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9572503 張秀如 Hsiu-Ju Chang 9572504 廖美蘭 Monisha Liao June 2007

National Chiao Tung University Marketing Management Credit Class Report Would Mobile ESPN be popular in Taiwan? Marketing Strategy of Mobile ESPN in Taiwan by consumer value research. 9572503 張秀如 Hsiu-Ju Chang 9572504 廖美蘭 Monisha Liao June 2007. Overview. Introduction

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9572503 張秀如 Hsiu-Ju Chang 9572504 廖美蘭 Monisha Liao June 2007

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  1. National Chiao Tung UniversityMarketing Management Credit Class Report Would Mobile ESPN be popular in Taiwan?Marketing Strategy of Mobile ESPN in Taiwan by consumer value research 9572503 張秀如 Hsiu-Ju Chang 9572504 廖美蘭 Monisha Liao June 2007

  2. Overview • Introduction • Literature review • Observational Expectations • Research questions • Factor hypothesis • Methodology • Analyze data • Survey & conclusion

  3. Introduction • What is Mobile ESPN? The new versionMobile ESPN is a cellular phone-based sports information service offered by ESPN and Verizon Wireless. • What doesMobile ESPN serve via V CAST? will offer real-time sports news, scores and information; personalization for favorite teams; scoring alerts; video and much more

  4. Literature review How can Mobile ESPN fail in America? Mobile ESPN, the MVNO (Mobile Virtual Network Operator) in the USA, owned by Disney, had announced it was discontinuing its service and would sell some of its assets and services to big carriers in America. It is offering refunds to existing customers. Mobile ESPN had according to industry gossip acquired only 30,000 subscribers in the USA, at a time of strong subscriber growth in that market. with a very strong brand ESPN in sports world, Mobile ESPN has all cards, how would it possible fail while others were enjoy the success, like Amp in USA and MTV3 in Finland ….etc., and his answer to this was --- there must had been a total, utter, lack of professional competence in its management! ( http://communities-dominate.blogs.com/brands/2006/09/how_can_espn_mo.html)

  5. Observational Expectations • Sports lover would be willing to use Mobile ESPN service, but if they need to pay extra, this would be the key factor to discourage them. • Providing more value-added function along would encourage consumer to use this service.

  6. Research questions • What are the potential consumer segments? • Will Mobile ESPN be accepted by Taiwanese sports lover? • What will attract target customers to Mobile ESPN? (brand royalty? peer pressure? The contents? ……etc.) • Will an incentive / promotion program make difference to attract more customers? • With what kind of approach / advertisement will be more efficient? • Will it make big difference if the service go with different Mobile phone operator? • What are the factors affect consumer? • What is the suitable market strategy of ESPN Mobile in Taiwan?

  7. Factor hypothesis H1: Taiwanese is not very keen on sports, don’t watch sports channel very often (less than 30 hours / per month). H2: Mobile ESPN is not well-known in Taiwan. H3: People get the information about Mobile ESPN from the TV mostly. H4: Sports lover is more interested in using Mobile ESPN . H5: If need to pay extra, it will discourage consumer to use Mobile ESPN’s service. H6: If must chare extra, it would be better charge less than NTD100.00. H7: Using consumer’s current MOVP will encourage them to use Mobile ESPN ’s service. H8: Adding some value-added function will encourage consumer to use Mobile ESPN’s service. H9: Most cell phone users have already use 3G function. H10: Music will be the most popular value-add service people apply now. H11: Man will be more interested in Mobile ESPN’s service. H12: Students will be more interested in Mobile ESPN’s service.

  8. Methodology • Who (Target customer): Young Adults age from 18~35. • What (Purpose): investigating consumer attitude toward Mobile ESPN service in Taiwan, collecting data for hypothesis testing. • When: evening of May 3, 2007. • Where: (a) NCTU cafeteria (Student) (b) Office (working people) • How many: on each location collects 20 copies of questionnaire (totally 40 copies).

  9. Analyze data

  10. Sample size Sampling customer: age from 18~35. • Sample size: 42 copies. • Sex: Male – 24 Female - 18 • Age: 19~25, around ¼; 26~30, around ½; 31~35, around ¼

  11. General outcome from the questionnaire • 80% people didn’t heard of Mobile ESPN. • Most of people don*t consider to use Mobile ESPN, mainly due to the cost concern. • If the extra cost is less than NTD100/per month, around 57% people will consider to use it. • People like to have the service via their current mobile phone service operation, as part of the value-added function. 6.

  12. Reason of reject Mobile ESPN service multi-selected question

  13. H1: Taiwanese is not very keen on sports, don’t watch sports channel very often Watch Sports Channels Hours per Month

  14. H2: Mobile ESPN is not well-known in Taiwan.

  15. H3: People get the information about Mobile ESPN from the TV mostly. Data collected: 50% of people heard Mobile ESPN from TV.

  16. H4: Sports lover is more interested in using Mobile ESPN. Data collected: (1) sports lover v.s. non sports lover, 45%: 55% (2) sports lover: 19 people (among them, 7 persons would like to use Mobile ESPN, about 36.8%) (3) non sports lover: 23 people (among them, 5 persons would like to use Mobile ESPN, about 21.7%)

  17. H5: If need to pay extra, it will discourage consumer to use Mobile ESPN’s service. Data collected: If need to pay extra, about 42% don’t want to use Mobile ESPN, while only 25% want to use it, and 33% no reply to this inquiry.

  18. H6: If must chare extra, it would be better charge less than NTD100.00/monthly. Data collected: If need to pay extra, 57% would like to pay less than NTD100/monthly.

  19. H7: Using consumer’s current MOVP will encourage them to use Mobile ESPN’s service. Data collected: (1) most people use Chung-Hwa Telecom, around 23.67%. (2) around 79% consumer likes to use Mobile ESPN via their current MOVP.

  20. H8: Adding some value-added function will encourage consumer to use Mobile ESPN. Data collected: To add Electronic Map would be the most popular value-added service to encourage consumer using Mobile ESPN.

  21. H9: Most cell phone users have already use 3G function.

  22. H10: Music will be the most popular value-add service people apply now.

  23. H11: Man will be more interested in Mobile ESPN’s service.

  24. H12: Students will be more interested in Mobile ESPN’s service.

  25. Survey & conclusion

  26. Data Collection Observational Expectations Observational Expectations VS. Data Collection • Sports lover would be willing to use ESPN Mobile service, but if they need to pay extra, this would be the key factor to discourage them. • Providing more value-added function along would encourage consumer to use this service. • 80% people didn’t heard of ESPN MOBILE. • Most of people don*t consider to use ESPN MOBILE, mainly due to the cost concern. • If the extra cost is less than NTD100/per month, around 57% people will consider to use it. • People like to have the service via their current mobile phone service operation, as part of the value-added function.

  27. Congruency Your perceptions of the research issues Consumer perceptions of the research issues Congruent The result of data collection and the Observational Expectations are nearly congruent.

  28. Marketing Strategy

  29. Create a Strategic Plan for Mobile ESPN • Product and market selection • Price • Distribution (Place) • Communications (Promotion)

  30. Product / Market Selection • ESPN’s brand name. • Adding local sports program, or sports news related to local player. • Adding information regarding location of sports bar nearby. • Cooperating with ChungHwa Telecom.

  31. Market Segment • A set of potential customers alike in the way they perceive and value the product. • Sports lover • Young people • Urban citizen

  32. Skimming vs. Penetration Pricing • Skim: price high to reach segments for which the product has the greatest value (then bring price down over time) • Penetrate: price low to achieve high market share before competitors can react and break into the market **** In this case, we suggest the penetration policy, offering low price.

  33. Pricing • Extra NTD100/monthly, as one of the value-added functions. • Extra cost if participating FAN CLUB or related events.

  34. Channels of Distribution • TV advertisement. • DM to all Telecom. Distributors and stores. • DM along with ChungHwa Telecom’s bill. • Making promotion in campus.

  35. Market Communications • Push Strategy (promote – push to end users: technical support, sales training, in-store support, in-store display, cooperative advertising, high resale margins, selective franchises) • Pull Strategy (create end market demand – branding) **** In this case, we suggest to using both push and pull strategy, branding and promotion ….etc.

  36. Thank you.

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