Directi Case Study Competition 2010

Submission

Team AboveandBeyond, SJMSOM IITBombay

Sanjoe Tom Jose, sanjoetomjose@iitb.ac.in, 9324672828
Harshil Meraiya, meraiya@iitb.ac.in, 9769585897
 Content
• Background
• India as market for Location Based Services
• Landscape Analysis
• Competitor Analysis
• Proposed Directi Business Model
• LoSNS Features
• Category wise Inbuilt Applications
• Roll Out Plan
• Monetizing Strategy
 Background
• With 500 million mobile phone users, India
presents an enormous opportunity for such
location based social networking engines
• The proposed plan contains Product
Development & Marketing Strategy for Directi
entry into location SNS
• Launch market for this platform will be India
 Mobile Internet in India - Way Forward
Mobile Marketing
Location Based
M-Blogging/SNS Content
M-Commerce
Mobile Gaming

Smart Phones
E-Book Reader
3G Mobile Wireless Devices
Wimax Internet Open Source s/w
Users in
India
Technol
Devices
ogy
 Promising India Specific Statistics

Source: AdMob -serves ads for more than 23,000 mobile websites and applications around the world
 User Behavior Statistics

Do you have online

friends you’ve never
met in real life?

•Compared to users in the other top 10 countries, users in India are more likely to
be browsing with Opera Mini between noon and 4 p.m
•India has the fewest female users (4.0%)

Mobile Internet (using Opera Mini) growth in India (July 2010)

■ Page-view growth since July 2009: 371.7% ■ Page views per user: 393
■ Unique-user growth since July 2009: 354.6% ■ Data transferred per user (MB): 7

Top 10 sites in India (unique users) Top 10 handsets in India for July 2010
1. google.com 1. Nokia 5130 XpressMusic
2. orkut.com 2. Nokia 2700c
3. facebook.com 3. Nokia 2690
4. youtube.com 4. Nokia 3110c
5. getjar.com 5. Nokia 2730c
 India as a Market for LBS
Drivers

•Growth of data-enabled handsets and push from mobile operators

•Recruiting active social networking junkies on to mobile platform
•Strong signs of viral growth amongst GPRS audiences
•Local applications on the mobile themselves: Engagement and Relationship
enhancers
•Converting web-ignorant users on to mobile social networking
•Services could be GPS-enabled as well as non-GPS based

Opportuni
Challenges
ties
●
High number of mobile subscribers ●
High amount of data tariffs
●
Evolving VAS users ●
Lack of content
●
Deeper integration of Mobile apps on to handsets ●
Lack of standard Social networking apps/App store access
●
Innovative Offerings ●
Improper Revenue Sharing
●
Advent of 3G/faster Mobile internet ●
Consumer Education & Awareness
 Why Operators should Support LBS
Operators benefit as well

• Access Charges
• Increased Mobile Internet Adoption
• Differentiation
• Increased Retention
• Advertising Revenues

Enhancers from Operators

•Introduce Flat Rate – Consumers do not

understand megabytes
•Easy Access thru own portal or widgets
•Share location with LBS service providers
•Smooth Integration of MMS and SMS with
the social networking sites
•Flexibility in Revenue Share – Carriers
should be open to share part of access
 Landscape Analysis: Regular Users

Key Customer Preferences

P1 Presence of large number of friends
P2 Opportunity to make new friends
Preference Drivers for Users P3 Varied value delivered efficiently
No of users Acquisition
  Retention P4 Localized content available
  Engagement P5 Desired quality of content
  Value Delivery P6 Large volume & variety of content
Content Localization
  Quantity P7 Affordable, available & compatible
  Quality Industry Preferences/Goals
Ease of use Affordability G1 Acquisition & retention of customers
  Compatibility G2 Ease of locating people & information in network
  Availability
G3 Volume & distribution of partners
G4 Geographic distribution & Translation Services
G5 Optimum moderation of quality
G6 Incentivizing content
G7 Affiliation with other stakeholders
 Landscape Analysis: Institutions

Key Institution Preferences

P1 Presence of large number of users
P2 Presence of target group
Preference Drivers for P3 Efficient way to access target group
Institutions P4 Quality of Analytics
Users Quantity P5 Variety of application to meet different needs
  Appropriate P6 Frequent updation & compatibility of applications
  Accessibility P7 Affordability of application
  Quality Analytics
Application Variety Industry Preferences/Goals
  Updation G1 Acquisition & retention of customers
  Availability G2 Ease of locating people & information in network
  Compatibility G3 Appropriate applications
G4 Superior information processing capability
G5 Attract quality application developers
G6 Incentivizing application development
G7 Affiliation with other stakeholders
 Competitor Analysis: LoSNS
Features FourSquare Gowalla FB Places
Customizable, Special
Finding Locations (GPS Locator) As you want (private or social) Mandatory sign in treatment to minors

To do List Personal, friends, location based Social "trips" Tag, like, People here now

Geographic availability Stepwise introduction(citywise) Everywhere Stepwise introduction

(Countrywise)

City Guide (Maps/Yellow Pages) Search listing, location based

listing, favorites by friends
Categorized listings,
location based listings
Location based listing, Create
location if it doesn't exist

Custom badges for activities, Pins (for accomplishments),

Game Incentives and Awards business and events items for pick up and drop NA

Design/Usability Simple (minimalist) Complex (maximalist) NA

Competition for mayorship of Top 10 list of users for each

In game competition venue venue NA

Device Support (Smartphones/ iPhone, Android, Blackberry iPhone, Android iPhone

Nonsmartphones)

Real life perks Businesses give freebies Freebies for holidays NA

/discounts for loyalty programs

Friend Management Pings and shouts Pings and shouts Push notification to friends
nearby , Tag friends with you
 Competitor Analysis: Applications
● Reward customers for checking-in ● Business directory for Foursquare
● Automatically send personalized Tweets to ● Shows all the venues in city offering deals on
customers a Google map
● Manage multiple campaigns across venues
● Advanced reports and analytics-demographics, time
● Like a deal; send it to phone to redeem later
of check-ins ● Create SMS advertising campaigns
● Branded sign-up pages & modules in company ● Get lists of customers to add them as friends
website in order to get their phone numbers

PlacePunch Snacksqaure

● Made for Facebook places- customizable;

Check-In Leaderboard
● Way for brands to recognize users who
‘check in’ to store or restaurant
● Categories like ‘High Roller’ and ‘Shop-a-
holic’ with special deals and offers to Top
Fans

Context Optional

● Dashboard to create a designated site for a ● All social media connections in one place with
promotional campaign history & notes
● Aggregate check-in and geolocation info along with ● Connect to customers and monitor key metrics;
the details of campaigns
● The business can Tweet out the links to potential max check-ins, first-time visitors
users
● Integrates with social networks for lead
● Analytics to see which locations are getting the most generation, business intelligence; Conversation
traffic tracker covering Tweets, Reviews, Blog Posts, News

Geotoko Sprout Social

 SWOT Analysis
Strengths
Knowledge of Indian Market
Learning from well established models
Weaknesses
Customer Acquisition & Content Generation has to start from
scratch
Application development won’t be easy
Opportunities
Indian market is large, untapped and fast growing: co-existance
Can form tie-ups to share services & user base

Threats
More than expected delay in launching service
may give competitors time to dominate market
 Directi Business Model
Revenue is shared Directi
among these players

LoSNS Apps
Mobile Operators
Social Networking Sites
Application Developers
Mobile Handset Makers Users are assets of Institutions use Directi
Directi, premium users applications for a
pay for special services subscription fee

Provide/receive free or
paid services
Provide/receive free or
paid services
Regular
Users (Free Institutions
+ Premium) Sell/Buy goods & services;
offer/accept incentives

*LoSNS- Location Based Social Networking Sites **Apps- Applications ***Many Apps are developed in-house initially
LoSNS Feature 1: Location check-ins

Users will be informed about

location they are at on demand
(GPS/Non GPS based)
Privacy customization by group
formation __only user-allowed group
will be notified
Challenges Opportunities
Non existing locations can be
suggested by users
LoSNS will be compatible to all
leading mobile OS and Handsets.
 LoSNS Feature 2: To do List

User’s list-
Check in,
Tag (friend, place),
Comment (new);
Upload (real time video, audio,
picture) User’s friend list-
Challenges Opportunities Like (comment, audio, video by
friend),
Reply (to friend’s comment in
personal),
Comment (public)
LoSNS Feature 3: Geographic availability

Phase wise introduction of

Website.

First yr in 5 Metro cities and

Challenges Opportunities Banglore and Hyderabad.

Second year-tier1 cities.

 LoSNS Feature 4:
City Guide/ Location Navigation

Search listing (search location

by typing)
location based categorized
listing (dropdown location)
My favorite (Places one has
Challenges Opportunities visited before and favorite are
easily available in this menu)
Favorites by friends (search
friend’s favorite places)
 LoSNS Feature 5: Gaming

Game Incentives and Awards

-Points
-Awards

Challenges Opportunities In game Competition

-Beat the friend
-Record
LoSNS Feature 6: Business Support

Ask for assistance (offer details at

partner location i.e, malls)
Leave feedback (No need to
provide personal details)
Analytics (Usage reports to location
partners in term of statistics)
Challenges Opportunities
SMS service(greeting to customers
by local partners)
Real time targeting ads to checked
in users
LoSNS Feature 6: Business Support

Follow places (Pull notification

for places) – Information
regarding which friend arrived at
place
Challenges Opportunities Allow friends to send
notifications (when friend is
visiting a place, automatic
notification is sent)
 LoSNS other Featurs
• Device Support
– GPRS enabled mobile phone

• Real life perks

– Loyalty program by location partner (Partner status of location partner in categorized
listing)
– Freebies to Most Active Users of website
– Surprise benefits for most award winners (promotion of viral marketing)

• Design/Usability
– Simple/minimalist

• Location based information

– Tourism, Universities, Museums
 Inbuilt Applications Category 1: SMEs

Build
Analytics
Loyalty
Dashboard Others
Programs
Frequent customer program,
●
Validity of Check-ins using QR
● ●
Demographics
●
Deals for Group buying with code check-in feature
●
Time of check-ins ●
Branded sign-up pages &
check-ins ●
Categorize users based on modules in company website
●
Custom rewards for pre- frequency and behaviour ●
Automatically send
defined specific behaviours ●
Which of own outlets are personalized Tweets to
●
Add their own Mayorship
getting the most traffic customers
●
Specials to Deal Directory ●
Customer specific metrics:
●
Opt-in: presenting deals only to
●
Manage multiple campaigns interested parties on their own
across venues max check-ins, first-time
terms
●
Create SMS advertising visitors ●
Lead generation, business
campaigns ●
Conversation tracker intelligence;

With the ability to share your check-ins and actions with friends, consumers will
magnify the punch card effect
 Inbuilt Applications Category 2: Educational Institutions/ Tourist Spots
Facility
Campu
Explorati
s tour on
●
Schools/authorities can ●
Encourage users to explore
leave tips around college campus by offering rewards
campus/ tourist spots to those who check in to a
●
Schools can leave tips to particular set of venues
alumni for Homecoming
●
Network lets can upload
photos and messages to
to inform about things
that
that have changed since ●
Colleges and tourism
last visit authorities can offer
●
Tourist Spots can leave promotions at retail
information about locations such as
importance/history of bookstores & heritage
shops.
each specific location
Data
Off campus
promotions Collectio
n:
●
Rewards for those who
●
Universities can see
venture beyond demographics,
campus boundaries determine whether
and engage specified certain events are
activities. more popular than
●
Universities with others, see trends in
satellite offices or study usage of various
abroad locations- facilities like Health
Students interning in a Centres
unfamiliar city can ●
Tourism authorities
receive advice from
can study nature and
their school’s alumni behavior of tourists
 Inbuilt Applications Category 3,4,5

Category 3:
News
Category 4: Category
Housewives
Services 5: NGOs
●
Find targeted contacts ●
Track discounts for “check-ins” ●
Make a statement Eg: proactive
●
Delivering breaking news to reward users for their brand initiative is designed to encourage
sexually active young adults to check
people who are in a particular loyalty
in when they visit a clinic, and help to
location ●
Utility search applications for remove the stigma around the
●
Extra insight into businesses and restaurants, shops, restrooms, experience or check in for charity
individuals by monitoring their taxis initiative
activity ●
Babymate, a feature that helps ●
Promote Charity Eg: TOMS matches
●
Discovering Trends parents keep track of their every pair of shoes purchased with a
pair of new shoes for a child in need,
●
Publishing & distributing content babies’ development
Gowalla users could check in to share
esp for Individual journalists ●
Imports your usual haunts from their messages of hope and
●
Crowd-source projects; offer Foursquare and then keeps tabs inspiration for those affected by
rewards on deals at those venues for you cancer
 Inbuilt Applications Category 6,7,8

Category 6: Category 8:
Category
Premium Entertainme
Users 7: Games nt
●
Get e-mail of list of your day’s check-ins, to ●
Games based on avoiding ●
Use the application to check-in
you fill in information about each to the live content you’re
experience
check-in activity on network
●
Allows to send selected check-ins as text like Zombie watching
messages or e-mails to non-users that ●
Beat friends’ record at
●
Connect with other fans and
you’d like to meet up with earn show-specific awards based
●
Check-in data from various networks are particular locations
on their behaviours like Director,
collated and shows you what places in ●
Play against friends at same
your neighbourhood are hot spots producer etc
●
Geofencing: send automated messages on
location ●
Media companies can pull data
entry to fenced areas ●
Games on the basis of to measure popularity, television
●
Like a deal; send it to phone to redeem maximum number of check-
later trends, engagement and a whole
●
Shows all the venues in city offering deals ins or maximum number of slew of other fascinating facts
on a Google map locations covered about user behaviours
Focus Category according to period of year

Educational SMEs, News Travel Retail shops,

Institutes, Services, agencies, Malls,
News Services Hotels, Restaurant Cinemas,
Jewelers, chains, Hotels, Jewelers
Investors, Clubs
Educational
Institutes

●
Jan to ●
Apr to ●
Jul to ●
Oct to
Q1 Q2 Q3 Q4
Mar Jun Sept Dec

More tutoring FY end Travel and Consumption

for upcoming reports, New tours likely growth due to
exams, Sports events, to increase Diwali, Christmas
events Marriages, due to
Admissions holidays
 Roll Out Plan- Stage I (Year 1)
●
Lack of Awareness
●
Penetration
Challenges

●
Growth Rate ●
Launching the website & Apps Store- PR

Plan Promotion: Newspaper & TV Advt, Online Advt, Band Shows

●

●
New services ●
User Acquisition: Viral Marketing, Student Competitions, Celebrities,
Online Games, Awareness Campaigns
●
Evolving Users
Opportunities

Institute Apps Centered

●

●
Free ‘n’ days trial,
●
Co-creation,
Partnerships ●
Early Bird discounts

●
7 Major Cities
Target Market ●

●
Partners: All Categories except premium users
Mobile & PC Internet users
 Roll Out Plan- Stage II
●
Quality Content Creation
●
Localized Content

Challenges

●
Tech Savvy Early Adapters
●
Incentivizing content generation

Plan Promotion: Newspaper Advt, Online Advt, Sponsored Get-togethers

●

●
First band of Application ●
Referral Programs esp for Appln users
Developers ●
Acquisition: Viral Marketing

Opportunities

Institute ●
Innovative Analytics Services
Partnerships ●
Feature enriched applns

●
Premium service for regular users
Expanded Services ●
Localized applns
 Roll Out Plan- Viral Marketing
●
Crowded
●
High failure rate
●
Less Control
Challenges

Unlimited Scope for innovation Online Student Competitions

●
●

●
Economic ●
Bagging in Celebrities as users
Methods
●
Direct User Acquisition ●
Games
●
Education & Promotion Videos
Opportunities ●
Referrals for regular users

Social Networking Sites

●

Channels ●
Youtube/Flickr etc
* Student Competitions will consist of promotion videos, promotion in
●
Incentivizing
SNS, Education Campaigns etc
Content creation
 Roll Out Plan- Affiliations
●
Convincing
●
Entry of established
services
Challenges

●
Directi’s knowledge of ●
Mobile Operators
Indian Market ●
Social Networking Sites
Partners
●
LoSNS + Apps package ●
Application Developers
●
Mobile Handset Makers
Opportunities ●
Chain stores: McDonalds, The LOOT

Method
●
Newspaper Avdt
●
Direct Marketing
 Marketing Budget
S.No. Item Cost
1 Newspaper Advt 2400000
2 Get Togethers 100000
3 Viral Marketing 1000000
4 Student Competitions 300000
5 Direct Sales Staff 840000
6 TV Advt 1500000
7 Band Shows 1000000
8 PR for Launch 100000
9 Incentivizing Content 500000
10 Referrals 500000
  Total (In Rs.) 8,240,000
 Monetization strategy
• Institutions are biggest source Total revenue from institutions at 2500 Rs pq
of revenues. 300,000,000
• In 1st, 2nd and 3rd year- growth
rate is assumed 100%,50% and 250,000,000
25% per quarter.
• Institutions are charged at 2500 200,000,000
Rs per quarter which is similar
to internet connection charges. 150,000,000
• Pessimistically 1000 institutions
are location partner in 1st 100,000,000
quarter.
• NPV of 3 yr Revenue is 763Mn 50,000,000

INR(=16.5Mn $)
-
1 2 3 4 5 6 7 8 9 10 11 12
•3 yr is considered to calculate NPV of revenue as technology and
trends are likely to change before 5 years.
•Milestones are set in quarter year terms as speed to market is critical Total revenue from institutions at 2500 Rs pq
factor for success of social media and within a year, growth is expected
to be exponential rather than linear.
 Monetization strategy
• Advertisements are also major source of 35,000,000
revenue.
30,000,000
• Per day advertisement on main page
(fees based) is priced at 10000 Rs. Which 25,000,000
reaches to 60000 Rs at the end of 3 yrs.
• Per hour bid ad is estimated to give NPV 20,000,000
of 10 Mn Rs for 3 yrs.
• Real time location based targeting ad will 15,000,000
contribute greatly to the revenue. It will
be charged at 10 paisa per customer to 10,000,000
the location based advertiser.
5,000,000
• 10% of institutions that are partners will
opt for real time based ad will give NPV -
of 75.25 Mn Rs. 1 2 3 4 5 6 7 8 9 10 11 12
• Total 3 yr ad revenue will be 93.89 Mn
Revenue from main page ad
Rs. Revenue from 12 hours of ads
Revenue from real time ads(5 times a day)
Total revenue from ads
 Monetization strategy
• Gaming is charged to users at 30 Rs 2,500,000

p.m. and Premium membership

charge is 30 Rs p.m.
2,000,000
• Total GPRS users are expected to
rise at 50%, 25% and 10% pq in
three years respectively, out of 1,500,000
which, 1% are expected to check in
LoSNS and out of that 2% will play
games and 5% will opt for premium 1,000,000
membership in the 2nd yr onwards.
• NPV of 4.1 Mn Rs and 9.1 Mn Rs is
500,000
expected respectively from gaming
and Premium membership.
-
1 2 3 4 5 6 7 8 9 10 11 12

Gaming revenue at 10 Rs pm
Revenue from Premium user account @ 30 Rs pm
 Monetization strategy
• Total NPV of LoSNS within 3 years turns out to be
870,590,442 INR(=19Mn$ ).
• If pessimistic growth rate of 10% can be continued
for further 2 yrs, Total NPV will be 2,736,033,358
INR(=60Mn$)
• ROI is 328%.
• Revenue Sharing with Service Providers &
Application Developers is a potential source of
revenue which is not considered in the calculations
Microsoft Office
Excel Worksheet
Thank you