MARKETING STRATEGY OF WEB DESIGNING SERVICE

SUBMITTED TO: Mr. SP KETKAR SUBMITTED BY: SHUBHADIP BISWAS

[FT-10-948]

EXECUTIVE SUMMARY The Internet commerce industry in India has seen a manifold increase in the last couple of years, with the total market size increasing from Rs 19,688 crore by the end of 2009 to an estimated Rs 31,598 crore in 2010. By the end of 2011, the net commerce market size is expected to grow by 47 per cent and touch Rs 46,520 crore, the study by the industry body said. We will initially focus almost exclusively on small companies looking to develop an Internet presence for the first time. We will market our services to small business owners as a "step-bystep" process, initially starting out with a small, simple website, then gradually improving and adding to the site and their entire online marketing efforts. Although we plan to bring on many clients who simply will need an online presence and nothing more, our most important and sought after clients will be those business owners who are ready to implement a larger percentage of their company onto the Internet. This type of client will traditionally need one of the following services:

E-commerce/shopping cart. Database driven websites. Dynamic content and website features. Aggressive online website marketing.

With more than 930 million inhabitants, a projection of 60 million Internet users and set to grow rapidly to the third largest Internet user base in the world, the number of Internet users worldwide is expected to touch 2.2 billion by 2013. In a time when the outsourcing of projects is favored, many companies and brands in India are making a stand in the Web industry. Although Indian designers follow the web design trends of the world, there is a relatively low demand internally. Now that communication is so easy and uncomplicated with new and constantly improving technologies, overseas companies are flocking to Indian creative firms. This way, they get quality work done at a lower cost, although there has been an increase in price evaluation in recent years. Described as the paradise of outsourcing, however, the reality is that wages are rising in India. The cost advantage for off shoring to India used to be at least 1:6. Today, it is at best 1:3. Attrition is a frightening concept but unavoidable. Jobs that are low value-added and easily automated will very likely disappear within the next decade or so. There is a lot of talk about India moving up the value chain. Some of that has indeed happened. An industry that gained momentum is software development. Indian software developers were tapped to help fix the Y2K problems in old software code and the industry have blossomed

beautifully into one that offers a more comprehensive spectrum of services. Yet India is still the worlds back office. Indias tech and web industry has an abundance of worker bees. What customers expect or want, India will provide no questions asked. With this boom in offshore outsourcing, Indias software and services exports are estimated to grow rapidly. Rates are rising quickly in all markets and the lowest rates are in Pakistan and Ukraine. While America and India are in the middle, Europe and California are the most expensive. In the tech world, one must really classify California as a country on its own separate from America. Russia is regional, while there is almost no development services exported from Japan (low supply) and from the hyper-fast growing economies like China (too much internal demand). Given our experience and expertise in both commercial Web development and business-tobusiness sales, we believe we can offer a unique and superior service to small business owners, in comparison to what is currently available. The demand and growth rate for Web development and marketing services in the small business market is at an all time high and shows no sign of slowing anytime soon. Even more astonishing is the fact that very few Web development companies have taken advantage of the opportunity, as there are no dominating participants in this huge market. We believe the reason for this virtually untapped market is due to expensive project costs, the highest profit margins in Web development today are in servicing large- and medium-sized corporations. We have developed a system that dramatically reduces steep project costs and henceforth will allow us to offer the same high-end Web development services as larger companies receive at a much lower cost to the client. NAME OF COMPANY: WEBSAGA Objectives To provide customers the best quality & professional looking website which improves their business development . Other objectives: 1. Revenues of rs 600,000/- by month 8 . 2. Net Profit of 26% in year one and 36% in year two. 3. 65% Gross margin by month 8

Mission Our mission is to provide affordable, accessible, and streamlined Internet and Web services to small businesses. We have developed a system for offering many different types of Web services (site development, hosting, marketing, and maintenance) that are exclusively tailored to fit the needs and resources of small companies. Goal is to achieve high level of customer satisfaction by delivering projects within stipulated time.
4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 YEAR 1 YEAR 2 YEAR 3 SALES GROSS MARGIN NET PROFIT

Company Location Kolkata, West Bengalclose to our target market area--- approximately 1,700 sq. ft. capable of housing workstations for up to 15 workers. Services We focus mainly on the Web, offering the following as our key 'Bread & Butter' website services:

Design and development. Marketing and analysis Website renovations and upgrades. Application development (i.e. chatrooms, message boards, online polling, live-feed audio/video, etc.).

Website maintenance training. Internet/website education seminars. Database construction. Result-based website marketing.

Sales Literature We will distribute a sales folder with all the pertinent information about our company and services. This folder includes our strong points, history, portfolio examples, and pricing packages info. It also contains facts based on the growth and popularity of the Internet for small businesses. We will design website that provides information about the company, plus a variety of helpful resources for small business owners which we will be constantly updating. In the next six months, we plan to produce and distribute bulk mail and fax flyers promoting our Web development and hosting services to small businesses. We have plans to offer a more compact version of our main sales folder in a brochure format. This brochure will be available both as a mailer to interested parties and as a sales solicitation in area businesses. Fulfillment For the website design, development, marketing, analysis, and maintenance we will employ industry professionals to handle our clients' needs. To keep employee costs low, we have designed a "team" development system that will consist of two full-time sales people and three full-time Web developers. Of the Web developers, one position will be filled by a highlyqualified senior Web professional and two lesser-qualified, lower paid developers. All three will work full-time on separate projects provided to them by the sales people. However, the senior developer will have the duty of maintaining the same high quality level of work in the junior developers' projects, For the website hosting services we will form several alliances with industry leaders to provide top-rate, reliable hosting solutions. Forming the alliances has allowed us much flexibility in important hosting features, customizability, and it has drove costs down dramatically. All these benefits are crucial to preserving the integrity of our company as being a 'fully-rounded Internet solutions provider' for small businesses.

MARKET ATTRACTIVENESS:
MACRO LEVEL India has revealed that Indiaa E-commerce market is growing at an average rate of 70 percent annually and has grown over 500 percent since 2007. The current estimate of US$ 6.79 billion for year 2010 is way ahead of the market size in the year 2007 at $1.75 billion. The following chart depicts the growth of E-commerce in India in the last couple of years:

websites have become a door of opportunity, and business contacts The Internet commerce industry in India has seen a manifold increase in the last couple of years, with the total market size increasing from Rs 19,688 crore by the end of 2009 to an estimated Rs 31,598 crore in 2010. By the end of 2011, the net commerce market size is expected to grow by 47 per cent and touch Rs 46,520 crore. Comprising about 81 per cent of the total e-commerce in the country, the online travel market, which includes booking rail and air tickets, hotel accommodations and tour packages, is estimated to grow by 50 per cent and touch Rs 37,890 crore by December, 2011.

In the travel portfolio, which was worth Rs 14,953 crore in 2009, domestic air travel contributed 63 per cent, followed by railway tickets (28 per cent). According to the study, around 7.4 million people in the country bought products over the Internet in 2009.

In India, Internet user base grew by 35 per over last year and the Internet penetration combining broadband and mobile Internet have touched over 100 million users, which is around 7-8 per cent of the 1.2 billion population, Internet Usage and Population Statistics: YEAR 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 Users 1,400,000 2,800,000 5,500,000 7,000,000 16,500,000 22,500,000 39,200,000 50,600,000 40,000,000 42,000,000 81,000,000 100,000,000 Population % Pen. 1,094,870,677 0.1 % 1,094,870,677 0.3 % 1,094,870,677 0.5 % 1,094,870,677 0.7 % 1,094,870,677 1.6 % 1,094,870,677 2.1 % 1,094,870,677 3.6 % 1,112,225,812 4.5 % 1,112,225,812 3.6 % 1,129,667,528 3.7 % 1,156,897,766 7.0 % 1,173,108,018 8.5 %

the boom in offshore outsourcingcost advantage 1:3 Most of small, medium companies are not using webpage-but realizing the benefit. Non-users of website have no preference for known and tested brands. Techno-savy business scenario 3 out of 4 Internet users are now on the net daily. the post 1990s globalization and the free enterprise policies

Statistics about Internet usage considering Age Group and Gender :

2/3rd households have multiple users in them 97% are regular users and 79% use daily 70% of people who know computer have used Internet 19-40 years age group constitutes nearly 85% among Internet users 85% of Internet users are male 11% of working women, 6% non-working women and 2% housewives use Internet which is not a very good sign 46% of net users are graduate, 26% are post-graduate

Statistics about Internet usage considering cities :

Mumbai has most number of Internet users nearly 3.24 million Delhi holds the second place with 2.66 million Top ten cities having most number of Internet users are Mumbai, Delhi, Banglore, Kolkata, Chennai, Pune, Hyderabad, Surat and Nagpur. These 10 cities has 37% of the total numbers of Internet users in India.

Statistics about Internet usage considering browsing habits :

94% of total users use Internet for Email purposes 72% of total users use Internet for download music (73%) followed by Chatting (56%) Other major purposes for using Internet are job searching (56%), social networking sites(54%) and finding information on search engine (52%) 13,188,580 Facebook users on August 31/10, 1.1% penetration rate of total Internet users Cyber cafes account for maximum Internet usage with over 37% of all users accessing Internet through cyber cafes

The supportive policy environment created by the Government of India has played a key role in the rapid development of this sector. While policies have effected infrastructural development of leading cities as IT-BPO destinations in India, additional work needs to be done in developing tier 2/3 cities as viable IT-BPO service delivery locations. In a globally integrated economy, outsourcing is leading to overall benefits for the source economies, providing significant monetary and employment benefits. The silver lining of the economic downturn is the opportunity for the industry to enhance its overall efficiency. Companies are increasingly looking inwards and focusing on process benchmarking, enhanced utilization of infrastructure and talent, increasing productivity and

greater customer engagement. Coupled with wage moderation and lower attrition, these measures will help industry sustain its margins and invest in future growth. The Governments proactive approach towards the IT-BPO industry was further highlighted in 2008 through actions such as the IT Act Amendment, extension of tax incentives by a year, removal of the SEZ Act anomalies and the introduction of progressive telecom policies that focus on work from home. India is the leading country for offshore outsourcing. The offshore outsourcing industry started in India and it has be able to grow the IT and BPO export sector to $47 billion and capture more than half the offshore outsourcing industry. That is not to say that India does not have challenges or is the best location for every offshore outsourcing effort, but it has an unparalleled history and size. The Americas and Europe are the largest customers for the Indian outsourcing industry and account for 60 percent and 31 percent respectively of IT and BPO exports. The largest vertical sectors are financial services (41 percent), high-tech/ telecom (20 percent), manufacturing (17 percent) and retail (8 percent). In 2009 the IT and BPO export industries employed about 2.2 million people. IT and BPO services outsourcing first started in India in the mid 1980s. The large, English speaking, low-cost workforce was the main attraction. The industry grew rapidly through the 1990s aided by the dot com boom and IT upgrades to prepare for potential Y2K bugs. The 2000s saw similar growth with work moving to India in down cycles to help companies cut costs and in boom times to capitalize on the readily available talent. cost advantage of offshore outsourcing1:3 The 2008-2009 global recession has had a negative impact on outsourcing growth in India, but the sector was experiencing a turn-around in 2010. Many US and European companies are still cautions about the speed or staying power of the 2010 economic recovery and thus are looking to maintain a low cost base in locations such as India. Offshore Outsourcing Model offers businesses multiple benefits in terms of Cost, Quality and Technical Excellence. Here are some of the noticeable benefits of Offshore Outsourcing Model: Realistic cost savings of about 40% as compared to onshore or domestic markets. (Source Ventoro Research Report) Quality Product Delivery by offshore companies using their expertise, extensive domain knowledge and implementation of Matured Execution Models in their processes. (Source: NASSCOM) Technical Excellence offered to clients by capitalizing on quality Human Resource, robust infrastructure and domain related Research and Development (R&D). Maximum time benefit by leveraging the time difference between service provider and service requester.

 Reduced project cycle by implementing globally recognized Project Management systems in their operational activities. Operational Flexibility by quickly adapting to changes in business requirements. Better finance management through clearly defined financial obligation and reduced cost. Improved competitiveness since offshore companies deliver quality services at affordable rates. Renewed focus on company strategic plans by outsourcing certain non-core business operations to offshore companies. Exposure to new markets by making alliances with offshore companies and taking business to unexplored areas.

The countrys domestic market for business process outsourcing (BPO) is projected to grow over 23 per cent to touch US$ 1.4 billion in 2011, says global research group Gartner. In 2010, the domestic BPO market was worth US$ 1.1 billion. The firm predicts that the domestic BPO market would reach US$ 1.69 billion in 2012 and increase to US$ 2.47 billion by 2014. With the first quarter of the new fiscal 2011-12 offering positive business outlook, hiring sentiments for sectors like IT, ITeS and telecom have risen by over 20 per cent, says a study by TeamLease Services Pvt. Ltd. As per the Employment Outlook Report for the period April-June 2011, released by TeamLease Services Pvt. Ltd., hiring intent from IT and ITeS was the highest in cities like New Delhi, Mumbai, Hyderabad and Pune. Certain crucial steps taken by the Indian government to propel the sector growth are:

Constitution of the Technical Advisory Group for Unique Projects (TAGUP) under the chairmanship of NandanNilekani. The Group would develop IT infrastructure in five key areas, which includes the New Pension System (NPS) and the Goods and Services Tax (GST) Setting up the National Taskforce on Information Technology and Software Development with the objective of framing a long term National IT Policy for the country. Enactment of the Information Technology Act, which provides a legal framework to facilitate electronic commerce and electronic transactions. Setting up of Software Technology Parks of India (STPIs) in 1991 for the promotion of software exports from the country.There are currently 51 STPI centres where apart from exemption from customs duty available for capital goods, there are also exemptions from service tax, excise duty, and rebate for payment of Central Sales Tax.

Plans to formulate Information Technology Investment Regions (ITIRs). These regions would be endowed with excellent infrastructure and would reap the benefits of co-siting, networking and greater efficiency through use of common infrastructure and support services.

India is gaining unprecedented global popularity and more and more companies are turning to skilled labor in India to provide web development services. Foreign clients have begun to acknowledge the technical expertise Indians possess in this field. Apart from being technically proficient, we also have fairly good English language skills that help us to communicate with foreign customers. Several multi national companies have acknowledged the quality of services theyve received from web development company India and more and more corporations are coming to us with their assignments. There are a number of reasons that go towards making India as a hub of web development services: 1. A well qualified work force that possesses technical skills along with the know-how is a great bonus that India offers to the world. 2. Foreign companies get the added benefit of lower operating costs as compared to other countries like America, Canada, UK and Australia. 3. A pro-IT government which supports the growth of IT in this country and formulates policies around it. High quality infrastructure like satellite communications and broadband internet which helps us to stay in touch with our customers, anytime and anywhere. NASSCOM said that the domestic IT-BPO revenues excluding hardware are expected to have grown at almost 16 per cent to reach US$ 17.35 billion in FY2011. Strong economic growth, rapid advancement in technology infrastructure, increasingly competitive Indian organisations, enhanced focus by the government and emergence of business models that help provide IT to new customer segments are the key drivers for increased technology adoption in India. The data centre services market in the country is forecast to grow at a compound annual growth rate (CAGR) of 22.7 per cent between 2009 and 2011, to touch close to US$ 2.2 billion by the end of 2011, according to research firm IDC India's report. The IDC India report stated that the overall India data centre services market in 2009 was estimated at US$ 1.39 billion. India will see its number of internet users triple to 237 million by 2015, from 81 million registered in September 2010, according to a report titled 'Internet's New bn', by the Boston Consulting Group (BCG). BCG said Internet penetration rate in India is expected to reach 19 per cent by 2015, up from the current seven per cent. Telecom Regulatory Authority of India (TRAI) is targeting a 10-fold increase in broadband subscribers to 100 million by 2014. The country has 10.29 million subscribers now. "We will have 100 million broadband subscribers by 2014," J.S. Sarma, Chairman, TRAI said at the fifth India Digital Summit 2010 organised by the Internet and Mobile Association of India.

The penetration of the internet in rural areas will see an all time high in 2011. In a survey conducted by IMRB for the Internet and Mobile Association of India (IAMAI), the total number of active internet users in rural area will rise by 98 per cent to touch 24 million by the end of 2011 from 12.1 million in December 2010. The survey said that the claimed internet user category is also set to grow by 96 per cent to reach 29.9 million by December 2011 from 15.2 million in December 2010. (Active users are those, who have used the internet at least once in the past one month. Claimed internet users are those, who have used the internet sometime but not necessarily in the past one month.) India's technology sector is bracing for a potential slowdown in growth after the historic U.S. credit downgrade over the weekend, which heightened fears of a double-dip recession in the largest outsourcing market and sparked a sell-off in IT stocks Monday. Indian technology companies earn more than 80% of their revenue from the U.S. and Europe. Coupled with a full-blown debt crisis looming over Europe, the Standard & Poor's downgrade of the U.S. debt rating is raising concerns of a return to the recessionary times of 2008, when the local software industry bore the brunt of lower spending by cash-strapped clients. The Bombay Stock Exchange technology index closed 4.3% lower Monday, leading the 1.8% downfall in the broader Sensex. The downgrade may lead to a slowdown in business in the immediate term,

MICRO LEVEL India will see its number of internet users triple to 237 mn from the current 81 mn by 2015, according to a report. In a study titled 'Internet's New bn', the Boston Consulting Group said Brazil, Russia, India, China and Indonesia (BRICI) will have more than 1.2 bn internet users by 2015 - well over three times the number of internet users in Japan and the US combined. The number of internet users worldwide is expected to touch 2.2 billion by 2013 and India is projected to have the third largest online population during the same time Real estate, healthcare ,retail, manufacturing, telecommunication [vendors] and other smes have understood importance of website and e-comerce. We are Ready to provide cost efficient package---domain name registration, web hosting and development, web designing[novel and SEO friendly]and maintenance. We will offer round the clock customer support

INDUSTRY DOMAINS MACRO AND MICRO LEVEL

MACRO BY PORTER 5 FORCE MODEL Intensity of rivalry In India, .com and .net domain names reached a total of 1.037 million domain name registrations. The total number of domain name registrations in India is estimated to be 2.15 million. These numbers are no doubt very modest when seen in the overall context India has 100 million Internet users4 and nearly 26 million micro, small and medium (MSME) businesses in India. All of these web pages are created by web designers who often have private intentions to put a profile of them in the internet but the majority have commercial intentions. There is an uncountable amount of agencies, self-employed or part-time web designers who all offer the same product for privates, small companies or whole enterprises just in India. so there is a constant entry of new competition into the market to cover the high demand of web pages. Potential customers have a transparent market where they can choose the company they want. They can compare prices and services very easily through the internet. Furthermore customers do not make decisions due to barriers they have in a market outside the internet. There are neither infrastructural obstacles nor problems to get information for them, so web designers work in an almost perfect competition. They have very low entry barriers because the threshold resources are only a computer and informatics knowledge. The exit barriers are low as well, because an agency does not have many employees or expensive goods. So they have neither social responsibility nor materialistic factors to lose. They have no core competences to distinguish them from others in their industry. Web designers do not have the choice to compete on price, each of them possess a very low market share. In an atomic competition a seller would immediately lose all buyers, if he changes the price. They cannot compete on the product, either. Although there are differences in the quality and the way of programming a web page, the result is always the same. Every web page uses the same standard and has almost the same buttons to standardize it for the users. There is no space for experimental programming. Those who try to launch an innovative web page lose users to other pages which maintain the standards. They have to compete in other ways. A principle of the web design industry is that you have to have a well optimized web page for the search engines like Google, Yahoo or MSN. In this environment the most important competence is that people find your business in the search engines and that your own web page presents a good overview of your work. Besides they have to fight for every new customer. A lot of time is not needed to create web pages but is needed to optimize their own one. It often takes half a working day to optimise a

web page for the Google results, because of the extremely high competition. More than 80 percent of the web designers do Benchmarking observing key competences like the corporate design, the success or the strategy. An intensive discussion of established operators suggests the possibility of efficient electronic processes to identify as a template for your own e-shop. Although there are many competitors with very few market shares, the intensity of rivalry is a weak force. The market is still growing and the financial risks are low. The number of Internet users worldwide is expected to reach 2.2 billion by 2013 and India is projected to have the third largest online population by that same time. As more users come online in the next two years, the Internet will become an even greater force, one that businesses cannot afford to neglect. This may perhaps provide the required impetus for more MSMEs in India to register their domain name and build their business identities online.

Bargaining power of buyers There are three groups of customers. The buyers of a web page could be private or business customers. But within the group of business customers you also have to differentiate between those who only want a company presentation on the internet and those who want a complete online shop with thousands of products. Non-commercial customers who want to use a web page for personal reasons like their own biography or their wedding do not have the power to negotiate with the agencies. Normally they have a lack of the right understanding of important technical aspects of a web page. They often do not compare different market players and their services or prices. Nevertheless agencies cannot charge a high price because in comparison to other online services a private web page is a low involvement product. It is not vital for the buyers to have this product so they can cancel the project easily, if the price rises too high. Most of the agencies say that customers can negotiate the price, but in fact there is only a small range. Instead of a professional wedding page they could create their own page in one of the social media portals like Facebook for uploading their stories and photos. Another solution for them is to use a home page construction set software which often costs less than 2000/-. The second group contains companies which only want a portal for presenting themselves like small factories, retailers, lawyers or associations. The product they want is more complex than the previous. The amount of separate pages is higher, they have higher demands on the design and the textures and their pages need regular updates. These business customers have a greater awareness of what they want, so they compare competitors and their prices. But their bargaining power is limited as well, because one third of the web designers have fixed prices for their

services and those who let you negotiate only give only small discounts. Business customers negotiate on service. They ask for different designs or technical support. In the service sector there are slight differences and agencies have more scope than self-employed web designers. Companies who wish to have an online shop or other complicated internet applications where the user interacts with the system have bargaining power. This is the high price segment and requires a lot of informatics knowledge and experience from the agency. The involvement is high because the customers have to have a good knowledge of what they want and need, as well as the agencys needs to convince the customer with their competences. A failure in this area means a loss of money. Agencies not only need informatics knowledge, but also marketing knowledge to sell the products to their customers online. In general it is said that the more complex the web page is, the more bargaining power the customer has. There is a transparent market without switching costs and brand identity for the customers and furthermore there is a buyer concentration in the same amount like a firm concentration. The higher the price of the web page and the higher the internet knowledge of the customers, the stronger is this force.

Bargaining power of suppliers Due to increasing demand-google, yahoo, altavista etc have decreased price of web space and maintenance8000-8500/- for unlimited for an year. Web designers sell virtual products, so the suppliers of them do not play a big role. In a classical business there are needs of raw materials and supplies, but in an online business you only have costs for office supplies, hard- and software, rent, office furniture, running costs and advertising. None of these costs are directly related to the product, so the production of a web page only has fixed costs (except personal costs). Most of these costs are insignificant in comparison with the benefits of the product. Suppliers do not have any power or influence on these costs because the ordered quantity of furniture, electricity or office supplies is as high as in private households. The rent neither is an important factor. A web design agency is not dependent on a certain location of its office like advertising agencies which need to be centrally located in a city in order to be findable since the acquisition of customers mostly works online. There are two types of important costs: On the one hand hard- and software like computers or new programs. Prices have decreased during the last ten years and there are many different sellers of computers. In addition to that agencies buy these things normally once every few years. The power of suppliers is limited because the different computers are substitutes of their selves and prices are transparent

On the other hand there are advertisement costs. These are the most significant costs in this sector. Web designers have to make a great effort to spend money for advertising in order to sell their products. The most common form of advertising for them is Google Adwords. Google is the most important tool for companies selling online, so they set the price and it has to be accepted. There are other possibilities to place adverts on the internet, but the whole market adopts Googles prices. Suppliers are not able to bargain with the web designers, because they do not spend enough money on them and normally it is easy to switch. Only Google advertisements represent a strong force. All the other suppliers are extremely weak.

Threat of new entrants A newcomer has the same costs in producing a web site as those who are established in this sector. As you can only decrease costs per piece slightly by using already existing templates, economies of scale do not play a role for a web designer. The cost advantage of experienced market players is only reflected in the existing soft- and hardware they have. The main resources for a web page are time and knowledge and the fix costs are low, therefore the possibility to cut costs is only given on a limited scale. For building up a new web design company there is only little tangible capital required. Most of the required capital is intangible for instance knowledge and experience. The knowledge is easily available in blogs and books, but the experience is needed to put it into practice. Another entry barrier is the brand identity which is an important factor. Customers do not have the same brand awareness like in other businesses, but if in the e-commerce business there is a need of a good online reputation, so you have to present references as well as evidence that you are able to optimize a customers web site in search engines. It is also a noteworthy obstacle that web designers who stay in the business for years already have good positions in the search engines and new entrants have to make a great effort to drive them out of these positions. The existing companies continue improving their positions as well, so the entrants are obliged to work much harder than the existing competition when they start up. Established firms have an advantage in the experience they gained. They already made the mistakes which new entrants still have to make. They have to contemplate a lot of small matters which can improve a customers web page. An advantage for new market player is that they do not have to expect retaliations from existing agencies. In a perfect competition the market share of each participant is so small that it is not worth fighting for. On the contrary. In the e-commerce you can only survive if everyone creates links to each other, thus a community was created on the internet where web designers help each other and give hints to new ones. The more you help for free, the more clients you can acquire,

because you are demonstrating competence and trust. It has become more difficult in the last two years to enter the web design industry, but nowadays it is still possible building up your own business without great capital efforts but with a great time and knowledge investment.

Threat of substitutes A substitute is a product with similar features to the initial product. In this context replacements for commercial web sites are other shops where you could buy the same product, books and magazines as well as institutions where you can spend leisure time. Actually, the model of the diversification steps is to amplify own product portfolio, but it is also useful to identify substitutes. But a web site is a relatively young product which lately has started to be a substitute for those products. The buyer propensity of the classical shops is decreasing and even inexperienced people have started to buy online. The turnover of e-commerce is not only increasing, but also the possibilities of online leisure time activities. Mostly everything from everyday life can be done online, and as a result a countermovement is emerging where people wish to have again a same experience. But this is just a niche movement which really cannot compete with a modern online shop. Another substitute of a web page is the mobile internet. Technology goes on and web designers have to keep their informatics knowledge up to date, because customers start demanding that a web page has to be accessible with their mobile or blackberry. So future online shopping will take place on the way. At the moment is not a real danger given that the mobile net drives the internet out of business. It has to be seen as a complement.

MOBILE INTERNET GROWTH:

The last substitute worth mentioning is the social platforms where companies and privates can present themselves without having their own web page. In the huge portals like Facebook or Twitter they can install an interactive page with communication features. Web designers have to convince their potential clients purchasing their own web page to meet their marketing objectives. The social platforms are only interesting for those who go without an online shop, hence for those who do not want to spend much money anyway. The switching costs are enormously high because they have to change from a free product to a paid product Conclusion According to the model of Porters five forces it is worthwhile entering web design industry. Most of the forces are weak and even the strong ones are not impossible hurdles. In figure below you see an overview of Porters five forces in the web design industry and the changes that occur if the complexity of the web site increases.

There is a great competition between the web designers, but there is also a growth which is enough to enter the industry. But within the last five years the rivalry situation has been stronger and the market growth lower. With technological advancements the entry barriers and the knowledge have grown. For a professional web site today you need more than informatics knowledge, but also a good marketing knowledge and the ability to negotiate with your customers. With the right strategy it is still possible to make a lot of money online. MICRO LEVEL Expertise over variety of platformsphp, .net, html, dhtml, ajax, flash, java etc. allows us to develop solutions that are not tied to a specific vendor or product. Offering low price20 mb space/.com domain/web hosting/web designing/logo design/2 months maintenance free --- Rs.2300/ Design expertise and experience on various deployment architectures Creative team of experts has a thorough understanding of the general culture and can deal with different subjects and can design logos With professional animators in team-- quality animations at competitive prices.

 Employee relation and organization cultureprovides value for every employees. Employees work as a family members. For a junior executive door of Top management remains always opened. TEAM DOMAINS

MISSION, ASPIRATION, PROPENSITY OF RISK to provide customers the best quality & professional looking website which improves their business development to achieve high level of by within

ABILITY EXECUTE CSFs

TO

CONNCTEDNESS ACROSS VALUE CHAIN

reference

building

Loyalty based programmefor existing customers

building brand image

Creative design-cms web development

each consumer-- a partner

customer delivering

satisfaction projects

stipulated time

change in technology

Timely

completion of

Technical training to my clients

customized web page

Financial condition is weaker than other big players

Proper maintenance after sales service

and

RSS feeds

Target Market Segmentation Strategy We will focus the majority of sales and marketing efforts toward attracting small businesses. The reason for this decision is simply the low amount of services available for a market with such a high demand. In addition to the very promising supply and demand ratio, it is also technically easier and less expensive to market to and attract small website projects than larger projects. Demographictype of company,[0-50 employees], revenue of company, number of clients of my customer, computer awareness, population Geographic- east India[rural and urban]and foreign market[offshore outsourcing] Behavioralconsumer need-type of needsfor information, inclusion of shopping cart, to make a presence, for networking, to intensify public interest, to serve customers etc. Choice of design , up gradation of webpage, Usage of website, influence of reference , use of media, to increase sales

Market Needs The need for small business Internet services has existed for several years. Small businesses and start-up businesses alike are migrating onto the Web at an astonishing rate and making their online presence a higher priority than in earlier years. We have noticed an enormous hole however in the small business services that are currently available. Without a doubt, there is a need for custom, high-end, dynamic services designed exclusively for small businesses. At this point, the majority of our competitors are offering services tailored around big business, to small business owners, or they are offering the exact opposite, onedimensional, "cookie cutter" type services. While every small business has now recognized the need for having a presence on the Internet, many do not know where to start, how much it will cost, or even how it will benefit their company. It has been our experience by talking to small business owners that the decision to take advantage of the Web is not a matter of 'if' but a matter of 'when.' Market Trends An important market trend right now is the one toward aggressive online and website marketing. Although many small businesses are still waiting to gain an Internet presence, those who already have are beginning to look for more options along the lines of improving their existing efforts.

We believe that in the upcoming years, small companies especially, will start to look for more ways to increase the traffic to their websites. Another important trend is the overall merging of daily business operations with the Internet and World Wide Web. Just as the majority of large companies have already started to use the Web to handle interoffice tasks, we believe that many smaller companies will begin to realize the time and money saving advantages to this strategy.

Market Growth Our target market is growing and expanding toward Internet and Web usage at an astonishing rate.

Service Business Analysis Web services and development companies vary greatly in the type of service they offer and the type of client they attract. We will be relatively unique in the fact that we are marketing exclusively to small businesses. This industry consists of many small Web development firms usually less than 10 years old that generally start out offering services to smaller companies but with long-term goals of catering to large, corporate Web accounts. COMPETITORS Main competitors of us are Miracle studios, lnsel, India designers, dimension india, Agts india, XigmaPro, web design company, mail mantra, century website, 32 bytes, brand mantra, ai future, websys, glosoft india, adisol, webkriti, Calcutta webdevelopoers, Taragana INC, websoft etc.

WHAT COMPETITORS ARE OFFERING 1.Digital fusion: Web site designing/portal management/E-commerce solutions Banners Logo Design Email News Letter

Corporate Presentations Web Hosting-linux and windows SEO/SEM

2.LNSEL: Web Designing Services: - Static Web Design (Table & Div Based) - Website Maintenance & Re-designing. - Flash based Web Design. - Blog Customization. - Cross Browser Web 2.0 based Web Design. - W3C Validated Web Design. - Web Design for Small Business Enterprise. - Website Template Design - Logo & Brochure Designing Web Application Development: - Portal Development - Content Management Systems (CMS) Development. - Community Portals - Custom Shopping Cart - Payment Gateways - Database Solutions - Ecommerce Development - E-Market Portal - Enterprise Portals - Cgi /Asp Script Installation Search Engine Optimization: - Organic Search Engine Optimization (SEO). - Pay-Per-Click (PPC) Consulting. - Google Sponsored Link Consulting. - Search Engine Marketing (SEM). - Email Marketing. - Article & Directory Submission. - Link Building.

- SEO Consulting. - SEO Copy writing. - Website Tracking Reports & Analysis. Web Hosting & Domain Name Registration: - Windows Hosting with POP3 e-mails Id. - Preinstalled ASP.net & Ajax. - Preinstalled CDO Mailer Component. - Mssql Database Support. - Catch-all Account, Anti Spam Filter & Email Forwarding Services - Database Solutions - 24/7 Server Monitoring Support. - Email Hosting. - Domain Registration for .com, .net, .org, .in, .info, .co.in, .biz, .net.in, .org.in. - Full user friendly Domain & Hosting Control Panel with DNS details 3.INDIA DESIGNERS:

Custom Web Design Tableless Div Based Design PSD 2 XHTML Conversion Web 2.0 Based Design Industry Based Design Website Re Design Web Design Portfolio Web Design Packages Client Testimonials Graphic Designing, Logo Designing, Web Development, SEO Services, E-commerce Development, Multimedia, Content Writing, Web Hosting

4. MIRACLE STUDIOS: Website Development Website Designing Brand Development Flash Development 3D Modeling and Animation Reputation Management Mobile Application Search Engine Marketing

Market Segmentation We will focus the majority of sales and marketing efforts toward attracting small businesses.

following types of businesses are excellent prospective clients:

Retailers- Grocery Stores Real Estate Farms Medicine Shops Clubs Jewelers Theaters Night Clubs Travel Agencies Law Firms Religious Organizations Restaurants

500 450 400 350 300 250 200 150 100 50 0 06-07 07-08 08-09 09-10 Size of retail industry in billlion $

YEAR

Indian retail sector Market size Organisedretail penetration Unorganisedretail market Growth rate Estimated investment by 2011 Retail density

USD 350 billion 5 8 % 12 million kiranas 15 20% USD 412 billion 6%

The real estate sector in India is on a growth path. The development in the real estate market encompasses growth in both commercial and residential spheres. Further, it has been estimated that there would be shortage of 26.53 million houses during the Eleventh Five Year Plan (200712), which provides a big investment opportunity, according to a report by the Technical Group on Estimation of Housing Shortage.

The above figure clearly states that the online travel industry accounted for 80% of the total ecommerce market in India in 2010. Although skewed since 2007, the non-travel industry is slowly capturing the market share percent by percent. The study states that e-Tailing is one the primary growth drivers and will remain so in the near future too. The growth in the e-commerce sales is a clear indicator of the growing number of people using Internet to make purchases. But again, the online purchases are limited to a certain category of buying like travel purchases, electronic items, online classifieds, buying movie tickets, food delivery, gaming subscriptions, etc According to the Bureau of Labor Statistics, healthcare was the second largest industry in 2008employing a staggering 14.3 million workers. By 2018, healthcare is expected to be the largest industry in the nation and with an anticipated 22% growth rate So we should focus on small enterprises of real-estate, travel agency, healthcare and of other lucrative market segment.

Our target market is separated into the four surrounding states listed below: We have chosen our target market from 4 perspective: 1.Distance from our office 2.Literacy rate---which has direct link with computer awareness 3.Population 4.Growth

Financial Year 2010

State Rank State/Union Territory

Population (2011) in 000 Region

Indian Rupee (Ten Million)

Per%age of capita US Dollar Total Income (Billion) GDP (INR)

6 13 14 16

West Bengal Bihar Orissa Jharkhand

East East East East

91,348 103,804 41,947 32,966

400,561 168,603 162,327 106,358

$84.57 $35.60 $34.27 $22.46

6.43% 2.71% 2.61% 1.71%

41,469 16,119 33,226 30,719

Literacy Rate In Indian State: Census 2011 State Literacy rate Literacy (2011 rate-Male Census) (2011 Census) 63.8% 73.5% 67.6% 78.5% 73.5% 82.4% 77.1% 82.7% Literacy rate-Female (2011 Census) 53.3% 56.2% 64.4% 71.2%

Bihar Jharkhand Orissa West Bengal

SEGMENT ATTRACTIVENESS EVALUATION MATRIX

SEGMENT WEIGHT ATTRACTIVENESS FACTOR EDUCATION AND AWARENESS ECONOMICAL POWER COMPETITIVE INTENSITY GROWTH 15 25 15 25 SEGMENT1 SEGMENT2 WEST BENGAL ORISSA SCORE TOTAL SCORE TOTAL 6 6 5 7 .9 1.5 .75 1.75 4.9 5 5 5 6 .75 1.25 .75 1.5 4.25 SEGMENT3 SEGMENT4 BIHAR JHARKHAND SCORE TOTAL SCORE TOTAL 3 4 6 3 .45 1.00 .9 .75 3.1 4 4.5 6 5 .6 1.125 .9 1.25 3.875

Jharkhand: 8% of our target area. West Bengal : Our office is located here.- 50% of our target area-among 4 states it has highest literacy and highest per capita income. Bihar : 14% of our target area. Orissa : 28% of our target area. It comes second from the perspective of per capita income and literacy rate both. Our business allows us to offer services to small companies, no matter their geographical location, and we plan to do so, eventually expanding outside our immediate area. The above areas are where we will market most heavily and expect to receive the majority of our work. We do expect to receive a small portion from outside this target area due to ad placement. Strategy and Implementation: We will market ourselves as an Internet and Web services organization devoted to offering highend services to small businesses exclusively. Our target customer will be the owners of any small or home-based company who are looking to implement their business into the Web.

Competitive Edge We have a valuable competitive edge over our local competitors based on the fact that we have streamlined all our services into the small business market. Through setting up several strategic partnerships with various Internet and Web-related companies, we will be able to offer our clients an affordable and efficient proprietary Web package that will meet all their related needs.

Marketing Strategy As the number of internet users are growing in a rapid pace. website designing, hosting industry is also growing. Revenue from web designing Industry (in USD Million) INDUSTRY Custom Content Development Multimedia / Web Design 2008 256 2012 542

Introductory Stage

Growth Stage

Maturity Stage

Decline Stage

2011

Total Market Sales

1995
Time

Market is in growth phase . And our company is a challenger. From the service point of view we will adopt service differentiation strategy by offering creative, dynamic webpage --

We will follow guerilla attack marketing strategy because we are operating in limited geographic areas and our prospects are small /medium enterprisesniche marketing strategy. Our firm has limited marketing, R&D and competencies. Successful marketing of Web services to small business owners depends on how you approach and follow-up every potential client. It is very important to deliver our marketing pitch in a clear, no non-sense method. Details of the Internet and Web are still relatively unknown by many small business owners, giving it the tendency to confuse and intimidate easily. Marketing Programs for promotions: We plan on doing a large scale marketing project including :

Radio advertising (red fm, radio mirchi, power fm). Ad placement in local trade publications . Billboard Ads to promote wide-spread name recognition. Service and Pricing Strategy

For most small business owners, cost, both residual and one-time are huge influences on the decisions they make regarding everyday operations of their company. Even though we offer 100% customized services and our pricing is based on an hourly fee, to make it easier and less confusing for the clients, we have established a packaged pricing system.

Budget Domain Website Package (2300/-): For simple, information based websites. Popular with companies who just need to gain an Internet presence.

Mid-Level Website Package (3000/-): Information based websites with a large amount of content. Popular with companies that have a large services/products list and/or want to implement more of their business into the Web.

Catalog Website Package (4000/-): Usually reserved for product-oriented websites that are e-commerce enabled. Popular with companies that have a desire to market heavily on the Internet or sell their products/services directly from the Web.

Website Hosting (free for first 2 months then 500/- per year ): Depending on the type and size of the website, the price for hosting can vary greatly. The average cost of hosting for most clients is 500/- per year.

Website Maintenance (500/-): If a client feels as though they will need their website updated or maintained on a regular basis, packages are available at a discount rate. Positioning Strategy Symbolic and Operational positioning:

Service differentiation----dynamic and CMS web development and creative web designing in a cost efficient package---PRICE QUALITY APPROACH Online free trial and providing customized servicesuperior after sales service--CUSTOMERS BENEFIT APPROACH Brand positioning: Our target client is part of a very specific demographic, for this reason, we market and promote our services in a direct and specifically targeted manner.

Print Ads:

We will advertise in eight separate area yellow page directories. All our ads will appear under either the Internet Services or Website Design headings. We will enlist companys name in a national business directory under the heading of Web Developers. In the near future we will feature ads in several area business

Direct Mail and Fax:

We will send out targeted bulk mail flyers promoting special offerings by our company. In the near future we will begin a new aggressive, ongoing bulk mail campaign to promote our Web development and hosting services.

Online free trial : we will provide online free trial for our clients for promotion. Social media marketing: We will use social networking sites to place our advertisement. Showcasing few case studies: Showcasing few case studies of firms that have found website being effective in improving their processesit will help to catch prospects Peer reference: Still people are not fully aware about benefit of website in Indian scenario, Word of mouth/peer references can be highly effective marketing techniques. Mass Media Ads:

We will begin advertising on a broader scale within the next six months. Radio spots will be continuously played during local area talk shows and news programs, this placement is intended to reach the highest percentage of our target client possible. Billboard ad placement will be the second mass media marketing campaign we will implement into our marketing efforts. Billboard ads will be intended as 'name recognition' advertising.

Educational Seminars:

Plan to conduct Internet and Web-related educational seminars on a variety of topic. In the near future, we will promote our services through these seminars.

Local Area Commerce Groups:

To promote our services and our name as a participant in the Web services industry, we will be joining many of the local area Chamber of Commerce groups and various other strategic partnership clubs.

Strategic Alliances Currently, we do not participate in any co-marketing or co-development efforts with outside companies. However, we have specific plans to establish several strategic partnership programs with area ISPs (Internet Service Providers) and computer consulting companies. These partnerships are intended to attract more sub-contracting work from potential competitors, in exchange for a commission to be paid for each lead and resulting new client.

CONCLUSION Given our experience and expertise in both commercial Web development and business-tobusiness sales, we believe we can offer a unique and superior service to small business owners, in comparison to what is currently available. The demand and growth rate for Web development and marketing services in the small business market is at an all time high and shows no sign of slowing anytime soon. Even more astonishing is the fact that very few Web development companies have taken advantage of the opportunity, as there are no dominating participants in this huge market. We believe the reason for this virtually untapped market is due to expensive project costs, the highest profit margins in Web development today are in servicing large- and medium-sized corporations. We have developed a system that dramatically reduces steep project costs and henceforth will allow us to offer the same high-end Web development services as larger companies receive at a much lower cost to the client.

BIBLIOGRAPHY

1. 2. 3. 4. 5. 6. 7.

censusindia.gov.in/ economictimes.indiatimes.com/ Internet in India in a hyper growth phase | Reuters http://www.mapsofindia.com/ http://www.marketresearch.com/ http://www.researchandmarkets.com/ E-riches 2.0: next-generation marketing strategies for making millions online By Scott C. Fox 8. Internet Marketing: Strategy, Implementation And Practice, 3/E -By Chaffey, Chaffey 9. Marketing Planning by Design: Systematic Planning for Successful Marketing ...By Ralf E. Strauss