FacebookArc Liu, Georgina Pang, Santa Redala

Eyal Shahar, Rafaela De Silva, Luisa Silva Emily Sonipersaud (Marketing Research Course - Spring, 2014)

Overview

• CEO of Facebook- Mark Zuckerberg

• Net worth $112 Billion

• 1.2 Billion Monthly Users

• Purchased WhatsApp for $19 Billion (450 Million Users)

Top Competition in the USA

Google Plus (300 Million Users)

Tumblr (300 Million Users)

Twitter (240 Million Users)

Managerial and Marketing Research Questions

1. What can we do to increase Facebook's revenue?

a) A concern that has been brought up by

consumers is the numerous advertisements on

Facebook. If we offer a premium Facebook

account with absolutely no advertisements, how

much would you be willing to pay for it?

Managerial and Marketing Research Questions

b) If Facebook introduces a new Facebook social

networking device that integrates the following:

Best possible phone camera on the market

LTE and Wifi Internet Services

Built-in photo editing service, filtering service and fast

uploading service

Significantly faster integration to Facebook, Whatsapp,

Instagram,  Vine, Twitter, Pinterest and Tumblr.

WhatsApp, Facebook chat services; including Facetime

Managerial and Marketing Research Questions

2.  What can Facebook do to increase and retain customer loyalty?

a) Determine which problems Facebook needs to address, in order of immediacy.

Please number the following problems

Difficulty in navigating privacy settings

Advertisements in the sidebar and on your newsfeed    

Inability to choose your layout and the lack of customization

Difficulty in organizing your friends list

Too many features (games, apps, notes etc.) and no concentration and/or niche.

Managerial and Marketing Research Questions

b) Facebook already has customizable privacy settings. However users have to go

through their entire friends list one by one and set them individually for each friend.

If Facebook introduces an organized feature that does the following:

Drag and drop multiple friends at a time, into groups with customizable privacy settings

Ability to customize how your profile looks to each group of friends

Methodology

Total Respondents: 122

Responded to all: 101

Sent Survey: Facebook, Twitter, Email, In-Person

Date Sent: March 26th 2014

Demographics

How much do you earn in a year?

36% are in the “Less than

$10,000” income range.

Only 75% provided

financial information.

Frequency of General Usage

How often do you use Facebook? 96% of Users

use Facebook more than once a week.

86% of Users use Facebook at least once a day.

Frequency of Feature Usage

80% of Users never play games.

Top features of Facebook rank:

1. News & Articles

2. Chat3. Photo & Video

Sharing

How often do you use these Facebook Features?

Severity of ProblemsPercent of users who think the problems are pressing:

Insufficient Privacy Settings with 60%

Lack of a niche with 57%

Advertisements with 56%

Lack of Customization with 56%

Difficulty in Organizing Friends List with 45%

Determine the severity of the following notable problems.

Game & Application Invites

What do you feel about the game & application invites from your friends?

75% dislike the

game & application

invites.

Almost 100% of our

respondents receive

these invitations. It is

a general problem

that every user

faces.

80% of Users almost never click on the advertisement links.

Effectiveness of Ads

Out of all the advertisements you see, how many actually sparks interest enough for you to want to find out more?

What can Facebook learn from its competitors?

Competitors

MOST OFTEN

LEAST OFTEN

How often do you use the following social media networks?

With regards to (1) on the scale:

Facebook remains most used social network,

beating out Instagram (2nd Place) by 41%.

With regards to (2) on the scale:

Instagram beats Facebook by 21%

Twitter close behind Facebook by 7%

Categories Percentage

Networking & Socializing 40.2 %

User Interface & Convenience 13 %

Photo & Video Sharing 12.1 %

Entertainment & News Feed 10.3 %

Everything 6.5 %

Others 18 %

What are they looking for?What do you like about your top three social media

networks?

What can Facebook do?

A Membership Plan

If Facebook introduces the following membership plans, which one would you

choose?

From Previous Slide on

Severity of Problems:

56% of Respondents

thought the overload of

Advertisements were a

pressing problem.

A striking 94% of

respondents will not pay

to reduce the

advertisements.

- No Fee- 100% Advertisements

- $9.99 per year- 50% Advertisements

- $15.99 per year- 0% Advertisements

New Privacy Features

Which of the following features (not yet introduced) would you be most interested in?

Ability to drag & drop friends into different

privacy groups.

Ability to customize how your profile

looks to each privacy group.

71% are open to new

privacy features

40% are interested in

the customization

feature.

31% are interested in

the Drag & Drop

Feature.

WhatsApp Integration

In addition to Facebook Chat, if WhatsApp Messenger were to be introduced on Facebook, would you use it?WhatsApp Messenger is a

Facebook owned smartphone application that allows you to chat with friends with WIFI.

As of February 2014, WhatsApp had 465 million monthly active users.

42% of respondents would use Whatsapp on Facebook if made available.

Rewards Program for Appreciating Loyal Users?

Effect on Usage

If Facebook implemented a rewards program, how would it affect your usage?

57% of our Respondents will spend more time on Facebook because of the rewards program.

34% of Respondents will increase usage significantly.

A Social Networking Device

If Facebook introduces a social networking device, how interested will you be to the following features?

From most interesting to least interesting:

Fast Upload Speed

Top-of-the-line Camera

Photo Editing Feature

LTE & WIFI

Simultaneous posting to various social media networks

Facebook Chat

Introduce rewards program

• Will increase the average usage per day

Game default settings

Group settings

• Easier interface with friends, family,

acquaintance (drag and drop)

Increase user creativity with profile

Recommendations

Next Steps

Traditional Focus Groups - further research on whether to

launch a Facebook Mobile Device, considering most

revenue is from mobile

Depth Interviews - to better understand what disturbs

users, and how to solve it.

• example: “57% of users think the lack of niche is

a problem” - what suggestions do they have to

solve it, and why?

Qualitative Research

Computer Assisted Interviews (CAPI) - to gain insights from users who are willing to increase hours usage with rewards program

• learn how many hours will increase per user

• learn user preferences for rewards cards

Internet - A link to a survey on their site

• which users would want to purchase membership

• will it have negative effect on brand image

Descriptive Research - Surveys

Marketing Team