Internet marketing cases 2012 h2

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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.

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Internet marketing cases 2012 h2

  1. 1. © 2013, Internet Marketing, Professor Janghyuk Lee 11 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
  2. 2. © 2013, Internet Marketing, Professor Janghyuk Lee 22 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
  3. 3. Company Report Kyungyoon Kang 2008120243 Business School
  4. 4. © 2013, Internet Marketing, Professor Janghyuk Lee 44 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
  5. 5. © 2013, Internet Marketing, Professor Janghyuk Lee 55 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.
  6. 6. © 2013, Internet Marketing, Professor Janghyuk Lee 66 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.
  7. 7. © 2013, Internet Marketing, Professor Janghyuk Lee 77 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
  8. 8. © 2013, Internet Marketing, Professor Janghyuk Lee 88 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.
  9. 9. © 2013, Internet Marketing, Professor Janghyuk Lee 99 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
  10. 10. © 2013, Internet Marketing, Professor Janghyuk Lee 1010 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
  11. 11. © 2013, Internet Marketing, Professor Janghyuk Lee 1111 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
  12. 12. © 2013, Internet Marketing, Professor Janghyuk Lee 1212 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!
  13. 13. © 2013, Internet Marketing, Professor Janghyuk Lee 1313 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
  14. 14. © 2013, Internet Marketing, Professor Janghyuk Lee 14 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
  15. 15. © 2013, Internet Marketing, Professor Janghyuk Lee 1515 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.
  16. 16. © 2013, Internet Marketing, Professor Janghyuk Lee 1616 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.
  17. 17. © 2013, Internet Marketing, Professor Janghyuk Lee 1717 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.
  18. 18. © 2013, Internet Marketing, Professor Janghyuk Lee 1818 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.
  19. 19. © 2013, Internet Marketing, Professor Janghyuk Lee 1919 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.
  20. 20. © 2013, Internet Marketing, Professor Janghyuk Lee 2020 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.
  21. 21. © 2013, Internet Marketing, Professor Janghyuk Lee 2121 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.
  22. 22. © 2013, Internet Marketing, Professor Janghyuk Lee 2222 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.
  23. 23. © 2013, Internet Marketing, Professor Janghyuk Lee 2323 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
  24. 24. © 2013, Internet Marketing, Professor Janghyuk Lee 2424 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
  25. 25. © 2013, Internet Marketing, Professor Janghyuk Lee 2525 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!
  26. 26. © 2013, Internet Marketing, Professor Janghyuk Lee 2626 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
  27. 27. (Posten AB) “Sweden‟s safest hands” (Trygga Händer) Company report Kim Baik Gin Hi 2010120384 Internet Marketing 2012 Prof. Janghyuk Lee
  28. 28. © 2013, Internet Marketing, Professor Janghyuk Lee 2828 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”
  29. 29. © 2013, Internet Marketing, Professor Janghyuk Lee 2929 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.
  30. 30. © 2013, Internet Marketing, Professor Janghyuk Lee 3030 Company Introduction  Sales/Profit (2009-2011) PostNord‟s Annual report 2010, 2011.
  31. 31. © 2013, Internet Marketing, Professor Janghyuk Lee 3131 Company Introduction  Performance Summary PostNord‟s Annual report 2010, 2011.
  32. 32. © 2013, Internet Marketing, Professor Janghyuk Lee 3232 Company Introduction  Sales/Profit for Meddelange Sverige (Mail Sweden, Posten) (2009-2011) PostNord‟s Annual report 2010, 2011.
  33. 33. © 2013, Internet Marketing, Professor Janghyuk Lee 3333 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)
  34. 34. © 2013, Internet Marketing, Professor Janghyuk Lee 3434 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)
  35. 35. © 2013, Internet Marketing, Professor Janghyuk Lee 3535 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.
  36. 36. © 2013, Internet Marketing, Professor Janghyuk Lee 3636  Recent campaigns “Sweden‟s safest hands” (Trygga Händer) http://www.youtube.com/watch?v=-j0PXi2wz6Y http://www.tryggahander.nu/ http://ourwork.se/safesthands/ iPhone App: https://itunes.apple.com/se/app/trygga-hander-ett-spel-fran/id510407632?mt=8 Internet Marketing Activities - Posten
  37. 37. © 2013, Internet Marketing, Professor Janghyuk Lee 37 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.
  38. 38. © 2013, Internet Marketing, Professor Janghyuk Lee 38 Sweden‟s safest hands (Trygga Händer) – Mobile Campaign Trygga HänderTrygga Händer vs. Posten AB Google Trends
  39. 39. © 2013, Internet Marketing, Professor Janghyuk Lee 39 Sweden‟s safest hands (Trygga Händer) – Mobile Campaign App download statistics. AppFigures (daily rank available at the web)
  40. 40. © 2013, Internet Marketing, Professor Janghyuk Lee 4040  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
  41. 41. © 2013, Internet Marketing, Professor Janghyuk Lee 4141  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
  42. 42. © 2013, Internet Marketing, Professor Janghyuk Lee 4242  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
  43. 43. © 2013, Internet Marketing, Professor Janghyuk Lee 4343  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
  44. 44. © 2013, Internet Marketing, Professor Janghyuk Lee 4444  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
  45. 45. © 2013, Internet Marketing, Professor Janghyuk Lee 4545  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
  46. 46. © 2013, Internet Marketing, Professor Janghyuk Lee 4646  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
  47. 47. © 2013, Internet Marketing, Professor Janghyuk Lee 4747 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
  48. 48. © 2013, Internet Marketing, Professor Janghyuk Lee 4848 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
  49. 49. Company Report: Sephora USA Inc. Ah hyun Kim
  50. 50. © 2013, Internet Marketing, Professor Janghyuk Lee 5050 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
  51. 51. © 2013, Internet Marketing, Professor Janghyuk Lee 5151 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
  52. 52. © 2013, Internet Marketing, Professor Janghyuk Lee 5252 Company Introduction (3)  Finance source: Sephora Annual Report 2011, p.6, http://issuu.com/ivanawong/docs/ivanaw_sephora
  53. 53. © 2013, Internet Marketing, Professor Janghyuk Lee 5353 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
  54. 54. © 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
  55. 55. © 2013, Internet Marketing, Professor Janghyuk Lee 5555 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.
  56. 56. © 2013, Internet Marketing, Professor Janghyuk Lee 5656 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
  57. 57. © 2013, Internet Marketing, Professor Janghyuk Lee 5757 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
  58. 58. © 2013, Internet Marketing, Professor Janghyuk Lee 5858 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
  59. 59. © 2013, Internet Marketing, Professor Janghyuk Lee 5959 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
  60. 60. © 2013, Internet Marketing, Professor Janghyuk Lee 6060 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.
  61. 61. © 2013, Internet Marketing, Professor Janghyuk Lee 6161 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
  62. 62. © 2013, Internet Marketing, Professor Janghyuk Lee 6262 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
  63. 63. © 2013, Internet Marketing, Professor Janghyuk Lee 6363 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)
  64. 64. © 2013, Internet Marketing, Professor Janghyuk Lee 6464 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)
  65. 65. © 2013, Internet Marketing, Professor Janghyuk Lee 6565 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)
  66. 66. © 2013, Internet Marketing, Professor Janghyuk Lee 6666 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
  67. 67. © 2013, Internet Marketing, Professor Janghyuk Lee 6767 Conclusion (2) Sourse: Sephora Direct: Investing Social Media, Video and Mobile,” , Harvard Business School Case, June 25 2012, p. 19
  68. 68. © 2013, Internet Marketing, Professor Janghyuk Lee 6868 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
  69. 69. © 2013, Internet Marketing, Professor Janghyuk Lee 6969 Conclusion (4) Sephora USA‟s Sales Growth 2011 Sourse: http://www.stores.org/2012/Hot-100-Retailers?order=field_percent_change_value&sort=asc
  70. 70. © 2013, Internet Marketing, Professor Janghyuk Lee 7070 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.
  71. 71. © 2013, Internet Marketing, Professor Janghyuk Lee 7171 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
  72. 72. © 2013, Internet Marketing, Professor Janghyuk Lee 7272 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/
  73. 73. © 2013, Internet Marketing, Professor Janghyuk Lee 7373 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
  74. 74. © 2013, Internet Marketing, Professor Janghyuk Lee 7474 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
  75. 75. YG Entertainment Hyeong-Jun KIM 2007120320
  76. 76. © 2013, Internet Marketing, Professor Janghyuk Lee 7676 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.
  77. 77. © 2013, Internet Marketing, Professor Janghyuk Lee 7777 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.
  78. 78. © 2013, Internet Marketing, Professor Janghyuk Lee 7878 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
  79. 79. © 2013, Internet Marketing, Professor Janghyuk Lee 7979 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.
  80. 80. © 2013, Internet Marketing, Professor Janghyuk Lee 8080 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
  81. 81. © 2013, Internet Marketing, Professor Janghyuk Lee 8181 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
  82. 82. © 2013, Internet Marketing, Professor Janghyuk Lee 8282 Company Introduction  Market analysis 128.1 142.8 142.3 30.9 39.2 43.733.4 36.7 41.111.4 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.
  83. 83. © 2013, Internet Marketing, Professor Janghyuk Lee 8383 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
  84. 84. © 2013, Internet Marketing, Professor Janghyuk Lee 8484 Internet Marketing Activities  Communication  Web/mobile site, blog, Facebook, YouTube, Twitter, App, etc. Using Youtube, Facebook, Twitter as contents releasing method.
  85. 85. © 2013, Internet Marketing, Professor Janghyuk Lee 8585 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
  86. 86. © 2013, Internet Marketing, Professor Janghyuk Lee 8686 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.
  87. 87. © 2013, Internet Marketing, Professor Janghyuk Lee 8787 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
  88. 88. © 2013, Internet Marketing, Professor Janghyuk Lee 8888 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
  89. 89. © 2013, Internet Marketing, Professor Janghyuk Lee 8989 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.
  90. 90. © 2013, Internet Marketing, Professor Janghyuk Lee 9090 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.
  91. 91. © 2013, Internet Marketing, Professor Janghyuk Lee 91 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
  92. 92. © 2013, Internet Marketing, Professor Janghyuk Lee 92 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.
  93. 93. © 2013, Internet Marketing, Professor Janghyuk Lee 93 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.
  94. 94. © 2013, Internet Marketing, Professor Janghyuk Lee 94 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.
  95. 95. © 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.
  96. 96. © 2013, Internet Marketing, Professor Janghyuk Lee 9696 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
  97. 97. © 2013, Internet Marketing, Professor Janghyuk Lee 9797 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.
  98. 98. © 2013, Internet Marketing, Professor Janghyuk Lee 9898 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”.
  99. 99. © 2013, Internet Marketing, Professor Janghyuk Lee 9999 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 기 대되는 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
  100. 100. Company Report 2008120123 Dukeun Yoon Internet Marketing
  101. 101. 2008120123 Dukeun Yoon NOROO Paint  Application‘Painted Space’
  102. 102. © 2013, Internet Marketing, Professor Janghyuk Lee 102102 Contents 1 Company Introduction 2 Internet marketing Activities 3 Application „Painted Space‟ 4 Effects & Results
  103. 103. © 2013, Internet Marketing, Professor Janghyuk Lee 103103 Company Introduction „Bright Color, Smart World‟ ● History 1945 ~ 1960 1960 ~ 1980 1980 ~ 2000 2000 ~ 2010 2010 ~ Now Launchin g of Daihan Ink, The National Company Business Diversific ation Expansio n of Productio n System Advancin g as Global Company Commen cement Sustainab le green growth, Social responsib ility• 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.’
  104. 104. © 2013, Internet Marketing, Professor Janghyuk Lee 104104 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’
  105. 105. © 2013, Internet Marketing, Professor Janghyuk Lee 105105 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?
  106. 106. © 2013, Internet Marketing, Professor Janghyuk Lee 106106 Contents 1 Company Introduction 2 Internet marketing Activities 3 Application „Painted Space‟ 4 Effects & Results
  107. 107. © 2013, Internet Marketing, Professor Janghyuk Lee 107107 Before the Internet √ 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 industryLimit as a manufacturing comp ‘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
  108. 108. © 2013, Internet Marketing, Professor Janghyuk Lee 108108 Internet made change √ 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 marketIncreasing needs of eco-friendl ‘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
  109. 109. © 2013, Internet Marketing, Professor Janghyuk Lee 109109 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
  110. 110. © 2013, Internet Marketing, Professor Janghyuk Lee 110110 New Sales Channel Designated WebsiteOpen 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
  111. 111. © 2013, Internet Marketing, Professor Janghyuk Lee 111111 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’
  112. 112. © 2013, Internet Marketing, Professor Janghyuk Lee 112112 Effect of the Internet marketing activities ‘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
  113. 113. © 2013, Internet Marketing, Professor Janghyuk Lee 113113 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
  114. 114. © 2013, Internet Marketing, Professor Janghyuk Lee 114114 Internet Marketing Activities 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 Opportunity to get into B2C market
  115. 115. © 2013, Internet Marketing, Professor Janghyuk Lee 115115 To Create Sustainable Profits in B2C market  √ How to make these relationships profitable?  √ How to create customer delights?  √ How to make these sustainable? ‘Bright Color, Smart World’ Then… Providing the unique Application ‘Painted Space’
  116. 116. © 2013, Internet Marketing, Professor Janghyuk Lee 116116 Contents 1 Company Introduction 2 Internet marketing Activities 3 Application „Painted Space‟ 4 Effects & Results
  117. 117. © 2013, Internet Marketing, Professor Janghyuk Lee 117117 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
  118. 118. © 2013, Internet Marketing, Professor Janghyuk Lee 118118 Noroo „Painted Space‟ ‘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
  119. 119. © 2013, Internet Marketing, Professor Janghyuk Lee 119119 Noroo „Painted Space‟ ‘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
  120. 120. © 2013, Internet Marketing, Professor Janghyuk Lee 120120 Noroo „Painted Space‟ ‘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
  121. 121. © 2013, Internet Marketing, Professor Janghyuk Lee 121121 Contents 1 Company Introduction 2 Internet marketing Activities 3 Application „Painted Space‟ 4 Effects & Results
  122. 122. © 2013, Internet Marketing, Professor Janghyuk Lee 122122 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 Taking 2nd place in B2C market
  123. 123. © 2013, Internet Marketing, Professor Janghyuk Lee 123123 Effects & Results ‘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
  124. 124. © 2013, Internet Marketing, Professor Janghyuk Lee 124124 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
  125. 125. Company Report 2006120173 Moongu Cho Group 7
  126. 126. Table of contents 1.Company introduction – Volkswagen 2.Internet marketing activities 3.New beetle campaign 4.Summary 5.Appendix
  127. 127. 1.Company introduction – Volkswagen 2.Internet marketing activities 3.New beetle campaign 4.Summary 5.Appendix
  128. 128. © 2013, Internet Marketing, Professor Janghyuk Lee 128128 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
  129. 129. © 2013, Internet Marketing, Professor Janghyuk Lee 129129 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
  130. 130. 1.Company introduction – Volkswagen 2.Internet marketing activities 3.New beetle campaign 4.Summary 5.Appendix
  131. 131. © 2013, Internet Marketing, Professor Janghyuk Lee 131131 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
  132. 132. © 2013, Internet Marketing, Professor Janghyuk Lee 132132 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
  133. 133. 1.Company introduction – Volkswagen 2.Internet marketing activities 3.New beetle campaign 4.Summary 5.Appendix
  134. 134. © 2013, Internet Marketing, Professor Janghyuk Lee 134134 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)
  135. 135. © 2013, Internet Marketing, Professor Janghyuk Lee 135135 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
  136. 136. © 2013, Internet Marketing, Professor Janghyuk Lee 136136 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..
  137. 137. © 2013, Internet Marketing, Professor Janghyuk Lee 137137 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?
  138. 138. © 2013, Internet Marketing, Professor Janghyuk Lee 138138 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 ↑)
  139. 139. 1.Company introduction – Volkswagen 2.Internet marketing activities 3.New beetle campaign 4.Summary 5.Appendix
  140. 140. © 2013, Internet Marketing, Professor Janghyuk Lee 140140 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..
  141. 141. © 2013, Internet Marketing, Professor Janghyuk Lee 141141 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
  142. 142. © 2013, Internet Marketing, Professor Janghyuk Lee 142142 Thank you End of document
  143. 143. 1.Company introduction – Volkswagen 2.Internet marketing activities 3.New beetle campaign 4.Summary 5.Appendix
  144. 144. © 2013, Internet Marketing, Professor Janghyuk Lee 144144 Appendix Brief introduction of New beetle campaign in Time Square Video clip provided by marketing company, NRG marketing
  145. 145. © 2013, Internet Marketing, Professor Janghyuk Lee 145145 Appendix Other examples of multi channel marketing 1. Mather Columbia – Pictionary photo booth (Video clip)
  146. 146. © 2013, Internet Marketing, Professor Janghyuk Lee 146146 Appendix Other examples of multi channel marketing 2. Diesel Cam (Video clip)
  147. 147. © 2013, Internet Marketing, Professor Janghyuk Lee 147147 Appendix Other examples of multi channel marketing 3. Domino Pizza – Social Pizza (Video clip)
  148. 148. © 2013, Internet Marketing, Professor Janghyuk Lee 148148 Appendix Other examples of multi channel marketing 4. Hyundai Motors – Real Like (Video clip)
  149. 149. © 2013, Internet Marketing, Professor Janghyuk Lee 149149 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)
  150. 150. Company Report: Macy‟s 2008120338 Ga Eun Chae Internet Marketing Korea University Business School
  151. 151. Company Introduction
  152. 152. © 2013, Internet Marketing, Professor Janghyuk Lee 152152 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
  153. 153. © 2013, Internet Marketing, Professor Janghyuk Lee 153153 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.
  154. 154. © 2013, Internet Marketing, Professor Janghyuk Lee 154154 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.
  155. 155. © 2013, Internet Marketing, Professor Janghyuk Lee 155155 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.
  156. 156. © 2013, Internet Marketing, Professor Janghyuk Lee 156156 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.
  157. 157. © 2013, Internet Marketing, Professor Janghyuk Lee 157157 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.
  158. 158. © 2013, Internet Marketing, Professor Janghyuk Lee 158158 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.
  159. 159. © 2013, Internet Marketing, Professor Janghyuk Lee 159159 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)
  160. 160. © 2013, Internet Marketing, Professor Janghyuk Lee 160160 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)
  161. 161. © 2013, Internet Marketing, Professor Janghyuk Lee 161161 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.
  162. 162. Internet Marketing Activities
  163. 163. © 2013, Internet Marketing, Professor Janghyuk Lee 163163 Communication  Website  Customer service page  Directs customers to other channels of communication
  164. 164. © 2013, Internet Marketing, Professor Janghyuk Lee 164164 Communication  Mobile page  The same as the Internet webpage
  165. 165. © 2013, Internet Marketing, Professor Janghyuk Lee 165165 Communication  Most of communication is done through SNSs.  Macy‟s keeps in touch with the customers through:  Facebook  Twitter  Pinterest  M-blog  Youtube
  166. 166. © 2013, Internet Marketing, Professor Janghyuk Lee 166166 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.
  167. 167. © 2013, Internet Marketing, Professor Janghyuk Lee 167167 Communication  Building relationship with customers.
  168. 168. © 2013, Internet Marketing, Professor Janghyuk Lee 168168 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.
  169. 169. © 2013, Internet Marketing, Professor Janghyuk Lee 169169 Communication  Addressing customers‟ difficulties and questions.  Collecting information on a customer‟s lifestyle, shopping habit and preferences.
  170. 170. © 2013, Internet Marketing, Professor Janghyuk Lee 170170 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.
  171. 171. © 2013, Internet Marketing, Professor Janghyuk Lee 171171 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.”
  172. 172. © 2013, Internet Marketing, Professor Janghyuk Lee 172172 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.
  173. 173. © 2013, Internet Marketing, Professor Janghyuk Lee 173173 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~)
  174. 174. © 2013, Internet Marketing, Professor Janghyuk Lee 174174 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
  175. 175. © 2013, Internet Marketing, Professor Janghyuk Lee 175175 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
  176. 176. © 2013, Internet Marketing, Professor Janghyuk Lee 176176 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.
  177. 177. © 2013, Internet Marketing, Professor Janghyuk Lee 177177 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
  178. 178. © 2013, Internet Marketing, Professor Janghyuk Lee 178178 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
  179. 179. © 2013, Internet Marketing, Professor Janghyuk Lee 179179 Recent Campaigns  What‟s in Store?  Make customers aware of the value of “one star that brings all stars together.”
  180. 180. What‟s in Store?
  181. 181. © 2013, Internet Marketing, Professor Janghyuk Lee 181 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
  182. 182. © 2013, Internet Marketing, Professor Janghyuk Lee 182182 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
  183. 183. © 2013, Internet Marketing, Professor Janghyuk Lee 183183 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?"
  184. 184. © 2013, Internet Marketing, Professor Janghyuk Lee 184184 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
  185. 185. © 2013, Internet Marketing, Professor Janghyuk Lee 185185 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
  186. 186. Company Report Coralie Internet Marketing Nationality : French School : EM Strasbourg Business School - France Major : Marketing E.mail : coralie.honajzer@em-strasbourg.eu
  187. 187. © 2013, Internet Marketing, Professor Janghyuk Lee 187187 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
  188. 188. © 2013, Internet Marketing, Professor Janghyuk Lee 188 An eye on the market : France French Hairdressing Market The hairdressing sector in France is very comp etitive. Hairdresser franchises represent the s mallest share of the market with only 10%. Eac h salons must invest in marketing strategy to di fferentiate from the concurrence. Hairdressing market is estimated at 5,35 billio n € per year. 1 million peoples go to a hairdr esser by day in France. Although independent hairdressers dominate t he market by the number, consumers need to be reassured and he or she prefers to go to a s alon which he or she recognizes the brand. It i s an undeniable advantage for franchises. For 10 years now, independents are under pressur e to become franchisee. The new issue of major franchises such as De ssange, Franck Provost and Jean Louis David is to control the market. Their marketing strate gy is essential to retain consumers who are jus t waiting to be convinced.
  189. 189. © 2013, Internet Marketing, Professor Janghyuk Lee 189 An eye on the market : Rest of the World Global Hairdressing Market USA The global hairdressing market is estim ated at 50 billion to 30 billion dollars are in the USA. It is clear the USA is the place to be for t he French hairdressing brand. According a recent report, it is exactly th e Dessange International strategy. The group led by Benjamin Dessange, the fo under's son, has acquired the investme nt fund Pouschine Cook Capital Manage ment hairdressers Fantastic Sams, for u ndisclosed amount. Presented by its ne w owner as the first sign of hairdressers overseas, Fantastic Sams has over 120 0 salons operated under franchise throu ghout the United States, Alaska, Hawaii. They realized a turnover of € 360 million last year.
  190. 190. © 2013, Internet Marketing, Professor Janghyuk Lee 190 Company Introduction What is Dessange? Dessange is an hairdresser french brand, one of the most luxurious. It is addressed t o an high incomes population, or people w ho 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, i n Paris. He offered to women revolutionary haircutting techniques and reinvented the i mage of the modern woman, in the post-w ar atmosphere. The professionalism and the pioneering sp irit explained the fulgurating success of De ssange House. Jacques Dessange opened its first salon a broad in 1962 and launched his affiliate fra nchise 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 collec tions and follow the Dessange trend. It has a really important part in the fashio n world. The brand has kept its innovative spirit and has imposed its own style with som e essential techniques like the famous “ coiffé-décoiffé” Dessange or the blond Dessange, used now by the concurrenc e. The brand takes care of the biggest sta rs and it is the official partner, among ot hers, of Cannes Film Festival for more t han 25 years, now. It could be interesting to see how a fam ous and innovative brand like Dessang e, consider as trendsetter by its compet itor, uses internet to manage its marketi ng strategy. Especially for a sector whic h is not really represented yet on Intern et, that of the hair. Coiffé-Décoiffé DESSANGE
  191. 191. © 2013, Internet Marketing, Professor Janghyuk Lee 191 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 t o the brand, sober, class and elegant with black and white colors. I ts 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 th e means to customers to replicate the Dessange‟s experience k nown 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.
  192. 192. © 2013, Internet Marketing, Professor Janghyuk Lee 192 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 Net K… 4000 5000 6000 Turnover Net K € 0 10000 Turnover Net K… 6059 K€ 5043 K€ 7430 K€ 5563 K€5447 K€ 4909 K€
  193. 193. © 2013, Internet Marketing, Professor Janghyuk Lee 193 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, Dessa nge‟s quality and technique that everybody can fi nd in a salon. It is not uncommon either to see a dvertising 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 har monize its communication around the world and become as famous as in France abroad is to hav e a strong internet marketing strategy. After some basic researches on the web, we can do an initial inventory is as follows : Dessange ha s 4 different websites, a presence on social netw orks and video websites and an application for iP hone and iPad.

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