Mevod, a Dubai based video on demand company, is a regional telco company’s beach head product to move into the OTT space. There are limited players currently in the market, and none of the current OTT offerings are tailored to the Middle Eastern / Arabic-speaking market. Mevod’s strategy objective is to become the dominant regional market player. The strategy team has outlined two components to their tactical plan: acquiring and/or producing native content (currently primarily generatedin Egyptand Turkey) and offering superior customer service to establish their committed presence to the region.
Cinny Lin (Consultant) has been engaged to support Mevod (Client) in their market expansion strategy over the next 3 months ending 11-Dec-2020. The client has asked you to put together a marketing strategy plan. They want to synthesize who their customers are, what their customers want, and recommendations for expanding marketing share and improving profitability.
You will conduct 2 of the following analyses:
- A/B testing pricing schemes that the strategy and marketing teams have been piloting to evaluate their effectiveness
- Customer segmentation
- Attribution and allocation to understand how sensitive our marketing budget is to whether we use customers’ survey responses or technical data to determine optimal allocation
- Churn forecasting and revenue retention opportunities
Since management is testing pricing strategies in A/B testing, they also want a churn forecast analysis, so they can understand downstream forecasted revenue impacts to changing unit economics (plan prices). (i.e. If you choose A/B testing as one of your two analyses, you must do the churn forecasting as your second analysis.)
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Customer Segmentation: Our current customer group is most distinguishable by age. Thus, we can create local content of different genres to target three agre groups: young adults (30), middle-ages (45), and the elderly (60).
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Attribution & Allocation: If we allocate 10% of our current profit and invest around 280k AED on display ads, 13k AED on Facebook ads, and 2k AED on seach ads, we are expected to get 5k more customers, increasing our conversion by 10%.