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

1. Relationships Matter
WebBusters
Anjali Kumari
Kumar Ritesh Ranjan
Namratha Agarwal

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. Relationships Matter is a fully integrated online relationship-building platform that allows people
to 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. , 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 Potential
1 IAMAI
Market Potential = 31M Brand Potential = 17M
Market Potential
Relationships Matter

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 services
Industry Analysis ‘A go ahead’
Relationships Matter

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 Sena
Company Analysis
Relationships Matter

7. Planned product development stages
2012 2014
Launch the realtionship plarform by mid Improve the product based on customer
2012 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. • 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. 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. Mock ups
Relationships Matter

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
signups
Home Page of the Website
Relationships Matter

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 revenue
Notification
of Gift
received
from a co-
user Must Visit
Home Page of a user locations in the
virtual world –
‘Go out’
Relationships Matter

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. Go Out
Different
Avatar as
options to
uploaded
get ready
when the
for Going
profile was
out.
created.
Accepted
Go-out
appointmen
ts.
Enter the
virtual
world –
Go out to
meet
people
online
Feature – Go Out
Relationships Matter

15. These will
mimic real Click to
world get menu
places 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 homepag
bill, leaving e
, Rest
Room
Feature – Go Out – Snapshot of Virtual world
Relationships Matter

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 years
Target 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. Planned product development stages
2012 2014
Build 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 Marketing
Marketing Roadmap
Relationships Matter

18. Internet Marketing
Characteristics Strategy
• Internet Users • Search Engine
• Heavy mobile users Marketing
• Social Media users • Social Media -
Twitter, Facebook, Blogs
etc.
• Video marketing
All Age Groups
Relationships Matter

19. Video Marketing
Virtual World “Go Out” “Talk to me”
Advertisements
Feature demonstration
- Videos featuring “Go - Informative video with a - Chain of advertisement
out”, covering romantic and demo of the “Talk to me” & videos to generate
funny themes “Proximate affinity” awareness
- YouTube as video & social features on YouTube - Use of Adwords to
network maximize CTR on
impressions
All Age Groups
Relationships Matter

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 registrations
All Age Groups
Relationships Matter

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
product
Age Group 18-23
Relationships Matter

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 Mobile
all”, office bearer? newsletters, offering free virtual Devices through Quizzes on
- Does he/she have a huge credits and free “talk to me” relationship & personality
following? minutes
- Make them the Brand - Organize Demo events for “Go
Ambassadors & invite them to Out” and “Proximate affinity”
social events features
Age Group 18-23 - Initiatives
Relationships Matter

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 channels
Women – Age Group 24 - 35
Relationships Matter

24. Radio Channel Television Channel Newspaper Channel
- Mass marketing strategy by - Advertisements showcasing - Sponsor articles, on success
creating “Jingles that stays on live experiences of real stories of
mind” customers RelationshipsMatter, in
- Advisory Programs - Rope in a Women Celebrity to the entertainment section of
on maintaining & developing relati advocate relationship building in popular newspapers
onships order to get over Social Stigma
- Planned in the 4th year
Women – Age Group 24 - 35
Relationships Matter

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 Marketing
Men – Age Group 24 - 35
Relationships Matter

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
websites
Men – Age Group 24 - 35
Relationships Matter

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 user
Sales Projections
User Revenue 2012 2013 2014 2015
User base 35063 939675 1888747 4218201
Paid User 2805 75174 151100 337456
Total Revenue from users INR 1,262,250 INR 67,656,600 INR 135,989,766 INR 303,710,477
Monetization Plan
Relationships Matter

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 2015
Sales Projections
Merchant revenue from Virtual World 2012 2013 2014 2015
Yearly Revenue per sponsor INR 0 INR 10,000 INR 20,000 INR 25,000
No. of sponsors per year 0 5 50 500
Revenue from Sponsors for virtual world (PER
YEAR) INR 0 INR 50,000 INR 1,000,000 INR 12,500,000
Monetization Plan
Relationships Matter

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 Projections
Merchant revenue from
Advertisement 2012 2013 2014 2015
Revenue INR 0 INR 939,675 INR 1,888,747 INR 3,500,000
Monetization Plan
Relationships Matter

30. CEO
VP VP
CFO
Marketing Engineering
Product Product
Sales R&D Operations
Marketing Development
Org Chart
Relationships Matter

31. 4.5
35 4
30 3.5
In Millions
25 3
In 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. 2012 2013 2014 2015
Sales 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 45,556,572
Total COGS INR 9,652,450 INR 30,801,320 INR 51,253,465 INR 108,113,572
Gross 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 1,251,140
Overhead INR 50,000 INR 150,000 INR 250,000 INR 500,000
NET Profit INR (20,448,200) INR (1,682,014) INR 2,664,245 INR 59,318,494
Income Statement
Relationships Matter

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. 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. Thank You