network marketing: quicksilver case

Network Marketing:

The MarketersQuiksilver

Group E

agenda

AGENDA

Company Situation Solution

Risks

Budget

Why Facebook

TrackingSuccess

Initiatives

Group E

agenda

AGENDA

Company Situation Solution

Risks

Budget

Why Facebook

TrackingSuccess

Initiatives

Group E

Mission: To become the leading global youth apparel company; to maintain our core focus and roots while bringing our lifestyle message of boardriding, independence, creativity and innovation to this global community.

Company brands:

Quiksilver, Roxy, DC, Tony Hawk, Leilani…

agenda

AGENDA

Company Situation Solution

Risks

Budget

Why Facebook

Initiatives TrackingSuccess

Group E

Current lossesGlobal RecessionOutlook: Continued decline in consumer spending

Outlook:

Continued decline in consumer spending

Situation:

Current Losses

Global Recession

agenda

AGENDA

Company Situation Solution

Risks

Budget

Why Facebook

TrackingSuccess

Initiatives

Group E

Advertise through Facebook

• Increase brand awareness among key users

• Estimated 2% increase in sales

agenda

AGENDA

Company Situation Solution

Risks

Budget

Why Facebook?

TrackingSuccess

Initiatives

Group E

faster

World’s largest online social network: 200+ million active users

• Benefits of advertising on Facebook:

• Superior targeting capabilities: Demographic, Geographic, Psychographic

• Direct access to usersInteractive: available 24/7

• Advertising cycle much faster than normal campaigns: increased flexibility

• Create virality and massive brand awareness

This presentationrulzzzz

agenda

AGENDA

Company Situation Solution

Risks

Budget

Why Facebook

TrackingSuccess

Initiatives

Group E

Objective: Link Web Surfing to Wave Surfing

• Subtle but honest

• FB Applications: gifts, tests, games…• Profile “Fan of”•Events• Upload your best moves • FB Page: discounts, online-sales, reviews

Downloads• Links to web page: Special on-line content for registered users: interviews with our stars...

agenda

AGENDA

Company Situation Solution

Risks

Budget

Why Facebook

TrackingSuccess

Initiatives

Group E

Avoid being avoided

• Saturation : • 70% think “The less ads the better”

• Transparency of users: STP• Brand dilution • Content Control• Needs to be monitored wisely • Easy to copy

• Response rate: • As low as 0.04% (BusinessWeek,

11/12/07)• Average 0.2% (BusinessWeek,

7/11/07)

agenda

AGENDA

Company Situation Solution

Risks

Budget

Why Facebook

TrackingSuccessInitiatives

Group E

Track the success of a campaign•How?• Intangible• ROI?

•6 ways of measuring1. Setting up goals2. Web analytics3. Analyzing previous information4. Tracking the audience5. Tracking conversations6. Tracking syndication

Define tangible success measures

1. Define success metrics• Quantitative• Qualitative

2. Set goals based on the metrics3. Track effects of goals and metrics and

review them

Facebook Offers:

• Click controls, weekly and real time reports

• Number of fans, discounts redeemed at online-sales.

• Targeting the right people with the right message

agenda

AGENDA

Company Situation Solution

Risks

Budget

Why Facebook

TrackingSuccess

Initiatives

Group E

Quiksilver’s promotion and advertising budget

• $122.1 million• Visitors at Quiksilver surf game online in two months:

20,000 334 viewers/day/application Initiatives in plan 11 applications

Facebook Budget • Bid max $0.92• Budget max per day $700• Annual budget 700 x 11 x 365 = $2.8 Million

• Annual budget for digital marketing 3% x 122.1 Million = $3.66 Million

Thank you!

Igor Artemiev Ahmet Giray Kai Ting Hsu

Farah Hudhud Carina Rial Gondar

Virginia Rios Lourens Verweij

Maria Alejandra Zapata

Group EMIM 2009