WhatsApp Product Development Strategy - Imperial College London
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WhatsApp exists to build a better SMS alternative and was founded by two former Yahoo employees. It has over 1 billion active users but currently does not generate revenue. The document discusses potential monetization strategies for WhatsApp such as introducing a freemium model with personalized stickers, emojis and cards. It also proposes expanding WhatsApp's functionality by allowing companies to message users directly and integrating public services. The document projects that these changes could generate billions in annual revenue by 2023 while enhancing customer loyalty and appeal through a growing feature set and user base. Risks around privacy, complexity and partnerships are also addressed.
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Sources:
http://thenextweb.com/asia/2014/01/24/messaging-stop-comparing-wechat-whatsapp/1/
http://jingdaily.com/how-wechats-600-million-users-spell-out-big-profits-for-brands/38568/
http://www.chinainternetwatch.com/4581/wechat-open-api-new-policies
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http://expandedramblings.com/index.php/by-the-numbers-17-amazing-facebook-stats/
http://www.ishmaelscorner.com/2014/01/21/wechat-campaign-in-china-offers-glimpse-into-the-future-of-communications/
http://www.chinainternetwatch.com/5261/10-case-studies-for-wechat-marketing/
http://www.digitaljungle.com.cn/wechat-marketing-service
http://technode.com/2013/12/03/wechat-launched-voice-open-platform-and-speech-recognition-sdk/
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• Metal backing will radiate heat through the towels
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• Saves time rather then washing it in a machine
• The amount of water is saved
• The money for purchasing soup is also saved
• Lastly this can be used in medical facilities like hospitals for sanitation
• Less sickness
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Who doesn't want fresh, bacteria-free towels that smell good and dry easily or stay dry if you have to use them?
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Do you know that wet towels allow bacteria and other microorganisms to grow? In addition, bathroom towels are put in dark conditions that provide the optimal setting for the growth of disease-causing bacteria such as Escherichia coli or Salmonella.
Also the households which has big families mostly they use the same towel to dry their hands as one towel hangs on the rack besides sink, with this kind of disinfecting rack no germs of one will go on to another and the rack with immediately disinfect the towel as it will be hanged on the rack. Couples who recently became parents, are particular about their kid’s hygiene, about the things used by the kid like normally the mothers tend to wash their kids toys towels and clothes regularly but handling a new born baby takes up time and attention with our product they won’t need to wash kids towel daily as they could just disinfect them from all the germ also as the disinfector can be used separately they can disinfect their toys this is will save mothers time and efforts
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- 1. Strategic Product Management 2016 Yuxuan Chen • Pavel Chernyshev • Celine Omeira • Leilani S C Pao • Merve Varli • Yiwen Zhang Chelsea 5
- 2. WhatsApp Messenger Why does it exist? Because we want to build a better SMS alternative. Because we believe we can. Because someday very soon everybody will have a smartphone. Who are the founders? WhatsApp was founded by two men who were doing geeky stuff at Yahoo! Inc. before starting WhatsApp Inc.
- 3. Industry Analysis 1Bn 215M 650M 236M 100M Threat of substitutes Threat of rivalry
- 4. WeChat is the first platform owning a lot of services for users to make their life easier. They dominate the Chinese market for now. However, there is a need in the European market for such platform. Therefore, WhatsApp will fill this gap.
- 5. BCG Matrix High Low High Low Market Share Market Growth ?
- 6. How does WhatsApp make money? Used to generate revenues with the $0.99 fee however now it is downloaded for free.
- 7. I'm not in rush to make money from WhatsApp until they reach 1 billion users. The right strategy is to focus on connecting people before aggressively turning them into businesses. Mark Zuckerberg CEO
- 8. First-Mover Advantage: Network Effect 1 Billion Active Users Massive Database Free Features now has
- 9. IT IS TIME TO MAKE MONEY the PROBLEM1
- 10. TWO POSSIBLE WAYS OF REVENUE GENERATION FOR MESSENGERS Option 1- Application fee (Reduces the user base) Option 2 - Product development (Use best features from our competitors and innovate)
- 12. Stickers & EmojiImitation Strategy Personalization Synchronize to to use personal data
- 13. FREEMIUM Highly personalized stickers, emojis, birthday cards and more. Sticker Shop
- 14. And Go Beyond Communication For the first time companies can approach people directly Cooperation Strategy
- 15. Community Moving from a service to a platform Create a competitive advantage in the European market
- 16. Work with Corporations: Booking Systems (restaurants, movie theaters, flights) Public Services (appointment online) Offers (jobs, promotions, news) Permission marketing Agree to receive a personal message from us on WhatsApp
- 17. Opportunity for businesses of different levels and government to provide best experience ever.
- 18. Revenue Projection Based on calculations of Business Insider the RESULT3 0 1000 2000 3000 4000 5000 6000 2015 2016 2017 2018 2019 2020 2021 2022 2023 WhatsApp Monetization Potential USER BASE YEAR END (M) TOTAL PAYING USERS (M) TOTAL REVENUE ($M)
- 19. Additional Results • First-mover advantage in the European market • Enhancing customer loyalty • Increasing switching costs • Appeal to new customers leading to a growing customer base • Stop the question mark • Value creation to customers
- 20. Risks Mitigation Strategies are Applied Users’ reaction to over complexity Concerns for privacy Difficulties of working with 3rd parties
- 21. Thank you!