PROJECT REPORT
On
Rakuten Product Development “RGM as a Translation Service”
By
Smitha V
1NZ18MBA76
Submitted to
DEPARTMENT OF MANAGEMENT STUDIES
NEW HORIZON COLLEGE OF ENGINEERING, OUTER RING
ROAD, MARATHALLI, BANGALORE
In partial fulfilment of the requirement for the award of the degree
MASTER BUSINESS ADMINISTRATION
Under the guidance of
Dr .Sheelan Misra
Professor & HoD
2018-20
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CERTIFICATE
This is to certify that Smitha V bearing USN 1NZ18MBA76, is a bonafide student of Master of Business Administration course of the Institute 2018-2020, autonomous program, affiliated to Visvesvaraya Technological University, Belgaum. Project report on “RGM as a Translation Service, Rakuten India” ,is prepared by him under the guidance of Dr.Sheelan Misra, in partial fulfilment of requirements for the award of the degree of Master of Business Administration of Visvesvaraya Technological University, Belgaum Karnataka.
Signature of Internal Guide Signature of HOD Principal
Name of the Examiners with affiliation Signature with date
1. External Examiner
2. Internal Examiner
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DECLARATION
I, Smitha V, hereby declare that the project report on “RGM as a Translation Service, Rakuten India", with reference to “Rakuten India” prepared by me under the guidance of Dr.Sheelan Misra, Head of Department, Department of Management studies, New Horizon College of Engineering.
I also declare that this project report is towards the partial fulfilment of the university regulations for the award of the degree of Master of Business Administration by Visvesvaraya Technological University, Belgaum.
I have undergone an industry project for a period of Eight weeks. I further declare that this report is based on the original study undertaken by me and has not been submitted for the award of a degree/diploma from any other University / Institution.
Signature of Student Place: Date:
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ACKNOWLEDGEMENT
The successful completion of the project would not have been possible without the guidance and support of many people. I express my sincere gratitude to Niladri Shekar Halder, HR, Rakuten India, for allowing to do my project at Rakuten India.
I thank the staff of Rakuten India, Bengaluru for their support and guidance and helping me in completion of the report.
I am thankful to my internal guide Dr. Sheelan Misra, for her constant support and inspiration throughout the project and invaluable suggestions, guidance and also for providing valuable information.
Finally, I express my gratitude towards my parents and family for their continuous support during the study.
STUDENT NAME USN NO.
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TABLE OF CONTENTS
Chapter Contents Page no.
1 Executive Summary 03
2 04 Theoretical Background
09 3 Company Overview
25 4 Data Analysis and Interpretation
5 30 Findings, Suggestions and Conclusion
Annexure
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CHAPTER - 1 Executive Summary
Rakuten, Inc. is a Japanese electronic commerce and online retailing company based in Tokyo , founded in 1997 by Japanese businessman Hiroshi Mikitani. Its B2B2C E-Commerce Platform.
Rakuten Ichiba, is the largest e-commerce site in Japan and among the world’s largest by sales. The company operates Japan's biggest Internet bank and number one credit card company by transaction value.
It also offers e-commerce ,fintech, digital content and communications services to over one billion members around the world, and operates in 29 countries and regions. It is often referred to as "the Amazon of Japan”.
I am part of the E-Commerce, Product Development Team. Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.
Product development typically refers to all of the stages involved in bringing a product from concept or idea, through market release and beyond. In other words, product development incorporates a product's entire journey, including; Identifying a market need. Conceptualizing and designing the product.
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CHAPTER-2 Theoretical Background Of The Study
In business and engineering , product development covers the complete process of bringing a new product to market. A central aspect of product development is product design, along with various business considerations.
New product development is described broadly as the transformation of a market opportunity into a product available for sale. The product can be tangible or intangible ,though sometimes services and other processes are distinguished from "products."
Process Structure :
The product development process is articulated and broken down in many different ways, many of which often include the following phases/stages:
1. Fuzzy front-end (FFE): is the set of activities employed before the more formal and well defined requirements specifications is completed. Requirements speak to what the product should do or have, at varying
7 degrees of specificity, in order to meet the perceived market or business need. 2. Product design: is the development of both the high-level and detailed- level design of the product: which turns the what of the requirements into a specific how this particular product will meet those requirements. This typically has the most overlap with the engineering design process, but can also include industrial design and even purely aesthetic aspects of design. On the marketing and planning side, this phase ends at pre- commercialization analysis stage. 3. Product implementation: often refers to later stages of detailed engineering design (e.g. refining mechanical or electrical hardware, or software, or goods or other product forms), as well as test process that may be used to validate that the prototype actually meets all design specifications that were established. 4. Fuzzy back-end or commercialization phase: represent the action steps where the production and market launch occur.
Product Development Process :
1. New Product Strategy – Innovators have clearly defined their goals and objectives for the new product. 2. Idea Generation – Collective brainstorming ideas through internal and external sources. 3. Screening – Condense the number of brainstormed ideas. 4. Concept Testing – Structure an idea into a detailed concept.
8 5. Business Analysis – Understand the cost and profits of the new product and determining if they meet company objectives. 6. Product Development – Developing the product. 7. Market Testing – Marketing mix is tested through a trial run of the product. 8. Commercialization – Introducing the product to the public.
Product Life Cycle :
The product life cycle is an concept in marketing that describes the stages of a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage. Some continue to grow and others rise and fall.
The product life-cycle is an important tool for marketers, management and designers alike. It specifies four individual stages of a product's life and offers guidance for developing strategies to make the best use of those stages and promote the overall success of the product in the marketplace.
The five stages in the product life cycle are :
1. Product development. 2. Introduction. 3. Growth. 4. Maturity. 5. Decline.
9 Product Development:
The product development phase is the phase in which a company has a new idea for a product. For example, a fast moving consumer goods (FMCG) company comes up with a new idea for a weight loss supplement in the form of a milkshake. During this phase, the company is not making any money, because the product is not actually on the market yet.
Introduction Stage:
You can expect sales to be low while you perform introductory marketing to create awareness. Your primary goal during this stage is not to make a profit. Instead, you want to let customers know what your product does, and why it is special. Typically, you will introduce one product at a time, keeping the price either high for skim pricing--the most common--or low for penetration pricing. Initial distribution is selective, but broadens gradually based on your distribution plan. Early efforts focus on promotion and recognition. Until customers know about the product, they will not buy it.
Growth Stage :
The growth stage is all about increasing sales and gaining consumer loyalty. Competitors usually appear during the end of the growth phase. Increased advertising builds brand preferences. Continuing to roll out new product features, improvements or upgrades keeps your customers wanting more. If demand for your product remains high, you can respond by keeping the price at a high level or reducing the price to broaden your market share. Distribution should be intensive during this phase to get the product out to your entire consumer base.
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Maturity Stage :
If your product survives the first two stages, it will spend the most time in this phase. During the maturity stage, you will seek to maintain market share and extend your product's life cycle. Tweaking your product to make it unique helps it stand out from competitors. Keeping an eye on the competition and pricing your product accordingly conserves market share, while avoiding price wars. Widen distribution and offer incentives to sellers to keep your product on the shelf. Finally, promoting brand loyalty and offering consumer incentives spurs customers to switch to your brand.
Decline Stage :
During the decline stage, demand for your product decreases along with both price and profit margin. Now, you have three choices: maintain the product and hope competitors do not, harvest the product and continue making profit as long as possible, or discontinue the product. Reducing the number of products, and refreshing the packaging can make them look new again. Lowering prices helps liquidate inventory, but if your product continues to serve a niche market, maintaining prices keeps profits coming in. Phasing out less successful distribution channels and focusing promotions on brand image for future products is a good strategy.
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CHAPTER_3 Company Overview
12 Rakuten, Inc. is a Japanese electronic ecommerce and online retailing company based in Tokyo, founded in 1997 by Japanese businessman Hiroshi Mikitani. Its B2B2C E-Commerce Platform Rakuten Ichiba is the largest e-commerce site in Japan and among the world’s largest by sales .
The company operates Japan's biggest Internet bank and number one credit card company by transaction value. It also offers e-commerce, fintech, digital content and communications services to over one billion members around the world, and operates in 29 countries and regions. It is often referred to as "the Amazon of Japan ".
In 1997, our first brand was born, in the form of the online shopping mall Rakuten Ichiba. The name was inspired by a desire to create something akin to the Rakuichi-Rakuza, Japan’s first free and open marketplaces from the Azuchi- Momoyama period (1573-1600), while emphasizing a belief in the future and a sense of “optimism” - as the word rakuten means in Japanese. These ideas have remained an important part of every service we have developed since.
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It was the dawn of the internet age, and for many, online shopping was an exotic idea. By choosing a familiar Japanese-sounding name, Rakuten looked to earn the trust of its new customers. Soon after, the company name was changed from the original “MDM” to “Rakuten.” Other group services followed suit, working the new name and logo into their own brands.
In 2005, Rakuten started expanding outside Japan, mainly through acquisition and joint ventures . Its major acquisitions include Buy.com (now Rakuten.com in the US), PriceMinister (France, now Rakuten.fr), Ikeda (now Rakuten Brasil), Tradoria (now Rakuten Deutschland), Play.com (now Rakuten.co.uk in the UK), Wuaki.tv (now Rakuten TV in Spain), Kobo Inc. (now Rakuten Kobo in Canada), Viber (now Rakuten Viber), Ebates, Viki (now Rakuten Viki), OverDrive, Inc (now Rakuten OverDrive), Slice (now Rakuten Slice) and The Grommet. The company also has an online marketing business, Rakuten
14 Marketing, and has investments in companies such as Pinterest, Ozon.ru , AHA Life Acorns.
In 2015, Rakuten relocated its corporate headquarters from Shinagawa to the Tamagawa neighbourhood of Setagaya- ku , to consolidate its Tokyo offices and to accommodate future growth. In 2016, the company's revenues totaled US$ 7.2 billion with operating profits of about US$347.9 million. As of June 2017, Rakuten reported it had a total of 14,826 employees worldwide.
On 16 November 2016, Rakuten announced a €220 million deal for global sponsorship with Spanish football club FC Barcelona starting in the 2017– 2018 La Liga season through 2020, replacing Qatar Airways for this role. Rakuten's app Viber will also be the club's official communication channel. In May 2018, Rakuten announced a new wireless mobile network in Japan.
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Existing expectations are often the reason for giving up or compromising, without thinking too deeply. At the Rakuten Group, we are determined to redefine those expectations.
By believing in the future and with the optimistic spirit that our name represents, we are committed to providing a new vision of a bright future ahead and happiness for our members, partners, communities and people all qcz
Our vision is represented in our new global logo by a motif based on the Japanese character for "one", or “ichi”, representing both a new beginning and our ambition to lead in whatever field we choose to operate in.
History
Since our foundation in 1997, innovation has been at the core of who we are. With the mission of "empowering people and society through innovation and entrepreneurship," and in line with our vision as a Global Innovation Company, we have engaged in a wide range of businesses and services. Here are some key milestones in the history of the Rakuten Group so far.
1997-1999: The founding of Rakuten and the early years of internet shopping mall Rakuten Ichiba
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Fig. 2.2: The top page of Rakuten Ichiba at the time of founding.
In an era when everyone seems to be saying that people will not buy things on the internet, Rakuten Ichiba, a B2B2C marketplace, launches with just
six employees, one server, 13 merchants and the strong desire to empower merchants that are small, regional or perhaps unfamiliar with computers and the internet
2000: IPO and expansion of Rakuten Group
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Rakuten enhances its brand awareness widely while accelerating M&A activities through an IPO on the OTC market, representing a major step into the new businesses and services that will ultimately constitute the Rakuten Ecosystem.
2001: A vision of Rakuten Group reaching 1 trillion yen in gross transaction value
18 Rakuten announces the ambitious target of 1 trillion yen for gross transaction value, at a time when it has only 36 billion yen gross transaction value. (The target was achieved in Q4 of FY2006.)
2002: Innovation of the Rakuten Ichiba business model
To achieve a further win-win relationship with merchants, Rakuten Ichiba launches a "pay-as-you-go program,” as well as Rakuten Super Points service. Rakuten Ichiba welcomes its 6,000th registered merchant, just 5 years after the service launched.
2003: Enhancement of Group synergy
19 Rakuten Group dramatically expands scope and scale of operations by adding new core businesses.
2004: Entry into Japanese professional baseball
Rakuten enters the arena of professional sports with the formation of the Tohoku Rakuten Golden Eagles, the first new professional Japanese baseball franchise awarded in 50 years, instantly spreading the Rakuten brand nationwide.
2005: Strengthening financial businesses while making the first push outside Japan
Synergy of credit card and e-commerce services generates substantial profits for the Rakuten Group. Rakuten expands overseas for the first time by acquiring U.S.-based LinkShare Corporation (currently Rakten Marketing LLC).
2006: Vision of the Rakuten Ecosystem
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Fig.2.8: Concept of the Rakuten Ecosystem Rakuten announces its vision for a "Rakuten Ecosystem" that encourages users to enjoy multiple services offered by the Rakuten Group, a one-of-a- kind member-based business model.
2007: Further investment in human resources
Rakuten deepens its commitment to investing in human resources over the following 10 years, reflecting its belief that employee development is essential for Rakuten's growth.
2008: First e-commerce expansion overseas
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2009: Strengthening the Rakuten Ecosystem
Rakuten further strengthens the Rakuten Ecosystem by expanding its financial services, such as banking and e-money.
2010: Transforming into a truly global company
Rakuten accelerates its global business, shifting from a Japan-based venture to a global internet services company.
22 2011: Rakuten Ichiba exceeds 1 trillion yen in gross transaction value
Fig.2.13: Rakuten Ichiba gross transaction value
After 14 years, Rakuten Ichiba achieves over 1 trillion yen in gross transaction value and 38,000 online merchants. Rakuten intensifies membership-based e- commerce business worldwide.
2012: Entering the eBook business and the official start of "Englishnization"
Fig. 2.14: Rakuten enters the eBook market Rakuten enters the eBook business by acquiring Kobo Inc. (currently Rakuten Kobo Inc.) in Canada and launching the kobo eBook service in
23 Japan. Englishnization initiatives accelerate the smooth integration of group companies worldwide.
Rakuten Ichiba passes 100,000,000 product SKUs.
2013: Rakuten Eagles achieves their first ever Japan Series Championship. Rakuten, Inc. is listed on the First Section of the Tokyo Stock Exchange.
2014: Strengthening telecommunications and O2O Services
24 Fig.2.17: With its acquisition of Viber and the launch of low-cost calling service "Rakuten
Mobile," Rakuten strengthens its telecommunications and communications services. Rakuten launches various new services including O2O services. Rakuten expands its global gross transaction value, adding next generation shopping mall Ebates.
2015: Strengthening sports and culture businesses. Expanding overseas financial services
Fig.2.18: Rakuten strengthens sports and culture businesses by adding Vissel Kobe to the Rakuten Group.
Rakuten expands overseas financial services, starts to issue "Taiwan Rakuten Card."
2016: Developing new businesses, promoting diversity
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Fig.2.19: Rakuten further explores new business models, such as a C2C marketplace and an open e-commerce platform, while also conducting a trial drone delivery service.
2017: Building Rakuten brand overseas through global partnership
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Rakuten launches its global partnership with FC Barcelona, one of the most iconic and beloved football clubs in the world. Rakuten strengthens the Rakuten globally through brand unification. Total number of Rakuten Super Points awarded exceeds 1 trillion.
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CHAPTER-4 Data Analysis and Interpretation
Problem statement:
Static text translations always need application redeployment because of current implementation .
BU/PDM whenever they wanted to make any changes to the static text, they need to contact developers , and wait for the next release to reflect the changes, which is time consuming.
Developers need to redeploy the application to reflect the simple changes in the translations, which is time consuming and they need to plan for the releases.
The users who are facing it are:
1. Business users and developers, who are managing multi language applications.
Solution/Idea:
Idea here is to solve the problem by managing all the static text translations in an application and serve the translations through API so that any changes to translations could be reflected immediately and avoid redeployment of target application.
28 We are providing a custom based User Interface , Using which BU/PDM can easily update or make any changes in the static texts by themselves, without waiting for the developers and for the release.
Developers no need to worry anymore about the redeployment and release planning for static text changes.
Also using this custom application we can serve static text translations for multiple target applications.
Minimum Variable Product
29 Roles and Responsibilities :
StaTx Admin : Approve/Reject the service request application.
Update User (update role, update service applicable).
Remove user.
StaTx User : Apply for the service to manage translations with specific role.
Content Viewer : View Page/Email.
View messages.
Search messages.
Export.
Content Editor : View Page/Email.
View messages.
Search messages.
Add new Page/Email.
Add new Message.
Update Message.
Delete Message.
Update key.
Update Page/ Email title
Import.
Export.
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Content Approver : Check the approval content.
Approve the content.
Reject the content.
Service Admin : Language setup.
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CHAPTER-5 Findings, Suggestions and Conclusion
Findings and Suggestions
To dramatically improve the capabilities to invent, develop and produce new products, while increasing customer value, is key to sustain and increase competitiveness of companies. Grounded in knowledge theories, a model of new product development performance in relation to critical knowledge components has been developed based on a literature review.
Based on survey results from Rakuten India, current practices relative to knowledge components have been identified. To generalize from these initial findings, and to give advice about practical application, there seems to be a pattern that product development team members relate willingness to explore new and innovative ideas and structural knowledge processes, owned by dedicated resources, to performance criteria's covering quality, time and cost.
It is interesting to note that only statements from the transformation phase of the four-stage learning circle that is represented by significant relationships to performance indicators. Thus, how the respondents perceive the phases of identification, integration and diffusion are likely to be independent of perceived performance at both micro and macro level in the organization.
One reasoning for this result is that we tend to be more conscious about the later stages of learning, when we intend to realize our insights into tangible outputs.
32 We will not, based on these findings, reject the importance of accomplishing the learning cycle, but we will advise to be more aware of the process of upscaling information to valuable and useful knowledge.
In practical terms this means how we manage to evaluate risk aspects and knowledge gaps in the early stages of product development, and being capable of systematically involve and develop the right competence, create a common and shared understanding and to execute based on facts.
For further research, the authors will increase the population to strengthen the data set and to conduct comparative analyses across borders and industries. The generic model will also be reviewed. Acknowledgement is given to the Norwegian Research Council supported project VALUE that made this study possible.
CONCLUSION
The success and survival of new product is possible only if quality is harmonized with the identified needs on the target market, in the given time and the business environment.
Product development includes procedures that idea selected for the products manufacturing in a given time and the business environment, transform into a model product, and then after numerous analysis, harmonization and quality testing, lead to the development, definition and realization of technological
33 processes of manufacturing and marketing of the new product on target market.
During new product development, testing, correction and product quality parameters harmonization were successfully completed by modelling the quantity of ingredients and food additives, until reaching the aim, a defined level of the sensory quality of the gel with specific purpose.
The new product, a gel with thermo-reversible gelling properties, intended for use in industrial conditions, may be interesting also as a product for domestic making cakes and deserts, because of its ease use and specific quality.
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