Directi Case Study Contest - Team Goodfellas from ISB Hyderabad

Indian School of Business, Hyderabad Team: Goodfellas

Table Of ContentsDateRide‐ The Inception• Why Join this Ride • Home Page Mock UpValue Propositions• Personalization • Experiential Dates• Security and Control • Feature Mock‐UpsMonetization Strategies• User‐Based • Corporate Focused• Monetization Mock UpsMarketing Strategies• Roadmap • Pre‐Launch • Launch Phase • Long‐term • Hygiene FactorsOrganization StructureRevenue & Cost Projections

DateRide‐ The Beginning of the Ride Primary Research Secondary Research ‐Industry Data DateRide’s Target ‐Consumer Studies ‐Interview and validation ‐Competition Scrutiny ‐International Data ‘India’s bright eyed Youth’ with tech experts (LinkedIn,xbox, Orkut, Market Analysis Amazon experts)Key Findings Key FindingsCurrent online dating community is lacking an experiential dating INDIAN YOUTH WANT MORE Given the positive effects of the platform Internet on social life, there is a great 1. Personalization potential for the Internet to improve India’s online dating community is romantic life as wellapprehensive of the existing concept 2. Experience of a real date People spend too much time and is not comfortable sharing 3. Secured platform for searching for options online for too coordinates with people online control & privacy little payoff because users desire Daters wish to screen potential information about experiential romantic partners not only by attributes, but online dating Web objective qualities (income ,height) sites contain primarily searchable but by experiential attributes (sense attributesof humor or rapport) DateRide BEGINS As Indian marriages move from an Most online dating sites use a economic exchange arranged “shopping” interface like that used between families—based on by other commercial sites, in which observable attributes—to a falling‐in‐people are classified much like any love experience— based on commodity emotional attributes—the limited information in profiles is more likely to be insufficient.

DateRide‐ Why join this ride Chatting is old school‐ Experience your date Explore your virtual and make it fun date potential Keep your secrets and have complete control over your Use virtual and real informationtools to win over your date Use various DatetRide interactive tools to judge compatibility, combined with fun activities

Home Page

Value for you‐ The Ride Offers Personalization Create the Virtual ‘U’ Find Your Best Match Date Ride’s smart Algorithm can Create and Maintain a Date List develop a virtual you Play a game Create yourself • Answer wacky questions and Chose your hairstyle, eye DR will recommend dates color, face cut, body whose answers match with structure, skin colour and yours and suit your profile so on to create your Date • You can then explore the list Persona and add interesting profiles to your date list and send Upload Pic them date requests Alternatively, you can upload you picture and we Simply search will create your virtual search matching profiles by avatar entering preferences

Value for you‐ The Ride Offers ExperienceFix the Date Destination Suit Up for the Judge Compatibility Choose your ChatRing Date Use DR’s interactive toolsChat Rings include Real Interactive & EngagingWorld Interfaces such as • Play games like cross words with love Malls, coffee shops, movie words, scrabble, music guess halls, restaurants, beaches, • Watch clips from our Youtube library museums, ballroom, night while chattingclubs Express your feelingsMusic‐ Once in the chat‐ring, • Your avatar can smile, blush, show users can also select a anger and many more emotionsbackground soundtrack to be • Virtual gifting to dates played during the date Add your Friends to enjoy group dating Select from a range of casual, formals, colors, even brands

Value for you‐ The Ride is Secured Controlled and Abuse‐Free Environment Ensures user Privacy‐ Points system: To impose control over users’ ‐ Confidentiality: All profile activities, prevent them from abusing the characteristics are kept services, we allow users to perform activities confidential; the user has the by using ‘beats’ allotted to them through a liberty to allow which point system described under monetization characteristics he / she likes ‐ Blocking: Users can can be dumped/blocked to make public and to whomfrom a partner’s list. Unless this partner un‐ ‐ Crush list: Crush lists are dumps the user, (s)he will not be able to chat private & revealed only upon with this partner again mutual addition‐ Users can reports abuse cases and immediate measures will be taken by our team Date Specific Privacy Features

Key Features Mock‐Up (1/4) Date Specific Privacy Settings Both Users need to decide on a common Date location to proceed. The Red and Yellow borders around the profile images, indicate the user’s “interaction color” The same colored border is applied to all interactions within the virtual environment and will be visible to the partner to let him/her know of interactions.

Key Features Mock‐Up (2/4)

Key Features Mock‐Up (3/4) • Users can move around and interact with elements in the environment• Chat Box picks up on internet lingo terms like “lol” and “smilies” and displays relevant emoticons in the avatar’s thought bubble.

Key Features Mock‐Up (4/4) • Date Games are very interactive. For Eg:‐ The Crossword game above “highlights” clues that each user is working on. • Emoticons “pop ups” appear above avatars based on activity.

Strategies to extract the Economic Value Monetization Activities User‐Based Corporate Sponsors The Freemium Model Point Gift Wardrobe Interface System Deliveries (Sponsorships) and Activity (Microtransactions) (E‐commerce) (Sponsorships) 2nd Year Revenues (INR ‘000) 12,000 3,000* 10,000* DateRide’s commission

User Based Monetization‐ Point System Points Examples of Activities Bought WithRequired For 1 Beats ‒ Choose/Change ChatRing, Wardrobes ‒ Initial inventory of free coins Free ‒ Joint Activity‐ Games, Videos, Music ‒ Earned by daily visits, ‒ Invite a friend competition of activities, Activities If Beats ‒ Give ‘Bonus Gifts’ such as shells, love acceptance of gifts sent exhausted, you notes ‒ Deducted if gifts rejected or can convert on irritating a date Gold Coins to buy them2 ‒ Give premium virtual gifts such as Gold Paid accessories, rings, perfumes, cars, etc Coins bought through ‒ Access to video/voice features Activities Payment Gateway ‒ Detailed analytic on who visited ur profile ‒ To send more than 10 date requests Additional Benefits Revenue Model ‒ Creates user engagement and exclusivity Year‐1: INR 700K Year‐2: INR 12,000K ‒ Impose a control over users’ activities ‒ Paid Users: 2% to 3% of active users ‒ Prevent them from abusing the services ‒ ARPU (paid users): INR 500 to 750 (monthly)

User Based Monetization‐ Gift Deliveries Cakes & Flowers (Home Delivery) Users have the option to securely register Address Database their address with DateRide to allow receiving gift deliveries by other users Users have the option to send gifts to other users who have registered their Sending Gifts addresses through ‘gold coins’ or online payment gateway DateRide ties up with several established gift delivery vendors – orders are Supply Chain & transferred automatically to vendors along with the payment after Commission deduction of commissions Additional Benefits Revenue Model‒ Natural progression for users to offline / real life Year‐1: INR 200K Year‐2: INR 3,000K interaction through DateRide ‒ 5% ‐ 10% users buying an avg. 1 – 2 gifts per month‒ Creates user engagement and exclusivity ‒ Avg. transaction value: INR 400; Commission: 5%‐30%

Sponsor Based Monetization‐Corporates ChatRing & Activity Six‐month contracts with popular brands for placement on chat‐ring scenario backgrounds, e.g. CCD for coffee shop, Pantaloons for mall, etc. Sponsorships Avatar and gift sponsors could be wardrobe / accessories brands – users Wardrobe and Gift have the option to choose branded inventories for their avatars & gifts and Sponsorships these link to the brand’s website if users like particular inventory Additional Benefits Revenue Model‒ Opportunity for mutual marketing tie‐ups Year‐1: nil Year‐2: INR 10,000K‒ Monetization opportunity by enabling e‐commerce ‒ Six‐month charge for a chat ring: INR 2,000K to 4,000K facility for brand’s products through DateRide ‒ Effective rate: INR 1 to 2 per user per date session

Point System Mockup (1/4)User Receives “Beats” once per login in a day. The value of daily reward beats increases as the number of consecutive logins increases.

Point System Mockup (2/4)

Point System Mockup (3/4)Upon Successful completion of a “Date Game” activity, Reward Beats are given to both the users.

Point System Mockup (4/4)User can also Buy Gold using Real Cash and Convert his Gold to Beats

Marketing Plan – Focus on low‐cost, high‐ reach, viral & strategic initiatives Months 0‐2 (Beta) 2‐6 6‐12 12‐18 18‐241. Engaging Focus Groups & User Seeding Official 1.1 College road‐shows and event sponsorships Launch 1.2 Focused online buzz & user feedback2. Online Advertising Blitz 2.1 Affiliate marketing 2.2 Targeted advertising – media buy sites 2.3 Google & social media ads3. Offline & Strategic Promotions 3.1 Promotion Through Collaboration – strategic tie‐ups 3.2 BTL – Campus invasions & road shows 3.3 ATL – Print, cinema and radio 3.4 Contests & games – mobile apps & web4. ‘Hygiene’ Activities 4.1 Viral features – Social media connect, invite incentives 4.2 On‐site promotions – Virtual video tour, Date doctor 4.3 E‐mail marketing 4.4 SEM / SEO 4.5 Articles based promotionExpected User Base by Period End 500 5,000 15,000 50,000 150,000

‘Pre‐Launch’ Marketing Initiative‐ Beta Phase Engaging Focus Groups & User Seeding1 •Help to get the initial and popular Engage Focus Groups traffic on board •Helps to test the website and 1. Identify 4‐5 colleges across high internet penetration opportunity to improve •Create a sense of ownership and regions (HR college, Mumbai, IIT Bombay, Symbiosis belongingness amongst the early Pune, SRCC, Delhi) adopters 2. Phased roll‐out (2 weeks per college) through Road Shows, sponsoring events (getting a stall) and campus representative programs 3. Create focus groups & give them access to DateRide Creating Online Buzz & User Feedback 1. Create the quintessential community builder FB/Twitter page 2. Add Focus group participant to the FB group 3. Use the page to gain Consumer Feedback and improve 4. Create Youtube videos/ads & games that would go viral 5. Create exclusivity by restricting entry only though invites

‘Launch’ Marketing Initiative Online Advertising Blitz (1/2)2 Affiliate Marketing Affiliate Marketing Growth Leverage online marketing power of “the crowd” DateRides revenue sharing model with affiliates −Affiliates get 20% of Revenue generated by User (by purchasing virtual “Gold Coins”) −User needs to have been referred to DateRide by affiliate Clickbank Related Keywords on Growth −Commission lasts for 2 months from date of registration. (Affiliate Cookie duration=2mth) Affiliate Marketing adopted by a large number −DateRide will employ services of affiliate of top firms in the world including Dell; management platform like Overstock.com; Home Depot; Zappos; Bed, CommissionJunction , Clickbank Bath, and Beyond; and Yahoo! (All of whom • Ensures high visibility among affiliate are clients of Commission Junction) marketers community • Trusted platform among affiliate Worldwide network of affiliates can be marketers leveraged for a product even in India. • Platform handles affiliate fraud like “cookie stuffing” etc

‘Launch’ Marketing Initiative Online Advertising Blitz (2/2)2 Targeted Advertising We created a list of media buy sites which are popular amongst youth. We can use these platforms to conduct niche marketing Google & Social Media Ads Use current ad platforms like FB/google based on demographics, keywords, time range, likes, and so on

Long Term Marketing Strategic Focus on gaining credibility and user base 3 Promotion Through Collaboration Campus Invasions & Road Shows at Right Tie‐ups can help in promotional efforts Popular Hangouts ‐ Organizing games, events at popular hangouts such as malls, pubs, movies of target segment ‐ Role playing at such hangouts by putting up a virtual environment (chartings), dressing up real people as avatars ‐ Bus Tours‐ Open Air bus with a set‐up of a virtual date, taken around popular places ‐ All the above will create curiosity as well help with word of mouth publicity ATL Advertising Contest and Games (TV, Print, Cinema and Radio ads)‐ Identify metros with maximum likelihood of the concept working; ‐ Dating games/contests on DateRide for where search volume has been high‐Chennai, Delhi single and couples with winners getting ‐ We target these cities first in ATL advertising free gift vouchers to popular hangouts, ‐ Target on Print ads (Bombay times) , radio in the near term and shows or even get an interview for an MTV possibly TV ads in the long term (4‐5 yrs down) or channel V show ‐ We can also run ads in theatres playing movies that appeal to our ‐ Create date games/puzzles for web, mobile target audience and FB that generate user interest

Marketing Hygienes Critical factors (1/2)4 Virtual tour Email marketingUploading a virtual tour of DateRide ‐Email date requests, on website and Youtube with profiles of suitable animated FUNNY stories of how dates, gifting idea & couples met through online dating other updates directly & found love would create visibility to users can bring users and may create a viral effect on DateRide ‐Based on user activity Leveraging Social media Incentivize Users customized emails can be sent Incentivize users to invite friends ‐Also helps to convert Use FBconnect to build more Fans ‐By giving free ‘Beats’and link your website closely to FB passive users to active ‐By granting ‘super powers’ buyers. (Emails captured ‐By giving Gold Coins when in registration phase) referrals make purchases (in‐effect ‐Use email marketing Online Help making them affiliates) solutions like Aweber to Use the ‘Date Doctor’ Online Chat ‐By giving them special ranks‐ Eg‐ optimize email on website for Consumer DateRide King marketing campaigns Engagements/stickiness and access ‐Free DateRide Sponsor for 2 to go using their analyticsto quick online help and resolution on an actual date‐ Movie tickets, of issues free coffee coupons, etc

Marketing Hygienes Critical factors (2/2)4 There are about 400k searches of the word “dating” and its various forms in Google India. Thus, we believe a strong SEM / SEO presence on search engines is absolutely critical and both Organic Search Engine Optimization and PPC Search Engine • Use image/Optimize tags: Marketing deserve a thorough emphasis. Keep unique tags in titles and headers. Also use images inside the Articles based marketing page and optimize the name of the image with relevant keywords ‐ Creating interesting and funny articles can build consumer stickiness and also brings others looking • Use Bookmarking Websites: for such information on the website Tag ‘related sites’ on sites like ‐ Examples of articles include: ‘The dos and donts Del.icio.us. If people find the sites you on a date’, ‘How to handle awkwardness at a tag to be interesting, emotionally date’. ‐ These can be used to promote the website engaging, or timely they may follow features and its sponsors. the trail back to your site. ‐ They can also be placed on article directory Ask friends to tag the website. If the websites such as knol.google.com, ehow.com. site gets on the front page of Digg, ‐ This can help improve website’s rank and bring in stumbleupon or on the Del.icio.us more users. popular list, hundreds more bloggers ‐ Articles on website can be synced with FB/Twitter will see the site, and potentially link page and interesting article can generate a lot of to it user interest through viral effects

Organization Structure Creating a Clique Network Flat and Simple Organization Structure will foster an Entrepreneurial Culture Clique Networks promote CTO CEO COO • Creativity • Diversity in Knowledge Marketing Engineering Business Dev • Diverse talent pool Manager Manager • Rapid Growth Manager • Informal power • Promotes healthy Web Developer Web Designers System Admins competition • Rewards based on Performance ‘Venture Groups’ would be created in the As the company expands, the organization based on functional diversity entrepreneurial environment which reflects completeness of skills required needs to be strengthened and the and implies a better match between task concept of ‘venture teams’ requirement and member skills needs to be introduced

Income Statement Projections (INR 000’) Development Year 1 Year 2 Year 3 Year 4 Phase (6‐months)Registered Users 50 15,000 150,000 250,000 350,000 Revenues Sponsors paid ‐ ‐ 10,000 25,000 35,000 Transaction commissions ‐ 199 2,968 23,100 31,500 Micro transactions ‐ 710 11,925 72,000 144,000 Total Revenues ‐ 909 24,893 120,100 210,500 Operating Costs Cloud Servers & System 180 300 300 600 1,000 Personnel (Managers, developers, 3,600 5,500 11,300 13,000 17,000 designers, admin etc.) Rent/Lease 3,000 6,000 6,000 6,000 6,000 Marketing & Sales ‐ 2,200 3,650 2,490 3,150 Depreciation 90 180 234 288 288 Total Operating Cost 6,870 14,180 21,484 22,378 27,438 Operating Income (6,870) (13,271) 3,409 97,722 183,062 Taxes 0 0 1,023 29,317 54,919 Net Profit After Tax (6,870) (13,271) 2,386 68,405 128,143Capital Expenditures – Software lic. 360 ‐ 720 ‐ ‐Cash Flows (7,140) (13,091) 1,900 68,693 128,431

Thank You and See You on DateRide Soon☺

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Directi Case Study Contest - Team Goodfellas from ISB Hyderabad

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Directi Case Study Contest - Team Goodfellas from ISB Hyderabad Presentation Transcript