The mobile phone and music business is very competitive. O2 stole the show with iPhone and has taken market share as a result. The latest development in the industry is with Orange launching a free music service. This is a first for a pay as you go service. It is all too easy for a customer to opt out without a contract..The challenge is for Orange to create a service people want to be part of and therefore create loyalty to the brand..
They will target 16-24 age group and offer a whole range of services that this group love. They are keen users of social networking and this service gives the chance to create and share playlists. Orange will partner with Universal Music to give access to thousands of tracks from the like of Lady Gaga, Duffy and Mika to name but a few.
The service which is called Monkey will be more of a club that people want to join and not to be bound because of a contract. This will include exclusive music, artist reviews and competitions. There will also be free texts as a part of the deal.
Universal for its part will promote Monkey via its 4Music channel. The challenge as with all free services it to monetise. The 16-24 year olds are very difficult to reach. If Orange can build Monkey to a sizeable force then it can give brands the chance to target them with targeted offers.
Marketing Lessons– Building new customers and monetizing free services. Joint ventures
We all know those rainbow coloured plastic shoes. Ugly they maybe but they are worn by young and old alike. Indestructible is the name. So, why did Croc use reality TV- the Apprentice in the USA to campaign to donate crocs to charity?
Let’s look at the growth of the business first. The company is young and in 7 years sold 100 million pairs globally. A success indeed but the challenge is not to sell the first batch of products but to build the business. It is all in the value offered to the customer. The problem was that Croc went mass market. They were copied, rapidly becoming a cheap commodity. Croc lost £113 million last year and cut jobs. It has generated 1.4 million Facebookers who are campaigning to abolish Crocs.
Ugg boots faced a similar issue. They have managed the brand better and moved to focus on a niche and refresh with new boots, which fortunately for Ugg need replacing.
Marketing lessons. For the marketing assignment you could examine that Croc needs to think long term about the brand and how it can be positioned to offer value. It could have focussed on the childrens market and moved into games and toys or clothing. That would have removed the ability to commoditise the product so that it is copied in every pound store around the country. For the marketing exam use the segmentation aspect to show how Croc needs to target its market
In just 3 years Twitter has become a phenomenon and is at the fore front of changing how we communicate. It is real time, and is enjoying the fastest ever growth for a website. It has increased staff to 50. This year has seen it overcome the expansion in technology that is needed to grow so rapidly
Biz Stone, its co founder comes from a series of social media businesses such as Blogger. He believes that Twitter has only touched about a minute percentage of its potential. He reportedly refused a bid from Facebook for around $500m.
Why then is he so confident that Twitter can turn growth into a long term business? It seems that its ability to influence large groups of people is the key. Take the recent impact on the Iranian elections, its use communicating the earthquake in California in 08.
After a year of rapid growth he can now plan to build the business long term. The use of Twitter by corporate businesses is the key to monetising the business. Dell and JetBlue have had a great deal of success in using the platform.Corporate accounts are interested in effective communication. The information that Twitter holds on its users and the statistical insight is the key and something that businesses will pay for. From here understanding users needs more and more will give Twitter the opportunity to build a long term business.
Marketing lessons. Business growth, monetising and branding
We have seen the rapid rise to fame of Twitter and Facebook. Everyone is using it in some way or another. For business today it is essential that we are able to keep up and make the best use of the budget in difficult times. I came across Social Media Matrix. it began to make sense and the links from Twitter to Facebook and UTube are the keys. Take one as the focal point for your campaign and then feed the others in. Use Utube for videos of your product and think of it as your own personal TV channel. Facebook is the newspaper and print while Twitter is the pre business chat. All very interesting. The question is making the best use for business. Try not to think about social media as a selling tool but as longer term relationship building
The sponsorship of key players, such as Watson, Westwood etc is a huge opportunity for businesses to target customers. Consider the amount of air time they receive by being a contender for the Championship. Hours and hours of prime coverage and that is much more cost effective that buying media space. Also viewers don’t feel that they are being sold to, it is more subtle. The competition at the moment is to count the number of sponsors that each player has. Any advance on 7 on a shirt?
There is an opportunity to develop specific relationships with the younger players such as Rory McIlroy. He could help to reach a much younger audience who are really difficult to access. Golf is certainly moving with the times. Check out the use of social media such as Facebook and Twitter by the Open Championship and also by the individual players.
Barclaycard are changing their marketing to make much more use of sponsorship. They are launching Barclaycardunwind. This new venture will offer special ticket deals, exclusive gigs and competition to win tickets.
This reflects the changes in the way businesses are spending the marketing budget. This type of sponsorship enables more precise targeting and the opportunity to build relationships with customers. O2 have a similar approach with the O2 Arena and the access to special concert invitations. Adding extra value is the key to building that customer for life
When I started blogging I was so worried about all of the technical stuff. Way too complicated and so frustrating, I nearly gave up. I didn’t want a static website and hoped to create something I could change and adapt, as and when I needed. I was lucky to find Joel, the BlogTechGuy. He is amazing and takes out all of the techie geek speak. He has developed a series of videos to walk you through the process. They videos are really easy to follow and you can simply work along with him. Check it out and let me know how you get on.
Without him my blog simply would not exist, try for yourself.
MTV Computer Games are bringing the music of the Beatles to a new audience via a computer game. Listen to the track here
It is a new development for Sir Paul McCartney, Apple and Harmonix. It is a first time, the Beatles music has been released in a digital format. It really is taking the music into new genre and is a fun development for all concerned.
Computer games have used other bands such a The Who and Bon Jovi. It is innovative and uses the equity in the brand to extend into the future and current technology is being used to create.
The Marketing Lesson is to refresh and move with changes. Yet not to reduce the value in the brnd by over streteching
Some time ago I developed structure to help me to pass exams. Just don’t ask how long! Over time I have developed it into a format that can be used for both exams and assignments.
It is known as the ‘Magic Formula’ There are basically three stages and follow in a neat order
Firstly, the Concept, here you show you know the material ie what is market segmentation
Secondly, Application, show what you understand and use examples. Perhaps some of the case studies in the blog or from an organisation you work for. Imagine you are marking the company out of 10 for its segmentation, how good is it?
Finally, Evaluation. This is where you show what you will do differently and why. Proof is very important, don’t just promise, prove it is going to work. Download the video and let me know if it helps