Business consulting lufthansa - final presentation

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A project by students from Singapore Management University for Lufthansa under the course Business Consulting.

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Business consulting lufthansa - final presentation

  1. 1. - 1 -11.11.2010 Lufthansa: A Social Media Strategy in South-East Asia 11.11.2010 Alexander Neff David Bartling Christian Küpper Jason Liew Constantin Reutersberg Sebastian Schmidt
  2. 2. - 2 -11.11.2010 Project Overview GLOBE Landscape Platform Target Group Best Practice Conclusion Project Supervisor  Singapore Management University  MGMT232 – Business Consulting  Prof. Dr. Dr. h.c. Klaus Spremann  Roman Frick Project Client  Lufthansa Airlines (South-East Asia)  Nicole Mies General Manager Marketing & Customer Loyalty Asia Pacific  Jochen Österreicher Manager HR Development Asia Pacific Project Timeline  6 September – 11 November 2010  Preliminary Results: 30 September 2010  Final Results: 11 November 2010
  3. 3. - 3 -11.11.2010 Project Team  David Bartling  Exchange Student, University of Maastricht  d-.bartling@student.maastrichtuniversity.nl  Christian Küpper  Exchange Student, University of St. Gallen  christian.kuepper@student.unisg.ch  Jason Liew  Student, Singapore Management University  jasonl.2006@business.smu.edu.sg  Alexander Neff  Exchange Student, University of Mannheim  aneff.mail@uni-mannheim.de  Constantin Reutersberg  Exchange Student, University of St. Gallen  constantin.reutersberg@student.unisg.ch  Sebastian Schmidt  Exchange Student, University of St. Gallen  sebastian.schmidt@student.unisg.ch Team members GLOBE Landscape Platform Target Group Best Practice Conclusion
  4. 4. - 4 -11.11.2010 Executive Summary The project client Lufthansa Airlines has implemented a global social media strategy. In order to access the possibilities of targeting local customers more efficiently, this project investigated for the regional subsidiary, Lufthansa Airlines South East Asia, if a different social media strategy should be implemented with a more regional focus. According to the findings, a different cultural and online user behavior setting leads to the suggestion that a regional social media strategy should be adopted. These results are based on a detailed landscape analysis as well as on a cultural study (GLOBE study). Findings suggest a significant difference in the social media behavior of South-East Asians; this especially holds when is comes to sharing of personal insights, openness towards online advertisement, and a stronger focus on entertainment. GLOBE Landscape Platform Target Group Best Practice Conclusion A carefully defined target group and platform selection process allow to introduce an overall strategic concept to the regional subsidiary, Lufthansa Airlines (SEA). The most suitable target group, which should be addressed by Lufthansa, can be found in the age group of 20 to 35 years or may be categorized as students and young professionals. Regarding the platform selection, the most suitable approach is a complementary platform strategy using Facebook as mash-up platform integrating Twitter and YouTube. The final best practices analysis gives more insight about how other Western companies have diversified their global social media strategies in South- East Asia and offers valuable insights for Lufthansa for their corporate final Social Media strategy.
  5. 5. - 5 -11.11.2010 Key Findings A regional mash-up strategy GLOBE Landscape Platform Target Group Best Practice Conclusion GLOBE / Social Media Landscape  Regional Strategy is to be preferred over Global Strategy  Different Social Media Behavior  Tendency to share personal insights  Entertainment focused Platform selection  Take advantage of strengths of different platforms  Complementary platform strategy Target Group  Age: 20 to 35, young and professionals Best Practice  Language differences  Rest of hospitality industry slow at targeting Asia
  6. 6. - 6 -11.11.2010 How should Lufthansa implement a Social Media concept for South-East Asia that is relevant for the local consumers? Social Media for Lufthansa in SEA GLOBE Landscape Platform Target Group Best Practice Conclusion
  7. 7. - 7 -11.11.2010 Lufthansa Social Media Objective Best Practice Learning GLOBE / SM Landscape Global versus Regional versus Local Social Media Strategy Differences to DE Differences in SEA Benchmarking Target Group Who Grouping Relevancy Platforms Reach Interaction Potential Positioning Cultural Factors Research Tree GLOBE Landscape Platform Target Group Best Practice Conclusion
  8. 8. - 8 -11.11.2010 Target Group Platforms Best Practice GLOBE / SM Landscape  Are cultural difference embedded in social media behavior?  Can different online user behavior be categorized?  What are the relevant people we want to talk to?  How can they be identified and grouped effectively?  How do we reach them?  Which channels are most useful to stay in touch with them?  Are there any best practices which can be used? Subquestions Project Tree GLOBE Landscape Platform Target Group Best Practice Conclusion
  9. 9. - 9 -11.11.2010 Agenda GLOBE Landscape Platform Target Group Best Practice Conclusion (1) Extended GLOBE Framework (2) Social Media Landscape Analysis (3) Platform Selection (4) Target Group Selection (5) Best Practice Analysis (6) Conclusion
  10. 10. - 10 -11.11.2010 Extended GLOBE Framework
  11. 11. - 11 -11.11.2010 Analysis  Recap  New definition of relevant dimensions  Identify cultural differences in social media behavior  Derive Implications/Trends for a Social Media Strategy Strategic approach  GLOBE  Extension by Focus Group Extended GLOBE Framework Culture makes a difference GLOBE Landscape Platform Target Group Best Practice Conclusion
  12. 12. - 12 -11.11.2010  Compare South-East Asia & Germany according to Cultural Dimensions  Differences in Social Media Behavior  Global Approach is not sufficient Future Orientation Assertiveness In-Group Collectivism Institutional Collectivism Human Orientation Uncertainty avoidance Germany Southeast Asia (in. SG) Major Cultural Differences (South-East Asia vs. Germany):  Human Orientation  In-Group Collectivism  Institutional Collectivism There are cultural differences GLOBE Landscape Platform Target Group Best Practice Conclusion
  13. 13. - 13 -11.11.2010 Step 1 What do those three dimensions mean in relation to social media? Human Orientation: The degree to which individuals value and encourage openness within social media as well as a personal interaction between users. In-Group Collectivism: The degree to which users express experiences, personal thoughts and details and are willing to share them in a online community. Institutional Collectivism: The degree to which active sharing and collective distribution of resources is rewarded and appreciated by users. Step 2  Introducing a focus group that asks about those three dimensions  Identify cultural differences in social media behavior  AIM: Derive Implications for a Social Media Strategy Finding the link to social media GLOBE Landscape Platform Target Group Best Practice Conclusion
  14. 14. - 14 -11.11.2010 “To what extent do you agree with the following statements?” (7 – Strongly Agree; 1 – Strongly disagree) Questions: 1) I am part of a brand community to get more information about a brand. 2) I have shared or at least considered sharing my personal travel experiences with a broader community (not just friends). 3) I consider reacting on and discussing company related information that was posted by the company itself or by other users. Being a member of the collective GLOBE Landscape Platform Target Group Best Practice Conclusion
  15. 15. - 15 -11.11.2010 Strongly Disagree Strongly Agree 1 2 3 4 5 6 7 I am part of a brand community to get more information about a brand. I have shared or at least considered sharing my personal travel experiences with a broader community (not just friends). I consider reacting on and discussing company related information that was posted by the company itself or by other users. Germany South-East-Asia In-Group Collectivism makes a difference GLOBE Landscape Platform Target Group Best Practice Conclusion
  16. 16. - 16 -11.11.2010 ...more in-group collectivist? Finding Implication Lufthansa 1. Entertainment-focused  Stronger focus on entertainment  No need to give extensive information 2. Share personal insights with broader community  Provide opportunities for sharing such insights E.g. travel forum, insider tips etc 3. Discuss & comment on company provided information  Provide platform that allows such exchange In contrast, Germans…  More content-focused  Need to derive valuable information, not solely entertainment  Weaker tendency to share personal insights, stories with a broader (unknown) community Further details: Appendix A Asians are more Entertainment focused GLOBE Landscape Platform Target Group Best Practice Conclusion
  17. 17. - 17 -11.11.2010  Significant difference in social media behavior  Cultural differences exist Global approach is not suited  Trends/Implications for Social Media Strategy Lufthansa in South-EastAsia Conclusion extended GLOBE framework Global Approach not sufficient GLOBE Landscape Platform Target Group Best Practice Conclusion
  18. 18. - 18 -11.11.2010 Social Media Landscape Analysis
  19. 19. - 19 -11.11.2010 Digital Landscape Analysis Internet Market  Internet Penetration  Internet Population  Growth Online Behavior  Digital Lifestyle  Time Spent Online  Activities on the Internet  Brand Interaction  Average Number of Friends Digital Landscape Analysis GLOBE Landscape Platform Target Group Best Practice Conclusion
  20. 20. - 20 -11.11.2010  23 percent of today’s internet users in Emerging Asia started to use the internet since 2008  Singapore’s internet market is mature while Malaysia moves towards developed internet market like Germany and Singapore  Major growth potential lies in Philippines, Vietnam, Thailand and Indonesia  Total Population: 529.06 million  Total Internet Population: 122.20 million Appendix B1 Internet Penetration (in %) Germany Singapore Malaysia Philippines Vietnam Thailand Indonesia 79.1 77.8 64.6 29.7 27.1 26.3 12.3 SEA offers strong growth potential Source :TNS DiGITAL LIFE GLOBE Landscape Platform Target Group Best Practice Conclusion
  21. 21. - 21 -11.11.2010 Aspirer Users have different digital lifestyles Brand Interaction High Low Functional Networker Influencer Communicator Knowledge Seeker Communicator  Expressing himself and sharing personnel information via Social Media  Early follower  Touchpoints • User Review on bloggs, • Social Network comments GLOBE Landscape Platform Target Group Best Practice Conclusion
  22. 22. - 22 -11.11.2010 Aspirer Brand Interaction High Low Functional Networker Influencer Communicator Knowledge Seeker Influencer  Internet as integral part of his life – It allows him to stand out and be different  Innovator  Engaged in almost all digital activities  Express himself online not only to friends but to everyone GLOBE Landscape Platform Target Group Best Practice Conclusion Users have different digital lifestyles
  23. 23. - 23 -11.11.2010 Aspirer Brand Interaction High Low Functional Networker Influencer Communicator Knowledge Seeker Knowledge Seeker  Main use of the internet gaining knowledge, educational purpose  SN to stay in contact with like minded people  Touchpoints: • Brand websites • bloggs • SN comments • review sites  only consuming content GLOBE Landscape Platform Target Group Best Practice Conclusion Users have different digital lifestyles
  24. 24. - 24 -11.11.2010 Aspirer Brand Interaction High Low Functional Networker Influencer Communicator Knowledge Seeker Networker  Main use of the internet: establish and maintain relationships  does not voice opinion online  Touchpoints • brand sites • online shops Classical Web-Media GLOBE Landscape Platform Target Group Best Practice Conclusion Users have different digital lifestyles
  25. 25. - 25 -11.11.2010 Aspirer Brand Interaction High Low Functional Networker Influencer Communicator Knowledge Seeker Functional  Utility of internet use  Internet usage is less about establishing relationships with other people  concerned about data protection  Touchpoints: • Price Comparison Websites • Brand Websites GLOBE Landscape Platform Target Group Best Practice Conclusion Users have different digital lifestyles
  26. 26. - 26 -11.11.2010 Aspirer Brand Interaction High Low Functional Networker Influencer Communicator Knowledge Seeker Aspirer  Relatively new to the internet  Internet is less important for his life at the moment  Seeking to increase his activities on the Internet  Rely on offline touchpoints: • offline Media • Retail Shops • offline WoM GLOBE Landscape Platform Target Group Best Practice Conclusion Users have different digital lifestyles
  27. 27. - 27 -11.11.2010 In High Potentials:Influencer & Communicator Brand Interaction HighLow Co Activeness on Social Media High Low Positioning-Matrix Fu KS NWAS In = Influencer Co = Communicator KS = Knowledge Seeker As = Aspirer NW = Networker Fu = Functional GLOBE Landscape Platform Target Group Best Practice Conclusion
  28. 28. - 28 -11.11.2010 Influencers & Communicators prevalent in SEA 0 10 20 30 40 50 60 70 80 90 100 SG ID MY PH TH VN DE Digital lifestyles in South-East Asia Influencers Communicators Aspirers Knowledge Seekers Networkers Functionals Source :TNS DiGITAL LIFE GLOBE Landscape Platform Target Group Best Practice Conclusion
  29. 29. - 29 -11.11.2010 Indonesians & Philipinnes are less online  No significant difference between Germany and Singapore, Malaysia, Thailand, Vietnam  Indonesian and Philippines spend considerably less time online than users from the other countries  Singapore, Malaysia, Thailand, Vietnam spend twice as much time online per week than Indonesia and Philippines Source :TNS DiGITAL LIFE 0 5 10 15 20 25 Singapore Malaysia Thailand Vietnam Philippines Indonesia Germany hours Time spent online (per week) GLOBE Landscape Platform Target Group Best Practice Conclusion
  30. 30. - 30 -11.11.2010  Emailing remains the most important activity to internet users  Social Networking ,Gaming and Multimedia are following in Germany as well as South East Asia  Social Networking, Gaming and Multimedia activities are of much higher importance in South East Asia than in Germany Appendix B Web 2.0 is of major importance in SEA 0 10 20 30 40 50 60 70 80 SG ID MY TH VN PH DE PercentageofInternetUser Most important online activity SNS Email Gaming Multimedia Personal Interest Source :TNS DiGITAL LIFE GLOBE Landscape Platform Target Group Best Practice Conclusion
  31. 31. - 31 -11.11.2010 1. Openness towards Brand Interaction Appendix B  In Emerging Asia (SEA excl. Singapore) Social Networks are a main source of information on brands  Openness towards brand friending on SN is considerably higher in South East Asia compared to western or global internet user (SEA:48%, Global 40%) 2. Average number of friends Appendix B  Average number of friends on SN is considerably higher in South East Asia compared to Germany ( SEA: 175 ; DE: 75)  High value of a follower with a large friend base for a company’s social media activities  increases the reach of a company’s social media activities Higher Brand Interaction in SEA GLOBE Landscape Platform Target Group Best Practice Conclusion
  32. 32. - 32 -11.11.2010 SEAs have a high potential for brands Key Findings: South East Asia Singapore, Malaysia, Thailand, Vietnam  Predominant lifestyle: Influencer and Communicator  High engagement in Social Media activities  open for brand interaction, actively looking for brands on Web 2.0 Indonesia, Philippines  Predominant lifestyles: Aspirers  Rely more on offline media as touchpoint and are less open towards brand interaction  Are eager to become more active and use the internet more frequently GLOBE Landscape Platform Target Group Best Practice Conclusion
  33. 33. - 33 -11.11.2010 Germans are more rational on the Internet Key Findings: Germany  Predominant lifestyle: Functionals, Networkers, Knowledge Seekers  Reflects a more conservative or rational attitude towards the internet  Concerned about data protection and therefore less interactive (sharing, expressing personnel information  Touchpoints: Offline as well as classical Online Media (brand page, online shops) GLOBE Landscape Platform Target Group Best Practice Conclusion
  34. 34. - 34 -11.11.2010 Need for a regional Social Media strategy Regional Strategy is to be preferred over Global Strategy  South East Asian internet user search actively in Social Media for brands and products  Social Media as touchpoints  High potential for brand interaction & brand friending  Tendency to share personal insights  Two way communication is of major importance  Provide platform that allows active exchange between company and user  Focus on individual needs  Entertainment focus - focus on visual representation of information  Different development patterns in Indonesia and Philippines ( Aspirers ) Extended Globe Social Media Landscape GLOBE Landscape Platform Target Group Best Practice Conclusion
  35. 35. - 35 -11.11.2010 Interim conclusion I Most importantly, a regional strategy is to be preferred over a global strategy. This has been shown by the analysis of cultural dimensions and the online landscape analysis. If one compares Germans and South-East Asians (SEAs), both groups show differences in their social media behavior. The major differences may be summarized as the stronger tendency of SEAs to share personal insights and their focus on visual representation, instead of a stronger information-based approach of Germans. GLOBE Landscape Platform Target Group Best Practice Conclusion SEAs seem also to be highly engaged in two way communication; thus, Lufthansa should provide a platform that allows an active exchange between company and users. Within SEA, the landscape analysis revealed differences within the user behavior and development patterns between Indonesia and Philippines and on the other side Singapore, Malaysia, Thailand, and Vietnam as the users within those countries are less developed and are still in an earlier stage of user behavior.
  36. 36. - 36 -11.11.2010 Platform Selection
  37. 37. - 37 -11.11.2010 Analysis & Selection  Social media landscape & focus  Scoring model & selection criteria Strategic approach  Complementary strategy  AIDA framing Platform Selection Platform Selection GLOBE Landscape Platform Target Group Best Practice Conclusion
  38. 38. - 38 -11.11.2010 Social Networks Micro- media Video Social Media Landscape Reach Criteria Scope: South-East Asia Focus on predominant platforms GLOBE Landscape Platform Target Group Best Practice Conclusion
  39. 39. - 39 -11.11.2010 1) People  Reach  Growth 2) Technology  Mobile accessibility  Integration 3) Community  Interaction  Time online  # of applications  Content focus Scoring ModelCriteria Facebook as the mash-up platform GLOBE Landscape Platform Target Group Best Practice Conclusion Platforms have different strengths:  Facebook: Reach Interaction Applications  Twitter: Information Mobile accessibility  Youtube: Media sharing Growth/Reach
  40. 40. - 40 -11.11.2010 Use the different strengths of the channels •Social Networks: Facebook •CRM •(Micro-)blogs: Twitter •Information •Media Sharing: YouTube •Entertainment Complementary Strategy Youtube Twitter Position Facebook as mash-up platform integrating Twitter and YouTube CRM Information Entertainment Use the different strengths of the channels GLOBE Landscape Platform Target Group Best Practice Conclusion
  41. 41. - 41 -11.11.2010 Interact Brand Recall Top of Mind Brand Recognition ttentionA nterestI esireD ctionA Create... Engagement with costumer Get in touch Involve Key Aspects Brand Community Relationship Incentive Information Entertainment Information InteractInteractCRM Each platform have their specific task GLOBE Landscape Platform Target Group Best Practice Conclusion
  42. 42. - 42 -11.11.2010 Reach  Facebook, Twitter, YouTube & Friendster Take advantage of strengths of different platforms  Complementary platform strategy YouTube: Entertainment Twitter: Information Facebook: CRM Conclusion Platform Selection Use complementary platform strategy GLOBE Landscape Platform Target Group Best Practice Conclusion
  43. 43. - 43 -11.11.2010 Target Group Selection
  44. 44. - 44 -11.11.2010 Analysis  Criteria  Importance of Criteria  Give Grades Strategic approach  Scoring Model Target Group Young and Successful GLOBE Landscape Platform Target Group Best Practice Conclusion
  45. 45. - 45 -11.11.2010 1. Potential today  Economic power  SM-Reach 2. Potential in the future  Economic development  SM development 3. Influenceability using SM  User behaviour  Time online  # of friends  Importance of SM 4. Costs to influence/talk  English  Cultural differences Scoring ModelCriteria Target Group: 1) Age Group: 20-35 2) High Income / Educated (Students/Young Professionals) Young and Successful GLOBE Landscape Platform Target Group Best Practice Conclusion
  46. 46. - 46 -11.11.2010 Scoring ModelCriteria 1.) Potential Today a) Economic power  Consumption + Income b) SM-Reach  FB-Reach  Only the richest part of the population  1.) 18-24 2.) 25-34 3.) 35-44 On SM vs. Economic Power GLOBE Landscape Platform Target Group Best Practice Conclusion
  47. 47. - 47 -11.11.2010 Scoring ModelCriteria 2.) Potential Future a) Economic development  Demographic development (Growth of TG)  Education as narrow for partizipation in growth b) SM-Development  Demographic development (Growth of TG) FB-Reach development 1) 0-44 2) 44-100 On SM vs. Economic Power GLOBE Landscape Platform Target Group Best Practice Conclusion
  48. 48. - 48 -11.11.2010 Scoring ModelCriteria 3.) Influenceability using SM a) User Behavior b) Time online c) # of friends d) Importance of SM 1.) 0-18 2.) 18-24 3.) 25-35 Youth is influenceable GLOBE Landscape Platform Target Group Best Practice Conclusion
  49. 49. - 49 -11.11.2010 Scoring ModelCriteria 4.) Cost to Influence/ talk to them a) English (Education as a proximation) b) Cultural Differences 1.) 18-24 2.) 25-35 3.) 0-18 Youth is more homogenous GLOBE Landscape Platform Target Group Best Practice Conclusion
  50. 50. - 50 -11.11.2010 Successful / richest people in the countries 20 – 35 Are on SM and have and will have the economic power Are easy to influence Are the most homogenous group Students and young professionals Conclusion Target Group Young and successful GLOBE Landscape Platform Target Group Best Practice Conclusion
  51. 51. - 51 -11.11.2010 Interim conclusion II Online users can be reached through many different channels. The main differentiation between channels is done by the reach of people and the technology and community possibilities. Although most social media platforms have their unique strengths, it is necessary to make a first distinction of which platforms reach efficiently enough potentials users. Combining the advantages of the major platforms YouTube, Twitter and Facebook, through a mash-up strategy is recommend. GLOBE Landscape Platform Target Group Best Practice Conclusion A similar detailed selection of the target group is done afterwards. When analyzing the potential of the current and future online users, the influenceability as well as the costs of contact are used as differentiation criteria. Students and young professionals in the age- group of 20-35 can be identified as the most relevant to target with respects to their current and future income and business activity and hence their potential as customers.
  52. 52. - 52 -11.11.2010 Best Practice Analysis
  53. 53. - 53 -11.11.2010 Analysis  Criteria for selection  Approach in Asia  Approach in Europe  Learning points from differences in various strategies undertaken Best practice Companies  Nokia  Starbucks  Sheraton Best Practice GLOBE Landscape Platform Target Group Best Practice Conclusion
  54. 54. - 54 -11.11.2010 1) Similar product/service classification as airline tickets (ERG Model) 2) Efforts targeted specially at SEA 3) Usability of platforms utilized 4) Integration across multiple platforms Choosing Best Practices GLOBE Landscape Platform Target Group Best Practice Conclusion Criteria used in choosing best practices
  55. 55. - 55 -11.11.2010 ERG Theory  Growth: Self-actualization and internal esteem needs  Relatedness: Social and external esteem needs  Existence: Physiological and safety needs Maslow’s Hierarchy of Needs An introduction to ERG Theory GLOBE Landscape Platform Target Group Best Practice Conclusion Estem Self- actualization Love/Belonging Safety Physiological
  56. 56. - 56 -11.11.2010 Why Nokia? GLOBE Landscape Platform Target Group Best Practice Conclusion 1) Similar product/service classification as airline tickets  (ERG Model)  EXISTENCE 2) Efforts targeted specially at SEA  3) Usability of platforms utilized  4) Integration across multiple platforms  • Facebock, Twitter, Blog, YouTube Criteria
  57. 57. - 57 -11.11.2010 Indonesia (Facebook)  Indonesians feel the need to be sociable  Separate Facebook Page for Indonesia  Landing Page – mini-game to measure sociability across various platforms  Drives traffic to Facebook page  Engages community – localizing Facebook community Nokia uses the need to feel social GLOBE Landscape Platform Target Group Best Practice Conclusion Europe (Facebook)  Focus on pushing offers online in Germany  Focus on apps for Finland and France  Focus on new products in UK  Focus on games in Poland
  58. 58. - 58 -11.11.2010 Indonesia (Facebook)  Indonesians feel the need to be sociable  Separate Facebook Page for Indonesia  Landing Page – mini-game to measure sociability across various platforms  Drives traffic to Facebook page  Engages community – localizing Facebook community Nokia uses the need to feel social GLOBE Landscape Platform Target Group Best Practice Conclusion Europe (Facebook)  Focus on pushing offers online in Germany  Focus on apps for Finland and France  Focus on new products in UK  Focus on games in Poland
  59. 59. - 59 -11.11.2010  USA 11.9%  Venezuela 19%  Mexico 13.4%  Indonesia 20.8%  Columbia 9.6% Nokia: Twitter Nokia uses Twitter locally GLOBE Landscape Platform Target Group Best Practice Conclusion
  60. 60. - 60 -11.11.2010  Local approach to each country - sensitive to language and activities online  Specific landing pages on Facebook which focus on the general point of interest in a country  Consolidated approaches on one platform: Facebook  Selected use of other platforms when it is popular in countries Learning Points Limitations and Considerations  Different product type  Focus mainly on Facebook only: for most parts of Asia except Indonesia Landing pages by Nokia GLOBE Landscape Platform Target Group Best Practice Conclusion
  61. 61. - 61 -11.11.2010 Why Starbucks? GLOBE Landscape Platform Target Group Best Practice Conclusion 1) Similar product/service classification as airline tickets  (ERG Model)  GROWTH 2) Efforts targeted specially at SEA  3) Usability of platforms utilized  4) Integration across multiple platforms  • Facebock, Twitter, Blog, YouTube Criteria
  62. 62. - 62 -11.11.2010 Starbucks utilizes sharing patterns GLOBE Landscape Platform Target Group Best Practice Conclusion  Filipinos are similar to the Indonesians: Aspirers who spend most of their time on SNS  They like to share their experiences (but not on SNS)  Separate Facebook Page for Philippines  Landing page – Summer Moments allows postcards to be created and sent to friends Philippines: Facebook Europe: Facebook  No specifically designed strategy  except for the UK -Promoting Starbucks VIA (instant coffee) with a guessing game
  63. 63. - 63 -11.11.2010 Starbucks utilizes sharing patterns GLOBE Landscape Platform Target Group Best Practice Conclusion  Filipinos are similar to the Indonesians: Aspirers who spend most of their time on SNS  They like to share their experiences (but not on SNS)  Separate Facebook Page for Philippines  Landing page – Summer Moments allows postcards to be created and sent to friends Philippines: Facebook Europe: Facebook  No specifically designed strategy  except for the UK -Promoting Starbucks VIA (instant coffee) with a guessing game
  64. 64. - 64 -11.11.2010 Starbucks: Twitter MalaySpanish English Starbucks uses Twitter locally GLOBE Landscape Platform Target Group Best Practice Conclusion
  65. 65. - 65 -11.11.2010  Local approach to each country - sensitive to language and activities online  Consolidated approaches on one platform: Facebook  Selected use of other platforms when it is popular in countries (Youtube for VIA in UK) Learning Points Limitations and Considerations  Different product type  Few specially designed strategies for each country – more global approach  Brand position was already very strong Starbucks uses multiple platforms GLOBE Landscape Platform Target Group Best Practice Conclusion
  66. 66. - 66 -11.11.2010 Why Sheraton? GLOBE Landscape Platform Target Group Best Practice Conclusion 1) Similar product/service classification as airline tickets (ERG Model)  RELATEDNESS 2) Efforts targeted specially at SEA 3) Usability of platforms utilized 4) Integration across multiple platforms • Facebock, Twitter, Blog, YouTube Criteria    
  67. 67. - 67 -11.11.2010 Asia: Facebook  Hong Kong – Offers for fans  Cannot see the images below? You're probably not connected to Sheraton Hong Kong Hotel & Towers. Click 'Like' above to get connected!  Malaysia (Kuching) – Empowering Audiences Sheraton focuses on “Like’s” GLOBE Landscape Platform Target Group Best Practice Conclusion Europe: Facebook  Algarve – Group offers  More than 25 people  Lisbon – Gourmet news  Salobre – Integrated application for easy sharing
  68. 68. - 68 -11.11.2010 Asia: Facebook  Hong Kong – Offers for fans  Cannot see the images below? You're probably not connected to Sheraton Hong Kong Hotel & Towers. Click 'Like' above to get connected!  Malaysia (Kuching) – Empowering Audiences Sheraton focuses on “Like’s” GLOBE Landscape Platform Target Group Best Practice Conclusion Europe: Facebook  Algarve – Group offers  More than 25 people  Lisbon – Gourmet news  Salobre – Integrated application for easy sharing
  69. 69. - 69 -11.11.2010  English used for information dissemination in Asia - insensitive to language and activities online  Using offers to gain ‘Like’s  Using other platforms mainly outside of SEA  Within a country, different strategies can be used  One platform may not be enough in targeting a new market – an integrated local approach is required Learning Points Limitations and Considerations  Targeting by city instead of country – not a strong comparison of scale  Main focus not on Asia  Engagement is very weak compared to previous 2 practices  No clear goal in Asia and not specific enough in efforts Sheraton can improve GLOBE Landscape Platform Target Group Best Practice Conclusion
  70. 70. - 70 -11.11.2010  Importance of language differences in Asia  Facebook functionality allows companies to consolidate very different strategies on one platform  Targeting at internet usage > Pushing offers  Rest of hospitality industry slow at targeting Asia Conclusion Best Practices Lufthansa Take-aways GLOBE Landscape Platform Target Group Best Practice Conclusion
  71. 71. - 71 -11.11.2010  Regional strategy needed to effectively target the SEA market  Cultural & usage behavior differences between SEA and Germany  Use mash-up platform with the focus on Facebook  Focus on age group 20-35 (students & young professionals)  Slow adaption of hospitality industry to Social Media  Pioneering role of Lufthansa Overall Conclusion Lufthansa Take-aways GLOBE Landscape Platform Target Group Best Practice Conclusion
  72. 72. - 72 -11.11.2010 Alexander Neff Christian Küpper Constantin Reutersberg David Bartling Jason Liew Sebastian Schmidt Q&A
  73. 73. - 73 -11.11.2010 A. GLOBE – Cultural Differences & Focus Group B. Landscape Analysis C. Platform Selection D. Target Group E. Strategic Approach – Best Practice Structure Appendix Appendix Overview
  74. 74. - 74 -11.11.2010 GLOBE – Cultural Differences & Focus Group 1. Procedure 2. Sample Design Focus Group 3. Questionnaire 4. Analysis 5. Human Orientation a. Statements b. Results c. Implications 6. In-Group Collectivism a. Statements b. Results c. Implications 7. Institutional Collectivism a. Statements b. Results c. Implications Appendix A Back
  75. 75. - 75 -11.11.2010 Step 1 What do those three dimensions mean in relation to social media? Human Orientation: The degree to which individuals value and encourage openness within social media as well as a personal interaction between users. In-Group Collectivism: The degree to which users express experiences, personal thoughts and details and are willing to share them in a online community. Institutional Collectivism: The degree to which active sharing and collective distribution of resources is rewarded and appreciated by users. Step 2 •Introducing a focus group that asks about those three dimensions •Identify cultural differences in social media behavior AIM: Derive Implications for a Social Media Strategy Appendix A: Procedure
  76. 76. - 76 -11.11.2010 0% 20% 40% 60% Malaysia Philippines Singapore Indonesia Thailand Germany South-East-Asia Participants by country & region 35 participants Female: 48,60% Male: 51,40% Average Age: 23,09 Appendix A: Sample Design Focus Group
  77. 77. - 77 -11.11.2010 Statement Visual impulses such as videos and pictures are most appealing to me, when informing myself over a brand or a company. The fact that companies are present in social media appeals to me. I am part of a company/brand’s online community via social networking site. I am part of a brand community to get more information about a brand. I have shared or at least considered sharing my personal travel experiences with a broader community (not just friends). I consider reacting on and discussing company related information that was posted by the company itself or by other users. Companies that are present in social networking sited should update me regularly (e.g. news, events) and provide me with recent information. Companies should not be present in social networking sites; the official company’s webpage is sufficient. I have more trust in customer-to-customer feedback than in the company’s own profiling.  Age  Gender (female, male)  What is your home country?  (Malaysia, Philippines, Singapore, Indonesia, Thailand, Germany)  Are you currently using any forms of social media?(Yes, No)  Which would you say is the most popular platform from where you are from?  (Friendster, Twitter, Facebook, Youtube, Hi5, Blog (Blogger, Blogspot, Wordpress, etc.), StudiVZ)  To what extent do you agree with the following statements? (7 = Strongly agree, 6 = Agree, 5 = Agree somewhat, 4 = Undecided, 3 = Disagree somewhat, 2 = Disagree, 1= Strongly disagree)  Name the first 5 airlines that come to mind. Appendix A: Questionnaire Focus Group
  78. 78. - 78 -11.11.2010 Total NumberofParticipants 35 Average Age Participants 23,09 Whatisyourgender? Female 48,60% 17 Male 51,40% 18 What is your home country? Malaysia 8,60% 3 Philippines 11,40% 4 Singapore 20,00% 7 Indonesia 8,60% 3 Thailand 11,40% 4 Germany 40,00% 14 South-East-Asia 60,00% 21 Appendix A: Analysis Focus Group
  79. 79. - 79 -11.11.2010 Are you currently using any forms of social media? Yes 97,10% 34 No 2,90% 1 Which would you say is the most popular platform from where you are from? Friendster 0,00% 0 Twitter 0,00% 0 Facebook 91,40% 32 Youtube 8,60% 3 Hi5 0,00% 0 Blog (Blogger, Blogspot, Wordpress, etc.) 0,00% 0 StudiVZ 0,00% 0 Appendix A: Analysis Focus Group
  80. 80. - 80 -11.11.2010 To what extent do you agree with the following statements? (Part 1) Stronglyag ree Agree Agree somewhat Undecided Disagree somewhat Disagree Strongly disagree Total Visual impulses such as videos and pictures are most appealing to me, when informing myself over a brand or a company. 31,4% (11) 42,9% (15) 22,9% (8) 2,9% (1) 0,0% (0) 0,0% (0) 0,0% (0) 35 The fact that companies are present in social media appeals to me. 20,0% (7) 34,3% (12) 25,7% (9) 5,7% (2) 2,9% (1) 11,4% (4) 0,0% (0) 35 I am part of a company/brand’s online community via social networking site. 11,4% (4) 37,1% (13) 22,9% (8) 5,7% (2) 2,9% (1) 8,6% (3) 11,4% (4) 35 I am part of a brand community to get more information about a brand. 5,7% (2) 20,0% (7) 17,1% (6) 31,4% (11) 2,9% (1) 14,3% (5) 8,6% (3) 35 I have shared or at least considered sharing my personal travel experiences with a broader community (not just friends). 5,7% (2) 37,1% (13) 20,0% (7) 5,7% (2) 8,6% (3) 11,4% (4) 11,4% (4) 35 Appendix A: Analysis Focus Group
  81. 81. - 81 -11.11.2010 To what extent do you agree with the following statements? (Part 2) Stronglyag ree Agree Agreesom ewhat Undecided Disagreeso mewhat Disagree Stronglydi sagree Total I consider reacting on and discussing company related information that was posted by the company itself or by other users. 8,6% (3) 37,1% (13) 14,3% (5) 14,3% (5) 5,7% (2) 14,3% (5) 5,7% (2) 35 Companies that are present in social networking sited should update me regularly (e.g. news, events) and provide me with recent information. 5,7% (2) 31,4% (11) 22,9% (8) 20,0% (7) 14,3% (5) 2,9% (1) 2,9% (1) 35 Companies should not be present in social networking sites; the official company’s webpage is sufficient. 2,9% (1) 8,6% (3) 2,9% (1) 8,6% (3) 17,1% (6) 51,4% (18) 8,6% (3) 35 I have more trust in customer-to-customer feedback than in the company’s own profiling. 25,7% (9) 51,4% (18) 8,6% (3) 11,4% (4) 2,9% (1) 0,0% (0) 0,0% (0) 35 Appendix A: Analysis Focus Group
  82. 82. - 82 -11.11.2010 (StronglyAgree = 7; StronglyDisagree = 1) Germany Singapore Malaysia Philippines Thailand Indonesia South- East- Asia Visual impulses such as videos and pictures are most appealing to me, when informing myself over a brand or a company. 5,59 6,43 6,33 6,25 6,00 6,67 6,34 The fact that companies are present in social media appeals to me. 4,50 5,14 6,70 6,50 6,25 5,67 6,05 I am part of a company/brand’s online community via social networking site. 3,50 5,00 6,00 6,25 5,50 6,00 5,75 I am part of a brand community to get more information about a brand. 3,21 5,29 4,70 4,75 4,50 4,67 4,78 I have shared or at least considered sharing my personal travel experiences with a broader community (not just friends). 3,14 4,43 5,33 6,25 5,25 6,33 5,52 I consider reacting on and discussing company related information that was posted by the company itself or by other users. 3,00 5,00 6,00 6,25 6,25 5,67 5,83 Companies that are present in social networking sited should update me regularly (e.g. news, events) and provide me with recent information. 4,22 5,71 4,33 5,25 4,50 4,67 4,89 Companies should not be present in social networking sites; the official company’s webpage is sufficient. 3,93 2,14 2,33 2,00 1,75 2,33 2,11 I have more trust in customer-to-customer feedback than in the company’s own profiling. 5,22 6,00 6,00 6,50 6,50 6,67 6,33 Average 4,03 5,02 5,30 5,56 5,17 5,41 5,29 Appendix A: Analysis Focus Group
  83. 83. - 83 -11.11.2010 0 10 20 30 40 50 60 70 Singapore Airlines Lufthansa Air Asia Emirates Quantas Tiger AirBerlin British Airways China Airways Others In % Name the first 5 airlines that come to mind. Appendix A: Analysis Focus Group
  84. 84. - 84 -11.11.2010 Name the first 5 airlines that come to mind. Name Quantity Name Quantity Name Quantity Singapore Airlines 26 Thai Airways 4 China Airlines 1 Lufthansa 16 United Airlines 4 Easy Jet 1 Air Asia 15 Cathway Pacific 3 El Al 1 Emirates 13 SilkAir 3 Etihad 1 Quantas 12 Air China 2 Iberia 1 Tiger 11 American Airways 2 Korean Air 1 AirBerlin 7 Quatar Airlines 2 Malaysia Airlines 1 British Airways 6 Quatar Airways 2 Nok Airlines 1 China Airways 6 SwissAir 2 Southwech Airlines 1 Air France 5 Al Italia 1 Wizz Air 1 Delta Airlines 5 American Airlines 1 Virgin Airlines 1 Ryanair 5 Austrian Air 1 Others 63 Germanwings 4 Blue Air 1 Total 175 Jetstar 4 ChileLan 1 Appendix A: Analysis Focus Group
  85. 85. - 85 -11.11.2010 “To what extent do you agree with the following statements?” (7 – Strongly Agree; 1 – Strongly disagree) Visual impulses such as videos and pictures are most appealing to me, when informing myself over a brand or a company. The fact that companies are present in social media appeals to me. I am part of a company/brand’s online community via social networking site. Appendix A: Human Orientation
  86. 86. - 86 -11.11.2010 Strongly Agree Strongly Disagree 1 2 3 4 5 6 7 Visual impulses such as videos and pictures are most appealing to me, when informing myself over a brand or a company. The fact that companies are present in social media appeals to me. I am part of a company/brand’s online community via social networking site. Germany South-East-Asia Appendix A: Human Orientation
  87. 87. - 87 -11.11.2010 What follows from the fact that South-East-Asians are more human orientated? Finding Implication Lufthansa Strong appeal to visual representations Visualize your values - create picture sharing/video sharing Appear as a caring brand towards their individual needs (Lufthansa South-East-Asia) Asians like that companies position themselves in SM  SE-Asians more open and less critical, possibility to be more “risky” In contrast, Germans… Less attracted to visuals; stronger focus on information retrieval (text) Weaker support that Germans like to see companies represented in SM Appendix A: Implications for Strategy
  88. 88. - 88 -11.11.2010 “To what extent do you agree with the following statements?” (7 – Strongly Agree; 1 – Strongly disagree) I am part of a brand community to get more information about a brand. I have shared or at least considered sharing my personal travel experiences with a broader community (not just friends). I consider reacting on and discussing company related information that was posted by the company itself or by other users. Appendix A: In-Group Collectivism
  89. 89. - 89 -11.11.2010 Strongly Disagree Strongly Agree 1 2 3 4 5 6 7 I am part of a brand community to get more information about a brand. I have shared or at least considered sharing my personal travel experiences with a broader community (not just friends). I consider reacting on and discussing company related information that was posted by the company itself or by other users. Germany South-East-Asia Appendix A: In-Group Collectivism
  90. 90. - 90 -11.11.2010 What follows from the fact that South-East-Asians are more in-group collectivist? Finding Implication Lufthansa Entertainment-focused, (deriving information seems to be less important)  Stronger focus on entertainment  No need to give extensive information Stronger tendency to share personal insights with broader community Provide opportunities for sharing such insights E.g. travel forum, insider tips etc Stronger tendency to discuss & comment on company provided information  Provide a platform that allows such exchange & gives room for discussion on information that was posted by company itself In contrast, Germans… More content-focused,need to derive valuable information, not solely entertainment weaker tendency to share personal insights, stories with a broader (unknown) community Appendix A: Implications for Strategy
  91. 91. - 91 -11.11.2010 “To what extent do you agree with the following statements?” (7 – Strongly Agree; 1 – Strongly disagree) Companies that are present in social networking sited should update me regularly (e.g. news, events) and provide me with recent information. Companies should not be present in social networking sites; the official company’s webpage is sufficient. I have more trust in customer-to-customer feedback than in the company’s own profiling. Appendix A: Institutional Collectivism
  92. 92. - 92 -11.11.2010 Strongly Disagree Strongly Agree 1 2 3 4 5 6 7 Companies that are present in social networking sited should update me regularly (e.g. news, events) and provide me with recent information. Companies should not be present in social networking sites; the official company’s webpage is sufficient. I have more trust in customer-to- customer feedback than in the company’s own profiling. Germany South-East-Asia Appendix A: Institutional Collectivism
  93. 93. - 93 -11.11.2010 What follows from the fact that South-East-Asians are more institutional collectivist? Finding Implication Lufthansa No significant difference btw. SE-Asians and Germans in terms of reacting/commenting on posts Recent updates SE-Asians: Yes, but entertainment-focused Germans: Yes, but more information-focused Both have higher confidence/trust in customer-to-customer feedback Provide platform/forum that allows users to give feedback on the product Appendix A: Implications for Strategy
  94. 94. - 94 -11.11.2010 Landscape Analysis 1. Source: TNS Digital Life 2. Internet Population in South-East Asia 3. The Importance of Web 2.0 activities Appendix B 4. Brand Interaction 5. Average Number of Friends on Social Networks 6. Digital Lifestyles Back
  95. 95. - 95 -11.11.2010  Digital Life was completed in September 2010 and the results were published on 10th October 2010  The study covers 46 countries representing 88% of the digital market  Special focus on emerging markets (BRICS, Next 11)  It is based on a survey with 48,804 participants  TNS is a well know and approved market research institution with a global reach Appendix B: TNS DIGITAL LIFE
  96. 96. - 96 -11.11.2010 Appendix B: Internet Population in SEA Source :TNS DiGITAL LIFE 8 1 3 4 7 9 22 27 32 2 23 0 5 10 15 20 25 30 35 PercentageofInternatPopulation Growth of Internet Population since 2008
  97. 97. - 97 -11.11.2010 0 50 100 150 200 250 300 Germany Singapore Malaysia Philipines Vietnam Thailand Indonesia inmillion Internet Population South East Asia Population Internet Population Appendix B: Internet Population in SEA Source :TNS DiGITAL LIFE
  98. 98. - 98 -11.11.2010 0 10 20 30 40 50 60 70 80 SG ID MY TH VN PH DE PercentageofInternetUser Most important online activity SNS Email Gaming Multimedia Personal Interest Appendix B: The importance of Web 2.0 Source :TNS DiGITAL LIFE
  99. 99. - 99 -11.11.2010 Appendix B: The importance of Web 2.0 0.39 10 0.49 0.63 0.93 1.19 0.19 0 1 2 3 4 5 6 7 8 9 10 Social Networking / Emailing % considering Social Networking as most important % considering Emailing as most important Ratio = e.g. in Germany fife times more internet user regard emailing as most important activities compared to Social Networking
  100. 100. - 100 -11.11.2010 0 10 20 30 40 50 60 %ofinternetuser) Openness towards brand friending  In Emerging Asia Social Networks are a main source of information on brands How to transport information?  Openness towards brand interaction on SN is considerably higher in South East Asia compared to western internet user and the global average Appendix B: Brand Interaction
  101. 101. - 101 -11.11.201010.11.2010 0 50 100 150 200 250 Averagenumberoffriends Average number of friends on SN  Average number of friends on SN is considerably higher in South East Asia compared to Germany ( SEA 175 vs. DE 75)  High number of friends offers opportunities: follower with a large friend base increases the reach of a company’s social media activities  High value for a company’s social media activities Appendix B:Number of Friends on SN
  102. 102. - 102 -11.11.2010 User Behavior - Defining Digital Lifestyles Influencer Communicator  Young internet user  Internet as integral part of his life  It allows him to stand out and be different  Organizes his life with internet, is very often online  Engaged in almost all digital activities ( Email to Blogging, Social Networking, Multimedia )  Express himself online not only to his friends but to anyone – shares personnel information  Not concerned with privacy issue  Highly open towards brand interaction and brand friending (2st rank brand interaction)  Loves to express himself via SNS, instant messaging, emailing especially to friends  High frequency of internet access  Is more open to brands and to online purchasing (1nd rank brand interaction) Appendix B: Digital Lifestyles
  103. 103. - 103 -11.11.2010 Networker Knowledge Seeker  Main use of the internet: establish and maintain relationships  Main activities: social networking, emailing  use Social Networksonly to keep in touch  Social Media not as a tool to search for brands or products  does not voice opinion online  Would not share personnel thoughts on the Internet  Online touchpoints: brand sites, online shops (classical Web 1.0 channels)  More open to brand interaction than rejecting it (4TH brand interaction)  Main use of internet for gaining knowledge, information  Educational purpose  engaged in SN online to stay in contact with like- minded people and to gather relevant information,  no actual interest in Social Networking, but in connecting with lke minded people that share his interests or can provide him knowledge  concerned about data protection  Touchpoints are especially brand websites, but also bloggs or SN comments  No production of content, only consumption  open to brand interaction and advertisement of new products (3rd rank brand interaction) Appendix B: Digital Lifestyles User Behavior - Defining Digital Lifestyles
  104. 104. - 104 -11.11.2010 Functionals Aspirers  high frequency of internet access but more conservative and rational in his digital behavior  Internet is a functional tool internet safes time (easier to obtain information ), cheaper (price comparison)  Internet usage not improving or establishing relationships with other people on Social Media Less about personal interaction  do not express themselves online  preference in emailing, news, sports, online shopping  concerned about data protection  no Social Media user  Touchpoints: Price Comparison Websites, Brand Websites  very new to the internet and low frequency of internet access  Looking to create a personal space, but not a place to look for brands pr products  Want to increase the use of the internet and the different activities Increase engagement , might move towards influencer, communicator  reliy on offline touchpoints:Offline Media, Retail Shops, offline WoM  Becoming more accustomed to usage of Internet but Internet activities are not integral part of his life yet Appendix B: Digital Lifestyles User Behavior - Defining Digital Lifestyles
  105. 105. - 105 -11.11.2010 Platform Selection 1. Criteria reach 2. Criteria growth 3. Criteria mobile accessibility 4. Criteria integration 5. Criteria Time spend 6. Criteria # of app 7. Criteria content focus 8. Data sourcing 9. Scoring model Appendix C Back
  106. 106. - 106 -11.11.2010 Singapore Indonesia Malaysia Philippines Thailand Vietnam 176 3101 69 7111 101 5111 11 581 - 4202 - -106 Appendix C: Criteria reach Source: Alexa, Oct. 2010 Platform ranking in Top 200 Websites
  107. 107. - 107 -11.11.2010 0 5000 10000 15000 20000 25000 30000 SG ID MY PH TH VN AVG Average Monthly Unique Visitor Youtube ('000) Twitter ('000) Friendster ('000) Facebook ('000) Ad Planner (2010) Average monthly unique visitors SG ID MY PH TH VN AVG Facebook ('000) 2000 26000 11000 10000 6800 2900 9783 Friendster ('000) 180 1600 560 2100 20 15 746 Twitter ('000) 290 5100 1000 1500 760 320 1495 Youtube ('000) 1600 9800 7400 6100 6700 8900 6750 Appendix C: Criteria reach
  108. 108. - 108 -11.11.2010 Source: comScore •Facebook offers a larger user base in comparison to Friendster  Predominant social network platform in South-East Asia •Youtube is strong in SG, MY, PH, TH and VN •Only Youtube has similar average unique monthly visitors as Facebook •Twitter and Friendster cannot compete with Facebook Platform Criteria Facebook Friendster Twitter Youtube Quantifier Grade Result GradeResult GradeResult GradeResult 1.People Reach 10 5 50 1 10 2 20 4 40 Appendix C: Criteria reach
  109. 109. - 109 -11.11.2010 0 5 10 15 20 25 30 35 SG ID MY PH Internet Population (mio.) Social Network Reach (mio.) Facebook Reach (mio.) People are reached! •SNS reaches large parts of the internet population •Most of the online population is active on SNS •Facebook growth is related to the growth of the internet pop. since 70-80% of the market are already covered SG ID MY PH Internet Population (%) 77,8 12,3 54,6 29,7 SNS Reach (%) 83,7 88,6 84,7 90,3 FacebookReach (%) 72,1 84,9 77,5 84,5Source: TNS Appendix C: Criteria reach
  110. 110. - 110 -11.11.2010 Social Networks are growing Source: comScore +13 % +28 % 0 2 4 6 8 10 12 14 16 SG MY Social Network Reach Social Network Reach (mio.) Social Network Reach (mio.) 632 1266 2927 2892 0 2000 4000 6000 SG ID MY PH Average Monthly Unique Visitor Friendster ('000) Facebook ('000) 180 1600 560 2100 0 10000 20000 30000 SG ID MY PH 2009 2010 •Strong growth of Facebook •Declining visitors of Friendster Appendix C: Criteria growth
  111. 111. - 111 -11.11.2010 Twitter is growing! Source: comScore Asia 37% up from 31.5% three months ago Source: Semiocast Appendix C: Criteria growth
  112. 112. - 112 -11.11.2010 Facebook is growing! Source: Facebakers •Significant growth in Malaysia, the Philippines, Thailand and Indonesia • Indonesia is now the world’s #3 country in terms of total Facebook audience size (behind US and UK) •Facebook has overtaken hi5 in Thailand and Friendster in the Philippines Country Continent Percentagegrowt h IIndonesia Asia 11,48 Thailand Asia 12,76 Phillipines Asia 10,9 Malaysia Asia 8,93 2009, Nov-DecIndonesia Appendix C: Criteria growth
  113. 113. - 113 -11.11.2010 Youtube is growing! •#4 Largest Site on the Internet •#1 Largest video site on the web •300MM Worldwide Visitors a Month •100 Million Visitors per Month •5 Billion Video Streams Every month – 40% of all videos online (Do the Math – 5 Billion / 300 million worldwide visitors = 17 streams a month per person) •15 Hours of video uploaded every minute Platform Criteria Facebook Friendster Twitter Youtube Quantifier Grade Result GradeResult GradeResult GradeResult 1.People Growth 5 4 20 2 10 4 20 4 20 Appendix C: Criteria growth
  114. 114. - 114 -11.11.2010 0 20 40 60 80 100 SG ID MY PH TH SG ID MY PH TH Mobile 48 15 36 21 44 PC 56 13 69 28 67 Mobile acceptance •There is a large amount of users taking advantage of mobile devices to access SNS •Mobile access is demanded •There are more than 150 million active users currently accessing Facebook through their mobile devices. •People that use Facebook on their mobile devices are twice as active on Facebook than non-mobile users. Source: TNS Digital Study, 2010 Appendix C: Criteria mobile accessibility
  115. 115. - 115 -11.11.2010 •Twitter mobile solution is most performing •Friendster approaches are not so sophisticated •Youtube, Twitter and Facebook allow mobile access with all different mobile devices Platform Criteria Facebook Friendster Twitter Youtube Quantifier Grade Result GradeResult GradeResult GradeResult 2. Technology Mobile accessibility 5 4 20 2 10 5 25 4 20 IPhone Blackberry Windows Phone 7 Android Symbian Appendix C: Criteria mobile accessibility
  116. 116. - 116 -11.11.2010 Easiness of use Performance Navigation Accessibility Customization Appendix C: Criteria mobile accessibility
  117. 117. - 117 -11.11.2010 Appendix C: Criteria mobile accessibility
  118. 118. - 118 -11.11.2010 2009 2010 Appendix C: Criteria mobile accessibility
  119. 119. - 119 -11.11.2010 0 10 20 30 40 50 Looking to Increase SM Activity Upload Photos (%) Look at Photos (%) Respond on Social Network (%) Check Social Network (%) Message on Social Network (%) Stream Music/ Video (%) •Integrated Platform offering chat, search and message functionality •Streaming music/movies •Get informed by status messages of friends Integration is key Source: TNS Digital Study, 2010 Trends in Social Media Appendix C: Criteria integration
  120. 120. - 120 -11.11.2010 Core messaging connected to friend list Aggregated services Integrated platform Multi-media integration is the next critical development •Core messaging platform connected to friend list •Aggregator of services: e.g. one-stop-shop for all online needs “A consumer can now listen to music, watch videos, play games, create groups and share their location. When we look at what the next big development will be, multi-media integration is at the top of the list. The networks that can make this as seamless and intuitive as possible will be winners.” Source: TNS Digital Study, 2010 Platform Criteria Facebook Friendster Twitter Youtube Quantifier Grade Result GradeResult GradeResult GradeResult 2. Technology Integration 5 5 25 3 15 1 5 2 10 Appendix C: Criteria integration
  121. 121. - 121 -11.11.2010 People spend time on SNS 0 5 10 15 20 25 30 35 SG ID MY PH Time Spend on SNS (%) •Indonesians, Malaysians and Philippines spend 25- 33% of their online time on SNS •Singaporeans around 15% SG ID MY PH Time Spend on SNS (h) 3,5 5,4 3,02 4,2 Source: comScore Appendix C: Criteria time spend
  122. 122. - 122 -11.11.2010 0 5 10 15 20 25 30 35 SG ID MY PH TH VN AVG Average Time Spend on Site Youtube (min.) Twitter (min.) Friendster (min.) Facebook (min.) Averrage Time Spend on Site (min.) SG ID MY PH TH VN Facebook 25 26,4 30 30 28,2 20 Friendster 9,3 7,4 8,5 13 5,5 5 Twitter 14,4 16,2 10,3 13,3 10,5 7,3 Youtube 25 16,4 21,4 21,4 26,4 21,4 •Users stay on Facebook and Youtube •Time spend on Friendster is less •Only Youtube can compete with Facebook Source: Ad Planner , 2010 Platform Criteria Facebook Friendster Twitter Youtube Quantifier Grade Result GradeResult GradeResult GradeResult 3.Community Time online 8 5 40 1 8 2 16 4 32 Appendix C: Criteria time spend
  123. 123. - 123 -11.11.2010 Facebook’s Applications •Restricted layout and small fonts, adding applications to the Facebook profile is easy •Due to Facebook Platform which allows developers to create applications to be shared and used within the Facebook community, •Facebook has a well of fun applications that users can add to their own and their friends’ profiles ranging from games, quizzes, polls, virtual gestures, etc. •Friendster offers only 3066 applications Platform Criteria Facebook Friendster Twitter Youtube Quantifier Grade Result GradeResult GradeResult GradeResult 3.Community # ofapplications 5 5 25 2 10 0 0 0 0 Appendix C: Criteria # applications
  124. 124. - 124 -11.11.2010 64 49 41 34 ID MY TH World People love Social Networking People who love Social Networking (%) •TH, MY and ID are clearly positioned above the world average of 34% •Indonesians tend to be passionate SN users •People love SN  Emotionally addressed Source: Mindreader 2009 Applications that users can add to their own and their friends’ profiles ranging from games, quizzes, polls, virtual gestures •All kind of fun activities •Over 12000 applications on Facebook belong to the categories games & fun (23 160 in total) People want to have fun on SNs Confrontitwithmoreseriouscontent ofTwitter! Appendix C: Criteria content focus
  125. 125. - 125 -11.11.2010 Statistical Data: Reliable and fitting data Abstraction: Consider layer above Survey: Conducted at SMU Quotes: Conclusions of studies and quotations of experts Statistical data Abstraction Survey Quotes Logicalargumentation Appendix C: Data sourcing
  126. 126. - 126 -11.11.2010 Appendix C: Scoring model
  127. 127. - 127 -11.11.2010 Target Group 1. Potential today 2. Potential future 3. Influenceability with SM 4. Costs to talk to them/influence them Appendix D Back
  128. 128. - 128 -11.11.2010 Appendix D: Potential today 1. Potential Today – SM-Reach Importance “If they are not on Social Networks LH just can´t reach them!” Figure  FB as representative of SN in general  distribution is similar between the countries Key findings 1.)18-24 2.)25-34 3.)0- 18
  129. 129. - 129 -11.11.2010 GDP/Capita $3265 1. Potential Today – Economic Potential (1/2) => Only the richest people are potential customers! (except Singapore and Malaysia) => Correlation between education and wealth: “The relationship between education and income is direct“ (UNICEF) => well educated! GDP per Capita Country GDP per capita Singapore 40336 Indonesia 2858 Philippines 1745 Malaysia 6948 Thailand 3737 Vietnam 1040 Average 9444,00 Average (without SG) 3265,6 Price for a ticket $700 Appendix D: Potential today
  130. 130. - 130 -11.11.2010 1. Potential Today – Economic Potential (2/2) Importance “To be a potential customer you have to be able to buy a ticket!” Figure  consumption/income in Phillipines as a representative for the whole region (except Singapore)  supported by consumption smoothing  consumption vs. income Key findings 1.)18-24 2.)25-34 3.)0-18 ConsumptionIncome Appendix D: Potential today
  131. 131. - 131 -11.11.2010 1. Potential Today – SM-Reach  Economic Potential Potential of Target Group =people who are… 1.) on Social Networks 2.) who can afford it => There are app. 2 times more people on SN in the age of 18-25 then in the age of 0-18 or 25-34 In the age groups of 0-18 or 25-34 have to be 2 times more people who can afford it then in the age group of 18-25 for equalization! => 1.) 18-25 2.)25-34 3.)35-44 Appendix D: Potential today
  132. 132. - 132 -11.11.2010 2. Potential future – Economic-Development (1/3) Importance “Asia is the fastest growing area in the world!” GDP Growth 2007 2008 2009 Average Singapore 7,7 4,9 5,8 6,13 Indonesia 6,3 6 6,2 6,17 Phillipines 7,2 5,5 6,1 6,27 Malaysia 6,3 5,4 5,6 5,77 Thailand 4,8 5 5,2 5,00 Vietnam 8,5 6,5 6,8 7,27 Average 6,80 5,55 5,95 6,10 Appendix D: Potential future
  133. 133. - 133 -11.11.2010 2. Potential future – Economic-Development (2/3) Importance “Asia is the fastest growing area in the world!” Figure 1. demographic development 2010 2020 Malaysia Appendix D: Potential future
  134. 134. - 134 -11.11.2010 2. Potential future – Economic-Development (3/3) Importance “Asia is the fastest growing area in the world!” Figure 1. demographic development Soft Factors: 1. The best educated people are said to profit the most and in first place! Key findings 1.)0-18 2.)18-24 3.)25-34 Appendix D: Potential future
  135. 135. - 135 -11.11.2010 2. Potential future – SM-Development (1/2) Importance “Brand Awareness needs time and is a long time Goal!” Figure 1. demographic development 2. SN growth in the age Groups! Key findings 1.)45-60 2.)35-44 3.)25-34 2010 2020 Malaysia Appendix D: Potential future
  136. 136. - 136 -11.11.2010 2. Potential future – SM-Development (2/2) Importance “Brand Awareness needs time and is a long time Goal!” Figure 1. Demographic Development 2. FB growth in the age Groups!  huge differences between countries  FB as a representativ?  only 3-month average Appendix D: Potential future
  137. 137. - 137 -11.11.2010 3. Influenceability with SM (1/3) 0-18 18-24 25-34 35-44 45-100 Influencers Communicator Networkers Funktionals Aspirers Knowledge Seeker 3 1 2 Appendix D: Influenceability with SM
  138. 138. - 138 -11.11.2010 3. Influenceability with SM (2/3) Appendix D: Influenceability with SM
  139. 139. - 139 -11.11.2010 3. Influenceability with SM (3/3) Appendix D: Influenceability with SM
  140. 140. - 140 -11.11.2010 4. Costs to talk to them/influence them Appendix D: Costs to talk to them
  141. 141. - 141 -11.11.2010 Best Practice Analysis 1. Twitter 2. Nokia 3. Starbucks 4. Sheraton Appendix E Back
  142. 142. - 142 -11.11.2010 Appendix E: Twitter Penetration 1. Twitter Penetration – June 2010 Importance Top 20 countries in terms of % reach of Twitter Key % 1) Indonesia 20.8 2) Brazil 20.5 3) Venezeula 19 4) Canada 13.5 5) Mexico 13.4 6) US 11.9 7) Argentina 10.5 8) Columbia 9.6 9) Malaysia 7.7
  143. 143. - 143 -11.11.2010 Appendix E: Nokia FB Fans 2.1 Nokia Facebook Fans
  144. 144. - 144 -11.11.2010 Appendix E: Starbucks FB Fans 2.2 Starbucks Facebook Fans
  145. 145. - 145 -11.11.2010 Appendix E: Sheraton FB Fans 2.3 Sheraton Facebook Fans
  146. 146. - 146 -11.11.2010 Appendix E: Twitter Penetration
  147. 147. - 147 -11.11.2010 Appendix E: Nokia FB Fans
  148. 148. - 148 -11.11.2010 Appendix E: Starbucks FB Fans
  149. 149. - 149 -11.11.2010 Appendix E: Sheraton FB Fans

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