Skype marketing final

University of TsukubaMBA-IB

Marketing ISkype HOMEpage2 March 2013Final Presentation

EXPECTATIONS

AccessibilityQuality

CONCERNS

Time ZoneCost

USE PURPOSE Regular

UpdatesUrgent

NotificationSpecial

Occasions

Target Segmenting in Consumer Mass Market

General Families & Friends

GEO-DEMOGRAPHICS

PSYCHOGRAPHICS

MASS MARKET

Diverse Locality within the Family

Highly Committed Highly Communicative Express Appreciation

SOCIOGRAPHICSInternet/ SNS Users

FREQ

UEN

CY

INTE

GRATI

VE

FEAT

URES

+

TARGET SEGMENT

Highly Connected Families

Customer Insights Want to know emergency

situation quickly because I can’t come and help

soon…

Want to make sure that my

family is doing well regardless any time zone any where!!

I want to get in touch with my

family , see how my grand

children are growing up

abroad

While your contact is offline, calls & SMS messages can be forwarded to your contact’s mobile

While you are not able to get your contact on mobile, voice messages can be recorded & received

While you are engaged and not able to come online, you can personalise auto reply message that will notify your contact of your current status

Skype Secreta

ry

Forward calls & messag

esVoice mail

Auto reply

messages

Enhanced Offline Accessibility Enhanced Offline Accessibility

A Vibrant Shared Bulletin Board

Reality

Uploading videos & photos

Making your own cardsFamilyCelebrations

Last Visit Notification

Child growth tracker

Clock Time zone

Last visit at 20:17 p.m.

We proudly present to you

Skype HOMEpage

http://sabirova.osh.kg

http://sabirova.osh.kg/

Family needs a home to get together . . . Now you have real “HOMEpage” to be connected

with family located internationally

Skype HOMEpage

offers continuous

family connectivity!

Skype HOMEpage is for Everyone!

From your grandparents

Happy Baby Shower

Sign up now for just $30!What you get: 1 hardcopy of lifebook, reserved delivery up to 25years in the future, automated 200 pictures & 50-page editing*Get $20 discount certificate with monthly membership of Skype HOMEpage for as low as $1.00/month

Skype LifeBook!Create a LifeBook and send it as a present for your loved ones on special occasions such as baby showers, birthdays or anniversaries!

Take Photo & Update

Send Message

Call

Nicole: Mar20,1987Growing very fast…congratulation joining elementary!

Skype HOMEpage apps

are simple and easy even for grandparents to update comments and pictures

instantly!

$3 per month ($1 per ID)

Family needs a home to get together . . . Now you have real “HOMEpage” to be connected

with family located internationally

NOW! you got everything you need to stay close with your family even when they are at different parts of the globe!

Skype HOMEpage offers a comprehensive tool to trace if your family is doing okay, exchange video messages when they are offline and many more features!

You can even track the growth of your grandchildren and make life history books as future birthday gifts!

This great family package at only $1.00 per month per ID!

Family account(3–ID package)

Widget services (Family bulletin board, e-cards, videos & photos upload, etc.)

Forward calls & SMS messages

Voicemail & auto reply messages

High quality headset

From $4.49 per month*(Unlimited IDs)

Back up-2Supporting DataQuestions & Answers

We proudly present to you

Skype HOMEpage

http://sabirova.osh.kg

http://sabirova.osh.kg/

Back up-2Supporting Data

Target Segment & Positioning Back up

Skype Fast Facts Technology & ProductsInternet-based peer-to-peer network(P2P)Low cost structureFree products 94% usersPaid premium products 6% usersBusiness Approaches:Continually drive new usersBetter promote paid productsIncrease revenue per paying user

User Base & Market ShareOver 500M registered users Aim to grow towards 1B registered usersSlowing down trend of all users (registered, connected, paying)Second in Instant Messenger Market Share 18% (after MSN 64%)Largest in VoIP Market Share (in mobile broadband) 82%Growth rate compared to the same date in the

previous year

46% -> 40%

40% -> 38%

26% -> 19%

Target Customer Segment

Frequent

(Regular)

Emotional Engagement

Transactional Engagement

Infrequent

(Irregular)

General Families &

Friends

Highly Connected

Families

General Professionals

/ Business Users

Highly Communicati

ve Professionals/

Business Users

Blue Oceans

CO

NS

UM

ER

BU

SIN

ESS

Positioning StatementTo highly connected families that are located

internationally, SKYPE is a brand of communications solution that provides quality, easy and cost-saving means of intimate connection with all family members even when they are offline

Target Segment Frame of Reference Point of Difference

Highly connected families with members located internationally who want to regularly touch base with one another (young & old); not restricted by time zones & internet status (online or offline)

Product Category: Communications Solution

What Customers need: Effective communication (even when offline); channel for intimate updates beyond calling and messaging regardless of time difference

Essence of Value Propositions: Skype enables families to stay connected more effectively

Product Features: Offline accessibility (Secretary); integrated platform for regular & intimate updates Cost: Low cost package

Competitive Positioning in Target Segment (A)

Intimate Family Connection(Integrative features)

Continuous Connectivity(Offline accessibility)

LOW HIGH

HIGH

LOW

Skype

Social Network Sites

• Facebook• Twitter• Google+

Computer

Mediated

Comm.

• MSN• Google Talk• Yahoo! Messenger

Smart-

phone

Apps

• Line• Whatsapp• Facetime

VoIP • Vonage

• Phone.com• Lingo

*Based on general sentiment and perception, not actual statistics

Competitive Positioning in Target Segment (B)

Customer Loyalty(Retention rate)

Revenue Potential (Profit margin)

LOW HIGH

HIGH

LOW

Skype

Social Network Sites

• Facebook• Twitter• Google+

Computer

Mediated

Comm.

• MSN• Google Talk• Yahoo! Messenger

Smart-

phone

Apps• Line• Whatsapp• Facetime

VoIP

• Vonage• Phone.com• Lingo

*Based on general sentiment and perception, not actual statistics

Potential Market Size– International Families

51 million

35 million

49 million

16 million

Research demographics: 1,600 people from 54 different countriesSource: http://kindo.com/blog/2008/02/28/this-is-how-international-todays-families-really-are/en/

7 billion world population = at least 1 billion families 50% of 1 billion families = 0.5 billion families to reach!

More than half of the families have relatives living outside their home country!

54%

Potential Market Size – International Migrant Stock

Source: United Nations, Population Division/ DESA, 2012 http://esa.un.org/MigOrigin/

33.00%

7.00%

28.00%2.50%

10.00%

32.00%

Percentage of International Migrant Stock

AsiaLatin AmericaNorth AmericaOceaniaAfricaEurope

51 million

35 million

49 million

16 million

4 million

ROI of Family Package Customers

Per month basis Current Potential

Time spent with family (virtually)

0.5 to 1 times a week

2.5 to 5 times a weekEstimate 5 times more

Increased frequency of communications

Percent of participation by family members

60% 100% Increased percent of participation including elderly members

Dollars spent on online video calls/ IM

0$ Fixed

Fixed monthly expenses (predictable)

80% reduction of expenses (cost-saving)

Dollars spent on urgent SMS messages

$0.11 x 20 SMS = $2.20Based on global rate at $0.11

Fixed

Dollars spent on urgent calls (landlines/ mobile)

$20Estimate based on pay-as-you-go VoIP

Fixed

Total expenses 22.20$ 3.00$


Use CaseBack up

Urgent callsUrgent calls

Urgent messagesUrgent messages

Any time no matter even it is offline

Any time no matter even it is offline

47,7% of interviewed international families wish

for urgent connections

47,7% of interviewed international families wish

for urgent connections

Always stay connected

Always stay connected

If your contact is offline

Calls & messages are forwarded

To your contact’s cell-phone

New “Family Package” New “Family Package” New “Family Package” New “Family Package”

18,2 % of interviewees are to have it

to keep up with their family

Shared Bulletin Board & Room

New “Family Package” New “Family Package”

FamilyCelebrations


20,5% interviewees

are to celebrate occasions together

online

18,2% interviewees

areto measure up child’s growth

and share with other

family members


Making your own cards Clock Time zone

Make unique cards online for your loved ones,

6,8% interviewees preference

Check the time zone directly on

your shared room,27,3%

interviewees preference


Family Bulletin Board

Uploading videos & photos

Last Visit Notification

Last visit at 20:17 p.m.

Last visit is fixed for members

awareness,15,9%

interviewees preference

Upload videos, photos directly in your online shared room,

38,6% interviewees preference



Customer InsightsBack up

Video Call;Great! I can see his

face and tell that he is happy without any

problem! That’s why I love Skyping!! Besides, it is far cheaper than

fixed line It would be better if I could his photos and videos

taken outside somehow…

Offline can do nothing;

Why is he not online? Is he sick? Or does he

have some trouble on the way home? Want to

send him message immediately. Actually it

is hard to be online always because of time difference. Wish to have

communication tool even works offline so that easier to keep in

touch.

Skype is very good tool to communicate but restrict the communication among family forcing the both sides to be online in the same time! It is very hard for internationally located family living in a different time zone!!

How Skype meets and doesn’t meet customer insight

Enhance Offline Communication;

• Urgent messaging notification

• Last visit notification• Uploading videos and

photos• Birthday alert

Tight Family even closer;

• Clock time zone• Shared bulletin board• Child growth tracker• Making your own

cards

In order to meet customer insight,we would like to have

Customer Insight from our questionnaire (1/4)

PreconditionTarget segment: families in Japan with family members located internationallyPeriod: 4th February – 11th FebruaryTool: Survey Monkey questionnaire distributed to target segment through email or FacebookValid reply: 44 Q1. What tools do you mostly use to contact your family in abroad for voice talk ?

Fixed line

Skype

Facetime

Google talk

Line

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

11.40%

75.00%

13.60%

0.00%

0.00%

Skype is the most popular tool to contact for internationally located families


Q2. How often do you contact them?

Everyday

4 to 6 times a week

2 to 3 times a week

Once a week

2 to 3 times a month

Once a month

Once a year

Less than once a year

0 0.05 0.1 0.15 0.2 0.25

6.80%

15.90%

20.50%

22.70%

22.70%

6.80%

4.50%

0.00%

Keep updated

Just talking about what happened recently

Make sure that the other side is doing well

Tell some urgent news

Celebrating occasions

0 0.2 0.4 0.6 0.8

68.20%

47.70%

50.00%

25.00%

20.50%

Q3. What is main purpose for you to call your family?

More than half people contact very often, more than once a week.

People want to know the updated situation of family members and make sure they are doing well


Q4. What is your difficulty to contact your family in abroad with the tool you currently use, if any?

• Sometimes there is some difficulty to hear the voice clearly• I sometimes cannot here the other side clearly• Not everyone has iPad or Apple products so that's when we switch to Skype, but the quality isn't

always very good.• Sometimes the call quality is not the best• Unclear voice and noise.• Quality• Delay in sending/receiving message on Skype via smart phone sometimes.

• my country doesn't have a good internet service.• sometimes the internet connection is not good• Everything needs good internet connection at both ends.• The internet connection in NZ is very poor therefore the video qaulity is poor• Poor reception/ quality of connection• Internet• poor connection or drops out, video freezing, audio distorted or static-y• connection is not stable, the call gets disconnected at times. And mostly, while talking, there's

always lagging.• Connection with only wifi Poor connection• Dependant on my internet connection, which is extremely unstable.

• My parents have difficulties to use computer things.• technical difficulties, such as mic problems• Hardware Limitations

Technical Issues

Quality of voice call

Internet Connectivity

Hard ware difficulties

Need to solve!

Need to solve!

• time difference• Internet connection speed Time zone difference• Don't know what time it is in the country where they are; don't know their

schedule; don't know their international number to start a connection

• unable to contact anytime anywhere because my parents do not use smart phones.

• skype does not always show me when somebody comes online. it worked well with the old version, but not with the new one. also i would like to get the function back for sending files via skype

• Japanese culture is my only obstacle really. Using phones here and there is considered impolite by the social norms -_-'‘

• no problem, I am using Mobile VOIP, its convenient. buying credits online and using it from internet, its cheap too

• cost for fixed line, utilize phone card

Q4. What is your difficulty to contact your family in abroad with the tool you currently use, if any?


Unique Issues for internationally located families/ Skype functionality

Time difference

Can’t reach the other side

Culture, cost etc…

Need to solve!

Need to solve!


Q5. What kind of service do you wish to have to connect with your family closely?

Birthday alert

Making your own cards

Uploading videos and photos


Shared bulletin board

Urgent messaging notification

Clock time zone

Last visit notification

0 0.1 0.2 0.3 0.4 0.5 0.6

20.50%

6.80%

38.60%

18.20%

18.20%

47.70%

27.30%

15.90%

• Urgent messaging service would be most appreciated• People also want to upload videos/photos and share

with family members. We could utilize these service in a “family bulletin board”

• Time zone clock is to solve common difficulties for internationally located families

The key differentiator!

The key differentiator!


Pricing & Commercial ModelBack up

Headset

Pricing and Commercial Model

High benefit

Keep free

users

Increase paying users

Acquire family

package users

Keep low cost

structure

6% to 7% 1%Key Business Drivers:Increase paying users through Family Package subscriptions1 Family Package potentially brings in additional 3-5 users Key Advantages:

Viral marketingLow cost tech (P2P)Low cost resources

2010 2013

Net revenues (thousands)$859,8

15$1,597,3

44

Net revenues / paying users $97.7 $96.0

Cost of net revenues (thousands)

$415,702

$713,100

Cost of net revenues / connected users

$2.9 $3.0

Operating expenses$423,4

64$713,10

0

Operating expenses / connected users

$2.9 $3.0

Income$20,64

9$171,1

44

We want family

package!

Familybulletinboard

Skype secretar

yPremiu

m package

$3(per 3 IDs)

Entitled 3 IDs

1-month free trial

2007 2008 2009 2010 2011 2012 20130

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

4,600,0005,800,000

7,300,0008,800,000

16,639,000

# of paid users

Appendix 4 The projection of future growth with current model

16 million paid users in 2013

238 million connected users in 2013

2007 2008 2009 2010 2011 2012 20130

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

52,000,00075,000,000

105,000,000

145,000,000

237,700,000

f(x) = 31647169.8113208 x + 15339622.6415094

# of connected users

0 50,000,000 100,000,000150,000,000200,000,000250,000,0004

5

6

7

8

9

10

f(x) = 10.6316 exp( − 0.00000000394573 x )

The relationship between # and % of paid users

Lift up to 7%

(level of 2009)

Appendix 8 Customer lifetime value

-250

-200

-150

-100

-50

0

50

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Yearly revenue incl. churn rate Acquisition cost-205

27 25 23 21 20 18 17 16 15 14 13 12 11 10 9 9 8 7 7 6 6 5 5 5

-250

-200

-150

-100

-50

0

50

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Discounted cash flow

Lifetime of Skype family package

25 years Skype lifebook max. delivery period

Yearly revenue of Skype family package

36 $ =3 $ * 12 months

Retention cost 6 $ =same as the cost for current paid users

Gross margin of Skype family package

30 $ =36 $ – 6 $

Discount rate 3.08 % =30Yr daily treasury yield curve rates (as of 02/26/13)

Churn rate 4.5 % =estimated churn rate

Acquisition cost 241 $/user

http://www.markusgrundmann.de/category/business-models/#.US2mjFdPh8F

Lifetime Value (=NPV): 103.3$

Appendix 1 Concept

Offering charged family package including family bulletin board, Skype secretary, headset present as well as current premium package functions with limited number of family location (within three IDs) and one month complimentary trial.

Skype users have high e-commerce literacy and high income relatively.• 22.7% has a household income of

$100K+• 78.3% has shopped online in the past 30

days

6% Skype out paid users and low cost structure have supported 94% free Skype users.

Appendix 2 Current business model

8.8 M paid users (6% in active users)

145 M active users

663 M registered users



Appendix 2 Current business model - Highly competitive

Internet and software companies Telecommunication companies

Lack of focus on voice and video communications.

Lack of scale in community of voice and video communication users

Limitations on voice/video quality and ease of use

Higher-cost products

Higher customer acquisition cost

Regional services with limited geographic reach

Single mode of communication

Appendix 2 Current business model - Technology – P2P

peer-to-peer network allows Skype to operate at significant scale and to manage the integrity of a network that at peak times can include approximately 29 million concurrent users, each of which is considered a “node” in the network. In this peer-to-peer model, peers can be both suppliers and consumers of resources, in contrast to the traditional client-server or web model where only servers supply and clients consume.

Appendix 2 Current business model – Low cost marketing

As one of the largest global communication platforms with a well-known brand, we have benefitted from significant user growth through “viral” marketing, by which we mean high levels of word-of-mouth and free media coverage for our products that is driven by, and drives, the size of our global network of users. We believe that a significant number of our users have registered for our products based on positive word-of-mouth recommendations from other users.

Country / Region Number of employees

Primary function Facilities

Estonia 368 Product Development Lease in TartuUnited Kingdom 225 Sales and Marketing Lease in London

United States 139Sales and Marketing and Product Development Lease in Palo Alto

Luxembourg72 General and administration

Headquarter, lease in Luxembourg

Sweden 42 Product Development Lease in StockholmCzech Republic 41 Product Development Lease in Prague

Asia Pacific24 Sales and Marketing

Lease in Tokyo, Hong Kong, and Manama

Total 911

Appendix 2 Current business model – Low cost resources

Appendix 6 A simple P/L

2008 2009 2010 2013

Net revenues (thousands)

$551,364 $718,903 $859,815 $1,597,3

44

Net revenues / paid users $95.1 $98.5 $97.7 $96.0

Cost of net revenues (thousands)

$293,201 $343,981 $415,702 $713,100

Cost of net revenues / connected users

$3.9 $3.3 $2.9 $3.0

Operating expenses

$235,301 $395,715 $423,464 $713,100

Operating expenses / connected users

$3.1 $3.8 $2.9 $3.0

Income $22,862 -$20,793 $20,649

$171,144

•Profit of $90 per a new paid user

Appendix 7 Headset informationSkype currently has the Skype shop for headset and some materials. They have enough stocks and effective sales channel.


PromotionBack up

A family needs a home to get together... now you have a real "HOMEpage" to be connected with family located internationally.

Skype's new family plan is ready to launch! To celebrate, we're giving away a free year membership to one lucky family. To enter, post your most creative family portait here. We'll hold a vote with our Facebook followers and staff next week, and the winner and their family will get a free year of Skype's new family plan! #SkypeFamilyPlanDetails: http://spr.ly/6034nzno

Skype's Family Plan

Effective Promotion through social media & “viral”

Co-create value with Skype Facebook fansDetailed information on Skype’s blog

Many opportunities for word-of-mouth

Allow users to make their own content on Twitter

In-obtrusive advertising in Skype

Details: http://spr.ly/6034nzno

membership to one lucky family. To enter, post your most creative family portait here. We'll hold a vote with our Facebook followers and staff

From Skype's own shareholder's report:

As one of the largest global communication platforms with a well-known brand, we have benefitted from significant user growth through “viral” marketing, by which we mean high levels of word-of-mouth and free media coverage for our products that is driven by, and drives, the size of our global network of users. We believe that a significant number of our users have registered for our products based on positive word-of-mouth recommendations from other users.

Word-of-Mouth Advertising proven effective

Share special moments with your family any time, any place.

Click here for more information on the Skype Family Plan.

Share special moments with your family any time, any place.

Click here for more information on the Skype Family Plan.Use the Skype log-in screen to enhance current

customers' experience. They will bring in their own family members using the plan.

Increase Visibility upon registration

The main cost is the money not received by giving away free Family Plans.

The 1-year membership is $36, so, with each free customer, the cost is $36.

We are planning monthly birthday contests and contests for major holidays, so 20 contests a year.

20 contests x $36 cost = $720 for the first year

Costs of Promotion Plan

Family Portrait Campaigns

Cost per campaign 36$ 1 winner of free 1-year membership3$ x 12 months = 36$

No. of campaigns per year 20 For first year only

Total cost per year 720 $ 36$ x 20 = 720$

No. of packages to sell per year 25,000 Based on projected growth

Target customers to get per campaign

1250 25,000/ 20 = 1250

Target outreach per campaign 125,000 Assumed conversion rate at 1%

Viral marketing (word of mouth) success rate

12% Out of more than 25mil registered users, 3mil+ users were persuaded by word of mouth (2005)With 660mil registered users (2010), the campaign outreach success rate is likely to be high and achievable

Using Skype's media outlets provide:

low cost

word-of-mouth opportunities

the easiest way to reach Skype users

Use Skype's resources to keep promotion simple but effective

Reach potential users with advertisements on the home page

A family needs a home to get together... now you have a real "HOMEpage" to be connected with family located internationally

Interested?

Start signing up your family now, and get free Skype gift cards!

Learn more

Interested?

Start signing up your family now, and get free Skype gift cards!

Learn more

A family needs a home to get together... now you have a real "HOMEpage" to be connected with family located internationally

Detail new features with Skype's official blog

Announcing our new Family Plan!

Co-create value with users on the Skype Facebook page

A family needs a home to get together... now you have a real "HOMEpage" to be connected with family located internationally.

Skype's new family plan is ready to launch! To celebrate, we're giving away a free year membership to one lucky family. To enter, post your most creative family portait here. We'll hold a vote with our Facebook followers and staff next week, and the winner and their family will get a free year of Skype's new family plan!Details: http://spr.ly/6034nzno

Happy birthday to all the February babies out there! We're starting a new birthday tradition with our Skype family for our new family plan!

We offer a huge selection of greeting cards to celebrate birthdays and all other special moments, but why don't you help us create one that truly shows your good wishes?

Post your best birthday card design here, and we'll hold a vote at the end of the month! The winners will receive a free year of Skype's family plan!Details: http://spr.ly/6031nDrv

Promote small, personal points with Skype's Twitter

A Valentine's Day Skype call to your mom has less calories than chocolate #qualitytime #SkypeFamilyPlan


Sales PitchBack up

Skype Overview

Skype Statistics 　Total number of Skype users as of Jan. 2012 31 millionAverage time spent on a Skype conversation 27 minutesNumber of time that active Skype users spend on Skype per month 100 minutesTotal percentage of small businesses that use Skype as primary communication service

35%

Number Skype enabled television sets 50 millionNumber of iphone Skype downloads in 2010 7 millionNumber of people who have ever used Skype 560 millionTotal percentage of Skype calls that are video to video 40%Average spent yearly by a paying Skype user $96 Skype revenue in 2010 $406.2 millionNumber of monthly log-ins to Skype 124 millionNumber of monthly paying Skype users 8.1 millionAmount of money spent by Microsoft to acquire Skype $8.5 billion

Objective for further biz growth:1. Increase Skype registered user=> Improving customer awareness of Skype and develop pipeline for Skype future paying user2. Increase Skype active user=> Maintain active customer base to advance the products and services=> Strengthen customer loyalty to Skype products & servicesç

The number of total social network user

Worldwide population of internet user = 7billion x 35% =2.45billionWorldwide population of social network user = 1.43billion (2012)

Understanding the market current market sizeWHY? -> estimate addressable / potential market

size

Skype user

The growth rate of Registered user is @ average 38%The growth rate of connected user is @ average 34%The growth rate of paying user is @ 21%There is trend of slowing down the growth rate of registered user, connected user and paying user

Estimated registered user in 2012 is: 560 million x (1+38%)^2 = 1066 million = 1.066 bilionEstimated paying user in 2012 is : 8.1 million x (1+0.21)^2 = 11.8 million

Understanding the Skype current users size by segmentationWHY? -> understand current customer for reference by different

perspective

Age Distribution of Social Network User

Social networks & online community are not popular for ages between 0~17, 55~64 and 65+Þ Which could be considered as potential market for SkypeÞ Ages 55~64 and 65+ are considered as adult which is relatively lower

risk for business

Understanding the Age distribution of social network userWHY? -> understand current market of social network

Population Growth by Age Group in Japan

High population growth rate is expected in JPNÞ 20+% of population will be over 65 years oldÞ Population of 0~14 years old will be decliningÞ Population of 15~64 years old will be slowly

declining

Understanding the Age distribution of social network userWHY? -> compare w/ population trend and assess future biz potential to develop use case to capture the biz and penetrate into new market

for further biz growth

Consumption of seniors in Japan

Medical and health relatedTraveling

Children and grandchildrenHousing related

Ceremonial functions

Entertainment expenses, such as friendConsumer elec & Elec appliance

Automotive related

Self Enlightenment and Study

ClothesFurniture

Telecommunication and internet

Others

Consumption of senior in Japan

Senior consumption ratio tototal

consumption

total consumption

Trillion

Assume JPN as advanced country for aged population, develop use case targeting aged 55+ and develop emotional meaning to customer.

Assess consumption trend of aged 55+, and develop use case hypothesis meeting consumption trend

40+% of 100 trillion yen is consumed by seniors in JPN29% of senior consumption is spent on children and grandchildren

100 x 40% x 29% = 11.6trillion JPY

Japanese traveler and residing abroad

Japanese traveler and residing abroad

Traveler

(10000)

Residing

Assess JPN number of people who is often located internationally, whom could be the potential target customer for online based family

bulletin board to be connected