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Clash of Clans Research

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Submitted By kangmihail
Words 3670
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Clash of Clans (Supercell) Market
Research and Marketing Strategies

2

Table of Contents
1. Company Introduction/Background…………………………………...…3
2. Current Company Status/Health & Relevant Usage Statistics………...…5
3. Overall Marketing Strategy………………………………………………7
4. In-Game Contributors to Success……………………………………….17
5. Relevant Statistics……………………………………………………...20
6.

Sources…………………………………………………………………24

3

I.

Company Introduction/Background
a.

About the Company 1.

Supercell is a social gaming startup from Helsinki, Finland that came out of nowhere to become Accel Partner’s fastest-­‐growing company ever, in terms of revenue •

They were originally endowed with $12M of funding



Before the summer of 2012, the two-­‐year-­‐old company had launched only two games,



Both games had failed and they had killed another one in an early stage

2.

Then, their new “tablet first” strategy started to pay off •

Supercell focused on designing games geared towards tablet players



"We make these games for tablets -­‐ we can see how things are scrolling, we think about the frame rate, and we've done a lot of work on the gesture controls," explained the Product Lead Lasse Louhento



They also decided to focus only on iOS, so they could concentrate all their resources and energy on just two games and one platform

3.

They launched Hay Day and Clash of Clans and shot to the top of the top-­‐grossing apps leaderboard in the App Store

4.

Employment Information •

As of most recently available information, there are only 70 people working at Supercell



The company works in cells of about five people each, which makes each staffer feel like he or she is having a meaningful impact on the products



Nobody has their own office

4



The team has backgrounds in mobile, social, and AAA console gaming.



Idea is to hire the most talented people possible, and focuses on quality over quantity



Supercell aims to keep headcount and game count low

5

II. Current Company Status/Health & Relevant Usage Statistics
a.

Statistics
1.

Supercell only has two apps: Clash of Clans and Hay Day •

Clash of Clans cost only about $200k to originally develop



In September was earning as much as 103k a day in the U.S. alone



October 2012 saw sales of upward of 500k a day and $15m in gross sales a month



By November 2012 they were bringing in nearly $1 million a day



Apple confirmed that Supercell pulled in $100m in 2012

2.

Revenue split evenly between iPhone and iPad

3.

App store analytic company has placed them in first place, ahead of big publishers such as EA, in monthly iOS revenue



Despite only having two apps still made a CROSS-­‐platform publisher top 10 in terms of highest grossing in the AppStore

6



Both titles have been at the top of the top grossing iOS app charts for months, currently Clash of Clans is the number 1 grossing app for both iPhone and iPad and HayDay is #2 on iPad and #5 on iPhone



The runner up in ranking, Electronic Arts (EA), has 969 titles on iOS.

7

III. Overall Marketing Strategy
a.

App Description & Pay Models
1.

Game Description:


Clash of Clans is an epic combat strategy game for your iPad or iPhone. They took a pre-existing game format and improved upon it. Their developers are avid game enthusiast and understand how the end-user thinks.



Build your village into a mighty fortress that other players can only dream of conquering. Raise an army of Barbarians, War
Wizards, Dragons and other mighty fighters. Crush the Goblin
Horde and any player who stands against you!



Join a clan of players and rise through the ranks, or create your own Clan to contest ownership of the Realm. Driving back the goblins is just the first step - your quest isn't over until your clan reigns supreme over all others!

b.

Target Demographic & Appeal
1.

Target Demographic •

Clash of Clans has a wide and diverse target demographic



Graphics in game are carefully tested and designed appeal to both casual and hardcore players. This audience is typically male and under the age of 35. i.

Originally had a much more cartoony and casual look than its current form

8

ii.

Game went through numerous visual alterations before the final look was settled on iii.

"We had this notion that maybe the hardcore players would actually dislike this, and think it was too childish," explains product lead Lasse Louhento. "So we had to find a sweet spot, such that it wouldn't alienate the casual players -­‐ nothing dark and black and evil and realistic -­‐ but on the other hand, it couldn't be too bubbly" •

Open to all ages as it has limited cartoon violence, yet is still complex enough to engage adults (similar to the popular Angry Birds app)

2.

Appeal •

Company has a tablet-­‐first approach, in contrast to competitors such as Zynga, EA, and Gree i.

“We view the tablet as the ultimate gaming platform,” explained their CEO. “The entire strategy is to create the best possible game experiences on the tablet, and the interesting side effect of that strategy is that we also make the games better on iPhone, because designing the games for a higher spec is also what makes the games better on the smartphones.”

ii.

"We make these games for tablets -­‐ we can see how things are scrolling, we think about the frame rate, and we've done a lot of work on the gesture controls," said Louhento iii.

They credit the fact that the games are designed with usability in mind as a major factor in their success •

Numerous personalized choices give players the freedom to think for themselves and directly affect their own game

9

i.

Players have the ability to upgrade their clan’s defense system, make more money from mining, and attack other clans to become more powerful

ii.

This increases players’ engagement and sense of connectivity to the community Freemium Model (Free to play, but built in ability to aid



game performance for money) i.

Opportunities within the game to pay for additional items, such as gems which serve as currency and constant “deals” on specific items.



Extensive global multiplayer atmosphere i.

Once a player reaches a high enough level he can join an online clan, allowing him to interact with others through attacking and socialization

ii.

This also enables players to engage in battle with real people rather than testing wits against a computer Measurable accomplishments i.

Earning of trophies for accomplishments in defense and attack allows clans to be ranked and therefore encourages competition



Clash of Clans embodies socialization and strategy planning which leads this game to success

3.

International Presence



77 Countries have Clash of Clans as the #1 grossing iPad game



Languages: Dutch, English, French, German, Italian, Norwegian, Portuguese, Spanish, Turkish



#1 rated strategy app in US, Australia, Japan, Sweden, Canada, Netherlands, Switzerland, China, Russia, UK, France, Singapore, Germany, South Korea, Italy, Spain, among others

10



They learned that it doesn’t matter in which geographic location the games are created.

i.



If the games are great, the users will play them

However, it is a global business i.

Supercell has employees from 15 different countries

ii.

Need to have a multicultural environment to be able to compete in this space c.

What 2012 Proved
1.

The future of the tablet and smartphone games has clearly shifted from quantity to quality


Cofounder and CEO Ikka Paananen said. Developers should look for inspiration from the likes of Riot Games, War Gaming, and Blizzard, who all put incredible attention, passion, and polish into their games.



“The whole market is really going to shift more to that type of model, especially if you want to do these games with a higher engagement, which leads to higher monetization at some point,” said Paananen. “These companies who really have focused on a few number of products but have really made them great, and made them great for the users, I think we’re going to see more of that”

2.

When Supercell disclosed to the New York Times in October that it was bringing in $500,000 a day, it did so purely as a recruiting tactic •

It was just to prove that the company is a safe place to come and work, Paananen said



But since then, the company’s revenues seem to be the only thing people are interested in



So what did he learn from the experience? “I guess we’ve learned at least not to comment on any revenue figures,” he said. “Probably a big misconception about us, really, is that

11

our primary focus would somehow be monetization of the games. Nothing could be further away from truth… Of course we pay attention also to monetization, but unless you have a game that is inherently fun to play, then you won’t have a game that’s engaging and you won’t have these players playing for months and months and months, or even years.
And if you don’t have that, then it doesn’t really matter what the monetization per user is”
d.

Internal Roll-Out, Demo, Promotion
1.

Supercell has been careful not to over-­‐expand with their rapid success •

As of late November, 2012 they had only 70 employees working on the company’s two games



A comparable Helsinki based company, Rovio, employs more than seven times as many people

2.

The game creators had healthy competition and were genuine users of the product they were creating •

"For the first two months, we did a company-­‐wide demo, and everybody played inside Supercell," said their Product Lead



Clash of Clans and Hay Day were developed by two different teams within Supercell



The two groups would constantly have friendly digs at each other about how far they were through development, or the features they'd managed to implement most recently



They believe this helped to keep the creators engaged, and instilled the game with an additional sense of competitive fun

e.

Initial Roll-Out Strategy

12

1.

Supercell takes a more laid back (and cheaper) approach to marketing than many competitors


They rely on the strength of their game



CEO Ikka Paananen responded to an article that points out how low Supercell's marketing costs are by saying, "I think the quality of our products is our best marketing weapon.
People just talk about them to others”



Supercell's games are very social, allowing them to be
"everywhere" without PR pushes, or seeing game-branded soft drinks or candy in stores
i.

This is due to the enormous amount of people word of mouth can reach via the Internet and social networking

ii.

This keeps monthly costs incredibly low, as they can rely on this free PR to do much of the marketing work for them



Supercell builds virality through designing a social product instead of gimmicks like giving away free gifts for inviting your friends
i.

“We absolutely didn’t do that [gimmicky stuff] at all,” said Paananen. “Instead what we do is we design our games so that they are better if played with other people and your friends”

f.

Social Media Integration
1.

The shifting importance of Facebook


Even though Supercell has shifted its attention to the iPad and is no longer building games on top of Facebook’s Canvas platform, the social network is still important because it enhances the user experience



“The shift you saw in 2012, and I’m sure it’s going to continue to 2013, is instead of people viewing Facebook as just a marketing platform and [thinking] ‘Let’s try to force as

13

many friend invites as possible,’ and that type of thing, I think at people will start to view it as, ‘Okay, what can Facebook do to enhance the user experience and add some real value to the user instead of just spamming their Facebook walls,’”
Paananen said
g.

Social Media Promotion
1.

Statistics


The Clash of Clans Facebook page has over one million monthly viewers



They have 250,000 likes on the page



Their posts receive upwards of 7,500 likes and thousands of comments 2.

This is a highly effective way of getting publicity and engaging players •

They engage players to comment on their posts by asking questions like “How many trophies do you have?”




They also have giveaways for free in-game-items


h.

They post new graphics on the account for fans
Clash of Clans Twitter: @clashofclans

Advertisements (Mobile and Web)
1.

Advertisements on gaming-driven sites (other games, gaming review sites, etc.)

2.

Now, however, Supercell is moving away from web advertisements and looking to utilize a straight mobile approach with high-volume in mind (i.e. thousands of installs a day).

i.

Pop-Up & Other Campaigns in Other Games
1.

Cross-marketing

Pop-­‐up ads in competitors’ games such as Zynga (Words with Friends, Draw Something, etc.) Meet ups & Conventions


j.

1.

First ever Clash of Clans meet up took place in January 2013 in
Helsinki

14

2.

They offered sneak previews of the upcoming update, free beer, and a strategy talk

3.

Most attendees were quite serious about the game on a professional level 4.

k.

Next meet up planned for March 29th in San Francisco, CA

Online Communities & Other Word of Mouth Proliferation
1.

Wiki •

Very detailed wikia system i.

Announcements – upcoming updates, events, etc.

ii.

Latest updates – comprehensive list iii.

Strategy-­‐guides iv.

Online protocol v.

Weekly polls – which they can use to base future updates off of player preferences 2.

Blogs •

Supercell has their own official blog with updates and other relevant information about their company and its two games



Numerous fan blogs for Clash of Clans also exist, which are managed by enthusiastic players

15



These blogs are useful for generating a buzz about the game



They can also draw in new users that are unfamiliar with how the game works and become more comfortable after reading tips on a blog



These communities have been around since the game first became prominent in mid-­‐2012 and have increased in strength and following steadily as the game has grown

3.

Forums/Clans •

Supercell’s website features a forum where they post official announcements, answer questions, and allow players to discuss games



There are also numerous fan forums, dedicated to discussing and sharing tips for the game for and by the users



Encourages player engagement and answers questions users may have



Helps new players learn the game, and adds to user retention



Creates buzz for impending new developments within the game


4.

Free publicity

Strategy-­‐guides •

There are strategy-­‐guides officially posted by Supercell’s official website and wiki



There are also numerous unofficial strategy-­‐guides created and posted by players



Cheats i.

Not only are there numerous cheats offered on cheat websites, but there are also many websites

16

specifically dedicated to Clash of Clans cheats (i.e. clashofclans.com) ii.

Creators say such cheats do not affect the overall playability of the game 5.

Credible Reviews •

As the game gained popularity so quickly, genuine positive player reviews were not difficult for the game to attain



Critics and players alike have given the game raving reviews, and it has not had a problem with phony reviews being written



Examples of such sites: IGN, pocketgamer.com; modojo.com; gamezebo.com are larger examples, with respected bloggers such as lionoftheblogosphere as examples of more hardcore or niche outlets.

l.

Usage Demonstrations (i.e. YouTube)
1.

Official trailers for Clash of Clans are posted on YouTube

2.

There are also thousands of user videos posted for the game by both professionals and individual gamers


They offer everything from strategy-guides, to trailers and gameplay examples

IV. In-Game Contributors to Success
a.

Content Addition
1.

Both Clash of Clans and Hay Day are updated every few weeks with new content


New items 17




New characters



New levels


2.

New in-­‐app purchases

New achievements

They tell players in advance about major upgrades, allowing forums and message boards dedicated to the game start to create a buzz around impending new additions

3.

There is delicate balance between adding too much and not enough new content •

New players can potentially become overwhelmed by hordes of content



Veteran players may feel like new content messes with the equilibrium of the game



Supercell's solution is to only make new content available to loyal players, and bring new players in more gradually before throwing everything at them



"A player coming into Clash of Clans won't see certain functionality for the first two weeks," explains their Product Lead, "and then once they are familiar with the controls, then you can complicate the game a bit, by adding pieces to it"

4.

Supercell has a system in place that keeps the complex game in balance and makes sure any new content doesn't mess around with the inner workings •

An automated testing simulation runs thousands of battles one after the other, throwing in randomly sized armies with different soldier types each time, and then correlates the data to see whether they're an obvious area in which the game can become skewed

b.

Player Retention

18

1.

Players know that if they’re getting bored of the current levels new material will be added soon, therefore retaining users that would have otherwise stopped playing

2.

The game is carefully tested to make sure it appeals to both casual and hardcore players, attracting a wider audience

3.

Player created blogs, forums, chat rooms, strategy-­‐guides and other outlets enable discussion between players •

This serves as a self reliant way for players to have their questions answered without the company needing to get involved



Encourages interaction within community and aids in retaining players that may have otherwise given up due to confusion

c.

Player Marketplace
1.

You can purchase items that help you within the game such as gems which act as currency

2.

Some people are so passionate about the game that they spend thousands of dollars on in-game items

d.

Product Superiority
1.

UI/Gameplay


The user interface is very smooth and engaging, allowing for an easy and simplified user experience



Supercell takes special care to assure that new updates do not change the gameplay too dramatically, so players can continue to enjoy the game they’ve already learned



This is a significant reason so many people enjoy playing
Clash of Clans

2.

Lack of In-Game Advertisements (common in Freemium Model)



Clash of Clans makes so much money on its own that it does have a financial need for in-­‐game advertisements As a result, they chose to avoid them – which is a decision that tests well with all types of players 19






This is particularly appealing for hardcore users, who spend a lot of time playing These hardcore players are also the ones most likely to spend large amounts of money on purchasing in-­‐game items, making appeasing them a profitable endeavor It additionally simplifies the images on screen and allows for more game content to be displayed at once

V. Relevant Statistics


(Per Onavo) iPhone Market Share Historical -­‐ Sep 2012: 1.02% -­‐ October 2012: 1.36% -­‐ November 2012: 1.74% -­‐ December 2012: 2.24% -­‐ January 2013: 2.59% -­‐ February 2013: 2.81% 20

3.00% 2.50% 2.00% 1.50%

Series1

1.00% 0.50% 0.00% Sep-­‐12 Oct-­‐12 Nov-­‐12 Dec-­‐12 Jan-­‐13

Feb-­‐13







App Rank #91 -­‐
-­‐
-­‐
-­‐
-­‐
-­‐

Sept: 219 Oct: 160 Nov: 145 Dec: 107 Jan: 95 Feb: 91

Hi/Low AppStore Ranking 2013 -­‐ Jan: 44/88 -­‐ Feb: 59/85

Snapshot: -­‐ Free-­‐to-­‐play -­‐ Updated Constantly (last update 3/26/13) -­‐ Ability to buy in-­‐game items for real money -­‐ Version: 3.54 -­‐ File size: 44.4 MB

Monthly Active Users – Avg -­‐ Aug 2012 – 42,182 -­‐ Sep 2012 – 162,171 -­‐ Oct 2012 – 278,340 -­‐ Nov 2012 – 416,341 -­‐ Dec 2012 – 547, 991 -­‐ Jan 2013 – 771,494 -­‐ Feb 2013 – 1,030,430

21

-­‐

Mar 2013 – 1,181,373

1,400,000 1,200,000 1,000,000 800,000 600,000

Series1

400,000 200,000 0



Daily Active Users – Avg -­‐ Aug 2012 – 26,757 -­‐ Sep 2012 – 64,365 -­‐ Oct 2012 – 138,113 -­‐ Nov 2012 – 221,617 -­‐ Dec 2012 – 301,485 -­‐ Jan 2013 – 446,723 -­‐ Feb 2013 – 593,788 -­‐ Mar 2013 – 680,906

800,000 700,000 600,000 500,000 400,000 300,000

Series1

200,000 100,000 0

22

Monthly and Daily Active Users 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0

Monthly Daily



DAU as a percentage of MAU – Avg -­‐ Aug 2012 – 63.4% -­‐ Sep 2012 – 42.3% -­‐ Oct 2012 – 49.1% -­‐ Nov 2012 – 53.3% -­‐ Dec 2012 – 55.1% -­‐ Jan 2013 – 57.8% -­‐ Feb 2013 – 57.6% -­‐ Mar 2013 – 57.6%

Daily Active Users as a Percentage of Monthly Active Users 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%



Series1

Weekly Active Users – Avg -­‐ Aug 2012 – 35,331 -­‐ Sep 2012 – 106,004 -­‐ Oct 2012 – 180,740 23

-­‐
-­‐
-­‐
-­‐
-­‐

Nov 2012 – 297,065 Dec 2012 – 407,749 Jan 2013 – 579,821 Feb 2013 – 771,115 Mar 2013 – 885,441

1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000

Series1

200,000 100,000 0

VI. Sources



http://www.appannie.com/app/ios/clash-­‐of-­‐clans/



http://techcrunch.com/2012/11/21/supercell/ http://www.tgdaily.com/games-­‐and-­‐entertainment-­‐brief/66748-­‐supercell-­‐ rakes-­‐in-­‐10-­‐million-­‐a-­‐month-­‐from-­‐the-­‐app-­‐store#!/exjun_ http://bits.blogs.nytimes.com/2012/10/08/from-­‐the-­‐land-­‐of-­‐angry-­‐birds-­‐a-­‐ mobile-­‐game-­‐maker-­‐lifts-­‐off/ •

http://www.arcticstartup.com/2012/10/04/supercell-­‐rovio



http://www.gamasutra.com/view/news/185406/







http://www.arcticstartup.com/2013/01/09/clash-­‐of-­‐clans-­‐meetup-­‐and-­‐the-­‐ supercell-­‐success-­‐formula 24



http://www.insidemobileapps.com/2013/01/10/supercell-­‐generating-­‐1m-­‐ a-­‐day/ •

http://pandodaily.com/2012/11/27/supercell-­‐is-­‐accels-­‐fastest-­‐growing-­‐ company-­‐ever-­‐and-­‐it-­‐has-­‐a-­‐ball-­‐pit/ •

http://deconstructoroffun.blogspot.com/2012/09/clash-­‐of-­‐clans-­‐winning-­‐ formula.html 25

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