O N L I N E M A R K E T I N G P R O J E C T R E P O R TPrepared for: To understand the working and business model of Net Elixir.

Prepared by: SIDHARTH MALHOTRA Date: 25-09-2013

EXECUTIVE SUMMARY

This report is to understand the role of net elixir as a company that is basically

talking about the extended arm to the digital wing of the company. The company

deals with the services like PPC management, SEO, Facebook advertising, SEM,

mobile advertising.

This report explores the various working models, pricing models and the trends of

the digital industry and what is the scope for the survival of the existing companies

like net-elixir. The various business model and pricing model of the company is

been explained in the report.

Further in the conclusion and suggestion of some opportunities in the future market

is been talked of. The report highlights the various techniques and methods that

were used to collect and gather data. It has a detailed projection of the work done.

CHAPTER 1: INTRODUCTION

1.1) OBJECTIVE:

Through this project we are trying to understand the working and business model of Net

Elixir.

1.2) ABOUT THE COMPANY:

The Net Elixir team consists of a multitude of search marketing engineers, data scientists,

technologists, and global operations managers, all of whom are constantly ideating,

innovating, and implementing unique practices that drive towards the vision of

empowering search advertisers.

1.2.1) BUSINESS PORTFOLIO:

Net Elixir offers services that enhance their digital marketing efforts. They obsess over

the numbers, analytics, and strategy.

Fig 1.1 Business Portfolio

1.2.1.1) PAY PER CLICK (PPC aka CPC)

It’s an Internet advertising model that is used to direct traffic to sites, in which advertiser pays

the publisher when the ads are clicked. It can be defined as “the amount that is spent to get an

advertisement to be clicked.

1.2.1.2) SEARCH ENGINE OPTIMIZATION (SEO)

It is the process of affecting the visibility of the site or the page in a search engines "natural" or

un-paid ("organic") search results.

In general, the earlier (or higher ranked on the search results page), and more frequently a site

appears in the search results list, the more visitors it will receive from the search engine's users.

SEO may target different kinds of search, including image search, local search, video

search, academic search, news search and industry-specific vertical search engines.

1.2.1.3) SEARCH ENGINE MARKETING (SEM)

A form of Internet marketing that involves the promotion of the websites by increasing the

visibility in search engine result pages (SERPs) through optimization and advertising. SEM may

use search engine optimization (SEO), that adjusts or rewrites they site content to achieve a

higher ranking in search engine results pages or use pay per click listings.

1.2.1.4) FACEBOOK ADVERTISING

Net Elixir offers full-service Facebook advertising solutions. Their advanced technology

combines the power of automated bid management and precise targeting (demographics,

location, likes and interests, education/work, and connections) with deep reporting capabilities.

1.2.1.5) COMPARISON SHOPPING ONLINE

Net-elixir manages shopping engine and marketplace campaigns for their clients using their

proprietary feed management, optimization, and reporting platform.

1.2.1.6) MOBILE ADVERTISING

Net elixir is continuously making an effort and finding out new ways of mobile advertising. Their mobile search technologists are continuously researching and developing methods in running successful mobile search campaigns.

1.2.1.7) TECHNICAL SERVICES

Net Elixir technical services team helps marketers conduct marketing programs and their site changes seamlessly.

1.3) CLIENTS

Fig 1.2 Client Base of Net Elixir

CHAPTER 2: METHODOLOGY

2.1) SCOPE OF THE PROJECT:

The project was carried out by all team members, two meeting were done with the net elixir officials. In this study we mainly tried and focused on the working of the company and how is it working as of now.

The interviews for the research were carried out and thus after analysis of the data we came to the findings.

2.2) TECHNIQUES:

We used the market research tool of in-depth interview. The main reason for opting in-depth

interview was first to understand:

a.) As we are in our early days of understanding the subject and the industry, so more of insights

would help us get a better insights and findings for the study.

b.) The data that was to be collected was totally qualitative.

A set of question thus was prepared and then an in-depth interview was carried out. The

interaction was carried out with the key account manager of the Net elixir. The key account

managers of Net elixir told and made us understand the role of Net elixir, in the firms that are

still into traditional business and how the company generates revenue.

Who are the client base of the company and how it efficiently manages business of the foreign

clients by sitting in India.

How the business model works and what are the various differentiating point of the company in

respect to the other competitors that are there in the market.

CHAPTER 3: FINDINGS

3.1) FINDINGS:

After the analysis of the company and the response collected from the in depth interview, we try

and analyze. The various facets of the company that makes It different and in there words the

formulas that makes them different.

3.2) PRICING MODEL OF NET – ELIXIR:

There are four kinds of models that are been followed by Net-elixir for pricing.

3.2.1) PERCENT OF REVENUE SEM AGENCY FEES:

This is one kind of particular model that the company follows for its client. In this particular

model the agency that is managing SEM for the particular advertiser will be getting revenue only

and after the company start making some resulting revenue.

3.2.2) PERCENT OF AD SPEND SEM AGENCY FEES:

In this model the advertising agency first run a campaign on their own. Then the advertiser that is

client over here for the Net-elixir pays after the advertising spends is been done. The percentage

of their search agencies spend is then been charged from the client.

3.2.3) FLAT MONTHLY FEE

This model of the company is very similar to the subscription-based model of the company as in

this model the fixed amount of money is been charged by the company from the client.

In this fees company runs various campaigns and follow-ups for the clients. The fees structure is

monthly based and varies from services been provided.

3.2.4) PERCENT AD SPENDS, CAPPED, WITH FAST OUT

This model is just like a stop loss model of the financial management company, a monthly fees is

been charged according to the percentage spend on the client, but the company puts a minimum

and maximum cap, so that the client and agency both don’t end up with loss.

3.3) UNMATCHED SERVICES & PROPERITERY TOOLS:

The company provides with the unmatched tools and proprietary services that are the point of

difference tool for the company. The clients are being provided with the LXR tool, that is a

unique proprietary of the company. This tool helps in making a more precise enabling, quickly

identify opportunities, create effective strategies, and implement changes – all on one intuitive

interface.

3.3.1) Working of LXR:

This LXR provides a customer value proposition by providing various differentiated convenient

services that are:

1.) Access to Your Online Customer Acquisition Process

It grants direct web-based access, across multiple campaigns and channels, all from a single

dashboard.

2.) Real-Time Paid Search Campaign Optimization

It uses our proprietary algorithms to yield the best results for your online campaigns.

3.) Integration of Keywords with Your Inventory Management System

It synchronizes with your internal inventory management system to ensure your keyword search

ads match your available inventory.

4.) The Net Elixir Client Service Commitment

We are on call 24x7x365 to ensure that you get the most out of LXR.

5.) Shopping Feed Management and Reporting Dashboard

It facilitates multi-shopping engine feed customization, auto-categorization, submission, and

optimization, all in real time.

6.) Facebook Advertising Management and Reporting

It integrates keyword search advertising and social media channels.

3.3.2) NET ELIXIR UNIVERSITY EMPOWERS BUSINESSES:

Net Elixir University empowers businesses with strategies and analytical tools to be able to run

successful search marketing campaign, through research, workshop, and webinars. It aspires

digital marketing space through knowledge and expertise sharing.

3.4) INDUSTRY OVERVIEW:

It’s a growing industry with many numbers of players. Still to have a look at the trend of the

various companies, we can see this chart:

Company Revenue

(Million)

Active

Clients

Client

Retention

Clients

Jump Fly $3 400+ 96% Limousines.com, Aston Martin, Simone

France, House of Brides, Shade Saver

Net Mark $5 200+ 92% 5.11 Tactical, Hallmark, Intellius,

SelectQuote, Experian

1SEO $5 300+ 97% Holts Cigar Company, Rand Spear the

Accident Lawyer, AWMA, Belfor USA,

The Solid Wood Cabinet Company

Perfect

Search

Media

$1 85 96% Holts Cigar Company, Rand Spear the

Accident Lawyer, AWMA, Belfor USA,

The Solid Wood Cabinet Company

Clicks and

Clients

$6 32 94% Author Solutions Incorporated, Orbis

Education, Kijiji, Career Education

Corporation, Cook Medical

Net Elixir $6 100+ 85% Toys R Us, Rockler, Vans, Onedia

Lenovo, Reed & Barton

Table 3.1 Industry major players

Industry is highly consolidated as everyone is providing almost same kind of services. So a

differentiated marketing strategy is required to survive.

CHAPTER 4: CONCLUSION

4.1) CONCLUSION & SUGGESTIONS:

Net elixir has place itself in a very different and unique manner than to industry and is very

successful in many terms. The special proprietary tools of the company are making a different

statement for the company as whole.

It’s having client from abroad only. As this company is operating in India and India is a growing

economy, with a internet YOY penetration growth rate of 34%, it will be a opportunity for the

company to extend the operations to this emerging economy.

As this is growing industry and people are trying to bring inline the traditional and modern ways,

it’s a nice attempt to explore the market of India for future business.

As company already have many acquiring program like, Net elixir university it will be able to

bring the awareness about the tools in the market, that are yet not targeted at an effective cost

and low effort.

BIBILOGRAPHY

WEBSITES

http://www.netelixir.com, 3:10 PM, 15-09-2013,Net-elixir.

http://www.netelixir.com/#technology, ,2:10 PM, 15-09-2013,Net-elixir.

http://www.netelixir.com/#analytics, 2:15 PM, 14-09-2013,Net-elixir.

http://www.netelixir.com/#about, , 3:10 PM, 14-09-2013,Net-elixir.

http://www.netelixir.com/#results, 3:15 PM, 15-09-2013,Net-elixir.