About Livspace :

Core Value Proposition:

Core Values 

Livspace provides hassle free interior designing services for both new homes and renovation projects. Its main core value propositions are-

• Hassle free ( No material knowledge required, no going to market, no vendor coordination etc )
• Personalized ( Build your own designs with the help of interior designer )
• High Quality solution ( All new tech used, Anti bubble, aquabloc, durabuild cabinets )
• India’s only automated modular design to manufacturing to installation process (End to end)

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Tagline & Brand Pillars:

• Convenience
• Peace of Mind
• Design
• Quality Insurance
• tagline - Hassle-free dream home interiors for any budget

Their Online Presence :

Instagram Account 427K

Youtube Account 152K

X Account 3.8K

Pinterest 228K

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Offline Presence

51 Experience Centers (Get feel of products, material and finish options, initial design consultation )

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Main Products

1. Modular Interiors (Livspace Select )
2. Full Home Interiors (Livspace Vesta )
3. Luxurious Interiors (Vinciago)
4. Commercial Projects

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In this Project we will only be focussing on residential projects.

Service Flow:

​Product Flow ( For Select )

Phase 1: Booking

Phase 2 : Design Phase

Phase 3 : Manufacturing and Installation

Phase 4 : Move-in

Product Flow (For vesta)

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Summary of Service Flow 😀

1. Initial Form filling -> Rep reaches out -> You visit Experience Center and meet with the designer
2. Share House Video and pictures w designers + pinterest reference pictures on Whatsapp + floor plan
3. They give an initial design presentation along with the quote -> Yes, make the booking (pay 5%/10%)
4. Site measurement -> design meetings (3-4) -> 3-D rendered proposals -> Quotes -> Select and pay 40%/50% of the quote
5. Manufacturing at factory starts, meanwhile civil work onsite starts -> get weekly reports on email -> get a operations team, project manager along with designers team (Main POC is project manager) -> Civil work on site completes -> pay rest of the amount 50% -> furniture gets dispatched and then installed
6. Move-in

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Product Flow:

1. User creates an account
2. Navigate to Profile section where they can see the Project timelines
3. There is no journey specific flow on App/Website - its done externally, hence heavy focus on Service flow
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Competitor Analysis:

After going through major keyword analysis, Reading reviews, checking interior designing based campaigns, following are the major Competitors (Detailed Analysis have been shared later under Organic section):

1. BeautifulHomes
2. Homelane
3. DesignCafe
4. BonitoDesign

User Analysis:

ICP Selection Criteria:

• Interior Designing using Livspace is more on “want” than “need”
• The company’s internal data shows that the majority of its customers are new homeowners and, hence, they are undertaking home interiors for the first time. In the case of choosing the wrong service providers, the toll on daily life is high for all the family members, as they have to keep adjusting to poor design.
• Here its a one time use product, we need an ICP who has high adoption rate (someone looking for end to end management), urgency( event upcoming/family need), High Appetite to Pay( as its a "want" product with high ticket size), decent TAM

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*All 5 ICPs are selected after seeing the fit with selection criteria

Scope of Acquisition/Market Sizing

Total Addressable Market

Value of housing sales in India: INR 3.47 lakh crores

Preferences of customers(House value wise):

• 45 - 90 lakh: 33%
• 90 lakh - 1.5 crore: 26%
• >1.5cr: 20%

Number of housing units sold in India: 380,000 in FY23

Three profiles for House value vs Interior designing Ticket size(value of project):

• 45-90 lakh -> ticket size 10 - 15 lakh
• 90 lakh - 1.5 crore -> ticket size 20-30 lakh
• >1.5 crore -> ticket size: 40-50 lakh

TAM: (33% of 380000) * 10 + (26% of 380000) * 20 + (20% of 380000) * 40 = 7.52 billion USD

Source 1

Source 2

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Serviceable addressable market

According to reports: ~310000 of 380000 homes were sold in top 7 cities, which is ~82%. Livspace's presence is in 37 cities including these top cities. We will now consider only these top 7 cities for a conservative estimate of the SAM.

This comes out to be 82% of TAM : 6.2 billion USD

Market Share

Using search engine traffic share as a pseudo metric for market share, Livspace has a market share of around 55%.

Using these number SOM: 55% of SAM: 3.4 billion USD​

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Insights :

1. Market share is 55% - Still a lot of scope for Acquisition
2. City Expansion to Tier - 2,3 can help with rest of 18% of sales

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User Acquisition

​Stage of Product : Mature Stage

Current Acquisition Channels VS Target ICPs

Table

Livspace has been investing enormously in creating its brand image by Influencer Marketing and Offline experience center which has resulted in increased reach, visibility and credibility (Volume tackled)

But Livspace need to invest more energy into getting quality leads in good volumes for better conversion rates. Plus there are many ICPs which have been missed by Livspace who can be quick convertible users( have detailed on them below)

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Identified Whitespaces <> Missing ICPs

• Given Interiors Industry is strongly driven by Trust, Referrals by familiar people, Word of mouth, credibility, We need to focus on improving the Partner and Referral Network - which are the strong touch-points of potential users

• A Home is one of the biggest decision of life in Indian Society - they are proud of its existence, We need to focus on creating content to celebrate that 'Dream Home'
• With the advent of Virtual Technology and Augmented Technology, the opportunity to provide immersive experience has become viable - Livspace should garb this opportunity to set themselves as Tech Innovators, Simultaneously improving conversion rates and lead time
• Out of the Listed ICPs above - Following two ICPs have not been targeted well, and they identify as with good product market fit -

ICP 1 : Expectant Mothers looking to renovate their homes for the upcoming baby

ICP 2: Young Couple soon to be Married/just married, who bought a new house or looking to renovate existing one to accommodate a new member

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What our Motive here?

1. To Double our efforts in channels which have been giving good ROI
2. To introduce improvement in existing channels which have the potential of giving great ROIs

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Channel Decision Framework

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Note : We will be procedding with Channel strategies higjlighted in green, details below

Channel Wise Details

Channels by User Quality -

Objective : To scale volume, keeping CAC constant or decreasing CAC Value

Partner Programs

Current Status : Currently Livspace has a partner program with design studios or freelance designers - thus calling the partners as ‘livpreneurs’ - these designers work for livspace to have consistent leads and better network of clients, Livspace on the other hand is able to access experienced designers and truncate some competition

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Recommendations for more Partner Programs: 

B2B Partner Program with Builders

Livspace can partner with Builders like Lodha, Raheja, Sobha etc which would involve : 

(Platform Currency : Real Money)

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1. Builders Sharing Qualified leads (when the new house deal is finalised ) in return of fixed commission if the lead gets converted :  

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2. Sample Flats Designed by Livspace & Livspace will be offering a discount of 5% on the final quote ( For eg if the interiors were done for 40 lakhs, the discount would be 2 lakhs ) -> 

Impact : This would help in creating a strong visibility of livspace and the opportunity to see the first hand work by livspace - thus breaking experience barrier and establishing trust.

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3. Kitchen Interiors to be done by Livspace (Modular Kitchen) as a part of the basic Flat given to the end client (In this situation, Client has the flexibility of upgrading the kitchen materials by paying the extra cost ). Also, Livspace would be taking the charge for basic Modular kitchen from builder, final price details are negotiable on the basis of units to be designed.

Impact : Client has seen the livspace work in their own house, hence they have a greater tendency to opt for Livspace whenever they go for full house interiors (WIN WIN For all stakeholders involved)

Process Flow: 

Step 1 : Builder shares the referral mail/message with his unique partner ID ->

Step 2: The user will be taken to a landing page to book for consultation call, on the same page - Referrer ID and Name will be written ->

Step 3: Referrer will get the first message when the booking gets done -> Track the status of the reward on dashboard

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Overall Impact (Quick calc to show impact of getting quality leads and keeping CAC under control): 

Level A : In a society of 300 units, if a builder is able to successfully refer 30 people ( Livspace Avg conversion rate 10% - taken by connecting with livspace designers), then livspace can have a revenue opportunity of 3.3Cr (30 * 11 lakh* ) at a cost of 6 lakhs

*Avg order value of livspace customer is 10-12 lakhs

Level B : Due to existing presence of Livspace Kitchen designs, 10% of the remaining 270 units can opt for livspace) -       Another revenue opportunity for 3 Cr+

Level C : Impact of seeing the first hand work of Livspace in Sample flat creates extra credibility, Hence generating another enhanced conversion rate.

In this example Livspace cost of acquisition was 8 lakhs, revenue value generated was around 6Cr+, 50+ new clients, so CAC = 13K, LTV = 6.6Cr, CAC : LTV = 1:10000 => Quite Positive

Pilot Experiment

Phase 1 : Select one Metro city with maximum user base, Select two types of 2-4 projects ( Premium and Moderate Lifestyle) whose possession is due in 6-8 months. 

Metrics to track : 

1. Conversion rate of Referred leads by Builders
2. Conversion Rate of Flats whose Kitchen was done by Livspace

Phase 2: Scaling the type of project switch better conversion rates, expanding to other Metro cities

Metrics to track : 

1. Conversion rate of Referred leads by Builders
2. Conversion Rate of Flats whose Kitchen was done by Livspace
3. CAC, LTV of the referred users

Phase 3 : Expansion to T- 1,2 Cities for 2-4 projects

Metrics : Conversion rates of each type of lifestyle leads(premium vs moderate lifestyle) referred by builder, CAC, LTV, Conversion Rate of Flats whose  Kitchen was done by Livspace

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B2B Design Partner Program with Airbnb Stylist ( sister variant of current ongoing partner program)

Context : Airbnb Stylist are the people who help with interior designing of Airbnbs

It will be part of same category of 'Livpreneurs' program of onboarding Design studios and individual interior designers but the ICP would be Airbnb Owners. This is a fairly low cost acquisItion plan as we have the partner program in place, here we have essentially included a new ICP

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BTL Marketing

This marketing will be focussed on two of our focus ICPs

ICP 1:

ICP 2:

These campaigns have high conversion rates and are less expensive, can easily ride on the already established brand image

BTL Campaign for Expectant Mothers -ICP 1

• Partnership Program with Child Birth Specialist, Gynae Clinics
• Incentive Structure based on the number of converted leads

• First free site visit for the client to understand the child proofing of furniture and other requirements

Pilot Experiment -

• Initial Survey can be floated across people visiting these clinics
• Phase 1: Can start with 5 clinics for residential areas in Metro cities
• Phase 2 : Expansion to T-2,3 Cities

BTL Campaign for Young Couples:

• Partnership program with Wedding Planners, Decor Suppliers
• Incentive structure based on converted leads (Same as the above one)

Pilot Experiment :

1. Initial Cohort to be decided on the places providing maximum footfall per the ICP

Referral Programs

Current System : 

The referral program is designed to provide cash rewards upto Rs 20000 to the referrer in a milestone based model (Image below)

Flow : You need to fill the form and share the contact of the person referred (Say Person A referred Person B) -> Person B receives the call from Livspace representative -> Person A receives the payout on each milestone accomplishment

Our Goal here is to do 2 things-

1. Improve the current referral system for better conversion rates and quality leads
2. Introduce a new category of referral system - Indirect Users (these people might not use livspace directly, they can refer livspace product due to monetary incentives)
3. Lets see how the current system works-

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Step 1: Filling

Step 2: Submission

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Major Issues with this system : 

1. Awareness : 

A.1 App (Android + ios ) - Refer your friend option is not visible

A.2 Website (Desktop + Mobile) - Refer your friend is visible on the main page in the menu bar, but not visible in the project management interface( where the user is spending 99% of their time) - most of the interviewed users were not aware of this option - they were asked by internal team to refer

Not visible in Project timeline interface:

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2. Uncertainty : After you fill the details for the referral, you are shown the confirmation page of a different company and have no idea on what to do next

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3. Too much effort to refer : There is no referral message/link generated on your end which you can share with your social circle. You are required to put details of the referred person and then only they will receive a call (no email or message whatsoever confirming that you have referred) -> Here the user might just refer 1-2 people at max as there is a lot of effort of filling details and keeping track
4. 1. No messaging apps or email integrations to refer the link/messages easily.
   2. No shareable content available to show the success of the user’s project (which is very important component as in interior industry referral is a strong component and people want to see the work from their own eyes to validate)
   3. You are also not sure of the demand in your circle for interior designing- no recommendation system to help you with people to refer to
5. Chaotic Tracking : don't have a dashboard to track your referrals , no centralized system to keep the status of each referral at one place
6. Undefined incentives : No defined incentive to the person being referred - only the promise of getting some ‘discount’

Revamped Referral System :

1. How : Improve Discoverability - Improve ‘Refer a friend’ visibility on both app and website
2. When : Introduce the rating + feedback system - a touchpoint which can be a good indicator that ‘User’ is happy or sad
3. When : Happy Users can then be contacted by Internal teams to share to refer to their friends
4. How : In Addition to forms, Referral messages should be generated which can be shared across large circle, eliminating the need to fill long forms if the user wants to share on their social media.
5. Easy How : On the similar lines of creating referral messages, ‘messaging integrations’ should be done on the same page - whatsapp, instagram, facebook, Gmail - for reducing the time between deciding to share and routing it through the channels
6. Track : New Referral tracking dashboard should be introduced to keep track of all referrals in terms - Status of each referral, status of payout of each converted referral, List of recommended people to whom you can refer (list prepared by analyzing the search queries of people connected with you)
7. When to Definite Yes : AHA Moment : Good quality Home Tour Video of the user can be used as a good shareable content that can be shared on social media and referral link can be put in the Caption or description section - celebrate together!
8. Why : Define a discount system on the basis of project value for the person who got referred-

New Category : Indirect Users

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In addition to this referral system, we can define referral system for people who are not the direct users but they are a strong touch-points of the direct users like Real estate brokers (who can be reached out as a part of BTL Marketing (Below the line)

System Flow

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​Metrics to track​

1. CAC
2. Number of referrals vs Project Value ( to check if we need to revise incentive program)
3. Reach of the shareable content and attribution data of the leads coming via it
4. Conversion rate of referred leads
5. Share Rate
6. Referral traffic

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Experience Center

Experience Center has emerged as a strong offline acquisition channel for livspace for the last 3 years, they started with 4 experience centers, have now expanded to 50 experience centers in 2024 and have the plan of expanding them to 100 by 2025.

These centers act as a strong user touchpoint to see the first hand designs, Furniture quality, Material options, Consultation experience during their initial Visit to experience center.

 As confirmed by Livspace internal employees, they plan on doubling on the success they have seen with offline experience centers.

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Current Scenario: For a single designers who connects with 15-20 interested clients on a monthly basis during experience center visits, only 1-2 people convert (conversion rate of 13%). For such interested customers, they invest 3-4 days of their bandwidth to prepare initial design presentation free of cost.

Also, after the booking is done, every design proposal goes through 9-10 iterations as the user is yet to get the feel about the planned design.

Issue : Time between initial visit and free design presentation is 4-7 days, Designer bandwidth used for no return (3-4 days). High number of design iterations

Solution : Create Immersive experience for the visitors ( for both first visit and during design discussions) = Integration of Virtual Reality for demonstrating the prototypes

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Hypothesis : Conversion rate of the visitors should increase as they are getting the immersive good quality design experience from Day 1, No of design iterations should decrease as users reach their satisfaction point early when they get 100% interior design feel

Target ICP : Tech savvy Individuals - Technological Innovaters, like using tech integrated services of livspace (mostly of the age 29 -40)

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Pilot Experiment : 

Phase 1 : Run the experiment in 1 experience center with maximum footfall of the age segment 29-40 yrs

Study the conversion rate and lead time for 2 months ( 1month for setting the public narrative of VR experience, 2nd month seeing the output of that narrative)

Phase 2 : Collecting brand recall because of this experiment and understand if this helped in pushing their decision to final go ahead

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On the basis of the success of this experiment, Livspace can further decide if they should be integrating it for all of their use cases + all of their experience centers

Still wondering Why VR integration ? VR tech is already in the market, their integration will not be a costly affair + this will place Livspace as a tech innovator (major differentiator wrt competitors) - So WIN WIN!

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Channels by Volume -

Objective : To improve user quality -> better conversion rates, keeping CAC constant or decreasing CAC Value

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Organic SEO

In organic, lets first look at SEO

First Step 👉🏼 Assessing Livspace’s Domain Authority (DA)

Insights : Livspace DA score is highest wrt to its major competitors, Also its organic traffic is way higher than competitors so we are good here.

Looking at the Backlinks Analysis, other competitors like Design cafe and Homelane have much higher number, so livspace should focus on becoming a source for bloggers and reporters, pushing content loops

SEO Site Audit

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This looks good too, Attaching the full report for detailed solutions.

Semrush-Full_Site_Audit_Report-livspace_com-30th_Mar_2024.pdf

Second Step : Understand/Analyse Keywords used by Livspace, and analyse if weak/missing keywords that could be used in their overall SEO performance

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Improvement Area :

'home decor' has a major search volume but livspace is not in top100, 'home design' is another major keyword where livspace is not in top10. => SEO can be improved on this front.

We are good with Use case topics and interior design keyword.

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Content Loops

Their Online Presence

Instagram Account followers 427K

Youtube Account followers 152K

X Account followers 3.8K

Pinterest followers 228K

We will priortize the first content loop as it creates a strong referral opportunity and sharing of the project success in the community thus creating a bandwagon effect in the users consuming the content shared by the client.

Loop : 

Client Shares the Home Tour Video -> Client social circle discuss about it and shares it further in their circles -> Client’s social circle folks visits livspace website to explore it further and sign up for another project -> The new added client shares the videos of their completed project

• Content Creator: Livspace

Content : House Before & After, Client Interview and Designer intro and nuancesInterior Designing Industry pivots on the strong referral game and they would not leave any opportunity to publish the story of happy customers and creating it for each one of them, thus ensuring that they share their feedback via videos in their social circle. s.

• Content Distributor - UsersUsers would happily share the video in their social circles/ Social media posts for social fame and seeking social validation. This will create a bandwagon effect and the people of the client’s social circle will be tempted to check livspace for their interiors needs - Maybe with the dream of making the video for their house too.
  
• Distribution Channel - User shares + Interior Designer of the projectThe channels could be social media posts/stories or social media messaging tools. The people in the social circle visit Livspace website for more designs ( after crossing the livspace’s credibility barrier) and are tempted to organise the initial design call. The interior designer on the other hand would want to document the happy customers in her work portfolio.

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Paid Ads

Huge Marketing spend ( Most Important Acquisition channel) for livspace. They are spending 15% of the revenue on marketing. They have a huge focus on maintaining their brand image, on the similar lines -> they have partnered with celebs like Virat Kohli and Anushka Sharma to reach not just the masses in Metro & T1 cities but also to expand their visibility in T-2,3 Cities

Currently their major target ICPs are New Homeowners and Renovation projects for People in T-1 cities

Livspace have 4 major brand pillars

•  Convenience
• Peace of Mind
• Design
• Quality Insurance

Two major whitespaces have been identified where users would immediately adopt livspace, have urgency and appetite to pay, have significant SAM

ICP 1 : Expecting Mothers, need to revamp house interiors to accommodate new little members, which is functional and safe for their upcoming children. They dont have much time on their plate for the civil work coordination with vendors, neither good for their mental health. Since the baby is on the way, so they have a set deadline to complete the project. Also, at this stage of life, mostly people have settled and have ample savings to start a new family

ICP 2: Couple Going to get married - They either buy a new house or renovate their existing home to accommodate new family members. Design is also a major focus here for social validation. Although this ICP is on a budget constraint due to other wedding expenses. But they have strong intent to hire players like livspace who can help with interior requirements. Why?- Short on time - need end to end management and implementation help

-Less knowledge of materials at this stage of life, need expert advice

-want trendy designs

-Good quality furniture 

-Have a deadline and sense of urgency to complete before wedding

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Channels Selection : 

ICP 1 Spends a lot of time on instagram(baby shower photographers, reels scrolling for entertainment) and youtube( nutrition advices, how to be a good mom videos etc. ) -> Instagram & Youtube can be a good channel here for Ads

ICP2 Spends a lot of time on instagram(photographer, makeup artist, pre wedding shoots) and youtube( shopping videos, venue videos, decor videos) ->  Instagram & Youtube can be a good channel here for Ads

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Campaign Structure

For both campaigns-

Objective : To increase website traffic, App installs, In store visits

Ad Groups : 

• ICP 1 : Demographic Details:
• • Age: Typically between 25 to 35 years old.
  • Relationship Status: Married or in a committed relationship.
  • Expecting Parents: Anticipating the arrival of their first child.
  • Homeowners: Own or rent a property that requires renovation.
  • Urban Dwellers: Reside in urban areas, including tier 1 cities or suburbs.
  • Middle to Upper Income Level: Capable of investing in home renovations.
• Marketing Pitch:
• • Busy Professionals: Balancing work responsibilities with preparations for parenthood.
  • Health and Safety Conscious: Concerned about creating a safe environment for their growing family.
  • Space Optimizers: Value maximizing space in their home for practicality and functionality.
  • Future-Focused: Seeking long-term solutions that accommodate their evolving needs as a family.
• Devices : Office Desktop, Personal Laptops, Mobile phone (ios & Android), television
• ICP 2 : Demographic Details:
• • Age: Typically between 25 to 35 years old.
  • Relationship Status: Engaged or newly married couples.
  • Education: Likely to have higher education levels.
  • Income Level: Generally have higher disposable incomes.
  • Urban Dwellers: Reside in tier 1 cities such as Mumbai, Delhi, Bangalore, etc.
• Marketing Pitch:
• • Busy Professionals: Juggling work, wedding planning, and personal life, and Value Time and Convenience: Seek efficient solutions to streamline tasks and projects.
  • Tech-Savvy: Comfortable using digital tools and platforms for convenience.
  • Socially Active: Engage in social events, gatherings, and online communities and Aspiring for Luxury: Desire to create a stylish and luxurious living space.
  • Budget-Conscious: Looking for cost-effective renovation solutions that provide value for money.
  • Aspiring Homeowners: Eager to create a home that reflects their personalities and aspirations.

Devices : Office Desktop, Personal Laptops, Mobile phone (ios & Android), television

Example Ad Creatives : 

ICP 1 for Marketing Pitch - Health and Safety Conscious: Concerned about creating a safe environment for their growing family.

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ICP 2: Marketing Pitch - Aspiring Homeowners: Eager to create a home that reflects their personalities and aspirations.

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Metrics to Track:

1. View Rate
2. Impression frequency
3. Views
4. CTR
5. App installs
6. Website traffic
7. In store visits
8. Conversion rate
9. lead time
10. Brand Recall Surveys

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