Directi Case Study Contest 2010-IIMB Neural Bug
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The document outlines a marketing and business plan for a proposed location-based social networking app called G2 Ghumo Ghumao. It includes a situational analysis of the LBSN market, descriptions of G2's features and game mechanics, a 5 point marketing strategy involving social media, viral campaigns, radio spots, outdoor advertising and PR/publicity. It also presents monetization strategies for G2 like tiered business displays, special offers, and 'Brand of the Week' sponsorships, and projects the total net present value of the business model over 5 years.
Directi Case Study Contest 2010-IIMB Neural Bug
- 1. Team Neural Bug, IIM Bangalore 1Ghumo Ghumao G2 A Business Team Neural Bug, IIM Bangalore Chinmaya Kumar Sharma (09164305272) Kunal Bhagat (09341073598) Monisha Nakra (09739911067) S Archana (09986587931) Ghumo Ghumao Ghumo Ghumao G2 Username Password
- 2. Team Neural Bug, IIM Bangalore 2Ghumo Ghumao G2 Ghumo Ghumao G2 Agenda Overview and Situational Analysis •Social Networking has arrived (and will change the game) •Comparison of LBSN products currently in the market • Consumer Analysis – Survey & FGD G2 : Ghumo Ghumao – LBSN from Directi •Product Features and Story of G2 •What happens at G2 • G2 Game Mechanics • G2 Start a Revolution Feature Marketing G2 •Online Marketing Options •Offline Marketing Options •Affiliate and Partnership Options • 5 Point Marketing Program Monetization Strategies •Revenue Model •Total NPV Projection – Survey of businesses Conclusion and Way forward
- 3. Team Neural Bug, IIM Bangalore 3Ghumo Ghumao G2 Ghumo Ghumao G2 471 mn 127 mn 12 mn 2 mn India Mobile subscriber base Internet access- enabled phones # of Users ever used Internet Active users of mobile internet Social Networking Has Arrived 1. google.com 2. orkut.com 3. facebook.com 4. youtube.com 5. getjar.com 6. yahoo.com 7. songs.pk 8. wikipedia.org 9. zedge.net 10. my.opera.com TOP SITES ACCESSED THROUGH MOBILES IN INDIA (July 2010) • Page-view growth since July 2009: 371.7% • Unique-user growth since July 2009: 354.6% • Page views per user: 393 • Data transferred per user (MB): 7 • Data transferred per page view (KB): 18 STATISTICS (July 2010) IAMAI estimates the 3G launch and reduction in the prices of 3G and GPRS enabled handsets (smart phones) to increase mobile internet users to 25 million by 2012, and up to 50 million users by 2014 The usage patterns show the dominance of social networking sites among all sites visited by mobile internet users Situational Analysis & Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward Source: Opera State of the Mobile Web, July 2010
- 4. Team Neural Bug, IIM Bangalore 4Ghumo Ghumao G2 Ghumo Ghumao G2 LBSN Product Device Support Game Mechanics User Benefits and Perks Dashboa rds for business es Foursquare iPhone, Blackberry, android, ovi, other Badges and points Coupons and freebies Available Gowalla iPhone, Blackberry, android, iPad, palm Pins and items Free gifts and specials Not Available Loopt iPhone Rewards and achievements Retail discounts Not Available Yelp iPhone, Blackberry, android, palm, other Royalty levels Coupons, guides and reviews Available Brightkite iPhone, Blackberry, android, ovi, other Badge levels Reward programs Not Available Ghumo Ghumao iPhone, Blackberry, Nokia, Other browser enabled phones Earn degrees: Fresher, Diploma, Masters and PhD Rewards for patronage & discounts Available Comparison of LBSN products in the market Situational Analysis & Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward
- 5. Team Neural Bug, IIM Bangalore 5Ghumo Ghumao G2 Consumer Analysis* Research Methodology Consumer Profiling – LBSN Users Cities – Metros, Tier I & cities with population > 1 Mil Socioeconomic Classification – A1, A2 Lifestyle – Culture oriented, Outdoor oriented Personality – Ambitious, Gregarious Geographic Age 15-34 years, 35-50 years Occupation Students Professionals Self Employed Businesspersons Demographic Psychographic Situational Analysis & Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward *Detailed in Appendix
- 6. Team Neural Bug, IIM Bangalore 6Ghumo Ghumao G2 Ghumo Ghumao G2 Connect with and meet friends Gain degrees from your favorite hangouts – A PhD from KFC Avail utility services like cab booking, tracking buses, traffic updates, weather updates Create a Social Revolution – Form groups and mobilize people Explore your city and discover new places – leave recommendation Avail special discounts for patronage to specific stores Create Interest groups – Meet friends with similar interests Situational Analysis & Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward G2 Ghumo Ghumao: The Product
- 7. Team Neural Bug, IIM Bangalore 7Ghumo Ghumao G2 Ghumo Ghumao G2 User Downloads app to phone Registers – specifies interests, adds friends User logs on – he can see his friends online at different places User can explore different places around his current location S/He can add new places which are not listed Users can leave tips about places - People give Jhappi if they like the tip What happens at G2 • A form of appreciation for the tips left by other users • A “jhappi” is counted if users who like it actually go to the place suggested and check in • Users can redeem Jhappis for talk time from their service providers The “Jhappi” Concept Situational Analysis & Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward
- 8. Team Neural Bug, IIM Bangalore 8Ghumo Ghumao G2 Ghumo Ghumao G2 Game Mechanics Fresher • When user checks in to a place for the first time Diploma Holder • After 3 more check ins at the same place he gets a diploma from the business Master’s degree • After the 8th check in the user automatically upgrades to a masters degree Ph D •The top 3 users who have the maximum check in the last 3 months are the Ph D holders •S/He is entitled to special freebies from the store depending on the number of check ins he has made at that place PhD Situational Analysis & Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward
- 9. Team Neural Bug, IIM Bangalore 9Ghumo Ghumao G2 Starting a Revolution! Kunal: Reggae concert next month at Someplace! Who do I go with? Let’s see what G2 can do for me? Kunal started a Reggae Revolution! Ans and join: Q1) --- Q2)---- Q3)--- Your membership status:???? Few days later Few seconds later Kunal- Reggae Lord Sharan-Reggae King …… …. John- Reggae Learner Profile: Kunal TO-DO (20th July) Kunal is attending “Reggae Live” at SomeP with Shara, Anand and Pancy! Start one on any subject Form a like-minded bunch Separate the pros from the learners Opportunity to rise up the social ladder by learning “Revolutions” D-Day!
- 10. Team Neural Bug, IIM Bangalore 10Ghumo Ghumao G2 Ghumo Ghumao G2 Marketing Plan – Online Options Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward Options Description Average Cost Impressions/ Impact MetricsONLINE Banners • Animated Story based Ad featuring G2’s mascots – Boy and Girl Stick Figures • Can be used to build brand awareness • On popular websites - Rediff, Yahoo, Indiatimes, Bharat Matrimony, Chakpak, Ibibo, BigAdda, Cricinfo, News Sites • Link exchange banner advertising? CPM Focus only on high trafficked sites and monitor page views Social Media • Integrated presence on SM – Facebook, Twitter, Wikipedia, Blogger and so on • Drive awareness and encourage adoption Virtually no cost option Very large Number of Followers SEO • Tag words like location, social networking, LBSN, G square etc. for getting optimum results on Google and other Search engines ~ INR 25,000 Rank Order of G2 in relevant search Viral • Series of animations based on G2 theme and mascots for YouTube and other media to create buzz ~ INR 2,50,000 Large Number of Views
- 11. Team Neural Bug, IIM Bangalore 11Ghumo Ghumao G2 Ghumo Ghumao G2 Marketing Plan – Offline Options Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward Options Description Average Cost (Rs.) Impressions/ ImpactOFFLINE Print • Run a print media campaign for build-up and launch of the application in major cities 3 Lakhs (Back Page – Half) • National dailies have large penetration. • Provides multiple options Radio • Tying up with local FM channels to promote G2 coinciding with launch • City specific therefore good option to reach target audience 6,000 for 10sec, 10 times a day • Radio has regained popularity with youth • Catchy radio jingles have a lasting impact Outdoor • Billboard advertising • OOH Media • Effective in getting eyeballs in high traffic area 70,000 per month • Attracts customers outdoors • Presence in places where the youth hangout PR and Publicity • Sponsoring College events, Rock shows etc. – fun games and treasure hunts on G2 2 -3 Lakhs • Helps create a brand identity • Users associate G2 with fun stuff TV • 20 second spots targeted advertising G2 • Scrollers/Banners during relevant shows 3.5 Lakhs for 10 sec • Cost is very high but has maximum reach
- 12. Team Neural Bug, IIM Bangalore 12Ghumo Ghumao G2 Ghumo Ghumao G2 Marketing Plan – Affiliation Options Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward • Brand of the Week – Pixel Rent out plan for national brands to advertise on G2 screen. • Partner with Mobile handset manufacturers to provide G2 application pre-loaded – for Smart Phones. • Partner with Service Providers to have reward schemes based on G2. For instance, free talk-time for accumulated “Jhappis”. • Radio Cab Services – Easy launch Apps provided on G2 to enable convenient booking facilities for users on the go.
- 13. Team Neural Bug, IIM Bangalore 13Ghumo Ghumao G2 Ghumo Ghumao G2 5 point Marketing Plan Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward Storm the existing Social Media world with G2. Create an exhaustive and integrative web presence across popular SM sites. Create series of Viral Ads for YouTube and other Social Media – unique theme based animations featuring the G2 mascots. 1. SOCIAL MEDIA 2. VIRAL CAMPAIGN Tying up with local FM channels to promote G2 during phased launch. 3. RADIO SPOTS
- 14. Team Neural Bug, IIM Bangalore 14Ghumo Ghumao G2 Ghumo Ghumao G2 5 point Marketing Plan Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward Billboard advertising in prominent shopping locations in the city: cost-effective way to achieve maximum eyeballs among target audience. 4. OUTDOOR Market Storming during launch. Sponsoring College events, Rock shows etc. – fun games and treasure hunts organized on G2. 5. PR/PUBLICITY
- 15. Team Neural Bug, IIM Bangalore 15Ghumo Ghumao G2 Ghumo Ghumao G2 Monetization Strategies Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward • Tiered display Model of Businesses: Kuchh Khaas (Recommended), Aas Paas (Nearby) • Brand of the Week – Clickable Pixel Rent out to big brands • Special Offers based on User Preferences • Geographic Specials • Business Intelligence and Analytics as a Service
- 16. Team Neural Bug, IIM Bangalore 16Ghumo Ghumao G2 Ghumo Ghumao G2 Monetization Strategies Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward Ghumo Ghumao G2 You are here: Brigade Road, Bangalore Friends Places History Recos Kuch Khaas Pico’s Bar ##, Church Street Crossword Book Store ##/A, Brigade Road Aas Pass Mc Donald’s ##, Brigade Road Café Coffee Day ##, Richmond Road National Library Brand of the Week – Gets dedicated clickable pixel space on screen Recommended Places Nearby Places
- 17. Team Neural Bug, IIM Bangalore 17Ghumo Ghumao G2 Ghumo Ghumao G2 Monetization Strategies Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward Ghumo Ghumao G2 History Recos Maps Special offers Offers you might like Shoppers Stops Check out the Limited period Summer Sale Flat 50% off on all purchases ##, M.G. Road Crossword Featured discount on new releases ##, Richmond Road Special Offers Based on user preferences Eg: If user’s interests are shopping and books then the order of offers visible to him is based on his interests
- 18. Team Neural Bug, IIM Bangalore 18Ghumo Ghumao G2 Ghumo Ghumao G2 Monetization Strategies Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward Ghumo Ghumao G2 History Recos Maps Special offers Alert Since you are in Brigade, you might want to check out the new flavors of tropical Iceberg at CCD. Get 10% off on your purchase if you rush now. Geographic specials - Alerts of offers only based on user’s interests.
- 19. Team Neural Bug, IIM Bangalore 19Ghumo Ghumao G2 Total NPV Projection* TOTAL NPV = Rs. 1,531,877,698 NPV calculations Revenue calculations Scheme Year 1 Year 2 Year 3 Year 4 Year 5 Tiered Model 6,916,000 13,278,720 24,897,600 44,262,400 74,337,120 Special Promos 47,840,000 90,417,600 167,440,000 294,694,400 490,838,400 Brand of the Week 2,600,000 3,120,000 3,120,000 3,640,000 3,640,000 Geographic Specials 36,400,000 73,382,400 142,688,000 260,915,200 448,156,800 Total (in Rs.) 93,756,000 180,198,720 338,145,600 603,512,000 1,016,972,320 Scheme NPV Tiered Model 112,356,675 Special Promos 750,068,618 Brand of the Week 12,032,574 Geographic Specials 657,419,832 Total (in Rs.) 1,531,877,698 Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward *Detailed in Appendix Price Elasticity function arrived at through survey of businesses
- 20. Team Neural Bug, IIM Bangalore 20Ghumo Ghumao G2 Conclusion and Way Forward • Pricing of the Services (provided to businesses) needs to be undertaken after a comprehensive marketing survey • Roll out of the platform should be in a phased manner in the metros and tier 1 cities – we may start with Bangalore or New Delhi • Develop Data Analytics to measure and monitor the impact of the system for businesses • Merchandizing, Virtual currency and gifts will be another source of revenue after a strong base has been established • Privacy needs of end users must be well understood and built into the system Situational Analysis & Overview of LBSN G2 Ghumo Ghumao The Product Marketing G2 Monetization Strategies Conclusion and Way Forward
- 21. Team Neural Bug, IIM Bangalore 21Ghumo Ghumao G2 Appendix
- 22. Team Neural Bug, IIM Bangalore 22Ghumo Ghumao G2 Tiered Model Forecast Year 1 Year 2 Year 3 Year 4 Year 5 Price per week 35 40 45 50 55 No. of businesses approached 500 700 1000 1400 1900 No. of businesses subscribing 380 532 760 1064 1444 Number of Markets 10 12 14 16 18 Revenue per year 6,916,000 13,278,720 24,897,600 44,262,400 74,337,120 NPV of 5 years projections 112,356,675 Price Demand Priced at Elasticity=1 point to maximize revenues. Price Elasticity function determined through survey with businesses
- 23. Team Neural Bug, IIM Bangalore 23Ghumo Ghumao G2 Brand of the Week Forecast Demand Year 1 Year 2 Year 3 Year 4 Year 5 Price per week (clickable) 50000 60000 60000 70000 70000 Revenue per year 2,600,000 3,120,000 3,120,000 3,640,000 3,640,000 NPV of 5 years projections 12,032,574 Price fixed at Rs. 50,000 per week in the first year and increasing thereafter.
- 24. Team Neural Bug, IIM Bangalore 24Ghumo Ghumao G2 Special Promos ForecastPrice Demand Year 1 Year 2 Year 3 Year 4 Year 5 Price per package (of 15 days worth of Promos) 400 450 500 550 600 No. of businesses approached 500 700 1000 1400 1900 No. of businesses subscribing 230 322 460 644 874 Number of Markets 10 12 14 16 18 Revenue per year 47,840,000 90,417,600 167,440,000 294,694,400 490,838,400 NPV of 5 years projections 750,068,618 Priced at Elasticity=1 point to maximize revenues. Price Elasticity function determined through survey with businesses
- 25. Team Neural Bug, IIM Bangalore 25Ghumo Ghumao G2 Geographic Specials Forecast Price Demand Year 1 Year 2 Year 3 Year 4 Year 5 Price per package (of 30 days worth of alerts) 1000 1200 1400 1600 1800 No. of businesses approached 500 700 1000 1400 1900 No. of businesses subscribing 70 98 140 196 266 Number of Markets 10 12 14 16 18 Revenue per year 36,400,000 73,382,400 142,688,000 260,915,200 36,400,000 NPV of 5 years projections 657,419,832 Priced at Elasticity=1 point to maximize revenues. Price Elasticity function determined through survey with businesses
- 26. Team Neural Bug, IIM Bangalore 26Ghumo Ghumao G2 Need Gap Analysis - Survey Source: Primary Research (Survey) 26 Current modes of Social Networking IPhone applications • Internet has lots of info. • Friends give personal opinions • Scattered Resources • Unmapped! • Old Information • City-specific activities • Connect to fellow- wanderers Survey Results Top preference for LB services and Social networking through Mobile phone Apps
- 27. Team Neural Bug, IIM Bangalore 27Ghumo Ghumao G2 Laddering – Interview/FGD Company Logo Avail special store discounts Certification from fav brands Discover new places based on Peer Recos Social Revolution Incentivizes me to shop at the store Motivates me to shop more at the store Make friends/Tell them what I’m upto Useful Info Utility services Appeases my love for new places Makes me actively scout for offers on G^2 Connect better with brands Better connect with people Ego Boost - I feel special/popular Instant updates Helps me stay planned/organized
- 28. Team Neural Bug, IIM Bangalore 28Ghumo Ghumao G2 Concept Generation Customer Need Product Requirement Single Source of info. on • places of interest • modes of travel • traveler feedback •Handling database on places/ activities/ locations • Ability to record and collate feedback Ease of use • Clear presentation of information • Info. on navigating between points • Sense of location • Visual map • Recos & reviews by users •Reliability of Information •Variety and magnitude of information • Internet-based application • Auto-update of information •User Fatigue •Need for exciting features •Need to be incentivized •Revolutionary Kunal, Utility services •Store discounts, Certifications by Brands