Buzz Power of Brand Messengers Drive Sales

BSI Buzz Power of the Brand Messengers

Marketing 2.0 Conference, Hamburg 2005

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MARKETING 2.0 CONFERENCE
Paris, France 28/29 March 2011
www.marketing2conference.com

Buzz Power
of the Brand Messengers

Oct. 6th, 2005
Inus Hwang,
President of Azoomma Marketing Lab
http://aml.azoomma.com

AML by Inus Community Co. Ltd.
627-8 Yeoksam-dong, Kangnam-ku, Seoul, Korea Tel. 822-569-9910 Fax. 822-569-5754 E-mail. inus@azoomma.com

Buzz Power of the Brand Messengers

AML, Leading Company in WOM Marketing in Korea

Bacon, Tofu, Milk, Cheese, Diaper,
2005 Coffee creamer, Bank product, and
Home electronics, etc…….

Parenting the Brand
2003
★ Brand Messenger
Start the service
In WOM marketing Area

Building the
2000 community by word-
No 1. Community
of-mouth
of Married women
In Korea. themselves 2
600,000 members


The power of Azoomma(아줌마) in Korea

• Main consumer at the household economy
• 3 times’ power of communication as compared with Man
• Very powerful networking with on-off
• Urge to parenting the brand like as they parenting their baby

3


Buying Action: TV-Ad 30% < WOM 59%

Consumer Monitor Center by AML. Nov. 2004. (N=2,386) Over 20 age of Married women 4


Are you interested in the information
by WOM?
Yes → 84%

5 Very Interest
4 Interest
3
2 little
1 None



Do you refer to others when you like
a brand?
Yes → 82%

5 Very often
4 often
3
2 little
1 None



What category do you get by WOM?



Diffusion by 1Brand Messenger

8


What are “Group 1 …………….n” of Azoomma ?

• Family
• Friends
• Office
• Teacher of children
• Husband’s friend With the Powerful
• Hobby
• Church
Networking
• Neighberhood
• On-line community
• Beauty Club
Diffuse the Buzz
• Party
• Moms of children’s friends
• Education Group
• High-school friends…etc
9


AML’s WOM Marketing Schema based on IMC strategy

10


Case 1. KitchenForumTM – Hamsville Bacon

• No experience
• Unfamilia
• Not leading brand
in 2004

• Experience!
Meet the Rice and Kimchi
(Korean Basic food)

Rice & Bacon Party
(over the country ) 11


Promote each point of that

Experience
Sampling
Diffusion

Increase
Emotion
Reference Contact Point
-Brand
By WOM Community

Buying
Feedback

12


Case 1. KitchenForum – Hamsville Bacon

Flow of Rice & Bacon Party

① Recruiting ② Experience Kits ③ SFSTM
200 Seeder - Card: 200×100 = 20,000 - 3 times

④ Rice & Bacon Party ⑤ Tracking ⑥ Buzz 전파
(During 1 month) - BuzzTrackingCard - Total Buzz Reach
4,282 feedbacks 65,197.9
- Total 780 times of party - 58% Buying Action
- Total 5,955 person of party 13



Buzz Power of Brand Messengers

14



h
Reac
Buzz

* How Seeder’s Action
T-A. Right after party: Analysis of the Report by 200 messengers (N=195) [Consulting: Professor Kyoung-
Tracking T-B About 2 months later: Analysis of the Research about their action for buzz (N=84) ja Kim scholared in Consumer
P1’s Action in Catholic University of Korea]
T-C. 1 months later: Analysis of the feedback-data by PI (N=4,282)
T-D. 2 months later: Analysis of the Research about their action for buzz (N=167)
15



Buying Action

* How Seeder’s Action
T-A. Right after party: Analysis of the Report by 200 messengers (N=195) [Consulting: Professor Kyoung-
Tracking T-B About 2 months later: Analysis of the Research about their action for buzz (N=84) ja Kim scholared in Consumer
P1’s Action in Catholic University of Korea]
T-C. 1 months later: Analysis of the feedback-data by PI (N=4,282)
T-D. 2 months later: Analysis of the Research about their action for buzz (N=167)
16



Ratio of passing along the WOM / Buying Action

Ratio of Passing along WOM

Buying Action

Buying
Action
50% ▲

T-C T-D

17



Power of passing along the WOM to others
Compared between seeders and P1s

The Average number of
passing along By Seeder
7.48 person ▲

TB TC TD

18



Passing along the WOM in consistence by P1

Message from seeder Reason of buying Message to others

느끼하지도 않고 담백 담백하면서도 짭짜름한 담백하면서도 느끼한
하면서 기름기가 쫙 빠 맛이 아침에 김치와 밥 맛이 덜해 아침에 먹어
A(P1) 까지 얹어 먹으니 도 부담없이 즐길 수 있
져 아침에 편하게 먹어
정말 삽겹살보다 훨씬 다
도 부담없이 먹을 수 있 부담없이 편하게 받아
어 좋다. 들여졌답니다

B(P1) 간편하게 요리가능하고, 간편하고 맛있어서… 간편하게 요리할수 있
맛있다 고, 맛있다고

굶고 출근하는 경우가 아침식사로 김치랑 밥
C(P1) 간단하게 아침식사 해 있었는데, 한끼 아침식 만있으면 간편하게 해
낼 수 있다고
사를 해결 할 수 있으니 결된다고...
까

D(P1) 간편한 아침요리를 할 조리하기 간편하면서도 맛과 조리시 간편함에
수 있다 맛있다 대해

19



Brand Switching: Seeder > P1

Seeder P1

Non Experience Hamsville + others Other brands

20



Cost effective rather than TV ad.

TV-ad cost to get 6,484 of the Referal member

*CPM=3,000~5,500

Reach 3+ (Attention) : 100% (8,000,000) × 3

= 24,000,000 Impression
Recall : 5% (400,000)
Action: 2.5% (10,000)

Refer : 10% (1,000)

[Consulting: Dr. Se-sung Oh, scholared in statistics, by KOBACO(Korean Broadcasting of Advertising Committement)]
21



Estimation

• Cost to get 1,000 of referral member

Media cost 24,000,000 × 3,000(CPM) = 72,000,000

• 6,484 of referral member
Media cost 72,000,000 × 6.484 = 466,848,000
※(exception the cost of production and model)

• Our cost : 43,000,000

1/13 compared with TV ad
22



200 Agents

-Total Buzz Reach 65,197.9
-Referal Member 6,484
-Buying Action of the Reach 58.4%
-Occ for 1 Agent 325.9X

Now 2005, No 1 of M/S
23


Case 2. ValueSampling – Bosomi Cotton (Diaper)

200 Agents

-Referal Member 4,771.5

18% rasing up the sales
rather than last year
24


Case 3. KitchenForum & ValueSampling
– Coffemate Latte-creamer

100 Agents

-Referal Member 4,927

25


BuzzTrackingCard

Brand Campaign
& WOM
Message
Postcard

Refer to
others

26


BuzzTrackingCard

Research
Recipe

Consumer
Event
Benefit

27


Photos by seeders

28


Photos by seeders

29


What I’m Going to~

1. Analsys in effectiveness of Brand community
in WOM Marketing.

2. How track and manage the P2’s buzz….

3. How estimate the reasonable budget in Wom
marketing

Let’s Talk about ~
30

Thank you very much

AML by Inus Community Co. ltd
627-8 Yeoksam-dong Kangnam-ku Seoul, Korea

Tel. 822-569-9910 Fax. 822-569-5754
E-mail. azoomma@azoomma.com

CEO In-young (Inus) Hwang
Director Sang-yoon, Hwang

Buzz Power of Brand Messengers Drive Sales

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