Internet marketing case 2014 Spring KUBS

© 2014, Internet Marketing, Professor Janghyuk Lee
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Internet Marketing Cases
This document compiles ‘Internet marketing cases’ conducted by students who took ‘Internet Marketing’ course at Korea University, Business School, Spring 2014.
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 KUBS students and who were on exchange program from around the world.
Janghyuk Lee, Associate Professor of Marketing
September 3, 2014
http://biz.korea.ac.kr/professor/janglee

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List
Chipotle, U.S.: Scarecrow campaign + App game
Yuhan-Kimberly, Korea: Huggies babbling translator
Addidas, Korea: Innovation Lab
Volvo Trucks, Global: Live Test
New York Rescue Mission, U.S.: Make them visible campaign
Mini, U.S.: Not normal campaign
Coca-Cola, U.S.: Share a coke campaign

Chipotle Company Report
Jina Kim
jk6653284@gmail.com
Internet Marketing 2014 Spring Semester

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Table of Contents
Company Introduction
History
Business Units
Sales/Profit
Fast Casual Industry
Internet Marketing Activities
Chipotle ‘Scarecrow’
Conclusion
Reference

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Company Introduction – History(1)
Chipotle Mexican Grill: Fast casual restaurant chain (one of the first in the country) in restaurant in US, UK, Canada, Germany, and France, specializing in burritos and tacos.
Founded in 1993 at a former Dolly Madison ice cream location. Conscious of the ingredients of the food and taking action to use naturally raised pork, chicken, and beef by late 1990s and early 2000s.
McDonald’s Co. becomes major investor in 1998. IPO on NYSE 2006.
Steve Ells: founder and CEO of Chipotle driving the ‘natural ingredient’ business mission

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Company Introduction – History(2)
Mission Statement released in 2001: “Food with Integrity”
Efforts to increase use of naturally raised meat, organic produce, and dairy without added hormones in accordance to the company’s animal welfare standards
October 2012: 11th company to join CIW (Coalition of Immokalee Workers)’s Fair Food Program

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Company Introduction – Business Units
Pizzeria Locale Fast casual pizza concept Opened in l2013 as a new business expansion
Chipotle Mexican Grill Focused on menu of burritos, tacos, burrito bowls (burrito w/out tortilla), salads, all using fresh ingredients
ShopHouse Southeast Asian Kitchen
Asian-inspired cuisine
Opened in September 2011 as a new business expansion
CHIPOTLE MEXICAN GRILL CORPORATE

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Company Introduction – Sales/Profit (recent 3 years)
Revenue and net income have increased gradually; however, operating cost, while comparably insignificant, has also steadily increased in the past 3 years. Most operating cost derives from raw food ingredient, which is core to Chipotle’s mission and business philosophy, and labor, which Chipotle claims to pay higher than its other fast food competitors do
However the rate of financial growth has decreased from 2011~2012 to 2012~2013, most significantly, the revenue
Most sales come from Chipotle and its other business units only have marginal contribution to the whole revenue. Chipotle mentioned that this is mainly due to low brand awareness, lower sales, and lower operating experience than Chipotle.
2269548
2731224
3214591
214945
278000
327438
738720
891003
1073514
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
2011
2012
2013
Financial Information
Revenue
Net Income
Operating Cost
20.3
17.7
29.3
17.8
18.6
17.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2011~2012
2012~2013
Change (%)
Financial Changes
Revenue
Net Income
Operating Cost

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Company Introduction – Fast Casual Industry
Fast Casual: one of the fastest growing restaurant concepts in the past few years. Chipotle, with its focus on serving relatively high quality food fast and at an affordable cost, is one of the pioneer in this industry
Main values: taking the convenience of a fast food restaurant and providing a quality comparable to that of a casual dining. Main reason was consumer’s increased interest towards health and healthy lifestyle, thus healthy food. However, consumers still enjoy the convenient service of a fast food restaurant (fast and easy to take-away)  OPPORTUNITY
Chipotle leads the industry with growth rate around 20% and high consumer preference: huge growth opportunity for Chipotle
Success lies in Chipotle’s ability to differentiate itself from the traditional fast food restaurant as the leader of a new dining industry; i.e., to focus on operational efficiency while maintaining quality of service and food. Chipotle has been initiating aggressive marketing activities to overcome this problem.
Market Force (2012): Quick Serve Restaurants Research

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Table of Contents
Why use the internet?
Communication
Sales Channels
Recent Campaigns
Conclusion
Reference

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Internet Marketing Activities – Why use the internet?
Chipotle’s main target consumer segment has always been the Millennials
Millennials: generation of people now 18~34 years old
BCG Partner Christine Barton on the Millennials:
“The conventional linear and rational approach to marketing has been a process in which companies defined their brands and pushed brand and marketing messages at consumers. But this doesn’t work well with Millennials. Millennials want and expect a two-way, reciprocal relationship with companies and their brands. As a result, modern marketing has become an ecosystem driven by interactions among marketers, customers, and potential customers, who help define brands and influence their success.”
5 Elements: Reach, Relevance, Reputation, Relation, Referral
Engage more extensively with brands using social media and mobile devices (52% use social media to “like” a brand and 39% post product reviews)
With abundance of smart devices,
and heavy usage of internet and related connection services,
ONLINE MARKETING is the only way
to effectively and efficiently target the Millenials

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Internet Marketing Activities – Communication
Website:
https://www.chipotle.com/ (Official website, separate websites for each country)
http://www.cultivatefoundation.org/ (Official website of the “Chipotle Cultivate Foundation” fulfilling the company’s main marketing message)
Blog (+Tumblr)
http://blog.chipotle.com/ (information on events and recent marketing activities. Linked with tumblr to diffuse information in various ways)
Facebook Page
https://www.facebook.com/chipotle (direct communication with consumers and updates on promotional activities, separate account for the cultivate campaign
Twitter
https://twitter.com/ChipotleTweets (fulfills same role as the Facebook page)
Instagram
http://instagram.com/chipotlemexicangrill/
YouTube
http://www.youtube.com/user/chipotle (marketing campaign videos: history, past commercials, behind-the-scene etc.)
App
“Chipotle Ordering”
“Chipotle: The Scarecrow”

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Internet Marketing Activities – Sales Channels
Integration of online and offline channels:
Online fill-out order on https://order.chipotle.com/ and pick up in the nearest location
App fill-out order and pick up in the nearest location
No delivery or drive-thru service to maximize customization experience

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Internet Marketing Activities – Recent Campaigns
“Back to the Start”(2011)
First unorthodox advertisement of Chipotle’s “Cultivate a Better World” campaign
Aired during Grammy Awards 2012
“Scarecrow”(2013)
Second marketing activity of the “Cultivate a Better World” campaign
Animation film and game application released together to transfer the main message
“Farmed and Dangerous”(2014)
4-part series webisode released on Hulu.com
Comedy film, which is a satire of “Big Ag” and “Big Food” practices
Original content of Chipotle and Hulu
Chipotle well-known for unorthodox marketing campaigns to convey at times controversial message regarding food ingredients

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Table of Contents
Summary
Key Ideas
Result of Campaign
Conclusion
Reference

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Chipotle ‘Scarecrow’ – Summary
The second online integrated marketing campaign of Chipotle’s “Cultivate a Better World” Project: instant viral success
Campaign Review
Results
• Start: September 12th 2013
• 3 min animation on Youtube + Action/arcade game application on iOS market
• Diffuse message of cultivating a better world through the Scarecrow’s journey
• Over 5.5 million views in a week (total count over 12 million)
• Over 250 thousand app D/L in 4 days (US)
• Ranked in top 15 free applications in iTunes Store
•Epica Award (2013) and Annie Ad Award (2014) winner

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Chipotle ‘Scarecrow’ Key Idea 1: Fun
Beautiful animation and soundtrack of both film and game allows consumers to enjoy film without excessive exposure of brand name (which only appears briefly and are subtly mentioned throughout the film)
Intuitive and easy to play game application following the storyline of the film
Mobile device adjusted playing style to enhance the game experience ex – tilting the device to move the character

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Chipotle ‘Scarecrow’ Key Idea 2: Engagement
Instant rewards won through playing the games luring customers to constantly play the game
Sharing results through game center (iOS based game platform) allows customers to not only compete with other people and thus spend more time on the game, but also spread the game more effectively within the social network of the customer

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Chipotle ‘Scarecrow’ Key Idea 3: Story-telling and contents marketing
Empowerment Marketing: “new breed of advertising that inspires action by painting a picture of an imperfect world that can be repaired through heroic action” (Jonah Sachs, 2012)
Intriguing storyline built from a strong well-established message: our food is fresh and from sustainable sources, and we are contributing to cultivate a better world
Characters depict a clear image of the ‘artificial processed food’ and ‘natural food’, and message is further strengthened by the theme song “Pure Imagination”
While the target customer of this marketing and Chipotle are the Millenials, the message is universal to all people: i.e., the message reminds that people can make small changes to make a better world
Limit brand name exposure: the Millenials “are skeptical of brands that perpetuate themselves too much” (Mark Crumpacker, CMO of Chipotle)

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Chipotle ‘Scarecrow’ Key Idea 4: Easy diffusion on the web through social connections
YouTube Video link able to be shared through various social media services medium increasing exposure and attention to the film
Re-tweets of audiences enhance interests of viewers
Controversial issue creates debate leading to more attention
Causal Marketing: the main objective of the activity is to use causal factors and relate with brand name  positive reaction from audiences

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Result of ‘Scarecrow’ Campaign (Twitter)
Twitter: ForSight’s analysis on tweets from 12th~22nd: overwhelmingly positive at 98% (2% negative comments rise from criticizing the portrayal of the agricultural industry, rose a bit in 19th due to a parody video by Funny or Die calling out brand’s questionable claims)
Despite large social attention, effect on interest towards brand itself hasn’t changed much after the launch of animation

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Result of ‘Scarecrow’ Campaign (App Trend)
Average single player mobile game has 90 day retention of 45% and average frequency of use of 3.5 times per week  HIGH LEVEL OF ENGAGEMENT
Ranked #1 in Adventure Games section for both iPhone and iPad
Limited reach of customers: only distributed through iTunes store (62% of total smartphone market left out) and only device of iPhone 4S and above can use the application (30% of iOS users left out)

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Result of ‘Scarecrow’ Campaign (Youtube)
Daily view statistics indicates that the animation brought immediate attention during the first few days after launch
Attitude towards video fairly positive
However, the attention towards film is not long-lasting (the peak in Nov~Dec 2013 likely a result of social media or reviews)

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Result of ‘Scarecrow’ Campaign (Others)
Restaurant Social Media Index Ranking: 8th to 1st place in 2013 3Q in overall digital and social performance; 6th for social engagement, 3rd for mobile activity, and 2nd from 3rd place in consumer sentiment
‘Scarecrow’: more than 18 million conversations about the AD

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Table of Contents
Conclusion
Reference

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Conclusion
Two-sided result of ‘The Scarecrow’ campaign indicates that the success of online marketing activities doesn’t necessarily directly drive actual sales or long- term attention
The result of ‘Scarecrow’ itself was successful with praise from many critics and marketing experts – however, the message itself have created some backlash from customers who still have high doubts about how animals are treated in the dining industry
One possible explanation: previous animated film ‘Back to the Start’(2011) already had positive effects on sales
Other possible explanation: inevitable negative side-effect of any causal marketing: subjects like sources of raw food ingredient are bound to create heated discussion from both ends (ex – Chipotle’s more recent “Farmed and Dangerous” series sparked more controversies with more explicit causal marketing message)
Chipotle will need to continue investigating new ways to utilize its already strong social marketing stance in a more effective way to get across a controversial subject in the future

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Reference
Related URL
Chipotle official website https://www.chipotle.com/
Chipotle cultivate foundation official website http://www.cultivatefoundation.org/
Scarecrow game official website http://www.scarecrowgame.com/index.html
Chipotle annual reports http://ir.chipotle.com/phoenix.zhtml?c=194775&p=irol-reportsAnnual
“Chipotle Scarecrow Makes Enemies To Win Customers”, David Vinjamuri, Forbes, 09/13/2013, http://www.forbes.com/sites/davidvinjamuri/2013/09/13/chipotle-scarecrow-makes-enemies-to-win-customers/
“Chipotle’s comedy series is a new way to brand, but not all are amused”, John Wenzel, The Denver Post, 02/17/2014, http://www.denverpost.com/food/ci_25164115/chipotles-comedy-series-is-new-way-brand-but
“Consumer Brand Perception of Chipotle’s Ad Campaign”, Staci Aversa, crimson hexagon, http://www.crimsonhexagon.com/business-intelligence/social- analytics/advertising-effectiveness/consumer-brand-perception-of-chipotle-ad-campaign
“How Chipotle Uses Social Media to Cultivate a Better World”, Dan Klamm, 03/21/2012, http://mashable.com/2012/03/21/chipotle-social-media/
“Chipotle’s ‘Scarecrow’: 5.5+ Million Views and Counting”, Karlene Lukovitz, Marketing Daily, 09/18/2013, http://www.mediapost.com/publications/article/209285/chipotles-scarecrow-55-million-views-and-co.html
“Chipotle Scarecrow is the future of advergaming on mobile”, George Deglin, VentureBeat, 09/30/2013, http://venturebeat.com/2013/09/30/chipotle- scarecrow-is-the-future-of-advergaming-on-mobile/
“Chipotle #Scarecrow Campaign: Advertising or narrative and WHY it worked”, Lisa Peyton, 09/26/2013, http://lisapeyton.com/chipotle-scarecrow- campaign-advertising-or-narrative-and-why-it-worked/
“Fast Casual Industry Analysis 2014 – Cost & Trends”, Franchise HELP, https://www.franchisehelp.com/industry-reports/fast-casual-industry-report/
“Market Force Study Finds Chipotle is America’s Favorite Mexican Food Chain”, Boulder, CO, PRWeb, 10/09/2012 http://www.prweb.com/releases/mexicanfood/restaurantsurvey/prweb9985561.htm
“PRESS RELEASES: The Millenial Generation Is Changing the Face of Consumer Marketing”, BCG, 01/15/2014, http://www.bcg.com/media/PressReleaseDetails.aspx?id=tcm:12-152907
Top app charts “Chipotle Scarecrow” Analytics http://www.topappcharts.com/689470205/app-details-chipotle-scarecrow.php
“Chipotle outranked competitors on digital and social activity performance” Restaurant Social Media Index 2013 3Q, http://eatsleepeat.com/2013/12/06/chipotle-outranked-competitors-on-digital-and-social-activity-performance/
Video URL
“Back to the Start” (2011) Animation Video http://www.youtube.com/watch?v=aMfSGt6rHos
“Scarecrow” (2013) Animation Video http://www.youtube.com/watch?v=lUtnas5ScSE
“The Scarecrow – Behind the Scenes” http://www.youtube.com/watch?v=m3ZOFIE5e4g
“The Scarecrow Game Trailer (30 seconds)” http://www.youtube.com/watch?v=ko1GI5PW9iU

Company Report
Hyejun Park (2010120268)
Korea University Business School
juneopeye@gmail.com

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Contents
1.Company Introduction
2.Internet Marketing Activity
3.Huggies Babbling Translator
4.Reference
5.Campaign Performance Measurement

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1.Company Introduction
History
Business
Financial Highlight

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History
LG – Sustainable Growth
YK IS:
offering more than 20 consumer-goods brands with 1,366 billion KRW revenue (‘13)
BRIEF HISTORY OF YK:
1970
: founded as Joint Venture of Yuhan Corp. & Kimberly Clark
1970s~2000
: Introduced the first product line of current flagship brands
Huggies, White, Depend, Kleenex etc.
2001~2005
: Introduced the premium / advanced lines of existing brands
White with wings, Medium-size Depend, Huggies Magic Pants
2006~2010
: Certified as Authorized Economic Operator
: Won 3rd prize of Most respectable companies in Korea
: Reinforced CSR & greeny activities with regular programs such as “New Weds’ Plants”
2011~
: Certified as Sustainable Company
: Continue to contribute to the society & environment

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Business
• Baby/Child Care
• Female Care
• Housewares
•Skin Care
•Senior Care
•Industry Goods

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Financial Highlights
Rev.
Profit
(Unit: 100milion KRW)
(Unit: 100milion KRW)
Revenue
Profit

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2. Internet Marketing Activities
Communication
Sales
Recent Campaign

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Communication
YK offers information on company & brands through company’s & brands’ web site also with mobile sites optimized for mobile internet and small screen
1
Web Site
•Company Information
•Product Information
•Useful information to Target
•Sampling / Event
•Q&A
Company Web Site
Brands Web sites

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Communication
2
Mobile Site
Company Mobile Web Site
Brands Mobile Web sites

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Communication
3
SNS
Facebook page
On Facebook & Kakao Story where housewives, the target consumers, are accessible, brand page posts event / promotion or chatters on daily to involve the consumers

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Sales
Offline
Online
•Hyper Market : Emart, Homeplus
•Super Market : GS supermarket
•Convenience Store
•Department Store
•Drug Store :Olive Young
•Stalls
Products are available at most kinds of offline shops, and in online, at e-commerce and online brand stores
•E-commerce
•Open Mall; G-market, 11st, Auction
•General Mall; GSshop, CJmall, Lotte.com
•Social Commerce; Coupang, Tmon, WMP
•Brick & Click; Emart mall, Homeplus mall
•Price Comparison Site: Danawa
•Brand Shops
•Online stores
•Happy baby mall: Huggies official online store from Order, Payment, Delivery, to Mileage
•Mobile App
•YK shop: Hygienic Pad shop

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Sales
E-commerce
Brand Shops
Happy Baby Mall
YK App

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Recent Campaign
White Secret Holiday Campaign (Mar. ’14~Apr. ‘14)
Campaign
Encourage & Help working women to confidently apply for women’s secret holiday to theirs boss
Go to the campaign fb page (https://apps.facebook.com/secretholidaymain/) and send the Music video asking for the holiday to the boss and boss can immediately check the video and send response
Rewards: Draw for “Best boss” among the bosses who accepted the MV and reward the team

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Recent Campaign
Objective
To Expose White Secret Hole and other White products to target consumers in a trendy form
To Reinforce positioning of White as caring for women’s better lives to target consumers
Strategy
Promote the campaign through TV commercial, MGZ, online banner, and SNS
“Share” through SNS
White Secret Holiday Campaign (Mar. ’14~Apr. ‘14)

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3. Huggies Babbling Translator

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Huggies Babbling Translator
In 3-week of campaign, Got 500+ videos and 22MM+ watch (@Creativity-Online ADCRITIC, the global creative mkt site, #1 for 3 days)
Idea
“Huggies’ 2011 Christmas gift!
Huggies will translate your baby’s babbling!”
Campaign
Dec 9 ~ 31, 2011 in Korea (3 weeks)
The “Translators” translated baby’s babbling when mom had sent babbling video clips to the campaign
Huggies made 100 of the translation results into video and posted on the campaign youtube page
The results video could be shared via FB & Twitter
Youtube + SNS link
Rewards: 30,000 KRW gifts to all the uploaders and special gifts to the selected 100

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Objective
To Engage target consumers voluntarily by giving them benefits & joy via;
letting target consumers show off their babies’ lovely moments
amusing the target consumers with interesting translation of babies’ babbling
Results
3-week in:
Got +500 videos & Posted +100 translations
Youtube watch 22MM+ in total
Ranked #1 at Creativity-Online ADCRITIC, the global creative mkt site for 3 days
Google Trends The keyword “Huggies” has rose up from 31 in Dec. 2011 to 71 in Jan. 2012
After-survey found that all of uploaders were willing to participate in the next same campaign again if any, and 86% were very enthusiastic for the next one
Voluntary promotion through SNS Uploaders shared their own videos on avg. 21 times 3% of uploaders shared more than 100 times

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Fun to show off her baby’s lovely moment to everyone
Fun to videotape her baby’s adorable babbling
Fun to see the ingenious translations
Key Idea 1: Fun

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Moms with under 1-year baby can’t be away from the baby whole day
Easy & Quick participation is key to engage the target moms
Participation button for sending video in device(whether PC or Mobile) was directly available on the campaign-introducing youtube clip
Campaign accessible / Applicable on Mobile device
50% of campaign-introducing youtube clip watch was from mobile
Most of video sent was from mobile device
 The way of showing their babies’ translation results to others: 41.2% showing it on Mobile phone when meeting others in person
Huggies Babbling Translator Key Idea 2: Easy

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Voluntary promotion for the campaign & Huggies brand image
Participants shared their baby’s videos on avg. 21 times 3% of participants shared more than 100 times
The way of showing their babies’ translation results to others 41.2% showing it on Mobile phone when meeting others in person 16% sharing the clips on Cyworld mini homepage 14.7% sharing on FB 13.7% posting on Naver Blog
Huggies Babbling Translator Key Idea 3: Shared Contents

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Enhance brand recognition & Improve brand image
30K KRW coupons for all the participants to trigger trial
Key Idea 4: Brand Positioning & Encourage Trial

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4. Reference

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Reference
Related URL
YK Websites
http://www.yuhan-kimberly.co.kr/
http://www.kr.huggies.com/
http://www.depend.yuhan-kimberly.co.kr/
http://www.kleenex.co.kr/default.aspx
Facebook Pages
https://www.facebook.com/ilovekleenex?fref=ts
https://www.facebook.com/HuggiesKR
https://www.facebook.com/kotexwhite?fref=ts
Online shops
http://www.happybabymall.co.kr/
http://search.gmarket.co.kr/search.aspx?selecturl=total&sheaderkey=&gdlc=&SearchClassFormWord=goodsSearch&keywordOrg=gk&keywordCVT=%BF%C9%C6%BC%B8%D3%BD%BA+gk%2Cgk%2Cgk+%C4%C9%C0%CC%BD%BA%2C%BF%C9%C6%BC%B8%D3%BD%BA+gk+%B1%E2%B1%E2%BA%AF%B0%E6&keywordCVTi=1&keyword=%C7%CF%B1%E2%BD%BA&x=0&y=0
http://www.coupang.com/deal.pang?coupang=60384114&cateCode=BUA01&count= 16&q=%EC%83%9D%EB%A6%AC%EB%8C%80&rank=1

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Reference
White Secret Holiday Campaign FB page
https://apps.facebook.com/secretholidaymain/
Huggies Youtube page
http://www.youtube.com/user/HuggiesKorea/
Video, image, etc.
http://www.youtube.com/watch?v=aQsmXfulyas&list=PL2FA9C320A86CCF73

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5. Campaign Performance Measurement

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Campaign Performance Measurement
Youtube
Huggies Channel – Babbling Translator Campaign Playlist
http://www.youtube.com/watch?v=aQsmXfulyas&list=PL2FA9C320A86CCF73
Search
Google Trends
http://www.google.com/trends/explore#q=%ED%95%98%EA%B8%B0%EC%8A%A4
http://trend.naver.com
http://trend.naver.com/trend.naver?where=trend&mobile=0&startDate=200701&endDate=201405&dtype=&query1=%ED%95%98%EA%B8%B0%EC%8A%A4%20%EC%98%B9%EC%95%8C%EC%9D%B4&query2=&query3=&query4=&query5=
Reviews
http://blog.naver.com/guccibag?Redirect=Log&logNo=120149822646
http://blog.naver.com/misojo5a?Redirect=Log&logNo=120147184106
http://blog.naver.com/tjba282?Redirect=Log&logNo=148495355

54
End of Document

Adidas Korea
김민선
kimminsun@korea.ac.kr
Running

56
Company Introduction
History
Adidas was founded in 1948 by Adolf Dasslerf
Adidas AG is a German multinational corporation that designs and manufactures sports shoes, clothing and accessories such as bags, shirts, watches, and other sports- and clothing-related goods
The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas current official logo
Adidas Korea Corporation was founded in 1982

57
Main Business Units
Adidas Korea
Originals
Football
Running
Basketball
Training
Outdoor
Baseball
Accessories
Tennis
Collection
Adidas Korea
Men
Women
Kid
Target Consumers
Product lines

58
Sales/Profit (recent 3 years)
Became the market leader by 2012 thanks to Adidas Original series, and Performance, and Newly launched Outdoor line products + active marketing activities(ex) Adidas Rock Star event)
Nike Korea increase in sales 60~70 billion per year, whereas Adidas Korea increase in sales 120 billion per year(steeper increase in sales)
“Gazelle Shoes” series was the biggest hit, leading sportswear fashion, which directly led to large sales increase
Stella McCartney Line products captured Women customers’ interest and love; opened the first Adidas Women’s store in 2011, capturing Women customer segments which Adidas used to miss
0
200
400
600
800
1000
2010
2011
2012
2013
1 Billion Won
Year
Sales
Net Income
Nike Korea
Sales
• Steep increase in sales during 2011 and 15% increase in sales in 2012
• Became the top in the industry by 2012; defeated Nike Korea which used to be the leading firm in the industry
Professor, I was trying to distinguish between online sales and offline sales for detailed information-however, I searched through all financial statements at Dart, read through all the annotations in Income statement and Balance sheet; I could not find it. I’m sorry about that

59
Sales/Profit (recent 3 years)
• Various Marketing Activities for promotion of Adidas Korea
• What distinguished Adidas from Nike; success factor

60
Internet Marketing Activities
Communication
Web/mobile site: alladidas.com/running
• Provides detailed information about Adidas Korea Running shoes
• Q&A sessions to communicate freely with visitors
• Provide information and instructions about two marathon campaigns: 2014 Adidas MBC HanRiver marathon, 2014 Adidas MyRun Busan
• Fun http://alladidas.com/shoefinder/# for customers; which types of running shoes are the most suitable one for you?

61
Communication
Facebook
• 91,808 Likes, 7996 talking about Adidas Running Korea
• Everyday updates about current marathon campaign going on, information about new products, related Youtube ads, related links
•The most popular sites among Adidas Running Korea fans(the most number of likes and the most number of replies)

62
Communication
Facebook
• Frequent communications with visitors/customers via Facebook
• Quick replies and feedback toward customers’ questions or reactions

63
Communication
Twitter/ Youtube
• Comparably lack of communication through Twitter and Youtube
• Not many replies or re-tweets/ not many Likes on Youtube, or Share on Youtube
• Internet Marketing activities focused solely on Facebook

64
Sales
Offline Channels
• Via http://www.alladidas.com/running/739, provides customers with offline stores location and phone number all over Korea(exhibit captured Seoul area only)
• Flagship Stores
• Stores in Department store or Outlets

65
Sales
Online Channels: http://shop.adidas.co.kr
Mobile: http://m.adidas.co.kr
• Active Channel of Online Shopping Mall
• Lot of discounted products(on sale) online
• The first in the industry to launch mobile store in 2011
• Mobile Store targeted toward teenagers~20s: able to search through all stores in Korea; Reliable since it is delivered directly from offline shops; A/S guaranteed
• If purchased via mobile store, 5% points accumulated as well

66
Sales
Online Channels: http://shop.adidas.co.kr
• Collaborations and Exhibitions introduced in user-friendly way; easy to search, easy to see what kinds of products are provided, easy to find out the products of my interest
• Some products that are sold via “online only” with limited number and limited special editions, promoting online sales!

67
Recent campaigns
• 2014 Adidas MBC HanRiver marathon (held on 03.30.2014)
• 4 courses: Full course(42.195km), Half course(21.0975km), Boost 15km, 10km course
• Effectively utilized Facebook to arouse constant interest toward marathon; continuous updates + photo posts + information

68
Adidas Korea, “Innovation Lab”
Offline &Online Integration Promotion of Adidas new Running shoes called “SpringBlade” Selling not only the “Product” but also “Experience”
Campaign
Results
• Feb 12, 2014~Until Now
• Located in Adidas Flagship Store in Myeongdong
• Provides fun and engaging experience to customers through exotic looking Innovation Lab
• Facebook + SNS tagging #springblade with snapshots or reviews
Naver Trend
•Interest and Search for SpringBlade soared as the news, blog reviews and Facebook updates about new pop-up store Innovation Lab was on the launch

69
Results
Naver Blog Reviews Until today(2 + half months past):
•293 blog reviews about SpringBlade until today;
•121 blogs(41.2%) were posted about SpringBlade during the first month of launching Innovation Lab

70
Results
Results
Facebook Likes and Replies
•There were more likes about the product itself, rather than posts about Innovation Lab(guessing the interest for Innovation Lab shifted toward the product itself)
•Constant interaction between the visitors of Innovation Lab and Adidas Korea via Facebook replies
Youtube views
•The most views of SpringBlade advertisement concentrated in February when Innovation Lab was launched
•However, only 2 likes(including me), and shared only 1 time

71
Adidas Korea, “Innovation Lab” Key Idea 1: Fun
Exotic and fun-looking pop-up store
Interior as “Laboratory” which is interesting and innovative; makes visitors get curious about SpringBlade
Visitors can actually see creative design and technology that consists SpringBlade, and experience SpringBlade through given three missions

72
Adidas Korea, “Innovation Lab” Key Idea 2: Informative through intuitive action
Provide information and strengths about new running shoes SpringBlade
Get potential customers be friendly and familiar with SpringBlade
Laboratory environment, combined with staffs dressed as laboratory researchers; customers tend to feel the information given by staffs are reliable and scientifically true

73
Adidas Korea, “Innovation Lab” Key Idea 3: Experience
Customers given three fun missions to complete
1. Play the LED cube to find out about what SpringBlade is, and tag the card to Energy Circle
2. Find out technology within SpringBlade via videos and touching SpringBlade, and tag card to Energy Circle
3. Try “Spring Blade” for your own and get on running machine, and tag card to Energy Circle
The last mission was the most impressive for many visitors as they could experience running with nice shoes on, right in the middle of Myeongdong

74
Adidas Korea, “Innovation Lab” Key Idea 3: Experience
After all the missions are completed, log in Facebook to share the experience of SpringBlade, and show Facebook message received
Given three missions, and once completed those three missions, the potential customers are rewarded (choose btw Jump rope or Pushup Bar + Powerade beverage + energy bar)
Rewarding experience creates positive and agreeable attitude toward SpringBlade, and the brand itself, Adidas Korea

75
Adidas Korea, “Innovation Lab” Key Idea 4: Engagement through Social Network
After three missions, all visitors asked to share the experience of trying SpringBlade on Facebook
With “#springblade”, if people share their experience of SpringBlade with snapshots or reviews via SNS such as Facebook. Instagram, Twitter, they are rewarded with special and expensive prizes every week

76
Reference
Related URL
Adidas Running Korea Blog: http://www.alladidas.com/running
Adidas Running Korea Facebook: https://www.facebook.com/adidasrunningkr
Adidas Korea Twitter: https://mobile.twitter.com/adidaskorea
Adidas Korea Youtube: http://www.youtube.com/adidaskorea
Adidas Korea “SpringBlade” Youtube: http://youtu.be/aVuSUnz4U9U
Naver Trend: http://trend.naver.com
Video, image, etc.
http://blog.naver.com/PostView.nhn?blogId=92stylist&logNo=120211438185
http://blog.naver.com/PostView.nhn?blogId=sunni90&logNo=80209291324
http://cokity.blog.me/80207898838
http://blog.naver.com/tw402?Redirect=Log&logNo=80208402538

Company Report
Sang-hyeok Son
sonmokun@kroea.ac.kr

78
Table of Contents
1. Company Introduction History Business Report Financial Status & Recent Brand Strategy 2. Internet Marketing Activities 3. Volvo Trucks ‘Live Test’ Key Idea 1 : Target Broadening Key Idea 2 : Message Key Idea 3 : Accessibility Key Idea 4 : Parody 4. Conclusion

79
Company Introduction History
Subsidiary of Volvo Group with some other truck brands.
The first Volvo truck rolled off the production lines in 1928.
Global headquarters in Gothenburg, Sweden. And manufactures and assembles its trucks in 15 countries.
Volvo Trucks employed about 58,542 people around the world in 20113.
In 2013, a total of 200,274 trucks where delivered from the Group’s wholly-owned operations.
History Of Volvo Trucks

80
Company Introduction Business Report
Europe 41%
N. America 23%
S. America 13%
Asia 15%
Other Mkt. 8%
Business of Volvo and Volvo Trucks
65% of Volvo Group`s net sales share comes from ‘Truck’ business.
And over 40% of net sales for truck business occurred in Europe, 46% from North & South America, and15% from Asia.
Truck business is the main part of entire Volvo Group.
Sales Share of Volvo Group (2013)
Sales Share of Volvo Trucks (2013)

81
Company Introduction Financial Status & Recent
Trucks
2013
2012
2011
Net sales
178,474
189,156
19,8920
Operating Income
6,824
12,219
18,227
SEK M
-20
-10
0
10
20
0
50
100
150
200
250
2009
2010
2011
2012
2013
SEK M
SEK bn
Net sales
Operating Income
3-year figures of
Volvo Truck Business
After the great depression of 2009, sales and operating income increased continuously for 2 years.
However, figures of recent 3 years show re-declining tendency in not only sales but also operating income.
Volvo Tucks started to prepare some new strategies, including marketing programs, for re-boost up their business and sales.
Strategy Plans of Volvo Trucks

82
Company Introduction Brand Strategy
Volvo Trucks has many various truck brands to cover all of market needs.
From basic to premium, Volvo Trucks brand was renewed to deal with decreasing market situation.
As the top premium brand, ‘Volvo’ is targeted to satisfy high-end luxury customers.
Brand Strategy of Volvo Trucks

83
Table of Contents
1. Company Introduction
History
Business Report
Financial Status & Recent
Brand Strategy
3. Volvo Trucks ‘Live Test’
Key Idea 1 : Target Broadening
Key Idea 2 : Message
Key Idea 3 : Accessibility
Key Idea 4 : Parody
4. Conclusion

84
In fact, Volvo Trucks is now using lots of SNS to share values and experiences of their products. However there was not outstanding campaign through these various pathways before.
To success renewal brands, Volvo truck decide to revitalize
their premium brand unit, VOLVO
“Since September 2012 we have renewed our complete European product range and in connection with this intense launch period we wanted to create a campaign that communicated our products in a different way and that put focus on our technical innovation, hence the live-test campaign was born. The idea behind the campaign is to live test certain features in our trucks in a spectacular way.” - Marie Vassiliadis, Head of Volvo Trucks PR activities
*Buttons are directly linked to each SNS of Volvo Trucks

85
Table of Contents
1. Company Introduction History Business Report Financial Status & Recent Brand Strategy 2. Internet Marketing Activities 3. Volvo Trucks ‘Live Test’ Key Idea 1 : Target Broadening Key Idea 2 : Message Key Idea 3 : Accessibility Key Idea 4 : Parody 4. Conclusion

86
Volvo Trucks ‘Live Test’
Series of 6 video clips with excellence of Volvo Trucks
- Specific informations but also interesting and FUN
Campaign
• Start: Aug 15, 2012 ~ Nov 13, 2013
• 6 video clips in YouTube
• Provides superiority of each part of Volvo truck
• YouTube + SNS link + Mobile accessibility

87
94 million views and over 334,066 shares in YouTube (The most viewed automobile commercial on YouTube)
Results
•94,246,526 views and over 334,066 shares (The most popular and successful clip, ‘Live Test6’ has almost 72 million views) on YouTube.
•‘Live test’ series has been the subject of a huge editorial pieces online and the video earned an estimated media value of € 70 million.

88
Google Trends for BIG5 Truck Manufacturers Volvo Truck MAN Truck DAF Truck Scania Truck Mercedes Truck
Live Test 6
Market Share of Truck Manufacturers In Western Europe (2012)
Results
•At the peak of ‘Live Test’, which is ‘Live Test 6’, people searched ‘Volvo Truck’ much more than other competitors except ‘DAF truck’
•Compared to ordinary times, Volvo Truck got a huge interest when ‘Live Test 6’ was launched.

89
Volvo Trucks ‘Live Test’ Key Idea 1: Target Broadening
This new marketing campaign of Volvo Trucks segmented and targeted their viewers not only truck drivers or related industries businessmen.
Also campaign did not limit the range of viewers to expand effect for penetrating initial consideration set.
With ‘Live Test’, Volvo Trucks made images of friendly, young and high- tech automobile providers in people`s ICS.
“The goals with the campaign were twofold – building brand awareness among broad target groups and pave the way for sales to our core target groups. Creating spectacular video content that can be distributed in digital and social media is a powerful and cost effective way of reaching wide and engage our target groups in sharing and discussing the content.” - Marie Vassiliadis, Head of Volvo Trucks PR activities
‘Live Test’
By target broadening, Volvo Truck could put essential elements of their products in various ways. Different from traditional marketing campaign, Volvo and ‘Live Test’ focus on how wide and interesting they can do. So reaching as far as possible was the main purpose and also the reason ‘Live Test’ could success.

90
Volvo Trucks ‘Live Test’ Key Idea 2: Message
Each of clips contains specific message from Volvo Trucks.
Some kind of Ads with funny stuff or fancy image might loose their original purpose, the information. However ‘Live Test’ gives consumers what they should know about Volvo Trucks.
Although ‘Live Test’ is funny, these end-line messages made technical aspects of Volvo Truck still remain in viewers` mindset as a highly developed company ‘Volvo Trucks’
Ground Clearance
Stability and precision of Volvo Dynamic Steering
Volvo Dynamic Steering
Live Test 2 – “Hamster”
Live Test 5 – “The Technician”
Live Test 6 – “The Epic Spilt”

91
Volvo Trucks ‘Live Test’ Key Idea 3: Accessibility
YouTube is the most popular and the easiest way to share video clips these days. Users can access YouTube any time, any where through PC, tablet or smartphone app.
‘Live Test’ overcame the limitation of time and space by choosing YouTube as its sharing platform.
Ubiquitousness of YouTube was the cost-effective and easy accessible solution for Volvo Trucks to share their campaigns and to feedback.

92
Volvo Trucks ‘Live Test’ Key Idea 3: Accessibility
And as a SNS platform, YouTube is also connected strongly with other SNS services, such as Facebook, Google+, LinkedIn and so on.
Huge number of viewers were generated and they could easily share their funny experiences with their friends. So limited number of real consumers for Volvo Trucks was not a significant problem for ‘Live Test’ campaign.
Consequentially only by the expense of YouTube, Volvo Trucks reach potential consumers of itself and Volvo Group.
3,049,925 FB shares
80,078 Twitter Shares
489 blog posts
Live Test 6 – “Epic Spilt”
58,832 comments
Live Test 1
Live Test 2
Live Test 3
Live Test 4
Live Test 5
View
9,627,976
6,233,325
2,349,455
3,063,206
977,079
Share
17,065
7,233
1,880
2,058
986
71,995,485 views
304,844 shares

93
Volvo Trucks ‘Live Test’ Key Idea 4: Parody
The Last and the most successful clip, “Epic Spilt” was done by famous actor Jean- Claude Van Damme, as he carries out his famous split on the side mirrors of two reversing trucks.
Impact of this scene was so huge that many parodies were made by lots of others, even different industry company like Coca-Cola. ‘Live Test’ campaign could last longer than expected because of this voluntary participation of viewers. Just like ‘Gang-nam Style’ case, parody was the main reason that ‘Live Test’ spread out fast through the internet. The more parodies made, the more views generated.

94
Volvo Trucks ‘Live Test’ Key Idea 4: Parody
Basically ‘Live Test’ was planned to be enjoyed by viewers. Most of parodies and UCCs are created because the original is fun and interesting. Technical messages were impressive, but also funny and epic story of ‘Live Test’ encouraged online users to create parodies..
 ‘Live Test’ is the result of digging into online culture in the point of self-participation. This insight of Volvo Trucks could lead massive reactions from online space.
http://www.youtube.com/results?search_query=the%20epic%20split&sm=3
“I can say that we are completely overwhelmed by the attention these films and our trucks have received during this campaign. The response has been huge from media worldwide and from our target groups, noticeable particularly in social media and throughout our global dealer network.” - Marie Vassiliadis, Head of Volvo Trucks PR activities

95
Table of Contents
1. Company Introduction
History
Business Report
Financial Status & Recent
Brand Strategy
3. Volvo Trucks ‘Live Test’
Key Idea 1 : Target Broadening
Key Idea 2 : Message
Key Idea 3 : Accessibility
Key Idea 4 : Parody
4. Conclusion

96
Conclusion &
Internet Marketing is a opportunity for non-consumer p. goods company to keep in touch with their customers.
But without efforts after successful case, company cannot maintain its short-term market influence power.
After the campaign, Volvo Trucks’ search share goes back to the past.(②) And response from SNS stays in stable stage without drastic changes like before.(①, ③)
Rising quests for Volvo Trucks are how to keep their brand image in customer` ICS, and how to capture value continuously from customer and market by this proved internet marketing tools they already have.
①
②
③
Volvo Trucks need continuity

97
Reference
Related URL
http://www.statista.com/
http://www.volvogroup.com/
http://gr8marketingideas.com/2014/01/15/appeal-to-the-masses-reach-your- core-volvo-trucks-on-live-test-viral-success/
http://en.wikipedia.org/wiki/Volvo_Trucks
Video, image, etc
http://www.youtube.com
http://www.volvotrucks.com/

98
Search
Google
Google trends
http://viralvideochart.unrulymedia.com/
Twitter
www.topsy.com

Company Report New York Rescue Mission
Jonghun Eun
lovenpeace.jade@gmail.com

100
History
-Established in 1872 by Jerry McAuley
-Based on religious values
-More than 300 Rescue Missions in North America
-Purpose: “to provide help and hope for the hungry, homeless,
and hurting men and women of New York City”
Main business units
Residential Recovery Program
Career/Learning Center
Spiritual Programs
Work Therapy

101
Sales/Profit (recent 2 years)
-NYC Rescue Mission is an non-profit organization
-Supported by individuals, churches, foundations and businesses
-Less than 2 % of the revenues come from government funds
FY 2013
Total Revenues
Gains and Other Income
$8,138,030
Net Gain
$2,2783,240
FY 2012
Total Revenues
Gains and Other Income
$10,592,314
Net Gain
$5,777,690

102
Where does NYC Rescue Mission Spend money on?
129,532
18,069
22,061
13,260
4,625
727
56,583
Hot Meals Served
Food Distribution
meals
meals
nights
Nights Lodging
articles
Clothing Issued
hours
Learning Center Hours
hours
Medical Clinic/Social Service Hours
Therapy/Counseling Hours
hours

103
Communication
Web Site
Facebook
Twitter
YouTube
Click images to visit each channel
(1,262 follower)
(1,549 subscribers)
(2,982 likes)

104
Sales Channel
Through Web Site
Through Amazon
-Most of the individual donations
are done through web site
-Donations from churches and businesses are done by person to person selling
-direct donations through offices possible
-Individual can shop items in Amazon
and send them to NYC Rescue Mission
-Automatic Tax Refunds

105
Recent Campaign : “MAKE THEM VISIBLE”
-Interesting Experiment About Homeless and People Walking By
-http://makethemvisible.com
Click image to visit the campaign web site

106
Recent Campaign : “MAKE THEM VISIBLE”
-Interesting Experiment About Homeless and People Walking By

107
NYC Rescue Mission ‘Make Them Visible’
In 8 days of campaign, More than 2M YouTube Views, More than 1.6K Shares
Campaign
Results
• Starting Date: April 22nd, 2014
•Experiment about People’s Awareness of Homeless
• Via You Tube Channel and Web Site
• Provides people with very touching story about the perspectives toward homeless in NYC
• Creative Contents + Shares + Donations
In 8 days:
• Google search: More than Ever since org’s history -Increased search on ‘homeless’, ‘NYC Rescue Mission’, ‘Make Them Visible’, etc.
•YouTube Views: 2M +
•Shares through SNS: 1.6K +
•Donation Raised: $6,400 +
http://www.youtube.com/watch?v=u6jSKLtmYdM

108
NYC Rescue Mission ‘Make Them Visible’ Key Idea 1: Empathy
Video Clip that arouses people’s empathy
Very Touching Story that people can empathize
Non-directed Story by hidden camera -> More Acceptable
High Reality

109
NYC Rescue Mission ‘Make Them Visible’ Key Idea 2: Highly Engaging Promotion Video
Interesting Experiment: People are willing to watch
Hidden Cam Formation : High Engagement Affect
Easy to absorb in the story and situation
Production Process Opened : More Interesting

110
NYC Rescue Mission ‘Make Them Visible’ Key Idea 3: Easy to Share / Easy to Donate
YouTube Videos are very easy to share via various SNS channels such as Twitter, Facebook, and Google +
When clicking, it directs viewers to web sites
Donation process is not complicated

111
Reference
Related URL
http://www.youtube.com/watch?v=u6jSKLtmYdM
http://www.makethemvisible.com/

112
Search
Google trends
http://www.google.com/trends/explore#q=make%20them%20visible%2C%20homeless%20in%20NYC%2C%20NYC%20Rescue%20Mission%2C%20homeless%20experiment&cmpt=q
Twitter
Topsy

Company Report
Susie Choi
Department of Psychology / sjc8762@gmail.com

114
BMW Group
Bayerische Motoren Werke AG, commonly known as BMW
German automobile motorcycle and engine manufacturing company founded in 1916.
Headquarter is in Munich, Bavaria, Germany
parent company of Rolls-Royce Motor Cars
part of the "German Big 3" luxury automakers, along with Audi and Mercedes-Benz, which are the three best-selling luxury automakers in the world.
In 1916, BMW was established ( initially, BMW Company was dedicated to the development and production of airplane engines)
In 1923, the first BMW motor car was released
In 1994, BMW bought the British Rover
By 2000, Rover was incurring huge losses and BMW decided to sell the combine
 retained the rights to build the new Mini, which was launched in 2001
In June 2012, BMW was listed as the #1 most reputable company in the world by Forbes.com.

115
2007 - Takeover of the Husqvarna brand.
2007 - Opening of BMW Welt.
2005 - The Leipzig Plant starts up production.
2004 - The BMW 1 Series – Driving pleasure for the compact class.
2003 - Rolls-Royce Motor Cars launches new Phantom on the market.
2003 - Rolls-Royce Plant Goodwood.
2001 - The MINI – Premium in the small-car segment.
2000 - The BMW Group establishes a new trajectory.
2000 - The Eberhard von Kuenheim Foundation.
1998 - Rolls-Royce comes to BMW.
1994 - Acquisition of the Rover Group.
1994 - BMW goes to the USA.
1987 - BMW starts up in Regensburg.
1985 - BMW Technik GmbH.
1973 - Worldwide creation of sales subsidiaries.
1973 - The BMW headquarters and the Museum.
1972 - The founding of BMW Motorsport GmbH.
1972 - BMW starts up in South Africa.
1971 - BMW Kredit GmbH.
1969 - Motorcycles to Berlin.
1967 - New location: the plant group Dingolfing.
1961 - The New Class makes a breakthrough.
1951 - The BMW 501. The first post-war BMW automobile.
1945 - The Munich plant is dismantled.
1945 - Reconstruction difficulties.
1942 - Forced labour at BMW.
1941 - BMW in World War II.
1936 - Establishment of the “Shadow Plant” Allach.
1934 - Aero-engine manufacture becomes autonomous.
1923 - BMW R 32 – the first BMW motorcycle.
1922 - Company relocation and new beginning.
1916 - Establishment of BMW.
Timeline

116
Main business units
With BMW, MINI and Rolls-Royce, the BMW Group owns three of the strongest premium brands in the automobile industry.
In addition to its strong position in the motorcycles market with the BMW brand, the BMW Group also offers a successful range of financial services.

117
Focusing on “MINI”
MINI
•MINI is a British automotive marque owned by BMW which specializes in small cars.
•originated as a specific vehicle, a small car originally known as the Morris Mini-Minor and the Austin Seven, launched by the British Motor Corporation in 1959.
•In April 1959, the Mini was produced by BMC (British Motor Corporation)
•In the 1990s, BMW was seeking to broaden its model range through the addition of compact cars and SUVs. This sparked a series of compact car concept vehicles from the company during the early 1990s.
•In early 1994, BMW acquired the Rover Group from British Aerospace, which owned Mini, among other brands.
•Development of a successor began in 1995 and the new generation car was launched in 2001.

118
Sales/profit of BMW Group (2011 & 2012)

119
Sales/profit of BMW Group (2012 & 2013)
•Sales of MINI is consistently increasing in recent 3 three years

120
profit of BMW Group
< 2011 & 2012 >
< 2012 & 2013 >

121
Sales of MINI (2011 & 2012)

122
Sales of MINI (2012 & 2013)
•Sales of MINI had increased consistently 208,216(year2011)  223,214 (year 2012)  224,280 (year 2013)

123
Communication Channels

124
Communication
Web/mobile site :http://www.miniusa.com/

125
Communication
Blog : http://www.bmwblog.com/category/mini/

126
Communication
Facebook : https://www.facebook.com/MINI
Total # of likes =3.84 million

127
#2. Facebook page

128
latest 3 postings on Facebook
13,384 likes
8,265 likes
6,410 likes
 Quiet active communication with fans/users of MINI through Facebook

129
Communication
YouTube : http://www.youtube.com/user/MINI

130
Communication
Twitter : https://twitter.com/MINI

131
Communication
App

132
Communication
App
Users can use other Apps through MINI App

133
Communication
Instagram : http://instagram.com/MINIusa/

134
Sales Channels

135
Sales
Channels : Offline retailers
As a global company, the BMW operates 29 production
and assembly facilities in 14 countries
and has a global sales network in more than 140 countries.

136
Sales
Channels : Online store (http://www.shopminiusa.com/)
only sells accessories such as seat belt holder, mini chrome driving lights, etc.
Web site helps you to find best offers and dealers around you instead of selling the car directly through web site.

137
Recent campaign
‘ Not Normal ’ Campaign

138
Recent Campaign : “Not Normal”
Start: 2012.9.26
worldwide campaign conveys the brand's individual, high-energy attitude to life
"NOT NORMAL" shines the spotlight on MINI's strong, independent character  driving a MINI is expressing the way you live
Fusing offline (such as billboard) & online( various social flat form) very well
In the campaign, emotionally charged images of the MINI brand world and various MINI models are linked with the slogan "NOT NORMAL" and presented worldwide through all communication channels.

139
Using various communication channels
Classic Media
Digital Media
More than any other brand in the automobile industry, MINI represents a strong emotional and personal connection between the driver, the vehicle and the brand
Ex) print, film, outside advertising, etc.
Ex) Web site, SNS, digital video, etc.
MINI drivers love their cars so much
they are more like fans than owners
It's a relationship that's NOT NORMAL
MINI wanted to give everyone a taste of what it feels like to own one out campaign that was true to the spirit of MINI
“Not normal”  expression of individuality and unconventionality

140
This campaign launched by the online film "NOT NORMAL", which contrasts the greyness of everyday life with the bright colors of individuality and conveys the MINI attitude to life authentically and energetically

141
Part of ‘Not normal’ campaign
[ Example #1 ] Interactive Digital Billboard Campaign

142
Ex #1. Interactive Digital Billboard Campaign
Recent campaigns : Interactive digital billboard campaign
 Run by MINI UK, August,2013.
 Celebrating the not normal relationship MINI fans have with their cars
 Targeting individual MINI drivers who were passing by some billboards in London.
 Using new technology, they give MINI drivers tailor fun.

143
Ex #1. Interactive Digital Billboard Campaign
MINI trained human spotters close to the billboards to identify MINI s that would be driving by the signs and relay that information to other humans who then determined what messages to flash.
A sample of the individual appeals include, "Hey Cream MINI, what's your secret" and "Hello blue MINI driver”
Billboards even posted pictures of the MINI drivers.
MINI also added an experiential element in which drivers were offered a series of treats at nearby gas stations, ranging from smoothies to bacon sandwiches.

144
Part of ‘Not normal’ campaign
[ Example #2 ]
Art Beat Campaign

145
Ex #2. “ Art Beat ” Campaign
Recent campaigns : Art beat campaign
part of its ‘not normal’ campaign
interactive art installation, fusing digital design, music & social media
using MINI’s Facebook app, vine, or twitter, partakers are invited to design their own art beat
giving anyone a chance to stream a personal video of themselves live, projected directly onto a moving MINI cooper as it zooms around London’s city streets.
THEREFORE, MINI = mobile billboard !
MINI sends a customized clip of the car’s commute as a virtual souvenir, at the end of the journey.

146
MINI gives anyone an opportunity to participate this campaign and provides exciting personalized experience.

147
Recent campaigns : Art beat campaign

148
Result of ‘Not normal’ campaign

149
In 6 weeks :
•230,000 engaged with the campaign via social media
•millions watched the story unfold through digital out of home and PR.
•2,217 pieces of consumer content were shared
•29,420 new fans and followers were recruited
•# of twitter followers tripled
•3,853 visitors to the campaign hub went on to look for a new MINI on mini.co.uk  11% became qualified dealership leads.
Result of “Not Normal” campaign
Results

150
#1. Youtube
 over 6.3 million watched “Not Normal” campaign video

151
#2. Facebook page
 It also attracted people’s attention through Facebook page at that time(2012.9.26)

152
#2. Facebook page
I think this is b/c of ‘interactive billboard campaign’ run by MINI UK, August,2013.

153
#3. Google Trends

154
#3. Google Trends
I think this increasing point is also b/c of ‘interactive billboard campaign’ run by MINI UK, August,2013.

155
#3. Google Trends
I thought that it was because of MINI’s campaign…

156
#3. Google Trends
But it wasn’t… according to this !

157
#4. Naver Trends
 You can also see
that MINI’s campaign
didn’t really affect
Koreans according to
Naver trends.

158
Key Ideas of ‘Not normal’ campaign

159
Mini ‘Not Normal’ campaign Key Idea 1: Providing personalized experience (individualization)
MINI gives their users to make their own story and MINI provides customized experience.
‘Art beat’ campaign and ‘Interactive billboard’ campaign are good examples.
Art beat campaign shows users’ personal messages.
Interactive billboard campaign shows individual appeals such as "Hey Cream MINI, what's your secret" and "Hello blue MINI driver” and Billboards even posted pictures of the MINI drivers.
It enhances brand loyalty by providing personalized experience to their users.

160
MINI ‘Not Normal’ campaign Key Idea 2: very well targeted
MINI’s crucial target = young people
Nowadays, young customers’ willingness and desire to buy car decreased.
Therefore, many automobile companies such as Benz, Toyota, and Audi perform ‘digital campaign’ to attract young customers.
The young don't like traditional advertising. So Mini performs clever stunts and event marketing, through digital method.
Also, MINI invites fans to experience its brands at events where they feel comfortable and via social media.
Their campaign slogan, ‘Not Normal’ is appropriate for those young people who usually don’t want to be normal, but want to show their own individualities.

161
MINI ‘Not Normal’ campaign Key Idea 3: Fusing social platforms and offline media
Draw people’s attention and make them to participate through social platform, and then perform offline campaign
Take video or pictures of offline campaign and upload it on to various SNS channels.
‘Art beat’ campaign is a good example of integration
Users make their own contents through social media and MINI show them on London street.

162
MINI ‘Not Normal’ campaign Key Idea 4: Active communication through social media
Active communication with customers using various SNS such as Facebook, Twitter, Instagram, etc.
Using SNS, MINI draws more partakers. (people’s participation)
Using SNS, MINI gives opportunity to their users to make their own contents, and it results more strengthen relationship btw users and MINI
(b/c while users make their own contents, they feel proud of their MINI)
Using SNS, MINI tries to convey more personalized information and
introduce actual users’ stories which are less conventional.

163
MINI ‘Not Normal’ campaign Key Idea 5: Get to know more about users through MINI App
MINI app is connected to various apps such as Facebook, Tweeter, Four square, Music app, etc.
To activate MINI app, users have to be qualified through email.
MINI can track users by various apps connected to MINI app and MINI app itself.
So, MINI is able to collect more personal information about each customers.

164
MINI ‘Not Normal’ campaign Key Idea 6: Creative & fun using high-technology
Flexible high-resolution LED screen technology made MINI Art Beat come true
Using ipad and billboard installation, MINI performed interactive billboard campaign
Such high technology integrated with creative ideas gives their customers fun.
Especially, it is more attractable to young target who are more interested
in such high-tech and creative ideas.

165
Reference
Related URL
http://www.brandchannel.com/home/post/2013/09/06/Mini-Billboards- 090613.aspx
http://en.wikipedia.org/wiki/BMW
http://www.mini.co.kr/?cm=mcom_forward_direct
http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/unternehmen/historie/meilensteine/meilensteine.html
http://www.google.co.kr/trends/
http://www.youtube.com/watch?v=e5bEB0tmMQI
http://www.youtube.com/watch?v=6R_D4V-Ns3Y
http://adage.com/article/news/bmw-s-mini-fends-rivals-normal-ads/243609/
https://www.facebook.com/MINI?fref=ts
http://estima.wordpress.com/2013/09/08/teslatouchscreen/#comment-4991
Financial Report: http://www.bmwgroup.com/e/0_0_www_bmwgroup
_com/investor_relations/finanzberichte/zwischenberichte/2013/0913/_pdf/Q3_2013_BMW_Group_engl_Online.pdf

Thank you
Susie Choi
Department of Psychology / sjc8762@gmail.com

Company Report
Jonathan Cho (2014951331)
KU Business School
Oki_cho@hotmail.com

168
History
• Coca Cola began as ‘Coca Wine’, a replacement for Morphine invented by John Stith Pemberton
• Formula + Brand later bought by Asa Griggs Candler
• The Coca Cola Company was formed in 1892
• By 50th anniversary, Coca Cola was a national icon in the US
• First Coke Can in 1955

169
Main Products
• Coca Cola currently produces Coke, Diet Coke (1982) and Coke Zero (2005)
• There are also product variants per country/ region such as Cherry Coke, Vanilla Coke, Lime Coke and currently experimenting Coke Life
• The company owns 500+ brands in over 200 countries

170
Main Business Units
• 7 main business units
• 5 regional units for marketing/ distribution in Eurasia-Africa, Europe, Latin America, North America, and the Pacific
• 1 unit dedicated to Bottling Investments
• 1 Corporate business unit for corporate strategy and direction

171
Sales & Profits

172
Sales & Profits
• In 2013, concentrate sales volume and unit case volume both grew 2 percent from 2012. Likewise, in 2012, they grew 4 percent from 2011. This was primarily due to the timing of concentrate shipments and the impact of unit case volume from certain joint ventures in which the Company has an equity interest
• Gross profit margin increased to 60.7 percent in 2013 from 60.3 percent in 2012. This is partially due to the deconsolidation of the Philippine bottling operations in January 2013 and the Brazilian bottling operations in July 2013.
• Gross profit margin decreased to 60.3 percent in 2012 from 60.9 percent in 2011. This was due to the unfavorable impact of increasing commodity costs in 2012. In addition, ongoing fluctuations in foreign currency exchange rates and the impact of the acquisitions in North America, Vietnam, Cambodia and Guatemala added to the effect.

173
Communication
Facebook
Twitter
Youtube
Flickr
Default web: http://us.coca-cola.com/home/
Facebook: https://www.facebook.com/cocacola
Twitter: https://twitter.com/CocaCola
Flickr: https://www.flickr.com/groups/thecoca-colaco/

174
Communication

175
Communication
Integrated with:
Google+ Facebook Twitter

176
Sales
• Vending Machines
• Coolers
• Beverage Fountains
• Supermarkets
• Cafes
• Restaurants
• Convenience Stores
• On Site Promotion

177
Sales
CokeSolutions: B2B platform
• Aids in business partner sales + strategy

178
Recent Campaigns
• Promotes healthy living
• A focus on cleaner environment
• Main role is to educate
• Provides various programs
• Locates nearest beverage fountain
• Connect and play the PUSH!+Play game
•Special offers through ‘Freestyle ‘ App
• Buy coke product
• Register as member online
• Enter product codes to get points
• Gain rewards over time
• Conglomerate hub for all major Coke campaigns
• Easy access to all Coca Cola communications and Social Networks

179
Recent Campaigns

180
Recent Campaigns

181
Recent Campaigns

182
Recent Campaigns
• Coke “The AHH Effect” Campaign
• Targeted at Teens
• 61 Unique sites
• Various online activities
• Games, Facts, SNS
• Aims to help teens rediscover Coke
• 2013: 7.5 Million visitors
• Average 6 minutes/ visit
• Linked to 2013 Superbowl advertisement

183
‘Share a Coke’ Campaign

184
‘Share a Coke’
Campaign
Results
• Start: September 2011 & ongoing globally
• Australia chosen as trial country
• Implemented across the world later
• 150 most popular Australian names printed onto cans and distributed
• Estimated cost of AU$5 million
• 7% increase in Young Adult Coke consumption
• 870% increase in Facebook page traffic
• 18,300,000+ media impressions published
• Ranked #1 Facebook page in Australia
• Ranked #23 Globally
• 378,000 cans printed and shared across AU
• 29,000 Tweets

185
‘Share a Coke’ Key Idea 1: Personalisation
• Kiosks which print own name onto cans on the spot
• Involves the consumer actively
• Induces sense of belonging with the Coke brand
• Also have kiosks with set choices for easy decisions

186
‘Share a Coke’ Key Idea 2: Sharing
• Allow sharing of real personalised coke cans and bottles
• Also online virtual coke sharing via Facebook, Twitter, and Mxit
• Induces fun and socialisation
• Consumers invited to SMS a friend’s name to be posted on a real time billboard
• TVCs, featuring montage of friend’s profile photos who shared their names, aired on TV

187
‘Share a Coke’ Conclusion

188
‘Share a Coke’ Campaign Conclusion
• The first graph shows a major spike in Google search interest during the campaign in Australia for 2011
• Despite the campaign success, AU coke sales have steadily been dropping after the end of the campaign
• The second graph shows the world situation wherein sales are steady overall but interest spikes during specific campaigns for ‘Share a Coke’ over the world
• Overall, the campaign produces spontaneous large volume results but has little long term effect

189
Conclusion
• The “Share a Coke” campaign can be seen as successful as it boosted coke sales worldwide and increased brand awareness through social media
• However, as noted, this is spontaneous and the positive effet of the campaign does not last long
• Coca Cola continues to utilise social media through its current major “The AHH Effect” campaign worldwide to keep sales and social interest afloat
• Overall, Coca Cola must realise that consumers are more engaged in the brand if the Coca Cola campaign becomes relevant to them on a personal level
• Coca Cola should opt to utilise both online and offline marketing to ensure the success of “Share a Coke” and its likes continue into the future

190
Reference
• http://us.coca-cola.com/home/#
• http://www.coca-colacompany.com/our-company/infographic-coca-cola-at-a-glance#TCCC
• http://www.cokesolutions.com/Pages/Default.aspx
• http://www.livepositively.com/get-involved/
• http://www.coca-colafreestyle.com/
• http://www.mycokerewards.com/howItWorks.do?WT.ac=mnuHIW_PO
• http://www.ahh.com/
• http://www.marketingmag.com.au/case-studies/share-a-coke-campaign-post-analysis- 15944/#.U16UaPmSwTk
• http://www.theguardian.com/media-network/media-network-blog/2013/jul/24/share-coke- teach-brands
•http://www.google.com/trends/explore#q=coca%20cola%2C%20share%20a%20coke&cmpt=q

Internet marketing case 2014 Spring KUBS

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