Strategic Marketing Management: THE BIG PICTURE

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WOW Simulation
Team 1
Kris Bader
Vignesh Balasubramanian
Sara Baskentli
Mayur Batra
Chetan Bhatia
The WOW Big Picture
execute
search
product experience
main variable: need for Socialization
dynamic variable: need for Escape
service
STP
Q1
value
segment
business
objective
Entity
goal
competence
marketing
objective
retention
acquisition
Acquisition
retention
in mind
source of
volume
steal share
stimulate
demand
Stimulating
demand in
non-users,
Attract new
category users
price
main variable
dynamic variable
target
TA description
position
5-box
positioning
statement
place
evaluate
length
breadth
depth
awareness
information
promotionimage
behavior
Business Objective
• Fundamental Entity: World of Warcraft (WOW)
• Goal: To grow membership by gaining 2M users
who are entering the category every month.
• 8 months x 2M= 16 M people
• Core Competence: Master of Themes and
Stories
– Skill @: IT Infrastructure/ R&D
– Benefit: Escape from real life routines through
different themes and stories
WOW Investment Plan
Key Activity
marketing objective
stimulate
demand
acquisition
retention
Adopt a Role
Player
WOW Loyalty
Rewards
Free week
promotion
Bookstore
channels
steal
share
New stories
initiative
source of volume
Continuous
Improvement
Geek love
initiative
Target Audience Description
Ben is a 22 year old, freshly-trained EMT from Indianapolis. He describes himself to
people as a football and car enthusiast. Just 5 months ago, he purchased a brand new
Hyundai Genesis Coupe with his first paycheck. Two Sundays ago, Ben attended the
Colts football game, where he mourned the team’s 9th straight loss of the season. As he
was fighting with his girlfriend on the drive home, he failed to pay attention to the red light
that was fast approaching. Upon entering the intersection, Ben was almost hit by a police
cruiser, but swerved out of the way at the last minute, crashing into a storefront of a CVS
Pharmacy. Ben was taken to prison where he posted a $5,000 bond the next morning.
He was charged with failure to stop at a red light and destruction of property. When he
arrived home later that day, his girlfriend had moved out and left a breakup letter, in
which she also threatened to sue him for her injuries sustained from the crash. Ben went
to sit down at his computer and fell to the ground when the chair broke. His dog ran
downstairs to check out the commotion and was so excited to see his owner that he peed
all over the brand new carpet.
WOW 5-Box Positioning Statement
My friends created a
world in WOW and they
have great friends.
When I join this
community I’d be able to
make more & better friends
WOW is an online role-playing
game all my friends are there.
WOW is the place to escape
from real life routines
Reasons to believe
1. Friends referral
2. Advertisements
3. Free trials
I am going to subscribe to
WOW because there is no
better way to escape from
real life and it is
my game!
I am going to try WOW for
free
4B’s
Bodies
Positioning
Probability of
Conversion
X
Size of
population
44%
Segmentation
and Target
2M
Behaviors
Converted
Customers
X
Purchase of
WOW/customer
880.000
$17.99
Bucks
Additional Revenues
(acquisition stimulate
demand)
$15.831.200
4B’s continued- BELIEFS
Key Activity
marketing objective
steal
share
stimulate
demand
acquisition
source of volume
Why are
people staying
out of
category?
1. Unaware of
the benefits
2. Lack of
awareness
3. Price
4. Importance
retention
1. Stress on raising
the importance of
WOW
as an option to
escape from reality
2. The perception of
WOW delivering on
that promise can
be achieved initially
by word of mouth
and gradually by
usage
Outcomes
Goal
Strategy
Investment Variables
Results
What was your
business
objective?
Describe your
strategy here
Tell us what
investments you
made
Did it work?
To grow
membership
by gaining 2M
users who are
entering the
category every
month.
We expected
that at the end
of the 8th
month 44% of
16M non
category users
will subscribe
to WOW.
What variables
did you
change? How?
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