2. Introduction
Made up of 6 members from School of Business and 1 member
from School of Foreign Language , GoGoGoogle Team is focusing
on the operation , especially marketing of Google in China.
From the commencement of
our class to now, after long
term thinking and several
heated debates , this
summer saw the birth of this
integrated marketing
communication plan for
Google China.
In the process , the spirit of
cooperation , truth-seeking
and innovation is really
unforgettable.
Even though being short of practical experiences and being poor
in English , we are still happy that we have finished it eventually
---- in less than 8 days.
If we are given more time , we believe it will be much better.
Now , we are so honorable that you are going to read it.
Looking forward to your instruction.
2
4. Company Overview
Brief description
Google was incorporated in California in
September 1998 and reincorporated in
Delaware in August 2003.It is a global
technology leader focused on improving
the ways people connect with information.
Mission
• We will do our best to provide the most relevant and useful
search results possible, independent of financial incentives. Our
search results will be objective, and we do not accept payment
for search result ranking or inclusion.
• We will do our best to provide the most relevant and useful
advertising. Advertisements should not be an annoying
interruption. If any element on a search result page is
influenced by payment to us, we will make it clear to our users.
• We will never stop working to improve our user experience, our
search technology, and other important areas of information
organization.
Finance
Revenues & Net income(in thousand us dollar)
30,000,000
25,000,000
20,000,000
15,000,000 Revenues
10,000,000 Net Income
5,000,000
0
2005 2006 2007 2008 2009
4
5. Products & Services
Google’s Product Line
category Products & Severices
Desktop Chrome、Earth、Desktop、Talk、Pack、Picasa、
products SketchUp、Toolbar、Gears
Mobile Blogger Mobile 、Buzz 、Calendar 、Gmail 、News 、
products iGoogle 、Reader 、Mobile search 、Google Maps
Navigation
Web Dashboard 、Ad Planner 、Ad Manager 、AdSense 、
products AdWords 、DoubleClick 、Grants 、
Communicat 3D Warehouse 、Apps 、Blogger 、Buzz 、Docs 、
ion and FeedBurner 、Profiles 、Gmail、iGoogle 、Notebook 、
publishing Sites、Voice、Wave、YouTube、
Mapping City Tours、Maps、Map Maker、Mars 、Sky Map、
Search Alerts、Base、Blog search、Checkout 、Dictionary 、
Finance、Image Search 、Music、Patent Search、
Product Search、Scholar、Video 、Web Search 、
Hardware Google Mini 、Nexus One 、Google Search Appliance
products
Google has a rich and wide products line to satisfy
various kinds of needs , but most of them are not
known or have never been brought into China.
5
6. Company Overview
Google in China
•Google announced the launch of simplified and traditional Chinese.
2000
•Google released the latest version of the Google Toolbar , Chinese included.
2004 •Google Introduced Simplified Chinese version of Google News.
•Google Inc. announced the official launch of Chinese version of Google desktop search.
2005 •Google launched a Chinese version of the personalized homepage (Personalized Homepage).
•Google Launches Chinese www.Google.cn
2006 •“谷歌" - Google's global Chinese name officially launched in Beijing
•Google and the world's largest mobile operators - China Mobile announced the cooperation in mobile
2007 search service, which marked the localization of Google mobile search start.
•Google launched the Chinese version of transit search.
2008 •Google China launched Chinese version of the Google.cn iGoogle.
•Google Greater China president Kai-fu Lee formally announced his resignation.
2009 •CCTV blamed the international version of Google.com search for pornography is easy.
•Google accused China of hacking and announced that it stopped "filter review" on Google search
2010 services, and shifted the search service from the Mainland to Hong Kong.
Kai-fu Lee
6
7. Company Overview
Culture Shock
Google was not, in fact, a pioneer in China. Yahoo was the first major
American Internet company to enter the market, introducing a Chinese-
language version of its site and opening up an office in Beijing in 1999.
Yahoo executives quickly learned how difficult China was to
penetrate — and how baffling the country's cultural barriers can be for
Americans. The differences are listed as follow:
•Chinese businesspeople rarely rely on e-mail or voicemail, because
they find the idea of leaving messages to be socially awkward. They
prefer live exchanges, which mean they gravitate to mobile phones and
short text messages instead.
•Chinese Internet users prefer the online discussion board very much —
much more than in the United Stated. This is a place where long,
rollicking arguments and flame wars spill on for thousands of
comments. However, sites like Google seem very foreign to the
Chinese.
•Rampant piracy is still common in China. In most parts of the West,
after the Napster wars, movie and music piracy is increasingly
understood as an illicit activity; it thrives, certainly, but there is now a
stigma against taking too much intellectual content without paying for it.
(Hence the success of iTunes.) In China, downloading illegal copies of
music, movies and software is as normal and accepted as checking the
weather online. Baidu's executives discovered early on that many
young users were using the Internet to hunt for pirated MP3's, so the
company developed an easy-to-use interface specifically for this
purpose. However, this service doesn’t exist in Baidu now.
7
8. Industry Analysis(1)
The Internet Industry in China
At the end of 2007, the number of online users in China surpassed the US and has
the highest number of Internet users in the world, and at the end of 2008, the
Internet service market in China had grown to $14 billion (Jiang, 2009). Both of
these factors made multinational Internet companies flocked to the newly
bloomed China Internet service market. This growing trend numbGooglee
available in chart 1 and 2
Chart 1: US vGooglena: Population and Internet User Statistics (2000 to 2008)
Chart 1 shows the growing trend of Internet users in the US and China. In
2007, the number of Internet user in China surpassed the number in the United
States. Source: China Popin , U.S . Census Bureau, Internet World Stats
Chart 2: Internet Industry Revenue in China (2007 to 2008)
•Chart 2 is estimate revenue of Internet Service Providers in China, including
online gaming, online ads, search engine, online shopping, B2B, online travel
reservation, online hiring, and domain name sales; mobile value-added services
are not included. Source: iResearch (2009)
8
9. Industry Analysis(2)
The Search Engine Industry in China
Market Concentration
Whether in the market share of revenues or the visit share, the Chinese search
engine belongs to the high concentration of oligopolistic market.
Product Differentiation Degree
Take Baidu and Google China for example, the two big oligarch’s product
developments trend to be the same, but the differentiations still exist. Therefore
competition is unavoidable.
The Barrier of Advancing and Retreating the Market
Search engine industry is an industry having higher barriers and larger market
entry barriers, but in China there are still no corresponding policy barriers and exit
barriers. The degree of free competition is high, forming a natural monopoly.
the analysis of the market behavior
The Choice of the Revenue model
The revenue model of search engine has a lot of kinds, such as selling search
technology, key words advertising, bidding rankings, fixed rankings, intelligence
search, and Ad sense advertisement, etc . Baidu ‘s most important revenue model
is bidding rankings, which brings nearly 80% of Baidu’s profit. But Google
announced that in its each year’s more than 1 million dollars sales, $15 million is
the profit, and 1/3 comes from the sales of the search technology, and 2/3 from
all kinds of advertisements.
The Sales Channel Development Strategy
Chinese search engine operators’ sales channel development strategies basically
have two kinds, direct and agency way. Because of their revenue model, Baidu
chooses the direct way and Google chooses the agency way.
Market scale of searching in China(million yuan)
JP Morgan
10000 9,438
8000 6,614
6000 4,663
4000 2,851
2000 1,442
584 846
9
0
2004 2005 2006 2007 2008 2009 2010E
10. Industry analysis(3)
Problems
•Credibility needs to be enhanced.
•Self-regulation needs to be strengthened.
•Quantity and quality needs to be improved.
•Evaluation mechanism needs to be established.
•……
Internet users in China(million)
CNNIC
500 440
370
400 298
300 210
200 111 137
80 94
100 34 59
23
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Trends
•Rapid growth: the number of search engine users will maintain a rapid growth.
•Value enhance: search engine promotion will enhance the value of marketing
further.
•Intensity : the future of China's search engine market will be with more intense
competition.
•Diversity : search engines will develop new products to satisfy users’ higher
need.
•Personalization: search engines will create some creative experience with
personalized service.
•Mobile search : mobile search market in China has great potential.
•Regulation strengthening : government will pay more attention to this area.
……
10
11. Competitive Analysis
SWOT-Google China
Strengths Weaknesses
Strong brand value Lack of product integration
Significant infrastructure base Lack of localization and culture shock
Coverage of the search result is
worldwide
Opportunities Threats
Steady growth of internet domain Intense competition
names Economic uncertainties effecting
Growing mobile advertising market Bad relationship with local government
Market Share
Share of each
brand in China
(2009)
From : CNNIC
Competitor-Baidu
Baidu is a Chinese language internet search provider. It
also offers online advertising services through its
subsidiaries. The company operates in China, Japan
and Hong Kong.
Pros:
1. Proactive, focusing on Chinese search services
2. Continuously improving the users’ experience degrees
3. Baidu’s profit mode is more suitable to the Chinese market
Cons:
Lack of significant infrastructure base and technology
11
12. Client Analysis
(In this part, client means advertiser of search engine in China)
Industry Distribution(%)
Others, 8.2
Appliance , 1.8 Automobile, 17
Education, 2.2
Exhibition, 2.7
Communication
s, 4.5
Finance, 4.3
Web
Food&Drink, 4.2 Applications, 16.
9
Clothing, 5
IT, 14.7
Housing, 18.6
Characteristics
Clients prefer the most widely used search
engine provider.
Clients want their ads’ effect to be measurable.
Clients want to get the feedback from the
potential customer.
Clients need more assistant from search engine
provider.
Clients want their ads to be more effective.
Big companies have a clearer awareness of the
importance of search engine marketing.
IT companies spend more money on search
engine marketing.
12
13. User Analysis(1)
(In this part, user means search engine users in China)
Scale
In China(2009) Scale(million) annual growth rate
Internet users
Search engine users 235 34%
Mobile Internet users 155
Mobile search engine users 40.74
Area Distribution
In China(2009) Urban Rural
Share 76.4% 23.4%
Gender Distribution
In China(2009) Male Female
Share 52.4% 47.6%
Age Distribution
In China(2009) <19 20-29 30-39 40-49 50-59 >60
Share 37.1% 31.5% 19.7% 8.3% 2.6% 0.8%
Academic Distribution
In China(2009) Elementary Junior middle High junior college
school school school college
Usage rate 59.0% 60.7% 70.5% 72.8% 87.1%
Frequency Distribution
In China(2009) Heavy users Moderate users Light users
Share 29.5% 50.6% 19.9%
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14. User Analysis(2)
(In this part, user means search engine users in China)
What to search?
others 32.5
local information 0.5
blogs 0.7
foreign languages 1.1
softwares 3.9
shopping 6.2
travellings
websites
6.8
14.3 Rate(%)
videos 13.7
games 16.5
pictures 27.9
documents 31.3
news 33.4
movies 30.3
music 39.5
0 5 10 15 20 25 30 35 40 45
This graph shows what the Chinese search engine users tried to find in 2009,from
CNNIC.
Summary
•Searching is one of the earliest activities people try when they first start using
the internet.
•Search engines loyalty exists within the internet user community.
•Internet users rarely read beyond the 3rd page of search results.
•Men tend to stick more often to a single engine, while women have a few
favorites.
•Younger users search more often and are more confident about their search
abilities.
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15. Objectives
Market Share In Google’s target markets :
China 30% Primary School Students---A long
term strategy
Market Share In College Students---Potential high
College Students 50% value clients
Business People---High value
Market Share In clients
Business People 60% These objectives will be
Market Share In accomplished in 2 year.
Primary School 80%
Strategy
Keys to Success
Effective localization
Compliance with local laws The establishment of a local
Good government relations team
Precise positioning Effective public relations
Innovation Training
User training Innovative marketing
To give agents greater power
Strategy
15
16. Distribution
The Distribution Of Ad Agencies
To expand the share in advertisement market , Google should establish a new Ad
Agency system in China . Google will pay more attention to the fast developing
area to cut down the cost . Obeying to the rules ,local agency will be give more
autonomous rights to increase sales.
Policy for Ad Agency
Area Commission Exclusiveness
Level 1 30% of the sales Only one agency in one city
Level 2 40% of the sales Only one agency in one province
Level 3 50% of the sales Only one agency in one province
Level 4 60% of the sales Only one agency in this area
16
17. New Products For Users
Google book& Google library
In fact Google already has some library partners in the world, such as Columbia
University, Cornel University library, University of Oxford, etc. After entering the
Chinese market, Google can develop closer relationship with libraries in China.
Google will provide access and all the information available in those libraries, by
typing the name of a book needed, users may find a category with detailed
information in the e-library. They will also get access to purchasing those books. If
some books are not protected by copyright, they can download the whole book
freely.
Google map for mobile
Google can offer a map service that users may download the piece of map they
need into their computer or mobile phone for free. Google will also provide
useful information such as marking the restaurant or hotel nearby. Those
merchants with a star are all those who corporate with Google and have
credit, users may choose them safely and easily. Furthermore, clients may get a
discount in those restaurants after showing them the Google map, because they
are Google’s partners.
17
18. New Products For Users
Kids’ Search Engine
We recommend Google to promote a
new search engine, especially for kids
under 12 years old.
As the unhealthy information of sex and
violence is easy to reach on the
Internet, we want to create a healthy
environment for kids.
With a great technical team , Google has
the capability to develop the new
engine, and those information will be
filtered automatically when kids use it.
What’s more, Google can create an account
for each user , and kid’s parents can instruct
them to use the search engine correctly.
Google will also corporate with local schools
to provide a better service for children. As
children often need to look for information
to accomplish their assignment, the engine
will provide more academic information and
knowledge related to their course work.
Link To Kids’
18
19. Promotion For Users
Rewards Program
First of all, using Gmail account to make GOOGLE features unified. Logging-
mail needs to use Gmail account; using Google maps and Google's other
features needs to use the same login account. The content of the Rewards
Program is that if you lands a Gmail account every day, you will have
certain points. Accumulated Points can be redeemed to a certain product
of Google’s sponsor; If your points can reach the top few, it is free for you
to visit Google. In addition, if the landing is just the first 100 (or 200, 300 ...
... 1000 ... ...) of the visitors, there will be additional points presented.
Lucky Guy Program
Google engineers will develop a program to calculate the frequency of
search. The total number of search per month will be written on the
homepage of Google China.
If a Google user is searching at a certain number , like 1 billion or 2
billion , he will be given a gift , on condition that he has logged in with a
Gmail account.
The lucky guy will get the detailed information from his Gmail Box.
In this way , more and more people will use Google to try his luck.
Google’s market share will be expanded easily, and users will also prefer use
Gmail and some other Google tools.
19
20. Advertisement
Samples
How many times
has Google been
used?
Google,
Can you tell me
where the hotel
is?
Google
Reward
Program
The world is
using Google.
20
21. Public Relation
Summer Camp
The event is geared to the public, which helps
to promote the spirit and faith of Google in
order to draw a larger number of audiences.
The executives will show the visitors around
the Beijing office and introducing them how
Google operate. Besides the visit, the event
will include activities such as a meeting with
some of the key employees in the office, a
virtual show of how interesting life can be
with the help of the products of Google, etc.
Campus Recruitment
By conducting the campus
recruitment, the executives will give
the publicity to the brand of
Google, which means they will travel
around mainland China and give
speeches to the potential audiences
– the undergraduates.
Sponsorship
Setting up a sponsorship seeks to
build up the brand image of being
enthusiastic about public welfare and
charity work, which can help Google
earn a good reputation in the long
term.
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22. Public Relation
Scholarship
Through university scholarships
project , Google will enhance its
influence in the universities. On the
one hand , Google can recruit more
talented employees , on the other
hand it will expand the brand
influence in China.
Competition For College Students
Google can hold some competitions in
China every year , such as technology or
creative contest. This will attract a large
number of people’s interest , the media
will also do relevant reports. These
games will be to add new vitality to
Google China.
Cooperation with mass media
With the consideration of the great impact
which Spring Festival Gala Evening has on
public, the event aims at foster a good and
healthy company image rapidly.
Contemporary, the Beijing office will also
work together with Hunan TV, Jiangsu TV and
Dragon TV, which are considered as the top 3
influential local television stations.
22
23. Media Planning
Media objectives
The overall goal of this media plan is , on one hand , to let people be aware of
Google’s brand image and be familiar with the brand of Google .On the other
hand , to let common people know the products(e.g. Gmail , Google
maps, Google earth etc) of Google better. At first, we want to reach the public as
much as possible. Then ,we will concentrate on a few effective medias. And finally
reduce the budget to a certain number and keep it.
Brand Google represents profession ,high-end ,and
image international.
Google has a blanket of products , which are well-
Products designed, helpful, and professional. We should make
them known.
Media Strategy
With our media objectives, we will cultivate a media mix to promote Google
effectively. At first, we will use a mass of medias , traditional or non-traditional.
And evaluate these medias to pick up the ones with high performance price
ratio. Then go on with the high performance price ratio ones. After a quiet long
period of time, chose a small number of medias as the aptotic ones.
When choosing medias, media efficiency and competitive media assessment will
be take into consideration firstly.
We will evaluate the media with CPM (cost per thousand) and TM (CPM in target
market ).
23
24. Media Planning
Media Choice-Traditional medias
A CCTV channel for Chinese People in the whole world.
China National Geographic—A Business School—A
popular magazine among male popular magazine among
White-collar crowd. businessmen.
Bus boards/shelters——
Flashy in big cities.
Media Choice- Nontraditional medias
State-run Network TV with national influence.
A SNS site with great influence among university students.
New Media Mix
New Media
Blog
Email
SMS
Video
Game
24
25. Evaluation
We will make our evaluation based on our goals of the campaign.
The market share
The chief goal of the campaign for Google is to make more people use Google.
And market share represents how many customers are using Google. So if the
market share is bigger, the goal is better achieved. Which means the campaign is
more successful.
After a season of campaign ,we will have a consulting company to make a
research to check whether the number is achieved.
The profit
Another big goal for this campaign is to make Google earning more money. We
can evaluate this with the profit number.
We can set some target number for earning and profit of Google. After a season
of campaign ,we will check the actual number on the accounting book about the
earning and profit of Google. Of course ,we will need the fiancé apartment’s help
with this evaluation. They will set the target number for us and check the
number as well.
The customers’ cognition
Meanwhile, we do the campaign to make people acknowledge Google and
cognize Google as what we want them regard it as. That is customer’s cognition.
We can hire a consulting company to do survey for us about how many people
are getting aware of Google’s product and what image dose Google has in their
minds as a result of our campaign. And we will check whether the number
reaches our target and whether the image is what we want.
Other methods of evaluation
Besides of the methods above. There
should be some other detailed methods to
evaluate the campaign . For example,
The loyalty of customers,
The visit capacity of Google’s products,
The number of complaint for Google’s
products ,
The feedback from the users on internet
and so on.
25
26. Ending
Team Member
Name Major Email
Hua Yu Marketing huayuruc@live.cn
Tan Xin Financial Management tan19900318@hotmail.com
Hu Jingjing Financial Management hdf12301230@126.com
Feng Siyu Management Science disillusion.f@gmail.com
Lian Di Accounting liandi417@126.com
Jiang Yeqi Accounting monica--777@163.com
Peng Hui French pennybehappy@gmail.com
We would like to express our deepest
appreciation for the support from Dr. Wang,
and Summer School of Renmin University .
2010.7.27
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