This paper presents a comprehensive marketing strategy for Facebook, covering the period from 2013 to 2016. It begins by analyzing the company's current situation, including a revision of its mission statement, a brief historical overview, and an in-depth examination of its revenue cycle and target audience. Using Porter’s Five Forces model, the paper evaluates Facebook’s competitive landscape. The second part outlines the way forward, detailing marketing plan objectives, market research methodologies, and a thorough breakdown of the marketing mix, including product, pricing, place, and promotional strategies both online and offline. Additionally, it provides a timeline, contingency plan, and budget allocation. This strategy aims to maximize Facebook's global reach, enhance user engagement, and drive sustained revenue growth, positioning it as the dominant player in the social networking industry.
Table of Contents
PART 1 | CURRENT SITUATION
1.1 MODIFICATION TO THE MISSION STATEMENT
1.2 A BRIEF HISTORICAL OVERVIEW
1.3 THE REVENUE CYCLE AND FACEBOOK’S TARGET AUDIENCE
1.4 APPLICATION OF PORTER’S 5 FORCES MODEL
PART 2 | THE WAY FORWARD
2.1 MARKETING PLAN OBJECTIVES
2.2 MARKET RESEARCH
2.2.1 Primary Data
2.2.2 Secondary Data
2.3 MARKETING MIX
2.3.1 Product & Pricing
2.3.2 Place
2.3.3 Offline and Online Promotions
2.4 TIMELINE & CONTINGENCY PLAN
2.5 BUDGET
Project Objectives and Key Topics
This marketing strategy aims to define a comprehensive growth plan for Facebook from 2013 to 2016, focusing on diversifying revenue streams, improving user satisfaction, and expanding market reach through new hardware and software implementations.
- Strategic analysis of Facebook's market position using BCG and Porter’s Five Forces models.
- Development of new revenue-generating products including Cloud services, specialized streaming, and hardware.
- Methodological framework for market research using primary and secondary data analysis.
- Projections for branding, user retention, and financial budgeting for the 2013-2016 period.
Extract from the Book
1.2 A brief Historical Overview
To give an overview of Facebook’s life cycle, the Boston Consultancy Group (BCG) matrix is applied to analyze the evolution of the social network’s past, present and future-intended positioning. The matrix is categorized under cash cow, stars, dogs and question marks, illustrated in the image below.
Primarily Facebook took off as a social network for college students. At first it was positioned in the question mark segment, with low market share and high market growth opportunities. Consecutively Facebook made its way into the Stars segment, followed almost immediately by a declining stage into the dogs section as the growth rate fed by the college community was very limited and other networks such as Friendster, MySpace and YouTube (to name a few) were more predominant. Nonetheless Facebook took a more business orientation, and quickly reinvented the social network targeting a vast amount of users (supplied by a larger audience) and providing online advertising space. This rejuvenated the service, pushing Facebook back into the question mark segment, through to a very successful star product and down to its present cash cow positioning.
Furthermore in the BCG matrix illustration we have placed the other products that Facebook launched. Facebook Mobile, found in the question mark, is still in its growing stage while App developers are currently placed in the star segment as a boom in apps has recently been undergone. On the other hand the online advertising and analytics are following the social network, as they start to descend into the cash cow given the diminishing market growth rate.
Due to the decreasing market growth for the social network and its products, we propose to create a more personalized experience for the user, providing not just a social network, but a hub that the users could use up to a point that it would be their internet homepage. This will be tackled by introducing new features, by entering new markets and retaining current users by rejuvenation.
Summary of Chapters
PART 1 | CURRENT SITUATION: Provides a foundational analysis of Facebook’s mission, its historical lifestyle via the BCG matrix, revenue structures, and competitive environment through Porter's Five Forces.
PART 2 | THE WAY FORWARD: Outlines strategic marketing objectives, research methodologies, a detailed look at the marketing mix, and a long-term timeline with contingency financial planning.
Keywords
Facebook, Marketing Strategy, Social Network, Revenue Cycle, BCG Matrix, Porter's Five Forces, Market Research, Advertising, User Retention, Product Development, Facebook Cloud, Privacy, Digital Marketing, Budget Planning, Business Strategy
Frequently Asked Questions
What is the primary focus of this marketing document?
This report presents a strategic marketing plan for Facebook covering the years 2013-2016, specifically aimed at leveraging the platform's massive user base to increase revenue through new diverse services.
What are the core thematic areas discussed in the work?
The work covers strategic positioning, revenue generation models (ads, apps, cloud services), market penetration tactics, competitive analysis, and financial planning for future product launches.
What is the central objective of the proposed marketing strategy?
The primary objective is to consolidate Facebook as a central digital hub for users and to reach a revenue target of $7 billion by introducing new software features and hardware devices.
Which analytical tools were utilized in the methodology?
The author uses the Boston Consultancy Group (BCG) matrix for life cycle analysis and Porter’s Five Forces model to assess the market power of suppliers, customers, and competitive rivalry.
What does the main body of the document cover?
The main body examines current business operations, investigates potential new revenue sources like cloud storage and entertainment services, and provides a timeline and budget for these projected implementations.
Which keywords best characterize the strategic focus?
Key terms include Facebook, Marketing Strategy, Revenue Cycle, BCG Matrix, Porter's Five Forces, Market Research, and Product Development.
How does the author propose dealing with privacy concerns?
The document suggests implementing a 'privacy strength' bar to increase transparency and educating users on digital rights to maintain trust and prevent user attrition.
What is the role of the 'contingency plan' mentioned?
It provides a fallback strategy in case new product launches (like Facebook Cloud or Mobile) fail to meet revenue expectations, allowing for a redirection of promotional efforts to stabilize income.
How does the document address the challenge of hardware development?
It acknowledges past failures (e.g., the Facebook Phone launch) and suggests collaborative joint ventures, for instance with companies like Lenovo for tablet development, to ensure success.
- Quote paper
- Luca Bugelli (Author), 2013, Facebook Marketing Strategy (2013-2016). Leveraging the World’s Leading Social Network for Growth and Revenue, Munich, GRIN Verlag, https://www.grin.com/document/1514825
