Case 1 |1 CASE DESCRIPTION Even as India is moving towards 3G, hundreds of millions of people will still be using feature

phones, SMS and voice. How do we target and cater to these users who are newly experiencing the Internet? What kind of services will differentiate us in this space? CASE SOLUTION Current Scenario in India In the calendar year 2011, feature phones accounted for 94% of the shipments in contrast to smartphones which saw a further drop in sales in the coming quarter. India Monthly Mobile Handset Shipments (millions of units) Device Type Feature Phones Smart Phones TOTAL CY 2010 160.5 6.0 166.5 CY 2011 172.2 11.2 183.4

According to a leading South Asian research firm July report, in Q1 2012, Smartphone shipments dropped by 20.5% from 3.4M to 2.7M units and the majority sales of 47.5M units were registered for Feature-phones out of a total sale of 50.2M units. This will not change significantly in the next 5 years because of complexities of the Indian mobile market which will keep adoption of the smartphones quite low and demand for the feature phones high making it a high potential target market segment. Product differentiation strategy The strategy proposal that will differentiate existing Yahoo products (product innovation not considered) from its competitors emphasizes on leveraging three fundamental principles: 1. Ease of usability Ease of usability is a prime factor when it comes to any kind of user, new or old. The beauty of something simple and easy yet effective is coming of age and Yahoo has to keep this change of trend in mind. There should be one common interface (Yahoo! Mobile can be redesigned as an example) from where the user can choose to select any product of his/her interest. The push-button interface is the most comprehensive and visually-appealing way of approach. These interface buttons should be aided by product keywords such as Y!Mail, Y!Music, Y!News, Y!Chat (Y!Messenger might not be something a new user could relate to) etc. that any user can understand and relate to. There should be a static Y!Search bar that would enable searching at any stage of operation. Also, there should be a common login portal for existing users and a one-page new user creation process to enable easy accessibility to all the offered products. However, the accounts can be further customized once the user logs in. 2. Availability Availability is the most crucial aspect of the overall strategy that has been devised and the key to determining the success/failure of it. The implementation might also require adequate financial backing for it to be realized effectively. The idea revolves around the fact that the Yahoo products must be made available to the users by default rather than the users making an effort to find them. This can be

Case 1 |2 made possible by a two-step process both implemented simultaneously although they are not interdependent. The first step is collaborating with the device manufacturers and pre-installing the Yahoo application to all the feature phones rolling out to the market in the future. Among the device manufacturers, Nokia leads the pack with a 21.8% market share followed by Samsungs 10.7% market share and Micromaxs 6.4% market share reflecting the overall shipments trend. Thus, collaborating with these two/three manufacturers ensures visibility to a majority of the users. To cater to the needs of the existing users, an easy download option available on the mobile version of websites should be present. Once downloaded, the application must direct get installed on the phone ready for use. 3. Consumer engagement On an assumption that the user has the application on his/her feature phone and registered on the network, the next challenge lies in engaging the user to an extent that Yahoo becomes a part of his/her life. To address this, a select few Yahoo products will be chosen as part of the product offering that will adequately meet the need-driven as well as interest-driven demands of people belonging to all walks of life. Following is the way the products can be distributed: Target Students Professionals Females General Number of applications 2 2 1 3 Application names Y!Music,Y!Games Y!Finance, Y!News Y!Shopping Y!Mail, Y!Sports, Y!Chat*

These products are expected to be mutually sufficient for both the new as well as existing users. A new user might not have much utility of the Y!Mail but he/she can gradually increase his/her network using Y!Chat which can prove to be an engaging product for any age-group being one of the key differentiating factor among its competitors which limits real-time communication with acquaintances. Also, a new user can gradually add contacts he/she knows in person. SMS and Voice There also lies the scope of SMS being integrated with the product offering, which would work in the lines of applications like Whatsapp but catering only to the feature phones segment rather than competing with the already established Smartphone players. The application on the users phone would indicate which of his/her contacts have any version of the application installed on their phones and let them exchange messages/calls henceforth. This implementation, if successful could provide the firstmover advantage to Yahoo in the particular segment. Alternatively, it could also collaborate with network providers like Vodafone and Tata Docomo to enable free messaging/internet calling for the users subscribed to these networks. This would encourage users who do not have an active GPRS subscription to use this as an alternative to SMS/voice calls. Since there are high costs involved in both the cases, that of development and collaboration against the expected ROI, it is pivotal to execute the strategy detailed earlier successfully so that Yahoo becomes an integral part of the lives of existing as well as new feature phone users. The SMS and voice alternatives can be taken up in the second phase of the implementation plan. *Y!Messenger renamed to Y!Chat so that a consumer can relate with the product more effectively