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BB2b

B2B Marketing

Natasha QabazardGSBA 528

Table of Contents Title Slide

Executive Summary 3 Industry/Market Analysis 4-5 Competition 6-7

Value Chain 8-9 Customer Analysis 10-11 Company Analysis 12-19 Expanded SWOT Analysis 20-21 Recommendations 22 Recommendations Value Chain 23 Recommendations Target Markets 24 Recommendations Objectives 25 Recommendations Balanced Scorecard Metrics 26 Recommendations Marketing Mix 27 Projected Profit & Loss Statement 28 Implementation Plan 29 Contingency Plans 30 Appendices 31-34

Executive Summary This plan underlines LinkedIn’s core mission statement of connecting professionals

by specifically looking at one feature of their business model, that of Marketing Solutions.

Marketing Solutions makes up 20% of company revenue and is projected to have the highest growth rate out of any of their other segments,

With LinkedIn’s acquisitions of Pulse and SlideShare, B2B marketers now have the opportunity to reach a larger audience to generate leads through Sponsored Updates and attract new followers to their company.

This plan proposes to integrate Pulse and SlideShare into LinkedIn’s already existing core mobile application so that users can see Sponsored ads while exploring content.

The increasing migration to mobile activity over desktop proves the viability of this plan, increasing revenue in every quarter by 19%.

The primary target markets are companies who already use LinkedIn’s Marketing Solution’s capabilities. The secondary target market are existing LinkedIn members who use the mobile application.

By executing these strategies, financial targets should be set at: Net revenue: FY2015- $2.924B Net income- FY2015- $2.230B

Industry/Market Analysis Industry Definition: Online Recruitment Sites acquire

revenue through offering job listing services as well as ad placement space. Searchable database to source job postings Archive resumes and profiles

Numbers at a Glance $3.4B industry Growth rate of 14.4% Expected annual growth rate of 7.3% for the next five years

Industry Trends Low unemployment less job postings Platform traffic originating from mobile devices

Industry/Market Analysis Trends (Continued)

Existing businesses to increase workforce Growing talent gap companies competing for highly skilled

candidates Candidate tracking and talent strategy development Total number of businesses in US will grow by 1.6%

Legal/Regulatory Issues Lawsuits

Security breach in June 2012 LinkedIn user passwords posted on Russian hacker site Harvesting e-mail addresses without permission Spamming people to join the network

Competitors  

LinkedIn Career Builder Inc

Indeed.com

Monster.com

Core Products

Premium SubscriptionsHiring Solutions, Marketing Solutions

Job postings, Candidate sourcing, HR Software, Workforce Data

Job postings, Resume finder, industry trends, salary search

Job posting aggregator, Resume builder and storage

Annual Sales Revenue/ Market Share

$2.21 Billion30.7%

$556 Million17.7%

$434 Million14.1%

$770 Million12.6%

Holding Company

Public Private Private Public

Strengths Social media platform, Software strength, Largest user base

Data Analytics,Present in 20 countries Supply/demand portal

Aggregates job postings from all sites

Accounts for 54% of online hires

Sophisticated algorithms

Twitter partnership

Weaknesses

Privacy issues

Too much focus on HR Saas segment

Pay-for-performance business model

Undergoing significant restructuring

Facebook Twitter LinkedInCore Products Personal profiles

InstagramMessengerWhatsApp Messenger

Website/Mobile appGnip

Premium SubscriptionsHiring SolutionsMarketing Solutions

Annual Sales Revenue/ Market Share

$12.5 Billion65.4%

$1.8 Billion16.2%

$2.21 Billion15.1%

Holding Company

Public Public Public

Strengths More than 1B active users (tons of data)

Mobile driven service

Professional network positioning

Weaknesses 92.2% of revenue comes from advertising

Does not have diverse product line

Competitive threats (Facebook)

Value Chain Suppliers

Distributors Retailers Customers Manufacturer

Suppliers CustomersComputers for employees (Apple, Lenovo) MembersConstruction personnel for office spaces BusinessesThird party interior design companies ConsultantsFood suppliers for cafeterias EnterprisesContract companies (Ex ZeroChaos Workforce Logic)Contractors (non full-time employees)Employee salariesEmployee Benefits (Health, 401K)Cleaning servicesDocusign HR services (Background check companies)

Value Chain ContinuedSuppliers

Content Providers – job postings,

resumes, etc.

SuppliersMaterials, Food and

Equipment

LinkedIn Corporation – includes all

personnel and functions

performed in-house

DigitalWebsite/

Mobile AppsCustomers

Customer Analysis Customer Needs/Preferences

Quality content so members can stay informed about opportunities for career improvement Content shared through features like SlideShare

Sophisticated database to help businesses find top candidates Efficient software that businesses can use to market products

and create a pipeline of leads Easy-to-use mobile application for both customer segments

Mobile constitutes 45% of online traffic; exponentially growing Customer Segments

Primary: Businesses who purchase SaaS (Talent Solutions 60% of revenue, Marketing Solutions 20% of revenue = 80%)

Secondary: Members (free profiles, Premium Subscriptions)

Customer Analysis

Premium Subscribers

Very Active Free profile members

Companies that utilize Talent &

Marketing Solutions

Companies that utilize one or the

other Solution

Consultants

Small companies

PlatinumGold

Iron

Lead

Businesses Members

Semi Active Free

profile members

Passive Free profile

members

Company Analysis LinkedIn’s was founded and headed by Reid Hoffman in 2002

Launched in 2003 with a very slow growth rate (20 signups/day) but showed enough promise to attract an investment from Sequoia Capital, a large venture capital firm

1,000,000 members and and introduced their first business lines: Jobs and Subscriptions

By the launch of public profiles, LinkedIn begins to claim the professional profile of record and reaches profitability with the core features like Recommendations and People You May Know

Went global in 2008 with the opening of first international office in London and launching Spanish and French language versions on the site

Jeff Weiner becomes CEO in 2009 and brings focus and clarity to LinkedIn’s mission, values, and strategic priorities

By 2010 they had 90,000,000 members and in 2011 became a publicly traded company on the New York Stock Exchange

In the decade on LinkedIn’s existence, they acquired 225 million members and growing at a rate of two members per second

Company Analysis Key Statistics

Number of product lines: 3 (Hiring Solutions, Business Solutions, Marketing Solutions)

Number of employees: 8,700 Number of countries where products sold: 200 countries 2015 Expected Revenue: $3.0 Billion, Profit: $2.6B

2014 Revenue: $2.2 Billion, Profit: $1.9B 2013 Revenue: $1.5, Profit: $1.3B

Acquisitions Pulse SlideShare Lynda.com Bizo

Company Analysis-PositioningLinkedInPosition:

For the young, tech-savvy professional of the world, LinkedIn’s business solutions provides a sophisticated network by efficiently using data to understand the most important business problems for both user and businesses

Businesses

Mid-size company that needs Talent and Marketing Solutions

Active Job Seeker

Recent college graduates who are in need of jobs

Passive Job Seeker

Employees who have stable jobs and are not looking for a new one

Company Analysis- Core Competencies

Positioning: Offers the largest professional social networking site in the world Massive amounts of data

• Quality Software

• Service Development

Company Analysis-Business Model

ProfessionalProfiles

PremiumSubscriptions

Research &

Development

CollectionOf

Data

BusinessSolutions

Pull Marketing

Free Profiles

Innovation

Trained Engineers

TalentMarketingBusinessSolutions

Perceptual Map for Social Networking Industry

Low member count

Amateur

Professional

High member count

Perceptual Map for Online Recruitment Industry

High # of Diversified Products

Low Member Count

High Member Count

Low # of Diversified Products

Marketing MixBrand Premium

Subscriptions

Talent Solutions

Business Solutions

Marketing Solutions

Product Job Seeker RecruiterRecruiter LiteJob SlotsJob PostsCareer PagesWork With Us Ads

Sales NavigatorBusiness Plus

Lead AcceleratorSponsored UpdatesSponsored InMailDisplay AdsText Ads

Place Online Online Online OnlinePrice $29.99 $64.99

Customized$64.99$47.99

Customized Based on Company Size

Promotion Digital advertising on LinkedIn site

Digital advertising on LinkedIn site

Digital advertising on LinkedIn site

Digital advertising on LinkedIn site

SWOT AnalysisStrengths

• Large Network: #1 professional social networking site in the world

• Diversified Revenue Sources

• Recent AcquisitionsOpportunities

• Increase in mobile use and presence

• Upward trends in social recruiting

• Growth of Chinese market

Weaknesses• Violation of

data privacy• Competitive

Disadvantages Compared to Facebook

Threats• Market

Saturation• Labor market

issues could restrict growth

• Increased Regulations

Expanded SWOTMaximize Strengths and Opportunities

Minimize Weaknesses and Threats

• Innovation: Continue to enhance mobile application offerings; integration to core LinkedIn app

• Build International Market Share: Offer LinkedIn’s mobile app to Chinese market to promote market share

• Offer More Data: provide personal analytic services

• Secure Facebook Parternship: allow for LinkedIn integration on Company pages through Facebook

• Improve Adaption to Regulations: Create a cost effective plan for potential issues

• Marketing: Target new core user; include blue collar offerings

Recommendations Primary Recommendation

Integrate existing Pulse and SlideShare mobile applications into LinkedIn’s core mobile application Modify Pulse and SlideShare’s viewing capabilities to fit into LinkedIn’s app for seamless

content generation and engagement New product offering must be easy to use and have minimal bugs Sponsored Ads and Display Ads must be present and prevalent

Update the Recruiter application to allow other kinds of business personnel to conduct B2B activities Allow application to monitor and track ad reach to enable modifications for real time

changes Make instant sharing of B2B activities visible to other company employees

Financial Objectives Net Revenue for 2015: $2.924B Net Income for 2015: $2.230B

Recommendations-Value Chain

SuppliersContent Providers

– job postings, resumes, etc.

SuppliersMaterials, Food and Equipment

LinkedIn Corporation – includes all

personnel and functions

performed in-house

DigitalWebsite/

Mobile Apps Customers

Recommendations-Target Customers

Platinum

Gold

Businesses Consumers

Companies thatUtilize Talent & Marketing SolutionsB2B

Marketers that use apps regularly

Small Companies

Employees that check their apps regularly

PremiumSubscribers

Active Pulse and SlideShare Users Very Active

Free Profile Members Minimally ActivePulse & SlideShareUsers

Recommendations-Objectives

Sales• Drive Marketing Solutions sales to

$834MM in 2016, $920MM in 2017, and $1B in 2018

Profit• Targeted Marketing Solutions net profit is

$670MM in 2016, $840MM in 2017, and $910MM in 2018

Mix

• Marketing Solutions percentage of total business to be 25% by the end of 2016 and 28% by the end of 2017, and 33% by the end of 2018.

Recommendation-Metrics of Success

CUSTOMERPERSPECTIVE

• EASY USE OF APP

• HIGH QUALITY ADS

• CONSISTENCY IN INNOVATION

• HIGH RATING IN APP STORE IS CRITICAL

OPERATIONAL PERSPECTIVE

FINANCIAL MEASURES• CALCULATE R&D ROI

•VOLUME INCREASE IN AD SALES

•VALUE OF PER APP DOWNLOAD

•POTENTIAL CUSTOMER VALUE

•POTENTIAL BUSINESS VALUE • QUALITY TESTING OF APPS

•MINIMAL GLITCHES, ACCURACY• >99.5%• • APP CREATION TIME MAXIMIZATION

• EFFICIENT MARKETING TIMELINE• PLAN•

INNOVATION ANDLEARNING

PERSPECTIVE• 2 NEW APPS• 1 LINKEDIN CORE

APP• 1 UPDATED

RECRUITER APP• 90 DAY BETA TEST• EDUCATIONAL TRAINING FOR SALES DEPARTMENT

Recommendations- Marketing Mix Primary and Secondary Targets

Platinum customers: 21-35 yrs. Old, professionals, with an average income of $55,000, and that regularly check mobile applications and are highly attracted to easy to use applications that integrate content

Gold customers: Mid size companies who use B2B marketers to maintain the company brand and want to attract top candidates through targeted ads

Product Place Price PromotionObjectives Introduce the

new integrated LinkedIn core app and Recruiter app tailored to mobile device users

Offer free LinkedIn core app in app stores and linked on company website

Core LinkedIn app will remain free and updated Recruiter app will be free with subscription

Use marketing budget to allocate $50M with 90% majority going to digital advertisement

Strategies Research proper methods to integrate Pulse and SlideShare content without affecting interface

Offer beta format to LinkedIn employees to test out first and perfect for app store

Monitor the value of each download and determine if tiered pricing is the proper next step

Advertise new apps on LinkedIn website as well as app stores

Most Likely Projected Profit & Loss Statement

Implementation Plan

Contingency Plans Contingency plans if objectives are exceeded

Pulse and SlideShare Integration Increase number of integrations to other apps like Sales Navigator Offer app in international markets abroad

Recruiter app update Spend more money on researching other B2B needs worth offering Increase money on advertisement and promotion

Contingency plans if objectives are not met Pulse and SlideShare Integration

Analyze interface and decide how to improve upon it Scale back expansion plan

Recruiter app update Reassess marketing campaign and research more targeted business

methods Decide whether integration should be deleted and go back to normal

Appendices

Source: LinkedIn Website

Source: comScore, Wells Fargo Securities, LLC

Source: LinkedIn Company reports, Wells Fargo Securities, LLC

Source: Company Data, Brean Capital Estimates