Online Marketing in India April 2014
Executive Summary Market
Online marketing is experiencing a high adoption rate and is slated to grow at rate of a1% y-o-y There are predominantly a2 types of online marketing which have exclusive tools developed for their success
Drivers
Drivers & Challenges
Trends
Competitive Landscape
Challenges
– Large domestic Internet user base – Positive consumer behavior & patterns towards online media – Growing proliferation of Internet on mobile devices – Volatile economic conditions – Lateral shift from traditional advertising towards Internet marketing – Large Expatriate Population
– Lack of trust in Internet advertising – Literacy and language barriers – Shortage of skilled personnel
Advent of mobile marketing Content marketing emerges as the new buzzword Visual content slated to take new shape
Local online marketing spreads wings Online marketing evolving as new stream of study
Major Players Player A
Player B
Player C
Player D
Player E
Player F
ONLINE MARKETING IN INDIA 2014.PPT
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•Macro Economic Indicators •Introduction •Market Overview •Online Marketing Types •Online Marketing Tools •Drivers & Challenges •Trends •Competitive Landscape •Strategic Insights •Appendix ONLINE MARKETING IN INDIA 2014.PPT
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SAMPLE
Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn d1 c1 b1 a1
d2 c2 b2 a2
Q1
Q2 20-- - --
20-- - --
20-- - --
d3 c3 b3 a3
c4 b4
Q3
Q4
a4
20-- - --
Inflation Rate: Monthly % B
1.0
E
0.8 0.6
A
C
D
Oct 20-- - Nov 20--
Nov 20-- - Dec 20--
0.4 0.2 0.0 Aug 20-- - Sep 20--
Sep 20-- - Oct 20--
ONLINE MARKETING IN INDIA 2014.PPT
Dec 20-- - Jan 20-4
Internet marketing is being hailed as a powerful force that is required for businesses who opt for global expansion Online Marketing – Global Overview • As Internet has opened up a whole new world of marketing possibilities, Internet marketing has constantly been evolving with rising opportunities for visibility and growth • An increasing number of companies are allocating a considerable portion of their marketing budget for online advertising • One of the primary reasons for its fast adoption lies in ease of being able to track online advertising campaigns • Emerging markets such as Brazil, Russia, India and China are poised for economic growth and businesses are eager to penetrate these markets which requires a mastery of online marketing Online Ad Spending – Global Growth by Region
d1
e1 f1 g1
c1
b1
Region 1
Region 3
Region 5
Region 2
Region 4
Region 6
d2
e2 f2 g2
e3 g3 f3 b2
d3
c2
20--
b3
c3
20-ONLINE MARKETING IN INDIA 2014.PPT
e4 g4 f4
20--
b4
d4
c4
20-5
Online marketing is already ahead of radio and is slated to outspace outdoor advertising in the ensuing years Online Marketing – India Overview (1/2) • In India, more and more businesses are opting for online marketing as their preferred mode of marketing for their products and services • A dominant reason for its adoption is it being a cheaper and more effective way of marketing as also being a guaranteed method of advertisement • Small and midsize businesses are also using internet as a potential medium to generate more qualified leads and sales • Facebook has emerged as a display advertising solution and thereby serves as a different marketing channel
Market Size and Growth INR bn r
s
m
20--
o
n
20--
20--
q p
20--
20--
20--
Share of Online Marketing in Overall Advertising Sector 20--
• Presently, companies are ramping up their efforts in order to educate SMEs regarding the power of online advertising • A primary advantage of using online marketing lies in the fact that it helps in tracking Return on Investment (ROI) till the very last unit of money spent in marketing ONLINE MARKETING IN INDIA 2014.PPT
20-Online Marketing
x1 x2
6
A snapshot that shows how much social media marketing gets translated into ROI Social Media Marketing (3/3)
How does social media influence users help in recommen ding and eventual purchasing ?
SAMPLE
Try new things based on friends’ suggestions and then making a purchase
~c1%
Encourage friends to try new products
~c2%
Stay more in touch with the brands one likes
Share any negative experience with brands or products Do not buy certain products because one learnt of a negative customer experience
More than
c3%
~c4% ~c5%
• Continuous engagement with a brand through its social channels helps in translation into monetization and advocacy • A successful approach towards monetizing one’s social channel presence leads to measurable business benefits including collection of high-quality leads, lead conversion to sales, purchasing behavior, account retention
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SAMPLE
Search Engine Marketing 窶的ndia Snapshot (2/2) Internet Users who opt for Search Engines as the 1st step to look for a product
Purchases made online through sites that are listed on search engine result lists
y2
y4
y3 y1
Internet users depending on search engine for requirement of information
Users not finding what they are searching on Internet and going away
y6
y7
y8
y5
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Social media marketing tools help in putting forward this concept in …
SAMPLE
Social Media Marketing Tools (1/3) • Social media marketing has gradually emerged as one of the most potential platforms to promote products on an online medium • It is mostly conducted on more popular platforms in the likes of Facebook, Twitter and YouTube and managing social networking sites can be daunting This creates the need for effective tools that can ease the burden of sifting through numerous comments, questions and inquiries
• There are multifarious tools that cater to specific functions in the likes of analytics, scheduling posts and filtering through content Some forms of social media marketing materials
z1
• Google’s more than 90 mn users and 1 bn business pages have instilled interest among a lot of marketers • This interest have culminated into a need to remain visible on Google search and has rendered Google+ as a potential social media marketing tool
z2
• As a social media tool, blogs are known to support purchase processes at every step • Blogs also help in providing content that feed social media as also support search optimization
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Drivers & Challenges – Summary
SAMPLE
Drivers Large Domestic Internet base Positive consumer behavior & patterns towards online media
Challenges
Growing proliferation of Internet on mobile
Lack of trust in Internet advertising
Volatile economic conditions
Literacy and language barriers
Lateral shift from traditional advertising towards Internet marketing
Shortage of skilled professionals
Large Expatriate Population
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SAMPLE
Trends – Summary Advent of mobile marketing
Content marketing emerges as the new buzzword
` Key Trends
Visual content slated to take new shape
Local online marketing spreads wings
Online marketing evolving as new stream of study ONLINE MARKETING IN INDIA 2014.PPT
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SAMPLE
Competitive Benchmarking (1/4)
Key Ratios of Top 3 Companies – Operational Basis (FY 20--) (1/3) Operating Margin
%
Net Margin q3
10 p1
0
q1
-10 -20
q2
p2
-30 Player A
Player B
Player C
•X •X
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SAMPLE
Private: Domestic Company – Player A (1/5) Company Information Registered Address
xx
Tel No.
xx
Website
xx
Year of Incorporation
xx
Offices and Centres – India
Place
Registered Address
Products and Services Category Services
Products/Services xx
Key People Name
ONLINE MARKETING IN INDIA 2014.PPT
Designation
13
SAMPLE
Private: Domestic Company – Player A (2/5) Shareholders of the Company
Ownership Structure r1
Name
No. of Shares held
100.00%
Total
Note: Shareholding pattern as on AGM dated 29th Aug 2012
ONLINE MARKETING IN INDIA 2014.PPT
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SAMPLE
Private: Domestic Company – Player A (3/5) Financial Snapshot
Key Ratios
Total Income Net Profit/Loss
INR mn
m o
Particulars
n
INR mn 1
p
-1 -3 0 20--
y-o-y change (20-- --)
20--
20--
6.94
0.59%
-6.35%
6.79
0.48%
-6.31%
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
6.92
0.61%
-6.31%
-109.57
-14.82%
94.75%
-271.78
-52.03%
219.75%
-257.40
-37.65%
219.75%
59.43
2.85%
-56.58%
N.A.
136.25%
N.A.
Operating costs (% of Sales)
-6.94
99.41%
106.35%
Administration costs (% of Sales)
N.A.
N.A.
N.A.
Interest costs (% of Sales)
N.A.
N.A.
N.A.
16.73%
0.93
0.80
N.A.
0.17
N.A.
-14.82%
-0.65
-0.57
-42.33%
-1.86
-1.30
N.A.
N.A.
N.A.
Cost Ratios
20--
Financial Summary • Company incurred a net profit of INR - mn in FY 20--, as compared to net loss of INR - mn in FY 20--
Liquidity Ratios
• It reported total income of INR - mn in FY 20--, registering a decrease of i% over FY 20--
Leverage Ratios
• Earned an operating margin of j% in FY 20--, an increase of - percentage points over FY 20-• The company reported a debt to equity ratio of k% in FY 20--, a decrease of l% over FY 20--
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover
N.A.
230.26
N.A.
-45.98%
4.81
8.91
-44.83%
4.91
8.91
-83.95%
-63.63
-34.59
-105.06%
-30.78
-15.01
Improved
ONLINE MARKETING IN INDIA 2014.PPT
Decline
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SAMPLE
Private: Domestic Company – Player A (4/5) Key Recent Developments Description
Overview
Solutions
Miscellaneous
News • Is a full service Google authorized Internet marketing concern which works towards enhancing online presence through most effective Internet strategies • Boasts of having a rich experience in a varied array of business verticals spanning across s, t, u, v, w, x • Its plethora of services include e, f, g, h, i • Some of its clients include HDFC Bank, State Bank of India, IDBI Bank, American Express, Supertech, Vipul, Investors Clinic, Sobha and others • Boasts of having gained the trust of brands in the likes of Filmfare, UTV, Bajaj, Reliance, Campus, Galgotias University, WWF and others
• Has the vision of abiding to 3 T’s namely transparency, targeting and tracking • - is the online marketing partner of k, an online flower and gift delivery portal
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SAMPLE
Private: Domestic Company – Player A – SWOT Analysis (5/5)
• xx
• xx
S
W
O
T
• xx
• xx
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SAMPLE
Strategic Insights (1/4) Insight 1
•X •X •X •X
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