1. MARKETING STRATEGY
OF
WEB DESIGNING
SERVICE
SUBMITTED TO: SUBMITTED BY:
Mr. SP KETKAR SHUBHADIP BISWAS
[FT-10-948]

2. EXECUTIVE SUMMARY
The Internet commerce industry in India has seen a manifold increase in the last couple of years,
with the total market size increasing from Rs 19,688 crore by the end of 2009 to an estimated Rs
31,598 crore in 2010.
By the end of 2011, the net commerce market size is expected to grow by 47 per cent and touch
Rs 46,520 crore, the study by the industry body said.
We will initially focus almost exclusively on small companies looking to develop an Internet
presence for the first time. We will market our services to small business owners as a "step-by-
step" process, initially starting out with a small, simple website, then gradually improving and
adding to the site and their entire online marketing efforts.
Although we plan to bring on many clients who simply will need an online presence and nothing
more, our most important and sought after clients will be those business owners who are ready to
implement a larger percentage of their company onto the Internet. This type of client will
traditionally need one of the following services:
 E-commerce/shopping cart.
 Database driven websites.
 Dynamic content and website features.
 Aggressive online website marketing.
With more than 930 million inhabitants, a projection of 60 million Internet users and set to grow
rapidly to the third largest Internet user base in the world, the number of Internet users
worldwide is expected to touch 2.2 billion by 2013.
In a time when the outsourcing of projects is favored, many companies and brands in India are
making a stand in the Web industry. Although Indian designers follow the web design trends of
the world, there is a relatively low demand internally. Now that communication is so easy and
uncomplicated with new and constantly improving technologies, overseas companies are
flocking to Indian creative firms. This way, they get quality work done at a lower cost, although
there has been an increase in price evaluation in recent years. Described as the paradise of
outsourcing, however, the reality is that wages are rising in India. The cost advantage for off
shoring to India used to be at least 1:6. Today, it is at best 1:3. Attrition is a frightening concept
but unavoidable. Jobs that are low value-added and easily automated will very likely disappear
within the next decade or so.
There is a lot of talk about India moving up the value chain. Some of that has indeed happened.
An industry that gained momentum is software development. Indian software developers were
tapped to help fix the ―Y2K‖ problems in old software code and the industry have blossomed

3. beautifully into one that offers a more comprehensive spectrum of services. Yet India is still the
world‘s back office. India‘s tech and web industry has an abundance of worker bees. What
customers expect or want, India will provide no questions asked.
With this boom in offshore outsourcing, India‘s software and services exports are estimated to
grow rapidly. Rates are rising quickly in all markets and the lowest rates are in Pakistan and
Ukraine. While America and India are in the middle, Europe and California are the most
expensive. In the tech world, one must really classify California as a ―country‖ on its own
separate from America. Russia is regional, while there is almost no development services
exported from Japan (low supply) and from the hyper-fast growing economies like China (too
much internal demand).
Given our experience and expertise in both commercial Web development and business-to-
business sales, we believe we can offer a unique and superior service to small business owners,
in comparison to what is currently available.
The demand and growth rate for Web development and marketing services in the small business
market is at an all time high and shows no sign of slowing anytime soon. Even more astonishing
is the fact that very few Web development companies have taken advantage of the opportunity,
as there are no dominating participants in this huge market.
We believe the reason for this virtually untapped market is due to expensive project costs, the
highest profit margins in Web development today are in servicing large- and medium-sized
corporations. We have developed a system that dramatically reduces steep project costs and
henceforth will allow us to offer the same high-end Web development services as larger
companies receive at a much lower cost to the client.
NAME OF COMPANY: WEBSAGA
Objectives
To provide customers the best quality & professional looking website which improves their
business development .
Other objectives:
1. Revenues of rs 600,000/- by month 8 .
2. Net Profit of 26% in year one and 36% in year two.
3. 65% Gross margin by month 8

4. Mission
Our mission is to provide affordable, accessible, and streamlined Internet and Web services to
small businesses. We have developed a system for offering many different types of Web
services (site development, hosting, marketing, and maintenance) that are exclusively tailored to
fit the needs and resources of small companies. Goal is to achieve high level of customer
satisfaction by delivering projects within stipulated time.
4500000
4000000
3500000
3000000
2500000 SALES
2000000 GROSS MARGIN
NET PROFIT
1500000
1000000
500000
0
YEAR 1 YEAR 2 YEAR 3
Company Location
Kolkata, West Bengal—close to our target market area--- approximately 1,700 sq. ft. capable of
housing workstations for up to 15 workers.
Services
We focus mainly on the Web, offering the following as our key 'Bread & Butter' website
services:
 Design and development.
 Marketing and analysis
 Website renovations and upgrades.
 Application development (i.e. chatrooms, message boards, online polling, live-feed
audio/video, etc.).

5.  Website maintenance training.
 Internet/website education seminars.
 Database construction.
 Result-based website marketing.
Sales Literature
We will distribute a sales folder with all the pertinent information about our company and
services. This folder includes our strong points, history, portfolio examples, and pricing packages
info. It also contains facts based on the growth and popularity of the Internet for small
businesses.
We will design website that provides information about the company, plus a variety of helpful
resources for small business owners which we will be constantly updating.
In the next six months, we plan to produce and distribute bulk mail and fax flyers promoting our
Web development and hosting services to small businesses.
We have plans to offer a more compact version of our main sales folder in a brochure format.
This brochure will be available both as a mailer to interested parties and as a sales solicitation in
area businesses.
Fulfillment
For the website design, development, marketing, analysis, and maintenance we will employ
industry professionals to handle our clients' needs. To keep employee costs low, we have
designed a "team" development system that will consist of two full-time sales people and three
full-time Web developers. Of the Web developers, one position will be filled by a highly-
qualified senior Web professional and two lesser-qualified, lower paid developers. All three will
work full-time on separate projects provided to them by the sales people. However, the senior
developer will have the duty of maintaining the same high quality level of work in the junior
developers' projects,
For the website hosting services we will form several alliances with industry leaders to provide
top-rate, reliable hosting solutions. Forming the alliances has allowed us much flexibility in
important hosting features, customizability, and it has drove costs down dramatically. All these
benefits are crucial to preserving the integrity of our company as being a 'fully-rounded Internet
solutions provider' for small businesses.

6. MARKET ATTRACTIVENESS:
MACRO LEVEL
India has revealed that India‘a E-commerce market is growing at an average rate of 70 percent
annually and has grown over 500 percent since 2007.
The current estimate of US$ 6.79 billion for year 2010 is way ahead of the market size in the
year 2007 at $1.75 billion. The following chart depicts the growth of E-commerce in India in the
last couple of years:
 websites have become a door of opportunity, and business contacts
The Internet commerce industry in India has seen a manifold increase in the last couple of years,
with the total market size increasing from Rs 19,688 crore by the end of 2009 to an estimated Rs
31,598 crore in 2010. By the end of 2011, the net commerce market size is expected to grow by
47 per cent and touch Rs 46,520 crore.
Comprising about 81 per cent of the total e-commerce in the country, the online travel market,
which includes booking rail and air tickets, hotel accommodations and tour packages, is
estimated to grow by 50 per cent and touch Rs 37,890 crore by December, 2011.

7. In the travel portfolio, which was worth Rs 14,953 crore in 2009, domestic air travel contributed
63 per cent, followed by railway tickets (28 per cent).
According to the study, around 7.4 million people in the country bought products over the
Internet in 2009.
 In India, Internet user base grew by 35 per over last year and the Internet penetration
combining broadband and mobile Internet have touched over 100 million users, which is
around 7-8 per cent of the 1.2 billion population,‖
Internet Usage and Population Statistics:
YEAR Users Population % Pen.
1998 1,400,000 1,094,870,677 0.1 %
1999 2,800,000 1,094,870,677 0.3 %
2000 5,500,000 1,094,870,677 0.5 %
2001 7,000,000 1,094,870,677 0.7 %
2002 16,500,000 1,094,870,677 1.6 %
2003 22,500,000 1,094,870,677 2.1 %
2004 39,200,000 1,094,870,677 3.6 %
2005 50,600,000 1,112,225,812 4.5 %
2006 40,000,000 1,112,225,812 3.6 %
2007 42,000,000 1,129,667,528 3.7 %
2009 81,000,000 1,156,897,766 7.0 %
2010 100,000,000 1,173,108,018 8.5 %

8.  the boom in offshore outsourcing—cost advantage 1:3
 Most of small, medium companies are not using webpage-but realizing the benefit.
 Non-users of website have no preference for known and tested brands.
 Techno-savy business scenario
 3 out of 4 Internet users are now on the net ‗daily‘.
 the post 1990s globalization and the free enterprise policies
Statistics about Internet usage considering Age Group and Gender :
 2/3rd households have ‗multiple‘ users in them
 97% are regular users and 79% use daily
 70% of people who know computer have used Internet
 19-40 years age group constitutes nearly 85% among Internet users
 85% of Internet users are male
 11% of working women, 6% non-working women and 2% housewives use Internet which
is not a very good sign
 46% of net users are graduate, 26% are post-graduate
Statistics about Internet usage considering cities :
 Mumbai has most number of Internet users nearly 3.24 million
 Delhi holds the second place with 2.66 million
 Top ten cities having most number of Internet users are Mumbai, Delhi, Banglore,
Kolkata, Chennai, Pune, Hyderabad, Surat and Nagpur.
 These 10 cities has 37% of the total numbers of Internet users in India.
Statistics about Internet usage considering browsing habits :
 94% of total users use Internet for Email purposes
 72% of total users use Internet for download music (73%) followed by Chatting (56%)
 Other major purposes for using Internet are job searching (56%), social networking
sites(54%) and finding information on search engine (52%)
 13,188,580 Facebook users on August 31/10, 1.1% penetration rate of total Internet users
 Cyber cafes account for maximum Internet usage with over 37% of all users accessing
Internet through cyber cafes
The supportive policy environment created by the Government of India has played a key
role in the rapid development of this sector. While policies have effected infrastructural
development of leading cities as IT-BPO destinations in India, additional work needs to be done
in developing tier 2/3 cities as viable IT-BPO service delivery locations.
In a globally integrated economy, outsourcing is leading to overall benefits for the source
economies, providing significant monetary and employment benefits.
The silver lining of the economic downturn is the opportunity for the industry to enhance its
overall efficiency. Companies are increasingly looking inwards and focusing on process
benchmarking, enhanced utilization of infrastructure and talent, increasing productivity and

9. greater customer engagement. Coupled with wage moderation and lower attrition, these
measures will help industry sustain its margins and invest in future growth.
The Government‘s proactive approach towards the IT-BPO industry was further highlighted in
2008 through actions such as the IT Act Amendment, extension of tax incentives by a year,
removal of the SEZ Act anomalies and the introduction of progressive telecom policies that
focus on work from home.
India is the leading country for offshore outsourcing. The offshore outsourcing industry started in
India and it has be able to grow the IT and BPO export sector to $47 billion and capture more
than half the offshore outsourcing industry. That is not to say that India does not have challenges
or is the best location for every offshore outsourcing effort, but it has an unparalleled history and
size.
The Americas and Europe are the largest customers for the Indian outsourcing industry and
account for 60 percent and 31 percent respectively of IT and BPO exports. The largest vertical
sectors are financial services (41 percent), high-tech/ telecom (20 percent), manufacturing (17
percent) and retail (8 percent). In 2009 the IT and BPO export industries employed about 2.2
million people.
IT and BPO services outsourcing first started in India in the mid 1980s. The large, English
speaking, low-cost workforce was the main attraction. The industry grew rapidly through the
1990s aided by the dot com boom and IT upgrades to prepare for potential Y2K bugs. The 2000s
saw similar growth with work moving to India in down cycles to help companies cut costs and in
boom times to capitalize on the readily available talent. cost advantage of offshore outsourcing-
1:3
The 2008-2009 global recession has had a negative impact on outsourcing growth in India, but
the sector was experiencing a turn-around in 2010. Many US and European companies are still
cautions about the speed or staying power of the 2010 economic recovery and thus are looking to
maintain a low cost base in locations such as India.
Offshore Outsourcing Model offers businesses multiple benefits in terms of Cost, Quality and
Technical Excellence. Here are some of the noticeable benefits of Offshore Outsourcing Model:
Realistic cost savings of about 40% as compared to onshore or domestic markets. (Source -
Ventoro Research Report)
Quality Product Delivery by offshore companies using their expertise, extensive domain
knowledge and implementation of Matured Execution Models in their processes. (Source:
NASSCOM)
Technical Excellence offered to clients by capitalizing on quality Human Resource, robust
infrastructure and domain related Research and Development (R&D).
Maximum time benefit by leveraging the time difference between service provider and
service requester.

10.  Reduced project cycle by implementing globally recognized Project Management
systems in their operational activities.
 Operational Flexibility by quickly adapting to changes in business requirements.
 Better finance management through clearly defined financial obligation and reduced
cost.
 Improved competitiveness since offshore companies deliver quality services at
affordable rates.
 Renewed focus on company strategic plans by outsourcing certain non-core business
operations to offshore companies.
 Exposure to new markets by making alliances with offshore companies and taking
business to unexplored areas.
The country‘s domestic market for business process outsourcing (BPO) is projected to grow over
23 per cent to touch US$ 1.4 billion in 2011, says global research group Gartner. In 2010, the
domestic BPO market was worth US$ 1.1 billion. The firm predicts that the domestic BPO
market would reach US$ 1.69 billion in 2012 and increase to US$ 2.47 billion by 2014.
With the first quarter of the new fiscal 2011-12 offering positive business outlook, hiring
sentiments for sectors like IT, ITeS and telecom have risen by over 20 per cent, says a study by
TeamLease Services Pvt. Ltd. As per the Employment Outlook Report for the period April-June
2011, released by TeamLease Services Pvt. Ltd., hiring intent from IT and ITeS was the highest
in cities like New Delhi, Mumbai, Hyderabad and Pune.
Certain crucial steps taken by the Indian government to propel the sector growth are:
 Constitution of the Technical Advisory Group for Unique Projects (TAGUP) under the
chairmanship of NandanNilekani. The Group would develop IT infrastructure in five key
areas, which includes the New Pension System (NPS) and the Goods and Services Tax
(GST)
 Setting up the National Taskforce on Information Technology and Software Development
with the objective of framing a long term National IT Policy for the country.
 Enactment of the Information Technology Act, which provides a legal framework to
facilitate electronic commerce and electronic transactions.
 Setting up of Software Technology Parks of India (STPIs) in 1991 for the promotion of
software exports from the country.There are currently 51 STPI centres where apart from
exemption from customs duty available for capital goods, there are also exemptions from
service tax, excise duty, and rebate for payment of Central Sales Tax.

11.  Plans to formulate Information Technology Investment Regions (ITIRs). These regions
would be endowed with excellent infrastructure and would reap the benefits of co-siting,
networking and greater efficiency through use of common infrastructure and support
services.
India is gaining unprecedented global popularity and more and more companies are turning to
skilled labor in India to provide web development services. Foreign clients have begun to
acknowledge the technical expertise Indians possess in this field. Apart from being technically
proficient, we also have fairly good English language skills that help us to communicate with
foreign customers. Several multi national companies have acknowledged the quality of services
they‘ve received from web development company India and more and more corporations are
coming to us with their assignments.
There are a number of reasons that go towards making India as a hub of web development
services:
1. A well qualified work force that possesses technical skills along with the know-how is a great
bonus that India offers to the world.
2. Foreign companies get the added benefit of lower operating costs as compared to other
countries like America, Canada, UK and Australia.
3. A pro-IT government which supports the growth of IT in this country and formulates policies
around it.
High quality infrastructure like satellite communications and broadband internet which helps us
to stay in touch with our customers, anytime and anywhere.
NASSCOM said that the domestic IT-BPO revenues excluding hardware are expected to have
grown at almost 16 per cent to reach US$ 17.35 billion in FY2011. Strong economic growth,
rapid advancement in technology infrastructure, increasingly competitive Indian organisations,
enhanced focus by the government and emergence of business models that help provide IT to
new customer segments are the key drivers for increased technology adoption in India.
The data centre services market in the country is forecast to grow at a compound annual growth
rate (CAGR) of 22.7 per cent between 2009 and 2011, to touch close to US$ 2.2 billion by the
end of 2011, according to research firm IDC India's report. The IDC India report stated that the
overall India data centre services market in 2009 was estimated at US$ 1.39 billion.
India will see its number of internet users triple to 237 million by 2015, from 81 million
registered in September 2010, according to a report titled 'Internet's New bn', by the Boston
Consulting Group (BCG). BCG said Internet penetration rate in India is expected to reach 19 per
cent by 2015, up from the current seven per cent.
Telecom Regulatory Authority of India (TRAI) is targeting a 10-fold increase in broadband
subscribers to 100 million by 2014. The country has 10.29 million subscribers now. "We will
have 100 million broadband subscribers by 2014," J.S. Sarma, Chairman, TRAI said at the fifth
India Digital Summit 2010 organised by the Internet and Mobile Association of India.

12. The penetration of the internet in rural areas will see an all time high in 2011. In a survey
conducted by IMRB for the Internet and Mobile Association of India (IAMAI), the total number
of active internet users in rural area will rise by 98 per cent to touch 24 million by the end of
2011 from 12.1 million in December 2010. The survey said that the claimed internet user
category is also set to grow by 96 per cent to reach 29.9 million by December 2011 from 15.2
million in December 2010. (Active users are those, who have used the internet at least once in
the past one month. Claimed internet users are those, who have used the internet sometime but
not necessarily in the past one month.)
India's technology sector is bracing for a potential slowdown in growth after the historic U.S.
credit downgrade over the weekend, which heightened fears of a double-dip recession in the
largest outsourcing market and sparked a sell-off in IT stocks Monday.
Indian technology companies earn more than 80% of their revenue from the U.S. and Europe.
Coupled with a full-blown debt crisis looming over Europe, the Standard & Poor's downgrade of
the U.S. debt rating is raising concerns of a return to the recessionary times of 2008, when the
local software industry bore the brunt of lower spending by cash-strapped clients.
The Bombay Stock Exchange technology index closed 4.3% lower Monday, leading the 1.8%
downfall in the broader Sensex.
The downgrade may lead to a slowdown in business in the immediate term,
MICRO LEVEL
India will see its number of internet users triple to 237 mn from the current 81 mn by 2015,
according to a report.
In a study titled 'Internet's New bn', the Boston Consulting Group said Brazil, Russia, India,
China and Indonesia (BRICI) will have more than 1.2 bn internet users by 2015 - well over three
times the number of internet users in Japan and the US combined.
The number of internet users worldwide is expected to touch 2.2 billion by 2013 and India is
projected to have the third largest online population during the same time
 Real estate, healthcare ,retail, manufacturing, telecommunication [vendors] and other
smes have understood importance of website and e-comerce.
 We are Ready to provide cost efficient package---domain name registration, web hosting
and development, web designing[novel and SEO friendly]and maintenance.
 We will offer round the clock customer support

13. INDUSTRY DOMAINS
MACRO AND MICRO LEVEL
MACRO
BY PORTER 5 FORCE MODEL
Intensity of rivalry
In India, .com and .net domain names reached a total of 1.037 million domain name registrations.
The total number of domain name registrations in India is estimated to be 2.15 million. These
numbers are no doubt very modest when seen in the overall context – India has 100 million
Internet users4 and nearly 26 million micro, small and medium (MSME) businesses in India.
All of these web pages are created by web designers who often have private intentions to put a
profile of them in the internet but the majority have commercial intentions. There is an
uncountable amount of agencies, self-employed or part-time web designers who all offer the
same product for privates, small companies or whole enterprises just in India. so there is a
constant entry of new competition into the market to cover the high demand of web pages.
Potential customers have a transparent market where they can choose the company they want.
They can compare prices and services very easily through the internet. Furthermore customers do
not make decisions due to barriers they have in a market outside the internet. There are neither
infrastructural obstacles nor problems to get information for them, so web designers work in an
almost perfect competition. They have very low entry barriers because the threshold resources
are only a computer and informatics knowledge. The exit barriers are low as well, because an
agency does not have many employees or expensive goods. So they have neither social
responsibility nor materialistic factors to lose. They have no core competences to distinguish
them from others in their industry.
Web designers do not have the choice to compete on price, each of them possess a very low
market share. In an atomic competition a seller would immediately lose all buyers, if he changes
the price. They cannot compete on the product, either. Although there are differences in the
quality and the way of programming a web page, the result is always the same. Every web page
uses the same standard and has almost the same buttons to standardize it for the users. There is
no space for experimental programming. Those who try to launch an innovative web page lose
users to other pages which maintain the standards. They have to compete in other ways. A
principle of the web design industry is that you have to have a well optimized web page for the
search engines like Google, Yahoo or MSN. In this environment the most important competence
is that people find your business in the search engines and that your own web page presents a
good overview of your work.
Besides they have to fight for every new customer. A lot of time is not needed to create web
pages but is needed to optimize their own one. It often takes half a working day to optimise a

14. web page for the Google results, because of the extremely high competition. More than 80
percent of the web designers do Benchmarking observing key competences like the corporate
design, the success or the strategy. An intensive discussion of established operators suggests the
possibility of efficient electronic processes to identify as a template for your own e-shop.
Although there are many competitors with very few market shares, the intensity of rivalry is a
weak force. The market is still growing and the financial risks are low.
The number of Internet users worldwide is expected to reach 2.2 billion by 2013 and India is
projected to have the third largest online population by that same time. As more users come
online in the next two years, the Internet will become an even greater force, one that businesses
cannot afford to neglect. This may perhaps provide the required impetus for more MSMEs in
India to register their domain name and build their business identities online.
Bargaining power of buyers
There are three groups of customers. The buyers of a web page could be private or business
customers. But within the group of business customers you also have to differentiate between
those who only want a company presentation on the internet and those who want a complete
online shop with thousands of products.
Non-commercial customers who want to use a web page for personal reasons like their own
biography or their wedding do not have the power to negotiate with the agencies. Normally they
have a lack of the right understanding of important technical aspects of a web page. They often
do not compare different market players and their services or prices. Nevertheless agencies
cannot charge a high price because in comparison to other online services a private web page is a
low involvement product. It is not vital for the buyers to have this product so they can cancel the
project easily, if the price rises too high. Most of the agencies say that customers can negotiate
the price, but in fact there is only a small range. Instead of a professional wedding page they
could create their own page in one of the social media portals like Facebook for uploading their
stories and photos. Another solution for them is to use a home page construction set software
which often costs less than 2000/-.
The second group contains companies which only want a portal for presenting themselves like
small factories, retailers, lawyers or associations. The product they want is more complex than
the previous. The amount of separate pages is higher, they have higher demands on the design
and the textures and their pages need regular updates. These business customers have a greater
awareness of what they want, so they compare competitors and their prices. But their bargaining
power is limited as well, because one third of the web designers have fixed prices for their

15. services and those who let you negotiate only give only small discounts. Business customers
negotiate on service. They ask for different designs or technical support. In the service sector
there are slight differences and agencies have more scope than self-employed web designers.
Companies who wish to have an online shop or other complicated internet applications where the
user interacts with the system have bargaining power. This is the high price segment and requires
a lot of informatics knowledge and experience from the agency. The involvement is high because
the customers have to have a good knowledge of what they want and need, as well as the
agency‘s needs to convince the customer with their competences. A failure in this area means a
loss of money. Agencies not only need informatics knowledge, but also marketing knowledge to
sell the products to their customers online.
In general it is said that the more complex the web page is, the more bargaining power the
customer has. There is a transparent market without switching costs and brand identity for the
customers and furthermore there is a buyer concentration in the same amount like a firm
concentration. The higher the price of the web page and the higher the internet knowledge of the
customers, the stronger is this force.
Bargaining power of suppliers
Due to increasing demand-google, yahoo, altavista etc have decreased price of web space and
maintenance—8000-8500/- for unlimited for an year.
Web designers sell virtual products, so the suppliers of them do not play a big role. In a classical
business there are needs of raw materials and supplies, but in an online business you only have
costs for office supplies, hard- and software, rent, office furniture, running costs and advertising.
None of these costs are directly related to the product, so the production of a web page only has
fixed costs (except personal costs). Most of these costs are insignificant in comparison with the
benefits of the product. Suppliers do not have any power or influence on these costs because the
ordered quantity of furniture, electricity or office supplies is as high as in private households.
The rent neither is an important factor. A web design agency is not dependent on a certain
location of its office like advertising agencies which need to be centrally located in a city in
order to be findable since the acquisition of customers mostly works online.
There are two types of important costs: On the one hand hard- and software like computers or
new programs. Prices have decreased during the last ten years and there are many different
sellers of computers. In addition to that agencies buy these things normally once every few years.
The power of suppliers is limited because the different computers are substitutes of their selves
and prices are transparent

16. On the other hand there are advertisement costs. These are the most significant costs in this
sector. Web designers have to make a great effort to spend money for advertising in order to sell
their products. The most common form of advertising for them is Google Adwords. Google is
the most important tool for companies selling online, so they set the price and it has to be
accepted. There are other possibilities to place adverts on the internet, but the whole market
adopts Google‘s prices.
Suppliers are not able to bargain with the web designers, because they do not spend enough
money on them and normally it is easy to switch. Only Google advertisements represent a strong
force. All the other suppliers are extremely weak.
Threat of new entrants
A newcomer has the same costs in producing a web site as those who are established in this
sector. As you can only decrease costs per piece slightly by using already existing templates,
economies of scale do not play a role for a web designer. The cost advantage of experienced
market players is only reflected in the existing soft- and hardware they have. The main resources
for a web page are time and knowledge and the fix costs are low, therefore the possibility to cut
costs is only given on a limited scale. For building up a new web design company there is only
little tangible capital required. Most of the required capital is intangible for instance knowledge
and experience. The knowledge is easily available in blogs and books, but the experience is
needed to put it into practice.
Another entry barrier is the brand identity which is an important factor. Customers do not have
the same brand awareness like in other businesses, but if in the e-commerce business there is a
need of a good online reputation, so you have to present references as well as evidence that you
are able to optimize a customers‘ web site in search engines. It is also a noteworthy obstacle that
web designers who stay in the business for years already have good positions in the search
engines and new entrants have to make a great effort to drive them out of these positions. The
existing companies continue improving their positions as well, so the entrants are obliged to
work much harder than the existing competition when they start up. Established firms have an
advantage in the experience they gained. They already made the mistakes which new entrants
still have to make. They have to contemplate a lot of small matters which can improve a
customer‘s web page.
An advantage for new market player is that they do not have to expect retaliations from existing
agencies. In a perfect competition the market share of each participant is so small that it is not
worth fighting for. On the contrary. In the e-commerce you can only survive if everyone creates
links to each other, thus a community was created on the internet where web designers help each
other and give hints to new ones. The more you help for free, the more clients you can acquire,

17. because you are demonstrating competence and trust.
It has become more difficult in the last two years to enter the web design industry, but nowadays
it is still possible building up your own business without great capital efforts but with a great
time and knowledge investment.
Threat of substitutes
A substitute is a product with similar features to the initial product. In this context replacements
for commercial web sites are other shops where you could buy the same product, books and
magazines as well as institutions where you can spend leisure time. Actually, the model of the
diversification steps is to amplify own product portfolio, but it is also useful to identify
substitutes.
But a web site is a relatively young product which lately has started to be a substitute for those
products. The buyer propensity of the classical shops is decreasing and even inexperienced
people have started to buy online. The turnover of e-commerce is not only increasing, but also
the possibilities of online leisure time activities. Mostly everything from everyday life can be
done online, and as a result a countermovement is emerging where people wish to have again a
same experience. But this is just a niche movement which really cannot compete with a modern
online shop.
Another substitute of a web page is the mobile internet. Technology goes on and web designers
have to keep their informatics knowledge up to date, because customers start demanding that a
web page has to be accessible with their mobile or blackberry. So future online shopping will
take place on the way. At the moment is not a real danger given that the mobile net drives the
internet out of business. It has to be seen as a complement.

18. MOBILE INTERNET GROWTH:
The last substitute worth mentioning is the social platforms where companies and privates can
present themselves without having their own web page. In the huge portals like Facebook or
Twitter they can install an interactive page with communication features. Web designers have to
convince their potential clients purchasing their own web page to meet their marketing
objectives. The social platforms are only interesting for those who go without an online shop,
hence for those who do not want to spend much money anyway. The switching costs are
enormously high because they have to change from a free product to a paid product
Conclusion
According to the model of Porter‘s five forces it is worthwhile entering web design industry.
Most of the forces are weak and even the strong ones are not impossible hurdles. In figure below
you see an overview of Porter‘s five forces in the web design industry and the changes that occur
if the complexity of the web site increases.

19. There is a great competition between the web designers, but there is also a growth which is
enough to enter the industry. But within the last five years the rivalry situation has been stronger
and the market growth lower. With technological advancements the entry barriers and the
knowledge have grown. For a professional web site today you need more than informatics
knowledge, but also a good marketing knowledge and the ability to negotiate with your
customers. With the right strategy it is still possible to make a lot of money online.
MICRO LEVEL
 Expertise over variety of platforms—php, .net, html, dhtml, ajax, flash, java etc. allows
us to develop solutions that are not tied to a specific vendor or product.
 Offering low price—20 mb space/.com domain/web hosting/web designing/logo design/2
months maintenance free --- Rs.2300/-
 Design expertise and experience on various deployment architectures
 Creative team of experts has a thorough understanding of the general culture and can deal
with different subjects and can design logos
 With professional animators in team-- quality animations at competitive prices.

20.  Employee relation and organization culture—provides value for every employees.
Employees work as a family members. For a junior executive door of Top management
remains always opened.
TEAM DOMAINS
MISSION, ASPIRATION, ABILITY TO CONNCTEDNESS
EXECUTE CSFs
PROPENSITY OF RISK ACROSS VALUE CHAIN
to provide customers the best reference building– Loyalty based programme—for existing
quality & professional looking building brand image customers
website which improves their
business development
to achieve high level of Creative design-cms web each consumer-- a partner
customer satisfaction by development
delivering projects within
stipulated time
change in technology Timely completion of Technical training to my clients
customized web page
Financial condition is weaker Proper maintenance and RSS feeds
than other big players after sales service

21. Target Market Segmentation Strategy
We will focus the majority of sales and marketing efforts toward attracting small businesses. The
reason for this decision is simply the low amount of services available for a market with such a
high demand. In addition to the very promising supply and demand ratio, it is also technically
easier and less expensive to market to and attract small website projects than larger projects.
 Demographic—type of company,[0-50 employees], revenue of company, number of
clients of my customer, computer awareness, population
 Geographic- east India[rural and urban]and foreign market[offshore outsourcing]
 Behavioral—consumer need-type of needs—for information, inclusion of shopping cart,
to make a presence, for networking, to intensify public interest, to serve customers etc.
Choice of design , up gradation of webpage, Usage of website, influence of reference ,
use of media, to increase sales
Market Needs
The need for small business Internet services has existed for several years. Small businesses and
start-up businesses alike are migrating onto the Web at an astonishing rate and making their
online presence a higher priority than in earlier years. We have noticed an enormous hole
however in the small business services that are currently available.
Without a doubt, there is a need for custom, high-end, dynamic services designed exclusively for
small businesses. At this point, the majority of our competitors are offering services tailored
around big business, to small business owners, or they are offering the exact opposite, one-
dimensional, "cookie cutter" type services.
While every small business has now recognized the need for having a presence on the Internet,
many do not know where to start, how much it will cost, or even how it will benefit their
company. It has been our experience by talking to small business owners that the decision to take
advantage of the Web is not a matter of 'if' but a matter of 'when.'
Market Trends
An important market trend right now is the one toward aggressive online and website marketing.
Although many small businesses are still waiting to gain an Internet presence, those who already
have are beginning to look for more options along the lines of improving their existing efforts.

22. We believe that in the upcoming years, small companies especially, will start to look for more
ways to increase the traffic to their websites.
Another important trend is the overall merging of daily business operations with the Internet and
World Wide Web. Just as the majority of large companies have already started to use the Web to
handle interoffice tasks, we believe that many smaller companies will begin to realize the time
and money saving advantages to this strategy.
Market Growth
Our target market is growing and expanding toward Internet and Web usage at an astonishing
rate.
Service Business Analysis
Web services and development companies vary greatly in the type of service they offer and the
type of client they attract. We will be relatively unique in the fact that we are marketing
exclusively to small businesses.
This industry consists of many small Web development firms usually less than 10 years old that
generally start out offering services to smaller companies but with long-term goals of catering to
large, corporate Web accounts.
COMPETITORS
Main competitors of us are Miracle studios, lnsel, India designers, dimension india, Agts india,
XigmaPro, web design company, mail mantra, century website, 32 bytes, brand mantra, ai future,
websys, glosoft india, adisol, webkriti, Calcutta webdevelopoers, Taragana INC, websoft etc.
WHAT COMPETITORS ARE OFFERING
1.Digital fusion:
 Web site designing/portal management/E-commerce solutions
 Banners
 Logo Design
 Email News Letter

23.  Corporate Presentations
 Web Hosting-linux and windows
 SEO/SEM

2.LNSEL:
Web Designing Services:
- Static Web Design (Table & Div Based)
- Website Maintenance & Re-designing.
- Flash based Web Design.
- Blog Customization.
- Cross Browser Web 2.0 based Web Design.
- W3C Validated Web Design.
- Web Design for Small Business Enterprise.
- Website Template Design
- Logo & Brochure Designing
Web Application Development:
- Portal Development
- Content Management Systems (CMS) Development.
- Community Portals
- Custom Shopping Cart
- Payment Gateways
- Database Solutions
- Ecommerce Development
- E-Market Portal
- Enterprise Portals
- Cgi /Asp Script Installation
Search Engine Optimization:
- Organic Search Engine Optimization (SEO).
- Pay-Per-Click (PPC) Consulting.
- Google Sponsored Link Consulting.
- Search Engine Marketing (SEM).
- Email Marketing.
- Article & Directory Submission.
- Link Building.

24. - SEO Consulting.
- SEO Copy writing.
- Website Tracking Reports & Analysis.
Web Hosting & Domain Name Registration:
- Windows Hosting with POP3 e-mails Id.
- Preinstalled ASP.net & Ajax.
- Preinstalled CDO Mailer Component.
- Mssql Database Support.
- Catch-all Account, Anti Spam Filter & Email Forwarding Services
- Database Solutions
- 24/7 Server Monitoring Support.
- Email Hosting.
- Domain Registration for .com, .net, .org, .in, .info, .co.in, .biz, .net.in, .org.in.
- Full user friendly Domain & Hosting Control Panel with DNS details
3.INDIA DESIGNERS:
 Custom Web Design
 Tableless Div Based Design
 PSD 2 XHTML Conversion
 Web 2.0 Based Design
 Industry Based Design
 Website Re Design
 Web Design Portfolio
 Web Design Packages
 Client Testimonials
 Graphic Designing, Logo Designing, Web Development, SEO Services, E-commerce
Development, Multimedia, Content Writing, Web Hosting

25. 4. MIRACLE STUDIOS:
 Website Development
 Website Designing
 Brand Development
 Flash Development
 3D Modeling and Animation
 Reputation Management
 Mobile Application
 Search Engine Marketing
Market Segmentation
We will focus the majority of sales and marketing efforts toward attracting small businesses.
following types of businesses are excellent prospective clients:
Retailers- Grocery Stores
Real Estate Farms
Medicine Shops
Clubs
Jewelers
Theaters
Night Clubs
Travel Agencies
Law Firms
Religious Organizations
Restaurants

26. 500
450
400
350
300
250
Size of retail
200 industry in
billlion $
150
100
50
0
06-07 07-08 08-09 09-10
YEAR
Indian retail sector
Market size USD 350 billion
Organisedretail penetration 5 –8 %
Unorganisedretail market 12 million kiranas
Growth rate 15 –20%
Estimated investment by USD 412 billion
2011
Retail density 6%

27. The real estate sector in India is on a growth path. The development in the real estate market
encompasses growth in both commercial and residential spheres. Further, it has been estimated
that there would be shortage of 26.53 million houses during the Eleventh Five Year Plan (2007-
12), which provides a big investment opportunity, according to a report by the Technical Group
on Estimation of Housing Shortage.
The above figure clearly states that the online travel industry accounted for 80% of the total e-
commerce market in India in 2010. Although skewed since 2007, the non-travel industry is
slowly capturing the market share percent by percent. The study states that e-Tailing is one the
primary growth drivers and will remain so in the near future too.
The growth in the e-commerce sales is a clear indicator of the growing number of people using
Internet to make purchases. But again, the online purchases are limited to a certain category of
buying like travel purchases, electronic items, online classifieds, buying movie tickets, food
delivery, gaming subscriptions, etc
According to the Bureau of Labor Statistics, healthcare was the second largest industry in 2008-
employing a staggering 14.3 million workers. By 2018, healthcare is expected to be the largest
industry in the nation and with an anticipated 22% growth rate
So we should focus on small enterprises of real-estate, travel agency, healthcare and of other
lucrative market segment.

28. Our target market is separated into the four surrounding states listed below:
We have chosen our target market from 4 perspective:
1.Distance from our office
2.Literacy rate---which has direct link with computer awareness
3.Population
4.Growth
Financial Year 2010
Indian Per-
Population Rupee %age of capita
State (2011) in 000 (Ten US Dollar Total Income
Rank State/Union Territory Region Million) (Billion) GDP (INR)
6 West Bengal East 91,348 400,561 $84.57 6.43% 41,469
13 Bihar East 103,804 168,603 $35.60 2.71% 16,119
14 Orissa East 41,947 162,327 $34.27 2.61% 33,226
16 Jharkhand East 32,966 106,358 $22.46 1.71% 30,719
Literacy Rate In Indian State: Census 2011
State Literacy rate Literacy Literacy
(2011 rate-Male rate-Female
Census) (2011 (2011
Census) Census)
Bihar 63.8% 73.5% 53.3%
Jharkhand 67.6% 78.5% 56.2%
Orissa 73.5% 82.4% 64.4%
West Bengal 77.1% 82.7% 71.2%

29. SEGMENT ATTRACTIVENESS EVALUATION MATRIX
SEGMENT WEIGHT SEGMENT1 SEGMENT2 SEGMENT3 SEGMENT4
ATTRACTIVENESS WEST BENGAL ORISSA BIHAR JHARKHAND
FACTOR SCORE TOTAL SCORE TOTAL SCORE TOTAL SCORE TOTAL
EDUCATION AND 15 6 .9 5 .75 3 .45 4 .6
AWARENESS
ECONOMICAL 25 6 1.5 5 1.25 4 1.00 4.5 1.125
POWER
COMPETITIVE 15 5 .75 5 .75 6 .9 6 .9
INTENSITY
GROWTH 25 7 1.75 6 1.5 3 .75 5 1.25
4.9 4.25 3.1 3.875
Jharkhand: 8% of our target area.
West Bengal : Our office is located here.- 50% of our target area-among 4 states it has highest
literacy and highest per capita income.
Bihar : 14% of our target area.
Orissa : 28% of our target area. It comes second from the perspective of per capita income and
literacy rate both.
Our business allows us to offer services to small companies, no matter their geographical
location, and we plan to do so, eventually expanding outside our immediate area. The above
areas are where we will market most heavily and expect to receive the majority of our work. We
do expect to receive a small portion from outside this target area due to ad placement.
Strategy and Implementation:
We will market ourselves as an Internet and Web services organization devoted to offering high-
end services to small businesses exclusively. Our target customer will be the owners of any small
or home-based company who are looking to implement their business into the Web.

30. Competitive Edge
We have a valuable competitive edge over our local competitors based on the fact that we have
streamlined all our services into the small business market. Through setting up several strategic
partnerships with various Internet and Web-related companies, we will be able to offer our
clients an affordable and efficient proprietary Web package that will meet all their related needs.
Marketing Strategy
As the number of internet users are growing in a rapid pace. website designing, hosting industry
is also growing.
Revenue from web designing Industry (in USD Million)
INDUSTRY 2008 2012
Custom Content Development 256 542
Multimedia / Web Design
Introductory Growth Maturity
Decline Stage
Stage Stage Stage
2011 Total
Market
Sales
1995
Time
Market is in growth phase . And our company is a challenger.
From the service point of view we will adopt service differentiation strategy by offering creative,
dynamic webpage --

31. We will follow guerilla attack marketing strategy because we are operating in limited
geographic areas and our prospects are small /medium enterprises—niche marketing strategy.
Our firm has limited marketing, R&D and competencies.
Successful marketing of Web services to small business owners depends on how you approach
and follow-up every potential client. It is very important to deliver our marketing pitch in a clear,
no non-sense method. Details of the Internet and Web are still relatively unknown by many small
business owners, giving it the tendency to confuse and intimidate easily.
Marketing Programs for promotions:
We plan on doing a large scale marketing project including :
 Radio advertising (red fm, radio mirchi, power fm).
 Ad placement in local trade publications .
 Billboard Ads to promote wide-spread name recognition.
Service and Pricing Strategy
For most small business owners, cost, both residual and one-time are huge influences on the
decisions they make regarding everyday operations of their company. Even though we offer
100% customized services and our pricing is based on an hourly fee, to make it easier and less
confusing for the clients, we have established a packaged pricing system.
 Budget Domain Website Package (2300/-): For simple, information based websites.
Popular with companies who just need to gain an Internet presence.
 Mid-Level Website Package (3000/-): Information based websites with a large amount
of content. Popular with companies that have a large services/products list and/or want to
implement more of their business into the Web.
 Catalog Website Package (4000/-): Usually reserved for product-oriented websites that
are e-commerce enabled. Popular with companies that have a desire to market heavily on
the Internet or sell their products/services directly from the Web.

32.  Website Hosting (free for first 2 months then 500/- per year ): Depending on the type
and size of the website, the price for hosting can vary greatly. The average cost of hosting
for most clients is 500/- per year.
 Website Maintenance (500/-): If a client feels as though they will need their website
updated or maintained on a regular basis, packages are available at a discount rate.
Positioning Strategy
Symbolic and Operational positioning:
 Service differentiation----dynamic and CMS web development and creative web
designing in a cost efficient package---PRICE QUALITY APPROACH
 Online free trial and providing customized service—superior after sales service---
CUSTOMERS BENEFIT APPROACH
Brand positioning:
Our target client is part of a very specific demographic, for this reason, we market and promote
our services in a direct and specifically targeted manner.
Print Ads:
 We will advertise in eight separate area yellow page directories. All our ads will appear
under either the Internet Services or Website Design headings.
 We will enlist company‘s name in a national business directory under the heading of Web
Developers.
 In the near future we will feature ads in several area business
Direct Mail and Fax:
 We will send out targeted bulk mail flyers promoting special offerings by our company.
 In the near future we will begin a new aggressive, ongoing bulk mail campaign to
promote our Web development and hosting services.

33. Online free trial :
we will provide online free trial for our clients for promotion.
Social media marketing:
We will use social networking sites to place our advertisement.
Showcasing few case studies:
Showcasing few case studies of firms that have found website being effective in improving their
processes—it will help to catch prospects
Peer reference:
Still people are not fully aware about benefit of website in Indian scenario, Word of mouth/peer
references can be highly effective marketing techniques.
Mass Media Ads:
 We will begin advertising on a broader scale within the next six months. Radio spots will
be continuously played during local area talk shows and news programs, this placement is
intended to reach the highest percentage of our target client possible.
 Billboard ad placement will be the second mass media marketing campaign we will
implement into our marketing efforts. Billboard ads will be intended as 'name
recognition' advertising.
Educational Seminars:
 Plan to conduct Internet and Web-related educational seminars on a variety of topic. In
the near future, we will promote our services through these seminars.
Local Area Commerce Groups:
 To promote our services and our name as a participant in the Web services industry, we
will be joining many of the local area Chamber of Commerce groups and various other
strategic partnership clubs.

34. Strategic Alliances
Currently, we do not participate in any co-marketing or co-development efforts with outside
companies. However, we have specific plans to establish several strategic partnership programs
with area ISPs (Internet Service Providers) and computer consulting companies. These
partnerships are intended to attract more sub-contracting work from potential competitors, in
exchange for a commission to be paid for each lead and resulting new client.
CONCLUSION
Given our experience and expertise in both commercial Web development and business-to-
business sales, we believe we can offer a unique and superior service to small business owners,
in comparison to what is currently available.
The demand and growth rate for Web development and marketing services in the small business
market is at an all time high and shows no sign of slowing anytime soon. Even more astonishing
is the fact that very few Web development companies have taken advantage of the opportunity,
as there are no dominating participants in this huge market.
We believe the reason for this virtually untapped market is due to expensive project costs, the
highest profit margins in Web development today are in servicing large- and medium-sized
corporations. We have developed a system that dramatically reduces steep project costs and
henceforth will allow us to offer the same high-end Web development services as larger
companies receive at a much lower cost to the client.

35. BIBLIOGRAPHY
1. censusindia.gov.in/
2. economictimes.indiatimes.com/
3. Internet in India in a hyper growth phase | Reuters
4. http://www.mapsofindia.com/
5. http://www.marketresearch.com/
6. http://www.researchandmarkets.com/
7. E-riches 2.0: next-generation marketing strategies for making millions online By
Scott C. Fox
8. Internet Marketing: Strategy, Implementation And Practice, 3/E -By Chaffey,
Chaffey
9. Marketing Planning by Design: Systematic Planning for Successful Marketing
...By Ralf E. Strauss