io hawk marketing strategy
TRANSCRIPT
IO HAWK DIGITAL STRATEGY DIGITAL MARKETING
Vincent Dodero, Marianna Dunbrook, Sage Ratner, Dominique Falcone, Kyle McCarthy, Taylor O’Neil
Introduction The Io Hawk is a personal mobility vehicle that can most accurately be described as part skateboard and part segway. The Io Hawk burst into the marketplace in late 2014. Io Hawk quickly saw competitors trying to imitate their product with cheaper designs, some even selling Io Hawk boards with stickers over their logos (Pierce, 2015). Io Hawk was not the first product of its kind on the market, but they have been, according to consumers, the more reliable of the first wave of brands trying to cash in on this trend. Competitors from China that use cheaper material have had issues with the boards catching fire after the batteries overheated. Even though Io Hawk is one of the more reliable brands of personal mobility vehicles, they have relied exclusively on social media to market their product. With our recommendations, we believe that Io Hawk can really set themselves apart from their competition. Io Hawk’s main competitors are CoolReall, Swagway, Hoverboard360, and PhunkeeDuck. CoolReall is exclusively an online retailer, and sells all of their products through Amazon.com. CoolReall hoverboards sell for $499.99. CoolReall is the only direct competitor that isn’t exclusively in the personal mobility business; they also sell other viral products like selfie sticks, and iPhone accessories among other things. This is common practice for manufacturers that make viral products seemingly overnight to make their way into the consumer landscape. Swagway is another lower-‐priced competitor, pricing their hoverboards at $499.99, as well as offering dented and scratched hoverboards on clearance for $299.99. You can also buy a 1 year limited warranty for $100. Hoverboard360 has three different models you can choose from wide prices ranging from $650 -‐ $1,000. Hoverboard360 price their models according to wheel and body size, with the price increasing as the size increases. Hoverboard360 also sells “hoverkicks” that they market with their hoverboard, which are essentially off-‐brand sneakers with lights. PhunkeeDuck is Io Hawk’s main competitor, positioning itself as a high-‐end personal mobility device. They sell for $1,500 and are almost identical in design to the Io Hawk. All four of the competitors use a different forms of eCommerce: CoolReall, as mentioned before, sells on Amazon; Hoverboard360 uses Shopify; Swagway uses PayPal and ships directly from their US warehouse, and PhunkeeDuck is hosted by GoDaddy, but also uses Amazon for payments. The websites for all of the competitors have the same feel -‐ a big hoverboard pictured with scrolling images above the fold with a “Buy Now!” link, and featured media logos just below the fold. All of Io Hawk’s competitors also rely heavily on social media to market their product by linking to Instagram posts of celebrities on hoverboards. Although, without a company represented in the video or picture, it’s hard to tell exactly which board the celebrity is riding.
Homepage Io Hawk’s homepage provides a poor introduction to the brand and product
offering. A lot of important information is cut off by the fold and there is no permanent call to action. The moving carousel features only one image of the product (See Figure 1) and two large icons, one of Instagram and one of the Today Show. The homepage has an endless scroll and at the very bottom it displays all available products (See Figure 3). For Io Hawk, we recommend a more comprehensive and organized website with a definitive and visible
call to action, and an immediate image of the product to ensure consumers they have visited the correct sight. Additionally, to ease consumer use the search bar and shopping cart will be moved to the upper right corner and social icons will be moved to the left hand corner to replace the “imitation is the greatest form of flattery” quote.
Ecommerce Ecommerce is the motivation for consumers to visit Io Hawk’s website, and it is the
brand’s only opportunity for consumers to purchase the product. Currently, Io Hawk ecommerce capabilities are difficult to navigate—products are hidden at the bottom of the homepage after considerable scrolling and also situated on a cramped tab on the navigation bar. When you do use the navigation bar to access the available products, there is an option to ‘view products’ or ‘view all,’ which is redundant because both bring you to the same page (see Figure 2 and 3). This makes the journey of purchasing for the consumer confusing and potentially causing them to leave the site out of frustration. Additionally, Io Hawk only accepts PayPal for payment, adding another obstacle for consumers who do not use this system. Our recommendation for Io Hawk is to utilize an ecommerce hosting platform to conduct their purchases. We researched both SquareSpace and Shopify, but decided Shopify was a better fit for Io Hawk. Shopify would allow Io Hawk to build a better ecommerce capability into its existing website, and continue to use PayPal (unlike SquareSpace) while offering 70 different payment options allowing for international ecommerce. We recommend Io Hawk to invest in the unlimited option at $179 a month which allows for unlimited number of purchased products, lower credit card rates, zero transaction fees and 24 hour technical support.
Strategies & Recommendations Search Engine Optimization Paid Search:
Upon searching “Io Hawk” on Google’s search network, we found that paid search by one of Io Hawks competitors, “Hoverboard360” used Io Hawk as a keyword to wipe them out as a competitor. (See Figure 4) Organic Search: Below the two paid search advertisements, iohawk.com is listed. Unlike the other two links, iohawk.com gained its position in search organically. (See Figure 5)
Search optimized websites generally make use of Google Adwords and strategically position keywords to target their consumers. Unlike their competitors, iohawk.com is yet to utilize this tool and enlist the help of keywords in order to optimize where they show up in search. Therefore, with Adwords not being used in their marketing tatics, it is likely Io Hawk gained this third position organically from the quality of their links, descriptive page titles, and relevant page topics.
Adwords In searching through the back pages of both iohawk.com and its competitors, we
were able to take note of the keywords used in their organic search strategies. Keywords: Io Hawk Upon looking through Io Hawk metadata, we were able to see they do not make proper use of keywords in their search strategy. The focus of their search strategy is unclear, and it is clear that a keyword campaign would make a huge difference in their rankings (See Figure 6). Swag Way Swagway.com also makes poor use of organic search. Rather than using optimized keywords, they rely on headlines and the quality of their pages to receive a ranking search (See Figure 7). Hover Board HoverBoard360.com is the only competitor website I found that enlisted the use of SEO & SEM. The keywords lack creativity and strategy, but include the name of the brand as well as web pages. If Io Hawk is Hoverboard360's main competitor, and they are showing up high on the organic search results using “Io Hawk” as a search term it doesn’t seem they need to be going further in their keywords. HoverBoard360’s search strategies of using paid search as a search engine-‐marketing tactic to show up when a consumer is searching for a competitor’s brand is also working very well for them (See Figure 8). Cool Reall Cool Reall is a website that brings together a wide range of technology and accessories, including hoverboards. Their keywords on the Google search network are related to cell phones, tablets and their accessories. These keywords get consumers to visit their website, but may be problematic in those searching specifically for hoverboards (See Figure 9). Io Hawk Recommended Keywords: Based on reviewing Io Hawk’s nonexistent SEO strategy, we decided on three keywords to get this process going: “IoHawk” “HoverBoard” “Io Hawk” These are simple yet effective and are a great start for Io Hawk’s keyword list
Email Marketing As part of our strategy, we will implement a weekly email blast to all of our
consumers. According to ExactTarget, “58% of online consumers begin their day with [checking] emails…” (Roberts and Zahay, 173). The first step to developing an email marketing campaign is to gather customer data. This data will be collected when customers purchase the Io Hawk online via our website or at kiosks which will be placed in retail malls. Users will be able to decide on the frequency of emails and their privacy preferences.
We also recommend using email-‐marketing software. One of the best on the market and used by larger companies nationwide is Marketo. This software costs $1,400 per year, which operates various important functions to be successful. These include, automatic triggers, A/B testing, digital behavioral testing, social campaigns, segmentation engines, cross channel analyzers, marketing calendars, and events and webinars (Marketo). This is an affordable, fast solution to creating legal, measurable personal, and effective emails to consumers.
These emails will consist of weekly newsletters, new product announcements, promotional advertisements, and alerts and reminders. For each type of email, there are consistent design elements recommended to attract our consumers to open the email. These include: a preheader, catchy subject line, a call to action, a sense of urgency, to be above the fold, CAN-‐SPAM, integrate a forward to a friend link, and social media icons. Below is an analysis of their current email marketing (see figure 10). Not noted in the figure, is that after subscribing, there Io Hawk sends no sort of thank you page or follow up. This is a key competent for consumer satisfaction, and if Io Hawk chooses to invest in Marketo this will be a required component. Our last recommendation is to make sure all emails are mobile friendly. When making promotions, we will implement a simple landing page with contact information, a call to action, and lead to a thank you page with follow up information.
Influencer Strategies One of the most affordable digital marketing strategies to gain buzz and word of
mouth is through bloggers and social media outlets. With this, our first recommendation is to contact tech bloggers who can review Io Hawk, positively, and share it to their millions of readers. Three great blogs are TechCrunch, with 6.5 million readers a month, Cnet with over 200 million readers a month, and Mashable with 3.2 million readers a month.
Social Media Social media is the fastest growing marketing strategy Io Hawk will utilize to
increase its presence. Currently, on Instagram Io Hawk has a generous following of 170,000. While they have 371 posts, we are looking to improve the content of their postings in order to acquire more followers and retain the ones they already have. Improving content will include promotional pictures and videos of famous artists, celebrities and sponsors riding Io Hawks. We will continuing using the hashtags “IoHawk” “Hawking” and will introduce #HowDoYouHawk. #HowDoYouHawk will be an Instagram campaign to acquire more followers and get users using the hashtags #IoHawk #Hawking and #HowDoYouHawk. The contest will prompt owners or friends of owners of an Io Hawk to post on Instagram a video of them doing a trick on their Io Hawk. Io Hawk will repost the videos and pictures they find to be the best and the winner will receive a customized Io Hawk. Io Hawk’s Twitter has a following of 5,105. Their current content is pretty on target but to increase their following, they could try interacting with more of the celebrities that follow them or interacting more with their followers.
Lastly, as for Io Hawk’s Facebook account, there is a strong following that needs to be utilized however its content needs to be redirected and updated. Currently the content consists of clothing and merchandise giveaways that are unrelated to the product. They look rather “gimmick” like and are distrusting for the brand. Instead, Io Hawk should be posting content relevant to the product such as customer videos, Io Hawk contents, links to Instagram, etc.
Budget
Io Hawk does not currently have an established marketing budget. When speaking to Latief Daniels, an Io Hawk District Manager, he disclosed that they rely almost exclusively on social media to market their product (L. Daniels, personal conversation 12/8/2015 ). Io Hawk’s main marketing expense is the cost of giving a free board to celebrities. They do not compensate the celebrities in any additional way, and all posts made by celebrities featuring their Io Hawk board are completely organic. Io Hawk relies primarily on rappers, athletes and actors to promote their product by taking advantage of their numerous followers across different social media channels. When asked about search engine optimization and search engine marketing, Daniels revealed that they do not take advantage of either of these strategies, simply because no one at the company has any knowledge regarding those topics (L. Daniels). Io Hawk also doesn’t take advantage of any CRM or email marketing software. According to eMarketer, the marketing tactics from which small business have seen the highest return on investment are social media (26%), email marketing (19%) and SEO (13%) (eMarketer, 2015).
In order for Io Hawk to increase their online footprint, sales and impressions, as outlined above, we recommend that they take advantage of search engine optimization, search engine marketing, online advertising and analysis, and email marketing. For Io Hawk, we are recommending an annual Internet marketing budget of $31,010. This budget includes $1,400 annual subscription to the email marketing campaign manager Marketo, an annual Google AdWords budget of $8,040.00 (rounded up for highest monthly average), an annual Facebook advertising budget of $7,300, a Hootsuite annual subscription for $120.00, an annual shopify subscription for $2,150, and a retainer for SEO consultation of $1,000 per month.
Considering the current state of IO Hawk’s SEO and SEM, an investment into Google Adwords is strongly recommended. In 2015, 33% of small businesses increased media spend in paid search and also increased media spending by 32% in SEO/ organic search visibility (eMarketer, 2015). Research shows that investment in SEO and SEM is a very important marketing tactic even for small businesses, such as IO Hawk.
Google Adwords is an easy way to start and monitor your search engine marketing as well as monitor and update keywords. Google Adwords assistances your business in building campaign structures, choosing keywords, efficiently bidding, picking ad formats, and choosing targeting methods. With the help of Google Adwords you will be able to report and optimize your campaign to ensure your goals are met (Google Adwords Fundamentals Study Guide). Google is recommended over other search engines because
according to Alexa Competitive Intelligence, 35.3% of people visit Google immediately before visiting IO Hawk, followed by Youtube.com with 7%. (Alexa).
Google display advertising is another important component of online advertising. Google display network’s targeting technologies and optimization tools ensure that you deliver relevant, accountable ads to your target audience across Google properties and millions of partner sites, in real time (Google Display Advertising).
While creating a campaign for IO Hawk in Adwords we were able to determine a budget based on a comparison to competitors. The typical competitor budget ranges from $156.97-‐$775.84 a month, this breaks down to $5.16-‐$25.52 per a day. This budget averages 277-‐2293 clicks per a month. With IO Hawk being the most luxurious and high end product of its competitors, it can afford to spend more on bids because the ROI is much greater; therefore we recommend spending around $20-‐22 per a day, or $608.02-‐ $668.83 per a month. This budget will average 1127-‐1880 clicks per month (Google Adwords).
Although, the highest bid does not necessarily get the highest ad rank: expected click through rate, ad relevance, and landing page experience are all factors that go into your quality score. Therefore, a competitive bid and search engine optimization together with redesigned landing pages will increase your ad rank, thus improving your search results. As mentioned above, the actual amount you will be charged is no more than what is needed for your ad to appear higher than the advertiser immediately below you (Google Adwords Fundamentals Study Guide).
Small businesses media spending on Facebook and social media also grew 35% in 2015 (eMarketer, 2015). As previously mentioned, Facebook advertising is very effective because of its targeting capabilities. Based off the information provided on Alexa Competitive Intelligence about Io Hawk’s current webpage vistors, we decided to target Men 18-‐28 in the US, with some college education that are interested in luxury vehicles, music such as gangsta rap, pop rap, sport cars; action movies or Barstool Sports, giving Io Hawk the potential reach of 6,200,000 people on Facebook (Facebook). With a daily budget of $20, or $608.41 a month, Facebook estimated Io Hawk would have a daily reach of 2,900-‐7,500 people (Facebook). By using CPC bidding and an automatic setting we hope to get the most clicks at the best price, running ads at all the times throughout the day.
Analysis Measurement To evaluate the success of our recommendations, we have outlined some goals that
we feel are both challenging and realistic. The first goal is to increase our organic search position for keywords: “Hoverboard”, “IO Hawk”, and “ Io Hawk” to the 3rd position or higher. As stated above, we currently rank below our competitors in all of these keywords. With a redesign of the website from the ground up and more attention paid to website metadata, Io Hawk should be able to rank highly with these terms. Our second key performance indicator is the number of unique visitors we gain. We aim to increase Io Hawks unique website visitors by 35%. We plan to drive traffic to the Io Hawk website with implementation of Google AdWords, an email marketing campaign and a streamlining of the Io Hawk social media accounts. Our final goal is a 15% increase in sales. Io Hawk’s main goal as a company is to sell their board, thus our main measure of success will be a tangible increase in annual sales.
Conclusion Overall Io Hawk has huge opportunities for improvement. Their stagnant marketing tactics and lack thereof means that even small implementations will provide positive growth. As hoverboards become mainstream over time, competition will increase as well. It is important for Io Hawk to make moves quickly in order to show they are a contender in this category. Io Hawk’s website is inefficient, difficult to navigate and designed poorly. Making improvements will create a more navigable experience for consumers and ease the customer journey. Io Hawk’s search strategies are nonexistent; employing search engine marketing and search engine optimization will create a larger presence for Io Hawk in the digital space. We will be able to reach consumers in a fast and efficient way through email marketing using a weekly newsletter to blast information out to consumers. The hoverboard category is new and thus buzzworthy, targeting consumers on their native tech blogs will position our brand and product as something to attain. Io Hawk has had a presence on social media since its inception. Continuing to market on social media, along with implementing hashtag campaigns will increase their growth in the digital space. We know that through all of these tactics Io Hawk will see steady improvements and become the brand that it is meant to be.
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