Facebook face to face offline meeting Facebook develops

Facebook face to face offline meeting � Facebook develops a new offline social networking website called “Face to Face” targeting young college students. � It offers the opportunity for students of different interest groups to meet and get to know each other offline. � Free 3 Month trail. � 19. 99 Monthly Fee or 199. 99 Annual Fee

Creative Insight and Stretegy � Make real friends in the real life, by Facebook. � If you are young and active, join us. � It not only has all the features of online social networking, but will also be focusing heavily on conducting offline meetings, events and services to our social networking community. � Students want to meet real people, especially new people in the real life to have a more realistic social networking experience

Creative Insight and Stretegy(cont. ) � � � college student have more free time and are very active in joining social groups in universities and outside. no competitors who can provide a complete social networking experience similar to what Facebook’s online networking features and this new offline meeting feature. friendly user interface, good for students with less computer knowledge.

Creative Insight and Strategy (cont. ) � Facebook has a huge user base (1. 06 billion) which will be really useful for creating this new service.

The Company Facebook � � � Facebook's mission is to make the world more open and connected Facebook has 1. 06 billion Active users by the end of 2012. Start by college student, originally targeting college students.

SWOT analysis � � � Strengths • Brand new idea. • Facebook already has a huge user base, and it is easier to get existing customers to join our new service. • Social networking has a tested and successful formula. Creating a site will be easy. • The social networking service brings a huge amount of traffic everyday which is helpful for getting revenue through advertising alone.

SWOT analysis(cont. ) � � � Weaknesses �It takes time for people to know this new service and get used to it. �Facebook is too famous for online features only. �Hard to attract users who is shy and not willing to meet other people in person. �Focusing on college students along may lose some potential users.

SWOT analysis(cont. ) � � � Opportunities • Social networking era. • Young people are more active. • Growing internet population. • There are currently no strong competitors for offline social networking.

SWOT analysis(cont. ) � � Threats �There is a chance that the idea might fail. �More competition in the future. Big online companies like Google, Amazon and others might enter the market. �Failure to sustain users over the long run since young people switch interest fast.

Industry analysis � � � Two types of social networking sites in the market, online and offline. Facebook previously focuses on providing online social networking experience Now We combine both the online social networking experience with offline social networking experience by organizing timely events.

Competitors analysis � � � Google and Microsoft with their own online social networks. Websites that provide forums and discussion boards to interest groups No one is offering an online and offline combined service.

Customer analysis � � � College students, young people (18 -25) Users who are currently using other social networking websites People who do not have time to meet their friends but wants to keep in touch with them People who wants to meet new people with similar interests People who wants to play sports but cannot find partners people who are single and looking for a date and so on

Target Segment � � � � 30% of the current users are within the US. More than 20 million users are US college students College students growing up with the web 2. 0 concept Around the whole country, start with big cities where have more universities. College students who are more active and love outdoor activities. College students who is price sensitive. Aforementioned interest groups Students who wants to try new things.

Point of Difference � � � Online and offline services in one. Targeting college students. Organizing official events college students are familier with More than one specific area Prize for the winner of selected events No longer need to browse through different website and find similar people, Face to Face solve their problem in a single place

Positioning � � � “Face to Face” is a special service where college students can actually meet with each other Long lasting relationships for students by meeting people in the real life. Raise the bar for social networking service Spend time wisely for students. More fun than online service alone.

Product Characteristics � � � Communicate both online and offline. Online feature is already a successful formula. Fulfill students need for new experience and the hope of going outdoors. Options for different interest groups that college students are interested in: sports, dating, video games, celebrity fan clubs and so much more. Integrated service with Facebook

Product Characteristics(cont. ) � � � � Forum-like space for students to talk, share, and ask questions Free 3 month trail period Low price as 19. 99 a month, or 199. 99 a year. Facebook pay for all the fees of the events. Management team for interest groups Management team evaluation. Advertise during the event Build good relationship with sponsors.

Brand Name � � Face to Face Socialize with real people face to face Easy to remember Easy to spread among students

New Products � � More interest groups in the future Add new feature in a monthly basis Conduct free events in various cities every month that enables new users Membership discounts for people attending a certain number of events in a given year.

Line extension � Our initial service and target market gives us a chance to know that area and give our employee the chance to build connections in that area, so we can provide better services and organize better events for our social network members other than the current targeting market- college students.

Brand extension � � � Learn from experience Observe and gather information from the events we hold Make our own product in the future

Services � � Avoid intangibility of our service, give out prizes to certain events, either in form of money or event relating product. management team going to the events also make our members see and feel our work Avoid inconsistency, ask our members about their experience, they can also give us feedback on the discussion broad. So we can have an idea about what our management team need to improve to provide better services. rate our management team internally, where best team gets reword and worst team gets warning

Services(cont. ) � � Avoid inseparability, provide online customer service, whenever our customer have a question, we will make sure someone from our management team will answer them No perishability issue

Price Strategy � � “Face to Face” will not be very expensive since they can use their existing programmers and developers to create this website Renting place is the only big cost No channel cost, Facebook directly to end users. Demand: Facebook sets a price tag of 19. 99 $ per user who is going to attend the official event. The price is also affordable to many students and we will be offering free food for everyone attending the event. There is very limited chance for students to get frustrated for spending 19. 99 $. Since the price is low, the demand for users willing to attend the event will be very high.

Price Strategy(cont. ) � � Profit : Facebook is looking for a profit share of 25 % after all the fixed and variable costs. Rather than focusing on increasing the price Facebook is trying to lure more users by offering them a very attractive pricing. And there will be more revenue coming in from the sponsors who will be displaying their ads on “Face to Face” webpage and also during the events.

Price Strategy(cont. ) � � Market share: Since Facebook is already an established company and has more than 1 billion users in its database; “Face to Face” plans to occupy more than 75 % of the offline social networking market share. There are no major competitors who are very successful in connecting online users by conducting offline events.

Price Strategy(cont. ) � � Sales: After launching the new service, more and more students will start signing up for the events due to its promotion strategy and already existing user base. The free events that Facebook conducts as a part of its promotion strategy will be tremendously helpful since price sensitive groups like to try the service for free before spending any money.

Price Strategy(cont. ) � � Survival: Even though Facebook has introduced a brand new service and occupied a large chunk of the market share, it will face competition from its rival web giants such as Microsoft and Google. So in order to survive this market, Facebook has to listen to people’s feedback and continue improving the service. We need to keep adding new social interest group categories that students are interested in and also modify the existing low performing ones. We will have to offer attracting pricing and service than our competitors.

Price Strategy(cont. ) � � Competition: There are no major competitors who are offering a service similar to “Face to Face”. Even though there are minor competitors who are offering offline social networking services, they don’t have a large existing user base more than that of Facebook. And also they don’t focus on multiple social interest groups. So with a simple promotion Facebook can beat its minor competitors. But in the future Facebook will be facing a major competition from its rival giants Microsoft and Google.

Pricing strategies � � Odd-Even Pricing: Facebook charges its users 19. 99 $ to attend its offline event and when people look at this type of pricing they might think that the service is priced “something over 10 $” rather than “about 20 $”. Bundle Pricing: Users has an option to choose a 12 month membership for 199. 99 $ which gives them access to attend all events organized by Facebook without having to pay for extra charges. They don’t have to pay 19. 99 $ whenever they sign up for the event

Pricing strategies(cont. ) � � � For every two months Facebook will offer a 50 % discount for attending a selected number of events. No geographic price adjustments required for this new service since people will have to pay the fixed price no matter where they live in the United States. And also all the people will receive the same kind of service irrespective of their location. pricing strategy for “Face to Face” is legal since they are not overcharging the people or deceiving them by offering less for what they actually advertise for.

Place Strategy � � Online part of our service will be built up by Facebook’s internet engineers, and on Facebook’s homepage, an additional tab of “Face to Face” will be added, by clicking the link, you will be taken to a new page, where you can sign up easily Offline part including different places to hold different events, Facebook will be paying all the expense, but since our official event is monthly basis, it is pay per use.

Promotion Strategy � � half of our budget to do the promotion of our new product, which is 5 million dollar. Advertising, sales promotion, direct marketing, personal selling, and public relations For advertising, we plan to do it on magazine, TVs, as well as online on some high traffic websites Sales promotion, which including free official events trail for new registered member, and free events open to all social network members once in a while

Promotion Strategy(cont. ) � � � Direct marketing, send out emails to all currently Facebook members as well as making contract with different universities to email their students Personal selling, In the event, one or two people from our interest group management team will help walk by people to register for Facebook, if they are interested in or event and willing to join. Public relation, Facebook will also show its support during certain public event especially sports events

Promotion strategy(cont. ) � � ads on TV for a 30 second slot start from year two, to deliver a message to people that Facebook is not only an online platform for people to communicate, but also am offline destination for you to go On all major TV channels, and more concentrate on sports channels that students are interested in. Because we believe college students who are interested in our services are more active people, regardless of their age, and these people like watching sports.

Promotion strategy(cont. ) � Advertise on magazines and school presses. � Sales promotion, we plan to offer our official organized event to every Facebook members a 3 months free trial. Within that period, any new members can enter our official event without paying. Furthermore, we also plan to offer a free event for selected interest group once every 2 month.

Promotion strategy(cont. ) � Facebook is going to send out emails to all Facebook users that leave us their email address and from contracted universities email system to their students. In the email, we will let them know about our new “Face to Face” service, the 3 months free trial, a link to register, and a picture with “Face to Face” logo on it. For the massive existing Facebook users, we allow them to join “face to face” using their current username and password.

Promotion strategy(cont. ) � � Personal selling: At least two members of the management team will be there for every event, so whenever people walk by and interested in our event, our staff will help them to register to Facebook, so they can either join the event right at that moment if space allowed, or join up our next event. Public relation: We plan to support certain sports events so that the equipment they use during the event will have Facebook and “Face to Face” logo on it. For exchange, Facebook will report their event by both text and pictures. We can also report celebrities who join our social network, to get people’s attention.

Financial Projection � � � � Year 1: Ads on 5 major magazines every month: = 600, 000 Cost of build up the website and maintaining it = 10, 000 Cost of designing the ads = 10, 000 Management team salary = 4, 800, 000 Renting place and cars, food and other expense = 840, 000 Revenue for joining the event = 1, 300, 000 Total cost = 6, 260, 000 Total revenue = 1, 300, 000 Net profit: = (4, 960, 000) Expected user base at the end of the 1 st year = 400, 000 users. 100, 000 from other social networking sites who are interested in offline meetings, 300, 000 from Facebook original members Budget = 10, 000 Money left: = 5, 040, 000

Financial Projection � � � � � Year 2: Ads on 5 major magazines every month = 600, 000 30 seconds TV commercial = 480, 000 Cost of designing new ads = 20, 000 Cost of maintaining the website = 10, 000 Salary expenses = 4, 800, 000 Renting place and vehicles, food and other expenses = 840, 000 Revenue for joining the event = 1, 300, 000 Revenue for online ads base on our 400 million user base = 500, 000 Total cost = 486, 270, 000 Total revenue = 501, 300, 000 Net profit = 15, 030, 000 Investment budget = 10, 000 Money left from last year = 5, 040, 000 Face to Face project earning = 10, 070, 000 Company starts making huge amount of money starting from year 2. Expected user base at the end of 2 nd year = 500 million

Financial Projection � � � � Year 3: Ads on 5 major magazines every month = 600, 000 30 seconds TV commercial = 480, 000 Cost of designing new ads = 20, 000 Cost of maintaining the website = 10, 000 Cost of buying a new server = 500, 000 Management team salary = 4, 800, 000 Renting place and vehicles, food and other expenses = 840, 000 Revenue for joining the event = 1, 300, 000 Revenue for online ads base on our 500 million use base = 600, 000 Total cost: = 486, 770, 000 Total revenue = 601, 300, 000 Net profit = 114, 530, 000 Expected user base at the end of third year = 600 million users

Financial Projection � � � � Year 4: To keep our customer excited and to attract more people, we expand our interest group events to 10 per week. Ads on 5 major magazines every month = 600, 000 30 seconds TV commercial = 480, 000 Cost of design new ads = 20, 000 Cost of maintain the website = 10, 000 Management team salary = 9, 600, 000 Renting place and vehicles, food and other expense = 1, 680, 000 Revenue for joining the event = 2, 600, 000 Revenue for online ads base on our 600 million use base = 700, 000 Total cost = 491, 910, 000 Total Revenue = 702, 600, 000 Net profit = 210, 690, 000

Face to Face � � � We will be successful We are the future of social networking Thank you!