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Company Report Sang-hyeok Son

Volvo trucks 손상혁

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Analyzing 'Live Test' campaign of Volvo Trucks as a company report assignment.

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Page 1: Volvo trucks 손상혁

Company Report

Sang-hyeok Son

Page 2: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 22

Table of Contents

1. Company IntroductionHistoryBusiness ReportFinancial Status & RecentBrand Strategy

2. Internet Marketing Activities

3. Volvo Trucks ‘Live Test’Key Idea 1 : Target BroadeningKey Idea 2 : MessageKey Idea 3 : AccessibilityKey Idea 4 : Parody

4. Conclusion

Page 3: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 33

Company Introduction History

Subsidiary of Volvo Group with some other truck brands.

The first Volvo truck rolled off the production lines in 1928.

Global headquarters in Gothenburg, Sweden. And manufactures and assembles its trucks in 15 countries.

Volvo Trucks employed about 58,542 people around the world in 20113.

In 2013, a total of 200,274 trucks where delivered from the Group’s wholly-owned operations.

History Of Volvo Trucks

Page 4: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 44

Company Introduction Business Report

Europe41%

N. America23%

S. Amer-ica

13%

Asia15%

Other Mkt.8%

Business of Volvo and Volvo Trucks 65% of Volvo Group`s net sales

share comes from ‘Truck’ busi-ness.

And over 40% of net sales for truck business occurred in Eu-rope, 46% from North & South America, and15% from Asia.

Truck business is the main part of entire Volvo Group.

Sales Share of Volvo Group (2013)

Sales Share of Volvo Trucks (2013)

Page 5: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 55

Company Introduction Financial Status & Recent

Trucks 2013 2012 2011

Net sales 178,474 189,156 19,8920

Operat-ing In-come

6,824 12,219 18,227

SEK M

2009 2010 2011 2012 20130

50

100

150

200

250

-15

-10

-5

0

5

10

15

20

Net sales Operating Income

SEK

bn

SEK

M

3-year figures of Volvo Truck Business

After the great depression of 2009, sales and operating income increased continuously for 2 years.

However, figures of recent 3 years show re-declining tendency in not only sales but also operating in-come.

Volvo Tucks started to prepare some new strategies, including marketing programs, for re-boost up their business and sales.

Strategy Plans of Volvo Trucks

Page 6: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 66

Company Introduction Brand Strategy

Volvo Trucks has many various truck brands to cover all of market needs. From basic to premium, Volvo Trucks brand was renewed to deal with decreasing

market situation. As the top premium brand, ‘Volvo’ is targeted to satisfy high-end luxury customers.

Brand Strategy of Volvo Trucks

Page 7: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 77

Table of Contents

1. Company IntroductionHistoryBusiness ReportFinancial Status & RecentBrand Strategy

2. Internet Marketing Activities

3. Volvo Trucks ‘Live Test’Key Idea 1 : Target BroadeningKey Idea 2 : MessageKey Idea 3 : AccessibilityKey Idea 4 : Parody

4. Conclusion

Page 8: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 88

Internet Marketing Activities

In fact, Volvo Trucks is now using lots of SNS to share values and experiences of their products. However there was not outstanding campaign through these

various pathways before.

To success renewal brands, Volvo truck decide to revitalize

their premium brand unit, VOLVO

“Since September 2012 we have renewed our complete European product range and in connection with this intense launch period we wanted to create a campaign that communicated our products in a different way and that put focus on our technical innovation, hence the live-test campaign was born. The idea behind the campaign is to live test certain features in our trucks in a spectacular way.”

- Marie Vassiliadis, Head of Volvo Trucks PR activities

*Buttons are directly linked to each SNS of Volvo Trucks

Page 9: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 99

Table of Contents

1. Company IntroductionHistoryBusiness ReportFinancial Status & RecentBrand Strategy

2. Internet Marketing Activities

3. Volvo Trucks ‘Live Test’Key Idea 1 : Target BroadeningKey Idea 2 : MessageKey Idea 3 : AccessibilityKey Idea 4 : Parody

4. Conclusion

Page 10: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 10

Volvo Trucks ‘Live Test’

Series of 6 video clips with excellence of Volvo Trucks

- Specific informations but also interesting and FUN

Campaign

• Start: Aug 15, 2012 ~ Nov 13, 2013• 6 video clips in YouTube• Provides superiority of each part of Volvo truck• YouTube + SNS link + Mobile accessibility

Page 11: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 11

Volvo Trucks ‘Live Test’

94 million views and over 334,066 shares in YouTube(The most viewed automobile commercial on YouTube)

Results

• 94,246,526 views and over 334,066 shares (The most popular and successful clip, ‘Live Test6’ has almost 72 million views) on YouTube.

• ‘Live test’ series has been the subject of a huge editorial pieces online and the video earned an estimated media value of € 70 million.

Page 12: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 12

Volvo Trucks ‘Live Test’

Google Trends for BIG5 Truck Manufacturers

Volvo Truck MAN Truck DAF TruckScania Truck Mercedes Truck

Live Test 6

Market Share of Truck Manufacturers

In Western Europe (2012)Results

• At the peak of ‘Live Test’, which is ‘Live Test 6’, people searched ‘Volvo Truck’ much more than other competitors except ‘DAF truck’

• Compared to ordinary times, Volvo Truck got a huge interest when ‘Live Test 6’ was launched.

Page 13: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 1313

Volvo Trucks ‘Live Test’Key Idea 1: Target Broadening

This new marketing campaign of Volvo Trucks segmented and targeted their viewers not only truck drivers or related industries businessmen.

Also campaign did not limit the range of viewers to expand effect for pene-trating initial consideration set.

With ‘Live Test’, Volvo Trucks made images of friendly, young and high-tech automobile providers in people`s ICS.

“The goals with the campaign were twofold – building brand awareness among broad target groups and pave the way for sales to our core target groups. Creating spectacular video content that can be distributed in digital and social media is a powerful and cost effective way of reaching wide and engage our target groups in sharing and discussing the content.”

- Marie Vassiliadis, Head of Volvo Trucks PR activities

‘Live Test’

By target broadening, Volvo Truck could put essential elements of their products in various ways. Different from traditional marketing campaign, Volvo and ‘Live

Test’ focus on how wide and interesting they can do. So reaching as far as possible was the main purpose and also the reason ‘Live Test’ could success.

Page 14: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 1414

Volvo Trucks ‘Live Test’Key Idea 2: Message

Each of clips contains specific message from Volvo Trucks. Some kind of Ads with funny stuff or fancy image might loose their origi-

nal purpose, the information. However ‘Live Test’ gives consumers what they should know about Volvo Trucks.

Although ‘Live Test’ is funny, these end-line messages made technical aspects of Volvo Truck still remain in viewers` mindset as a highly devel-oped company ‘Volvo Trucks’

Ground Clearance Stability and precision of Volvo Dynamic Steering

Volvo Dynamic Steering

Live Test 2 – “Hamster”

Live Test 5 – “The Technician”

Live Test 6 – “The Epic Spilt”

Page 15: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 1515

Volvo Trucks ‘Live Test’Key Idea 3: Accessibility

YouTube is the most popular and the easiest way to share video clips these days. Users can access YouTube any time, any where through PC, tablet or smartphone app.

‘Live Test’ overcame the limitation of time and space by choosing YouTube as its sharing platform.

Ubiquitousness of YouTube was the cost-effective and easy accessible solution for Volvo Trucks to share their campaigns and to feedback.

Page 16: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 1616

Volvo Trucks ‘Live Test’Key Idea 3: Accessibility

And as a SNS platform, YouTube is also con-nected strongly with other SNS services, such as Facebook, Google+, LinkedIn and so on.

Huge number of viewers were generated and they could easily share their funny experiences with their friends. So limited number of real consumers for Volvo Trucks was not a signifi-cant problem for ‘Live Test’ campaign.

Consequentially only by the expense of YouTube, Volvo Trucks reach potential con-sumers of itself and Volvo Group.

3,049,925 FB shares

80,078 Twitter Shares

489 blog posts

Live Test 6 – “Epic Spilt”58,832 comments

Live Test

1

Live Test

2

Live Test

3

Live Test

4

Live Test

5

View 9,627,976

6,233,325

2,349,455

3,063,206

977,079

Share 17,065 7,233 1,880 2,058 986

71,995,485 views304,844 shares

Page 17: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 1717

Volvo Trucks ‘Live Test’Key Idea 4: Parody

The Last and the most successful clip, “Epic Spilt” was done by famous actor Jean-Claude Van Damme, as he carries out his famous split on the side mirrors of two revers-ing trucks.

Impact of this scene was so huge that many parodies were made by lots of others, even different industry company like Coca-Cola. ‘Live Test’ campaign could last longer than expected because of this voluntary participation of viewers. Just like ‘Gang-nam Style’ case, parody was the main reason that ‘Live Test’ spread out fast through the internet. The more parodies made, the more views generated.

Page 18: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 1818

Volvo Trucks ‘Live Test’Key Idea 4: Parody

Basically ‘Live Test’ was planned to be enjoyed by viewers. Most of parodies and UCCs are created because the original is fun and interesting. Technical messages were impressive, but also funny and epic story of ‘Live Test’ encouraged online users to create parodies..

‘Live Test’ is the result of digging into online culture in the point of self-participation. This insight of Volvo Trucks could lead massive reactions from online space.

http://www.youtube.com/results?search_query=the%20epic%20split&sm=3

“I can say that we are completely overwhelmed by the attention these films and our trucks have received during this campaign. The response has been huge from media worldwide and from our target groups, noticeable particularly in social media and throughout our global dealer network.”

- Marie Vassiliadis, Head of Volvo Trucks PR activities

Page 19: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 1919

Table of Contents

1. Company IntroductionHistoryBusiness ReportFinancial Status & RecentBrand Strategy

2. Internet Marketing Activities

3. Volvo Trucks ‘Live Test’Key Idea 1 : Target BroadeningKey Idea 2 : MessageKey Idea 3 : AccessibilityKey Idea 4 : Parody

4. Conclusion

Page 20: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 2020

Conclusion &

Internet Marketing is a opportunity for non-consumer p. goods

company to keep in touch with their customers.

But without efforts after successful case, company cannot maintain its short-term market influence power.

After the campaign, Volvo Trucks’ search share goes back to the past.(②) And response from SNS stays in stable stage without drastic changes like before.(①, ③)

Rising quests for Volvo Trucks are how to keep their brand image in cus-tomer` ICS, and how to capture value continuously from customer and mar-ket by this proved internet marketing tools they already have.

Volvo Trucks need continuity

Page 22: Volvo trucks 손상혁

© 2014, Internet Marketing, Professor Janghyuk Lee 2222

Campaign Performance Measurement

Search Google Google trends http://trend.naver.com http://viralvideochart.unrulymedia.com/

Twitter www.topsy.com