BigRock.

com Launch (India)

Submitted by
David Newnes
IIM Ahmedabad, India
ESSEC MBA, France
Industry Analysis
Growth Prospects
Global domain registration industry at 181 million domains with a CAGR of 17%.
India has a current base of over 1.2 million domain names with a CAGR of 34%
Growth driven by .com and ccTLDs
There will be sufficient space for market entry
2
Competitive Scenario
Go Daddy
Software
44%
eNom
12%
Tucows
10%
Network
Solutions
8%
1&1
Internet
AG
7%
Melbourne IT
6%
Wild West
Domains
4%
PublicDomain
Registry.com
3%
Moniker
Online
Services
3%
Register.com
3% Global
NET4INDIA
39%
REDIFFMAIL
PRO
15%
INDIALINKS
14%
MANASHOST
ING
8%
ZNETINDIA
6%
INDIANETS
5%
NETTIGRITT
Y
4%
HOSTRIGHT
NOW
3%
SQUAREBR
OTHERS
3%
INDIATIMES
3% India
Consolidated Market
Global top 10 account for 67% of the market with Go Daddy holding a monopoly
In India, top 5 account for 63% if the market led by Net4India
Market leaders provide affiliated services like internet access, messengers, etc
The market doesnt stop at physical borders consumers can register domains
globally
A foothold needs to be established primarily through niche offerings
3
Consumer Segmentation
Segment Motivators Conversion Barriers
Individuals Showcase portfolio(e.g. CV) Awareness of benefits
Entrepreneurs Establish credibility Financial Capital
MSEs Facilitate business transactions Awareness, Financial , Human
Capital
SMEs Productivity Awareness, Human Capital
Educational Institutions Branding, productivity Complex purchase procedures
Big Corporates Business, branding, productivity Tied up with existing suppliers
Government Provide information to public Owns its own domain
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
-
100,000
200,000
300,000
400,000
500,000
600,000
New MSEs
New Companies(R-
Axis)
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
-
20,000
40,000
60,000
80,000
100,000
1995 2000 2005 2010
Internet Users('000)
Educational
Institutions(R-Axis)
The lower end of the spectrum can be targeted
4
Positioning
Product Appeal
Target segment decision makers under 40, with a technical background
Product needs to be youthful enough to be appealing but needs to be serious
enough make business sense
A brand personality needs to be developed clearly differentiate the product in the
consumer mind
Product needs to be simplified enough for implementation by inexperienced users
5
Marketing Strategy
Contact
Information
Awareness
Contact sessions
Targeted advertising
Brand, benefits & buzz
Three tiered roll out
Mass media: television, newspaper so that at least 50% of internet population is
accessed (40 million)
Business magazines, social networking => Sustain buzz, educate about niche
offerings and benefits
Conferences, seminars at institutions, incubators => Establish touch points with
consumer
Expand the base of the triangle
6
Marketing Tactics
Aware Visit site Study offerings Trial
Purchase
Purchase Funnel
Key to expand market share in new market is to increase awareness of benefits of
being online e.g. Tagline What have you done for your business today?
Build up awareness of the Big Rock brand, increase the credibility
Create buzz to tease audience to access website
Encourage product trials on website through customised niche offerings
Convert trial into purchase through quality of service
The key step is creating the buzz
40 20 15 5 1
7
Marketing RollOut
Awareness(TV)
Teaser advertisements:
What did you do for your business
today
yoURL
Resources: Media Agencies
8
Information(Print)
Small businesses package
SOHO package
Mypage personal package
Resources: Media Agencies
Social Networks
Youtube presence
Facebook page
User content generation(contests)
Resources: Content development
Seminars
Business impact seminar (Incubators)
Career counselling seminar (Colleges)
Resources: Thought leaders
Promotion Planning
F
u
n
n
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l

E
x
p
e
n
d
i
t
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e
Stage Conversion Ratios Funnel Width Revenue Budget Allocation Budget Ratios
Awareness 40 40,000,000 80,000,000 2
Visit 20 20,000,000 80,000,000 2
Learn 15 30,000,000 40,000,000 1
Trial 5 13,333,333
Purchase 1 8,000,000 2,000,000,000 200,000,000
M
e
d
i
a

R
O
I
Medium Per audience cost Conversion Ratio Money Spent Impressions Website visits Revenue/visitor ROI
TV 0.02 2000 1 50 0.025 6.25 625%
Newspaper 0.4 1500 1 2.5 0.001666667 0.416666667 42%
Internet(CPM) 0.0085 1250 1 117.6470588 0.094117647 23.52941176 2353%
Internet(CPC) 11 1 1 0.090909091 0.090909091 22.72727273 2273%
Metrics
Stage 1: Finalise conversion ratios
Stage 2: Finalise funnel width
Stage 3: Finalise media mix
9
Alliances and Partnerships
Strategic Partners to have onboard
Office applications development companies
Financial services companies (PayPal)
Incubators/Venture Capitalists (CIIE)
Web design companies
Job search sites (Naukri)
ISPs
10
Future Expansion
Selection done on the parameters in the table
Similar market environment of India, Indonesia
and Middle East (Turkey, Saudi, UAE)
Brazil close to strategic US centre
Country Population Internet Users Penetration User Growth
Indonesia 240,271,522 30,000,000 12.50% 1150.00%
Middle East 202,687,005 57,425,046 28.30% 1648.20%
Brazil 198,739,269 67,510,400 34.00% 1250.20%
11