The Knot

The Knot Case Study i. Opportunity analysis of People, Opportunity, Context and Deals. a. People: i. David Liu, Chief Executive Officer 1. Nine years of digital production and management experience 2. Managed staff of forty at video production company 3. Founded CD-ROM development firm ii. Rob Fassino, VP of Marketing 4. Eight years of advertising experience 5. Founded digital division of advertising company 6. Produced TV commercials iii. Carley Roney, VP of Creative Development 7. President of RunTime, Inc. 8. Six years as creative director and editor 9. M. A. in Cultural Studies v. Michael Wolfson, VP of New Business Development 10. Founded production company 11. Co-founded digital media division with Fassino v. Russ Casenhiser, Director of Operations 12. Co-founded Bridal Search, Inc 13. Developed industry’s largest searchable database of bridal gowns 14. Co-owned La Galleria – women’s apparel store 15. M. B. A. vi. Becky Casenhiser, Director of Merchandising 16. Co-founded Bridal Search 17. Maintained relationships with bridal gown manufacturers 18. Co-owned La Galleria – managed buying, sales, customer service 19.M. B. A. vii. Erik Herz, Director of Advertising Sales 20. Six years of sales experience in publishing industry 21. Helped launch Marie Claire in the American Market viii. Partnerships: 22. Online: a. Excite i. Features partner/ lifestyle channel b. AOL ii. Featured wedding resource iii. Exclusive honeymoon resource iv. Featured wedding content partner c. Yahoo! v. Developing Yahoo â€Å"I do† weddings 23. Marketing partnerships: d. Bloomingdale’s vi. Online and in-store marketing e. 1-800 Flowers vii. Marketing and promotion partner f. Atlantic Records viii. Marketing and promotion partner . Great Bridal Expo ix. Featured online wedding resource h. Museum of the City of New York x. *The Future of Weddings* i. Harley Davidson Cafe xi. Special promotions, live events j. WEDCOM ‘97 xii. Keynote speake r/online partner b. Opportunity: ix. What is The Knot selling? 24. Online content dealing with various issues in the early parts marriage k. Second marriages, elopement, same-sex marriages, premarital pregnancy 25. Provide convenience l. Wedding-planning m. Fashion n. Beauty advice o. Grooms p. Travel q. Gifts r. Home 26. Gift shop 27. Gift registry x. Customer: 28.People looking to get (re)married. 29. People looking for wedding gifts 30. Wedding-related services xi. Is this service/product a compelling purchase? 31. Yes. People don’t skimp on weddings 32. Recession-proof: 2. 4 million weddings a year/ 34 billion in annual sales and services 33. xii. Can The Knot grow? 34. Yes. Its online well established base will allow it continue growing at a faster rate than any of its competitors xiii. How fast? 35. xiv. How will The Knot reach more customer segments? 36. Not by magazines high cost of infrastructure and development 37.Continue to adapt to technological changes and trend s in the industry 38. Venture into wedding related markets (pregnancy, planning resources for people without money for huge weddings, etc) 39. Offer evolving and compelling information 40. Create new strategic alliances 41. Strengthen user loyalty 42. xv. What are The Knot’s economics? 43. P20 xvi. What stands in the way of success? 44. Competitors 45. Wedding planners 46. c. Context (factors that inevitably changed, but can’t be controlled by The Knot): xvii. Regulatory environment xviii. Interest rates xix.Demographic trends xx. Inflation d. Deals: ii. How much money should they raise? For what purpose? e. Money: f. Purpose: xxi. Increase investment to further develop the brand xxii. Maintaining relationships with advertisers xxiii. Build technological infrastructure xxiv. Launch sites in other countries xxv. Develop gift registry business (p7) xxvi. Develop technology xxvii. Protect trademark/trade names iii. From whom should they raise money? On what terms? g. Whom : xxviii. Venture capitalists 47. Well known team 48. Wedding market has a high growth potential 49. xxix. Strategic partners . Terms: xxx. Provide limited strategic decisions xxxi. Unlimited cash flow iv. What should David Liu and Carla Roney do? Why? i. What to do: xxxii. Continue to provide a wide range of products that keep the customers’ interest xxxiii. Broaden customer base launch sites in other countries j. Why: xxxiv. Maintain/develop technology xxxv. Keep current relationships with advertisers, customers, and retailers xxxvi. Maintain position above competition xxxvii. Respond effectively to competitive pressures xxxviii. Attract advertising from various industries