<2013-2 New Media Advertising Professor Jang Ho Moon>

Analysis of Facebook Marketing and Recommendation;

SK Telecom

0912456 Business Administration Department Hanna Lee

1. Introduction of Client and Product Category

Brief introduction of your client and product category; SK Telecom

SK Telecom has pioneered new frontiers in the Korean ICT industry since 1984. They fundamentally offer mobile telecommunications services and other additional services such as game portal for mobile phones, ubiquitous music service and online portal. The number of total subscribers is 27 million which is meaning 50.3% of market share. Their operation income was 1.76 trillion won and net income was 1.1 trillion based on the fiscal year of 2012. SK Telecom is consistently growing as the first mobile telecommunication service company in Korea with technology leadership, new growth business, global awards & recognition and customer value

innovation.

SK Telecom’s business area consists of 4 parts, telecommunication & convergence, hardware, service platform and new engine growth. Telecommunication &

convergence covers Business solution, mobile, individual marketing, M2M, N/W R&D, sensor, smart device and wireless network. Hardware part is focusing on developing memory, modem and SoC. Service platform means NFC, Commerce, media and LBS. New engine growth covers education, R&D, health care based on ICT convergence.

Armed with extensive experience in mobile network technology and service, SK Telecom is rapidly moving beyond the Korean market to become a Global ICT Leader. SK Telecom has partnered with major telecommunications companies in Asia to build a global ecosystem, and aggressively took part in activities of international organizations and telecommunications agencies, including ITU, UNGC and CDG, to strengthen our global presence. SK Telecom will continue to make all-out efforts to develop innovative technologies and generate tangible results in the global market, thus contributing to the advancement of the Korean ICT industry and the nation’s status in the global arena.

2. Analysis of Client’s Social Media Page

Overall observation

- The number of people who is mentioning SK telecom: 49,022

- Total “Like”: 956,661

- The hottest weak: 25th August 2013

- Age range of customers who visit most: 18-24

Analysis of postings

- Frequency of the message: 2~3 postings a day

- Language/tone they use: Korean/formal tone

- The types of postings; information, behind stories of ad, event with gift, emotional phrase, their promotional event

- Formats they use: text+photo

- Feedback: only to complaints

Best contents & Worst contents

- Best Effective contents

Gifticon Event for military camp

This event posted on 28th July, 2013 and got 18,214 “Like” and 22,035 comments for only 2 days. Military camp which is commented the most would get gifticon for ramen. This event targeted young men who just finished their army service or have memories of army camp.

Movie Tickets Event

This event posted on 12th August 2013 and got 5,356 “Like” and 1,417 comments. Who press “Like” can get 2 tickets for movie ‘Now You See Me’.

Preference to woman type

This post was uploaded on 16th August, 2013 and got 4,027 “Like” and 3,532 comments. This is not gift event but just kind of funny survey.

Two posts which got the most “Like” and comment were event which give benefits to people so it made customer participate more than other posts. Therefore, I can guess that people attracted by gift the most and kind of fun as second.

- Worst Effective Contents

Speed check

This post is uploaded on 15th October, 2013 and got 262 “Like” and 22 comments. This post content is about speed of LTE in Seoul main spots such as Seoul station, Myung-dong.

Tworld Direct; change parents’ cell phone event

This post was uploaded on 8th October, 2013 and got 271 “Like” and 21 comments. This is kind of event which gives subsides for changing parents’ cellphone.

LTE-A-Class city attack

This post was uploaded on 2nd October, 2013 and got 281 “Like” and 6 comments. For 3 days in Seoul city and for 1 day in Busan city, customers can take 20 LTE-A-Class special vehicles driving from Gangnam to Hongik University for free and enjoy LTE-A.

Those 3 the worst effective contents were all different types; informational post, financial support event and experience event. But I can find one common thing among them. These posts don’t have any prompt gift or benefit for sharing or pressing “Like”.

- Discussion Sample; is it good or bad example?

This post is uploaded on 9th October, 2013 which is Hangeul Proclamation Day. The post consists of text ‘Proud Hunminjungum’ and photo image experessing korean message with alphabet. This post got 8,873 “Like” and 78 comments and became 2nd popular post of SK Telecom in previous 3 month. If we only fouce on the number of “Like” and comments, this post can be considered one of the most effective contents. But If we look into reaction to this post, we cannot decide whether this post is good or not. Some people expressed their positive opinion about this post like ‘It’s creative! I think this post is meaningful for Korean’. However others commented ‘The barnd name, SK Telecom, is English. It quite ridiculous’ or ‘And people who want to apply for SK Telecom need not Korean test score, but TOEIC or TOEIC speking score’. Plus, some people including myself cannot understatnd the purpose of this posting.

3. Analysis of Two Competitors’ Social Media Page

KT

◆ Overall observation

- The number of people who is mentioning KT: 18,539

- Total “Like”: 523,848

- The hottest weak: 20th January 2013

- Age range of customers who visit most: 18-24

◆ Analysis of postings

- Frequency of the message: 3~4 postings a day

- Language/tone they use: Korean/less formal tone with emoticons

- The types of postings; information, TVCF, event with gift, their promotional event

- Formats they use: half text+video, and half for text+photo

- Feedback: no feedback at all

◆The best and the worst effective content

- The best effective content; New opened TVCF video clip on 7 th July, 2013 got 5,061 “Like” and 614 comments.

- The worst effective content; Video about visiting event promoting twice faster LTE service. This event was planned to give people 2 pears which is pronounced

as same as twice(두배). This video clip includes event process and reaction of

people who got 2 pears. The post was uploaded on 11th July, 2013 and got 74 “Like” and 3 comments.

◆ Bad example

During observing KT’s Facebook, I could found this comment on several posts. I cannot figure out this complaint is real or not, however this made customer or people consider KT as unreliable company. Facebook is easily accessible tool for everybody so this kind of comments can be delivered so fast. Therefore KT’s social network managers have to handle this in proper way.

LG U+

◆ Overall observation

- The number of people who is mentioning LG U+: 7,467

- Total “Like”: 162,997

- The hottest weak: 21st July 2013

- Age range of customers who visit most: 18-34

◆ Analysis of postings

- Frequency of the message: 1~2 postings a day

- Language/tone they use: Korean/less formal tone

- The types of postings; Information, event with gift, CF only for Facebook, their promotional event

- Formats they use: half text+video, and half for text+photo

- Feedback: no feedback at all

◆The best and the worst effective content

- The best effective content; Gift event posted on 30 th September, 2013 got 6,405 “Like” and 1677 comment. This figure is quite a lot compared to other postings of LG U+. The reason why this post got these so many “Like” and comments is mega gift; Canon EOS 100K full kit. Usually, gift for Facebook event is small things such as chocolate bar and beverage.

- The worst effective content; This washing hands campaign posted on 11th July, 2013 got 47 “Like” and 1 comment. I guess the reason why this post got the lowest interests from people is no relevance between company and contents and the content is not creative at all.

4. SWOT & Insights

Similarities and difference among SK Telecom, KT and LG U+

The reason why I chose telecommunication company for analyzing their Facebook marketing was I thought they have creative idea and a sense of leadership because they are communication and internet company based on innovative leading technology. However after I finish observation, the result is so

depressing. Those three companies are uploading same types of posts and I couldn’t find any difference or company’s own traits on the Facebook. The only I could find difference was just format of post; picture+text or video clip+text.

SWOT analysis

- Strength; The largest number of people having interest in SK Telecom page based on the highest market share, idol TVCF model(Their secret video clip or photo), good feedback to complaints

- Weakness; Trite contents, no their own traits, no interaction with consumers except complains, formal tone

- Opportunity; Growth of Facebook marketing, cost free for marketing

- Threat; Other company’s creative Facebook marketing, higher stimulation level of consumer by being familiar to Facebook marketing

Conclusion; Insights

Most of people are attracted by event with gift however, it is not including financial support event such as Tworld Direct. I means if there is no time bound or cannot get gift in short time, their participation rate is going to low. Plus, the value of gift has great influence on participation rate. Also, people are interested in TVCF and behind story such as NG cuts or making films. By watching backstage story, consumers feel a sense of familiarity with company and get their favorite stars’ newest stories and picture. On the other hand, customers have low interests in just informational post and last event. They prefer upcoming events not previous one. And commonly meaningful post such as Hangeul Proclamation Day post are quite popular comapred to other posts, even they not be chosen as one of the best effective contents. Weak points of 3 companies are lack of interaction with consumers and same types of contents.

5. Recommendation

Using consumers’ stories

There are some touching stories and funny comments from consumers on SK Telcom’s Facebook. However, SK Telecom just watches and leaves them. I suggest share these stories from customers after get permission. It can make

deeper relationship with writer consumers and other people feel more a sense of intimacy compared to contents from marketer.

Example)

Chilly whether came. Even cold outside, our mind is warm. Please share your memorable warm stories with cell phone or text msg.

Re; I live alone in Seoul now because of my university. Few days ago, I broke up with my boy-friend. I was so vulnerable and felt loneliness a lot but there is no parents with me at that time. One day, just before I fell asleep with tear I got msg from my father. He said life is made of meeting and saying goodbye, so this breaking up means another start. Re;Re; Thank you for sharing your story. I am manager of SK Telecom SNS department. Can I share your story with another customer?

Meaningful events with prompt benfit

Consumers tend to be attracted meaningful events and gifts a lot. Therefore I combine these two factors into one for making synergy.

Example)

Do you think SK Telecom is just telecommunication service company? The answer is “NO”. We have diverse business field including production of health care device and system. Please share this post and press “Like”. 10”Like” and 1 “share” are going to be one health device for Africa children. And after 1 month, we will choose 5 people among who share and like this post, and special gift will be given to them.

Using informal language and easy tone

Now SK Telecome is using formal words and polite tone on Facebook. If the most reachable cutomer’s age range is comparely high(40-50), staying in this communicating style is the best way. However, accodring to analysis from facebook, most of customers visiting SK Telecom’s page is 18-24. Therefore some posts with easy tone and informal words can be accpeted and make fun.

Example) please understand using Korean for expressing details.

요즘 10 대들의 마음을 탈탈 터는 탈곡기와 같은 존재라고 하죠?저도 원래는 조용히 사무실에만 있는데 이번에는 광고현장에 다녀왔어요*^^*딱히… 사심이 있어서 그런건 아니고 업무 차 다녀왔다고 해두겠습니다.근데 실제로 보니까 너무 멋있더라구요ㅠㅠ 눈에서 하트가 뿅뿅!그래서 특별히 광고제작팀에 부탁해서 얻어온 미공개 영상입니다.함께 공유하고 같이 눈 정화 시간을 가져요~