Incredimail 2011 Annual Report Download - page 24

Based on our recent consumer research, we have learned that while the graphic content was critical in attracting the user to the product, the use of the product
was based on our ability to provide our consumer segment of “second wave adopters”,
software that is simple, safe and useful, assisting them in better utilizing their
time.
Our user. Our products ideally service “second wave adopters”,
characterized by typically being above 40 years in age, looking for computer applications
that assist them in effectively utilizing their time and that are simple, safe and useful. Based on our internal statistics and in-
depth consumer research contracted by the
Company, we have learned that, approximately 94% of our users are 35 years or older and approximately 79% are 45 or older. In addition, our users do tend to adopt
technology later in its life cycle, rather than earlier.
Our Opportunity . We believe we are one of the few hi-
tech companies that target this unique demographic segment, rather than offering the latest technology
to younger audiences. Our opportunity is to offer this demographic software that is simple safe and useful, enabling them to better utilize their time, as we have done
successfully with our email client, photo sharing software and recently begun with our PC optimization software. We believe this is a substantial and underserved
market.
Productivity tools
. We are actively seeking to enrich our product suite to include other consumer products that bear similar characteristics appealing to our
unique demographic segment. We believe our digital photo products Smilebox and PhotoJoy have these characteristics and will appeal similarly to our user
base. Based on our consumer research, we will seek to offer our users, in addition to these products, other tools in the areas, safety and security in the POC
environment, personal productivity, wellness, and other areas.
Our Strategy
Our objective is to become the market leader and a reliable provider of consumer software for second wave adopters seeking computer products that are
simple, safe and easy to use. To achieve this we intend to enhance our existing business and extend it beyond that by way of acquisitions.
To enhance the existing business we intend to;
By investing in consumer research, we will be able to better identify the specific needs of our targeted demographic. In addition, until recently, the Company
had predominantly relied on the viral nature of its applications, investing in customer acquisition only as a tool of initial market penetration for its products. The
growth of our user base has been tapering off as a result of us relying on this method of marketing. Based on the back-
end systems recently developed and still being
improved, the Company has increased significantly the amount invested in customer acquisition, in order to accelerate the growth in its user base. Finally, in order to
reduce the Company’
s dependency on a limited number of products and to better serve our users and their needs, we intend to continue to enrich and expand our
product suite.
However, in order to grow our business beyond organic growth, the Company intends to invest in acquiring other products and extend the business as we
have done with the acquisition of Smilebox Inc. in 2011. This will enable us to further diversify our revenue base, better serve the needs of our users and reduce the
time required to bring these new products to market.
By focusing on our consumer, enhancing and extending our business, we believe we will be able to further grow the basic metrics that support our growth,
by;
• invest in consumer insight enabling us to identify the specific needs of our targeted demographic;
•
continue and further increase our customer acquisition costs; and,
• develop a more robust product line.
•
Maintaining and growing our user base.
Our effective viral marketing has resulted in millions of registered users who spread the word about our
products and services at relatively low marketing costs to us. Our product remains viral and thereby provides high profit margins. We intend to layer
on top a strategy for acquiring new customers, who will also be viral to a certain extent, in order to accelerate our growth.
•
Increasing the use of our products by our users and the searches performed by them through our products.
By focusing on our consumers and their
needs, we believe we can increase the use of our products and subsequently the searching capabilities offered to them.
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