Directi Business Case Study Presentation '09 Team Invicta - IIM Calcutta

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Directi Business Case Study Presentation '09 Team Invicta - IIM Calcutta

  1. 1. Team Invicta- Indian Institute of Management Calcutta Chandrima Das, Gaurab Arka Chaudhuri & Rajyalakshmi K
  2. 2. Team Invicta, IIM Calcutta 2
  3. 3. Market for Blogging in India Current & Potential Bloggers Potential Bloggers Current Bloggers People who are aware but People who are comfortable do not blog / People who with the concept of are new to the concept of blogging blogging Regular Bloggers Infrequent Bloggers Increase Awareness Increase Adoption How can we make them What are the reasons How do we introduce them What are the reasons for Directi bloggers behind infrequent blogging? to blogging? not blogging? Team Invicta, IIM Calcutta 3
  4. 4. 4 out of 5 online Indians are in the „prime‟ of their life (19-35 years) 3 out of 4 of them belong to the „consuming‟ and „aspiring‟ class (almost half of them belong to SEC „A‟ and „B‟) Half of all Internet users are employed Their average monthly family income is 3.2 times the national average 3 out of 4 of them come from the non-metro towns and nearby villages Team Invicta, IIM Calcutta *Source: India Online 2009, Juxt consult survey 4
  5. 5. What Indians do when they are online 90% % of respondents who performed this activity 80% 70% 60% 50% 40% 30% 20% 10% 0% Search for Job search Search for IM/ Chat News Dating/ Cricket Sports Matrimoni Search travel other Friendship other than als engines products products cricket %undertaking 84% 71% 68% 67% 62% 55% 53% 52% 49% 49% Team Invicta, IIM Calcutta 5
  6. 6. Types of Blogs C h Personal Professional Corporate a r a Product/ Firm Topic Hobbies, Social, Political Technical, Management, Information & c issues Science Promotion t e Consumers, B2B Target General audience Fellow professionals ri Audience partners st i None; Promote their c Degree of Low Medium own products s Monetization Team Invicta, IIM Calcutta 6
  7. 7. The Personal Blogger Demographics Interests Frequency of Blogging Political/ Age Income Linguistics Hobbies Professional Infrequent Occasional Regular Social Blog Platforms (Blogs listed on The Indian Blogger Indiblogger)* Blogger We ran a • Of the respondents, 70% were male, 73% Wordpress.com survey between the age group 20-25, 52% have Wordpress.org among been blogging for 3 years or less. Unknown Indian • A huge majority (89%) blog about Blogger custom bloggers to personal or lifestyle related topics Wordpress custom create a followed by Humour (37%) and Others profile for Religion/spirituality (37%) our target • According to Indiblogger, 42% of Indian blogs are updated once per1-4 weeks An overwhelming majority uses Blogger‟s free services to Blog Team Invicta, IIM Calcutta Source: Indiblogger Development blog 7
  8. 8. Differentiation & Market positioning Factors Features User To target existing friendly Competition bloggers, position Existing Bloggers Differentiation Directi as a Segmentation superior service Marketing with extensive features High Medium Low Blogging Market in India Primary Target segment Target segment Similarity to Tech existing users Savvy School students College goers who don’t blog New Bloggers Secondary Target segment Target segment Similarity to Tech existing users Savvy Small business owners Housewives/ Senior citizens Team Invicta, IIM Calcutta 8
  9. 9. Team Invicta, IIM Calcutta 9
  10. 10. Privacy, Template and Image storage Visitor stats and Commenting and Collaboration customization and Galleries Blog import Main Contact Competitors Can restrict access to Supports Administrator Can include any type of and non-administrator invited Google account Can edit template 1 GB for image storage. 3rd party scripts for roles only. holders layouts, styles and One can browse images tracking. Can submit posts by Visual confirmation and colours, or install a only by signing up for Supports import only email. Can receive new moderation options, third party theme Picasa web albums from another posts by email too (for but no editing of Blogger.com blog team blogs) comments No template editing. Does not allow 3rd Individual posts can be Supports Administrator, 3GB for image storage. Editors, Authors and Style sheet editing is party scripts, displays 2 password protected or Paid upgrades available. Contributors only available as a paid days stats on the admin Private Simply add the tag Submit your posts by upgrade. Support and homepage. Moderation, comment [gallery] to any post or email. Images can be customization Supports import from editing and Akismet page to create a gallery attached. dependent on theme any blog. spam protection Stylesheet editing and 3rd party themes without having to pay, and visitor stats comparable to the tracker scripts one can obtain for free are what holds Wordpress from overtaking Blogger Team Invicta, IIM Calcutta Source: Invicta analysis 10
  11. 11. Minimize Maximize switching costs stickiness to switch from (switching costs) Features competitors to of using Directi‟s Directi‟s service Blog services Offer feature sets which can exploit Incentivize heavy Points of parity Points of difference the specific usage to support nature of the revenue streams Indian market To ensure that Directi‟s To ensure that Directi service is at least as good offers superior service in The objective is to leverage network effects and in all feature sets as the specific domains to stickiness for the service to become more widely next best service differentiate itself used and entrenched Team Invicta, IIM Calcutta 11
  12. 12. Point of Difference Point of Parity Features Features Users can edit templates, Full support for Blogging use 3rd party templates in Indian languages Support number of Upgradable storage space Corporate & professional collaborator roles. Enable Blog Aggregator feature for files. Gallery plug-ins blogging platform with email posting with images set available support and consulting attached Password protected posts Can import from any Blog Comment moderation, Can use 3rd party plug ins Social networking and Feature set for Blogger editing and Spam for Blog stats, stats on community feature set recall and stickiness protection dashboard Team Invicta, IIM Calcutta 12
  13. 13. Preferred reading language for Internet users in India* PROPOSED FEATURES English Hindi Tamil Telegu Marathi Gujrati Malyalam Bengali Oriya Kannada Others Indic text display support 5% • Full browser support 8% 8% • Easy to use backward compatibility with old 4% Operating systems and downloadable single click 4% font solutions 26% 4% • Page translator widget for blogs 25% 3% 3% Indic text usage support 7% • Downloadable keyboards for typing in Indic 28% scripts • Enabling “quick Indic text” inserts in an English language post to facilitate usage of In addition, the % share of Internet users in “Hinglish” and other colloquial hybrids India from Rural areas is growing every year Team Invicta, IIM Calcutta *Source: India online study 2008 by Juxt Consult 13
  14. 14. Frequency The Attrition Traffic A two point program to of posting break this cycle Spiral Incentivize The Post frequency-Traffic conundrum Push Traffic frequent posting • A large number of bloggers drop off the Blogosphere after the first 3-4 months -> User Attrition • We believe a major factor for this is lack of traffic and response. • Correspondingly traffic and response drops off with Blogger points for infrequent posting Blog aggregator, Social, commenting, posting, • The spiral continues till the blogger stops posting community features Awards and ranks altogether. Team Invicta, IIM Calcutta 14
  15. 15. We propose to Blogger Blog Aggregator Viewer turn the Home page of Directi‟s blog service into a The blogger gets to put snippets The Aggregator provides Viewer gets to see personalized Blog Aggregator, of his blog's content on the Blog categorization and a good menu content if he so wishes. He gets drawing traffic for service Home page. This system, attractive packaging, can to see posts according to users. increases visibility and traffic to act a broker for ads relevance, popularity, recency his blog Category Wise Blog Listing Directi Blogging Points Annual Meets and Awards • Exclusive Blog sections for major areas of • Incentivize participation and act as a • Acts as an added Social Incentive for interest like sports, leisure, travel, “Badge” for presenting a user as a frequent members, besides points. literature. Under each section, there will and committed member of the Blogging • Most active members will be eligible for be demarcation between main five types community. Both Bloggers and blog Honours and Awards. of Blogs namely by Personal blogs, viewers (by putting review comments) • Incentivise members to remain active and Corporate Blogs, Genre, Media type and earn points by commenting, posting and spread word of mouth. Incentives range Device feeds (For example, a moblog). also based on the ratings their posts get from material (Blogger points) to Social • Make it easy for Bloggers to form from the community of users. (honours at Annual meets). communities of interest. • Points can be reimbursed through sponsored gifts etc. Team Invicta, IIM Calcutta 15
  16. 16. Aggregator Features Visibility for Traffic Display of Customization • Greater visibility of Individual Ease-of-use Streaming for Relevant of Blogger individual blog pages and to forViewers Blogs Blogs Content Page display blogs of interest • Excerpts and not full blog Blog posts will be displayed. If Aggregator anyone wishes to read the full post, they will be re- directed to the Blogger‟s Other own site Blogging Platforms • All blogs will carry a aggregator toolbar for continued blog surfing Low High In the initial stages, a user friendly site will attract traffic, hence increasing the switching costs and in the later stages, networking effects will set in with a large customer base Team Invicta, IIM Calcutta 16
  17. 17. Exclusive features Blogger points - an exclusive “badge” to show Exclusive that a user is a frequent user . Both bloggers and Features blog viewers can earn points by commenting, Customisable features posting and on ratings by other users Interactive features Customizable security features Customizable add-ons to blogger page like Customisable favorite quotations, cartoon strips, special Features graphics User friendly features Extensive customizability for Corporate Category-wise blog display using bloggers to integrate with the company‟s User recommender application interface Emailed newsletter and custom feeds A top bar showing most active blogs, most discussed topics User Friendly Features Basic Blogger features Easy to use templates Clear display of content Basic Blogger Features Good back end and graphic support Team Invicta, IIM Calcutta 17
  18. 18. Affiliate Advantages Integration • Profile integration with with other other social • Easy Migration from Other Social networking, job sites. Blogging Platforms – Networking • Automatic post updates Complete Transfer of all sites integrated with profiles Posts and Profile • Migration Further Lowers • Ability to create Extensive Switching Costs for Profiles similar to Orkut bloggers Networking or Facebook. • Networking features features on • Followers, Connections, creates an unique blogging Directi‟s service Blogger Groups experience • Support for Micro- • Integration of Blogging Blogging with a more Forum like Environment • Feed reader options can • Enables Extended easily be enabled. Discussions on popular topics Recommender • Bloggers can recommend other blogs and specific posts even, an updated version of a blogroll Team Invicta, IIM Calcutta 18
  19. 19. Team Invicta, IIM Calcutta 19
  20. 20.  Blog published & maintained by corporates as a method of communicating with customers & other stakeholders  Breaking out of the “Faceless Entity” Mould Corporate blog – Why? Corporate blog – Types Creating a Mindshare External Sales Blog Customer Relationships Relationship Blog Media Relations Branding Blog Internal Knowledge Management Knowledge Blog Market Test New Products & Ideas Collaboration Blog Recruitment Culture Blog Team Invicta, IIM Calcutta 20
  21. 21. Personality of the Blog • Blogs generally represent independent viewpoint – need for informality • Should not look like Press Release or Corporate Communication • Personal Stories, Experiences, Viewpoints Who Blogs? • Determined by the Nature, Topic & Target Audience of the Blog • Purpose: Mindshare, Customer/Media Relations – CEO, Higher Level Executives & Managers • Purpose: Recruitment – Employees from All Levels: Brings out the Work Culture – Google Blog Building Relationships • Need for a Dialogue Process – Actively Seek & Implement Customer Feedback • Cannot be Used as a Pure Marketing Tool Team Invicta, IIM Calcutta 21
  22. 22. Credibility of Blogs & Social Media As a Whole They Enjoy a Lot of Credibility 15% Global Specific Source Enjoy Some • More than 15% of Fortune 500 Companies have blogs As a Whole They Credibility Enjoy Some • Blogs used to promote Upcoming Products & 54% Credibility 27% Services – Google, Kodak • Blog for Customer Service, Feedback – Dell, Flickr • Blog for Providing Enhanced Value to Customers – Monster.com As a Whole They Enjoy Little Credibility 4% Effect of Slowdown on Social Media Spending India • Gradual Popularity since 2005 – still in Nascent No Change 21% Stages. Increase • Bigger Corporate Presence in Social Networking 54% Platforms than in Blogs Can‟t Say 16% • Only 8 among the NIFTY 50 have Corporate Blogs Decrease 9% • Blogs more common among Tech Companies or Start-ups • Corporate Blogging in India – almost Virgin Market Team Invicta, IIM Calcutta Source: India Social Media Survey 2008 Blogworks.in 22
  23. 23. Blogging Platform Provides Unique Opportunity to Tap into Untapped Market Consulting & Strategic Development Services • Providing Consulting Services to companies considering starting a Corporate Blog • Beneficial to corporates who lack core competency & experience in IT • Highlight the pros & cons of starting a blog, a development plan with preset milestones • Provide strategic guidance in deciding blog nature, structure & content Blog Promotion & Visibility Enhancement • Create a comprehensive marketing plan for corporate clients including adverting through both online & offline channels • Leverage our Blogging platform & Aggregator services to promote the company‟s blog • Direct traffic to the blogs of corporate clients through various promotion schemes on-site • Implement strategies to enhance search-page ranking Blog Authoring & Related Support • Create a comprehensive corporate blogging solution including multi-author, multi-page support • Premium services such as traffic analysis, user-behaviour tracking, forum support, etc • Option to provide offline front-end to clients for asynchronous blogging – feature can also be leveraged to generate revenue from non-corporate users Team Invicta, IIM Calcutta 23
  24. 24. Team Invicta, IIM Calcutta 24
  25. 25. All Blogs on the Directi Platform will Carry Advertisements • Ads on Personal Blogs – Text by Default, Banner Ads only on Request – ensures uncluttered interface • Context sensitive advertisement – depends on reader interest & blog topic • Ad revenues shared with bloggers – incentive for bloggers to post & implement methods to increase traffic Decision – Third-party or In-house Advertising Provider? Pros Third Party Pros In House  Leverage Existing Expertise Can be Adapted to Own Needs Lower Capital, Labor Investment Can Leverage Across Multiple Platforms Cons Cons Not Customisable Not Core Competency Lost Margins Higher Initial Investment Required Team Invicta, IIM Calcutta 25
  26. 26. Revenue From Aggregator • Promoted Blogs: Bloggers can buy Advertisements on the Aggregator Home Page – Separate Section for these Promoted Blogs • Search Ads: Bloggers can also bid for Keywords – when Readers search for Blogs within the Platform using these keywords, the Sponsored Blogs will appear in a separate section on tops • Adoption of these Promotion schemes driven by Ad Revenue Sharing with Bloggers – Blogs with More Traffic get more ad revenue Revenue from Value Added Services • Consultancy Services: Consultancy Services provided for Corporate Blogging can be spun off as a VAS for individual bloggers – provide guidance to bloggers in promotion , content management, etc • Offline Blogging: Offline asynchronous blogging support provided to bloggers on subscription basis • Advanced Blog Management Tools: Includes traffic trackers, tag popularity trackers, user behaviour tracker, etc • Spin off other services provided to Corporate bloggers as individually subscribed features Team Invicta, IIM Calcutta 26
  27. 27. Comprehensive Corporate Blogging Solution • Advisory & Consulting Service in designing, setting up & creating content for the blog • Marketing & Promotion Plan to maximise traffic to the corporate blog – this will include cross-promotion using our Blogging platform & Aggregator • Corporate Blogs will carry ads (if the client chooses) of the company‟s products& Services – these ads will be separately charged • Separate Premium Service like traffic analysis, user-behaviour tracking, forum support, etc • Charge for application that allows corporates to blog offline or from Blackberries Principal Revenue Ads Corporate Blogging Aggregator Value added services Streams Team Invicta, IIM Calcutta 27
  28. 28. Team Invicta, IIM Calcutta 28
  29. 29. Message-increasing Affective- changing Measures awareness the attitude 67% of target segment spend time Advertizing on Social on IM/ Chat and 55% on Blogs are a more customizable networking sites method to express and connect networking sites Episodes on “Starting your blog” Users would believe its easy to set episodes with celebrity bloggers up their blogs TV programs on News and Youth channels Projecting blogs as a medium for “Blogs are a cool way to youth to express themselves communicate” Awards and Recognition: Sponsor a “Blog of the Month” on Blogging is a way of earning youth channels recognition Blogger of the Month Team Invicta, IIM Calcutta 29
  30. 30. Measures Message-increasing Affective- changing awareness the attitude Tie-ups with Professional Networking and job sites like LinkedIn A blog is a tool for the Professional Professionals to become an opinion leader TV programs for awareness on News channels Use networking to gain initial Blogs are a direct and informal Corporates clientele of Small and Medium enterprises who do not have method of communication with the End Customer enough IT expertise Team Invicta, IIM Calcutta 30
  31. 31. Encourage Encouraging progressive Better Consistent User Assistance experimentation Adoption • Clearly differentiate • Demonstrate that • Have an easy-to-use • Encourage users to • Users of technology the feature set as Directi‟s service interface in which start from an easy products often stop superior to that of is easy and consistent further feature sets interface and then learning and adopting existing competitors with what the user can be integrated as progress to more features long before already knows or per the user‟s choice advanced features by they‟ve mastered already uses. rather than upgrading slowly. those products‟ full Therefore, the basic bombarding him with Additional features capabilities. features set must be a lot of features at must be in line with • Provision of an easily adapted by say one go. the core value of the interactive feature of a Wordpress or Blog service user assistance will BlogSpot user. boost adoption A progressive adoption technique also needs to make Converted Early Adopter Early majority room for the Blogger FAST FOLLOWER kind of users Team Invicta, IIM Calcutta 31
  32. 32. Integration into Ease of Monetization Building a community Credibility Corporate UI • Professionals are • Professional bloggers • Corporate blogs need • Corporate Blogs need people who have a lot use community logs to to be easily integrable to be projected as a of expertise in a field post opinions 69% of with the rest of the credible source of and often wish to their blogging usage. A Corporate user information for Monetize their superior collaboration experience. A set of customers. expertise through system and customizable features blogging. Increasing community building would work well for the ease of tools would increase this. monetization is an adoption to a high important factor for extent. them. Converted Professionals Corporates Blogger Team Invicta, IIM Calcutta 32
  33. 33. Increasing Awareness Increasing Adoption High Attrition Rate & Low Frequency of Posts Aiming at the Non-blogging population • Many New bloggers stop within a month of first post • Large Minority of Indian Internet users do not blog • Majority of Bloggers Post Once a Week or Less • Reasons – Low/Incorrect Perception about blogs • Reasons -Unrealistic Expectations, Blogging solutions Cumbersome, • Potentially highest growth segment – 19 to 35 demographic Disinterest among Readers • Other Potential Segments – MIG/HIG Housewives, Senior Citizens • Few blogs in India generate any revenue, many bloggers not familiar with • Very Poor Awareness about blogs among Corporates, Perception that advertising solutions for their blogs Blogging has no benefits on Profitability/Brand Image • Corporate Blogging - Companies not familiar with intricacies of Blogging as a mode of Customer Engagement Educate about Blogging Ensure Sufficient Traffic to Blogs • Highlight/Promote blogging as a Serious Mode of Expression & Communication • Promote blogging as an Entertaining Experience rather than as an Ordeal • Emphasise the Social Aspects of Blogging – Peer Recognition, Ability to • Project Directi Blogger as a favoured web-destination for even non- Reach a Worldwide Audience bloggers – access to many blogs through the Aggregator • Corporate Blogging as a way to reach Individual Consumers Directly, • Provide Advisory Services to bloggers to help them increase traffic & Different from Usual Marketing Channels improve page rank Team Invicta, IIM Calcutta 33
  34. 34. Recognition Adoption Converted users This stage should highlight the USP s This stage high lights the user friendly To ensure attrition rates are low, this of Directi blog i.e., blog aggregator features and customizable features stage encompasses user interactive and a direct “what‟s-in-it-for-you” targeted at various segments in the campaigns, contests etc kind of campaign audience • SMS marketing • Media advertisements • Social Networking sites • Contests and competitions • Promotional event • Targeted advertising • Socially relevant campaigns • Affiliate marketing • News coverage Internet User Blog Reader Blogger • Woo the Indian netizen to start • The blog reader would want to • Incentivize existing Bloggers to reading on Directi‟s Blog become part of the community keep participating aggregator and start his own blog Team Invicta, IIM Calcutta 34
  35. 35. Print Ads Television Events • Targeted towards Tech savvy • Targeted towards young • Tie-up a “Blogger of the users, some of whom may people who may be internet month” contest with a already be bloggers. users but do not blog promotional release of a • Message: Directi offers • Message: Directi‟s service new book , movie or series superior plug-in features are easy to use, ideal for meant for the age group 15- • Means: Ads in select experimentation 20 magazines like Digit, CHIP. • Means: Sponsored • Contest through tech Sponsored Articles in “Blogger of the Month” on magazines on creating easy newspapers and media youth channels. Sponsored to use themes for Directi‟s about setting up your blog episodes with celebrity service, thus educating the or migrating to Directi‟s bloggers on setting up their more tech-savvy users on services blogs customizability features However the primary target for promotion are internet users and so Electronic Promotion is the prime focus of the campaign Team Invicta, IIM Calcutta 35
  36. 36. Affiliate marketing Viral marketing Social media marketing Phase I Phase II Phase II Tie-up with a widely used affiliate Viral promotions may take the form marketer to set up text and display ads in of video clips, interactive games, Creating buzz or news worthy events relevant sites: Social networking sites and eBooks, images or even text messages professional networking sites Features to Integrate Blog posts with social media profile, post links are updated by Follow the Home base- Output model as Payment preferably on a cost per lead basis default on all social media profiles of the illustrated later Blogger with a prominent Directi reference Team Invicta, IIM Calcutta 36
  37. 37. Spread videos, Use Directi‟s Blog interactive games, Gain mindshare Aggregator as the Badges, Profile through Word of Home base markers, Blog links Mouth through the outposts Team Invicta, IIM Calcutta 37
  38. 38. The Message The Means The Carriers • Directi is an easy to use • Interactive videos on • Fan pages in Twitter, Blogging service how to build your first MySpace, Facebook, • It has the most Blog using Directi‟s community on Orkut extensive set of service, Driving traffic • Directi‟s blogger„s own pluggable features to your blog, twitter account to act as • It encourages monetizing your blog, an quick dispenser of community building being creative with information as well as and helps to drive theme etc. to interact with users traffic to my blogs • Flash games on • Directi Blogger badges • Directi‟s services are community building, for usage on any blog user-oriented and they increasing your network listed on the Blog provide interactive help etc. Aggregator We propose to Multiple Online Conversational, follow a three- Create Buzz fold strategy avenues user-oriented Team Invicta, IIM Calcutta 38
  39. 39. Media- initiative Frequency Reach Cost Conversion Print media: 3-4 tech magazines A full page print ad per month for 4 months x 4 Television: Blogger of the month promos aired 4 times an hour from Sponsored “Blogger of 5pm to 9pm. the Month” promos 2 sponsored episodes, with promos airing 4 times an aired on youth channels hour from 5-9 Sponsored episodes with celebrity bloggers Promotional events Event promos in Print media (tech magazines) and on television at similar frequencies as above Affiliate marketing Tie-up with an extensive network and have context based text and banner ads Viral and Social Media Bring out catchy and humorous promotional videos every Marketing 2 weeks for 4 months on to “how to set up”, “exploring features and theme”, “tips and tricks” themed videos and e-zine articles Low High Team Invicta, IIM Calcutta 39
  40. 40. Team Invicta, IIM Calcutta 40

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