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Directi Case Study Contest 2010-IIML Streetsmart
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Directi Case Study Contest 2010-IIML Streetsmart

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Directi Case Study Contest 2010 submission by Team Streetsmart from IIML

Directi Case Study Contest 2010 submission by Team Streetsmart from IIML


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  • directi and competitions ? I dont think the bosses sitting in mumbai , care about announcing prize winners and then awarding prizes

    reference : Finals , Campus presentations , Across IIM's
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  • 1. Indian Online Media & Social Networking Source: India Online Landscape Report 2010, Juxt 94% 72% 56% 56% 55% 54% 52% 50% 50% 50% Online activities of Indian Internet user Indian Internet Usage Statistics Number of actibe Internet users 51 mn Urban user base 40 mn Rural user base 11 mn % of Indians with internet access 4.40% Mobile internet users as % of internet users 25% Daily users 79% % of household with internet access 10% % of internet households with multiple users 66.67% • Over half of internet users are employed, half of whom are corporate employees • 2/3rd of those employed are head of the household • 25-35 years forms the single largest age group among internet users • Average claimed monthly family income is 3 times the national average • Female user-ship inching upwards, housewives as a user base starts emerging Internet user profiles in India
  • 2. India: State of Social Networking 0 5 10 15 20 25 20.87 19.9 4.32 3.5 3.34 3.26 3.2 2.96 1.8 1.55 Subscriberbaseinmns Top SN site in India with user base India Total Unique Visitors (000) Jul-09 Jul-10 % Change Social Networking 23,255 33,158 43 Facebook.com 7,472 20,873 179 Orkut 17,069 19,871 16 Bharatstudent.com 4,292 4,432 3 Twitter.com 984 3,341 239 Zedge.net 1,767 3,206 81 Ibibo.com 1,562 2,960 89 Yahoo! Buzz 542 1,807 233 Shtyle.fm 407 1,550 281 Growth of SN sites in India Insight Social Networking has exhibited tremendous user base growth in India with Facebook’s popularity soaring to overtake Orkut as India’s no.1 Social Network % reach of web population Average Minutes/ Visitor/month Average Visits/ Visitor/month 68.5 130.1 13 Facebook 48.6 167.2 17 Social Networking Stats Insight The time spent on social networking and frequency of access id still low in India but is going to increase in future Demographics Indian SN user base Age group 15-24 (48%) 25-35(26%) Education High School or less (14%) Pursuing graduation (26%) Graduate (32%) Gender Male (80%) Female (20%) Income < 2lakhs (59%) 2-6 lakhs (25%) Source: comScore
  • 3. India: State of mobile internet & smart phones Facts about mobiles & smart phone Total mobile Phones 471 mn Number of Smart Phones 8-9 mn Internet Capability 127 mn Mobile Internet users 12 mn Y-o-Y unique user growth of mobile internet 40.8% Y-o-Y page view growth of mobile internet 402.8% Smart phones as % of total phone sales (2010) 5.25% Smart phones as % of total phone sales (2014) 18% Quarter-on-quarter growth of smart phone sale 6-10% Insight India has a decent smart phone user base & the user base has a healthy future growth 60% 2% 7% 23% 8% Active Internet Users using Mobile Internet Communication Ecommerce Entertainment Info Search Online Services 11% 35% 33% 10% 7% 3% Active Internet Users using Mobile Internet School going kids College student Young men Older men Working women Non-working womenSource: I cube 2008, IMRB Syndication Insight • Most active internet mobile user segment is college student aged b/w 18-24 • Mobile Internet usage among women is still very low in India • Any new SN service must appeal to the young Indian male to grow its user base • College going students in India are quite tech savvy and follow tech trends actively
  • 4. Great potential for Indian brand promotion on SNs 0 50,000 100,000 150,000 142,060 89,945 33,515 26,286 23,307 20,556 18,859 16,492 15,065 13,693 10,793 8,821 Top Indian Brands on Twitter (with followers) 0 200,000 400,000 600,000 800,000 1,000,000 853,286 729,782 547,770 414,938 401,340 385,752 367,364 324,977 322,962 299,214 264,091 263,826 Top Indian Brands on Facebook (with followers) InsightGreatpotentialtoleverageSNtopromoteIndianbrands Source: comScore
  • 5. Insight Status of US Location based Social Networks 56% 12% 8% 8% 6% 5% 4%1% A couple of times a week Once a day Every hour A couple of times a month 31% 30% 26% 13% Frequency of "check-in" 0% 20% 40% 60% 80% Home Work Restaurants Gym Events 77% 16% 3% 2% 2% “Check-in” locations Usage pattern is healthy and people are using the location aware apps Insight Users are not using these apps on the go or outside. Need to make apps more engaging to encourage users to make use of location based features 7% 30% 22% 22% 19% Age profile of users >=55 35-54 24-25 18-24 13-17 Insight More popular among older age group of 24-54 than among teens may not have freedom to move about around city as much Source: Report from myxer
  • 6. 0% 10% 20% 30% 40% 50% 60% Not Interested My phone doesn't have the ability Privacy concerns Other 56% 23% 14% 7% Reasons for not using a location based SN 45% 31% 18% 6% Number of location based services used 1 2-4 5-6 >6 Insight Unlike common perception, privacy is not the top concern regarding the non-use of these services. The larger majority (56%) say they're simply "not interested." This engagement hurdle is what location-based applications and games have to overcome. 58% 42% Primary Reason for use Share your location with their friends Finding locations of friends 0% 20% 40% 60% 80% Using apps more than before Decreasing their use 74% 27% Trend in usage of apps Status of US Location based Social Networks Source: Report from myxer
  • 7. Location based SNs: Opportunities & Challenges in India Scenario of location aware services in India • Social Networking is growing at a tremendous pace in India. Segments such as non working women with low current user base share are also growing exponentially • Mobile internet has a large user base of 12m. India is the 2nd biggest consumer of mobile internet after US with highest growth rate in the world. Mobile Internet Penetration is higher than broadband penetration & is also growing at a much higher pace. • GPS usage is low in India but usage is growing at a high pace and many GPS service providers are offering services in Indian cities. Also, alternative location tracking technologies like cellular triangulation are being offered by firms. Opportunities • SN is growing but frequency of usage is still low with a high % of users only accessing once/week. E.g.: 23% of Twitter users in India have registered but never twitted. • Same trend exists in mobile internet usage also with only 2 out of 12mn are active users. • There are issues of software compatibility and quality of GPS and other location services in India • Low numbers of smart phones in India is an issue as most location aware apps work only for smart phones like iphones, android phones, etc Challenges Essentials for any location aware app 1. App must be engaging enough to appeal to India users to ensure high usage levels, so it must be designed to cater to Indian tastes and needs. 2. A location based app can not be build exclusively to run on smart phones. It must be designed to run smoothly on medium range phones. Also some features using only SMS has to be developed to cater to low end phones. 3. The service must offer strong incentives in form of rewards like coupons, free gifts ,cash redeemable points, etc in order to ensure that users just don’t stop using the service after registering for it.
  • 8. Existing feature set: location aware Social Networks Add messages, photos, videos Check-in to a location Locate your friends Leave tips, ratings, reviews about places visited Status, photos & videos automatically uploaded to Facebook, Twitter a/c Share status with friends Receive badges & medals Communities Form location-based communities Share schedules within community Targeted promotions, games for communities Places, Promotions & Coupons Info about surroundings such as ATMs, bars, restaurants, gas stations with ratings, reviews, prices, distance Tie ups with stores, restaurants, bars to offer discounts, coupons to users Tie ups with firms to location based promotions of brands or products Share reviews within community
  • 9. Existing feature set: location aware Social NetworksGames,Utilities,Recommendations Recommend new locations to visit based on past activity & what's popular at the moment Entire SN around games like completing challenges at each check-in(scvngr), monopoly using real places (myTown) Recommend new friends based on common interests such as same locations, type of places visited (bars, theatres, etc) Utilities such as listing of nearby taxi services with tariffs, ratings, reviews; booking of tables at nearby restaurants Recommend cool local places, events, things to do, and great deals, even coupons and special offers Tag the friends to be a part of your update Locate your nearby friends on map Pull in contacts from Facebook Interact with friends Browse status updates of friends checked in Facilitating face-to-face interaction with friends by providing directions to reach nearby friends Push notifications on your mobile in form of free text messages alerting you when your friends check in anywhere even if app is not running
  • 10. Great potential to offer new features in an Indian location based SN to fill gaps in existing feature set Checked-in friends can only interact by sharing status updates & uploading video, photo to web & SNs like Facebook over GPRS/3G Offer new ways for friends to interact to Increase engagement levels b/w SN users Develop a feature in your SN app to enable users to chat, download photos, videos from friends’ mobile when nearby No games, trips, promotions, etc designed specifically for the Indian market Offer content designed to engage the Indian user base Develop games, trips for the Indian market. Tie up with Indian businesses for product promotions Lack of an easy way to create schedules and share schedules with friends and within community Offer an easy way to create and share schedules to build a thriving SN Provide a calendar feature similar in look & feel to MS Outlook to enable users to create & share schedules Analytics of past user data such as locations frequented, favourite recreation, etc not used enough to provide better recommendations Offer relevant recommendations of events, places, etc based on interests of users Employ data analytics extensively to gauge likings of users to make relevant suggestions and also for lead generation Gaps New FeaturesPotential
  • 11. A new location based SN with a difference for Indian market Browse content on your friends’ mobile & download free of cost Embark on a trip of your city & discover best eating joints historical marvels &much more Create & share schedules with friends Notifications of latest events like food festival, new play, etc in your city Receive best recommendations of places, activities & friends based on your past activity & what’s hot now Services to help out in any emergency like flat tyre & also to suggest transportation options
  • 12. Feature set of our location based service • Concept of check-ins to locations. Sharing updates with friends & uploading videos, photos of a place • Powerful notification systems to inform you when someone of interest is nearby • Leave tips, ratings, reviews about a place. Receive information about surroundings like ATMs, bars, theatres, events, etc • Very strong incentive systems such as discounts, coupons, etc to ensure popularity of the app • Privacy settings to allow users to control level of detail to share Common Features: Also offered by other location aware apps Must have features Nice to have features • Push notification system to update your location even when the app is not opened & phone is in your pocket • Hook into popular SNs like Facebook, Twitter to share updates, upload videos & photos with web at large and pull in contacts • Game like features such as receiving badges, medals, power ups or ownership of the virtual place • Utilities such as listing of nearby taxi services with tariffs, ratings, reviews; booking of tables at nearby restaurants, etc • Allowing users to form communities based on common interests New Services Offered: Our app to be positioned as Indian app for Indian users Calendar service for users to create schedule of next week or month’s activities along with locations & share with friends, community or everyone Push notification of upcoming event on user’s calendar USP3 Features to differentiate our app from other location based services New Features will be the USP of our service Run analytics on data generated by users such as past check-ins, etc to suggest places, activities with friends,  Data analytics could be sold to corporate to help them understand interests, recreations of target segments USP4 Feature to enable users to interact with their nearby friends over the blue tooth network Blue tooth connectivity is available on all medium to high end mobile phones USP1  Offer content specifically designed for Indian market  Tie up with local businesses in cities such as stores, restaurants, theatres to send notifications of upcoming events such as a sari sale, diwali sale, etc USP2 Source of Competitive Advantage Nullify competitor’s advantage USP5 (Feature for catering to low end mobiles): A basic location reporting service working on SMS
  • 13. USP1: Improved interaction b/w friends Browse content on your friend’s mobile on a file explorer & download songs, videos & pictures Share their SN personal profiles for others nearby to view: share dislikes, thoughts, actions, emotions View profiles of anyone nearby who has shared his/her profile and chat with them Make announcements - all users in your range will get to know what you have to say Our app will have a feature that will use the bluetooth network to allow nearby users to do Value Proposition for users Data transfer over bluetooth network does not cost anything unlike over GPRS/3G network, so users can interact free of cost Users checked in at same location or nearby are close enough to connect over blue tooth network. Bluetooth devices can interact with each other over a distance of 100 metres Enabling Factor Feasibility Adding such bluetooth features into our mobile app should be easy. The link http://beta.bluxone.com/ is a free to download app BluXone providing all mentioned features & has been around from 2007
  • 14. USP2: Offer content for the Indian market New movie release New offers & sales Saree sale @ a Nalli storeNew food festival @ a BBQ outlet A new play in your city On registration, a user have an option to receive event notifications & also needs to select his interests Theatres Shopping Movies Eating out Educational Events A user will only be sent notifications of upcoming events in his city of his interest Form relationships with local businesses in Indian cities like restaurant chains, movie hall chains, theatres, stores etc to send regular notifications about upcoming events such as Create trips catering to Indian taste for our app users to embark on: Trips centred around Indian festivals, historical places and street markets in Indian cities • Festivals: Trips covering places to visit like pandals during Durga Puja, Ganesh Chaturthi, ram lilas organized during Dushera, fairs during Janmashtami & shops with product listing & discounts during Diwali, etc • Heritage Trips: Trips covering places of historical importance in your city • Food Trails: Trips listing eateries & locations such as Chandni Chowk in Delhi famous for traditional Indian food •Shopping Trails: Trips covering street markets like Janpath in Delhi, second hand books markets like College Street in Kolkata, city centres like Connaught Place in Delhi, etc
  • 15. USP2: Offer content for the Indian market Our SN should offer some community themes/templates meaningful for Indian market which users can use to form their own communities Car pool community: Car pooling is quite common in Indian cities Co-Commuters community: Co workers, students, etc who travel together in public transports like Metro, Chartered buses, local trains, etc Ladies Chit Fund: Women in Indian cities form chit fund clubs and have regular social interactions such as kitty parties Residents Welfare Associations (RWA): People living in apartment complexes in Indian cities form RWAs to deal with issues related to their apartments and often meet together Festival Associations: People belonging to a community come together to organize festivals like Durga Puja associations, Ganesh Chaturthi association, etc Monetization Opportunity Targeted event notifications, advertising & promotional campaigns, recommendations can be sent to such communities. E.g.: an upcoming saree sale at a popular sari store in the city can be sent to chit fund club of women
  • 16. USP3: Calendaring service for users to create & share schedules & app to push event notifications Calendar Feature Users can create schedule of activities along with locations of future activities and share them with friend. Will receive a notification whenever friends schedule activities at same time and location The look, feel and functionality of the calendar should be similar to MS outlook as it is a widely used software so users will be comfortable creating the schedule Notifications about upcoming events in his city can also be placed on the user’s calendar so that he gets a sense of how the event fits into his schedule Provide different access levels to enable the user to share his schedule with only his friends, community or with entire user base
  • 17. USP4: Extensive data analytics to make better recommendations & run more effective promotions Run analytics on past data generated by users at regular interval to recommend the following • Send notifications of upcoming events only for those areas of city which is frequently visited • List places at a location in order of frequency of visits. For e.g.: if a user checks-in a lot into bars or movies, then list movie halls or bars at a location at the top Places • Suggest nearby users for company who are not friends based on common places visited in past and common interests (eating out, movies, theatre, etc) specified • Suggest things to do for friends nearby like watching a movie again based on past activities Friends Match paid promotions and marketing research surveys for Indian brands with their target segment in order to make promotions more effective for businesses and more meaningful for SN user A market research survey for a new brand of UB group could be sent to users who regularly check-in at bars &pubs. Such users should be offered some incentive to fill the survey A movie promotion for a new YRF release could be targeted to people who regularly check-in at cinema halls A food festival or a new buffet plan at a Taj hotel could be promoted among users who check-in regularly at fine dining restaurants. Similarly any deals for stay at a Taj hotel can be promoted among users who have checked-in at five star hotels A discount offer for a CAT preparation course or commencement of a new batch for CAT preparation can be promoted among college going students A promotion for a fast food joint can be targeted who check-in from fast food joints with a frequency greater than or equal to a threshold value
  • 18. And some additional services Check-ins along with photos, videos uploaded will be displayed on a time line based widget: Users can click on any portion of the time line to view places visited, comments, etc on a particular date. Memories stored on a unique travelogue Listing of nearest emergency services like tow away services for flat tyres, emergency healthcare facilities like ambulance on call, etc Emergency Services Suggest alternate means of commuting available from a location like nearby auto stands, taxi stands, bus numbers with major bus stops, etc. Suggestions on transportation options Users can send in a query using an SMS to a number specified by our service and receive locations of friends, listing of places at their current location, etc . Basic Location Tracking Service for low end mobiles Maintain a chat bot that users can interact to get info about surroundings, help with any feature, etc Chat Bots to help users with queries
  • 19. Generate awareness about the Service Achieve a target user base of 10 million by 2015 Become the top ‘Location based Social Network’ in India Become the most popular Mobile based Social Network Become the most preferred Social Networking platform businesses use to reach their TG Promotional Objectives
  • 20. Promotion Channels Offline Advertising Public Relations Partnerships – Retails, Cinemas, Chains Mobile Marketing Radio Marketing Partnership with OEMs Marketing Media Mix
  • 21. Online Marketing Google Adwords to do contextual advertising Social Media Marketing E- mail marketing Viral Marketing (games, quizzes etc) Display / Banner Advertising Video Advertising on Online Video Streaming Websites Ezine advertising and Podcasting Extensive blogging on Sulekha, Wordpress etc
  • 22. Tie -ups with leading online portal of India to leverage on their popularity. •Link exchange •Advertising on portal Online Tie-ups
  • 23. Google Adwords Google Trends Google Adwords/Trends • AdWords ads are displayed along with search results when someone searches Google using one of your keywords • Contextual targeting is used to match ads that include keyword targeting • Choose from a variety of ad formats, including text, image, and video ads, and easily track your add performance using the reports available in your account. • Using it to find hot keywords to bid for • Hot Keywords found – social games, facebook apps, maps, promotions
  • 24. Games (Treasure hunt on map service, Car racing) Social Media Marketing: Building communities and applications in Facebook /Orkut /Flickr Quizzes (Know your city): Exciting quiz which will attract attention of user and force him to check into app again and again Buzz generating content on Youtube: Video is shared across vast number of people Mobile Marketing: •SMS promotions •Place ads on WAP webpage such as m.yahoo.com •Place icons to download app in Airtel / Vodafone Live Viral, Social and Mobile MarketingVIRALMOBILESOCIAL
  • 25. Sponsorship of events – Getting coverage by sponsoring events by artists, college festivals, cultural events Merchandise (Mugs, T-shirts): Logo of app product printed on products Tickets (IRCTC e-tickets, Metro/Bus, Cinema): Ads of app printed on back side of tickets Outdoor Advertising in bookstores and coffee joints: Getting traction from young crowd by advertising at these places Radio Marketing: Advertising on well known channels like FM 98.5, Radio Mirchi etc Offline Advertising
  • 26. •Getting reviews of service published in well known journals and newspapers •Encouraging user feedback and highlighting user experiences and reviews on site homepage •Organize Contests and Sponsor events, fests in colleges •Maintain a blog regularly about our app, features and request well known bloggers to review our mobile app •Highlight celebrity users of our service Public Relations
  • 27. Advantage: • Monetization of App: Charging clients for pushing their special offers, deals, discounts, advertisements etc •Advertising App: Giving coverage to location based application in cinemas, restaurants Retailers: Apparel shops, electronics shops, Florists, etc promoting our app by in-store ad displays of our service, distributing printed pamphlets of our apps, etc Restaurants: promoting our app by printing a short description of the app on menus, bills, etc Cinemas(PVR,WAVE,ADLABS ..): promoting our app by telecasting ads of the service during movie intervals Tie Ups with businesses
  • 28. Distribute app through Apple App Store, Nokia’s Ovi.com, Vodafone App Store & Airtel App Central to enable users to freely download the app from these sites Negotiate with OEMs to get the app pre-installed on handsets Tie up with Web Browser: Negotiate with browsers like Opera, Mozilla to add a button in browser toolbars to provide a quick way to download app Tie Ups with handset manufacturers, browsers
  • 29. Cost Benefit Analysis of marketing media Online Marketing: Maximum emphasis Cheapest form of advertising Attracts the tech savvy target audience Tie Ups: High emphasis Can be done free of cost by carrying out promotions for partners on our app Mobile Marketing: High Emphasis Effective medium to reach mobile internet users SMS promotions have wide reach with low cost Offline Advertising: Moderate emphasis Costly as promotion involves branded marketing media Public Relations: Moderate emphasis Necessary to generate trust among users Promotes goodwill of the brand TV and Print advertisements: No
  • 30. What about the money?
  • 31. Revenue Streams Revenue Streams Marketing Research surveys Partnership with businesses Advertisements Brand Promotions Sale of Analytics Merchandising & Premium A/Cs
  • 32. Partner with businesses to push notifications of upcoming events, promotions to users Our app will serve as a marketing and promotional medium reaching out to a huge user base for them •Event organizers, retailers, restaurateurs, etc do not have a large identified set of target segment customers •Businesses are not able to reach out directly to their target segments while conducting special events and promotions beneficial to their customers •E.g.: Ladies clothing store with a 10% sale in next week wants to promote this event among large number of women in the age group of 25-55 in their city, however doesn’t have a forum to reach this segment Problem Identification Solution Our app to the rescue: Match event organizers, store owners, retailers with their target segments 1. Form permanent tie-ups with businesses to send their event notifications, promotional messages, etc to their target segment from our app’s user base. Charge them fees on an annual/monthly basis. 2. Businesses will specify their target segment as Sex: Male, Age: 15-35, City: Delhi, User Activity: Eats out frequently. Our service will identify such users on basis of user details, his specified interests and analytics of past data. 3. User will receive event notifications if he has registered to receive them and for events which match his specified interests (Eating Out, Theatre, etc as mentioned in previous slides) Value Proposition for businesses Users will receive info about latest things of their interest area happening i in their cities. E.g.: enthusiastic theatre audience will remain updated about any new plays in their city Value Proposition for users
  • 33. National Partners (India wide) Seamless integration into the App Event notifications, Promotional messages pushed regularly to users Local Partners (City Level) Location based presence Partner is charged annual fees based on its desired reach (region, city, countrywide) Pubs Metro Stations Cinemas Malls Amusement Park Continuous Presence in the App Integration based on User’s need Restaurants Form permanent relationships with both National and Local partners Partner’s IMC and App Integration used while designing campaigns Theatres Tie-up with local and national partners
  • 34. Criteria for charging partners annual fees Partners to be charged annual subscription fees for the service. Fees charged will be based on: Regions within a city that notifications will be sent to or promotions will be done. When registering for our service, users will have to select their region, like Rohini in Delhi. So, if a store owner can only afford subscription fee for covering Rohini, then notifications will be sent only to users who had selected Rohini as their region. Higher the number of regions a retailer wants to cover, the higher he will have to pay. Number of regions Subscription fees will also depend on type of business of retailer or event organizer. For example, subscription fee charged to theatres should be less than that charged to large retail chains like Big Bazaar. Mc Donalds etc. as theatres can’t afford large promotional spendings. Type of business of client Some more criteria like the amount of analytics done to identify target segment for a promotional campaign can be a basis for determining subscription fees
  • 35. Promotions for Indian brands Promote location features of app as highly effective for online & viral marketing. Some examples of promotional campaigns leveraging location features are: Top Indian brands will only use our service as a promotional platform when it becomes a highly popular SN (like Facebook) with a thriving user base MTV roadies has communities & viral campaigns such as games on Facebook, Orkut. Our service will be a great medium for viral marketing campaigns like a treasure hunt covering places in the city which users can play and also refer to friends Travel agencies like SOTC, Thomas Cook can float city trips (covering best places to visit in the city). Users could embark on such trips, refer the trip to friends, win goodies on completing trip & user reviews about trip can be displayed on the trip’s profile page Career Launcher can launch promotional campaigns which will be floated only for student users like ‘CL in your campus’ in which students can attend a workshop/talk of CL and get a free T shirt delivered to their home on checking-in to our app from the CL stall/centre Cinema hall chains like PVR can launch promotional campaigns on our service like check-in to PVR halls and leave a slogan about the PVR experience. The user with best slogan will be rewarded with some discount on next ticket purchase
  • 36. Target User: Retailers Promotions Events Advertisements Target User: Corporate New Products and Services On - Ground Activations Promotions Target User: Event Organizers Theaters, Art Exhibitions Target Group Time Location Demo- graphics Advanced Targeting Features Demographics Time Location Assures richer, deeper and louder impact Pricing Strategy: Cost per TG USP: Cost Effective way of reaching the TG “AIM SMALL MISS SMALL” Ads will be placed here Mobile Advertisements
  • 37. •User Account Creation •Demographics •Areas of interests •User Behavior •Shopping Habits •Hangout Places •Online Transactions •Friend’s Transactions Consumer Profiling •Consumer Preferences •Upcoming Trends •Feedback system for businesses •Lead Generation Analytics •Trial Suggestions •Products •Services •Events •Places •Based on past data Recommendations to users Analyzing Visitor Patterns Who are your visitors? Where they come from? What do they think of your Business? Popularity and Reputation Consumer Preference Social Similarity and Social Interaction Recommenda tion courtesy: Li and Hsiao: Recommender Service for Social Network based Applications Analytics and Recommendations Sell data analytics to corporate to help them gauge changing consumer trends
  • 38. •Banner, Ads on the site webpage •Tag favorites from web on to mobile app •Charge per 1000 views , per click or tag Online Advertising •Offer premium A/Cs to user for annual fees •Extra storage for videos, photos •High data transfer speeds • Preference for limited discounts Premium Account •Surveys floated to users •Users paid with virtual gifts/currency or Merchandise for filling it •Survey results sold to company for a fee Surveys •Branded Cups, T shirt etc for consumers •Banner, Posters and Magnets for businesses Merchandising Visit us on Other avenues for revenue
  • 39. Current Statistics • Smart phone Owners 8-9 million • Urban Mobile users 270 million • Serious M Internet Users 2 million • Mobile Internet Users 12 million • Internet Users 127 million Future Projection • Smart phone expected to increase 5 times by 2014 • Urban market Saturated • Internet Users 15% YoY increase • High growth Mobile Internet Users Smart Phone Owners Mobile Internet Users Social Network Users Urban population TargetGroup Revenue Projections
  • 40. Revenue Model - Assumptions Time of Launch: March 2011 Percentage of Serious Mobile Internet users using the app Smart Phone Owners Serious Mobile Internet Users 2011 2012 2013 2014 2015 1% 3% 9% 24% 35% 2011 2012 2013 2014 2015 18 m 26 m 36 m 48 m 65 m 2011 2012 2013 2014 2015 5 m 8 m 12 m 16 m 25m Cost till Setup of Service: Rs 10mn Revenue Expected ARPU per year from Ads: Rs 5 National Partners Fee: Rs 2,00,000 per annum Expected Number of National Partners: 12 Local Partners (City Based Charging) Number of Cities - 6 Annual Membership Fee - Rs 4,000 Average Number of Regions - 30 Number of Partners per Region - 10 Expected Revenue: Rs 7.2mn A1 Grade City *A-1, A, B-1 and B are Government ranking of Indian cities based on City Compensatory Allowance and HRA it pays to its employees Number of Cities - 11 Annual Membership Fee - Rs 2,000 Average Number of Regions - 25 Number of Partners per Region - 7 Expected Revenue: Rs 3.85mn A Grade City Number of Cities - 21 Annual Membership Fee - Rs 1,000 Average Number of Regions - 15 Number of Partners per Region - 5 Expected Revenue: Rs 1.58mn B1 Grade City Number of Cities - 23 Annual Membership Fee - Rs 1,000 Average Number of Regions - 10 Number of Partners per Region - 3 Expected Revenue: Rs 7.2mn B Grade City
  • 41. Revenue Model – Calculations and Analysis Revenue Flow 2011-2015 Particulars 2009 2010 2011 2012 2013 2014 2015 Mobile Internet Users using app - - 1% 3% 9% 24% 35% Serious M Internet Users (millions) 2 3 5 8 12 16 16 Expected App Users (millions) 0.05 0.24 1.08 3.84 5.6 Revenue based on ARPU from Ads INR 0.25 INR 1.20 INR 5.40 INR 19.20 INR 28.00 Revenue from Partners National Partners INR 0.60 INR 1.20 INR 2.40 INR 2.40 INR 2.40 Local Partners A1 Cities INR 0.72 INR 2.88 INR 7.20 INR 7.20 INR 7.20 A Cities INR 0.39 INR 1.54 INR 3.85 INR 3.85 INR 3.85 B1 Cities INR 0.16 INR 0.63 INR 1.58 INR 1.58 INR 1.58 B Cities INR 0.07 INR 0.28 INR 0.69 INR 0.69 INR 0.69 Total Revenue INR 2.18 INR 7.73 INR 21.12 INR 34.92 INR 43.72 Expected Costs INR 10.00 INR 12.00 INR 14.00 INR 16.00 INR 18.00 NPV (millions) INR (7.82) INR (3.72) INR 5.38 INR 12.44 INR 14.71 Effect of Average Revenue Per User (ARPU) •ARPU has a significant effect on project NPV •ARPU can be increased by •Targeting of Consumers with relevant advertisements •Creation of Merchandise, Virtual Currency and Gifts •Possibility of Premium accounts to be explored Sensitivity Analysis ARPU NPV(millions) INR 1.00 INR 27.85 INR 2.50 INR 129.30 INR 5.00 INR 298.40 INR 10.00 INR 636.58
  • 42. Revenue Model INR 27.85 INR 129.30 INR 298.40 INR 636.58 INR - INR 100.00 INR 200.00 INR 300.00 INR 400.00 INR 500.00 INR 600.00 INR 700.00 INR 1.00 INR 2.50 INR 5.00 INR 10.00 NPV (millions) INR 2.43 INR 8.93 INR 26.52 INR 54.12 INR 71.72 INR - INR 10.00 INR 20.00 INR 30.00 INR 40.00 INR 50.00 INR 60.00 INR 70.00 INR 80.00 2011 2012 2013 2014 2015 Revenueinmillions Total Revenue 0.05 0.24 1.08 3.84 5.6 0 1 2 3 4 5 6 2011 2012 2013 2014 2015 ExpectedNumberofAppUsersin Millions Expected App Users INR 10.00 INR 12.00 INR 14.00 INR 16.00 INR 18.00 INR 8.00 INR 10.00 INR 12.00 INR 14.00 INR 16.00 INR 18.00 INR 20.00 2011 2012 2013 2014 2015 ExpectedCostsinMillions Expected Costs
  • 43. Thank You