Viral marketing encourages individuals to share marketing messages to expand exposure exponentially. Mekanism is a digital marketing agency specializing in viral campaigns through storytelling on emerging platforms. While Mekanism grew 68% annually from 2007-2010, growth slowed to 10% in 2010 despite increased profits. This document discusses analyzing Mekanism's core competencies and considering expanding into traditional marketing services or focusing solely on digital.

2. What is Viral
Marketing?
Viral marketing describes any strategy that
encourages individuals to pass on a marketing
message to others , creating the potential for
exponential growth in the message’s exposure
and influence.

3. Mekanism–
Engineering Viral Marketing

4. Mekanism, is a digital/social media production company ,
for development of viral marketing campaigns.
Mekanism focuses its work on story-telling through
emerging media platforms
We have enjoyed a 68% annual growth in billings.
We engineer virality , and we create an online campaign
and make it go viral
Who Are We ?

5. Traditional VS Viral Marketing
• Traditional advertising:
Cover massive individuals.
Trust level: medium/low.
• Viral marketing:
Target a limited number of users.
Utilizes the relationships in social networks, e.g.,
friends, families, etc.
Trust level: relatively high.

6. Mekanism’s Problem
 Mekanism has grown tremendously from 2007 to 2010.
 Yet, in 2010 despite an increase in profits, the firm only
grew 10% in billing with fewer new clients signing on.
 Clients requesting other complimentary services to viral
marketing.
 Converting mekanism from a specialized production shop
to a full service ad agency.

7. Stay with digital/VIRAL or get
into traditional Marketing ?

8. Upside of sticking to digital
Core competency
It’s a huge market. Why agencies like Agency
Net have succeeded
From One Stop Shop to strategic partner
45% clients switch agencies due to digital
agencies
Pull interactions than push campaigns
Millenials love organic content
Develop analytics and differentiation

9. Downside of getting into traditional
Struggling to compete with the resources and
reach of a traditional network agency
Cultivating the 30 second tv spot mindset
Diluting our brand value

10. We’re up against
Saatchi & Saatchi
Ogilvy
Huge
Johannes Leonardo
Wieden & Kennedy
The Martin Agency
Crispin Porter + Bogus

11. Strengths
Established player in the market
Got the right mix of talent
Innovation at its best
Ability to deliver viral videos consistently
Pre-empting clients needs
Serving blue chip clients
Great Understanding of brand / customer
needs

12. Weaknesses
 Still servicing a large number of ad agencies
 Unable to command a higher share of clients’
total expenses
 Digital spends account for 13%

13. Opportunities
Rival agencies may eat into our market
share as they become more adept at digital
marketing.
Threats

14. HIRING NEW TALENT

15. Mekanism's Income Statement(thousands of dollars)
2007 2008 2009 2010
Gross Revenue 9,330 10,852 18,238 20,111
Production Costs 5,221 5,195 9,251 9,865
Gross Profit 4,109 5,657 8,987 10,246
Operating Costs 3,555 4,473 6,950 7,882
EBITDA
$
554 1,184 2,037 2,364
EBITDA % of Net Revenue 13.50% 20.90% 22.70% 23.10%
Financial aspect –
Why the worry?
Despite maintaining a healthy EBITDA margin of
23.1% in 2010, Mekanism’s revenues grew by only
10% in 2010, from a much better-than-expected
68% growth in Revenues in 2009.

16. Content Likely To Be Shared

17. My ADSPACE

18.  Making every AD about “ME”!
 Share the stage with a celebrity and let it go viral
 Unique Technology Platform
 First time in the Advertising World.
 Can be leveraged across TV content, Music Videos and Film clips.
My Ad
HOW IS IT BENEFICIAL TO
CLIENTS
 High user engagement
 No overt Advertising
 Ultimate customization.

19. Viral Tunes
 Make ringtones go viral through Mekanism’s
iPhone app
 The app allows you to change a friend’s ringtone
at will
 Iphone users can check a ‘surprise me’ option in
order to receive automatic ringtone updates from
friends.
HOW IS IT BENEFICIAL TO THE CLIENTS
Mobile to Mobile sharing
(861,660,000 Handsets in USA)

20. Customer Relationship
Management

21. Key Concepts
 Customer Loyalty and Retention
Customer delight leads to emotional relationships and
loyalty
Customer Lifetime Value shows true worth of a customer
 Share of Customer
Achieved through offering service quality and variety.
 Customer Equity
The combined customer lifetime values of all current and
potential customers.
Measures a firm’s performance, but in a manner that looks
to the future.

22. CRM Phases

23. Survey of Mekanism Clients
Why do you or your company use digital media as part of marketing campaign ? Select all that apply

24.  Highlight the importance of Viral advertising for clients in
terms of time-to-market and market penetration.
 Promoting the USP – Story telling creative approach
coupled with multifaceted social media distribution system.
from
 Interaction and regular feedback from the clients and
market surveys to help build client-relationship and improve
service quality.
 Utilizing the existing Most Valuable Customers (MVC) to
bring in more clients.
Strategies for CRM