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UNIVERSITAS INDONESIA
JIGSAW – INTERNET BUSINESS PLAN
MAKALAH NON SKRIPSI
SABRINA RAHMAN NUR SARY 1006805782
FAKULTAS EKONOMI DEPARTEMEN MANAJEMEN
DEPOK, INDONESIA AGUSTUS 2014
Jigsaw – internet…, Sabrina Rahman Nur Sary, FE UI, 2014
Jigsaw – internet…, Sabrina Rahman Nur Sary, FE UI, 2014
Jigsaw – internet…, Sabrina Rahman Nur Sary, FE UI, 2014
Jigsaw – internet…, Sabrina Rahman Nur Sary, FE UI, 2014
Jigsaw – internet…, Sabrina Rahman Nur Sary, FE UI, 2014
Department of Business and Economics
Assignment Cover Sheet
Subject Code: MKTG30009 Subject Name: Internet Marketing
Tutorial Day/Time:
Wednesday 12.00pm - 1.00pm
Tutor Name: Kenneth Lew
Assignment Name or Number: Assignment 1 - Internet Business Plan Student ID Number Student Name
1. Sabrina Rahman Nur Sary 596338
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Assignment 1: INTERNET BUSINESS PLAN
TABLE OF CONTENT 1. Abstract 4
2. Introduction
6
3. Elevator Pitch
7
4. Business Description
4.1. The Problem
8
4.2 .The Product 5. The Market
9
5.1. Target Market
12
5.2. Market Structure
13
6. The Competitors 7. Monetization Strategies
17
7.1 Revenue Model and the 4P's
18
7.2 Partnerships
22 8. Customer Acquisition Strategies
8.1. Integrated Marketing Communications
23
8.2. Marketing Communication Channels
24
9. Conclusion
30
10. References
31
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1.1 ABSTRACT
Name : Sabrina Rahman Nur Sary
Program of Study : Management (Finance and Marketing)
Title : Internet Business Plan – Jigsaw
This business plan will explore the development of a new product branded as “Jigsaw”, to be sold
over the internet. With the tagline of “Every piece of life”, Jigsaw will offer the integration of
various digital materials through a cloud-based system. Jigsaw will serve as an online journal
service, subsequently letting users to track their daily online and offline activities. With core
and augmented value offerings, Jigsaw will establish a unique selling proposition in the market,
allowing users to revisit memories from the past in a simple way.Jigsaw has strategically
segmented Gen Y and the Australia geographic region as its target market. Through the
competitive analysis, it is discovered that there are a few major competitors such as
Blogger.com, Wordpress.com, Blog.com, Tumblr, and Timehop. By using appropriate measures;;
PLC, Porter’s 5 Forces Model, and SWOT Analysis, the market attractiveness is found to be
moderate.Jigsaw's revenue model proposes several ways to generate revenue. The primary
revenue stream will be via a subscription for service. Secondary methods of generating revenue
will be included in branding, promotion, distribution and partnerships.
Keywords : Internet marketing, marketing, online application.
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1.2 ABSTRACT
Nama : Sabrina Rahman Nur Sary
Program Studi : Management (Finance and Marketing)
Judul : Internet Business Plan – Jigsaw
Dalam makalah perencanaan bisnis ini akan dijelaskan sebuah produk digital yang bernama
“Jigsaw”. Dengan slogan “Every piece of life”, Jigsaw akan menawarkan system terintegrasi
dari berbagi material digital yang didasarkan pada sistem cloud. Jigsaw akan berfungsi sebagai
jurnal online sehingga pengguna bisa melihat aktivitas mereka di dunia online dan offline.
Jigsaw dilihat mampu untuk menciptakan posisi yang unik di market, dimana produk ini
menawarkan pengguna nya untuk melihat kembali semua kegiatan masa lalu mereka di
berbagai social media. Jigsaw menargetkan Generasi Y yang tinggal di benua Australia sebagai
penggunanya. Kompetitor yang nantinya akan dihadapi adalah Blogger.com, Wordpress.com,
Blog.com, Tumblr, dan Timehop. Dengan menggunakan beberapa teori marketing (seperti
Product Life Cycle, Porter’s Five Forces Model, dan SWOT Analysis), pasar dilihat cukup
attraktif dan menarik untuk dimasuki. Sumber pendapatan utama akan didapat melalui
subscription. Sumber pendapatan lainnya akan didapatkan melalui branding, promosi,
distribusi, dan dalam bentuk kerjasama.
Kata kunci: pemasaran, pemasaran di dunia internet, aplikasi online.
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2. INTRODUCTON
Over the past decade, the media landscape has grown explosively, with social media outlets such
as online discussion forums, blogs and online communities changing the way people interact
with each other (Corley, Jourdon & Ingram, 2013). The average time spent on social media has
been increasingly high, especially the younger, tech-savvy consumers who are fast to adopt new
technologies. High-users of multiple social media network are struggling to re-account daily
events. The numerous social media platforms make the issue of managing and recording social
media complicated and timely. Jigsaw is a product which solves the issue of having to manage
multiple social media. Not only does Jigsaw help organise all social media platforms, it enables
users to instantly sync with other applications to upload photos, appointments, notes and plan
ahead.
This paper will begin by discussing the innovations of Jigsaw and the benefits that users will
experience followed by a competitive analysis on customer value potential and competitor
analysis. It will then address the revenue model with a discussion of the 4P’s (Price, Brand,
Promotion, Place), as well as potential partnerships. Lastly, this paper will analysis Jigsaw’s
customer acquisitions strategy through internet utilization to acquire and retain customers.
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3. ELEVATOR PITCH
Jigsaw provides an online journal service for people who use social networks and mobile devices
on a frequent basis. Jigsaw is a solution for people who find it difficult to track their daily online
and offline activities. The proportion of users of social media is increasing; hence the need for an
internet service that consolidates all information into one place is identified as a business
opportunity. Jigsaw offers a cloud-based service that helps keep track of personal life through
organising posts, photos from Facebook, Twitter and other apps into a single calendar day.
People are able to revive their past, by clicking on a particular day in Jigsaw and reminiscence
about memories. Jigsaw helps people piece together all their daily activities in a single location,
whilst allowing them to share their moments with close family or friends.
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4. BUSINESS DESCRIPTION
4.1 THE PROBLEM
As time passes the delicate remnants which remind us of the past, becomes more valuable and
better appreciated. Today, our life story is captured in a multitude of dimensions, such as through
the camera lens and different social media platforms. Our lives are very much shifting towards
an engulfing digital space (Visual.ly, 2013). The mobile web is becoming an extension of our
lives with its enhanced accessibility and convenience to post, share, load and search. Indeed,
technology is shaping the way we live and influencing modern social behaviour (Cameron, 2013).
The digital materials that are produced are scattered across different devices and services that
creates the problem of disaggregation. Further away from time and date, memories about certain
experiences becomes distant and blurred. Our ability to recount events, what was said and done
(online and offline) becomes a difficult task.
Jigsaw has identified a relatively untapped opportunity to satisfy a consumer’s need and want.
Inspired by the opportunity to revive the past, Jigsaw is an online service that pieces everything
together in a simple way. It collects, organises and integrates digital content through a cloud-
based system and tracks daily digital activities. It synchronises with the social media and app
tools that are widely used to ultimately create a personal journal. Jigsaw is a unique service that
helps people to relive and share the story of their lives. The Jigsaw brand establishes a unique
selling proposition and strongly embodies the mission to provide experiential value.
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4.2 THE PRODUCT
Product Profile
Product Name: Jigsaw
Product Logo:
Slogan: "Every piece of life" Product
type: Blog; online journal Web
address: www.JIGSAW.com.au
Product Description
Jigsaw's value proposition is to create an integrated web experience that is memorable and
valuable. Jigsaw is an online service that captures the history, so users can truly relive their past.
Jigsaw ingeniously collects, organises and integrates digital material into a single space. It
follows daily digital activities, by synchronising with social media and app tools to unravel loose
pieces that tell a complete story. Jigsaw pieces together posts, updates, lists, photos and more in a
fast performing cloud-based system. From day schedules and to-do-lists, to the Twitter update
about what was for breakfast and the Instagram photo of lunch; it all comes together with Jigsaw.
Jigsaw is compatible with major applications like calendar, camera and social media accounts
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including Tumblr, Instagram, Twitter, Facebook, and Linkedin. It is a personal journal, put
together in an innovative, yet simple way. The collected digital content is organised into a
chronological format and presented in a user-friendly interface. Essentially, Jigsaw presents a
virtual wall-unit, where digital materials are sorted and archived into boxes called 'Jigsaws'. A
user is able to click into a Jigsaw piece (a day in life), and discover amazing things about the past.
Users are able to view an archive by month/year and search for anything, including people, hash-
tags and posts. The brand name originated from this very brilliant idea of solving and piecing
together a puzzle.
Jigsaw's product offer unique features that provide an array of benefits (See Table 1). Jigsaw
features a sleek design layout complemented by customisation features, which allow users to
alter themes and backgrounds. Consumers are increasingly viewing products as a way to express
their individuality and hence are demanding greater customisation (Eliason, 2012).
Customisation of product permits users to take a more active role towards the concept of a
'prosumer' (Chaffey, Ellis-Chadwick, Mayer & Johnston, 2009). The website design reflects the
Jigsaw brand image. Being accessible for private use or sharing with selective few, Jigsaw
provides the perfect platform to post more personal and private matters. Share a moment of the
past and attach a personal message from the present. Users can stay connected to their inner self
and to the people closest to them. Jigsaw is a free service, where creating an account is simple.
Users can sign up with their name, email and password. The service can be accessed on the go,
with the Jigsaw app for mobile. Users can easily access their account on their phone, tablet or
computer anywhere, anytime. The additional features (i.e. augmented offerings) creates a
distinctive brand image and forms a differentiated position for Jigsaw.
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Table 1: Product Features
Key Feature Benefit
Instant Sync • Jigsaw automatically updates in the background, even without
opening the app.
Sleek design and user
interface
• Simple yet visually appealing design, that incorporates
personalisation/ customisation features.
• Consists of a virtual wall unit into which digital materials are
sorted and archived into boxes called 'Jigsaws'
• Reflects the Jigsaw brand image
Chronological layout • Organises digital content in orderly format, easy to understand
Search tool and archive • Search for anything in the archives including people, hash-
tags or look through updates and photos
Moment • Post a moment about anything and be true to yourself.
Share • Stay connected by choosing to share Jigsaw with the closest
people; family and friends.
• Share a special moment from the past and attach a personal
message from the present.
Fast performance • Dependable, fluid and speedy movement with the app and
website
Compatibility • Compatible with major devices and platforms including iPad,
iPhone, Android, Mac, Kindle Fire, Kobo, Google Chrome,
Safari, Firefox, Opera and Windows.
• Access Jigsaw on your phone, tablet or computer anywhere,
anytime.
• Fingerprint access for Iphone 5 users
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Jigsaw is a consumer service which includes key features that aims to appeal to both functional
and emotional goals. Pine and Gilmore (1999) have found that experiential marketing is an
effective tool for businesses to enhance customer patronage intentions and achieve competitive
advantage. Jigsaw strongly embodies the mission to provide experiential value. Through
manipulating consumer's internal states and perceptions, experiential values can improve
customers attitudes and behavioural intentions toward an e-business website (Shobeiri, S. 2011).
The Jigsaw brand focuses on delivering the benefit of a unique, meaningful experience to engage
and excite consumer while revisiting their past (Chaffey et al., 2009).
5. THE MARKET
5.1 TARGET MARKET (DEMOGRAPHIC/PSYCHOGRAPHIC)
Jigsaw is designed to be used by consumers rather than enterprises. Based on demographic
targeting, Jigsaw will attract Gen-Y consumers who have been active in social media and digital
technology. According to the Australian Bureau of Statistic (2009), Gen Y have birthdates from
1982 to 2000. Thus, the target market will be segmented to the age range of 13 to 31.
At its first implementation, Jigsaw will limit its user application within the Australian
geographical region. A persona of Jigsaw’s target market can be seen in Figure 1. As for
positioning in the market, Jigsaw wants to establish a position as a product performance
excellence. It focus on product customization and user-friendly interface to maximize benefits
for the customer (Chaffey et al., 2009).
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Figure 1: Persona KELLY SMITH
Background:
• University Student • Single • Active in social media
Demographics: • Age 24 • Urban
Geography: • Australia
Goals: • She wants to see remember more about her daily activities
Challenges: • Hard to compile everything that she has done in one media
How we help: • Offering a service that integrate the social media and app tools
that she uses to keep track of everything Real Quotes:
• “It has been difficult for me to track of what I’ve done online and offline”
Common objections: • “I don’t need a new application. The existing social media
already allows me to track my activities.” Marketing messaging:
• By using Jigsaw, users can effortlessly see what they have been doing in a single layout.
5.2 MARKET STRUCTURE
Market Attractiveness Analysis
To determine market attractiveness, this section of the paper will conduct a situation analysis
through the Product Life Cycle (PLC) model, Porter’s 5 Forces model and the SWOT analysis
(Reed, 2010). In the PLC model, blogs and social media are in the shifting phase from growth to
maturity stage (see Figure 2). The social network platforms has found to experience rapid
growth and high profitability (Dunne et al, 2011). The Yellow Social Media (2013) reported that
the number of online Australians who use social media daily has increased by a dramatic 9 per
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cent. However, as many competitors in the market are seeking ways to differentiate their
products, it signals a shift towards the phase of maturity in the PLC framework (Dunne et al,
2011).
Figure 2: Product Life Cycle of blogs and social media
Sourced at: http://symkt.files.wordpress.com/2012/10/plc1.gif
Using the Porter’s 5 Forces model (see Table 2), entry to the market is relatively good, with an
overall attractiveness in the moderate range.
Table 2: Porter's 5 Forces Model
Forces Descriptions Market Attractiveness
Industry competitiveness • Many competitors and market is concentrated
• Market growth is stable • Companies try to offer high
differentiation • Low exit barriers
Moderate
Buyer • Many buyers • Low switching cost • Buyers are willing to try new
innovation in the industry
High
Supplier • The creators lack in IT skills • High availability
Moderate
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New Entrants • Moderate entry cost • High differentiation • Innovation
High
Substitutes • Many competitors offer similar value • Technology still current • No switching cost. However user
might be used to use existing format of blogs etc.
Low
Total Moderate Market Analysis
The SWOT analysis shown in Table 3, further show that there are positive prospects for Jigsaw
to leverage its opportunities in this growing market.
Table 3: SWOT analysis Strengths" Weaknesses"
• Integration""of""""digital""""material""""into""""a""""single"""""space"""
• Sleek""design""""will""""offer""""emotional""""value""""to"""""attract""new""""users"""""
• Simple"""interface"""""• Ability""to""""share"""""• Fast""performance"""""• Compatibility""with""""most""""smartphones"""""• Enabling""users""""to""""track""""and""""revisit""""their"""""
past""daily""""activities"""""• Strong""promotion"""""• Online""journal""""services"""""• Provides""experiential""""value"""""• Easy""to""""sign""""up"
• Lack""in""""IT""""support""""to""""setup""""and""""maintain"""""the""algorithm"""""
• Low""brand""""awareness""""as""""a""""new""""entrants"""""• Complicated""algorithm""""that""""need""""further"""""
development" ""• Synchronization" "of""""the""""digital""""medium"""""
may""be""""a""""timely""""process"
Opportunities" Threats"
• The""increasing""""proportion""""of""""Australian"""""who""are""""using""""social""""media"""""
• Willingness""of""""target""""market""""to""""try""""new"""""innovations"""
• New""services""""to""""serve""""existing""""market""""(Market""""development)."""""
• Customers’""""""needs""""has""""not""""been""""met""""in""""the"""""market"
• Existing""competitors""""become""""more"""""innovative"""
• Existing""competitors""""have""""strong""""brand"""""image""among""""customers"""""
• Users""already""""used""""to""""existing""""formats"""""that""""are""""provided""""by""""competitors"""""
• Many""substitutes"""""• Other""new""""entrants"
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Market Size Analysis/Growth trends
Hey Tow et al. (2010) stated that many Australian share their private conversation and status on
Facebook. Allen (2010) also supports this growth trend, discovering that approximately a quarter
of Australian internet user express their ideas, identity, and statuses on the internet. In addition,
he acknowledges that the young generation is strongly connected to the internet and actively
participate in social networking through the internet. Hence, Jigsaw will have a relatively
attractive market size and offer a product that satisfies a growing consumer problem.
Bottom-up method is used to calculate the market size.
• There are 9,252,000 household Internet subscribers in Australia.
• On average, if an Australian spend an hour browsing online, he/she spend 14 minutes on
social sites (Cameron, 2013).
• According to the Australian Bureau of Statistic (2013), there are approximately 5,000,000
people who are 15-31 years old.
• The growth rate in Australian population is 1,8% in 2012.
• It is projected that there will be an 18 % increase on digital goods (including premium in
social networks) by 2015 (Fenech, 2015).
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6. THE COMPETITORS
As a new entry online business, it is necessary to do competitor benchmarking to compare the
value propositions that are offered by existing competitors (Chaffey et al., 2009). In the market,
there are a few direct competitors who are also offering similar benefits. One particular
competitor is ‘Timehop’. This iPhone application reminds users what they did in the past on
various social media platforms. Users can choose to connect the application to Facebook, Twitter,
Instagram, Flickr, Foursquare, and Dropbox Photos. Moreover, it allows users to sync pictures
from laptop, computers, and iPhone. The application will then integrate user’s social media and
photos to let users know what they were doing precisely last year (Timehop, 2013). For example, if
today is September 21st 2013, then the application will give information that are posted in
September 21st 2012 or September 21st 2011 (See Figure 3). Unlike Timehop, Jigsaw will enable
users to see their digital activities from any date that they want to see.
Figure 3: Timehop Screenshot
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Other major competitors for Jigsaw are various websites such as Blogger.com, Blog.com,
Wordpress.com and Tumblr. In Blog.com, users can customize their blogs for $15 per year
(Blog.com, 2013). Other features that are offered are blog statistics (i.e. number of views),
exclusive domain names and connecting features (i.e. media sharing). While other blogs offer
public viewing of blog articles, Jigsaw is aiming for more private usage.
As discussed in the product section, Jigsaw's unique product features and offerings is core to
creating its competitive advantage. The innovative product will be continually improved to
ensure a sustainable differentiated position. With its simple yet contemporary website design and
user-friendly interface, Jigsaw will be able to create a distinct brand image. In these offerings,
Jigsaw aims to build strong brand equity through its overriding mission to provide experiential
value.
7. MONETIZATION STRATEGY
7.1 REVENUE MODEL AND THE 4P's
Brand
According to Cox and Britain (2004), the most important strategic choice is to choose what
products and services to offer. Jigsaw is a compelling and differentiated brand that promises to
sort out and match all personal events occurring both online and offline. By sustaining a
competitive advantage through integrated business systems that are both technical and
organizational, Jigsaw is able to stay ahead of the competition (Bilkey, 2013). Jigsaw aims to
build a brand promise, which is specific and offer-based such as the cloud based system and a
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fingerprint grant access for mobile phone users. Increasing Jigsaws brand equity and awareness
will be paramount to establishing a greater customer base and thus, revenue stream.
Branding is indirect revenue that generates from data shape conversations and markets. Brand
licensing is crucial to any product or brand when entering into the market to prevent theft of
design or name. By brand licensing Jigsaw's name and logo, it will prohibit others from using the
trademark. In the long-run, Jigsaw could potentially become a market leader, thus the brand
name becomes important source of generating revenue.
Pricing
The main revenue stream will be via a subscription for service. The initial access to our website
and app will be free with a set amount of allocated storage space for each user (5GB). Once the
user has reached the storage limit, they will have to pay an additional fee for further use. See
Table 4 for rates. These prices are based on the amount of storage space you have accumulated
per month. The fees will be charged to customers via paypal, credit card or via direct debit. The
table below identifies Jigsaw’s competitors pricing. Jigsaw will be priced slightly lower than
their competitors such as, DropBox and GoogleDrive to entice customers into joining the service.
Jigsaw will be valued highly by customers since it will be their primary journal and
documentation of their entire social and personal lives. These fees are affected by the teams
working in customer service and the personnel working the security measures. The costs
associated will have a slight upwards pressure onto the pricing of subscription, due to the high
demand of customer use. Additional cost will be charged for customized backgrounds, email
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slide shows, movies, music e-books, TV shows and Photoshop. Other added costs will be
removing the advertisement pop up once you download the app onto your mobile phone or Ipad.
Table 4: Price rates
Jigsaw Dropbox Google Drive Apple's iCloud 5 GB Free
50 GB $4.99 per month
100 GB $8.99 per month
200 GB $14.99 per month
500 GB $38.20 per month
2 GB free
100 GB $8.25 per month
200 GB $16.60 per month
500 GB $41.60 per month
15 GB free
100 GB $4.99 per month
200 GB $9.99 per month
400 GB $19.99 per month
5 GB free
25 GB $3.30 per month
55 GB $8.30 per month
Sourced at: http://news.cnet.com/8301-1023_3-57592985-93/is-dropbox-cloud-storage-too-expensive/
Many costs will be associated with this service. Initial start-up costs will include paying for the
programmers who design the apps and website (refer to Table 5). They will be charged an
ongoing fee for maintaining and servicing the website and apps, ensuring they stay functional
and free of any bugs and ongoing server upkeep. Administrators will have to be hired to run the
website and customer assistance will have to be hired and available on call for customers.
Jigsaw’s revenue model will exceed the cost structure to ensure profit is generated.
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Table 5: Initial start up cost and ongoing costs
Initial Startup Costs Ongoing Costs (p.a.)
Domain name
$20 per year
Hosting
$35-350 per year and up
Hosting
$100-350 per year and up
Web design and development
60 hours and up
Contained website maintenance
$1000 a year and up
Contained website maintenance
$1000 a year and up
Marketing the website
$1000 a month and up
Marketing the website
$750 a month and up
Promotion
Word of mouth will be the main promotion strategy used to attract customers. A team will
initially scour forums for potential customers and promote this website as a solution to their
needs. In addition, a writer will be hired to blog and/or video log instructions on how to use this
interface. Promotions will run during University orientation weeks to attract early adopters.
These early adopters will then carry on the word of mouth marketing through their own social
circles. The idea is to snowball this campaign as a popular ‘it’ thing.
By using Search Engine Optimization (SEO) to increase Jigsaw’s brand awareness, it will
functionally help steer potential customers to the site, thus increase return on investment.
Additionally, Google AdWords will help expose the brand and service, as well as provide
selectivity to degree of distributing directly to our target customers. The communication is
distributed to the desired recipient, reducing waste coverage.
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Distribution
Embedding affiliate links in the website could lead to increase revenue sales. Jigsaw is able to
embed trusted affiliate links on user’s background that align with the user’s interests and hobbies.
By aligning the affiliate links to the user’s interests, it will increase behavioural intentions to
click on the link. Custom feeds could be used to generate another source of revenue through
redirecting links i.e. preferred news, sports, gossip and finances. Allowing users to personalized
their preferred newsfeed will encourage them to read the feeds more often, rather than ignore it.
Having an online journal which integrates cloud-based system, will allow consumers to access
their personal information where-ever they are in the world. Jigsaw is able to generate revenue
through users’ subscriptions and their accountability of a cloud based system. The ease of access
through different media platform provides users conveniences in accessing their account.
7.2 PARTNERSHIPS
Partnerships with leading antivirus companies such as Lumersion or Tripwire will safeguard user
information as well as protect users from online threats. By partnering with antivirus companies,
consumers are reassured that their information is well protected and will not be easily leaked
online. This will encourage consumers to use the website without the any fears of someone
accessing their information.
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Also by partnering with Paypal, consumers are able to transfer money securely without having to
provide their credit cards details. Users afraid of using their credit cards to make purchase online
may feel liberated when using Paypal.
Our product could enter the market by partnering with ZKTeco, a leading global developer and
manufacturer of security and time management solutions. ZKrwco is able to support us with
fingerprint reader which allows users to access their personal information via a mobile phone app.
This will increase the security barriers when accessing the app through mobile phones.
8. CUSTOMER ACQUISITION STRATEGY
8.1 INTEGRATED MARKETING COMMUNICATIONS
As a web service provider, Jigsaw recognises the need to strategically and skilfully capitalise
digital mediums to raise brand awareness. Brand awareness and customer acquisition are
positively correlated. The digital media advertising campaign is tailored towards the target
audience in attempts to raise recognition. This will lead to search, evaluation and ultimately,
customer acquisition. Jigsaw's value proposition is at the core of all its business strategy,
including its internet advertising activities. Jigsaw is inspired by the ambition to create an
integrated web experience that is memorable and valuable and builds its brand equity upon this
offering. Jigsaw will attempt to utilise external and internal resources to help customers realise
the benefits and value of using the product. The advertising communications will be seamlessly
coordinated to convey a consistent message about Jigsaw to maximise the impact on potential
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consumers. The digital media advertising strategies will fundamentally be consistent with the
concept of Integrated Marketing Communications (IMC).
In raising brand awareness, Jigsaw will consider the following types of digital media advertising
channels: Social media, Search engine marketing, online public relations (E-PR) and direct
marketing.
8.2 MARKETING COMMUNICATION CHANNELS
Social Media
Social media has entered a broad demographic range. According to Yellow Pages Media (2013),
the percentage of online Australians who use social media has increased 3 per cent to 65 per cent.
Jigsaw will leverage this medium, whereby creating a Facebook page or Twitter account will
help the brand to build social relationships with fans and potential consumers. There is a focus on
interaction with consumer in social media channels, which can allow Jigsaw to assert its unique
brand image and voice. These social media platforms enable users to discover more about
Jigsaw, whilst connecting and sharing opinions about Jigsaw's product/service. Today, more
Australian consumers are relying on social media to inform their purchase decisions. Jigsaw will
embrace the ability of these tools to enhance the spread of communication and positive word of
mouth, which is highly credible. Social media enhances the value proposition by offering a
forum for customers to be heard. Listening is the principal component in building trust with a
customer. Customers want to be heard, understood, and appreciated. In this regard, social media
not only allows that to happen, but at its core, it promotes and encourages listening. Social media,
when adopted makes the concept of transactional marketing obsolete.
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Search Engine Marketing (Sem) - Google Adwords.
Google Search is the most popular web search engine, ranking top on the charts with 90% of the
Australian market share (itnews, 2013). With this, Jigsaw aims to design an effective AdWords
(paid-search) campaign on Google. Google's AdWords allow display of advertisements on their
Google search pages as well as throughout their Google Display Network, through a pay-per-
click (PPC) or cost per thousand impressions (CPM) scheme (Google AdWords, 2013). With
Jigsaw's current business strategy, CPC scheme is preferred over the CPM, as clicks are better
suited to the objective of generating customer acquisition.
To design an effective AdWords campaign, it is important to adopt the consumer's mindset and
how the target audience would search for Jigsaw. Google's placement-targeted advertising allows
Jigsaw to provide contextual information; developing targeting preferences (see Table 6) and
specific keywords (see Figure 4) (Google AdWords, 2013). Apart from generalised, broad
keywords, Jigsaws keyword list will be refined to incorporate more specific, customerised terms.
High quality scores and relevancy will allow Jigsaw to increase visibility and brand awareness.
This will drive traffic to the website and motivate or attract the target audience to visit the
website and sign up to the service.
Table 6: Targeting Preferences Demographic • Location: Australia (IP address)
• Language: English
• Age: 13-31
• Gender: Male or female
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Context • Related advertisement shown based on search terms and
keywords.
• See account structure below (Table 8)
Behavioural • Direct online advertisement based on user's past click stream.
• Target users who frequently visits various social media
websites and blog sites (web-browsing behaviour)
• Identified through cookies, IP address, browsing data
Figure 4: Account Structure Example
Campaign Ad Group Keywords Ad Copy
Blog
Personal Blog
Personal blog
Private personal blog
Blog for personal use
Daily personal blog
Blog of personal history
Simple personal blog
Personal blog
Instantly sync every
piece of your life into
one digital space
www.JIGSAW.com.au
Social media blog
Daily social media blog
Social media blogging
Blog your social media
Social media blog
Instantly sync the
social media you use
into one digital space
www.JIGSAW.com.u
Jigsaw will use a variety of ad formats (such as image, text and video ads) to be strategically
displayed on relevant mainstream and niche sites across the Internet. The paid or sponsored links
will typically appear to the far right hand side of webpages, adjacent to the natural webpage
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content (Chaffey et al., 2009). This targeted approach permits more effective reach to
potential customers.
The effectiveness and cost of the Jigsaw's AdWords campaign can be measured by the Google
Analystics through tracking Click Through Rate (CTR) and conversions. Google Analytics can
provide very useful statistics for analysising visitor traffic and visitor flow to the website
(Google Analytics, 2013).
Online Public Relations
Jigsaw will undertake public relation activities to communicate brand values and strengthen the
reputation and favourability of the brand. Online public relations involves maximizing favorable
word of mouth of the Jigsaw's brand and service/website through monitoring third parties, such
as social networks, blogs, feeds, forums, news and media. Customer loyalty occurs, when
customers are satisfied and "in telling others about particularly pleasing products, they may
influence the brand perceptions of those with whom they communicate" (Richins, 1983, p. 68).
The network effect of the Internet means that effective E-PR can be powerful in spreading
messages and shaping general perceptions about Jigsaw. Jigsaw acknowledges that customer
satisfaction and trust is the determinants of positive word of mouth and customer loyalty.
Part of Jigsaws E-PR will involve managing communication with stakeholders/public and
responding to negative mentions. There will be an increased consumers awareness, through
taking appropriate action to address and solve consumer problems or suggestions. In addition,
maintaining proactive and transparent communication will allow Jigsaw to identify reliable
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recommendations to develop and improve its services. It demonstrates that jigsaw values and
listens to consumers, which can stimulate new product development ideas. Although less
controllable, E-PR is a relative cost efficient marketing strategy (Chaffey et al, 2009). E-PR is an
important advertising strategy to extend reach and awareness and influence desired consumer
decisions. This is core to achieving sustainable customer loyalty and retention.
Direct Marketing
Jigsaw can also use direct marketing as one of form of promotion. It is a concentration strategy
that will focus on the selected target audience (Rizavi, 2006). Methods that are going to be
utilized are email and mobile direct marketing. In those methods, the acquisition of new
customers can be done by referral through existing customer. A personal invitation from a
known friend signifies customer satisfaction, trust and positive word of mouth.
The process is as follows:
1. There is a feature that allows existing customers to invite their close circles.
2. Invitation can be sent through email and/or mobile phone.
• If it is sent through the existing customer’s email, he/she just needs to type in his/her
friend’s email.
• If the existing customer uses the application version of Jigsaw, he/she can send the
invitation through text messages from his/her phone. The invitation can be viewed by
the invitee in a form of notification.
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To further expand the email marketing promotion, the use of outbound email marketing will
allow Jigsaw to further promote and encourage potential customers to join Jigsaw (Chaffey et
al., 2009). It is noted that in this strategy, Jigsaw will need to develop an opt-in house list to
collect permission from these prospective customers (Chaffey et al., 2009).The particular emails
will include a dedicated email message type, which is intended for a 'Call on Action'. The plain
text email should be started with a catchy sentence, followed by a few links that lead to Jigsaw’s
landing page. The landing page will be consistent with the style guide that is already
implemented in Jigsaw's existing website. Moreover, it will be a web responsive design so the
link to the landing page can be opened and viewed in smart-phones.
Alongside this strategy, a partnership program with other businesses will allow Jigsaw to create
co-branded e-mails. By having a strong affinity links, Jigsaw can send a promotion email
through the partner’s email database. Again, to do this, the partner program should have an opt-
in agreement from its users (Chaffey et al., 2009).
In all, the mobile and email marketing now act as “brand in the hand” and thus can be effective if
it is combined with 'special' promotion campaigns (McConnell, 2004). Special promotion
campaigns are based on consumer needs something new and interesting to attract their attention.
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9. CONCLUSION
This business plan proposes a new product called Jigsaw to enter the internet industry. It is a
product that integrates various social media and other digital mediums. By using Jigsaw, users
are able to easily keep track of all the activities that occur through the digital world. Jigsaw is
available as a website and an application, which is compatible with mobile devices.
The target market for Jigsaw is Gen Y, who geographically lives in Australia. This particular
target market is selected, due to their active behaviour in various social media and their
enthusiasm for new technology innovations.
It is proposed that Jigsaw will enter the market that is moderately attractive. As the market is
shifting to a mature phase, this offers a great opportunity for Jigsaw to enter as a differentiated
service among its competitors.
As a new entrant to the market, Jigsaw needs to build a brand awareness to acquire new
customers. Jigsaw's customer acquisition strategy focuses on delivering an integrated marketing
communication. Jigsaw will mainly focus on four promotion strategies, which are social media
platforms, search engine marketing, online public relations, and direct marketing (email and
mobile).
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