Directi Case Study Contest 2010- IIM Shillong Ajax

Directi Case Study 2010
Team: AjAx
Institute: Indian Institute of Management Shillong

Contents
Market Analysis
User Insights
STP Framework
Product Design
Marketing
Financials
Business Risks

Internet Users
 Indian Ranked 4th globally; 81 mn accessing internet
 51 mn active Internet users, inclusive of Mobile Internet Users
India – The Internet Story
Online Behaviour
 97% are regular users and 79% use daily
 Average no. of activities undertaken per person: 17
 Time spent per week: 1 - 5 hours : 39%, 5 -10 hours : 18%
 Websites visited per week: 1- 10 : 58%, 10 - 20 : 28%
 42% of the internet traffic between 4 pm to 10 pm
Sources: India Online Landscape 2009 Juxt Consult, LivemInt Research, BCG: The Internet’s New Billion
A typical Indian Internet User
A student/ salaried person in 19-35 years age group living in
an Indian Metro/ city accessing the internet for around 5
hours a day for a variety of reasons
Projected: 237 mn by 2015
Market Analysis User Insights STP Product Design Marketing Financials Business Risks
79%
21%
38%
44%
78%
30%
30%
36%
66%
49%
9%
7%
Male
Female
19-24
25-35
Urban
Metro
Student
Salaried
Workplace
Home
Mumbai
Delhi

Mobile Internet Users
 525 million mobile subscribers
 127 mn capable of accessing internet
 12 mn mobile internet users
 Only 2 mn active mobile internet users
 Projected Smartphone growth rate for next 5 years is 39%, Mobile Internet
users growing at 6% per month
 In metros, about 57% of Indian youth access Internet using their mobile phones
 70% of the total number of mobile Internet users in India are youth.
Mobile Internet Usage
Online Behaviour
 2 out of 3 access ‘daily’ and 1 in 3 uses it for more than an hour daily
 ‘Poor speed’ & ‘affordability’ are the biggest perceptual barriers in higher
adoption of mobile internet usage
 Soon after Aircel introduced pocket Internet card in May 2009, Google
saw a “50X increase in Internet usage on Google Mobile by Aircel
customers”
Projected : 182 mn in 2015
Mobile: The Future of
Internet?
With low prices of handsets
& 3G in picture, the mobile
internet is likely to
experience an exponential
growth curve in India given
that the question of
affordability is addressed.
Sources: India Online Landscape 2009 Juxt Consult, BCG: The Internet’s New Billion, Business Standard Feb 2010

User Profile for Social Networking
Social Networking - India
Young, predominately male, school &
college going
Tech savvy, forms the early majority
for adoption of social networks
9.7% of the social networking traffic
from Delhi, 6.4% from Mumbai
Top 5 sites namely facebook, orkut,
LinkedIn, YouTube, Wikipedia ensure
captive audience & repeat users
Social network users driven by an
urge to build & maintain
relationships
Sources: Livemint Research
Other Insights

3.34 million
19.87 million
20.87 million
Shifting Dynamics & Huge Growth!
Social Networking - India
Sources: July 2010, comScore
More than 33 million internet users in India visited social
networking sites, 84% of the total internet audience!
India now ranks as the seventh largest market worldwide
for social networking!
54.5% of the users visit their social networking sites everyday,
once at least
With 3.4 mn users, India is the fastest growing for LinkedIn

Some insights from users’ interviews!
Why do you use a social network!
Stay in touch, just
for fun, play
games like
farmville, try out
new stuff!
Updated on latest
news, real time,
follow companies &
news channels
Share photos,
videos, time pass,
express myself,
check various apps.

User Profiling
Need Based Profiling
Defining Attributes of the
network user
Value added to network
Information
Seekers
More concerned with informative content
like maps, places, events, updates from
friends
Scope for monetization & selling a
few ‘premier services’
Fun-on-the-
goers
Loves to play games, check applications,
share photos and keep himself busy on
mobile throughout transit
Heavy users, will bring traffic to the
site, will consume new content
Reward Seekers
Views the network as an ‘online game’ to
collect reward points and redeem later for
freebies! Mainly gamers.
Need investment to retain them,
develop value for network
Social Media
Fanatic
Is virtually on every other social network
available on the web! Registers & tries out
new sites. Downloads Beta versions!
Will act as opinion builders as they
are likely to be the innovators/ early
adopters

Competitor Profiling
Name Started
Alexa
Rank Offers Available in
Facebook Places 2010 2 Friend tagging, advertise your biz US, Canada, Aus
Foursquare 2009 555
a friend-finder, a social city guide and a game that challenges users
to experience new things, and rewards them for doing so
US cities+ some others
too
Gowalla 2009 5526
Social game + Trips; colourful interface, tells you how far away
nearby spots are, no mayorships US
Whrrl 2007 32,534
adds a FUN FACT which can be used to learn about the place,
neighbourhood and social terrain around, Sifter tool performs
keyword searches with criteria (e.g. cheap, open now, baked
goods, within 5 miles) US only
Loopt 2006 54,456
game, city reviews, photos, Meet new people with similar locations
or interests. Saves your most popular locations and choose them
rather than re-entering US only
Plazes 2004 1,00,903 nokia/ovi users; personalized recommendation system Germany, Philippines??

Competitive Positioning
Virtual Utility
Positioning envisioned for Directi
Real Utility
Dynamic Offering
Static Offering

What are current social network perceived as?
What they do not offer right now?
 The current social networks do not “make the user do much” (mostly cyber)
 They do not give any significant “challenge to perform”
 For most of the users, the social networking is “something to do in their free time”
Perception Gap Identification

“Someone creates a viral
product that grows like
crazy but location isn’t the
core feature. It just
happens to be part of the
bigger whole and as
people use it more and
more, they realize that the
location piece built into it
has become increasingly
valuable for them.”
- Paul
(Founder of Meetro, one of the
first Location Based Network)

Introducing CatchUp

Positioned as
Sporty
•Plays on the basic motivation to compete. CatchUp is a race to
be the best. It is a stress buster & action packed.
Real time – Real Utility
•It is not just the virtual world of gaming. CatchUp takes the
user out of their home to compete, collaborate, share & earn
reward.
Share, Connect & Fun
•Still retains the essence of being fun, cool to have, more of
fun-on-the-go.

Introducing CatchUp
Use of Light Blue to
communicate fun &
cool aspect
Use of orange
to signify
sportiness
Signify the real
time & real
utility aspect

Exploring The Motivations
•Status updates
•Checking crowd
pulling activities
•Exploring the
places for going
At home
• Want to have a check
list
• Want to plan the
itinerary
• To do list on the move
Just before
moving out
• Help required
• Alerts about locations
• Weather, traffic
updates
• Place reviews
On the move
• Share the information
about place, photos,
any other interesting
things
At the
destination
•Games
•Chatting:
•News about crowd pullers
A few common things
All the needs and desires of “on the move person” can be potentially meet through “CatchUp”
Value Proposition: Lets on the move
•Profile page
•Friends
•Wish list

#1 Smartphone App
• To sign up for the service, users must have internet
access either on their cell phones or PC/laptops
• Smartphone-specific apps would be made available
for free download
Means of accessing the service
For non-smartphone users
The iPhone app for
CatchUp
Once registered, user can update through
• Laptops or PCs using GPS location-validation
• SMSs charged at the network providers pre-
defined rates, using cell phone towers for
pinpointing the location

#2 The Welcome Screen
The user would be greeted with the logo and
asked to :
• Login with existing username and
password, or
• Sign up for the service
Strategies for increasing usage of the Apps
• Bundling the app with popular
smartphones like the ones by Micromax
and Maxx
• Making the app available for free on the
website
• Enabling twitter updates directly from
the app so that the app name is included
in the tweet

#3 Home
• Profile photos for easy identification and recognition
• Bio giving details of work, hobbies etc.
• Accessing information form other networks like Twitter and Google apart from phonebook
contacts
• Would show their latest updates and locations real time; also list out their reward and points
status
• Shopaholics, aged 18-30 years specially Online shoppers who like to stay updated on latest
trends can photograph an item at a store and upload it with a geo-tag, price, etc. on their
Live Streams
• Items at an Online store can be added to the list with an easy to use bookmarking tool in the
browser
• Integration with existing services like wishlist.com also enabled
User Profile
Friends
Wish lists

#4 Sharing
• Location is updated using the Check-in
tab
• Enables collecting special rewards and
points for patronizing an establishment
• Essentially a Microblogging feature that
enables rich content sharing, either
directly or through partnered service
providers
– Photos via Flickr
– Music and videos via YouTube, Blip.fm
– slides (SlideShare) or documents (Scribd)
– Links via Delicious, Digg
– Comments via Disqus
Search for nearby places
Rewards around you
Check-in
National Museum
122 MG Road
55 m away
Café Coffee Day
15 NSC Bose Road
25 m away
Mainland China
79 NSC Bose Road
90 m away
Check-In
Live Stream
Refresh
Map
Nearby
Home
Check in
Live Stream

#4.1 Live Box
• To raise and address open Queries!
• To seek for some help/clarification.
• To share local happenings with fellow catch
users.
• To come together for some purpose ( like bulk
discounts)
Objectives in Mind: WHY? Feature Design: HOW & WHAT?
• Local Live Box: To shout to catch users in a
particular location(say airport)
• Global Live Box : To shout to all catch users who
are online

Answer in Live Box = Points
• A group of friends/people who come to gather in a local area can create their own shout to talk among
themselves to avoid clutter.
• An User can local/Global shout about a crowd pulling event ( particular event/celebrity presence in an area).
Other Features
Feature Design: HOW & WHAT?
• When an User posts a query it appears in red and it costs the User some points.
• When an User answer the queries it appears in green and the User earn some points.
• When an User post about a crowd puller event in a particular locality it appears in Golden and the User
earn higher points.

#4.2 Live Wires!
• To seek help for people in case of Emergency situations like accidents, missing kid in a crowd etc.
Objectives in Mind: WHY?
• When an User Emergency shouts , the shout appears in Emergency Shout box also in local and global shout
box in dark black colour “Blinking”.
How is ‘Live Box’ prevented from entering ‘Live Wire’?
• Posting an Emergency shout costs a lot of points.
• User who are in emergency, having lesser points but want to shout, can borrow it from the central catch up
reserve and pay back later.
• The person who responds back to emergency shout with appropriate help will earn higher amount of points.

#5 Alerts
• To provide alerts regarding the place where the User is in.
• To provide alerts regarding the friends of the User.
• To provide weather updates and news feeds about the particular
locality.
• To provide guidance for travelers about a particular location
• User can set and choose the location based alerts he/she needs.
e.g. Place, Name of the person, Shops in an area, Tourist spots in an
area.
• The appropriate location based alerts will flash on the screen of the
user when the user is in particular location.

#6 Plan the Moves
• Aimed at meeting the needs of the person just before
moving out.
• To help the person plan the various trips hangouts
beforehand
Itinerary planning
• The user can plan the trips and makes it accessible
to tagged members. They can suggest
modifications, comment or also enable close friends
moves accordingly
Checklist
• This application helps the user to have a must carry
list of things, must do things before moving out.

#7 The Chat Box
• Aimed at meeting the needs of the person to talk
with friends, find new friends discuss and pass
time..
• A friend list
• Updating on the friends and their moves
• Friend suggestions based on locations, interests,
similar check-ins
• Chat conferences
• Save feature for chats

#8 Gaming
• Inherent Needs
– Egocentrism: profile upgraded at definite milestones
– Real life rewards
• Network Benefits
– Virtual praise and recognition from establishments,
other users
– Sharing with friends and giving/getting help when
needed
• Checking in at:
– Sports stadia
– Movie Theater
– Restaurants, cafes
– Shopping Malls
• Sharing:
– Photos, tips, reviews, answering queries
• Completing quests:
– Participating in treasure hunts
– Travelling around the city or the globe
Encourage participation by addressing
Earn points through

#8.1 CatchUp Miles
• To make the user login a necessity
• Incentivize the “Check-In” for the user
• Increase the “User Lock-In” over time
• The user earns CatchUp Miles on the distance travelled on a day to
day basis
• Later redeemable in form of freebies, discounts
• Bounded by a minimum and maximum per day
• Nominal Amount Only; Not the major point earner
• Have to redeemed after certain time

#8.2 Business Offers
• To incentivize “on-the-go” behaviour of the users
• Provide stimulus for a purchase
• Create Monetizing opportunities (say Promoted Live Stream)
• In Partnership with the retail chains on location basis
• Static Offers (Redemption of CatchUp Miles), Dynamic Offers (Real time, Limited Period)
• Results based on: Location History & Interests selected
• Time based offers: Shop within next 1 hour to get 5% off
• Quantity based offers: Shop for 5 jeans and get 100 CatchUP Miles!
• Loyalty Based offers: Make 100 CatchUp miles every 5 visits to CCD
• Food, Apparels, Electronics, Cosmetics, Books etc.

What the future may look like
CP, Delhi
Visit us in next half
an hour to enjoy
10% off on your
take-away!
Kathi Kabab
You have completed 5 visits
to CCD and have 50 CatchUp
Miles to spend
Café Coffe Day
PROMOTED: Visit us for
the new arrivals in the
section “Mythology”
Jain Book Store

Reward System: It’s a RACE!
• Hierarchy based reward system
• Projected with the help of four badges
• Projected as a system to CatchUp to the next level
• Instills a sense of “i-have-to-get-better” in the user
• Kept in sync with one of our positioning attribute of sporty!
Toddlr Joggr Sprintr Marathonr
I have to get better ---------->

Reward Mechanism
Reward Points Inflow
- CatchUp Miles
- Business Offers
- For “LIKED Live Box”
- “LIKED Reply Live Box”
- “Thanks to Live Wire”
Reward
Aggregator
Reward Points Outflow
- Raising “Live Wires”
- Redemption for physical /
virtual gifts
- Asking through “Live Box”

Pre-launch Campaign
Advertisement
ActivationHype
Conducted in three distinct parts:
1. Hype through digital media, tech-magazines and TV reviews,
sneak-peeks etc.
2. Consumer activation by associating with identifiable
brands, events, people
3. Set of prelaunch video ads on the internet describing
possible uses: Consumer learning
Initial Cities to be targeted for launch:
• Mumbai
• Delhi/ NCR
Based on Internet & Social Network
Usage Data (earlier slides)

Launch Campaign
Activity: City Based Treasure Hunt [Catch Me if You Can]
Objective: To create early adopters
Target Groups: College Students & Young Executives
Phase-1: On Location
- Launch events at various city colleges; Clues at 1 or 2 most visited places in the city
- Small freebies with a username/ password in Phase-1 for initial set of people (very
large number)
Phase-2: Online
- Username & password to login into a number of websites with games designed on lines of
CatchUp interface
- Ultimately, the treasure hunt leads to the website of catchup.com with attractive Prizes for
first 1000 logins

City Marathon: Post Launch
Activity: City Marathon
Objective: To generate
mass awareness & media
hype
Invitations: To CatchUp
users with open
invitation to all

Viral Marketing
Taking off from the pre-launch hype campaign, this would be a continuous
marketing effort
• The users registered during the City Marathon promotional would form the enthusiastic
opinion leaders: Word of Mouth
• They would spread awareness (Offline) about the service with the merchandise they won
• New set of “fan” videos, with potential viral effect, about the real-life uses of the service
released anonymously on the internet: Word of Mouse
• Twitter page and YouTube channel for the service would aggregate such videos and other
content (hash tags) and encourage such two way interaction
• Freebies like extra points and special member discounts at popular stores provide incentives
to join for newer consumers and must be introduced from time to time
• Periodic release of advertisements on digital media, coinciding with launches in newer cities,
with high entertainment value to continue the viral spread of service to newer clusters

Monetization Strategies
Ads on a click basis
Banner Ads & Text Ads
Context sensitive Ads based on
shouts/activities done
Classified Ads
When customers search for shops in a
particular area, the shops in the area can
advertise.
Partnering with local Businesses to market
their local promotional campaigns online.
Generating & Selling customer leads
Selling the purchase behavior & places visited by consumers which could be
used by companies for customer profiling.
Tracking Customers which is a valuable insight for the company.

Monetization Projections
Year1 Year2 Year3
Number of Mobile Internet Users in
Delhi & Mumbai( 1.92 2.61 3.55
Expected Market share estimates 0.20 0.27 0.36
Estimated no of Users( in million INR) 0.32 0.59 1.09
Value of the Network (Metclafes law)(
in million INR) 0.10 0.35 1.18
Revenue Sub heads Year1 Year2 Year3
Ads on a click basis( Million INR) 1.18 3.24 7.94
Classified Ads( Million INR) 2.00 3.03 4.59
Generate and Sell Leads 4.84 8.88 16.31
Total Revenue( Million INR) 8.02 15.16 28.84
Profit Margin ( 60%) 4.81 9.09 17.31
Initial Investment 22.00 22.00 22.00
ROI 21.86% 41.34% 78.66%
0.00 1.00 2.00 3.00 4.00 5.00
Ads on a click basis( Million INR)
Classified Ads( Million INR)
Generate and Sell Leads(Million
INR)
0
2
4
6
8
10
12
14
16
18
1 2 3
Ads on click basis (
INR Mn)
Classified Ads( INR
Mn)
Generate &Sell
leads ( INR Mn)

Initial Investments
Cost Heads INR mn
Product Development cost 9.5
Human Resource cost (3 months) 1.125
Marketing & Promotion cost 9.5
Total 20.125
Marketing sub Cost Heads INR mn
Advertising 0.7
Events 5.2
PR& Publicity 4
Social Media 0.1
Total 10
8.42%
42.11%
47.37%
2.11%
Advertising
Events
PR&Publicity
Social Media
47.20%
5.59%
47.20%
Product
Development costs
Human Resource
costs
Marketing
/Promotion costs

# Risk 1
In the presence of existing location based social networks like Four Square in
Mumbai, Can Directi really capture the Market?
If Yes How can Directi Dislodge Four Square / Existing players in the market?
Source: Strategic Management of Technological Innovation by Melissa A Schilling , Special Indian edition, Tata McGraw Hill company
Risk Mitigation Strategy
• Directi can Dislodge Four Square by offering a Service with Technology Utility and
Complementary services capability greater than Four Square.
• The Entry of Directi into the Market is planned so as to mitigate the risk.

Directi’s Entry - Components of Value
Four SquareDirecti’s entry
we envision
# Risk 2: Facebook Places
Tech Utility
Comp.
Services Tie
ups
Tech Utility
Installed
base
Comp.
Services tie
ups
Tech Utility
Installed
Base

# Risk 2
Threat of New entrants
- Smaller players
- Bigger players
Risk Mitigation Strategy:
• Strong Tie ups with Local shops, places and personnel( Complementary services).
• In case of Bigger players:
– Providing Services such that it doesn't have process/Value fit with the Bigger players1.
– he Real utility services that Catch up provide like catch up miles, Live Wire and Local Live
box which involve greater details specific to a particular place would be the services that
would have less process/Value fit with bigger players
Source: The Innovators Dilemma, Clayton . M. Christensen, HBS Publishing

# Risk 3
Privacy Issues:
i. Trust Issue of people with Strangers
ii. Misusing the location of a person
Risk Mitigation Strategy:
i. The Culture of the Network defines the trust issues involved with the
Social networking site. Innovators & early adopters will define the customs
and culture of the network
ii. All features of sharing are customized which prevents a person’s location
being broadcasted to others without his consent

Revenue Break Up
1.Ads on a click basis Year1 Year2 Year3
Avg hits every day ( Atleast 50% users log in every day considering its usage)1 0.16 0.30 0.54
Average annual hits 58.87 108.08 198.44
Percentage click on Advertisement 0.01 0.01 0.01
Number of clicks 0.29 0.81 1.98
Revenue /Click(INR) 4.00 4.00 4.00
Total Revenue 1.18 3.24 7.94
2.Classified Ads in terms of shops in a particular area
Avg no of shops in a locality ( data needed) in Mumbai & Delhi 100.00 100.00 100.00
Percentage of shops advertising 0.04 0.06 0.09
No of shops advertising 4.00 6.06 9.19
No of localities on avg ( data needed) 500.00 500.00 500.00
Revenue from each classified 1000.00 1000.00 1000.00
3.Generate & sell leads
No of Leads 0.10 0.10 0.10
Average price /lead 50.00 50.00 50.00
No of clients .lead 3.00 3.00 3.00
Revenue 4.84 8.88 16.31
Profit ( considering 60% profit margin) 4.81 9.09 17.31

Cost Break Up
Cost Cost in INR Mn
Server & Location based system 5
Tie ups with Technology / other partners 2
Developing individual products 2.5
9.5
Cost Cost in INR Mn
No of people employed 15
Avg one month salary 0.25
Total one month salary 3.75
Three months salary 11.25
Total Human Resource Cost 30.25
Product Development Costs
Human Resource cost

Total Marketing & Promotion Cost
Sub Heads Cost in INR Mn
1. Text Ads 0.1
2.Email 0.05
3.Banner Ads 0.1
4. SMS campaign 0.05
5.Multi level Marketing 0.5
Total 0.8
1.Prelaunch party 0.5
2.Events in College & Promotion thro merchandise 1
3. Trasure Hunt Event with a Big prize 1.5
4.Marathon 1
4
Advertising
1. Print media coverage 0.5
2.Local Television in the cities 0.5
3.Signing a celebrity 1.8
4.Hoardings 1
5.Online games 0.7
Total 4.5
1. On Facebook ,Twitter in the respective sites 0.2
Events
PR & Publicity
Social Media

Directi Case Study Contest 2010- IIM Shillong Ajax

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