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Analyzing 'Live Test' campaign of Volvo Trucks as a company report assignment.
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Volvo trucks 손상혁
1.
Company Report Sang-hyeok Son
2.
© 2014, Internet
Marketing, Professor Janghyuk Lee 22 Table of Contents 1. Company Introduction History Business Report Financial Status & Recent Brand Strategy 2. Internet Marketing Activities 3. Volvo Trucks ‘Live Test’ Key Idea 1 : Target Broadening Key Idea 2 : Message Key Idea 3 : Accessibility Key Idea 4 : Parody 4. Conclusion
3.
© 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
4.
© 2014, Internet
Marketing, Professor Janghyuk Lee 44 Company Introduction Business Report Europe 41% N. America 23% S. America 13% Asia 15% Other Mkt. 8% Business of Volvo and Volvo Trucks 65% of Volvo Group`s net sales share comes from ‘Truck’ business. And over 40% of net sales for truck business occurred in Europe, 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)
5.
© 2014, Internet
Marketing, Professor Janghyuk Lee 55 Company Introduction Financial Status & Recent Trucks 2013 2012 2011 Net sales 178,474 189,156 19,8920 Operating Income 6,824 12,219 18,227 SEK M -20 -10 0 10 20 0 50 100 150 200 250 2009 2010 2011 2012 2013 SEKM SEKbn Net sales Operating Income 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 income. Volvo Tucks started to prepare some new strategies, including marketing programs, for re-boost up their business and sales. Strategy Plans of Volvo Trucks
6.
© 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
7.
© 2014, Internet
Marketing, Professor Janghyuk Lee 77 Table of Contents 1. Company Introduction History Business Report Financial Status & Recent Brand Strategy 2. Internet Marketing Activities 3. Volvo Trucks ‘Live Test’ Key Idea 1 : Target Broadening Key Idea 2 : Message Key Idea 3 : Accessibility Key Idea 4 : Parody 4. Conclusion
8.
© 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
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© 2014, Internet
Marketing, Professor Janghyuk Lee 99 Table of Contents 1. Company Introduction History Business Report Financial Status & Recent Brand Strategy 2. Internet Marketing Activities 3. Volvo Trucks ‘Live Test’ Key Idea 1 : Target Broadening Key Idea 2 : Message Key Idea 3 : Accessibility Key Idea 4 : Parody 4. Conclusion
10.
© 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
11.
© 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.
12.
© 2014, Internet
Marketing, Professor Janghyuk Lee 12 Volvo Trucks ‘Live Test’ Google Trends for BIG5 Truck Manufacturers Volvo Truck MAN Truck DAF Truck Scania 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.
13.
© 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 penetrating 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.
14.
© 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 original 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 developed 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”
15.
© 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.
16.
© 2014, Internet
Marketing, Professor Janghyuk Lee 1616 Volvo Trucks ‘Live Test’ Key Idea 3: Accessibility And as a SNS platform, YouTube is also connected 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 significant problem for ‘Live Test’ campaign. Consequentially only by the expense of YouTube, Volvo Trucks reach potential consumers 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 views 304,844 shares
17.
© 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 reversing 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.
18.
© 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
19.
© 2014, Internet
Marketing, Professor Janghyuk Lee 1919 Table of Contents 1. Company Introduction History Business Report Financial Status & Recent Brand Strategy 2. Internet Marketing Activities 3. Volvo Trucks ‘Live Test’ Key Idea 1 : Target Broadening Key Idea 2 : Message Key Idea 3 : Accessibility Key Idea 4 : Parody 4. Conclusion
20.
© 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 customer` ICS, and how to capture value continuously from customer and market by this proved internet marketing tools they already have. ① ② ③ Volvo Trucks need continuity
21.
© 2014, Internet
Marketing, Professor Janghyuk Lee 2121 Reference Related URL http://www.statista.com/ http://www.volvogroup.com/ http://gr8marketingideas.com/2014/01/15/appeal-to-the-masses-reach-your- core-volvo-trucks-on-live-test-viral-success/ http://en.wikipedia.org/wiki/Volvo_Trucks Video, image, etc http://www.youtube.com http://www.volvotrucks.com/
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© 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
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