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DIRECTi AHOY!

“The Mercenaries”
ISB, Hyderabad
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Item 2 •Directi’s Ahoy!


Item 3 •Getting them aboard…
Item 4 •Show me the money!
Location Based Services
(LBS) Market Summary
• Gradual service evolution from serious to
“game” based applications and platforms
targeting emerging customer segments
• Social experiences are driving usage
LBS Market Forecasts
Directi in the Evolved LBS
Market
Strengths Weaknesses
S • W
•Innovation is at the core of •Platform has to be built from
Directi’s mission, vision and scratch
strategy •Access to consumer inventory is weak
•Existing network of advertisers and •Relatively unknown in the consumer
enterprises, crucial to our space: significant brand recall
proposition measures must be taken
•Good understanding of social
networking industry
•Domain knowledge in data analytics

Opportunities Threats
O T
•No Indian platform players •With 3G, mobile operators may jump
•LBS still a nascent market into the market with their own
•First mover advantage targeting 3G services
and smartphone market •This may divide the network of
•Ability to leverage the diversified enterprise accounts who are
sponsoring rewards and paying to
advertise
•Telecom operators may take greater
advantage of the 3G market
Social Media & Software
Evolution
•The location - enriched with additional
information referring to the relationships
between the physical object and the other
objects in its surrounding area.
•Social network analytics is where the basis for
monetization will emerge
•Location-enhanced services need to put the
“why” at the forefront of their user experience.
•Context will center on observing patterns,
particularly location, presence and social
interactions.


The LBS Ecosystem

• The mobile network is


as important as
the GPS if non-
smartphone users
are to be targeted

• The platform multi-
homing costs
become high as
usage increases

• The opportunity for
third party
application
developers to join
the network is
India LBS Growth Drivers

• Indian Government in 2009 mandated


cellular operators to track position
data to within 100 meters, potentially
enhancing location capabilities
• “The market for smartphones will be
more than double in two years (by
2011) as two things come together at
the same time.
– 3G services will cause an explosion in
purchase of 3G enabled devices
– Over 100 million people who bought
phones in the last three years are
likely to go for replacement of their
devices when this happens
Integration with Social
Networking Websites is Key

• Facebook and Orkut


are still the largest
amalgamators of
users in India

• Two-way integration
between the sites
would be
advantageous
Challenges to LBS Adoption -
India

• Lack of reliable GIS data : volatile


infrastructure, lack of fine grained
deterministic data
• Limited and ever changing Infrastructure
• Too many languages, location names do
not follow any convention (there is a
formal name for a place and then,
there is the commonly used name.)
• Cost / Maintenance of devices
Competitive Analysis

Challengers Leaders

Adapted from the Gartner Magic Quadrant™


F

Ability to
Execute
G G
F

Niche players Visionaries

Completeness of
vision
Directi needs a differentiated platform to disrupt the Indian market
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Item 1 •Market Overview

Item 3 •Getting them aboard…


Item 4 •Show me the money!
Check-in is boring!
• What is it that makes me take out my phone
when I visit a place?
– Do something interesting!
– Take a snap of it and share it
– Say something about it, ‘holler’ to my
friends
– Find any other friends who are around
– Can I get a discount here?
• Check-in is not enough to keep users
engaged


Directi presents…
Drop anchor… and High Five!

• Drop Anchor
– A simple check-in
• Drop Anchor… Give High 5!
– Check-in along with
your friends and
earn more points
• Holler!
– Say something about
the place, food or
just you
• Take a snap
– Take a snap and
upload
• The special Ahoy!
Challenge
– Place-specific
challenge that
earns max points
• Rewards
Cometh the application, cometh the
features
Cometh the application, cometh the
features
Applications to start the rush…
And some more…
What’s in it for Businesses

• Comprehensive
Analytics
Dashboards


• Individual & Social
Network Analysis


• Extensive Publicity
from Challenges
that leads to
greater footfalls!
The Network Effect

Same side effect

Cross side effect


Disruptive technology?
Building Social Capital

• According to principles of networking, Ahoy! and


its social check-in system will encourage
formations of groups using both self-similarity
and shared activity principle
• With a mix and match of these groups, broker
networks will arise increase the total social
capital of the network

Self-Similarity Shared Activity Principle


Principle A cross-section of people
We are inclined to pick engaged in the same activity
ties that have similar
intellectual
backgrounds, training,
Clique
and experience.
Entrepreneurial
It’s all about the P.O.D.s!

And leveraging Direct i’s


expert ise…
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Item 1 •Market Overview


Item 2 •Directi’s Ahoy!

Item 4 •Show me the money!


Launch Strategies

The Launch Game :


Ahoy! Will engage the
innovators with its ability of
being highly interactive . While
they find their way to the
treasure, it not only will help
them collude and network to
be efficient in the game but
will also expose them to all the
features in the game.

Launch Strategies

Directi will have strategic partnership ahead of the launch with


restaurants, colleges and other businesses for rewards and
facilitation of the event.
The Viral Effect
The Virus spreads…
•Using the Social Media: Linking Ahoy! to popular social media
•networks like Facebook, Orkut, Twitter – only adding to the viral

•marketing effect!


Advertising
Online Advertising via Google, Facebook and
Blogger.com
Advertising
Business Affiliations : Tie – Ups!
• Tie up with eminent shows like The Amazing Race and Second life that
enhances
•the location networking! The participants and viewers are Ahoy! Users

• Treasure hunt games in popular places like Goa, Mumbai, etc.

GOA
Advertising
Offline Advertising
The “Locations” will advertise Ahoy! via:
Hoardings outside malls, Banners in shops, Brochures for Retail
Chains, Table Tents & Ahoy! Special Menus in Restaurants.

Ahoy! Users
ask for special
discounts.
Advertising
Public Relations
We will have the local
newspapers, national
newspapers and magazines
cover the Ahoy! events and
interviews of the winners.
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Item 1 •Market Overview


Item 2 •Directi’s Ahoy!
Item 3 •Getting them aboard…
Revenue Structure - Conservative

  FY-01 FY-02 FY-03 FY-04 FY-05 Assumptions


Pay Per View            
Number of business subscribers 500 1500 2000 2500 3000  
Number of smart phone users in India 7500000 8250000 9075000 9982500 10980750 GPRS users grow by 10% YoY
Number of smart phone users in India who  2250000 2475000 2722500 2994750 3294225 30% of GPRS users subscribe to Ahoy!
Number of active users per day
subscribe 675000 742500 816750 898425 988267.5 30% of Ahoy! Users actively use the platform on a given 
Average number of ads viewed per person per             day
Total number of ads viewed/day
day 3375000 3712500 4083750 4492125 4941337.5  
Revenues/day 96187.5 105806.25 116386.875 128025.5625 140828.1188 Small Business - @INR 20/1000views
Medium Business - @ INR 50/1000 views
Revenues/annum 34627500 38090250 41899275 46089202.5 50698122.75 Large Business - @ INR 100/1000 views
360 days in a year
Analytics            
Large Businesses 25 75 100 125 150 5% of business subscribers are large businesses
Medium Businesses 75 225 300 375 450 15% of business subscribers are medium businesses
Small Businesses 400 1200 1600 2000 2400 80% of business subscribers are small businesses
Total Revenues from Analytics/month 475000 1425000 1900000 2375000 2850000 Small Business - @INR 500/mo
Medium Business - @ INR 2000/mo
Total Revenues / annum 5700000 17100000 22800000 28500000 34200000  Large Business - @ INR 5000/mo
Total INR  INR  INR  INR  INR   
4,03,27,500.00 5,51,90,250.00 6,46,99,275.00 7,45,89,202.50 8,48,98,122.75
Revenue Structure – Semi-optimistic

  FY-01 FY-02 FY-03 FY-04 FY-05 Assumptions


Pay Per View            
Number of business subscribers 1000 1500 3000 4000 4500  
Number of smart phone users in India 7500000 8250000 9075000 9982500 10980750 GPRS users grow by 10% YoY
Number of smart phone users in India who subscribe 2250000 2475000 2722500 2994750 3294225 30% of GPRS users subscribe to Ahoy!
Number of active users per day 675000 742500 816750 898425 988267.5 30% of Ahoy! Users actively use the platform on a given day
Average number of ads viewed per person per day            
Total number of ads viewed/day 3375000 3712500 4083750 4492125 4941337.5  
Revenues/day 210937.5 232031.25 255234.375 280757.8125 308833.5938 Small Business - @INR 50/1000views
Medium Business - @ INR 100/1000 views
Large Business - @ INR 150/1000 views
Revenues/annum 75937500 83531250 91884375 101072812.5 111180093.8 360 days in a year
Analytics            
Large Businesses 50 75 150 200 225 5% of business subscribers are large businesses
Medium Businesses 150 225 450 600 675 15% of business subscribers are medium businesses
Small Businesses 800 1200 2400 3200 3600 80% of business subscribers are small businesses
Total Revenues from Analytics/month 1800000 2700000 5400000 7200000 8100000 Small Business - @INR 1000/mo
Medium Business - @ INR 4000/mo
Large Business - @ INR 8000/mo
Total Revenues / annum 21600000 32400000 64800000 86400000 97200000  
Total INR 9,75,37,500.00 INR 11,59,31,250.00 INR 15,66,84,375.00 INR 18,74,72,812.50 INR 20,83,80,093.75  
Conclusion

• The location based services market in


India is still at a very nascent stage,
but has a strong potential for growth
with a projection of USB 158 million in
spending by 2014
• For first movers, this proves to be an
exclusive opportunity to build a new
disruptive innovation for the Indian
market
• We believe Directi with Ahoy! and the
domain knowledge from .pw and
Skenzo can become a force to reckon
with in this dynamic market!

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