Explain the business model and functioning of YouTube.


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Marketing Management


Case Studies
Case Study (20 Marks)
Today, more than half of Japanese people carry smartphones.1 As a result, consumer behavior has forever changed. When consumers want to know, do, buy, or go, they turn to their phones and expect brands to provide immediate answers. At Google, we call these micro moments: crucial moments in which decisions are made and preferences are shaped. Many of these micro moments happen on mobile. According to Google research, 49% of Japanese consumers take search results into consideration when making purchase decisions.2 For initial searches, consumers use mobile more than any other device;3 and 40% of consumers say they’ve used a mobile device to compare products.2 Car Sensor, a used car information service, and its operator, Recruit Marketing Partners, saw the opportunity to embrace micro moments and followed three steps: 1. Identify consumers’ micro moments Recruit Marketing Partners knew that consumers looking to purchase cars have many I want to know and I want to buy moments throughout their journeys. In fact, 70% of searches for popular vehicle models are made from a smartphone.4 Research conducted by Recruit Marketing Partners also revealed that people’s tendency to look for information on their smart phones and mobile apps is likely to increase. Knowing this, the company invested in its mobile app with the goal of increasing conversions and winning loyal users. 2. Deliver the right information at the right time To make its mobile app convenient and helpful to car buyers, Recruit Marketing Partners took two approaches. First, it outfitted the mobile app with deep links. Users who had already installed the app would see a link to a specific section of the app when searching for vehicle images on Google. This made it possible for users to navigate to the corresponding image of the vehicle model in the mobile app with just one click. Second, the company displayed ads tailored to each user by leveraging its in app behavior log. It could show the most relevant creative content to each user based on brand and price preferences. 3. Measure the results Since searches and conversions within the mobile app may occur several months after its installation, Recruit Marketing Partners determined ROI based on Life Time Value CPA (LTVCPA), which considers a six month period from the time of installation instead of just relying on the app's CPI. As a result of the company’s efforts, the number of conversions from the mobile app has gradually risen and now accounts for roughly 15% of total conversions. As they move forward, Car Sensor and Recruit Marketing Services are going to continue delivering on consumers’ micro moments. Recruit Marketing Partners’ Operating Office of Internet Business, Sakurai Kohei said, "In the future, I want to focus on the idea of micro moments that Google advocates. When we conducted ethnographic research through a different medium to closely analyze the behavior of a large number of consumers, we found a certain amount of mobile usage during those in between moments, like when waiting for an elevator. I think it will become more important in the future to understand and respond to the specific behavior of consumers."

Answer the following question.

Q1. What are micro moments? Explain

Q2. Give the advantages of embracing micro moments in mobile app for the loyal consumers.

Case Study (20 Marks)
PepsiCo a world leader in convenient snacks, foods, and beverages is a $35 billion company. Some of the popular brands like PepsiCola, Mountain Dew, Diet Pepsi, Lays, Doritos, Tropicana, Gatorade, and Quaker Oats are owned by the company. The company  saw a change of preference in it’s consumers in the 1990’s apart from this the beverage industry also observed a rise in functional drinks in the mid 2000s. The case focuses on the Pepsi’s strategy to address this change in the consumer behavior

Answer the following question.

Q1. Describe the Impact of changing consumer behavior on the food and beverage Industry.

Q2. Discuss the possible solutions to address the .change in consumer preferences.

CASE STUDY (20 Marks)
YouTube.com was a video sharing Web site where users could upload, share and watch videos for free. In less than 2 years of its existence, YouTube ranked amongst the Web's top 50 sites and had 16 million daily viewers. By August 2006, it had the highest market share in the free video sharing Web site category. YouTube had introduced two new advertising avenues named 'Brand Channels' and 'Participatory Video Ads' to en cash its huge audience base and soaring popularity. But at the same time, YouTube's success story seemed to be eclipsed by allegations of copyright violations for the non permissible
content posted on its Web site. YouTube also faced a challenge to maintain its rapid paced growth and competition from other emerging me too kind of startups. In October 2006, Google announced the acquisition of YouTube for $1.65 billion in stock for transaction. Would YouTube be able to derive benefit from its association with the global reach and technology leadership of Google or get further entangled in lawsuits after being acquired by a cash rich technology giant?

Answer the following question.

Q1. Explain the business model and functioning of YouTube.

Q2. Examine the critical success factors for YouTube as a company.

Q3. Debate the marketing strategies of YouTube.

Q4. Give an overview of the case.

Case Study (20 Marks)
A French company Allen Sunny Perfumes has introduced a perfume under the brand name RK, named after the charismatic celebrity Ranbir Kapoor. The perfume is available in two variants, RK Silver for men and RK Gold for Women. The perfumes are priced at Rs.5000for a 100ml pump spray bottle. The strategy may be to capture a large number of consumers who are oriented towards film celebrities. Advertising is planned through television satellite channels and magazines.

Answer the following question.

Q1. Analyze the decision taken by the company to have Ranbir Kapoor as the brand ambassador of the perfume from the view point of “reference group behavior.

Q2. Discuss how the company could segment, target and position its market.

Q3. What type of pricing strategy will you suggest for the product?

Q4. What alternative promotional media you suggest to the company for its better placement?



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