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Your one-stop platform to learn everything about startups. Join the buildd community & start learning 1-new startup lesson everyday

Join us →urlgeni.us/join-builddJoined November 2021

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buildd

@_buildd

Dec 1, 2021

Our startup has grown from $1M to $3M revenue in 7 months — major driver in marketing was SEO. We absolutely love it, yet, it intimidates so many! So, in 9 tweets, we'll explain SEO using the analogy of a LIBRARY - guarantee you'll understand it like never before :) Thread 🧵

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To find a startup idea, stop thinking of potential ideas and start observing problems around you.

buildd

@_buildd

22h

To find a startup idea, stop thinking of potential ideas and start observing problems around you.

buildd

@_buildd

Jan 28

Never been a better time than now to buildd a startup. With a laptop & internet, you can: 1. Create a website cheaply 2. Market it for free on social media 3. Drive free SEO traffic 4. Find customers you've never met Only a few decades back, this would be pure nonsense talk 😃

buildd

@_buildd

Jan 27

Our $3 million startup ran on a $60/month NoCode stack. Yes. ZERO Code. No developers. Just $60 or 5000 rupees per month. Building your dream startup is not costly anymore and you can do it even if you do NOT know how to code. Watch the video to know how we did it! 👇

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buildd.co

The IKEA Food Effect: How a Swedish restaurant made IKEA even more successful

IKEA made $2.5B selling food in their physical stores. Here's how selling food drives furniture sales for IKEA!

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buildd

@_buildd

Jan 26

IKEA’s founder says, “Hungry people buy less”. So, IKEA started selling food to keep people hooked at the stores! Today, - 30% of people visit IKEA only for food and, - IKEA food makes ~$2.5 billion in revenue! Learn IKEA’s genius marketing strategy for your business

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buildd

@_buildd

Jan 26

IKEA’s restaurants are an integral part of its business and are here to stay. Whether the company takes it to the next level of its promised potential – we will have to wait and watch.

IKEA's external innovation lab, Space IO, is in the process of creating healthy, plant-based and sustainable food options – “fast food of the future”. But, this is limited to culinary research and is not on IKEA’s menu. At least for now.

4/ Where is IKEA going with this? The roaring success of the food business prompted IKEA to try several standalone pop-ups in 2017, in major cities like London, Paris, and Oslo. However, in 2018, IKEA said that no long-term decision was taken on this matter. (contd.)

Consider these examples IKEA ⇒ Whole English breakfast Price ⇒ $4.99 Macdonald's ⇒ Big Mac meal Price ⇒ $5.99 In IKEA Hyderabad, 2 pieces of samosa ⇒ Rs 30 Vegetable biryani ⇒ Rs 150 That's half the usual price for these items even at a pocket-friendly restaurant.

Of course, many items on the menu are customized as per the demographics of the store. For instance, you can eat spiced chicken curry and rice at the Hyderabad store. On top of this, IKEA's food is very easy-on-the-wallet and tasty! (contd.)

But, about half of the items on IKEA's menu are Scandinavian. IKEA food rose to its stardom for its meatballs, lingonberry jam, and salmon. It is estimated that IKEA sells around one billion meatballs per year! (contd.)

3/ But, what's so special about IKEA's food? IKEA opened its first self-service cafeteria in 1958 with only coffee and cold dishes. Since then it serves not just hot snacks and a la carte dishes but also offers packaged, frozen and refrigerated dishes & beverages. (contd.)

B) 20% ⇒ 630,000 x 20% x 5000 = INR 63 crores % revenue = 63 / 566 = 11.1% C) 30% ⇒ 630,000 x 30% x 5000 = INR 94.5 crores % revenue = 94.5 / 566 = 16.7% So, IKEA’s food business is able to drive ~5-15% of its furniture sales!

3. Let's consider 3 scenarios where 10%, 20% and 30% of visitors who came to eat food at IKEA end up buying furniture. So furniture sales = A) 10% ⇒ 630,000 x 10% x 5000 = INR 31.5 crores % revenue = 31.5 / 566 = 5.6% (contd.)

1. Let's say the average order value (AOV) for furniture at IKEA is INR 5000. We’ve taken a conservative assumption based on IKEA’s competitor — Pepperfry. It has an AOV of Online = INR 7000 Offline = INR 32000 2. IKEA's Hyderabad store revenue = INR 566 Cr in 2019-20. (contd)

So, out of the 775 million visitors to all IKEA stores in 2021, 775 x 30% = ~233 million people primarily came to eat. But, how many of these people who primarily come to eat also buy furniture? Well, let's figure it out. (contd.)

5. Now, the IKEA Hyderabad store had ~2 million visitors in 2019-20. So, 630,000/2,000,000 x 100 = ~32% of visitors came to the store for food! In fact, IKEA learned a while back that ~30% of their visitors across the world come to the stores to primarily get food. (contd.)

3. So, the total number of daily visitors to the restaurants = # of hours x # of seats filled = 3 x 400 + 3 x 200 = 1800 4. Assuming the restaurant runs for 350 days in a year (leaving out national holidays) # of visitors annually = 1800 x 350 = 630,000 (contd.)

1. IKEA Hyderabad has: Seats ⇒ 1000 Operating hours ⇒ 9:30 AM to 8:30 PM = 11 hours 2. Let's conservatively assume that, the restaurant has negligible rush for 5 hours and peak and normal rush for 3 hours each. % seats filled Peak rush ⇒ 40% Normal rush ⇒ 20% (contd.)

2/ What's the impact of the food business on IKEA's furniture sales? Example ⇒ IKEA's Hyderabad restaurant and store First, let's find out the number of visitors who come to IKEA primarily to eat food. (contd.)

Now, these food stores were not intended to be profit centres. The idea was to lure in customers with low-priced, tasty meals that would in turn result in 1. More number of visitors, and 2. Extend the time the shoppers spend in the store leading to big-ticket purchases.

So, the initial idea was to provide food in the store itself, so people would hang around longer without having to go outside for a snack. IKEA's founder, Ingvar Kamprad, very succinctly makes the point, "Hungry customers buy less". (contd.)

IKEA's food business wasn't a random fluke, but a well-thought-out strategy to drive furniture sales. You see, IKEA stores are HUGE. So, they are usually located in the city outskirts, far from where regular restaurants are located. (contd.)

1/ Does IKEA really sell a lot of food? Yes! IKEA's food business across various bistros, cafes, and restaurants makes a whopping ~$2.5B in sales annually! That's 6% of their total revenue, which has been growing at 8% since 2016. But, why does IKEA even sell food? (contd.)

Structure: 1. Does IKEA really sell a lot of food? 2. So, what's the impact of the food business on IKEA's furniture sales? 3. What's so special about IKEA's food? 4. Finally, where is IKEA going with this move?

Amit Jain is the new SHARK in town! CarDekho, his online auto startup, is worth $1.2B and made Rs 1597 Cr in revenue. 52% users come to CarDekho via Google ⇒ 32.2M people every month 🤯 Let’s learn how this shark used SEO marketing to catch users in millions 🧵

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buildd.co

How SHARK Amit Jain gets 32.2M users every month to CarDekho via SEO?!

CarDekho is $1.2 billion dollar company that makes Rs. 1597 Cr in revenue! But, how did this internet startup NAIL the SEO channel to get 32.2M users?

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buildd

@_buildd

Jan 25

Amit Jain is the new SHARK in town! CarDekho, his online auto startup, is worth $1.2B and made Rs 1597 Cr in revenue. 52% users come to CarDekho via Google ⇒ 32.2M people every month

Let’s learn how this shark used SEO marketing to catch users in millions

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buildd

@_buildd

Jan 25

4. Finally, through the calculator pages, CarDekho sells its loan and insurance services, covering all 4 important segments of its business. These pages basically form different entry points that drive CarDekho's business and capture mutually exclusive segments of the user base.

3. Also, all these pages are internally linked. So, the users can easily flow from high-volume pages to high-conversion pages. That means users can flow from car-model pages to used car pages that make the most amount of money to CarDekho. (contd.)

2) Now, to make commissions from selling new cars, you want to push the user to make a purchase. For that, specific sub-pages under car-model pages that give pricing info, mileage info, specifications and the compare type pages help. (contd.)

5/ How is this good for business? Through these 4 strategies, CarDekho grabs users with specific intent and sells them their specific services to make money. 1. Majority of its users come through the car model page. They immediately make ad revenue through these pages. (contd)

💡 Takeaways 1. Google's first priority is to fulfill user intent. So, understand the intent of your target keywords before you jump to create the pages. 2. Use programmatic SEO and buildd a simple tool to easily capture traffic from tool-based keywords in your niche.

💡 Takeaway Internal linking helps immensely to let the SEO juice flow from high-authority pages to other pages on your website. D) Calculator Pages Another entry point to CarDekho is their EMI calculator pages. It ranks for keywords like "car emi calculator". (contd.)

CarDekho has a simple tool that programmatically compares 2 or more car models to each other. Example: Hyundai's Creta VS Toyota's Hyryder It also cleverly internal links to other popular model comparisons, so the traffic flows from one page to another. (contd.)

C) Capture the comparison keywords Capturing comparison-type keywords is a very clever SEO strategy. It not only helps users but also captures people with high purchase intent who are looking to buy a car but are confused between a few models. (contd.)

Example Keywords ⇒ used petrol cars URL slug ⇒ /used-petrol+cars+in+mumbai Keywords ⇒ used automatic type cars URL slug ⇒ /used-automatic+cars+in+mumbai 💡 Takeaway To target increasingly specific keywords, make sure your pages and URLs are optimized for that keyword.

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