Your SlideShare is downloading. ×
0
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Directi Case Study Contest 2010- IIM Shillong Ajax
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Directi Case Study Contest 2010- IIM Shillong Ajax

11,833

Published on

Directi Case Study Contest 2010 submission by Team Ajax from IIM Shillong

Directi Case Study Contest 2010 submission by Team Ajax from IIM Shillong

Published in: Education
7 Comments
7 Likes
Statistics
Notes
No Downloads
Views
Total Views
11,833
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
0
Comments
7
Likes
7
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Directi Case Study 2010 Team: AjAx Institute: Indian Institute of Management Shillong
  • 2. Contents Market Analysis User Insights STP Framework Product Design Marketing Financials Business Risks
  • 3. Market Analysis
  • 4. Internet Users  Indian Ranked 4th globally; 81 mn accessing internet  51 mn active Internet users, inclusive of Mobile Internet Users India – The Internet Story Online Behaviour  97% are regular users and 79% use daily  Average no. of activities undertaken per person: 17  Time spent per week: 1 - 5 hours : 39%, 5 -10 hours : 18%  Websites visited per week: 1- 10 : 58%, 10 - 20 : 28%  42% of the internet traffic between 4 pm to 10 pm Sources: India Online Landscape 2009 Juxt Consult, LivemInt Research, BCG: The Internet’s New Billion A typical Indian Internet User A student/ salaried person in 19-35 years age group living in an Indian Metro/ city accessing the internet for around 5 hours a day for a variety of reasons Projected: 237 mn by 2015 Market Analysis User Insights STP Product Design Marketing Financials Business Risks 79% 21% 38% 44% 78% 30% 30% 36% 66% 49% 9% 7% Male Female 19-24 25-35 Urban Metro Student Salaried Workplace Home Mumbai Delhi
  • 5. Mobile Internet Users  525 million mobile subscribers  127 mn capable of accessing internet  12 mn mobile internet users  Only 2 mn active mobile internet users  Projected Smartphone growth rate for next 5 years is 39%, Mobile Internet users growing at 6% per month  In metros, about 57% of Indian youth access Internet using their mobile phones  70% of the total number of mobile Internet users in India are youth. Mobile Internet Usage Online Behaviour  2 out of 3 access ‘daily’ and 1 in 3 uses it for more than an hour daily  ‘Poor speed’ & ‘affordability’ are the biggest perceptual barriers in higher adoption of mobile internet usage  Soon after Aircel introduced pocket Internet card in May 2009, Google saw a “50X increase in Internet usage on Google Mobile by Aircel customers” Projected : 182 mn in 2015 Mobile: The Future of Internet? With low prices of handsets & 3G in picture, the mobile internet is likely to experience an exponential growth curve in India given that the question of affordability is addressed. Market Analysis User Insights STP Product Design Marketing Financials Business Risks Sources: India Online Landscape 2009 Juxt Consult, BCG: The Internet’s New Billion, Business Standard Feb 2010
  • 6. User Profile for Social Networking Social Networking - India Young, predominately male, school & college going Tech savvy, forms the early majority for adoption of social networks 9.7% of the social networking traffic from Delhi, 6.4% from Mumbai Top 5 sites namely facebook, orkut, LinkedIn, YouTube, Wikipedia ensure captive audience & repeat users Social network users driven by an urge to build & maintain relationships Sources: Livemint Research Market Analysis User Insights STP Product Design Marketing Financials Business Risks Other Insights
  • 7. 3.34 million 19.87 million 20.87 million Shifting Dynamics & Huge Growth! Social Networking - India Sources: July 2010, comScore Market Analysis User Insights STP Product Design Marketing Financials Business Risks More than 33 million internet users in India visited social networking sites, 84% of the total internet audience! India now ranks as the seventh largest market worldwide for social networking! 54.5% of the users visit their social networking sites everyday, once at least With 3.4 mn users, India is the fastest growing for LinkedIn
  • 8. User Insights
  • 9. Some insights from users’ interviews! Why do you use a social network! Stay in touch, just for fun, play games like farmville, try out new stuff! Updated on latest news, real time, follow companies & news channels Share photos, videos, time pass, express myself, check various apps. Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 10. STP Framework
  • 11. User Profiling Need Based Profiling Defining Attributes of the network user Value added to network Information Seekers More concerned with informative content like maps, places, events, updates from friends Scope for monetization & selling a few ‘premier services’ Fun-on-the- goers Loves to play games, check applications, share photos and keep himself busy on mobile throughout transit Heavy users, will bring traffic to the site, will consume new content Reward Seekers Views the network as an ‘online game’ to collect reward points and redeem later for freebies! Mainly gamers. Need investment to retain them, develop value for network Social Media Fanatic Is virtually on every other social network available on the web! Registers & tries out new sites. Downloads Beta versions! Will act as opinion builders as they are likely to be the innovators/ early adopters Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 12. Competitor Profiling Name Started Alexa Rank Offers Available in Facebook Places 2010 2 Friend tagging, advertise your biz US, Canada, Aus Foursquare 2009 555 a friend-finder, a social city guide and a game that challenges users to experience new things, and rewards them for doing so US cities+ some others too Gowalla 2009 5526 Social game + Trips; colourful interface, tells you how far away nearby spots are, no mayorships US Whrrl 2007 32,534 adds a FUN FACT which can be used to learn about the place, neighbourhood and social terrain around, Sifter tool performs keyword searches with criteria (e.g. cheap, open now, baked goods, within 5 miles) US only Loopt 2006 54,456 game, city reviews, photos, Meet new people with similar locations or interests. Saves your most popular locations and choose them rather than re-entering US only Plazes 2004 1,00,903 nokia/ovi users; personalized recommendation system Germany, Philippines?? Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 13. Competitive Positioning Virtual Utility Positioning envisioned for Directi Market Analysis User Insights STP Product Design Marketing Financials Business Risks Real Utility Dynamic Offering Static Offering
  • 14. What are current social network perceived as? What they do not offer right now?  The current social networks do not “make the user do much” (mostly cyber)  They do not give any significant “challenge to perform”  For most of the users, the social networking is “something to do in their free time” Perception Gap Identification Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 15. “Someone creates a viral product that grows like crazy but location isn’t the core feature. It just happens to be part of the bigger whole and as people use it more and more, they realize that the location piece built into it has become increasingly valuable for them.” - Paul (Founder of Meetro, one of the first Location Based Network)
  • 16. Market Analysis User Insights STP Product Design Marketing Financials Business Risks Introducing CatchUp
  • 17. Positioned as Sporty •Plays on the basic motivation to compete. CatchUp is a race to be the best. It is a stress buster & action packed. Real time – Real Utility •It is not just the virtual world of gaming. CatchUp takes the user out of their home to compete, collaborate, share & earn reward. Share, Connect & Fun •Still retains the essence of being fun, cool to have, more of fun-on-the-go. Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 18. Market Analysis User Insights STP Product Design Marketing Financials Business Risks Introducing CatchUp Use of Light Blue to communicate fun & cool aspect Use of orange to signify sportiness Signify the real time & real utility aspect
  • 19. Product Design
  • 20. Exploring The Motivations •Status updates •Checking crowd pulling activities •Exploring the places for going At home • Want to have a check list • Want to plan the itinerary • To do list on the move Just before moving out • Help required • Alerts about locations • Weather, traffic updates • Place reviews On the move • Share the information about place, photos, any other interesting things At the destination •Games •Chatting: •News about crowd pullers A few common things All the needs and desires of “on the move person” can be potentially meet through “CatchUp” Value Proposition: Lets on the move •Profile page •Friends •Wish list Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 21. #1 Smartphone App • To sign up for the service, users must have internet access either on their cell phones or PC/laptops • Smartphone-specific apps would be made available for free download Means of accessing the service For non-smartphone users Market Analysis User Insights STP Product Design Marketing Financials Business Risks The iPhone app for CatchUp Once registered, user can update through • Laptops or PCs using GPS location-validation • SMSs charged at the network providers pre- defined rates, using cell phone towers for pinpointing the location
  • 22. #2 The Welcome Screen Market Analysis User Insights STP Product Design Marketing Financials Business Risks The user would be greeted with the logo and asked to : • Login with existing username and password, or • Sign up for the service Strategies for increasing usage of the Apps • Bundling the app with popular smartphones like the ones by Micromax and Maxx • Making the app available for free on the website • Enabling twitter updates directly from the app so that the app name is included in the tweet
  • 23. #3 Home • Profile photos for easy identification and recognition • Bio giving details of work, hobbies etc. • Accessing information form other networks like Twitter and Google apart from phonebook contacts • Would show their latest updates and locations real time; also list out their reward and points status • Shopaholics, aged 18-30 years specially Online shoppers who like to stay updated on latest trends can photograph an item at a store and upload it with a geo-tag, price, etc. on their Live Streams • Items at an Online store can be added to the list with an easy to use bookmarking tool in the browser • Integration with existing services like wishlist.com also enabled Market Analysis User Insights STP Product Design Marketing Financials Business Risks User Profile Friends Wish lists
  • 24. #4 Sharing • Location is updated using the Check-in tab • Enables collecting special rewards and points for patronizing an establishment • Essentially a Microblogging feature that enables rich content sharing, either directly or through partnered service providers – Photos via Flickr – Music and videos via YouTube, Blip.fm – slides (SlideShare) or documents (Scribd) – Links via Delicious, Digg – Comments via Disqus Search for nearby places Rewards around you Check-in National Museum 122 MG Road 55 m away Café Coffee Day 15 NSC Bose Road 25 m away Mainland China 79 NSC Bose Road 90 m away Market Analysis User Insights STP Product Design Marketing Financials Business Risks Check-In Live Stream Refresh Map Nearby Home Check in Live Stream
  • 25. #4.1 Live Box • To raise and address open Queries! • To seek for some help/clarification. • To share local happenings with fellow catch users. • To come together for some purpose ( like bulk discounts) Objectives in Mind: WHY? Feature Design: HOW & WHAT? • Local Live Box: To shout to catch users in a particular location(say airport) • Global Live Box : To shout to all catch users who are online Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 26. Answer in Live Box = Points • A group of friends/people who come to gather in a local area can create their own shout to talk among themselves to avoid clutter. • An User can local/Global shout about a crowd pulling event ( particular event/celebrity presence in an area). Other Features Feature Design: HOW & WHAT? • When an User posts a query it appears in red and it costs the User some points. • When an User answer the queries it appears in green and the User earn some points. • When an User post about a crowd puller event in a particular locality it appears in Golden and the User earn higher points. Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 27. #4.2 Live Wires! • To seek help for people in case of Emergency situations like accidents, missing kid in a crowd etc. Objectives in Mind: WHY? Feature Design: HOW & WHAT? • When an User Emergency shouts , the shout appears in Emergency Shout box also in local and global shout box in dark black colour “Blinking”. How is ‘Live Box’ prevented from entering ‘Live Wire’? • Posting an Emergency shout costs a lot of points. • User who are in emergency, having lesser points but want to shout, can borrow it from the central catch up reserve and pay back later. • The person who responds back to emergency shout with appropriate help will earn higher amount of points. Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 28. #5 Alerts • To provide alerts regarding the place where the User is in. • To provide alerts regarding the friends of the User. • To provide weather updates and news feeds about the particular locality. • To provide guidance for travelers about a particular location Objectives in Mind: WHY? Feature Design: HOW & WHAT? • User can set and choose the location based alerts he/she needs. e.g. Place, Name of the person, Shops in an area, Tourist spots in an area. • The appropriate location based alerts will flash on the screen of the user when the user is in particular location. Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 29. #6 Plan the Moves • Aimed at meeting the needs of the person just before moving out. • To help the person plan the various trips hangouts beforehand Objectives in Mind: WHY? Feature Design: HOW & WHAT? Itinerary planning • The user can plan the trips and makes it accessible to tagged members. They can suggest modifications, comment or also enable close friends moves accordingly Checklist • This application helps the user to have a must carry list of things, must do things before moving out. Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 30. #7 The Chat Box • Aimed at meeting the needs of the person to talk with friends, find new friends discuss and pass time.. Objectives in Mind: WHY? Feature Design: HOW & WHAT? • A friend list • Updating on the friends and their moves • Friend suggestions based on locations, interests, similar check-ins • Chat conferences • Save feature for chats Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 31. #8 Gaming • Inherent Needs – Egocentrism: profile upgraded at definite milestones – Real life rewards • Network Benefits – Virtual praise and recognition from establishments, other users – Sharing with friends and giving/getting help when needed • Checking in at: – Sports stadia – Movie Theater – Restaurants, cafes – Shopping Malls • Sharing: – Photos, tips, reviews, answering queries • Completing quests: – Participating in treasure hunts – Travelling around the city or the globe Market Analysis User Insights STP Product Design Marketing Financials Business Risks Encourage participation by addressing Earn points through
  • 32. #8.1 CatchUp Miles • To make the user login a necessity • Incentivize the “Check-In” for the user • Increase the “User Lock-In” over time Objectives in Mind: WHY? Feature Design: HOW & WHAT? • The user earns CatchUp Miles on the distance travelled on a day to day basis • Later redeemable in form of freebies, discounts • Bounded by a minimum and maximum per day • Nominal Amount Only; Not the major point earner • Have to redeemed after certain time Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 33. #8.2 Business Offers • To incentivize “on-the-go” behaviour of the users • Provide stimulus for a purchase • Create Monetizing opportunities (say Promoted Live Stream) Objectives in Mind: WHY? Feature Design: HOW & WHAT? • In Partnership with the retail chains on location basis • Static Offers (Redemption of CatchUp Miles), Dynamic Offers (Real time, Limited Period) • Results based on: Location History & Interests selected • Time based offers: Shop within next 1 hour to get 5% off • Quantity based offers: Shop for 5 jeans and get 100 CatchUP Miles! • Loyalty Based offers: Make 100 CatchUp miles every 5 visits to CCD • Food, Apparels, Electronics, Cosmetics, Books etc. Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 34. What the future may look like CP, Delhi Visit us in next half an hour to enjoy 10% off on your take-away! Kathi Kabab You have completed 5 visits to CCD and have 50 CatchUp Miles to spend Café Coffe Day PROMOTED: Visit us for the new arrivals in the section “Mythology” Jain Book Store Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 35. Reward System: It’s a RACE! • Hierarchy based reward system • Projected with the help of four badges • Projected as a system to CatchUp to the next level • Instills a sense of “i-have-to-get-better” in the user • Kept in sync with one of our positioning attribute of sporty! Toddlr Joggr Sprintr Marathonr I have to get better ----------> Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 36. Reward Mechanism Reward Points Inflow - CatchUp Miles - Business Offers - For “LIKED Live Box” - “LIKED Reply Live Box” - “Thanks to Live Wire” Reward Aggregator Reward Points Outflow - Raising “Live Wires” - Redemption for physical / virtual gifts - Asking through “Live Box” Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 37. Marketing
  • 38. Pre-launch Campaign Advertisement ActivationHype Market Analysis User Insights STP Product Design Marketing Financials Business Risks Conducted in three distinct parts: 1. Hype through digital media, tech-magazines and TV reviews, sneak-peeks etc. 2. Consumer activation by associating with identifiable brands, events, people 3. Set of prelaunch video ads on the internet describing possible uses: Consumer learning Initial Cities to be targeted for launch: • Mumbai • Delhi/ NCR Based on Internet & Social Network Usage Data (earlier slides)
  • 39. Launch Campaign Activity: City Based Treasure Hunt [Catch Me if You Can] Objective: To create early adopters Target Groups: College Students & Young Executives Phase-1: On Location - Launch events at various city colleges; Clues at 1 or 2 most visited places in the city - Small freebies with a username/ password in Phase-1 for initial set of people (very large number) Phase-2: Online - Username & password to login into a number of websites with games designed on lines of CatchUp interface - Ultimately, the treasure hunt leads to the website of catchup.com with attractive Prizes for first 1000 logins Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 40. City Marathon: Post Launch Activity: City Marathon Objective: To generate mass awareness & media hype Invitations: To CatchUp users with open invitation to all Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 41. Viral Marketing Market Analysis User Insights STP Product Design Marketing Financials Business Risks Taking off from the pre-launch hype campaign, this would be a continuous marketing effort • The users registered during the City Marathon promotional would form the enthusiastic opinion leaders: Word of Mouth • They would spread awareness (Offline) about the service with the merchandise they won • New set of “fan” videos, with potential viral effect, about the real-life uses of the service released anonymously on the internet: Word of Mouse • Twitter page and YouTube channel for the service would aggregate such videos and other content (hash tags) and encourage such two way interaction • Freebies like extra points and special member discounts at popular stores provide incentives to join for newer consumers and must be introduced from time to time • Periodic release of advertisements on digital media, coinciding with launches in newer cities, with high entertainment value to continue the viral spread of service to newer clusters
  • 42. Financials
  • 43. Monetization Strategies Ads on a click basis Banner Ads & Text Ads Context sensitive Ads based on shouts/activities done Classified Ads When customers search for shops in a particular area, the shops in the area can advertise. Partnering with local Businesses to market their local promotional campaigns online. Generating & Selling customer leads Selling the purchase behavior & places visited by consumers which could be used by companies for customer profiling. Tracking Customers which is a valuable insight for the company. Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 44. Monetization Projections Year1 Year2 Year3 Number of Mobile Internet Users in Delhi & Mumbai( 1.92 2.61 3.55 Expected Market share estimates 0.20 0.27 0.36 Estimated no of Users( in million INR) 0.32 0.59 1.09 Value of the Network (Metclafes law)( in million INR) 0.10 0.35 1.18 Revenue Sub heads Year1 Year2 Year3 Ads on a click basis( Million INR) 1.18 3.24 7.94 Classified Ads( Million INR) 2.00 3.03 4.59 Generate and Sell Leads 4.84 8.88 16.31 Total Revenue( Million INR) 8.02 15.16 28.84 Profit Margin ( 60%) 4.81 9.09 17.31 Initial Investment 22.00 22.00 22.00 ROI 21.86% 41.34% 78.66% 0.00 1.00 2.00 3.00 4.00 5.00 Ads on a click basis( Million INR) Classified Ads( Million INR) Generate and Sell Leads(Million INR) 0 2 4 6 8 10 12 14 16 18 1 2 3 Ads on click basis ( INR Mn) Classified Ads( INR Mn) Generate &Sell leads ( INR Mn) Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 45. Initial Investments Cost Heads INR mn Product Development cost 9.5 Human Resource cost (3 months) 1.125 Marketing & Promotion cost 9.5 Total 20.125 Marketing sub Cost Heads INR mn Advertising 0.7 Events 5.2 PR& Publicity 4 Social Media 0.1 Total 10 8.42% 42.11% 47.37% 2.11% Advertising Events PR&Publicity Social Media 47.20% 5.59% 47.20% Product Development costs Human Resource costs Marketing /Promotion costs Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 46. Business Risks
  • 47. # Risk 1 In the presence of existing location based social networks like Four Square in Mumbai, Can Directi really capture the Market? If Yes How can Directi Dislodge Four Square / Existing players in the market? Source: Strategic Management of Technological Innovation by Melissa A Schilling , Special Indian edition, Tata McGraw Hill company Risk Mitigation Strategy • Directi can Dislodge Four Square by offering a Service with Technology Utility and Complementary services capability greater than Four Square. • The Entry of Directi into the Market is planned so as to mitigate the risk. Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 48. Directi’s Entry - Components of Value Four SquareDirecti’s entry we envision # Risk 2: Facebook Places Tech Utility Comp. Services Tie ups Tech Utility Installed base Comp. Services tie ups Tech Utility Installed Base Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 49. # Risk 2 Threat of New entrants - Smaller players - Bigger players Risk Mitigation Strategy: • Strong Tie ups with Local shops, places and personnel( Complementary services). • In case of Bigger players: – Providing Services such that it doesn't have process/Value fit with the Bigger players1. – he Real utility services that Catch up provide like catch up miles, Live Wire and Local Live box which involve greater details specific to a particular place would be the services that would have less process/Value fit with bigger players Source: The Innovators Dilemma, Clayton . M. Christensen, HBS Publishing Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 50. # Risk 3 Privacy Issues: i. Trust Issue of people with Strangers ii. Misusing the location of a person Risk Mitigation Strategy: i. The Culture of the Network defines the trust issues involved with the Social networking site. Innovators & early adopters will define the customs and culture of the network ii. All features of sharing are customized which prevents a person’s location being broadcasted to others without his consent Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 51. Thank You
  • 52. Appendices
  • 53. Revenue Break Up 1.Ads on a click basis Year1 Year2 Year3 Avg hits every day ( Atleast 50% users log in every day considering its usage)1 0.16 0.30 0.54 Average annual hits 58.87 108.08 198.44 Percentage click on Advertisement 0.01 0.01 0.01 Number of clicks 0.29 0.81 1.98 Revenue /Click(INR) 4.00 4.00 4.00 Total Revenue 1.18 3.24 7.94 2.Classified Ads in terms of shops in a particular area Avg no of shops in a locality ( data needed) in Mumbai & Delhi 100.00 100.00 100.00 Percentage of shops advertising 0.04 0.06 0.09 No of shops advertising 4.00 6.06 9.19 No of localities on avg ( data needed) 500.00 500.00 500.00 Revenue from each classified 1000.00 1000.00 1000.00 Total Revenue 2.00 3.03 4.59 3.Generate & sell leads No of Leads 0.10 0.10 0.10 Average price /lead 50.00 50.00 50.00 No of clients .lead 3.00 3.00 3.00 Revenue 4.84 8.88 16.31 Total Revenue 8.02 15.16 28.84 Profit ( considering 60% profit margin) 4.81 9.09 17.31 Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 54. Cost Break Up Cost Cost in INR Mn Server & Location based system 5 Tie ups with Technology / other partners 2 Developing individual products 2.5 9.5 Cost Cost in INR Mn No of people employed 15 Avg one month salary 0.25 Total one month salary 3.75 Three months salary 11.25 Total Human Resource Cost 30.25 Product Development Costs Human Resource cost Market Analysis User Insights STP Product Design Marketing Financials Business Risks
  • 55. Total Marketing & Promotion Cost Sub Heads Cost in INR Mn 1. Text Ads 0.1 2.Email 0.05 3.Banner Ads 0.1 4. SMS campaign 0.05 5.Multi level Marketing 0.5 Total 0.8 1.Prelaunch party 0.5 2.Events in College & Promotion thro merchandise 1 3. Trasure Hunt Event with a Big prize 1.5 4.Marathon 1 4 Advertising 1. Print media coverage 0.5 2.Local Television in the cities 0.5 3.Signing a celebrity 1.8 4.Hoardings 1 5.Online games 0.7 Total 4.5 1. On Facebook ,Twitter in the respective sites 0.2 Events PR & Publicity Social Media Market Analysis User Insights STP Product Design Marketing Financials Business Risks

×