How can MyTV BG
attract more customers
and increase
company’s sales in
Denmark?
Katerina Angelova Yordanova
Katerina Yordanova
Submission date: 02.01.2015
How can MyTV BG attract
more customers and
increase company’s sales in
Denmark?
Bachelor Degree in International Sales and Marketing Management
Author: Katerina Yordanova
Assignment: Bachelor final project
Supervisor: Palle Rasmussen
Submission Date: 02.01.2015
Katerina Angelova Yordanova
Characters: 96 512
Submitted: 02/01/2015
Submission Date: 02.01.2015
Katerina Angelova Yordanova
Table of Contents
Introduction .............................................................................................................................................1
Background Description………………………………………………………………………………………………………………….…1
Purpose…………………………………………………………………………………………………………………………………………1
Problem Formulation……………………………………………………………………………………………………………………1
Delimitations………………………………………………………………………………………………………………………………..2
Choice of Scientific Paradigm………………………………………………………………………………………………………2/4
Methodology………………………………………………………………………………………………………………………………..4
Quality assessment and source criticism…………………………………………………………………………………….….5
Analysis………………………………………………………………………………………………………………………………………5/16
Info from the company………………………………………………………………………………………………………………16/19
Business Law Issues……………………………………………………………………………………………………………………19/25
Interviews…………………………………………………………………………………………………………………………………..25/30
Balanced Scorecard and Strategy Map…………………………………………………………………………………….…30/33
Osterwalder’s Business Model – Canvas……………………………………………………………………………………33/36
Conclusion………………………………………………………………………………………………………………………………………36
Bibliography…………………………………………………………………………………………………………………………………….37
Submission Date: 02.01.2015
Katerina Angelova Yordanova
Executive Summary
After an assessment of the information provided by the company and additional field and desk
researches, I came up with an idea which can be used by “MyTV” company to increase their sales
and attract more customers to their service paid software in the Danish region. These are the
main areas in which they have problems as seen based on the research – until now they have
targeted the wrong target group. They have targeted the group of 25-34y, who are mainly men
auditorium, who are either sports fans or technophiles. As showed from the interviews, the
company has to change to another target group – 18-25 years and to target mainly the women
auditorium, who prefers to watch movies and TV shows.
Based on the Business law issues – the laws obstacles and advantages connected to having an
Internet-based service business abroad, the company has covered all the necessary aspects,
such as Privacy Statement, General terms and provisions, Service provided, Terms of service,
Financial conditions, Rights and obligations of the parties, Intellectual property, Responsibilities,
Returns and Disputes, Payment methods and Final provisions. As backed up by the field research,
the interviews made in Denmark with Bulgarian people, who know the service or use it, the same
people have showed high degree of satisfaction from “MyTV”’s company politics – 86%.
Concerning the Balanced Scorecard, the company is performing well in all the 4 aspects
(financial, customers, internal process, learning and growth). As to the “Financial” aspect, the
company is benchmarking well against “Telemost”, which is their biggest competitor in the
Danish region, but “MyTV” is holding the advantage to provide its customers with the bTV
channels, because of the partnership with their website, where there is also a redirecting link to
“MyTV”’s webpage. Regarding the “Customers” aspect, the company has to do product
development, as it was shown from the Interviews and backed up from the Business model
Canvas, where it was apparent in the value proposition, that “MyTV” is already giving low price,
but high quality and speed of service to its current customers in Denmark. There is also the
objective of after-sales service efficiency, which can be kept in track with the complaints rate and
customer retention rate. As for the “Internal Process”, the objective is to improve service
offerings, which can be measured by revenue of new TV packages. As showed from the
interviews, big part of those 18-25 years, the so-called ‘preferred’ target group for the new
product, will choose the company’s services mainly because of the partnership with bTV, which
gives customers the access to bTV channel and its daughter 5 channels (‘bTV action’, ‘bTV Lady’,
‘bTV Cinema’, ‘bTV Comedy’ and “RingBG”). Last but not least, “Learning and growth” aspect, the
company knows how to motivate its employees to work towards common goals and the staff
working is also available of the up-to-date technologies, since they are using the “Intercom”, one
of the newest software for attracting and retaining customers. That tool shows them who is using
the product and makes it easy to personally communicate with those people through targeted,
behavior-driven and in-app messages.
Based on the desk and field researches done, my idea was for developing a separate product
called “bTV Lovers” TV package, where to include all those bTV connected channels. For this to
generate sales, it should first be promoted on their partnership website – bTV’s webpage and with
the 7-days free testing of service, like the other TV packages provided from “MyTV”’s company. It
also has to be on a lower price than 7 euros a month, since it will include only 6 channels, but the
price has to be determined based on the resources for developing it as a separate unit. In my
opinion that way “MyTV” will attract more customers from this new target group – the 18-25 years
ones, which will also generate higher revenue from the new product sales for the company itself.
Submission Date: 02.01.2015
Katerina Angelova Yordanova
1. Introduction
1.1 Background description
“MyTV” BG is a company that provides paid software for a package of TV channels for the
Bulgarians abroad. The company provides the mostly watched TV channels on air, also a new TV
content every day, 7 days free testing of the service, HD quality and all of this in the price of 7
EURO for a month. “MyTV” BG also provides its customers with a mobile version of this TV
channels software. The company already exists in 45 countries. Some of them are Austria,
Germany, Iceland, Latvia, Poland, Hungary, Holland, Spain, Canada, USA and many more. It also
exists in Denmark. Since I am studying marketing and management in Denmark and have some
knowledge about which other companies provide the same service in this geographical region,
the company decided to give me the task to do a research for them. So that my BA project would
act as a research concerning which is the current target group in Denmark and does it have to be
changed. What are the Bulgarian’s preferences for Bulgarian TV channels abroad? And last but
not least, how to increase “MyTV” BG sales and how to retain and attract new customers.
1.2 Purpose
The purpose of this project is to improve the “MyTV” BG sales and customers’ knowledge about
the company’s services in the Danish region by showing the way how to do it based on their
Internet marketing service business and the company’s business model analysis.
1.3 Problem formulation
The main question of this project will be:
Which actions should be taken to increase sales and attract more customers for “MyTV” company
in Denmark?
In order to answer the main question, there is a need to give an answer to some sub-questions in
order to have a full view of the problem.
1) How can be improved the current target group of “MyTV “ in Denmark by focusing on sales
revenue?
2) What are the current target group preferences for a designed TV package in Denmark?
3) How the Internet marketing affects such kind of online business?
4) How does the business model of “MyTV” looks like?
5) How does the Balanced Scorecard of “MyTV” looks like?
6) Which is the law obstacles connected to such a business in Denmark?
7) Which online tools/ways can be used in attracting and retaining “MyTV” customers in
Denmark?
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Katerina Angelova Yordanova
1.4 Delimitations
The first one is connected to the fact that the project will only cover the company’s activity
regarding Denmark geographical region. The second is the industry where the company operates,
because it is the only area the company is working. The third one is the type of business, which is
internet marketing only, because the company does not have functional offices abroad.
1.5 Choice of scientific paradigm
This project is going to be a scientific piece of work. Science is an attempt to understand, explain
and predict the world we live in. In fact, this is not the full description of the word “science”,
because the religion also attempts to do the same, but the religion is not considered as a science.
A good feature of the science is that it is based on experiments, but not all science can be
experimental. This science that cannot be experimental is based primarily on observations.
Another important feature of science is the construction of theories. Scientists do not just write
down the results of experiment or observation, but they do want to explain those results in terms
of general theory. Last but not least, science is based on knowledge and there are some different
types of knowledge. It can be for example knowledge by acquaintance, by description or by
induction.
(WhatIsScience)
The knowledge of things is considered two kinds of knowledge. Knowledge of things, when it is
the kind we know is knowledge by acquaintance. This one is simpler than the knowledge of
truths, though it is hard to assume that human beings ever, in fact, have acquaintance with things
without at the same time knowing some truth about them. Knowledge of things by description, on
contrary, involves some knowledge of truths as its source and ground. But first it is a good idea to
point out the difference between the terms - “acquaintance” and “description”. People commonly
have acquaintance with anything of which they are directly aware of, without the intermediary of
any process of inference or any knowledge of truths. For example, in the presence of a table, one
is acquainted with the sense-data that make up the appearance of the table – its colors, shapes,
darkness, smoothness, etc.
In addition to human acquaintance with particular existing things, people also have acquaintance
with what is called universals, that is to say, general ideas, such as whiteness, diversity,
brotherhood and so on. Concerning the present, it is only necessary to guard against the
supposition that whatever people can be acquainted with, must be something particular and
existent. Awareness of universals is called conceiving, and a universal of which people are aware
is called a concept. It can be seen that among the objects with which human beings are
acquainted are not included physical objects (as opposed to sense-data), nor other people's
minds. These things are known to people by what is so called 'knowledge by description'. By a
'description' it is meant any phrase of the form 'a so-and-so' or 'the so-and-so'.
A phrase of the form 'a so-and-so' shall be called an 'ambiguous' description, a phrase of the form
'the so-and-so' (in the singular) , shall be called a 'definite' description. Thus for example, 'a man'
is an ambiguous description, and 'the man with the iron mask' is a definite description. That is,
they were known by description. The essential point is that one knows that the various
descriptions all apply to the same entity, in spite of not being acquainted with the entity in
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question. But if people are to obtain a description which they know to be applicable, people shall
be compelled, at some point, to bring in a reference to a particular with which they are
acquainted. Such reference is involved in any mention of past, present, and future ,as opposed to
definite dates, or of here and there, or of what others have told us.
It would seem that, in some way or other, a description known to be applicable to a particular,
must involve some reference to a particular with which people are acquainted, if their knowledge
about the thing described is not to be merely what follows logically from the description. For
example, 'the most long-lived of men' is a description involving only universals, which must apply
to some man, but human beings can make no judgements concerning this man which involve
knowledge about him beyond what the description gives. The chief importance of knowledge by
description is that it enables people to pass beyond the limits of their private experience. In spite
of the fact that people can only know truths which are wholly composed of terms which they have
experienced in acquaintance, they can yet have knowledge by description of things which they
have never experienced. In view of the very narrow range of human beings’ immediate
experience, this result is vital, and until it is understood, much of our knowledge must remain
mysterious and therefore doubtful.
(PoP2)
The business of science is to find uniformities, such as the laws of motion and the law of
gravitation, to which, so far as our experience extends, there are no exceptions. The principle
people are examining may be called the principle of induction, and its two parts may be stated as
follows: when a thing of a certain sort A has been found to be associated with a thing of a certain
other sort B, and has never been found dissociated from a thing of the sort B, the greater the
number of cases in which A and B have been associated, the greater is the probability that they
will be associated in a fresh case in which one of them is known to be present. So under the
same circumstances, a sufficient number of cases of association will make the probability of a
fresh association nearly a certainty, and will make it approach certainty without limit. What is
more, it should be noted that probability is always relative to certain data. Experience might
conceivably confirm the inductive principle as regards the cases that have been already
examined, but as regards unexamined cases, it is the inductive principle alone that can justify any
inference from what has been examined to what has not been examined.
(PoP2)
Now I am going to examine the history of marketing practices and how they advent to mass
production, the emergence of middleman, the separation of the producer from the consumer. I
am going to write about the differences between the traditional (transactional) and the modern
(relationship) marketing practices. One axiom of the transactional marketing is the belief that
competition and self-interest are the drivers of value creation. Through competition buyers can be
offered a choice of suppliers, which motivates marketers to create a higher value offering for their
self-interest. This axiom of competition is now challenged by the proponents of relationship
marketing, who believe that mutual cooperation, as opposed to competition and conflict, leads to
higher value creation (Morgan and Hunt, 1994).
The second axiom of transactional marketing is the belief that independence of choice among
marketing actors creates a more efficient system for creating and distributing of marketing value.
Industrial organizations and government policy makers believe that independence of marketing
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actors provides each actor freedom to choose the transactional partners on the basis of
preserving their own self-interests at each decision point. This results in the efficiency of lowest
cost purchases through bargaining and bidding. However this belief is also challenged in
economics. It argues that every transaction involves transaction costs in search, negotiation and
other activities, which add to, rather than reduce the costs and thus leads to insufficiencies for
the firms engaged in the exchange of transactions.
That is why relationship marketers believe that independencies reduce transaction costs and
generate higher quality, while keeping governance costs lower than exchange marketing. (Heide
and John, 1992; Williamson, 1985). To sum up – better quality at a lower cost is achieved
through independence and partnering among the value-chain actors. When crucial became
function that early marketing thought developed on the concept of distribution and creation of
time and place utilities, was the period of modern marketing practices, such as sales, advertising
and promotion, for the purpose of creating new demand to absorb the oversupply of goods that
were being produced. Scholars, such as Ralph Butler, were among the first to articulate this
promotional concept of marketing (Bartels, 1965).
(EoRM)
The purpose of using hermeneutics is to aid human understanding. It helps qualitative researcher
in business and management to understand what people say and do, and why. Hermeneutics is
primarily concerned with understanding and interpreting the meaning of a text or text-analogue
(for example organization or culture). The hermeneutic may refer to the dialectic between
understanding the whole from its parts, but at the same time the parts from the whole. Human
understanding is achieved by iterating between the parts and the whole, which they form. This
term may also be seen as dialectic between human’s preconceptions about something and
human’s understanding of that same thing. Hermeneutics suggests that “prejudice”, prejudgment or prior knowledge plays an important part in human’s understanding.
This term also suggests that understanding always involves interpretation, which means using
one’s own preconceptions so that the meaning of the object can become clear to us. The critical
task of hermeneutics becomes one of distinguishing between “true prejudices by which we
understand , from the false ones by which we misunderstand”. When using hermeneutics, in
qualitative research studies about business and management, the text is what the people say
and do. This includes for example interviews, documents and one’s own field notes record the
views of the actors and describe certain events. Hermeneutics is also used when material needs
to be ordered, explained and interpreted in order to ‘make sense’ of the situation. The
researcher’s understand of the whole has to be continually revised in view of the reinterpretation
of the parts.
(RBP)
1.6 Methodology
Models and theories that will be used to analyze the problem in this report will be mainly taken
from the marketing, management and economics classes throughout the bachelor degree
lectures. There will not be used all of the studied ones, only those which are relevant to the topic
in question. The data used will be both qualitative and quantitative. The data will be collected
from a lot of different places such as the company itself, desk research, library books and field
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research.
1.7 Reflection
1.7.1 Quality assessment and source criticism:
The qualitative data collected from study materials, PDFs, library books and even from the
company is bias. It is not 100% countable, because the books and PDFs from where the info and
models are extracted, are at least 4-5 years away from the current time we live in and definitely
nowadays a lot of things have changed since the marketing is a constantly developing science
which develops with the speed of the current technology development. These two are correlated
because the marketing, promotion, customers retention strategies are very close related to the
new technology developments, like new software for customer relationship management systems,
also for online marketing and promotion techniques. The information given from the company
itself is also bias, because each company makes its best to look better than it is in financial,
administrative aspect and also in front of its customers.
The quantitative data is not bias in my opinion, because it is connected to the interviews I have
made personally with Bulgarians in Denmark for 2 weeks, when I got back in Horsens. The
interview has 10 questions with polar questions (Yes-No) ones, questions to choose among
answers and open-ended questions. That way I tried to have as much as possible first-hand
information from people from all age groups, whose opinion was very valuable for the company to
know how it is currently performing in Denmark and what to improve in order to retain its
customers and attract new ones.
2. Analysis
2.1 General information about the Internet environment
This report is going to be written about “My TV” Bulgarian company, which is providing a paid
service for its Bulgarian customers, who live abroad. The company is operating by using the so
called “Internet Marketing”. It is defined as achieving marketing objectives through applying
digital technologies. Indeed are the results delivered by technology that should determine the
investment in Internet marketing. These technologies include Internet media such as websites
and e-mails, as well as other digital media, such as wireless or mobile and media for delivering
digital television. In practice Internet marketing will include the use of a company website in
conjunction with online promotional techniques, such as search engine marketing, interactive
advertising, e-mail marketing and partnership arrangements with other websites, as “MyTV” has
those ones with the “bTV” website. These techniques are used to support the objectives of
acquiring new customers and providing services to existing customers that help develop the
customer relationship.
Concerning the identifying process, the Internet can be used for marketing research to find out
customers ‘needs and wants. Regarding the anticipating process, the Internet provides additional
channel by which customers can access information and make purchases. Evaluating this
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demand is a key to governing resource allocation to e-marketing. Last but not least, the satisfying
process, where a key success factor in e-marketing is achieving customer satisfaction through the
electronic channel, which raises issues such as – whether the site is easy to use, does it perform
adequately and what is the standard of associated customer service.
When dealing with such a paid software service as “MyTV” Bulgarian company provides, it should
be considered very important the customer insight. This term refers to the knowledge about
customers ‘needs, characteristics, preferences and behaviors based on analysis of qualitative
and quantitative data. Specific insights can be used to inform marketing tactics directed at
groups of customers with shared characteristics. The interaction and integration between Internet
channels and traditional channels is a key part of the Internet marketing strategy development.
Internet marketing strategy is essentially a channel marketing strategy and it needs to be
integrated with other channels as part of multichannel marketing.
The term “multichannel marketing” refers to that customer communications and product
distribution are supported by a combination of digital and traditional channels at different points
in the buying cycle. Actually an effective Internet marketing strategy should be aligned with
business strategy. It also has to use clear objectives for business and brand development. What
is more, this Internet marketing strategy should be consistent with the type of customers who use
and can be effectively reached through the Internet channel. The strategy will also define
compelling, differential value proposition for the channel which must be effectively communicated
to customers.
It has to be used the so called “Online value proposition”, which is a statement of benefits of
online services that reinforce the core proposition and differentiates from an organization’s offline
offering and those of competitors. The proper Internet marketing strategy also has to specify the
mix of online and offline communication tools used to attract visitors to the company website or
interact with the brand through other digital media, such as e-mail or mobile. It should also
support the customer journey through the buying process as they select and purchase products
using the digital channel in combination with other channels. Last but not least, the Internet
marketing strategy tends to manage the online customer lifecycle through the stages of attracting
visitors to the website, converting them to customers and retention and growth.
A powerful method of evaluating the strategic marketing opportunities of using the Internet is to
apply the strategic marketing grid of Ansoff (1957). It shows how the Internet can potentially be
used to achieve four strategic directions – market penetration, market development, product
development and diversification. Taking into consideration the topic of the project – “Which
actions should be taken to increase sales and attract more customers for “MyTV” company in
Denmark?”, the most proper one to choose is the product development matrix, because for
increasing sales in Denmark, the company has to develop new service package in order to target
more customers than before in that region. The form of online presence that the company is using
is called- transactional e-commerce site. It enables the purchase of service online. The main
business contribution of the site is through sale of this service.
Actually, there is a strategic framework for developing Internet marketing strategy. It covers three
main sections – defining the online opportunity, selecting the strategic approach and delivering
results online. Each of those has several sub points to be covered throughout the process of
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creation of this framework. Defining the online opportunity includes setting e-marketing
objectives, where companies need to set specific numerical objectives for their online channels
and then resource to deliver these objectives. These objectives should be informed by and
influence the business objectives and also the following two activities.
Evaluation of e-marketing performance, here is about applying web analytics tools to measure the
contribution of leads, sales and brand involvement currently delivered by online communications
such as search engine marketing, online advertising and e-mail marketing and conjunction with
the websites. Last but not least, it includes assessment of online market place. This is the
situation analysis review of the microenvironment (customers, competitors, intermediaries,
suppliers and internal capabilities and resources) and the broader macro-environment, which
influences strategy such as legal requirements and technology innovation.
The selection of the strategic approach process includes first of all defining e-marketing strategy.
This means to select the appropriate strategies to achieve the objectives set at the previous
stage. In addition to this, there is also a need to be defined the customer value proposition. Here
it is all about defining the value proposition and available through the online channel and how it
relates to the core proposition delivered by the company. Reviewing the marketing mix and brand
values to evaluate how they can be improved online. Last but not least, to define ecommunications mix, where is the place to select the offline and online communication tools to
encourage usage of an organization’s online services and to generate leads and sales. Also to
develop new outbound communications and event-triggered touch strategies to support
customers through their relationship with the company.
The last piece of the strategic framework for developing Internet marketing strategy is delivering
results online. Here it is about implementation of e-marketing plan, the details around the
implementation of the strategy. Implement customer experience – build the website and create
the e-mail marketing communications which form the online interactions customers make with a
company. Also to create online customer relationship management capabilities to understand
customers ‘characteristics, needs, behaviors and to deliver targeted, personalized value. What is
more, also to execute the e-communications. Here it is about managing the continuous online
marketing communications such as search engines marketing, partnerships, sponsorships and
affiliate arrangements and campaign-based e-marketing communications such as online
advertising, e-mail marketing and microsites to encourage usage of the online services and to
support customer acquisition and retention campaigns.
There is also need to integrate the digital media channels with traditional marketing. Last but
equally important comes the customer profiling, which is about monitoring and improving online
activities and maintaining the online activities. Capture of profile and behavioral data on
customer interactions with the company and summarize and disseminate reports and alerts
about performance compared with objectives in order to drive performance improvement.
When dealing with digital marketing communications, it is important to know that they are the
equivalent of the marketing campaigns based on traditional media including TV, print and radio
advertisements, and direct mail supported by public relations. Many of the digital
communications techniques are analogous to their traditional equivalents, for instance display
ads are broadly equivalent to print or display ads and e-mail marketing is equivalent to direct
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mail. The approaches used to target online audience are potentially very different with
personalization based on the customer profile and previous interactions with communications
giving many options to deliver timelier, relevant messages.
Regarding the online PR, it’s about maximizing favorable mentions of the company, brands,
products or websites on third-party websites such as social networks or blogs that are likely to be
visited by your target audience. Also includes responding to negative mentions and conducting
public relations via a site through a press center or blog, for instance. As to online partnership, it
is about creating and managing long-term arrangements to promote your online services on thirdparty websites or through e-mail communications. Different forms of partnership include link
building, affiliate marketing ( a commission-based arrangement where referring sites receive a
commission on sales or leads by merchants/retailers), aggregators such as price comparison
sites, online sponsorship and co-branding. Concerning interactive advertising, it is about the use
of online ads such as banners and rich media ads to achieve brand awareness and encourage
click-through to a target site.
One of the benefits of the digital media for the marketer is the interactivity. Here the customer
initiates contact; the customer is seeking information or an experience (pull); it is a high-intensity
medium – the marketer will have 100% of the individuals attention when he or she is viewing a
website; a company can gather and store the response of the individual; individual needs of the
customer can be addressed and taken into account in future dialogues. Customers can also use
podcasts to the full extent of this shift to become apparent. Podcasts are when individuals and
organizations post online media (audio and video) which can be viewed in the appropriate players
including the iPod.
Another benefit could be intelligence. The Internet can be used as a relatively low-cost method of
collecting marketing research, particularly about customer perceptions of products and services.
A wealth of marketing research information is also available from the website itself. Marketers
use the web analytics approach to build their knowledge of customer preferences and behavior
according to the types of sites and content. Web analytics refer to techniques used to assess and
improve the contribution of e-marketing to a business, including reviewing traffic volume referrals
clickstreams online reach data, customer satisfaction surveys, leads and sales.
Another important feature of the interactive marketing communications is that they can be
tailored to the individual at relatively low costs, unlike in traditional media, where the same
message tends to be broadcast to everyone. Importantly this individualization can be based on
the intelligence collected about site visitors and then stored in a database and subsequently used
to target and personalize communications to customers to achieve relevance in all media. The
process of tailoring is also referred to as personalization (delivering individualized content
through web pages or e-mail). For instance the Amazon.com website, where the customer is
greeted by name on the website and receives recommendations on site and in their e-mails
based on previous purchases. This ability to deliver ‘sense and respond communications’ is
another key of Internet marketing.
Sense and respond communications refer to that customer behavior is monitored at an individual
level and the marketer responds with communications tailored to the individual’s need. One more
benefit is the integration. The Internet provides further scope for integrated marketing
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communications. When assessing the marketing effectiveness of a website, the role of the
Internet in communicating with customers and other partners can best be considered from two
perspectives. First there is outbound Internet-based communications (The websites and e-mail
marketing are used to send personalized communications to customers) from organization to
customer. Second inbound Internet-based communications (Customers enquire through webbased forms and e-mail) from customer to organization.
Another benefit is the industry restricting. For the marketer defining their company’s
representation on these intermediary sites by answering questions such as “Which intermediaries
should we be represented on?” and “How do our offerings compare to those of competitors in
terms of features, benefits and price?”. Other thing that can be considered as benefit is the
independence of location. Electronic media also introduce the possibility of increasing the reach
of company communications to the global market. This gives opportunities to sell into
international markets, which may not have been previously possible. The Internet makes it
possible to sell to a country without a local sales or customer service force, which “MyTV” is using
for its customers in Denmark.
In terms of deploying campaigns there are other key differences and benefits of digital media,
which can illustrate through the Google AdWords paid search advertising program or similar
programs from Microsoft, Yahoo and so on. This includes accountability, where digital media are
potentially more accountable through the use of measurements systems known collectively as
web analytics. Google provides a free tool known as Google Analytics to enable its advertisers to
test the value generated from its ads. Also testing, where potentially testing becomes more
straightforward at a lower cost with the option to trial alternative creative executions, messaging
or offers. Google offers another free tool – the Website Optimizer, to test alternative landing
pages.
Another one is flexibility – campaigns can be more flexible with the capability to change, copy or
offers during a campaign. Alternative ads can be served within Google to evaluate which works
best. Google AdWords also offers day parting where ads can be displayed at different times of the
day. Another one is micro-targeting, alternative messages can be delivered for different
audiences according to what they are searching for. Potentially a company can show a different
advert in Google AdWords for each term searched on. Other benefit can be the cost-control, costs
can be controlled for each group of search terms entered by customers through the search
engine, managed collectively, and bids made can be increased or decreased with the aid of
software.
There are some challenges concerning the digital communications. The first one is complexity. To
enable the benefits we have mentioned above – such as personalization , testing and dynamic
variation in ads through time – time has to go into configuration the campaign although the
search engines provide defaults to enable easy setup. This requires specialist expertise either inhouse or at an agency to manage the campaign. Another one is responding to competitors. Since
competitors can also change their approach readily, more resource has to be used to monitor
competitor activity. Automated tools knows as bid management tools can assist with this – they
will automatically check amounts competitors are paying and then adjust them according to predefined rules. Other challenge is responding to changes in technology.
(IMB)
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2.2 The Internet micro-environment:
First of all we need to focus on the online marketplace analysis. This is a key part of developing a
long-term Internet marketing or creating a shorter-term digital marketing campaign. Completing a
marketplace analysis helps to define the main types of online presence, which describes the
consumer behavior or flow of online visitors between search engines, media sites, other
intermediaries to an organization and its competitors. Prospects and customers in online
marketplace will naturally turn to search engines to analyze consumer use of key phrases entered
from generic searches for products or services, more specific phrases and brand phrases
incorporating their brand and competitor names.
The main elements of the online marketplace map are first of all the customer segments. The
marketplace analysis should identify and summarize different target segments for an online
business in order to then understand their online media consumption, buyer behavior and type of
content and experiences they will be looking for from intermediaries and your website. In
campaign or website design project, people are used to understand the preferences,
characteristics and online behaviors of different groups. Another one is search intermediaries.
These are the main search engines in each country. Typically Google, Yahoo, Microsoft Live
Search.
One can use the audience panel data from Comscore to find out their relative importance in
different countries. Companies need to know which sites are effective in harnessing search traffic
and either partner with them or try to obtain a share of the search traffic using the search engine
marketing and affiliate marketing techniques. Well known trusted brands, which have developed
customer loyalty are in good position to succeed online since a common consumer behavior is to
go straight to the site through entering a URL or from a bookmark or e-mail. Alternatively they may
search for the brand or URL.
Companies need to assess potential online media and distribution partners in the following
activities. First of all, the mainstream news media sites and portals, for example Google news.
Also the niche/vertical media sites, for instance EConsultancy in B2B. Price comparison sites,
such as Shopping.com. Superaffiliates, where affiliates gain revenue from a merchant they refer
traffic to by being paid commissions based on a proportion of the sale or fixed amount. They are
important in e-retail markets and accounting for tens of % of sales. Also niche affiliates or
bloggers.
Resources for analyzes of the online marketplace. To effectively plan digital marketing based on
the actual marketplace characteristics rather than intuition, it is useful to tap into the wealth of
research about current Internet usage and future trends. There are free and paid –for services
which can be used for online marketplace analysis. These resources can be used to assess the
number of people searching for information and the popularity of different types of sites
measured by the number of unique visitors. Unique visitors refers to individual visitors to a site
measured through cookies or IP addresses on an individual computer.
(IMB)
2.2.1 Customer analysis and consumer behavior
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Situation analysis related to customers is very important to setting realistic objectives, estimates
for volumes of online customers and developing appropriate propositions for customers online.
Customer-related analysis can be divided into two. Firstly, demand analysis, which involves
understanding the potential and actual volume of visitors to a site and the extent to which they
convert to outcomes on the site such as leads and sales. Secondly, we need to understand the
needs, characteristics and consumer behavior of users of digital channels, often collectively
referred to as customer insight. As a result of this analysis, customer segments will be created
which will be used to develop targeting approaches as part of the strategy development.
2.2.2 Demand analysis and conversion modelling
It is essential for Internet marketing managers to understand the current levels and trends in
usage of the Internet for different services and the factors that affect how many people actively
use these services. This evaluation process is called demand analysis. If customer usage for
online media is evaluated for customers in a target market, companies can stand the drivers to
usage and barriers to increased usage and so encourage adoption of online channels by
emphasizing the benefits in their communications and explaining why some of the barriers may
not be valid.
2.2.3 Assessing demand for digital services.
To set realistic strategic objectives such as leads or sales level for each customer segment,
companies need to assess their volume and share of customers, who have access to the digital
channel, are influenced by using the digital channel but purchase using another channel as part
of the multichannel buyer behavior; purchase or use other services using the digital channel. This
can be simplified to the ratios: “Access-choose-transact”. Primary research can be used to better
understand these characteristics in the target market.
2.2.4 Conversion models.
As part of situation analysis and objective setting, experienced online marketers build conversion
or waterfall models of the efficiency of their web marketing. Using the approach, the total online
demand for a service in a particular market can be estimated and then the success of the
company in achieving a share of this market determined. Conversion marketing tactics can then
be used to convert as many potential site visitors into actual visitors and then convert these into
leads, customers and repeat customers. The term conversion marketing refers to using marketing
communications to maximize conversions of potential customers to actual customers.
A widely quoted conceptual measurement framework based on the industrial marketing concepts
of purchasing decision processes and hierarchy of effects models, which can be applied for
conversion marketing, was proposed by Berthon (1998). The model assesses efficiency of offline
and online communications in drawing the prospect through different stages of the buying
decision. The main measures defined in the model are the following ones – awareness efficiency:
target web users/ all web users; locatability or attractability efficiency: number of active
visitors/number of visitors; conversion efficiency: number of purchases/number of active visits;
retention efficiency: number of re-purchases/number of purchases. This model is instructive for
improving Internet marketing within an organization since these different types of conversion
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Katerina Angelova Yordanova
efficiency are key to understand how effective online and offline marketing communications are
in achieving marketing outcomes.
2.2.5 Evaluating demand levels.
Now there will be evaluated each of the three factors that affect demand for digital services in a
little more detail, starting with the consumers in the B2C marketplace. First of all, comes the
Internet access, where E-commerce provides a global marketplace and this means we must
review access and usage of the Internet channel at many different geographic levels – worldwide
and between within continents and countries. An additional factor relating to consumer digital
channel usage is the type of access. Some countries now have significant levels of high-speed,
always-on, broadband access but there are still many, who don’t have access and a dramatic
variation by country. Broadband access permits more sophisticated sites and streaming media,
such as music and video.
Another part of evaluating the demand level is the consumers influenced by using the online
channel. Here we have to look at the extent to which customers are influenced by online media,
which is a key aspect of the consumer buyer behavior. Many Internet users now search products
online, but they may buy through offline channels such as phone or in-store.
It is also important to take customer’s characteristics into account. Understanding the nature of
customers is fundamental to marketing practice and it is equally important online. A further
technique that can be used as part of situation analysis is customer persona and scenario
analysis, which is an online technique for user-or customer-centric website design. This is an
extension of the traditional marketing approach of psychographic segmentation. The term refers
to a breakdown of customers according to different characteristics. Another important aspect is
the demographic characteristics (Variations in attributes of the population such as age, gender,
social class). Within each country, adoption of the Internet also varies significantly according to
individual demographic characteristics such as sex, age, social class and income. This analysis is
important as part of the segmentation of different groups within a target market.
To fully understand online customer access we also need to consider the user’s access location,
access device and “webographics”, all of which are significant for segmentation and constraints
on site design. The term “webograhics” include usage location – in most countries, many users
access either from home or from work with home being the more common location. Work access
places constrains on Internet marketers since firewalls will not permit some plug-ins or rich e-mail
to be accepted. There is also access device included. Last but not least comes the usage type –
mode of usage, for example work, social, entertainment.
2.2.6 Usage level – frequency of use and length of sessions giving total usage level in minutes
per month. Customer persona and scenario analysis.
Creating personas (a thumbnail summary of the characteristics, needs, motivations and
environment of typical website users) for typical site visitors is a powerful technique for
influencing the planning of online campaigns and the usability and customer centricity of a
website. Personas are essentially a ‘thumbnail’ description of a type of person. They have been
used for a long time in research for segmentation and advertising, but in recent years have also
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Katerina Angelova Yordanova
proved effective for improving website design by companies that have applied the technique.
Customer scenarios are designed for different personas. These are the alternative tasks or
outcomes required by a visitor to a website. Typically accomplished in a series of stages of
different tasks involving different information needs or experiences.
For instance, for online company as MyTV, which provides services for a paid software and
designed packages of TV channels for Bulgarians abroad it might be considered as scenario ->
new customer – signing up for an account on their webpage; Existing customer – transferring to
another TV package; Existing customer – finding additional product/service provided by the
company itself. Each scenario is split up into a series of steps or tasks before the scenario is
completed. These steps can be best thought of as a series of questions a visitor asks. By
identifying questions, website designers identify the different information needs of different
customer types at different stages in the buying process. The use of scenario is simple, but very
powerful, web design technique that is still relatively rare in website design. They can also be
used when benchmarking competitor sites as part of situation analysis.
Online consumer behavior should be taken into consideration as important matter.
As part of the situation analysis, either for a campaign or a long-term digital plan, it is important
that marketers gain an appreciation of online consumer behavior for their audiences including
the combination of web and mobile media with other channels. There are different models of
online buyer behavior that have been developed to help marketers develop online services and
communications compatible with this behavior-> Information/experience seeking behavior
models; Hierarchy of response buying process models; Multichannel buying models; Trust-based
models; Social interaction communication models.
Concerning the first one, information/experience seeking behavior models, there are different
types of web users or rather mode of usage of the Internet that are also valid today. This includes
direct information-seekers. These users will be looking for product, market or leisure information
such as details of their football; club’s fixtures. They are not typically planning to buy online. There
is also undirected information-seekers, who usually referred to as ‘surfers’, who like to browse
and change sites by following hyperlinks. Members of this group tend to be novice users and they
may be more likely to click on banner advertisements. Another thing is the directed buyers, who
are online to purchase specific products online. For such users, brokers or cybermediaries that
compare product features and prices will be important locations to visit. There is also bargain
hunters, who want to find the offers available from sales promotions such as free samples or
competitors. Last but not least, there is entertainment seekers, who look to interact with the web
for enjoyment through entering contests such as quizzes, puzzles or interactive multi-player
games.
Concerning the hierarchy of response buying process models, is summarized by Kotler (2001)
and includes awareness, interests, evaluation, trial, adoption. Breitenbach and van Doren (1998)
also suggests that audience members of an individual website tend to pass through these stages,
while Chaffey and Smith (2008) describe them as problem recognition, information search,
evaluation, decision, action (sale or usage of online service) and post purchase.
The importance of multichannel strategies should also be built into assessing customer behavior
and their perception of the online customer experience. There are also trust-based models, since
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Katerina Angelova Yordanova
online purchases lack the physical reassurance we have when purchasing from a store or talking
to someone over the phone. This is compounded because of stories of fraud and security
problems. It follows that customers are looking for cues of trust when they are on a site and
marketers need to understand the nature of this. These cues can include brand familiarity, site
design, the type of content, accreditation and recommendations by other customers.
There are also social interactions communication models, which emphasizes the way which
digital media have dramatically increased the role of recommendations from other customers.
Research by Microsoft (2007) based on interviews and surveys with social networks found the
following human motivations for using the social networks – mostly to keep in touch with friend
and family; followed by looking at other people’s spaces; want to meet people with similar
interests; to express opinions and views on topics; good way to date and last for specific reason,
such as for example networking.
2.2.7 Competitors:
Competitor analysis is a very important matter for every business. This refers to the review of
Internet marketing services offered by existing and new competitors and adoption by their
customers. There is also a term called “competitor benchmarking, which is used for structured
comparison of digital marketing approaches of an organization’s services within a market. Its
purpose is to identify threats posed by changes to competitor offerings, but also to identify
opportunities for enhancing the company’s own web services through looking at innovative
approaches in non-competing companies. Competitor benchmarking is closely related to
developing the customer proposition and brand experience and is informed by understanding the
requirements of different customer personas.
Benchmarking of services has different perspectives, which serve different purposes first of all,
internal capabilities, such as resourcing, structure and processes vs external customer facing
features of the sites. Also different aspects of the customer lifecycle – customer acquisition,
conversion to retention. Capabilities are benchmarked in all company’s activities. Qualitative to
quantitative – from qualitative assessment by customers through surveys and focus groups
through to quantitative analysis by independent auditors of data across customer acquisition (e.g.
number of site visitors, reach within market, cost of acquisition, number of customers, sales
volumes, revenues and market share). There is also conversion (average conversion rates) and
retention such as repeat conversion and number of active customers.
(IMB)
2.3 The Internet macro-environment
2.3.1 Legal and Ethical issues of Internet usage
Ethical standards are personal or business practices or behaviors which are generally considered
acceptable by the norms of society. Ethical issues and the associated laws developed to try to
ensure an ethical approach to Internet marketing is an important consideration of the Internet
business environment for marketers. Many laws have been enacted to prevent unethical
marketing practice, so marketers have to understand and work within this regulatory framework.
Legal activities can be considered as unethical. It is not always sufficient for marketers to be
compliant with the law since the rate of innovation may mean that the law is unclear through lack
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of case law or because no law has been enacted to govern a certain activity.
In this case, marketers need to tread very carefully since unethical action can result in serious
damage to the reputation of a company and negative sentiment can result in a reduction of online
audience and sales. First of all, there is Data protection and Privacy law. Privacy refers to moral
right of individuals to avoid intrusion into their personal affairs by third parties. Privacy of personal
data, such as our identities, likes and dislikes, is a major concern to consumers, particularly with
the dramatic increase of identity theft.
In practice different interpretations of the law are possible and since these are new laws they
have not been tested in court. As result companies have to make their own business decisions
based on the business risks of less strict compliance. Here are the main information types used
by the Internet marketer, which are governed by ethics and legislation. The main information
needs is contact information. This includes the name and postal address. Secondly, profile
information, this is information about a customer’s characteristics that can be used for
segmentation. They include gender, age and social group for consumers and company
characteristics and individual role for business customers.
(IMB)
Ethical issues concerning personal information ownership was summarized by Mason (1986) in
four areas – privacy; accuracy; property; accessibility. Fletcher (2001) provides alternative
perspective, raising the issues of concern for both the individual and the marketer. He includes
transparency; Security; Liability . All of these issues review actions that marketers should take to
achieve privacy and trust. In addition to this, there is also a Data Protection Law.
Sensitive personal data requires particular care – racial/ethnic origin of data subject; political
opinions; religious beliefs or other beliefs of similar nature; membership of a trade union; physical
or mental health or condition; the commission or alleged commission or proceedings of any
offence. Last but not least, no other laws must be broken in processing the data. The second
principle of personal data is that it is processed for limited purposes. Important issues here are
whether future communications will be sent to the individua whether the data will be passed on
to third party; and how long the data will be kept.
The third element of personal data principles is being adequate, relevant and not excessive in
relation to purpose(s) for which they are processed. The more information an organization has
about a customer, then the better they can understand that customer and so develop services
and marketing communications specific to that customer which they are more likely to respond
to. Another principle of personal data is being accurate and when necessary kept up to date.
What is more the, personal data processed for any purpose(s) shall not be kept for longer than is
necessary for the information which is no longer required for their purposes. To comply with this
principle, data collectors need to review their personal data regularly and to delete the
information which is no longer required for their purposes.
Another principle for the personal data is to be processed in accordance with the data subject’s
rights. Here there are two aspects. One is from an organization known as ‘subject access request,
a request by a data subject to view personal data from an organization. Another aspect of a data
subject’s rights, which the law upholds are designed to prevent or control processing which
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Katerina Angelova Yordanova
causes damage or distress; is used for direct marketing. This invaluable service is provided by the
Direct Marketing Association. This aspect includes also the usage for automatic decision making,
which can be investigated if one feels the decision is unfair. There is also the principle of secure
in connection to the personal data. This includes appropriate technical and organizational
measures to be taken against unauthorized or unlawful processing of personal data and against
accidental loss or destruction of or damage to personal data.
Last but not least, come the principle of not transferred to countries without adequate
protections. Here it is stated that personal data shall not be transferred to a country or territory
outside the European Economic Area, unless that country or territory ensures an adequate level
of protection of the rights and freedoms of data subjects in relation to the processing of personal
data. There is another law known as disability and discrimination law. This is for users who may
find it more difficult to use websites because of audio, visual or motor impairments known as
‘accessibility legislation’. Web accessibility refers to enabling all users of a website to interact with
it regardless of disabilities they may have or the web browser or platform they are using to access
the site.
Another one is the legal activity is the trademark and brand protection. Here there is a domain
name registration – the process of reserving a unique web address that can be used to refer to
the company website. There is also contract law used for legal activities. Here the contract is
formed between the buyer and seller on a website will be subject to the laws of a particular
country. In Europe many such laws are specified at the regional European Union level, but are
interpreted differently in different countries. When dealing with the jurisdiction in which law
applies – whether the buyer’s country or the country’s place of business of the merchant, it is that
where the merchant is located.
What is more, there is also distant-selling law. It’s main requirements are consistent with ecommerce sites and must contain easily accessible content which clearly states the company’s
identity including address, the main features of the goods or services, price information, including
tax and if appropriate, delivery costs, the period for which the offer or price remains valid,
payment, delivery and fulfilment performance arrangements, right of the customer to withdraw.
(IMB)
3. Information from the company’s software systems
3.1 Current target group of “MyTV” in Denmark and it’s preferences over a
designed TV package:
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Demographic Data
5%
15%
18-24
15%
25-34
35-44
45-54
15%
30%
55-64
65+
20%
(IfC)
3.2
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Gender Data
45.57%
Male
54.43%
Female
(IfC)
3.3 Preferred content:
6,39%
Movie Lovers
5,72%
Sports Fans/Soccer Fans
5,07%
Technophiles
4,91%
Music Lovers/Pop Music Fans
4,91%
TV Lovers
4,82%
News Junkies & Avid Readers
4,01%
Travel Buffs
3,05%
Shoppers/Shopaholics
2,92%
Shutterbugs
2,88%
Music Lovers/Rap & Hip Hop Fans
(IfC)
3.4
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Distribution of devices
8%
WEB
Mobile
92%
(IfC)
3.5 Denmark users: 200; Bulgarians living in Denmark (2014) around 7 000.
(Ilink)
If 7000 represents the 100% of Bulgarians in Denmark currently – 2014 year, then the 200
Bulgarians targeted from “MyTV” company represents only 2,85% from the whole. Consequently
the rest 6 800 Bulgarians in Denmark, represents 97,15%.
3.6
Bulgarians in Denmark
3%
Targeted
Not targeted
97%
(IfC)
4. Business law issues
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4.1 Privacy Statement:
There is a policy to protect the privacy of MyTV, which is a respect and protect the privacy of their
users. MyTV will not disclose any personal information to third parties without customers’
consent. This, of course, includes also email addresses. Unfortunately, the company cannot
ensure data transmission over the Internet, which can be 100% sure. As a result, while “MyTV”
strives to protect customers’ personal information, they cannot guarantee the security of any
information customers transmit to them or from their online products or services, and customers
do so at their own risk. Once the company receives customers’ information, “MyTV” makes their
greatest efforts to guarantee security within their systems. The company may disclose user
information when they believe that it is reasonable and necessary; in compliance with the legal
request by court order; to protect the safety of any person; to deal with fraud, or to protect the
rights and property of “MyTV”.
(TermsW)
4.2 General:
Article 1. (1) The present General Terms settle the interactions between "MyTV.BG" Ltd., UIC
202254191, with headquarters and address of management:. Sofia, ul. "Catholic" №14, 2nd
floor, ap 6 (hereinafter referred to hereinbelow "MyTV") and end-users connected to them by MyTV
access to audio-visual media service "VOYO".
(2) "BTV Media Group" EAD, UIC 130081393, with headquarters and address of management:.
Sofia Square. "Bulgaria" №1, administrative building of NPC et.11 (hereinafter "BTV") is a media
service provider under the Law on Radio and Television as part of their media activity produces
and owns the rights to grant access to the Internet via audio-visual media service "VOYO" to the
catalog of audiovisual works (hereinafter referred to hereinbelow "titles") - series, news, current
affairs and other video content specified by BTV.
(3) MyTV provides end users access media service under paragraph 2 by the website
www.mytv.bg (secure access is hereinafter referred to as the "Service").
(4) For the purposes of these General Terms "end user" means a natural person who uses the
service only for private use and solely the territory of one of the countries referred to
http://mytv.bg/countries, to which explicit indicated that there is a possibility to access the
service.
Article 2. (1) These General Terms are binding for MyTV and end users.(2) The registration of enduser of the website www.mytv.bg same declares that he is familiar with these Terms and
Conditions, accepts them and undertakes to respect them. The adoption of the Terms of end
users is a precondition for the service of the latter.(3) The general conditions are mandatory to
end users at the time of their adoption. General conditions may be amended on the initiative of
MyTV or other, provided by the law cases. The amendments to the General Conditions shall enter
into force from the date of publication of www.mytv.bg or later date as may be expressly provided
therein.(4) Changes to the General Conditions are binding to the existing end users, if they do not
object in writing to MyTV of e-mail support@mytv.bg within seven days from the date of
publication of the amendments in accordance with paragraph 3. An objection pursuant to the
preceding sentence, the contract between the end user and MyTV under which use the service is
terminated.
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(TermsW)
4.3 Service provided by MyTV
Article 3. (1) Through the website www.mytv.bg end users are offered access to the non-linear
media service BTV - VOYO, whose content is determined by BTV. Audiovisual works (titles)
included in the catalog of titles selected by BTV, can be viewed in a selected end users time on
their personal request.(2) a fee from the end users a fee determined by MyTV, users are given the
opportunity to access during a subscription period to all the titles included in the catalog under
paragraph 1.(3) Access to titles that users receive, is the possibility for multiple viewing, incl.
start, stop and scroll to the relevant titles.(4) The service enables users to access to their titles
only for personal use.
(TermsW)
4.4 Terms of Service
Article 4. Provision of the service is performed on the grounds of a contract under general
conditions, concluded between MyTV and the end-user. The contract comes into force from the
date of acceptance of these Terms and Conditions by the end user according to article 2,
paragraph 2.
Article 5. (1) End user wishing to use the service should be registered on the website
www.mytv.bg.(2) In the course of registration under para 1 end user provides at least the
following information: username and email address.(3) To implement the registration under
paragraph 1, the end user should register in the system of Paypal.com debit or credit card
through which will make payments of fees for using the service.
Article 6. (1) MyTV a separate user account to use the service to any end users who are registered
according to Article 5.(2) End-users can use the service only through your user account.(3) user
account to the end user contains information about their chosen subscription period for the
service and the current status of the subscription.
Article 7. (1) The service can be used only if an Internet connection to the device by which the
same will be used.(2) In view of technical undisturbed use of the service is necessary devices by
which it must be used to meet the following minimum technical requirements (recommended
configuration): P4 3GHz, 2GB RAM, graphics card with video acceleration, sound card, Windows 7
or later, Internet browsers Firefox 3.5 or higher, Google Chrome 11 or higher, the latest Adobe
Flash plugin that supports H.264 video format.(3) The titles can be viewed with high quality
(1280x720 pixels) at a minimum constant bandwidth of 2.5Mb / s, and standard definition
(720h540 or 720h400 pixels, depending on the shape of that title) in the minimum steady speed
Internet connection from 750Kbit / s.(4) Devices, through which it can be used the service are
personal computers (including laptops and personal computers).(5) The end user has the ability
to simultaneously service up to 3 devices allowing its use.
Article 8. (1) The service allows access to the titles chosen by the end-user point in terms of
streaming (permanent internet connection).(2) When using the service copies of the titles are not
saved in the device memory, thereby accessing titles (no possibility to download).
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Article 9. (1) Activation of the service is performed within one hour after MyTV received paid by
the end user fee to use it for a specified subscription period.(2) The subscription period for the
service is 1, 3, 6 or 12 months as chosen by the end user and starts the activation of the service
in accordance with paragraph 1.(3) Initial subscription period selected for the service is specified
by the end-user to obtain a registration pursuant to Article 5, paragraph 1, and subsequently end
users can change their chosen subscription period for the service. The change of the subscription
period shall apply for the service after already paid subscription period.
(TermsW)
4.5 Financial conditions
Article 10. (1) To use the service by the end users are obliged to pay the fee specified in the Tariff
of MyTV.(2) The fee for the service varies depending on the chosen end-user subscription period
for its use specified in the user account.(3) MyTV has the right to change the amount of fees
payable for the service, as applicable shall be deemed the rate in effect at the time of payment of
the amount.
Article 11. (1) Payment of end users to the fees for using the service is carried out through their
user account.(2) End-users pay fees for using the service in advance, before the start of the
relevant subscription period.(3) The payment of a fee to use the service is done with a debit or
credit card via Paypal.com system according to conditions for making payments through Paypal,
available at www.paypal.com. Payments can be made by other means, in explicit website
www.mytv.bg opportunity.(4) Payment shall be deemed to be made after receipt of funds on the
bank account of MyTV.(5) Data on debit or credit card on the end-user through which payments of
fees for using the service, specified by the last system of Paypal.com, through which payment of
the fee for using the service and can be changed at any time by the end user. Shall be deemed
valid data referred to at the time of payment of the amount.
(6) With the expiry of the subscription period of the credit, respectively debit card, end users are
automatically deducted the following fees according to the subscription period specified in their
user account. The rule in the preceding sentence shall not apply if the expiry of the relevant
subscription period paid end user express instructions online www.mytv.bg way their desire not to
be made that deduction. In this case the provision of the service is stopped by the end of the
current subscription period and resumed the payment of subsequent subscription fee.(7) If the
automatic deduction under paragraph 6 of the fee for the next subscription period is impossible
and that has not been paid otherwise, the provision of service is suspended until payment of the
fee for using the service.(8) In the event that an end user wishes to be invoiced by MyTV for
amounts paid by it for the service, in addition to the data under Article 5, paragraph 2 of the latter
should provide the following information: issuance invoice to an individual - full name, PIN and
permanent address; for the invoice of a legal person - company name, UIC / BULSTAT office.
Article 12. MyTV may, at its discretion, provide as part of their promotional campaigns, the ability
to pay part or the full amount of a fee payable for the service, through a voucher and / or
promotional code. In such cases, the conditions for making the payment and use of the vouchers
and / or promotion code identify the specific promotion. Inasmuch as the specific promotion are
not provided special conditions apply these Terms.
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Article 13. (1) End-users who register for the first time in accordance with Article 5, paragraph 3,
have the opportunity to use the service within seven single trial. The test period of the previous
sentence begins from the activation of the service, which is performed by end users in a chosen
time after registration under Article 5, paragraph 3.(2) The conditions for registration of
Paypal.com allow providing test period for the service of a single end-user registered in the
system under Article 5, paragraph 3, regardless of the number of registered it debit or credit
cards.
(3) In the case until the time specified in paragraph 1 seven days does not declare refusal of
service by deregistration performed by their user account on the website www.mytv.bg, it is
assumed that they are willing to continue to use it within the subscription period specified in their
user account. The first subscription period runs from the day of the test period.(4) In the absence
of an express waiver under the preceding paragraph MyTV deducted from your debit / credit card
of the end user specified in user account, a fee corresponding to that of his subscription period
for the service.
(TermsW)
4.6 Rights and obligations of the parties
Article 14. (1) MyTV provide the service in accordance with the provisions of these Terms and
Conditions.(2) MyTV entitled to receive all amounts due from end users fees for services rendered
to them.
Article 15. MyTV monitor the process of providing the service, as in cases when technical
problems should take necessary measures to correct the problems as soon as possible. Article
16. MyTV may change the parameters and characteristics of the service, to change the Terms of
Use and / or its provision to suspend or terminate its provision, and to provide new, other than as
described in Article 3 a service that provides access to titles. These Terms and Conditions shall
apply in the relations between the parties in the cases referred to in the preceding sentence.
Article 17. End users are notified that BTV has the right at any time to change the content of nonlinear media service VOYO, end users are not entitled to any claims in the event of removal of the
title / it from the catalog of that service to which they granted access.
Article 18. (1) End-users are entitled to services and provide them access to the title only as
provided in these Terms.(2) End-users are not allowed to use the assigned access to entitlements
for commercial purposes, to promote their titles to give third parties the opportunity to access
titles, record or otherwise retain copies of titles to give third parties in any way, copies of titles as
well as to third parties any services provided access to titles.
(3) All actions of end users, contrary to the general conditions that have or could have the effect
of threatening the efficiency of the website www.mytv.bg, service or activity of MyTV as a whole,
as well as actions that lead or could lead to infringement on intellectual and / or industrial
property rights or other rights and legitimate interests will be considered by MyTV for violation of
these Terms.(4) In case of violation of these Terms, MyTV is entitled to take to the end-user
actions set out in these Terms and the applicable legislation.
Article 19. (1) End-users shall not in any way be transferred to the third party's rights or
obligations or to give third parties the opportunity to exercise all or part of their rights arising from
their relationship with MyTV in connection with the use of the service.(2) End-users agree that
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Katerina Angelova Yordanova
MyTV be entitled to transfer to third parties all or part of the rights and / or obligations under
relationships with end users.
Art.20. (1) End-users are entitled to request information from MyTV on the conditions for using the
service.(2) End-users have the right to inform MyTV for established problems related to the use of
the service.(3) End-users are required to pay fixed by MyTV due for the use of the service.
(TermsW)
4.7 Intellectual Property
Article 21. (1) All titles, access to which is provided through the service are protected objects of
copyright and related rights and contain objects such rights.(2) www.mytv.bg website contains
information, materials, functions, etc., Which are protected objects of copyright and related rights,
and contains objects such rights.(3) The use of the service in violation of these Terms unless
violation of the agreements between consumers and MyTV may constitute a violation of the rights
to objects that are subject to foreign intellectual and / or industrial property, as well as other
legally protected rights and legitimate interests of MyTV and / or third parties. For any violation of
this Article, the end user takes his own expense all liability - civil, administrative or criminal
penalty and pay imposed by the competent authority sanctions and / or benefits of the persons
concerned.
(TermsW)
4.8 Responsibilities
Article 22. (1) End-users are responsible for the correctness and the secrecy of your user names,
passwords or any other information provided in connection with registration and / or use of the
service in accordance with these Terms.(2) End-users shall bear all liability arising from the
provision and use of data in violation of these Terms.
Article 23. (1) MyTV not guilty and responsible for: interruption or degradation of service due to
non-compliance with any of the parameters 7 and / or due to reasons beyond the control of MyTV;
network functionality with data of end users or of its hardware and software security; the
functionality and security of the public Internet network and connectivity of end users' terminals
with it; any possible damage incurred by end users in the event that the latter were not duly
informed of changes in service or in the way it use due to its irregular use; the possible existence
of "viruses" or other harmful effects of the use of the website www.mytv.bg;wrongly paid by the
end users amounts to use the service; the content of websites to which redirect connections at
www.mytv.bg;data referred to by the end user upon registration with a view to using the service,
incl. indication of incorrect data; other circumstances beyond the control of MyTV.
(2) MyTV not responsible for service interruption or degradation of its quality in the event that the
end user is in breach of an obligation.(3) For the purposes of this Article, "beyond the control of
MyTV" means any act or omission of the end user or third party incapacity of Internet connectivity,
or any other reasons beyond the MyTV leading to poor quality or interruption service or the
inability to use the same undisturbed, incl., but not limited to due to improper handling machinery
and equipment by the end user or third party infringement of the end user in connection with the
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use of the service, force majeure and other circumstances which are not due to fault on the part
of MyTV.
Article 24. (1) MyTV has the right to suspend or terminate the provision of service to end users in
the event that violate their obligations related to the use and / or payment of the service and the
provision of the service may be resumed at remedies.(2) In the event of a breach of these Terms,
MyTV has the right to cancel the registration under Article 5, paragraph 1 of the guilty end
users.(3) prepaid by the end-user charges relating to the period of suspension of the service
provision under paragraph 1, respectively. period after termination of service pursuant to
paragraph 1 or cancellation of a registration pursuant to paragraph 2, are not recoverable.
(4) In the event of a breach of these Terms, MyTV has the right to:1. Take legal action to prevent
and / or injunction of the rights and legitimate interests of third parties made by end-users;2.
Take legal action for compensation from the guilty end users of financial and / or non-property
rights and legitimate interests infringed by them;3. Inform the competent authorities in case of
violation of end-users of foreign rights and legitimate interests;4. Notify the holders of affected
rights and legitimate interests of violation committed by end-users;5. Take other actions
permitted by law at its discretion.
(TermsW)
4.9 Returns and Disputes
Article 25. (1) Every end user has the right to make a claim to MyTV if the service cannot be used
for reasons which MyTV responsible.(2) A claim shall be submitted by the subscriber concerned in
writing, within 24 hours from the time in which such grounds for it, the following e-mail:
support@mytv.bg.(3) The claim must contain the following minimum information: what is the
complaint, when and under what circumstances it is found; proof that the fee payable for use of
the service is properly paid for the subscription period, in which such grounds for complaint;
description of the technical parameters of the devices and Internet connection speed to the end
user through which the service is used; other relevant to the case facts and circumstances at the
discretion of the end user.
(4) Upon receipt of a complaint, finds MyTV claims procedures. If, on the basis of information
received under paragraph 3 claim is deemed valid, MyTV provide the consumer compensation, to
confer an additional period of time to use the service after the expiration of the paid by the enduser subscription period corresponding to the period during which the end user is unable to use
the service.(5) Apart from providing compensation in accordance with paragraph 4, the end users
are not entitled to any further claims for compensation for damages incurred by them caused by
problems using the service.
Article 26. Disputes between end users and MyTV be resolved through negotiations, and if this
proves impossible, shall be referred to the competent Bulgarian court in the city. Sofia.
(TermsW)
4.10 Payment methods
The company collects its money on abonnement payment, which is permitted in Denmark, so the
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Katerina Angelova Yordanova
customers pay for this service on monthly basis.
(IfC)
4.11 Final provisions
Article 27. (1) The written correspondence between MyTV and end users is done through emails.(2) E-mail address MyTV correspondence with end users: support@mytv.bg(3) The end user
indicates e-mail address for correspondence in your user account, such as messages sent to the
address shall be deemed to have been duly sent and received.
Article 28. Unregulated in these Terms and Conditions the provisions of the legislation of the
Republic of Bulgaria.
Article 29. These General Conditions shall enter into force on 15.10.2012
(TermsW)
5. Interviews
5.1 Are you satisfied with the quality of “MyTV” service?
19%
Yes
11%
No
To some extent
70%
5.2 How do you find the 7 euros monthly fee for the service provided?
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10%
9%
acceptable
normal
little too much
81%
5.3 Do you like “MyTV”’s politics towards its customers?
2%
12%
Yes
No
I think so
86%
5.4 How satisfied are you from 1 (lowest) to 5 (highest) from “MyTV”’s mobile version?
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16%
5%
middle (3)
under middle (2)
above middle (4)
79%
5.5 How satisfied are you from 1 to 5 from “MyTV”’s quality for TV channels in Denmark?
4%
highest (5)
40%
above middle (4)
56%
middle (3)
5.6 Where do you know about “MyTV” from?
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Katerina Angelova Yordanova
5%
15%
bTV website
Google search
friends
80%
5.7 Would you recommend “MyTV”’s services to a friend?
1%
13%
Definitely
Maybe
No
86%
5.8 Which are the most watched Bulgarian TV channels?
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31%
bTV
Nova TV
50%
bTV daughter channels
19%
5.9 Would you consider buying a TV package, which includes only bTV and its daughter channels
for 4 euros a month?
27%
Yes
Maybe
53%
No
20%
5.10 Your gender
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Katerina Angelova Yordanova
%
45%
male
female
55%
5.11 Please choose your age group
%
2%
4%
1%
7%
18-25
26-36
12%
37-47
48-58
58-65
74%
65+
6. Balanced Scorecard and Strategy map
In “Financial” aspect of the Balanced Scorecard, the first objective is to decrease company’s
costs through looking at the operating costs, because these are the costs related to the operation
of business. They are the cost of resources used by organization to maintain its existence. The
initiative to take in order to accomplish this change is to be better than competitors in this service
branch in Denmark. This means to do some regular benchmarking with the “Telemost” company,
which is also providing paid software for Bulgarian TV channels abroad. And to benchmark
against “Bulsatcom”, which provides a satellite option for watching Bulgarian TV channels abroad
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from the Bulgarians, who are already living abroad. It’s advantage is that it is not dependable on
the broadband quality. All these three companies – “MyTV”, “Telemost” and “Bulsatcom” have
covered the Denmark region, so all of them are providing the same kind of paid service for their
customers in Denmark.
Another financial objective is to increase financial credibility and stability. That one can be
measured by ROI and ROE. The ROI evaluates the efficiency of investment and the ROE is the
measurement for corporation’s profitability. Both of them can be initiated by selling assets, which
is done for securitization of the company’s receivables. This is used to mitigate assets-related
risks, obtain free-cash flows and for liquidation requirements.
Concerning the “Customers” aspect of the Balanced Scorecard, the first objective is to increase
the market share in Denmark, by measuring the market share in Denmark. Based on the Ansoff’s
growth matrix, “MyTV” company has to perform market penetration/expansion, because the
company already exists on the Danish market with its services for the Bulgarian customers living
there. The initiative that can be taken in order to accomplish this change is to incorporate a
rewarding program among the company’s employees. In that way each person who has
contributed somehow towards this market expansion in Denmark, will gain for example a bonus
to the salary. For instance it can also be commission, which will also be correlated to the person’s
efforts, to the percentage increase he/she gained in the customers there.
Another objective of the “Customers” aspect is the high quality service. That one can be
measured by the malfunction rate, which represents the failure rate of the service provided. The
initiative that can be taken towards this to be fulfilled is KAM (Key Account Management), since it
is a strategy used by suppliers to target and serve high-potential customers with complex needs
by providing them with special treatment in the areas of marketing, administration and service.
Moreover the key account status is more likely to be given to customers who are willing to enter
into a long-term alliance or partnership.
(SaSM)
There is also the objective of after-sales service efficiency, which can be kept in track with the
complains rate and customer retention rate. The complaints rate measures how many customers
are not satisfied from the services provided from “MyTV” company. The customer retention rate
can assess how well the company is doing towards keeping its customers number in the Danish
market. The Initiatives that can be taken to help the performance of this objective are CRM
(Customer Relationship Management) and CSR (Corporate Social Responsibility). The CRM is a
system for dealing with company’s interactions with future and current customers. This can also
involve the use of technology to organize, automate, and synchronize the sales, marketing,
customer service and technical support.
The company is already having a well-functioned CRM system, which I was introduced to during
my practical placement there and it was part from their customer retention strategy. Regarding
the CSR, which is a corporate self-regulation, which stays in the ‘Responsibilities’ statements in
the ‘General conditions of usage’ on the company’s webpage.
Last but not least, comes the improvement of service image as object, which can be measured by
service awareness. This one can be initiated by more advertising. Currently the company is relying
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mostly on word-of-mouth and is not doing special efforts towards gaining more customers in
Denmark. Those advertising idea could be performed by for example push and pull tactics for
getting more visitors on the company’s webpage. The push tactic involves interrupting the content
that is being consumed. In instance, this is not the tweet that the visitor wants to read, but indeed
it is the tweet advertisement that they read on their stream.
Also it is not for example the video that a visitor wants to watch at first place, but the pre-roll
advertisement that they watch before getting to the content they want to watch at first place. I
was training to do this with some webpages I was given by my company’s supervisor. The pull
tactic gives visitors a reason to come to the company’s products or services. In that way one can
entice customers, incentivize them, and draw them to the company’s products and services. This
appears when for example a customer finds information about “My TV” BG services online,
without searching for it on purpose or being told about the company and its services.
Concerning the “Internal Process” aspect of the Balanced Scorecard, the first objective is to
improve service offerings, which can be measured by the revenue of new TV packages for the
Bulgarians abroad. The initiative that can be taken here is to develop new TV packages. As a
result from the interviews, it was seen that customers in Denmark are mostly choosing the
services of “MyTV”, since it is providing its customers with ‘bTV’ channel and all its daughter
channels, such as ‘bTV action’, ‘bTV Lady’, ‘bTV Cinema’, ‘bTV Comedy’ and “RingBG”. So I came
up with the suggestion to develop a whole new package called “bTV customers”, for all those
people, who only want to watch these programs and since it includes only 6 channels, this TV
package can be offered for 4 euros a month, not like the regular TV packages with many channels
offered for 7 euros a month.
Another objective of ‘Internal Processes’ is the improvement of marketing, which can be
measured by the marketing performance audit score. This can assess how much growth
opportunity the company is missing out on by not applying the latest marketing strategies to grow
the company’s business. The initiative that can be taken to accomplish this objective, is a new
marketing campaign.
(InfoLink)
Regarding the “Learning and Growth” aspect of the Balanced Scorecard, the first objective is to
motivate the workforce, which can be measured by an employee survey. The motivation can be
two kinds – intrinsic or extrinsic. The first one mentioned, is connected to the internal sense of
satisfaction, derived from the work itself and/or the desire to engage in activities even with the
absence of external rewards in order to sense satisfaction, to use or improve one’s abilities or to
learn. The extrinsic motivation is connected to material rewards, social status or avoidance of
unpleasant consequences. I think a good motivational theory that can be used to motivate the
staff to work towards market expansion in Denmark, is the operant-conditioning theory. This
theory states that learning and behavioral changes occur when behavior is reinforced. Here the
reinforcement are the consequences connected to behavior. The reinforcement can be two kinds
– positive reinforcement and punishment. The last one is connected to not fulfilling the job tasks.
The positive reinforcement is associated for example with bonuses, a day off work and so on. The
initiatives that can be taken towards this are bonuses, reward and commission, which are part of
the positive reinforcement.
(MaFL)
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Another objective is the adaptation to changes. That one can be measured thorough the Kottler’s
8 steps of change model. The first step of the model is to create a sense of urgency in order to
make people engage themselves into a change in the organization. The second step is about
building a guiding coalition, which is about forming a group of the right people, who have the
power and are willing to lead the others of the staff through this change. The third step is about
forming a strategic vision and initiatives, which is about developing shared initiatives to fulfil the
vision. The forth step is about enlisting a volunteer army, which involve a lot of people willing to
and working towards that change.
The fifth step of the Kottler’s 8 steps of change model, is about enabling action by removing
barriers, which is about removing the obstacles on the path to that common and shared vision.
The sixth step is regarding generation of short-term wins, which is about evaluating and
celebrating all accomplishments and correlating them to results. The seventh step is about
sustaining acceleration, which is about being consistent and providing the best possible
approaches to employees and organization capabilities in order to continue working hard towards
the common vision. Last but not least, come the final eight step of the model, which is to institute
change. That includes developing all means possible to ensure the succession.
(K8M)
The initiatives that can be taken towards accomplishing the adaptation of change objective, are
different skills programs. That can be for instance different training programs provided by the
company itself for its employees in order to improve their skills and develop them to be better
workers for the same company in the future. That for example can be done for employees, who
are working many years in the same organization as free-training programs during their working
daily time in the company.
Last but not least objective of the “Learning and Growth” aspect of the Balanced Scorecard are
the employees competences, which can be measured by “Garuda” competences test. This test is
based on the “Head-Heart-Leg” model and it is developed to answer the most relevant questions
connected to the daily working life. The ‘Head’ part is connected to how people approach and
work on their daily assignments, The ‘Heart’ part is associated with how are the relations and
cooperation with others. And the ‘Leg’ part is concerning how people are carrying their daily tasks.
The initiatives to be taken here is competences development. That means that when there is a
hidden competence of a person, which the person did not know about before doing the “Garuda”
test, then the company can guide this person how to develop this hidden competence, so he/she
will be more useful with that to the company itself.
(Garuda)
See Appendences IV for the table of Balanced Scorecard
7. Osterwalder’s Business model Canvas
The Business Model Canvas, which is developed in 2010 year by Alexander Osterwalder, is
a strategic management template for developing new or documenting existing business model.
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It is a visual chart with elements describing a firm's value proposition, infrastructure, customers,
and finances. It assists firms in aligning their activities by illustrating potential trade-offs. The first
three blocks of the business Canvas model are part of the company’s infrastructure.
7.1 Key partners:
In order to optimize operations and reduce risks of a business model, the company usually
cultivates buyer-supplier relationships so they can focus on their core activity.One of the key
partners of “MyTV” company is the bTV television and all its daughter channel package, such as
bTV Comedy, bTV Action, bTV Cinema, bTV Lady and Ring.bg. The bTV channel contains mainly
news and movies, whereas bTV Comedy, bTV Action and bTV Cinema hold the most watched
serials and movies from the Bulgarian auditory in Bulgaria and abroad. The Ring.bg television is
mainly for sport events and competitions. Another key partner is “Fibank”, the company uses only
this bank for the payments. As for the infrastructure, there are companies, which hold the data
traffic, such as “CDN77”, “Telepoint” and “Bix”.
(IfC)
7.2 Key Activities:
The company’s website is the main platform and this is where “MyTV”’s services are exposed to
the customers. Since it is an internet functioning only company, it is working based on company’s
own determined web-standards. The company’s website is the most important activity in
executing company’s value proposition. “MyTV” company has two people, who are working as a
support personnel for their website, so when something went wrong, those people are informed
and they start working hard towards fixing the problem in short-term. Until now I have seen just
few customers, who had faced a problem with low quality of transmission the picture on their
laptops and they were surprised how fast the problem was fixed, when they wrote an e-mail to the
support center in the company’s website.
(IfC)
7.3 Key Resources:
The resources are the ones that are necessary to create value for the customer. They are
considered an asset to a company, which are needed in order to sustain and support the
business. These resources could be human, financial, physical and intellectual. In our case
“MyTV” company is providing intellectual resources because the company develops a paid
software for watching Bulgarian TV channels for the Bulgarians abroad both on their PC’s and
mobile devices.
(Canvas) ;(CP)
7.4 Value proposition:
The value proposition is the reason why the customers choose one company or product instead of
another. It solves a need or a problem for the customer. A value proposition creates value for the
customer through a mix of elements that cater to the customer’s needs. Value may be
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quantitative for example price, speed of service - or qualitative for instance design, customer
experience. In this case, “MyTV” company provides its customers with both qualitative and
quantitative value. The quantitative value includes the low price of only 7 euros a month for the
chosen TV package with more than 20 channels included for that price. And the qualitative value
is the customer experience – the variability of programs, with different and new content included
and the high HD quality for the service provided.
“MyTV” company is providing its customers with many more value, such as the ‘time shifting’
option, which gives them the opportunity to rearrange programs on the television, so customers
can themselves determine when and what they want to watch. In that way they can also
compensate the time difference with Bulgaria.
Another value, which this service company provides, is the ‘Digital Video Recorder’, which gives
customers the chance to choose record and watch what they want without being attached to the
regular TV program and content. There is also the ‘choice of quality’, where the customer can
choose between ‘HD’,’SD’ and ‘LD’, which are designed for their own best experience. Last but
not least, comes the ‘access to mobile devices’, which provides the people who are using the
company’s services the opportunity to use the lighter and faster access through mobile devices
and televisions when using the service.
(CP)
7.5 Channels:
The channel helps the company bring their value proposition to the market. Channels can be
categorized into direct and indirect channels a company can use, as well as owned and partner
channels. The company is using the internet domain hosting site as a seller of its own services. In
that line of thoughts, “MyTV” company has a direct channel, since it sells through web its services
directly to the customers abroad, in this case – in Denmark. Since the products are software and
they are online services they rent out on a monthly/quarterly basis, they do not need a physical
store. Concerning the post-purchase part, “MyTV” company sends a message to its customers to
inform them about new features, improvements in the software, which are relevant for the
customers in the country or region of change.
7.6 Customer relationships:
Based on the fact that “MyTV” company is aiming for customer acquisition in the Denmark region,
the company is working towards this by providing its customers with personal assistance through
messages or e-mails directed only to the customers who need it and sent from one of those
programs the company uses to regularly communicate with the customers. The company also
works towards providing its customers with trust, safety and transparency which are covered in
the ‘general terms of usage’ for company’s services on their website.
(CP)
7.7 Customer segments:
The customer segment, who is mostly using the “MyTV” company services are the people aged
25-34 years, who represent 30% of the whole. The second group of customers who are regular
users of the service are aged 35-44 years, who represent 20%. The predominant ones are the
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male auditory with the 54,43%. The preferred content are the movies on first place and on
second – sports events and soccer.
(IfC)
7.8 Cost structure:
“MyTV” company has a value-driven cost structure, since providing the best possible service,
including the most watched TV channels, also providing its customers with new and different
content. The company is less concerned with the costs, but provides value to its customers
through the service provided.
7.9 Revenue streams:
There is a subscription fee for using “MyTV”’s company online service. This fee is the same for all
the packages provided and it stays as 7 euros a month. The company is paying a licensing for the
intellectual property, but even when having a practical placement there, I was not given such
details concerning this topic, since it is kept confidential. The company is also paying fixed
advertising fee to the owners of “bTV”, since there is a connection there that leads to the
“MyTV”’s website, which can also be found by chance when using the ‘Google’ engine.
(IfC);
8. Conclusion
In the past “MyTV” company has not made any special efforts to attract customers and increase
their sales in Denmark, therefore until now they have only 200 customers mainly aged in the 2534 years and mainly targeted the male auditorium, who are sports fans and technophiles. Since
the company now wants to increase their customers and improve their sales in Denmark, they
have to change their target market to the 18-25 years group, since they represented 74% of the
survey and the company will target mostly female auditorium. Who preferred movies and TV
shows. In order to change their target market and increase sales, “MyTV” has to develop a new TV
package only for ‘bTV lovers’ at a lower price, for example 4 euros a month. In that way they will
target the biggest group of Bulgarians in Denmark - the students, who do not have much money,
but are used to watch Bulgarian television and they also are spending most of the day on their
laptops or mobile devices. The internet marketing is a huge space for operating such kind of
service business. In that line of thoughts when not used right, the Internet marketing can be an
obstacle for the business. In the case of “MyTV” company, it is an advantage, since people who
work there are up-to days with the current technologies for attracting and retaining customers.
What is more, the company is already using one of the newest online tools called “Intercom”,
which shows them who is using the product and makes it easy to personally communicate with
those people through targeted, behavior-driven and in-app messages.
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9. Bibliography
(WhatIsScience) - What is science” PDF; from Richard Brooks lectures of ‘Philosophy of science’
classes;
(PoP2) - “The problems of Philosophy 2” ,PDF; written by Bertrand Russell;
(EoRM) – “The Evolution of Relationship marketing” ,PDF, written by Jagdish N. Sheth and Atul
Parvatiyar; Pergamon;
(RBP) - Richard Brooks presentations for Philosophy of Science lectures/Hermeneutics and Social
Constructivism/;
(IMB) - Internet Marketing book (Strategy, implementation and practice), 4rd ed.; Dave Chaffey;
Fiona Ellis-Chadwick; Richard Mayer; Kevin Johnston; 2009 y published;
(IfC) – Information given by “MyTV” company;
(Ilink) – Internet link checked info from website -> References: http://napred-nazad.com/dk
(Viewed 15.12.2014y; 15.31h);
(TermsW) – Company’s own website -> References: https://mytv.bg/terms (Viewed: 18.12.2014y;
11h);
(EcBook)- Management Accounting, 6th ed. , Pearson, 2012 year;
(SaSM) - “The Selling and Sales Management” PDF;
(InfoLink) - References => http://businessboom.com.au/marketing-performance-audit/ ;
(Assessed on 20.12.2014y; 18.54h);
(MaFL) – “Management – A focus on Leader”, PDF;
(K8M) - References : http://www.kotterinternational.com/the-8-step-process-for-leading-change/ ;
(Accessed on 21.12.2014y; 18.37h);
(Garuda) – References: https://www.egaruda.com/?AspxAutoDetectCookieSupport=1 ; (Accessed
on 21.12.2014y; 19.12h);
(Canvas) - References => http://en.wikipedia.org/wiki/Business_Model_Canvas (Accessed on
21.122014y; 21h);
(CP) - https://mytv.bg/profile/ (Accessed on 21.12.2014y; 21.16h);
Submission Date: 02.01.2015
Page 38
Appendences
Katerina Angelova Yordanova
I. Project Description
1.1 Background description
“MyTV” BG is a company that provides paid software for a package of TV channels for the
Bulgarians abroad. The company provides the mostly watched TV channels on air, also a new TV
content every day, 7 days free testing of the service, HD quality and all of this in the price of 7
EURO for a month. “MyTV” BG also provides its customers with a mobile version of this TV
channels software. The company already exists in 45 countries. Some of them are Austria,
Germany, Iceland, Latvia, Poland, Hungary, Holland, Spain, Canada, USA and many more. It also
exists in Denmark. Since I am studying marketing and management in Denmark and have some
knowledge about which other companies provide the same service in this geographical region,
the company decided to give me the task to do a research for them. So that my BA project would
act as a big research concerning which is the current target group in Denmark and does it have to
be changed. What are the Bulgarian’s preferences for Bulgarian TV channels abroad? And last but
not least, how to increase “MyTV” BG sales and how to retain and attract new customers.
1.2 Purpose
The purpose of this project is to find the most optimal and appropriate business
model for “MyTV” BG company, which the management of the company could follow.
Also according to findings from the particular business model a strategy will be
recommended for the “MyTV” BG, which the management of the company should
implement.
1.3 Problem formulation
The main question of this project will be:
How can MyTV BG attract more customers and increase company’s sales in Denmark?
In order to answer the main question, there is a need to give an answer to some subquestions in order to have a full view of the problem.
1) How can be improved the current target group of MyTV BG in Denmark by focusing on
sales revenue?
2) What are the current target group preferences for a designed TV package in Denmark?
3) Which is the best possible business model for the company to attract more customers
in Denmark?
4) What strategies to implement in order to increase sales by 10%?
5) Which is the law obstacles connected to such a business in Denmark?
6) Which online tools/ways can be used in attracting and retaining MyTV BG customers in
Denmark?
Submission Date: 02.01.2015
i
Katerina Angelova Yordanova
1.4 Delimitations
The first one is connected to the fact that the project will only cover the company’s activity
regarding Denmark geographical region. The second is the industry where the company
operates, because it is the only area the company is working.
Choice of scientific paradigm
This report will be build based on the theory of text interpretation – hermeneutics. This is
chosen because hermeneutics means to build the whole picture from its different small
parts. Likewise the report , first the sub-questions will be answered in order to cover all
aspects of the main question.
1.5 Methodology
The models and theories that will be used to analyze the problem in this report will be
mainly taken from the marketing, management and economics classes throughout the
bachelor degree lectures. There will not be used all of the studied ones, only those which
are relevant to the topic in question. The data used will be both qualitative and
quantitative. The data will be collected from a lot of different places such as the company
itself, desk research, library books and field research.
1.6 Sources:
“MyTV” BG company and it’s website;
Selling Today, 12th ed. book, Prentice Hall, 2012 year;
Management – a focus on leader, Prentice Hall, 2011 year;
Management Accounting, 6th ed. , Pearson, 2012 year;
Business Marketing Management, 10th ed., 2010, 2007, South-Western Cengage
Learning;
Business Law in the global marketplace, Elsevier Butterworth Heinemann, 2006 year;
Selling and Sales Management, 8th ed., Prentice Hall, 2009 year;
10-Strategies to online success, Darlene Goode, 2011 year;
Boost your sales and attract new customers PDF book, 2009 year;
Sales Tactics, PDF book, Tabula Rasa, 2005 year;
Successful Prospecting in Sales PDF book, 1st ed., 2010 MTD Training
Submission Date: 02.01.2015
ii
Katerina Angelova Yordanova
II. Time Schedule
04.08.2014y
05.09.2014y
19.09.2014y.
03.10.2014y
03.11.2014y
17.11.2014y
Start of business placement
Briefing on problem formulation
Outline(purpose, outline, limitations, etc.)
Approval project
End of business placement
Hand-in the bisuness placement report
III. Company’s Structure
CEO
Marketing
Department
Sales
Coordinators
Finances
Administration
IT Department
R&D
Human
Resources
Customer
Service
Software
developers
IT engineers
Salaries
Accounting
New project
financing
Payment
Services
Source: Own production based on company’s info
Submission Date: 02.01.2015
iii
Katerina Angelova Yordanova
IV Balanced Scorecard and Strategy Map:
Strategy Map
Financial
Customer
Internal
Process
Learning and
Growth
Strategic Objectives
Performance Measures
Initiatives
Decrease Costs
Operating costs
Be better than
competitors in DK
Increase financial
credibility and stability
Increase Market share in
DK
High quality service
After-sales service
efficiency
Improve service image
Improve Service offerings
Improve Marketing
ROI
ROE
sell all assets
Market share in Denmark
Rewards program
Malfunction rate
Complain rate & customer
retention rate
Service awareness
KAM
Revenue fromnew TV
Packages
Marketing Performance
Audit score
Motivation of workforce
Employee survey
Adaptation to changes
Kottler's 8 steps of change
Competences
Garuda competences test
CRM & CSR
More advertising
Develop new TV Packages
New markering campaign
Rewards, bonuses,
commission
Skills program
Competences
development
Source: (EcBook)
Submission Date: 02.01.2015
iv