nullnullSINA.com
January 16, 2003SINA.com
January 16, 2003Ogilvy BeijingAgendaAgendaMedia Competitive Scene
Sina.com Insights & Positioning
Marketing Approach
Our ApproachnullInternetEstimated no. of Internet Users in China Estimated no. of Internet Users in China 35%79%91%123%Source : CNNIC (Jan 2000)Internet Users - Geographical DistributionInternet Users - Geographical DistributionSource : CNNIC (Jan 2000)%Internet Users - SexInternet Users - SexSource : CNNIC (Jan 2000)Female 15%Male 85%Male 79%Female 21%Jun 1999Dec 1999Internet Users - AgeInternet Users - AgeSource : CNNIC (Jan 2000)Internet User - OccupationInternet User - OccupationSource : CNNIC (Jan 2000)%Place of Internet AccessPlace of Internet Access%Source : CNNIC (Jan 2000)Online TimeOnline Time%Information Gathered OnlineInformation Gathered Online%Most Frequently Used ServicesMost Frequently Used Services%Telecom InfrastructureTelecom Infrastructure# of telephones (million) installedSource : IDCPC InstalmentsPC Instalments# of PCs (million) installedSource : IDCPC Penetration vs Internet AccessPC Penetration vs Internet Access%Source : CMMS Internet Access / PC Penetration =
58% 51% 62% 34% Internet SummaryInternet SummaryExponential growth in internet users more than double in 6-month time
Broad geographical coverage majority of users in key cities - Beijing, Shanghai, Guangzhou coastal markets show great potential
Gradual change of demographic profile male-skewed but the female share is increasing a significant portion of users are IT practitioners and students but increasingly spreads across different industriesInternet SummaryInternet SummaryLocal websites are getting more popular - e.g. SinaNet
Domination of key sites especially portals
Diversification of websites to suit needs of different markets - e.g. SinaNet and Yahoo in China, Hong Kong and Taiwan.
Internet alliance - China (Netease), HK (Netvigator) and Taiwan (Kimo)
Extensive websites emerge in China. Room for improvement in content only a small % of sites accept advertising Implications to advertisers
need to improve the websites
use of conventional & interactive media to drive trafficInternet SummaryInternet SummaryDrivers of internet development in China
expansion of information sources
drive from China government
aspiration of the new Chinese generation to have quick access to the world
fast-growing telecom infrastructure
increasing household penetration
Hindrance
narrow bandwidth
high telecom fee
language barrier
lack of Chinese information sources
issue of securitynullCompetitive Media ReviewIntroductionIntroductionSource of data
AC Nielsen Adquest
Media
TV + Newspaper + Magazine
Period:
1999 Jan - Dec
Area
Nationwide -- focus on Beijing / Shanghai Guangzhou
Based on mointored figures
Gross rate card rate without frequency/ special discount
Source
AC Nielson SRG
Web Category - Ad. SpendWeb Category - Ad. SpendRMB('000)142%408%197%Source : AC Nielsen Adex 1999Web Category -
Ad. Spend in Primary Cities (BJ + SH + GZ)Web Category -
Ad. Spend in Primary Cities (BJ + SH + GZ)RMB('000)81%198%361%Source : AC Nielsen Adex 19991999 - Top 10 Web Advertisers1999 - Top 10 Web AdvertisersRMB’000sSource : AC Nielsen Adex 1999Web Category -
1999 Media SplitWeb Category -
1999 Media SplitSource : AC Nielsen Adex 1999Key Competitors -
Share of Voice (1999)Key Competitors -
Share of Voice (1999)Sina.com - aggressive launch campaign in late 1999,
occupying more than 30% of total category spendSource : AC Nielsen Adex 1999Key Competitors -
Media Spend (1999)Key Competitors -
Media Spend (1999)USD’000sSource : AC Nielsen Adex 1999Yahoo.cn + Sina + Sohu + Netease -
Spending By Month (1999)Yahoo.cn + Sina + Sohu + Netease -
Spending By Month (1999)Spending skewed towards the 2nd half of the yearSource : AC Nielsen Adex 1999USD’000sSinaSinaSummary
1999 Spending : USD 1.29 million
S.O.V : 34%
2000 Jan : USD 33,373
Highlights :
TV
- Program mix:
*Drama(41%),
*Sports(20%),
*Variety(19%),
*Documentary(13%)
Press
- Beijing Youth Daily, Shopping Guide,
Guangzhou Daily, Nanfang Dushi Bao,
Nanfang Saturday, Zu Qiu, Shanghai Times
Wen Hui Bao, Xinmin Wanbao Press
14.5%Magazine
0.21%TV : 85.3%SohuSohuSummary
1999 Spending : USD 31.4 million
S.O.V : 8%
2000 Jan : USD 10,000
Highlights :
- 100% in newspapers
- Beijing Youth Daily,
China Youth Daily, Shopping Guide,
Guangzhou Daily,
Nanfang Dushi Bao, Securities Times,
Yangcheng Wanbao, Shanghai Times,
Wen Hui Bao, Xinmin Wanbao,
Shenzhen Special Zone DailyPress : 100%NeteaseNeteaseSummary
1999 Spending : USD33,000
S.O.V : 1%
2000 Jan : USD 22,651
Highlights :
- 100% press
- Beijing Youth Daily,
China Youth Daily, Guangzhou Daily,
Nanfang Saturday,
Yangcheng Wanbao,
Shanghai TimesPress : 100%nullBrand Stewardship
Customer OwnershipBrand Stewardship
Brand Stewardship
PerceptionsCall to actionEmotionsImageryCollective ‘Shared’ ValuesDifferentiationAwarenessCredibilityBrand PreferenceTop of MindTrustPublic Face of the
BRANDBrand Stewardship
& Customer OwnershipBrand Stewardship
& Customer OwnershipPerceptionsEmotionsImageryCollective ‘Shared’ ValuesDifferentiationAwarenessCredibilityBrand PreferenceCall to actionPersonalized OffersIntimacyRelevant Detailed InformationInteractive DialoguePersonal RecognitionPersonal RelevanceTop of MindTrustPrivate Face of the
BRANDPublic Face of the
BRANDWhat We DoWhat We DoCRM
Electronic Marketing
Scenario Planning
Database Marketing
Live ChannelsClient Service
Planning
Creative
Media
Interactive Technologies
ProductionDatabase Development
Customer Care
Digital PrintingConsultancyCommunicationsConnectionsCustomer Ownership Cycle-
Managing the Customer Value Gaps Customer Ownership Cycle-
Managing the Customer Value Gaps AwarenessConsiderationComparison &
BrowsingRegistrationPurchaseRepeatSupportnullSina.comSina.com Business ObjectivesSina.com Business ObjectivesContinue the leadership position in China dot com category
Maximize reach % of web users translating to the highest page views volume in China
Maximize no. of registered web users
Generate advertising revenues
Generate e-business related services revenues
Build Sina as a new mega internet brand with distinctive character and franchisable equitySina.com Marketing ChallengesSina.com Marketing Challenges
Identify a single, unique value proposition and (re-)define the category
Develop marketing program that lead to Sina's leading position in China
Expand perception of Sina as a general platform to embrace varied vertical properties
Derive a focused brand building and integrated communication plan and best optimize use of budget
Foster a favourable relationship with government, press and stakeholdersSina.com -- Drivers of SuccessSina.com -- Drivers of SuccessExtend Brand image
Drive desired behavior
Site visits
Registered membership
Repeat visits & continued participation in revenue driving events
Manage customer relationships to maximize loyalty
Optimize overall marketing performance and ROInullBrand Insights & PositioningWW Portal Prognosis: Flat GrowthWW Portal Prognosis: Flat GrowthOnly 20% of Web traffic will be through portals by 2002.
Only 20% of online sales ($8.7 billion) will be generated through portals in 2002 vs. 18% in 1999.
Source: Jupiter Communications, 1999WW Competition for Portal Traffic is HeatedWW Competition for Portal Traffic is HeatedSource: Media Metrix, 1999WW Portal Satisfaction RateWW Portal Satisfaction Rate% saying they are totally satisfied with the brands available in the categorySource: BRANDZ, the WPP Equity StudyUS Users Perceive Leaders in
"The Pack”US Users Perceive Leaders in
"The Pack”Source: BRANDZ, the WPP Equity StudyWe Create by Working
Through a Brand RelationshipWe Create by Working
Through a Brand RelationshipCustomer Segment Profiles
BrandPrint
Product Positioning
Customer Prints
Marketing Communication ApproachMarketing Communication ApproachCustomer Acquisition StrategyCustomer Acquisition StrategyRelationship MarketingMedia Drive to WebPartnerships & Exclusive OffersPush cross-sell and up-sell with targeted direct marketing techniques
Digitally capture customer knowledge to inform relationship marketing
Establish e-business services affiliates and partnersDrive traffic with relevant media
Continually optimize media buy based on learning
Leverage Sina.com communications/ advertisingnullOne-to-One Marketing1:1 Relationship MarketingRequirements for Effective 1:1 MarketingRequirements for Effective 1:1 MarketingCustomer ProfilesEffective 1:1
CommunicationsDB Marketing Infrastructure (tbd)Targeting
Offer Strategy
Optimal Media
Message Strategy
Online RequirementsOpportunity Sizing
List Generation
Campaign Tracking
Customer Tracking
Automated emails
Personalized Content
Testing & Learning
Measure Marketing PerformanceInvestment aligned with high-value opportunities
Drive response through relevant messages & offers
Reduce acquisition costs
Maximize share of spend
Maximize ROI Needs & Preferences
HH Demographics
Purchase History
Marketing Response History
Online Behavior Customer Database
Campaign Management System
eMail Campaign Engine
Response Handling
Metrics & Measurement Tools360º Degree Branding
Every point of contact builds the brand360º Degree Branding
Every point of contact builds the brandSegmented
Brand CommunicationsGeneral Brand
Communications*TVCRadioPrintOnline
AdvertisingSite
ContentCustomer
ServiceDMail
/E-Mail*nullMedia Allocation ModelTop wired segments, IT print
lifestyles Mag%MagazinePrint Ad, sponsorship
content partnership%NewspaperAdvertising, exposure effect
barter deal%OutdoorReach, frequency & geography %TVReach, frequency
top wired segments%RadioWebvertising, drive to web, link
sponsorship, strategic alliances%OnlineE-mailing and database marketing%Targeted MailTracking and MeasurementTracking and MeasurementAdvertising communication effectiveness
Brand score tracking v.s. key competitorsOur ApproachOur ApproachProject ScopeProject ScopeCustomer segment profiling
Sina senior executive interview
Sina loyalist profile/behavior study
Customer print development
Competitive positioning analysis
Brand positioning
Brand audit & brand print development
360 degree brand management planning
Integrated communication planning
Brand campaign creative development & master media planning
Brand and communication tracking study planningThe first next step:
Talk to the CustomerThe first next step:
Talk to the CustomerQualitative research to determine:
Expectations of Sina.com as a gateway
Usability, stickenss & loyalty of Sina.com
Reactions to positioning and promotion of Sina.com
Competitive comparison
Quantitative research to determine:
Current portal use of web users *****
Branding scores *****
Types of new services and experiences expectedTimingTimingConfirmation of scope and quotation by end Mar
Project completed by early Jun 2000QuotationQuotationRMB 1,000,000
third party research costs excluded
media plan and buy services excluded
Payment:
downpayment (contract signed) 30%
interim term payment 30%
final payment 40%Next ActionNext ActionClient to review this proposal
Agency to discuss with Client on 20 Mar 2000null