Chapter I Introduction and Rationale to the Study
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Introduction to the Title:
“Importance of Digital Marketing in Start-Up Ecosystem” Social media media is one of the most cost effective effective ways to market your start-up start-up In addition to providing a platform for growing your !rand" it offers an easy medium for promotion and customer service opportunities Many start-ups fail !ecause they are una!le to reach their target market or due to poor marketing" even though they have a winning product #ccording to a survey conducted !y $% Insights" &'( start-ups start-up s fail due to poor marketing #s a start-up entrepreneur" person should !e ready and availa!le to the customers at right place and right time )he only efficient" effective and possi!le medium to reach the customers *+ hours a day" ' days a week" ,. days a year" is through digital marketing %ewakoofcom" apparels and mo!ile phone cover seller has !ecome India/s top most socially engaged !rand with &. million fan following on 0ace!ook 1ecently" they started selling their products using the medium of instant messaging application called 2hats#pp and now" they claim that &.( of their totals sales are influenced only !y 2hats#pp 3 )his is the power of digital marketing" which is nothing !ut the future of marketing In the recent recent years years"" it has !een prove proven n that that digit digital al mark marketi eting ng is mu much ch !ette !etterr and sophisticated way to communicate with target audience at an afforda!le cost Even it will provide start-ups the ample opportunity to compete with !ig players or large !usinesses in their markets
)here are num!er of reasons for start-up entrepreneurs to em!race digital marketing in their !usiness Some of them are4
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$ost-Effective 5 afforda!le way to reach target audience Increases your visi!ility
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Increases customer engagements
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$reates !rand awareness
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%oosts online conversion
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)racks 16I 71eturn on investment8
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Increases sales and leads
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Influences purchasing decisions
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In the last couple of years" start-up ecosystem in India and the world over has seen a surge in online ventures 2ith the growth of internet start-ups" online marketing has !ecome an integral part of an overall marketing strategy #ccording #ccording to the th e 0ederation of 2
Indian $ham!ers of $ommerce 5 Industry 70I$$I8" digital advertising spend in India grew at ,9 percent in *9&, as compared to *9&* 2hereas ): and print advertising grew !y &,;( and +( respectively respective ly compared to the year *9&*
Significance of the Study: Digital Marketing: um!re !rella lla term term for for the targ target eted ed"" measu measura ra!le !le"" and inter interact active ive Digital Digital marketing marketing is an um marketing of products or services using digital technologies to reach consumers )he key o!
ation 7SE68" search engine marketing 7SEM8 and link !uilding )he promo )he promoti tion on of produc products ts or !rands !rands via one or mo more re form formss of elec electro tronic nic media media 0or 0or e?ample" advertising mediums that might !e used as part of the digital marketing strategy of a !usiness could include promotional efforts made via the Internet" social media" mo!ile phones and electronic electron ic !ill!oards" as well as via v ia digital and television and radio channels channels
It encompasses things like4 • • •
6nline %anner #dvertisement Search Engine 6ptimisation Search Engine Marketing 3
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Social Media Marketing @ay @er $lick $ontent Marketing
Search Engine Optimisation (SEO: Search engine optimi>ation 7SE68 is the process of affecting the visi!ility of a we!site or a we! page in a search engineAs unpaid results - often referred to as Bnatural"B Borganic"B or BearnedB results #s an Internet marketing strategy" SE6 considers how search engines work" what people search for" the actual search terms or keywords typed into search engines and which search engines are preferred !y their targeted audience #ll ma
Search Engine Marketing (SEM: Search engine marketing 7SEM8 is a form of Internet marketing that involves the promotion promotion of we!sites !y increasing their visi!ility in search engine results pages 7SE1@s8 through optimi>ation and advertising SEM may use search engine optimi>ation 7SE68" which ad
Social Media Marketing (SMM: Social media marketing is the process of gaining we!site traffic or attention through social media sites Social media marketing marketing programs usually centre on efforts efforts to create content that attracts attention and encourages readers to share it across their social networks
)he resulting electronic word of mouth 7e2oM8 refers to any statement consumers share via the Internet Internet 7eg" we! sites" social networks" networks" instant messages" news feeds8 a!out an event" product" service" !rand or company 2hen the underlying message spreads from user to user and presuma!ly resonates !ecause it appears to come from a trusted" third party source" sourc e" as opposed oppos ed to the !rand or company itself" this form of marketing results resu lts in earned media rather than paid media
!ay !er Click (!!C:
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@ay per click 7@@$8" also called cost per click " is an internet advertising model used to direct traffic to we!sites" in which advertisers pay the pu!lisher 7typically a we!site owner8 when the ad is clicked It is defined simply as “the amount spent to get an advertisement clicked” 2ith search engines" advertisers typically !id on keyword phrases relevant to their target market $ontent sites commonly charge a fi?ed price per click rather than use a !idding system @@$ BdisplayB advertisements" also known as B!annerB ads" are shown on we! sites or search engine results with related content that have agreed to show ads
Content Marketing: Content marketing is any marketing that involves the creation and sharing of media and pu!lishing content in order to ac=uire and retain customers )his information can !e presented in a variety of formats" including news" video" white papers" e-!ooks" infographics" case studies" how-to guides" =uestion and answer articles" photos" etc
$ontent marketing/s purpose is to attract and retain customers !y consistently creating and curating relevant relevant and valua!le valua!le content with the intention of changing or enhancing consumer !ehaviour It is an ongoing on going process that is !est integrated into your overall marketing strategy" s trategy" and it focuses on owning media" not renting it
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%asically" content marketing is the art of communicating with your customers and prospects without selling It is non-interruption marketing Instead of pitching your products or services" you are delivering information that makes your !uyer more intelligent
Definition of Start "p: # Start "p is a !usiness in the form of a company" a partnership or temporary organi>ation designed to search for a repeata!le and scala!le !usiness model
Start Up companies can come in all forms and si>es Some of the critical tasks are to !uild a co-founder team to secure key skills and resources to !e a!le to conduct research and !uild a first Minimum via!le product 7M:@8 in order to validate" assess and develop the ideas or !usiness concepts in addition to opportunities to esta!lish further and deeper understanding on the ideas or !usiness concepts as well as their commercial potential
Definition of Start "p Ecosystem: # # Start "p ecosystem is formed !y people" start Ups in their various stages and various types of organi>ations in a location 7physical or virtual8" interacting as a system to create new Start Up companies )hese organi>ations can !e further divided into categories such as universities" funding organi>ations" support organi>ations 7like incu!ators" accelerators" coworking spaces etc8" research organi>ations" service provider organi>ations 7like legal" financial services etc8 and large corporations 0ostering entrepreneurship has !ecome a core component of economic development in cities and countries around the world )he predominant metaphor for fostering entrepreneurship as an economic development strategy is the “entrepreneurship ecosystem”
Contents of a Start#"p Ecosystem: & *
$omposition of the Start Up ecosystem ist of organi>ations andFor organi>ed activities with start-up activities
$% Composition of the Start "p ecosystem: #
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Entrepreneurship Education Start Ups at various stages
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Entrepreneurs
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Start-up team mem!ers
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#ngel investors
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Start Up mentors
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Start Up advisors
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6ther !usiness-oriented people
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@eople from other organi>ations with start-up activities
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Start Up events
&% 'ist of organiations and)or organied acti*ities +ith start#up acti*ities: # • •
universities advisory 5 mentoring organi>ations
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Start Up incu!ators
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Start Up accelerators
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$o-working spaces
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Service providers 7consulting" accounting" legal" etc8
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event organi>ers
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start-up competitions
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investor networks
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venture capital companies
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crowdfunding portals
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6ther funding providers 7loans" grants etc8
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start-up !logs 5 other !usiness media
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other facilitators
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Chapter II Industry)Sector !rofile 8
Information technology in India is an industry consisting of two maing the higher education sector especially in engineering and computer science IndiaAs cost competitiveness in providing I) services" which is appro?imately ,-+ times cheaper than the US" continues to !e its uni=ue selling proposition 7US@8 in the glo!al sourcing market )he Indian I) and I)eS industry is divided into four ma
Market Sie India" the fourth largest !ase for young !usinesses in the world and home to ,"999 tech startups" is set to increase its !ase to &&".99 tech start-ups !y *9*9" as per a report !y Hasscom and Jinnov Management $onsulting @vt td India/s internet economy is e?pected to touch 1s &9 trillion 7US &&* !illion8 !y *9&;" accounting for . per cent of the country/s gross domestic product 7CD@8" according to a report !y the %oston $onsulting Croup 7%$C8 and Internet and Mo!ile #ssociation of India
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7I#M#I8 In Decem!er *9&+" India/s internet user !ase reached ,99 million" the third largest in the world" while the num!er of social media users and smartphones grew to &99 million @u!lic cloud services revenue in India is e?pected to reach US ;,; million in *9&." growing !y ,, per cent year-on-year 7y-o-y8" as per a report !y Cartner Inc In yet another Cartner report" the pu!lic cloud market alone in the country was estimated to tre!le to US &G !illion !y *9&; from US ,; million in *9&+ )he increased internet penetration and rise of ecommerce are the main reasons for continued growth of the data centre co-location and hosting market in India
In*estments Indian I)As core competencies and strengths have placed it on the international canvas" attracting investments from ma
2ipro has won a US +99 million" multi-year I) infrastructure management contract from Swiss engineering giant #%%" making it the largest deal for the technology company
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)ech Mahindra has signed a definitive agreement to ac=uire Ceneva-!ased S60CEH Koldings )he ac=uisition is e?pected to strengthen )ech Mahindra/s presence in the !anking segment
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)ata $onsultancy Services 7)$S8 plans to set up offshore development centres in India for Lapanese clients in a !id to !oost the companyAs margin in the market
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1eliance is !uilding a .9"999 s=uare feet 7s= ft8 data centre in Indiaits &9th data centre in the countrywith a com!ined capacity of a!out & million s= ft and an overall investment of US *99 million
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Intel $orp plans to invest a!out US * million in & technology companies" working on weara!le" data analytics and the Internet of )hings 7Io)8" in *9&. through its investment arm Intel $apital )he Indian Io) industry is e?pected !e worth US &. !illion and to connect *; !illion devices to the internet !y *9*9
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Neiretsu 0orum" a glo!al angel investor network" has forayed into India !y opening a chapter in $hennai 2ith this" the Silicon :alley-!ased network will have ,+ chapters across three continents
,o*ernment Initiati*es )he adoption of key technologies across sectors spurred !y the ADigital India InitiativeA could help !oost IndiaAs gross domestic product 7CD@8 !y US ..9 !illion to US & trillion !y *9*." as per research firm McNinsey Some of the ma
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India and the United States 7US8 have agreed to
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India and Lapan held a Loint 2orking Croup conference for $omprehensive
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$ooperation 0ramework for I$) India also offered Lapan to manufacture I$) e=uipment in India
)he Covernment of )elangana !egan construction of a technology incu!ator in
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Kydera!addu!!ed )-Ku!to reposition the city as a technology destination )he state government is initially investing 1s ,. crore 7US .+ million8 to set up a 9"999 s= ft space" la!elled the largest start-up incu!ator in the county" at the campus of International Institute of Information )echnology-Kydera!ad 7III)-K8 6nce completed" the pro
%engaluru has received US * !illion in venture capital 7:$8 investments in *9&+"
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making it the fifth largest recipient glo!ally during the year" an indication of the growing vi!rancy of its start-up ecosystem #mong countries" India received the third highest :$ funding worth US + !illion
Ma-or players )he leading companies in the information technology industry of India are • • • • • • • • • • • • • • • •
2ipro td" #ditya )echnologies" HII) td" @atni $omputer Systems 7@8 td" @olaris Software a! td" " K$ Infosystems td" Ke?aware )echnologies td" Ifle? Solutions td" $M$ td" Igate Clo!al Solutions td" K$ $orporation td" Infosys )echnologies td" Satyam $omputer Services td" arsen 5 )ou!ro td" )ata $onsultancy Services" )ata Infotech td Mastek td
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Entrepreneurship has !een one of the most popular su!ation and li!erali>ation has introduced two sets of changes 3the first is the o!vious introduction of dynamism into the system through the process of glo!ali>ation 2hile new opportunities have opened up in international markets" the !ar has !een raised in the domestic market through international products and services !eing availa!le to Indian consumers )he domestic market will no longer !e lower risk It will force Indian entrepreneurs to regain their spirit of innovation )he more su!tle change is social4 increase in literacy levels" greater consumer awareness" enhanced media penetration" and !asic changes in family structure Neeping with the demands for greater innovation in Indian enterprises" several have fundamentally redesigned structures )here are no easy answers to how the rate of changes in entrepreneurial activity can !e increased Entrepreneurship e?tends !eyond a conventional !usiness and economic perspective $reativity" innovation and !ringing a vision to life are as much entrepreneurial activities in a social sphere and have the same impact on society as does the !usiness entrepreneurship to the economy Indians have always !een entrepreneurs4 we have all heard a!out !usinesses growing from father to son or the rags to riches story in conventional industry %ut recently there has !een a shift in the nature of Indian entrepreneurship It has come to stand for something that is out of the !o? and glo!ally oriented )he concept of entrepreneurship is a comple? phenomenon %roadly it relates to entrepreneur" his vision and its implementation )he key player is the entrepreneur Entrepreneurship refers to the process of action an entrepreneur 7person8 undertakes to esta!lish hisF her enterprise It is a creative and innovative response to the environment 6ne of the =ualities of entrepreneurship is the a!ility to discover an investment opportunity and to organi>e an enterprise" there!y contri!uting the real economic growth It involves taking of risks and making necessary investments under conditions of uncertainty and innovating" planning and taking decisions so as to increase production in agriculture" industry and services
Current scenario of Entrepreneurship in India #ccording to the Clo!al Entrepreneurship Monitor report" India/s Kigh-Crowth E?pectation Early-Stage Entrepreneurship 7KE#8 rate is only one-fifth of that of $hina 0urther" among medium and low income countries" while $hina/s nascent and new entrepreneurs appear to !e the most growth-oriented" with more than &9 per cent of them anticipating high growth Early-stage entrepreneurial activity in India is marked !y low levels of growth e?pectation 13
)his is despite the e?tremely high levels of potential entrepreneurial activity as perceived !y the non-entrepreneurially active population in the country 2hile data on entrepreneurship is hard to come !y" the following num!ers are telling #ccording to the HSS *nd round" in rural India" almost .9 per cent of all workers are selfemployed 3 .' per cent among males and nearly * per cent among females" while the corresponding figures in ur!an India are +* for males and ++ for females )he HSS6 defines a self-employed person as one who has worked in household enterprises as own-account workerP worked in household enterprises as an employer or worked in household enterprises as helper )he essential feature of the self-employed is that they have autonomy 7decide how" where and when to produce8 and economic independence 7in respect of choice of market" scale of operation and finance8 for carrying out their operation #ccording to the .th Economic $ensus conducted !y the $entral Statistical 6rganisation 7$S68" there are +&;, million esta!lishments in the country engaged in different economic activities other than crop production and plantation 0ive states vi> )amil Hadu 7&99 per cent8" Maharashtra 7&9&9 per cent8" 2est %engal 7&99. per cent8" Uttar @radesh 7G& per cent8 and #ndhra @radesh 7G. per cent8 together account for a!out .9 percent of the total esta!lishments in the country )he same five states also have the com!ined share of a!out .9 per cent of total employment
0inance4 #ccess to credit is considered to !e one of the key pro!lems faced !y entrepreneurs in India )his pro!lem is particularly acute at the start-up stage" where !ank finance is hard to o!tain Despite new sources of finance such as venture capital" angel funding and private e=uity !ecoming increasingly popular" institutional finance is still not a!le to meet the current entrepreneurial demands 1egulation and governance4 #n entrepreneur has to deal with a host of regulatory and compliance issues )hese include registering one/s !usiness" o!taining government clearances and licenses" paying ta?es and complying with la!our regulations $um!ersome paperwork" long delays and red tapism involved in such transactions create unnecessary !urdens for entrepreneurs" constraining their productivity and their a!ility to do !usiness #s seen in the Doing %usiness *99; rankings" India performs poorly in these indicators # study investigating the effect of regulation on entrepreneurship using the CEM dataset shows India to !e having one of the worst regulatory indices Moreover" lack of clarity on information relating to legal and procedural aspects of starting an enterprise" as well as those relating to clearances" licenses and government schemes further aggravates the pro!lem
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Chapter III Organisational profile and .usiness O*er*ie+
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'EMO/ IDE0S !*t% 'td% Mission and 1ision of the Company: Mission: 6ur Mission is to nurture entrepreneurs and start-ups pan India level !y providing them right kind of mentoring and funding opportunities
1ision: 2e aim to !uild a conducive ecosystem for new start-ups and entrepreneurs in )ier II cities of India and making a contri!ution towards nation development
Company !rofile:
emon Ideas is a start-up mentorship organi>ation dedicated towards fostering the start-up ecosystem in India" we at emon Ideas are primarily aiming towards !uilding conducive ecosystem for new ventures in )ier II cities of India 6ur work at emon Ideas includes mentoring" innovation and incu!ationF$o-working for start-ups in their early stages 2e are also active in the space of talent innovations where we hunt for promising ideas and teams for start-ups 2e aim to nurture &999 entrepreneurs and &99 start-ups over ne?t five years emon has colla!orated with who/s who in start-up ecosystem to !ring the !est support for entrepreneurs in smaller towns as part of its ecosystem partnerships emon has a strong network of resident mentors" domain mentors and advisors )hese e?perienced entrepreneurs from different industries provide right e?periential guidance and mentorship to the start-up teams at emon
Registered 0ddress: emon Ideas am!ent I) @ark 7Clo!alogic8 Karihar Hagar" %esa" Hagpur 3 ++99*' Maharashtra" India
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Composition of .oard: Dr% Ra-ee* Roy: # Chief ,ardener Mr% 1ikas Ra-put: # Dean 2 !rogram Mr% Deepak Menaria: # Chair # E3periential 'earning Mr% San-ay 0rora: # Chair # Entrepreneurial Marketing Dr% Te-inder Singh Ra+al: # Chair # .usiness 4inance Mr% /itin ,u-arathi: # Chair 2 Technology Dr% !ra5odh: # Chair # Self 6 !sychology Mr% Soura* Muker-i: # Chair # Out5ound !rogram Mr% Mukesh 0shar: # Chair # .eha*iour Science Mrs% !oonam Menaria: # Self 0+areness Mentor Mr% !ra*een 7anda: # Technology Mentor
Ma-or Customers: 8anta Choupal Super !andit Ink Tantra 7hichadi+ala College /ucleus Disco*er Dollar 9our1ision Orange/orange iplogik
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7a5adi+ala
4unctional O*er*ie+: emon Ideas operates its services head=uartered from Hagpur )hey are Start-up Incu!ator # start-up incu!ator in !usiness speak is a company that helps new and start-up companies to develop !y providing services such as management training or office space emon Ideas is moving from !eing Start-up Incu!ator to Start-up #ccelerator Start-up #ccelerator also known as Seed accelerators are fi?ed-term" cohort-!ased programs" that include mentorship and educational components and culminate in a pu!lic pitch event or demo day 2hile traditional !usiness incu!ators are often government-funded" generally take no e=uity" and focus on !iotech" medical technology" clean tech or product-centric companies" accelerators can !e either privately or pu!licly funded and focus on a wide range of industries )he main differences !etween !usiness incu!ators and accelerators are4 & )he application process is open to anyone" !ut highly competitive $om!inator and )echStars have application acceptance rates !etween &( and ,( * # seed investment in the start-ups is usually made" in e?change for e=uity )ypically" the investment is !etween US*9"999 and US.9"999 7or Q&9"999 and Q.9"999 in Europe8 , )he focus is on small teams" not on individual founders #ccelerators consider that one person is insufficient to handle all the work associated with a start-up + )he start-ups must BgraduateB !y a given deadline" typically after , months During this time" they receive intensive mentoring and training" and they are e?pected to iterate rapidly :irtually all accelerators end their programs with a BDemo DayB" where the start-ups present to investors . Start-ups are accepted and supported in cohort !atches or classes 7the accelerator isnAt an on-demand resource8 )he peer support and feed!ack that the classes provide is an important advantage If the accelerator doesnAt offer a common workspace" the teams will meet periodically
Marketing )he marketing team at emon Ideas is responsi!le for creating a complete marketing e?perience that helps ma?imi>e revenue growth and profita!ility )he team colla!orates to conceptuali>e" develop and deploy products" services and platforms to enhance !usiness performance )his team makes sound marketing decisions around product lifecycle and form future strategies to !uild a loyal consumer !ase Some key characteristics that define the marketing team at emon Ideas are !eing fast paced and result oriented
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Digital Marketing )he digital team at emon Ideas plays a very important role as it is a start-up Social media 70ace!ook" )witter" %log and inkedIn8 advertises locally and glo!ally overall $reatives" success stories are !eing also shared to spread the start-up mantra to people
Chapter I1 Outline of !ro5lem)Task "ndertaken
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In India" there is still a lot to develop in the case of services sectors 6ur @rime Minister ma> in environment is companies need today Digital Marketing is other important factor for Digitisation of the country )oday" most of the start-ups and other companies makes the most out of digital media Social media usage is most preferred tool used !y every company as the reach of the social media is very fast )ask undertaken was to find out how start-ups utili>e their resources so as to pitch itself in the society @arameters were4 &8 *8 ,8 +8 .8
Documented Strategy for the plan Marketing !udget provided for digital marketing #nalytical tools for measuring success Media 7out of paid media" earned media" owned media8 used for advertising Digital Marketing !asics
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Chapter 1 'iterature Re*ie+
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Digital Marketing: Digital marketing is an um!rella term for the targeted" measura!le" and interactive marketing of products or services using digital technologies to reach and convert leads into customers)he key o!
Digital marketing concepts and practice are evolving tremendously among several industries" especially !y the leading companies among each industry utili>ing the mass reach of digital tools and social media platforms" !enefiting from the possi!ility to create individually tailored approach that can achieved at a very productive cost Digital marketing activities are search engine optimi>ation 7SE68" search engine marketing 7SEM8 " content marketing" influencer marketing" content automation" campaign marketing" and e-commerce marketing" social media marketing" e-mail direct marketing" display advertising" e3!ooks" optical disks and games" and any other form of digital media It also e?tends to non-Internet channels that provide digital media" such as mo!ile phones 7SMS and MMS8" call!ack and on-hold mo!ile ring tones )he term Adigital marketingA was first used in the &GG9s In the *999s and the *9&9s" digital marketing !ecame more sophisticated as an effective way to create a relationship with the consumer that has depth and relevance 2hile the term Adigital marketingA may not have !een used until the &GG9s" digital marketing itself has roots to the mid-&G;9s when the Soft#d Croup" now $hannelHet developed advertising campaigns for several maines and receive in return floppy disks that contained multimedia content promoting various cars and offering free test drives )he rapid evolution of digital media has created new opportunities and avenues for advertising and marketing 0ueled !y the proliferation of devices to access digital media" this has led to the e?ponential growth of digital advertising In *9&* and *9&, statistics showed digital marketing remained a growing field Digital media growth is estimated at +. trillion online ads served annually with digital media spend at +;( growth in *9&9 #n increasing portion of advertising stems from !usinesses employing 6nline %ehavioural #dvertising 76%#8 to tailor advertising for Internet users )hough an innovative resource" 6%# raises concern with regards to consumer privacy and data protection Such implications are important considerations for responsi!le communications Digital marketing is often referred to as Aonline marketingA" Ainternet marketingA or Awe! marketingA )he term Adigital marketingA has grown in popularity over time" particularly in certain countries In the US# Aonline marketingA is still prevalent" in Italy is referred as Awe! marketingA !ut in the UN and worldwide" Adigital marketingA has !ecome the most common term" especially after the year *9&,
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#s digital marketing is dependent on technology which is ever-evolving and fast-changing" the same features should !e e?pected from digital marketing developments and strategies )his portion is an attempt to =ualify or segregate the nota!le highlights e?isting and !eing used as of press time & Segmentation 4 more focus has !een placed on segmentation within digital marketing" in order to target specific markets in !oth !usiness to !usiness and !usiness to consumer sectors * Influencer Marketing 4 Important nodes are identified within related communities" known as influencers )his is !ecoming an important concept in digital targeting It is possi!le to reach influencers via paid advertising" such as 0ace!ook #dvertising or Coogle #dwords campaigns" or through sophisticated s$1M 7social customer relationship management8 software" such as S#@ $+$" Microsoft Dynamics" Sage $1M and Salesforce $1M Many universities now focus" at Masters level" on engagement strategies for influencers )o summari>e" @ull digital marketing is characteri>ed !y consumers actively seeking marketing content while @ush digital marketing occurs when marketers send messages without that content !eing actively sought !y the recipients , Online .eha*ioural 0d*ertising4 6nline %ehavioural #dvertising refers to the practice of collecting information a!out a user/s online activity over time" “on a particular device and across different" unrelated we!sites" in order to deliver advertisements tailored to that user/s interests and preferences + Colla5orati*e En*ironment4 # colla!orative environment can !e set up !etween the organi>ation" the technology service provider" and the digital agencies to optimi>e effort" resource sharing" reusa!ility and communications #n important consideration today while deciding on strategy is that the digital tools have democrati>ed the promotional landscape
Start#"p: Start "p is a !usiness in the form of a company" a partnership or temporary organi>ation designed to search for a repeata!le and scala!le !usiness model # company that is in the first stage of its operations )hese companies are often initially !ank rolled !y their entrepreneurial founders as they attempt to capitali>e on developing a product or service for which they !elieve there is a demand Due to limited revenue or high costs" most of these small scale operations are not sustaina!le in the long term without additional funding from venture capitalists
# start#up incu5ator is a company that helps new and Start Up companies to develop !y providing services such as management training or office space %usiness incu!ators differ from research and technology parks in their dedication to Start Up and early-stage companies 1esearch and technology parks" on the other hand" tend to !e large-scale pro
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)he incu!ation process4 & Kelp with !usiness !asics * Hetworking activities ,
Marketing assistance
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Kigh-speed Internet access
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Kelp with accountingFfinancial management
#ccess to !ank loans" loan funds and guarantee programs
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Kelp with presentation skills
;
inks to higher education resources
G
inks to strategic partners
&9 #ccess to angel investors or venture capital && $omprehensive !usiness training programs &* #dvisory !oards and mentors &, Management team identification &+ Kelp with !usiness eti=uette &. )echnology commerciali>ation assistance & Kelp with regulatory compliance
Start Up accelerators are fi?ed-term" cohort-!ased programs" that include mentorship and educational components and culminate in a pu!lic pitch event or demo day 2hile traditional !usiness incu!ators are often government-funded" generally take no e=uity" and focus on !iotech" medical technology" clean tech or product-centric companies" accelerators can !e either privately or pu!licly funded and focus on a wide range of industries # Start Up accelerator is !uilt to foster rapid growth of its portfolio companies ItAs a manmade perfect storm of mentorship" access to technology" office space and an innovative community" packed into a short time frame Essentially" the function of an accelerator is to turn the art of starting a company into a program that can !e repeated" churning out valua!le companies as if on an assem!ly line 2hile each accelerator has nuances" programs tend to share several traits4 Start Ups apply to !e part of a program lasting a few months" in which they o!tain mentorship" office space and funding" usually in e?change for company stock )he accelerator program hopes to ena!le e?citing new !usinesses and of course get a return on the investment )he primary value to the entrepreneur is derived from the mentoring" connections" and the recognition of !eing chosen to !e a part of the accelerator )he !usiness model is !ased on generating venture style returns" not rent" or fees for services
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Seed accelerators do not necessarily need to include a physical space" !ut many do )he process that Start Ups go through in the accelerator can !e separated into five distinct phases4 awareness" application" program" demo day" post demo day 2ith the esta!lishment of information technology" each and every activity of our daily life in personal and professional aspects has seen a massive change and the role of digital media is simply spectacular Many people operate !usinesses worldwide on small scale and large scales Kowever" when running a !usiness offline" you can e?perience only moderate success 2hen it comes to online" you can find it e?panding largely in =uick time #nd" for this digital marketing is the key #ny !usiness can reach to millions of people through digital media #n optimi>ed we!site along with marketing activities can target the customers and rive in more traffic to the we!site ou can attract more customers who are interested in your products or services through marketing )he key facts to start up and e?pand your !usiness are as follows4
•
)arget your customers Engage yourselves in online communities
•
$onverse with audience
•
Educate customers a!out products
•
6pen up new ways to e?pand !usiness
•
# powerful marketing strategy is crucial for any !usiness 2hen it comes to setting up an online !usiness" you o!viously face huge competition 2hen you wish to ened !usiness plan and marketing strategy ou need to develop a good we!site" have a marketing and advertising campaign and populari>e your !rand )he key elements for any digital marketing strategy are"
•
2e!site design 0unctionality of the we!site
•
@@$ campaigns
•
Social media advertising
•
:ideo marketing
•
Search engine optimi>ation
•
Social media marketing
•
Email marketing
•
2e!site is the !asic thing to have a good start up Design your we!site in an attractive and informative way such that any visitor who views your we!site gets to know what your !usiness is a!out )he we!site content and functionality also should !e user friendly Marketing campaigns are smarter ways of attracting target customers Increase the !rand awareness and increase the online visi!ility of your we!site Search engine optimi>ation helps you !ring natural traffic to your we!site 2ith proper skills and knowledge in SE6 you can find a massive difference in the sales of your products in 25
=uick time Marketing activities like !logging" social !ookmarking" posting newsletters and classifieds" forum participations" article marketing and other social networking activities help in generating !ack links to the we!site Using top notch digital marketing tools is a good and must activity for marketers 6nline !usiness has !ecome highly competitive with people opening up !usinesses in all industry verticals )o gain online presence and increase !rand awareness digital marketing is mandatory It is hard to imagine a successful !usiness without digital marketing today %e it any industry vertical" small or large scale !usiness" the we!site has to !e designed in the right way and marketing activities should !e powerful to target online audience In the late &GG9s" the most common type of Start-up $ompany was a dotcom :enture capital was e?tremely easy to o!tain during that time due to a fren>y among investors to speculate on the emergence of these new types of !usinesses Unfortunately" most of these internet start-ups eventually went !ust due to maoncom and internet auction portal e%ay are e?amples of such companies )o confirm the commitment of the founding team" their contri!ution and ownership rights for the start-up and to capture the intellectual properties !eing generated for the start-up" the co-founders should seek to agree and e?ecute a ShareholdersA agreement 7SK#8 early on %usiness models for start-ups are generally found via a !ottom-up or top-down approach
# company may cease to !e a start-up as it passes various milestones" such as !ecoming pu!licly traded in an I@6" or ceasing to e?ist as an independent entity via a merger or ac=uisition $ompanies may also fail and cease to operate altogether )he si>e and maturity of the start-up ecosystem where the start-up is !orn and grow" have clear impact on the volume and success of the start-ups Investors are generally most attracted to those new companies distinguished !y their strong co-founding team" riskFreward profile and scala!ility )hat is" they have lower !ootstrapping costs" higher risk" and higher potential return on investment Successful start-ups are typically more scala!le than an esta!lished !usiness" in the sense that they have the potential to grow rapidly with limited investment of capital" la!or or land )iming has often !een the single most important factor for !iggest start-up successes" while at the same time itAs identified to !e one of the hardest things to master !y many serial entrepreneurs and investors Start-ups encounter several uni=ue options for funding :enture capital firms and angel investors may help start-up companies !egin operations" e?changing seed money for an e=uity stake In practice though" many start-ups are initially funded !y the founders themselves 0actoring is another option" though not uni=ue to start-ups 6ther funding opportunities include various forms of crowdfunding" for e?ample e=uity crowdfunding
26
Start#up 5usiness partnering Start-ups usually need to form partnerships with other firms to ena!le their !usiness model )o !ecome attractive to other !usinesses start-ups need to align their internal features" such as management style and products with the market situation In their *9&, study Nask and inton develop two ideal profiles" or also known as configurations or archetypes" for start-ups commerciali>ing inventions )he Inheritor profile calls for management style that is not too entrepreneurial 7more conservative8 and the start-up should have an incremental invention 7!uilding on a previous standard8 )his profile is set out to !e more successful 7in finding a !usiness partner8 in a market that has a dominant design 7a clear standard is applied in this market8 In contrast to this profile is the Originator which has a management style that is highly entrepreneurial and have a radical invention 7totally new standard8 )his profile is set out to !e more successful 7in finding a !usiness partner8 in a market that does not have a dominant design 7esta!lished standard8
Chapter 1I O5-ecti*es and Scope of !ro-ect 27
O5-ecti*e of the !ro-ect:
6!
!rimary O5-ecti*e:
)o create awareness amongst the people a!out Start-up culture4 emon Ideas !eing a start-up itself has !ecome a word of mouth for most of the Hagpur city )o create awareness a!out Start-ups was one of the tasks to get into the depth of the pro
)o know the num!er of start-ups using digital marketing4 Digital Marketing" its importance" its usage was another task so as to segregate the digital marketing start-ups from other start-ups )his would !e a !eneficial tool for revenue generation purpose
)o study the role of digital marketing and !uilding !rand awareness for the start-ups4 Start-up is the need of the hour in today/s world and especially in India where digitisation has reached towards highest level So" presence of the start-up culture is to !e known so as to conduct the survey in the field
Secondary O5-ecti*e: •
)o analyse the data collected through the survey which was floated to the start-ups in Hagpur $ity and near!y $ities
•
)o find out how many start-ups use digital marketing
•
)o study the effectiveness of digital marketing as a tool for increasing revenue
Scope of the !ro-ect: •
)his pro
: )he scope of pro
'ocation
: ocation for the pro
0rea under Study :
)he start-ups in Hagpur and other near!y cities were under
study
Chapter 1II Research Methodology
29
Research 3
1esearch is common parlance refers to a search for knowledge )he word research is composed of two sylla!les" re and search. ‘re’ is a prefi? meaning again" anew or over again" O search’ is a ver! meaning to e?amine closely and carefully" to test and try" or to pro!e )ogether they form a noun descri!ing a careful" systematic" patient study and investigation in some field of knowledge" undertaken to esta!lish facts or principles 1esearch is a structured en=uiry that utili>es accepta!le scientific methodology to solve pro!lems and create new knowledge that is generally applica!le Scientific methods consist of systematic o!servation" classification and interpretation of data Definition )he #dvanced earner/s Dictionary of $urrent English lays down the meaning of research as “# careful investigation or in=uiry especially through search for new facts in any !ranch of knowledge” #ccording to 1edman 5 Moray “# systemati>ed effort to gain new knowledge”
Research Methodology#
It is the way to systematically solve the research pro!lem It may !e understood as a science of studying how research is done scientifically In it we study the various steps that are generally adopted !y a researcher in studying his research pro!lem along with the logic !ehind them
Characteristics of Research:
1esearch is a process of collecting" analysing and interpreting information to answer =uestions %ut to =ualify as research" the process must have certain characteristics such as • • • • • •
$ontrolled 1igorous Systematic :alid and :erifia!le Empirical $ritical
Controlled - in real life there are many factors that affect an outcome )he concept of control
implies that" in e?ploring causality in relation to two varia!les 7factors8" you set up your study in a way that minimi>es the effects of other factors affecting the relationship )his can !e achieved to a large e?tent in the physical sciences 7cookery" !akery8" as most of the research 30
is done in a la!oratory Kowever" in the social sciences 7Kospitality and )ourism8 it is e?tremely difficult as research is carried out on issues related to human !eings living in society" where such controls are not possi!le )herefore in Kospitality and )ourism" as you cannot control e?ternal factors" you attempt to =uantify their impact
Rigorous - you must !e scrupulous in ensuring that the procedures followed to find answers
to =uestions are relevant" appropriate and
Systematic - this implies that the procedure adopted to undertake an investigation follow a
certain logical se=uence )he different steps cannot !e taken in a hapha>ard way Some procedures must follow others
1alid and *erifia5le - this concept implies that whatever you conclude on the !asis of your
findings is correct and can !e verified !y you and others
Empirical - this means that any conclusions drawn are !ased upon hard evidence gathered
from information collected from real life e?periences or o!servations
Critical - critical scrutiny of the procedures used and the methods employed is crucial to a
research en=uiry )he process of investigation must !e foolproof and free from draw!acks )he process adopted and the procedures used must !e a!le to withstand critical scrutiny 0or a process to !e called research" it is imperative that it has the a!ove characteristics
Types of research Design:#
1esearch can !e classified from three perspectives4 & #pplication of research study * 6!
31
0pplication of research study:
0rom the point of view of application" there are two !road categories of research4 • •
@ure research #pplied research
!ure research involves developing and testing theories and hypotheses that are intellectually
challenging to the researcher !ut may or may not have practical application at the present time or in the future )he knowledge produced through pure research is sought in order to add to the e?isting !ody of research methods
0pplied research is done to solve specific" practical =uestionsP for policy formulation"
administration and understanding of a phenomenon It can !e e?ploratory" !ut is usually descriptive It is almost always done on the !asis of !asic research #pplied research can !e carried out !y academic or industrial institutions 6ften" an academic institution such as a university will have a specific applied research program funded !y an industrial partner interested in that program
O5-ecti*es in undertaking the research:
0rom the viewpoint of o!
Descriptive $orrelation E?planatory E?ploratory
Descripti*e research attempts to descri!e systematically a situation" pro!lem" phenomenon"
service or programme" or provides information a!out " say" living condition of a community" or descri!es attitudes towards an issue
Correlation research attempts to discover or esta!lish the e?istence of a relationshipF
interdependence !etween two or more aspects of a situation
E3planatory research attempts to clarify why and how there is a relationship !etween two
or more aspects of a situation or phenomenon
32
E3ploratory research is undertaken to e?plore an area where little is known or to investigate
the possi!ilities of undertaking a particular research study 7feasi!ility studyF pilot study8
In practice most studies are a com!ination of the first three categories
In;uiry mode employed:
0rom the process adopted to find answer to research =uestions 3 the two approaches are4 - Structured approach - Unstructured approach
Structured approach:
)he structured approach to in=uiry is usually classified as =uantitative research Kere everything that forms the research process- o!
"nstructured approach:
)he unstructured approach to in=uiry is usually classified as =ualitative research )his approach allows fle?i!ility in all aspects of the research process
Sampling#
Sampling may !e defined as the selection of some part of an aggregate or totality on the !asis of which a
Types of sampling: !ro5a5ility Sampling - # pro!a!ility sampling is one in which every unit in the population
has a chance 7greater than >ero8 of !eing selected in the sample" and this pro!a!ility can !e accurately determined )he com!ination of these traits makes it possi!le to produce un!iased estimates of population totals" !y weighting sampled units according to their pro!a!ility of selection
Systematic Sampling # )he most practical way of sampling is to select every item on a list"
this kind of sampling known as systematic sampling 33
Stratified Sampling# If a population from which a sample is to !e drawn does not constitute
a homogeneous group" stratified sampling techni=ue is applied in order to o!tain representative sample
Cluster Sampling# If the total area of interest happens to !e !ig one" a convenient way in
which is sample can !e taken is to !e divided into smaller non-overlapping areas called cluster known as cluster sampling
/on pro5a5ility sampling# In case of non-pro!a!ility sampling" it is considered appropriate
to use a random selection process where the pro!a!ility of each cluster !eing included in the sample is proportional to si>e of the cluster
Research Design
1esearch design is the !ased framework" which provides guidelines for the research process It is a map or !lue print according to which the research is to !e conducts )he research design specifies the methods for data collection 5 data analysis determine the source of data Most specifically it was a
1arious parameter used in research #
1esearch Design - Descriptive Data Source -@rimary 5 Secondary data 1esearch Instrument 3 Ruestionnaire )ypes of Ruestionnaire -Structure and non-disguised
34
Chapter 1III 0nalysis 0nd 4indings
35
)he survey was taken over *9 start-ups present in Hagpur and near!y cities of Hagpur )hese start-ups have come into e?istence in a!out & year )hey had !een floated this =uestionnaire through Coogle Docs so as to complete the survey
)he analysis of the survey is !een e?plained !elow
>$ Do you ha*e a documented Digital Strategy ) !lan in place?
es Ho
; &*
Interpretation: Kere" we can interpret that more than half start-ups don/t have documented plan of their startup )his is where we can !asically segregate the life e?pectancy of the start-ups
36
>& @hat percentage of your o*erall marketing 5udget is assigned to Digital?
@ercentage &9 *. ,, .9 '. &99
Start-ups ' . + , & 9
Interpretation: Kere" we can interpret that most of the start-ups don/t have strategy !uild towards digital marketing & out of *9 start-ups have less than .9( !udget towards digital marketing
>A @hich statements 5est descri5e your current Digital Marketing efforts? 37
DM Effort
$ount
In-house MarketerFMarketing )eam
6utsource the Marketing to + #gent or $onsultant Marketing e?pertise on the & founding team Most of the Marketing done . !y own" without !ackground DonAt 1eally do any Digital + Marketing
Interpretation: Kere" we can interpret that most of the start-ups prefer digital marketing on In-house marketer 7,9(8 #lso" *9( don/t really make use of digital marketing in their start-up >B @hat does your company aim to achie*e +ith Digital Marketing?
38
@arameter
$ount
$reating !rand awareness Driving strategy for customer ac=uisition $reating and e?ecuting lead generation campaigns Developing company messaging and positioning $reating marketing !rochures and other materials 6ther
&
; G ,
Interpretation: Kere" we can interpret that start-ups using digital marketing are more over concerned with the creation of !rand awareness and also generating lead through various sources
> o+ do you measure the success of your Digital Marketing efforts? 39
)ype of )ools
$ount
Using a free analytic tools
&9
Using a paid analytic tools
*
Using agency reports
produced
*
Using consultant produced reports Using e?ternal e$ommerce platformFsoftware
,
6ther
*
&
Interpretation: Kaving faith in oneself is what start-ups look out for So .9( of the start-ups have free analytic tools in-house
40
> @hich & of the follo+ing tactics are most important to your &$ strategy?
)actics
$ount
Email Marketing
&+
Social Media
&;
Search Engine Marketing
&9
$ontent Marketing
&9
%logger 6utreach
#ffiliates
,
Display #dvertising
.
Interpretation: Kere" we can interpret that start-ups create their !rand/s awareness with the help of social media" search engine marketing" email marketing #!ove tactics would surely help in strategi>ing in the year *9&.
41
>F @hich one of the follo+ing media do you 5elie*e +ill deli*er you the 5est return in &$?
Media
$ount
@aid Media
+
Earned Media
&&
6wned Media
.
Interpretation: 2hen it comes to delivering the !est returns" earned media is preferred at most ..( of start-ups prefer earned media over paid and owned media
42
>G @hich of the follo+ing areas do you re;uire the most help +ith?
6ptions
$ount
Social Media #dvertising
;
$ontent Marketing
&9
Digital Strategy and @lanning
&.
$onversation 1ate 6ptimi>ation
'
User E?perience )esting
.
Interpretation: 0rom a!out chart we can interpret that start-ups using digital marketing re=uires most help with digital strategy and planning which is most !asic part as compared to other tools highlighted a!ove
43
>H a*e you e*er considered or had formal Digital Marketing training?
Ruestion
$ount
es
.
Ho
&.
Interpretation: More than '9( of start-ups have no e?perience in training of digital marketing
4indings: #fter analysing the responses of the *9 start-ups" we find that there is a huge need of digital marketing in start-ups for pitching themselves towards the society of India Digital strategyFplan" tools of digital marketing" training of digital marketing" !udgeting the digital marketing are the signs telling that digital marketing is the need of the hour in today/s world
44
Chapter I 7ey learnings and Contri5ution to the ost Organisation
45
7ey 'earnings: )hrough this pro
Contri5ution to the ost Organisation: Cenerated leads to emon Ideas for the purpose of their institute named emon School of Entrepreneurship $old calling for their promotional events like O2eekend with mentor/" Oemon School of Entrepreneurship/ and OMentor Speak/ Suggested targeting strategies for different start-ups and masses present
46
.i5liography)References: wwwlemonideasin wwwlemon-schoolcom wwwi!eforg wwwslidesharecom wwwyourstorycom wwwtechcrunchcom wwwgooglecom wwwwikipediacom
.OO7S @rinciples of Marketing-@hilips Notler 5 Nelvin Neller 7Edition &,8 1esearch Methodology concepts and cases- Deepak $hawla and Heena Sondhi
47
Chapter >uestionnaire)Checklist of >uestions
48
0nne3ures: ,lossaryJ >uestionnaire)Checklist of >uestions >uestionnaire: >$ Do you ha*e a documented Digital Strategy ) !lan in place?
es Ho >& @hat percentage of your o*erall marketing 5udget is assigned to Digital?
&9 *. ,, .9 '. &99 >A @hich statements 5est descri5e your current Digital Marketing efforts?
In-house MarketerFMarketing )eam 6utsource the Marketing to #gent or $onsultant Marketing e?pertise on the founding team Most of the Marketing done !y own" without !ackground DonAt really do any Digital Marketing
>B @hat does your company aim to achie*e +ith Digital Marketing?
$reating !rand awareness Driving strategy for customer ac=uisition $reating and e?ecuting lead generation campaigns Developing company messaging and positioning $reating marketing !rochures and other materials 6ther4 > o+ do you measure the success of your Digital Marketing efforts?
Using a free analytic tools Using a paid analytic tools 49
Using agency produced reports Using consultant produced reports Using e?ternal e$ommerce platformFsoftware 6ther4
> @hich & of the follo+ing tactics are most important to your &$ strategy?
Email Marketing Social Media Search Engine Marketing $ontent Marketing %logger 6utreach #ffiliates Display #dvertising
>F @hich $ of the follo+ing media do you 5elie*e +ill deli*er you the 5est return in &$?
@aid Media 7any of the following4 display" search" affiliate and social media advertising8 Earned Media 7any form of pu!licity generated !y your advocates" customer" fans" partners8 6wned Media 7any marketing channel owned !y your start-up like we!site and social media profiles operated !y company8 >G @hich of the follo+ing areas do you re;uire the most help +ith?
Social Media #dvertising $ontent Marketing Digital Strategy and @lanning $onversation 1ate 6ptimi>ation User E?perience )esting Search Engine Marketing 6nline @1 )racking and Data #nalysis 1eporting 50
