Running a business is all about return on investment. You want to minimize the money you spend while maximizing your profit. It sounds simple and as a concept it really is. However, in reality it’s a tricky balancing act. It’s often hard to know where you can cut costs and save money, and where you should focus your spending to get the best results.
Marketing is always needed when running a business. You can’t have an idea, open your location or start your website, and expect people to come to you. You have to get your brand in front of people and encourage them to come in. However, if you’re in cost-cutting mode, then you may have to be creative with your marketing to keep succeeding.
TV ads, radio ads and other broad outbound marketing methods reach a lot of people, and as such you pay a lot of money. However, you end up paying for people who are never going to buy your products or services. What you need are some strategies that are cheaper and while they may reach fewer consumers, they still increase your chances of having those people convert into paying customers. Here’s how you can cut costs and still reach clients.
Know Your Audience
If you’re going to be more targeted with your marketing, you need to understand the audience for which you will be creating content. What other interests do they have? What music are they likely to enjoy, and what pop culture do they consume? Everything you produce should be written with those things in mind so that you can better target those customers.
You will never be perfect, so create an ideal customer. You should have their complete profile, including their buying history if they have one. This ideal customer is who you need to focus on.
Search Engine Optimization (SEO)
The great thing about SEO is you can handle as much or as little of it on your own as you like. If you have a talent for writing and you can spare some time, then handle that part of it. If you don’t, hire a freelander or a marketing agency. Either way, it will still be more affordable than outbound marketing. SEO is the process of optimizing your website so that it appears as high as possible on search engine rankings. Ideally you want to be at least on the first page for possible search terms related to your product or industry.
There is a lot that goes into an optimized site. For one, the content is current, relevant, informative, and engaging. You will also need to have backlinks from reputable websites, and fast-loading pages. All of these will be indexed by search engines, and their algorithm will then rank your pages.
This will lead to organic traffic to your site. Organic traffic means that people visit your website without clicking on ads. They are already presumably predisposed to purchase your products and services because they specifically searched for them.
SMS Messaging
If you can create a phone list of your customers and prospects, then SMS messaging is a powerful way to connect with them. Think about it. We are so conditioned by our phones, that when we get a notification we immediately take it out and see who’s messaging us. Not only that, but your message is likely to be read, even if they only read it to delete it afterward. Text messages have an open rate above 95%, which is much higher than email. Also, it’s immediate. They will read the message within seconds of receiving it.
You might be thinking that it sounds pretty time-consuming to write all those texts and numbers with your thumbs on your phone. However, there are online text messaging services that allow you to write texts and build contact lists from your computer. The best part is that it’s very affordable, and not many businesses have started using it. You can get ahead of the competition and save money at the same time.
Social Media
The best thing about social media is that it doesn’t have to cost you a cent. You can create informative and engaging social media accounts with a little time and creativity. What you have to do is post content that is likely to be shared, commented on, and liked. It’s harder than it sounds, but it can be done. Amazingly, one thing that will make your social media accounts more engaging for customers is replying and starting conversations. If you can successfully do that, then your customers will feel like they are a part of a community around your brand. That bond will only grow stronger when they make a purchase.
Live Streaming
Something else that doesn’t cost a cent, other than any equipment you want to use, is live streaming. Most social media platforms have an option for doing this. Live streaming is great because it gives your customers a glimpse behind the scenes and a peek at your personality. Showing your customers that there are actual people behind the brand will further build a connection. On a live stream you can provide how-tos, behind the scenes footage, or something funny or interesting. One of the best things you can do is a question and answer session. Your customers can get the information they need or even give you feedback. All this for no cost.
It’s tough when you have to cut costs and you still need to reach your customers. However, with a little creativity and some hard work, you can do it. Follow these tips and concepts and you can save on your marketing costs now and in the future.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Age of Learning.
Education has become crucial more than ever. Proper education helps children develop critical skills, including mental agility, decision-making, and logical thinking.
With the advancement in technology, the world is moving to digital learning. Now students can access digital learning materials and interact with tutors and peers online while enjoying flexible, engaging, and creative courses. Edtech platforms provide more personalized and self-directed learning through exciting activities, games, materials, and programs.
Age of Learning is an edtech company that provides a comprehensive and engaging online education curriculum for pre-k, kindergarten, elementary, and middle school programs. Read further to know more details.
Age of Learning is the leading technology provider that blends education’s best practices, advanced technology, and insightful creativity to provide compelling educational experiences to children across numerous countries.
An extensive team of education experts develops the company’s research-based digital education programs and content that have proven efficacy in elevating kids’ learning gains. The company has helped educate over 50 million children across the United States and other countries.
Age of Learning is one of the most renowned California-based companies in the edtech industry. The term edtech is short for ‘education technology’ and constitutes using computers, technology, computer programs, and educational systems to provide education and learning to students and workers.
The Edtech industry is home to the companies involved in creating digital platforms and content for delivering the best education curriculum and learning to people. In 2022, the global edtech market was valued at $123.4 billion and is projected to grow at a CAGR of 13.6% from 2023-2030.
Apart from the Age of Learning, BYJU’S, Coursera, Instructure, and Knewton are the top companies in the edtech industry.
Age of Learning – Founders & Team
Doug Dohring – Founder, Age of Learning
Doug Dohring is the founder of the company. He is a California-based entrepreneur who led multiple companies to success during the past three decades. Before founding Age of Learning, Doug founded NeoPets, Inc., in 2010. Additionally, he founded The Dohring Company in 1986.
Age of Learning was set up in 2007 by Doug Dohring and is presently led by CEO Paul Candland. Its first flagship product, ABCmouse.com Early Learning Academy, was launched in 2010. Over 30 million kids use it by completing more than 6.8 billion learning activities.
What Is ABCmouse.com?
The company collaborated with the National Opinion Research Center at the University of Chicago in 2015. The main goal behind this collaboration was to develop a series of web-based assessments.
In 2019, the company launched Adventure Academy- the first massively multiplayer online (MMO) game and app, helping children to learn. It launched The Age of Learning Foundation, a charitable organization to provide the company’s digital learning products free of cost to kids worldwide.
The company’s mission is to help children worldwide build a strong foundation for academic success and a lifelong love for learning. Moreover, its primary goal is to create a world of opportunity for kids worldwide through education, both today and in the future.
Age of Learning – Revenue Model
The company works on a subscription-based revenue model. It implies that Age of Learning’s primary source of revenue is the fee paid by the users to subscribe and access its educational website and mobile applications.
Age of Learning – Products and Services
Age of learning’s expanding portfolio of educational products comprises ABCmouse English, Adventure Academy, and the personalized and adaptive learning programs- My Math Academy and My Reading Academy.
Age of Learning – Challenges Faced
In September 2020, Age of Learning settled a Federal Trade Commission complaint alleging that it was involved in deceptive marketing and billing practices. The complaint was focused on the 2015-2018 period; during this time, tens of thousands of consumers were affected, constituting 2% of ABCmouse subscribers. Although it didn’t admit the guilt, it agreed to pay $10 million to settle charges and avoid a prolonged dispute.
Age of Learning – Funding and Investors
Age of Learning has undertaken 5 funding rounds in which it has raised a total of $531.5 million. Its latest funding round – Series C Round, was conducted on June 29, 2021, and raised a total of $300 million. 5 investors fund the company, and the main ones are Tecent, Qatar Investment Authority, and TPG.
Date
Round
Number of Investors
Money Raised
Lead Investor
June 29, 2021
Series C
4
$300 million
TPG
August 15, 2020
Series B
1
$50 million
Tecent
May 3, 2016
Series A
1
$150 million
ICONIQ Capital
January 12, 2018
Venture Round
1
–
The Rise Fund
April 12, 2012
Debt Financing
–
$16.5 million
–
June 17, 2011
Debt Financing
–
$15 million
PayPal Ventures
Age of Learning – Mergers and Acquisitions
Age of Learning and Rakuten came together to establish a Joint Venture.
Age of Learning – Patents and Trademark
Age of Learning has obtained multiple patents, including the original patent for a vertically integrated educational system. Currently, it has 21 registered trademarks categorized into the ‘Education and Entertainment’ class.
Age of Learning – Growth
The current valuation of the company stands at $3 billion. Moreover, its monthly website visit growth rate is reported to be 41.82%. Age of Learning has over 651,000 monthly app downloads, with ABCmouse and Adventure Academy the most popular ones.
Age of Learning – Partners
Age of Learning has partnered with:
White House
The Boys & Girls Clubs of America
The U.S. Department of Housing and Development
The Campaign for Grade-Level Reading
Digital Promise
Teletica
Boston Children’s Hospital
Age of Learning – Awards and Achievements
The company is proudly recognized for the excellence of its products and received several national awards for education, parenting, and media organizations. Some of the awards it garnered are:
2020 American Business Awards – Gold Stevie Winner for Adventure Academy in the Kids & Family Category
2020 American Business Awards – Gold Stevie Winner for Adventure Academy in the Education: Game-based Curriculum Solution Category
2020 Tech Advocate Awards – Winner for Adventure Academy in the Best Gamification App Category
2020 NAPPA Award for ABCmouse
2020 NAPPA Award for Adventure Academy
Age of Learning – Competitors
Age of Learning has ranked 3rd among its 1344 active competitors. Some of its main competitors are:
What age range of students does Age of Learning cater to?
Age of Learning caters to pre-kindergarten, kindergarten, elementary, and middle school students, covering the age range of 2 to 8 years old.
What subjects are covered in Age of Learning’s curriculum?
Age of Learning’s curriculum covers a wide range of subjects including language arts, reading, math, science, social studies, art, and music. They also offer learning resources such as puzzles, books, and games to enhance learning and engagement.
What types of multimedia resources are included in Age of Learning’s online curriculum?
Age of Learning’s online curriculum includes a variety of multimedia resources such as interactive games, puzzles, books, videos, animations, songs, and art activities.
Who are the competitors of Age of Learning?
There are various competitors of Age of Learning which invlude –
Are you struggling to retain customers and keep them coming back for more? A/B testing may be the solution you need to boost retention and drive revenue. In fact, according to a study by HubSpot, almost 17% of marketers use A/B testing to improve retention on landing pages.
In this article, we’ll provide you with the knowledge you need to conduct successful A/B testing and increase your retention rate. So don’t miss out on the potential gains—start A/B testing today and watch your retention soar!
A/B testing is a process that allows you to compare two versions of an online website or mobile application. This can be used to improve the user experience for your users and increase retention.
A/B testing is commonly used to test changes in website functionality, such as changing the color of a button or adding a new feature. However, it can also be used to test changes in content, such as adding text or images to a page.
The goal of A/B testing is to see which version of your website or app performs better and reveals the most important information about what your users want. This will help you determine what elements should be changed on your site so that you can improve user engagement and retention rates.
A/B testing can be conducted in many different ways and for many different purposes, but the most common way is to randomly split visitors into two groups, and then present each group with one version of your site. You then measure how long people spend on each version, how many people convert from one version to the other, and how often they make purchases.
What is Retention?
Retention is the process of keeping customers coming back to make repeat purchases, and it’s an essential component of any successful business model. By retaining customers, businesses can reduce customer acquisition costs, increase revenue, and build long-term brand loyalty. It’s a major concern for any business, but especially one that sells digital products.
It’s a particular challenge for eCommerce websites. A lot of people don’t realize that when they make an online purchase, they are not just buying a product but are also buying an experience and that experience can be quite challenging to maintain.
A/B testing helps increase retention by proving which version of a page works best for your audience. You can test different copies, colors, or layout changes to see which one best serves your customer’s needs.
Things to Consider While A/B Testing to Increase Retention
Most Common A/B Tests by Testing Areas
The following are some of the most important things that you need to keep in mind while you conduct an A/B test to increase retention:
Define Your Goal and Hypothesis
Defining a clear goal and hypothesis is important in A/B testing. It helps to establish a clear direction for the test and ensures that the results are meaningful and actionable.
A goal is a specific outcome that you want to achieve through A/B testing. For example, the goal of a test might be to increase the conversion rate on a landing page. Without a clear goal, it’s difficult to know what you’re trying to accomplish with the test and how to measure success.
A hypothesis is an educated guess about how a change will impact the goal. For example, if the goal is to increase the conversion rate on a landing page, the hypothesis might be that changing the color of the call-to-action button will increase the conversion rate. A hypothesis helps to guide the test and provides a framework for interpreting the results.
When a goal and hypothesis are clearly defined, it makes it easier to design the test, interpret the results, and take action on the findings. Without a clear goal and hypothesis, it’s difficult to know what changes to make and how to measure success.
What Are You Going to Test and Where?
The second most important thing to consider is understanding why you’re conducting the test, what variables you’re going to test, and where you’re going to test them. This is crucial for ensuring that the test is conducted correctly and that the results are accurate and actionable.
Understand Why: Understanding the purpose of the test is crucial to determining the right variables to test and the desired outcome. For example, if the goal is to increase retention, then the test should focus on elements that directly impact retention such as website navigation, user interface, and content.
Understand What: The variables that are chosen to be tested will determine the outcome of the test. It’s essential to choose the right variables that will have the most significant impact on the desired outcome. For example, if the goal is to increase retention, then testing different call-to-action buttons or headlines may have a bigger impact than testing different background colors.
Understand Where: The location of the test is also crucial in A/B testing. For example, if you are testing a website, it’s essential to test the changes on different devices and browsers to ensure that the results are consistent across all platforms. Additionally, if the test is being conducted on a mobile app, it’s essential to test the changes on different operating systems and devices. This way, you can be sure that the changes will have the same impact on all users.
Creating a variation in A/B testing allows you to compare different versions of a website to see which one resonates most with your audience. By creating a variation, you can make small changes to a website, such as changing the layout, content, or messaging. Then test those changes with a portion of your audience. This allows you to see which changes have the biggest impact on retention and ultimately improve the overall performance of the website or app.
By creating multiple variations, you can test different theories and see which one performs the best. This allows you to make data-driven decisions and optimize your website or app to better meet the needs of your audience.
A Proper Plan to Conduct the Test
Proper planning is essential for successful A/B testing. Without a clear plan, businesses risk implementing changes that may not have the desired impact, wasting time and resources.
The first step in planning for A/B testing is to identify the goal of the test. This could be increasing retention, improving conversion rates, or boosting engagement. Once the goal is clear, businesses can then choose the element of the website or app that they want to test.
Next, businesses should decide on the metrics they will use to measure the success of the test. This could include retention rate, conversion rate, or engagement metrics such as clicks or views.
Once the goal, element, and metrics have been identified, businesses should then decide on the variations they will test. This could include different layouts, colors, or wording. It’s important to keep in mind that the variations should be small so that the impact of the change can be accurately measured.
Finally, businesses should decide on the sample size and duration of the test. The sample size should be large enough to provide accurate results, but not so large that it becomes too costly or time-consuming. The duration of the test should also be long enough to provide accurate results, but not so long that it becomes too costly or time-consuming.
Example to Understand and Conduct A/B Tests to Increase Retention
Which Ecommerce Elements Undergo A/B Testing?
Here is an example of an eCommerce store that specializes in selling outdoor gear. The company noticed a decline in repeat customers over the last few months and aimed to increase retention. They decided to conduct an A/B test on the homepage of their website, with the goal of identifying a small change that could have a significant impact on retention and conversion rates. Here are the steps they followed to conduct a successful A/B test and improve retention:
Step 1: Identify the goal – The goal of the A/B test was to increase retention.
Step 2: Choose the element to test – The element chosen to be tested was the homepage of the website.
Step 3: Choose metrics to measure – The metrics used to measure the success of the test were retention rate and conversion rate.
Step 4: Decide on the variations – The company tested two variations of the homepage. Variation A had a banner promoting the sale of outdoor gear and Variation B had a banner promoting the company’s loyalty program.
Step 5: Decide on the sample size and duration – The sample size was 50% of the website’s visitors, and the test ran for two weeks.
Step 6: Conduct the test – The test randomly directed 50% of the website’s visitors to either Variation A or Variation B. The metrics were measured and tracked over a two-week period.
Step 7: Analyze the results – At the end of the two-week period, the company analyzed the results of the test. They found that Variation B, the banner promoting the loyalty program, had a higher retention rate and conversion rate than Variation A.
Step 8: Implement the winning variation – Based on the results, the company implemented the loyalty program banner on the homepage permanently.
By following this process, the company was able to identify a small change that had a significant impact on retention and conversion rates. By conducting an A/B test, they were able to make an informed decision on how to improve their website, resulting in increased retention and revenue.
Tips for Successful A/B Testing to Increase Retention
Clearly define your goal: Before starting an A/B test, it’s important to have a clear understanding of what you’re trying to achieve. Whether it’s increasing retention, improving conversion rates, or boosting engagement, make sure your goal is specific and measurable.
Choose the right element to test: Not every element of your website or app is suitable for A/B testing. Choose elements that have a direct impact on your goal, such as headlines, buttons, or images.
Use metrics that matter: Choose metrics that are relevant to your goal and will give you an accurate picture of the results. For example, if your goal is to increase retention, use metrics such as the number of repeat visitors or the time spent on the site.
Keep the variations small: The goal of A/B testing is to find small changes that have a big impact. Keep the variations small so that the impact of the change can be accurately measured.
Use enough sample size: The sample size should be large enough to provide accurate results but not so large that it becomes too costly or time-consuming.
Test for a sufficient duration: The duration of the test should be long enough to provide accurate results but not so long that it becomes too costly or time-consuming.
Analyze the results: Once the test is complete, analyze the results and look for patterns. Use the data to make informed decisions about future changes.
Keep testing: A/B testing is an ongoing process. Keep testing new variations and refining your website or app to improve retention, conversion rates, or engagement.
Test one variable at a time: When you’re testing multiple variables at once, it can be difficult to determine which one caused the change in results. Make sure you’re testing one variable at a time.
Analyze both short-term and long-term results: Don’t forget to analyze the results not only in the short term but also in the long term, this way you’ll know if the changes you made are sustainable or not.
Conclusion
A/B testing is the best way to help you increase retention and improve your bottom line. By making small changes and testing them with a portion of the audience, you can see which changes have the biggest impact on retention. By following the tips outlined above, you can ensure that A/B testing efforts are effective and efficient, resulting in the best solution to provide the best results.
FAQs
What is A/B testing?
A/B testing is a process that allows you to compare two versions of an online website or mobile application. This can be used to improve the user experience for your users and increase retention.
How can A/B testing help in increasing retention?
A/B testing helps increase retention by proving which version of a page works best for your audience. You can test different copies, colors, or layout changes to see which one best serves your customer’s needs.
What should you consider while A/B testing to increase retention?
The most important things that one must consider while conducting an A/B test to increase retention include defining your goal and hypothesis, understanding what you are going to test and where, creating the variations, and having a proper plan to conduct the test.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Advantest.
The semiconductor industry is home to companies engaged in designing and manufacturing semiconductors and semiconductor devices. With the projected growth from $481 billion in 2018 to $726.73 billion by 2027, the semiconductor industry offers lucrative opportunities for related companies.
Not only semiconductor designers or manufacturers can survive and thrive in the industry, but also companies involved in developing test systems for semiconductors have the potential to capture the market.
Advantest is a Japanese leading manufacturer of automatic test equipment (ATE) and measuring equipment for the semiconductor industry.
Let’s learn how Advantest was established, its mission and vision, investments, acquisitions, challenges, growth, and a lot more.
Founded in 1954, Advantest is a globally recognized designer, manufacturer, and supplier of testing systems. It offers component and semiconductor test systems along with mechatronics-related products. The company’s leading-edge systems and products are integrated into technologically advanced semiconductor production lines worldwide.
The company is known for serving worldwide with its offices located across many countries, including Japan, America, Europe, Singapore, Taiwan, the Republic of Korea, and China.
Advantest – Founders And Team
Ikuo Takedo is the founder of the company. Presently, Yoshiaki Yoshida is the President and Group CEO and Douglas Lefever is the Group COO of Advantest. Moreover, it is currently employing over 6,000 employees in all its offices.
Yoshiaki Yoshida, and Douglas Lefever, Present CEO and COO – Advantest
Advantest – Startup Story
Formerly known as Takeda Riken Industry Co. Ltd, Advantest was founded in 1954. Initially, the company was established as a maker of electronic measuring instruments. It is in 1972 that it entered the semiconductor testing business. Furthermore, the company commenced trading on Tokyo Stock Exchange in 1983 and changed its name to Advantest Corporation in 1985.
Advantest expanded its semiconductor test business by establishing its North American subsidiary in 1982 and its European operations in Munich in 1983. It entered the New York Stock Exchange market in 2001.
In 2002, Advantest emerged as one of the founding member companies to establish the Semiconductor Test Consortium (STC) – the first international, industry-wide collaboration. In 2004, the company marked its 50th anniversary and relocated its headquarters to the Shin-Marunouchi Center Building in Marunouchi, Tokyo.
It entered the mask CD-SEM business and launched the T5501 and T5588 DRAM memory test systems and the M6300 memory handler in 2005. Astronic Corporation sold its semiconductor test business to Advantest for $185 million in 2018.
Advantest focuses on manufacturing automatic test and measurement equipment required to design and produce semiconductors for multiple applications, including 5G communications, IoT, AI, machine learning, autonomous vehicles, and more.
How Advantest Helps to Revolutionize 5G Technology
Moreover, it conducts R&D for addressing emerging test challenges and applications, producing scanning electron microscopes for photomask manufacturing, developing advanced test-interface solutions for wafer sort and final tests, and offering system-level test solutions and other important test-related accessories.
It is recognized for offering SoC test systems, memory test systems, device interfaces, test handlers, SSD test systems, SEM metrology/review, Terahertz systems, electronic measuring instruments, leading-edge products, system level test systems, cloud testing service, test cell and automation solutions, and related products.
When it comes to global services, the company offers consulting services, uptime services, equipment leasing services, and customer support services.
Advantest – Challenges Faced
Advantest faces multiple challenges in its businesses, such as increased pressure from its targeted customers for developing semiconductor and component test systems, mechatronic systems that could reduce testing costs, and catering to the customers that have already come up with internal test solutions.
Advantest – Investment
Advantest has made 3 investments and the most recent one was made on September 23, 2021, when proteanTecs raised a total of $50 million.
Date
Funding Round
Organization Name
Money Raised
Lead Investor
September 23, 2021
Series C
proteanTecs
$50 million
–
November 7, 2007
Series A
D2S
$9.2 million
–
May 11, 2007
Series A
D2S
$4 million
–
Advantest – Mergers And Acquisitions
The company has made 4 acquisitions by spending more than $1.10 billion and 2 investments. Its latest acquisition was R&D Altanova which was made in October 2021. The other three companies acquired are Essai (January 2020), W2BI (April 2013), and Verigy (December 2010).
Advantest – Patents and Trademarks
The company’s intellectual property currently includes 1,938 registered patents, primarily in the category of ‘Testing.’ Furthermore, it has 29 registered trademarks categorized into the ‘scientific and electric apparatus and instruments’ class.
Advantest – Growth
The estimated revenue of the company in 2022 is $3.88 billion per year, which increased by 13.92% last year. Moreover, the market capitalization of Advantest as of February 2023 is reported to be at $14.16 billion which makes it the world’s 1165th most valuable company.
Advantest – Awards And Achievements
Advantest has garnered a myriad of prestigious awards over 69 years and the recent ones are:
Gold medal in the 2022 Gomez IR Site Rankings by Broadband Security Co. Ltd
Director-General’s Award for Factory Greening by Kanto Bureau of Economy, Trade, and Industry
Laser Industry Award for TAS7500 Terahertz Spectroscopic Imaging System as an Excellent Product
IR Good Visual Award
Recognized as the World’s #1 ATE Supplier and the Best large Supplier of Chip Making Equipment in the Annual Customer Satisfaction Survey
Supplier Excellence Award by iTest Inc
Advantest – Competitors
Its primary competitors in the semiconductor and component test system and mechatronics system-related market include:
Teradyne inc.
Cohu Inc.
YIK Corporation
UniTest Inc.
Exicon Ltd.
TechWing Inc.
Hon Precision Inc.
Advantest – Future Plans
Advantest is looking forward to expanding its business domains beyond developing and selling semiconductor volume production test systems to include adjacent markets, including semiconductor design, evaluation processes and product, and system-level test processes.
For achieving the same, the company will engage in five strategic issues, including investing strategically, reinforcing core businesses, seeking operational excellence, pioneering new business fields, exploring value to reach a higher level, and promoting ESG initiatives. It is also seeking ways to minimize the environmental impact on the planet and communities.
FAQs
What products and services does Advantest offer in the semiconductor testing industry?
Advantest offers semiconductor testing solutions such as test systems, handlers, probes, and measurement instruments, along with consulting, maintenance, and training services to ensure quality and reliability of semiconductor devices.
What kinds of semiconductor devices can be tested using Advantest’s solutions?
Advantest’s semiconductor testing solutions can be used to test a wide range of devices, including microprocessors, memory chips, system-on-chip (SoC) devices, power management ICs, and other types of specialized integrated circuits.
What is Advantest’s main business focus?
Advantest provides advanced semiconductor testing solutions and services to ensure quality and reliability of semiconductor devices before they are shipped to customers.
The Kingdom of Saudi Arabia is situated in the furthermost part of southwestern Asia. On its eastern borders lies the Arabian Gulf, United Arab Emirates, and Qatar, the Red Sea on its west, Kuwait, Iraq, and Jordan in the north, and Yemen and Oman in the south. Its diverse topography includes coastal plains, mountains, valleys, deserts, sand hills, and lava fields. This uniquely diverse topography means that the Kingdom witnesses a varied climate in different regions. Currently, the kingdom is helmed by Saudi Arabia’s de facto ruler, crown prince, Mohammed bin Salman.
It is the crown prince’s initiative, a project named ‘NEOM’ that forms a part of the Saudi vision 2030. The project aims to diversify the country’s economy with a view to reducing its dependency on oil. Currently, the proven oil reserves within the country are the second largest in the world, corresponding to over 50 years of production at current rates.
The name NEOM is a portmanteau, in that its first three letters are an ancient Greek prefix – ‘neo’ means new while the fourth letter ‘M’ represents the first letter of the crown prince’s name and the first letter of the Arabic word ‘Mustaqbal’, which means ‘future’. Literally, the meaning of the word NEOM means new future.
NEOM is a planned smart city in the Tabuk Province of northwestern Saudi Arabia. A part of the Saudi Vision 2030 initiated by the crown prince, the project site is located north of the Red Sea, east of Egypt across the Gulf of Aqaba, and south of Jordan. The total area of this futuristic city is 26500 square km. NEOM’s plan includes multiple regions that include a floating industrial complex, a global trade hub, tourist resorts, and a linear city that will be powered by renewable energy sources.
Saudi Arabia’s $500 Billion City
Project NEOM is designed to inspire an alternate lifestyle responding to some critical global challenges facing humanity. The smart city will highlight humanity’s relationship with nature by preserving 95% of the natural environment that surrounds it. All energy in NEOM will be completely renewable generated from wind, solar, and hydrogen which will ensure a zero-emission and carbon-positive ecosystem. People involved with the project are saying that NEOM will be a regional powerhouse in water production and storage which will be anchored on water desalination. Its water infrastructure, connected through advanced technology, will ensure minimal water loss. This will put NEOM at the forefront of water technology.
The plans to build such a city were first announced at the Future Investment Initiative conference by Saudi Crown Prince Mohammed bin Salman. The conference was held in Riyadh, Saudi Arabia, on October 24, 2017. He added that the upcoming city would operate independently from the existing governmental framework and enforce its own tax, labor laws, and an autonomous judicial system.
The estimated cost of the entire project is USD 500 billion, which is largely being bankrolled by the Public Investment Fund which invests on behalf of the government of Saudi Arabia. NEOM is arguably the world’s largest and most controversial architectural project.
NEOM’s Planned Regions
As per the developer, NEOM consists of 10 regions. The details of 4 such regions have been announced.
The Line
NEOM The Line, Screenshot from the NEOM’s Website
Suggestive of the name, The Line is a linear city spanning 170 km in length and 200 meters in width. The first plans for the famed city were unveiled in January 2021 and were further modified in July 2022. The original plan included multiple buildings on a linear plan. The modified plan scrapped the original idea and combined the buildings into one continuous structure with a glass mirror exterior, covering it entirely. The city will be free of cars and large enough to house 9 million residents living within walkable communities. All basic services will be available to all within a 5-minute walking distance.
Oxagon
NEOM Oxagon, Screenshot from the NEOM’s Website
Saudi Arabia’s Ministry of Industry and Mineral Resources, the Saudi Authority for Industrial Cities and Technology Zones, and NEOM signed a Memorandum of Understanding in December 2022, that facilitates collaboration and legislation in support of NEOM’s Future Factories Program. Initially named the NEOM Industrial City, Oxagon is a floating Industrial complex, so named due to its shape as an octagon. It is roughly spread over 250 sq. km and will focus on modern manufacturing, industrial research, and development centered on expanding the Duba port. The complex will also include a desalination plant, a hydrogen plant, and an oceanographic research center. It is the crown prince’s hope that Oxagon will become a new focal point for global trade flows and it will service shipping routes passing through the Red Sea.
Trojena
NEOM Trojena, Screenshot from the NEOM’s Website
This will be the first major outdoor skiing destination in the Arabian Peninsula and it was launched on 3rd March 2022, by Saudi Crown Prince Mohammad bin Salman. Located approximately 50 km from the Gulf of Aqaba coast in the Sarwat Mountains, the site’s elevation ranges between 1500 meters to 2600 meters and the climate is considerably cooler than the rest of the NEOM’s territory.
Sindalah
NEOM – Sindalah, Screenshot from the NEOM’s Website
The plans for Sindalah were announced in December 2022, which will be a large luxury resort complex off the city coast. It will encompass an 86-berth marina and three luxury hotels that will be able to accommodate approximately 2400 visitors daily.
Apart from these, the announcement was also made for NEOM Bay Airport in June 2019 that would begin receiving commercial flights after the completion of the first phase of construction. The airport is registered by the International Air Transport Association (IATA). NEOM also has plans to convert almost 6500 hectares of land into agricultural fields and to rely heavily on genetically engineered crops.
Controversies Surrounding NEOM
The NEOM Project is surrounded by controversies with three main concerns – sustainability, liveability, and human rights. Although human rights have been a cause of concern in Saudi Arabia for some time, the direct concern affecting NEOM is related to the evictions that are taking place due to the construction. Roughly 20,000 tribe members of the Huwaitat tribe that is historically indigenous to the area will be relocated to accommodate the planned development.
The Line region, in particular, has been criticized for the estimated production of embodied carbon dioxide in excess of 1.8 billion tonnes. This number has been given by Philip Oldfield, head of the built environment school at the University of New South Wales. According to Oldfield any environmental benefits in the future will be overwhelmed by the carbon dioxide production due to construction. Experts are also concerned about the mirrored façade and the impact it will have on animal and birdlife.
Saudi Arabia’s Controversial Mega-City Project: The Line
The Crown Prince, Mohammed bin Salman commented on the liveability of The Line. He said – “It will challenge the traditional, flat, horizontal cities and create a model for nature preservation and enhanced human liveability.”
Experts say that the liveability claims would rest on how the city is maintained.
Conclusion
As ambitious as the project sounds, there are many firms and individuals who are now involved in making this project a reality. In fact, in March 2021, NEOM signed a four-year global sponsorship agreement with the Asian Football Confederation, and in 2022 NEOM hosted Extreme E’s 2022 Desert X-Prix in Sardinia. In October of the same year, Trojena was announced as the future host of the 2029 Asian Winter Games. The world, as one, is looking forward to witnessing the reality of the project called NEOM.
FAQs
What is NEOM?
NEOM is a planned cross-border city in northwestern Saudi Arabia, which aims to create a new model for sustainable living and economic development as part of Saudi Arabia’s Vision 2030.
What is the main goal of NEOM project?
NEOM aims to reduce Saudi Arabia’s reliance on oil and diversify its economy. Its focus is to attract international investment and become a hub for innovation and technology.
Who is funding the NEOM project?
The NEOM project is funded by the Saudi Arabian government, through its Public Investment Fund (PIF). The PIF has committed to investing more than $500 billion over the next decade to support the development of NEOM and other projects aimed at diversifying the Saudi economy.
What is the timeline for NEOM’s completion?
The initial phase of the project is expected to be completed by 2025, with some areas of the city becoming operational as early as 2023. The full development of Neom is expected to take several decades.
What are some of the futuristic technologies that NEOM plans to implement?
NEOM plans to implement several futuristic technologies, including:
These technologies are intended to make Neom a model for sustainable and innovative living, while also attracting investment and talent from around the world.
The aviation industry in India is the fastest-growing sector in the world as per the International Air Transport Association (IATA). The manufacturing hub of Indian aviation is located in Bangalore and the UDAN scheme of the government drives the growing civil aviation and aviation infrastructure in the country.
Indian civil aviation industry is broadly classified into scheduled air transport which includes domestic and international airlines, non-scheduled air transport which includes charter operators and air taxi operators and air cargo transport which includes air transportation of cargo and mail. As was the case with all commercial activity, the Indian civil aviation industry was severely affected due to the covid-19 pandemic. However, not only has the industry recovered but witnessed a robust growth of 104.24% in one year. This is evident from the figures of the air traffic movement which stood at 613,566 in the first quarter of FY 2022-2023 as opposed to 300,405 in the first quarter of FY 2021-2022.
Currently ranked at number 7 in the global civil aviation market, Indian civil aviation is expected to become the third largest within the next ten years. It is already the third-largest domestic aviation market in the world and is expected to become the third-largest air passenger market by 2024, overtaking the United Kingdom.
The civil aviation industry of India can be traced back to 17th February 1911 when the first commercial flight took to the skies from Allahabad to Naini – a short distance of only 6 miles covered in approximately 15 minutes. This was the world’s first official airmail service as the Humber biplane carried 6500 pieces of mail piloted by Henri Pequet. The first commercial airline was Handley Page Indo-Burmese Transport flown on 15th October 1932 by J.R.D. Tata from Karachi to Juhu Airport. This airline later became Air India.
By 1953, there were eight domestic airlines that were operating independently within the country. They were Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways, Air India, and Air Services of India. In March of that year, the Indian Parliament passed the Air Corporations Act resulting in the nationalization of the merger of all eight airlines into two government-owned entities – Indian Airlines focusing on domestic routes, and Air India International focusing on international services.
History of Aviation in India
In 1972, The International Airports Authority of India (IAAI) was established followed by the National Airports Authority in 1986 and The Bureau of Civil Aviation in 1987. The Indian government de-regularized the civil aviation sector in 1991 leading to the introduction of the first national-level private airline – East-West Airlines, followed by Jet Airways which began operations in April 1992. By 1994 the Air Corporation Act was repealed allowing private airlines to operate scheduled services. This led several players like Air Sahara, Modiluft, Damania Airways, and NEPC Airlines to commence operations within the Indian skies.
Growth of Civil Aviation Industry & Its Challenges
Between 2004 and 2005 many low-cost airline carriers entered the Indian market. Prominent operators among them were Air Deccan, Indigo, Air Sahara, Kingfisher Airlines, SpiceJet, GoAir, and Paramount Airways. However, soon the industry was riddled with problems as it struggled with rising fuel and operations costs and economic slowdown. There was a flurry of mergers, acquisitions, and discontinuation of services within the market players. Paramount Airways closed operations in 2010 while Air Sahara was bought by Jet Airways and Air Deccan was acquired by Kingfisher Airlines in 2007. Kingfisher Airlines closed operations in 2012. A joint venture between Air Asia and Tata Sons led to the launch of AirAsia India in 2014 – another low-cost carrier. Another carrier, Vistara was also launched due to a joint venture between Tata Sons and Singapore Airlines. By 2013 and 2014 only two low-cost carriers, GoAir and Indigo were generating profits through their operations.
Current Leaders In The Civil Aviation Market
With the number of airline operators within the Indian civil aviation sector, Indigo and Jet Airways was operating neck to neck in the year 2018. However, the latter was riddled with financial difficulties that led to operations being suspended by April 2019. This left the field open for Indigo with little or no competition from other players. By the year 2022, Indigo was dominating the Indian airline space with a market share of almost 55%.
What has resulted in Indigo’s market domination is its no-frills approach and low-cost domestic flying. During the fiscal year 2022, Indigo carried more than 46.6 million passengers according to the Directorate-General of Civil Aviation. The airline has registered the least number of customer complaints and has ranked at number 4 among the country’s most punctual airlines registering almost 84% of on-time arrivals. Indigo rates high on domestic popularity which is indicative of soaring growth in the future.
Conclusion
The Indian Civil Aviation Industry has received strong backing from the government and is increasingly emerging as a fast-growing sector. The sector has established itself as a credible alternative to road or rail journeys. The growth trajectory of the industry currently indicates that by the year 2034, it may well become one of the largest aviation markets in the world.
FAQs
Who are the major players in the Indian Civil Aviation Industry?
The major players in the Indian Civil Aviation Industry include:
IndiGo
SpiceJet
Air India
Vistara
GoAir
AirAsia India
Air India Express
What is the contribution of the Indian Civil Aviation Industry to the country’s GDP?
According to a report by the Ministry of Civil Aviation, the Indian Civil Aviation Industry contributed about 0.5% to the country’s GDP in the financial year 2019-20. The industry provides direct and indirect employment to millions of people and has a significant impact on the economy.
What are the key challenges faced by the Indian Civil Aviation Industry?
The Indian Civil Aviation Industry faces several challenges, some of the key ones are:
High operating costs: The industry is faced with high operating costs, which include fuel prices, airport charges, and taxes.
Infrastructure constraints
Competition: The industry is highly competitive, with several players vying for market share. This has resulted in price wars and cost-cutting measures that impact the quality of services offered.
The well-known American lingerie, clothing, and beauty retailer that has been known across the globe for its high visibility marketing and branding, Victoria’s Secret has been struggling since the year 2016. Remaining at the helm of high fashion for over 20 years, the brand succumbed to the dual pressure of shifting consumer preferences and faulty business practices by the brand’s leadership. However, by May 2020, the brand remained the largest lingerie retailer in the United States with over 1070 stores spread across the country.
Victoria’s Secret was the brainchild of Roy Raymond and his wife Gaye Raymond. It originated from Roy’s experience when he went to purchase lingerie for his wife from a department store.
He said in an interview – “When I tried to buy lingerie for my wife, I was faced with racks of terry-cloth robes and ugly floral-print nylon nightgowns, and I always had the feeling the department store saleswoman thought I was an unwelcome intruder.”
His experience propelled him to study the lingerie market for the next eight years and, finally, on June 12, 1977, Victoria’s Secret was born. Borrowing a total of USD 80,000 – half from family and the balance from the bank, Roy established a store in which men would feel comfortable buying lingerie. The brand opened its first store in the Stanford Shopping Center in Palo Alto, California. The name was an oblique reference to Queen Victoria and the associated refinement of the ‘Victorian Era’.
Roy Raymond – Founder, Victoria’s Secret
At the time when Victoria’s Secret came into existence, the US undergarments market was dominated by pragmatic clothing that was often sold in packs of three at department stores by leading brands of the time like Jockey, Hanes, and Fruit of the Loom. Niche products like high-end lingerie items were found only in specialty shops.
The first year of business saw the brand earning gross revenue of USD 500,000. It financed expansion as the business grew to add four new locations and a mail-order operation. He also launched the famous Victoria’s Secret renowned catalog. By April of 1982, the brand was recording USD 7 million in annual sales with 55% of the revenue generated from the sales of the catalogs, and was a minor player in the underwear market. The trade described the business as ‘more burlesque than the main street’. However, the company was also on the verge of bankruptcy.
1982 – The L-Brands Takeover
The founder of L-Brands, formerly Limited Brands, Leslie Wexner, was a rising star in the world of business and built himself an impressive empire. By June 1982, L-Brands was listed on the New York Stock Exchange and a month later the company acquired Victoria’s Secret’s six stores and its catalog for a total of USD 1 million.
Leslie Wexner – Victoria’s Secret
Under Wexner’s leadership, the brand flourished as he focused on creating a store that was women-focused. Intent on bringing the aesthetics of the European Lingerie market, Wexner began creating an affordable version of the very upscale European brand ‘La Perla’. His version looked luxuriously expensive but in reality, was affordable.
Wexner’s strategy catapulted the brand to become the largest lingerie retailer in the US by the early 1990s. The brand expanded its presence to 350 stores and recorded annual sales of over USD 1 billion.
This was a decade of the brand cementing its reputation and image. The company also expanded its product repertoire by launching its line of fragrances in the year 1991 followed by cosmetics in 1998. It was in the year 1995 that Victoria’s Secret began its famous annual fashion show spearheaded by Ed Razek, the company’s Marketing Director. It was in 1997 that the concept of Victoria’s Secret ‘Angel’ was formulated, which then, became the iconic style featuring the Angel Wings on the company’s annual fashion show. This fashion show became the mainstay of the company’s image for the next 23 years as it rose to achieve a cult-like status.
Victoria’s Secret Fashion Show Opening Models (1998-2016)
By the year 1998, the brand’s intimate apparel market share had risen to 14%. In the years 1999 and 2000, the then-CEO Cynthia Fedus-Fields delivered the highest profits for the brand before stepping down from her position.
The New Century
At the turn of the century, the new CEO Sharen Jester Turney of Victoria’s Secret Direct for Catalogue began to re-vamp the catalog image to boost its lagging sales. The idea was to upscale its imagery that would appeal to an upscale consumer. A similar change was initiated across the brand stores by Grace Nichols, CEO of Victoria’s Secret Direct, which saw the apparel styles moving away from the prominent and evocative styling of 1800s England.
Under their leadership, the brand’s presence grew within the United States to 1000 stores that accounted for almost one-third of total sales in the intimate apparel industry. Turney took over as the CEO of the company in the year 2006 and the brand thrived with her at the helm for nine years as sales increased by 70% to reach USD 7.7 billion.
Disaster Strikes
In the year 2016, Turney stepped down as the CEO and Leslie Wexner succeeded her as the interim CEO. Wexner made some quick changes to the brand operations. He discontinued the use of the print catalog and certain categories of apparel like swimwear to focus solely on lingerie which was, at one time, the core business. He also split the brand into three parts – Victoria’s Secret Lingerie, Victoria’s Secret Beauty, and Pink and established each as a business function with its CEO. This move proved to be disastrous as sales dropped by 7.4% which continued through 2017.
Net Sales of Victoria’s Secret from 2010-2021
The downward trend continued in 2018 that became worse with Ed Razek’s controversial and derogatory comments about transgenders and plus-size models. This led to a 40% stock decline in that single year causing the brand to close 53 stores in the US in 2019. Chief Marketing Officer, Ed Razek also resigned and by that year’s end, the brand announced the permanent closure of its annual fashion show.
The Rise and Fall of Victoria’s Secret
But the company’s troubles were far from over. By February 2020, reports surfaced indicating a culture of bullying and harassment within the company. An expose published by The New York Times showcased ‘the culture of misogyny’ and cast aspersions of sexual misconduct on Ed Razek, the long-time influential executive of the brand.
Within the next year, by February 2020, the company had announced a 55% equity sale to Sycamore Partners for USD 525 million which fell through by April 2020 as Sycamore Partners cited the pandemic as the reason. In January 2021, the shareholders of the parent company L-Brands, filed a complaint in the Court of Chancery of Delaware, blaming Leslie Wexner for creating an atmosphere of misogyny, bullying, and harassment that devalued the brand.
The Rise From The Ashes
L-Brands, spun off Victoria’s Secret as an independent business by August 2021. The company’s new management and ownership implemented policy changes that have proven to be beneficial to the brand. The brand reported an increase in sales in 2021. By November 2022, Victoria’s Secret had acquired Adore Me, a lingerie brand based in New York, for USD 400 million.
Conclusion
The brand began with a vision to make lingerie shopping easier for men. From there it evolved and underwent many changes. For several years, it sat at the very pinnacle of success. However, it failed to identify changing trends and consumer preferences and hence did not make the necessary shift at the right time. The management’s ideologies and conduct also hindered the brand from adapting to changing times. The new management has a tough road ahead to restore the brand to its former glory. Time will bear witness to how the company makes itself relevant to continuously changing market trends.
FAQs
What led to Victoria’s Secret’s declining sales in recent years?
Factors such as changing consumer preferences, increased competition, controversial marketing, lack of inclusivity, and COVID-19 have led to Victoria’s Secret’s declining sales.
What steps has Victoria’s Secret taken to address its past controversies?
Victoria’s Secret changed leadership, rebranded to be more inclusive, discontinued Angels, and partnered with women-led businesses to address past controversies.
What does the future hold for Victoria’s Secret?
Victoria’s Secret is focusing on inclusivity, body positivity, e-commerce, and new marketing strategies to attract younger consumers in its efforts to re-establish itself as a leader in the lingerie industry.
Ingvar Kamprad, a 17-year-old carpenter, founded IKEA in 1943. IKEA is a well-known global brand today. It began with the sales of pens, wallets, and jewelry to satisfy consumer needs at reasonable costs.
Today, IKEA focuses mostly on ready-to-assemble furniture, kitchenware, and home furnishings with the same motto. The introduction of furniture in the business model was done after five years of its inauguration.
IKEA now operates with 422 stores in 50+ markets. IKEA is a well-known furniture brand that has an extensive customer base in Europe with over 70% of its stores. Recently it launched 19 new stores. With recognizable logos, campaigns, and advertisements, Ikea has set a strong brand example with its marketing plan.
IKEA’s success may be attributed in large part to its high-quality goods, reasonable prices, and DIY assembly philosophy. Additionally, the company’s marketing plan is customized to be among the best in the industry, which also helps.
IKEA caters to the specific functional requirements of each target market, with a focus on people between the ages of 16 and 34. It has offerings for bachelors, singles living alone, newly married couples, families with children below 6, Older couples, the labor force, students, professionals, etc.
It caters to the requirements and preferences of a specific client segment that values affordability.
IKEA provides customized options to the client based on their shopping taste and also frequently repositioned the products and services in order to let the customer experience each and every detail of their products. With ongoing popularity, it is not inappropriate to say that IKEA reflects minimalism through its products.
They employ a price-leadership tactic. Low prices serve as the primary pillar of the IKEA vision, business strategy, and philosophy. IKEA products are a spotlight for people looking for deals.
The foundation of its whole business strategy is pricing its product as affordably as feasible. IKEA’s business strategy is centered on its goal of offering a wide selection of well-designed, functional home furnishings at prices that allow as many people as possible to afford them.
Number of IKEA Stores Globally in 2022
IKEA Marketing Strategies
One of the most profitable sellers of home furnishings and accessories in the world is IKEA. The business has established a solid name for its chic, cost-effective products and cutting-edge marketing techniques.
Product innovation, improving the customer experience, digital marketing, and sustainability programs are among IKEA’s primary marketing methods. These tactics aid in ensuring that Ikea can continue to serve customers’ demands ethically while still being competitive in the market for home furnishings.
IKEA maintains its position as a market leader and is well-positioned for expansion in the future by utilizing these basic methods.
1. Brand Identity
IKEA Logo
The brand employs a consistent and easily recognizable theme. The blue and yellow logo with the bold font was first published in 1967 and it has been consistent over the years.
The product names and colors are also easily recognizable.
It has also remained consistent with its original mission of high quality at affordable prices. IKEA which started as a seller of pens and wallets has grown into a globally acclaimed furniture store but stays strong about its mission. “To create a better everyday life for the many people”.
You must build your brand in a way that makes clients choose you over rivals. IKEA is extremely focused on this. Its goal is to take leadership of every household. IKEA puts the customer and the product first, something that many companies struggle to do.
If you produce what your clients desire, you may establish a strong brand identity. Your brand should be reflected in all of your actions. IKEA uses this tactic in its marketing. You won’t have to think too hard to recognize this as an IKEA advertisement if you’ve been following IKEA for a long time
IKEA boldly displays its cultural history, from the national colors of Sweden painted on its buildings to the delectable meatballs served in its store cafeterias. It’s better to flaunt your heritage!
Delivering a cohesive experience to your audience is made easier by brand consistency. It gives your offerings authenticity, increases customer confidence in your business, and distinguishes you from your rivals.
Because of its strong brand image, IKEA is quickly recognized. It has put in countless hours to create its reputation as one of the biggest furniture manufacturers in the world. Today, before consumers look at the products, it is the name that draws them in.
2. Product Innovation
The key to IKEA’s commercial success is its product design. To produce well-planned, subtle, and useful goods, it draws on the democratic approach and the distinctive Nordic style. Consequently, in addition to being aesthetically pleasing, its homeware is also created to meet the demands and preferences of its target market.
IKEA furniture is well-liked by consumers due to its appealing designs and customization options. They fit into a tiny flat with ease and give your space a trendy, airy appearance.
IKEA supports versatility, individualization, and mix-and-match furniture modules. The secret to this achievement is the union of affordability and sustainability.
Keep in mind that you are essentially expelled into a warehouse after meandering around IKEA’s eye-catching showrooms. The company’s supply chain is streamlined and end-user prices are decreased by outsourcing some of the logistics and assembly to customers.
An excellent product design balances visual appeal and usefulness just perfectly. It ought to live up to your customer’s expectations and provide the value it guarantees.
It helps the business save on raw material costs of close to $175,000 and transportation costs of $133,000 annually.
Furthermore, by letting consumers assemble the furniture themselves, IKEA is able to deduct a percentage of shipping costs from their prices.
The flat packaging serves two purposes. Firstly, it reduces overhead costs and reduces the price of products. Secondly, its unique packaging makes it easily identifiable.
The company first developed flat packaging to save money and space, but subsequently, it evolved into its hallmark design. It now intends to increase the number of sustainable solutions to further cut costs by 50% while enhancing its brand.
Despite being a minor aspect of your company’s operations, product packaging may significantly affect your earnings and brand reputation. Your packaging style may reduce costs, promote your brand, and boost sales all at once.
4. Vast User Insights
One Shared House 2030 – A playful research project by IKEA and Space 10
While some companies use chatbots to interact with their audience, IKEA uses them to learn more about its consumers. Instead of publishing dull surveys to acquire data, the research team instead offers engaging questions to make its audience’s experience entertaining.
It makes the most of visuals and user interactions to collect updated information about its target market.
One Shared House 2030 is a survey that is a prime illustration of its insightful market research methodology.
IKEA conducted an interactive study to gauge public interest in shared living space design. Not only did it receive a significant response, but it also discovered that by 2030, about one in three city dwellers will likely choose co-living.
In order to better understand its customers’ demands, IKEA uses digital media, sophisticated technologies, and interpersonal interactions.
Your marketing plan is built on the foundation of your preliminary study. It enables you to develop a data-driven action plan and comprehend your prospect’s demands.
While traditional surveys do yield useful information, IKEA has shown us that there is another, more effective approach to identifying our customers’ problems.
An Example – A Mock Kitchen Made in IKEA Store at Renton
IKEA excels in product displays and understands how to present products in the best possible way to increase sales.
In order to stimulate decorating ideas and promote impulsive purchases, it carefully arranges the best-matched objects in mock rooms.
It gives guests a memorable experience that entices them to return by having aesthetically pleasing décor and first-rate customer care.
IKEA’s structure, in contrast to typical stores, has a single-route architecture that guides you step-by-step through its full product line. There is a cafeteria to take short breaks while on a shopping spree! The cafeteria has delicious food to make the shopping experience more memorable.
The design purposefully takes the shape of a maze to maximize product exposure and extend visitor stay.
6. The food Court Experience
The IKEA store has lavish Swedish restaurants in all their stores. The IKEA Restaurant offers delicious food at great prices, making it a great place to visit for a quick snack or a leisurely meal.
The food court features an array of Swedish-style dishes, local specials, and a range of healthy, organic, and vegetarian options that cater to the whole family. Whether you’re looking for something tasty on the go or a cozy spot to enjoy some delicious food with friends and family, the IKEA Restaurant is sure to have something for everyone.
This tactic accomplishes two goals at once: it gives consumers a positive shopping experience and lures in new customers who come to the restaurant to check out the store. Additionally, it serves as another source of revenue.
7. Content Marketing
IKEA Catalogue 2021
To stand out from other furniture businesses, IKEA has always turned to its content marketing approach.
The attention-grabbing substance of all of its advertisements, whether they appear in print ads, television commercials, or social media posts, stands out. In order to create advertisements that catch people’s attention and motivate them to purchase its products, it combines humor, creativity, and its brand core values.
To boost its brand, IKEA also makes significant investments in direct marketing. It has been successfully employing one of its most popular tactics, the product catalog, for the past 70 years.
One of the most difficult components of marketing is surely regularly producing content, especially hilarious material. But it also produces three times as many replies as other forms of advertising.
8. Adapting to advancements in technology
IKEA has transformed from a modest Swedish retailer to a global brand by keeping up with trends and embracing new technology.
In order to make its products more accessible to its audience, it has revolutionized the retail experience over time by digitizing its processes.
It has always employed newer technology like Augmented reality(AR) and Virtual reality (VR) to provide a better customer experience. These technological advancements help customers check out the products, their functionality, and their use in the customer’s space.
People download its 3D modeling program mostly to visualize their ideal home.IKEA can upsell its low-demand products by inspiring consumers to redecorate the area, one of its most effective marketing strategies.
Conclusion
IKEA’s marketing strategy is multifaceted and effective. They prioritize offering low prices to their customers, while also promoting self-serve shopping, introducing new innovative technology, focusing on the food court experience, providing more accurate packaging, etc.
Additionally, IKEA has made a significant investment in digital marketing to stay relevant and reach a wider audience. All of these elements combine to create a unique brand identity for IKEA that resonates with consumers around the world. Overall, IKEA’s marketing strategy has been successful in establishing them as a global leader in home furnishings and retail.
FAQs
Who is IKEA’s target market?
IKEA’s target market is the global middle-class group and those falling between the 20-34 age group.
What is IKEA’s unique selling point?
IKEA’s most unique selling point is its low prices on unique and flat-pack furniture that can be easily delivered to different locations.
Who is IKEA’s biggest competitor?
The biggest competitor of IKEA is Walmart.
How does IKEA engage with its customers?
IKEA follows multiple ways to be in touch with its customers. Some of the common ways used by IKEA are to visit them at home, be in touch through an online platform, present them with in-store options, and also through the IKEA family. IKEA also uses AI and virtual reality to make the process more fruitful.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Signifyd.
Over the course of time, the birth of eCommerce platforms has proven to be beneficial in a way that we can shop for anything and everything online. However, when it comes to security, people are still skeptical of shopping online due to the high rise of fraudulent activities.
For business owners and online retailers, too, safety is one of the fundamental aspects of an eCommerce store. No matter how big or small the online business is, if it is not secured, chances are it will be affected by pirates or malicious activities.
Well, technology is no longer the same. Today, we have new technological solutions that can protect us from being hacked.
Signifyd is a privately held company that offers solutions to eliminate fraud for eCommerce stores. The company was founded in 2011 by Michael Liberty and Rajesh Ramanand. Signifyd, one of the world’s largest providers of guaranteed fraud protection, has served consumers in more than 100 countries. Several businesses featured on the Fortune 1000 and Internet Retailer Top 500 lists are among Signifyd’s clients.
To know more about Signifyd, go through this article that will give you an insight into its business model, startup story, founders, and more.
Signifyd offers a progressive Commerce Protection Platform that uses its commerce network to increase sales, automate customer experience, and get rid of fraud and customer misuse for retailers. It is a provider of enterprise-grade fraud technology for eCommerce stores. Some of its partners are leading eCommerce platforms like BigCommerce, Magento, Salesforce Commerce Cloud, and Shopify.
To provide a 100% monetary guarantee against fraud and chargebacks on approved orders, the firm uses solutions like big data and machine learning. As a result, eCommerce merchants are no longer held responsible for fraud, enabling them to lower risk while increasing conversions and expanding into new markets.
The company has offices in Denver, New York, Mexico City, Belfast, and London in addition to its headquarters in San Jose, California. Its specialties include Machine Learning, Fraud Prevention & Protection, Big Data, Guaranteed Payments, Friction-free eCommerce, and Revenue growth.
Signifyd – Industry
Signifyd belongs to the software development industry. Among all business sectors, the software development industry has unarguably experienced the fastest growth. It is estimated that the revenue in the software market is projected to reach $650.70 billion in 2023, according to Statista.
In terms of global comparison, Statista suggests that the United States will produce the most revenue in software development, which will be approximately $321.60 billion in 2023.
Signifyd – Founders and Team
Signifyd was developed by Michael Liberty and Rajesh Ramanand in 2011.
Michael Liberty
Michael Liberty – Co-founder and CPO, Signifyd
Michael Liberty (Mike Liberty) has studied Economics at the University of Chicago and has an MBA degree from Standford University Graduate School of Business. Presently, he works as the Chief Product Officer at Signifyd. Before co-founding Signifyd, Micheal worked as the Manager, of New Ventures Risk at PayPal. He started his career as a Night Analyst at Lazard and later on went on to work with JPMorgan and CIVC Partners in his initial career. Besides this, Michael has also worked for GWC Warranty as its Director of Business Development and later as its Chief Operating Officer.
Rajesh Ramanand
Rajesh Ramanand – Co-founder and CEO, Signifyd
Rajesh Ramanand is the Co-founder and CEO at Signifyd. Alongside, he also serves on the Education Committee at Merchant Risk Council. Prior to Signifyd, Rajesh was the head of PayPal’s Emerging Markets Risk division, in which he was in charge of overseeing credit and fraud risk in Latin America, the Middle East, and Africa.
Rajesh Ramanand has also worked for FedEx for eight years, where he led the Risk Management Division for Payments and Shipping at Fedex in addition to creating their package intercept system. Rajesh has a master’s in Computer Science with a focus on data mining.
Signifyd – Startup Story
The idea of Signifyd struck when two co-workers, Michael and Rajesh, were working at PayPal. They both always wanted to track fraudsters on social media. Michael and Rajesh started the company after leaving their jobs at PayPal.
In the beginning, a scoring solution that guaranteed fraud protection quickly became a superior product–market fit, which became the reason for their growth.
With this success, both the founders added products and features to their product stack to expand, which further protected retailers from chargebacks of all kinds, including those caused by consumer fraud and payment optimization under Strong Customer Authentication (SCA).
Signifyd strongly believes in having an empathic platform for its customers. Its mission is to create fraud-free eCommerce for every business. The company wants to eliminate all the challenges faced by retailers, such as customer dissatisfaction and unnecessary operational costs, and deliver them a seamless commerce platform.
Signifyd – Name, Tagline, and Logo
Signifyd Logo
Signifyd’s current tagline is “Protect, trust, and grow with Signifyd.”
The company’s tagline reflects its commitment to providing comprehensive fraud protection solutions that enable businesses to build trust with their customers and grow their sales.
Signifyd – Business and Revenue Model
As we all know, Signifyd has a commerce protection platform to eliminate all fraudulent activities, it operates on a guaranteed fraud protection model to help retailers in terms of security. With the help of a variety of data sets, Signifyd’s real-time machine learning system can identify legitimate orders that traditional fraud tools would have rejected out of concern for fraud as well as detect fraudulent ones. Having said that, Signifyd can also be said to operate as an automation model as it automatically detects any sort of phony orders in its client eCommerce store.
Signifyd eCommerce fraud protection platform has three primary services for companies, these are:
Revenue Protection
Abuse Protection
Payments Compliance
The firm’s Commerce Protection Platform consists of various products and solutions that automate online order flows in a systematic manner that can instantly point out fraudulent orders from legitimate ones or any sort of illegal activities that its customers could face.
Signifyd offers solutions in the form of Fraud Protection, Abuse Prevention, Account Protection, and Payment Optimization for the following:
Guaranteed Fraud Protection
Automated Recommendations
Policy Protection
Guaranteed INR Protection
Return Abuse Prevention
Chargeback Recovery
ATO Protection
Auth Rate Optimization
SCA Exemption Management
Signifyd generates revenue primarily by offering its Commerce Protection Platform solutions to its clients. The company, however, hasn’t disclosed its revenue model to the public yet.
Signifyd – Funding and Investors
Signifyd has raised a total funding amount of $390 million over six rounds of funding. The details of its funding and investors are as follows:
Date
Funding Round
Amount Raised
Lead Investors
Apr 15, 2021
Series E
$205 million
Owl Rock Capital
May 31, 2018
Series D
$100 million
PremjiInvest
May 4, 2017
Series C
$56 million
Bain Capital Ventures
Feb 25, 2016
Series B
$20 million
Menlo Ventures
Jun 22, 2015
Series A
$7 million
–
Dec 19, 2012
Seed Round
$2 million
–
Signifyd is also backed by investors like Canada Pension Plan Investment Board, FIS, Neuberger Berman Group, Lucas Venture Group, American Express Ventures, AllegisCyber, IA Ventures, and Resolute Ventures.
Signifyd – Growth
The year 2021 was a great year for Signifyd. The company looks to that year in which it continued to innovate in the field of eCommerce payments, became a unicorn, and furthered its goal of giving merchants transparent, adaptable solutions in the face of quickly shifting market conditions.
Signifyd maintained its position as a market leader in fraud protection, the best solution for usability, and momentum, and was recognized by G2 as the best company in all three categories. Furthermore, the company even expanded its team in Mexico and launched an office in Brazil.
In 2022, Signifyd achieved impressive growth and helped drive significant value for its customers. The company’s top 10 customers experienced an average approval rate uplift of 9%, while merchants on the Signifyd Commerce Network saw a 67% increase in sales. Signifyd also demonstrated its reliability and scalability during Cyber Week, maintaining 99.9999% uptime and evaluating over $40 million per hour in orders. Furthermore, Signifyd increased the number of chargebacks it was able to reverse by 49% compared to the previous year.
Signifyd – Awards and Achievements
Some of the awards and achievements of Signifyd are:
Merchant Anti-Fraud Solution of the Year, Payments Awards 2022
2020 Best Places to work – San Francisco Business Times
2020 Winner Company of the Year presented by Digital Awards
Signifyd was listed under Forbes FinTech 50
Best Practices Award 2019 – Frost & Sullivan
Signifyd was named a Cool Vendor in Gartner’s 2017 “Security for Midsize Enterprises” report
Signifyd has recently launched the first plug-in with a built-in dynamic exemption for SCA management by teaming up with commercetools, an industry-leading eCommerce software provider. With this partnership, the company believes that it will give commercetools’ merchants a chance to increase sales and will bring a 100% financial guarantee.
Signifyd has always strived to give its best to its customers when it comes to various fraud trends and abuses. With this determination, the firm continues to do its best in the coming years by providing a better seamless commerce platform.
Signifyd – FAQs
What does Signifyd do?
Signifyd offers a progressive Commerce Protection Platform that uses its commerce network to increase sales, automate customer experience, and get rid of fraud and customer misuse for retailers.
Who are the founders of Signifyd?
Michael Liberty and Rajesh Ramanand are the founders of Signifyd.
Where is Signifyd’s headquarters?
Signifyed’s headquarters are situated in San Jose, California, USA.
Who are the competitors of Signifyd?
Some of the prominent competitors of Signifyd are Fraud.net, Forter, Kount, Riskified, ClearSale, CyberSource, Easy Solutions, and Akamai.
A new breed of startups has introduced an innovative payment method that incentivizes consumers to save for big ticket purchases while avoiding a debt trap. This concept is called SNBL – Save Now Buy Later.
The SNBL financial strategy is a concept that works around saving money by setting aside a particular sum on a regular basis, building up savings and then using that money to make a big-ticket purchase at a later date. As new and nascent as the concept of SNBL is globally, it is garnering strong attention, especially in the fintech industry due to its model that combines saving, spending and investing simultaneously.
Globally, many startups offering the SNBL concept have generated high interest from investors. Accrue Savings, a fintech startup in New York raised USD 25 million in January 2022 in a fundraising round that was successfully led by Tiger Global Management. In December 2021, Simpl, an Egyptian startup raised USD 6 million that was led by Beco Capital, A15 and Global Ventures. India, too, has witnessed a spurt of startups in the SNBL financial space like Multipl, Omnicard, Hubble Money and Tortoise.
The fintech platforms that offer SNBL options for their consumers first tie up with various businesses and brands offering various products from travel packages to consumer goods or electronic goods. Individuals interested in purchasing any particular product beginning depositing a specific sum of money with the merchant every month. Once the goal is achieved the money is then returned with added incentives like cashbacks, market returns and brand-specific incentives.
These startups have adopted different working models, each effective in its own way. Hubble deposits the money in an escrow account with the partner bank and also offers a discount on purchases from the platform. Such a savings scheme allows the individual to receive discounts from merchants that crystallize on purchase. Multipl, on the other hand, is a SEBI (Securities & Exchange Board of India) registered investment advisor that allows individuals to invest money in suggested portfolios through mutual funds. This gives the freedom of choice to the individuals of purchasing from third party merchants or to withdraw the money for personal use elsewhere. The platform also offers the choice of saving directly with the merchant and also avail the discounts from them. Another platform, Tortoise, operates by holding money with a payment gateway and remit the merchant directly upon purchase.
Advantages Of SNBL
The post covid-19 era saw an increase in savings awareness across the globe and the growth of SNBL startups coincides beautifully with this growing sentiment. The idea of savings versus credit is essentially about safety versus risk. This resonates with India as the country has a strong savings culture.
Vignesh Ramanujam, Partner at Lok Capital resonates this idea and says – “It is just that earlier, the startup focus was not there to weaponize savings as an instrument to improve our financial well-being. If one is able to marry savings with a specific purpose, then one can create a huge market as there is enough demand and supply.” He also added that merchant segregation will play a key role.
The nascent market of SNBL has below set of advantages:
No Debt or Loan
It allows consumers to purchase high value or luxury goods without falling into debt through credit card purchase or a bank loan.
Assured Brand Cashbacks and Discounts
An SNPL sale honors a predetermined cashback or discount that is not dependent on any particular bank or credit card usage. This particular model is also free of any on-going sales or offers due to its confirmation of any offer or discount.
SNBL – A Savings Perspective
Working on the principle of a reverse SIP, the SNBL model estimates the amount of money required for a specific future aspirational purchase. It, then, gives the individual the amount that needs to be saved every month to finally reach the goal.
Challenges Of SNBL
Delayed Gratification
SNBL is a time specific savings plan that allows the individual to gradually accrue the total money required for an aspirational purchase. Hence, it can take a few months or years, depending on the value of purchase and the monthly saving capacity to reach the final goal. This leads to delayed gratification for the consumer and not suitable for people who need products instantly.
Safety of the Invested Sum
The concept of SNBL is new and not all the fintechs within this space offer mutual funds as a savings option. Businesses where the money is in escrow, the risk of rescinded offers from either the merchant or the SNBL platform itself is high.
Rohan Agarwal, SEBI RIA and Co-Founder of Moneyjar says – “Given that not all platforms are using mutual funds to invest interim savings, the safety and reliability of the platform and associated merchants becomes a big issue with SNBL. Therefore, it is important to ensure platforms handling customer funds communicate clearly and accurately how the user funds are handled until the intended purchase is complete.”
Suitable for only Aspirational Purchases
The current features of SNBL platforms are supportive of aspirational purchases in segments like travel, electronics or gold. The benefits of SNBL in the essentials and regular use items market like groceries, education and utilities payments are not yet fully explored. However, building savings in these categories through SNBL might be more appropriate going into the future.
SNBL – Value Proposition For Brand Partners
As valuable as the concept of SNBL is for the end consumers, it presents a few key value propositions for the participating brand partners as well. Some of the important advantages for the partners are –
Reduced cart abandonment rate
Assured sales with higher visibility into future cashflow
Customer acquisition cost is comparatively lower
Cuts through the question of affordability due to the saving proposition of the platform
Increased top-of-the-funnel conversion with integrated goal planning
Able to offer a debt free shopping experience to the end customer
Conclusion
As a new category in the emerging fintech market, its path to success is still new, untraveled, and presents unique challenges. However, as a business model it presents a win-win scenario for all participants increasing its potential tremendously. Another existing advantage is that every aspect of this business is regulated by a different governing body. Hence the structure already exists. All that remains to be seen is how the market for SNBL emerges and grows in the future.
FAQs
How does SNBL incentivize consumers to save?
SNBL incentivizes consumers to save by offering rewards, discounts, or other benefits for reaching savings goals toward specific items.
Can SNBL help consumers avoid falling into debt?
Yes, SNBL can help consumers avoid falling into debt by encouraging them to save money for big purchases instead of relying on credit or loans.
What types of purchases are ideal for SNBL?
SNBL is ideal for big-ticket purchases such as electronics, appliances, furniture, or any other item that requires saving.
What startups are currently offering SNBL?
Some startups offering SNBL include Hubble, Multipl, and Tortoise. However, there may be others in different regions or industries.
