PATEO - Automobile Artificial Intelligence (AI) in China, a Digital Marketing Case Study
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A Digital Marketing Case Study of IT corporation PATEO (based in Shanghai), exploring the market for smart automobiles and the emergence of AI in the automobile industry.
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PATEO - Automobile Artificial Intelligence (AI) in China, a Digital Marketing Case Study
- 1. A Marketing Case Study
- 2. Agenda Situation analysis PATEO intro and strategy Market climate Industry inauguration challenges Analysis from a marketing perspective Becoming a Market Oriented Firm Educating the Market Strategy Challenges Recommendations
- 3. Agenda Situation analysis PATEO intro and strategy Market climate Industry inauguration challenges Analysis from a marketing perspective Becoming a Market Oriented Firm Educating the Market Strategy Challenges Recommendations
- 4. Current Situation 1. Market climate 2. Consumer and businesses needs guidance “We’re moving from being just a hardware provider to being a hardware, software, and experiences provider,” - Don Butler, head of Connected Vehicle and Services for Ford Motor Company
- 5. Evolution of Technology Mechanic Era Electric Era Information Era AI Era
- 6. What have we used to control our devices? Then Keyboard and mouse Now Screen and touch Conversation
- 7. Intelligent conversation needs… Hear Clearly Background noise control, testing in various environments, hot- words etc. Understand Deeply The most important step for instigating intelligent conversation, requiring vast amounts of data and advanced technology Meet Needs Provide accurate and thorough information and service
- 8. What is Pateo? 1. Insights into the New Industry 2. Pateo’s standing
- 9. Automobiles PC and laptops Smartphones and tablets Industry Trend Observations
- 10. The past 10 years have seen U.S. consumer desktop PC sales fall by nearly 50% Automobiles PC and laptops Smartphones and tablets Once leading the way, Dell, Hewlett-Packard and Microsoft now face a new world order led by Apple, Google, Samsung and even Amazon.
- 11. Automobiles PC and laptops Smartphones and tablets The Currently there are more mobile phones in the world than people The idea of being ‘unplugged’ for longer than it takes to buy a coffee is anathema to the worlds population Connectivity is now seen as an essential need, akin to water
- 12. Automobiles PC and laptops Smartphones and tablets Pateo = The Next Step The average American spends 280 hours per year behind the wheel There are over 279 million cars on the road in China, and over 253 million in the US in 2015
- 13. Making the dream a reality Customers Lifestyle related services, internet, new experiences, connectivity, safety, user- friendliness etc. Governments Autonomy, safety and new energy development
- 14. Pateo’s Mission
- 15. Agenda Situation analysis PATEO intro and strategy Market climate Industry inauguration challenges Analysis from a marketing perspective Becoming a Market Oriented Firm Educating the Market Strategy Challenges Recommendations
- 17. 5 Main Challenges Automotive companies can’t benefit from telematics users User experience is no where near the standard of smart phones Safety whilst driving is a major concern for drivers and the government, and therefore for Pateo People don’t yet perceive it as a lifestyle necessity
- 18. Challenge 1 People don’t yet perceive it as a lifestyle necessity “Why do I need to wait until I get into my car to book a flight?” Current customers “I can’t bear to be completely unconnected while I’m in my car!” Ideal customers
- 19. Challenge 2 User experience is no where near the standard of current smart phones, therefore automotive companies can’t benefit from its telematics users
- 20. Challenge 2 User experience is no where near the standard of current smart phones, therefore automotive companies can’t benefit from its telematics users
- 21. Challenge 2 User experience is no where near the standard of current smart phones, therefore automotive companies can’t benefit from its telematics users Benefits Costs = Creating superior value for end users and B2B customers
- 22. Challenge 2 User experience is no where near the standard of current smart phones, therefore automotive companies can’t benefit from its telematics users Benefits Product • Features • Performance • Reliability • Packaging • Design Support services • Training • Maintenance • Information • Management • Client support Relationship management • Competency • Courtesy • Reliability • Responsiven ess • Communicati on Image • Company reputation • Brand reputation • Atmosphere Etc.
- 23. Challenge 2 User experience is no where near the standard of current smart phones, therefore automotive companies can’t benefit from its telematics users Costs Search costs • Product availability • Relationship management • Competence • Responsiven ess • Credibility Acquisition costs • Price level • Timing • Fulfilment process • Incentives Financing costs • Processing and administrative • Flexibility • Security Maintenance • Complexity • Reliability • Availability • Repair costs • Relationship management • Systems management Etc.
- 24. Challenge 2 AI era has only just begun De = Energized differentiation R = Relevance E = Esteem K = Knowledge
- 25. Challenge 2 AI era has only just begun Energized Differentiation Relevance> Esteem Knowledge> Brand has captured attention and now has the power to build relevance Brand is better liked than known, desire to find out more
- 26. Challenge 3 Safety whilst driving is a major concern for all parties The answer lies in AI
- 27. Challenge 3 Safety whilst driving is a major concern for all parties Credibility And more… Reviews Reliability Reputation Trustworthiness Sound familiar?
- 28. Challenges Benefits Costs = Creating superior value for end users and B2B customers = How What Why User engagement B2B customer touchpoints
- 29. Agenda Situation analysis PATEO intro and strategy Market climate Industry inauguration challenges Analysis from a marketing perspective Becoming a Market Oriented Firm Educating the Market Strategy Challenges Recommendations
- 30. Overall strategy Becoming a Market Oriented firm Educating the market
- 31. Market Orientation 1. What is market orientation 2. Strategy
- 32. What is Market Orientation? Discover what customers/clients need and cater products to them Distribution of market intelligence throughout company Responsiveness to market intelligence
- 33. Discover Distribute Respond Current and future end user needs Current and future B2B customer needs Competition Collaborators Clarifying overall objectives Communication of marketing intelligence Cross department Honoring promises Respect Collaboration Business culture values Overarching Strategy
- 34. B2B Wechat and Networking 1. Wechat Statistics 2. Methods 3. Creating great content 4. Key Takeaways
- 35. Wechat Statistics Wechat is the most popular social network in China, it dominates the country’s communicationsWechat combines the best of Facebook, Twitter and WhatsApp into one mobile app Can scan and pay at stores, order movie tickets, follow their favorite brands and accounts etc. Users can share messages with friends, post updates, photos and videos for their fans
- 36. Wechat Statistics Increasingly, touchpoints between companies and B2B customers are extending beyond person to person User engagement becomes more and more difficult Wechat is best as a loyalty part of the customer journey and not great for brand awareness However, there are methods to maximize the platform that would give the company the most exposure
- 38. Methods • Influential businessmen • Leveraging their personal brand equity • People who have a lot of followers • Can spread the message KOLs Key opinion leaders • Can be shared and passed on • Informative, engaging, moving • Make them smile, laugh, feel happy, sad etc. • Video, pic, infographic, text, stories • Great content will be shared if its targeted at the right people Great Content Layout and Visual Elements • Mobile platform only • Optimize content accordingly • Videos under 3 minutes long • Text that doesn’t take more than 10 minutes to read • Font is readable. Preview Everything! Anything you post on your Wechat is equivalent to anything that leaves your office, and therefore contributes to your company’s reputation.
- 39. Methods • Influential businessmen • Leveraging their personal brand equity • People who have a lot of followers • Can spread the message KOLs Key opinion leaders • Can be shared and passed on • Informative, engaging, moving • Make them smile, laugh, feel happy, sad etc. • Video, pic, infographic, text, stories • Great content will be shared if its targeted at the right people Great Content Layout and Visual Elements • Mobile platform only • Optimize content accordingly • Videos under 3 minutes long • Text that doesn’t take more than 10 minutes to read • Font is readable. Preview Everything! Anything you post on your Wechat is equivalent to anything that leaves your office, and therefore contributes to your company’s reputation. Key Takeaway 1 post of high quality original content per week is better than many posts of mediocre content. Especially for B2B inaugural businesses such as Pateo
- 40. Product is King Content is King Key Takeaway 1 post of high quality original content per week is better than many posts of mediocre content. Especially for B2B inaugural businesses such as Pateo
- 41. Creating Great Content Service Accounts Subscription Accounts Account is displayed on the main page alongside other chats Advanced features such as interactive menus 4 posts per month, may include multiple messages in one post No spam Straight to their personal feed More interactive Pros Cons Less frequent content has be to very good to stand out 1 message per day Housed under the subscription tab, users must actively check for content Pros Can connect with followers everyday Cons Too much noise, crowded Content hungry Takes users an extra step to get to the content
- 42. Creating Great Content SEO is more important than ever Baidu PATEO
- 43. Creating Great Content Service Accounts Subscription Accounts Account is displayed on the main page alongside other chats Advanced features such as interactive menus 4 posts per month, may include multiple messages in one post No spam Straight to their personal feed Very high quality Pros Cons Less frequent content has be to very good to stand out 1 message per day Housed under the subscription tab, users must actively check for content Pros Can connect with followers everyday Cons Too much noise, crowded Content hungry Takes users an extra step to get to the content
- 44. Consistent and clear company and brand message Helps clients see your progress and relate to your vision Creates precedent for future business and developmental conduct Simple, but Powerful Increased user engagement and B2B touchpoints Entrepreneur + capital = products + customers = business = Educate end users, paving the way to the future - Steve Tobak
- 45. Thank You
Notas do Editor
- Today's aim is to analyze Pateo’s overall marketing strategy and identify relevant challenges then subsequently provide recommendations
- Beginning with Stategy
- What is our current situation
- Conversation, the most natural form of human interaction and communication. A new era of voice control, deep comprehension and discourse. The future of artificial intelligence, create intelligence household items
- Intelligent conversation needs 3 things before it can be fully realized and sophisticated. 1. Hear Clearly 2. Understand deeply 3. Meet Needs
- What is Pateo? Pateo is the future Continual upgrades to processing systems Development in new areas, action to innovation
- What are the key devices that have facilitated end to end communication throughout recent history? What are the hubs we devote our time to in order to communicate? The three main hubs are smartphones and tablets, PC and laptops, and automobiles. How have they changed over time? How have these observations affected Pateo? Here are some relevant facts and insightful trend information
- The first commercial computer UNIVAC I was released in 1951, and since then human connectivity has changed in more ways than we can fathom. Yet...
- Smart phones began with the revolutionary iPhone in 2007, introducing to the world the wonders of the information era and touch screen user interface.
- Our path to an intelligent, conversation dictated AI future means catering to both sides of the same coin. Consumers, which include both B2B customers and end users, as well as governments who play an important role in the development of technology.
- Seamlessly integrating all of the above into a smart, in car telematics system that will offer lifestyle related services. Including in car music, payment, shopping (all made possible with in car internet) Creating new experiences on new platforms Keeping drivers connected safely through easy to use interface and Intelligent conversation
- With limited existing research and capacity to conduct market research, my conclusions have been drawn from market observations and observed trends in consumer’s reviews of the product (word of mouth only)
- Currently, people who can whole heartedly call themselves a car telematics user are very minimal. These are the people who would buy a specific car model based on the fact that it has a a intelligent device installed Know and frequently use all the services in the in car device Why is this the case? How come the market is not responsive to the emergence of AI or excited by the prospect of a future with intelligent, talking cars? Here are a summary of common reasons, which we will subsequently go more in depth into.
- If customer think that they are able to do all of this on the phone, the mentality is “why do I have to wait until I get into my car before I book my flight?” The specific challenge exists in that the Mentality of people are very engrained, they have not experienced artificially intelligent conversation and its unique benefits. A man who existed before airplanes were invented couldn’t have possibly dreamed of the benefits of time, convenience, trade and economic growth until the airplane was trialed and put into use. Similarly, would have thought of a touch screen phone, where you can just.. Scroll? Equally, who would have thought of a car which you can just talk to? The technology is here, but not yet sophisticated. Which brings us to our next point.
- Why would automotive companies (our B2B customers/clients) spend a large amount of their resources on a product that currently has a very small segment? This is the size of our segment at the moment. Why? Current systems have slow response time, awkward UX designs compared to current designs in our other smart devices such as the iPhone. Resulting in a segment that is small, narrow-minded and limited to what they can currently see.
- This is what we want our segment to look like. How do we make this a reality?
- By increasing the benefits and reducing the costs to both B2B customers and end users. Creating superior value for both parties
- Benefits can be simply described as all tangible and intangible benefits B2B customers and end users can gain from the product, this includes....
- Similarly with costs, are all tangible and intangible things B2B customers and end users can lose at the expense of the product. This includes ....
- Of course all businesses are striving to create value, differentiate themselves. Value needs to be created for not only B2B customers for PATEO, but core value must be created for end users at the same time. However our end users (our market segment) don’t yet understand the difference between a smart phone and a smart telematics car system. Why and how do we change this? We can answer this question through a deeper analysis into how the product (and the brand that represents it) is perceived through the eyes of our end users. Using the BAV (brand asset evaluator). Pateo is in the region of New (as the AI industry is just coming about) or perhaps curiosity. 1. Energised differentiation (DE) Is the basis for consumer choice, the essence of the brand and the source of margin and pricing power. It is an attraction to something different, something intriguing, a look, an attitude, a behavior - something that makes a person want to know more. 2. Relevance Drives usage and is the measure of what is personally appropriate to consumers 3. Esteem Is the consumer respect, regard, reputation and is the fulfilment of the brand’s promise. How well a brand fulfils its implied or overtly stated consumer promise. 4. Knowledge Is the culmination of brand building efforts and is the outcome of brand development, through a consumer’s intimate relationship with the brand With this, a brand must be careful to go only the correct path, as there are two possible paths. New – Curiosity – Leadership/mass market Or New – Fatigued
- From the previous slides we have come to the conclusion that end users don’t yet perceive in car smart devices as a necessity, therefore not particularly relevant to their lives. However, if the brand has the innovation, intrigue and differentiating qualities which AI innately possesses when carried out sophisticatedly, Pateo as a brand has a powerful opportunity to capture the attention of customers and subsequently, build relevance. At the moment, esteem and knowledge of Pateo is comparatively low with esteem being higher than knowledge, the next logical step if the brand is better liked than known is to sate user’s desire of wanting to know more.
- The Chinese government in cooperation with many universities such as the esteemed Beijing Institute of Technology have been tirelessly researching in the area of automobile safety and self-driving cars. Pateo is doing the same. Drivers have conversations in cars. With fellow passengers as well as on calls. Pateo is designing a seamlessly integrated and intelligent system that would be easy to use, with intelligent conversation at heart, so that safety is requirement and shouldn’t be a further concern once the technology is sophisticated. With and without auto-driving cars being commercialized, the answer for safe in car systems evidently lies in AI. Similarly, Pateo's motto is "Product is King"
- Then where lies the problem? To answer this question we must ask ourselves, how can a company guarantee safety? How can we change the perception of the people who will eventually purchase these cars from the automotive companies?
- By creating superior value for BOTH B2B customers and end users The end desired result is the WHY. What do we want? We want to increase user engagement = educating our consumers. And we want increase B2B customer touchpoints = more business, more revenue etc.
- With recommendations, we will be expanding on the point of HOW in order to achieve WHY.
- The challenge of being a part of the inauguration of an industry is not only creating value for the segment, but also creating a segment. This calls for the need for two sides of action in our solution. Market orientation and creation of value for customers and thus clients Educating the market Keeping in mind the market includes B2B customers and end users
- Treating this as an overview of company and brand goals and helping us understand the perspective that needs to be adopted to become a market oriented firm. This is the overarching strategy, and after this we will go in depth in talking about key tactics to make this realize this strategy. Gathering market intelligence This stage is the R&D process that involves getting to know your customers and clients. What type of people they are, what they want, how much do you know about your competition, and making the effort to understand them. 2) Distribution and coordination of the market intelligence across all business functions This stage is essentially spreading the message across the firm. This process will clarify overall objectives of one or more departments and communicate a holistic objective, making all employees aware of the goal and company orientation, a stage that should not be undermined. 3) Response to the market intelligence For a holistic, cooperative response across multiple departments within an IT/AI firm is difficult but essential. Requires a strong basis in the firm’s cultural values, including honoring promises, respect, collaboration. This culture is important as it affects the business's B2B customers, with the ability to honor promises and collaborate as an important factor in the company and brand's reputation. Now that we've discussed the overarching, umbrella strategy, it's time to talk about the tactics that will step by step guide the business closer to success.
- The main focus in today's slides will be B2B networking through the giant platform of Wechat. We'll we breaking down the tactics within Wechat and show you how to reap all the benefits by optimizing your use of the platform.
- This is an infographic released by Tencent Pinguin research 2016 report. The largest active group in the Wechat user base is the corporate sector comprising of 40.4% of the total user base. All of your B2B customers, the educated professionals with mobile phones, are using this platform to communicate with each other.
- With touchpoints moving beyond the realm of person to person, firms are frantically looking for ways to keep customers interested, therefore their turning to online methods. With the current noise in the system, grabbing people’s attention online is hard. Wechat is best as a loyalty part of the customer journey and not great for brand awareness, however there are methods
- Sourced from Adsmith
- According to research by Adsmith, four key factors must be satisfied to optimize the presence of your business on Wechat KOLs Great Content Layout and Visual Elements Preview everything!
- According to research by Adsmith, four key factors must be satisfied to optimize the presence of your business on Wechat KOLs Great Content Layout and Visual Elements Preview everything! So what is our key takeaway?
- The Pateo business motto has always been product is king. This is the core value creating secret in the industry of AI and tech. Then it follows that if Product is King, in marketing showcasing our product is the most important.
- How do we create and showcase great content? Businesses can set up two different types of official accounts in Wechat. The process verifies your brand as an official account through Tencent.
- If it’s important to have presence, then its equally important to be discoverable and recognisable. Now that Wechat operates as a search engine for content, Search engine optimisation is more important than ever
- If product is king and content is king, then high quality, less frequent content displayed on the main page is the best option.
- Externally, a consistent and clear company and brand message, to help clients understand who you are, where you’re going and what you stand for. Helps clients see your progress and improvement, relate to your vision and affirm your efforts. Eg. Apple raises awareness of the launches of new innovation like IOS 7, IOS 11 etc. Defined progression increments. Internally, creates precedent for future actions. Related future programs can refer to the successes and failures of preceding related programs and therefore accumulate essential experience and learning. Creating a new segment is difficult, but powerful and rewarding. Educating users, taking a page out of the B2C workbook, can reap immeasurable benefits to the inauguration of the field of artificial intelligence. Ultimately, we sell to the end user.