Company X and Facebook Wi-Fi Opportunity Overview
Overview
Facebook is a social networking service looking to partner with networking hardware providers to implement and distribute Facebook Wi-Fi, a free Wi-Fi service for Facebook users. Facebook Wi-Fi allows end-users to access free Wi-Fi when users “check-in” to a wifi-enabled location via a Facebook browser/app. Small businesses benefit from Facebook’s ability to capture their customer’s demographic and related data to understand their customers and ultimately help them with their businesses..
Company X will partner with Facebook to deliver this capability on several products, including routers and access points. We would be one of the early adopters of Facebook Wi-Fi (M Competitor has already launched the service) and target the small to medium-sized business market.
With 1.11 billion Facebook users as of May 20xx, there is a unique opportunity to tie Company X with an organization with a broad market footprint with both users and small businesses. We can increase Company X’s penetration into these segments leveraging their sales and marketing efforts into the SMB and Consumer markets.
Opportunity Size
Facebook is a $5.1 Billion dollar company with 1.11 Billion users. It is available in 70 languages. The global footprint for Facebook is large, with small businesses being a key target for them. There is a significant opportunity for Company X to penetrate consumers and small businesses worldwide.
- 50 million total Facebook pages
- 751 million Facebook mobile users
- 17 billion location-tagged Facebook, including check-ins
- 500,000 pages promoting posts
- 2.5 million Facebook promoted posts
- 42 million page offer claims
- 2 billion connections between local businesses and users
- 645 million average weekly regional business page views
Source: http://ansonalex.com/infographics/Facebook-user-statistics-2012-infographic/
Company X Opportunity Scope:
- Facebook Wi-Fi as an added feature can increase sales of routers in the small business and consumer market
- Company X can increase sales of additional networking products such as cameras, storage, access points.
- Facebook branded captive portal may increase the number of multi-site business, selling more units.
Target Market
Segmentation by Business Type
Facebook has identified 13 key segments, which are targets for Facebook Wi-Fi. Highlighted in red are the initial priority markets for them. Many of these targets match with segments Company X currently hold marketshare.
| 1. Airports 2. Planes 3. Stadiums 4. Colleges 5. Hotels 6. Coffee shops 7. Retail | 8. Casinos 9. Amusement parks and tourists attractions (e.g., ski resorts, Disney) 10. Bookstores 11. Libraries 12. Public spaces (but not government) 13. Trains |
Segmentation by Customer Size
Segmented by customer size, we intend to focus on the following target markets related to solution rollout.
| Micro SMB Mid-Enterprise Upper Mid-Market Enterprise | < 20 0-99 100-499 500-999 1000+ |
Phase I
Phase I’s focus are micro-businesses with employees of less than 20 networks. Most of the businesses are DIY merchants who purchase and install their network. The intent is to deliver a high-end 11AC router solution for this segment initially.
Phase II
Phase II’s focus includes SMB and Mid-Enterprise businesses that may require a Value Added Reseller(VAR) to install their network. The plan is to add the upcoming DXX products and selected Business Access Points to support Facebook Wi-Fi.
Product
The first product that will include Facebook Wi-Fi will be the DXX123, positioned as a high-performance 11ac router in the SMB market for DIY merchants. This allows business owners to easily implement a captive portal in their business, providing their customers with instant access to free Wi-Fi.
Based on the target market and release timing, the DXX product line has been selected next on the roadmap. The selection of specific Business Access Points is being proposed and still TBD.
Pricing and Timing
Pricing
Facebook Wi-Fi will be added as a feature to specific Company X products. There will be no additional charge for this feature. Estimated MSRP price for the initially targeted SKUs:
| Model | MSRP |
| DXX123 | US $199.99 |
| DXX1XX | US $169.99 |
| DXX12X | US $209.99 |
| DXX1X5 | US $189.99 |
| DXXXX2 | US $299.99 |
Timing
In terms of timing, Company X is looking to launch the Facebook Wi-Fi solution as soon as possible. It is anticipated that competing solutions (in addition to M Competitor) will become available soon. An immediate launch will generate a small lead on the competition and, just as necessary, with an early start, we would develop a mindshare/relationship with Facebook before other competitors.
| Model | Launch Date |
| DXX123 | Q1 -202x |
| DXX1XX | Q2-202x |
| DXX12X | Q2-202x |
| DXX1X5 | Q2-202x |
| DXXXX2 | TBD |
Value Proposition – Small Business Owner
Micro and small business owners have an additional reason to offer free Wi-Fi to their customers. This includes:
- Connecting with customers: Identifying and Understanding their customers
- Share Offers and Promotions: Incentivizing new and regular customers with promotions and offers
- Generate More Connections: Utilizing Facebook’s advertising network to grow their business
Proposed Product Messaging
- Bring a Great Wi-Fi experience to your CustomersEliminates the need for a secret Wi-Fi code
- Ease of use and maintenance
- Better Understand and Connect with your Customers
- Connect with your customers every time they visit
- Retain actual customer ID to share offers and announcements
- Increase traffic to your Facebook page
- Enhance your business Facebook ads
- Increase Your Awareness with Customers
- Increase check-ins driving over mentions of your business on Facebook and other Facebook users pages.
- Increase brand exposure and leads to ongoing ROI and customer retention
Sample User Experience/Flow
- Connect to merchant’s wireless network
- Launch the browser (or app)
- Check-in on Facebook
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