localclassified.

com
SAY IT, SELL IT, BUY IT
PART 1
 FEATURES
User Acquisition
• Apps to increase mobile customers
• Specific targeting through filtering category and
demographics
• Customized alert option through mails

User Engagement Or Retention

• Personalized e-mails, Follow up mails
• User engagement through informational and educational blogs
• Develop a database showing cost -benefit analysis to customers
on subsequent usage in their profiles and show comparison
with other online payers.
Features –
Monetization
• Premium plans for users
 Escrow Service
 Social Media marketing
 Spotlight Ads
 Pinned to top ads
• Intercity door to door delivery

Rationale for selecting Monetization as highest

v a l u e fe a t u r e –
• Increase revenue from existing user base
• Extra budget for expanding the business services

Under Monetization we have selected the feature of introducing

Premium Plans.
Va l u e P r o p o s i t i o n

For Our Website

• Additional sources of income
• The unique features added will give the website a competitive
edge in the market

For Our Users

• Enhanced trust and security
• Option to reach out to a wider population and have greater
options
• Increased value for money
• Increased ad effectiveness

G o al
As a new entrant in the market, local classified aims at
establishing its name which will ultimately lead to increase in
revenue
Premium plans for users
1. Escrow Service:
• Service for deals involving transaction amount >= Rs 1000 .
• Paid service - charge 4% of the amount as transaction fee.
• This will provide a security measure against charge backs and frauds.
• This will hugely boost the confidence of both the parties involved
and will help in building their trust and the company's reputation

S u c c e s s M e t r i c : number of transactions which used escrow

services / total number of transactions >= Rs.1000

N e g a t i v e : cost of operating and maintaining escrow accounts.

C o n t i n g e n c y P l a n : The escrow account operations and

maintenance will have their own operating costs but it is not expected
to be more than what the escrow service fee will cover (also while
leaving some surplus profit)
 Prospective buyer interested in product units for
inspection

Was he
satisfied?

YES NO
Notifies site which releases
payment so seller
Deal Finalised STOP OR
Buyer returns product &
notifies seller which gives
refund from escrow back to
Buyer pays amount so him
escrow seller, notified
to ship product

YES
Buyer Performs Final Was he
Check satisfied?
NO
2. Spotlight Ads :

These are the ads that will be shown in the spotlight section of the website and
will be highlighted on the ad search results pages that would make the ad
standout and grab attention of more viewers than an ordinary ad.

Success Metric :
 Lead generation rate = Number of leads or prospects generated / number of
days since the ad was posted
 Lead generation rate of spotlight ads / lead generation of free ads.

Negative : Very little cost of implementation of the feature in the website

Contingency Plan :
This feature will have little cost of implementation but will add a whole new
variety of attention grabbing ads on the website.
Though not an expensive feature for end users, it will benefit all types of users
and is available for all ad types.
The features' cost is expected to easily cover for all of its one time development
or implementation fee.
3. Pinned to top ads:
These ads will grab users attention by staying at the top(among top 3 spots) of
the ad search results pages in their category in their city for 3 days.
This feature will boost the initial lead generation rate of the ad and will partially
help in closing the deal early.

Success Metric :
 Lead generation rate = Number of leads or prospects generated during the
first 3 days after the ad gets posted
 Lead generation rate of spotlight ads during first 3 days / lead generation of
free ads during their first 3 days.

N e g a t i v e : Cost of implementation

Contingency Plan :
 This feature will require some cost of implementation but will add a whole
new option increasing the ads effectiveness.
 Though not an expensive feature for end users, it will benefit all types of
users and is available for all ad types.
 The features' cost is expected to easily cover for all of its one time
development or implementation fee
 PART 2
Some of the new Revenue streams for local classified can be:
1. Expanding reach by introducing new mobile app.
2. Expanding the line of business by providing sales and mediation assistance like a mechanic for
car and bike sales, property dealer/broker for real estate deals, repair man or technician
services for appliances sale, etc.
3. Broadcast Feature: Introducing new Social media marketing option for high end deals like big
real estate deals.

Rationale for selecting revenue stream - Since the market has currently large players like olx and quickr,
it is difficult to implement first two options as they require a huge amount of investment. Hence we will
proceed with the third option which serves a dual purpose of marketing the customer’s add and
increasing the popularity and reach of local classified on social media through the app.

Broadcast feature - Introducing new Social Media Marketing feature on website (Shown in the
Mockup). Customers who want quick and more responses can
use this new feature by paying a fee (Rs 300) or for free with less
features. This method will dramatically increase the reach of
high ticket ad that will not only attract a larger number of
prospective buyers, but will also increase the internet traffic
coming from the social media to our website (which is an added
bonus as it can also increase our customer acquisition indirectly).

Methodology : Digital marketing team will plan marketing

campaign or the ad according to a budget that will depend upon
the customer opting for paid feature or free service. This means
that if the customer opts for paid feature, than a rigorous online
campaign involving paid marketing channels will be planned.
Otherwise, free marketing channels will be used.

Revenue estimation model for the proposed revenue stream:

We have 2 sources of revenue

Revenue From Source 1 Revenue From Source 2

Increase in revenue generated from the ads on
website due to increased publicity and internet
traffic coming from social media to our website
 The Website Advertising potential revenue we
are talking about is on a Cost Per Click basis –
also known as CPC.
 Equation for estimating total revenue from
ads:
Yearly page views * Percentage of internet traffic
coming due to new feature * Click through rate *
average revenue per click
Revenue generated from the fee charged for the
broadcast service
 Equation for calculating revenue from
customers who applied for paid broadcast
feature:
Yearly Page views * Percentage of unique visitors
(n% of page views) * Percentage of customers
actually posting ads on website * Percentage of
customers opting for paid broadcast feature * Rate
charged per add

Marketing Framework Used: RACE (Reach, Act, Convert, Engage)

We have used a simple marketing framework which is very popular and effective for digital marketing.

1. Reach – We have focused on expanding our business and revenue by employing rigorous
advertising and promotion techniques in order to increase our reach.
 2. Act - Act is short for Interact. It's a separate stage since encouraging interactions on websites
and in social media to generate leads is a big challenge for online marketers. We have
introduced the broadcast feature to provide greater benefits to customer.
3. Convert - This is conversion to sale. We have involved both paid and unpaid broadcast feature
so that customers can first try the unpaid version and then shift to the paid version after
knowing and experiencing the benefits from the unpaid version.
4. Engage – Finally we believe that long term customer loyalty will be established as a result of
introducing these new features.

Breaking each Variable Down

o Yearly page views – We have taken a very conservative approach by assuming a value that is 1% of
the Yearly page views value of OLX which is one of the top performers. We have taken this
percentage keeping in mind the fact that we are a new entrant in the market.
o Percentage of internet traffic coming due to new feature – Since ours is a new website, most of the
people get to know about it through social media and online channels. Hence a value of 75% is safe
to assume.
o Click through rate & Average revenue per click – Taken as per industry standards
o Percentage of unique visitors – We have again used the OLX estimates who have a rate of 10%.
Being a new entrant, we have assumed a rate of 4%.
Assumptions : We have assumed that in the next 2 years, our value of 1% assumed for yearly page
reviews would increase to 5% in year 2 and 10% in year 3 due to increase in popularity of the website.

Success Metric :
1. The social media ad's click through rate I.e. Number of clicks on the ad / number of people that
viewed the ad.
2. Number of people who prospected with the seller after coming to our website through clicking on the
ad / number of people that viewed the ad.
Note: even if people don't prospect, they might browse the website and prospect in other ads or they
might click on the revenue generating ad-network ads on the website.
If Metrics fails to perform according to the expectations, we will first look at the social media
channels where we are posting the ads. This is because performance of metrics mostly depends on how
well the digital market team has penetrated the social media through paid and free channels.
Changes need to be made in case of poor performance : We would first look for loopholes in the
current strategy i.e. finding advertising channels that have more reach like facebook etc. We would also
look for other forms of promotion other than social media, for eg – sponsoring events, newspaper
advertisements etc.

Negative Impacts:
Cost of keeping a digital marketing team and the digital marketing budget.
Measuring the cost - The ads will be managed by a digital marketing team that will have to be efficient
in order to be able to manage the social media marketing. We have to make sure that their cost is covered
completely and we are still able to make profits.
Though this can be managed by the effect of gaining high end leads as potential customers who would not
only close the current high price deal but will also be valuable as prospects for future high ticket deals.