Harvard Case - 12Snap* (Germany, UK, Italy): From B2C Mobile Retailing to B2B Mobile Marketing
"12Snap* (Germany, UK, Italy): From B2C Mobile Retailing to B2B Mobile Marketing" Harvard business case study is written by Enders Albrecht, Tawfik Jelassi, Charles Waldman. It deals with the challenges in the field of Marketing. The case study is 23 page(s) long and it was first published on : Jan 1, 2002
At Fern Fort University, we recommend 12Snap* pivot its business model from B2C mobile retailing to B2B mobile marketing, leveraging its existing technology and expertise in mobile user engagement to provide a powerful platform for businesses to reach their target audiences. This strategy will capitalize on the growing demand for mobile marketing solutions while diversifying 12Snap*'s revenue streams and mitigating its dependence on a volatile consumer market.
2. Background
12Snap* is a mobile technology company that initially focused on B2C mobile retailing, offering a platform for consumers to buy and sell goods through mobile apps. The company experienced initial success, but faced challenges due to increased competition and the evolving landscape of mobile commerce. This case study focuses on 12Snap*'s decision to transition its business model to B2B mobile marketing, targeting businesses seeking to leverage mobile technology for advertising, lead generation, and customer engagement.
The main protagonists of the case study are:
- Stefan Schmidt: CEO of 12Snap*, responsible for the company's strategic direction and decision-making.
- Sophia Rossi: Head of Marketing, tasked with developing and implementing the new B2B marketing strategy.
- Marco Di Lorenzo: Head of Technology, responsible for adapting 12Snap*'s platform to meet the needs of B2B clients.
3. Analysis of the Case Study
To analyze 12Snap*'s situation, we can utilize the following frameworks:
SWOT Analysis:
- Strengths: 12Snap* possesses a strong understanding of mobile user behavior, a robust technology platform, and a proven track record in mobile app development.
- Weaknesses: The company lacks experience in B2B marketing, and its brand recognition is primarily associated with B2C services.
- Opportunities: The B2B mobile marketing market is rapidly growing, offering significant potential for 12Snap* to expand its reach and revenue.
- Threats: 12Snap* faces competition from established B2B marketing platforms and the potential for technological disruption within the mobile marketing space.
PESTEL Analysis:
- Political: Regulations regarding data privacy and mobile advertising can impact 12Snap*'s operations.
- Economic: Economic fluctuations can affect B2B marketing budgets and impact 12Snap*'s revenue.
- Social: The increasing reliance on mobile devices presents a significant opportunity for 12Snap* to capitalize on.
- Technological: Rapid advancements in mobile technology require 12Snap* to continuously innovate and adapt.
- Environmental: 12Snap* can incorporate sustainable practices in its operations and marketing campaigns to appeal to environmentally conscious businesses.
- Legal: 12Snap* must comply with legal regulations regarding data security, intellectual property, and advertising practices.
Marketing Mix (4Ps):
- Product: 12Snap* needs to develop a comprehensive suite of B2B mobile marketing solutions, including targeted advertising, lead generation tools, and customer engagement platforms.
- Price: 12Snap* should offer flexible pricing models based on the scope of services and client needs, considering both value-based and competitive pricing strategies.
- Place: 12Snap* needs to establish strong distribution channels to reach potential B2B clients, leveraging online marketing, industry events, and partnerships.
- Promotion: 12Snap* should implement a multi-channel marketing strategy, including content marketing, social media marketing, and targeted advertising campaigns to generate awareness and build brand credibility.
Competitive Analysis:
12Snap* needs to analyze its competitors in the B2B mobile marketing space, identifying their strengths, weaknesses, and market share. This analysis will help 12Snap* differentiate its offerings and position itself effectively in the market.
Customer Segmentation:
12Snap* should segment its target B2B market based on industry, size, and marketing needs. This segmentation will allow the company to tailor its offerings and marketing messages to specific customer segments.
4. Recommendations
Pivot to B2B Mobile Marketing: 12Snap* should fully commit to a B2B mobile marketing strategy, leveraging its existing technology and expertise to provide a comprehensive platform for businesses to reach their target audiences.
Develop a Robust B2B Product Suite: 12Snap* needs to develop a range of B2B mobile marketing solutions, including:
- Targeted Advertising: Leverage 12Snap*'s data analytics and user segmentation capabilities to deliver highly targeted mobile advertising campaigns.
- Lead Generation Tools: Develop mobile-first lead generation forms and landing pages optimized for conversions.
- Customer Engagement Platforms: Offer mobile-based customer engagement solutions, such as loyalty programs, push notifications, and interactive mobile experiences.
Establish a Strong B2B Sales and Marketing Team: 12Snap* should recruit experienced B2B sales and marketing professionals with a proven track record in the mobile marketing industry. This team will be responsible for identifying potential clients, building relationships, and driving sales.
Develop a Multi-Channel Marketing Strategy: 12Snap* should implement a comprehensive marketing strategy to reach potential B2B clients, including:
- Content Marketing: Create valuable and informative content, such as blog posts, white papers, and case studies, to establish 12Snap* as a thought leader in B2B mobile marketing.
- Social Media Marketing: Leverage social media platforms to engage with potential clients, share industry insights, and promote 12Snap*'s services.
- Targeted Advertising: Utilize targeted advertising campaigns on relevant platforms to reach specific B2B segments.
- Industry Events: Participate in industry events and conferences to network with potential clients and showcase 12Snap*'s capabilities.
Invest in Technology and Analytics: 12Snap* should continue to invest in its technology platform, ensuring it is scalable, secure, and capable of handling the demands of a B2B client base. The company should also invest in data analytics tools to optimize its marketing campaigns and provide valuable insights to clients.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: 12Snap*'s existing expertise in mobile technology and user engagement aligns well with the demands of the B2B mobile marketing market. This pivot allows the company to leverage its core competencies for growth.
- External Customers and Internal Clients: The recommendations address the needs of both external B2B clients seeking effective mobile marketing solutions and internal clients within 12Snap* who require a clear strategy and resources to succeed in the new market.
- Competitors: The recommendations consider the competitive landscape and identify ways for 12Snap* to differentiate itself through innovative product offerings, targeted marketing, and a strong focus on customer service.
- Attractiveness ' Quantitative Measures: The B2B mobile marketing market is projected to grow significantly in the coming years, presenting a strong opportunity for 12Snap* to achieve substantial revenue growth and profitability.
6. Conclusion
12Snap*'s transition to B2B mobile marketing presents a compelling opportunity for the company to achieve sustainable growth and success. By leveraging its existing strengths, adapting to the evolving market landscape, and implementing a well-defined strategy, 12Snap* can position itself as a leading provider of innovative and effective mobile marketing solutions for businesses worldwide.
7. Discussion
Other alternatives not selected include:
- Continuing with B2C Mobile Retailing: This option carries significant risk due to the competitive nature of the B2C mobile commerce market and the potential for technological disruption.
- Acquiring a B2B Mobile Marketing Company: This option would require significant capital investment and could present integration challenges.
Key assumptions of the recommendation include:
- Continued growth of the B2B mobile marketing market: The success of 12Snap*'s strategy hinges on the continued growth and adoption of mobile marketing by businesses.
- 12Snap's ability to develop and deliver effective B2B mobile marketing solutions:* The company needs to invest in product development, technology, and talent to meet the demands of B2B clients.
- 12Snap's ability to establish a strong brand presence in the B2B market:* The company needs to effectively communicate its value proposition and build trust with potential clients.
8. Next Steps
- Develop a detailed B2B marketing plan: This plan should outline 12Snap*'s target market, product offerings, pricing strategies, marketing channels, and key performance indicators.
- Recruit a dedicated B2B sales and marketing team: This team should have experience in the B2B mobile marketing industry and be capable of driving sales and building relationships with clients.
- Invest in product development and technology: 12Snap* should prioritize the development of its B2B mobile marketing platform, ensuring it is scalable, secure, and user-friendly.
- Launch a pilot program with select B2B clients: This pilot program will provide valuable feedback and insights to refine 12Snap*'s offerings and marketing strategies.
- Monitor and evaluate progress: 12Snap* should regularly track key performance indicators, such as customer acquisition cost, customer lifetime value, and revenue growth, to assess the effectiveness of its B2B strategy.
By taking these steps, 12Snap* can successfully transition to a B2B mobile marketing model and capitalize on the significant opportunities available in this growing market.
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Case Description
This case analyses the first years of operation of 12Snap, a German start-up launched in 1999 and considered today the largest mobile marketing channel in Europe. It focuses on the changing market positioning and business model of the company, which evolved from B2C mobile retailing to B2B mobile marketing.
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