International Marketing Rocket Internet and digital revolution · and mobile apps for iOS & Android...

International Marketing Rocket Internet and digital revolution

Silvia Rita Sedita

Elaborated from Winiarski (2014), “How to rock the Internet”, presentation

given at my “Advanced Marketing” course, December 2014.

To Become the World’s Largest

Internet Platform Outside the

United States and China

Mission:

Market Opportunity

Potential

customers

5.4 bn

Global mobile

users

74%

“Internet is going further and faster into

daily life than anyone imagined”

Born in Berlin

Founded in 2007

Incubated over 100+ companies

20+ business models

Target over 5 bn people world-wide

25,000+ people on the ground

Stylized facts

Rocket Internet started in Berlin in 2007 with just four employees and two consumer brands and an initial investment of EUR 0.5 million.

Since then, Rocket has evolved into a unique platform that systematizes and accelerates the process of identifying, building and scaling proven Internet models with predictable, consistent and repeatable output in complex markets.

As of December 2014, Rocket Internet and its companies were active in more than 110 countries with more than 30,000 people.

Rocket Internet was listed on the Frankfurt Stock Exchange on October 2, 2014, and, as of December 31, 2014 had a market capitalization of EUR 7.9 billion.

Rocket Internet keeps growing

The company will

relocate its

headquarters to the

GSW building in

Charlottenstraße 4 in

Berlin’s Kreuzberg

district with a view to

the former Checkpoint

Charlie. Named the

“Rocket Tower”,

Europe’s largest start-

up campus will emerge

in two interconnected

buildings.

Shareholder Structure

1

¹ This figure includes shares that are held by affiliates of Global Founders GmbH.

Management Board

Oliver Samwer

CEO

Oliver Samwer is a serial

entrepreneur with a proven track

record in some of Germany’s most

successful internet companies.

Graduated from WHU, he founded

Rocket in 2007 and serves as its

CEO since 2014.

Peter Kimpel

CFO

From 1992 to 2014, Peter Kimpel held

various management positions at

Goldman Sachs in the United States,

Frankfurt and London – at last as a

partner in London. Peter Kimpel joined

Rocket in 2014 as CFO.

Alexander Kudlich

Group Managing Director

Before joining Rocket as Group

Managing Director in 2012, Alexander

Kudlich was Assistant of the Chairman

and CEO of Axel Springer and Regional

Managing Director with zanox, one of its

group companies. Alexander graduated

from HSG, UCL and ESMT.

4 Megatrends that Drive Growth

1) Smartphone Ubiquitous

2) Reversed Population Pyramid in Emerging Compared to Developed Markets

3) Rising Middle Classes

4) Leapfrogging Physical Retail

10%

[VALORE]

USA & China

5%

[VALORE]% 7%

13%

India Mexico Brazil US

74 88 90

2006 2014E 2022E

2

10

33

2006 2014E 2022E

31% 34% 33% 1% 6% 16%

% Middle Class of Total Population

Size (MM) of Middle Class in USA Size (MM) of Middle Class in Indonesia

So

urc

e: G

lob

al In

sig

hts

, W

CIS

, P

lan

et R

eta

il, U

nite

d N

atio

ns, E

uro

mo

nito

r, W

orl

d P

op

ula

tio

n P

rosp

ects

(U

N,

20

09

)

Elderly (Aged 65 and Over), as a Percent of the Population, 2010

Smartphone Users Growth (2013–2018E)

US

1,150

Africa

100,012

2014E People Per Retail Outlet

Rocket Internet helps people use their smartphones to get what they need, any

place, any time, offering the same world-class user experience in all markets.

The Home Screen Of The World

Proven Business Models

Concept

Capital

Team

Identification of Potential

Set up High Profile Team

Execution Support Top-Tier Investors

Close Market Monitoring

International Talents

Experts in all Categories

Concept Evaluation

“We identify proven business models that focus on basic needs. We quickly build

companies for these business models using highly standardized and optimized

processes and then scale these companies to a leading position in our markets.”

“We Are Not Investors. We Are

Builders.”

1. Identify

“We continuously

monitor customer

behavior in our

markets.”

2. Build

“Our functional

experts from IT,

SEM, SEO, BI, CRM

etc. build companies

from scratch.”

3. Scale

“We roll out companies to

>100 markets and aim to

scale them to #1

positions.”

Global

Network of

Companies

More than 20.000 People on the Ground

5,800+ 2,100+

6,300+

3,000+

2,800+

Focus On Online Business

Models Across 4 Sectors

4 Sectors: the companies

eCommerce Marketplaces Financial

Technology

Travel

Company classification

Regional Internet Groups - Africa

Regional Internet Groups – Asia Pacific

Regional Internet Groups – Latin America

Regional Internet Groups – Middle East

The Rocket Platform: a winning

business model

Infrastructure

Highly structured / best

practices

Centralized IP with

regional execution

Repeatable and scalable

Rocket Network

Founding 10 new

companies p.a. on

average

Consistent returns across

network of companies

Technology

Proprietary technology

platforms allowing rapid global

deployment

Comprehensive KPI analytics

driving continuous optimization

Provision of shared services to

jump start new businesses at

low cost

Processes

Highly structured / best

practices

Centralized IP with

regional execution

Repeatable and scalable

Increasing Net Promoter Scores

Standardized Master Launch Process

Capability to Launch a New Venture in <100 Days Ventures Operationally Independent in <200 Days

Day 0 Day 100 Day 200

INDEPENDENCE Set Up Rocket Best Practices Reporting & Optimization KICKOFF LAUNCH

MVP web & apps

Data-Warehouse

CRM tools

Marketing channels

Legal & Finance Legal Entities, Brand & Domains, Accounting

Daily, Weekly and Monthly KPI Reporting for Marketing, CRM, Sales, Customer Care, Ops etc.

Financial Reporting & Controlling, Compliance

Engineering

Product & UX

CENT

RAL

LOCA

L

Marketing

CRM

Business Intelligence

Operations

Sales

Customer Care Call center and local support

Design Website & Apps

Iteration of Product, Agile Development Focusing on Stability, Security and Speed

Targeting, Creative, Bidding, with Maximum Granularity (eg Keyword Level) and Optimization of CAC vs. CLV

Segmentation, Lifecycle Management, Content, Automatization

Sales and Business Development processes Focusing on Daily Management of Sales and Business Development Funnel in SalesForce

Rocket Operations Management Systems Improving Efficiency in Operations

Landing Pages, Onsite Search, Onsite Sorting, Personalization, Multivariate Testing

HR Continuous Recruiting of Central and Local Founders, 2nd Level Management Talent and Functional Experts

Data mining

Best Practices shared in Real-time

Reporting Input: Key Metrics Pulled Automatically From Company And Third Party Systems

Data Warehouse For Each Company

Output: Automated KPI Reporting And Benchmarking Across All Companies And Functions

Backend Systems Orders New Customers …

Marketing Tools Impressions & Clicks Costs …

Onsite Analytics Visits With Origin Onsite conversions ...

Sales Tools Biz Dev Data & Funnel Supplier Base …

CRM Tools Contacts With Origin Costs …

Other Data Sources App Downloads Operations, ERP etc. …

Marketing

Onsite

CRM

Mobile Apps

SEO

…

Reports Daily Weekly Monthly

Three Proprietary Technology Platforms

Alice Nico

Powering Rocket’s marketplace

companies

Omni-channel: desktop, mobile web

and mobile apps for iOS & Android

Enables all relevant transaction

mechanics (auction, sale, lead etc.)

>70

Websites & Apps

Rocket Marketplace Platform

Alice

Powering Rocket’s ecommerce

companies

Omni-channel: desktop, mobile web

& mobile apps for iOS & Android

Highly scalable, can handle very high

volume and multiple countries

>40

Websites & Apps

Rocket eCommerce Platform

Yoda

Powering Rocket’s financial

technology companies

Scoring APIs: integrated connectors

to international scoring providers

High security architecture adaptable

to arbitrary regulatory environments

>8

Websites & Apps

Rocket FinTech Platform

Source: http://tech.eu/features/1413/how-big-is-rocket-internet-kinnevik/

The secrets of the business

Alice

… Capture Founder

Economics Minimize Risk … … Scale Globally

Low Customer

Adoption Risk

Low

Competition

Risk

Low Execution

Risk

Deploying

Proven Models,

With 15 Years

Execution

Track Record

75-100%

Ownership

Repeatable

Success in

Geographical

Roll-Out

Key achievement 2014

Global Fashion Group

"The creation of GFG brings together five powerful digital

brands led by a unique group of highly talented founders and

managers. By operating as a single entity, Dafiti, Jabong,

Lamoda, Namshi and Zalora will be even more effective in

expanding their leadership positions in their respective

marketplaces.”

Lorenzo Grabau, CEO of Kinnevik

Global Fashion Group

"GFG will be focused on capturing the massive growth

opportunity of fashion e-commerce in emerging markets.

Each of the business units will be able to build on the original

Rocket platform and continue to leverage knowledge and

expertise gained across 27 countries. I look forward to

working with our founders in accelerating GFG's growth

profile and development even further.”

Oliver Samwer, co-founder and CEO of Rocket

Rocket Internet identifies

Food and Groceries as the

next frontier of e-commerce

Choice of sectors

ZALANDO

Source: http://tech.eu/profiles/1428/how-big-is-zalando-kinnevik/

International Marketing Rocket Internet and digital revolution · and mobile apps for iOS & Android...

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