read the document, and complete the VI.Campaign Evaluation, and Conclusion. ( according the table of content of the document)Please use APA format, and write 3-4 pages.
advertisng_international_team_final_paper__.docx
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Running Head: ADVERTISING REPORT: INTERNATIONAL PROJECT
Advertising Report: International Project
MKT3362
ADVERTISING REPORT: INTERNATIONAL PROJECT
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Table of Content
I.Introduction
II.WeChat
a. Company Overview ································································· 4
b. WeChat Services ···································································· 5
III.Market Analysis
a. Industry Overview ··································································· 5
b. Industry Competitors ································································ 5
c. SWOT Analysis ······································································ 5
d. Target Market ········································································· 5
IV.Advertising Project
a. Project Budget ······································································· 6
b. Media Plan ············································································ 8
c. Creative Concepts ··································································· 11
V. Market Integration
a. Advertising ··········································································· 14
b. Sales Promotion ····································································· 14
c. Personal Selling ······································································ 15
d. Public Relations ····································································· 15
e. Direct Marketing ···································································· 16
VI.Campaign Evaluation·········································································· 14
VII.Conclusion ····················································································· 18
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I. Introduction
China’s government banned Facebook, Twitter, YouTube, and Instagram in the
mainland, China due to their protectionism. It is impossible to provide and use a foreign
service in China. However, Chinese service and goods are seeking to be a global leader,
especially; WeChat is trying to be a global leader not only in the local market but also around
the world. Our team decided the topic as WeChat, the dominant social network service as
well as mobile messenger application in China. SNS and messenger apps are frequent
service, and exciting product to current students who use mobile messenger apps in every
day, everywhere.
II. WeChat
a. Company Overview
WeChat is a mobile messenger app with social networking service in a multi-billion dollar
company called Tencent, which is known as current new Tesla stockholder. Tencent is the
Asian second greatest internet company after Alibaba Group. Also, Tencent also provides
dominant PC messenger service “QQ.” WeChat was released as “Weixin” in January 2011.
The company changed the name to “WeChat” to operate the service at the global level. Still
Chinese called Wechat as Weixin. 90% of Chinese use WeChat in current, WeChat provides
twenty languages, including Chinese, English, and Korean. Although the dominant users are
Chinese, it supports account registration via SMS in at least 200 countries and regions (Preze,
2015). According to Statista’s data, the number of monthly active WeChat users is 890
million in 2016. WeChat is currently a central launch pad for Tencent’s further revenue
growth. Tencent reported $1.5 billion profit in last year. The major key for high revenue was
the increase of WeChat (Russell, 2016). Tencent set up the office in the U.S. and East South
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Asia in 2013 to grow globally, but the company has not made a significant result in the U.S.
due to social networks dominances, Facebook and other U.S. social networks. On the other
hand, Wechat has had an impact on the Indian market. The company focused on Indian tastes,
not focused on competitors. WeChat has provided differential emoticon for the Indian
market, and has worked with famous Indian celebrities as well as has partnered with major
Indian corporations such as Café Coffee Day, Big Bazaar, Yahoo Cricket, and PVR Cinemas
(Choi, 2013). Therefore, WeChat could generate many users and the greatest dominance
messenger app in India. WeChat also has provided local services such as Easy Taxi in
Malaysia, Thailand and the Philippines and the food delivery service Foodpanda in Hong
Kong, Thailand, Singapore, Malaysia, Taiwan, Philippines, and India (Graziani, 2015).
Despite the failure in the US market, Tencent announced they would provide WeChat’s ecommerce platform for British companies to use to sell goods in China. The e-commerce and
payment services will provide in Europe as well as the UK (Murgia, 2017).
b. WeChat Services
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WeChat has a similar design to WhatsApp, Kakao Talk, Line, and SnapChat. WeChat
users can send a message as free likes sending text messages, and users can share a photo,
video, my location, and my friends’ contact number. This app also has
similar profile functions of Snapchat’s my story. Moments section in
WeChat is the function that can share one user’s current photo with the
user’s friends. This section served as the foundation for social network
service. The most impressed thing is users can limit a communication
within their contact list in WeChat. Users can contact each other after accepted to be friends.
Another interest points are “People Nearby, Shake, Scan QR Code, WeChat Out.” People
Nearby service shows friends nearby me and shows the actual distant used by GPS. Shake
service enables people can make new friends when shaking a phone; this service finds people
shaking their phones as well. Users can have own QR code via WeChat; users can meet or
add a new friend via their QR code. Using QR code, users automatically are scanned, and
directly added to users’ contact list. Not only these interesting points, but also WeChat users
can use service on PC, play games, send money, make video calls, order food, read the news,
book a doctor appointment, and make flight reservation (Heath, 2015). WeChat’s primary
sending message method is the voice message while most messenger apps hide voice
message section on the side menu. This character gives convenience to dominant users,
Chinese who should put the difficult Chinese words on the phone.
As mentioned above, Tencent announced to launch e-commerce and payment service
in Europe. Now the topic is WeChat Payment. Tencent is seeking to be a dominant social
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network with WeChat Pay. WeChat payment is the type of Fintech mobile payment service
combined WeChat which operated by Tencent. WeChat Pay is a mobile payment service as
same as Samsung pay and Apple pay, but it has a virtuous cycle because after finishing the
payment, it also generates marketing to customers who combined with WeChat official
accounts. China has large isolated environment an internet companies have come up with
ways aimed to make consumers pay, which has been either through the in-app purchases or
through the transaction fees. It decidedly focuses on connectivity, morphing what once was a
sole messaging platform into an essential mobile portal for making bookings, payments,
filing police reports, hailing taxis, booking doctor appointments, playing games, accessing
banking services, and video conferencing (Kontsevaia, Diana & Paul Berger, 2016).
According to WeChat Pay guide, WeChat pay is used by customers averaged a billion
times per day. WeChat has a variety of payment methods via Quik Pay, QR Code, In-App
Web-Based, or Native In-App payments. Also, it supports settlement across major foreign
currencies. Although users pay in CNY, the transaction is settled in a foreign currency.
WeChat failed to attract customers in the last times, but our team firmly believed
WeChat can success now in the US considered their high platform and innovative service
such as WeChat Pay.
While other social Medias are focusing or seeing their growth by the number of daily
or monthly users on their networks, the case with WeChat cares mostly over how relevant
and central it is when it comes to addressing daily and even hourly users’ requirements;
Instead of putting its focus to build a world’s mobile lifestyle, and addressing each and every
user aspects of life. The company has worked hard to ensure that its product is successful and
enjoyable.
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III.Market Analysis
a.
Industry Overview
According to Statista’s Global
mobile messaging app growth data in
2016, although the usage growth rate for
mobile messaging and social apps and
total mobile apps worldwide from 2014
to 2016 indicated down trend. In 2014,
messaging and social apps’ year-on-year
usage sessions growth was 103%, but it
has dropped to 44% in 2016. However, as
of November 2016, 77% of online adults
use social networking sites. Also, people
of all ages show growing trend (Caumont,
2012). The most popular social
networking sites operate messenger application on the phone. It estimated that about 1.4
billion people were using messenger apps in early 2016. According to Skilled sites, the
expansion of messaging apps started with the launched of blackberry in 2009, WhatsApp
launched in 2010 in the United States, Line, WeChat, Kakao Talk began in 2011.
There are many reasons why most popular social networking sites have messenger
services. The main reason is social networking sites, and messenger applications are same
products, or the same company operates them, so people can use both by correlating. Also,
LTE (Long-Term Evolution) provides faster speed for smartphones. LTE is an optimized
service for IP traffic, so it is suitable for mobile messenger service support. Second, many
users can choose mobile messenger app as an alternative to SMS (Short Message Service). In
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the case of SMS, people should pay for service plans, but mobile messenger apps are free, or
it is closed to free. People need not pay for using messenger applications as long as they have
Wi-Fi. Mobile messenger service provides a variety of functions to users. The service enables
sharing rich media; users can send a photo, video, voice message, emoticon, avatar, and
location service. Another reason is SMS limit to one to one communication, but messenger
service apps enable group communication within their service.
b. Industry Competitors
According to Statista’s Social network sites worldwide ranked by some active users in
January 2017, Facebook is the king of the mountain. The second (WhatsApp), and third
(Facebook Messenger) also are operated by the Facebook company. Other competitors are
Snapchat, LINE, Telegram, and Kakaotalk.
Facebook reported $8.81 billion revenue in the fourth quarter, 2016. This social
network had 1.86 billion monthly active users as of the end of 2016 (Fiegman, 2016). This
company’s competitive advantage is an extraordinary number of users. In mid 2015s, users in
Facebook spent their time, an average of 42 minutes (Tracy, 2016). Regarding a tremendous
number of users, they have provided new marketing strategy included Facebook page
conversions, messenger chatbots, live, marketplace, workplace, and recommendations from
friends as well as existed marketing strategy (Sills, 2016). Facebook could make many users
because they focus on individual demographic interests to reach specific targets (Banerjee,
2017). Although the target markets are composed of young people, Facebook has many older
users, so their target market is wide rather than other messenger apps as well as social
networking sites.
It is easy to see that young people use Snapchat. Snapchat’s users are young people
under 35 ages, and it is accounted for 83%. Snapchat launched in 2011. The numbers of
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Snapchat daily active users are 158 million, and 301 million users are active monthly (Smith,
2017). Snapchat is famous due to a unique approach to mobile messaging. Snapchat has a
similar function to WeChat. They provide Story service; users can update their photo and
video, and users can only be viewed the updated things within 24 hours. Snapchat has their
functions while WeChat’s services are similar to various messenger apps. Snaps only last up
to ten seconds, it can build up people’s curiosity, anticipation, and it is strong to protect
user’s privacy. The main strategy of snap chat is a content strategy. Snapchat provides
primarily for the daily story component through video in which users share their day
(Stelzner, 2016).
c. WeChat SWOT Analysis
Strength
Weakness
•
890 million users
•
Fierce competition among industry
•
Strong company finance
•
Facebook’s dominance
•
Various platform and unique platform
•
Previous failure in the US
Opportunities
Threats
•
Diversification of Fintech and O2O
•
Rapid change Customer needs
•
International strategy in other countries
•
Rapid technology change
•
Expansion of App store market
•
Competitors unique strategy
•
Increase smartphones users
d. Target Market
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To success in the US, Our team decides to focus on young people. Looking at
competitors demographic users statics, Facebook’s main users are the age of 18to 29, 88%
and the next age group was 30-49, 84%. Another competitor who is current popular social
networking application, Instagram, the dominance customers are also the age of 18 to 29 with
59% (York, 2017). According to Statista’s Share of smartphone users in the United States
who use mobile messaging apps as of April 2016, by age group, the age of 18 to 29
accounted for 42%. The main active users are the age of 18 to 29. Therefore, catching the
young people who can utilize all WeChat’s platforms is important.
VIII. Advertising Project
Advertising is the best and expensive way to get more customers. However, many
suggestions which can make each and every advertisement spend worth it; ranging from
expensive advertising like using famous celebrities like Prince Royce, Taylor Swift, and
Maroon 5 to cheaper advertising done through YouTube, Instagram celebrities, all these can
be used in making WeChat more famous.
With the new digital information era, which has different types of exchanging or
sharing information channels, the potential of advertising through social media is unlimited.
The experience of sharing from one customer by social media can drive big changes in sales
improvements. Thus many companies today are willing and more likely to spend in a social
ad With Twitter, YouTube, Facebook and many other social networks filled with millions of
consumers. Preferably YouTube advertising will be the best choice if the WeChat wants to go
global. Their digital marketing plan should utilize the social media exposure to bring the
business to another new level.
Ad One currently is managing many platforms which include Twitter, Facebook,
LinkedIn, Foursquare, and many others. Their designing campaign goals involve; driving
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relevant reach, increasing a number of fans and followers, increasing social content reach,
creating loyalty, driving site visits, and boosting brand visibility.
For WeChat to gain from growing their audience, boosting their brand visibility,
enhancing better engagement with customers and increasing the conversion rate, it has to
work closely with world’s largest Medias like YouTube they want to meet their specific
business goals. To come up with tailor-made solutions, the advertising team has to do the
following;
The media planning; well plan will translate to success and goals are made clear in
the planning stage.
Social Media Type Advertising Cost (Daily)
$200 to $1,500
Benefits
1.
2.
3.
4.
5.
Large target audience
Flexible and convenient
Strong impact
Mass coverage
Multi sensory appeal
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$150 to $500
1.
2.
3.
4.
5.
6.
Cost effective
Massive audience
Extensive analytics
Improved brand awareness
Upward trending
Enhanced customer loyalty
$200 to $500
1.
2.
3.
4.
5.
6.
Increased engagement
Builds trust and personality
Increased traffic
Competitive advantage
Target market reach
Free advertising
$300 to $900
1.
2.
3.
4.
5.
6.
7.
Long advert durability
Affordable
Shareability
Measurability
Adjustable
Obtains consumer feedback
High effectiveness
Targeting criteria: After coming up with a solid plan, the audience parameters,
behavioral trends together with developing a hypothesis must be decided carefully.
Developing Ad: Ads must be well designed to match the plan and the criteria together
with its innovative approach.
Testing: Running trial launching to ensure every Ad format in the predetermined
social platforms function and look, as it was planned and determining optimal execution
approach.
Reporting: Results must be made measurable, with insights, ad performance and
recommendations for next stages should be provided to have a clear picture of results.
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He advantages of advertising through the YouTube are many. Many people today are
spending more of their times on the YouTube than many other media channels. Managing
YouTube exposure is always very important to any business growth, with its extensive
leverage and analysis thus driving loyalty and advocacy to their clients (Kuang & Wenbo,
2017).
c. Creative Concepts
For this campaign, our target market is young people who are used to using cellphone
and social media, they interested in new technology and want to get more convenience.
Basically, Wechat can be classified as a cellphone application. There are so many useful
functions in Wechat, that is mean users can use all functions just by cellphone almost
whenever and wherever as long as network exists. As we know, cellphone is seemly
becoming a very significant part of our body, we bring it with us every day. We are more and
more relied on cellphone application. For example, when we are going to hang out with
friends who live in different place, we need told them where we can meet, and if they have no
idea where is the place，normally they will use Google map search the place and follow it;
Also, when we need send money to somebody because of certain reason, we can use Paypal
or mobile banking to do it; When we need a taxi, Uber will help us. However, basically,
different function from different application. Today, almost all young people get used to
using social media keep touching the world, if we can use these functions by a social
application, that should be very convenient. Thus, we need to let our potential customers
recognize …
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