Prospects and Tasks for Web 2.0

business

Agenda

i. What is Web 2.0?ii. Prospects of Web 2.0 businessiii. Tasks of Web 2.0 businessiv. Case Studies

a) BMW vs. Kia Motorsb) Sony vs. Samsung Group

What is Web 2.0?

Web 2.0

Social Media

• Internet services that foster collaboration and information sharing• Applied to websites and Internet services that foster social media or other sorts of peer production

• Content that is created, shared, and commented on by a broader community of users

Web 1.0 Publishers/Retailers

(powerful, magnanimous)

Consumers

Web 2.0

Intermediaries(networks,

search engines, brokers)

Users (empowered, interacting,

creating)

Paradigm Shift

• Traditional means of communication giving way to new generation of Internet based tools Audiences involved in 2 way interaction, discussion & conversation

• Shift of control from institutions to consumers

The Age of Conversation

“Social Media is people having

conversations online”

“For seizing the reins of the

global media, for founding and

framing the new digital

democracy, for working for nothing and

beating the pros at their own game, Time’s Person of the

Year for 2006 is you”

But why should I care?

Reason #1

SOCIAL NETWORKING SITES ARE OFFICIALLY MORE POPULAR THAN MOST SITES.

TIME, OCTOBER 13, 2007

Over 13 million articles

200,000,000 blogs

#2 largest search engine in the world

54% = no. of bloggers who post content or tweet daily

These people companies’ potential customers, employees or shareholders

Prospects of Web 2.0 BusinessTraditional Method The Internet

Small Jewelry designer

•Business landscape increasingly shifting away from just a small no. (head of demand curve) to a huge no. of niches (tail of curve)• Falling costs of reaching those niches

Prospects of Web 2.0 Business

• 25% of search results for the World’s Top 20 largest brands are links to user-generated content• 34% of bloggers post opinions about products & brands•78% of consumers trust peer recommendations• Only 14% trust advertisements• Only 18% of traditional TV campaigns generate a positive ROI

Source: http://socialnomics.net/2009/08/11/statistics-show-social-media-is-bigger-than-you-think/

The fact is…

Web 2.0 is not a fadIt’s a fundamental shift in the way we communicate.

People are talking about your brand. Right now.

HoweverOnly 38% of companies gather insight from customer engagements

Only 32% look for ways to turn problems into new sales

opportunitiesOnly 17% use the opportunity to identify & cultivate potential customer champions and advocates

Only 1 in 5 embrace intelligent Internet analytics

Source: http://www.destinationcrm.com/articles/Web-Exclusives/Viewpoints/Can-You-Hear-the-Social-Media-Conversation-56361.aspx

Bottom Line?

Nearly two-thirds of companies are not

finding their customers’ voice

Maintaining customer happiness & loyalty comes from listening to

where & how customers are talking

Tasks of Web 2.0 Business

Boarding the 2.0 wagon…

A.

Listen.

B.

Participate.

C.

Relinquish Control.

D.

Engage.

Case Studies

International Level Local Level

Automobile Industry

Electronics Industry

Case Studies

Are there differences in social media strategy between• Industries?• Geographical Location?

BMW’s Social Media Strategy

• Expanding market to younger consumers• Becoming increasingly active in the Web 2.0

world• New expansion of information exchange for

fans and prospective customers

“To give people a reason to engage with or participate in your advertising”

1. BMW 1-Series Model Campaign• Sporty and smaller car• Targeted at younger audience• $15 to $25 million was spent on online media

advertising• Facebook: Graffiti Car Contest

BMW’s Social Media Campaign

BMW 1-Series Graffiti Car Contest Facebook Page

• BMW 1-Series Facebook Group

• BMW 1-Series Microsite

BMW 1-Series Rampenfest Campaign

Viral Marketing for BMW 1-Series

2. Second Life

BMW’s Social Media Campaign

• Virtual world where users interact through avatars. • BMW’s representative will talk and engage with visitors via a chat script• Find out how people perceive BMW through other avenues such as user’s second life blog • Clears up misunderstandings • Allow users to know more about the brand

• BMW Store in Second Life

• BMW representative, Munich Express

• Targeted towards younger consumers• At the beginning stage of social media as

compared to KIA Motors America and Europe• Low level of two-way communication

between KIA and users• Focus is still on face to face interaction and

traditional marketing

KIA’s Social Media Strategy

KIA’s Social Media Campaign1. Corporate Blog: KIA Buzz• Written by Kia experts and management from

across the company• Shares information about vehicles, news and

opinion with consumers

KIA’s Social Media Campaign2. Q Member• Site for people who just bought a car• Members can enjoy special privileges

Analysis of Case Study 1CONTENT

• BMW– Provides consumers with engaging and informative content– Utilize more social media platforms – Higher level of transparency

• All information about campaigns and vehicles are on the Internet. • KIA

– Information exchange is mostly one way– Lack of two-way communication between KIA and

consumers– KIA should increase its content and keep information

engaging and interesting

Analysis of Case Study 1COMMUNICATION

• BMW & KIA– Easy and efficient access to communication– Managed to abolish all barriers customer might

have during the communication process– No problems or delays in website

Analysis of Case Study 1COMMERCE

• BMW– Created a commerce environment by displaying vehicle

accessories for sale, providing quotation services for used vehicles, online shop for apparels and accessories, BMW customization services and many others

– Users feel more confident and at ease buying a BMW as they know more about the product.

• KIA– Created a commerce environment through their ‘Q

Member’ site– Lacked the engagement and participation of information

and services that BMW implements on its websites

Analysis of Case Study 1COMMUNITY

• BMW– Performed better in creating a community with their

users as they used more social media platforms – Created several forms of community with different

type of audiences– Higher level of engagement with customers

• KIA– Should engage in more forms of social media– Increase consumer’s awareness about KIA

Samsung’s Social Media Strategy

Samsung’s Social Media Campaign

1. Samsung Tomorrow

Samsung’s Social Media Campaign

• Samsung Tomorrow

Samsung’s Social Media Campaign

• Samsung Tomorrow

Samsung’s Social Media Campaign

• Samsung Tomorrow

Samsung’s Social Media Campaign

2. Samsung Corby Naver Café – Purpose:

• Platform for Corby users to upload photos and videos taken using their phones, and for them to discuss about the phone’s performance through the discussion forums.

Samsung’s Social Media Campaign

• Samsung Corby Naver Café

Samsung’s Social Media Campaign

• Samsung Corby Naver Café

Sony’s Social Media Strategy

Sony’s Social Media Campaign

1. Sony Community

IT’S ABOUT 2-WAY CONVERSATION

Sony’s Social Media Campaign

• Sony Community

Sony’s Social Media Campaign

• Sony Community

Sony’s Social Media Campaign

• Sony Community (New)

Sony’s Social Media Campaign

2. Sony Twitter

Sony’s Social Media Campaign

• Sony Twitter

Sony’s Social Media Campaign

• Sony Twitter

Analysis of Case Study 2

CONTENT

Samsung Sony Highly differentiated content to attract different audiences

Low differentiation in content

Higher proportion of content contributed by participants

Higher proportion of content provided by company

Focus more on fun and entertainment

Focus more on product information

Less control over content More control over content

Analysis of Case Study 2

COMMERCE

Samsung Sony Does not actively utilize social media for direct selling

Actively uses social media especially Twitter for direct selling

Analysis of Case Study 2

COMMUNITY

Samsung Sony Higher level of engagement. More active in contributing content

Lower level of engagement. Most only post short comments.

More avenues to contribute content e.g. forums and photo-sharing

Less avenues to contribute content

Not successful in shifting communities to own website

Not successful in shifting communities to own website

Analysis of Case Study 2

• Conclusion

Samsung Sony Learn from Sony on how to use Web 2.0 for commercial purposes

Learn from Samsung on how to create more fun and entertaining content

Conclusion

• Importance of conversations

• Why conversations and Web 2.0?

Conversation is a fundamental part of being

human and for centuries, commerce was largely

based on conversation & interaction between

people

• Social media do not make the conversations but

supports it