Marketing strategy of web designing service -by group a14


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Marketing strategy of web designing service -by group a14

  2. 2. EXECUTIVE SUMMARYThe Internet commerce industry in India has seen a manifold increase in the last couple of years,with the total market size increasing from Rs 19,688 crore by the end of 2009 to an estimated Rs31,598 crore in 2010.By the end of 2011, the net commerce market size is expected to grow by 47 per cent and touchRs 46,520 crore, the study by the industry body said.We will initially focus almost exclusively on small companies looking to develop an Internetpresence for the first time. We will market our services to small business owners as a "step-by-step" process, initially starting out with a small, simple website, then gradually improving andadding to the site and their entire online marketing efforts.Although we plan to bring on many clients who simply will need an online presence and nothingmore, our most important and sought after clients will be those business owners who are ready toimplement a larger percentage of their company onto the Internet. This type of client willtraditionally need one of the following services:  E-commerce/shopping cart.  Database driven websites.  Dynamic content and website features.  Aggressive online website marketing.With more than 930 million inhabitants, a projection of 60 million Internet users and set to growrapidly to the third largest Internet user base in the world, the number of Internet usersworldwide is expected to touch 2.2 billion by 2013.In a time when the outsourcing of projects is favored, many companies and brands in India aremaking a stand in the Web industry. Although Indian designers follow the web design trends ofthe world, there is a relatively low demand internally. Now that communication is so easy anduncomplicated with new and constantly improving technologies, overseas companies areflocking to Indian creative firms. This way, they get quality work done at a lower cost, althoughthere has been an increase in price evaluation in recent years. Described as the paradise ofoutsourcing, however, the reality is that wages are rising in India. The cost advantage for offshoring to India used to be at least 1:6. Today, it is at best 1:3. Attrition is a frightening conceptbut unavoidable. Jobs that are low value-added and easily automated will very likely disappearwithin the next decade or so.There is a lot of talk about India moving up the value chain. Some of that has indeed happened.An industry that gained momentum is software development. Indian software developers weretapped to help fix the ―Y2K‖ problems in old software code and the industry have blossomed
  3. 3. beautifully into one that offers a more comprehensive spectrum of services. Yet India is still theworld‘s back office. India‘s tech and web industry has an abundance of worker bees. Whatcustomers expect or want, India will provide no questions asked.With this boom in offshore outsourcing, India‘s software and services exports are estimated togrow rapidly. Rates are rising quickly in all markets and the lowest rates are in Pakistan andUkraine. While America and India are in the middle, Europe and California are the mostexpensive. In the tech world, one must really classify California as a ―country‖ on its ownseparate from America. Russia is regional, while there is almost no development servicesexported from Japan (low supply) and from the hyper-fast growing economies like China (toomuch internal demand).Given our experience and expertise in both commercial Web development and business-to-business sales, we believe we can offer a unique and superior service to small business owners,in comparison to what is currently available.The demand and growth rate for Web development and marketing services in the small businessmarket is at an all time high and shows no sign of slowing anytime soon. Even more astonishingis the fact that very few Web development companies have taken advantage of the opportunity,as there are no dominating participants in this huge market.We believe the reason for this virtually untapped market is due to expensive project costs, thehighest profit margins in Web development today are in servicing large- and medium-sizedcorporations. We have developed a system that dramatically reduces steep project costs andhenceforth will allow us to offer the same high-end Web development services as largercompanies receive at a much lower cost to the client.NAME OF COMPANY: WEBSAGA ObjectivesTo provide customers the best quality & professional looking website which improves theirbusiness development .Other objectives: 1. Revenues of rs 600,000/- by month 8 . 2. Net Profit of 26% in year one and 36% in year two. 3. 65% Gross margin by month 8
  4. 4. MissionOur mission is to provide affordable, accessible, and streamlined Internet and Web services tosmall businesses. We have developed a system for offering many different types of Webservices (site development, hosting, marketing, and maintenance) that are exclusively tailored tofit the needs and resources of small companies. Goal is to achieve high level of customersatisfaction by delivering projects within stipulated time. 4500000 4000000 3500000 3000000 2500000 SALES 2000000 GROSS MARGIN NET PROFIT 1500000 1000000 500000 0 YEAR 1 YEAR 2 YEAR 3 Company LocationKolkata, West Bengal—close to our target market area--- approximately 1,700 sq. ft. capable ofhousing workstations for up to 15 workers. ServicesWe focus mainly on the Web, offering the following as our key Bread & Butter websiteservices:  Design and development.  Marketing and analysis  Website renovations and upgrades.  Application development (i.e. chatrooms, message boards, online polling, live-feed audio/video, etc.).
  5. 5.  Website maintenance training.  Internet/website education seminars.  Database construction.  Result-based website marketing.Sales LiteratureWe will distribute a sales folder with all the pertinent information about our company andservices. This folder includes our strong points, history, portfolio examples, and pricing packagesinfo. It also contains facts based on the growth and popularity of the Internet for smallbusinesses.We will design website that provides information about the company, plus a variety of helpfulresources for small business owners which we will be constantly updating.In the next six months, we plan to produce and distribute bulk mail and fax flyers promoting ourWeb development and hosting services to small businesses.We have plans to offer a more compact version of our main sales folder in a brochure format.This brochure will be available both as a mailer to interested parties and as a sales solicitation inarea businesses.FulfillmentFor the website design, development, marketing, analysis, and maintenance we will employindustry professionals to handle our clients needs. To keep employee costs low, we havedesigned a "team" development system that will consist of two full-time sales people and threefull-time Web developers. Of the Web developers, one position will be filled by a highly-qualified senior Web professional and two lesser-qualified, lower paid developers. All three willwork full-time on separate projects provided to them by the sales people. However, the seniordeveloper will have the duty of maintaining the same high quality level of work in the juniordevelopers projects,For the website hosting services we will form several alliances with industry leaders to providetop-rate, reliable hosting solutions. Forming the alliances has allowed us much flexibility inimportant hosting features, customizability, and it has drove costs down dramatically. All thesebenefits are crucial to preserving the integrity of our company as being a fully-rounded Internetsolutions provider for small businesses.
  6. 6. MARKET ATTRACTIVENESS: MACRO LEVELIndia has revealed that India‘a E-commerce market is growing at an average rate of 70 percentannually and has grown over 500 percent since 2007.The current estimate of US$ 6.79 billion for year 2010 is way ahead of the market size in theyear 2007 at $1.75 billion. The following chart depicts the growth of E-commerce in India in thelast couple of years:  websites have become a door of opportunity, and business contactsThe Internet commerce industry in India has seen a manifold increase in the last couple of years,with the total market size increasing from Rs 19,688 crore by the end of 2009 to an estimated Rs31,598 crore in 2010. By the end of 2011, the net commerce market size is expected to grow by47 per cent and touch Rs 46,520 crore.Comprising about 81 per cent of the total e-commerce in the country, the online travel market,which includes booking rail and air tickets, hotel accommodations and tour packages, isestimated to grow by 50 per cent and touch Rs 37,890 crore by December, 2011.
  7. 7. In the travel portfolio, which was worth Rs 14,953 crore in 2009, domestic air travel contributed63 per cent, followed by railway tickets (28 per cent).According to the study, around 7.4 million people in the country bought products over theInternet in 2009.  In India, Internet user base grew by 35 per over last year and the Internet penetration combining broadband and mobile Internet have touched over 100 million users, which is around 7-8 per cent of the 1.2 billion population,‖Internet Usage and Population Statistics:YEAR Users Population % Pen.1998 1,400,000 1,094,870,677 0.1 %1999 2,800,000 1,094,870,677 0.3 %2000 5,500,000 1,094,870,677 0.5 %2001 7,000,000 1,094,870,677 0.7 %2002 16,500,000 1,094,870,677 1.6 %2003 22,500,000 1,094,870,677 2.1 %2004 39,200,000 1,094,870,677 3.6 %2005 50,600,000 1,112,225,812 4.5 %2006 40,000,000 1,112,225,812 3.6 %2007 42,000,000 1,129,667,528 3.7 %2009 81,000,000 1,156,897,766 7.0 %2010 100,000,000 1,173,108,018 8.5 %
  8. 8.  the boom in offshore outsourcing—cost advantage 1:3  Most of small, medium companies are not using webpage-but realizing the benefit.  Non-users of website have no preference for known and tested brands.  Techno-savy business scenario  3 out of 4 Internet users are now on the net ‗daily‘.  the post 1990s globalization and the free enterprise policiesStatistics about Internet usage considering Age Group and Gender :  2/3rd households have ‗multiple‘ users in them  97% are regular users and 79% use daily  70% of people who know computer have used Internet  19-40 years age group constitutes nearly 85% among Internet users  85% of Internet users are male  11% of working women, 6% non-working women and 2% housewives use Internet which is not a very good sign  46% of net users are graduate, 26% are post-graduateStatistics about Internet usage considering cities :  Mumbai has most number of Internet users nearly 3.24 million  Delhi holds the second place with 2.66 million  Top ten cities having most number of Internet users are Mumbai, Delhi, Banglore, Kolkata, Chennai, Pune, Hyderabad, Surat and Nagpur.  These 10 cities has 37% of the total numbers of Internet users in India.Statistics about Internet usage considering browsing habits :  94% of total users use Internet for Email purposes  72% of total users use Internet for download music (73%) followed by Chatting (56%)  Other major purposes for using Internet are job searching (56%), social networking sites(54%) and finding information on search engine (52%)  13,188,580 Facebook users on August 31/10, 1.1% penetration rate of total Internet users  Cyber cafes account for maximum Internet usage with over 37% of all users accessing Internet through cyber cafesThe supportive policy environment created by the Government of India has played a keyrole in the rapid development of this sector. While policies have effected infrastructuraldevelopment of leading cities as IT-BPO destinations in India, additional work needs to be donein developing tier 2/3 cities as viable IT-BPO service delivery locations.In a globally integrated economy, outsourcing is leading to overall benefits for the sourceeconomies, providing significant monetary and employment benefits.The silver lining of the economic downturn is the opportunity for the industry to enhance itsoverall efficiency. Companies are increasingly looking inwards and focusing on processbenchmarking, enhanced utilization of infrastructure and talent, increasing productivity and
  9. 9. greater customer engagement. Coupled with wage moderation and lower attrition, thesemeasures will help industry sustain its margins and invest in future growth.The Government‘s proactive approach towards the IT-BPO industry was further highlighted in2008 through actions such as the IT Act Amendment, extension of tax incentives by a year,removal of the SEZ Act anomalies and the introduction of progressive telecom policies thatfocus on work from home.India is the leading country for offshore outsourcing. The offshore outsourcing industry started inIndia and it has be able to grow the IT and BPO export sector to $47 billion and capture morethan half the offshore outsourcing industry. That is not to say that India does not have challengesor is the best location for every offshore outsourcing effort, but it has an unparalleled history andsize.The Americas and Europe are the largest customers for the Indian outsourcing industry andaccount for 60 percent and 31 percent respectively of IT and BPO exports. The largest verticalsectors are financial services (41 percent), high-tech/ telecom (20 percent), manufacturing (17percent) and retail (8 percent). In 2009 the IT and BPO export industries employed about 2.2million people.IT and BPO services outsourcing first started in India in the mid 1980s. The large, Englishspeaking, low-cost workforce was the main attraction. The industry grew rapidly through the1990s aided by the dot com boom and IT upgrades to prepare for potential Y2K bugs. The 2000ssaw similar growth with work moving to India in down cycles to help companies cut costs and inboom times to capitalize on the readily available talent. cost advantage of offshore outsourcing-1:3The 2008-2009 global recession has had a negative impact on outsourcing growth in India, butthe sector was experiencing a turn-around in 2010. Many US and European companies are stillcautions about the speed or staying power of the 2010 economic recovery and thus are looking tomaintain a low cost base in locations such as India.Offshore Outsourcing Model offers businesses multiple benefits in terms of Cost, Quality andTechnical Excellence. Here are some of the noticeable benefits of Offshore Outsourcing Model: Realistic cost savings of about 40% as compared to onshore or domestic markets. (Source - Ventoro Research Report) Quality Product Delivery by offshore companies using their expertise, extensive domain knowledge and implementation of Matured Execution Models in their processes. (Source: NASSCOM) Technical Excellence offered to clients by capitalizing on quality Human Resource, robust infrastructure and domain related Research and Development (R&D). Maximum time benefit by leveraging the time difference between service provider and service requester.
  10. 10.  Reduced project cycle by implementing globally recognized Project Management systems in their operational activities.  Operational Flexibility by quickly adapting to changes in business requirements.  Better finance management through clearly defined financial obligation and reduced cost.  Improved competitiveness since offshore companies deliver quality services at affordable rates.  Renewed focus on company strategic plans by outsourcing certain non-core business operations to offshore companies.  Exposure to new markets by making alliances with offshore companies and taking business to unexplored areas.The country‘s domestic market for business process outsourcing (BPO) is projected to grow over23 per cent to touch US$ 1.4 billion in 2011, says global research group Gartner. In 2010, thedomestic BPO market was worth US$ 1.1 billion. The firm predicts that the domestic BPOmarket would reach US$ 1.69 billion in 2012 and increase to US$ 2.47 billion by 2014.With the first quarter of the new fiscal 2011-12 offering positive business outlook, hiringsentiments for sectors like IT, ITeS and telecom have risen by over 20 per cent, says a study byTeamLease Services Pvt. Ltd. As per the Employment Outlook Report for the period April-June2011, released by TeamLease Services Pvt. Ltd., hiring intent from IT and ITeS was the highestin cities like New Delhi, Mumbai, Hyderabad and Pune.Certain crucial steps taken by the Indian government to propel the sector growth are:  Constitution of the Technical Advisory Group for Unique Projects (TAGUP) under the chairmanship of NandanNilekani. The Group would develop IT infrastructure in five key areas, which includes the New Pension System (NPS) and the Goods and Services Tax (GST)  Setting up the National Taskforce on Information Technology and Software Development with the objective of framing a long term National IT Policy for the country.  Enactment of the Information Technology Act, which provides a legal framework to facilitate electronic commerce and electronic transactions.  Setting up of Software Technology Parks of India (STPIs) in 1991 for the promotion of software exports from the country.There are currently 51 STPI centres where apart from exemption from customs duty available for capital goods, there are also exemptions from service tax, excise duty, and rebate for payment of Central Sales Tax.
  11. 11.  Plans to formulate Information Technology Investment Regions (ITIRs). These regions would be endowed with excellent infrastructure and would reap the benefits of co-siting, networking and greater efficiency through use of common infrastructure and support services. India is gaining unprecedented global popularity and more and more companies are turning toskilled labor in India to provide web development services. Foreign clients have begun toacknowledge the technical expertise Indians possess in this field. Apart from being technicallyproficient, we also have fairly good English language skills that help us to communicate withforeign customers. Several multi national companies have acknowledged the quality of servicesthey‘ve received from web development company India and more and more corporations arecoming to us with their assignments.There are a number of reasons that go towards making India as a hub of web developmentservices:1. A well qualified work force that possesses technical skills along with the know-how is a greatbonus that India offers to the world.2. Foreign companies get the added benefit of lower operating costs as compared to othercountries like America, Canada, UK and Australia.3. A pro-IT government which supports the growth of IT in this country and formulates policiesaround it.High quality infrastructure like satellite communications and broadband internet which helps usto stay in touch with our customers, anytime and anywhere.NASSCOM said that the domestic IT-BPO revenues excluding hardware are expected to havegrown at almost 16 per cent to reach US$ 17.35 billion in FY2011. Strong economic growth,rapid advancement in technology infrastructure, increasingly competitive Indian organisations,enhanced focus by the government and emergence of business models that help provide IT tonew customer segments are the key drivers for increased technology adoption in India.The data centre services market in the country is forecast to grow at a compound annual growthrate (CAGR) of 22.7 per cent between 2009 and 2011, to touch close to US$ 2.2 billion by theend of 2011, according to research firm IDC Indias report. The IDC India report stated that theoverall India data centre services market in 2009 was estimated at US$ 1.39 billion.India will see its number of internet users triple to 237 million by 2015, from 81 millionregistered in September 2010, according to a report titled Internets New bn, by the BostonConsulting Group (BCG). BCG said Internet penetration rate in India is expected to reach 19 percent by 2015, up from the current seven per cent.Telecom Regulatory Authority of India (TRAI) is targeting a 10-fold increase in broadbandsubscribers to 100 million by 2014. The country has 10.29 million subscribers now. "We willhave 100 million broadband subscribers by 2014," J.S. Sarma, Chairman, TRAI said at the fifthIndia Digital Summit 2010 organised by the Internet and Mobile Association of India.
  12. 12. The penetration of the internet in rural areas will see an all time high in 2011. In a surveyconducted by IMRB for the Internet and Mobile Association of India (IAMAI), the total numberof active internet users in rural area will rise by 98 per cent to touch 24 million by the end of2011 from 12.1 million in December 2010. The survey said that the claimed internet usercategory is also set to grow by 96 per cent to reach 29.9 million by December 2011 from 15.2million in December 2010. (Active users are those, who have used the internet at least once inthe past one month. Claimed internet users are those, who have used the internet sometime butnot necessarily in the past one month.)Indias technology sector is bracing for a potential slowdown in growth after the historic downgrade over the weekend, which heightened fears of a double-dip recession in thelargest outsourcing market and sparked a sell-off in IT stocks Monday.Indian technology companies earn more than 80% of their revenue from the U.S. and Europe.Coupled with a full-blown debt crisis looming over Europe, the Standard & Poors downgrade ofthe U.S. debt rating is raising concerns of a return to the recessionary times of 2008, when thelocal software industry bore the brunt of lower spending by cash-strapped clients.The Bombay Stock Exchange technology index closed 4.3% lower Monday, leading the 1.8%downfall in the broader Sensex.The downgrade may lead to a slowdown in business in the immediate term, MICRO LEVELIndia will see its number of internet users triple to 237 mn from the current 81 mn by 2015,according to a report.In a study titled Internets New bn, the Boston Consulting Group said Brazil, Russia, India,China and Indonesia (BRICI) will have more than 1.2 bn internet users by 2015 - well over threetimes the number of internet users in Japan and the US combined.The number of internet users worldwide is expected to touch 2.2 billion by 2013 and India isprojected to have the third largest online population during the same time  Real estate, healthcare ,retail, manufacturing, telecommunication [vendors] and other smes have understood importance of website and e-comerce.  We are Ready to provide cost efficient package---domain name registration, web hosting and development, web designing[novel and SEO friendly]and maintenance.  We will offer round the clock customer support
  13. 13. INDUSTRY DOMAINS MACRO AND MICRO LEVEL MACROBY PORTER 5 FORCE MODELIntensity of rivalryIn India, .com and .net domain names reached a total of 1.037 million domain name registrations.The total number of domain name registrations in India is estimated to be 2.15 million. Thesenumbers are no doubt very modest when seen in the overall context – India has 100 millionInternet users4 and nearly 26 million micro, small and medium (MSME) businesses in India.All of these web pages are created by web designers who often have private intentions to put aprofile of them in the internet but the majority have commercial intentions. There is anuncountable amount of agencies, self-employed or part-time web designers who all offer thesame product for privates, small companies or whole enterprises just in India. so there is aconstant entry of new competition into the market to cover the high demand of web pages.Potential customers have a transparent market where they can choose the company they want.They can compare prices and services very easily through the internet. Furthermore customers donot make decisions due to barriers they have in a market outside the internet. There are neitherinfrastructural obstacles nor problems to get information for them, so web designers work in analmost perfect competition. They have very low entry barriers because the threshold resourcesare only a computer and informatics knowledge. The exit barriers are low as well, because anagency does not have many employees or expensive goods. So they have neither socialresponsibility nor materialistic factors to lose. They have no core competences to distinguishthem from others in their industry.Web designers do not have the choice to compete on price, each of them possess a very lowmarket share. In an atomic competition a seller would immediately lose all buyers, if he changesthe price. They cannot compete on the product, either. Although there are differences in thequality and the way of programming a web page, the result is always the same. Every web pageuses the same standard and has almost the same buttons to standardize it for the users. There isno space for experimental programming. Those who try to launch an innovative web page loseusers to other pages which maintain the standards. They have to compete in other ways. Aprinciple of the web design industry is that you have to have a well optimized web page for thesearch engines like Google, Yahoo or MSN. In this environment the most important competenceis that people find your business in the search engines and that your own web page presents agood overview of your work.Besides they have to fight for every new customer. A lot of time is not needed to create webpages but is needed to optimize their own one. It often takes half a working day to optimise a
  14. 14. web page for the Google results, because of the extremely high competition. More than 80percent of the web designers do Benchmarking observing key competences like the corporatedesign, the success or the strategy. An intensive discussion of established operators suggests thepossibility of efficient electronic processes to identify as a template for your own e-shop.Although there are many competitors with very few market shares, the intensity of rivalry is aweak force. The market is still growing and the financial risks are low.The number of Internet users worldwide is expected to reach 2.2 billion by 2013 and India isprojected to have the third largest online population by that same time. As more users comeonline in the next two years, the Internet will become an even greater force, one that businessescannot afford to neglect. This may perhaps provide the required impetus for more MSMEs inIndia to register their domain name and build their business identities online.Bargaining power of buyersThere are three groups of customers. The buyers of a web page could be private or businesscustomers. But within the group of business customers you also have to differentiate betweenthose who only want a company presentation on the internet and those who want a completeonline shop with thousands of products.Non-commercial customers who want to use a web page for personal reasons like their ownbiography or their wedding do not have the power to negotiate with the agencies. Normally theyhave a lack of the right understanding of important technical aspects of a web page. They oftendo not compare different market players and their services or prices. Nevertheless agenciescannot charge a high price because in comparison to other online services a private web page is alow involvement product. It is not vital for the buyers to have this product so they can cancel theproject easily, if the price rises too high. Most of the agencies say that customers can negotiatethe price, but in fact there is only a small range. Instead of a professional wedding page theycould create their own page in one of the social media portals like Facebook for uploading theirstories and photos. Another solution for them is to use a home page construction set softwarewhich often costs less than 2000/-.The second group contains companies which only want a portal for presenting themselves likesmall factories, retailers, lawyers or associations. The product they want is more complex thanthe previous. The amount of separate pages is higher, they have higher demands on the designand the textures and their pages need regular updates. These business customers have a greaterawareness of what they want, so they compare competitors and their prices. But their bargainingpower is limited as well, because one third of the web designers have fixed prices for their
  15. 15. services and those who let you negotiate only give only small discounts. Business customersnegotiate on service. They ask for different designs or technical support. In the service sectorthere are slight differences and agencies have more scope than self-employed web designers.Companies who wish to have an online shop or other complicated internet applications where theuser interacts with the system have bargaining power. This is the high price segment and requiresa lot of informatics knowledge and experience from the agency. The involvement is high becausethe customers have to have a good knowledge of what they want and need, as well as theagency‘s needs to convince the customer with their competences. A failure in this area means aloss of money. Agencies not only need informatics knowledge, but also marketing knowledge tosell the products to their customers online.In general it is said that the more complex the web page is, the more bargaining power thecustomer has. There is a transparent market without switching costs and brand identity for thecustomers and furthermore there is a buyer concentration in the same amount like a firmconcentration. The higher the price of the web page and the higher the internet knowledge of thecustomers, the stronger is this force.Bargaining power of suppliersDue to increasing demand-google, yahoo, altavista etc have decreased price of web space andmaintenance—8000-8500/- for unlimited for an year.Web designers sell virtual products, so the suppliers of them do not play a big role. In a classicalbusiness there are needs of raw materials and supplies, but in an online business you only havecosts for office supplies, hard- and software, rent, office furniture, running costs and advertising.None of these costs are directly related to the product, so the production of a web page only hasfixed costs (except personal costs). Most of these costs are insignificant in comparison with thebenefits of the product. Suppliers do not have any power or influence on these costs because theordered quantity of furniture, electricity or office supplies is as high as in private households.The rent neither is an important factor. A web design agency is not dependent on a certainlocation of its office like advertising agencies which need to be centrally located in a city inorder to be findable since the acquisition of customers mostly works online.There are two types of important costs: On the one hand hard- and software like computers ornew programs. Prices have decreased during the last ten years and there are many differentsellers of computers. In addition to that agencies buy these things normally once every few years.The power of suppliers is limited because the different computers are substitutes of their selvesand prices are transparent
  16. 16. On the other hand there are advertisement costs. These are the most significant costs in thissector. Web designers have to make a great effort to spend money for advertising in order to selltheir products. The most common form of advertising for them is Google Adwords. Google isthe most important tool for companies selling online, so they set the price and it has to beaccepted. There are other possibilities to place adverts on the internet, but the whole marketadopts Google‘s prices.Suppliers are not able to bargain with the web designers, because they do not spend enoughmoney on them and normally it is easy to switch. Only Google advertisements represent a strongforce. All the other suppliers are extremely weak.Threat of new entrantsA newcomer has the same costs in producing a web site as those who are established in thissector. As you can only decrease costs per piece slightly by using already existing templates,economies of scale do not play a role for a web designer. The cost advantage of experiencedmarket players is only reflected in the existing soft- and hardware they have. The main resourcesfor a web page are time and knowledge and the fix costs are low, therefore the possibility to cutcosts is only given on a limited scale. For building up a new web design company there is onlylittle tangible capital required. Most of the required capital is intangible for instance knowledgeand experience. The knowledge is easily available in blogs and books, but the experience isneeded to put it into practice.Another entry barrier is the brand identity which is an important factor. Customers do not havethe same brand awareness like in other businesses, but if in the e-commerce business there is aneed of a good online reputation, so you have to present references as well as evidence that youare able to optimize a customers‘ web site in search engines. It is also a noteworthy obstacle thatweb designers who stay in the business for years already have good positions in the searchengines and new entrants have to make a great effort to drive them out of these positions. Theexisting companies continue improving their positions as well, so the entrants are obliged towork much harder than the existing competition when they start up. Established firms have anadvantage in the experience they gained. They already made the mistakes which new entrantsstill have to make. They have to contemplate a lot of small matters which can improve acustomer‘s web page.An advantage for new market player is that they do not have to expect retaliations from existingagencies. In a perfect competition the market share of each participant is so small that it is notworth fighting for. On the contrary. In the e-commerce you can only survive if everyone createslinks to each other, thus a community was created on the internet where web designers help eachother and give hints to new ones. The more you help for free, the more clients you can acquire,
  17. 17. because you are demonstrating competence and trust.It has become more difficult in the last two years to enter the web design industry, but nowadaysit is still possible building up your own business without great capital efforts but with a greattime and knowledge investment.Threat of substitutesA substitute is a product with similar features to the initial product. In this context replacementsfor commercial web sites are other shops where you could buy the same product, books andmagazines as well as institutions where you can spend leisure time. Actually, the model of thediversification steps is to amplify own product portfolio, but it is also useful to identifysubstitutes.But a web site is a relatively young product which lately has started to be a substitute for thoseproducts. The buyer propensity of the classical shops is decreasing and even inexperiencedpeople have started to buy online. The turnover of e-commerce is not only increasing, but alsothe possibilities of online leisure time activities. Mostly everything from everyday life can bedone online, and as a result a countermovement is emerging where people wish to have again asame experience. But this is just a niche movement which really cannot compete with a modernonline shop.Another substitute of a web page is the mobile internet. Technology goes on and web designershave to keep their informatics knowledge up to date, because customers start demanding that aweb page has to be accessible with their mobile or blackberry. So future online shopping willtake place on the way. At the moment is not a real danger given that the mobile net drives theinternet out of business. It has to be seen as a complement.
  18. 18. MOBILE INTERNET GROWTH:The last substitute worth mentioning is the social platforms where companies and privates canpresent themselves without having their own web page. In the huge portals like Facebook orTwitter they can install an interactive page with communication features. Web designers have toconvince their potential clients purchasing their own web page to meet their marketingobjectives. The social platforms are only interesting for those who go without an online shop,hence for those who do not want to spend much money anyway. The switching costs areenormously high because they have to change from a free product to a paid productConclusionAccording to the model of Porter‘s five forces it is worthwhile entering web design industry.Most of the forces are weak and even the strong ones are not impossible hurdles. In figure belowyou see an overview of Porter‘s five forces in the web design industry and the changes that occurif the complexity of the web site increases.
  19. 19. There is a great competition between the web designers, but there is also a growth which isenough to enter the industry. But within the last five years the rivalry situation has been strongerand the market growth lower. With technological advancements the entry barriers and theknowledge have grown. For a professional web site today you need more than informaticsknowledge, but also a good marketing knowledge and the ability to negotiate with yourcustomers. With the right strategy it is still possible to make a lot of money online. MICRO LEVEL  Expertise over variety of platforms—php, .net, html, dhtml, ajax, flash, java etc. allows us to develop solutions that are not tied to a specific vendor or product.  Offering low price—20 mb space/.com domain/web hosting/web designing/logo design/2 months maintenance free --- Rs.2300/-  Design expertise and experience on various deployment architectures  Creative team of experts has a thorough understanding of the general culture and can deal with different subjects and can design logos  With professional animators in team-- quality animations at competitive prices.
  20. 20.  Employee relation and organization culture—provides value for every employees. Employees work as a family members. For a junior executive door of Top management remains always opened. TEAM DOMAINSMISSION, ASPIRATION, ABILITY TO CONNCTEDNESS EXECUTE CSFsPROPENSITY OF RISK ACROSS VALUE CHAINto provide customers the best reference building– Loyalty based programme—for existingquality & professional looking building brand image customerswebsite which improves theirbusiness developmentto achieve high level of Creative design-cms web each consumer-- a partnercustomer satisfaction by developmentdelivering projects withinstipulated timechange in technology Timely completion of Technical training to my clients customized web pageFinancial condition is weaker Proper maintenance and RSS feedsthan other big players after sales service
  21. 21. Target Market Segmentation StrategyWe will focus the majority of sales and marketing efforts toward attracting small businesses. Thereason for this decision is simply the low amount of services available for a market with such ahigh demand. In addition to the very promising supply and demand ratio, it is also technicallyeasier and less expensive to market to and attract small website projects than larger projects.  Demographic—type of company,[0-50 employees], revenue of company, number of clients of my customer, computer awareness, population  Geographic- east India[rural and urban]and foreign market[offshore outsourcing]  Behavioral—consumer need-type of needs—for information, inclusion of shopping cart, to make a presence, for networking, to intensify public interest, to serve customers etc. Choice of design , up gradation of webpage, Usage of website, influence of reference , use of media, to increase salesMarket NeedsThe need for small business Internet services has existed for several years. Small businesses andstart-up businesses alike are migrating onto the Web at an astonishing rate and making theironline presence a higher priority than in earlier years. We have noticed an enormous holehowever in the small business services that are currently available.Without a doubt, there is a need for custom, high-end, dynamic services designed exclusively forsmall businesses. At this point, the majority of our competitors are offering services tailoredaround big business, to small business owners, or they are offering the exact opposite, one-dimensional, "cookie cutter" type services.While every small business has now recognized the need for having a presence on the Internet,many do not know where to start, how much it will cost, or even how it will benefit theircompany. It has been our experience by talking to small business owners that the decision to takeadvantage of the Web is not a matter of if but a matter of when.Market TrendsAn important market trend right now is the one toward aggressive online and website marketing.Although many small businesses are still waiting to gain an Internet presence, those who alreadyhave are beginning to look for more options along the lines of improving their existing efforts.
  22. 22. We believe that in the upcoming years, small companies especially, will start to look for moreways to increase the traffic to their websites.Another important trend is the overall merging of daily business operations with the Internet andWorld Wide Web. Just as the majority of large companies have already started to use the Web tohandle interoffice tasks, we believe that many smaller companies will begin to realize the timeand money saving advantages to this strategy.Market GrowthOur target market is growing and expanding toward Internet and Web usage at an astonishingrate.Service Business AnalysisWeb services and development companies vary greatly in the type of service they offer and thetype of client they attract. We will be relatively unique in the fact that we are marketingexclusively to small businesses.This industry consists of many small Web development firms usually less than 10 years old thatgenerally start out offering services to smaller companies but with long-term goals of catering tolarge, corporate Web accounts. COMPETITORSMain competitors of us are Miracle studios, lnsel, India designers, dimension india, Agts india,XigmaPro, web design company, mail mantra, century website, 32 bytes, brand mantra, ai future,websys, glosoft india, adisol, webkriti, Calcutta webdevelopoers, Taragana INC, websoft etc. WHAT COMPETITORS ARE OFFERING1.Digital fusion:  Web site designing/portal management/E-commerce solutions  Banners  Logo Design  Email News Letter
  23. 23.  Corporate Presentations  Web Hosting-linux and windows  SEO/SEM 2.LNSEL:Web Designing Services:- Static Web Design (Table & Div Based)- Website Maintenance & Re-designing.- Flash based Web Design.- Blog Customization.- Cross Browser Web 2.0 based Web Design.- W3C Validated Web Design.- Web Design for Small Business Enterprise.- Website Template Design- Logo & Brochure DesigningWeb Application Development:- Portal Development- Content Management Systems (CMS) Development.- Community Portals- Custom Shopping Cart- Payment Gateways- Database Solutions- Ecommerce Development- E-Market Portal- Enterprise Portals- Cgi /Asp Script InstallationSearch Engine Optimization:- Organic Search Engine Optimization (SEO).- Pay-Per-Click (PPC) Consulting.- Google Sponsored Link Consulting.- Search Engine Marketing (SEM).- Email Marketing.- Article & Directory Submission.- Link Building.
  24. 24. - SEO Consulting.- SEO Copy writing.- Website Tracking Reports & Analysis.Web Hosting & Domain Name Registration:- Windows Hosting with POP3 e-mails Id.- Preinstalled & Ajax.- Preinstalled CDO Mailer Component.- Mssql Database Support.- Catch-all Account, Anti Spam Filter & Email Forwarding Services- Database Solutions- 24/7 Server Monitoring Support.- Email Hosting.- Domain Registration for .com, .net, .org, .in, .info,, .biz,, Full user friendly Domain & Hosting Control Panel with DNS details3.INDIA DESIGNERS:  Custom Web Design  Tableless Div Based Design  PSD 2 XHTML Conversion  Web 2.0 Based Design  Industry Based Design  Website Re Design  Web Design Portfolio  Web Design Packages  Client Testimonials  Graphic Designing, Logo Designing, Web Development, SEO Services, E-commerce Development, Multimedia, Content Writing, Web Hosting
  25. 25. 4. MIRACLE STUDIOS:  Website Development  Website Designing  Brand Development  Flash Development  3D Modeling and Animation  Reputation Management  Mobile Application  Search Engine Marketing Market SegmentationWe will focus the majority of sales and marketing efforts toward attracting small businesses.following types of businesses are excellent prospective clients:Retailers- Grocery StoresReal Estate FarmsMedicine ShopsClubsJewelersTheatersNight ClubsTravel AgenciesLaw FirmsReligious OrganizationsRestaurants
  26. 26. 500 450 400 350 300 250 Size of retail 200 industry in billlion $ 150 100 50 0 06-07 07-08 08-09 09-10 YEARIndian retail sectorMarket size USD 350 billionOrganisedretail penetration 5 –8 %Unorganisedretail market 12 million kiranasGrowth rate 15 –20%Estimated investment by USD 412 billion2011Retail density 6%
  27. 27. The real estate sector in India is on a growth path. The development in the real estate marketencompasses growth in both commercial and residential spheres. Further, it has been estimatedthat there would be shortage of 26.53 million houses during the Eleventh Five Year Plan (2007-12), which provides a big investment opportunity, according to a report by the Technical Groupon Estimation of Housing Shortage.The above figure clearly states that the online travel industry accounted for 80% of the total e-commerce market in India in 2010. Although skewed since 2007, the non-travel industry isslowly capturing the market share percent by percent. The study states that e-Tailing is one theprimary growth drivers and will remain so in the near future too. The growth in the e-commerce sales is a clear indicator of the growing number of people usingInternet to make purchases. But again, the online purchases are limited to a certain category ofbuying like travel purchases, electronic items, online classifieds, buying movie tickets, fooddelivery, gaming subscriptions, etcAccording to the Bureau of Labor Statistics, healthcare was the second largest industry in 2008-employing a staggering 14.3 million workers. By 2018, healthcare is expected to be the largestindustry in the nation and with an anticipated 22% growth rateSo we should focus on small enterprises of real-estate, travel agency, healthcare and of otherlucrative market segment.
  28. 28. Our target market is separated into the four surrounding states listed below:We have chosen our target market from 4 perspective:1.Distance from our office2.Literacy rate---which has direct link with computer awareness3.Population4.Growth Financial Year 2010 Indian Per- Population Rupee %age of capitaState (2011) in 000 (Ten US Dollar Total IncomeRank State/Union Territory Region Million) (Billion) GDP (INR) 6 West Bengal East 91,348 400,561 $84.57 6.43% 41,469 13 Bihar East 103,804 168,603 $35.60 2.71% 16,119 14 Orissa East 41,947 162,327 $34.27 2.61% 33,226 16 Jharkhand East 32,966 106,358 $22.46 1.71% 30,719 Literacy Rate In Indian State: Census 2011State Literacy rate Literacy Literacy (2011 rate-Male rate-Female Census) (2011 (2011 Census) Census)Bihar 63.8% 73.5% 53.3%Jharkhand 67.6% 78.5% 56.2%Orissa 73.5% 82.4% 64.4%West Bengal 77.1% 82.7% 71.2%
  29. 29. SEGMENT ATTRACTIVENESS EVALUATION MATRIXSEGMENT WEIGHT SEGMENT1 SEGMENT2 SEGMENT3 SEGMENT4ATTRACTIVENESS WEST BENGAL ORISSA BIHAR JHARKHANDFACTOR SCORE TOTAL SCORE TOTAL SCORE TOTAL SCORE TOTALEDUCATION AND 15 6 .9 5 .75 3 .45 4 .6AWARENESSECONOMICAL 25 6 1.5 5 1.25 4 1.00 4.5 1.125POWERCOMPETITIVE 15 5 .75 5 .75 6 .9 6 .9INTENSITYGROWTH 25 7 1.75 6 1.5 3 .75 5 1.25 4.9 4.25 3.1 3.875Jharkhand: 8% of our target area.West Bengal : Our office is located here.- 50% of our target area-among 4 states it has highestliteracy and highest per capita income.Bihar : 14% of our target area.Orissa : 28% of our target area. It comes second from the perspective of per capita income andliteracy rate both.Our business allows us to offer services to small companies, no matter their geographicallocation, and we plan to do so, eventually expanding outside our immediate area. The aboveareas are where we will market most heavily and expect to receive the majority of our work. Wedo expect to receive a small portion from outside this target area due to ad placement.Strategy and Implementation:We will market ourselves as an Internet and Web services organization devoted to offering high-end services to small businesses exclusively. Our target customer will be the owners of any smallor home-based company who are looking to implement their business into the Web.
  30. 30. Competitive EdgeWe have a valuable competitive edge over our local competitors based on the fact that we havestreamlined all our services into the small business market. Through setting up several strategicpartnerships with various Internet and Web-related companies, we will be able to offer ourclients an affordable and efficient proprietary Web package that will meet all their related needs. Marketing StrategyAs the number of internet users are growing in a rapid pace. website designing, hosting industryis also growing.Revenue from web designing Industry (in USD Million)INDUSTRY 2008 2012Custom Content Development 256 542Multimedia / Web Design Introductory Growth Maturity Decline Stage Stage Stage Stage 2011 Total Market Sales 1995 TimeMarket is in growth phase . And our company is a challenger.From the service point of view we will adopt service differentiation strategy by offering creative,dynamic webpage --
  31. 31. We will follow guerilla attack marketing strategy because we are operating in limitedgeographic areas and our prospects are small /medium enterprises—niche marketing strategy.Our firm has limited marketing, R&D and competencies.Successful marketing of Web services to small business owners depends on how you approachand follow-up every potential client. It is very important to deliver our marketing pitch in a clear,no non-sense method. Details of the Internet and Web are still relatively unknown by many smallbusiness owners, giving it the tendency to confuse and intimidate easily. Marketing Programs for promotions:We plan on doing a large scale marketing project including :  Radio advertising (red fm, radio mirchi, power fm).  Ad placement in local trade publications .  Billboard Ads to promote wide-spread name recognition. Service and Pricing StrategyFor most small business owners, cost, both residual and one-time are huge influences on thedecisions they make regarding everyday operations of their company. Even though we offer100% customized services and our pricing is based on an hourly fee, to make it easier and lessconfusing for the clients, we have established a packaged pricing system.  Budget Domain Website Package (2300/-): For simple, information based websites. Popular with companies who just need to gain an Internet presence.  Mid-Level Website Package (3000/-): Information based websites with a large amount of content. Popular with companies that have a large services/products list and/or want to implement more of their business into the Web.  Catalog Website Package (4000/-): Usually reserved for product-oriented websites that are e-commerce enabled. Popular with companies that have a desire to market heavily on the Internet or sell their products/services directly from the Web.
  32. 32.  Website Hosting (free for first 2 months then 500/- per year ): Depending on the type and size of the website, the price for hosting can vary greatly. The average cost of hosting for most clients is 500/- per year.  Website Maintenance (500/-): If a client feels as though they will need their website updated or maintained on a regular basis, packages are available at a discount rate. Positioning Strategy Symbolic and Operational positioning:  Service differentiation----dynamic and CMS web development and creative web designing in a cost efficient package---PRICE QUALITY APPROACH  Online free trial and providing customized service—superior after sales service--- CUSTOMERS BENEFIT APPROACH Brand positioning:Our target client is part of a very specific demographic, for this reason, we market and promoteour services in a direct and specifically targeted manner.Print Ads:  We will advertise in eight separate area yellow page directories. All our ads will appear under either the Internet Services or Website Design headings.  We will enlist company‘s name in a national business directory under the heading of Web Developers.  In the near future we will feature ads in several area businessDirect Mail and Fax:  We will send out targeted bulk mail flyers promoting special offerings by our company.  In the near future we will begin a new aggressive, ongoing bulk mail campaign to promote our Web development and hosting services.
  33. 33. Online free trial :we will provide online free trial for our clients for promotion.Social media marketing:We will use social networking sites to place our advertisement.Showcasing few case studies:Showcasing few case studies of firms that have found website being effective in improving theirprocesses—it will help to catch prospectsPeer reference:Still people are not fully aware about benefit of website in Indian scenario, Word of mouth/peerreferences can be highly effective marketing techniques.Mass Media Ads:  We will begin advertising on a broader scale within the next six months. Radio spots will be continuously played during local area talk shows and news programs, this placement is intended to reach the highest percentage of our target client possible.  Billboard ad placement will be the second mass media marketing campaign we will implement into our marketing efforts. Billboard ads will be intended as name recognition advertising.Educational Seminars:  Plan to conduct Internet and Web-related educational seminars on a variety of topic. In the near future, we will promote our services through these seminars.Local Area Commerce Groups:  To promote our services and our name as a participant in the Web services industry, we will be joining many of the local area Chamber of Commerce groups and various other strategic partnership clubs.
  34. 34. Strategic AlliancesCurrently, we do not participate in any co-marketing or co-development efforts with outsidecompanies. However, we have specific plans to establish several strategic partnership programswith area ISPs (Internet Service Providers) and computer consulting companies. Thesepartnerships are intended to attract more sub-contracting work from potential competitors, inexchange for a commission to be paid for each lead and resulting new client. CONCLUSIONGiven our experience and expertise in both commercial Web development and business-to-business sales, we believe we can offer a unique and superior service to small business owners,in comparison to what is currently available.The demand and growth rate for Web development and marketing services in the small businessmarket is at an all time high and shows no sign of slowing anytime soon. Even more astonishingis the fact that very few Web development companies have taken advantage of the opportunity,as there are no dominating participants in this huge market.We believe the reason for this virtually untapped market is due to expensive project costs, thehighest profit margins in Web development today are in servicing large- and medium-sizedcorporations. We have developed a system that dramatically reduces steep project costs andhenceforth will allow us to offer the same high-end Web development services as largercompanies receive at a much lower cost to the client.
  35. 35. BIBLIOGRAPHY1. Internet in India in a hyper growth phase | Reuters4. E-riches 2.0: next-generation marketing strategies for making millions online By Scott C. Fox8. Internet Marketing: Strategy, Implementation And Practice, 3/E -By Chaffey, Chaffey9. Marketing Planning by Design: Systematic Planning for Successful Marketing ...By Ralf E. Strauss