Digital Marketing

2010

REPORT

Social Media in Technology/Electronics

Business Area
Valon Fetahu, Freiburghaus Steve, Ekaterina Matveeva, Krieger Timo, Sandri Tiziano, Röhrenbach Ines,
Agbamu Kenoma Eugene, Azubogu Chidubem Cletus 1
Table of Contents:

Table of contents…………………………………………………………..........2

Introduction……………………………………………………………………..3

Logitech International S. A…………………………………………………....4

Jura Elektroapparate AG……………………………………………………...6

KABA Group……………………………………………………………………9

Schindler Group……………………………………………………………….10

Phonak…………………………………………………………………………..12

Visualization of analysis……………………………………………………….13

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 Introduction

In this paper we try to analysis the level of engagement in social media companies
from technology and electronics business area. Also we should mention that the
majority of analsized companies are Swiss based with long history of operating
on the market which have traditional approach on the advertising.

The main aim of this paper is:

• To detect the level of engagement in social media channels;

• To understand reasons why companies did not yet involved in social media

activities;
• In some cases to give quick overview of social media activities of the main
competitors of analyzed companies;
• To find out “fresh” insights into business of each company;

• Try to make appropriate suggestions of further social media strategy;

• Attempt to explain value proposition, benefits from being in social media

“space”.

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 Logitech

Logitech International S.A. was co-founded in Apples, Vaud, Switzerland, in 1981 by two
Stanford Masters alumni, Daniel Borel and Pierluigi Zappacosta, and Giacomo Marini, formerly a
manager at Olivetti. Logitech is the world’s leader of peripheral devices for PCs. They produce
keyboards, mice, microphones, game controllers (Xbox, PlayStation 2, PlayStation 3 e Wii) and
webcams. Logitech also makes home and computer speakers, headphones, wireless audio devices,
as well as audio devices for MP3 players and mobile phones. The headquarter of the company is
based in Romanel-sur-Morges, Switzerland. In 2009 they made $2’209 millions revenue and
counted more than 6’000 employees worldwide.

Official website: http://www.logitech.com

Social Media Platforms Analysis

Publishing http://www.blog.logitech.com/ Not available in my pc!

Corporate Blog
Social Networking 1. Logitech Australia (40’744 fans) The most popular Facebook page
about Logitech is “Logitech
Facebook 2. Logitech (32’746 fans) Official Australia”, it is official and
receives 103 messages from users
3. Logitech Gaming (17’826 fans) to his wall for a total of 670
Official answers/discussion. Most of the
messages are positive (78%). Many
4. Logitech Taiwan (5’790 fans) people thanks Logitech for their
Official products and some of them ask
support or help. Few of them are
5. Logitech Hong Kong (3’153 fans) complaining about troubles they
Official face with Logitech products.

6. Logitech Mx518 (2’798 fans) Non- Almost all messages are answered
official (94%) especially the ones asking
about any help. 15% of users are
7. Logitech G25 Racing Wheel (2’524 asking about products
fans) Non-official improvement. In this page there are
20 page boxes who link for

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 8. Logitech Z5500 (1’562 fans) Non- example to YouTube, twitter, to
official help and support, official website
and 60 other Facebook pages.
9. Logitech (1’394 fans) Official Wiki Around 55% of the wall post are
commented by other users. There is
10. Logitech (1’075 fans) Non-official a box in which is possible to win a
trip and a laptop.

In conclusion Logitech is have a

really good interaction with his
users on his Facebook page
providing any support for the
products users and create some
discussion between them.
MicroBlogs http://twitter.com/logitech (9’039 Logitech is present on Twitter in
followers) different language (English,
Twitter French, Spanish, ...) The main
pages has 9’039 followers and is
following 371. The have made a
total of 1’703 Tweets. They post
their official updates really often on
Twitter and have a good interaction
with the followers.
YouTube http://www.youtube.com/user/logitech Logitech is present on YouTube
since January 2006, 4’323’534
users downloaded any content and
21’013 of them subscribe to its
channel which is viewed by
1’110’291 people.

There 138 uploads available, 17

favorites and 17 Logitech + Google
TV.

Writing “Logitech” on Youtube we

find 163’000 .

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Jura Elektroapparate AG is a company that operates in households electrical appliances. It
was founded in 1931 in Niederbuchsiten, Switzerland and, as pioneer, it has specialized in the field
of coffee machines, becoming one of the first firms in this sector. However its range of products is
quite limited, in fact the company decided to focus its attention on just a few product, in order to be
very specialized and therefore to exploit economies of scale, in order to offer the consumer a high
quality product at lower price. Nowadays the company is present in Switzerland, Austria, Germany,
the Netherlands, the US, the UK and South-East Asia with its own store and join ventures. In the
last few years, in the rest of the world, it also entered the market of coffee automatic distributors.
Below we briefly list the range of products that Jura offers to its consumers:
 14 different models of Jura automatic household coffee machines, which differs from each
other by their functions and performance.

 10 different models of Jura automatic commercial coffee machines.

 Irons and ironing accessories

 Toaster

 Other accessories:

 Cup warmers

 Milk containers

 Glasses

 Spoons

 Cups

 And other customizing accessories for coffee machines

Main Communication Channels:

The main communication channels which Jura adopts to advertise its products and to reach the
consumer are quite classic (advertising on newspaper, television, etc.), in fact as we can understand,
its products belong to a certain sector which is difficult to be advertised only through internet and
digital channels. On the other hand, one of the most important channel is directly the store with the
showroom, in which the consumer can personally test the coffee machines.
Another communication channel on which Jura pays attention is the web site (www.jura.com),
where the whole range of products, news, information and special editions are explained and
advertised.

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A very interesting aspect, closely related to the topic of this report, is that, when we enter Jura’s
web site, on the main page it appears the Facebook symbol and a button that invites you to join their
group on the social network. This makes us reflect about the importance that Jura begins to give
also to the advertisement, but especially to the image, of the company on a similar social network.
We understood that Jura is not present on other social networks and it does not have an own blog.

Why does Jura want us to enter its

Facebook group ?

What we have noticed while surfing on Jura’s web

site, was its innovative idea to create a product line
more and more stylish and fashion compared to the
previous ones; everybody knows that if you want
to transmit a fashion and “cool” image of the
company, you also have to transmit the sensation
that who belongs to this specific environment can
really be a better person! In order to do this it is
very important to create something exclusive that
only who really has good taste, or just think to
have, can join.
Facebook could actually be the good choice to do
this, in fact Jura created a group, which people can
join and, in this way, simultaneously communicate
to their friend that they belong to this exclusive
circle of people!
The Facebook group is also useful in order to increase customer loyalty, in fact once they join it and
show it their friends, they automatically decide that, since that moment, they belong to this
company. Moreover Facebook is a free window where introduce, advertise and link Jura’s products
and services, simply thanks to comments, images, news and videos sharing between users.
Going back to the fashion and exclusivity of Jura’s products, we can see that there is a new line of
products which is named Roger Federer Edition. These specific line has been created with the goal
to attract the market segment that likes this tennis player and wants to continue their support even in
the kitchen! Also this innovation could be seen as a strategy to share a sense of elite exclusivity.

Facebook Group Analysis:

Social network size: 500 million users

Number of official and non-official pages and groups: 2
Number of fans: 2’504 on the main group & 3’535 on the UK group
Number of fan posts in 2010: >100
Main topic of fan’s posts: in most of the cases they just want to highlight the performance of their
new tools, they post pictures of their new coffee machines and they want everybody to know that
they are “cool” too!
Last month positive/negative messages: 16 positive comments, 5 negative comments.

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Activity of the MODERATOR (Jura) in the last months:

Jura actively intervene on its Facebook wall, often to advertise or introduce a new product or also a
special event, but it especially care about giving answers to fans questions or complaints, in order
not to give a bad image. The moderator most of the times posts new products and news about the
company, directly followed by the link to the main Jura’s website, in order to lead people to see the
full range of their products. Jura, as I have just written, answers to ALL fan’s questions or
complaints, and, also here, it happens that there is the link to the main website at the end of the post.
Brand engagement: Jura is only present on Facebook, as social network channel; it does not have an
own blog or a Twitter account for instance.

Leadership:
- Is there a company moderator? Yes, it posts and it answers fan’s questions
- Does the brand directly manage proprietary brand communities in social media? Yes, 2
Facebook accounts
- Number of posts/comments on the wall in the last six months: 24
- Does the brand offer free content? Yes
- Links back to the brand social media spaces: 15 links which lead to the main or other
websites

Linking value:
- Percentage of users who discuss with their peers using the brand-related social media
spaces: 30/110 posts contain discussion between users, or between users and Jura.

To conclude this short report, we can say that Jura works a lot in order to keep a close link between
its Facebook group and its main website, because of the huge potential of viewer that Facebook has
(over 500 million), who could easily be aware of the whole range of products that a company wants
to advertise.

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The Kaba Group is one of the world's leading players in the security industry. An
internationally active, listed company, it employs around 8,000 staff in more than 60 countries.
Kaba provides innovative, comprehensive access control solutions for buildings, facilities and sites
as well as solutions for staff and enterprise data collection which meet client's needs for security,
organization and convenience. The company is a key expert and technology leader for a range of
security solutions. Kaba can look back on more than 145 years of tradition.1 The firm‘s main
channel of communication are traditional channels.
In terms of advertising Kaba is very contained. No advertising campaigns are demonstrated in the
internet. Consequently, Kaba is not actively involved in any social media activities. On YouTube
some unofficial videos about Kaba products are available i.e. cyclinder locks, but there are no
official activites to enhance the brand equity and value through social media engagement. This
might be due to the follwoing reasons:
Culture
Kaba is a Swiss based and founded company. In Switzerland and this is true especially in the Swiss
German part, companies rely on their values, strengths and achievements more than in many other
parts in the world. The corporation is able to rely to its huge brand value and equity. And success
proved the firm right in doing so. However, we are not sure if Kaba just is not able to see the huge
opportunities which are allowed by social media or the firm just acts very careful and restricted in
order to prevent any failures.

Business model
The success of Kaba is linked to the outstanding performance of its security products. One could
argue that promoting the firm and its products are in
contradiction to its values which are based on confidential,
discretion and reliability.

Tradition of the company

Members of the board at Kaba are all in der mid 50s. They are all
from the Swiss-German part and not very diversified.
Furthermore, they have a technological background and only a
limited awareness of web 2.0 applications. If we take a closer
look to the competitors the composition of the board is more
internationally oriented in terms of culture, ethics and openess.

The authors requested for an official company statement about social media policy, but did not get
any answer.

However, two of Kaba`s competitors recently started to enlarge activities in social media.

1 See: www.kaba.ch
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The U.S. corporation Ingersoll Rand has a Facebook fanpage with around 1.400 fans and recently
launched a YouTube channel additionally with 30 uploaded videos and had around 50.000 hits.
Additionally a Twitter account (@ingersoll_rand) is launched with around 410 followers.
Also, Assa Abloy is active in Facebook and Twitter (@assaabloygroup) with 500 resp. 330 fans and
followers. These numbers seem to bee rather slow. but both companies are in their very beginning
of the social media activities.

Schindler Group was founded in Switzerland in 1874 and is the largest manufacturer of
escalators and the second largest manufacturer of elevators worldwide. Schindler installs, maintains
and modernizes elevators and escalators in all kind of buildings (Residential, Commercial and
High-Rise). The company is present in more than 140 countries and employs 45,000 persons
worldwide. The production facilities are located in Austria, Brazil, China, France, Slovakia, Spain,
Switzerland and the USA. Globally, Schindler equipment moves more than 900 million people per
day.

Strategic direction
Schindler Group has chosen strategy to be successful through traditional core values such as
customer service, quality and safety with combination of their key strengths of creativity and
innovation of to produce superior solutions in response to customer`s needs. Schindler`s vision:
Leadership through service .

Social Media: analysis of presence

After observation most popular social media channels, we found out that Schindler Group has low
engagement to social media activities. For example, in the first popular network – Facebook, there
is one non-official page with 387 people who like it and also 3 pages with 3 people. As far as the
first mentioned page with 387 members, we can say that it`s just page with brief overview of the
company where people have option just to “like” – there is no wall for sharing some kind of
information. And, consequently, this page doesn’t have sense.

And the following reasonable question is why Schindler Group don’t expand social media
activities ? We decided to find the answer on this question by finding the main competitor and
examining their activities. The first one competitor is OTIS. Both companies work within vertical
transportation and produce elevators, escalators. They were founded within approximately the same
period of the time. But OTIS is considered to be the first one worldwide while Schindler Group is
considered the second. Anyway, these two companies is equally known in worldwide scale and
have strong brand name and reputation for their core values
quality, service, reliability and innovation.
OTIS has one official page on Facebook platform with 959
members who is in particular young people carried by
technology, design, innovation and also employees who is
currently working in OTIS company from subsidiaries all over the
world. Besides, this page is really diversified like the OTIS
company which has subsidiaries in every corner of the world. The

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context of messages is really positive – people interested to know about internship, post photos
from events related to company`s activities, sharing information about future event related to
technology, innovation within this industry – all in all, they try to communicate in informal way.
The number of non-official pages is seven with 439 participants who like it. The titles are “Otis
elevator company”, "Otis just for fun”, “Otis elevator common interest” etc.

As far as web site of Schindler Group, we can say that they have on-line communication but
between company and suppliers. They globally spread out following eCollaboration -
“standardization – automation – digitalization”- tools:

1) eSourcing (the online negotiation empowers the supplier negotiation phase by exploiting the
competition in a defined market)

2) eOrdering (special platform where they can select an item from an electronic catalogue, place the
selected item in a shopping chart and have the shopping cart content ordered from the supplier)

3) ePtP (electronic communication between Schindler and its external suppliers)

This is really great electronic platform for formal collaboration which saves time, cost and create
global network for the whole company to deliver best solutions in short time.

Conclusion
The creation of informal collaboration system can be not so much critical for the company (that’s
maybe the reason why they didn’t yet launch it). But Schindler Group has high level of social
responsibility (different types of events, support of educational institutes, charity, grants for young
and talented students, care of impact which their business processes have on the environment etc.)

And judging by this maybe it can really some kind of good idea to create presence on social media
(e.g. open official Facebook page and Twitter accounts which will be guided by several young,
creative and technology advance people).

Finally…

What’s the benefits/value from being in social media “space" for Schindler
Group:

• cheap and easy way of communication and awareness about the company;
• quick awareness of the past and future activities within corporate responsibility – what’s the
contribution company making to society;
• collaboration between people who are really interested and inspired by Schindler`s business
activities which can give opportunity to gather “fresh” and interesting ideas, insights etc.;
• collaboration between young people in worldwide scale who is keen on technology,
innovation – opportunity for the company to grow up, develop, find out talented persons for
future generation of employees;

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Phonak is the world's leader in wireless earpieces and intelligent hearing protection. The
company was founded in Switzerland in 1992 and has become the technology and market leader in
the development, design, production and worldwide distribution of ultra-miniaturized wireless
systems.

In 2006 Phonak established the “Hear the World” foundation. This initiative aims to improve the
quality of life and promote equal opportunities for people all ages coming from all parts of the
world. The foundation provides financial funds as well as listening technology and hearing aids.
People can leave a social bookmark for this initiative on social media platforms such as Facebook,
Twitter, del.ici.ous, digg.com, googlemail, Mister Wong, YahooMyWeb and YiggIt.

Analysis of presence on Social Media platforms:

Facebook
Phonak is present on a Facebook site. 301 people like the page, however the content of the page is
only available in French and is derived from Wikipedia. The “Hear the World” Initiative by Phonak
on the other hand is supported by 1782 people and displays a much broader information and
follower interaction through frequent updates and news.

Twitter
Phonak has 322 followers on Twitter and 13 people being listed. On Twitter, Phonak regularly posts
news, “tweeds”, combined with links to the youtube webpage.

Youtube
On youtube, customers of Phonak give their hearing aid evaluation via video clips, officially and
unofficially. Playlists with reviews, problems and discussions have been created.

LinkedIn
Phonak is presented on LinkedIn. The company offers additional information about innovative
hearing solutions.

Xing
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On Xing, Phonak published an article about its initiative “music as an ambassador” in a forum
within the group “from CEOs to CEOs”.

Blogger.com
On this blog, people can create free blogs. Every internet user has free access to the blog contents.
Blogs containing information about Phonak are about benchmarking with competitors and product
quality

Visualization of analysis