1
2
Figure 1.1 Linear regression model analysis on net profit and selling & distribution expenses of Rojam Entertainment Holdings Limited (8075.HK)
Record production & distribution music production digital distribution
Positive linear relationship
$1 selling expenses can produce ~$0.784 net profit
3
Net profit = c+ 0.784 Selling expensesr2(A) = 0.525 implies about 52% of the sample variability in net profit is explained by its linear dependence on marketing expenditure. r(A) = 0.72423
Source: Annual report of Rojam Entertainment Holdings Limited (8075.HK) from HKEX4
Figure 1.2 Linear regression model analysis on net profit and marketing expenses of Playmates Holdings Limited (635.HK)
Design development marketing & distribution of toys, family entertainment activity products
Positive linear relationship
$1 selling expenses can produce ~$1.356 net profit
5
Net profit = c+ 1.356 Selling expensesr2(B) = 0.876 implies about 88% of the sample variability in net profit is explained by its linear dependence on marketing expenditure. r(B) =0.93638
Source: Annual report of Playmates Holdings Limited (635.HK) from HKEX6
7
Figure 2.1 Competitive Analysis Figure 2.1 Competitive Analysis
Karaoke BoxKaraoke Boxtremendous innovative marketing campaignslimited service offeringMarketing communications
significant focus on celebritiesHK market becomes mature
Community Youth CentreCommunity Youth Centrenon-profit makinglow budget on marketing communicationslimited capacity & unfashionable image
8Source: California Red Limited & Neway Karaoke Box
9
Willing to try new entertainment apart from trad.?
n = 332
Target MarketTarget Market1.
innovators/early adopters
2.
fanatic/performers• 18-35 age group (Demographic)• exposure to internet (Behavioral)• get used to trad. entertainment• limited venues for performing
10
Have any specific target when hang out.? % of add. fees willing to pay
n = 332 n = 332
Source: Time Magazines
11
% of add. fees willing to pay
n = 332
12
•• Brand AwarenessBrand Awareness40% of target market aware of “Youth Club” by Oct, 2008to create customers’ retention of the ad in HK to 40% of audiences by Feb, 2008
•• DifferentiationDifferentiationbe unique from competitorsboth in physical & psychologicalmake “Youth Club” be the preferred brand of teens by Oct, 2008
•• Induce trialInduce trialachieve trail of Youth Club to 20% by Oct, 2008to gain 15% market by Oct, 2008
•• Positive brand imagePositive brand imagetrendy & healthy 13
14
StoryboardStoryboard
Part 1 – DreamEveryone’s dreamParadise of “ Free to choose”
Shot 1: A young man dated with 4 pretty girls(Voice-over: 每個男人都想…)
TVC designTVC design• not to spend promotional dollars on recruiting celebrities Ad Clutter• most important catch attention (humor, emotion & music)• exaggerating theme Choices
15
Shot 2 & 3: A boy playing video game console and got good result in exam(Voice-over: 每個細路都想…)
16
Shot 4: A dog having plentiful & variety meal(Voice-over: 連狗…都想)
17
Part 2 – Sad realityEveryone’s realityTragedy of “ No choices”
Shot 5: Back to reality, a family watching the Dream TVC happily(Voice-over: 但係…)(Bg. music: Sad music “Meditation”)
Shot 6: horrid wife… Shot 7: annoying homework… Shot 8: tasteless pet food…
18
Part 3 –“Choosing what you want at once”Describe the nature of Youth Club for the ease of understanding Mention brand name again for memorability
Shot 9: The “sad dog” screen become blurred and start speaking out the slogan. (Voice-over: 點解做人做狗都無得揀,黎Youth Club過百樣野比你揀, 你嗡得出o既野都有得玩)
Shot 10: Repeat the brand (Voice-over: Youth Club)
MeansMeans--
End Chain TheoryEnd Chain Theory
New Product:Awareness+Impression Brand Retention
Appeal & Execution FrameworkAppeal & Execution Frameworksurvey data revealed that in terms of attention & retention-
Humor, Emotional & Musical
• Part 1 –
Dream emotional appeal –
slice of life
• Part 2 –
Sad reality humor –
dramatization
emotional appeal –
slice of life musical appeal –
”Meditation”
• Part 3 –
“Choosing what you want at once” informative approach
Which are the most attractive & long lasting?
19
n = 332
20
•• Target Audience: Target Audience: – Teens who are innovative, creative,
like new ideas
•• Media Objective: Media Objective: – high reach to target & cost effective
•• Media & Vehicles selectionMedia & Vehicles selection -
based on variables like
reach, usage, frequency & cost
21
22
• TV & Radio are common media
TVCTVCimpact audience by visual & audio effectconveys brand imageespecially for attaching emotional feeling
RadioRadiochannels & programs
high degree of segmentationrecall of TVClow cost per reach
23
0 20 40
歲月風雲
舞動全城
同事三分親
一擲千金
味分高下
TVB Rating
Rating
Hours watching TV: 1 to 2 hrs: over 52% How many night watching TV: Every night: over 40%
Source: Breakthrough Ltd.
Source: CSM Media Research # Proportion in rating is counted by the two free TV Chinese channels in HK
24
Source: Asia Television Ltd.
Hours listening to radio: 1 to 3 hrs: over 75%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Favorite Radio Channel
Favorite Radio Channel
0.00%
20.00%
40.00%
Favourite Time Slot of Teens
Favourite Time Slot of Teens 25
Source: Breakthrough Ltd.
Source: Breakthrough Ltd.
• Printed newspaper: expensive with low appropriate reach
Magazines Magazines serve out target preciselyeasy to convey product informationhigh quality & special design are availablelonger life span, can keep for reference
26
19.20%
30.60%
33.80%6.40%
21.30%
21.40%
Types of Magazine
Integrated Youth Entertainment
Current Affairs Fashion Other
No. of Magazine will read per month: 1 to 2 : over 50% ; 3 to 4: 28%
0100200300400
2006 Readership of youth magazine ('000)
2006 Readership of youth magazine ('000)
0200400600800
TVB Weekly Oriental Sunday
Sudden Weekly
2006 readership of Entertainment Magazine ('000)
2006 readership of Entertainment Magazine ('000) 27
Source: Breakthrough Ltd.
Source: Breakthrough Ltd.
Magazine Cost for 4
color Full page ‐AD
Readershi
p 2006 (‘000)
CPM
TotalReader Profile: Percentage of segmented
readershipAged 12 – 29 Aged 20 – 29
% Readership *
% (‘000)% Readership*% (‘000)
Easy
Finder30,000 366 81.96 15 24.4 4
2153.72
Milk 46,000 143 321.68 36 51.48 4
868.64
East
Touch32,500 117 277.77 28 32.76 3
642.12
Sudden 55,000 661 83.2 8 52.88 2
2145.42
28
MTRMTRwide network coveragesophisticated segmentationlow cost per reachformat & design has high discretion
29
Mass Coverage over 2.8 million people/week
MTR advertising network:reach over 54% of the total
population in HKYoung
61% of all 15 - 34 year olds travel on the MTR.
2 phases of Ads
Which is the most attractive & long lasting?
30
Source: HK Nielsen Media Index 2004 - MTR Reach & Frequency Study
Phase 1: The Outburst - Plasma ring zone with extension + 4 Pillars and Floor vision surrounding
Phase 2: Student Package- Escalator Crown Network (253 panels)
31
‐20%
0%
20%
40%
60%
80%
Change
in %
Change in HK Media Coverage 2000 vs 2005
Change in HK Media Coverage 2000 vs 2005
‐10%‐5%
0%5%
10%
Newspaper
Magazines
TV/Radio
Box Office
Cable/Satellite
Internet
Growth of time spent Online
Growth of time spent Online
• high reach, wide coverage especially to teens
• wide segmentation• low cost per reach
• HK internet accounts: 3.1 millions
• household broadband penetration rate: 68.7%
32
Source: Synovate media Alths HK 2006
Source: Media Guide 2006
Source: Yahoo e-marketing
0 50 100 150
Everyday
2‐ 4 days
5‐ 7 days
8 days or above
Frequency to visit internet forum
Frequency to visit internet forum 33
Messenger MSN
Top Popular 15 Websites in HK
1.Yahoo! HK2.Discuss.com.hk3.Xanga.com4.Uwants.com5.Youtube.com6.Window Live7.Facebook8.Microsoft9.HKJC10.Google.com.hk11.Atnext.com12.Google13.Watch.cc14.Baidu.com15.Blogger.com
Top Popular 15 Websites in HK
1.Yahoo! HK2.Discuss.com.hk3.Xanga.com4.Uwants.com5.Youtube.com6.Window Live7.Facebook8.Microsoft9.HKJC10.Google.com.hk11.Atnext.com12.Google13.Watch.cc14.Baidu.com15.Blogger.com
Source: Alexa Internet, Inc34
• most popular website in HK• advertising analysis &
evaluation• search Marketing
• Hitwise.com: HK has the highest volume of visits to forum
• Cnzz.com: 280,000,000 per month• >96% visitors of uwants.com are
aged fewer than 35
• increasing trend of reading news online
• free subscription• ranks no.1 online Chinese news• most visitors are teens
35
3%
56%31%
8% 2% 0%
Age Group in Atnext.com
20 or below 20 to 29
30 to 39 40 to 49
50 to 59 60 or above
Source: Hitwise Pty. Ltd
Source: atnext.com
36
Steppingstone to StarSteppingstone to Starroad show performance in crowded: MongKokrefer the talents to artiste management firmmake noise in the public selected by “Views” countpublish by ATV (new image)
37Source: Asia Television Ltd.
Net meetingNet meetingabout 55.5% of young people always use MSN to chat with others
(Youth Opinion Polls)
43% of the interviewed youngstersuse MSN everydayco-operate with Microsoft messengeronline reservation / check out event
38
Usage of MSN
Source: The Hong Kong Federation of Youth Groups (HKFYG)
n = 332
SponsorshipSponsorship+ve imagebrand awarenessin forms of annual performance/ sports event(Cycling competition is a proposed event)deliver some advertising specialties
39Source: Standard Chartered
Source: Sanmiguel
40
SweepstakesSweepstakesattract target customers - teenagers electronic products as the prize
corporate with shopping mallprize enables people free to consume in Youth club within certain period
41
DiscountDiscount“YC” = Youth Cluboffer discount for whose abbreviation name consists of “Y” & “C”e.g. Yau Chung Wai = YCW
Get the discount
42
Cash CouponCash Couponco-operate with retailers (e.g. Tom Lee Music & adidas)share same pool of customersoffer cash coupon if counterfoils are showed
Youth Club
Retailers
Geographical coupon: Whampoa Garden & Kwai Fong
43
Mutual benefit
SUMMERExamX’mas New year
Easter
44
45
0
200000
400000
600000
800000
1000000
1200000
1400000
Budget (HK$)
Budget (HK$)
Budget Allocation of HK$2,987,055 Media and
Medium selectedAds details Frequency Period Cost HKD % of
budgetFormat Duration
Broadcasting - TV
TV ads, Late Prime Time at TVB and ATV
30 sec 15 – 20 times per month
1 months 867,405 + 391,650 = 1,259,055
42%
Broadcasting - Radio 903
Sound ads 30 sec 2 times/night, 20 days/month
2 months , 196,000 7 %
Print - magazines 4 colors, Full page
2 magazines 1 page/issue 1 months,4 issues 238,000 8%
Online – Forums, online news and other popular websites
Banners, Word Searching
Whole year 142,000 5%
Outdoor - MTR Phase 1 + Phase 2
3 weeks + 4 weeks 716,000+ 76,000 = 792,000
27%
PR functions:-Steppingstone to Star- Net meeting- Sponsorship
few times/year 240,000 8%
Sales Promotion:- Sweepstakes- Discount- Cash Coupon
Discontinuous 120,000 4%
Total $ 2,987,055
46
Suppose the budget of this campaign is allocated by 10% of the projected sales.Projected Revenue: $ 29,870,550
Source: Rate card available in the market/official website
47
• Integrated Advertising, Promotion, and Marketing Communications E. Clow & D. Baack (3rd edition 2007) Prentice Hall
• Principles of Marketing Philip Kotler & Gary Armstrong (11th Edition 2006) Prentice Hall
• Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant W. Chan Renee Mauborgne http://en.wikipedia.org/wiki/Blue_Ocean_Strategy
48
http://en.wikipedia.org/wiki/Blue_Ocean_Strategy
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