Long Taill how impact the business,have a look.

1. Application of the Long Tail concept in
Internet marketing
By:-
Dinkar Pratap Singh,MBA,
DMS, Pondicherry University

2. What is Long Tail?
• TheLongTailis aretailing concept describing the niche strategy of selling a large
number of unique items in relatively small quantities – usually in addition to
selling fewer popular items in largequantities.
• In amarket with nearinfinite supply(hugevariety of products), ademand
will exist for eventhe most obscureproducts.
• Theconcept was
popularized by Chris
Andersonin anOctober
2004Wired magazine
article.

3. Before the introduction of LongTail
Thetwentieth-century commerce hasbeendominated by:
 Anintense searchfor one-size-fits-allproducts.
 Companiestrying to predict demand for their goods.
 Products that don'tsell immediately getting pulled quickly.
 Alimited range of popular products beingavailable.
The introduction of the internet and commerce hascreated an era of unprecedented choice
for consumers. When you have a store with unlimited shelf space, you serve the long tail
part of the demand curve.

4. The driving forces behind the
long tail phenomena
In a nutshell long tails emerge in an industry whenever the cost of reaching
niches gets reduced to a very low level. There are three powerful forces
which cancausethese coststo fall:
 Thetools of productionbecomemorewidelyavailable.
 Thecostsof distributionarecutappreciably.
 Somewayofconnectingsupplyanddemandisestablished.
Wheneverthese three forces are present in anindustry, look for along tail
toemergeas the driving force of commerce.

5. Rulesof success for using the long-tail
Successfullong tail businesseswill treat consumersasindividuals
Thesecret to commercial successin aneconomy dominated by longtail:
1. Make everything you haveto offer available.
2. Helppeople find what theywant.
Thesavvyconsumer isthe best customer and they are the oneswho appreciate and consumethe long
tail.
First time usersor light users should bedirected to the hits table where in over 90%of the time, they’ll
find whatthey want.
Heavyusersshouldbetaken to the hits area but with recommendations andmore
optionsto explore.

6. Consumers Varietyof choices
d
Consumerscurrently face the biggestexplosionofvariety in history. Totake just afew representative
examples:
Theadvertising firm OMDhasestimated there are19,000
variations of Starbuckscoffeeavailable.
Mintil International found in 2003 alone,26,893new food an household products
were introduced. Thesenewchoices
Includes115new deodorants, 187new breakfast cerealsand 303new women's
fragrances.
iTunesnow makesavailable to consumersmore than2 millions
songswhich canbedownloaded for listening in digital format.

7. Theeffect of Longtail
"Goodbye Pareto Principle, Hello LongTail"
 80/20
Competitiveimpact
 Before aLongTail works, only the most popular products aregenerally
offered.
 Examples:

 Largeweb businesswith broad coverage such asYahooor BBCNewsare
threatened by smaller web sites with nichefocus.
Blockbusters is threatened by Netflix becauseitoffers titles that blockbusters
don’t.

8. Whouses Long tail?
 Significant portion of Amazon.com's sales come from obscure books that are
not available in brick-and-mortarstores.
 Employee described the Long Tail as follows: "We sold more books today
that didn't sell at all yesterday than we sold today of all the books that did
sell yesterday.“
 New Media Marketing: Building and managing of social networks, extend the
reach of marketing to the low-frequency, low-intensity consumer in a cost
effective wayoften through RSS feeds and blogs.
 Viral Marketing: Spreading of marketing messages using pre- existing social
networks, with an emphasis on the casual, non- intentional and such as
YouTubevideosandviral emails.

9. Benefits & Drawbacks
Benefits:
Increasestarget Markets
More products on offer toconsumers
SellingLessof more =increaseonprofitability
 Reducesthe cost of storage anddistribution
Drawbacks:
 Internet Accessisrequired for both consumers aswellasfor Business
 Businessneedan e-commerce/website
 Confusionof the distinction between the interpretations of where the "head" and"tail" begin.

10. Thefuture of TheLong Tail
Thingsare going to be different in the future. It helps if you keep in mind afew basicideasand
conceptsabout the realities of the longtail economy:
 Alwaysthink in terms of abundance, notscarcity.
 Blockbusterswill still come along,they are here to stay.
 Theniche revolution will reach everyindustry.
Successfullong tail businesseswill require both hits and niches to prosper well into the
foreseeablefuture.
The question tomorrow will not be whether more choiceis
better, but what do we reallywant?

12. References
http://ministrynetconference.com/wp-content/uploads/200
www.novelr.com/2008/02/08/the-long-tail-and-o...
The Long Tail by Yaro Starak blog