Development plan of social media service for oh yeah 2012 2015

TRƯỜNG ĐẠI HỌC MỞ TP.HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBMM5 NGUYEN THI THANH HA DEPLOYMENT PLAN OF SOCIAL MEDIA SERVICE FOR OH YEAH 2012 – 2015 MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor’s Name: Associate Professor Dr HA NAM KHANH GIAO Ho Chi Minh City (2012) MBMM5 – NGUYEN THITHANH HA– 2012 WORD OF WARANTEE I undertake that this is the project of my own Figures and result which are mentioned in this project are righteous Project Author     ACKNOWLEDGEMENTS Firstly, I would like to thank my tutor, Associate Professor Dr.Hà Nam KhánhGiao forthe support and advice, continuous guidance, has kept me carrying out my thesis Without such guidance and assistance, I could not have finished my thesis on time I would like to express my deep gratefulness to all Professors of Solvay Business School who directly conducted this program to us This course gave me a lot of useful knowledge about Marketing and Business Management that would help me to keep always on the right track of my professional work in the future My uttermost thanks go to my study group in MBMM5 class, whom I could get endless experience and mental support; also to my family, colleagues and friends, who listened to my ideas and encouraged me in completing this thesis MBMM5 – Nguyễn Thị Thanh Hà - 2012     TUTOR’S COMMENTS Author has a quite clear objective for this final project, a logical review of theory linking to a concrete practice action plan The thesis follows a good structure, from the approach of problem to solutions with reliable statistic from reputation sources I highly appreciate author in the way of using Methodology of collecting data and making a proper analysis about a new emerging part of advertising- digital advertising Capability of applying suggested business plan in practice business is high In general, this thesis meets the requirement for a final project of MBMM program I hereby propose this thesis to be presented to the jury’s board Associate Professor,Dr HÀ NAM KhánhGiao MBMM5 – Nguyễn Thị Thanh Hà - 2012     TABLE OF CONTENT   EXECUTIVE SUMMARY  1  Chapter   1.1  INTRODUCTION  .2  Rationale of the study  2  1.1.1  Industry’s Background:  .2  1.1.2  Company Overview:  2  1.1.3  Problem statement:  2  1.2 Objective of the study  3  1.3 Scope and limitations  3  1.4  Methodology  3  1.4.1  Data collecting:  3  1.4.2  Data analysis:  3  Chapter   2.1  LITERATURE REVIEW  .5  SEGMENTATION TARGETING AND POSITIONING  5  2.1.1  Segmentation:  5  2.1.2  Targeting:  5  2.1.3  2.2  Positioning:  5  FUNDAMENTAL OF DIGITAL MARKETING – SOCIAL MEDIA MARKETING  7  2.2.1  Digital marketing  7  2.2.2  Social media marketing  .9  2.3  BASIC STRUCTURE OF A BUSINESS PLAN   11  2.3.1  Executive Summary   11  2.3.2  General Company Description   11  2.3.3  Products and Services  . 11  2.3.4  Marketing plan  12      2.3.5  Market Opportunity analysis   12  2.3.6  Operational plan  . 14  2.3.7  Management and Organization   15  2.3.8  Financial plan   15  Chapter   INTRODUCTION TO “OHYEAH” COMPANY   16  3.1  INTRODUCTION TO THE COMPANY   16  3.2  COMPANY DEVELOPMENT ORIENTATION IN OBJECTION TO THE CONSUMER HABIT AND DIGITAL MARKETING ADVERTISING IN VIET NAM   17  3.2.1  Customer habit to digital advertising:   17  3.2.2  Expend in online advertising:   19  Chapter   4.1  MARKET ENVIRONMENT ANALYSIS   20  4.1.1  4.1.2  4.2  THE MARKET OPPORTUNITIES   20  Macro environment  . 20  Micro environment (Porter’s Forces):   25  CURRENT CHALLENGES TO THE DEVELOPMENT OF “OHYEAH”   27  4.2.1  SWOT analysis   27  4.2.2  Conclusion:   28  Chapter   RECOMMENDATIONS TO THE DEPLOYMENT PLAN OF SOCIAL MEDIA MARKETING SERVICE OF “OHYEAH” COMPANY   29  5.1  POSITIONING & TARGETING FOR THE BRAND “OHYEAH”   29  5.1.1  Positioning   29  5.1.2  Targeting:   29  5.2  PRODUCT & SERVICE STRATEGY:   30  5.3  PRICING STRATEGY  . 32  5.4  SPECIFIC ACTION PLAN FOR 2012  . 33  5.4.1  Marketing planning  . 33  5.4.2  Sales Planning . 34  MBMM5 – Nguyễn Thị Thanh Hà - 2012     5.4.3  Hr Planning  36  5.4.4  Technology Planning   37  5.5  YEARLY OPERATION BUDGET   37  5.6  CONCLUSION   39  REFERENCE LIST   40  1.  Websites:  . 40  2.  Books & e-books:   41  APPENDIX   40  1.  List of top 30 advertising agencies in HCMC:   42  2.  Type of digital marketing:   45  MBMM5 – Nguyễn Thị Thanh Hà - 2012     LIST OF TABLES, CHARTS AND FIGURES Table 2.1: Comparison between Traditional media vs Social media 10  Chart 3.1: Influence of website advertising on SEA consumers/ Việt Nam 18  Chart 3.2: Have you ever 'liked' or followed any brand, company or celebrity on a social networking site? 18  Chart 4.3: Website used for connecting to Social Networks 23  Chart 4.4: Attitudes towards Social Connection 23  Figure 5.1 Cost to client rule 33  Table 5.1: Marketing roadmap for Ohyeah 2012 34  Figure 5.1: Yearly sales forecast 2012 35  Table 5.2: List of prospect 35  Figure 5.2: Number of headcount planned year 2012: 36  Figure 5.3: estimated salary for headcount planned 2012: 37  Figure 5.4:Four year profit projection 38  MBMM5 – Nguyễn Thị Thanh Hà - 2012 1    EXECUTIVE SUMMARY Ohyeah -A start-up digital advertising agency, aims of making a hit to the local advertising market by developing and deploying a new service to the market, providing from small part to full service for a digital marketing campaign with optimal price and a commitment of a perfection in service to big full service adverting agencies is its main goal and sharping a new way of doing marketing for brands is the another goals it will be reached On the way of reaching these goals, an overview about the market to be presented, includes: definition of digital marketing, social media marketing in the era of marketing 3.0 and how to advertising based on social media, the development of internet; habit of using internet and how online advertising influence people in Asia and Viet Nam A quick look on the digital advertising market status (market share) in Viet Nam is also mentioned A SWOT analysis is made of essential elements about the digital advertising industry, internet environment, competitors, for Ohyeahwill help build up a deployment plan for its development in next years The last part of this thesis will be a concrete action plan, include: positioning for the Ohyeah brand, Sales and Marketing plan, HR plan and also budget for carrying it out 2    Chapter INTRODUCTION 1.1 Rationale of the study 1.1.1 Industry’s Background: The size of the online advertising market in 2009 is estimated at VND 278 billion VND (approx USD$ 15.5 million) The market size increased by 71% compared to 2008.The major online advertising spending industries are fast-moving consumer goods (FMCG) and telecommunications is about 50% of the total online advertising expend Display advertising is the major format in Vietnam, accounting for about 75% of advertising revenue The share of rich media is at about 15% and has nearly doubled between 2008 and 2009 75% of online advertising inventory is sold at fixed costs 20% are sold using CPM (cost per impression) and 4% CPC (cost per click) CPM and CPC models have only gained slightly in importance over the last year (Source: Cimigo market research 2010) 1.1.2 Company Overview: Established at the end of 2011, with a capital of one billion VND, as a committed, passionate, creative, accountable and results-oriented team of experts gathering the most accurate and advanced knowledge of the local market and its technologies, Ohyeahwill be one of the leaders of the full digital marketing advertising industry in next years 1.1.3 Problem statement: As the non-stop expand of social networks and a new way of doing marketing of international brands– the digital marketing, Viet Nam also catches up very fast to be on track of this trend There is a perspective for SMEs in Viet Nam to develop “Social media marketing” advertising service as a core business.Ohyeah – a start-up company intends to develop its business in this field and wants to take-off fast in this industry A strategic plan to deploy a new service to the market in order to meet the demand of the crowded digital marketing advertising market as well as to achieve the mission of being one of the leaders of the digital marketing advertising industry is requiring a full understanding about digital marketing, social marketing and its trend in the development of digital marketing advertising in Viet Nam MBMM5 – Nguyễn Thị Thanh Hà - 2012 40    REFERENCE LIST Websites: www.wikipedia.org http://www.slideshare.net/ http://hootsuite.com/ http://www.hubspot.com/products/ http://www.socialbakers.com/ http://www.ftaresearch.com/ http://cimigo.vn/en-US/Home.aspx http://www.wpp.com/wpp/companies/companypreview.htm?id=69 http://grey.com/ http://paidcontent.org/article/419-digital-ad-growth-has-resumed-and-paid-content-hashelped-wpp-says/ http://iws.ohiolink.edu/moti/homedefinition.html www.score.org http://www.marketingprinciples.com/articles.asp?cat=397 http://www.businessknowhow.com/startup/defmarktg.htm http://www.marketingpower.com/ http://www.simplydigitalmarketing.com/what-is-digital-marketing http://www.netmba.com/marketing/product/lifecycle/ www.businessdictionary.com www.gso.gov.vn http://tamnhin.net/Diemnhin/17344/2011-Tang-truong-GDP-Viet-Nam-kha-cao-so-voitoan-cau.html MBMM5 – Nguyễn Thị Thanh Hà - 2012 41    Books & e-books: Alice M.Tybout and Tim Calkins, 2005, Kellogg on Branding John Wiley & Sons, Inc Cimigo, Netcitizens-Report-EN-April-2011, Internet usage and development in Viet Nam, Glen L Urban and Stevan H Star, 1990, Advanced Marketing Strategy Prentice Hall J N Kapferer The New Strategic Brand Management London and Philadephia Monte Lutz, SVP-Digital Public Affairs, 2009, A social pulpit - Barack Obamas social media toolkit 1.09, Edelman - Digital Public Affairs Michael A Stelzener, April 201, 2011 SOCIAL MEDIA MARKETING INDUSTRY REPORT How Marketers Are Using Social Media to Grow Their Businesses, Social Media Examiner Nielsen, 2010, Young Generation_English research NielsenVietnamGroceryReportAugust2010, Vietnam Grocery Report Annual Update, page Pete Barry, The Advertising Concept Book, Thames & Hudson 10 Philip Kotler, 2003, Marketing Insight from A to Z: 80 concepts every manager needs to know,Published by John Wiley & Sons, Inc., Hoboken, New Jersey, Published simultaneously in Canada 11 Philip Kotler, Gary Armstrong, John Saunders and Veronica Wong 1999 Principle of Marketing Prentice Hall Europe 12 Philip Kotler - HermawanKartajaya - IwanSetiawan, 2010, Marketing 3.0 - From Products to Customers to the Human Spirit,Published by John Wiley & Sons, Inc., Hoboken, New Jersey, Published simultaneously in Canada 13 Rob Storks and the mind of Quirk, Compiled by Sarah Blake, 2008, e-Marketing the essential guide to Online Marketing, 2nd edition, First published by Quirk eMarketing (Pty) Ltd Page 123-148 14 Rebecca Corliss, 2011, How to monitor your social media presence 10 minutes a day- A Guide to Streamlining Your Social Media Process, Hubspot MBMM5 – Nguyễn Thị Thanh Hà - 2012 42    APPENDIX List of top 30 advertising agencies in HCMC: No Agency Area Description Main Client Yahoo, Cathay Life, Best Carings, Ogilvy One Agency T&A Ogilvy Canon, Boeing, SAP, Nestle, Standard, TPBank, Ftelecom, SFone Lowe Agency Lowe & Partners Worldwide Unilever (Omo, Clear), Vinamilk, Lifebuoy, Intel, PS, Sunlight, Coca-cola, Johnson & Johnson, Nestle, Prudential, Sharp, Total Lubricants P&G, Unilever, Ninomax, White Grey Agency Grey Group Horse, Nike, Dunhill, Pentene, TNT Dentsu Alpha Agency Dentsu Group Honda Vietnam, Kao Vietnam, Toyota Motor Corp Vietnam Golden Golden Digital Agency Communication Gain plus (Abbott), Tiger beer Group Wunderman Agency WPP Who Digital Agency Who Digital MBMM5 – Nguyễn Thị Thanh Hà - 2012 Nokia, Citibank, Ford HP, Allco, FVH, Nokia, Sony, MegaStar 43    Emerald Agency Masso Group PNJ, Intel, Canon, Beeline, S-Fone Ericsson, BP, Mobifone, Kimberly Biz Tequila Agency WPP Clark, Konica Minolta, Gree.vn, Bel, Clipsal P&G, Nestle, HP 10 11 12 13 14 ZED Digital IO Media Starcom Scarlet Communications ADT Agency Agency Agency WPP Sweden-based IO Network Huggies), Rohto, Mentholitum (Refre, Sunplay, Lipice) Srarcom Coca Cola, Samsung Worldwide Agency Agency Mercedes, Kimberly Clark (Kotex, Biore, P&G ADT group TânHiệpPhát Canon, VATC, San Miguel, TK 15 eBrand Agency eBrandCo.Ltd ceramics, Kimberly clark (Kotex_Girlspace) 16 17 Click Media InterBrand Media Agency Agency Group M, Chervolet Inter Media ltd Brand Timviecnhanh, Vina Design, Asia fashion model, MinigameViệt, Auto dealer Acer, Balleys, Orion, Samsung, 18 Egde Marketing Vietnam Agency MBMM5 – Nguyễn Thị Thanh Hà - 2012 Edge Group Prudential, Savills 44    Listerine, 19 Notch Creative Notch JSC Kimberly-Clark, Hervietnam.com, Mercedes-Benz, Honda, Nissan, Dutch Lady, Ila, Vinaphone 20 Innity Ad Media InnitySdnBhd Pepsi, Sting, Samsung Unilever, Ford, IBM, Heineken, 21 Mindshare Media Group M Nike, HSBC, Nestle, SAP, Motorola, Castrol 22 Maxus Media Group M 23 Media Com Media Group M 24 Mekong Media 25 Dat Viet Media Dat Viet 26 Admicro Media AdMicro P&G, Shell, Universal, Vinamilk, Masan Foods Mekong Media MKM DânTrí, Người Lao Động, ThờiBáoKinhTế, enbac.com… Lotus group, Cleverlearn, ACB, 27 KingBee Media Media KingBee Media Ila, Honda, LG, PNJ, Novaland, Samsung, Coopmart, Nguyen Kim, Foci Azn, 28 IDM Media MBMM5 – Nguyễn Thị Thanh Hà - 2012 International digital media Abbank, Techcombank, Hdbank, ACB, Samsung, Toshiba, NIIT, Apolo, Suzuki, Unilever (Omo, Kotex) Sym, 45    LaVie, Unilever (Dove, Pond's, 29 Sofresh Creative Sofresh., LTD Vaseline), Vinagame, Dutch Lady, Ocean Vista Resort Heart 30 Media Digital Production house Beelines, Heineken, Tiger Type of digital marketing: 2.1 Online advertising:  Display banner or Rich media banner on online newspapers  Adverts placed in emails MBMM5 – Nguyễn Thị Thanh Hà - 2012 46     Contextual Advertising 2.2 Search Engine Marketing (SEM) generate brand & product AWARENESS PPC Organic (SEO) PPC 2.3 Social media marketing:  Campaign on social networks: Facebook , Zingme, Yume MBMM5 – Nguyễn Thị Thanh Hà - 2012 47    PR article by Hot blogger on Facebook:   MBMM5 – Nguyễn Thị Thanh Hà - 2012 48     Campaign on Forum: MBMM5 – Nguyễn Thị Thanh Hà - 2012 49     Viral clip on Youtube: MBMM5 – Nguyễn Thị Thanh Hà - 2012 50    List of social network in Viet Nam MBMM5 – Nguyễn Thị Thanh Hà - 2012 51    Sales kit Sales Kit Pricing 2012 Social Search Optimization First months - for words package Maintenance - Next Months - for words package Description Basic Social Media Marketing - Month Project Profile Set-Up: Non- Fanpage & Fanpage + Gmail Fanpage Set-Up + 10,000 Likes on Fanpage Page Management: Tab Creation: Simple Tabs Event Creation Daily Posting (4 posts) Contest Management ( 50 candidates per contest) Note Posting: notes maximum, exludedes content creation Weekly Reporting Total Description Price (USD) 1,200 2,700 Price (USD) 2,000 Forum Seeding: forums & viral campaign Description PR Article Posting on top website news Article PR Article Composing Article Forum Seeding: Forum Week Box creation on top forums Copy Writing content on Forums/ FB fanpage Week Viral Clip on Site (Youtube/ clip.vn/ bamboo/ zing/ NCT) 2000 Views Fan recruitment: Rate Per Fan Fan Hot Blogger status updates: 50 Comments Post PR Article From Blogger (Post on personal profile: Facebook; Yume; Article G+; personal blog): 50 likes/ 50 comments Price (USD) Contact Viral Video clip production Price (USD) Clip 1-3 minutes (exclude Actor / Actress) MBMM5 – Nguyễn Thị Thanh Hà - 2012 Description Script + shooting + post production 190 50 Please contact 100 150 0.14 Please contact Please contact 1500 52    New services: Social Media Profile Creation on Xeeme *** Facebook, Twitter, Linked In, Youtube, Flickr, My Space Social Media Profile Creation *** Zingme, YUME, Truongxua, Banbe.net, Mimo, Go.vn Reporting tool *** Social Baker / Hootsuite SM Ad Campaign Facebook or Google Adwords Banner Design Banner Rich Media Design Media Plan Management Media Plan Description Profile + avatar design Price (USD) Description Profile + avatar design Price (USD) Description Tool to manage digital campaign on FB Price (USD) Description PPC Standard Banner Rich Banner Report & Tracking Price (USD) Bidding 300 300 Please contact 150 300 10% Total Plan Please Contact Note: Prices are quoted in USD, but may be converted to VND upon contract signing PRODUCTION COST SALES KIT 2012 Standard Banner Item 150 VND 3,150,000 Richmedia Banner 300 6,300,000 Game Banner 350 7,350,000 Landing Page (HTML) USD 400 8,400,000 Game Site (*) 2,500 52,500,000 Game on Mobile Device 2,500 52,500,000 Flash Site (*) 2,500 52,500,000 Corporate Site (*) 1,000 21,000,000 Site Admin 100 2,100,000 Hosting Website Contact Us 5% of Production Cost Tracking Statistics 10% of Production Cost Tracking and Report Website 40% of Design Cost Resize Banner (x1 size) Banner Tracking Click + Impressions 6% of media plan Click + Impressions + Times of Hover 10% of media plan Click + Impressions + Times of Hover + Video included + Banner Hosting 30% of media plan Currency 1$ = 21,000 * Rates are for reference, actual rate depends on scope of work, concept, storyboards, and media plan MBMM5 – Nguyễn Thị Thanh Hà - 2012 Description Design + Animation Design + Animation + Optimization Design + Animation + Code Optimization Design + HTML Coding Design + Animation + Code Optimization Design + Animation + Code Optimization Design + Animation + Code Optimization Design + Animation Cost per week Vietnam Server User + Interactive Activities Prize Report with Google Weekly Analytics Tracking with Mediamind + + + + + 53    Budget planning template: BUDGET No Category Detailed expenses Amount (VND) A Revenue 1,231,300,000 Revenue Revenue Sub-contract Sub-contract costs 2,006,750,000 775,450,000 Provision cost Penalty & claims Warranty Other risk Expenses Personnel cost Salary + overtime (incl PIT) Health + Social insurance Bonus (incl PIT) B Accident insurance Recruitment fee CE fund Teambuilding Outing Other benefit Traveling cost Flight / train / bus ticket Daily allowance Visa Hotel Transportation (taxi…) Internet, Mobilephone Travel insurance Training cost Training fee Document Other service Sales & marketing Entertainment fee Advertisement / Marketing Sponsor Donation Seminar MBMM5 – Nguyễn Thị Thanh Hà - 2012 995,747,780 791,987,500 606,500,000 123,687,500 51,000,000 10,800,000 - - 14,000,000 14,000,000 - 54    Production cost Laptop / desktop Equipment Software / Licence Fixed telephone charge, IP phone Mobilephone charge 18,200,000 700,000 - Internet, ADSL Other production costs Overhead operation cost Office rental Stationery Furnitures Security fee Food & drink Electricity, Water Maintenance /Repairing fee Fuel consumption (for genset) Sanitary Consultancy, audit Tax and fee Bank fee Insurance Other service Overhead investment cost Laptop / desktop Server Software / Licence Equipment Air-conditioner Building renovation Overhead communication cost Fixed telephone charge, IP phone Mobilephone charge 3,500,000 14,000,000 155,460,280 114,860,280 1,400,000 21,000,000 2,100,000 7,000,000 2,100,000 3,500,000 3,500,000 13,300,000 13,300,000 2,800,000 2,800,000 Internet, ADSL Mail / Post fee C Balance MBMM5 – Nguyễn Thị Thanh Hà - 2012 266,654,720 ...   RECOMMENDATIONS TO THE DEPLOYMENT PLAN OF SOCIAL MEDIA MARKETING SERVICE OF “OHYEAH” COMPANY   29  5.1  POSITIONING & TARGETING FOR THE BRAND “OHYEAH”   29  5.1.1  Positioning  ... MBMM5 – Nguyễn Thị Thanh Hà - 2012 4    of the growth and development of the advertising industry as well as internet service development in Viet Nam to plan for Ohyeah The second component covers... sales forecast 2012 35  Table 5.2: List of prospect 35  Figure 5.2: Number of headcount planned year 2012: 36  Figure 5.3: estimated salary for headcount planned 2012: