this is a presentation based on David J. Bryce,s article Competing against free with its Indian perspective.

1. Competing
against free

2. A Big Player in Indian Gaming Market

4. With one key
difference….

5. IT IS
FREE! FREE!
FREE!

6. The two big
companies who offers
Free Games.

7. Should NINTENDO ignore the threat?
Hoping that customers won’t defect.
OR
Introduce a NINTENDO’s own
free product?

8. Should NINTENDO ignore the threat?
Hoping that customers won’t defect.
OR
Introduce a NINTENDO’s own
free product?
We will get back to it.
First of all let us see how David J Bryce advise us to Assess
the Threats
And some more INDIAN Markets where the companies are
Giving it all Away?

9. Assessing the Threat
Seriousness hinges on three factors
The entrant’s ability to cover its costs
quickly enough.
The rate at which the number of
users of the free offering is growing.
The speed with which your paying
customers are defecting.

10. Some companies SELF DESTRUCT because
the can’t convert non paying customers into paying
one and some don’t get third parties for paying.

11. Of course, some companies may have enough
FUNDING to wait a year or more before they
need to monetize their user base.
Some companies convert a lot customers, it means they are SUCCESSFUL

12. How Big a Threat Is ‘Free’ Competition?

13. This matrix helps you in
“Choosing whether and when to respond?”

14. If you’ve established that free offerings are a
threat to your business and have considered
the timing of your response, the next step is to
figure out how to respond?

15. If you’ve established that free offerings are a
threat to your business and have considered
the timing of your response, the next step is to
figure out how to respond?

16. Everyone likes to get it for FREE.
In India offering free is so common that
even governments here are offering free:

17. EXCISE FREE Zones
These states exempt
companies from paying
taxes for a period of around
5 years or more for setting
up a new industrial plant in
their states.
Industrial policy

18. And as a RESULT of it, these states develop employment
for their own states and start generating heavy revenues
after a limited period of time.
Few plants in H.P.

19. Four Tried and True
strategies offering a better
free:
How to offer a better free?

20. 1
Up-sell
Introduce a free basic offering to
gain widespread use and then
charge for a premium version.

21. An INDIAN perspective of it is:
First ride free to make people try it and then
from next ride they start charging.
Today, Ola is doing good in INDIA.

22. 2
Cross-sell
Sell other products that are not
directly tied to the free product.

23. An INDIAN perspective of it is:
Daily household items
uses this technique the
most.
Free!
Soyabean chunks
with Refined oil

24. And the most common offer which all
of you might have availed sometime.

25. And the most common offer which all
of you might have availed sometime.
Toothbrush free with toothpaste

26. And the gadgets industry never leaves
any offer. They give us all…….

27. 3
Charge third parties
Provide a free product to users and
then charge a third party for access
to them.

28. An INDIAN perspective of it is:
Most recent
initiative under this
category.

29. Earlier INDIANS
paid for classified
advertisements
But
Now:

30. You can ad for free:
These companies earn by Adsense.

31. 4
Bundle
Offer a free product or service with
a paid offering.

32. An INDIAN perspective of it is:
After using the 6 GB free data you will get it recharge
again and pay to AIRCEL.

33. These were the four true
and tried strategies with
their Indian perspective.
Now, let us have a look
from a
Marketing Insight :
Giving It All Away
from Philip Kotler’s book
Marketing Management
which was taught to us in
Module 2 which is similar
to the given article.

34. Marketing Insight : Giving It All Away
Giving away products for free via sampling has
been a successful marketing tactic for years.

35. Few companies work on “FREEMIUM” strategy:
Free online services with a premium component

36. Chris Anderson, editor-in-chief of Wired, strongly believes
that in a digital marketplace, companies can make money
with “free” products.

37. Now, coming to OFFLINE
Founder Michael O’Leary thinks like a retailer, charging for
almost everything but the seats itself
25 % seats are absolutely FREE! FREE! FREE!

38. Ryanair charge by third parties for advertisements.

39. NOW, Let’s move back to the case study
V/S
AND MANY MORE….

40. Should NINTENDO ignore the threat?
Hoping that customers won’t defect.
OR
Introduce a NINTENDO’s own
free product?
NINTENDO is facing Business
model threat so it should not
ignore it obviously.

41. Let us help
To get our
MARIO back
in market.

42. NINTENDO shall launch few of it’s games at PLAY
STORE and APP STORE.
Especially MARIO and POKEMON.
And these games should be absolutely FREE!

43. NINTENDO shall pay to the mobile companies such as
SAMSUNG and APPLE for installing their games by default in
the device to increase their users.

44. NINTENDO should make avatars of
POKEMON so that it can attract fans of
Pokemon.
Get your favorite POKEMON on PLAY STORE!!!

45. How will NINTENDO earn?
By CHARGING THIRD PARTIES
One of the true and tried strategy we have
discussed earlier.
NINTENDO shall charge ad companies for
giving ads between the game.

46. NINTENDO shall make it’s customer to have
in-game purchases. Like
MARIO has limited lives, so you can buy it by
spending few bucks.
You can modify your POKEMON avatar by
spending some money.

47. CONCLUSION:
IF A NEW COMPANY ENTERS THE MARKET
AND OFFERS A PRODUCT FOR FREE THEN
THE EXISTING COMPANY SHOULD ASSESS
THE THREAT LEVEL AND RESPOND TO IT IN
4 WAYS
1.UPSELL
2.CROSS SELL
3.CHARGING THIRD PARTY
4.BUNDLE

48. Credits:
David J. Bryce’s article Competing
against free.
Philip Kotler’s book “Marketing
Management”
My elder brother Sahil Arora. I
consulted with him about the present
scenario.

50. Disclaimer:
Paras Arora
H.B.T.I. Kanpur
during an internship by
Prof. Sameer Mathur,
IIM Lucknow
www.iiminternship.co
m