Module FASH30004 1
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Zooglies is to be an online character based world for children incorporating clothing, apps, augmented reality, games, play, learning and interactivity. As well as being able to play games on the mobile/ tablet application, children will be able to scan an interactive logo from the clothing range to create an augmented reality experience. Via this they can then use the virtual character to interact in an exciting online virtual world and share the fun with their friends.
Fig.1
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Contents:
From page
1.0 Introduction and Methodology
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2.0 CHAPTER ONE: UNDERSTANDING THE BRAND - 2.1 Brand DNA
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3.0 CHAPTER TWO: CONSUMER ANALYSIS - 3.1 Segmentation of the consumer - 3.2 Consumer trends - 3.3 Consumer usage habits: Children in the UK
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4.0 CHAPTER THREE: THE UK GAMING MARKET - 4.1 SWOT analysis
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5.0 CHAPTER FOUR: COMPETITION IN THE ONLINE VIRTUAL WORLD MARKET - 5.1 Table of competitors - 5.2 Analysis of table - 5.3 Risks and issues - 5.4 Brand case studies - 5.5 Channels of monetization
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6.0 CHAPTER FIVE: TECHNOLOGY AND THE APPLICATION MARKET - 6.1 How will Zooglies be supported across different platforms? - 6.2 Application market SWOT - 6.3 Case studies - 6.4 Distribution channels
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7.0 CHAPTER SIX: THE UK CHILDRENSWEAR MARKET - 7.1 SWOT analysis - 7.2 Competition in the childrenswear clothing market
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8.0 CHAPTER SEVEN: CONCLUSIONS AND RECOMMENDATIONS
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9.0 List of references
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10.0 List of illustrations
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11.0 Bibliography
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INTRODUCTION AND METHODOLOGY
1.0 Introduction The aim of this project was to investigate the challenges and opportunities the Zooglies brand will face when launching in July 2013, looking to identify how they can overcome the problems and embrace the opportunities to make the launch a success. By firstly establishing the brand DNA I have been able to segment the target consumer groups. The project then delves further to gain an understanding of relevant trends and consumer habits that Zooglies will need to consider in planning their campaign. An analysis of the UK gaming market identifies the key competitors and highlights the factors affecting the market, as well as considering technological trends the brand will be able to take advantage of to optimise brand recognition and increase sales. Although this report focuses on the launch of the online virtual world and augmented reality app, it also includes research into the UK childrenswear market to support their new clothing range. This research will be used to underpin my Stage 2 report and concludes with my own recommendations. Methodology This report was constructed, and the findings evidenced, using a variety of strategic and innovative primary and secondary research methods. Primary: Questionnaires were sent to parents to see if they knew what online virtual worlds their children were playing, how often and if they could suggest what would and wouldn’t work in the future amongst other queries. Primary schools were used as the main distribution channel for this method as the local school alone had 360+ students aged 4-12 years old, and this enabled me to collect 146 responses. Multiple interviews were conducted with adults and children to gain a more in depth understanding of the market and to focus on the results from the questionnaires. This was also an opportunity to talk to gaming enthusiasts to find out what technology is being used most frequently, what is up and coming and if there are any ideas they think Zooglies would benefit from. The focus group enabled me to gain further understanding of the market and also to see what ideas could be generated when the consumers were brought together as part of a discussion. Solo observations with a child highlighted how they interact with the existing competitor products and how Zooglies could make the experience easier, safer and more fun for children to play. The option to undertake solo observation minimised distractions for the child and ensured she held her focus on the task at hand. Subscribing to online virtual worlds allowed me to explore how the competitor sites are working; for example determining how easy it was to sign up, what safety features were in place and how many online activities there were for children. Test marketing; gaining access to Zooglies information allowed me to test a small group of potential customers. Helping me to predict how the brand will be received by the mass market when launched. Non-disclosure agreements were used to ensure I test marketed the products in a professional manner whilst keeping the client’s right to confidentiality legally bound.
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Secondary: Books gave me an insight into the design of the games, interactive storytelling and the ‘laws’ of virtual worlds that social networking marketers suggest I follow. Online journals, for example Keynote, Verdict and GMID, gave me access to a vast range of stats that I am unable to collect myself due to time and money restraints. Using children’s magazines I was able to see how the competitors are using this media to communicate with their target market; what they are doing, what is successful and potential improvements. Websites are a faster way of collating information compared to most research methods. They provided access to articles and databases from multiple libraries and as the data is condensed, it makes finding relevant topics easier from a wider range of media (i.e. books, articles, images, power-points) available for use. Engines use association to help locate sources you may be completely unaware of and social networking in particular is currently at the forefront of several marketing campaigns. Limitations: Although a comprehensive level of research was attained during the development of this project, I am aware of the few limitations and shortcomings. Firstly the survey conducted received 146 responses, although for a university student this was an impressive collection of results, had I had access to more schools and resources it would be a better and more accurate representation of the targeted market. Secondly, because of issues with child safety gaining access to young children without a CRB check proved difficult, and there was not enough time to pursue applying for the check and do the research before my deadline (when taking into consideration holidays where schools would be closed). In addition, as I completed this project as a solo venture there may be a certain level of bias where during the edit to the final draft I have chosen research that I find will be most useful in order to progress on to phase 2.
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Fig.2 Fig.4
Fig.3 Fig.5
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CHAPTER ONE: UNDERSTANDING THE BRAND
Zooglies is to be an online character based world for children incorporating clothing, applications, augmented reality, games, play, learning and interactivity. 2.1 BRAND DNA Vision Zooglies aim to be renowned for their innovative game play in the UK. Children should be able to stop and start game play whenever they wish, encouraging healthy breaks where they can finish homework and socialise with their friends outside of the online virtual world. Mission • To provide a safe environment for children to play games online and socialise with their peers • To update the online virtual world daily with quality content • To create a community that involves the parents and highlights the benefits their children are experiencing during game play Aims and objectives • To successfully launch the Zooglies brand in the UK • To have over 500,000+ loyal, registered users of the online virtual world that are logging in 3+ times a week • To provide customer service that involves real time responses and a forum /platform for consumers to give recommendation to Zooglies and their peers • To have over 10 million combined downloads of Zooglies app/s in the first 5 years • To be one of the most popular websites with 1,000,000+ total visits within the next 5 years Essence • Zooglies is the future of children’s online gaming • Provide a regularly updated online community on which children can use social networking safely • Allow parents to be comfortable and enthusiastic with their children interacting with Zooglies both on and offline • The brands competitive advantage lies in the multiplatform strategy and dedication to children’s safety
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Associated brand words Due to there being no existing consumer base, this word cloud depicts the words aimed to be associated with Zooglies in the future. It is hoped that when the brand comes to launch, these will be comparable with reality.
Children
Parents
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CHAPTER TWO: CONSUMER ANALYSIS
3.1 Segmentation of the consumer:
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Although the children will be playing the games and wearing the clothing, it is their parents that will be making the purchases. The majority of people with dependent children live in households which include a mixture of working and workless parents, with 7.6 million households falling into this category in 2011 (GMID 2012, online). There has been a trend in mothers opting to wait for financial stability before having children, which is likely to have resulted in an increase in the level of disposable income in the UK and therefore more of these families have extra money to spend on non-essential items, such as toys and games. The consumer grouping can be described as secure parents or families with young children aged between 4 and 11 years old. With the larger families food bills tend to be higher so price is important and they often favour supermarkets such as ASDA where they can purchase clothing and their weekly food shop in one trip. Many will own a PC and from my survey I found that the popularity of Laptops has slowly overtaken with 67.1% of households having at least one. There is also an increasing usage of Smartphones and tablet computers (GMID 2012, online), and recent developments have included apptivity products to be used alongside these devices. Leisure activities include golf, going to the cinema, watching TV and listening to music; rock and pop being their preferred genres. Package holidays to Europe and the Mediterranean are popular but many will holiday at home, perhaps in selfcatered accommodation (acorn 2010, online). According to the acorn user guide this group is classed as socio-economic group H and are described as comfortably off. Single Mother Eleanor Brown (40) is a single mother with four children; Robert (23), Louise (20), Alistair (18) and Katie (9). The eldest three are now grown up and either working fulltime or away at university, and Katie is in primary education. Please turn over for daily routine.
Fig.6
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Example of daily routine:
Fig.7
Fig.8
For full day see Appendices 1.0
3.2 Consumer trends From research there were five contemporary trends that stood out as being the most influential in today’s society. Stories are the oldest way to communicate ideas, and people have deep-rooted, visceral responses to marketing that includes storytelling. Other emerging trends found were the element of confession in relation to companies adopting increasingly transparent strategies, STOGIC – being “logical but stupid” when trying to meet your consumers needs and desires and ‘satisfise not maximise’; the ability to give a consistently good customer experience rather than incredible experiences every so often. Then lastly, the trend of focussing on ‘likeability’; brands are moving away from the ‘anti-corporate sentiment’, striving for consumers to believe in their offerings in terms of a deeper and more trustworthy relationship. STOGIC: being logical, but stupid. Heuristic approaches to creating products involve using instinctive beliefs to be creative and learning from experiences. For example, London Underground installed clocks on the platforms to inform commuters when the next trains would be arriving. This had no benefit to the company, but improved the customer experience. People find it more frustrating to not know they need to wait 5 minutes, than to know they have to wait 7 as they then know how much time they need to occupy. This new trend for brands to think ‘stogically’ will result in more creative and effective business strategies. Zooglies need to understand that the most effective ideas can be seen outside of the facts and that brands are going beyond customer expectations to create an experience that connects with the consumer. Element of confession Many potent strap lines have an element of confession. Admitting a fault or weak point makes a brand more believable and honest in the eyes of a consumer (Sutherland 2012, online). It‘s hard to get brands to admit their faults, but people prefer this behaviour compared to extravagant claims as it comforts them. For example, “Fresh Cream Cakes: Naughty...but Nice” This advert was used by Lyons to admit that yes, their cakes did have an extremely large amount of sugar in and were bad for your figure, but who cared when they tasted that good? People were drawn to the honest approach, because if the brand were even admitting their product to be a guilty pleasure; many others must be too, so it’s OK to indulge. For example 2 see Appendices 1.0 Brands need to adopt similarly honest and transparent marketing strategies as in a world where social media is everywhere every little secret can be exposed with drastic consequences. Being truthful to the consumer is key, and ensuring a constant stream of communication so they feel they connect with a brand as an individual rather than a consumer group. Consumer trends continued in Appendices 1.0 Contemporary trends need to be acknowledged by Zooglies in order to progress and launch the brand.
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3.3 Consumer usage habits: Children in the UK 95% of households with children have an internet connection (Office for National Statistics 2012, online). Therefore 95% of children will have access to an online virtual world at home whether it is on a Laptop, PC or handheld device such as a phone or tablet. The remaining 5% attend compulsory education where they have access to the internet or the option of visiting a friend or family member to play. This leaves no restrictions of how many children Zooglies can target as a brand and it will only be subscriptions and premium services that will depend on the level of household income. Children aged 4-12 years old in the UK are most likely to be playing games after school between 4pm and 10pm at the latest, on the weekdays during term time. Then on the weekends from 8am till 11pm as they are in a structured routine so usually still awaken early, and although parents tend to stick to strict bed times, they are more likely to be lenient on the weekends. From my research, I found that children play on online virtual worlds between one and five days a week. However, some parents limit the amount of time their child is allowed on the computer a day or week so this statistics is subject to change if the parents can be convinced of the benefits of their child being computer literate. It is also commonly known that there is a stigma attached to how much time a parent allows their child to play online. This could cause anomalies in results where parents have been dishonest in order to make it seem as if their child spends less time on a computer and more time partaking in physical activities. Adults often use more than one device at the same time; for example watching the television with a laptop in front of them and their phone to the side. Similarly children also enjoy multitasking, taking advantage of the multiple tab system on internet browsers to listen to music, play games and socialise at once. Because of this any online marketing must be visually appealing and grab their attention before they have time to switch to another game or activity.
“My favourite game is Roblox because it has building and new games everyday!� - Katie Brown, 2012
See Appendices 1.0 for observation transcription Fig.9
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In the brief Chris Lee had confirmed the Zooglies target market to be children aged 4 – 12 years old. The first phase in compulsory education is primary school, where children attend from the age of 5 to 11 years old; from research I found that children in this age range often look to older friends when choosing which online virtual world they should be playing. As a result of this research, the focal target range of 4 – 11 years old is more suitable for Zooglies as children aged 11+ are more likely to be playing with a younger sibling or simply revisiting an old favourite on a less regular basis.
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Ethan Jones is 7 years old. His favourite online virtual world is Moshi Monsters but his friend Katie has recently moved on to Roblox so he has begun playing too. He uses his Mum’s laptop to play online but got a tablet for Christmas so has recently spent more of his time playing apps.
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Fig.12
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CHAPTER THREE: THE UK GAMING MARKET (ONLINE AND OFFLINE)
4.1 In order to gain a broader understanding of the UK gaming market both online and offline, I have completed a SWOT analysis. Although Zooglies will primarily be focusing on the launch of their augmented reality gaming application and online virtual world, it was important to get an overall scope to identify licensing opportunities for the future. Strengths • The average UK household has a high penetration of toys and games (Keynote 2012, online). • 98% of children aged 9-19 years old have access to the internet somewhere (UK Children Go Online 2006, online). • Online virtual worlds have their own, monitored, social networking features. This element is socially ‘sticky’ and makes it easier for children to invite their friends to connect. • Increase in the quality of online content and children’s usage of the internet and computer games. • 70% of parents admit they let their children use their own personal iPad’s (Ellis 2012, online). Children are now very familiar with these types of devices and are being taught to use computers at a very young age. Opportunities • Increasing number of children are gaining access to tablets and Smartphone devices. • The number of 5-9 year olds is forecasted to grow by 9.5% by 2016 (Keynote 2011, online). • Character licensing and new film releases have boosted sales of toys and games. YouTube’s popularity is increasing (rise in unique visitors to the site per week by +56.3% from 2009-2011 (Keynote 2012, online). • Young children are likely to drive strong growth for products that mimic tablets and Smartphones while offering greater protection. • Online virtual worlds can be used to run advertising campaign for products ahead of their release in the real world. • As new products enter the market and as updated versions are released, the cost of devices depletes at a very fast pace.
Weaknesses • Children aren’t loyal to specific worlds. • Many parents still have major issues with child safety on the internet. • Highly saturate market and thus extremely competitive. • Monthly subscriptions, the most popular form of monetizing players on online virtual worlds, sets an upper limit of what users can pay. As a result the really engaged paying power users can’t get any more out of their world over and above the subscription levels and benefits (KZERO 2011, online). • Sales of toys and games are reliant on the season (Keynote 2012, online).
Threats • The return of the recession and the Eurozone debt crisis are, for now, likely to continue and have an effect on household spending. • The rapid growth in popularity of online games and virtual worlds has attracted the unwanted attention of both hackers and organized crime (TREND MICRO 2008, online). • Increased usage of mobile devices, both in and outside of the home, mean that more people are connecting to company and public networks. This creates a greater risk when securing private details. • Data protection could also be a major threat if hackers are able to access private information through the site. • Children are maturing much earlier, which means that they are more likely to lose interest in toys and games at a much younger age than previously experienced (Keynote 2012, online).
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For full SWOT analysis see Appendices 2.0 Summary of SWOT From 2009 to 2012 there was an increase in children playing on online virtual worlds from 77million to 355million (KZERO 2011, online). This statistic reflects the quality content that is constantly improving as more gaming devices are introduced and broadband is developed. The advancements in technology are creating opportunities in the UK gaming market both online and offline but consumers are beginning to demand more in terms of customer experience, and this needs to be addressed. The main issue in the market is child safety with growing security issues and parents being apprehensive towards the internet as a whole. In order to give parents peace of mind, issues regarding safety need to be addressed and then communicated to the parents in a way that they not only understand but are happy with. Moreover, the commonly used freemium business model has flaws that can be overcome by looking beyond the monthly subscription plans in order to monetize the online world and app market. Although the most successful players in the market are using subscriptions it sets an upper limit so Zooglies need to determine whether to follow its competitors or to launch with their own monetization strategy. Finally securing a child’s loyalty interlinks with all the above points as this inevitably has a knock on effect for every aspect of sales within a multiplatform strategy. If a brand cannot keep a child returning on a regular basis their parents will be less likely to invest and competitors will be ready to benefit from their loss.
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CHAPTER FOUR: COMPETITION IN THE ONLINE VIRTUAL WORLD MARKET
5.1 Table of competitors
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After looking at the UK gaming market it was important to consider the specific competition the Zooglies brand would face when launching into the online virtual world market. The table below comprises of a list of the most popular online virtual worlds in the UK at the time of research, their target market, the amount they charge for a month’s subscription, whether they allow external companies to advertise within the world, the availability of a gaming app, the statistics of their Facebook and Twitter presence and a brief evaluation of their strengths and weaknesses. Competitor
Target age range (years)
Monthly cost
Advertisements
Downloadable app/s
Facebook/Twitter
Strengths
Weaknesses
Roblox
Primarily 8-14
‘Upgrade’ to ‘Clubs’
Yes
Yes - free
Yes/Yes
New games added daily.
Poor graphics.
However, looking to expand to 15+
Builders; $5.95
256k ‘Likes/31k Followers
Good social networking following; active FB following.
Selectively replying on Twitter account & don’t communicate on FB posts.
Turbo Builders; $11.95
John Shedletsky has 55k Followers; Creative Director.
Outrageous Builders; $19.95 Moshi Monsters
6-12
Moshi Membership
No
1 month; £4.95 recurring
Many available – 69p
Yes/Yes
Visually appealing.
494k ‘Likes’/9.8k Followers
Strong presence on social media platforms.
Both updated daily
Gained the majority of their users through organic channels.
Yes -
Yes/Yes
Unofficial cheats app $1.99 & one other (Puffle Launch) 63p
567k ‘Likes’ (inactive)/16k Followers
Google ad; paid to have the link directing people to the subscription page. Limited time offer: free £10 gift code for Disneystore. co.uk when you purchase a 12 month subscription.
6 months; £23.95 recurring 12 months; £29.95 one off payment Club Penguin
8-14
Memberships 1 month: £4.95 6 months: £19.95 12 months: £29.95
No
General association with Disney; reputable heritage. Team photos on Twitter YouTube following.
Lacking dialogue and communication with consumers. Limited number of games on site, not updated regularly. Limited number of levels on app; waste of money? Ease of navigation around site for children – without a user login you can’t view any of the games available (where’s the incentive with no sneak preview?)
Wizard101
6-12
Prepaid game cards, ‘Crowns’ (unlock premium zones) and memberships
No
Yes – free; WizardBlox (Apple only)
1 month: $9.95
Yes/Yes 380k ‘Likes’/22k Followers
6 months: $49.95 12 months: $79.95 (Limited time $59.95) Bin Weevils
6-12
Bin Tycoon Membership 1 month: £4.95 6 months: £19.95
Yes – in game, not obvious advertisements
Yes – £1.50 Tink Blox (free online though)
Yes/Yes (new) 1.2k ‘Likes’/975 Followers
12 months: £34.95
Fight My Monster
Boys aged 8-12
1 month: £4.95 6 months: £19.95 12 months: £23.95
Good quality graphics; however poor website design (e.g. font)
Not taking advantage of their UK following; not connecting with a strong consumer base.
Safety – pre-generated player names and screen shots of the chat system showing parents how the site works.
48hour response time for support.
Deals with Cartoon Network Small choice of games, not and Nickelodeon during launch regularly updated and the only helped boost the initial follow- multiplayer games are extremeing. ly simplistic. Visually appealing.
Layout is too spread out and requires too much concentration Children have to play regularly to begin playing. Children have to keep their Bin Weevil fit; a very short attention span and encouraging loyalty. this is not appealing to them
No
No – in the process of developing one with the creators of Angry Birds
Own ‘Like’ system “It’s wicked” on ‘What’s new’ blog; blog is also updated regularly to keep children interested and interacting with the website daily.
Music in the “club” was awful; rap, not engaging the children by using music they will either recognise or be able to sing along to
Yes/Yes
Visually appealing
113 ‘Likes’/422 Followers
Trading card game strategy; modernised version of a simplistic, old school approach to gaming cards.
Picture password system; too difficult to remember.
Missions; encouraging children to socialise in order to win more nuggets.
Children are more likely to remember one word than 4 symbols in a certain order. This will result in children creating multiple new accounts and then getting bored as they are constantly having to start from scratch.
Minecraft
Boys aged 8-18
£17.95 one off payment
No
Yes – pocket edition of virtual world £4.99
Yes/Yes 5.6m+ ‘Likes’/2.3k Followers
Regular updates, keeps the consumers interested and playing regularly. Addictive game play; people stay loyal and play for hours at a time. One-off payment plan; profits are made upfront and then when consumers purchase add-ons they are bonus sales for the company.
Movie Star Planet
Girls 4-13
VIP Members; purchase of ‘Star Coins’ 1 week: £3 1 month: £9 3 months: 19.99 1 year: £49.99
No
Yes - free
Yes/Yes (completely inactive account)
MSP TV. The link to YouTube has increased views and awareness of the channel.
1.6k ‘Likes’/1.8k Followers
As a result the brand has a strong presence on YouTube.
Requires users to download Java and give it unrestricted access to trial an hour and a half of the demo version. Extremely basic graphics; used pixels to create characters, buildings and surroundings. When consumers opt to buy the game they are given a price of £17.95, but not informed what it is they’re paying for. Content monitoring for appropriateness/safety – included on the sites ‘Top Videos’ list was a video titled ‘Unzipped Zipper Face Makeup Tutorial’; this is far too graphic, realistic and would disturb most children. Goals set for children in order to progress to a higher level of fame are too difficult and encourage them to befriend strangers. Children are asked to enter a username and are not directed away from using their full name; the site clearly has a large number of security issues. Hacking; numerous reviews state that there are many getting their VIP accounts hacked into, money and points stolen and no one from customer service is responding.
5.2 Table analysis The table of competitors can be analysed to draw out the following conclusions: Target age range Each targeted age range varied +/- a few years older and younger but all included 8-12 years. This implies children aged between 8 and 12 are the most likely to play on online virtual worlds, however, further research (see UK gaming market SWOT) suggests otherwise. With this information I can gather that these companies haven’t got a complete understanding of the market and there is room to improve on how the competition is segmenting the target consumer group. Monthly cost The most common cost for a monthly payment was approximately £4.50. Although Minecraft appears to have the cheapest overall payment plan, it is unclear how long this subscription lasts as it is not stated on the website. As a result Fight My Monster would be the lowest costing world with a yearlong subscription for just £23.95, compared to most that are priced at £29.95. Movie Star Planet had chosen to go against the conventional payment plan and their subscriptions were instead made up of virtual currency and a ‘VIP’ status that the brand had estimated to last the consumer either 1 month, 6 months or 1 year. There were a few benefits that came with the ‘VIP’ status but the focus of the plan was to provide children with increased spending power within the world. This method of monetization doesn’t put an upper limit on the amount the consumer will spend and if the children use all of their virtual currency they are more likely to use “pester power” to persuade their parents to purchase more. Advertisements This table also shows that out of the 8 most popular online virtual worlds analysed, only 2 allow advertising for other companies on their website. The lack of advertising reflects an attempt to make the websites safer for children to browse without parents fearing they are going to come across inappropriate content and/or harmful threats. Downloadable applications Every world had a mobile application available for purchase or free download; with the exception of Fight My Monster that was currently in the development stages of creating theirs. This highlights the demand that is being met for application gaming suitable for younger children. Unfortunately this does mean increased competition for the Zooglies brand. However, the USP of having augmented reality will differentiate the application from competitors. Facebook/Twitter All online virtual worlds have recognised the importance of having social networking pages. However, they aren’t all using these platforms to their advantage and many pages are neglected, there simply to show a presence. Although parents aren’t necessarily using Facebook and Twitter to communicate with brands yet, this way of receiving feedback is becoming increasingly more popular as companies begin to invest in dedicated real-time response teams. During the completion of the table of competitors I noticed a lot of the Facebook comments weren’t as literate as you’d expect from a 13 year old. For example Harvey Edwards commented “moshis awsome” (Edwards 2013, online). Through common knowledge and research I found that despite the fact that the minimum age restriction on Facebook is 13 years, Mintel’s research shows that almost half of 7-12-year-olds are ignoring this rule and using the site (Mintel 2012, online). Because of the age restrictions reports are failing to recognise and research into the presence of under 13’s on social networking sites. This research highlights the importance of brands having dedicated social networking pages in order to interact with the consumers. Children and parents are disregarding the age restrictions and Zooglies can use this as an advantage over other worlds that aren’t recognising this.
5.3 Risks and issues As is stressed throughout this report there are many risks associated with the internet and social networking sites, mobiles and other interactive services including: • Cyber bullying • Grooming • Potential abuse by online predators • Identity theft • Exposure to inappropriate content including self-harm • Racism • Adult pornography “As a company MicrobrandsOne will ensure by working with the right partners and organisations all games, content and data available to the children will be safe. By adhering to the rules followed by companies such as the BBC, MicrobrandsOne will ensure this and all safety information will be available for parents on the online world so the safety aspect is clear to them. The digital partners MicrobrandsOne have chosen do a lot of work for the BBC and work to strict safety standards which will be implemented across the Zooglies games and world.” – Paul Ellis, 2012 For more information on risks and issues see Appendices 2.0
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5.4 Brand case studies Although strengths have been highlighted in the table of competitors, here are some examples of accomplishments that gave exceptional results. Moshi Monsters The table below shows that Moshi gained 70% of its subscribers through viral/organic channels. Examples of organic channels include word of mouth and consumer recommendations. This costs the brand nothing but relies heavily on consumers advocating the brand to their peers.
Fig.13 This shows that the more opportunities the children to engage with the brand, the better. As Zooglies is looking to launch the world alongside its augmented reality app and clothing line, the multiplatform strategy will help boost initial brand awareness and achieve similar organic successes as Moshi has seen. The ability to invite friends to play and interact with the brand aid the growth through organic channels. For example rewarding players for inviting their friends and enabling them to send gifts to non-players encourages the receiver to join in order to reciprocate the gesture.
Club Penguin
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Fig.14 The screenshot below shows the partnership between Club Penguin and Miniclip, a reputable and well known gaming site. It is through this partnership that the brand attracted the attention of Disney in 2007, only 2 years after its launch, and gained much of its success. In 2006 when Club Penguin launched on Miniclip it quickly became ranked as it’s no’1 game. By introducing the game to consumers for free on a reputable site they gained valuable awareness and have quickly become one of the most popular online virtual worlds. Skylanders The linchpin of all sales points for Skylanders is interactivity. Children are able to use their action figures as traditional toys, portable anywhere to play with inside, outside, at home or at a friend’s, and it isn’t until they are placed on the ‘Portal of Power’ that they become digitally active.
Fig.15
Every child owns their own portal and because the saved personal scores and information is transferred directly to their figures rather than the console, they can use their data on any portal with their friends without having to worry about losing a memory card or unplugging everything to take it with them. As well as this social element each figure purchased also unlocks new levels and areas of the console game. This strategy ensures parents are continually buying new products in order for their child to progress further and improve their game play. However, where some virtual worlds have succeeded, others have failed. For example: Habbo Hotel In 2012 Channel 4 News journalist Rachel Seifert posed as an 11 year old girl playing on the popular online virtual world and found that she was frequently exposed to chat of a “sexual, perverse, violent, pornographic” nature (Channel 4 2012, online).
Fig.16 As a result of the porn scandal the company lost three of their major investors including venture capital firm Balderton, and two other investors. When the story was aired Sulake Corporation, the owners of the site, imposed a “mute” on all chat functions after Seifert stated that “Within two minutes I was being asked individually ‘do you have a webcam?’, ‘can we chat on (instant messenger service) MSN, on Skype?’ I was also, within a couple of minutes, asked to strip, fully naked, and asked what would I do on a webcam.” (Channel 4 2012, online).
Lego Universe
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Fig.17
While the game had been free-to-play for a while, apparently not enough players were interested in paying to keep the MMO operational so it was shutdown on the 31st of January 2012. They had a very tough time convincing people to adopt another monthly fee on top of whatever game subscriptions they were already paying and as a result had to shutdown less than a year after launch.
Moshi Monsters Case study:
MOSHI MONSTER is RIPPING ME OFF This site MOSHI MONSTERS takes your money even when you request cancellation. I am being charged twice every month, I have continued to send emails via their stupid contact form, and via their email. No One is LISTENING. They continue to take my money TWICE every month, not just once but twice. They do not supply good links to find out how to contact them, that would be deliberate! They do not make it easy, even their cancellation link does not work. You have to contact them, but they dont respond to any emails. I will NEVER recommend Moshi Monsters to anyone. I would be VERY careful if I were you. Just wait till you have to cancel..... This review from commonsensemedia.org of Moshi Monsters stresses the necessity of effective communication between a brand and their consumers. This customer is feeling ignored and as a result has stressed her concerns on a forum rather than having her problem dealt with and resolved. Although Moshi remains a strong competitor in the market, as consumers continue to demand deeper and more meaningful connections with brands it will not be acceptable to ignore criticisms or even compliments as every individual craves to be recognised.
5.5 Channels of monetization In order to monetize an online virtual world, a level of free basic content is usually available for children to explore using a simple signing up process. From this they can then activate their account to unlock more features by linking an email address, and if needs be acquiring parental permission. After these steps have been completed there is then more than one way to entice consumers to begin paying for premium content. The majority of worlds opt for a monthly subscription pricing method where they charge users a fixed monthly fee and provide them with enhanced features. These premium items take the form of access to special areas, bundles of virtual goods, additional features and the like (KZERO 2011, online). This form of monetization gives parents peace of mind as there are no expected charges, and the monthly payment or direct debit is hassle free. Another method is by using microtransactions (MTX) at a lower price point than the typical monthly subscription. It has been proven that they can convert three times as many users as subscription-only worlds and have a monthly average revenue per person (ARPU) that is typically 20% higher (KZERO 2011, online). Users who are most likely to be monetized are most likely already being monetized elsewhere, i.e. a competitor virtual world. As a new virtual world, Zooglies has to shift the user’s attention away from the consumers existing world and move them to their world. The propensity for parents to purchase multiple monthly subscriptions is virtually zero (KZERO 2011, online), due to the issue of switching costs and an unwillingness to be paying for two at the same time. To begin with microtransactions would allow Zooglies to attract new consumers without requiring them to make a commitment, and then the subscription would most likely follow once a relationship with the brand has been established. Summary As well as using the table of competitors I conducted a survey with 146 parents of children aged 4-12 years old and 32% of respondents stated that their child plays on Moshi Monsters on a regular basis. Moshi Monsters appears to be the main focal competitor for Zooglies with Club Penguin and Bin Weevils also strong within the market but struggling to compete with Moshi’s following; with only 8.9% stating that their child played on these sites. In order to compete with such a strong market leader, Zooglies need to be innovative and partner with reputable companies in terms of safety and game play to boost the initial following from launch. Advertisements represent untrustworthy, external content within an online virtual world to parents. If Zooglies wishes to allow brands to promote materials through the company then it is suggested they use other platforms such as the clothing range or app to do so. If not, then parents need to be ensured their children aren’t going to be redirected to an unfamiliar internet page or threat. Although all but one world had an app, none were as comprehensive as the Zooglies’ augmented reality app. This will differentiate the brand from competition and allow children to interact with them on multiple platforms. Out of the 146 replies, 26 different virtual worlds were mentioned by parents. This shows a serious lack of loyalty with many children playing multiple worlds but this also highlights how much variety there is in the market, with each world catering for a different niche. 8% of parents said their child played on online virtual worlds, but weren’t able to name specific sites. This confirms that many children do not have favourites and are not involving their parents in their game playing. By encouraging the parents to be involved they will be more likely to trust the brand, more likely to pay for additional features and this will increase brand recognition. In summary while there are many online virtual worlds in the existing market, none are as technologically able as Zooglies and there is an opportunity for them to launch successfully into this thriving market.
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Fig.18
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CHAPTER FIVE: TECHNOLOGY AND THE APPLICATION MARKET
6.1 How will Zooglies be supported across different platforms?
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When launching Zooglies across multiple platforms there is the option to use HTML5 web technology, where one website is viewable across all platforms, or creating an app for each device type. With the HTML5 technology a website would need to be online in order for it to function whereas the app doesn’t and is therefore usable on the move or in the car for example. Although this would make the app the more accessible option and easier to control and change, it comes at a cost and has to be adapted differently for iOS, Android, various tablets etc. Tablets Tablet traffic to e-commerce sites grew by 348% from 2011 to 2012, overtaking Smartphone traffic for the first time (Meyer 2013, online). As more people are investing in these devices companies using HTML5 web technology need to prioritise making their sites tablet-friendly by exhibiting “tappiness”. “Tappiness” encompasses smart use of space, text that is easy to read, logical interaction clues and large touch targets that allow visitors to navigate with confidence (Meyer 2013, online). Here is an example of how Apple’s e-commerce site successfully translates to tablet view: They demonstrate a good use of white space, ensuring the pages themselves don’t reach beyond the bottom of the screen and the font and buttons are also larger with more padding to ensure ease of use when finger clicking. When Zooglies is developing the layout of the online virtual world it needs to consider that consumers aren’t just using PC’s and laptops to access the internet anymore. The rising increase in the popularity of tablets and Smartphones mean sites needs to be adaptable to screen size and usage requirements.
Fig.19
6.2 The Application Market SWOT With the rising increase in the popularity of tablets and Smartphones also comes a rise in the number of apps available to download. Strengths • The Smartphone category is expected to continue to perform strongly, achieving a 5% volume CAGR over the forecast period (GMID 2012, online). The consistent uptake of the devices across all ages, incomes and regions will naturally increase the penetration and impact of m-commerce (Mintel 2012, online). • Increased popularity in Smartphone ownership, app downloads and overall popularity that reflects the ease of downloading and use. • The growing availability and awareness of m-commerce among UK consumers represents a driving factor over the forecast period (GMID 2012, online). With apps becoming increasingly popular, safety is improving and developers are starting to address problems wary consumers have to get them onboard. • 8% of consumers prefer to visit a company website through their device browser; 19% would rather use an app if one is available (Mintel 2012, online). If enough companies embrace m-commerce this number could rise and see apps become a standardised consumer experience.
Weaknesses • Parents are reluctant to offer younger children access to Smartphones or tablets for fear of them encountering unsuitable content (GMID 2012, online). • App developers aren’t telling parents what kind of data is being collected and who has access to it and are making little progress when it comes to protecting children’s privacy. • Consumers are wary of being monetized through this platform so companies mostly rely on enticing people through freemium revenue models. Although this can be a successful way of profiting from apps, it isn’t a source of reliable income as consumers are making lower, one-off payments rather than being charged one premium fee. • The 60% rise in use of social applications between 2011 and 2012 indicates a potential sea change in the way that Smartphone owners use their devices (Mintel 2012, online). Although for the app market this could be seen as an opportunity, as Zooglies is producing a gaming app this shift in usage is a weakness.
Opportunities • Increased access to 3G, 4G and Wi-Fi services. • Companies will be competing to win share as the UK sees increasing 3G connectivity across the country and growing access to broadband. There is likely to be more promotional offers and network bundles as a result (GMID 2012, online). As consumers save money on these costs their disposable income should increase. • As parents and older siblings purchase upgrades it is likely they will be giving their older devices to the younger children that will want to purchase more gaming apps for their new device. • There is a growing demand for products with a similar positioning to Smartphones or tablets that are suitable for pre-school children and offer greater protection (GMID 2012, online). • Because of the rise in popularity, more companies from a variety of sectors are now moving into the applications market. Although this will create an increase in competitors, it is also an opportunity for brands from complimentary sectors to merge and target a larger range of consumers together.
For full SWOT see Appendices 3.0
Threats • Facebook is expected to pose growing competition with the launch of the Facebook App Centre. • Android users are two and a half times more likely to encounter malware today than 6 months ago and three out of ten Android owners are likely to encounter a web-based threat on their device each year (Lookout 2011, online). • The increased threat of viruses on Smartphones, and apps in particular will increase costs in the future in terms of ensuring the technology used is protected from threats and precautions are made to ensure they remain so. • There is a lack of pre-release regulation on the Android market. • The increase in the popularity of freemium games is one of the major contributing factors to the drop in paid game downloads predicted in 2012 (Mintel 2012, online).
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6.3 Case studies Angry Birds •
6.5million sales from the app stores (Ellis 2012, email).
•
11million free lite downloads (Ellis, 2012, email).
•
200,000 sales of its $4.99 iPad app (Ellis, 2012, email).
•
25+m views of YouTube videos for the in game trailer (RovioMobile 2009, online)
Fig.20 Paper Toss
Fig.21
•
Backflip studios game passed 24 million downloads in August 2010 (Ellis 2012, email).
•
In March 2010, the developer said it made 2.5 million in revenues in 9 and a half months. 1 million of which was from advertising (Ellis 2012, email).
Temple Run •
iPhone (and now Android) smash hit Temple Run, puts you in the never-tiring running shoes of an Indiana Jones-style explorer. It has passed the 20 million download mark, meaning it’s sold more copies than any game on the PS3 or Xbox 360 (Bunker 2012, online).
•
Temple Run is a free to play app but makes its money from in app purchases through the virtual store.
•
Although the couple who built the app have not commented on how much they have made, in March 2012 the New York Times stated; “Ms. Luckyanova declined to say how much money Temple Run had earned, but on Sunday afternoon it was No. 14 in Apple’s top grossing chart, a list of the apps that are making the most money in the company’s App Store.” (Ellis 2012, email).
Doodle Jump •
Passed 5m iPhone download sales in June 2010 (Ellis 2012, email).
•
$0.99 price means it generated $3.46m of revenue for the two man development team (Ellis 2012, email).
Fig.22
6.4 Distribution channels
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Just under half of all consumers who download games onto their devices do so via the Apple App Store, making it the most used application store out of those surveyed by Mintel. The majority of app developers continue to launch games that are compatible with iOS in advance of rival platforms, as Apple customers seem to be more inclined to purchase casual games and apps (Mintel 2012, online). The migration of Nokia away from the Symbian OS and towards Smartphones running Microsoft’s Windows Phone 7 will continue through 2012 and 2013 (Mintel 2012, online). As a result the Symbian market share will likely decrease, with a small corresponding increase in Windows Phone Marketplace downloads. Although companies have eroded Apple’s market dominance they still remain the primary destination for consumer purchases. It is important for Zooglies to decide whether they would like to restrict their app to iOS or Android only, if so for how long, or if not whether they have the budget and time to create software for both. Application store use, overall and by device, January 2012 Base: 851 internet users aged 16+ who have downloaded games onto Smartphones, tablets or portable media players Any use Smartphone Tablet computer % % % The Apple ‘App Store’ for iOS 49 39 44 devices The ‘Android Market’ for 41 38 31 Android devices The BlackBerry ‘App World’ 19 17 14 for BlackBerry devices The ‘Ovi Store for Nokia Sym12 9 11 bian devices’ The ‘WindowsPhone Market8 5 9 place’ for Windows Phone devices Other application store 10 7 10
Fig.23 Portable media player % 53 11 10 7 6
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Summary The Application market is still robust and emerging as more people adopt Smartphone and tablet devices. It is expected to perform strongly due to the ease of downloading and growing availability and awareness of m-commerce. So far consumers preferentially use an app to visit a company website through their device browser and this could become the standardised consumer experience of the future. Although developers are working to provide shopping experiences that are safe, many parents in particular are fearful of malware, viruses and their children encountering unsuitable content. There is also a lack of information provided on data collection and pre-release regulation on games causing problems that deepens these fears and companies need to work harder to minimise any risks for consumers.
When Facebook opened its app centre in 2012 it posed a strong competitor for the iTunes store as the current market leader. As a result Facebook saw a high rise in the number of people playing games on the site and are predicted to continue to invest in the market. Despite various threats, as an emerging market there are numerous opportunities for Zooglies to grasp. Increased 3G connectivity is likely to have a positive impact on the number of transactions via Smartphone and tablet devices. As well as this it is likely to drive competition in the market and spur an increase in promotional offers and network bundles that will save consumers money that they can then spend on apps. Although competition is on the rise, complimentary sectors could potentially merge to target larger ranges of consumers such as the new segment created by the demand for products suitable for pre-school children with proprietary apps.
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Fig.24
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CHAPTER SIX: THE UK CHILDREN’S CLOTHING MARKET
Although the designs for the Zooglies final range have already been completed and the focus of this report is on the online virtual world and app, I explored the UK children’s clothing market to identify my own recommendations for the brand. 7.1 SWOT Strengths • The childrenswear market is reasonably robust, as children will always need new items (Keynote, 2011). Parents would rather spend money on their children than themselves and this keeps the market strong.
Weaknesses • The market for baby and toddler clothing is on the decline as more parents opt to recycle old garments.
• Grocery retailers maintained strong growth, aiming to outstrip high street retailers in sales of childrenswear (GMID, 2012).
• Falling high street footfall and recessionary concerns have created a massive shift in channel distribution to grocery retailers.
• Supermarket retailers are also developing their e-commerce strategies by launching improvements such as speedy click-n’collect services and free mail for returns. This encourages consumers to buy more as it eliminates costs and waiting times for delivery and returns to be processed.
• 68% of adults say they decide which retailers their children are going to shop in. Therefore it is essential for young fashion retailers to gain the trust of parents, with their clothing offering, quality and competitive price points (Mintel, 2012).
• Major companies launched new initiatives to address the increased sexualisation of childrenswear in 2011 (GMID, 2012). This increases consumer confidence and should increase spending as parents see that clothing companies are working to protect their children. • More efforts from companies such as Asda’s ‘100 day guarantee’ help to sell quality at affordable prices to its customers. • Those living in households with no children also make gift purchases (Keynote, 2011).
• 11 million adults wait for sales before buying childrenswear (GMID, 2012).
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Opportunities • Consumers are becoming increasingly interactive online and communicating with brands through real time response systems. 23% of 2,000 adults had made contact with or shared thoughts about clothing brands or designers on Facebook, while 7% had done so on Twitter, 6% on online forums (such as Mumsnet), and 5% on blogs (Mintel 2012). • There are opportunities for brands to form connections with supermarkets to help expand creative royalties. • The sale of childrenswear via internet retailing has increased from 4.2% in 2006 to 7.8% in 2011 (GMID, 2012), and is still rising. • Children are very influential when it comes to the final purchase no matter how much buying power the parent’s control.
For full SWOT see Appendices 4.0
ASDA Tesco Primark M&S Matalan NEXT Sainsbury’s H&M Debenhams New Look Bhs
Threats • Market consolidation could become a threat with grocery retailers aiming to take control of the childrenswear market. • Soaring cotton prices from 2010 pushed the category into positive inflation in the autumn of that year (Mintel, 2012). • Issues regarding child labour and poor working conditions for employees in overseas locations can create a lot of bad publicity for retailers (Keynote, 2011). Changes in law are also rising costs of manufacturing abroad as consumers become more aware of how their garments are made and demand fairer treatment for workers.
High quality
• There has been some media interest in children’s clothing being too sexual, which has created a lot of pressure on retailers to conform to strict rules (Keynote, 2011).
High price
Low price
Fig.25
Low quality
7.2 Competition in the childrenswear clothing market See remaining perceptual maps in Appendices 4.0 Perceptual map analysis These maps show how the supermarket chains opt to provide low quality garments, that aren’t particularly on trend but instead focus on basic and generic trends, for example ‘floral’ in the summertime. As the price point for garments increases they become more fashion focussed but never seem to 100% reflect the catwalk. This is most probably due to the different activities partaken by children compared to adults, for example playing on the school field or at a playground, and as an extreme there may also be possible fears of over sexualising childrenswear. Childrenswear brands seem to be slowly embracing e and m-commerce, but many are failing to grasp the importance of an online presence. Primark is still only retailing via traditional bricks and mortar stores whereas the likes of ASDA and Tesco have started ‘Click and Collect’ services as well as introducing apps for consumers to locate stores and products. Overall the maps reveal that supermarkets are going from strength to strength whereas the majority of retailers are being left behind as they fail to meet consumer needs and desires. For analysis of distribution channels see Appendices 4.0 Summary The UK children’s clothing market is reasonably robust as children always need new items and parents would rather spend money on their children than themselves. Grocery retailers are attracting a large share of the market with convenience and ultra low prices. As the sale of childrenswear via internet retailing has increased from 4.2% in 2006 to 7.8% in 2011 (GMID, 2012), supermarkets are responding to this trend by making improvements to their e and m-commerce strategies. The most common developments are the introduction of apps, click and collect services and free mail returns. However this is also a weakness in the market as it has resulted in a mass shift in channel distribution to the grocery retailers and online. As a result further threats include market consolidation but as an online brand, Zooglies is in an ideal position to launch into e-commerce and there is an opportunity to form a connection with these supermarkets. Up and coming brands could be more attractive for the grocery retailers as their demands will no doubt be lower than larger companies such as Disney, and Zooglies in particular have a USP in the technological element of the clothing and multi-platform strategy that is in keeping with the supermarkets approach to supplying demand for every requirement. Although the market can be described as almost recession proof, many adults are waiting for sales before purchasing childrenswear. Parents are increasingly looking for replacement purchases rather than new garments. However, as consumers look to focus on one garment a Zooglies item can be marketed as an investment across the multiplatform brand to differentiate it from its competitors. Additionally, in order for Zooglies to be seen as aspirational to the targeted age range, consumer celebrities such as Miley Cyrus and Justin Bieber would be most appealing but at an overly high price point for an up and coming brand. As a UK brand it may be preferable to use a child star from one of the many British children’s programmes on the BBC such as Raven. Overall, similarly to the general clothing market consumer experience is key to attracting consumers. By gaining the parents trust, enticing the children and with the addition of a digital element to their clothing Zooglies is distinguishable from strong competition.
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CHAPTER SEVEN: CONCLUSION AND RECOMMENDATIONS
8.0 Through a variety of strategic and innovative methods of primary and secondary research I was able to investigate the challenges and opportunities the Zooglies brand will face when launching in July 2013. The five major challenges the brand will tackle are as follows: • Child safety and gaining the parents trust • The outdated freemium business model • Competition from Moshi Monsters • Supporting Zooglies across different platforms • Loyalty The five major opportunities the brand could benefit from are as follows: • The number of 5-10 year olds playing on online virtual worlds has increased from 77 to 355 million • Improving quality of online content; 3G, 4G, broadband and accessibility • Organic and viral marketing • Partnerships with supermarkets • The emerging app market Firstly, the issue of child safety was highlighted throughout the report as it will be key for Zooglies to gain the parents trust to ensure the children will be allowed permission to interact with the brand online and via the app. It will most likely be the devices owned by the parents that children are playing on, and because of this the risk of malware and viruses needs to be considered as well as ensuring no child comes across inappropriate content. After Habbo Hotel was found to have many flaws in their system it is extremely important not only to avoid any similar problems but to communicate with the parents and reassure them their child is safe with Zooglies. It is also vital to educate the children and parents, for example through the use of online safety contracts and a “live” presence on Facebook/Twitter that will allow real-time responses from staff. Secondly, although the majority of online virtual worlds have chosen to monetize through the use of monthly subscriptions, Zooglies may benefit from beginning with microtransactions as the players that are most likely to be monetized, are most likely already being monetized elsewhere. Because of this it will be much more difficult to attract them with a subscription rather than allowing them to pay smaller amounts for premium in-world/in-app products. In order to compete with the strong competition from Moshi Monsters and others in the market, taking a “STOGIC” (logical but stupid) approach to the outdated freemium business model by going against the norm will differentiate Zooglies from its competitors and stand out to consumers. In addition to this Zooglies should exploit the benefits of viral marketing where possible, utilising the popularity of YouTube both with a brand channel and linking from the online virtual world. In order to compete with Moshi Monsters I suggest the launch of a mini TV series on YouTube that includes
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the Zooglies characters going about their exciting daily adventures. These could be personalised to include players from the world as a way of involving the children as well as asking them for storyline suggestions; what do they think their favourite characters get up to? The videos should also be viewable on all handheld devices so that children can interact with the brand through the app and online; being able to switch between platforms will decrease the likelihood of children getting bored and moving on to another world. The support from each platform will develop the brand awareness at a faster rate than usual as consumers are more likely to be exposed to Zooglies merchandise and branding. Although the clothing is not the focus of this marketing report, it will support the growth of the augmented reality app and online virtual world and I would suggest distributing online as it is brand appropriate, in supermarkets as they are the current market leaders for the sales of childrenswear and still lacking branded clothing, and department stores as they are another means of targeting both the parents and children at the same time. To conclude when launching in the UK Zooglies will come across challenges in the online virtual world and app market but also numerous opportunities and with the support from the clothing range I believe there is room for the online brand to differentiate from strong competitors successfully.
Total word count: 6584
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Fig.26
9.0 LIST OF REFERENCES
CHAPTER TWO: CONSUMER ANALYSIS (GMID, Consumer Lifestyles in the UK 2012: online) (GMID, Mobile Phones in the United Kingdom 2012: online) (acorn 2012: online) (Sutherland 2012: online) (Office for National Statistics 2012: online) (Brown 2012: observation) CHAPTER THREE: THE UK GAMING MARKET (Keynote, Toys & Games Market Update 2012: online) (UK Children Go Online 2006: online) (Ellis 2012: online) (Keynote, Childrenswear Market Report 2011: online) (Keynote, Toys & Games Market Report 2012: online) (KZERO 2011: online) (Keynote, Toys & Games Market Report 2012: online) (TREND MICRO 2008: online) (Keynote, Toys & Games Market Report 2012: online) (KZERO 2011: online) CHAPTER FOUR: COMPETITION IN THE ONLINE VIRTUAL WORLD MARKET (Edwards 2013: online) (Mintel, Childrenswear 2012: online) (Ellis 2012: email) (Channel 4 2012: online)
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(Channel 4 2012: online) (KZERO 2011: online) (KZERO 2011: online) (KZERO 2011: online) CHAPTER FIVE: TECHNOLOGY AND THE APPLICATION MARKET (Meyer 2013: online) (Meyer 2013: online) (GMID, Mobile Phones in the United Kingdom 2012: online) (Mintel, Smartphone Purchasing Habits 2012: online) (GMID, Mobile Phones in the United Kingdom 2012: online) (Mintel, Mobile Phone Apps 2012: online) (GMID, Mobile Phones in the United Kingdom 2012: online) (GMID, Mobile Phones in the United Kingdom 2012: online) (GMID, Toys & Games in the United Kingdom 2012: online) (GMID, Mobile Phones in the United Kingdom 2012: online) (Mintel, Mobile Phone Apps 2012: online) (Lookout 2011: online) (Mintel, Mobile Phone Apps 2012: online) (Ellis 2012: email) (Ellis 2012: email) (Ellis 2012: email) (RovioMobile 2009: online) (Ellis 2012: email)
(Ellis 2012: email) (Bunker 2012: online) (Ellis 2012: email) (Mintel, Mobile Application Gaming 2012: online) (Mintel, Smartphone Purchasing Habits 2012: online) (Mintel, Smartphone Purchasing Habits 2012: online) CHAPTER SIX: THE UK CHILDRENSWEAR MARKET (Keynote, Childrenswear Market Report 2011: online) (GMID, Childrenswear in the United Kingdom 2012: online) (GMID, Childrenswear in the United Kingdom 2012: online) (Keynote, Childrenswear Market Report 2011: online) (Mintel, Mobile Phone Apps 2012: online) (Childrenswear in the United Kingdom, GMID, 2012) (GMID, Childrenswear in the United Kingdom 2012: online) (Department Store Retailing, Mintel, 2012) (Mintel, Childrenswear 2012: online) (Keynote, Childrenswear Market Report 2011: online) (Keynote, Childrenswear Market Report 2011: online) (GMID, Childrenswear in the United Kingdom 2012: online)
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10.0 LIST OF ILLUSTRATIONS
Fig.1 Zooglies marketing strategy. Available at: Paul Ellis [email]
Fig.24 App Store Turns 1. Available at: google.com
Fig.2 My Fight my Monster screenshot. Available at: Own Image
Fig.25 Perceptual map. Available at: Own Image
Fig.3 The Great Bin Tour Magazine. Available at: Own Image
Fig.26 Zooglies marketing strategy. Available at: Paul Ellis [email]
Fig.4 Katie’s Roblox screenshot. Available at: Own Image Fig.5 Club Penguin Magazine. Available at: Own Image Fig.6 Mother and daughter out to lunch. Available at: Own Image Fig.7 Ella Brown’s handbag. Available at: Own Image Fig.8 Example of daily routine. Available at: Own Image Fig.9 Katie’s favourite fair ride. Available at: Own Image Fig.10 “I like” moodboard. Available at: Own Image Fig.11 Ethan Jones. Available at: google.com Fig.12 Mindmap. Available at: Own Image Fig.13 Moshi Monsters graph. Available at: KZERO.com Fig.14 Club Penguin/Miniclip screenshot. Available at: clubpenguin.miniclip.com Fig.15 Screenshot. Available at: Andrew Bowring [email] Fig.16 Habbo Hotel. Available at: channel4.com Fig.17 Lego Universe screenshot. Available at: Own Image Fig.18 Monetization. Available at: google.com Fig.19 Apple’s e-commerce site. Available at: mashable.com Fig.20 Angry Birds. Available at: youtube.com Fig.21 Paper Toss. Available at: google.com Fig.22 Temple Run. Available at: google.com Fig.23 Table showing application store use. Available at: Mintel
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11.0 BIBLIOGRAPHY
INTERVIEWS AND FOCUS GROUPS Brown, E & Milton, R. (2012). Conversation with Ella Brown and Rachel Milton, Milton residence, Corby, 9th November. Brown, K. (2012). Observation of Katie Brown, Brown residence, Corby, 10th November. Brown, K. (2013). Observation of Katie Brown, 28 Goosegate, Nottingham, 13th January. BOOKS Armstrong, G; Kotler, P. (2008). Principles of Marketing. 12e. New Jersey: Pearson Education Inc. Boellstorf, T; Nardi, B; Pearce, C; Taylor, T. (2012). Ethnography and Virtual Worlds: A Handbook of Method. Oxfordshire: Princeton University Press. Cotton, B; Fields, T. (2012). Social game design: monetization methods and mechanics. Waltham: Morgan Kaufmann Publishers. Klug, C; Lebowitz, J. (2011). Interactive Storytelling for Video Games. Oxford: Focal Press. Sparrow, A,P. (2010). The law of virtual worlds and Internet social networks. Surrey: Gower Publishing Limited. MAGAZINES Anon. (2012). The Great Bin Tour. Kent: Panini UK Ltd. Anstruther, J. (2012). Moshi Monsters Magazine. Kent: SkyJack Publishing. O’Malley, T. (2012). Club Penguin Magazine. Kent: Panini UK Ltd. EJOURNALS GMID. (2012). Consumer Lifestyles in the United Kingdom [online]. Available at GMID. Accessed 29th October 2012. GMID. (2012). Toys and Games in the United Kingdom [online]. Available at GMID. Accessed 28th November 2012. GMID. (2012). Mobile Phones in the United Kingdom [online]. Available at GMID. Accessed 14th December 2012. GMID. (2012). Video Games in the United Kingdom [online]. Available at GMID. Accessed 14th December 2012. GMID. (2012). In-Car Entertainment in the United Kingdom [online]. Available at GMID. Accessed 16th December 2012. GMID. (2012). Childrenswear in the United Kingdom [online]. Available at GMID. Accessed 6th January 2013. Keynote. (2011). Childrenswear Market Report 2011 [online]. Available at Keynote. Accessed 6th January 2013. Key Note. (2012). Toys & Games Market Report 2012 [online]. Available at Key Note. Accessed 19th October 2012.
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Key Note. (2012). Social Media Marketing Assessment 2012 [online]. Available at Key Note. Accessed 19th October 2012. Mintel. (2012). Mobile Application Gaming [online]. Available at Mintel. Accessed 17th December 2012. Mintel. (2012). Smartphone Purchasing Habits [online]. Available at Mintel. Accessed 6th January 2013. Mintel. (2012). Childrenswear [online]. Available at Mintel. Accessed 6th January 2013. Mintel. (2012). Department Store Retailing [online]. Available at Mintel. Accessed 6th January 2013. Mintel. (2012) Mobile Phone Apps [online]. Available at Mintel. Accessed 7th January 2013. WEBSITES BBC. (2012). Habbo investor pulls out after ‘explicit’ sex allegations. Available at: http://www.bbc.co.uk/news/technology-18415763. Accessed 11th January 2013. BBC. (2013). CBBC Stay Safe. Available at: http://www.bbc.co.uk/cbbc/topics/stay-safe. Accessed 4th January 2013. British Toy & Hobby Association. (2007). Toy Technology. Available at: http://www.btha.co.uk/dynamic/documents/education/toy-technology-resource-for-GCSE.pdf. Accessed 16th December 2012. Bunker, A. (2012). Temple Run: More copies sold than CoD: Modern Warefar 3 on consoles. Available at: http://www.electricpig.co.uk/2012/01/17/temple-run-more-copiessold-than-cod-modern-warfare-3-on-consoles/. Accessed 13th January 2013. CACI Limited. (2010). acorn the smarter consumer classification: User Guide. Available at: http://www.businessballs.com/freespecialresources/acorn-demographics-2010. pdf. Accessed 15th December 2012. CEOP. (2013). Principles of Relationship Management. Available at: http://www.ceop.police.uk/Partnerships/Types-of-partner/. Accessed 4th January 2013. Channel 4. (2012). Should you let your child play in Habbo Hotel? Available at: http://www.channel4.com/news/should-you-let-your-child-play-in-habbo-hotel. Accessed 8th January 2013. Clark, T and Wintour, P. (2012). Coalition government will not survive until 2015 election, voters predict. Available at: http://www.guardian.co.uk/politics/2012/aug/12/coalition-government-brink-collapse-voters. Accessed 16th December 2012. Disney. (2012). Club Penguin Homepage. Available at: http://www.clubpenguin.com/. Accessed 15th October 2012. Edwards, H. (2013). Comment on a Moshi Monsters Facebook post. Available at: http://www.facebook.com/#!/MoshiMonsters?fref=ts. Accessed 10th January 2013. Ellis, P. (2012). Research info. Available at: http://www.uberflip.com/. Accessed 5th November 2012. Firth, Emma. (2010). Thirteen years of Labour in power. Available at: http://www.telegraph.co.uk/news/election-2010/7545349/Thirteen-years-of-Labour-in-power.html. Accessed 16th December 2012. KZERO. (2011). Lessons in Launching Online Virtual Worlds. Lesson #3@ We’re Going With a Monthly Subscription. Available at: http://www.kzero.co.uk/blog/lessons-launch-
ing-virtual-worlds-mistake-3-monthly-subscription/. Accessed 28th November 2012. Larrymagid. (2012). Sign a Family Contract for Online Safety and Smart Use of Technology. Available at: http://www.safekids.com/2012/12/09/sign-afamily-contract-for-online-safety/. Accessed 4th January 2013. Laughlin, A. (2012). Habbo Hotel to launch “The Great Unmute” after porn scandal. Available at: http://www.digitalspy.co.uk/media/news/a387642/ habbo-hotel-to-launch-the-great-unmute-after-porn-scandal.html. Accessed 8th January 2013. LEGO. (2012). LEGO Universe Homepage. Available at: http://universe.lego.com/en-gb/default.aspx. Accessed 10th January 2013. Livingstone, S. (2006). UK CHILDREN GO ONLINE. Available at: http://www.lse.ac.uk/collections/children-go-online/. Accessed 20th November 2012. Lookout. (2011). 2011 Mobile Threat Report. Available at: https://www.lookout.com/resources/reports/mobile-threat-report. Accessed 17th December 2012. Mind Candy Ltd. (2012). Moshi Monsters Homepage. Available at: http://www.moshimonsters.com/. Accessed 15th October 2012. Maestri, A. (2012). Social media landscape: alcune interessanti staistiche [INFOGRAFICA]. Available at: http://www.ninjamarketing.it/2012/06/04/social-media-landscape-alcune-interessanti-statistiche-infografica/. Accessed 29th October 2012. Meyer, J. (2013). 6 Easy Ways to Make Your Website Tablet-Friendly. Available at: http://mashable.com/2013/01/03/tablet-friendly-website/. Accessed 3rd January 2013. Mind Candy Ltd. (2012). Moshi TV. Available at: http://www.moshitv.com/browse. Accessed 29th October 2012. NSPCC. (2011). How can we help? Available at: http://www.nspcc.org.uk/Inform/trainingandconsultancy/consultancy/consultancy_wda47838.html. Accessed 4th January 2013. Office for National Statistics. (2012). Internet Access – Households and Individuals, 2012. Available at: http://www.ons.gov.uk/ons/rel/rdit2/internet-access---households-and-individuals/2012/stb-internet-access--households-and-individuals--2012.html. Accessed 16th December 2012. Olivetti, J. (2011). LEGO Universe shutting down January 2012. Available at: http://massively.joystiq.com/2011/11/04/lego-universe-shutting-down-january-2012/. Accessed 10th January 2013. Pandaboom. (2012). Review of Moshi Monsters website. Available at: http://www.commonsensemedia.org/website-reviews/moshimonsters/user-reviews/adult?page=1. Accessed 10th January 2013. PCI Security Standards Council. (2013). How to be Compliant. Available at: https://www.pcisecuritystandards.org/merchants/how_to_be_compliant. php. Accessed 3rd January 2013. The Next Web. (2012). What the iPad 3’s rumoured release means for iPad 2 prices. Available at: http://thenextweb.com/apple/2012/02/27/what-theipad-3s-rumored-release-means-for-ipad-2-prices/. Accessed 12th November 2012. revark. (2012). 87 reviews of Movie Star Planet. Available at: http://www.revark.com/summary/Moviestarplanet/M1743048179790. Accessed 18th December 2012.
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Rowlinson, J. (2012). The Internet and Children: Access and Usage. Available at: http://www.safekids.co.uk/ChildrenInternetAccessUsage.html. Accessed 20th November 2012. Smith, A. (2012). Mobile Apps Under Scrutiny: Is Your Kid’s Privacy At Risk? Available at: http://mashable.com/2012/12/13/kids-apps-under-scrutiny/. Accessed 3rd January 2013. Sutherland, R. (2012). Rory Sutherland on rethinking imagination and creativity. Available at: http://www.economistconferences.co.uk/video/big-rethink-consumers/6362. Accessed 18th October 2012. Sweney, M. (2009). Marks and Spencer trumpets ethical initiative in ethical campaign. Available at: http://www.guardian.co.uk/media/2009/jun/12/marks-spencer-advertising-ethical-plan. Accessed 29th December 2012. TREND MICRO. (2008). Threat Management: Virtual Worlds. Available at: http://www.trendmicro.com/cloud-content/us/pdfs/security-intelligence/white-papers/wp_virtual_worlds_white_paper_10_31_08.pdf. Accessed 28th November 2012. TV Cream. (2009). Naughty...but Nice. Available at: http://www.tvcream.co.uk/?p=14636. Accessed 29th December 2012. Warneford, D. (2011). If bolting wings onto a car wont make it fly don’t expect that tacking a Facebook Connect button into a game will make it viral. Available at: http:// www.dubitplatform.com/blog/2011/01/22/if-bolting-wings-onto-a-car-wont-make-it-fly-dont-expect-tha-html/. Accessed 10th January 2013. Windows. (2012). Set up Parental Controls. Available at: http://windows.microsoft.com/en-GB/windows-vista/Set-up-Parental-Controls. Accessed 14th December 2012. OTHER ONLINE MATERIALS Disney Club Penguin. (2012). Club Penguin Official YouTube Channel, YouTube. Available at: http://www.youtube.com/user/Clubpenguin. Accessed 29th October 2012. Moshi Monsters. (2012). Moshi Monsters Official YouTube Channel, YouTube. Available at: http://www.youtube.com/user/moshimonsters?feature=pvchclk. Accessed 29th October 2012. RovioMobile. (2009). Angry Birds In-game Trailer, YouTube. Available at: http://www.youtube.com/watch?v=bNNzRyd1xz0. Accessed 15th January 2013. PERSONAL COMMUNICATIONS Bowring, A. (andrew.bowring@gmail.com). (2013). First draft. 13th January. Email to: Soffia Bowring (soffz@hotmail.co.uk). Ellis, P. (paul.ellis@microzine.co.uk). (2012). Info. 16th November. Email to: Soffia Bowring (soffia.bowring2010@my.ntu.ac.uk). Flanagan, R. (rflanagan89@gmail.com). (2013). Statement. 4th January. Email to: Soffia Bowring (soffiabowring@hotmail.com). Hurley, A. (a.hurley@ntlworld.com). (2013). Statement. 2nd January. Email to: Soffia Bowring (soffiabowring@hotmail.com).
Glossary App – abbreviation for application ARPU – abbreviation for average revenue per person Freemium – a type of revenue model that involves providing a product or service (typically a digital offering such as software, media, games or web services) free of charge, but charging a premium for advanced features, functionality, or virtual goods Online virtual world - an interactive simulated environment accessed by multiple users through an online interface Microtransactions – a type of revenue model where users can purchase virtual goods via micropayments Monetization/Monetize - establishing a currency as the legal tender of an online virtual world or application MTX - abbreviation for microtransactions
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