MAGISTER MANAGEMENT UNIVERSITAS GADJAH MADA, INTERNATIONAL 1

SYSTEM INFORMATION TECHNOLOGY

Prepared By : Agung Santoso
No
: 15/391874/PEK/21320

ROCK ISLAND CHOCOLATE COMPANY, Inc

BUILDING A SOCIAL NETWORKING STRATEGY

Case Summary
Rock Island Chocolate Company Inc (RICC) is a Belgian style chocolate company that have
been founded by Seymour Burris, Jr in 1997. RICC business is very successful which is they has
been reached $10,600,000 sales and $2,000,000 profit in 2009.
The Issues
Burris feels guilty with the content of some Blog that says nasty things about RICC, whereas
they will raise their capital through Venture Capital funding soon. Burries tried to solve the
problem with called their Director of Information System, Charlie Tunista, He told Charlie to
looking in all of the Social media about the negative issues that making some ideas to dealing
with such issues.
After the meeting with Venture Capital, the representative Investor is stressed that RICC could
make $50mio revenue rather than $20mio as presented by Burris if the marketing and brand
building of RICC done correctly. It means Burris must thinking how to reached $50mio if he
want the equity injection by Investor.
Problem Behind Issues
When Charlie doing a the research , he find the information about social media networking
strategy in the Internet. They have the survey that say over two-third of online shoppers using
social media sites and over 50% of customer reported that they also participate in social media
web sites as a friend, follower, or subscribe to at least one retailer.
Charlie thinks that this is a good opportunity for them to make the the social networking strategy
and making a deeper research. The result of the Charlie research is as follows :
1. Hiring a large accounting company to design and implement a social networking strategy
was over $100,000, with annual recurring costs estimated at over $100,000
2. Helping employees deals with the customer
Customers service employees can benefit from the use of microblogging, as well as
massaging and chatting technologies built into some of the social media. These approach
help those employees who need to respond the inquiry and get in immediately contact
with subject matter experts so as to get the right answer right now.
3. Building brand awarness and increasing sales

Participating actively in facebook or other sites absolutely essential to help build the
brand and drive sales. These sites have the possibility of building buzz about the
Company.
4. Helping customers and business partners
The customer and business partner could kowing about the product, promo, discount and
product that provide by the Company and interact quickly
5. Conducting online market research
RICC could also using social media to get the market respond about new product and
helping what the people wants about the product.
6. Knowing RICC and Competitor issues and provide quick respond
RICC also aggresively track what is hapenning on blogs and social media sites regarding
RICC and the steps to deal with negative comment about the firm.They also can track
what it hapenning to competitors, and sometime may even help extend negative views
about other companies.
What is the Casses Taking About
This cases taking about social social media networking strategy. Despite of the high costs, social
media is a powerful tools to interact with customer and building brand awarness and they also
could use for free market research and using as a business intellegence.
Although RICC has a website, this is not easy to make the people knowing about their product,
with the social media, RICC sales will be boost faster due to their customer friend in social
media possible to know the product from him (maybe from like, subscribe or share the
information about the RICC.
Moreover, RICC could advertise their product from social media like facebook. They have data
which is the people that like chocolate and they could displays advertising for the chocolate lover
with specific area, so they could save for their advertising costs.
Recommendation (Pro & Cons)
In this casses, i will not say cons due to the social media as a marketing strategy is mandatory,
especially for the Company that will ekspand and looking for the greater market.
Based on the Charlie research, they have alot of advantage rather than disadvatage using social
media. Furthermore, i think that the cost for social networking strategy not as expensive as that
and could be reduce according to the needs.