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³I (Murtaza Adenwala), hereby declare that the following assignment was completed by me and me alone.

Where the text is not my own, I have cited sources to the best of my ability. I acknowledge that this is an individual assignment, not a group assignment. If I am found to be in violation of these statements, I accept the corresponding penalties.´

ASSIGNMENT TITLE Should You Investment in the Long Tail SUBMITTED BY Murtaza Adenwala Roll no: 016 UNDER THE GUIDANCE OF Name of the Guide: PROF. Naveen Amblee .

ecommerce is expected to be an important activity among regular Internet users . and finds in favor of hits rather than niches. Do you expect the findings in this case study to hold true globally? That is. e-Tailing and digital downloads could experience a high growth. contradicting the concept that niche products are diminishing the influence of blockbusters (hits). Further. Given the increasing awareness and acknowledgement. If this momentum continues. this is quite evident from the growing net commerce industry. The case study describes the pros and cons of investing in the long tail. Answer: Online users in India have exhibited willingness to make purchases over the Internet.Assignment Questions 1. do you think that online producers and retailers in India will experience similar effects? Explain briefly. While online travel will continue to comprise a major proportion of the overall market. Mobile/Digital downloads are expected to grow given the high proliferation of mobile devices in the country among different users as well as introduction of interactive content over the Internet. the overall industry is slated to experience a high growth in the next couple of years. famous retail chains are also opening up to embrace the medium to ensure there are sales over the Internet. This behavior has evolved recently and is expected to blanket different kinds of products and services purchased over the Internet and mobile networks.

the tail is likely to be extremely flat and populated by titles that are mostly a diversion for consumers whose appetite for true blockbusters continues to grow. Paid music/video downloads contribute only 7% of INR 435 crores in year 2009 which indicates that the online will not fatten the long tail. Majority of mobile downloads is attributed to ringtone. wallpapers or pictures download (INR 148 crores) and mobile recharges as well as bill payment (INR 148 crores) Software & utility applications for mobile account for 18% of Digital downloads (INR 78 crores). . the growth rate is expected to be higher in the next years. Although no one disputes the lengthening of the tail. Digital downloads has increased from INR 238 crores in 2007 to INR 435 crores in year 2009. Given the proliferation of mobile devices and the services available over the Internet. It is therefore highly disputable that much money can be made in the tail.Source: IAMAI Net Commerce Study Of the Net Commerce market size in India Digital downloads as a category contributes to only 2%. paid music/video downloads contribute 7% (INR 30 crores) while balance 6% is contributed by mobile games downloads. In sales of both videos and recorded music-in many ways the perfect products to test the long tail theory-we see that hits are and probably will remain dominant. Though demand is shifting from off-line retailers to online channels the internet space in India is still evolving with internet now penetrating in the tier 2 and 3 towns.

Online retailers cannot expect their customers to prefer long-tail products to hits ± in fact. the opposite is more likely.com). customer preference investments in niche products/tail is not a viable business option. Do you foresee any industry or sector where Chris Anderson¶s prediction of the tail providing more profits than the head is realized? Answer: The long-tail theory in action holds true for two industries ± music and home-video. Can you propose an alternative reason for the lower ratings for niche products? Answer: One striking reason that comes to my mind which may act as a source of lower ratings to the niche products is the consumer¶s ability to differentiate between superior products and middle-of-the road product because of their greater familiarity with many alternatives 4. This implies that the long tail supports the ³head´ or the blockbusters.2. Long tail products may offer more attractive profit margins for retailers than hit. adapt. The market share of blockbusters seems to depend on the industry or sector. retailers would probably lose a substantial sum on its least visited pages. Does this then make it worthwhile to invest in niche products that may never turn a profit? If so under what circumstances? Answer: Heavy customers/frequent customers are disproptionately active in the tail. It¶s just a small group of fanatics driving he demand . the top 10% accounts for only 48% of all rentals. It¶s vital for marketers to understand who is responsible for the growing volume of business we see in the tail. They should take this into account when managing customer expectations and satisfaction ± which after all lead to customer profitability. Costs associated with managing long tail on the web are having volunteers create. and that this reflects the lower quality of niche products. Research shows that success is concentrated in ever few bestselling titles at the end of the distribution curve. the top 10% accounts for 78% of all plays. and manage information. The author advises online retailers to cater to their heavy customers by increasing their assortment sizes through new niche offerings. the author notes that for music (Rhapsody. Continued dominance of hit products and the natural shape of demand suggest that efforts to fatten the tail by spreading consumption more evenly across titles may be fruitless anyway 3. Imagine if the online retailer has to pay freelancers for every page created even of the fee was nominal. The case study states that niche products have lower ratings than popular products. but for Quickflix. but extremely low in terms of demand coupled with whatever costs to make available. Research shows that success is concentrated in ever few bestselling titles at the end of the distribution curve. present difficulties in successfully executing a long-tail model. For instance. Understanding the cost associated to create and manage web pages which sell long tail products and extremely low demand.

Understanding the cost associated to create and manage web pages which sell long tail products and extremely low demand. customer preference investments in niche products/tail is not a viable business option. The author claims that it is highly disputable that much money can be made from the tail. the tail is likely to be extremely flat and populated by titles that are mostly a diversion for consumers whose appetite for true blockbusters continues to grow. when they become known. Niche products have a double disadvantage : first. second. it is by people who ³know better´ means people are highly evolved in identifying content which is original and content which is replicated and prefer popular products .for obscure products. Continued dominance of hit products and the natural shape of demand suggest that efforts to fatten the tail by spreading consumption more evenly across titles may be fruitless anyway One of the phenomena of Theory of Exposure ³Double Jeopardy´ also claims that the people who choose obscure products tend to be familiar with many alternatives. they are not well known. Even in the entertainment sector online retailers and producers are advised to resist temptation to direct consumers to the tail too often or they will run into the risk of customer dissatisfaction 5. It is unlikely that a truly significant shift in media consumption will take place or are large number of consumers regularly venturing into the long tail. Answer: I agree that long tail will not yield profitability and my argument is supported with the following reasoning: Research shows that success is concentrated in ever few bestselling titles at the end of the distribution curve. if so it¶s important to gauge the size of their appetite for those products and the degree of their satisfaction with them. I don¶t foresee any industry or sector where Chris Anderson¶s prediction of the tail providing more profits than the head is realized. those who know of few alternatives tend to stick with popular products. Although no one disputes the lengthening of the tail. It is therefore highly disputable that much money can be made in the tail. Do you agree or disagree with this assessment? Explain briefly. In sales of both videos and recorded music-in many ways the perfect products to test the long tail theory-we see that hits are and probably will remain dominant.