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The Rise and Fall of an Iconic Brand

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  • With YDN since we started it.We started with the Search API – Now we have over 50 different developer offerings.
  • Yahoo

    1. 1. THE RISE AND FALL OF AN ICONIC BRAND<br />by Marc Laurin<br />
    2. 2. 2<br />CONTENTS<br /><ul><li>Quick history
    3. 3. Y.a.h.o.o.
    4. 4. Development of brand awareness
    5. 5. Brand perception
    6. 6. Measurable outcomes
    7. 7. Extension of services
    8. 8. Purchases
    9. 9. Revenue model
    10. 10. S.W.O.T.
    11. 11. Brand perception
    12. 12. The future</li></li></ul><li>David Filo and Jerry Yang create the Yahoo! Search engine in 1994 under the name “Jerry and David’s Guide to the World Wide Web”.<br />Yahoo! Stands for Yet another Hierarchical Officious Oracle <br />Site was different as it also includes a searchable index, making websites searchable by categories<br />3<br />QUICK HISTORY<br />
    13. 13. 4<br />YET ANOTHER HIERARCHICAL OFFICIOUS ORACLE<br />The unusual and catchy name worked in setting the company apart from traditional companies.<br />It was easy to remember, funny and people developed an emotional attachment to it.<br />Yahoo sought to convey an irreverent and fun attitude. <br />
    14. 14. 5<br />DEVELOPMENT OF BRAND AWARENESS<br />In 1996 Yahoo launched a $10 million awareness building campaign which included the slogan “do you Yahoo” and the Yahoo yodel audio cue. <br />Campaign included television, radio and print.<br />It focused on consumers intending to use the Internet for the first time within a year, “near surfers” as they would more likely become loyal to the brand.<br />
    15. 15. 6<br />BRAND DEVELOPMENT<br />Yahoo managed to portray itself differently to 3 distinct target audiences.<br />To customers: “We are fun, wacky and easy to use”<br />To press and financial analysts: “We’re professional and well run”<br />To media buyers: “We’re the market leader and experts in online advertising”<br />
    16. 16. 7<br /> MEASURABLE OUTCOMES<br />Yahoo worked on building a consumer brand rather than technological company.<br />In 1996, the brand was recognised by 64% of Internet users and 8% of prospective users<br />In 1997, the brand was recognised by 82% of Internet users and 23% of prospective users<br />By 2000, the awareness reached 90%.<br />This was achieved by constant advertising and by sticking to the same brand image.<br />
    17. 17. 8<br /> EXTENSION OF SERVICES<br />In 1998, it launched a Yahoo! Branded Visa card.<br />If follows with an online shopping mall called Yahoo! Shopping. The aim was to make the brand stand for commerce as well.<br />The Yahoo store allowed merchants to lists their products on Yahoo Shopping Directory. <br />Merchants were also able to set up payments and credit card processing to third party providers. It appealed to small businesses who didn’t have the knowledge or the knowledge to sustain an independent website.<br />
    18. 18. 9<br /> FURTHER EXTENSION OF SERVICES <br />Yahoo City Guides (restaurant guides, entertainment calendars, pizza delivery numbers)<br />Yahoo Small Business (packages such as package tracking service, editorial content for publications)<br />Yahoo Messenger (messaging, email and news alerts)<br />Yahoo Everywhere (content on non PC devices “to extend the brand and services beyond the desktop”).<br />Yahoo Auctions (online auctions)<br />Yahoo Club (social network)<br />Flickr (photo sharing)<br />
    19. 19. 10<br />PURCHASES<br />GeoCities (ISP)<br /> (Streaming audio and video)<br />eGroup (Yahoo Mail)<br />Launch Media (Music website)<br />Overture (Advertising services)<br />Kelkoo (Online shopping)<br />
    20. 20. 11<br />REVENUE MODEL<br />Marketing services: <br /><ul><li>Advertisers pay fees for impressions and clicks</li></ul>Fees: <br /><ul><li>Internet broadband and dial-up services,
    21. 21. Premium e-mail,
    22. 22. Music,
    23. 23. Personal and services for small business,
    24. 24. Subscription data,
    25. 25. Domain names,
    26. 26. Additional bandwidth,
    27. 27. Financial research,
    28. 28. Auctions listing,
    29. 29. Personal ads</li></li></ul><li>12<br />STRENGTHS<br /><ul><li>Recognised and trusted brand
    30. 30. Many services generating revenues
    31. 31. Good integration of services
    32. 32. Dominating position in many countries
    33. 33. Highly regarded management team</li></li></ul><li>13<br />WEAKNESSES<br /><ul><li>Dissatisfaction from corporate marketers over the lack of support, high fees, decreasing click rate
    34. 34. Search technology being surpassed by main competitor, Google
    35. 35. Not all products in suite financially sustainable
    36. 36. Independent alternatives more successful (YouTube, Facebook, eBay, DoubleClick)
    37. 37. Inconsistance of offerings in different countries
    38. 38. Massive overheads
    39. 39. Decrease in revenues</li></li></ul><li>14<br />OPPORTUNITIES<br /><ul><li>Offload some of its products
    40. 40. Concentrate on the countries where it dominates
    41. 41. Review its search algorythms (API)
    42. 42. Aggregate its services
    43. 43. Less is more approach
    44. 44. Hire Richard Branson
    45. 45. Partner with another popular search engine</li></li></ul><li>15<br />THREATS<br /><ul><li>Competition from other Internet companies (Google, Microsoft, Time Warner, Monster and CNET).
    46. 46. Exposure over unethical online advertising practices indirectly affecting its reputation (spam, click fraud, spyware, adware)
    47. 47. Weak growth in international markets</li></li></ul><li>16<br />BRAND PERCEPTION<br />Visionary<br />Edgy<br />Irreverent<br />Faceless<br />Try hard<br />Dethroned<br />Out of touch<br />In trouble<br />
    48. 48. 17<br />THE FUTURE<br /><ul><li>Failed takeover from Microsoft - Now a partnership
    49. 49. Personalisation of content
    50. 50. Site stickiness
    51. 51. Open Strategy (BOSS)
    52. 52. Cloud computing</li></li></ul><li>18<br />ANY QUESTIONS?<br />