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©2011 by the Kellogg School of Management at Northwestern University. This case was prepared by Professor Mohanbir Sawhney. Cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. To order copies or request permission to reproduce materials, call 800-545- 7685 (or 617-783-7600 outside the United States or Canada) or e-mail custserv@hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Kellogg School of Management.
MOHANBIR SAWHNEY
Cisco Systems: Launching the ASR 1000 Series Router Using Social Media Marketing
In March 2008 the marketing team at Cisco Systems was putting the final touches on the launch of the Cisco Aggregation Services Router (ASR) 1000 Series Edge Router. The ASR 1000 Series was designed to allow service providers and enterprises to manage the growing volume of resource-intensive integrated data and voice and video data in their networks. The Cisco team was excited about this new product because it cost less than half the price of competitive solutions, cost only a third as much to operate, and used just a fraction of the space that comparable routers did. But perhaps even more exciting was the approach the team was taking for the launch campaign for the ASR 1000 Series.
Suraj Shetty, vice president of worldwide service provider marketing at Cisco, challenged the team to do things differently in launching the ASR 1000 Series. Under the direction of Doug Webster, director of strategic communications, the team had developed an innovative plan to launch the new product “virtually, visually, and virally,” leveraging the new capabilities of Web 2.0 technologies and social media networks. Len LuPriore, marketing manager, was responsible for developing the messaging and positioning strategy, and LaSandra Brill, manager of web and social media marketing, led the Web 2.0 and social media communications strategy.
Brill would employ a wide array of digital tools and social media approaches to create awareness and interest in the new product, completely eschewing traditional print and television media. She was excited as well as apprehensive about these uncharted waters. She wondered if the launch plan would be able to generate the appropriate reach among Cisco’s highly technical target audience and change perceptions of the media and the broader market. She also wondered whether the launch tactics would be able to effectively convey the value proposition for the ASR 1000 Series and whether the portfolio of digital channels and tactics she had planned were appropriate for the product and the goals of the launch campaign.
Background of Cisco Systems
Cisco Systems, Inc., founded in 1984 by a small group of computer scientists from Stanford University, was the worldwide leader in networking for the Internet. As networks became an essential tool for enabling business, education, government, and home communications, Cisco’s networking solutions had transformed how people connect, communicate, and collaborate. Cisco’s hardware, software, and service offerings were used to power networks used by individuals, enterprises, service providers, and governments. Cisco’s brand had become strongly
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associated with delivering networking solutions for the Internet, collaboration, Internet video, and productivity improvements that Internet-based technologies provided to individuals, companies, and countries.
By the end of 2008, Cisco had grown into one of the world’s most successful technology companies with almost 68,000 employees worldwide. In fiscal year 2008, Cisco reported sales of $39.5 billion, an increase of 13 percent over the previous year, and a net income of $8.1 billion.
Marketplace Trends—Rising Demand for Edge Traffic Handling
The corporate workforce was becoming increasingly mobile and distributed. People were traveling, telecommuting from home, or working from remote brand offices. All these workers needed to access data from corporate headquarters at any time and from any place, placing increasing demands on the “edge” of the network. Further, Web 2.0 collaborative tools— including team and group collaboration applications such as TelePresence and WebEx, shared document storage applications, audio conferencing, video conferencing, and IP television (IPTV)—were becoming more widely accepted. These applications created a requirement for consistent and enhanced end-user experience and prioritization of these applications over other network traffic. For instance, a video call needed to be handled with higher priority than a data transmission because video was delivered in real time, and if video packets were subject to delays the quality of the user experience suffered significantly. Further, the network needed to keep up and address these ever-increasing requirements intelligently and securely.
The growth in the variety, complexity, and intensity of voice, data, and video applications delivered over wide-area networks had resulted in a need for greater bandwidth at corporate headquarters. According to a November 2007 survey by global marketing intelligence guru IDC, more than 70 percent of corporations stated that they expected to increase their bandwidth requirements, with 43 percent expecting an increase of more than 20 percent in the next twenty- four months. This was the market gap that the ASR 1000 Series aimed to fill.
The Cisco Aggregation Services Router 1000 Series
The Cisco ASR 1000 Series was a new category of compact, purpose-built edge router that offered significant improvements in capital costs, operating costs, and space while maintaining industry-leading performance and reliability (see Exhibit 1 for the specifications of the ASR 1000 Series). Flexible, efficient, and cost-effective delivery of complex “anyplay” services that included voice, video, data, and mobility were developed to engage service providers. Unlimited access to applications was developed to engage enterprises by addressing the wide-area network edge as a mechanism for converging information, communication, collaboration, and commerce.
One notable aspect of the ASR 1000 Series was its use of software virtualization to render obsolete the use of multiple single-function appliances in addition to a router and replace them with “instant on” provisioning and simultaneous use of a wide range of service functionality. This new capability streamlined the capital costs, operations expenses, and carbon footprints for users. Cisco’s new QuantumFlow Processor (QFP), the industry’s first fully integrated and programmable processing engine, drove the ASR 1000 Series. The QFP offered higher performance, scalability, and flexibility because it could be retasked to meet evolving network
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requirements. It also featured Cisco IOS® XE software, a virtualized Cisco operating system implementation optimized for compact routers at the edge of networks. Cisco had invested $250 million over more than five years in the research and development of the ASR 1000 Series, including $100 million for the QFP.
Customers validated the need for the ASR 1000 Series. According to Shin Hashimaoto, an executive vice president at Nippon Telegraph and Telephone Corporation:
Next Generation Networks will enable a broad range of services in a wide variety of combinations, many requiring high-quality, high-definition, bidirectional communication to meet customer demands. In contrast to conventional best-effort approaches, we believe it will be necessary for the edge of network to perform dynamic quality control to flexibly and securely enable aggregation of traffic from broadband services and converged communications. The Cisco ASR 1000 Series is expected to provide the functions essential for such IP NGNs in a flexible and scalable manner, with the high availability that we and our customers demand.
Similarly, Bardo Werum, vice president of cross-industries and operation at Lufthansa Systems, noted:
We operate IT systems for our customers that are critical for their core business processes. So nonstop operations are extremely important for us. We are witnessing an increased demand on highly secure, scalable, and reliable IT infrastructure services. The Cisco ASR 1000 Series helps us meet those demands. For example, the “in-service software update” feature offers great improvements towards nonstop operations.
The Cisco ASR 1000 Series also enabled service providers and enterprises to reduce their carbon footprint. According to Cisco, a single ASR 1000 Series router could save the equivalent carbon emissions of up to seventeen tons of coal annually (or upwards of eighty-nine barrels of oil). As Pankaj Patel, senior vice president and general manager of the service provider group summarized, “Any comparable configuration would not only cost much more, but require more rack space, consume more power, and require additional blades or network appliances in order to equal the capabilities that are already integrated into this compact, multipurpose router.”
Launching the ASR 1000 Series
In launching the ASR 1000 Series, Cisco decided to “eat its own dog food” by promoting the product over the very digital networks it was designed to enable. As Brill put it, “we wanted to involve the Human Network by using Web 2.0 and video to create buzz and build a community that is passionate about Cisco products.” The mantra that Cisco adopted was to launch “virtually, visually, and virally—and green.” The launch of the ASR 1000 Series would be virtual in that the launch campaign would solely employ digital media channels for marketing communication, with zero spending in traditional media such as television or print magazines. This would be the first time a launch of this magnitude would take place completely online and not rely on a live physical event like a tradeshow. Second, the launch would emphasize rich media, with the heavy use of videos and interactive multimedia games to engage prospective customers. Finally, the launch campaign would emphasize viral marketing and aim to build communities of enthusiastic technology “über users” who would be influential in spreading the word about the ASR 1000 Series.
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The logic for using digital media to build communities and promote the ASR 1000 Series made sense for two reasons. First, social media had swiftly become one of the most important trends in media evolution, evidenced by the following facts as of the end of 2008:
Video-sharing site YouTube accounted for almost 10 percent of all Internet traffic
Five of the top ten websites were social networks
More than 100 million blogs were in existence
120,000 new blogs were being launched every day
1.5 million postings were being made to blogs every day
Beyond these trends was the philosophical shift in the approach to marketing in a Web 2.0 world. The themes of this new approach included the following shifts:
From one-way communication to a two-way interactive dialogue
From launch events to building sustained relationships with customers
From building websites to building communities
From advertising as interruption to advertising as integration with the viewers’ context
From synthetic (marketer-generated) content to organic (customer-generated) content
From being in your domain to being everywhere your customers were on the web
Because the ASR 1000 Series products and the Cisco brand were “native” to the Internet, it was a natural fit to integrate these themes into the launch campaign for the new router. Accordingly, the Cisco team decided on the following goals for the launch campaign:
Increase awareness and interest in the Cisco ASR 1000 Series among both business decision makers (BDMs) and technology decision makers (TDMs) who worked for service providers or large enterprises
Create a “cool factor”—show the “fun” and human side of Cisco Systems
Deliver an online-only launch that would build and sustain over time
Increase Cisco’s “share of voice” online
Digital Tactics for the ASR 1000 Series Launch
Based on these campaign goals, the launch team decided to use a comprehensive array of Web 2.0 and social media tactics to connect and communicate with prospective customers. These tactics included:
A microsite featuring teaser videos directed at the early adopter technical audience to help create and spread buzz
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Videos on the microsite also posted to YouTube through an “über user channel” to expand reach
A “social media press release” to reach bloggers and to fuel buzz
A social media widget containing a collection of key videos, documents, and images that could be easily shared with other users via an embed code
A Facebook group to reach the technical audience that was already part of that network
An interactive 3-D game called Edge Quest to attract the large gaming audience within the IT community
A presence on the virtual world Second Life that included a countdown calculator and a pre-event live concert to generate buzz
A set of interactive tools for customers to quantify the value proposition of the ASR 1000 Series, including a total cost of ownership calculator and an environmental impact calculator to estimate the reduction in carbon footprint by using the new router
An “Ask the Expert” discussion forum where customers could talk to the engineers who developed the product
All these activities took place within a three-month timeframe, beginning one month before the March 4, 2008, launch and continuing into April 2008. See Exhibit 2 for a timeline of the launch activities.
Microsite for Über Users
Cisco partnered with the advertising agency Ogilvy Public Relations to launch a microsite three weeks before the March 2008 introduction of the ASR 1000 Series. The site was launched with a teaser message that did not reveal what new product Cisco was launching, but only hinted that the network would get “better for everyone” (see Exhibit 3). The site featured satiric videos where “über users”—instead of real users, characters such as Santa Claus and the Easter Bunny— solve their problems with the new router. The site was aimed at teasing the audience, and it had a social sharing feature that was designed to spread virally. According to Doug Webster, “Our audience is not used to seeing us in a humorous way—we’re a very serious company. Because this campaign was going to set the stage for new rollouts in our series of Edge products, the senior execs wanted to create a bit of a following.”
Videos
Cisco also posted the videos it created for the microsite on many video-sharing sites, including YouTube, Yahoo Video, Google Video, and Veoh (see Exhibit 4 for a screenshot of the YouTube video channel). By January 2009, Cisco had received about 2,000 views on YouTube.
Social Media Release
Cisco used a “social media release” to spread the word about the website and other aspects of the campaign. These included a Facebook application and group, as well as a widget featuring
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videos, collateral, and images that could be easily embedded into blogs or websites. As Webster observed, “A social media release is more to the point than a traditional press release. It’s intended to quickly inform bloggers.” The social media release was picked up by several bloggers and media outlets, and a search on the “Cisco ASR 1000 Social Media Release” showed more than 1,300 hits on Google.
Social Media Widget
Cisco also created a social media widget for the ASR 1000 Series. Social media widgets were small applications designed to provide quick access to specific content or functionality that could then be easily embedded onto other sites or blogs. The ASR 1000 Series widget featured a rich collection of information about the new product, including videos, images, resources, and a “What’s New” section that offered updated news and information about the ASR 1000 Series (see Exhibit 5 for a screenshot of the social media widget). The social media widget was designed to be easily shared, and allowed customers to view information about the ASR 1000 Series without navigating to the Cisco website. Cisco reported that the video widget was viewed 35,000 times within a month of its release.
Facebook Community
To build a community around the Cisco ASR 1000 Series and to drive prospective customers to register for the launch event, Cisco created a Facebook community called the “Cisco Support Group for Über User Internet Addicts.” This tongue-in-cheek community aimed to present the fun side of Cisco and highlighted the key features of the ASR 1000. The Facebook community site went live on February 27, 2008, and attracted 546 users. After the launch, the community was maintained as a channel to communicate with customers. Among the discussion threads, the most popular was the user-generated list of entries that community members submitted to be considered in the “Top Twenty Signs of an Internet Addict” list.
Edge Quest 3-D Game
Cisco’s research suggested that the IT professionals that the company was trying to reach spent a fair amount of time playing online games, so Cisco decided to create a special game called Edge Quest (see Exhibit 6 for a screenshot of the game). According to the Cisco website, the game allowed players, or “agents,” to maneuver a router craft through different levels to defend the network edge from a variety of service demands. Players gained a greater understanding of the powerful QFP and were guided on their quest by “Edge Commanders,” who were avatars of the Cisco executives who had developed the platform. The goal of the game was to reveal the ASR 1000 Series value proposition by enabling players to virtually experience the benefits of the product through simulations that underscored the traffic prioritization, intelligence, security defense, speed, and scale now available at the network edge.1
1 Cisco Social Media Release, “Cisco Announces Winner of Tournament of Aces: Champion to Receive $10K and Cisco ASR,” http://newsroom.cisco.com/dlls/2008/prod_072408.html.
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The Edge Quest game was an innovative way for Cisco to communicate with its customers. According to Webster:
The game allowed Cisco to engage with our customers in a uniquely interactive and entertaining way while showcasing the unique, innovative capabilities of our new Cisco ASR Series of routers. The interest and enthusiasm we saw from players for the Cisco Edge Quest Tournament of Aces far exceeded our expectations and ultimately demonstrated to us that our customers and the market were indeed receptive to seeing Cisco take a more nontraditional approach to marketing.
More than 40,000 people participated in the game. The winner of the Tournament of Aces 24- hour, winner-takes-all “final round” that took place on June 19, 2008, was Etvino Rogelio Medina, a network administrator for Omnilife de Mexico in Guadalajara, Jalisco, Mexico. He won $10,000 and an ASR 1002 router valued at approximately $35,000.
After the launch, Cisco refreshed the online game with a new tournament version featuring four new playing levels that added new challenges for players to continue testing their skills and knowledge of the benefits of the ASR 1000 Series routers.
Second Life Presence
Cisco also determined that a significant proportion of its target audience were subscribers to Second Life, a 3-D virtual world where users could socialize, connect, and create using voice and text chat. In addition, more than 1,000 Cisco employees were on Second Life and commonly used the virtual venue to meet and chat with customers and partners. To reach users in Second Life, Cisco created a pre-event Live Concert, a Live Launch Event, and a Virtual Press Briefing on the day of the launch (March 4, 2008), with in-world “social press interviews” with Cisco executives and a game that allowed users to board their personal transport devices and surf through the ASR 1000 Series router (see Exhibit 7 for the event timeline in Second Life). The goals of the Second Life presence were to appeal to the technical audience using new “cool” means, to demonstrate the ASR value proposition through a virtual experience, and to drive the audience to register for the launch event. After the launch, Cisco continued its presence in Second Life with virtual TechChats with senior Cisco technical executives.
Interactive Web Tools
To quantify the economic value proposition of the ASR 1000 Series, Cisco also created two online calculators—the total cost of ownership calculator, which allowed customers to calculate competitive price comparisons, and the environmental calculator, which allowed customers to determine the carbon footprint of the ASR 1000 Series and the energy savings they could get by replacing their existing routers (see Exhibit 8 for screenshots of the calculators). The calculator tools had two objectives: to engage customers through interactive experiences and to demonstrate two key elements of the ASR 1000 Series value proposition—its lower total cost of ownership and smaller carbon footprint.
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Communication Through Cisco Blogs and Forums
Cisco executives were also active on Cisco blogs to communicate with prospective customers. The blogs sought to intrigue bloggers and customers, encourage viral pick-up of the messages, and lead the audience to register for the launch event. A unique aspect of the blogs was the intensive use of video interviews with Cisco executives, including Pankaj Patel.
Cisco also tapped into its popular Networking Professionals technical community by seeding forums with discussion topics about edge routers to encourage communication between customers and Cisco experts. The company also created an “Ask the Expert” forum in which customers could interact with and ask questions of the senior developers who had created the ASR 1000 Series.
Follow-the-Sun Online Launch Event
The Cisco ASR 1000 Series was formally launched online via a live event broadcast around the world starting at 9:00 a.m. (PST) in the United States, Canada, Latin America, and Western Europe; 6:00 p.m. (PST) in Japan and China; 9:00 p.m. (PST) in India; and midnight (PST) in Central and Eastern Europe, the Middle East, and Africa. The live launch event aimed to showcase the high priority of the announcement of the new product by Cisco. All the digital media tactics prior to launch were designed to drive traffic and maximize attendance for the live launch event. In addition to the live launch event, Cisco leveraged its TelePresence high- definition videoconferencing solution to allow interested parties to “continue the conversation” with Cisco executives just as they would if it were an in-person event. Cisco’s field sales organization was encouraged to invite customers to the TelePresence sessions after watching the launch event to discuss and learn more about the new series. The objectives of the events were to translate interest into sales engagements and to demonstrate Cisco’s commitment to “walk the talk” by providing opportunities for executives to dialogue with customers and emphasize the ASR value proposition in person. Cisco reached more than one hundred countries through this approach.
Lessons Learned
The ASR 1000 Series launch was judged by Cisco to be a very successful campaign, based on its reach, richness of customer interactions, and the significant cost savings relative to a traditional campaign using mass media. More importantly, the campaign had proven to be a turning point for the way Cisco took products to market: “virtually, virally, and visually.”
Along the way, Cisco learned several important lessons:
Fish where the fish are—Cisco reached out to its technical audience through unconventional channels such as a virtual game and Second Life. These channels, though not mainstream, were heavily frequented by technical audiences. In contrast, the Facebook community got limited traction as it was relatively less popular among this audience.
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It was OK to show the human side of Cisco—B2B companies generally took a serious and rational tone in their advertising and messaging. Cisco bucked this trend by taking a lighthearted, tongue-in-cheek approach to the launch of the ASR 1000 Series. This worked well up to a point. Some of the teaser videos were funny, but it was not clear how effective they were in generating interest in the new series.
Avoid hidden costs—When it came to social media marketing, sharing everywhere was important. It was important to ensure royalty-free access to videos so content could be repurposed without reservation.
Test, test, and test again—The social media widget was a new and untested idea, so ensuring that the embed functionality worked and was measurable took much longer than expected.
Emphasize user-generated content—The user-generated content was the most popular on the Facebook site. The discussion “Top Twenty Signs You’re an Internet Addict” got the most traffic and attention.
Not everything will work—Cisco created multiple contests in the Edge Quest game. Some were successful, but others were not. For instance, the ASR Design Craft contest was not successful because the promotion for it was overshadowed by the promotion of the Tournament of Aces.
Conclusion
The marketing team at Cisco had decided to adopt a nontraditional approach to launch and promote its ASR 1000 Series router. With users becoming increasingly web- and social media- savvy, Cisco had decided to eschew traditional marketing tactics in favor of a digital campaign leveraging the power and reach of social media channels such as YouTube and Facebook, as well as online games, blogs, and forums to intrigue its target audience.
Although LaSandra Brill was pleased with the results of the campaign, several questions remained in her mind. What could Cisco have done better? Would this approach to using social media marketing work for all Cisco product launches, or was this a one-time deal that worked because it was so novel? How could Cisco continue the engagement with the community it had built after the excitement and flurry of activity surrounding the launch died down? How could she measure the return on investment from the campaign more precisely on a comparable set of metrics?
Cisco had blazed a new trail with the ASR 1000 Series launch, but the marketing team empathized with Sir Isaac Newton, who, having discovered the laws of motion, commented that he felt like a child “playing on the sea-shore” while “the great ocean of truth lay all undiscovered before me.”
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Exhibit 1: Specifications of the Cisco ASR 1000 Series Routers Chassis Embedded Services Processors Route Processor SPA Slots
ASR 1002 Scalable to 10 Gbps ASR1000-ESP5 (single) Integrated 4 GB memory 3
Software redundancy ASR1000-ESP10 (single)
Four built-in gigabit Ethernet ports
5 Gbps or 10 Gbps
ASR 1004 Scalable to 40 Gbps ASR1000-ESP10 (single) ASR1000-RP1 (single) 8
Software redundancy Scalable to 10 Gbps+ 2 GB or 4 GB memory
ASR1000-ESP20 (single)
Scalable to 20 Gbps+
ASR 1006 Scalable to 40 Gbps ASR1000-ESP10 (single or dual) ASR1000-RP1 (single or dual)
12
Hardware redundancy Scalable to 10 Gbps+ 2 GB or 4 GB memory
Source: Cisco Systems website.
Exhibit 2: Timeline for the Launch of the Cisco ASR 1000 Series
Source: LaSandra Brill, “Building a Community with Social Media and Web 2.0,” Cisco presentation, July 2008.
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Exhibit 3: Teaser Advertisement for Network Über Users Site
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Exhibit 4: YouTube Videos for the ASR 1000
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Exhibit 5: The Video Widget for the ASR 1000
Exhibit 6: Screenshot from Edge Quest Online Game
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Exhibit 7: Event Timeline for Second Life
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Exhibit 8: Total Cost of Ownership and Environmental Impact Calculators for the ASR 1000
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Appendix: URLs and Links for the Cisco ASR 1000 Series
Cisco’s ASR 1000 Series website:
http://www.cisco.com/en/US/products/ps9343/index.html
Edge Quest Game:
http://tools.cisco.com/GCT/PCTPST/game_public/CiscoGameMCP.jsp
YouTube Community:
http://www.youtube.com/user/uberusers
Total Cost of Ownership and Environmental Impact Calculators:
http://www.cisco.com/cdc_content_elements/flash/netsol/sp/tco_calc/asr_bustool_Ext.html
Flickr
http://www.flickr.com/photos/9204105@N07/2298973391/
https://twitter.com/CiscoSP360
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