national chiao tung university marketing management credit class report would mobile espn be popular...
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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
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Overview
Introduction Literature review Observational Expectations Research questions Factor hypothesis Methodology Analyze data Survey & conclusion
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What is Mobile ESPN? The new version Mobile ESPN is a cellular phone-based
sports information service offered by ESPN and Verizon Wireless.
What does Mobile ESPN serve via V CAST? will offer real-time sports news, scores and information;
personalization for favorite teams; scoring alerts; video and much more
Introduction
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How can Mobile ESPN fail in America?
Literature review
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)
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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.
Observational Expectations
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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?
Research questions
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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.
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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).
Methodology
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Analyze data
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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
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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.
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Reason of reject Mobile ESPN service
0
5
10
15
20
notinterestedin sports
Watchhabit
Service rate notnecessary
to use
wait andsee
doesn’thave 3Gmobile
Others
Reason of reject ESPN Mobile
multi-selected question
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H1: Taiwanese is not very keen on sports, don’t watch sports channel very often
No
33%
Less than 10 hours
44%
11~30 hours
21%
Over 30 hours
2%
No Less than 10 hours 11~30 hours Over 30 hours
Watch Sports Channels Hours per Month
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H2: Mobile ESPN is not well-known in Taiwan.
Yes17%
No83%
Yes
No
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H3: People get the information about Mobile ESPN from the TV mostly.
Data collected: 50% of people heard Mobile ESPN from TV.
ESPNwebsite
20%
friends30%
TV50%
ESPN website friends TV
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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%)
45%
55%
sports lover non sports lover
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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.
25%Yes
42%No
33%No reply
3
5
4
00.5
11.5
22.5
33.5
44.5
5
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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.
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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.
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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.
4
14
1
12
0
6
10
11
15
1
23
17
10
8
9
1
0 5 10 15 20 25
Add local sports channel
Music
Social
Financial service
Fortune-Telling
Online Game
Language learning
News channel
Buy Movie ticket
Mobile community
Electronic Map
Life information
Internet surfing
PDA
GPRS
Others
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H9: Most cell phone users have already use 3G function.
5%
95%
Yes
No
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H10: Music will be the most popular value-add service people apply now.
0
2
4
6
8
10
Inte
rnet
Soci
al
Fortun
e-
Lan
guag
e
Buy
Mov
ie
Ele
ctro
nic
Oth
ers
1數列
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H11: Man will be more interested in Mobile ESPN’s service.
58%
42%Male
Female
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H12: Students will be more interested in Mobile ESPN’s service.
2
7
01 1
0 0 01
012345678
Stu
dent
Pub
lic
serv
ant
un-
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1數列
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Survey & conclusion
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Observational Expectations 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.
Observational Expectations VS. Data Collection
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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.
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Marketing Strategy
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Create a Strategic Plan for Mobile ESPN
Product and market selection Price Distribution (Place) Communications (Promotion)
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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 ne
arby. Cooperating with ChungHwa Telecom.
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Market Segment
A set of potential customers alike in the way they perceive and value the product.
Sports lover Young people Urban citizen
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Skimming vs. Penetration Pricing
1. Skim: price high to reach segments for which the product has the greatest value (then bring price down over time)
2. 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.
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Pricing
1. Extra NTD100/monthly, as one of the value-added functions.
2. Extra cost if participating FAN CLUB or related events.
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Channels of Distribution
TV advertisement. DM to all Telecom. Distributors and stores. DM along with ChungHwa Telecom’s bill. Making promotion in campus.
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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.
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Thank you.