DMEK MARKETING PLAN
1.0 Executive Summary
DMEK is a software company, based in the Philippines. It concentrates on developing a low-cost and quality cloudweb network solutions for customers. The 14 countries,12 from Asia which are China, Hong Kong, India, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam, and the other two countries are Australia and New Zealand, are the target countries to market the product. The Company will offer it’s service to two categories which are the major market, the Business Oriented Establishments and the secondary market, other establishments which are Educational Institution, Hospital, Media and Government. DMEK will provide customers with a web computing solution that is of low-cost computing and enterprise solution, mobile computing and low cost communication. Three marketing strategies will be used by the company namely, Direct Marketing, Website Deployment and through distributors. DMEK will gain market share by offering the needed services, building customer relationship and reasonable prices. DMEK project earning of P438,976.00 by it’s 3rd year. Projected Sales
440,000 430,000 420,000 410,000 400,000 390,000 380,000 Sales 2012 404,030 2013 410,697 2014 438,976
2.0 Situation Analysis
DMEK is now at 2nd year operation, it concentrates on developing Web solution that is of low-cost but with quality. The company provides computing solutions for Businesses and the Mass. The basic market need for web solution nowadays concerns with the price, product specifications and quality. Building customer relationship to know their needs and wants, earn their loyalty.
2.1 Market Summary
DMEK target markets are 14 countries, 12 from Asia, which are China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam, and the 2 other countries are Australia and New Zealand. Table 2.1INTERNET USAGE OF THE 14 COUNTRIES FOR YEAR 2008 (www.internetworldstats.com)
Countries Australia China Hong Kong India Indonesia Japan Malaysia New Zealand Internet users 16,355,427.00 total population 20,600,856.00
% Penetration in their country % Penetration in 14 countries
79.39197769 2.859371603 19.02191844 44.23125214 69.51084228 0.852931165 5.226499511 10.48962501 10.52576823 4.370677089 73.84803797 16.43374585 58.96938186 2.605622853 80.50873855 0.587419001 15.10550336 2.44757917
253,000,000.00 1,330,044,605.00 4,878,713.00 60,000,000.00 25,000,000.00 94,000,000.00 14,904,000.00 3,360,000.00 7,018,636.00 1,147,995,898.00 237,512,355.00 127,288,419.00 25,274,133.00 4,173,460.00 92,681,453.00 4,608,167.00 49,232,844.00 22,920,946.00 65,493,298.00 86,116,559.00
Philippines 14,000,000.00 Singapore South Korea Taiwan Thailand Vietnam Total 2,700,000.00 34,820,000.00 15,400,000.00 13,416,000.00 20,159,615.00
58.59162656 0.472033126 70.72514438 6.087479049 67.18745378 2.692337087 20.48453874 2.345480153 23.40968477 3.524446696 17.75847777 100%
571,993,755.00 3,220,961,629.00
2.1.1 Market Demographics
The profile for DMEK customers consists of the following: Geographics The 14 countries, 12 from Asia, which are China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam, and 2 other countries are Australia and New Zealand. Demographics The total targeted population is the 571,993,755 Internet user from the 14 countries. Behavior Factors Below is the list of the online activities of the 14 countries. TOP 12 ONLINE ACTIVITIES OF THE 14 COUNTRIES: 1. E-mail 2. Study/Homework/Research 3. News/ Current Affairs/ Weather Forecast 4. Watching/Downloading videos/movies 5. Chatting ( chatrooms) 6. Social Networking/Dating Online 7. Gaming 8. Downloading or Listening to Music 9. Banking and Finance 10. E-Commerce 11. Online Advertising 12. Job Search
The Internet Activities of the 14 countries: AUSTRALIA In a survey of online habits, Australia ‘topped all countries in it ’s adoption of social networking habits, with 30% of users contributing to social networking sites, and 9% to video sharing sites.
(SOURCE: MARKETINGCHARTS.COM/IBM)
Australians now spend more time using the internet (13.7hours per week) than they do watching TV (13.3 hours per week) and more than half (57%) of all Australians multi-task by having TV on while they are online.
(SOURCE: MARKETINGCHARTS.COM/NIELSEN ONLINE)
Australian men generally spend more time in front of the TV (2.5 more hours per week) and the PC (1.5 more hours per week) than women, who prefer spending more time reading and listening to the radio.
(SOURCE: MARKETINGCHARTS.COM/NIELSEN ONLINE)
Once online, Australians like emailing most of all, with 98% of them using this service. Otherwise the most popular activities, 72% of Australians doing these, are banking and checking up on news, sport and the weather. The next key service predicted to take off is mapping, with an anticipated 39% of users wanting directions information by end 2008. (SOURCE: MARKETINGCHARTS.COM/NIELSEN ONLINE) AUSTRALIA AUSTRALIAN E-COMMERCE ACTIVITIES
% OF INTERNET POPULATION FROM HIGHEST INCOME BRACKET (AU$100,000) % OF PEOPLE WHO SHOP ONLINE % OF PEOPLE WHO USED CREDIT CARD ONLINE FOR LAST PURCHASE IN LAST 3 MONTHS % OF PEOPLE WHO BOOKED AIR TICKETS/MADE RESERVATIONS ONLINE IN LAST 3 MONTHS % OF PEOPLE WHO BANK ONLINE DAILY % OF PEOPLE WHO BANK ONLINE AT LEAST ONCE A WEEK % OF PEOPLE WHO BANK ONLINE ONCE A WEEK OR MORE (SOURCE: NIELSEN ONLINE)
PERCENTAGE 32% 73% 74% 40% 16% 52% 68%
AUSTRALIAN SOCIAL MEDIA ACTIVITIES
% OF ACTIVE INTERNET USERS WHO…
HAVE EVER READ A BLOG START THEIR OWN BLOGS HAVE PROFILE ON NEW SOCIAL NETWORK UPLOAD PHOTOS TO SHARING SITE UPLOAD VIDEOS TO SHARING SITE EVER WATCH VIDEO CLIPS HAVE DOWNLOADED A PODCAST SUBSCRIBE TO AN RSS FEED
PERCENTAGE 62% 29% 50.2% 47.1% 28.2% 77% 40.2% 24.6%
(SOURCE: UNIVERSAL MCCANN, MARCH 2008)
ONLINE AD SPEND BY INDUSTRY CATEGORY CATEGORY
FINANCE COMPUTERS & COMMUNICATIONS MOTOR VEHICLES TRAVEL/ACCOMODATION ENTERTAINMENT & LEISURE MEDIA FMCG REAL ESTATE RETAIL INSURANCE HEALTH,BEAUTY & PHARMACEUTICALS GOVERNMENT OTHER RECRUITMENT ALCOHOLIC BEVERAGES EDUCATION & LEARNING HOME PRODUCTS & SERVICES COMMUNITY/PUBLIC SERVICE OFFICE & BUSINESS EQUIPMENT
% OF OVERALL SPEND ( YEAR 2007)
21.31% 16.58% 14.47% 6.93% 6.15% 4.33% 4.66% 2.37% 3.10% 3.70% 3.18% 3.47% 4.01% 1.81% 1.15% 1.17% 0.72% 0.62% 0.27%
(SOURCE:PRICEWATERHOUSECOOPERS/IAB ONLINE ADVERTISING EXPENDITURE REPORT)
CHINA According to one survey, Chinese online users aged 16-25 yrs.old are ‘way ahead of Americans in living a digital life’, with 80% saying it was an essential part of how they lived their lives compared with 68% of Americans.
(SOURCE: YAHOO!NEWS/INTERACTIVECORP/JWT)
One major factor driving the Chinese online is self-expression-73% of young Chinese go online to share their opinions, according to one study. And they prefer to do it anonymously, using nicknames ‘or other monikers that government trackers find tough to trace’. Not surprisingly 73% of Chinese say that they feel freer to express their true thoughts and emotions online than offline.
(SOURCE: YAHOO!NEWS/INTERACTIVECORP/JWT)
Chinese internet users have embraced social networking wholeheartedly, according to recent figures, with 66% of all users having contributed or uploaded files to the internet at some point. (SOURCE: TNS) In a recent survey of China’s 107 million-strong internet users aged below 25, more than 90% of them use instant messaging (IM) and 55.9% have made new friends online. (SOURCE:CNNIC) China has the world’s largest blogging community, playing home to 42 million Chinese bloggers-more than the U.S. and Western Europe combined. (SOURCE: UNIVERSAL MCCANN) For those who read blogs, it tends to be a regular activity, with 46% of Chinese respondents to a survey saying they read blogs daily; 32% accessed them weekly. (SOURCE: UNIVERSAL MCCANN) On a survey, 46% of Chinese respondents saying they read blogs daily and 32% accessed them weekly. (SOURCE: UNIVERSAL MCCANN) One third of Chinese manage their social network pages everyday, while 41% do it every week. OF those that like to post photos online, 19% do this on a photo sharing site daily, while 37% do it weekly. As for video, those who do it, do it often, with 26% of users posting videos online daily, and 41% doing this every week. Nearly half (49%) of people who watch videos online do this every week; and more than one third (35%) watch clips every day. (SOURCE: UNIVERSAL MCCANN) China lays claim to the world’s most visited blog- that of Chinese actress Xu Jinglei, who attracted 86.97 million page views over a 18-month period. (SOURCE: TNS)
When it comes to acting on and reporting spam, 62% of Chinese say they have either pressed the ‘report spam’, ‘this is spam’, or ‘junk email’ links or buttons. However the disparity in opinions is not necessarily reflected in attitudes towards filters or software. Only 32% are currently using either anti-spam filters or challenge response software.
(SOURCE: THE 2008 EPSILON & RETURN PATH ASIA PACIFIC CONSUMER EMAIL SURVEY)
For those who report spam, they do it frequently. Nearly half (49%) of Chinese do use the ‘report spam’ link four or more times a week. Doing that, 35% of them believe, can ‘block the sender from sending spam/junk email to me again’, while 27% say it can allow them to ‘unsubscribe from sender’s mailing list’.
(SOURCE: THE 2008 EPSILON & RETURN PATH ASIA PACIFIC CONSUMER EMAIL SURVEY)
Chinese are generally happy to spread brand messages via email with a sizeable 74% of respondents to a survey saying this was the case. Most (40%) use the ‘forward to a friend’ or ‘tell a friend’ facilities, while more than one fifth (22%) forward the entire email. The remaining 12% send it on as a text email with a URL link.
(SOURCE: THE 2008 EPSILON & RETURN PATH ASIA PACIFIC CONSUMER EMAIL SURVEY)
Chinese love gaming. There are now around 120 million online gamers in China- and 73.7% of under-18 years old there have played online games at some point. Chinese online gamers play role-playing games 21.6 times; leisure games 16.7 times and chess 16.8 times. (SOURCE: CTR) The Chinese also love video-and more so than the U.S. one third of Chinese say they watch video online, compared to just 18% of Americans. And while they are online, the Chinese like to stay there a while. China’s answer to Youtube, Tudou, which has 47% market share says that 15 billion minutes of video are downloaded every month on its site ( compared to Youtube’s 3.5 billion minutes). (SOURCE: OGILVY) For the Chinese, the Internet is a prime destination for consuming music. When asked in a survey, nearly two-thirds (63%) of them said they had downloaded music without paying for it, in the past month, the highest number in the region. And 45% of them believed that all of their music would be in digital formats in 5 years.
(SOURCE: SYNOVATE)
CHINESE ONLINE ACTIVITIES
ACTIVITY
USER-GENERATED CONTENT UPLOAD TV PROGRAMS UPLOAD TV PLAYS UPLOAD OTHER VIDEO ITEMS UPLOAD MOVIE UPLOAD MUSIC UPLOAD PICTURES SEND/REPLY TIPS NEVER SEND TIPS/ UPLOAD CONTENTS MAIN TYPES OF DOWNLOADS MUSIC MOVIE MATERIALS FOR WORK AND STUDY GAMES PICTURES SOFTWARE (EX ANTI-VIRUS) ANTI-VIRUS SOFTWARE TV SHOWS NOVELS OTHERS (SOURE: CHINA INTERNET NETWORK INFORMATION CENTER (CNNIC)) 75.3% 72.1% 66.3% 42.7% 42.1% 38.9% 37.4% 24.7% 23.5% 0.9%
% OF USERS
4.8% 7.9% 10.4% 12.7% 21.3% 31.8% 35.4% 34.3%
METHOD FOR WATCHING VIDEOS ONLINE VIEWING ON WEB PAGE USING PEER-TO-PEER SOFTWARE DOWNLOADS, MULTI-MEDIA PLAYER NO IDEA MAIN TYPES OF VIDEO WATCHED MOVIE/TV/MUSIC NEWS/INFORMATION FUN/VENTURE/SPECIAL VENTURE RECREATION PROGRAM/DRAMA/CROSS TALK & STUDY SPORTS CARTOONS/GAMES ORIGINAL/SELF-MADE/DV SHOW FINANCE AND BUSINESS OTHERS CHINESE SOCIAL MEDIA ACTIVITIES % OF ACTIVE INTERNET USERS WHO… HAVE EVER READ A BLOG START THEIR OWN BLOGS HAVE PROFILE ON NEW SOCIAL NETWORK UPLOAD PHOTOS TO SHARING SITE UPLOAD VIDEOS TO SHARING SITE EVER WATCH VIDOE CLIPS HAVE DOWNLOADED A PODCAST SUBSCRIBE TO AN RSS FEED
(SOURCE: UNIVERSAL MCCANN, MARCH 2008)
% OF USERS
44.06% 29.91% 21.47% 4.56% 79.7% 46.2% 46.0% 40.5% 33.4% 33.1% 29.9% 24.2% 1.0%
88.1% 70.3% 64% 73.5% 58.1% 89% 74.3% 53.9%
HONG KONG Hong Kongers use the internet for sending email more than any other nation in the Asia Pacific, according to a survey 86% of people in Hong Kong go online daily to check their emails. ( SOURCE: BRANDREPUBLIC/NIELSEN ONLINE) When it comes to acting on and reporting spam Hong Kongers are fairly split down the middle regarding the action they take. Just over half (54%) of them say they have not taken any form of action in the past-following either the ‘report spam’, this is spam’, or ‘junk email’ links or buttons- while 46% said they had. Hong Kongers seem even less bothered about setting up automated response to spam too, with a whopping 79% of them saying they don’t use any anti-spam filters or challenge response software to tackle the problem instead.
(SOURCE: THE EPSILON & RETURN PATH ASIA PACIFIC CONSUMER EMAIL SURVEY)
Hong Kongers love to network, with a recent report showing that 16.24% of all internet users visit online social networking sites and forums.
(SOURCE:MARKETINGCHARTS.COM/ THE NIELSEN COMPANY)
Hong Kongers love gaming, spending 56 minutes a day playing games online.
(SOURCE:SYNOVATE)
HONG KONG SOCIAL MEDIA ACTIVITIES % OF ACTIVE INTERNET USERS WHO…
HAVE EVER READ A BLOG START THEIR OWN BLOG HAVE PROFILE ON NEW SOCIAL NETWORK UPLOAD PHOTOS TO SHARING SITE UPLOAD VIDEOS TO SHARING SITE EVER WATCH VIDEO CLIPS HAVE DOWNLOADED A PODCAST SUBSCRIBE TO AN RSS FEED ( SOURCE:UNIVERSAL MCCANN, MARCH 2008)
PERCENTAGE 65.8% 54.5% 53.2% 63.1% 52.2% 86.1% 42.2% 36.5%
INDIA Out of India’s active online users, just 5% of them say they mainly use the internet for e-commerce. (SOURCE: I-CUBE 2007) 54% of them say they buy from the same site while making online purchases. The real e-commerce success story in India has been online travel, which chalked up 50% of all e-commerce revenues in India. (SOURCE:EMARKETER/IAMAI) Online Indians are more receptive to online offers than most, with just under half of those surveyed 48% saying they were influenced by special offers on sites, and 26% of them saying online advertising influenced their shopping decisions.
(SOURCE: THE NIELSEN COMPANY)
More than half of all Indian active online users (51%) mainly use the internet to send email, the next popular activity is searching for information (20%).13% for entertainment purposes as their main activity. For Indians, social networking online is all about keeping in touch with friends they already know, with 82% of respondents to a survey saying that was the case. Just over half of them 58% joined a social networking site to reconnect with old acquaintances they had lost touch with, 53% said they did it to make new friends, while 43% said professional networking was their key motivating factor.
( SOURCE: THE NIELSEN COMPANY)
INDIA’S MAIN ONLINE ACTIVITIES
%USE INTERNET FOR…
E-MAIL
CHAT
INFO
ENTERTAINMENT
E-COMMERCE
SCHOOL KIDS COLLEGE STUDENTS YOUNG MEN OLDER MEN WORKING WOMEN NON-WORKING WOMEN
(SOURCE: I-CUBE 2007)
37% 31% 54% 58% 52% 51%
11% 19% 12% 6% 9% 13%
31% 35% 16% 15% 21% 17%
21% 13% 11% 15% 13% 14%
N/A 2% 7% 6% 5% 5%
INDIA’S SOCIAL MEDIA ACTIVITIES
% OF ACTIVE INTERNET USERS WHO… HAVE EVER READ A BLOG HAVE THEIR OWN BLOGS HAVE PROFILE ON NEW SOCIAL NETWORK UPLOAD PHOTOS TO SHARING SITE UPLOAD VIDEOS TO SHARING SITE EVER WATCH VIDEO CLIPS HAVE DOWNLOADED A PODCAST SUBSCRIBE TO AN RSS FEED
(SOURCE: UNIVERSAL MCCANN,MARCH 2008)
PERCENTAGE 85% 49% 66% 64.8% 52.6% 85.6% 57.8% 44%
INDONESIA Indonesia is upping the ante when it comes to online spending, showing growth rates of 12.6% year-on-year. (SOURCE:HOTELMARKETING.COM) But online advertising is not expected to account for more than 1.5% of overall media spend in the Indonesian market going forward.
( SOURCE: JAKARTAPOST)
Indonesia already had 150,000 of its own bloggers listed in the country, as at the end of 2007 and that number is expected to double by mid-2008. (SOURCE:JAKARTA POST) Advertisers should take note, that Indonesians are amongst the top 10 markets in the world that rely most on ‘recommendations from consumers’, with 89% of Indonesians saying that was the case in a recent survey .( SOURCE: MARKETINGCHARTS.COM) Indonesia is the 14 th largest internet user population in the world.
(SOURCE:SAC/INTERNET WORLD STATS)
Indonesia’s Internet users on average spend 1.8 hours per day checking their email: 1.7
hours a day on online community activities; 2.4 hours a day on instant messaging applications; and 2.5 hours on other Internet activities. ( SOURCE: SYNOVATE 2007)
In a survey regarding the effectiveness of different mediums, Indonesian respondents
said they found the Internet was the most effective in “delivering information”. They did not regard the Internet as being the most effective medium in “arousing interest”, supporting purchase decisions”, “drawing attention, or “being a source of entertainment”. ( SOURCE:SYNOVATE 2007)
In a survey 17% only use the Internet for personal banking while 14% said they use them
for product and service information searching. ( SOURCE:SYNOVATE 2007)
JAPAN Mobile Commerce is Japan’s E-Commerce, internet has been a big influence in Japan’s
business outlook and marketing. The internet has forced change and restructured the Japanese economy as a whole. It is cheaper and more convenient. More than US$8 billion in revenues have already been generated by Japan through m-commerce. The actual cost and maintenance of doing business online is much lower than when you do the selling physically. (SOURCE: INFINITA/WIRELESS WATCH) Online ad spend now represents 8.6% of overall Japanese ad expenditure .(SOURCE:INFINITA) For the first time ever, online ad spend has exceeded magazine and radio advertising combined in Japan. All categories apart from online have been experiencing declines in expenditure.( SOURCE: DEN TSU) Japan is the only country in Asia to use the internet as a main source of news, according to one survey. In all countries surveyed, TV was the primary medium for news and only three countries cited the internet as the second choice-Japan, U.S. and Poland. But when it came to product information, for the Japanese the internet was the primary source of information, not the TV. ( SOURCE: SYNOVATE) Japanese online users can be fairly intolerant of messages they have asked to receive as well, with 67% admitting they have used the ‘unsubscribe’ button or link on ‘legitimate email’ they had specifically subscribed to.
(SOURCE: EPSILON & RETURN PATH ASIA PACIFIC CONSUMER EMAIL SURVEY)
JAPANESE SOCIAL MEDIA ACTIVITIES % OF ACTIVE INTERNET USERS WHO…. HAVE EVER READ A BLOG START THEIR OWN BLOGS HAVE PROFILE ON NEW SOCIAL NETWORK UPLOAD PHOTOS TO SHARING SITE UPLOAD VIDEOS TO SHARING SITE EVER WATCH VIDEO CLIPS HAVE DOWNLOADED A PODCAST SUBSCRIBE TO AN RSS FEED
(SOURCE: UNIVERSAL MCCANN, MARCH 2008)
PERCENTAGE 84.4% 47.3% 41.7% 21.0% 20.4% 68.1% 30.2% 31.4%
MALAYSIA Online travel is a favorite activity for Malaysians, with 55% of respondents to one survey saying they had bought airline tickets or made flight reservations online while 41% said they had made hotel or tour reservations online.
(SOURCE: THE NIELSEN COMPANY)
Close to two-fifths of Malaysians (39%) had made a purchase online in the past month, according to ne survey, 70% of internet users in Malaysia had made a purchase online at some point in the past. (SOURCE: THE NIELSEN COMPANY)
MALAYSIA’S E-COMMERCE HABITS ITEMS BOUGHT ONLINE
AIRLINE/ TICKET RESERVATIONS TOURS/ HOTEL RESERVATIONS COMPUTER HARDWARE BOOKS EVENT TICKETS OTHERS
(SOURCE: THE NIELSEN COMPANY)
PERCENTAGE
55% 41% 22% 21% 18% 24%
Malaysians ‘more than almost anyone else in Asia ‘show the highest degree of trust in
brands that inhabit the digital space, and more likely to use that brand’s offering if they see it online, according to one survey: 35% of Malaysians said online ads’ significantly increased’ their interest in brands, compared to the Asian average of 31%.
(SOURCE: TNS/DIGITAL MEDIA)
Malaysians love online gaming. According to one survey, a whopping 86% of Malaysian
“techsetters” are gamers, only coming second to the Chinese (97%). 80% of Malaysian gamers have been exposed to massively multiplayer online role-playing game (MMORPG) and 19% consider themselves active with it.
WHAT MALAYSIANS DO ONLINE
ACTIVITY AGED 15-24 39% 17% 26% 20% AGED 25-64 39% 31% 19% 22%
USING EMAIL
NEWS/CURRENT AFFAIRS EDUCATION/TRAINING
IT/INTERTNET/COMMUNICATIO N/TECHNOLOGY
CHAT ROOMS DOWNLOADS ENTERTAINMENT MUSIC SPORTS (SOURCE: SYNOVATE MEDIA ATLAS)
29% 25% 13% 12% 13%
15% 12% 13% 12% 10%
NEW ZEALAND Online banking has now become the ‘norm’ for Kiwis under 40, with 80% of internet users in this age range having used these services in the last month. Meanwhile 62% of Kiwis over 55 said they had also visited an online bank in the past month.
( SOURCE: THE NIELSEN COMPANY )
Kiwis are pretty loyal bunch when it comes to online shopping, with 66% of respondents to a survey saying they tend to buy repeatedly from the site. And just over one third of them (34%) base their choice of site to shop at on personal recommendations.
( SOURCE: THE NIELSEN COMPANY )
Of New Zealand’s online shoppers, the most common purchase is airline tickets and reservations: 44% of users said that was what they had bought online in the past three months; 33% said they bought books; 29% bought event tickets; and just 7% of them bought their groceries online. ( SOURCE: THE NIELSEN COMPANY ) New Zealand’s online advertising market was worth NZ$135.16 million in 2007- 5.8% of total ad spend. (SOURCE:INTERACTIVE ADVERTISING BUREAU) The internet is now New Zealand’s 5 th largest advertising channel. (SOURCE: IAB)
New Zealanders spend more time online than many other countries in the region. Average internet users in this country spend 20.21 hours online a month.
( SOURCE: COMSCORE/NEW ZEALAND HERALD/CISCO)
Kiwis spend more time online than they do watching TV, when they are online- 61% of them say they watch videos and 47% download music. (SOURCE:NEW ZEALAND HERALD/CISCO) PHILIPPINES
When it comes to online shopping, Filipino internet users are in the ‘slow adopter’
category, says one survey: 55% said they had never made a purchase over the internet.
(SOURCE: THE NIELSEN COMPANY)
75% of internet users in Manila, aged below 25 were ‘active online gamers’, with more
than half of them playing multi-player online games; and 40% of them said they played the RAN Online game the most. ( SOURCE: DIGITAL FILIPINO)
The average young Filipino internet user is online for at least 12 hours a week, according
to a survey of internet users in Manila, aged below 25. Their top site is Friendster.
(SOURCE: DIGITAL FILIPINO)
Filipinos are amongst the most avid blog readers on earth. According to one survey, only
South Koreans (92.1% of them) read blogs more than internet users in the Philippines, with whopping 90.3% of those asked in a survey saying that they had ever read a blog.
(SOURCE: UNIVERSAL MCCANN)
Perhaps because many people of the Philippines work overseas, they show the highest
appreciation for social networking-more so than anyone else in the world. When asked in a survey if they had ever created a profile on a new social network, 83.1% of them said they had- the highest proportion of people in a country than any other.
(SOURCE: UNIVERSAL MCCANN)
The Philippines leads the way again when it comes to uploading photos on Web sites86.4% of them said in a survey that they had already done this- more than any other nationality in the world. (SOURCE:UNIVERSAL MCCANN)
But when it comes to watching videos, they are at the top of the list again, with 98.6%
of Filipino respondents saying they watched videos online, more than anyone else.
(SOURCE:UNIVERSAL MCCANN)
In a survey of internet users in Manila, aged below 25, 38% of them said they primarily
went online for research reasons. They also cited social networking and gaming as the second and third reasons for going online.(SOURCE:DIGITAL FILIPINO)
THE PHILIPPINES SOCIAL MEDIA ACTIVITIES
% OF ACTIVE INTERNET USERS WHO….. HAVE EVER READ A BLOG HAVE THEIR OWN BLOGS HAVE PROFILE ON NEW SOCIAL NETWORK UPLOAD PHOTOS TO SHARING SITE UPLOAD VIDEOS TO SHARING SITE EVER WATCH VIDEO CLIPS HAVE DOWNLOADED A PODCAST SUBSCRIBE TO AN RSS FEED (SOURCE: UNIVERSAL MCCANN, MARCH 2008) PERCENTAGE 90.3% 65.8% 83.1% 86.4% 60.5% 98.6% 61.8% 45.2%
SINGAPORE Singapore is now one of the most connected countries in Asia, if not the world.
(SOURCE: INFOCOMM DEVELOPMENT AUTHORITY)
Singaporeans love to shop and to date 82% of them have said they have made a purchase online, with nearly two-fifths of them (39%) having done so in the last month according to one survey. (SOURCE: THE NIELSEN COMPANY,2008) WHAT SINGAPOREANS BUY ONLINE
PRODUCT AIRLINE TICKETS/RESERVATIONS TOURS/HOTEL RESERVATIONS CLOTHING/ACCESSORIES/SHOES EVENT TICKETS BOOKS OTHER
(SOURCE: THE NIELSEN COMPANY,2008)
% OF USERS
42% 32% 31% 23% 19% 24%
Singaporeans rank brands Web sites as more trustworthy than TV ads or email newsletters, according to one survey. Ultimately however for Singaporeans, the channel of communication they trust the most when it comes to brands of products or services is good old fashioned word of mouth. (SOURCE:TNS/DIGITAL MEDIA) Singaporeans love playing games, with 62% of this under 25 age range revealing they had used the internet to play online games in the last month, according to one survey.
(SOURCE: SYNOVATE)
Young Singaporeans (under 25) spend an average of 1 hour 34 minutes a day on emails; 1 hour 30 minutes in online communities; 4 hours 10 minutes on instant messaging and 3 hours 43 minutes on other activities, says to one survey. (SOURCE:SYNOVATE)
WHAT SINGAPOREANS DO ONLINE
ACTIVITY
PLAYED GAMES LISTENED TO MUSIC COMMUNICATED WITH OTHERS WATCHED VIDEOS CREATED UPDATED BLOG ONLINE LEARNING
(SOURCE: SYNOVATE)
% OF USERS 62% 59% 54% 49% 22% 21%
SOUTH KOREA South Koreans love to shop online. Among those who have internet access, pretty much all of them (99%0 have used it to buy something, the highest percentage in the world.
(SOURCE: THE NIELSEN COMPANY)
South Koreans love to shop online regularly. When asked, 79% of the country’s internet users had bought something online in the previous month-again the highest figure globally. In the clothing , shoes and accessories sector, they also lead the way, 70% having bought something in the category online in the past three months.
(SOURCE: THE NIELSEN COMPANY)
It is estimated that by 2009, more than 10% of all South Korea ad budgets will be spent online. (SOURCE:DIGITAL ECONOMY FACTBOOK) South Koreans are the world’s most enthusiastic bloggers and consumers of blogs, with 71.7% of active internet users having started their own blog and 92.1% having read one.
(SOURCE:UNIVERSAL MCCANN)
Among those active users, 44.4% subscribe to an RSS feed and 70.3% have a profile on a social networking site. Video is popular in the country, with 86.5% having watched a video clip online and 43.6% having uploaded a video to a sharing site. More than half (54%) of users have uploaded photos to a sharing site, while 49.2% have downloaded a podcast. (SOURCE: UNIVERSAL MCCANN) Among heavy internet users, eBay is South Korea’s most visited retail site, with 62.4% reach. (SOURCE:COMSCORE MEDIA METRIX) In the entertainment sector, the most popular site among heavy internet using South Korean is Pandora.tv, reaching 50.9% of them. (SOURCE:COMSCORE SEGMENT METRIX) Online gaming is big in South Korea, with country’s most popular gaming site being Nexon.com, with 14.2% overall reach. (SOURCE:COMSCORE MEDIA METRIX)
SOUTH KOREAN SOCIAL MEDIA ACTIVITIES
% OF ACTIVE INTERNET USERS WHO…… HAVE EVER READ A BLOG START THEIR OWN BLOGS HAVE PROFILE ON NEW SOCIAL NETWORK UPLOAD PHOTOS TO SHARING SITE UPLOAD VIDEOS TO SHARING SITE EVER WATCH VIDEO CLIPS HAVE DOWNLOADED A PODCAST SUBSCRIBE TO AN RSS FEED
(SOURCE:UNIVERSAL MCCANN,2008)
PERCENTAGE
92.1% 71.7% 70.3% 54% 43.6% 86.5% 49.2% 44.4%
TAIWAN Taiwan’s internet penetration rate is variously estimated to be between 65% and 67.8%, with a total of about 14.7 million internet users, and 10.03 million internet accounts.
(SOURCE: COMSCORE/UNIVERSAL MCCANN/FIND/TAIWAN NETWORK INFORMATION CENTER)
Online shopping is starting to take off in Taiwan, with overall sales for 2007 totalling NT$108billion, or 1.3% of the entire retail sector. (SOURCE:MIC) Online games are the service that Taiwanese internet users likely to buy online, with 29.26% of them having done so. People are willing to pay online, for music (27.97%), phone services (19.87%), financial services (19.08%), education (10.59%) and TV and film (10.33%). ( SOURCE: TNIC) More than 10% of all Taiwanese ad budgets will be spent online by 2009.
(SOURCE: DIGITAL ECONOMY FACTBOOK 2007)
The most popular use of the internet among Taiwanese is browsing Web pages, with 67.37% of users doing so. Next most popular is email (40.34%), then information searching (26.44%), chat (24.18%), online gaming (18.72%), downloading music (8.9%), downloading software (8.02%) and shopping (8.01%). (SOURCE:TNIC) TAIWANESE SOCIAL MEDIA ACTIVITIES
% OF ACTIVE INTERNET USERS WHO… HAVE READ A BLOG HAVE STARTED THEIR OWN BLOG HAVE A PROFILE ON A SOCIAL NETWORKING SITE HAVE UPLOADED PHOTOS TO A SHARING SITE HAVE UPLOADED VIDEOS TO A SHARING SITE HAVE WATCHED VIDEO CLIPS HAVE DOWNLOADED A PODCAST SUBSCRIBE TO AN RSS FEED
(SOURCE: UNIVERSAL MCCANN, 2008)
PERCENTAGE 86.6% 70.9% 63.1% 69% 53.7% 89.2% 33% 48.4%
THAILAND Familiarity plays a big part in Thai internet shoppers’ choice of online retailer, with more than half (52%) of users saying they buy mostly from the same site, according to one survey.(SOURCE: THE NIELSEN COMPANY) The average Thai is online for 13.1 hours a week. (SOURCE: SYNOVATE) Email remains by far the most popular feature of the internet in Thailand, according to one survey, with 81% of users checking their email daily. Other popular functions are instant messaging (37%), using chat groups (31%), searching for products (27%) and social networking (26%). (SOURCE: THE NIELSEN COMPANY) Entertainment and games make up more than half of all total Web use in Thailand (50.33% of all Web clicks each day). Social networking plus reading news, including business news, together take up a further 24.9%. (SOURE:NATIONAL ELECTRONICS AND COMPUTER TECHNOLOGY CENTER) The search terms most commonly employed by Thai internet users are games, horoscope, music and jobs. (SOURCE:TRUEHITS.NET)
WHAT THAIS LOOK FOR ONLINE
TYPE OF INFORMATION NEWS/POLITICAL/CURRENT AFFAIRS MUSIC IT/INTERNET/COMMUNICATION/TECHNOLOGY LEISURE/TRAVEL/VACATION/LITERATURE /ARTS TV/MOVIE GUIDE/ENTERTAINMENT NEWS EDUCATION/TRAINING SPORTS CARS/MOTORBIKE MAP AND DIRECTIONS LOCAL SHOPPING AND DINING GUIDES DICTIONARY HOROSCOPE/FENG SHUI/PSYCHOLOGICAL TESTS FASHION BEAUTY IDOLS CAREER/JOBS LIBRARY SERVICES/EBOOKS FINANCIAL/INVESTMENT NEWS/PROPERTY WEATHER OTHER INFORMATION DATING (SOURCE:SYNOVATE MEDIA ATLAS/ BANGKOK RESIDENTS) % OF USERS 55.3% 49.4% 48.1% 47.1% 44.5% 32.5% 29.8% 27.5% 24.4% 24.1% 23.4% 22.9% 22.5% 19.7% 19.6% 17% 16% 15.3% 14.9% 10% 2.4%
VIETNAM Vietnam’s e-commerce market remains small, generating revenues of US$44 million a year. (SOURCE: INTELLASIA/IDC) Online gaming is a bright spot, with annual revenues expected to hit US$50 million in 2008 and climb to US$83 million by 2010.(SOURCE:INTELLASIA/VIETNAM SOFTWARE ASSOCIATION) Online advertising remains in its infancy in Vietnam, accounting for just US$4 million in expenditure in 2006, but is rising about 50% each year.
(SOURCE: VIETNAM NEWS AGENCY/ONE CONNECTION INTERNET)
INTERNET USAGE, BY ACTIVITY, AGE
ACTIVITY CHATROOMS NEWS/CURRENT AFFAIRS PLAY GAMES EMAIL WATCHING MOVIES STUDY/HOMEWORK WORK DATING ONLINE JOB SEARCH LISTENING TO MUSIC SHOPPING ONLINE CHECKING THE WEATHER 18-30 72% 63% 57% 38% 33% 15% 14% 11% 5% 3% 3% 2% 41-50 43% 81% 14% 34% 0% 3% 27% 0% 0% 0% 3% 2%
(SOURCE: AC NIELSEN, USES OF THE INTERNET IN HCMC AND HANOI)
2.1.2 MARKET NEEDS DMEK is providing customers with a web computing solution for businesses and other establishments. Low cost computing Low cost enterprise solution Mass market content distribution Mobile Computing Low cost communication (telephony)
2.1.3 MARKET TRENDS The market trend for the use of internet has been increasing, to a large degree with the aid of internet providers, digital subscriber lines and recently by broadband connections. PROJECTION OF INTERNET USERS from the 14 countries
800,000,000.00 700,000,000.00 600,000,000.00 500,000,000.00 400,000,000.00 300,000,000.00 200,000,000.00 100,000,000.00 0.00 2009 2010 2011
Internet Population
Year 2009 2010 2011 2.1.4 MARKET GROWTH
Population (increase by 10%) 629,193,130 692,112,443 761,323,687
Internet users have grown every year, because of dsl and broadband, The increase use of internet users will help the company a lot with it’s growth. Figure 2.1.4 TARGET MARKET GROWTH
3 2.5 2 1.5 1 0.5 0 2012 2013 2014 Percentage
Year 2012 = growth by 1%, Year 2013 = growth by 1.05%, Year 2014 = growth by 2.5%
2.2 SWOT ANALYSIS The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing DMEK 2.2.1 STRENGTHS The Research and Development team Knowledge and Technology 2.2.2 WEAKNESSES The difficulty of building brand equity Insufficient resources 2.2.3 OPPORTUNITIES Participation within a growing market. Increase in sales for we offer a much lower price than competitors. 2.2.4 THREATS If a company has 1st introduced the product similar to what we offer. The leakage of information regarding to the product the company is developing. 2.3 COMPETITION There are to main competitors in this area. 1. StoneWare. They are well established provider of innovative software and many companies support them. 2. CherryPal. Innovative, green plan that has potential to simplify and expand computer Industry. Both of these companies have innovative technology and they have a established a brand, DMEK will be able to attract customers by offering a much lower cost of web computing solution. 2.4 SERVICES DMEK will offer customer support, we will have help services via phone or just visiting the website and e-mail us.
2.5 KEYS TO SUCCESS Exceed customer’s expectations Address market needs Have a good customer relationship Productive employees Have good relationship with suppliers
1.0 MARKETING STRATEGY DMEK will employ the following for their marketing strategy: 1. Direct Marketing- attempts to directly send message to customers. 2. Website Deployment – to build a global reach/awareness to customers 3. Distributors- retailers/sales team 3.1 MISSION DMEK’s mission is to provide the clients with a low-cost and quality Web computing solution. 3.2 MARKETING OBJECTIVES Marketing Objective are the following: 1. Increase sales every month for the first two years. 2. Increase repeat customers by 3% per quarter. 3. Develop a brand image that DMEK offers a Web solution that is low-cost and quality. 3.3 FINANCIAL OBJECTIVES The financial objectives include the following goals: 1. Increase the profit margin by 1%. 2. Hold spending at steady level as a percentage of sales. 3. Generate sufficient sales to eventually require the need to hire an additional employee.
3.4 TARGET MARKETS The major target markets of DMEK are Business oriented establishments and the Secondary market are the Mass or other establishments which are Educational Institutions, Hospital, Media, Government, and Individuals/ Home Users. 3.5 POSITIONING DMEK will position itself as the Web Company offering low-cost and quality web solution in the Web Enterprise Biz in Asia and followed by other countries. 3.6 STRATEGY PYRAMIDS The objective of DMEK is to be a company that offers low-cost and quality web solution to its clients. The marketing strategy will seek to generate awareness of the offered services and growth of customer base, build customer loyalty and referrals. The first method is Direct Marketing, set appointments to prospected customers and have product presentation. This presentation will allow communication between the client and the company for they can on the spot make some inquiries regarding the product. The second method is the deployment of the company’s website. Wherein individuals can go to the site and browse through the service offered by the company. Making e-mails for their inquiries. The third method is engaging with distributors, choose selected distributors and have appointment with them, product presentation and asked them if can bundle our product to their company. 3.8 MARKETING MIX The Marketing Mix is composed of the following: 1. Product- is the web computing solution 2. Pricing- the pricing schedule is per deployment of the service to clients/customers. 4. Promotion- with the use of our selected Marketing Strategy to promote the product. 5. Distribution- generally the products will be distributed to retailers and sales team. 3.9 MARKETING RESEARCH DMEK primary marketing research is data mining, wherein all clients/customers information and other valuable data for marketing research are stored in a database and reviewed to come up with a reliable and accurate market research.
4.0 FINANCIALS This section will offer financial overview of DMEK as it relates to the marketing activities. 4.2 SALES FORECAST The sales is a projection of slow, controllable growth. The focus will be on quality and attention to detail. Careful examination of variations in demand with regards to customers needs and wants. Figure 4.2 Sales Forecast Year 2012-2014
440,000 430,000 420,000 410,000 400,000 390,000 380,000 Sales 2012 404,030 2013 410,697 2014 438,976
Year 2012 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter total Year 2014
Forecasted Sales-increase by 1% P 100,000.00 101,000.00 101,010.00 102,020.10 404,030.10 Forecasted Sales-increase by 2.5% P 106,426.40 108,608.14 110,834.60 113,106.70 438,975.84
Year 2013 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter total Total sales for 3 years Year 2012 Year 2013 Year 2014
Forecasted Sales -increase by 1.05% P 101,071.21 102,132.45 103,204.84 104,288.49 410,696.99 Forecasted total Sales
1st Quarter 2nd Quarter 3rd Quarter 4 Quarter total
th
P 404,030.10 410,696.99 438,975.84
total
1,253,702.93
4.3 EXPENSE FORECAST The expense forecast will be used as a tool to keep the business on target. Proper implementation of the marketing plan. Figure 4.3 Quarterly Expense Budget
250,000 200,000 150,000 100,000 50,000 0 2012 2013 2014 Expense
Marketing Expense Table:
Year 2012 1st Quarter 2nd Quarter 3rd Quarter Marketing Expense P 100,000.00- Direct Marketing 30,000.00-Website 10,000.00-Engaging with distributors 10,000.00-Engaging w/ distributor P 150,000.00 Marketing Expense Year 2013 1st Quarter 2nd Quarter 3rd Quarter Marketing Expense P 120,000.00-Direct Marketing 30,000.00-Website 11,000.00- Engaging with distributors 10,000.00- Engaging with distributor P 171,000.00(increase by 1.14%) Marketing Expense
4th Quarter
4th Quarter
total Year 2014
total Total Expense for 3 years Year 2012 Year 2013 Year 2014
1st Quarter 2nd Quarter 3 Quarter 4 Quarter total
th rd
P 150,000.00 30,000.00 12,000.00 12,000.00 P 204,000.00(increase by 1.19%)
P 404,030.10 410,696.99 438,975.84
total
1,253,702.93
5.0 CONTROLS The purpose of DMEK marketing plan is to serve as a guide for the organization. Areas to monitor the performance: Revenue-monthly and annual. Sales- monthly and annual. Customer satisfaction.
5.1 IMPLEMENTATION OF MILESTONES The following milestones identify the key marketing programs. It is important to accomplish each on time. MILESTONES
ACTIVITY Direct Marketing Website Deployment Engaging with Distributors
START DATE
END DATE
BUDGET
PERSON
P 100,000.00 30,000.00 20,000.00 Total: P 150,000.00
5.2 MARKETING ORGANIZATION The Marketing and Advertising Dept. will be responsible for the marketing activities. 5.3 CONTINGENCY PLANNING Difficulties and Risks Overly aggressive and debilitating actions by the competitors. Competitors, introducing a much low-cost product similar to what we offer. Worst Case Risks May Include Determining that the business cannot support itself on an ongoing basis. Having to liquidate the company’s equipment to cover liabilities. Leakage on information of program files of the company.