Integrated Marketing Communications Client: HTC x Microsoft HTC HTC takes pride in their contribution to the growth and capabilities of smartphone technology, having invested in a team of highly talented Research & Development (R&D) professionals and pioneering many state-of-the-art innovations and world-class designs for smart-phones. “HTC’s mission is to become the leading innovative supplier of mobile information and communication devices by providing value-added design, world-class manufacturing and logistic and service capabilities. Microsoft and the Windows Operating System for Smart-phones Unlike most smartphone creators, Microsoft has been doing things a little differently- by collaborating with notable brands and introducing their operating system (OS) to the market under devices by brands like HTC, Dell, Samsung and LG. Microsoft developed the Windows Phone 7, a mobile operating system that was launched in Singapore, as well as Europe, Australia and New Zealand on October 21, 2010.
Nokia has also announced their partnership with Microsoft in February 2011, also stating that they plan to phase out the existing Symbian OS on all Nokia phones, replacing them with the Windows OS. The New Product by HTC and Microsoft HTC has worked with Microsoft to create a brand new phone. The phone works on a new Windows operating system, called the Windows Infinite, successor to the Windows 7. With Microsoft’s latest development, HTC has created a state of the art device, offering users a device that is fast, reliable, strong and with fresh new features like its projector function and 12MG Camera with HD video-recording capabilities.
Client Brief 1. To propose branding for the device, which has not been named. 2. To come up with an integrated marketing communications plan to: • • Introduce the product on a global scale. Position and sell the product in the local market. Market Situational Analysis The smart-phone market in Singapore Singapore has the largest percentage of people using smart-phones in South-East Asia. According to a recent study by Nielson (24 May 2011), smart-phone ownership in Singapore stood at 46% of consumers at the end of year 2010.
The study also showed that the largest age group of Singaporeans using smart-phones are those aged 35 to 39, with 59% of them using smart-phones. Runners up age groups 25 to 29 and 30 to 34 years old with both groups having 51% of them using smart-phones. In addition to this, Nielsen has also predicted that the usage of smart-phones will continue to rise in the coming years due to the significant buying interest in the local market. 58% of people aged 45 to 49, and 49% of youths under 20 years old has shown interest in buying a smart-phone.
These numbers mean four out of ten Singaporeans are interested in buying a smart-phone in 2011. Smartphone trends Apps: Made popular and favorable amongst consumers by Apple are phone apps. An article by Mashable actually suggested that the fall of Blackberry could be due to their devices’ incapabilities to support a large portion of apps available to other smartphone users. Users on other operating systems have their own “app marketplace”, where they can browse through the apps available and download or purchase apps made compatible for their device.
Eg. Nokia’s Ovi store and Apple’s App Store. The Android OS market share has seen rapid growth, and this could be attributed to it’s quick and accessible widgets, customization, and it’s application marketplace which rivals that of Apple’s App Store. Effortless and Efficient Communication: BlackBerry has established themselves as providers of devices that serve as the ultimate work companion, with the best mobile email capabilities.
Apart from the push-mail function, which delivers your emails to your phone as long as a network service is present, BlackBerry users can communicate with other BlackBerry users for free using the instant-messaging service, BlackBerry Messenger. Other smart-phones have developed functions similar to that of Blackberry’s push-mail and instant-messaging services. Almost all smart-phones support push-mail and there has been a rise in the production and popularity of apps similar to Blackberry Messenger.
For example, apps like Ping and WhatsApp is available to iPhone and Android users, and they can communicate with others who have the app, regardless of what OS they are on. The Integrated Marketing Communications Plan Current Competitive Situation While Android is the most-used OS globally, according to Nielsen,the iOS by Apple dominates Singapore’s smart-phone market, with 68% of smart-phone holders using the iOS. In second place is the Symbian OS by Nokia (31%), followed by the Android OS (24%). The least used OS in Singapore are the Blackberry (18%) and Microsoft (14%) operating systems. OS by Apple Symbian by Nokia Android Blackberry Microsoft Currently, Samsung is the Windows OS market leader with 51% of current Windows Phone 7 users on Samsung handsets. HTC is in second place with 37%, followed by LG with 9%, leaving Dell with 3% of market share. Samsung HTC LG Dell SWOT Analysis STRENGTHS – Though Microsoft may have the least percentage of users on the Windows OS, the fact that the percentage stand at 14% is commendable, considering the fact that the OS has only recently been introduced. WEAKNESSES Compared to operating systems like the iOS and Android, the Windows platform does not have a mature app marketplace. This might explain the low percentage of users on the Windows OS. OPPORTUNITIES THREATS -There is the opportunity to develop the -The more dominant operating systems like Windows marketplace, to model after what Apple and Android might have already has been done and come up with a better established a sense of preference amongst users, making them unwilling to try other system for users. OS’s. -Based on the study by Nielsen, there is opportunity in targeting PMEBs.
People aged 25 to 39 have the largest percentage of people on smart-phones. In addition to that, the phone has functions that will be attractive to them. For example, the phone has functions such as multi-tasking, push-mail, the ability to download, read, edit and store Microsoft Office documents, and the projector function. -There has been an increased number of tablets available in the market, and this might mean that consumers may not see the need to switch to our product. Our Proposal Campaign Objectives: • • To create excitement and curiosity about the new device on a global scale.
To increase the usage of the Windows OS in Singapore, from 14% to 20%, thus taking over Blackberry’s position in the market. • To increase the percentage of HTC’s market share in the Windows-operated smartphone market in Singapore, from its current 37% to 43%. Product Positioning: With the objectives and the current market landscape in mind, we would like to propose the following: • Target Market for the Singapore campaign ? Aged 25 to 50 years old ? Holds a Bachelor’s Degree ? Monthly personal income: SGD3,500 and above ?
They have spending power and the ability to afford a good standard of living. • Psychographics ? Having busy lifestyles and constantly juggling work and personal life, they value efficiency and multi-tasking. ? They keep up with the latest innovations for mobile technology, because of their dependance on their mobile phones, mainly for work but also for personal usage. ? They value communication ? Though they prioritize work, they give no less of their care and attention to their families, and value their leisure time, taking time of work to socialize, network and enjoy life. They prefer products of better quality and tend to be brand-conscious. Creative Strategy and Key Messages We would like to recommend positioning the product as the phone that allows a user to make the most out of life. Though our recommended target audiences are PMEBs, we do not want the campaign to have too much of a serious approach, constantly relaying how it will benefit a user’s work life. Instead, we want to communicate the fact that, because it can make the work life easier with the phone’s efficiency and capabilities, the user will have more time for the more enjoyable things in life.
Phone name and branding: Proposed name: It The word “it” has been colloquially used to name and put a personality to products that have special, unique, and sometimes indescribable positive qualities to it. For example, when a must-have bag for the season is referred to as the “it bag” by experts and opinion leaders in the fashion industry, or when a starlet is labelled as the “it girl” after gets her big break in the business. Creative Execution 1. Pre-Launch • The main objective of this phase is to create the hype, excitement and curiosity about HTC’s new product, and the new Windows OS for smart-phones. Print advertisements: 1. A simple ad that will only have the copy, “it’s coming; for the better things in life” and the HTC and Windows logos. • Aim: To generate buzz and curiosity 2. The same ad as the above mentioned, but only with part of the phone showing. This ad will replace the first ad, only after the announcement of the phone has been made. • Official announcement of It at CommunicAsia Singapore, a technology convention. • Spokespeople for Keynote: CEO of HTC, Head Product Developers from HTC and Microsoft and Regional Manager of HTC. • •
Invitations to the keynote will be extended to local and foreign media. The invitation cards/e-cards will make use of the print ad “its coming”, without the visual of the phone. • Pitching to the media and media monitoring • • Aim: To generate press to create awareness about the product Pitching to business writers, technology writers and lifestyle writers, putting most of the focus on technology writers. • Contest for developers • Aim: To create awareness about the product among experts in the industry, as well as to further develop Window’s current app Marketplace for the Windows OS. We suggest holding a contest targeted at developers. This will be conducted right after the announcement of the phone. Here are the proposed dynamics: • • Primary target: developers Secondary universities target: IT students in polytechnics and • Participants will be tasked to create apps that will be added to the Windows apps marketplace. • There will be a grand winner and a winner for the student category. The grand winner will win a contract with Windows worth SGD$ 50,000, while the winner from the student category will win SGD$5000 and an internship with Microsoft. . Release of phones into the local market • Print Advertisements ? Concept: In a man’s house, we see five of the same man, all attending to different things at once. He is setting up the projector and the dvd player for his movie date, answering his boss’s emails, ordering flowers for his mother’s birthday, editing tomorrow’s presentation slides and taking pictures of his new house. The message we are trying to communicate with this ad is how better things in life can be enjoyed with one phone, It. • Press Event •
Aim: To give the media and key opinion leaders a first-hand, interactive experience with the phone. This will also help to generate press to create awareness about the product. • The concept of the event will follow the “Need it” ad. In an appropriate space, the house which is seen in the ads will be replicated. In the living room, our product will be projecting a video on loop on the screen and music will be played on the phone through loudspeakers. All the pictures on the walls of the house will feature photography by established local photographers, shot using the phone.
In another “room” on the workspace will be the phone and the absence of an actual desktop computer. Here, experts will walk the media through a thorough briefing on the phone’s functions and features. • Collaboration with Singtel • Aims: • • • To give the product more exclusivity To encourage sales To create the perception that the device and the brands stand for something that it fun, exciting, entertaining and sophisticated; everything that the Grand Prix brand communicates. • We recommend that HTC and Microsoft partner with Singtel, making it the exclusive distributor for the phone.
This will also allow us to participate in major events, such as the Singapore Grand Prix,which is sponsored by Singtel. These are our proposed mechanics: ? For every HTC It purchased, customers can receive a pair of F1 passes. The free passes will be limited to the first 50 customers at every Singtel shop and at roadshows. ? During the event, a booth by HTC, Microsoft and Singtel to be set up, offering people who hold HTC phones a lounge area, free softs drinks all day, and free alcohol during happy hours. ? Media will be invited to the booth. •
Media Pitching and Media Monitoring. • • Aims: To generate press Proposed angles • • • Events listings Student designs apps Lifestyle feature on the photographers we collaborated with for the press event to showcase photography and modern age “equipment”. In this case, the equipment in question was the HTC it. 4. Post Launch • • “Need it” ads will continue to run Media Monitoring. Timeline For services from 1 April 2012 to 31 September 2012 Programmes/Events Apr May Jun Jul Aug Sep PRE-LAUNCH/ANNOUNCEMENT 1. “It’s coming” Ads 2. Official Announcement CommunicAsia 2011 3.
Developers Contest 4. Media Pitching and Monitoring RELEASE OF PHONES INTO MARKET 1. “Need it” Ads 2. Press Event 3. Singtel road show 4. Booth at SingTel F1 Grand Prix event 5. Media Pitching and Monitoring POST-LAUNCH 1. Media Monitoring 2. ”Need it” ads to run Media Strategy Most of the focus of our media strategy will be placed on public relations efforts like generating news coverage through media pitching and coming up with by-line articles. We also plan to provide the media with plenty of interview opportunities with our keynote speakers during CommunicAsia.
Since we are not relying entirely on news coverage for this campaign, we would also like to propose the following for buying ad space for our print ads. Ad-buying Magazines 1. Stuff Magazine Singapore Readership: 40,000 Readership Profile: Mostly males, between 24 to 45 years old Circulation: 30,000 Media Environment: Technology, IT, Entertainment Full-page full colour, 3 insertions per spot: S$3,610 Total for 3 insertions: S$10,830 We decided to choose Stuff Magazine to carry our advertisements as Stuff Magazine positions itself as “The World’s Best Selling Gadget Magazine”.
With a readership of 40,000 in Singapore, Stuff Magazine is popular amongst our target audience for our product thus enabling a wide reach to the consumers. With the latest technology, IT and entertainment news coupled with models on the cover, Stuff Magazine is the must-have magazine for readers who want to be updated on the latest news in the technology and entertainment world. 2. HWMag Singapore Readership: 30,000 Readership Profile: Males and females, between 23 to 40 years old whom are extremely tech-savvy and up-to-date in the latest news in the technology industry.
Circulation: 20,000 Media Environment: Technology and IT Full-page full colour, 2 insertions per spot: S$2,375 Total for 2 insertions: S$4,750 HWMag Singapore is our media choice to display our advertisements as HWMag reaches out to a niche audience of extremely tech-savvy readers. With a popular Singapore forum online, www. hardwarezone. com. sg, HWMag has it’s own cult following of readers spanning across ages of 23 to 40 years old whom are all looking for the latest news in the technology industry.
Being able to reach out to such a niche audience would be beneficial to our product as these readers would be the “Early Adopters” for our product. Newspapers 1. The Business Times Readership Profile: PMEBS, 24-50 years old. Circulation: 37,500 Media Environment: Finance, Corporate and Lifestyle Front page, Full-page full colour (25cm x 4col or 12cm x 8col): S$8,100 Total for 5 insertions: S$40,500 The Business Times is Singapore’s only financial daily newspaper which provides a complete guide on the local, regional and international business scene.
An authoritative newspaper and a key source of business intelligence for investors, managers and businessmen in Singapore and the Asian region, carrying news such as in-depth corporate news, incisive commentaries and lifestyle stories on a wide range of topics including food, travel, motoring, art and collection. The Business Times will reach out to our key target audience and having our advertisement on the front page of such a prominent local newspaper would ensure maximum reach to our key target audience. Outdoor 1. Clear Channel Media Environment: Public Cost per face: $500 Buying spots: 60 (Youth network) 60 x $500= $30,000
Buying spots: 90 (Retail network) 90 x 500 = $45,000 For Youth network, we would place the ads along polytechnics, ITE’s, junior colleges and mainly universities instead of the general youth network route, which includes secondary and primary school. To exclude the younger tertiary schools would serve to narrow down our intended target audience exposure as we can be more sure of people of our target audience age would see more of our ad and would be more encouraged to buy our product as compared to the younger students who might still be unsuitable to use a smartphone.
Besides schools, we would also place the outdoor ads along youth’s hangout spots in the central of Singapore such as Orchard Cineleisure, The Heeren, and Plaza Singapura etc, so as to increase the exposure of our ads to our target audience. Retail network Buying spots- Central: 50 North: 10 East: 20 West: 5 South: 5 For the retail network, we have decided to divide the 90 spots into the various categories as above. With reference to the Clear Channel zone distribution graph, here is a heavier weightage on the central and east sides especially, which is also why we have additional spots in these two areas. These ads would be placed strategically near the shopping malls in each zone in order to attract the attention of shoppers. This retail network would serve both our primary and secondary target audience too as the placing is not so strategic as the youth network yet it would attract the attention of PMEB’s while on the way home or near their neighbourhood where they will be in a more relaxed state of mind to comprehend and understand our advertisements.
The ads in the Central area would be concentrated along our prime financial district, Shenton Way and City Hall to ensure maximum reach to our key target audience. Events We have decided to outsource our three main events (CommunicAsia, Press Event for launch, the booth at the SIngTel F1 Grand Prix) to an events company, Events Artery. Events Artery comprises of specialized event planners who will ensure that our events run smoothly while promising an ideal result. Fee for Events Artery: S$200,000.
Media budget summary Estimated budget: S$390,000 COMPONENTS Total Cost for Print Ads Total Cost for Outdoor Ads Total Cost for Events (Outsource Events Company) Total Cost for Developers Contest TOTAL COSTS $56,080. 00 $75,000. 00 $200,000. 00 $55,000. 00 $386,080. 00 Appendix Print advertisements it’s coming print advertisement, pre-announcement it’s coming print ad, to run after the official announcement of the phone need it print advertisement layout This excludes the multiple versions of the same model attending to different things.