Directi Case Study Contest 2010- IIMB Aspirers


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Directi Case Study Contest 2010 submission by Team Aspirers from IIMB

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

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  • Directi Case Study Contest 2010- IIMB Aspirers

    1. 1. Directi Case Study Competition Team Aspirers, IIM Bangalore Case for an Indian Location based Network 1
    2. 2. Name Phone No. Email ID Chandan Kumar Behera 9986589322 Isha Dhiman 9739004984 Nitin K V 9886358730 Vikas Hinger 9986435067 – an Indian Location Based Social Network Team Aspirers, IIM Bangalore 2
    3. 3. Table of Contents Introduction to Location Based Social Networks Key Success Factors Scope of LBSN in India Target Segment - Characteristics Our offering: Must Haves for a LBSN Dazzlers – Creative uses of LBSN Marketing Campaign Phase 1: Initial Rollout Phase 2: Growing the Network Phase 3: Building the brand Monetization Well Known Monetization Methods Innovative Methods of Monetization Implementation Plan to roll out References Viral Marketing for a Social Network 3
    4. 4. LBSN- Dynamic Social Networking Social Networks Geographic Location Location Based Social Networking  LBSN is a social network services where people can track & share location related information on an instantaneous basis  A transition from virtual world of social networking to pleasant real-life experiences sharing  User Location tracked by positioning techniques e.g. GPS Logger, smart phones, etc. 4
    5. 5. LBSN: An Exciting Experience Surprise your friends by meeting him when he is shopping in a store Get information about local route, shop location, tourist places, etc. Updates about store discount when you are at a nearby area Fun activities that you do on the move e.g. Location based games 5
    6. 6. LBS Networks Location Based Social Network Active users* Benefits to Users Opportunities for Business Owners 2 million • Both connect and compete • User tips and reviews • Classification of users: ‘Mayors’ (based on number of check-ins • Informative content & instant brand insights • Create a own location page • Access detailed analytics • Create Specials (Offers): count-based specials, frequency-based specials and wild card specials 340,000 • Check in at various locations: leave & exchange items •Upload tips, photographs & comments • High Focus on the game aspect • Link several locations in the city together as ‘trips’ •No advertising • Promote certain locations as a part of sponsored trips with recommended stops • Add their business as a ‘Spot’ & update misinformation if any * Data as of July 2010, Source: Anvil Media Inc. 6
    7. 7. LBS Networks Location Based Social Network Active users* Benefits to Users Opportunities for Business Owners 2.1 million • Primarily as an online monopoly game -purchase locations, collect rent • Users own your business • Fun is the top priority – does not depend on check-ins 4 million • Find reviews and information, leave tips after visit • Upload photos and comments • Loopt Star: A game where users are rewarded for completing certain tasks and challenges • Classification of users: ‘Boss’ • Access User Data • Promote brand with advertisements • Create interactive challenges for users with rewards on Loopt Star 2 million • Personal customized feel – User Profile • Comment, Like/Dislike posts • Send unlimited SMS • Targeted advertisement by location, age. Activity, weather, etc • Access to statistical data * Data as of July 2010, Source: Anvil Media Inc. 7
    8. 8. Putting them all together NatureofBenefitsOfferedtoUsers Number of Active Users 2 million 4 million1 million 3 million Intangible Benefits Intangible Benefits Tangible BenefitsTangible Benefits 8
    9. 9. Key Success Factors (KSF’s) Four Square Gowalla My Town Loopt Bright Kite User Factors Informative content - Tips Ability to attract consumers: games, competitions, incentives Express yourself – Tips, comments City Guide Personalization Business Owners Factors Connect users & business owners (personable & conversational way) Provide analytics about user activity to businesses Advertisements * Data as of July 2010, Source: Anvil Media Inc. What makes a LBSN successful? LowHigh MediumMust Have KSF’s 9
    10. 10. Scope of LBSN In India 10
    11. 11. Internet & Mobile Users in India  Fastest growing mobile market  635 million mobile users by June, 2010  Household possession of mobile phones in 2009 was 18.4%, up from 4.1% in 2004  In 2009 mobile revenues contributed 75.8% of overall telecoms revenues up from a figure of 34.0%. In 2004 71 million Internet users in 2009; up by 20% from 57 million in 2008  52 Million “active” users ; 40 million urban and 12 million rural users  School & College students contribute to more than 44% of all Internet usage 11
    12. 12. Mobile Internet Usage in India 11% 35% 33% 10% 7% 4% Distribution of Mobile Internet Users school going kids college going students young men older men working women non-working women 68% of mobile internet users are young men & college going students !! Around 63 million urban Indians accessed Internet using their mobile phone in February, 2009  16 million urban Indians access Internet on their phone almost on a daily basis  Mobile internet subscribers in India is estimated to be 260 mn by 2015 51% of people access internet for entertainment that includes music, videos, chat & social networking sites 12
    13. 13. Growing Popularity of Social Networking Sites in India  7th largest market worldwide for social networking  More than 33 million Internet users visited social networking sites in July, 2010  social network site visitors grew at a rate of 43% over last year  Top 3 social networking sites are: Facebook, Twitter & Orkut  89 % of the 15-25 year olds access a social networking site everyday  60 % of them spend at least half an hour on social networking each day  30% of India’s youth access networking sites from their mobile phones Facebook Orkut Tweeter 7.5 17.2 0.98 20.9 19.9 3.3 SubscriberBase (in million) Jul,09 Jul,10 Indian Youth segment in 15- 25 age group is the most promising segment 13
    14. 14. LSBN Target User Characteristic Early adopters of technology Loves to keep in touch with friends Social Networking Activities: Pictures, Comments, conversations, music Talks about entertainment, fashion & current affairs Looks to his network first for advice and tips rather than going for ads Needs accessibility, prefers access anywhere, anytime Who is our Target User? • 15-25 year old: primary focus • Educated, Social, Extrovert • Is more active, travels and socializes • Is tech savvy, fond of gadgets • Uses mobile VAS like internet 14
    15. 15. Introducing 15
    16. 16. Our Product Offering Tell the world-Where you are Gift for your friend Ask your Question Travelogue •Leopold Cafe1 •UB city2 •Inorbit3 •The Delhi Durbar4 •India vs Pak(8/11)5 TOP 5 Catch Me •The first Location Based social Networking Website in India •Just download the application to your mobile and get started… •Check-in to various places through your phone Innovative Features •Future Check-Ins •Travelogue •Memoirs •Gifts 16
    17. 17. MUST HAVEs for - Features LBS features Navigation Information Tracking Advertisement Leisure Games Direction Car Parking Indoor Routing Traffic Mgmt Infotainment Travel & Tourist Travel Planner Yellow pages Shopping People/Vehicle Tracking Product Tracking Banners Games Videos Relevant Ads Buddy finder Instant Messaging Trivia Commenting Tips by users Mobile Games Geocaching Check-ins = Discounts Ownership of Venues Incentives for leaving tips Incentives can be virtual Own Profile Photos and videos Friend lists 17
    18. 18. MUST HAVEs for Technological Infrastructure Interface to access: Mobile, PDAs, Laptops etc. Mobile network to transfers data between mobile terminal and service provider. Positioning component by GPS or mobile communication network Service request Processing for specific location based requests Data and content provider base to store geographical data 18
    19. 19. Dazzlers!! 19
    20. 20. Dazzler No.1: Future Check-ins What else you can do with it? • A way for you to convey to your friends where you will be in the near future • Acts also as a to-do list for yourself • Co-ordinate your activities with that of your friends • Plan trips, meetings, get- togethers and dates • Let the hosts know you will be coming Check-in is a feature to update your present location Profile history gives details of past check-ins The gap is that, there is no option to allow you to plan your future check-ins Some Interesting Ideas future check-in makes possible Events in the city: List activities or events in each city with their venues and timings; Let people check –in for the event letting others know they will be there for the event Group buying: Co-ordinate with other people who want to buy the same thing, to get together at the shop at a particular time. Get bulk discounts!! Movies, Discos or games: Sit next to your friend at the movie, dance with your crush, or cheer a game with fellow fans. Only with future check-ins How it will work? You select the venue as usual The venue will be one you plan to visit in the nest week An option for “plan to check in” When clicked you prompts for date and time Optional to mention time and date Automaticall y adds it to your to-do list 20
    21. 21. Incorporating the fun element Extending user base Providing Real worth to the customer Positive association with the brand Revenue from the brand of the Virtual Gift User(Birthday/annive rsary) visits a store/place/shopping mall Friend of user(another xx user) check-ins Requests the gift for the Birthday/ anniversary to the shop Gift presented to the first user as a surprise Dazzler No.2: Real and Virtual Gifts Users can send virtual gifts to any other user in CatchMe Can choose from a range of options of various brands Increases the binding between friends Will be used heavily during festive seasons- Valentines’ Diwali etc 21
    22. 22. Dazzler No.3: Trivia Corner; Everybody loves questions •Deals with trivia questions, multiple choice •You pose questions to others •You answer other’s questions •The questions can be anything related to the location; Trivia, décor, people, guess other’s interests and activities What it is? •I check-in at my favourite location and see what questions others have put up, answer them and earn points •I pose my own question, either as a single question, or series of questions at different levels •Next user answers my questions and gets points for it How it works? • It’s a peer to peer thing, helps you network with other users who like the venue as much as you do • Makes visiting the place fun – everybody likes to think they know a lot about the place they visit often • Interactive; Can become the thing people do as soon as they check-in • Addictive as a game, since you want to improve your scores, and you can build up on it subsequently. • Has the element of challenge to motivate people Why it will work? Treasure Hunt Instead of a single question, I make different levels with a question at each level User answers question, gets points as usual, but advances to next level Keeps on unlocking different levels – max. no. of levels =10 After crossing the final level, user gets a treasure from me Treasure might be some of my points, one of my badges, recognition or if it is a girl making the questions, her phone no.!! 22
    23. 23. Dazzler No.4: The TOP 5 this month • Leopold Cafe1 • UB city2 • Inorbit3 • The Delhi Durbar4 • India vs Pak(8/11)5 • Top 5 places/ events will be listed on the main page of the website and check-in page of Catch Me • Based on users’ liking and disliking • Businesses will also be paying to keep their name in the Top 5 • Intangible benefits to the user, since he only gets to know the top hangout places in the city • Tangible benefits to the businesses, since getting into this list will be a major boost for that business 23
    24. 24. TRAVELOGUE Only about one location Too much text Expert Articles boring Need to start at 5 am for Palakkad Beach Munnar lake : Boating is especially good in Oct Kolam beach is awesome A ‘trip’ where you can share experience about a place with pictures, tips etc. Highlight and visualize the important information Make your own personal TRAVEL DIARY Interactive/ visual way to see travel info Your memoirs, others convenience What is Travelogue? Dazzler No.5: Travelogue 24
    25. 25. I want to buy only two jeans @ Mega Mart I shout for someone else wants to buy two jeans too Everyone who is checked in @ Mega Mart gets the message Someone willing to buy 2 jeans responds I get my 2 jeans for the price of one Chandan: Jeans Buy 2 get 2 free. I wanna buy 2. Anybody else wanna but the other 2? Vikas: Ya.. I would like to.. Where r u in the store? This feature can facilitate other kinds of interactions: •People shopping for shoes can get real time advice from someone who just bought the shoes •They need not just rely on tips left by people earlier but can get real time advice specific to their questions Dazzler No.6: On the spot networking 25
    26. 26. Dazzler No.7: Memoirs and Memories Location based Check in Micro blogging Pictures and videos Personal Diary Memoirs on your social network • Check in at a location • Go to the memoirs tab and micro-blog about the things that you did at that location • All entries will be sorted against date and location • Not only micro-blog but also add photos, videos and the like for your own private journal How does it work? • It lets you keep a journal on the go, which makes maintaining a journal even easier • The journal can be entirely private or it can be shared with optional disclosure of time & location • You can filter and browse through it either by date, location or tags • Lets you etch your memories as and when they happen What does it let you do? • As my own personal diary of what all I did • I can filter all entries within a period of 2 months and browse through what I did where in my summer vacations at my leisure • Store the favourite memories and remember the occasion and location • Get together with my friends over the weekend and update them on what I did during the week • Never forget the name of the girl with whom you went to Hard Rock café last year What all can I use it for? 26
    27. 27. Rahul Sharma It was a Quite useful info Rahul Sharma Kormangala, Bangalore Likes Dancing, Soccer TIP Shoppers Stop, Bannerghatta is a great place to shop for shoes!! Dazzler No.8: Thanks and Groans One user can thank or groan at another users TIPS/COMMENTS • Incentivizes people to leave tips • Helps identify people who write good tips • Makes the person famous, can be the “Solution Man” 27
    28. 28. Dazzler No.9: The Maze Game Location based Check in Search for nearby friends & their location Solve a maze A personalized hide n seek game • Check in at a location • Go to the Maze tab and see where your nearby friends are. Select one of them • A maze pops up between your physical location and his location which needs to be solved within a specified time • The user can score points which are aggregated as the user plays the maze game again and again How does it work? • Based on the cumulative performance of the user, he/she is labeled differently – novice, solver, qualified and skilled • The user with the maximum points among the friends shall bear the title of ‘Path Finder’ What do you get? 28
    29. 29. Benefits Strategy Pure user to user TangibleIntangible Summary of all the Dazzlers Future Check in Travelogue Thanks and Groans Includes 3rd parties (Business Owners) Memoirs On the spot networking Bolt from the Blue Trivia Corner What we infer? People accept intangible benefits for helping peers, but expect tangible benefits deal when dealing with businesses Top 5 places of the month Maze Game 29
    30. 30. Marketing 30
    31. 31. Marketing Campaign Summary Phases Initial Roll-out Growing the network Building the Brand Focus Awareness Inciting preference and action Cultivating loyalty No. of users Less than 10k Between 10k to 100k More than 100k Primary Medium Offline, PR and Social Media Social Media, Affiliate Mktg Social Media, Affiliate Mktg Marketing Cost Higher, for offline advertising Lesser due to it being mostly online Even lesser due to revenues from affiliates Timeline In the first year Second year to third year From third year onwards 31
    32. 32. New concept, New website People need to be educated about LBSN Website’s visibility to be maximum Short span but frequent advertising required initially Customer should associate LBSN and Catchme directly Offline Advertising Strategies 1 Multiplexes Small ads just before the movie screening 2 Elevators Posters in malls as well as corporate offices’ lifts 3 Airplanes On the back of each seat for greater visibility 4 Taxi/Auto/Buses Short and quick interesting messages can be conveyed 5 Important places Some tourist places and popular hangouts 1 2 3 4 4 5 Phase 1 Less than 10000 users 32
    33. 33. 1. Blitzkrieg Campaign • Create an online presence in all major internet websites • Increase following and membership in the social networking pages • Introduce LBSN topic in forums and communities Online Advertising Strategies 2. Videos on Youtube • Awareness about the social networking avenues in India • LBSN videos with special focus on CatchMe • CatchMe features and usage related videos 3. Online Games • Introduce Treasure hunt game on facebook page of the company • Small games like online version of capture the flagon the website of CatchMe 4. Tap Address Books • Invite new user to add his contacts from Gmail, Facebook, Linkedin, Twitter and Flickr PR Advertising Strategies 1. “Capture the Flag “ 2. Radio Advertising • Capture the Flag game in each metropolitan city • Flags placed in actual physical locations • Users have to collect the maximum number of flags in a day • Increased awareness throughout the city Location based radio contests Catchy one liners like given in ad examples Promote using location based songs Phase 1 Less than 10000 users 33
    34. 34. Some creative Ads to use in the media..  What did Neil Armstrong do when he landed at the moon? He checked in at “the moon” in Venue Mt. Everest No. of check-ins 4100 Mayor Apa Sherpa Want to network from your venue? Log in @ 34
    35. 35. Affiliate Marketing Consumer McD, Barista, CCD Gives discount to customers Consumer visits them more often McDonald’s reaches 0.5mn customers each day, Barista claims 18% of their customers visit daily, CCD has 969 stores across India as of date. With partners of such huge reach, providing venues which are very suitable for LBSN, it will reach the right customer, at the right time and the right place. They will benefit once we reach critical mass since we have customer data and behaviour and are also in a position to influence them. Other potential Affiliates Mobile Handset Stores: Initially advertise in mobile handset stores through posters, since most of the applications are loaded with the help of the store or right after purchase. Mobile stores are also the places where people check out what’s new in the market. Messages get higher attention, repetition and hence retention. Tourist Places, Buses: The tourist destinations are places people would like to check in to show where they have been, and people who access net on tours are mostly mobile internet users which is our target group. They have sufficient time and leisure during tours to take notice and take action to download the app and try it out. Phase 2 10,000 to 100,000 users 35
    36. 36. Online Affiliate Marketing/ Social Media Marketing Extensive affiliation needed. Affiliate with major networking sites in India and leave links and RSS feeds for people to subscribe to in these sites Online affiliate marketing is well established. Our USP would be being location based and being able to connect with all types of networks: blogs, networking sites, review sites, online gaming, forums, e-auction sites and such. Phase 2 10,000 to 100,000 users 36
    37. 37. • Collaborate with mobile phone manufacturers/stores • Make CatchMe a default application • Boost advertising in Mobile stores like Nokia Priority , Apple iStore etc • Stores will be added as check-in locations on CatchMe Mobile Stores • Offers like Buy to get Two in places like Shoppers Stop and Big Bazaars as explained • Can give exclusive offers to Loyal visitors of places like CCD, McD • Travel merchandize for Globetrotters – Titan fasttrack ,VIP, Reebok Exclusive Offers Partnerships Catch Me!! CatchMe!! collection All Mayors @ CatchMe get 5% discount on all CCD outlets Phase 3 More than 100,000 users 37
    38. 38. Affiliate Marketing Social Media Marketing Online marketing at full speed ahead. Create pull for instead of us pushing the brand through increased user base Collaborate with websites like Facebook, twitter, flicker – mutual advertising, provide links to profile on profile of these websites Sponsored search in Google- related to LBSN, CatchMe and social networking in India CatchMe ads in Travel sites, tourism websites- their venues as check-ins in CatchMe Partnerships with local info sites like,, Loyalty programs – Highest check-ins, most active users Award status of “Globetrotter of the day” to maximum no of different check-ins a day “Sponsored trips “within city to a group of loyal users APIs be freely available for extension People allowed to build on games, and further add-ins Phase 3 More than 100,000 users 38
    39. 39. Viral Marketing Give away products for free or at an discount Provide for effortless transfer to others Scales easily from small to very large Exploits common motivations and behaviors Utilizes existing communication networks Takes advantage of others resources Essential Components of a Viral Marketing Campaign 39
    40. 40. Viral Marketing – Inherent nature of dazzlers Future Check-ins Travelogue Memoirs & Memories Thanks & Groans On the Spot Networking Bolt from the blue Trivia Corner Maximize Word of Mouth High Network Value Intention to recommend Increase the number of active users Free/ Discounted Products Effortless Transfer to others Scalability Exploits common motivations & behaviors Utilize existing networks Taking advantage of other resources The dazzlers exploit user’s common motivations & behaviors and can be transferred effortlessly Top 5 Venues The Maze Game 40
    41. 41. Viral Marketing – Marketing campaign Maximize Word of Mouth High Network Value Intention to recommend Increase the number of active users Free/ Discounted Products Effortless Transfer to others Scalability Exploits common motivations & behaviors Utilize existing networks Taking advantage of other resources Advertising in airplanes, multiplexes Advertising in popular spots, office areas Presence on popular websites You Tube Videos Online games Radio Advertising Capture the flag – Offline game Affiliate Marketing The marketing campaign utilizes existing networks and are scalable 41
    42. 42. Viral Marketing Give away products for free or at an discount Provide for effortless transfer to others Scales easily from small to very large Exploits common motivations and behaviors Utilizes existing communication networks Takes advantage of others resources Dazzlers Marketing Campaign A set of complimentary features that leads to a comprehensive viral marketing strategy 42
    43. 43. Monetization 43
    44. 44. Distinction Between Users & Customers CUSTOMER A customer is a person who provides you with income. USER A person USER An user is a person who gets hooked to your site as he receives some value back e.g. information, fun, socialization, etc Challenge is How to convert an user to a customer ?? 44
    45. 45. Exploring Monetizing Options Charge other companies for advertising in your site. A definite option for Charge the users for using your site Not an option as it will lead to loss of consumer base Charging the customers a part of their transaction. A possible option for future “clip of the sale” – a percentage for enabling transactions to take place A viable option for 45
    46. 46. •Advertising of various brands, products and places can be done on the website •Will generate revenue from B2B players •For this, PPC (pay per click) revenue model can be used •Focus should be on contextual adds Known Monetization Strategies Advertising 46
    47. 47. Monetization strategies Virtual Goods •Add virtual goods on the website •Users can purchase them while playing online games like in Capture the Flag contest •Fun stuff like eyewear, watches, bikes, shoes, waterflask, jerseys etc •These virtual goods will be of some brands like Titan fasttrack, Reebok, Bajaj Pulsar etc •Can gain revenue from these B2B customers to promote their brands •This can promote the usage of “virtual Money” which is again a vsource ofrevenue. 47
    48. 48. Merchandising of real life products •Products can be sold online as well as through mobiles •CatchMe merchandize available at reduced prices initially •Further with the popularity of the site the prices can be increased •These products can be picked up from any select venues on CatchMe like CCDs, McDs etc Event Management •Can collaborate with various important events in the city •Can give customized messages to users in the vicinity about those events • Can share revenue generated by ticket selling of the event Events can be anything like Cricket Matches, Fashion shows or plays Monetization strategies 48
    49. 49. Market Intelligence •Revenue can be generated by selling feedback, psychographic & demographic information •Market Research and advertising firms like AC Neilson , O&M can be partnered with •Reviews/Feedback about certain places like malls, multiplexes, hotels and restaurants can be provided •Data can be gathered through community discussions or selection of ‘virtual goods’ ‘Top 5’ places •Revenue from important places in the city like restaurants pubs and other hangout places •Users also will get the most frequently visited places • This will be a kind of B2B revenue from the Top 5 places •Important places/venues can also bid for the Top slot Monetization strategies 49
    50. 50. FINANCIAL PROJECTIONS As is evident from the financial projections, the company can Breakeven in 5 years 0.37 0.68 1.25 3.32 12.84 1.71 1.96 2.18 3.21 6.48 -1.34 -1.28 -0.92 0.11 6.36 -4 -2 0 2 4 6 8 10 12 14 1 2 3 4 5 Rupees(inmillion) Revenue Cost Profit Years 50
    51. 51. FINANCIAL PROJECTIONS- The Break Up Revenue Break Up Cost Break Up The Break-Up of the Revenue and Costs is according to Year 5 as we need to consider the long term horizon for stability 69%1% 30% salary website cost marketing budget 32% 29% 23% 6% 2% 8% Virtual Good Event Management Merchandising Market Intelligence Top 5 places Advertisement 51
    52. 52. Implementation Plan 52
    53. 53. Implementation plan 0-6 months 6-12 months Year 2 Year 3 Year 4 Year 5 Website Features Marketing Plan Geographies Revenue Models Website Launch Basic Features Games on including User to user Dazzlers On the spot networking Future Check-ins + its features Bolt from the blue Phase 1 of Marketing Phase 2 of Marketing Phase 3 of Marketing Expand within Major metros Target Tier 2 cities Include more cities and integrate all cities into a single network Virtual Goods Event Management Well known Monetization Strategies including ads, affiliate marketing Merchandising Top 5 cities Market Intelligence 53
    54. 54. References • Foundations of Location Based Services by CartouCHe, Stefan Steiniger, Moritz Neun and Alistair Edwardes • Integrating Trust with Public Reputation in Location-based Social Networks by Touhid Bhuiyan, Yue Xu and Audun Jøsang • Location-Based Social Networking, a Marketing White Paper 2010: The Marketer’s Guide to Location-based Social Networks by Anvil Media, Inc • • • • • • • networks • • • • 54
    55. 55. References • hp • • based_social_networking_useful.php • _growth_35681 • • • • models-and-how-you-should-implement-them-in-2010/ • • • 55