Moshi Monsters Draft Recs FINAL

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MsC Digital Marketing – Digital & Social Media Strategy

COMPANY REPORT & RECOMMENDATIONS

Student ID: 3550895 Name: Louise Hart

Module: MsC Digital Marketing – Digital & Social Media Strategy

Assignment 2: Job Application & Company Report


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OVERVIEW: About Mind Candy: Mind Candy is a UK based entertainment company that creates extraordinary brands with online games at their heart. Moshi Monsters is the hero brand and gaming platform which has been funded by a $10M venture capital investment that has allowed the company to implement a massive recruitment drive across UK & US markets.1 About Moshi Monsters: MoshiMonsters.com is an online game where you can adopt your very own monster, explore, play games, collect ‘moshlings’, solve puzzles, get creative and participate in an online community. 1 Moshi Monsters is also the fastest growing social media brand in the UK with a target audience aged 6-12 years old (mainly under 16’s and their parents) and has achieved, to date, over 80M+ registered users and continues to grow in strength day by day.1 Not bad for a small UK start up that was founded in 2007 as an online gaming community but has turned into a multi million pound global children’s entertainment brand that is now widely recognised and is successfully competing against larger, more established children’s online entertainment brands such as Disney’s Club Penguin. Except the key difference is that Moshi Monsters has successfully built a social media brand from a very popular online gaming platform. Essentially it has become the Facebook for kids. How did it do this? Through a careful business and marketing strategy that harnesses a combination of online and offline activities that build brand value and product awareness via engaging communications and activities that interest and ignite young customers gaming passions, thus securing loyal customers. Today the Moshi Monster brand is active in over 150 markets across the world, with approx. $250m+ total gross retail sales via toys, games, magazines, merchandise and retail partnerships. Music Rox the first Moshi monster music album release stormed the album charts ahead of Madonna in 2012 and went gold. Over 2m+ Penguin books have been sold to date and over 90m Moshling figurines have also been sold globally to date.1 Mind Candy recently celebrated it’s 5th anniversary, a huge achievement since it’s inception in 2007.


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CRITICAL REVIEW OF DIGITAL TECHNOLOGIES Digital Vision: Mind Candy is the UK’s biggest social media brand that specialises in the development of new types of multi-player, online gaming experiences driven by online, offline and retail partnerships. Business Objectives:

To make Moshi Monsters the biggest children’s entertainment brand in the World

Instill a customer centric focus throughout Mind Candy that puts the customer at the centre of everything we do, by anticipating needs, meeting expectations and realising customer aspirations

Build Moshi Monsters on customer expectations by expanding the existing product offering into new distribution channels and media partnerships

Develop new intelligent property to maximize the Moshi Monster brand value and increase future business opportunities

Develop strategic alliances with co-brand partners and develop affiliate marketing programs to access new customers

Increase profitablility and grow global market share via expansion into new markets and competing more effectively online

Marketing Objectives:

Build Moshi Monsters brand value by increasing awareness of the brand globally across new and existing markets

Create new innovative services and products that maximizes customer value and engagement experiences that improve on customer loyalty

Drive awareness of new products and services through exciting communication campaigns and social media channels

Develop multi channel communications to increase brand awareness and boost online membership via online, offline and retail sales

Establish Moshi Monsters as a trusted brand for our customers (kids, parents, business partners) by creating a safe, fun and collaborative gaming experience for all

Digital Brand & IP development Moshi Monsters brand is pretty well known amongst its target audience (kids age 6-10 years old and their parents). Following huge success with Moshi Monsters, Mind Candy, is now extending the brand presence through a range of complimentary product line extensions including Moshi TV, Moshi Music, Moshi Mobile apps, Moshi Games, plus a range of other tangibles including toys, games, merchandise and food products. This strategy should in the long-term ensure the company achieves their goals of global market expansion and becoming a brand leader in children’s entertainment. Additional second round venture funding of $10m investment is supporting the development of new IP (intelligent property) across a range of


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online platforms and is facilitating the creation of new interactive content tailored to customers expectations and is behind a huge recruitment drive across the UK and USA. Theory: Ansoff Matrix supports the market penetration and product extension strategies being implmeneted by Mind Candy for online product opportunities and market innovation.2 New Digital Innovations The majority of new IP creations being rolled out under the Moshi Monster brand seem to be supported by traditional online and offline activities. But it is critical to establish new brands and IP products in new technology. For example, character promotions at key events could be presented in 3D film or augmented reality characters or by creating gaming products for new gaming platforms (e.g. Xbox The One and PlayStation 4). Retail Distribution – The Moshi Monster a range of customer touch-points

Multiple channels in the marketing and promotional mix (see above diagram) illustrate the range of touch-points being utilized by the brand. Online platforms include websites, TV, video games, mobile, social media channels, etc.) Offline opportunities include toys, books, magazines, games, collectibles, trading cards and more recently a food range and clothing line have become reality through co-brand partnerships with McDonalds, Penguin Books, to name just a few. In addition, mass distribution of pre-paid gift cards via toy retailers and supermarket chains has made it easier for parents, family and friends to reward children with membership fees or additional credit to buy “Rox” for accessories for their Moshi Monster avatar.


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Clear branding and prominent product displays are now commonplace in small, medium and large retailers as they have discovered the value of the Moshi Monster brand in-store and to ‘cash tills’ around the world. SEO & Search rankings (PPC, Search, Keywords) Search engine results for keywords including:

Moshi monsters

Moshi monster games Moshi Monster login/secret

codes/play now/songs/music/videos All rank very highly and appear on

page one of major search engine results

Some PPC advertising appears on Moshi Monster search results pages, but is less prominent than expected, as SEO for brand keywords search terms and rich media content is already so strong.

Text and image display ads tend to feature more prominently around brand sites or products targeted at parents with children, e.g. Netmums, mumsnet (online parent forums). Suggesting that Moshi Monster has developed a subtle and natural SEM logic that presents content to their core customers based on behavior and habits online. Websites Moshimonsters.com The main brand/product site is the key focus for all customer interaction and engagement. The levels of creativity, content and engagement opportunities are extremely good and support the interests and pastimes of the under 16’s marketplace.

The Moshi Monsters membership offering is also similar in cost to its nearest competitor, Club Penguin (Disney). There is a very simple sign up and registration process for parents who can register on behalf of their child. Parents are also actively encouraged to participate in the online community, by adopting a pet, so they can monitor and interact with their child and his/her contacts online.


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Subscriptions come in two forms: ‘Free’ and ‘Paid’ membership. Free is basic service offering with access to online games and limited community activities, but it is a good introduction to the Moshi Monster experience. Once users have bought into the social network and gaming offering you can choose to become a fully paid up member, via three pricing tiers: monthly, quarterly and annual membership. Annual membership is most cost effective at £35 per annum (approx. 0.10p a day). A small price to pay for hours of golden silence. Mind Candy have developed a gamification system that encourages younger customers to want the next level up (paid membership), the only way they can do this is via parents willing to pay or to seek out secret codes to gain short-term access (social media opportunities abound!). Customer benefits include online gaming, themed challenges and competitions, quizzes and online chat with friends. Many of the on-site promotions speak to children in a language they appreciate. During a recent pirate themed challenge, customers were able to change their face book language setting to ‘pirate speak’. The website is totally geared towards kids online entertainment in a very colourful and engaging way. Mind Candy’s strategy to grow market share and introduce new product line extensions are instrumental to the launch of new products and websites, and building on brand value in the eyes of their customers. New content and services include: MoshiTV.com: The Moshi TV brand features a dedicated website and YouTube channel showcasing the latest Moshi Monster promotional and editorial video as fun, educational content. A two-way dialogue is encouraged as Moshi fans are able to upload their own videos or chat about content via an online forum. Is this the first step to Moshi Monsters competing directly with larger children’s entertainment brands and media owners? Yes, and also another way of fulfilling existing customers expectations. Assuming Moshi monster fans want to live, eat, breathe and watch Moshi TV – which they probably do!


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Moshi Music:

MoshiMusic.com allows customers to purchase CD’s, listen to and download tracks and view Moshi music videos online. A strategic alliance with Sony Music offers the necessary infrastructure and access to new music stock that will help to build Moshi Monsters brand appeal in the eyes and ears of it’s customers. Branding and ownership is clear and prominent to assure users they are on official Mind Candy owned media. Branded URL/Favicon:

CRM & Multi-channel marketing The Moshi Monster brand operates a sophisticated CRM communications programme tailored to customer’s specific stage in purchasing membership. Ranging from ‘Welcome’ and ‘Reminder’ emails (on sign-up whether free or paid member), through to direct response promotional emails featuring new games or themed challenges (encouraging site interaction and customer engagement). Free members are bombarded with email incentives to sign up for full paid membership and frequency increases over a short period of time. Highlighting use of a RFM Model (Recency, Frequency, Monetary) to inform targeted promotions for particular customer segments based on their gaming habits. Social Media Mind Candy utilises all the major social and media channels to engage with their customers and build brand value. Facebook: The Moshi Monster Facebook page is regularly updated with news and promotional announcements across all brand sites. New games and themed challenges feature highly and regularly include ‘secret codes’ for fans to encourage continued engagement via gamification strategies.


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Moshi fans have a voice: To date over 22million comments have been posted on the Daily Growl (the Moshi Monster.com daily newspaper). And over 0.75 billion posts have been posted to the Moshi Monster pin board.1 Social media listening: At the time of reporting ‘Social Mention’ evaluates the Moshi monsters brand as having a social strength of 21%, with a sentiment value of 14:1, which indicates strong grass roots fan base in the social media landscape. However, it would be expected that scores would increase during peak promotional periods to increase brand reach (currently at 38%) and passion (43%). Theory: In addition, Rothery’s 4 E’s framework would also support simplifying the communications mix into Experience, Every Place, Exchange and Evangelism See social media snapshot below.

Online PR (E-PR) An active e-PR strategy supporting Mind Candy’s corporate image and Moshi Monster brand development has established a higher profile amongst the public and industry press. Recent news articles feature the new Moshi HQ in Hoxton based offices, supporting the recent recruitment drive. (See Guardian.co.uk link below). Industry news announcements highlight new product developments including a potential new Movie deal with Hollywood (see licensing.biz article below). All leading to increased brand value for company stakeholders and customers, as well as ongoing awareness of new IP and product offerings.


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Advertising & Online Presence

Limited advertisements appear online, mainly appearing as banner ads or MPU’s on websites aimed at parents with children, these include social networks such as netmums.co.uk and mumsnet.co.uk. Ad frequency and visibility is difficult to ascertain, without monitoring tools. CONCLUSION & RECOMMENDATIONS: Bring Moshi Monster Experience to Life I would recommend the use of innovative technology at events to bring the Moshi Monster brand experience to life for customers (both public and commercial). 360o Igloo technology uses enhanced 2D film footage and interactive features to immerse customers in an almost ‘real’ Moshi Monster World. See http://www.igloovision.com for more examples of Igloo 360 experiences.

http://www.igloovision.com/


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Lenticular messaging Lenticular messaging allows children under 10 years to see different messages, that adults don’t see offering a unique way to present targeted promotions launching of new characters, games and themed challenges. Imagine the PR opportunities, online buzz and word of mouth value that could be generated on social media across Moshi Monster blogs and forums. Below is an example of poster advertising via lenticular messaging: http://mashable.com/2013/05/06/billboard-message-children-lenticular/

Personalised customer experiences Mind Candy could personalize and create a more intimate Moshi Monster experience for customers. Why not reward them on their birthday (birthday rox), or their Moshi Monsters birthday (Birthday cake/Extra Rox). Celebrate customer milestones and success at online challenges with Moshi friends (using Rox to throw a birthday party or celebrate school holidays) helping to bring real-life achievements to life. Theory: Peppers and Rogers’ 5 I’s model illustrates the importance of a customer-centric approach via identification, individualization, interaction, integration and integrity. Child protection agency partnership Streamlined information for parents to ensure proper and safe child monitoring, while social networking or engagement via online communities. A vast number of parents are still nervous about letting their children engage online for very good reasons. Information online should be simplified, with a range of language versions made available to support the multi cultural society of the global market. Including presentation via rich media assets in various languages. Moshi Monster should develop a strong partnership with a government recognised online child protection agencies for each specific market or region to provide greater credibility to their approach to child safety and security online. In the UK, Thinkuknow.co.uk is a good example that provides clear guidance to parents and also operates an efficient, robust investigation process for any complaints. Inclusion of live moderators and filtered chat, in an ad-free play environment both online and via mobile would help ensure it is one of the safest brand assets online for kids to play and socialise. Conclusion: Mind Candy and Moshi Monsters should encourage two-way conversations across all brand assets to understand customer experiences (positive and negative) and ensure an appropriate company wide, marketing information system is in place to support a customer centric vision. This approach should be

http://mashable.com/2013/05/06/billboard-message-children-lenticular/


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fully supported by istilling a customer-focused culture and incentivizing leaders to lead by example. In addition, personalised customer communications lead to greater trust by connecting with individuals however great care is needed to ensure the optimal level of communication and appropriate information is provided. Learnings collated from across the organization, backed-up by regular customer research should continue to define marketing strategy and objectives to ensure they continually meet customer expectations. A customer-centric wide approach should optimize the customers value proposition leading to greater acquisition and retention, more effective marketing and communications performance, and greater company profitability. REFERENCES: 1. Mindy Candy Ltd., Mindcandy.com website, May 2013 2. Ansoff Matrix: Developing online opportunities and Marketing Innovation, fig 10.1, page X. E-marketing Excellence. D.Chaffey & PR Smith. 2013. 3. APPENDIX: Expected Interview Questions:

1. What do you perceive the value proposition for Moshi Monsters to be? 2. How could you participate in a customer-centric marketing approach? 3. What experience do you have in new digital innovations and what benefit

could it bring to Mind Candy? 4. How would you anticipate the needs of the Moshi Monster target

audience? Questions to Mind Candy:

1. In what order would you prioritise the following: People, Profit, Process, Performance, Customers?

2. What operational processes or systems are in place to ensure a customer-centric approach?

3. How do you evaluate appropriate co-brand partners for Moshi Monsters? 4. Could Moshi Monster become an ambassador for best practice in the

safety and security of children online?

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Moshi Monsters Draft Recs FINAL