Cyworld Marketing Case Analysis

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Cyworld Case Analysis Market Segmentation Cyworld’s market can be segmented many different ways using various factors to create the segments. Cyworld can demographically segment its market using statistics such as age, sex, and country. This can be done by breaking down Cyworld’s users based on male/female, current country of residence, and then further grouping the users into age categories of 13-18 years old, 19-29 years old, 30-39 years old, etc. Cyworld can gain information on its market by further segmenting its users based on specific aspects of the website, such as activity level, purchases, and the amount of connections. For activity level segmentation, Cyworld would categorize users based on the amount of times he/she signs…show more content…
Valuation of User Types for Cyworld Between the Cyworld user classifications of an active user, a user who spends a lot of money on the site, and a user with a lot of connections, the most valuable to Cyworld is an active user. An active user is a Cyworld member that signs-in to his/her profile on a consistent basis, multiple times per week. This type of user creates the most opportunities for Cyworld to produce income in various ways. Active users are “the ones who engage more with the system, who are more likely to interact with advertising, who are more likely to spend money on virtual goods and currency” (O’Sullivan, 2011). A user who spends a lot of money on Cyworld is valuable, but their value to Cyworld is limited to only the purchase of items. If purchasing items goes out of style and becomes an infrequent occurrence, this type of user brings about little value to the website. A user with a lot of connections, or a member that has a lot of virtual relationships with other members, comes in at a close second in terms of value brought to Cyworld. This type of user brings about a higher possibility of purchasing items for their various connections, as described previously, but just because a Cyworld user has a lot of connections does not mean that he/she actively uses the website. A user with a lot of connections that never, or rarely, signs into Cyworld contributes little value to the website. High user activity levels allow Cyworld

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