Directi Case Study Contest - Relationships Matter from ISB Hyderabad


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Directi Case Study Contest - Relationships Matter from ISB Hyderabad Business Plan for an Online Dating Portal

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  • Directi Case Study Contest - Relationships Matter from ISB Hyderabad

    1. 1. Relationships Matter WebBusters Anjali Kumari Kumar Ritesh Ranjan Namratha Agarwal
    2. 2. Product Concept Segment wise Marketing PlanMarket Potential Monetization PlanIndustry Analysis Organization ChartCompany Analysis Sales ForecastProduct Plan Income StatementMarketing Strategy Cost Breakdown Risks Agenda Relationships Matter
    3. 3. Relationships Matter is a fully integrated online relationship-building platform that allows peopleto meet, talk and go out in a virtual world, nurturing relationship while maintaining privacy. Talk to me Go Out Meeting Point • Browse through the • Virtual world where • Virtual Hang-out point voice profiles partners get to know • Check-in to signal other • Connect & Talk to each other better members about your members on phone • Close to real-world availability without exchanging the experience in the safety • Browse profiles of other phone numbers of your home checked-in members • Upholds privacy • Dine out, Shop, Hang • “Talk to them” or “Go • Eliminates unwanted out just like in real Out” with them calls world Product Concept Relationships Matter
    4. 4. , 2 55% users are likely to use based on a survey of 200 respondents 100M1 Internet users 35 in India and expected to reach 240M by 30 Users (In Millions) 2015 25 20 85% of all Internet 15 users are in the age group 18-35 10 5 0 15% of these users are looking to build 2012 2013 2014 2015 relationships online Market Potential Brand Potential1 IAMAI Market Potential = 31M Brand Potential = 17M Market Potential Relationships Matter
    5. 5. Market Forces Strong deterrents • Low barrier to entry • Difficult to maintain competitive edge Moderate deterrents • Patent and Sticky features to create barriers Weak deterrents New Entrants • Multiple VoIP providers to • Fragmented market choose from • Mo major competitors • Website launching is easy Competitors Suppliers Customers • Social Networking sites • Social stigma • But different product offerings • Low Internet penetration makes the threat low creating hurdles on the Buyer Substitutes side • Curious youth ready to try new servicesIndustry Analysis ‘A go ahead’ Relationships Matter
    6. 6. Strengths Weakness • Team has over 20 • Lack of patents years of experience • Lack of funds • High productivity • Entrepreneurial experience Threat Opportunities • Social Stigma • Huge Market • Low women Potential participation • Competition is • Self Styled groups fragmented such as Shiv SenaCompany Analysis Relationships Matter
    7. 7. Planned product development stages2012 2014Launch the realtionship plarform by mid Improve the product based on customer2012 with the following features feedback. -Talk to me - Personality tests - Provide user with the feature of building - Meeting point - Authencity Ratings own restuarants and buying land - Go out - Virtual Money 2013 2015 Launch version 2.0 of the Relationship matters with the following features Retention of Consumers Expand the service line offered - Proximity Affinity -Phishing filters to all age groups - Business Intelligence - Security Verification - New imnnovative services contirbuting to customer retention Product Roadmap Relationships Matter
    8. 8. • 96% of users1 would like to speak to the person before going out Talk to • 71% indicated they are not comfortable sharing their number but would use online me relationship services if their number was not shared[1] Based on a survey done on 200 potential users Meeting • 66% of users1 indicated they Point would want to block unwanted messages & profile visits • 95% of users1 would like to know the • Ensures participation by person before going willingness out Go out • 78% people agreed that virtual world would help them understand the other person better • 65% people showed their willingness to use a such a service Product Features - Rationale Relationships Matter
    9. 9. Rs.1 per • 92%1 of the users spend Rs 6000 or less per year on their mobile bills minute • 44%1 of the users spend more than Rs 2400 per year • “Talk to me” will be priced at Re 1 per min[1] Based on a survey done on 200 potential users • Assuming each paid user will make at least 5 calls of (Talk to me) 5 min duration a month, ARPU of Rs 300 per year Rs. 50 per • Subscription Model where users will pay a basic subscription fee month • Additional fees for special orders such as cakes, flowers etc (Go Out) • ARPU of Rs. 600 Product Pricing Relationships Matter
    10. 10. Mock ups Relationships Matter
    11. 11. •Simple home page to increase signup • Defining the value proposition concisely in the tagline ‘Find.Connect.Bond’ •Pictures of members on top will encourage user signupsHome Page of the Website Relationships Matter
    12. 12. Matches found based on preferences Icons indicate that the user is Online on Virtual ‘Talk to me’ & Money virtual world -Balance in ‘Go out’the user’s account Sponsored ads, a source of revenueNotification of Gift receivedfrom a co- user Must Visit Home Page of a user locations in the virtual world – ‘Go out’ Relationships Matter
    13. 13. Voice profile matches found based on preferences for ‘Talk to me’ Connect to the person using talk to me or virtual world - Go-Out Authenticity Rating – Rating of a user profile by other members of Relationships matter.Feature – Talk to me Relationships Matter
    14. 14. Go Out DifferentAvatar as options to uploaded get ready when the for Goingprofile was out. created. Accepted Go-outappointmen ts. Enter the virtual world – Go out to meet people online Feature – Go Out Relationships Matter
    15. 15. These willmimic real Click to world get menuplaces and on the will be a table source of revenue Click to call User can server type in to on the converse table with each other.Click to get Click to other go back options to the such as User paying homepagbill, leaving e , Rest Room Feature – Go Out – Snapshot of Virtual world Relationships Matter
    16. 16. • Internet users between the age group of Segmentation 15 to 35 years • Users residing in Delhi to start with • Internet users of the Age group 18-23 years • Internet users of Age group 24-35 yearsTarget Segments • Women • Men • 18 – 23: “Know before you commit” • 24 – 35 years Women: Positioning “Entrusted service for relationship that counts” • 24 – 35 Men: “Relationship that counts” Marketing Strategy Relationships Matter
    17. 17. Planned product development stages2012 2014Build Awareness at low cost Focus to stay on top of consumers mind- Tap youth of top colleges - Television Channels- Video Marketing - Celebrity Endoresments- Social Media Marketing - Newspaper channels 2013 2015 Expand to more Geographies & Convert Focus on customer retention free users to Paid users - Advisory Programs on - Tap youth of other Geographies Radio & television - Catchy Jingles on Radio - Search Engine MarketingMarketing Roadmap Relationships Matter
    18. 18. Internet Marketing Characteristics Strategy• Internet Users • Search Engine• Heavy mobile users Marketing• Social Media users • Social Media - Twitter, Facebook, Blogs etc. • Video marketingAll Age Groups Relationships Matter
    19. 19. Video MarketingVirtual World “Go Out” “Talk to me” Advertisements Feature demonstration- Videos featuring “Go - Informative video with a - Chain of advertisementout”, covering romantic and demo of the “Talk to me” & videos to generatefunny themes “Proximate affinity” awareness- YouTube as video & social features on YouTube - Use of Adwords tonetwork maximize CTR on impressions All Age Groups Relationships Matter
    20. 20. Social Media Marketing Social Media Tools Social Network Analysis Tools - Use of Facebook, Twitter - Use SNA tools to identify and blogs on relationship “Mavens” from top colleges and building to generate influence early adopters awareness - Target and incentivize the - Advertise viral jingles and mavens & adopters to spread videos on facebook and awareness & increase user other social networking site registrationsAll Age Groups Relationships Matter
    21. 21. Characteristics Strategy• Curious College Students • Tap top colleges• Heavy mobile users • Identify Mavens who• Low on Cash carry cool quotient• Curious to try new • Utilize same-side products network effect• Lot of time at hand • Exploit Mobile Advertisement • Social Media Marketing • Mobile app for the productAge Group 18-23 Relationships Matter
    22. 22. Sponsor Annual College Fests to Organize Demo Events, Sponsor Mobile Marketing identify Influencers columns in college newsletter- Is he/she cool, popular, “know it - Advertise in College - Advertise on Mobileall”, office bearer? newsletters, offering free virtual Devices through Quizzes on- Does he/she have a huge credits and free “talk to me” relationship & personalityfollowing? minutes- Make them the Brand - Organize Demo events for “GoAmbassadors & invite them to Out” and “Proximate affinity”social events features Age Group 18-23 - Initiatives Relationships Matter
    23. 23. Characteristics Strategy• Low Participation • Communication should• Don’t trust Online focus on Security & Dating Sites Trust• View Online Dating as • Radio programs and Social Stigma advertisements• Word of Mouth is the • Social Media Marketing key to engage the users• Uses Internet, Radio & Television channelsWomen – Age Group 24 - 35 Relationships Matter
    24. 24. Radio Channel Television Channel Newspaper Channel- Mass marketing strategy by - Advertisements showcasing - Sponsor articles, on successcreating “Jingles that stays on live experiences of real stories ofmind” customers RelationshipsMatter, in- Advisory Programs - Rope in a Women Celebrity to the entertainment section ofon maintaining & developing relati advocate relationship building in popular newspapersonships order to get over Social Stigma - Planned in the 4th year Women – Age Group 24 - 35 Relationships Matter
    25. 25. Characteristics Strategy• Avid Internet Users • Communication should• Find it hard to find good focus on “Relationship profiles due to low that counts” female participation • Social Media Marketing• Willing to try new • Search Engine products MarketingMen – Age Group 24 - 35 Relationships Matter
    26. 26. Social Media Search Engine - Focus on Search Engine - Mass marketing strategy using Optimization for organic Social Media links - Blogs on maintaining & - Advertise through Online developing relationships ad publishers on key websitesMen – Age Group 24 - 35 Relationships Matter
    27. 27. Paid Features Talk to Me Go Out Pay-per-use model Subscription model Call rate of Re 1 per min Use virtual money for special orders such as Assuming 8% users talk for cakes, flowers, eating out in “Go about 25 mins per month we Out” get Rs. 300 per year from each user Assuming 8% users spend Rs 50 per month on virtual world gives us Rs 600 per year from each userSales ProjectionsUser Revenue 2012 2013 2014 2015User base 35063 939675 1888747 4218201Paid User 2805 75174 151100 337456Total Revenue from users INR 1,262,250 INR 67,656,600 INR 135,989,766 INR 303,710,477 Monetization Plan Relationships Matter
    28. 28. Sponsorships Merchant RevenueSponsorships from merchants to showcase their businesses on the “Go Out” featureDiscount coupons for regular members sponsored by the merchantsExpecting Rs 25,000 per sponsor from 500 sponsors by 2015Sales ProjectionsMerchant revenue from Virtual World 2012 2013 2014 2015Yearly Revenue per sponsor INR 0 INR 10,000 INR 20,000 INR 25,000No. of sponsors per year 0 5 50 500Revenue from Sponsors for virtual world (PERYEAR) INR 0 INR 50,000 INR 1,000,000 INR 12,500,000 Monetization Plan Relationships Matter
    29. 29. Advertisement Revenue Advertisement RevenueAd Revenue on the websiteAd revenue in the “Go Out” featureExpecting Rs. 35 Lakhs by 2015 based on user projections [ 1 Rupee per user paid user]Sales ProjectionsMerchant revenue fromAdvertisement 2012 2013 2014 2015Revenue INR 0 INR 939,675 INR 1,888,747 INR 3,500,000 Monetization Plan Relationships Matter
    30. 30. CEO VP VPCFO Marketing Engineering Product Product Sales R&D Operations Marketing DevelopmentOrg Chart Relationships Matter
    31. 31. 4.5 35 4 30 3.5 In Millions 25 3In Crores 20 2.5 15 2 1.5 10 1 5 0.5 0 0 2012 2013 2014 2015 2012 2013 2014 2015 Total Revenue Total Cost Users Key Takeaways  Break-even in the third year  8% of registered users will pay for features  ARPU of Rs 900 per year Sales Forecast Relationships Matter
    32. 32. 2012 2013 2014 2015Sales INR 1,262,250 INR 68,646,275 INR 138,878,513 INR 319,710,477 Engineering Cost INR 9,400,000 INR 17,270,000 INR 30,855,000 INR 62,557,000 VoIP Cost INR 252,450 INR 13,531,320 INR 20,398,465 INR 45,556,572Total COGS INR 9,652,450 INR 30,801,320 INR 51,253,465 INR 108,113,572Gross Profit INR (8,390,200) INR 37,844,955 INR 87,625,048 INR 211,596,906 R&D INR 3,000,000 INR 8,140,000 INR 11,858,000 INR 18,234,700 Sales and Marketing INR 6,400,000 INR 26,291,569 INR 55,605,703 INR 98,534,572 General Administration INR 480,000 INR 700,000 INR 1,500,000 INR 2,280,000 Support Expenses INR 900,000 INR 1,980,000 INR 10,890,000 INR 23,958,000 Infrastructure INR 780,000 INR 1,440,000 INR 3,180,000 INR 5,640,000 Depreciation INR 260,000 INR 480,000 INR 1,060,000 INR 1,880,000 Insurance INR 188,000 INR 345,400 INR 617,100 INR 1,251,140Overhead INR 50,000 INR 150,000 INR 250,000 INR 500,000NET Profit INR (20,448,200) INR (1,682,014) INR 2,664,245 INR 59,318,494 Income Statement Relationships Matter
    33. 33. 120%100%80% 29% 37% 41% 38%60% 14% 12% 1% 9% 7%40% 19% 17% 15%20% 43% 25% 23% 24% 0% 2012 2013 2014 2015 Enginering Cost VoIP Cost R&D Sales and Marketing General Administration Support Expenses Infrastructure Depreciation Insurance Cost Breakdown Relationships Matter
    34. 34. Social Political  Social stigma remains a concern Self-styled groups creating nuisance Regulations against  Target Metros to begin with VoIP  Further secondary research and take expert advise Economic  File for patents  Increase in the VoIP  Seek legal advise cost  Cost overruns Competition  ARPU less than  Patents expected  Mobile operators slash Risks calls rates Relationships Matter
    35. 35. Thank You