Executive Summary Executive Summary “Branding via Viral marketing on Facebook.” The Internet has become an often used tool of advertising in companies’ attempt to connect more directly with consumers. As the Internet continues to grow, opportunities to advertise through this medium are ever evolving and companies are continuing to find new ways to target the market. We have written this thesis on the basis of an interest in advertising through social networking sites, as these sites have become immensely popular within the last few years, and therefore may become a new medium for advertising. Our focus has been on viral marketing and more specifically on how Pebas, a soft drink manufacturer, can promote their Grønne Gaarden organic soda through the social networking site, Facebook. The central research problem of this thesis has been: How can an analytical framework for advertising via branding through viral marketing on Facebook be developed by use of a composition of existing theoretical elements? And, with this analytical framework in mind, what is the most effective way for Pebas to start advertising on Facebook? In using viral marketing as a means of advertising, we believe that Pebas easily and inexpensive can reach a large part of the target group, which is women 20+, as a viral marketing message almost always will be doubled, if not more, each time it is sent forward. Furthermore, implementing a viral marketing strategy does not have to be a great expense to the company. In our research on viral marketing we found other theoretical elements, such as branding, marketing communication and consumer behaviour, to be of importance, and on the basis of these elements, combined with the theory behind viral marketing, we have developed a theoretical framework to answer our research question. Moreover, we looked at the promotional material that Pebas, have used to promote other products. With this promotional material in mind we have aimed at integrating the advertisement for the new Executive Summary soda within the existing material which we advise to use in a viral marketing strategy on Facebook. The advertising that we have envisioned for Pebas is a video in the form of a comic strip. This video is to be uploaded to YouTube from where viewers can download and share it through Facebook. The choice of usins a comic strip has been made on the basis of Pebas’ limited advertising budget as well as an effort to integrate the advertisement as much within the existing promotional material for other Grønne Gaarden products. On the basis of this and on the chosen target group we have identified values that shall be illustrated in the comic strip in order for it to be relatable for the target group. Humour has played a major factor in Pebas’ current advertising and we further believe this to be an often used tactic in creating a viral marketing campaign. The premise of the comic strip is to set a scene that the target group can relate to in an attempt to get them to forward the comic strip to Friends on Facebook, who will then again forward it to more Friends; thereby virally passing on the message. Table of Content 1.0 Introduction (Line & Tina) ...............................................................................1 1.1 Research Question .........................................................................................................4 2.0 The Second Generation of the Internet (Tina)......................................5 2.1 Web 2.0 (Tina) ................................................................................................................5 2.2 Social Networking Sites (Line) ....................................................................................6 2.2.1 Facebook (Line)....................................................................................................... 9 3.0 Methodology (Line & Tina)............................................................................11 3.1 Purpose of the Study...................................................................................................11 3.2 Scientific Paradigm......................................................................................................13 3.3 Scientific Approach .....................................................................................................13 3.3.1 The Hermeneutic Circle....................................................................................... 14 3.4 Choice of Subject..........................................................................................................15 3.5 Data Collection.............................................................................................................16 3.5.1 Interviewing .......................................................................................................... 17 3.6 Structure........................................................................................................................19 4.0 Viral Marketing (Tina) ......................................................................................21 4.1 Word of Mouth ............................................................................................................21 4.2 Word of Mouth Becomes Word of Mouse ...............................................................23 4.3 The History of Viral Marketing .................................................................................27 4.4 Creating a Viral Marketing Campaign.....................................................................27 5.0 Theory (Line) ...........................................................................................................33 5.1 Branding (Line) ............................................................................................................33 5.1.1 The Educational Brand ........................................................................................ 36 5.1.2 Product and Corporate Branding....................................................................... 38 5.1.2.1 Product Branding...........................................................................................39 5.1.2.2 Corporate branding.......................................................................................40 5.1.3 Storytelling ............................................................................................................ 42 5.1.4 Branding on the Internet...................................................................................... 44 5.2 Consumer behaviour on the Internet (Tina)............................................................46 5.2.1 Consumers............................................................................................................. 47 5.2.2 Consumer Values.................................................................................................. 49 5.3 Communication in Advertising (Line) .....................................................................51 i Table of Content 5.3.1 Integrated Marketing Communications............................................................ 54 5.3.1.1 Integration and the Internet .........................................................................56 6.0 Company Profile (Tina) ....................................................................................57 6.1 The Company Pebas (Tina) ........................................................................................57 6.1.1 Grønne Gaarden ................................................................................................... 58 6.2 The Rise of Ecology in Denmark (Line)....................................................................60 7.0 Analytical Framework (Line & Tina)........................................................62 8.0 Analysis (Line & Tina).......................................................................................64 8.1 Considerations on Crating the Strategy (Tina)........................................................64 8.1.1 Points to Consider ................................................................................................ 69 8.1.2 Using Viral Marketing ......................................................................................... 73 8.2 Branding in Relation to Pebas’ Grønne Gaarden (Line) ........................................76 8.2.1 The New Soda; Corporate or Product Brand?.................................................. 76 8.2.2 Brand Equity in Relation to The New Soda...................................................... 78 8.2.3 1. level Consumers = ‘Prosumers’ ...................................................................... 80 8.2.4 Values Connected to Pebas’ Grønne Gaarden Soda........................................ 82 8.2.4.1 Fun and Enjoyment in Life...........................................................................82 8.2.4.2 Sense of Belonging.........................................................................................83 8.2.4.3 Self‐fulfilment & A Sense of Accomplishment..........................................84 8.3 The Comic Strip (Tina)................................................................................................86 8.3.1 Content of the Comic Strip (Tina) ...................................................................... 87 8.3.2 The Use of Storytelling (Line) ............................................................................. 88 8.3.2.1 Educating the Consumer Without Preaching (Line) ................................89 9.0