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One of Linkedin's main revenue drivers is the Recruiter solution where recruiters can send InMail and reach out to Linkedin users. Linkedin is thinking about launching a downgraded version of this product for India where recruiters can only find/touch base with Linkedin users who are based in India. How would you build this new product?

Lets assume $9000/yr for fully featured product vs $6000/yr for the simpler version of this product in India. How would you operationalize it and present to VP for a Go or No-Go decision?
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Clarifying questions:

1) What is the objective of this product? is it market share , revenue etc - Assume incremental revenue

2) has this product been tried in any other part of the world - No, assume India is the pilot for this project.

3) Are there any additional cost associated with this product? - No, its just a downgrade, can be handled by software.

Thank you, now i would like to provide a mission statement for this product.

Linkedin mission is to connect the world professional and help them being more productive and vision is to provide economic opportunity for every member of the global workforce

This product synergizes with Linkedin mission and vision by broaden its reach to more HR professional in India who can use ever-expanding Linkedin India user base and connect right talent to right jobs.

Below will be my success metric for the current product

1) Incremental Revenue is positive and atleast >10% or more

2) Market share expansion 

In order to arrive on those metics, let me start with user personas, combined with their pain points, assumptions on modeling the product and recommendations.

User Personas of India HR recruiters can be divided into:

1) Global MNC (Presence not only in India but World Wide > 5000 Employees World Wide) - They might not be interested in this product and might not downgrade their current solutions from Linkedin

2) SMB (Small & Medium Business [100-5000 employees] or MNCs only having India presence) - Tis segment may or may not have the current product offered by Linkedin and can be targetted.

3) Startup (<100 Employees) -  This segment is price sensitive and may or may not be using the Linkedin or even competitor solution. This segment can also be targetted.

Using above segmentation, i believe my product can serve to broaden by reach in SMB and Startup.

Lets study SMB and startup a bit more which covers Opportunity and Risks.

1) SMB : They have limited budget and may sometimes be using only Linkedin or competition product (or sometimes both). By offering this product, We may risk reduction in revenue where portion of HR recruiters in this segment may downgrade their product to india offering but at the same time we have opportunity to winback or expand our HR recruiters market for this product in India as tis product may start appearing under their budget.

2) Startup: This is a price sensitive segment and they may be on Linkedin or competition but may not be using the exisiting solutions due to high cost. Startup, if in fast growth mode needs access to right talent and this solution may be right fit for them.

Next Step would be to evaluate the market, make assumptions on Linkedin curent market share in India and incremental revenue.

In order to identify whether HR recruiters may use this product or not. We can do the following:

1) Run a survey on Linkedin to identify the excitement for this product

2) Compare the competition offering and see if they also offer a local product or not like Naukri and understand the pricing

3) Get an insight on how competition will react, will they do nothing or lower pricing.

Using above, I made a beow table on Linkedin market share assumptions, current HR base, winback from competition and cannabalized or downgrading existing product.

total HR base in India  1M
Linkedin Market Share for recruitement solutions  25%
Current product Cost  $9,000
Current Revenue  $2,250
    
Winback Competition:   
Linkedin Market share increases by 10%   $600
    
Revenue loss by downgrading existing product:   
40% of Linkedin Existing HR recruitment solution downgrade the product   $(300)
    
Incremental Revenue   $300

This is the simple Financial modeling of new product in India and my success metric will be % growth in revenue vs last year.

 

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