Tencent’s Social Media Development

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Topic: TenCent’s Social Media Development

School: New York Institute of Technology

Major: Executive Management of Business Administration

Student Name: Shizhao Zhong, Shengxu Li,

Molang Zhang, Guangzhi Zheng, Tao Ye

Class:  Marketing 601 M01

       Start and end time: 02/24/2017-03/17/2017

Catalog

Part 1: Introduction        2

Overview        2

The Importance of the Present Project        3

Objective of the Project        3

History        4

Marketing Strategy        4

Part 3: Environmental Analysis        5

Environmental:        5

External environment:        5

Internal environment:        5

Micro-business:        6

WeChat public number:        6

Competition:        6

Part 4: Description of Target Market        7

Target Market:        7

Potential Consumer:        7

Part 5. Analysis of Marketing Mix        7

Product        7

Function of QQ        8

Design of QQ        8

Function of WeChat        9

Design of WeChat        9

Price        9

Service of QQ        9

Service of WeChat        10

Promotion        10

Background        10

Sales Promotion        11

Advertising        11

Public Relations        12

Direct Marketing        13

Place        13

Channel        13

Coverage        13

Locations        14

Strength        14

Huge user group        14

Synergetic Development        15

Multi-platform        15

Capital strength        16

Weakness        16

Nonprofit, no bigger and stronger capital        16

Innovation is not strong, it is difficult to monopolize the same type of market        16

Disadvantages of product diversification        16

Recommendation        17

Actively explore the Internet market        17

Core technology innovation        17

Enhance brand influence        17

Reference        18

Part 1: Introduction

Overview

“Tencent Holdings Limited is a Chinese investment holding company whose subsidiaries provide media, entertainment, internet and mobile phone value added-service and operate online advertising services in China. (Zhang & Alon, 2011) Its headquarters are in Nanshan district, Shenzhen. Tencent is one if the largest internet companies, as well as the largest gaming company in the world, (New Zoo) many services of whose include social network, web portals, e-commerce, mobile games and multiplayer online games. (thechinaobserver.com, 2009) Its offerings in China include the well-known instant messenger Tencent QQ and one of the largest web portals, QQ.com. (Schonfeld, 2008) Mobile chat service WeChat has helped bolster Tencent's continued expansion into smartphone services. Tencent holds 15% stake of JD.com, one of the largest B2C online retailers in China.”

The Importance of the Present Project

Mobile messaging app WeChat had 762 million users globally, according to parent company Tencent, making it one of the most popular chat apps in the world. Nowhere is that popularity greater than in WeChat’s home country of China, as explored in a new e-Marketer report, “WeChat in China: A Massive, Engaged User Base that is Now More Reachable than Ever.” Tencent’s QQ mobile app, which got its start as a desktop messaging service, came in second with 554 million monthly active users, Quest Mobile found, followed by Alibaba’s consumer-to-consumer shopping app Taobao with 346 million users. Microblogging site Sina Weibo, once China’s most popular social media platform, trailed in seventh place with 271 million users. Moreover, more than half of WeChat and QQ users in China spent over an hour a day on the platform, and nearly a fifth of them were on it for more than 4 hours a day.  Therefore, these two products have brought a lot of property for Tencent and have become the basis on Tencent.

Objective of the Project

“In China, Tencent is also able to use brand stretching at home because its existing brands are very popular. Tencent should add extra-features, value, service and quality. For example, they already did adding video call to the application allowing making free calls with flexibility between video and audio modes. In overseas, Tencent has to educate potential users outside China, Developing the best product is a good method and building a powerful brand is the best way to differentiate from the competition A great user experience, additional extra-features, and large adoption throughout the world will build user loyalty and attract brands willing to pay for a price premium.” (eMarketer 2016)