successful stories & online business model

Offline Open Consultant June 2011: Online Business (Notes taking)

This note is not officially from Open Consultant or any Organization and only for sharing

purpose. Recommended books are from speaker and me

OPEN CONSULTANT

Online Business Model - Speaker: Nguyễn Thanh Long – Marketing Director of www.baomoi.com

Niche Market- Small is beautiful - Speaker: Nguyễn Ngọc Hiếu - Digital Media Director of Ringier Vietnam – www.marry.vn project

Online Retail Business Model – Speaker: Trần Ngọc Thái Sơn – CEO and Founder of www.tiki.vn

Success and failure experience – Speaker: Nhan Thế Luân – CEO and Founder of www.nhaccuatui.com

Details

Content

• Baomoi.com - Online Business Model • Marry.vn – Niche strategy – Small is beautiful • Tiki.vn – Online retail business model• Nhaccuatui.com – Success and Failure

experience• Q&A

BAOMOI.COM - ONLINE BUSINESS MODEL

Baomoi.com - Online Business Model

• Money vs Value: Is your business about money or creating value for your customer?

• Freemium model: it’s important to convince users to pay for your product

• Online vs Offline: differentation

Recommended books

1. Freemium Modelhttp://tiki.vn/free-the-future-of-a-radical-price.html 2. Selling “more” with “less” http://tiki.vn/long-tail-the-revised-and-updated-edition-why-the-future-of-business-is-selling-less-of-more.html3. Business Model Generation (from speaker)http://tiki.vn/business-model-generation-a-handbook-for-visionaries-game-changers-and-challengers.html

MARRY.VN – NICHE STRATEGY – SMALL IS BEAUTIFUL

Full slide from Mr. Hieu: http://blog.ngochieu.com/chia-se/niche-market-small-is-beautiful/

Figures and Analysis

• Success: #1 wedding website in Vietnam with 11k users, 1.162 vendors

• Target users: woman - age 25 to 35 – ABC Class• Analyse before and after married: Big changes Before married most interested activities: wedding plan, beauty, cooking, homeAfter married most interested activites: home, cooking, childcare

Marry.vn Model – Connecting Vendors to users

Hotel/ResortRestaurantPhoto studioWedding invitation…

Couples want to get married

Advantages

• Low cost per potential client (every registed users are planning for wedding)

• Not much competitors• Easy to sell and recruit users• Biggest wedding community>>> Publish Wedding Magazine in April 2011

New products

• Marry home (after getting married)http://home.marry.vn• Marry baby (after having a baby)http://baby.marry.vn• Sharing cooking recipeshttp://www.bepgiadinh.com

Start-up TIPS

• “Are you crazy?” ideas• Survey! Do survey to make sure about your

market is potential• Define your USPs (Unique Selling Proposition) : • Niche! = small market• Do not go mass with the same brand• Recruit the right people to share the same

passion

Recommended book

Helpful analysis and insights for who wants to do online marketing campaign and build a successful online producthttp://tiki.vn/groundswell-winning-in-a-world-transformed-by-social-technologies.html

TIKI.VN – ONLINE RETAIL BUSINESS MODEL

Start-up

PASSION EXPERIENCE

MARKET

Business Model

Key Partners

SuppliersLogistic Partner

Cost structure

HR – Admin | Marketing | Logistics & Invetory | Platform Dev |

Customer care

Key Activities

Customer careMarketingLogistic & Inventory

Platform Deve

Key resources

Value Propositions

UX (User experience?)

Gift

Customer relationshipPersonalized automated

ChannelsTiki.vnWOF

E-Marketing

Customer Segments

Revenue Stream

Customer care

• Approx 1% operating budget• Customers can return books if they’re not

sastisfied with money back• Advocate people to comment: use Tiki Xu (Tiki

coin) >>> works effective• Offer book cover service, fast delivering, etc

NHACCUATUI.COM – SUCCESS AND FAILURE EXPERIENCE

Nhaccuatui.com – Success and Failure experience

• Design: Do easy things first and later difficult ones, to be simple and no instruction needed

• Debut time: Choose the right time to run your website, get many users as possible

• Bad comments, it’s still…ok cuz it helps you know who and where you are

• Understand every details of your productReport: figures help you understand abt your website• People is the key of success: hire the best people to

work for you

Recommended book

• Future of Management (Gary Hamel) (IBM, Google…business model) which you can order at tiki.vn

Q&A

Q&A

1. Q: Start-up most difficulty?A: (Mr. Hieu) Get the right people to work for you2. Q: Online paymentA: (Mr. Son) currently popular in Vietnam: COD3. Q:Without loyalty how can the marry.vn became successful?A: (Mr. Hieu) aim at right target: business class. Doing appropriate marketing: sponsor, give free services from vendors to office building4. Q:Priority in start-up: traffic, profit or value to customers?A: (Mr. Luan) depends on personal objectives. It could be sales target, or traffic or profit.(Mr. Son) If you don’t have much money or any investor to cover operating budget you need cash flow to sustain it.

Q&A5. Q: Talk about your zero marketing?A: (Mr. Luan) the time when Yahoo 360 Blog is popular we developed a tool for users to add music stream into blog (from writer: free tools for user to widespread your products). SEO and Email Marketing are important too.6. Q: What’s the difficulty of freemium model in Vietnam and how to do it in Vietnam?A: (Mr. Long) From my personal experience you should convince users to pay from the beginning of your product, not waiting until it’s been using a long time and start asking users to pay. 7. Q: Email marketing: quality and how to develop the list?A: (Mr. Son) - First: send to loyal customers- Co-promotion, make clear benefit and objectives with your partners- Click thru rate in email marketing: 10-15%. Conversion: 2-3%8. Q: what’s your company main profit?A: (Mr. Luan) Display ads, Bold users (VIP accounts), Marketing Campaign with brands(Mr. Long) you must think out of the box, now new devices like smart phones can change the way of getting money from customers.

About mePhan Lê Anh Minh (Minh Phan)Business fields: Apparel. Fashion Design. Online Business.Experience:• 2 years Product Designer for www.i-pop.net• 6 months sales manager for www.ancienthue.com.vn (restaurant)Currently:• Doing start-up at www.classyv.com (fashion and event planning)I’m really happy to be your friend. Please add me on:http://www.facebook.com/minhphanhttp://www.twitter.com/minhphanhttp://www.linkedin.com/in/minhphan07Skype: minhphan07