hertag
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Hertag.com aims to create a social networking site dedicated to women. It will allow women to share photos, blogs, and interests. The founder has 7+ years of experience in online advertising. There is a large potential market as most current women-focused sites provide editorial rather than user-generated content. The business will focus on viral and grassroots marketing to acquire members and provide a platform for women to connect and share content globally. It aims to become the leading women-focused social network and generate revenue through advertising.
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hertag
- 2. Mission Statement Hertag.com combines the power of women in a single FREE easy-to-use vibrant online network whereby you can share photos, ideas, interests, and blogs with your growing network of mutual friends! Founder: Alex Fong with 7+ years of online experience in the areas of online advertising and internet marketing. (iWare and Metareward-acquired by Experian Interactive)
- 3. Market Situation Overview: Web 1.0 generation networking sites such as Onelist, eGroups, eVite etc facilitated the networking process with a standard one-to-many format. Web 2.0 generation networking sites such as MySpace, Tagworld, Friendster, Tribe.net, Ryze, LinkedIn etc provided better functionality and facilitated the process of allowing users to grow their network through many-to-many format. Current women-centric sites such as iVillage, and Daily Candy are market leaders in catering to women content. New social networking sites such as MommyBuzz, and ClubMom network target moms while StyleHive targets fashionably-conscious young women. MarthaStewart.com just announced they’re launching a social networking site for women 25-45 next year. Newsstands tend to fill with women-centric titles such as Cosmopolitan, Vogue etc. Day-time TV shows tend to cater to women such as soap operas and talk shows - The View, The Today shows etc. Potential growth in this niche market continues to be strong!
- 4. Problems Most women-centric sites tend to be editorial content generated rather than user-generated with the exception of Blog and Forum functions on these sites. Have to participate in either MySpace, iVillage or Yahoo but not a user-generated content site that’s dedicated to women. Most functions on Myspace are not catered to women directly rather teens with cool features and technology. Most of the content on iVillage have content that are “pushed” to users. New competitors such as MommyBuzz, StyleHive, and MarthaStewart.com are competing with this site so the need to gain critical mass becomes critical.
- 5. Opportunities Opportunities: Create a pure women-niche site that focuses on wide-variety of user-generated content. Women who want to talk online and connect with other women. Women who want to introduce women into their network. Stay in the loop with their group to build deeper relationship with those they already know. People who want to share their favorites, ideas, stories, recipes, photos, video, reviews, blogs, and more. People who want to provide advice, suggestions. Discover new products, services or anything new that have been recommended by others in your network. Focus on Life events such as graduating from school, starting a new career, getting married, having a baby, raising kids etc are events that have an impact on a women’s life.
- 6. Business Concept Aggregate current social networking technology into one site that is targeted towards a demographic group – WOMEN. Create a site that has easy-to-use features through easy drag-n-drop and point-n-click functions. Provide interesting user-generated content through these channels: Photo-sharing, Groups, Blogs, Classifieds, Favorites, Video, & Invite today with additional features such as Chat, Product Recommendations, Advice, Surveys, Shopping Marketplace and Events functions etc in the future. Create grassroots and guerilla marketing to acquire members. Members will provide viral and word-of-mouth promotions to promote the site. Create interesting revenue-generating platforms besides usual banners and search engine placements: lead-generation platforms, monetizing of database, sponsorships etc.
- 7. Competition Competition: Close competition: Myspace, Tagworld, Yahoo, Ivillage, Club Mom, Daily Candy, MommyBuzz, StyleHive, MarthaStewart.com etc. NBC’s pending LOI agreement with Tribe.net. Competitive Advantage: Pure women-centric niche site that allows users to generate their own content. No major player in this niche sector today.
- 8. Goals and Objectives General: to be the pre-eminent site for women to connect and share interests and ideas with women all over the world. To generate sufficient critical mass through viral and grassroots marketing methods. To provide a platform to highlight women’s issues. Technology: To create interesting and useful features on the site so that users will be able to come back to the site to generate even more content by sharing their interests. To be able to build site utilizing customized CMS tools in the future.
- 9. Goals and Objectives (cont’d) Content: To provide fresh and interesting content so that users will feel engage and gain valuable information. Create platform for members to contribute blogs/personal stories/photos, share recipes, and participate in free surveys/contests, etc. Marketing: To be able to acquire members at the lowest cost possible and profitably through various marketing channels: grassroots and guerilla marketing, viral word-of-mouth, organic and paid search engine listings and CPM/CPC/CPA/Affiliate advertising opportunities. Sales: To be able to generate revenue through placements of ads through third party ad networks, search engines and directly in some placements. To create an online questionnaire platform so that major brand advertisers can utilize this platform to gather valuable member information. To incorporate advertisers’ sponsorship/advertising within the platform so that it becomes integrated with the content.
- 10. Financial Plan
- 11. Resource Requirements Human Resources: Engineering: to build customize CMS platform to support growth and additional functionality on the site. CTO immediate - to implement technical requirements based on business strategy. 1-2 software engineers immediate – to execute technical requirements set by CTO. 1-2 software engineers in 6-12 months for future growth. Web Designers: to design new site pages and marketing materials. 1 web designer in 6-12 months. WebOps: to manage web hosting operations. To use external web hosting services. Marketing: to acquire users at the lowest cost possible and also execute product marketing plans. No hire required today. 1-2 marketing personnel in 6-12 months for member acquisition and content delivery. Sales/BizDev: to secure the best possible deal through vendors. 1-2 sales personnel in 6-12 months.
- 12. Resource Requirements (cont’d) Human Resources (cont’d): PR: to organize press tours and respond to press enquiries. To evaluate using PR agency. No hire necessary. Customer Service: to respond to user’s questions. 1-2 CS personnel in 6-12 months. Legal: to evaluate using external law firm. No hire necessary. Admin: no hire necessary today. Finance/Accounting: to manage all accounts receivables and payables. No hire necessary today. 1 Accounting/Finance personnel in 6-12 months. Technical infrastructure: Computers for immediate hires : 4 today. Computers for potential future hires: 12 in 6-12 months. Servers: none today, to consider future investments in 6-12 months. Operation infrastructure: Office space to accommodate about 10 in the next 6-12 months. Office equipment: to rent/purchase copier/printer/fax machine Office furniture: purchase used office furniture. Office software: purchase essential software
- 13. Risks Risks: Relative low barriers to entry, other potential similar sites may enter the market tomorrow. Current sites such as iVillage and ClubMom may add more user-generated functions or create a new user-generated type social network site. Sites that cater to even more of a niche sector such as Young Women (StyleHive), Moms (MommyBuzz) and Kids (Imeem) etc. Social Network sites may be a thing of the past in 6 months as the industry move to newer and cooler technology. How to mitigate risks: Launch customized CMS site in 6 months Generate as much critical mass as soon as possible. Add additional features to the site as soon as possible so as to keep users interested. Initiate other creative promotions/features not found on similar sites such as offline opportunities - private-label products and services.
- 14. Outlook Future Outlook: Market for women-centric sites continue to be rosy based on recent industry happenings such as NBC’s acquisition of iVillage for $600 million. Women tend to influence major purchasing decisions in their households. Women have traditionally been advertiser’s favorite group to target. Social Networking Community continues with growth and cottage industries grow as a result of their existence. Potential for advertisers to target audience through user-generated content (UGC).
- 15. Key Issues Immediate: Obtain advertising/partnership agreement from third party advertising and search engine partners so that site can generate revenue immediately. Outsource external designer and developer to create and maintain the site. Medium Term: Hire software engineers to custom build a CMS platform to allow the site traffic to growth exponentially. Hire key personnel and set up office to support growth. Long Term: Continue to hire essential personnel on a case-by-case basis. Set up Sales office in US to connect with US advertisers. Secure aggressive terms for key partnerships based on growth potential.