Vw Competitor Analysis


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Vw Competitor Analysis

  1. 1. Virtual Worlds are for Kids Paul Phadungchai May 3rd
  2. 2. TOC Industry Analysis Slides 2-8 Competitor Analysis Slides 9-13 Conclusion Slide 14 Exhibits and notes Slides 15-20
  3. 3. Millions of U.S. Children under age 9 have access to the internet
  4. 4. VWs for kids have exploded in the past two years Advertisers Dream…great way to market products to children Disney purchased category leader Club Penguins for over $350 million and reportedly has 4 million active users The industry has gone from a few worlds to over 200…Disney is working on 10 worlds itself and is rumored to be spending about $100 million # of Kids VWs in U.S. 250 200 150 100 50 0 Year 2006 2007 2008
  5. 5. With Neopets Club Penguins leading older kids
  6. 6. Explosive Growth places Poptropica at top of the lower age bracket
  7. 7. Kids use VWs much differently than Adults Often in conjunction with Instant Messenger Hardly any sex appeal More individual exploration Higher value placed on virtual goods Safety is a bigger concern than cheating
  8. 8. Trends/Stats Themes Dinosaurs Multiple revenue streams Customization Ideal Site Sporty 10 Fun Cuddly 8 6 4 2 Gifting Intro/Sticky 0 Customization Ovrll/Sticky Teamwork Competitve
  9. 9. All Competitors want to be Club Penguin -Perfect intro -Extremely easy to add friends and chat with people -Not Sporty Club Penguin Sporty 10 Fun Cuddly 8 6 4 2 Gifting Intro/Sticky 0 Customization Ovrll/Sticky Teamwork Competitve
  10. 10. Action All-Stars should be called Penguin All-Stars Owned by NBA amd MLB Entirely centered around sports Almost identical to Club Penguin's intro Action Allstars Sporty Can give friends trading cards 10 Fun Cuddly 8 6 4 2 Gifting Intro/Sticky 0 Customization Ovrll/Sticky Teamwork Competitve
  11. 11. Poptropica challenges Dexterity and the Mind -Story themed -High dexterity needed -Must be clever - 3 million unique monthly users Poptropica (rough estimate) Sporty 7 6 Fun Cuddly 5 4 3 2 Gifting Intro/Sticky 1 0 Customization Ovrll/Sticky Teamwork Competitve
  12. 12. There are a Kabillion ways to Customize yourself -A million different ways to accessorize avatars and customize home base -No gifting Kabillion Sporty 10 Fun Cuddly 8 6 4 2 Gifting Intro/Sticky 0 Customization Ovrll/Sticky Teamwork Competitve
  13. 13. Neopets are Cuddly friends in the Real and Virtual world -Very cute dragon that could appeal to boys or girls -Limited ability to customize avatar and no quot;home basequot; or locker -Appeals to nurturers Neopets Sporty 10 Fun Cuddly 8 6 4 2 Gifting Intro/Sticky 0 Customization Ovrll/Sticky Teamwork Competitve
  14. 14. Conclusion Here are some keys to success for the space: -Customization -Gifting -Concepts with low saturation -Special attention to Virtual ownership Ideal Site Sporty 10 Fun Cuddly 8 6 4 2 Gifting Intro/Sticky 0 Customization Ovrll/Sticky Teamwork Competitve
  15. 15. Has Club Penguin growth become stagnant?
  16. 16. Trends/Stats Giving avatars the always-on nature of IM mixed with a richer virtual world environment (Club Cooee) Dinosaurs (Dinosawrus, Dinosaur Junction Dinokids, Webosaurs, MyDinos) Multiple revenue streams, OurWorld has 1.3 million registered users makes 50/50 subscription and micro transactions Hasbro partners with EA for Littlest Pet Shop SuperSecret's functionality mimics that of MySpace, Facebook, and instant messaging tools in the same way that a younger sibling parrots the older SuperSecret is free to play until users hit age 12, and then users will have to subscribe to continue to level up. IMVU has long stated that 90% of the company's monthly revenue comes from microtransaction sales of virtual goods and currency, generated either by direct sales to users or user-to-user transactions. The other 10% is generated by advertising and partner revenue.
  17. 17. Trends/Stats 731,000 unique,repeated logins (unique accounts that log in more than once) per month as of the end of March.That's up from 582,000 a year ago Microtransaction king Gaia uses speed-boosting Nike shirt and limits # of certain products to create scarcity and high value Gaia is an online advertiser's dream. 60% of users are between 16 and 24, with a 55% to 45% female-to-male ratio. The usual engagement time of a user interacting with a Gaia branded campaign area is between 15 to 30 minutes Toys R’ Us debuts in Webkins Sulake could beat out Genkii's upcoming Sparkle for the title of first 3D virtual world on the iPhone Elf Island offers mirrored gaming, where kids complete missions that correspond to real-world problems, like building a house to raise money for actual houses in Honduras. Survey data, In early surveys, players of all ages that had not yet decided to subscribe were asked what would help them make their decision. Of all the respondents, only one selected “I can pay for the game in micropayments.” Several others cited time- related reasons such as “If I have enough time to play” and “I need to play more to see if I like it.” Interestingly, we found that while players were not specifically asking for micropayments, an alternative to subscriptions for premium content fulfilled a number of their wishes.
  18. 18. Trends/Stats 28M+ Xbox and Playstation Online Accounts 11/09 How virtual worlds and consoles will work is still a big question Universal Avatars may or may not come into existence According to a study (Yankelovich 2007), only 25% of US residents trust conventional advertising. By and large they want to Tivo over advertising. Almost 70%, though, trust what their friends recommend. Habbo, Gaia, and Stardoll, it’s a market of 100 million people. Out of the 6.6 billion people on Earth, 2.3 billion have mobile phones. Approximately 1.2 billion have Internet connectivity. What could really shake up this segment is the pending launch of Lego Universe. The applications of this world are obvious and extremely engaging. What’s of interest here is the element of content creation that could be on offer to the residents of Lego universe. Very few (possible none) of the under 10’s virtual worlds allow third tier creation (first tier: avatar, second tier: objects, third tier: environment). Allowing kids to make buildings etc could be a killer app and something we haven’t seen much of. Whether or not they engage in this activity remains to be seen, but I’d suggest it will be extremely popular.
  19. 19. Trends/Stats •Toy brands and franchises: Real world toy brand owners creating virtual playgrounds for their assets. Just as almost every toy has a dedicated website at present, expect to see a similar trend emerge in the virtual space. •‘Spaces to play’: Linked to the first point, creating virtual spaces for kids to play (and learn) will be popular. •Relationship building: Platforms such as Neopets prove the success of teaching kids to look after ‘things’. This early type of relationship building could be a trigger to mass adoption. •Virtual to real : Revenue opportunities for taking assets created in virtual worlds and bring them alive in the real. The segment below shows 10 - 20 year olds - the ‘Battle Zone’. This is a segment with a great deal of existing competition and as many worlds pending launch are as live. NFLRUSH is using Youtube to create awareness, data and demand
  20. 20. Trends/Stats Even the rapidly declining Millsberry.com--down 17% from last year, but still at #5-- saw 2.5 million unique users. Webkinz led the pack with 6 million unique users. Club penguins values each user at over $100