Goojet is a French startup created in Toulouse in 2006 by Marc Rougier and Ludovic LeMoan. It proposes a free service contained in a mobile application, which is also called Goojet. It can be defined as a ?mobile social media?, meaning that, more than proposing to its users a quick access to their favorite websites from their mobiles, Goojet is also a way to exchange and communicate (Appendix 1). Indeed, this service allows discovering, navigating and sharing the mobile web. By using the concept of widgets for the mobile internet, the user can easily find all his services and favorite contents, and via the Goojet community, and share it.
Therefore, Goojet, which name comes from the contraction of ?Good Gadgets?, is a company specialized in the mobile applications edition. It has been registered in June 2007 at the ?Pr?fecture de Haute-Garonne in Toulouse?. Thus, it is a young company having little history in terms of financial analysis. Moreover, as the registering and use of Goojet is totally free, the company didn?t have any revenue since its recent commercial offer. It is thus thanks to two fundraisings (one in December 2007 of 2.3 millions ? and another one in June 2009 of 6 millions ?) that Goojet has been able to develop itself. The four investors trusting the company are Partech International, Elaia Partners, IRDI-ICSO, and Orkos Capital
Goojet rapidly positioned itself as an important actor on the internet mobile market. Its innovation has even been awarded several times, as in December 2007, when Goojet won the Web 3 Start-up prize during the Internet Mondial Conference in Paris. Therefore, Goojet?s awareness and use is growing rapidly and in May 2009, Goojet announced 500?000 users. There is a big growth potential in this type of internet services for mobile phones.
Since the apparition of the iPhone, applications for mobile phones are exploding. It is a big opportunity for Goojet to surf on the wave but it is also a threat because Goojet have to face fierce competition and face Strong substitute for its application. How can Goojet gain awareness and new customers in this environment?
B - External diagnosis
1) The market
The market size of mobile web applications is represented by people that own Smartphones. The market is theoretically not limited by geographic borders, and even if at the moment most of Goojet?s customers are local (French), we decided to enlarge our strategy as Goojet would like to internationalize its service.
According to a study made by Gartner, mobile applications downloads will represent 6.7 billion dollars in 2010, and 29.5 in 2013 (a 340% augmentation in just 3 years); 87% of them being free downloads. In volume, the number of downloads should increase from 4.5 billion in 2010 to 21.6 billion in 2013.
As the chart shows, the biggest demand is for free applications. It is forecasted that existing prices for applications will decrease in the upcoming years significantly (Instat). The average price of applications dropped within the last two months as much as 19%, from the average cost of 3,15 USD to 2,55 USD (Source: AppShopper). 50 applications that were the most appreciated decreased by even more, 34%. It seems that application that costs more than 9,99 dollars does not exist anymore. So in other words, prices seem to be going down at a fast pace, and suppliers have to adjust their prices to maintain their positions in the market. Despite the decreasing pricing trend, according to Webzine, Apple and some other mobile application servers would like to create a premium Appstore with applications that are more expensive such as 19.99 dollars. This has not been implemented yet, but the idea would be that people who buy this service get much more benefits and a full service package compared to the free software users.
The mobile applications market is highly related to the Smartphones market. Indeed, the more the Smartphones market will increase, the more the mobile applications market will increase. Moreover, applications need to follow the Smartphones trends, and adapt to new mobile platforms (such as Android recently) and innovations. Thus, we need to observe the Smartphones market.
At the moment almost 16% of French mobile users use Smartphones, an equipment rate in augmentation by more than 5.4 million users since 2009. This can be caused by the price reduction of Smartphones. According to ABI Research, in 2007 only 18% of Smartphones cost less than 200 dollars whereas in 2009 the number was 27%. It is forecasted that in 2014, 45% of Smartphones on the market will be under this price. The chart below describes the life cycle of a market, in which the current stage of Smartphone markets is somewhere between early adopters and early majority. Indeed, prices are falling and competition is getting fiercer.
The mobile applications market is in its growth, however, the product life cycle in the technology market is usually very short, since new, improved products enter the markets at a rapid pace. That is why constant innovation and proactive approach are the tools for survival in this market. As said earlier, the market of mobile web applications is also hugely dependent on the market of Smartphones, meaning that if some product comes as a substitute for a Smartphone in a certain period of time, this will potentially destroy the whole market of mobile web applications.
In other words, the Smartphone market is rapidly growing around the world. According to AdMod (with a study that surveyed 963 people), people who use Smartphones tend to take advantage of the mobile service opportunities that different companies provide. For example iPod touch users download approximately 12,1 applications per month and Android users 8,7. The vast majority of downloaded applications are free ones, which increases the potential for free mobile application market (on which Goojet is currently operating on). According to a Gartner study, consumers? first application preference is games, then trade and commerce, third comes the social networking and fourth is productivity tools and services.
Now, let?s consider the mobile social media market. Whereas there are 12.5 millions of mobile web users per month in France (evolution: +38%/year), there are 4 millions of mobile social web users per month in France (evolution: +283%/year), according to a Comscore study.
According to this study made by Comscore, social networks represent the biggest growth in mobile usage in 2009. Firms seeing the mobile as a new trendy media are more and more using mobile advertising to reach their target markets, especially on social networks. The technological environment is going to evolve rapidly and, possibilities of advertising support will increase.
New trends are becoming to develop in the applications market. For instance, augmented reality applications allow adding content to a video flow or viewing in real time. Thanks to this innovation, the market is expected to increase to 350 million dollars by 2014, according to ABI Research.
Paying applications are foreseen to be only games or gadgets, whereas other actors will launch free apps with paying contents and services (In App Purchase).
Direct competitors on mobile social media: Mippin
Goojet?s main direct competitor on the mobile web application market is Mippin. Mippin provides similar and also free applications to mobile phones and thus competes directly with Goojet. With Mippin it is also possible to personalize your applications, just as in Goojet?s case. They also have the website available from computers or mobile phones. Both platforms are connected and synchronized.
Mippin also sells advertising space and white label products (meaning that they create applications on their interface for other brands), and is present on social media such as Facebook.
The only thing that makes the products significantly different is the current target markets. Goojet?s main market is France, but with Mippin this is not the case, since their website is in English and it operates from London, England. Moreover, some of Mippin services (such as the Buzz Deck and Widgets) are available only on the Apple, Android and Nokia phones.
a) Social Media
Facebook: Facebook is a substitute of Goojet on the social media part. In fact, if a person wants to chat with friends or discuss on special subjects, they can directly go on Facebook and discuss it with friends, friends of friends, join a group? Moreover, if a person wants to discuss only with relatives and is reluctant to speak with people he doesn?t know, he will prefer going on Facebook than on Goojet. Facebook also allows its users to share videos, pictures, and links with their contacts. In September 2009, Facebook announces 65 millions mobile users of Facebook in the world (representing a fourth of the total users).
Other social media that have a mobile version are also substitutes to Goojet: Twitter, Myspace, LinkedIn? They are providing a platform to communicate and share things with friends and a community.
b) Application provider
zaOza: This company focuses only on applications. It did not position itself on the community part, but it is strong on applications: they propose games and all the latest applications that can be found on the web. However, their services are not free, you have to pay 3? per month to be allowed to download all the applications you want. Zaoza targets young teenagers from 13 to 20 years old.
They also provide other mobile services like the latest ringtones or backgrounds for your mobile.
c) Mobile operators
The mobile operators and manufacturers are substitutes because they propose links and shortcuts to applications directly on mobile phones or easily downloadable from the company?s website. If Goojet is seen as only a widget provider, customers who have this service proposed by their mobile operator might not see the need to download Goojet.
The mobile operator Orange, for instance, developed the beta version of Djinngo; an online platform dedicated to Orange users, where they can download free and not free applications directly via their mobile phones, or from their computers.
Bouygues T?l?com proposes also applications that their consumers can easily download from their website, and SFR launched its own application store, attracting thus customers wanting specific applications such as games accessible directly on their cell phones.
?The increasing interest of the people for Smartphones, the participation of web actors in the mobile market and the emergence of Apps Stores and inter-sectorials services are currently reducing the operators? domination. Each actor is going to influence the way the application will be delivered and used by customers, who will have the last call with their interest focused on the product and their purchasing power?. Sansy Shen, research director at Gartner.
d) Mobile constructor applications
More and more Smartphones already have shortcuts in their menu to access easily popular websites such as Facebook for instance. Nokia with OVI: Nokia launched the OVI platform for Nokia holders. It looks like the Itunes Appstore web site: same shape and same colors. It is a threat for Goojet because it proposes direct applications for users, activity that Goojet also does.
Samsung and its campaign on new application: Samsung already proposes applications for the Samsung holders, but at this time it wants to renew its applications and find the right one that can be very competitive to gain users in this competitive market. For that, they organize a contest on the ?tomorrow application?, anybody can subscribe and give idea for the tomorrow application and the winner will be offered 150?000?.
Via i-Tunes, the iPhone and the Appstore, Apple is a threat because with the IPhone display you have all the applications and widgets you want on the screen. So there is no need for iPhone holders to download an application that will enable you to access easily applications. The iPhone is thus a substitute.
But Apple is also a partner because Goojet is referenced in the Appstore. The Appstore is Apple?s platform to download applications, and it is the first platform worldwide to download applications so Apple helps Goojet in referencing it on the most known and used platform.
Mobile application providers usually have two main customer groups as they are working on two different segments.
80% of the French population aged 11 and older owns a mobile phone. 16% of them own a Smartphone, while 5% own an iPhone. 28% of mobile users in France are surfing on Internet and on applications. Thus, the mobile applications customers are Smartphones? holders and looking for using their mobile phone to access the web easily.
The biggest Smartphones? customer segment is young people, and this is usually the case when a new technology-based product is introduced to the market. The young people seem to be the early adopters, 65% of people who own an i-Pod touch are under 17 and will probably purchase an iPhone later. The chart ?Age by platform? shows that there is some variety between different brands, products and age groups that buy them. For example iPod touch seems to be very popular within very young people whereas WebOs and Android are not that appealing to very young people and are more popular in mature age groups. There is a growing potential in this segment, since many of the members in the mature group haven?t purchased a Smartphone yet. Since only 16% of the French own a Smartphone, it is expected that the older, more conservative people get them when the product life cycle is going through a further stage.
Downloading decision factors are (by priority order):
- The price of the application (mobile applications customers seem to be price sensitive as there are free offers on the market.)
- The clarity of the application (does it seem easy to use, do I understand what is it for?)
- Data to give when downloading it.
- The rank in the application store is also important, as people tend not to visit after the third page.
Gartner identified the top trends in mobile applications for 2012. According to them, the applications the most used will allow transferring money, access to proximity services or permit to make searches. The applications helping customers to navigate more easily on the web from their mobile will also be widely used. However, they foresee that most of customers will use 5 applications per period on their mobile and that future opportunities will come from applications that would have exploit a niche. Indeed, it seems that people tend to download free applications try it once or twice and then erase it, to download and discover another one. There are few chances that a person will download the same application twice, unless they changed their phone device.
It is when the companies which are developing free applications decide to monetize their service that the B2B customers are targeted. Indeed, in order to be able to develop their business, the companies need to create content but also to make their services profitable. To do so, they need to propose companies some visibility on their applications throughout advertisement. There are several ways:
- Create an intern store to sell games, ringtones or logos without exiting the page (Webwag)
- Offer white label widgets to companies and partnerships (Goojet?s previous strategy)
- Insert targeted advertisement in the applications, once you better know the users, and sell advertising space to announcers, either through banner displays (Orange) or through flows of contents (Goojet?s current strategy)
Those B2B customers represent a large market, and companies need to segment them according to their B2C targets and to their commercial strategy.
2) Attractiveness of Goojet current market: 5 forces of Porter
The threat of substitutes
The threat of substitutes for the mobile application market is high. Indeed, hundreds of thousands of applications exist, and depending on what the user is looking for, there is always a substitute. The two main services that Goojet offers (easy access to ?your web? from your mobile and mobile social media aspect) are already facing substitutes. On one hand, the iPhone, and increasingly other Smartphones provide shortcuts directly on the phone platform to access easily mobile websites and applications, and the Appstore helps the user download them. On the other hand, Facebook, Twitter and other social medias are substitutes to Goojet, as they are available on mobile phones (shortcuts are often already integrated in Smartphones, and it is downloadable on the Appstore anyway), and provide almost the same benefits as Goojet: you can share things (your mood, videos, articles, pictures, etc?) with your friends and the community. If users want to play a game, there are gaming applications; if they want to meet people on Goodflirt, there is Meetic for example (even if Goodflirt is free, it might appear as not as serious as Meetic).
Mobile creators and manufacturers are more and more developing services to facilitate the use of web mobile. Thus, Nokia developed OVI that provides services on your mobile (GPS, access your files from your mobile, etc?) and OVI Store to download applications on your Nokia cell phone.
Moreover there is no switching cost for the customer since there are no contracts made between the company and the customer. However, the customer can have an emotional attachment to the service he is using (for example, Goojet and other goojeters and the social community) which can prevent the changing to another service.
The threat of new entrants
The threat of new competitors can be seen as reality, since the industry and the field of mobile applications is growing rapidly. This naturally attracts new players on the market. Even new startups, such as Goojet have been growing rapidly since its establishment, 4 years ago. The products are also easy (and cheap) to distribute, since they are not tangible and are distributed on websites.
Entry on the market is easy for competitors as there are no strong barriers to entry. The requirements for capital are not too high compared to other industries. The most important investments are high tech computers in order to create the software, and talented, innovative people who know how to create these kinds of services. Some applications and innovations in this field are protected by patents. It might prevent players from entering the market, to copy the products and just use the hype as an advantage. Customer loyalty is also a factor that has to be considered by new entrants. Major mobile operators (Orange) and companies that make mobile phones (Apple, Nokia) have entered the mobile application market. This means that as a consumer, it can be difficult to spot the unknown players. Therefore marketing can take a lot of resources in order to gain awareness among customers.
Goojet?s business model relies on the sale of advertising space to make revenues. When many new players enter the market, and provide advertising space as well, the revenues will start to decrease at some point. However, big companies are more and more attracted by mobile advertising due to the increasing percentage of population using this new way to access the web. So revenues might as well stay stable.
The intensity of rivalry
In intense rivalry, new innovations and technologies are introduced constantly. This is absolutely the case in the whole IT-industry. On the other hand, technological achievements and innovation skills protect companies from rivalry. Therefore, to succeed in this field, you have to be constantly evolving and having new ideas because otherwise somebody will come up with them before you. If they do, they will gain a competitive advantage. But mobile applications? business is quite fresh, so all the competitors haven?t entered the market yet.
The rivalry is not very fierce yet, but because the industry is growing at a fast pace, it can attract a lot of competitors. If this happens, there will be a situation called ?industry shakeout?. This means that there comes a point where the industry is crowded with new entrants and the demand has not reached the same level. Therefore, companies will lose money and less efficient ones will disappear.
The bargaining power of customers
The bargaining power of customers means the customers? ability to put the firm under pressure and therefore affect pricing and other matters. According to the research institute Gartner, 4.5 billions of applications will be downloaded in 2010, 82% of which will be free. The customers tend to buy the free mobile services, so the ones that are paying have to prove high benefits to the customer. Therefore customers? price sensitivity is very high. However, there is also a customer segment that decides to pay for the services in order to avoid advertising through the services, and be sure of the quality of the applications.
The bargaining power of customers is higher if there are many substitute products. In the case of Goojet, there is no provider whose service is exactly the same as what Goojet provides. However, there are service providers who provide similar services (such as Mippin) which fill the same customer needs. But most of the competitors are concentrated on just some of the services that Goojet provides. Only games for example. In this sense Goojet is not in a bad position.
The question of customer bargaining power in relation to Goojet is not that significant, since the service is free, and therefore the customers don?t feel the need to bargain in this matter.
The bargaining power of suppliers
Goojet doesn?t need any raw materials or other resources to produce its products. To produce a service of quality, the company needs competent people, servers and the latest mobile phones to test Goojet on them.
Apple is not a supplier in its strict sense; however it provides Goojet with the ability to be present on the Appstore, which is very important in order to be more visible. The Appstore policy is that, the more you get clicked on in the Appstore, the higher you get in the ranking, and therefore, the more visible you are. But as it doesn?t cost anything to be present on the store, the bargaining power of Apple is low. Other application stores exist: Android Market, WidowsMobile Market Place, Blackberry Appword, Ovi Store, Bouygues T?l?com, Getjar and Mobango.
We could also consider the commercial partners who want to advertise on Goojet as suppliers, as they supply the money the company needs, in order to develop itself. As there are not so many mobile applications companies selling advertising space yet, these partners are not in a position to negotiate a lot right now.
3) Analysis beyond the current market: identification of future trends
Main market: web social mobile applications.
Goojet provides applications but want to emphasize on its positioning: mobile social media.
A media social mobile is an application that allows you to communicate and share web content (videos, information, buzz, RSS flows?) with other users of this application, as well as access those contents easily, and do all this from your mobile. For instance, when you connect to a special newspaper website you can put comments about the content of an article, respond to other viewers and send this article to your contacts.
There were 12.5 millions of mobile web users in France in 2009 with 4 millions of mobile social web users, with a growth of 283%per year (source: Comscore April 2009).
Support market: all type of applications.
Different companies provide all types of mobile applications. You download your applications on a website or directly with your phone and they are then available on your phone. Some applications are available for free and for others you have to pay. Most of the time, if you pay for applications you will have no adverts on it, or fewer. This enables a comfort of use unlike for the free applications where your mobile screen is full of pop-up adverts. This is actually how companies who provide free applications make money out of it. But this can lead consumers to switch to non free applications in order to get more quality.
The generic market covers pretty much everything because the main purpose of mobile apps is to help you do everything with your mobile phone. It goes from games, to practical tools that can help you on a daily basis. (GPS, weather forecast, subway stations, Velib?)
If we take a look at the entertainment, a lot of mobile apps are covering this field. We can separate the games applications from the web social mobile:
For the games, you can find video games: you can play online and with others players, you can make money with poker or gambling?As it was said before, some games are provided freely and for more elaborated games you have to pay. You can connect your phone with another one (thanks to the WIFI or Bluetooth technologies) and play with some friends. It is a way to share applications and to encourage other people to get this application in order to be able to play between many players.
Another part of the entertainment is covered by the web social mobile. This includes all the applications which allow you to share information or communicate with other people on your mobile phone. There are some SMS chats, social networks like the mobile website of Facebook, Twitter, or MySpace where you can communicate and share information any time with your contacts. You can post some comments on your profile and view others.
There is also the information field which is included in the generic market. People can look for transport information. You can get provided on the train hours, the next plane to Rio or thousands of information which helps you manage your schedule rapidly. You can look for cultural information, for a restaurant. If you want to check your bank account, or you want to get your hair cut, find where you can buy some flowers for tonight?s dinner?Mobile applications provide you with lots of information.
That is exactly why applications are in competition with every possible mean of information. newspapers, magazines, specialized web-sites?
In the services field, there are also a lot of things which can compete with the phone applications. Usually people get to look on the internet or in the yellow pages if they want to find out something or get something done. Now you can also book tickets for a play or order plane tickets with an application from your mobile phone. Even travel agencies are endangered because people have more access to information and can do it easily by themselves.
The key fact in the development of new mobile applications is that other devices can become obsolete really fast.
- Books are now available on line, so you can use your mobile phone as a book. The i-Pad is actually a specific device for books created by Apple but this has become a new application for a regular smart phone. Booksinmyphone.com format books so you can read them on Java enabled phones, for example.
- GPS may disappear too as you can have an application in you mobile phone which acts like a GPS.
- Computers may become obsolete some day, if we can obtain all we need with the applications on your mobile phone.
- MP3: we can download music and listen to it with headphones on Smartphones like we can do on the MP3 players. Why have a MP3 if you have a Smartphone?
- TED: discovery of a 6th sense that will entirely modify the current usage of information technologies. The future of mobile phone can be completely redesigned because of technology advances. New technologies will be able to provide much more information than the applications and will do it instantly and more efficiently. Furthermore, the cost of this device ($350, which is approximately the same price as an iPhone) is relatively low compared to the possibilities it offers.
As we said, we can differentiate mobile applications by their price. We can assume that more and more people will start to pay for applications because of the advertisement that can be bothering. On the free applications they have trouble seeing correctly the screen and using efficiently the application. People are now looking for quality as the applications for mobile become more and more sophisticated and are directly responding to a specific need.
Mobile applications are tools which are more and more used to communicate and even promote something. That is what we can see as some companies start using applications, like L?Or?al, who created an application for the iPhone for L?Or?al Paris, one of the group?s major brands. Customers could check some products references and get to know about the new launch. The applications also provide beauty advice to know how to use perfectly the product/service.
As a result, we can contemplate the fact that companies are going to use applications as a marketing tool, because more and more people have a smart phone and use it. Applications can become a tool for competition and performance. The most successful companies will be the ones which can create loyalty and interactivity throughout their applications. They will have to be creative and offer a real benefit to the customer if they want their application to be a success. Moreover, there is a possibility to have application with coupons that could increase the traffic and be seen as direct marketing. The fact that people can interact on this platform can also create traffic for the brand because the most loyal customers will use this web social media to promote the products they like and encourage other people to get to know the brand and purchases the products. This is actually very good for any brand because it?s free advertisement and a satisfied user has a greater impact than a simple advertisement campaign promoting the benefits of the products.
In terms of services, we will see the development of the mobile mean of payment. It already exists in certain countries like for example in the UK where you can pay your parking meter with your mobile phone by sending a SMS to a specific number. The number of applications to develop this idea of payment is going to flourish. We can wonder if the credit card could become obsolete at some point in time; this phenomenon is quite dynamic.
If we take a look at the competition, we see that Google may be a future substitute for Goojet. In fact, Google is starting to collect information about people who get a Gmail account and contemplate becoming a social media operator. As Google already launched two mobile phones (the Smartphones G1 and G2, competing directly with the iPhone), we can assume that they will create an application or an application store for their social network. As Google benefits of a strong brand image, Goojet has to maintain its position on the competition field.
4) The environment
The French government noticed that French citizens are using more and more their mobile phone to go on the web. A survey from M?diam?trie found that almost 16% of French people owned a Smartphone in the second semester of 2009 (against 11% for the first semester).
So, the government thought that mobile applications can be used for the economic reflation.
Nathalie Kosciusko-Morizet, a French politician and currently a secretary of state at the numeric economy, has launched Proxima Mobile on February 18th 2010 in Paris.
It is a web portal providing services to citizens on their mobile.
Currently, Proxima Mobile has granted a label to 68 mobile applications.
To be part of the Proxima Mobile portal, applications must be compatible with all Smartphones, they have to provide a society interest service, make the day-to-day life of citizens easier, and have a high social impact.
The applications on Proxima Mobile can be for example an abduction alert application to be informed very quickly of somebody?s missing; Mus?e du Louvre application allowing people to discover art collections and give precise information on them when people are inside the museum and also when they are outside the museum (map of the museum, information, pictures?). Comuto which is an application developed by covoiturage.fr aiming to find easily a car to take you to a place of your choice or find passengers to share the travel expenses?
The current economical context, even in an economical crisis period,has been favorable to the development and the use of mobile technologies such as applications. Indeed, the applications have the chance to be considered by consumers as leisure/information tools, and during an economical crisis, people are often willing to be distracted with low cost activities. Some application developers saw this economical crisis as an opportunity to provide to the consumers, tools adapted to the situation and create the following applications:
The idea was to develop a platform that would allow a customer to receive and repay small loans using his or her handset. The use of mobile technology in Micro Finance Institutions lowers the cost of business leading to lower interest rates. However, the money transfer service turned out to be the bigger draw and together with MFI support, it brought many benefits. One of the key benefits of mobile money transfer is the enhancement of the economic activity.
The issue was that it was very difficult for people from less-developed countries to make money transfers because of badly developed banking infrastructure. Also most of the citizens don?t have bank accounts.
However, the mobile phone penetration is quite high with a ratio of 3:1 meaning that for every bank account holder, there are three mobile phone owners. Mobile money transfer platform is instrumental in substituting the banking infrastructure.
M-PESA has been a very useful tool helping the development of Kenya for example. The World Bank estimates that: ?reducing remittance commission charges?by 2-5% could increase the flow of formal remittances by 50-70%, boosting local economies. Reducing the cost?of each individual remittance would enable the delivery of lower value remittances than today?s?average transfer value of US$200?.
?M-PESA has resulted in higher remittance and hence higher economic activity leading to faster growth. A survey has found that the incomes of rural recipients increased by 5- 30% since they started using M-PESA.
Christelle Scharff is an associate professor of computer science in a New-York?s University. She is working on the Mobile Development and Web Design for Senegal project that teaches students to develop mobile applications. The students there developed different mobile phone applications such as an application to manage sales and expenses for local artisans.
This project has not only trained students but also 22 teachers in Senegal. Most of them did not previously identify mobile application programming as a field of study. Today, they have a different view of mobile applications. Indeed, they understood that development of mobile applications is a way to provide local jobs (teachers/applications? developers) and to generate useful tools for local businesses (applications to manage sales and expenses). These applications can really impact on the economic context of many countries.
Mobile phones have taken a huge place in the everyday life of French people.
A survey realized by IDATE for the AFOM in 2006, on the mobile equipment for the 15years old and more, gives us the penetration rate of the European Union countries.
The question asked was: ?Do you have a mobile phone?? The results are the following:
So, we can see that the equipment level of French people is quite high; approximately 80%. The age class with the highest penetration rate is 18-24 years old with 95%, the 25-29 years old have also a high penetration rate: 89%, compared to 51% for 60 years old and more. In spite of the high penetration index there are 2.6 millions new clients in 2008.
Another survey, demonstrating that the interest of French people toward mobile phones increased, is a study about mobile phone expenses compared to the households? budget. This graph shows that from 2000 to 2005 the households expenses for mobile phone increased by 0.82 points.
Data collected by ARCEP (Autorit? de R?gulation des Communications Electroniques et des Postes)
Moreover, a survey executed by AFOM/IDATE showed that in 2008, people are giving a lot of importance to data services (SMS/MMS and multimedia services). It can be partly explained by the level of quality/technology of new mobile phones (the number of users of 3G mobile phones has doubled from 2007 to arrive at 12 million at the end of 2008 in France) and it is also due to the incredible success of Smartphones.
As we said earlier, sending of SMS and MMS has highly increased in 2008 (19,5 billion in 2007 to 34,8 billion in 2008, which represents a progress of approximately 80%).It means that in 2008 the average number of SMS/MMS sent per user and per month equals to 51,1 against 30 in 2007.
Average number of SMS/MMS sent each month per SIM card in France. IDATE data
The mobile phone today is not only used for voice communication but became a multi-functions product. Before, people needed a separate camera, a GPS, a MP3 player, a computer and a portable gaming device such as Gameboy. But today a mobile phone replaces all these different items; everything is in there.
Today, mobile phones are used to communicate through different ways, such as voice calls, SMS/MMS, mail, Facebook and MSN Messenger.
Moreover, the mobile phone is also used for planning, taking pictures, capturing videos, exchanging information via e-mail, finding information about everything on the web and listening to music.
As a lot of goods, mobile phones became a trendy product allowing people to live differently than before and making them completely addicted to it. This change in the way of living was highly boosted by the arrival of Smartphones, the last evolution of mobile phones.
A survey of TNS Sofres in 2007and 2008 about the use rate of multimedia functions in France by users of 12 years old and more reported that:
- Sending SMS is the most important function for the users (79%).
- All the functions have known to have increased in the use rate from 2007 to 2008 reflecting the importance that people (Y generation) expect to have everything they need with them and of course, quickly!
Even if there is no clear evidence that using a mobile phone can lead to a brain cancer or other diseases, the use of mobile phones is more and more considered as a health risk. A lot of studies have been run to determine if the use of mobile phones is dangerous for health or not. These studies have caught peoples? attention and today, they are more concerned about using their mobile phone. It can considerably change the mobile phone purchasing behaviour and more precisely the demand of 12-18 years old because parents will be more reluctant to let their children use mobile phones for health reasons. However, some solutions have been proposed to minimize the potential bad effect of mobile phone such as shorten the calls duration from mobile phones and use a hand-free set.
The arrival of Smartphones on the mobile phone market has considerably changed the way we use mobile phones in our day-to-day life. Indeed, Smartphones provide advanced capabilities to users and can almost be compared to laptops.
This last evolution of mobile phones became the symbol of Information and Communication Technology.
Earlier people used their laptop to go on the internet, send e-mails, visit websites, download music and hundreds of other actions. Today however, all of this can be directly done on a Smartphone. Number of things can be done on this kind of phone due to the infinite number of applications available. As Apple says so well:?There is an application for quite everything?. Indeed, the world of applications is huge, going from traveling applications (SNCF, RATP Lite, Airports, Mappy?), to gaming applications (Labyrinth, Scrabble, Trivial Pursuit?), to financial applications (Devise, Bourse, Paypal?), social applications (Facebook, EasyMSN, eBuddy Pro), and to incredible ones (iSwap Faces, Shazam, Pic2Shop?).
And this is just the beginning. As Jean-Luc Curilla, an engineer student in Informatics and Electronics explained, the applications development is at its beginning and is going to evolve to very useful tools in the following years. Different applications functions as followed will certainly be available on Smartphones very soon:
- Virtual school class: the fear of a pandemia let engineers think about an application which could allow students to follow their lectures through phone conferences. We could even think about having a numeric blackboard to follow the examples and written explications of professors.
- Micro-conference: at the end of a conference, when it is time for the questions, people are often nearly fighting to get the microphone and ask their personal question to the interviewee. To solve this problem, we could imagine an application managing this intervention period. It would consist of the management of intervention demands and also create an organized questioning moment by giving the turn to people to ask their questions with respect of theme questions, by order of request, etc.
- Translation service for conference: an application could translate quite instantaneously the speech on the screen of the Smartphone in different languages.
As mobile phones are the support of applications, when talking about environmental issues, we are facing an increasing problem with recycling. Indeed, as people buy mobile phones, (on average every two years) to enjoy new applications and features, the number of unused mobile phones becomes an issue. The problem is that few people recycle their mobile phones. A survey run by Nokia found that ?nearly half didn't know it was possible to recycle their old mobile phones? and a large number of people ?don't think about recycling their old mobile phones, with just three percent of people doing so?.
However, not recycling this type of electronic devices can harm the planet and its inhabitants. Mobile phones are composed by heavy metals and toxins polluting directly the water, the wildlife and also humans. Currently the environmental issue with mobile phones can be solved by gaining the awareness of people and teach them that recycling is possible and useful for everyone: the planet and us.
Even if the link between mobile technologies and environment is not obvious, mobiles are on the way to become useful tools to solve environmental issues. Below are two examples showing that mobile phone technologies can have a positive impact on the environment.
The Water Quality Reporter
In South Africa there is a project called Aquatest, which uses SMS to monitor water quality but it is still in the experimental level. However, the Water Quality Reporter is already working on mobile phones. This application is a real tool for workers because it allows them to send data about water quality to a centralized database and also receive advice to solve local water problems.
Melissa Loundon, a researcher who worked with the development of the Water Quality Reporter explained that:
?The main part of the project is to develop the water test. But the original project team realized that if you?ve got a water test that can be used by people who aren?t in the field, or people who aren?t specialists, it doesn?t really help them if they get a result and see that their water is not safe to drink. They may not have a whole lot of resources to do anything about it. So the point of the cell phone application is that once somebody has a result, they can communicate it to a central database and also to somebody in the area who can provide support.?
A second interesting project linking mobile technology and ecology is FishMS.
The concept is the following: a person who wants to buy fish in a supermarket write via a SMS the name of the fish and send it to a phone number. Within seconds, this person receives information via a SMS giving her some information about the fish she/he is interested with: impact of fishing on fish stocks for example and advise her/him
whether to ?tuck in, think twice or avoid completely?.
This tool helps the consumers to make informed choices, and make them actors of the bio-diversity protection. A survey shows that: ?between December 2006 and February of 2008, this service in South Africa received 30,000 queries with 7,254 individual users?. We can see that FishMS is not a common tool in those countries yet, but it participates at its level, at the environment?s preservation.
In the application sector, legacy cannot be forgotten. The application possibilities are huge but not all the applications can be developed legally. Indeed, the imagination is limited by two factors:
Even if the market is new, there are already applications which have problems with already existing laws because they provide law infractions. For example, some application researchers from California are currently developing an application to help illegal immigrants navigate safely across the border. After being downloaded, immigrants must use a GPS. For the application creators, it is a humanitarian tool designed to save lives. But the border agents have a totally different opinion: "If they fall into the wrong people's hands, be it terrorists or gang members or people that are here to harm our country, they can also use this technology," said agent Julius Alatorre.
Another example can be the use of an application to detect radars in order to avoid red-light cameras, speed traps and sobriety checkpoints.
A U.S. police chief said that applications like PhantomAlert and Trapster were ?designed to circumvent law enforcement ? law enforcement that is designed specifically to save lives.?
These two examples demonstrate the potential threatening power of some applications and the necessity to create laws to frame the development of applications and avoid problems.
The same legal difficulties have been encountered with internet and laws are in development in order to make internet a safer tool.
Even if the application market is quite recent, a lot of applications have already been protected through patents by their developers. For example Goojet has currently registered 5 patents at the INPI: FR2930102 (conference call), FR2919403 (possibility to create Widgets directly from web links), FR2919738, FR2930103, FR2930099.
So, it is important for application developers to check the availability of their idea because patents may already be registered for the same idea.
C - Internal diagnosis
1) 8 Ps
Goojet is a mobile social media; it provides several services. More than just allowing a user to access easily his favorite websites from his mobile, Goojet is also a platform to share the latest contents with the community. Users can personalize this service. They can create, select, configure and share services, information and applications. When registering, the users will select their general interests (news, sports, gossips, social networks, games, going out, women?) to receive themed content regularly, customized according to their will. Besides, they can access anytime websites and RSS flows that already exist on the internet mobile, or contents that are specifically created by Goojet such as games, Mobiwalls, surveys ?
Indeed, the company?s staff developed games to make users interact with each other, such as pioupioufighter, puissance 4, Othello, hangman, but also created spaces where the goojeters can communicate (Mobiwalls, Where are you?, Goodflirt) or create themselves quizzes and surveys.
Goojet emphasizes its service on social interaction and community: they not only provide applications but goojeters can interact together, share contents and access the ones shared by the community through the news. Goojet also provides a free SMS service: each goojeter can send free SMS to other goojeters, as long as the receiver has subscribed to Goojet. Moreover, everything is synchronized between the computer and the Smartphone, it is thus possible to use Goojet on the computer or on the mobile, and a change on the first will impact on the second.
We can thus divide the Goojet service between:
- Core product: Mobile Social Media
- Bundle of supplementary services elements surrounding it:
- Flower of services:
This concept describes the services that help to differentiate the core product and create a competitive advantage. These ancillary services aim at facilitating the use of core product, enhancing the value and the appeal of the core product.
Information: Customers require information about how to obtain and use the service. On Goojet home page, you can contact the support service without registering, if you are concerned about the security or have questions. You can either send an email to firstname.lastname@example.org or email@example.com for technical support.
Consultation: Value can be added to goods and services by offering advice and consultation tailored to each customer?s needs and situation. Once you are registered to Goojet, Goojy, the company?s mascot, will welcome you, and any user will be able to ask questions or stress a technical problem by writing an email to this character at any time. The average answer delay is 1.5 days, and Goojy?s messages are usually written by a marketing intern.
Order taking: Customers need to know what is available and may want to secure commitment to delivery. The process should be fast and smooth. On Goojet, the registering process is easy and quick, either on Internet or on your mobile phone.
Hospitality: Customers who invest time and effort in visiting a business website and using its service deserve to be treated as welcome guests. Thus, any new registered person on Goojet receives a welcoming message from Goojy.
Safekeeping: Customers don?t want to worry about looking after the personal possession that they bring with them to a service site. Here, they want to make sure that their personal contacts (cell phone number, email address) are kept safe. It is possible to activate or deactivate some options (about receiving information from the partners, or receiving text messages from the goojeters) on the website. However it could be a little bit blury, and the marketing department told us that they often have questions about that.
Exception: Flexibility when customers make special requests and expect responsiveness when things don?t go according to plan. Goojy?s messages are personalized to each goojeter to answer better all the problems and complaints, and to create a special relationship with the user. The basic questions have already-made-answers to which the intern in charge of Goojy?s messages ads only the name of the goojeter. More difficult questions are composed on the go.
Billing: It should be clear, accurate and intelligible. On Goojet home page, it is clearly stated that Goojet is free (written in capital letters).
Payment: Customers may pay faster and more cheerfully if you make transaction simple and convenient for them. However, as Goojet is free, this service cannot be linked to the company we are studying.
Place, cyberspace and time:
Goojet is distributed electronically via www.goojet.com on the computer or via m.goojet.com on the mobile. Customers can go whenever they want on the web site and download Goojet, connect to their personal account, change their screen-face and personal content, or even update and delete their goojets.
It is very important for this company to be always aware of the latest news and trends, about what buzzes (videos, content?), in order to post it on the website for the users. As the website is the only interface with the user, it needs to be well designed, easy to use and up to date. The latest contents must be stressed, in the news feeds for instance.
The speed of the loading depends on the Internet connection of the user, as well as its mobile service provider.
Users are deeply involved in the service process of Goojet as there is no intermediary. From the time they decide to use the Goojet application until the time they close it, they are alone and are free to do what they want with it. If they need information, they can access help or FAQ only from the home page before connecting. Otherwise, they have to send a message to Goojy or the support team, or ask questions directly on twitter or other forums.
Goojet?s staff has to answer lots of questions from users per day (average 92 per day) either sent to Goojy, the company?s mascot, or to firstname.lastname@example.org and email@example.com. Goojet?s website also needs to be updated and the employees look for constant improvement either for its design or its convenience. In that purpose, they do benchmarking and gather users? feedbacks on what they like and what they think can be improved either on the computer platform or on the mobile (either passively when goojeters send complaints or recommendations to Goojy, or actively by creating surveys on the users? satisfaction.)
The subscription process is pretty quick either on the computer or on the mobile; the user only has to enter few personal contact information. He will then receive a text message to install the application on his phone. As said earlier, customers can download Goojet either from the Internet to their cell phone, or directly from their cell phone. Once on Goojet, users can easily access what they want, categorized with tabs (?News? ,?My Goojets?, ?Messages?, ?My contacts?) or with the shortcuts of the mobile websites. Indeed, the users can decide what mobile sites they want to access easily, by adding them in ?My goojets?, see blueprint.
Productivity and quality:
Almost every mobile website that the customer wants to access is available on Goojet, and if not, he can ask for it, or either develop it himself (it is pretty easy, but not very well visible or explained on the website). It is very important, once again, to have everything the customer would want on Goojet, and to develop regular new applications (games, surveys, etc?), in order to retain the users.
Productivity is hard to compute for the moment, as the turnover is much lower than the costs and comes indirectly. Indeed, the employees work in order to attract and retain users, for the purpose of attracting commercial clients for the sale of advertising space.
Goojet?s employees don?t have direct relation with the customers as everything is done electronically. However, a customer can communicate with the employees via Goojy, but it is not a real contact, as Goojy is an avatar.
Moreover, some fixed employees use their Goojet account to communicate with the community of goojeters, share content regularly and write news about recent updates. C?dric Giorgi, for example, from the marketing department, is quite known in the goojeter community as the spokesperson for Goojet. He and some other members of the staff are often talking about Goojet and promote its services. It is a kind of word of mouth.
Promotion and education:
The marketing department would like to increase its usage through three main goals:
- An external communication by an increasing marketing and advertisement allowing developing the awareness of Goojet?s services in the mass market--> traffic acquisition and user recruitment through Admob and Adwords, by allowing budgets to key words.
- An internal communication to give value to the goojeters already registered so that they promote the brand image and invite people to register --> Community Management
- A work in public relations in order to attract possible partners and sell advertising space (Appendix 5).
We can divide the promotion in two main categories: the attraction, and the retention.
a) The attraction
For a company distributing its services only electronically, it is of primary importance to be well referenced on Internet. We found out that, on Google, when typing ?mobile application?, Goojet comes eighth on the first page. Adwords is then used for the Search Engine Optimization on the Internet, by allowing budgets to keywords related to our products, and Goojet pays 5 to 20 cents per click, depending on the keywords, to improve their presence on web engines results.
They also use affiliation by putting a Goojet banner on other websites in order to attract with the visitors. Admob, Buzzcity, Inmobi and Quattro are used for the mobile advertising campaigns, to display banners on mobile websites (average cost: 10 cents/ click).
Goojet is also available on application catalogues such as Getjar and Mobango, where they pay on average 30 cents per download. Finally, a registered person costs between 50 cents and 2 ? for paying acquisition tactics.
Another job of the marketing/communication department is to make sure that Goojet is well ranked in the Appstore. Indeed, people visiting the free applications on the Appstore usually don?t go further the 50 first applications, and Goojet?s presence on the Apple Store doesn?t cost them anything.
Those acquisition strategies are all linked together, as we can see in this figure:
Goojet?s e-marketing acquisition budget is 30?000? per month, to which must be added other promotional costs such as B2B (conferences, sponsoring, events), public relations and community marketing (gifts to users).
b) The retention
Special internal promotion is used every time a new service is launched through the news feed. Press releases are used for business strategies decision (fundraising, commercial offers, etc.). The blog is also a powerful communication tool because it explains everything about Goojet; there is a link on Goojet?s website to access the blog.
As they are on the IT sector, and target young adults interested in technologies and social networking, Goojet had to position itself on the trendy social networks, such as Twitter and Facebook. It is used as a promotion tool as well as a communication tool. Questions can be asked through those networks, feedback given, and they also use it to respond to users? questions. Both platforms will permit Goojet to advertise but also to educate users to use Goojet; it is a link between the users and the non-users.
A loyalty program called the ?feather program? has been put in place in order to reward the very active users of Goojet. The more you use Goojet, send messages, sponsor new people, etc., the more you get feathers. People having a high number of feathers can win prizes, such as small gifts.
Moreover, Goojet sent to its users who gave their e-mail adress, latest Goojet news and keep contact (Appendix 6).
The survey (Appendix 4) administered on Goojet in February shows that the majority (44%) of goojeters ended up registering to Goojet after having found it randomly through searches. 37 % of the respondents discovered Goojet via the Appstore, which means that they are ?free registered?. Only 7% of them ran into a Goojet ad to discover the services that offer Goojet. They also send e-mails to users who gave their e-mail address, and update them with the latest Goojet news (annex?)
Goojet?s visual design is simple and consistent: the logo, a chick; and its colors yellow and grey, are recognizable and attractive. The loyalty program with the feathers follows the chick logo, and Goojy, the mascot is a chick. Its slogan ?move your web?, goes along with the mobility of your favorite content.
The website is attractive, with a nice design but might lack simplicity of use. This could frighten people who are not drawn by new technologies because of their complexity. Moreover, there is no help tab available to accompany the new users in their discovery of Goojet.
Price and other user costs:
What is special feature of Goojet is that as long as the access to Internet from your mobile phone is part of your phone plan, the use of all of its services is totally free. Thus, it is very attractive to the customer and it differentiates Goojet from his competitors such as the Appstore which owns free applications but also paid applications. Moreover, through Goojet, you can send free text messages to your other Goojet contacts for free. It is therefore attractive to the web mobile user avid to discover new applications.
The only revenues that Goojet gets come from investors and the sale of advertising space. Therefore, Goojet needs to be very attractive so that advertisers and investors are willing to pay for the advertisement space and invest in it. This means that they should have enough users, and a high usage rate. Indeed, the more brand awareness Goojet has, the more users will be attracted and willing subscribe to it. This will then impact on the company?s attractiveness to commercial partners wishing to advertise on the platform, as well as to potential investors (especially when the company was collecting fundraisings), filling the company?s financial needs.
Goojet proposes to insert flows of advertisement in their news, for a fee of 0,80? per click on average. Thus, if users don?t click on the ads, Goojet doesn?t receive remuneration. There are 5 to 10 advertising campaigns on Goojet per month, and Goojet gets paid per project. The best revenue that the company earned is 4000? and it was for a project of 6 months. Some advertisers are Cr?dit Agricole, Microsoft, Opel, PagesJaunes or Voyages?SNCF.
2) Positioning and target market
Goojet?s positioning is based on the fact that social network and convenient applications are trendy nowadays, and active people like to have it accessible whenever and wherever.
?Move your web? expresses the advantage of having your favorite web contents in your pocket with you, wherever you go.
With this positioning, Goojet focuses on the 19-29 year old urban people. They noticed that the largest part of the users are male (65% male, 35% female according to a survey administered in February to goojeters), so they tend to target more on male , but it is not a specific criteria.
Their marketing priorities can be divided into four segments:
Actions to be done
Super active users
Community management so that they share and make the social platform living
(they use it pretty regularly, but not all the functions, and not as the first application)
The purpose is to make this segment come back more regularly
(people that subscribed to Goojet but never came back and stopped using it)
The marketing department wants to attract them again in order to make them come back, however they can?t find the time to do it right now.
(belonging to the target market)
Goal to attract users and make sure they stay.
3) Goojeter profile and usage evolution
Goojet is one of the largest mobile communities in France:
- + 500?000 mobile users
- 35% of active users connect at least once a week
- Average session time: 12 minutes
- It is an essential access point to mobile web to 62% of users
- On average, 6 mobile sites visited per session
There are three categories of goojeters (not to be confounded with the four segments previously described, the non-users not being goojeters, by definition):
- The super-users: they connect to Goojet every day or several times a week, they use all the functions and services proposed by Goojet, and know all about it.
- The average users: they use only some services of Goojet and come quite regularly (from several times a week to several times a month)
- The low users: they use only one service of Goojet, and don?t connect regularly. They might not see their interest in using it.
We administered a survey (Appendix 3) to 20 persons and we found out that 60% never understand the Goojet concept and 70% don?t find useful.
We saw that there is currently an issue in the perception of Goojet application which as to be improved through our recommendations.
On March, 3 we accessed the usage dashboard of the company:
- Daily evolution of the subscriptions and first homepage views per day since July, 30 2007:
- Cumulative evolution of the subscription and first homepage views since July, 30 2007:
4) Company resources except marketing
If Goojet manages to survive in this sector of activity it is thanks to two fundraisings. The first has been made in December 2007 of 2.3 million Euros and the second in June 2009, of 6 million Euros. Even if Goojet records a turnover of 78?202? for the year 2009 the company has a negative cash flow.
Despite the negative results of Goojet, we need to relativize and explain the previous by the recent start of the company (2007), a commercial offer that was announced in June 2009 and by the heart of the concept: a free service that is viable thanks to advertisement. Goojet believes to reach equilibrium in 2013 that could bring a more stable situation and attract future new partners and clients.
The fundraisings have been made to help the development of the company activity at its beginning and to take a more international face. It also proves that other companies see a real interest into the Goojet?s new concept.
Here is the list of the different costs: functioning costs (sms), subcontracting costs, service providers? fees, production costs, operating subvention, taxes, and social taxes.
The sources of incomes are mainly the external investment and the sale of advertising space.
The human resources and level of knowledge
There are 18 people currently working in Goojet (Appendix 2), and, depending on needs Goojet employs one or several interns for a specific period.
The good management of the company is partly due to the leaders? managerial skills, and experiences as entrepreneurs: Marc Rougier (creator of Meiosys, bought by IBM in 2005), Ludovic LeMoan (creator of Anyware Technologies, bought by Wavecom in 2008) and Guillaume Decugis (who has an expertise in the mobile industry thanks to his career in Sagem).
After an interview of Coralie Maque, accounting and administration manager of Goojet and as it is show on the organization chart (cf annex), every people in the company has a specific job to do in a specific area. But because of the size of the startup everyone knows about the work of each other and departments are interdependent among each others. The managers are all quite multi-tasking, due to the small structure of the company, and therefore let often ?less important tasks? for later.
Main CRM tool: Goojy
Objectives: Answering question to help goojeters into their use of Goojet and orient them toward services that are interesting for the company, for example propose to a person that makes compliments about Goojet to invite some friends to use it.
- Answering user?s question daily,
- Setting-up Excel files to record past questions and answers.
- Used as a communication tool about technical problem from the Toulouse team. When users report a technical problem, we can follow its evolution and answer easily thanks to the comments of the technical staff that the community manager received on her/his mail box.
Delivery time: you receive your application straight forward
After sales service: Possibility to contact the company by sending a message to Goojy for any technical support, or to propose the creation of a new goojet for example. It is also possible thanks to the tab ?contact us? to write any comments or ask any question to employees.
Internal communication is mostly informal in the company. First, thanks to an open space area where everybody is available for everybody else, information is easy to make circulate. In addition, there is a collective Skype conversation, all day long, in which every member of the company can participate. They exchange about small issues, or questions that they want all the employees to be able to answer. Skype conversations can also be followed by 2 or 3 people if necessary and by conference call (webcam, microphone, conference screen) to better exchange on some issues between the main concerned people. Software called JIRA offers as well a great support to share about specific topic. It is used as an intranet to converse and post comments concerning the development of any new project.
It is important that this internal communication is made among the two offices based in Toulouse and Paris. Regularly people based in Paris meet the rest of the team in Toulouse for a massive meeting. However, when we interviewed Coralie, she mentioned that she suffered from the lack of formal communication between employees, especially when she needed to gather all past expenses from every employee.
Research and development
Goojet?s research and development strategy changes regularly along with the commercial and marketing strategies. The new strategy is more oriented as a mobile social media that allows members of the community to share and exchange different types of contents, than creator of widgets.
Creations can be made through partnerships with diverse companies wanting to be present on the internet mobile or finding a financial interest in Goojet. Goojet currently has 26 partnerships (exchange of visibility on both sites), but doesn?t focus on that strategy anymore.
Users can also propose new applications or give ideas about potential future goojets. We can underline that since the strategy has taken another direction to become more towards social and community, the pace at which Goojet releases new applications on the market is slowing down with on average one product every 3 months.
The real challenge that the developers face at the moment and on which they work on now, is the improvement of the product to match with new type of telephones such as Android (used on HTC phones) or the iPhone. Besides, they are constantly working on improving the platform to make it more user-friendly. By the way, a new version of Goojet is planned to be launched in 3 weeks.
In an environment and business sector that evolves so quickly we can wonder if the level and frequency of innovation is high enough to follow and match the requirement of the market.
D - SWOT
Growing market of smartphones (+340% growth for the next 3 years)
Substitutes (iPhone and smartphone platform)
More and more institutions use applications to be present on the mobile phones
Not mature market: threat of new entrants
Most people download free applications
Rapid evolution of the phones and platform (need to adapt)
As a mobile application covers a very large range of activities, there are a lot of possibilities for differentiation and expansion.
Strong legislative framework
Attraction of consumers is facilitated by other consumers ( talk their friend into downloading the application in order to be able to interact and play together)
More and more, technology is developing and evolving. A lot of devices can become obsolete in the following years. Mobile applications have to be creative and innovative and evolving along with technology. The pace is really fast.
Free apps are maybe endangered because they are funded by advertising. More and more people are bothered by the fact of having to deal with a smaller screen of useful content due to the presence of ads.
Supplementary services such as Goojy: people like to have this special relationship and to be sure that their questions will be answered quickly
Website unclear (all services not well explained +benefits?) + safety not clear (phone number given) --> consumer may be reluctant to subscribe
Different positioning than the competitors (Mippin) and substitutes (Appstore and mobile operators interface) --> mobile social media
BUT Definition of Mobile Social Media not known by consumers
Problem of positioning and awareness (if you don?t know it, hard to find Goojet)--> lack of com/ad
Free for the user --> attractive
Co founders and directors have a past experience in entrepreneurship
Lack of formal communication platform between employees
Advertising discrete (no banner display, but insertion of advertising flow in the news)
Ads may be too discrete (paid per click, so small revenues)
First Communitarian Media in France
Communication problem (target), don?t use the communitarian strength as a communication tool
E ? Diagnosis
Smartphone?s market has registered an impressive growth during the last two years and continues on the same path. This growth leads to the growth of the mobile applications market.
As a result, the price of Smartphones is decreasing and these electronic devices became affordable for a large part of the population (the equipment rate is increasing).
As the application developers see the applications market attractive, where a huge amount of money can be made, their number has considerably increased. The range of applications is today very wide and covers most of all the users? conceivable needs.
As it is a new and increasing market, its legislative framework is not complete and some laws exist as the users? protection from unsafe applications is currently imperfect.
There is also some uncertainty towards the dangerousness of phones microwaves for people who use their mobile phones frequently. This issue can significantly impact the mobile phone market in the future but it can also be a great opportunity for the applications market as the use of applications does not necessitate to have the mobile phone directly up against the ear and the head causing health problems.
Goojet is the first mover on the social community market in France and has a different positioning than its competitors, so there are still some opportunities to explore.
The biggest weakness of Goojet is that people do not really understand the Goojet principle in its entirety. Indeed, most of the time, they only see Goojet as an application of applications. This image is certainly due to the democratization of the iPhone because its users have the possibility to download directly applications on the App Store and don?t see the interest of Goojet. Indeed, what they see is just some applications which are the same than the ones on App Store (Facebook, 20 minutes?), but they do not see the social advantage provided by Goojet through these applications. This is largely due to a lack of communication on the brand and the product.
Most of applications downloaded by Smartphone users are free. It is an opportunity for Goojet as Goojet is a free application, and so, Goojet is situated on the main applications segment. It can also be considered as a threat as Goojet really needs to pay attention to a large number of competitors interested by this segment.
As in 2009 the iPhone by Apple, hold the second Smartphone market share in value of 25% after Samsung (27%), it is absolutely not the case for the market share in volume where Apple only hold 8% of the market against 36,1% hold by Samsung. It?s an opportunity because as we apparently think, Apple is not taking all the Smartphone market. In the Smartphone category, the iPhone is the only product of Apple, and as it is a luxurious product it cannot cover all the market because not everybody can afford this product. On the other side, its competitors (Samsung, LG and Nokia), brought to the Smartphone market, different ranges of products covering the needs of nearly every customer. As a result, the IPhone is not going to annihilate all the other Smartphone?s brands, and as Goojet interest seems to have more understanding from the users of Smartphones (except iPhones), we can think that Goojet application is not going to lose its current users and will still continue to interest new Smartphone users.
However, the Smartphones market being fast moving consumer goods, Goojet needs to be constantly searching for updates and adaptations of its products to the entire new platform of Smartphones in order to keep its innovative image and interest Smartphones users.
- Increase average number of new subscribers by 15% (actual average: 1000 per day)
- Increase in commercial customers (advertisers). We currently have 6 of them and we would like to increase this number up to 10 commercial customers.
- Make current users use Goojet?more: currently, only 32% of our customers connect to Goojet every day. We would like to get 45%.
- Better understanding of Goojet concept: make people exploit the social networking of Goojet. Increase the 16% of users who actually use Goojet to interact with the community.
Goojet needs to enhance its communication policy either on their website display or on their brand awareness.
Web site communication
For the website part, currently quite everybody is aware of the functions and how applications work. So, the main idea is to improve the explication of what is Goojet as a social network (personal and customizable RSS flow). For that, in addition to the existing animation with the applications, we thought of publishing a video explaining how Goojet works, and its benefits. The video will be shown all the time when opening the Goojet web page. In this video, there will be two images working in parallel: the first part of the image will be a Smartphone like Nokia N96, and the other part will show the explication on an iPhone. This double explication in images aims to reach every Smartphone users, and to demonstrate that even if you own an iPhone, Goojet is still an interesting application with the social and RSS part (targeted information in one click).
To go on the website part, we thought putting some help for new or existing users on the website pages. Indeed, we observe that when people are connected on the website, the FAQ is no more available, so they cannot get the help they need to understand what the different tabs mean (what is the ?News? tab? What is ?Favoris? tab??). To correct this issue, we thought about putting in place little eggs (to fit with Goojet symbol) on the top left corner of each page of the website, and users could click on it to get information and then Goojy would come out the egg providing some explanation in a balloon.
Another thing which can be enhanced on the website is information during the subscription. Indeed, looking in forums, we found out that people were reluctant to subscribe to websites because personal information were requested (phone number, e-mail?). Goojet has to request phone numbers in order to send people a link on their mobile phone to be able to install Goojet. Currently, under the square where subscribers have to enter their mobile phone number, it is written: ?Ex: +33623456789 ou 0623456789 - Vous recevrez l'application Goojet par SMS?. It would be interesting to add: ?This information will only be used to send you the link to install Goojet on your mobile phone, it will remain confidential?.
After talking to the last Goojet trainee in marketing, we came to the conclusion that, with a clearer website, the company would not have to take care of messages with redundant questions. So, there won?t be any wasted time for anybody and Goojet could focus on improving crucial points like communication.
Choice of the vehicle
For Goojet to gain more brand awareness, we need to implement a campaign for people to see and know about Goojet. Below is the table which helps us to choose the best media vehicle.
- In our process of costs saving it seems to be interesting to evaluate how much Goojet can participate to the new communication campaign in order to reduce expenses.
Budget: As Goojet is a startup with a negative result at this time, TV, cinema, outdoor and radio campaigns are above the amount that they can invest in communication. Depending on the support, press could be accessible for short period of time. Internet is the less costly choice.
Cohesion with the target: with a good selection of vehicle according to their audiences, their specificities and their targeted segments, press and internet could be in cohesion with our target 18-29.
Feasibility: Obviously Goojet will be more efficient in working on internet campaign than press campaign. Indeed, the Goojet?s staff wouldn?t be able to develop themselves a press ad, they would need to outsource this work and it would cost too much. The current staff is expert in this domain and could easily create advertisement it could also offer a good concordance with its activity sector.
Therefore, we selected Internet as the media for this communication campaign.
We then, as a first step have to define the target audience
Because Goojet is mostly used in France, we need to preselect websites with a French audience. Also, it should correspond to the current representation of our clients, in other words an audience composed by the 18-29, men and women.
For the second step create a list of the websites corresponding to our target
This part is based on Activepub.com where we can have all necessary information about display, audience and costs of other websites before buying advertisement space. However, the target defined by this website is larger (18-35) than the one we defined (Appendix 8).
Following are two e-advertising packs that can be proposed to Goojet:
You can see the whole list of websites responding to the constraint of age (15-25 and 25-35) and the budget constraint referring (Appendix 9)
The objective is to group several web sites, with several prices. Then Goojet can choose either the premium pack or the classic pack or choose between all the proposition and make a mix of web site that correspond to their need and costs.
The campaign will be a polite banner with flash. In fact, web site viewers will pay more attention to our advertisement if it moves and with flashy colors than if it is just a simple banner. The message on the banner will state again the Goojet slogan: ?move your web in one click?; it will also show Goojy. Both the slogan and Goojy will move in the banner.
The objective is to gain more users and increase our transformation rate (number of people who will actually click on our advertisement). But it is also to gain brand awareness. In fact if on a specific web site only 1% of viewers will click on our advertisement, all the viewers can potentially see our advertisement. Thanks to that, we will first gain more users, and then we will gain awareness among potential users and also advertisers who will have seen us. Finally, we will be more credible and it will be easier to negotiate with advertisers to sell them advertising space leading to more earnings in order to reach our breakeven point sooner.
Continuity of the campaign
This campaign will be pulsing; a strategy characterized by a low level of media activity in the long term with some high increases in the expenditures and media presence. The periods of high activity will lead to develop awareness and the low level of advertisement to maintain this awareness in customer?s mind.
Copy Strategy for the internet banners:
Promise: to have your favorite web content with you everywhere and anywhere, share it with your friends.
Proof: share of content and interaction through all applications
User benefit: fast information, keep in touch and communicate with their friends.
Tone of the message: humoristic
Make a buzz
Nowadays, it is usual to post comic videos to make a buzz and rely on the virality of this video to spread the word. Some companies hide advertisement behind buzz (like Ray Ban who makes a buzz in showing a man tattooing a pair of glasses on his face).
We thought that it could be a good idea to create a buzz in addition to our campaign on YouTube/ Dailymotion. The idea is to use the creativeness of Goojet employees for them to do one or more viral videos that can be posted and shared. This will permit to gain awareness in a funny way and as the target of Goojet is the 18-29 years old, it is a good media vehicle.
This type of ?advertising? will be time consuming for Goojet employees but costless in term of production and media selection. And it follows the whole strategy of Goojet,that relies on the fact that people share web contents.
The message of the buzz campaign will be oriented on a humoristic tone and prone the community and social media aspect of Goojet. This buzz will consist in several sequences showing Goojy in funny situations. Each sequence would be present two parts:
- A first comic part with a sketch or a joke about someone trying to be in the community in a ridiculous way.
- The second part of the video will consist in one sentence:? If you want to be a part of the community! Easy! Download the Goojet application!?
For these recommendations to be accurate, we computed budgets for all the different packs.
We searched on forums and specialized web site; we also asked Tiffany Colombie about e marketing, who told us that there is only 1% of the web site viewers who actually click on the advertisement. With this figure, we were able to compute how many potential new users we can gain with our advertisement, considering that in this 1%, everybody will register on Goojet.
For the premium pack, all the web sites included, it costs 16 804? per month with a total number of visitors of 9 850?310. The potential users for Goojet will be 98?504 new users per month. The acquisition cost for this new users is 0,17?.
With a banner on Facebook, we can reach 61?300 persons in choosing the segment 18-29 years old, in France and with interest in applications, mobile phones, computers, funny videos, gadgets and social media. This can bring 5100 new potential users per month on Goojet with a budget of 1581? per month. The acquisition cost is 0,31? per user.
Even if Facebook is the most expensive, it is the social media in France with the highest top of mind awareness and so it is a really good opportunity for Goojet to target people that may really want Goojet application on their mobile phone and that have common interest.
The classical pack is less expensive even though, it brings a large amount of customers too
With a budget of 1940? per month, the advertisement will be seen by 2?077?920 visitors, that could bring 20?770 new potential users per month to Goojet. The acquisition cost is 0,0933?
To have a better presence on the Internet and on search engines, we thought that creating a Goojet page on Wikipedia would be interesting. Indeed, when typing Goojet on Google, a person would find Goojet website, then the blog but also the Wikipedia page and the funny videos, as well as different articles on Goojet published on the Internet. Moreover it would enhance the credibility of the website (for the customers but also for the announcers), and links would direct the visitors to the website and the blog.
As the ?application mobile? and ?media social mobile? pages don?t exist on Wikipedia yet, the Goojet staff could develop them and add a link to access the Goojet page in the ?See Also? tab, to increase awareness and the desire to discover this kind of service.
3) Propose targeted advertising space
After communication, our priority, as a second recommendation is about advertising space.
Advertisement is the main source of Goojet?s earnings (see appendix). So, it is important to attract advertisers with an appealing offer. As each Goojet?s user can choose its preferences through a Goojet universe (fashion, sport, news?) we can propose more targeted advertising to advertisers.
In fact, if a user is interested in fashion, shopping? Goojet can offer special contracts to www.vente-privee.com or www.ebay.com to advertise these special users. Goojet is already implementing some kind of targeted advertising but not to target people but more on events: for example, they will put advertisement for SNCF just before big week-ends like Easter week-end, or holidays. We thought that if Goojet enlarged this idea and go further in advertising special customers with special offer that correspond to them, it can bring more credibility to Goojet among advertisers.
The current Goojet revenues in advertising represents only 6% of their communication/advertising expenses (see appendix 7).
So, the most important thing that Goojet needs to focus on is to attract more advertisers through what we explained before, and also attract more users to be more credible to advertisers.
4) Client retention
Our third recommendation is about one problem that Goojet is facing currently: the number of potential users who only go once on the first page and never come back. Firstly, we thought about finding a way to understand why they never come back, implementing a survey sent to them via E-mail. But it would be difficult to get their response as they already gave-up Goojet as an application and will certainly not use their time to explain why they don?t use/like it. Moreover, the major part of people subscribed directly to Goojet from their mobile phone, so they don?t give their email address, and we are not going to use their cell phone number to send them a survey as we said we wouldn?t use it, and it wouldn?t be practical anyways. So Maybe, it would be more interesting to focus on the enhancement of the website and the communication to make these users stay with Goojet and attract ex ones, instead of using money and time to get back the old ones.
As an idea to stick with the new image we want to implement, we thought about a new slogan: ?Share your web?. Indeed, the current slogan ?Move your web? is good with the Goojet as application of applications. You cannot only move your web on your mobile phone via Goojet, but you can also choose what kind of news you want to receive and share it with your friends. Everything is targeted from the application to the advertisement to fit with the users? needs. It seems obvious that if Goojet decides to implement our slogan proposition, the message in the banner would look like: ?share you web in one click?.
Application users are loyal to the applications they download when they are satisfied with it, so if Goojet succeeds to attract new users who download the application, they must stay with Goojet for a long period of time. They can also promote Goojet with word of mouth acting as Goojet intermediaries. Moreover, as it is a social network, people who have Goojet and enjoy the Goojet experience, will ask their friends to join this community to be able to talk with them and share information, like Facebook successfully did and still does.
6) Goojet premium services
In order to increase its revenues, Goojet can implement premium paying services. The staff explained to us that a conference call service (for which they have deposed a patent) used to be available for free on Goojet, but they stopped to propose this service almost a year ago as it was difficult to handle for no return for the company. We thought that this service could be proposed again for a downloading fee of 70 cents (for example, as the accounting department should compute the profitability of this service along with marketing staff advice about what a user would be willing to pay for). Once downloaded, the user will be able to call several of his Goojet contacts at the same time from his mobile phone through Goojet. The company didn?t want to spend time on improving this service as it was not profitable, but if they earn money with it, it would be in their interest to make this service user-friendly and easier to handle for the employees.
A marketing campaign could then be developed to target students willing to communicate easily with their working group, in highly visited websites by students (such as Facebook). Then, relying again on the current virality trend, we assume that students would find it very useful and make their friends and working partners subscribe to Goojet to use this conference call service.
Another paying service could be games that you can play with other goojeters online. Free games already exist on Goojet, but they are all pretty easy and simple. Some more complicated and developed games (with cultural questions such as Trivial Pursuit or so, or strategy games such as Monopoly) could be offered to the goojeter for a small price (for 70 cents for instance, according to the profitability, and the users trend and the competition). Moreover the goojeter wouldn?t play against a computer but against another goojeter connected at that time, enhancing thus the social and community aspect of Goojet. Whereas, with the current games proposed, such as Puissance4, once you played your turn you have to wait until the other reconnects on Goojet to play its and it might be long.
In the growing market of mobile applications, Goojet?s main strength is its different positioning; indeed, it is not just an application that you add to your mobile phone but it is community that you include in your phone. The threat of substitutes is high and in the context of a rapidly evolving industry, the companies need to be reactive to adapt quickly to technological advances. In this new market, everything is not clear; the boundary between substitutes and competitors is blurring. That is why it is difficult to find a stable positioning that will surely be successful on the long term.
However, the main weakness of Goojet is a problem of communication: people don?t see the usefulness of this service and don?t understand what it is for. That is why they need to improve brand awareness with the communication strategy we proposed earlier, to attract more users, and to consequently attract more announcers. It should be a virtuous circle.
Developing paying services seems to be a good way to have more cash in order to invest more in communication, or hire people.
Goojet?s directors expressed the will to internationalize the service soon, firstly in Europe (UK, Germany, and Spain). However, we wonder if they currently have the capacities to survive abroad while they are struggling in France.
H - Glossary
Goojet?: the company
goojet?: a widget that you can get on Goojet
goojeter: a user of Goojet
Social media: ?media designed to be disseminated through social interaction, created using highly accessible and scalable publishing techniques. Social media uses Internet and web-based technologies to transform broadcast media monologues (one to many) into social media dialogues (many to many).? Wikipedia
Pioupioufighter: game created by Goojet on which the user can choose his avatar, and then ?fight? against other users who registered to that game too.
Mobiwalls: space where users can have an open discussion, like a forum. There is a personal
Mobiwall for each account, but others can be created. The goojeter can name it in order to give a theme.
Goodflirt: Widget created by Goojet where a user can create an account (no initial information is used) to chat and flirt with other goojeters.
Where are you?: Forum created in order to make goojeters share with the community where they are at that specific moment.
Mobile widgets:? interactive virtual tools that provide single-purpose services such as showing the user the latest news, the current weather, the time, a calendar, a dictionary, a map program, a calculator, photo viewers, or even a language translator, among other things. Mobile widgets can maximize screen space use and may be especially useful in placing live data-rich applications on the device home screen.? Wikipedia
Appstore: ?The App Store is a service for the iPhone, iPod Touch and iPad created by Apple Inc. which allows users to browse and download applications from the iTunes Store that were developed with the iPhone SDK and published through Apple. Depending on the application, they are available either for free, or at a cost.? Wikipedia
J - Bibliography
Market, Competitors, Customers and Porter?s forces
- http://rawsocket.org/wp-content/uploads/2008/02/crossing_the_chasm.png Main market?/Support market/Future trends
- Interview with C?dric Giorgi and Coralie Maque + internal documents given
- Marketing services, powerpoint 2008, Sylvie Borau (Bachelor Program)
- Interview of Marc Rougier: http://www.neteco.com/157788-marc-rougier-goojet-heure-internet-mobile-sonne.html
- C.Lovelock, J.Wirtz, D.Lapert, Annie Munos (2008), Marketing des services, 6e ?dition, Pearson Education
- C.Lovelock,(2000), Services Marketing, 4th edtion, Prentice Hall
- www.mirage-team.com www.planete-nokia.com