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 Case Study

Prepared For
Mahmudul Hasan Fouji
Associate Professor
Department of Marketing
Jagannath University

Prepared By
15th Batch, Section A

No Name ID
1. Mazhharul Islam M-18150204709
2. Shamim Ahmed M-18150204713
3. Hasnat Omar Raka M-18150204722
4. Md. Jehin Ahamed M-18150204725
5. Probir Barman M-18150204730
6. Akash Goswami M-18150204732
7. Md. Ashrafuzzaman M-18150204733

Date of Submission
23th November 2019

2
Chapter: 1

Pinterest: A Picture Is Worth a Thousand Words

1. Why does Pinterest view Google as its primary competitor?

Pinterest view’s Google as its primary competitor because most people use Google to search
for what they are looking for. Pinterest has repositioned themselves as a visual search tool for
discovering and saving creative ideas and potential purchases, rather than their initial focus of
being a social media platform. Pinterest have changed direction and now puts more emphasis
on search than sharing and chatting with friends using their platform. Many people use
Pinterest to get ideas or inspiration, even when they don’t know exactly what they’re looking
for. Pinterest wants to be the place that people go to when they are searching for ideas, and
they are slowly becoming so. I use Pinterest when I want to see lots of images and different
ideas. Google images isn’t always the best quality. Many things that are Pinterest can also be
searched for on Google, so that’s a big reason why they’re a competitor. All the information
you can get in the Pinterest you can get the same information in the Google, but Google does
not has many pins as Pinterest have. But Pinterest only have many pins in women fashion,
home decoration, craft as well as food, but in Google you can basically search anything. For
example, you can search the e-book you like, watch movie, and listen music, which that you
cannot do via Pinterest.

2. Why does Pinterest focus on the smartphone platform when it develops new features
and products?

Pinterest are focusing on the smartphone/tablet platforms rather than desktops because they
believe that smartphone and tablets are more important than desktops since 80% of their
traffic comes from mobile devices. Additionally, when taking into account that more
millennials own just a smartphone and a tablet, it makes more sense to optimize their
operations on those platforms than desktops as millennials make out a big percentage of the
active e-Commerce participants. According to Pinterest’s founder, Evan Sharp, the
smartphone is the platform Pinterest will be having its main focus on going in to the future.
The majority of Pinterest’s traffic activity is originated by mobile devices, considering that
most of its activity comes from mobile devices, it makes sense that they focus on the

3
smartphone platform when developing new features and products. When you’re on Pinterest
on a mobile device, you can constantly scroll through images without ever having to leave
one page. Most people use smartphones instead of desktops nowadays, so Pinterest wants to
focus on what people are using the most. Users can also purchase items through Pinterest
using the mobile app. It saves lots of time.

3. Why is copyright infringement a potential issue for Pinterest?

Copyright infringement is a potential issue for Pinterest because the users post pictures from
other people without any kind of permit. This is causing Pinterest some problems;
furthermore, they are having similar issues with videos posted from YouTube and similar
sources. Sometimes pins have to be deleted because they belong to someone who didn’t want
them use publicly. Pinterest puts the responsibility of not violating copyrights on the users
many believe that Pinterest themselves are enabling copyright violations by not taking action.
Because if copyrights have been violated the original creator has to actively search for his/her
content to opt-out from being shown on Pinterest. Pinterest allows you to post content,
including photos, comments, links, and other materials. Anything that you post or otherwise
make available on our Products is referred to as “User Content.” You retain all rights in, and
are solely responsible for, the User Content you post to Pinterest.

4
Chapter: 2

Freemium: Takes Pandora Public

1. Compare Pandora’s original business model with its current business model. What’s
the difference between “free” and “freemium” revenue models?

The original free business model was to give customers first 10 hours for free, if they like the
service, they would have to subscribe for a monthly fee of $36. While the current model is
quite different: customers can have free access for the first 40 hours, then they have three
options: 1). Pay 90 cents for the rest of the month 2). Sign up a premium service which offers
unlimited access 3). Do nothing. They music would stop but they can sign up for next month
again.

My opinions on the two models:

Free: 1). 10 hours are a little bit too short for customers to have a taste of Pandora, they can’t
even fully explore the functions and the listening pleasures that Pandora could bring. The
whole point of giving customers free trial is that customers can have a taste of the service,
thus love it and became addicted to it. However, the 10-hours free trial was failed to serve the
purpose, not to mention about create a large enough customer base. 2) $36 per month is way
too expensive for a service that pretty much cost nothing to maintain. In my opinion, this
“free” business model is doomed to be a failure.

Freemium: 1) 40-hours are a much better length for a trial music streaming service. Prospects
can easily grasp the essence of the service. 2). 9o cents for the access of the rest of the month
is almost cost nothing for a customer, most people would choose to pay it since it’s so
insignificant. 3) The fee for sign-up the premium service is also affordable: $36 per year with
only $3 per month. This price for most heartland music fans are acceptable. 4). If you do
nothing, although the music would stop for this month, but you can always start over next
month. All of the 3 options help Pandora captured a large user base accordingly.

5
2. What is the customer value proposition that Pandora offers?

Pandora offers a “personal” radio station playing your kind of music.Investopedia.com

defines a value proposition as “A business or marketing statement that summarizes why a
consumer should buy a product or use a service. This statement should convince a potential
consumer that one particular product or service will add more value or better solve a problem
than other similar offerings.” So I went to the about page on Pandora to find the value
proposition.What Pandora does for its customers is provide access to music through the
“Music Genome Project.” This project was started by the founders of Pandora and offers a
way to classify music so that similar music by different artists will group together into what
they call a personalized radio station.The music is evaluated by professional musicians for
genre, and then within each genre 200-500 different data points are set for each song by the
music professional. A function is used to identify the distance between songs so that similar
songs can be included in a customer's playlist. A user can apply additional weights to
promote or demote certain bands so they will play more or less often on their radio station.
This really is impressive technology that would be almost impossible to replicate by another
company.

3. Why did MailChimp ultimately succeed with a freemium model but Baremetrics did
not?

The case study claims that freemium works best when there is a very large audience for your
service and you can offer paid upgrades to make it worthwhile for people to pay to get the
additional added value
MailChimp works as a free service because anyone that sends the same email to multiple
people is a prospective client. The light user might be someone sending out a church
newsletter as an email every week, with a volume of just dozens of emails. A high end user
could be a corporations using the service to send a hundred thousand emails to its customers
and needing to track the conversion rate of the emails, or now many of the people clicked a
link in the email, and how many actually purchased something because of the email I think
for MailChimp, the basic features that a customer can get without a paying a fee is adequate
enough to capture a large user-base. Since the core business of MailChimp is allow users to
send emails to subscribers and thus make a fortune out of it eventually, I wouldn’t be

6
surprised to see after having large enough user base, MailChimp got more subscriptions for
the premium version. Most of time, customers wouldn’t be so stingy for a service that can
help them make money. Based on this idea, I wouldn’t be surprised that Baremetricshave
difficult time in the freemium model since the functions and features that Baremetricsoffers,
is not essential for most individuals and businesses. In other words, Baremetricsdoes not have
a solid customer value proposition.

4. What’s the most important consideration when considering a freemium revenue

model?

If I have to pick the most important consideration when considering a freemium revenue
model sit that the company should have a solid and unique customer value proposition. A
service that can creates value or even fortune for the users. A service that make people rely
on and addicted to. I think most important consideration is:

I) Large potential audience.

II) Low variable cost to add additional free users.
III) Easy to use.
IV) Network effect helps to add and keep users.
V) High customer retention rates.
VI) Value of service to customer grows over time.

7
Chapter: 3

Akamai Technologies: Attempting to Keep Supply Ahead of Demand

1. Why does Akamai need to geographically disperse its servers to deliver its
customers’ Web content?

Akamai disperse web content and store it in certain places around the world so when people
are looking for said content they can retrieve it from a nearby location. This increases the
speed with which web pages load and decreases the issue with latency as people have less
patience for waiting when it comes to online content. Akamai makes sure your content is as
close to your customers as possible.

2. If you wanted to deliver software content over the Internet, would you sign up for
Akamai’s service? What alternatives exist?

I think it’s depending on where the traffic to my website comes from I would certainly make
use of Akamai's service. If there is plenty of global attraction then I believe it's important to
give them fast delivery times on your content. Those few seconds of faster content can make
the difference between a loyal and passing client. The case gives no real alternative and I
can't come up with one myself to be honest. Unless off course you wish to simply have a web
page that loads much slower than your competitors. Perhaps the current success of cloud
computing will bring some competitors to the market in which Akamai operates. However if
most traffic comes from places near the server that I use I wouldn't make use of their service
simply because the speed would already be acceptable. But I believe that any widespread e-
service or internet content provider should make use of either Akamai's or a similar service.

8
3. Do you think Internet users should be charged based on the amount of bandwidth
they consume, or on a tiered plan where users would pay in rough proportion to
their usage?

You could do it this way, but then you're talking about the whole SOPA issue that North
America had a few years ago and the concept of net neutrality. In this case companies could
pay more for a better internet service and the ability to get a larger portion of internet usage.
However this way ISP's could simply give these companies the highest speeds and leave the
normal consumer with a much more sluggish experience unless they want to pay top dollar to
their ISP for their internet connection. I believe equality is an important concept here where
everybody should get the same speeds no matter what their usage is. Because once you start
with paying for your bandwidth there does no know how far the ISP's will take it in
augmenting their prices. For big business this could mean that they can offer amazingly fast
content availability when using their service. But the run of the mill consumer would be
facing slower connection and usage speeds for all other sites simply because the augmented
ISP costs could ramp up insanely fast.

9
Chapter: 4

Dick’s Sporting Goods: Taking Control of its E-commerce Operation

1. Why did Dick’s decide to leave eBay and take over its own e-commerce operations?

The cost of working with eBay was growing rapidly as Dick’s became more successful in
online sales. The fees eBay charged rose a percentage of sales even though it cost eBay no
more to fulfill an expensive order than an inexpensive order. Dick’s also wanted to
customize its web operations to the needs of its customers, and mostly importantly they
wanted to develop an omnichannel business.

2. What is Dick’s omnichannel strategy?

Dick’s plans to use its physical stores as mini-distribution centers, fulfilling online orders
from local and regional customers from physical stores located nearby. The stores can also
act as showrooms for its products, and customers could pick up online orders in nearby stores
the same day.

3. What are the three steps in Dick’s migration to its new website?

Step 1 involves developing the new website and using it with their current systems.
Step 2 involves moving its smaller brands to the new platform and continuing to develop the
new platform.
Step 3 involves moving its main website, Dick’s Sporting Goods, onto the new platform.

4. What are the primary benefits of Dick’s new system?

The primary benefits include the ability to buy online and pick up in store and the ability to
test different pricing and marketing approaches by region. Other benefits include an
improved search engine and better analytics capabilities. Dick’s also hopes to achieve higher
sales because multi-channel customers spend three times as much as single-channel
customers. Finally, the new system allows Dick’s to speed up the innovation and
development cycles of its online and physical store operations.

10
Chapter: 5

The Mobile Payment Marketplace: Goat Rodeo

1. Who are the three major players in the mobile payment market?

Key vendors of the mobile payments market are Apple, Samsung, Amazon, Tencent, Google,
Skrill, American Express, One97 Communications Limited, Vodafone, Ant Financial, JP
Morgan Chase, PayPal, Sprint Corporation, Visa, Well Fargo, First Data, AT&T, and
Mastercard. The players in the mobile wallets market are forming strategic alliances with
financial institutions, retailers, card network providers, and telecoms service providers to
expand their customer base and gain market share. For instance, in July 2018, Visa partnered
with Kuwait Finance House to launch a mobile payment for credit card and prepaid
cardholders.

(i) Technology companies like Apple, Google, Samsung, and PayPal.

(ii) Large national merchants like Visa, MasterCard, Discover, and American Express.

(iii) Money center banks like JP Morgan Chase, Wells Fargo, Citi, etc.

The mobile payment market is led by major players in the Asia Pacific region including
WeChat and Alipay. These vendors are forming partnerships with various merchants to
increase the usage of their mobile wallet offerings. Device manufacturers and banking
establishments, such as Chase Pay and Apple, are providing lucrative offers to increase the
use of their mobile wallets across various e-commerce platforms & merchants. They are also
strategically acquiring of various mobile technology providers to enhance its product
capabilities. For instance, in December 2017, JP Morgan Chase acquired WePay, a fintech
start-up to integrate its API solution that can handle payment processing, fraud detection, and
complex payouts in its product offerings.

11
2. Why is Venmo considered a social-mobile payment system?

Payment infrastructures are going through rapid change with the rise of next generation
mobile networks and smartphone ownership. From mobile wallets to rideshare apps, social
payments allow users to split receipts with friends, charge exes for breakup expenses, or troll
celebrities. New layers of data, sociality, and markets are being created and influenced by
expanding economic imaginaries, regulations, and business models leveraging these new
infrastructures. In this paper we discuss how mobile payment systems have become social
media. After discussing the recent history of mobile payments innovation---SMS, mobile
wallets, delivery and ridesharing apps--- we examine Venmo, a social payments platform that
allows users to broadcast transactions to a social activity stream or public transaction feed.
Our findings detail how transaction feeds of mobile payments support social practices,
communication, and commerce with mobile devices and wireless networks. We present
findings from a case study on Venmo to develop some implications for the design, study, and
impact of mobile payment infrastructures as social media.

3. How does Apple pay differ from Android Pay and Samsung Pay?

With Apple pay when a customer wants to make a payment. He or she presses the iPhone
Touch ID button, which reads the customer’s fingerprint and ensures the phone does indeed
belong to the person. Next, the consumer swipes the device near a merchant’s NFC point-of-
sale terminal, which begins the transaction process. A digital token is form and the
information is encrypted and sent to Apple servers to verify the authenticity of the device and
the person. Apple sends the payment request to the credit card issuer. Credit card issuers
verify the account owner and available credit. In about one second, the transaction is
approved or denied. Android pay is a Google app that provides an NFC based payment
system much like Apple pay. Android is the most widely used smartphone operating system
in the world. Android pay replaces Google wallet, which has been repurposed as a peer-to-
peer payment service that allows users to pay friends using only their email address. To use
Android pay, customers hold their phone near the merchant’s NFC terminal at checkout.
Android pay is free for subscribers except when they use their credit card. Samsung pay
prioritizes the use of NFC technology when merchants have the appropriate terminal, but
when that is not available, switches to a technology called Magnetic Secure Transmission that
sends the card data stored on the user’s device to traditional magnetic stripe terminals.

12
4. How does PayPal enable mobile payments?

PayPal is currently the most successful and profitable non- traditional online payment system.
It is accessible from all different types of devices. It enables mobile payments in 3 ways.
First, PayPal sells a device that allows merchants to swipe credit cards using a smartphone or
tablet. Second, customers use their mobile device browser on a tablet or smartphone to make
a purchase or payment at a website. A third method is PayPal’s updated app for iOS and
Android devices.

13
Chapter: 6

Programmatic Advertising: Real-Time Marketing

1. Pay a visit to your favorite portal and count the total ads on the opening page. Count
how many of these ads are (a) immediately of interest and relevant to you, (b) sort of
interesting or relevant but not now, and (c) not interesting or relevant. Do this 10
times and calculate the percentage of the three kinds of situations. Describe what
you find and explain the results using this case.

The results should be interesting! You might want to ask students whether they have cookies
turned off, or use an ad blocker, or use software to prevent tracking. Ordinarily, students do
not take these steps. In general, it is likely that students will report that only a small percent
(at best 20%) of the ads are appropriate in any way for them. This means the online
advertising at these sites is not very efficient. In part this is the case because the advertisers
know very little about individuals per se. This is not the case at product or service sites where
context advertising can be quite effective. If you go to an auto site like Edmunds.com, or a
fashion site like Elle.com, you will receive ads appropriate for these contexts.

2. Advertisers use different kinds of “profiles” in the decision to display ads to

customers. Identify the different kinds of profiles described in this case, and explain
why they are relevant to online display advertising.

Profiles are built by recording the behavior of people online, and inferring their interests, age,
gender, location, interests, preferences, political, and social attitudes. The list of possible
profiles is very large and dependent upon the relevance to advertisers or others who purchase
the profiling service. For instance, the U.S. Army recruiting group may want to target 18–21
year olds with a preference for online games and war movies. For online display advertisers
profiling is a way to approach the effectiveness of search engine advertising by displaying
banner ads that are of interest to the consumer.

14
3. How can display ads achieve search-engine–like results?

Search ads work so well because they capture the intentions of people at every instance of
searching, and can display ads relevant to those searches instantly. Display ads can achieve a
similar result if they are based on behavioral profiles (constructed from information such as
what sites users have visited and what products and services users have observed on various
sites).

4. Do you think instant display ads based on your immediately prior click stream will
be as effective as search engine marketing techniques? Why or why not?

Yes and no. For instance, just because you visit a news site, and then a sports site, this does
not offer many clues to advertisers. Click stream behavior that previously happened, even if
immediately prior, may not be such a good indicator of current interests. Long-term online
behavior can establish patterns that could be more useful. On the other hand, yes, if a person
visited a car site such as Ford, stayed a few minutes, then at the next site he or she visits it
might be useful to display an ad for Ford cars, and even follow that person around the Web
showing Ford cars wherever he or she goes. These techniques are so new that there is little
empirical data on which to make a judgment.

15
Chapter: 7

ExchangeHunterJumper.com: Building a Brand with Social Marketing

1. Find a site on the Web that offers classified ads for horses. Compare this site to
exchangehunterjumper.com in terms of the services offered (the customer value
proposition). What does The Exchange offer that other sites do not?

I decided to compare the exchangehunterjumper.com with a site that also advertise horses for
sale called ehorses.com. At a first glance ehorses.com looks much more professional and
user-friendly than the exchangehunterjumper.com does. However, when you start to browse
for horses on ehorses.com it is a much more complex search system, which can be good if the
buyer knows exactly what he wants. But at the exchangehunterjumper.com the choice is
easier when browsing for horses as they already have some listed on the sidebar and they also
have typical horse specifications that potential buyers can click on to get what they want.
Another great advantage with exchangehunterjumper.com is that they offer video clips on the
horses edited by them and not the sellers, which is a neat service that they offer. However,
both ehorses.com and exchangehunterjumper.com offers an integrated view of the seller’s
social media platforms as well as their email address and contact information. Lastly, the
exchangehunterjumper.com offers an additional array of services that include selling barns,
showing calendar for horses, and horses that have been sold in the past. This is where they
have their value proposition compared to their competitors.

2. In what ways were social media effective in promoting The Exchange brand? Which
media led to the highest increase in sales and inquiries? Why?

The Exchange started experimenting and using social media as a company before it was as
big as it is today. Aslin started with a Facebook, Youtube, Twitter, and Instagram in the early
ages of social media and had a little advantage when social media really took off. Although
The Exchange are fairly successful on all of their social media platforms with 60,000 views
on Youtube, 2,000 followers on Twitter, 5,000 followers on Instagram, and 16,000
friends/likes on Facebook. During the time this book was written, Facebook was also the
most important social media platform for The Exchange, and they even spent money on
advertising their service on Facebook. On Facebook, The Exchange promotes content and

16
boosts posts every month, and they have found that it has become increasingly important to
maintain and gain more social media attraction and interaction. The Exchange uses Google
Analytics to track exactly how many people are on their website in real and how they got
there. As well as a short URL service, bit.y to create unique URLs associated with Facebook.

3. Make a list of all the ways The Exchange attempts to personalize its services to both
buyers and sellers.

 The Exchange has a personal e-mail response to buyer inquiries where an actual person
responds, i.e. the email is not automatically generated
 Buyers can fill out pre-generated forms if they have an interest in a horse and receive a
pro forma budget based on the expenses that comes with the purchase
 Like many other e-commerce sites The Exchange makes recommendations to potential
buyers based on what horses they have looked at historically, and by doing this The
Exchange Searches for suitable horses for potential buyers of horses automatically
 For every horse that gets put up on their website, The Exchange develops a personal
selling strategy for each horse which customizes the whole selling experience, making
their platform a less of a C2C business and more of a C2C + consulting e-commerce
entity.
 Lastly, The Exchange works with individual sellers and trainers in the sales & operations
planning side to create effective ads that includes video edited clips of the horse and
photos and history of the horse

17