Group 04 Maersk Line Case Submission

Julia Su | Lee Pei Xuan | Nathania Christy | Sean Ling

Full Steam Ahead Evaluating Maersk Line’s B2B Social Media Marketing 1 May 2015

Prepared for Professor Ashwin Malshé MKT352 Social Media Marketing

Agenda

Question 1: Why do you think Maersk Line was so successful in social media? What do you think are Maersk Line’s key drivers of success?

Question 2: Evaluate Maersk Line’s content strategy.

Question 3: Evaluate how Maersk Line executed on its social media plan and platforms.

Question 4: How do you think Maersk Line’s competitors will react to the company’s success in social media?

Question 5: What are the challenges facing Maersk Line in social media going forward?

Question 6: What should Maersk Line do next? What areas should the company focus on and why?


Reasons for social media success 3 key reasons why Maersk Line succeeded

Source: McKinsey, Case Material, Team Analysis

Seeing social media as a strategic marketing effort

in a B2B, traditionally conservative, industry

1

Authentic interaction with customers and creating

sticky content with moving stories

3

First shipping company to move into social media with a head-start on multiple

platforms

2

Paradigm shift First-mover advantage Engagement

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Key drivers of success Maersk‘s social media success is driven by 6 pillars

Source: Jonah Berger: STEPPS, Mickinsey, Case Material, Team Analysis

Visually engaging Showcase Maersk Line’s rich

history of ships, seascapes and ports through photos and videos

1

Consistent voice and presence Empower locals to post on a single global platform. User-

generated content ensures they are authentic and personable

2

Crisis management Respond quickly to rumours or

accidents via Twitter or FB, improving transparency

3

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Key drivers of success Maersk‘s social media success is driven by 6 pillars

Source: Jonah Berger: STEPPS, Mickinsey, Case Material, Team Analysis

Raise rand Awareness

Buy-in from management Support from upper

management, integration of social media operations into Maersk’s corporate structure

4

Segmentation of platforms Sharing stories on FB, twitter and Instagram to reach out to

fans and customers, while sharing industry news and

service updates LinkedIn and Google+ for business purposes

5

Keeping costs down Low costs of social media

marketing lead to higher ROIs 6

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Agenda








Content appeals to a wider audience

Content strategy Think B2C – breaking the notion of a boring B2B company

Source: Team Analysis

Differentiated and innovative content: time-lapse videos, thought-provoking

branded journalism, hip photos of Maersk Liners on Instagram.

Focused on telling stories about Maersk to engage customers, sharable content appealing to the wider public rather than

business or sales content

Social media marketing effort doesn’t translate directly to

sales

Brand becomes memorable as content is Unexpected (following the SUCCES

framework)

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Content Strategy

Source: Facebook, Team Analysis

Use of powerful stories and visuals

Maersk shares both positive and negative stories about the

company

Constant updates about shipping industry and other

current news

Posts serve as social currency which drive shares and

mentions

Honest stories humanize the brand and make it more

relatable to people

Maersk becomes trustworthy and appears to be a socially responsible

company

“It is about not making false pictures about who you are. That is where the crises occur, when suddenly there is a

hole in the image you have created. Then you see the ugly reality.” – Wichmann

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Content Strategy Employees as content creators

Source: Team Analysis, Case Material, Maersk website

Establishing employees as thought leaders in the industry

Provide rich content for Maersk Line’s digital presence

Employees help create and respond to online discussions

about the industry

Marketing is done with minimal budget

Underutilized potential which can be used to

generate leads

Empowerment: employees feel more involved and

engaged by being able to contribute to the brand

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Agenda








Channel specific content development Delivering the right content to the right audience

Source: Case Material

Notes: Before Maersk engaged in Social Media marketing, it clearly identifies the different platforms that it wants to utilize and the purpose, audience, and focus for each platform. The rationale is to assist Maersk in setting achievable engagement goals and developing appropriate content based on four key areas of focus listed above.

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Rank Segment Develop Content

Ranking social media channels from least to most

corporate

4 target audiences:

• Fans • Customers • Experts • Employees

4 key areas of focus:

• Communications • Internal Usage • Customer Service • Sales

1 2 3


How does Maersk stack up? Social engagement channels

Source: Case Material, Team Analysis

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1.1 million likes 81,000 followers

Mostly fans Fans, employees, experts

Create engagement through stories and visuals in a

conversational way

Share news with the industry, humanize the brand, and interact publicly with various stakeholders

Platform is suitable for general audience and raising brand

awareness

Platform is suitable for quick

sharing (re-tweets)

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How does Maersk stack up? Channels for corporate use


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48,000 followers 1,266 followers

Customers and experts Customers, press

Industry news, focus on social commerce, expert discussions

and customer engagement

Used for Google Hangouts to hold small press briefings when

launching new initiatives

Platform is suitable for communication with customers

leading to sales

Platform is useful for discussions and input, but underutilised and

can be further explored

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How does Maersk stack up? Channels for video sharing


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(focused on function, not reach)

(focused on function, not reach)

Fans Fans

Maersk Line’s primary video channel. Videos are shared

through other channels such as Facebook and Twitter

Supplementary video channel to consolidate all videos on one

platform for synergies across A.P Moller-Maersk Group)

Platform is suitable for its function as Maersk video hosting solution

but cannibalises YouTube

Platform is useful for discussions and input, but cannibalises

Vimeo

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How does Maersk stack up? Primary and secondary channels for visuals


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(focused on function, not reach) (focused on

function, not reach)

Fans Fans

Use of hashtag #maersk and #maerskline to build extensive collections and create trends

Showing brand stories, collection of photos

Suitable platform to promote and share their brand worldwide

quickly

Useful for outreach purposes but diffuses social media presence across multiple platforms. May not justify cost of maintenance

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702 followers


Agenda








Global competitor landscape Maersk Line leads the field with a massive social media presence

Source: Statistica: Leading Container Shipping Companies Worldwide as of April 2015

Note: Geographies are for illustrative purposes. Competitors service ports globally.

4,184 FB likes 1,205 Twitter followers

11,000 FB likes 27,832 LinkedIn followers

68,000 FB likes 6,821 Twitter followers

Non-existent 5,825 FB likes

15,546 LinkedIn followers

1.1 mil FB likes 115 k Twitter followers

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How will competitors react? Competitors may stick to status quo in the short run

Source: Forbes

Currently ambivalent as they continue to believe that the traditional and low-profile container line industry does not fit social media programmes

Prevailing industry view

15% 40% 45%

Proven, measurable impact

No measurable impact

Find impact difficult to measure

Competitors are unlikely to catch up to Maersk in the short run

Industry marketing managers know the importance of social media, but find metrics

difficult to implement

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How will competitors react? Competitors will seek to match Maersk’s success eventually

Source: Press Search, Team Analysis

Build a strong foundation

1. Put together a team focused on

social media strategy 2. Establish objectives –

incorporate industry conversion instead of self-promotion

Launch a counter-attack

1. Concentrate on where your audience is - Engage users on targeted platforms

2. Share relevant industry and company news, then use them for lead generation

3. Showcase core competencies

Measure the impact

Come up with metrics to measure social media performance: % of positive/negative brand sentiments, number of FB/LinkedIn followers,% reduction in support costs

As digital and social fronts become increasingly important in the B2B sphere, competitors will not sit idly by and cede control of this sphere to Maersk

Possible competitors’ gameplan

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Agenda








Future challenges 4 key tailwinds shape the future of social media

Source: Digital Information World, Social Media Examiner, Business2Community

Redefining real-time marketing

Companies focusing on the right time to

engage the right clients rather than rapid

response

Greater information density

Cutting through background noise to

capture limited consumer attention will be a challenge for

companies

Content marketing will continue to grow

Companies will continue to prioritise

engagement and metrics for social media

success

Visual web

Visual platforms like Pinterest, Instagram

and Tumblr will increase in popularity

as customer engagement platforms

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Implications of trends Maersk can ride the tailwinds of change

Redefining real-time marketing

Share relevant content with the right

audiences on the right platforms

Greater information density

Achieve consistent and coherent brand image for

sticky impression

Content marketing will continue to grow

Integrate social media marketing with strategic

marketing efforts and update organizational

structure to support marketing changes

Visual web

Keeping abreast of changes in social

media and implementing

technologies to engage consumers eg. CRM and digital marketing

tools

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Agenda








Where should Maersk Line focus on next? Augmenting social media marketing in the overall business


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Communication Sales Employee usage

Customer Service

Role

Where does Maersk stand?

Develop brand awareness

Wide reach across 10 SM

platforms

Generate leads through expertise

Content not directed towards leads generation

Build employee engagement

Employees as content

generators

Encouraging customer

conversation

Lack of focus on customer service procedures online

Internal External

Maersk’s current SM efforts are unable to drive sales and post-purchase experience


Current SM efforts lack impact on bottom line Maersk can master its digital journey to unleash full potential of SM

Source: BCG, McKinsey, Case Material, Team Analysis

Impact on Bottom Line

Inte

rest

gen

erat

ion

Maersk in China

News updates, humanizing brand

Public visibility (#maersk)

Business news, press briefings

Photo / video collection

Business news, customer interaction

By transforming SM marketing into a key strategic effort, Maersk can

harvest untapped value pools

Value Pool

Illustrative

Maersk needs to further develop its social media efforts to drive bottom line growth

Sharing stories / pictures

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Maersk Compass Campaign on social media Insights and best-practices sharing will drive bottom line growth

Source: Maersk, Team Analysis

Thought Leadership Maersk is established as the go-to shipping

provider for clients with its expertise

1

Information Source Producing useful insights for potential customers to bring down costs and optimise shipping solutions

2

Value Co-creation Encouraging sharing of best practises and

customer dialogue

3

Insights, webinars, industry best practices and customer collaboration

Maersk can leverage its social media presence with Compass to drive top-line growth

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How Maersk Compass works Leverage strong awareness to generate business opportunities


1 2

• Maersk publishes technical insights and information on industry best practices on LinkedIn

• Information is shared

through other channels to leverage on its existing fan base

• Customers engaged with technical insights and recognize the economic value proposition of working with Maersk

• Top-of-mind awareness created amongst potential customers

• Sales team works with clients to propose tailor-made solutions and optimizing their shipping processes

• Continual outreach through social media to gather client input and share shipping best practices

Maersk can leverage its social media presence to drive top-line growth

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Julia Su | Lee Pei Xuan | Nathania Christy | Sean Ling

End of Main Presentation Deck ---

Further Appendix Slides Follow


Appendix Slide Maersk Line social media objectives

Source: McKinsey, Case Material

Raise Brand Awareness Customer Loyalty Customer Insights

Employee Engagement Control News Flow


Appendix Slide Successful Voyage into Social Media Multiple Platforms

Source: Maersk Facebook, Twitter and Instagram

Raise rand Awareness

Raise Brand

Awareness

1.1 million likes

115,000 followers

31,600 followers

And others…


Appendix Slide

Information type? How it drives bottom line and generates leads? Best channel?

Social media information types Understanding what Maersk’s customers look for on social media

Source: McKinsey, Case Material, Team Analysis

Company history, general information and

statistics

Establishes Maersk’s pedigree and track record as the leading

shipping company

Current news, updates Provide customers with transparency and influences

Technical knowledge and insights

Thought leadership informs and engages customers

Customer conversation Engaging potential customers, value co-creation

Present

Lacking

Present

Present


Appendix Slide Ranking of channels

Least corporate

Most corporate

LinkedIn

• For experts and customers

• Professional forum • Element of social

commerce

Google+

• For experts and journalists

• Hangouts for small press briefings

• To generate topical discussion and ideas

Vimeo

• Video hosting solution

Twitter

• Substantial following from journalists and shipping press

• News channel • 10 official tweeters

across Maersk Line

Flickr

• Photo collection site

Facebook

• B2C channel • News and fun facts • Glocal approach, managed by

local corp. comms team

Instagram

• B2C channel • Visual display of Maersk

ships and operations • User generated content

from spot #maersk movement


Appendix Slide Differences in B2B and B2C SMM Social Media drives different touchpoints along each decision path

Source: McKinsey, Team Analysis

Consideration Buy

Active evaluation

Loyalty

Experience Trigger

Consideration Buy

Evaluation by buying centre

Loyalty

Use and service Trigger

Formal RFP

B2C B2B

• Less complex value chain with end consumer in mind

• Customers segmented into targeted groups

• More complex value chain (influencers, deciders etc.) and buying process

• Customers require tailored offerings with strong economic value proposition


Appendix Slide Who are Maersk’s clients?

Client Mix (%)

25

10

15

50

Large clients

Key client intermediaries

Other intermediaries

Small clients

Education

Group 04 Maersk Line Case Submission