international marketing rocket internet and digital revolution · and mobile apps for ios &...
TRANSCRIPT
International Marketing Rocket Internet and digital revolution
Silvia Rita Sedita
Elaborated from Winiarski (2014), “How to rock the Internet”, presentation
given at my “Advanced Marketing” course, December 2014.
To Become the World’s Largest
Internet Platform Outside the
United States and China
Mission:
Market Opportunity
Potential
customers
5.4 bn
Global mobile
users
74%
“Internet is going further and faster into
daily life than anyone imagined”
Born in Berlin
Founded in 2007
Incubated over 100+ companies
20+ business models
Target over 5 bn people world-wide
25,000+ people on the ground
Stylized facts
Rocket Internet started in Berlin in 2007 with just four employees and two consumer brands and an initial investment of EUR 0.5 million.
Since then, Rocket has evolved into a unique platform that systematizes and accelerates the process of identifying, building and scaling proven Internet models with predictable, consistent and repeatable output in complex markets.
As of December 2014, Rocket Internet and its companies were active in more than 110 countries with more than 30,000 people.
Rocket Internet was listed on the Frankfurt Stock Exchange on October 2, 2014, and, as of December 31, 2014 had a market capitalization of EUR 7.9 billion.
Rocket Internet keeps growing
The company will
relocate its
headquarters to the
GSW building in
Charlottenstraße 4 in
Berlin’s Kreuzberg
district with a view to
the former Checkpoint
Charlie. Named the
“Rocket Tower”,
Europe’s largest start-
up campus will emerge
in two interconnected
buildings.
Shareholder Structure
1
¹ This figure includes shares that are held by affiliates of Global Founders GmbH.
Management Board
Oliver Samwer
CEO
Oliver Samwer is a serial
entrepreneur with a proven track
record in some of Germany’s most
successful internet companies.
Graduated from WHU, he founded
Rocket in 2007 and serves as its
CEO since 2014.
Peter Kimpel
CFO
From 1992 to 2014, Peter Kimpel held
various management positions at
Goldman Sachs in the United States,
Frankfurt and London – at last as a
partner in London. Peter Kimpel joined
Rocket in 2014 as CFO.
Alexander Kudlich
Group Managing Director
Before joining Rocket as Group
Managing Director in 2012, Alexander
Kudlich was Assistant of the Chairman
and CEO of Axel Springer and Regional
Managing Director with zanox, one of its
group companies. Alexander graduated
from HSG, UCL and ESMT.
4 Megatrends that Drive Growth
1) Smartphone Ubiquitous
2) Reversed Population Pyramid in Emerging Compared to Developed Markets
3) Rising Middle Classes
4) Leapfrogging Physical Retail
10%
[VALORE]
USA & China
5%
[VALORE]% 7%
13%
India Mexico Brazil US
74 88 90
2006 2014E 2022E
2
10
33
2006 2014E 2022E
31% 34% 33% 1% 6% 16%
% Middle Class of Total Population
Size (MM) of Middle Class in USA Size (MM) of Middle Class in Indonesia
So
urc
e: G
lob
al In
sig
hts
, W
CIS
, P
lan
et R
eta
il, U
nite
d N
atio
ns, E
uro
mo
nito
r, W
orl
d P
op
ula
tio
n P
rosp
ects
(U
N,
20
09
)
Elderly (Aged 65 and Over), as a Percent of the Population, 2010
Smartphone Users Growth (2013–2018E)
US
1,150
Africa
100,012
2014E People Per Retail Outlet
Rocket Internet helps people use their smartphones to get what they need, any
place, any time, offering the same world-class user experience in all markets.
The Home Screen Of The World
Proven Business Models
Concept
Capital
Team
Identification of Potential
Set up High Profile Team
Execution Support Top-Tier Investors
Close Market Monitoring
International Talents
Experts in all Categories
Concept Evaluation
“We identify proven business models that focus on basic needs. We quickly build
companies for these business models using highly standardized and optimized
processes and then scale these companies to a leading position in our markets.”
“We Are Not Investors. We Are
Builders.”
1. Identify
“We continuously
monitor customer
behavior in our
markets.”
2. Build
“Our functional
experts from IT,
SEM, SEO, BI, CRM
etc. build companies
from scratch.”
3. Scale
“We roll out companies to
>100 markets and aim to
scale them to #1
positions.”
Global
Network of
Companies
More than 20.000 People on the Ground
5,800+ 2,100+
6,300+
3,000+
2,800+
Focus On Online Business
Models Across 4 Sectors
4 Sectors: the companies
eCommerce Marketplaces Financial
Technology
Travel
Company classification
Regional Internet Groups - Africa
Regional Internet Groups – Asia Pacific
Regional Internet Groups – Latin America
Regional Internet Groups – Middle East
The Rocket Platform: a winning
business model
Infrastructure
Highly structured / best
practices
Centralized IP with
regional execution
Repeatable and scalable
Rocket Network
Founding 10 new
companies p.a. on
average
Consistent returns across
network of companies
Technology
Proprietary technology
platforms allowing rapid global
deployment
Comprehensive KPI analytics
driving continuous optimization
Provision of shared services to
jump start new businesses at
low cost
Processes
Highly structured / best
practices
Centralized IP with
regional execution
Repeatable and scalable
Increasing Net Promoter Scores
Standardized Master Launch Process
Capability to Launch a New Venture in <100 Days Ventures Operationally Independent in <200 Days
Day 0 Day 100 Day 200
INDEPENDENCE Set Up Rocket Best Practices Reporting & Optimization KICKOFF LAUNCH
MVP web & apps
Data-Warehouse
CRM tools
Marketing channels
Legal & Finance Legal Entities, Brand & Domains, Accounting
Daily, Weekly and Monthly KPI Reporting for Marketing, CRM, Sales, Customer Care, Ops etc.
Financial Reporting & Controlling, Compliance
Engineering
Product & UX
CENT
RAL
LOCA
L
Marketing
CRM
Business Intelligence
Operations
Sales
Customer Care Call center and local support
Design Website & Apps
Iteration of Product, Agile Development Focusing on Stability, Security and Speed
Targeting, Creative, Bidding, with Maximum Granularity (eg Keyword Level) and Optimization of CAC vs. CLV
Segmentation, Lifecycle Management, Content, Automatization
Sales and Business Development processes Focusing on Daily Management of Sales and Business Development Funnel in SalesForce
Rocket Operations Management Systems Improving Efficiency in Operations
Landing Pages, Onsite Search, Onsite Sorting, Personalization, Multivariate Testing
HR Continuous Recruiting of Central and Local Founders, 2nd Level Management Talent and Functional Experts
Data mining
Best Practices shared in Real-time
Reporting Input: Key Metrics Pulled Automatically From Company And Third Party Systems
Data Warehouse For Each Company
Output: Automated KPI Reporting And Benchmarking Across All Companies And Functions
Backend Systems Orders New Customers …
Marketing Tools Impressions & Clicks Costs …
Onsite Analytics Visits With Origin Onsite conversions ...
Sales Tools Biz Dev Data & Funnel Supplier Base …
CRM Tools Contacts With Origin Costs …
Other Data Sources App Downloads Operations, ERP etc. …
Marketing
Onsite
CRM
Mobile Apps
SEO
…
Reports Daily Weekly Monthly
Three Proprietary Technology Platforms
Alice Nico
Powering Rocket’s marketplace
companies
Omni-channel: desktop, mobile web
and mobile apps for iOS & Android
Enables all relevant transaction
mechanics (auction, sale, lead etc.)
>70
Websites & Apps
Rocket Marketplace Platform
Alice
Powering Rocket’s ecommerce
companies
Omni-channel: desktop, mobile web
& mobile apps for iOS & Android
Highly scalable, can handle very high
volume and multiple countries
>40
Websites & Apps
Rocket eCommerce Platform
Yoda
Powering Rocket’s financial
technology companies
Scoring APIs: integrated connectors
to international scoring providers
High security architecture adaptable
to arbitrary regulatory environments
>8
Websites & Apps
Rocket FinTech Platform
Source: http://tech.eu/features/1413/how-big-is-rocket-internet-kinnevik/
Source: http://tech.eu/features/1413/how-big-is-rocket-internet-kinnevik/
Source: http://tech.eu/features/1413/how-big-is-rocket-internet-kinnevik/
Source: http://tech.eu/features/1413/how-big-is-rocket-internet-kinnevik/
Source: http://tech.eu/features/1413/how-big-is-rocket-internet-kinnevik/
Source: http://tech.eu/features/1413/how-big-is-rocket-internet-kinnevik/
Source: http://tech.eu/features/1413/how-big-is-rocket-internet-kinnevik/
Source: http://tech.eu/features/1413/how-big-is-rocket-internet-kinnevik/
The secrets of the business
Alice
… Capture Founder
Economics Minimize Risk … … Scale Globally
Low Customer
Adoption Risk
Low
Competition
Risk
Low Execution
Risk
Deploying
Proven Models,
With 15 Years
Execution
Track Record
75-100%
Ownership
Repeatable
Success in
Geographical
Roll-Out
Key achievement 2014
Global Fashion Group
"The creation of GFG brings together five powerful digital
brands led by a unique group of highly talented founders and
managers. By operating as a single entity, Dafiti, Jabong,
Lamoda, Namshi and Zalora will be even more effective in
expanding their leadership positions in their respective
marketplaces.”
Lorenzo Grabau, CEO of Kinnevik
Global Fashion Group
"GFG will be focused on capturing the massive growth
opportunity of fashion e-commerce in emerging markets.
Each of the business units will be able to build on the original
Rocket platform and continue to leverage knowledge and
expertise gained across 27 countries. I look forward to
working with our founders in accelerating GFG's growth
profile and development even further.”
Oliver Samwer, co-founder and CEO of Rocket
Rocket Internet identifies
Food and Groceries as the
next frontier of e-commerce
Choice of sectors
ZALANDO
Source: http://tech.eu/profiles/1428/how-big-is-zalando-kinnevik/
Source: http://tech.eu/profiles/1428/how-big-is-zalando-kinnevik/
Source: http://tech.eu/profiles/1428/how-big-is-zalando-kinnevik/
Source: http://tech.eu/profiles/1428/how-big-is-zalando-kinnevik/
Source: http://tech.eu/profiles/1428/how-big-is-zalando-kinnevik/
Source: http://tech.eu/profiles/1428/how-big-is-zalando-kinnevik/