking usersasgamers
than in a clan: the gamedesign is thatusers aresupposed to formclansin order to progressin the
game”(Bohemia et al., 2014). Thissuggeststhat,Supercell tryandencourage playerstoteamup
withfriendsinordertoenhance theirexperience. Teammemberscan,aspart of a clan, sendout
warriorsto each other,sothat theycan be usedby individualstohelpsuccessfullyattackanddefend
themselvesfromotherusers’ armiesanddefences. Withfeaturesof the game thatallowsfriendsto
share warriors,it can helpfulfilsocial needswhichwill keepplayersinterestedin continuingtouse
the game.
“We believe it’s likely that thisunusualskewing towardsolderplayersis indicativeof parentsplaying
in a clan with their child. In fact,in oursurvey weshow that30.4% of respondentsplay with a family
memberin the sameclan. In 8.7% of the casesthe clan is entirely comprised of friendsand family,
and in 21.7% the clan hasfriends,family,and somestrangerstoo.Itturnsout58% of CoCgamers
play in a clan with friendsor family.”(Hanson,2015)
The study above showsthatClashof Clans has featuresthatallows the integrationof friendsand
familymemberstoplayagame togetherbybeinginthe same clanand competingagainstother
clans,and thisnotion will influence playerstocarryon playingthe game. Althoughthe game isbuilt
for individualstodevelopandbuildup theirownpersonalwarbases,Supercell revolutionised the
mobile gamingindustry; the mobiledeveloperaddedaglobal social chat,to create a communityso
that userscan communicate togetherandevenformclanstoprogressfurtherinthe game (Reddit,
2014). This thenwill helpinfluence playersto continue playingandtoalsoassistthemin progressing
furtherinthe game. If Supercell hadnotcreatedthisglobal chatfeature,thenplayersmighthave
founditlessappealingtoplay.
As Clashof Clans ismore of a social game,itcan have an influence onthe consumer andwhether
theyshouldmake anyin-apppurchases.“In otherwords,theimagined impulsivelikelihood of
purchasing isgreatestin the peer group,when thepeers arecohesive” (Luo,2005). A studywas
undertaken withstudentundergraduates, analysingwhatinfluencesthemtomake purchaseswhen
out shopping.Resultsidentifiedthatif peopleinagroup of friendsorfamily members are cohesive,
it increasesthe chancesof a purchase if influencedbythe group.If a userof Clashof Clansis
cohesive withinaClanof friendsorfamily members,theymaythenbe more influencedby
purchasingextraswithinthe game (Luo,2005).
Anotherstudy wascompleted withtwenty-one interviewees whowere membersof aBrazilian
virtual community (anonline communityformemberstoshare andto helpplanwedding
ceremonies)examininghowthe influence of othersimpactedtheirpurchasingbehaviour. “Fourteen
respondentssaid they had madesomekind of changein their purchasing behaviour,eitherdoing or
notdoing something dueto whatother membersrecommended orsuggested”(Leal,Hor-Meylland
Luís AlexandreGrubitsde Paula Pessôa,2014). WithSupercell providingacommunityandclanchat

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for usersto talkto eachother,memberscanbe more easilyinfluencedbyotherstomake a
purchase. Thiscouldpotentiallybe one of the reasonsasto whyClashof Clansissuccessful andwhy
so manyusershave spentmoneyonin-appproducts.
A studywascompletedin2015, askingteenagerswhytheymake purchases onvirtual worldgames.
A questionnaire washandedouttoplayersof Habbo Hotel (virtual onlinegame) enquiringwhatthe
mainincentivesof themwere payingpremiummembership.The resultsshowedthatone of the top
five componentsof buyingmembershipwasbecause of “social status”.Usersthat made purchases
didso inorder to make more friendsandforsocial statusreasons.Some usersboughtpremium
membershiptoincrease chancestomake new friendsandcan unlockaccessoriesthatcanhelp
attract newfriends(Jariand Mantymaki,2015). Thisstudyshowsthat usersare influencedto
purchase to improve social statusandtry andattract new friends. InClashof Clans,if abase isat a
lowlevel,thenitmightbe more difficulttoattractfriends,howeverif itisbuiltup(like the person
whospent$1 milliononin-apppurchases),thanitwill lookmore attractive tootherpeopleand
wouldwanthimintheirclan to helpimprove further.
One game that failedinthe mobile industrywasPunchQuest(releasedinthe marketin2012 by
mobile game developerRocketcat), asthe game developerfailedtounderstandthe importance of
havinga social elementbuildintothe game.“Thehigh scorestable is core to the player’sexperience
in Bejeweled Blitz. The peer pressureof trying to top a friend’sscore each week is a big partof what
motivatestheplayer to use earned coins to purchaseboostsand raregems,and hit the play button
forjustone moreround.Punch Quest’scoreloop featuresa lengthy statsscreen, thatfrommy
personalexperience,I’veneverpaid thatmuch attention” (FamousAspect,2013). WithClashof
Clansprovidingfeaturesthatallowplayerstocommunicate andteamupwithfriendsandfamilies,it
attracts playerstoplaythe game for a longerperiod, whereasthe lackof social interaction
opportunitiesledtothe failure of PunchQuest.
A studywas undertaken onthe consumerdecisionmakingprocesswithregards toconsumersand
theirissueswhenpurchasingaproductor service “In effect,oursampleof consumersindicated that
they are willing to place value on social attributesdespitehaving a lot of information aboutthe
tangibleattributesof the productsand theirimplied quality” (Augeretal.,2010). The study results
showthat consumer’s social attributesof aproductisvaluable,andif productsdoprovide this,then
it makesitmore attractive to purchase.
Word-of- mouth marketing
WithClashof Clanshavingsocial featuresthatallowsplayerstocreate teams(clans) withfriendsand
familymembers,itenhancesthe pointof word-of-mouthmarketing. Word-of-mouthmarketingis an
unpaidformof advertisingwhere customerswhoenjoyusing aproductor service wouldactivelytell
friendsand familymembersabouthowmuchtheylike usingit(Staff,2015).

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The model belowshowsanexampleof the positivegrowingdemandof word-of-mouthmarketing.
(Adapted fromGoodman,J.2009)
Althoughword-of-mouthmarketingcan bringaboutmore negative referralsthanpositivereferrals,
Clashof Clansisbenefitingfrompositiveones,withexistingcustomersencouragingfriendsand
familytoplay the game so that theycan create biggerformsof clansto helpdevelopquicker.
If playersrecommend otherstoplayClashof Clans, itincreases the customerbase of the game and
userscan have an influence oneachothertospendonthe game. Gamesthat have social features
have more of a chance to creatingmore revenue,asuserscaninfluenceeachothertomake
purchasesand opinionscanbe expressedtoothers,whichmightpromptother playerstopurchase
upgradesto the game(Hamari, 2015). Withthere beingaglobal and private clanchat embeddedinto
the game,userscan expresstheiropinionsonothergame memberspurchasingdecisions,giving
themadvice onwhat theycan improve, generatingmore revenue forSupercell.
Thisgraph (Mintel,
2015)
showswhat
influencespeople to
download mobile
apps,the most
persuasive methodof
gettingpeople to
download anapp,is
throughreceiving
recommendations
fromfriendsand
family. More
traditional formsof
advertisingsuchas
TV advertisements
has been proven to
be lesspersuasive on
consumer’s
behaviourthanword-of-mouthmarketing. AlthoughClashof Clansdoes advertise on TV,itrelies
heavily onitsmemberstodothe talkingforthem, withthisbeingthe mosteffective formtoprompt
people toplaythe game.The thirdmost influentialelementof promptingpeople todownloadingan
10,000 customers
serviced
70% customersare
satisfied(7,000
customerssatisfied
withservice).
7,000 customerstell
twofriends
families/friends.
Resulting in 14,000
referrals having been
made.

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app isthe writtenreviewsfromusers.Thisshowsthatpeoplewill make adecisiononwhetherto
downloadaproduct or notdependingonwhatotherssayaboutit.
An analysis examinedthe effectof opinionleadershipthroughsocial networkingsitesandhow it
impactspurchases.Resultsshowedthatconsumeropinionscanbe influenced byopinionleaders
such as friendsandfamilyonsocial media,whichcanincrease retentionof purchasesandencourage
purchases(Raghupathi andFogel,2015).Users on Clashof Clanscan linktheirgamingprofile to
Facebooktoattract and findfriendswhoplaythe game,withplayerssharinggame contentsonline,
it can have an impacton otherfriendsto downloadthe product,orevenmake in-apppurchasesin
the game.
A study wasundertaken atthe Universityof Georgia, where 75 femalesand36 males were asked
abouttheirbehaviourof fashionpurchasingandhow others hadan impactwhendecidingwhether
to purchase.The studyprovidedevidencethat purchasesof popularbrand-name itemshadastrong
correlationwithpeersgivingapproval tothe persontomake the purchase.Althoughsome students
inthe studyarguedthat advertisementsinfluencedtheirpurchasingdecisions,itcouldbe argued
that thiswas notthe case because the fashionclothesthatwere the mostfrequentlybought,were
not traditionallyadvertisedinmediaoutlets,showingthatstudentsbought itemsdue tosocial
pressure frompeers(MalloryandKatalin,2011).
The study withthe Universityof Georgiastudentsshowsthatconsumersbuyproductsbasedonthe
thoughtsof theirfriendsandfamilymembers. Withword-of-mouthmarketingbeingeffective,thisis
one of the mainreasonsas to whyClashof Clanshavinga large customerbase, due to pressure from
othersto downloadthe game.
A studywasdone on medical tourismindustryinMalaysia,where anationwidesurveywas
distributedto2,000 people.The survey resultsshowedthatpeoplethatwenttomedical centres
were influencedbyotherpeople suchasfamilymembersorfriends.Thisshowsthe impactthat
word-of-mouthmarketinghasonpeople andtheir decision-making.“Fromtheresultsit is clear that
Malaysia is predominantly exportingthemedicalservices to Indonesiansand Singaporeans,who
collectively makeup 95% of the patientpool.These patientsare clearly influenced by three main
sources;friends(209 responses),family orrelatives(177 responses),and doctors(115responses)”
(Yeoh,Othman and Ahmad,2013). ThroughClashof Clansembeddingsocial toolsinthe game for
usersto communicate andplaytogether,the chancesof userspromotingandrecommendingthisto
friends hasincreased,resultinginfurtherpurchasesbythem,conveyinghow well Supercell hasbeen
doing.
AlthoughClashof Clans engagesin traditional advertising,itisstill notasinfluential asword-of-
marketing. Studieshave proventhisbyfindingresultsindicatingthatrecommendationsfromothers,
such as online productreviewsandcommentshasmore of an influence thentraditional advertising
(Li, Lin, and Lai, 2010). Word-of-mouthmarketingisevenmore effectivethensettingupmarketing
eventsand forbusinesses tobe doingmediaappearances. “Theelasticity for WOMis approximately
20 times higherthan that formarketing eventsand 30 times thatof media appearances” (Trusov,
Bucklin and Pauwels,2009). With Clashof Clansembeddingfeaturesonthe game suchas a social
communitychat,and private clanchat,it encouragesmemberstotalktopeersand encourage them
to playthe game,whichismore effective thenpaidforadvertising.

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Anotherelementof word-of-mouthmarketingis the accessibility of aproductto consumersand
howeasyis itfor people tomake a conversationaboutit. “Bergerand Schwartzfound thatWOMis
particularly driven by accessibility. If a productis easily at hand,itis morelikely to generate
conversationseven if it is notinherently interesting.This is the basisof much small-talkconversation”
(Spring,2012). Since the game is easilyaccessible overmobile,andthere isanincrease inpeople
usingmobile phones,it
isbecomingeasierfor
people tocommunicate
aboutproducts and
servicesinorderto
create conversations
withpeople.
Thisgraph (Statista,
2016) showsa forecast
inthe UK marketof the
growthof people using
smartphones.Withthe
increase of people using
smartphonesthismeans
that Clashof Clansis more accessible,whichwill make iteasiertogenerate conversationsregarding
the game.This can thenleadtomarketgrowth andClashof Clansretainingalargercustomerbase.
Users of Clashof Clanscan connecttheirgamingprofile toFacebook,inordertoconnectwith
friendsandshare postspromotingtofriendstoplaythe game as well.“Zynga choseFacebookforits
main platform,and tookadvantageof a numberof critical featurestheplatformoffers,such as
comparabilityof gamescoresamong friends”(Baden-FullerandHaefliger,2013).Althoughthe game
isnot directlyplayedthroughFacebook,featuresonthe social networkingsite allow membersto
compete andteamup withfriendsandshare results.Thisnotonlyhelps infulfillingsocial needs,but
alsocreatescommotionaboutthe game and promotesitvirally online,whichwill attractand
promptpeople todownloadthe mobilegame.
FreemiumBusinessModel
Supercell uses the freemiumbusinessmodel inordertohelpattractand encourage userstotake
part inthe game. The primaryapp isfree for userstodownloadhoweverrevenuecan be generated
by the companythrough allowingotherbusinessestoadvertiseinthe game,orcreatingin-app
productsfor usersto purchase (DaubsandManzerolle,2015). Clashof Clansdo not advertise within
the game,onlyprovide in-appproducts,thishowevergenerateshighincome “Freemiumgames
Clash of Clans and Hay Day makeover$5 million a day in revenueat thestart of 2014”
(Mintel,2014). Consumerscan downloadthe game throughthe Google Playstore or the Apple App
Store for free,howeverif participantswanttobuildtheirbase quicklytheyhave tomake in-app
purchases.Clashof Clanplayerscan buygemsinorder to helpquickenthe time tobuilddefences
and armies. “Asmuch as90% of the money spenton mobile gamesis now thoughtto comefromin-
app purchases;asa guide,research companiesIHSand App Annierecently estimated thattotal
mobile gamespending reached £9.5bn in 2013” (Stuart,2014). AlthoughSupercell doesnotmake
any moneyfrompeople downloadingthe game,theymake moneythroughconsumerswantingto
quicklybuildtheirbase and army whichhelpsgeneraterevenue.

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WithClashof Clansbeinga free game todownloadfromthe appstore, a largercustomerbase will
be attracted.“Firstly wefound thatoffering consumersa freetrial version of a mobileapp is
positively associated withincreased sales of its paid version (H1). This finding providesstrong support
forthe freemiumstrategy adopted by a numberof developersin theAndroid app market.As
discussed earlier, the natureof the Android ecosystemhasled to a very competitivemobile app
market.With thousandsof appsavailableforconsumersto choosefrom,offering a freeversion is an
effectiveway to increase theawarenessand interestof an unknown ornewly introduced app” (Liu,
Au andChoi, 2015). Havinga free appor game it will attractmore people todownloadit,because
customerswill notlose anymoneyindoingso; if they like ittheythenhave the optiontomake in-
app purchases.
People are more inclinedtobe downloadingafree game,insteadof apaidgame “73% of mobile
gamerssaid they had downloaded a freeapp,compared with 33% that said they had downloaded
onewith upfrontcosts”(Harland,2014). Thisclearlyshowsthatif a game is free,peopleare more
likelytodownloadit.WithClashof Clansbeingfree,itemphasisesthatmore peoplewill be
interestedindownloadingthe appastheydon’thave to investmoneyintogettingit.
Anotherbenefit of usingthe FreemiumBusinessModel isbecause evenif peoplewhodownloadthe
game but don’tbuyin-apppurchases,theycantell friendstoplay whomightmake in-app
purchases. Usingthismodel,businessesshouldbe,andshouldwelcome freeriders, because they
can helpthe companyadvertise itsproductstootherpeople thatmightbe willingtospendmoney
on in-apppurchases(Chiotis,2015).Supercell understandthatpeoplewilldownloadthe game,and
have no intentionof buyingin-appproducts,butif theypromote totheirfriendsand family
members,thenthese peoplethatthey have recommendedthe game to, couldmake purchases.
Most freemiumbusinessmodelsfail becausethese companiesoffertoolittlewiththeirfree product
or service,ordo the opposite andoffertoomuchvalue forthe product that spendingisnotneeded
at all.Businessesmustgetthe balancingactrightto ensure that:
1. People thatdonot have anyintentionsof payingforin-apppurchasesstill getvalue form
downloadingandusingit.
2. Those that do payfor in-apppurchasesgeta productwitha betterservice (Nelson,2013).
Bustos(2012) mirrorsthisstatementbysaying “There’sa fine line between a free productthat
delightsand retains users,and onethatgives too much milk forfree.The free version should be
“good enough”to providecorefunctionality,thepremiumshould haveusefulfeaturesthatfreeusers
care about(and ideally,can’tlive withoutoncethey’vesunktheir teeth into the free version)”.
Supercell hadtoensure thatClashof Clanswas a game that userscan use forfree and still have fun,
howeveralsoensuringpeople whomade in-apppurchasesthattheywill be able tosee the
difference betweenapersonwhohaspaidand someone thathasnot paid. Users of the game can
buygemsin orderto speed upthe progressionof the game.Playersdonothave to buythese gems,
howeveritcantake hours(evendays) forresourcestoupgrade.If people wantsomethinginstantly
upgradedthen spending$4.99 forgemsthat could replace days’worth of upgradingtime doesnot
seemlike amajorinvestment (Digital Tutors,2014). The higherthe level the playergoesup,the
more longerthe durationof upgradestakes,resultingtosome userslosingpatienceandpayingfor
gemsto rush upgrades(Digital Tutors,2014). Clashof Clansallowsuserstoplaythe game,without
needingtospendapenny,howeverif playersdon’tmake in-apppurchases,thenitwillbe slowerfor
theirclanto progress,within-apppurchasingitwill allow paiduserstoprogressquicklywithout
spendingtoomuchtime waitinghours(orevendays) fordefencesorresourcestobe upgraded
whichresultsingoingupto higherlevelsand leaguesquicker.

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As mentionedearlier,PunchQuestwasagame that had difficulties.Itwasinitiallybroughtoutwith
the freemiumbusinessmodel,howevertheychangeditasthe model wasnotworking.“RocketCat
hasflirted with failure.Punch Questreleased to enthusiasticfans(even being featured a few times) –
butits in-app purchasesmadevery little money”(MorrisonandBarker,2016). WithRocketCatnot
generatingenoughmoneyfromPunchQuestin-appproducts,itshowsthatusersplayingthe game
foundlittle needinmakingin-apppurchases. One reviewersaidthattheyenjoyedplayingthe game
and likedthe conceptof it;they howeverfeltthatthe balance wasnotright.The personbelieved
that in-apppurchaseswere notreallyneeded,andcouldquite easilycomplete the game without
spendinganymoney.The game wasrewardingenoughandgave little incentivetomake purchases
(Murphy,2012). Anotherreview onthe game,emphasisedthe lackof needof purchasingin-app
products,sayingthatthe game used an oldschool heartsystem, ratherthaninstantdeath system,
there were powerupsavailabletopurchase. Embeddinganoldschool heartsysteminthe game,
RocketCatgave usersa lot of livestocomplete alevel.Thisthengave little incentive foruserstobuy
the in-apppower-upsinordertosurvive andtocomplete the game (Rosenthal,2012).Withusersof
the game notseeingthe pointof buyingin-apppurchases,itisverydifficultformobilegame
developerstomake money. RocketCatlaterchangedthe model andchargedplayerstodownload
the game (Rosenthal,2012), thisresultedtofewerdownloads,butstill gainedhigherrevenue
because of the amount of existingplayersthatwere not buyinganyin-apppurchases.
Game retentionandupdates
Clashof Clanshasbeena growinggame since 2012. Using the businessfreemiummodel,ithas
continuously createdupdates inordertoretainexistingusers.A lotof mobile game developersfind
it difficulttokeepagame popularand growingwiththe use of the businessfreemiummodel,
“Freemiumgameshavean averagelifespan of less than a year.Mobile appskeep only 25% of users
aftera single day,and a ghastly 2.3% averagewill remain after a month”(Turner,2015).Clashof
Clanshas beenin the marketforfour years,withmost mobile apps survivingthe firstmonthof being
released.
Thisdiagram
(Kumar,2014),
showsthe
productlifecycle
of a freemium
product,the
earlyadaptors
that start
playing,tendto
be the ones
playing,however
late adaptorsare
more price-
sensitivesolater
intime revenue
isexpectedtodecrease.Upgradesare done inorderto create a desire fromthe earlyadoptersto
spendmore andto encourage late adopterstomake purchases.

Ryan Thaker
13 | P a g e
Clashof Clansare continuouslycomingupwithnew featuresinordertoattract and to keepexisting
usersentertainedbythe game. “Last2014, the updatesof thegamewere numerous:a new Here
(Grand Warden) wasrevealed,darkspells,air sweeper,end of exposed town halls,eagleartillery and
Town Hall 11.”(ParentHerald,2016).A new,higherlevel townhall,has keptplayersinterestedinthe
game as theywill have tobuildandparticipate inwarsmore in orderto getto the nextlevel totry
out newfeaturessuchasthe eagle artillery. “2016 updates for"Clash of Clans"are new darktroops,
newdarkspells, and a newgameplay featureslike daily quests,adventuresand whatnot.”
(ParentHerald,2016).Clashof Clans createdupdates in2016,forming new troopsso that userstrain
up.With Supercell continuouslybringingoutnew features,itwillattractplayerstokeepplayingthe
game,and makingfurtherin-apppurchases.
Advertisements
Althoughword-of-mouthmarketingisproventobe more effective thantraditionaladvertising,
Supercell have done some advertisingcampaignstocreate awareness of Clashof Clans. In2015
Supercell releasedanadvertat Superbowl promotingClashof ClansthatincludedLiamNeesonina
humoroussketchplayingthe game (Grubb,2015). The adverthashad 30 millionviewsonYouTube
and wasthe mostpopularSuperbowl advertthatyear.The advertwasso successful thatithelped
climbClashof Clansfrom 39th
to 24th
as one of the mostdownloadedapps(Grubb,2015). “It is the
third consecutivetime thatthis ad forSupercell has featured in the chart.It showsLiamNeeson
talking to a gamesconsoleand threatening hiscompetitor,when a man shouts"Li-am,I havea
sconefor Li-am".The camera pansoutto show Neeson in a coffeeshop.Itwasshared 21,588 times
this week”(Degun,2015). Withthe use of humourand celebrityendorsementitraisedmassive
awarenessof the game and gave itcredibility.
WithSupercell usinghumourintheiradvertisingcampaigns,itmakesitstronger formore consumers
to recall itin theirmemory,“Theuseof humorin advertising can enhanceattention and increase
likability, recognition,and recall” (Spotts,WeinbergerandParsons,1997). If consumerscanrecall
the advert, that meansthat theyhave more chance of storinginformationaboutthe game which
may helpinfluence downloadthe product. “Figure4 depicts which brand of energy drinkwaschosen
to consumersfromas a function of humorassignment.Aspredicted,participantsshowed a
significantpreferenceforthe humorbrand” (Strick etal.,2009). Thisstudyreemphasisesthe impact
humourhas on recall inmemoryinthe consumersmind,andhow the consumerviewsthe product.
If the productis portrayedashumorousand fun,consumers wouldbe more attractedtobuyand use
it.
CelebrityendorsementhasalsohelpedClashof Clansstandout,withthe use of LiamNeeson,itgave
the game more credibility.
“Celebrity endorsementcan bestowspecialattributesupon a productthatit may havelacked.A
celebrity is used to impartcredibility and asp rational valuesto a brand and needsto match the
productsince thevalue associated withthecelebrity is transferred to the brand and thereforeit helps
in creating an imagethat can be easily referred by consumers.Asa result by association,thebrand
can very quickly establish the credibility, it can getimmediate identification and thuscan improve
sales.The main objectiveis to garnerfasterbrand recognition,association and emotionalunity with
the targetaudience. Celebrity endorsementif used effectively,makesthebrand stand out,galvanizes
brand recall and facilitates instantawarenessthustherightchoice of celebrity to use mustbe done
by the marketers”(ZipporahandMberia,2014).

Ryan Thaker
14 | P a g e
The study findingsabove show thatif celebrityendorsementisusedright,itcangive a product
credibilityandmake itstand-outandgenerate sales.Withthe use of LiamNeeson,Supercell have
successfullybuiltanadvertisingcampaigninordertogenerate salesandgenerate more downloads
of the game.Thisfurtherenhancedthe lifecycleof the game.
Online Communities
Supercell hascreatedagame,where usershelpothersout whentryingtoimprove base defences
and communicate howtoattack otherbaseseffectivelytogainlootandtrophies,togo higherlevels.
(Clashof ClansBuilder,2016)
The image above showsa website dedicatedtoClashof Clanplayers,sharingtheirwarbasesonline,
where otherusersrate them,andcommentwhatcouldbe improvedaboutthe base.The online
communityforum,givesachance for playerstodiscusswhatthe beststrategiesare toattack
opponents,dependingonwhatleveltheirTownHall is,inthe game.Thishas helpedretain
customersforSupercell,becauseif playersare communicatingtoeachother,ithelpsothersthat
needhelpinordertoimprove theirgame strategy.

Ryan Thaker
15 | P a g e
(Clashof Clanstools,2016)
The image above shows anotherwebsite dedicatedtoClashof Clanplayers,providingaforumfor
playerstopost picturesof theirclanbases,sothat otherscan view, rate andmaybe use if theyfeel
the base is well tacticallydesigned.There are awide varietyof forumsof the game online,thereare
alsouserspostingvideoson YouTube,promotingwaysonhow toattack opponentsdependingon
whatlevel theyare.These usershave helpedClashof Clanspromote andretainplayers tocarryon
playingthe game.Userscan nowuse these communitiestohelpimprove theirstrategy,whichwill
helpthemenjoythe game more.
Interviewof existing Clash of Clanplayers
I interviewedthreeexistingClashof Clanmembersthatare currentlyall inthe same clanas the one I
am playingin(Clanname:Bubble Warriors) (Interview questionsand answersshown in Appendix 1).
Askingthree of these membersof howtheywere made aware of the game and whatattracted them
to downloadingthe game,theyall discovered itinasimilarway to how discoveredit,withfriendsor
familymembersencouragingthemtoplaythe game andbe a part of one clan.Interviewee1said
“The friendsthatare in thesameclan as me, asked mea good threeor fourtimes to download and
play the gamebeforeI started playing it. If it wasnot forthem,then I wouldn’t havediscovered what
a greatgameit is”. Thisshowsthe impact of word-of-mouthmarketing,because if eitherof ushad
not been encouragedtoplaythe game byfriendsorfamilymembers,thenthe chancesof
downloadingthe game were slim.
I askedthemif theyhave made any in-apppurchases,twoof themsaidyes.One of the interviewees
saidwhentheyfirststartedthe game,the personthatinfluencedthemtoplayencouragedthemto
spend£8 onthe game so that theycouldaffordtobuy all the builderstohelpbuildupresources
quicker.The otherpersonthatboughtgemswithreal money,wantedtospeedupproductionof
townhall to gainaccess to othernewandbetterresources.
I askedthe otherintervieweewhytheydidnotspendanymoney,andthe reasonwasbecause they
were satisfiedwithorganicallybuildinguptheirwarbase.Thiswassimilartomy justificationof not
spendinganymoney,althoughIhave beentemptedtospendmoney,Ifeel thatIam playinga game
that I am satisfiedwithoutthe needof investingmoney.

Ryan Thaker
16 | P a g e
The last questionaskedwasregardingwhytheyplaythe game andwhattheyenjoyaboutit.All
three saidthat theyenjoydoingclanwars,where clanmemberscanworktogetherinorderto play
the game andbeat otherclans.The embeddedsocial clanchat,alsohelpskeepthe game attractive
as we can all communicate toeach other,whilstplayingagame that we all share incommon.
Wheninterviewingthese clanmembers, Iidentifiedthatbecause Clashof Clanshasfeaturesthat
allowsusto communicate with eachotherandshare attacks we have done with eachother,it has
helpedbuildupfriendships.The game alsohasthe right balance of needingor notneedingin-app
purchasesdependingonhowpatientthe useris,inregardto speedingupprogression.
Conclusion
Clashof Clansisa game thathas revolutionisedthe gamingindustry.Withrecordrevenue inin-app
purchases,more andmore people are spendingmore time playingandspendingmoneyonmobile
games.Supercell hasdesigned agame thatworks effectivelywiththe BusinessFreemiumModel and
embeddedfeaturesinthe game thatallowsplayerstoplayandteamup withfriendsandfamily
membersinorderto take on other clans,andallowsplayerstohelpeachotherinorderto helpthem
reach higherlevelsongame. ComparingittootherFreemiumgamessuchas PunchQuest,they
balancedthe model perfectlysothat,free loaderscanplaythe game withouta majorneedtopay.
Howeverif userswantto upgrade tonew levelsquicker,the in-apppurchasesare there tohelp.
People rely onotherstohelp, increasingword-of-mouthpromotionsandencouragingotherstoplay.
Furthermore itisfoundtobe more effectivethantraditional advertisingmethods.Withthe mobile
gamingindustrygrowing,andrevenue made frommobile gamesexpectedtoeclipse console gaming
revenue,the opportunitiesare growingforSupercell.HoweverSupercell mustcontinue todevelop
newfeaturesinthe game,inorderto keepexistingusersandattractnew customerssothat further
purchasesare made in the game and continuestoincrease the lifecycle of the game. Supercell could
replicate Mobile developercompetitorRovio(creatorof AngryBirdsgame) andenterthe film
market.Althoughitwouldbe anewindustrySupercellwillhave tounderstand,itcouldbe another
channel of generatingmoneyforthe company.Rovioare expectedtorelease “The AngryBirds
Movie”in2016 (Hall,2015). WithRoviolookingtotake advantage of the hype surroundingAngry
Birds,itwill generate more revenue andincrease the life cycle of the brand.
If Supercell wastolookat otherways of generatingmoney,thisstepcouldbe takentoensure Clash
of Clanslastslonger.

Ryan Thaker
17 | P a g e
Appendix
Questions Interviewee1 Interviewee2 Interviewee3
1. How were you
made aware
of the game?
Recommendedbya
friendatwork
(Interviewee 3
recommendedthis
personto playthe
game and jointhe
clan).
Interviewee2was also
recommendedbya
friendatwork
(Interviewee 3
recommendedthis
personto playthe
game,and jointhe
same clan).
Intervieweewasmade
aware by
advertisements,but
was recommendedto
playthe game by
people atworkand
thenjoinedthe clan.
2. Have you
made any in-
app
purchases?
Has not made any in-
app purchasesin
game yet.
Made in-app
purchasesof gemsat
the beginningof the
game.(Interviewee 2
usedgemsto
purchase builders,so
that there are more
buildersbuilding/
upgradingresources/
defences
simultaneously).
Personwas
encouragedtomake
purchasesby
interviewee sothat
the personcould
advance higherlevels
quicker.
Made in-app
purchasesinorderto
achieve higherlevels,
and to impressfriends
of the clan.Wantedto
catch up withother
membersinthe clan
and be same level as
them, if notgo higher
than them.
3. What isthe
mainreason
as to whyyou
playthe
game?
Enjoyplayingthe
game,has good
conceptto the game.
Able toplaythe game
withfriends,
communicate with
each friendswhen
attackingotherclans
inwars. The features
and resources
available tobuildon
game makesit more
entertaining
comparedto other
games.
Enjoyplayingagame
where youcan team
up withfriendsand
take on otherclans.
The chat features
reallyofferachance
to socialise withother
clan members,andif
strugglingatone level,
othermemberscan
chat what waysto
improve.
The game conceptis
fun,and isnot boring.
Withthe gameschat,I
have had the chance
to make new friends
where we all share a
commoninterest.
Clanwars are fun
because youcan team
up withfriends.

Ryan Thaker
18 | P a g e
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