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Naukri.com
1. naukri.comIndia’s No 1 Job Site
Presented by –
Neelanjana Chakraborty
Khukan Chandra Das
Bidyut Bikash Das
Chayan Suklabaidya
Rajdeep Bhattacharjee
2. GENESIS of naukri.com
Sanjeev Bikhchandani
Naukri.com was founded by Sanjeev Bikhchandani
naukri.com was launched in 1997
Worked for three years with Lintas (India)
A Post-graduate from the Indian Institute of Management,
Ahmedabad (IIMA) in 1989.
Worked for a year with GSK (then HMM).
About the Founder -
3. The Idea-
Job advertisements – being a high-interest reading category in magazines and there
were also a lot of unadvertised jobs in the marketplace.
Bikhchandani quit his job in October 1990 – started the company (called InfoEdge)
InfoEdge was not an online recruitment service but was in the business of producing
and selling databases, reports, and feasibility studies
Bikhchandani came to know of the world wide web from a trip to IT Asia in October
1996. The naukri.com site was up and running in March 1997 as a division of InfoEdge
Pvt. Ltd
Anil Lall, a friend of Bikhchandani and an expert programmer wrote the initial software
code and V.N. Saroja, a 1990 alumnus of IIMA, looked after the operations
4. At launch, naukri.com was a job listing board and did not offer any services;
the company had a head count of nine, There was no sales staff.
Initial business was obtained by sending out letters to human resource managers culled from
a database of 3,000 HR managers.
In the initial years, naukri.com, being the first mover in the online recruitment space in India,
received a large amount of press coverage.
As a bootstrap start-up, this media coverage was invaluable in gaining mindshare at no cost
to the company.
naukri operated on a bootstrap mode till April 2000.
One day after jobsahead went with Rs. 70 lakhs of advertising at the Sharjah cricket meet,
Bikhchandani accepted Rs. 7.4 crores of venture capital funding from ICICI Ventures. At that
time, the naukri had just achieved annual revenues of Rs. 36 lakhs for the year 1999-2000.
5.
6. THE RECRUITMENT ADVERTISEMENT MARKET IN INDIA
Overall (print + online) - Rs. 560 crores (2003).
Expected that by 2007, online - Rs. 150 and 250 crores
print advertising - Rs. 650 crores.
7. Five major ways of obtaining jobs in the organized sector in India
1. Print medium where paid advertisements in general and business interest newspapers and
magazines dominate.
2. Through placement and HR consultants that companies use for middle and senior level
placements
3. Through referrals and personal contacts.
4. Through the online corporate web page of the firm.
5. Fastest growing category consists of online recruitment portal sites like naukri.com,
jobsahead.com, jobstreet.com, and monsterindia.com.
Apart from these categories, recruitment also takes place directly from college campuses and
through job fairs.
8. COMPETITORS
The three main competitors of naukri.com in India are
jobsahead.com, monsterindia.com and jobstreet.com
50%
32%
9%
9%
naukri.com
obsahead.com
monsterindia.com
obstreet.com &
others
Marketshare in terms of Job Listing
9. Jobsahead started operations in September 1999 with funding from the Dalmia
group & later funding from ChrysCap of about Rs. 20 crores.
In 2003, Google rated Jobsahead as the top Indian career website with 2.4
million registered job seekers and 6,000 corporate clients.
Jobsahead had a turnover of Rs. 15 crores for 2003-04, profit of Rs. 3 crores.
In 2003, Jobsahead launched 2 new database products.
Marksman (a role-based matching technique)
Textstar (text-based resume search
Jobsahead.com
10. Monsterindia is part of Monster.com.
It started its operation in 1994 & today the leading global careers website.
In US, Monster acquired the university site, jobtrack which now called monstertrack – that works
with 3,000 colleges and universities on their interview and internship software .
monsterindia has exclusive arrangements with rediff.com and sify.com to direct traffic to the
monster site.
It has six offices in India.
40% revenue comes from tele-selling.
In 2004, monsterindia had a resume database having 900,000 resumes of which 3,000 were
from foreign nationals seeking jobs in India.
Worldwide, monster has over $100 million in cash reserves with approximately 21% profit
margins.
In May 2004, Monsterindia acquired Jobsahead having Rs 40 crores (US$ 9.6 million).
Monsterindia.com
11. Jobstreet.com was started in 1995 in Penang,Malaysia.
It Starts as an online recruitment site to cater to the human resource needs of
companies in the Penang Free Trade Zone.
It has offices in Malaysia, Singapore, Philipines, and India.
In India, it started its business in June 2000 having offices in Delhi, Mumbai,
Bangalore, and Chennai.
Jobstreet uses its own proprietary software called SiVA that incorporates all
applicant tracking and processing, allowing HR departments to reduce
processing time .
jobstreet.com
14. THE US EXPERIENCE (Monster.com)
Monster became partner with the 85 largest online firms to develop co-branding
relationships.
The purpose was to directing traffic from the partner sites to monster.
In 1999, CEO Jeff Taylor put the monster advertisement on the SuperBowl - the
largest number of eyeballs (120 million to 140 million) on TV at any one point of
time in the US. Monster.com paid $4.8 million for a 30 second spot on the
SuperBowl. Due to which within 24hours after the spot’s airing, searches on
Monster’s site increased by 450%.
In 2002, monster’s sales force made up 35 per cent of its 2,700 employees.
15. GETTING THE BUSINESS
• The sales and marketing function at naukri.com was headed by Hitesh
Oberoi – Director Sales & Marketing.
• He joined naukri.com from Unilever in 2000, when the turnover of
naukri.com was Rs. 40 lakhs.
• Naukri.com used an India-wide sales force of 170 distributed in branch
offices across 20 cities in India to obtain business from recruiters.
• He initiated a sales Force whose primary functions were business
development, pre- and post- sales service and relationship management.
17. The sales personnel are typically hired from Tier 2 B-schools in India with a
starting base salary of Rs. 1.5 lakhs per annum.
Their transportation and cell phone expenses are reimbursed.
Norm: Minimum of 3 to 4 sales calls daily.
Each salesperson has three lists to work on – existing clients, potential new
clients that are being currently contacted, and possible future clients that
they have not been met as yet but are on the naukri.com target list for the
future
The attrition rate for salespersons tends to be high;
› at the entry level, as many as 35 per cent of the new hires leave within
six months. Those that survive and remain more than two years have
tended to stay on.
› for those that have stayed for more than two years is less than 7 per
cent.
Performance leads to progress in the organization. Over time, a salesperson
becomes an Area Manager, then possibly a Branch Manager in a city.
THE SALESFORCE
18. SALES FORCE COMPENSATION AND MONITORING
• Each frontline salesperson has a monthly base target, a stretch target,
and a jackpot target.
• At base achievement, he gets 2 per cent of the sale value as variable
pay.
• At stretch achievement, he gets 3 per cent of the entire sale for the
month as variable pay.
• At jackpot achievement, he gets 4 per cent of the entire sale of the
month as variable pay.
• In addition, there is a super jackpot target for the quarter. If, in a
quarter, the super jackpot target is achieved by the salesperson,
then his variable pay already earned for the quarter is topped up so
as to make it 5 per cent of the total sale value in the quarter.
Sales are recognized and incentives paid out only when naukri.com
collects the money from the client.
19. The monitoring of the sales force is ex-post through a review of the daily call
sheets that are submitted to the corporate office.
Daily call sheets are the indices for monitoring planning and productivity; in
the beginning of the month, the salesperson gives a plan of how many calls
he/she is going to make with how many new accounts and how many renewal
accounts to work on.
The firm has been encouraged to sell to clients. CMO, CFO & CEO work
collectively in selling to their clients and obtain their feedback.
On an average, a salesperson makes 65 calls a month and spends 70 per cent
of the time on renewal accounts and the remainder on new accounts.
The salespeople also get formal feedback from the clients on a feedback form.
About 10 per cent of the clients are placement agencies; they are providing
about 60 per cent of the jobs on the naukri site and 30 per cent of the
revenues.
SALES FORCE COMPENSATION AND MONITORING (CONTD..)
20. ADVERTISING
• Previously, it had benefited from positive PR generated by virtue of being the pioneer in the
online area; it was, in fact, among the earliest sites in India in 1997.
• Naukri.com began to do paid advertising from the year 2000.
• Free space given by the newspaper advertising like Hindustan Times in Delhi and The
Tribune in Chandigarh. (Quid Pro Quo)
• Also benefited from ‘barter deals’ -it has done mailers for HR managers for their HR events
based on the database of HR managers that it has built up. In return, the firm for whom
the mailer was done would ‘sponsor’ naukri.com at the event – something that would
otherwise have cost money.
• In November 2003 naukri.com started its TV advertising on English language channels
On November 13, 2004, naukri advertised on the India-Pakistan One Day Cricket game with a
view to further increasing the CV registration rate and awareness of naukri as the online
recruitment firm of choice.
• Hitesh Oberoi expected to put 30 per cent of the advertising budget online and 70 per cent
in TV during 2003-04.
• Online advertising was on the major Indian internet portal sites like Rediff, Yahoo, MSN,
Indiatimes, and Samachar.
21. Hari Sadu, the arrogant boss who is shown his place by a junior who has just landed another job.
22. PRODUCT PORTFOLIO AND PRICING
Job posting services for employees :-
I. Newspaper classified listing
II. Hot job with different period of subscription
III. Hot jobs with e-app
The resume data base :-
I. Resdex is not only the largest but also the fastest growing database of jobseekers.
II. Profiles registered are spread across industries, functions and experience levels.
III. Candidates can be contacted real time either through E-mail or SMS.
IV. The database has candidates from various locations including international locations as
well.
23. Application screening and processing services
I. Review and shortlist multiple applications at once.
II. Create Personal Folders to save and manage applications.
III. Search within the large pool of applications received in your e-Apps account
using easy search tools.
IV. Pre-screen candidates by posting customized Questionnaire along with the job
advertisement.
V. Send e-mail to shortlisted candidates in no time at all using Quick-contact and Auto-
Reply features.
Naukri.com – printed edition
The printed edition of naukri com was launched in feb 2003 with the aim of reaching potential
employers and job seekers who did not have internet access . It was a 48page
weekly magazine and the price of that magazine was Rs 20.
24. FOR THE JOB SEEKER
The job seeker can post his resume free of cost on the naukri.com site in the following
ways:
Public.
Confidential
Private— No employer could review any data through search but the seeker
could send his resume to selected companies
The interested job seekers can be provided alerts when a matching job with the desired
requirement such as location, company, skill set, pay range, etc.
While revenues from resume services increased from 1.17 crores in 2002-03 to Rs. 1.71
crores in 2003-04, the proportion of revenues coming from resume services declined from
13.6 per cent to 8.4 per cent.
In August, 2004, naukri.com was developing its version of mynaukri
25. New Product Development
mynaukri would enable job seekers to manage their entire job search process online through the
naukri.com site.
The objective of mynaukri is to improve the job seeker’s experience on the site by way of better
navigation and improved features with a view to optimize the time spent by a jobseeker on naukri.com,
leading to an increase in applications online, improve response to clients in job posting and obtain more
updated CV’s going into the resume database.
Another new initiative from naukri, launched in November 2004, was the facility of letting job seekers
send their CVs to naukri.com on a word file. The naukri site would then put the resume on the database
and automatically enter 12 key terms (name, company working for, post-graduate institute, computer
programming language skills, job designations desired, etc.) from the job applicant resume into the resume
database.
It increase the CV add rate to the naukri site from an average of 5,000/day to 7,000 CV
additions per day.
26. LOOKING AT THE FUTURE
naukri.com was now a leader in the online recruitment space in India.
naukri.com was on track to achieve a turnover of Rs. 40 crores for the year
2004-05