Mini App Report 2 Smartisan Blizzard Entertainment Mr. Ng’s company Pixie Scientific Table of Contents • Figure 10.2 Summary for Smartisan • Figure 10.2 - Constructing a Brand Positioning Bull’s-Eye for Smartisan – Smartisan uses a Brand Positioning Bull’s-Eye to improve itself. • Figure 10.2 - Constructing a Brand Positioning Bull’s-Eye Unmodified • Figure 21.3 Summary for Blizzard Entertainment • Figure 21.3 – Five International Product and Communication Strategies for Blizzard Entertainment – Blizzard Entertainment selected Product Adaptation to keep operating WOW in China. • Figure 21.3 - Five International Product and Communication Strategies Unmodified 2 Table of Contents (continued) • Figure 17.3 Summary for Mr. Ng’s Company • Figure 17.3 - Steps in developing Effective Communications for Mr. Ng’s Company – Mr. Ng’s Company focused on Identify target audience, Determine objectives, Select channels in developing effective communications. • Figure 17.3 - Steps in developing Effective Communications Unmodified • Figure 20.1 Summary for Pixie Scientific • Figure 20.1 - New-Product Development Decision Process for Pixie Scientific – Pixie Scientific focused on Idea generation, Idea screening, and Product development in New-Product Development Decision Process. • Figure 20.1 - New-Product Development Decision Process Unmodified • Reference List • Appendices 3 Figure 10.2 summary for Smartisan Background Information Smartisan (Beijing) Co., Ltd. is a manufacturer of mobile Internet terminal equipment company, with sales of digital products and provide relevant services for the main business. It is located in Beijing, China and was established in May 2012. Smartisan sets “to use artisan spirit of perfectionism” as their mission, build a first-class user experience of digital consumer products (smart phone based) to improve the quality of life. English name "Smartisan", is a "smart" and "artisan" combined into a word that means "craftsman of smart phones era”. Sales of the first batch of the company’s phones were constrained by supply chain hitches, but the company still sold nearly a quarter-million smart phones. Marketing Concept Introduction Figure 10.2 shows a Brand Positioning Bull’s-eye. In order to improve the accuracy and success of branding efforts, we have to know everything about the customer you should be aiming for. The four circle is important to constructing a Brand Positioning Bull’s-eye. First, the heart of bull’s-eye are points-of-party, points-of-difference and the brand mantra which shown as inner 2 circles. This area shows points where you are claiming superiority or exclusiveness over other products and you can at least match the competitors claimed bets. The next circle out are the substantiators or reasons-to-believe (RTB) which provides factual or demonstrable support for the “heart”. At last, the outer circle contain two other useful branding concept. One part includes the brand values, personality and character that are intangible associations that help to establish the tone for the words and actions for the brand. For the other part, executional properties and visual Identity are included. Executional properties and visual Identity more tangible elements of the brand that impact how it is seen. In addition, there are three boxes outside of the bull’s eye. To the left, the top box describe attitudes or behavior that influenced the positional by highlighting consumer target and consumer insight. The bottom box describes statement of consumer need and competitive product set. All these two boxes provide input to the positioning constructed. The output is consumer take away, that is what consumer get if the brand positioning construct is success. 4 Figure 10.2 summary for Smartisan Figure Description Figure 10.2 shows the position of Smartisan in Bull’s-eye. The Brand Mantra is “to be a craftsman in smart phone era”. This reflects what smartisan focusing is exterior of a smart phone. In China domestic smart phone market, most Android manufacturers only focus on the price, many cell phones look same and old fashion. Nevertheless, that young people need is not just fair price, they want to be differentiated to others, not only themselves, but also their cell phone. In this needed background, Smartisan turned out and grasped youths’ needs. Their phones have good looking and fair price that compared to other brands. As shown in the yellow color circle, Smartisan assemble a professional team that every teammate is good at shape design; Care about what customers want on the social networks; Using Reputation of creator to attract young people (As creator, Yonghao Luo is famous around Chinese youths). Customer can feel that Smartisan is creative, caring and modern through the products and the Hammer logo. From the left boxes, customer target is young people and someone who wants to be differentiated with others because Android smart phone is very common so that they can not get youths’ favors. In final, we can find from the right box, customer could get satisfied from Smartisan. Strategic Implications The primary purpose of defining target customers in the brand positioning statement is to establish the target customer clearly in mind when thinking about brand benefits and relevant differentiation. The more detailed the elements of Bull’s-eye description, the more powerful and nuanced the brand’s unique value proposition can be. It will also help other companies when the find out that customers do not favor them any more. 5 Figure 10.2 - Constructing a Brand Positioning Bull’sEye for Smartisan Consumer Target Value/ Personality/Character Young Android smart phone users Consumer Insight Android smart phone is old fashioned and lack of creative Consumer Need State Young people desire for a Personality character smart phone Competitive Product Set Android domestic smart phone manufacturer Creative Substantiators (RTB) Young Consumer Takeaway Points-of-parity Focus Android Fair price on Brand commun Domestic Mantra ications To be a in social craftsman of network smart phone s with era. consum Good looking ers. Reputa tion of creator attracts young people Customers gains personality character smart phones with a fair price Points-of-Difference Be good at exterior designing Hammer logo Executional Properties/Visual Identity (MOZUR 2015) Figure 10.2 - Constructing a Brand Positioning Bull’sEye Unmodified Consumer Target Value/ Personality/Charact er Substantiators (RTB) Consumer Insight Points-ofparity Brand Mantra Consumer Need State Points-ofDifference Consumer Product Set Executional Properties/Visual Identity Consumer Takeaway Figure 21.3 Summary for Blizzard Entertainment Background Information Blizzard Entertainment is a premier developer and publisher of entertainment software. Blizzard Entertainment founded in 12/02/1991, based in Irvine, California. the company created high quality computer games such as Warcraft, Diablo, and Starcraft. By focusing on creating well-designed, highly enjoyable entertainment experiences, Blizzard Entertainment has maintained an unparalleled reputation for quality since its inception. As one of the most famous Massively Multiplayer Online Role-Playing Game (MMORPG), World of Warcraft (WOW) has been operating in many countries. Moreover, more than 1 million people played online simultaneously globally. Concept Introduction There are five Global Product Strategies to adapt international market to make more profits. These five International Product and Communication Strategies are distinguished by changing or remaining two things that are communication and product. The five strategies are straight extension, product adaptation, communication adaptation, dual communication and product invention. Every country has different history, culture, taste and legal environment. In order to adapt different countries, s company should choose one International Product and Communication Strategy. First, if the product in foreign market without changes sold well, a company can use straight extension that means no need to change communications and product. If the company is not good at getting profit from the international market, it has to consider if it is necessary to change product or communications. The organization must understand what is its disadvantage. The change in communications called communication adaptation; changing in product is called product adaptation; and dual communication means changing both of them. In addition, if the company creates a new product to meet a need in another country or reintroduce for the earlier product, they can use product invention which is creation of new products. 8 Figure 21.3 Summary for Blizzard Entertainment Figure Description One famous MMORPG of Blizzard Entertainment, WOW has been operated in China for more than 8 years. In 2010, many people thought this game is filled with violence because many Nonplayer Characters (NPC) are skeletons, zombies or bloody body. Most WOW player are young people so their parents thought the horrible elements would hurt those young people and negatively impact their growth. Then those worried parents refused WOW running in China, and also the number of Chinese player decreased. Even though WOW could still operate in China, Blizzard Entertainment lost some profit because of public opinion. With this condition, Blizzard Entertainment chose product adaptation to face the dilemma. They changed most models of NPC to meet the new condition of Chinese market. After that, WOW got good operations till now. Strategic Implications In foreign market for a company, the most important thing is finding out how it can operate well. The foreign market must relate to foreigners life. For example, KFC is doing well in China because every Chinese people who has been in America thought the food of KFC in China is better than America. The reason is that KFC Change the product and communications strategies. The same to Blizzard Entertainment, after they changed product and communications strategies, business run better. A company needs to understand every thing of the foreign country and make a right plan before going to the international marketing. 9 Figure 21.3 Five International Product and Communication Strategies for Blizzard Entertainment Product Do Not Change Product Straight Extension Product Adaptation: Blizzard Entertainment change the NPC’s models of WOW in running in China. Communication Adaptation Dual Adaptation Do Not Change Communications Adapt Communications Adapt Product Develop New Product Product Invention (Blizzard 2014) Figure 21.3 Five International Product and Communication Strategies Unmodified Product Do Not Change Product Adapt Product Develop New Product Straight Extension Product Adaptation Product Invention Communication Adaptation Dual Adaptation Do Not Change Communications Adapt Communications Figure 17.3 Summary for Ng's Company Background information Rainbow Loom is the invention of Cheong Choon Ng who is overseeing a rapidly growing company (Ng’s Company) that he started from his living room in Novi, Mich. Main product of the company is Rainbow Looms, actually they are toys. As of September 2014, Ng's company had sold over 8 million units worldwide, along with 40 million packets of rubber bands. The kits are manufactured in China, and Ng supervises distribution out of a 7,500 square feet warehouse near his home and managers 12 subordinates. Marketing Concept Introduction Figure 17.3 shows eight steps in developing effective communications and they are identify target audience, determine objectives, design communications, select channels, establish budget, decide on media mix, measure resultsand manage integrated marketing communications. The process has to begin with a clear target audience because the target audience is a critical influence on the communicator’s decision. After having a clear target audience, it is necessary to determine the communications objectives. Communications objectives can be set at any level of the hierarchy-of –effects model which includes category need, brand awareness, brand attitude, brand purchase intention. Category need means that a category product with “higher or little involvement” will tell “more or less differentiation”; Brand awareness is to educate consumer’s ability to recognize or recall the brand within the category; Brand attitude is evaluation of the brand with respect to its perceived ability to meet current need; Brand purchase intention is moving customers to decide to purchase the brand or take purchase-related action. The most effective could achieve multiple objectives. The next step is design communications. This step is willing to solve three problems that are what to say, how to say it, and who should say it. After this, there are three communications channels which are personal communications channels, mass communications channels and integration of communications channels. These three channels are different in how many people are influenced. After determine about how much a communicator wants to expense, the last three steps are decide on media mix, measure results and manage integrated marketing communications. 12 Figure 17.3 Summary for Ng’s Company Figure Description Figure 17.3 shown with color is what Ng’s Company focuses on the steps. Rainbow Loom is popular currently around children, however, at the beginning of Rainbow Loom selling, although customers could see it in toys stores, no one decided to buy it because they did not know how to handle. After understanding the condition, Ng’s Company followed the steps in developing effective communications and got an achievement. First of all, communicator realized that the people who would be interested in their products must be children when he was playing with his daughters. This behavior is identifying target audience. Then he promoted products to the toys seller, Learning Express Toys is an example that get big profit from Rainbow Loom. For the problem that people do not know how to play, communicator followed step 4-select channels and chose mass communication channel by posting teaching video on public social network and purchasing Google ads to help spread the word. In final, when children showed off themselves, they were helping spread the word. Strategic Implications The eight steps would help organization improve the effective communications. These steps could help build customer loyalty. Every company must evaluate who are its audience because this is the beginning of these steps. for selecting channels, communicators need to recognize what is the problem, then they can choose the effective communications channels. Because of lack knowledge of Rainbow Loom, the best way is posting teaching video through public social networks and encourage people to share their own works. However, other companies may need to choose other communication channels that should based on what problem a company faced. 13 Figure 17.3 Steps in developing Effective Communications for Mr. Ng’s Company Target audience is children between 8-14-year-old. 1. Identify target audience 2. Determine objectives Category need and brand awareness 3. Design communications Ng’s company chose mass communication channel 4. Select channels 5. Establish budget 6. Decide on media mix 7. Measure results 8. Manage IMC (MARTIN 2014) Figure 17.3 Steps in developing Effective Communications Unmodified 1. Identify target audience 2. Determine objectives 3. Design communications 4. Select channels 5. Establish budget 6. Decide on media mix 7. Measure results 8. Manage IMC Figure 20.1 Summary for Pixie Scientific Background information Pixie Scientific is a start-up company and located in New York. There are 8 people included in its research and development group. The main products of this company are Disposable diapers, and the new product called Smart Diapers, was going to be published. The company claimed that Smart Diapers are disposable diapers that make use of data normally thrown directly into the trash. These diapers have a QR patch on the front that, when scanned daily and used in conjunction with our app, help you monitor health. The app alerts you if there is a urinary tract infection, the onset of type 1 diabetes, kidney problems and monitors hydration and nutrition. Marketing Concept Introduction Figure 17.3 shows the stages in the new-product development process. There are eight stages which are idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, market testing and commercialization. These stages starts with idea generation which is search for ideas. Companies need to get the points of unmet customer needs or technological innovation. The next step is idea screening that purposes to drop poor ideas as early as possible. After ensuring the good idea, the next step is concept development. This stage is a necessary but not sufficient step for new product success. Marketers must also distinguish winning concepts from losers. Following a successful concept, the forth step is marketing strategy development which includes three parts. The first part describes the target market’s size, structure, and behavior; the planned product positioning; and the sales, market share, and profit goal; the second part describes the planned price, distribution strategy, and marketing budget; the third part describes the long-run sales and profit goal and marketing-mix strategy. After developing the product concept and marketing strategy, management needs to prepare sales, costs, and profit projections to determine whether they satisfy company objectives and if they do, the concept can move to the development stage that is prepared to satisfy functional and psychological performance. Then the product is ready to be branded with a name, logo, and packaging and go into a market test. Market testing is not necessary for a company if product sales met expectations. The last step is commercialization. Commercialization incurs the company’s highest costs to date to make product sales meeting expectations. 16 Figure 20.1 Summary for Pixie Scientific Figure Description As shown in Figure 17.3, Pixie Scientific follows the New-Product Development Decision Process and focusing on three steps that are idea generation, idea screening and product development. The Smart Diapers is new to the world, although Other so-called quantified self products have been developed for adults, like products from Jawbone and Fitbit that create digital records of calorie expenditure and sleep habits. So Smart Diapers is worth considering. Because of lack knowledge in data, Smart Diapers could help parents understand how their babies are. A smartphone app takes a picture and can make precise readings of the chemical data based on color changes. The data is uploaded to a central location, where doctors can get information about how the child is doing and whether the baby needs further testing. The diaper costs about 30 percent more than regular diapers, had potential as a consumer product, for parents who want to keep regular tabs on their child’s health. Strategic Implications Figure 17.3 is effective for Pixie Scientific to make decision about developing a new product. According to the article, Pixie Scientific focused on three steps shown in blue color. However, marketers need to evaluate each step in Figure 17.3, not only three steps in blue color shown in Figure 17.3. After get a good idea, marketers have to follow the steps to make the product sales meet expectations. To do so will also help other company get more profits from new products. 17 Figure 20.1 New-Product Development Decision Process for Pixie Scientific 1. Idea generation Smart Diapers is compatible with company objectives, strategies, and resources. Smart Diapers is new to the world, the idea is worth considering 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development Smart Diapers is a technically and commercially sound product. 7. Market testing 8. Commercialization (HARDY 2014) Figure 20.1 New-Product Development Decision Process Unmodified 1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Market testing 8. Commercialization Figure 20.1 – The New-Product Development Decision Process For yes 1.Idea generat ion Is the idea worth conside ring? No yes yes 2.Idea screening Is the product idea compatibl e with company objectives, strategies, and resources ? No 3.Concept developm ent and testing Can we find a good concept consumers say they would try? yes 4.Marketin g strategy developm ent Can we find a costeffective, affordable marketing strategy? 5.Busines s analysis Will this product meet our profit goal? yes yes yes 6.Product developm ent Have we got a technically and commerci ally sound product? 7.Market testing Have product sales met expectatio ns? yes No Send the idea back for product developm ent? No No No drop No No 8.Comme rcializatio n Are product sales meeting expectatio ns? No Modify the product or marketing program? No yes Figure 20.1 – The New-Product Development Decision Process Unmodified yes 1.Idea generat ion Is the idea worth conside ring No yes yes 2.Idea screening Is the product idea compatibl e with company objectives, strategies, and resources ? No 3.Concept developm ent and testing Can we find a good concept consumers say they would try? yes 4.Marketin g strategy developm ent Can we find a costeffective, affordable marketing strategy? 5.Busines s analysis Will this product meet our profit goal? yes yes yes 6.Product developm ent Have we got a technically and commerci ally sound product? 7.Market testing Have product sales met expectatio ns? yes No Send the idea back for product developm ent? No No No No No 8.Comme rcializatio n Are product sales meeting expectatio ns? No Modify the product or marketing program? No drop (Michael 2015) yes Reference List Figure 10.2 •Ian, M. (2014, Oct 15). Chinese Phone Upstarts Sell With Personality, Not Product . Retrieved April 20, 2015, from http://cn.nytimes.com/business/20150211/c11rivals/en-us/ Figure 21.3 •John, G. (2015, Jan 28). Using Smartphones and Apps to Enhance Loyalty Programs. Retrieved April 20, 2015, from http://www.nytimes.com/2015/01/29/business/smallbusiness/using-smartphones-and-apps-to-enhancesmall-business-loyalty-programs.html Figure 17.3 •Form 10-K annual report(2013, May 30).from http://ir.logitech.com/secfiling.cfm?filingID=1047469-13-6614 Figure 20.1 •Michael, F. (2015, Jan 18). Saturday Night in Taipei, and the Cool Kids Are at the Bookstore. Retrieved April 20, 2015, from http://sinosphere.blogs.nytimes.com/2015/01/18/saturday-night-in-taipei-and-the-cool-kids-areat-the-bookstore/?_r=1 22 Appendices 23
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