universitas indonesia jigsaw – internet business plan makalah non ...

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





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


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




2 GB free




15 GB free




5 GB free



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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10. REFERENCES

Allen, M. (2010). The Experience of Connectivity. Information, Communication & Society, 13(3), 350-374.

Australian Bureau of Statistic. (2009). Age Matters. Retrieved from

http://www.abs.gov.au/AUSSTATS/[email protected]/lookup/4914.0.55.001Main%20Features5Ma y%202009.

Bilkey, R. (2013). Is the post-bookstore world inevitable? 5 ways bookshops can fight back.

Retrieved from http://fictionetal.wordpress.com/2013/01/24/is-the-post-bookstore-world- inevitable-5-ways-bookshops-can-fight-back/.

Blog.com .(2013). Retrieved from http://blog.com/features/.

Brough, K. (2013). The statistics don’t lie – you can’t ignore social media. Retrieved from http://exchange.telstra.com.au/2013/05/21/the-statistics-don’t-lie-–-you-can ’t -ignore- social- media/.

Cameron, M. (2013). The state of social media usage in Australia. Retrieved from

http://www.marketingmag.com.au/blogs/the-state-of-social-media-usage-in-australia- 41342/#.UlAR5xaUOZZ.

Chaffey, D., Ellis-Chadwick, F., Mayer R., & Johnston, K. (2009). Internet Marketing (4th ed).

Essex, England: Pearson Education Limited.

Cnet. (2012). Is Dropbox cloud storage too expensive? Retrieved from http://news.cnet.com/8301-1023_3-57592985-93/is-dropbox-cloud-storage-too-expensive/

Corley, JK., Jourdan, Z., & Ingram, WR (2013). Internet marketing: a content analysis of the

research. Springer Heidelberg, 23 3, p177-p204.

Cox, R., & Brittain, P. (2013). Retailing: An introduction (Vol. 5). Essex, England: Prentice Hall.

Dunne, P. M., Lusch, R. F., & Carver, J. R. (2011). Retailing. Mason, OH: Cengage Learning.

Eliason, E. (2012). 3 reasons why mass customisation is the future of consumer products. The Huffington Post. Retrieved from http://www.huffingtonpost.com/erik-eliason/mass- customization_b_1313875.html.

Fenech, S. (2011). Australians to spend $2b on digital goods in 2011. Retrieved from

http://www.techguide.com.au/menu-news-by-categories/internet/720-australians-to-spend-


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itnews. (2013). Google unveils 'Hummingbird' search algorithm. Retrieved from:http://www.itnews.com.au/News/358484,google-unveils-hummingbird- search- algorithm.aspx

Google AdWords. (2013) Google AdWords - Online Advertising by Google. Retrieved from

https://adwords.google.com.au/.

Google Analytics. (2013). Build your audience - Google Analytics. Retrieved from https://www.google.com.au/analytics/why/.

Hey Tow, W., Dell, P., &Venable, J. (2010). Understanding information disclosure behaviour in

Australian Facebook users. Journal of Information Technology, 25, 126-136.

Pine, B.J., and Gilmore, J.H. (1999). The Experience Economy. Boston: Harvard Business School Press.

Rizavi, S.S. (2006). Direct marketing through e-commerce. The Journal of Commerce, 1-7.

Shobeiri, S. (2011). The Impacts of Perceived Experiential Values on Customer Outcomes and Behavioral Intentions in Online Retailing. PhD thesis, Concordia University.

Visual.ly. (2013). A Day in The Life of The Internet. Retrieved from http://visual.ly/day-life-

internet


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