Technology Ventures- Business Plan
LiveWalls
Segment: Mobile Entertainment
Members:• Rishabh Bhandari• Shailabh Kothari• Yudhajeet Banerjee• Anish Sangvi• P Tom Jose• Arpit Agarwal• Anand Gattani
Agenda
• Market Scope
• Survey results
• What is LiveWalls?
• How does it Work?
• Target Segments and Product Offerings
• Market Entry and Positioning
• Pricing Strategy
• Revenue Model
• Financial Overview
• Implementation Strategy
• Challenges
• Scalability
• Contingency
Survey: Mobile Entertainment Needs/ Opportunities
Generic Findings
• Users appreciate content directly placed on the idle screen (82%)
• Peak interaction with application when user would be in transit
• Free service in exchange for advertising isn’t enough. Users want valuable advertising
1 The higher the score, the more that offering is preferred.
Adolescents(below 18 yrs)
Achievers(above 35 yrs)
Funstars(between 18 to 35 yrs)
Achievers
Survey findings- Key Target Segments
Games
Sports
Concept Score: 76%Idle Screen: PC/console game wallpapersGo button: Mobile game downloads/ themes
Concept Score: 72% Idle Screen: Cricket wallpapersGo button: Live match videos/ Score updates/ Player updates
Technology Literacy: Mid Budget: Low
Age group: <18 years
High interaction with application
Concept Score: 82%Idle Screen: Artist WallpapersGo button: Audio Tracks/ Ringtones/ Artist Updates
Music
SportsConcept Score: 72% Idle Screen: Cricket wallpapersGo button: Live match videos/ Score updates/ Player updates
Technology Literacy: High Budget: Moderate
Age group: 18-35 years
Active on social networksFu
nst
ars
World News
Concept Score: 86%Idle Screen: Current event wallpapersGo button: Newsfeed/ blogs
StocksConcept Score: 76%Idle Screen: Ticker ChartsGo button: Research Reports/ Financial Planning/ Tax Planning
Technology Literacy: High Budget: High
Age group: Above 35 years
Aware of preferences
Ach
ievers
Ad
oles
cen
ts
What is LiveWalls?
LiveWalls activated: Screen 1
Clickable Ticker Advertisements
Sample specimen on browser by clicking advertisement ticker
• Interactive media application•Clickable ‘Go!’•FREE!•Clickable advertisements
How will LiveWalls work?
Specifications of the Application
• Intent receiver application• Preference selection and storing
data
SubscriberServer
Platform Enabler
Portal Aggregator Content Provider
Advertisers
Go!
Ticker clicked
On Subscriber’s response
Service Provider
Product Offerings
Videos
World News
Stocks
Urban Areas Rural Areas(Phase II)
Mandi LiveRegional NewsMusic WallpapersSports
Education
Games Astrology Humour
Religion
Greetings
Tourism
Cross Segmental
•Potential market•Specific Product
Offerings like Mandi Live•Restrained by monetary
constraints•Low IT and technology
literacy•Regional language bias
present
•High-involvement product users•Technology friendly•Infrastructure supports high speed internet
•Not restrained by monetary constraints relative to rural areas
Funstars Business Adolescents
Pricing Strategy
Classifieds
• Reach: High
• Visibility: Low
• Charges: ` 2360 per line
• Content: Random
• Stickiness: NA
TV Advts.
• Reach: Moderate
• Visibility: High
• Charges: `5,00,000 /10s
• Content: Random
• Stickiness: NA
Internet Advts.
• Reach: Moderate
• Visibility: High
• Charges: Variable
• Content: User-preferred
• Stickiness: NA
Tickers
• Reach: High (Mobile Users)
• Visibility: High (Wallpaper)
• Charges: ` 0.0325 per 30 min
• Content: User-preferred
• Stickiness: Very High (Can’t be changed for 30 mins)
Subscribers VAS is costly, Never try it Psychological pricing – FREE Higher penetration
One Strategy, Multiple BenefitsAdvertisers Cost plus pricing Service Provider’s margin 30% Clickable advertisement
Revenue Model
ContentAggregator 1
ContentAggregator 2
ContentAggregator N
Revenue Share in Downloads:• Content Providers –
20%• Content Aggregators
-45%• Platform Enablers –
15%• Service Provider –
20% (slide 12)
The main source of revenue for Service Provider is Clickable Advertisements.Charges per ticker for 30 mins: ` .0325 per mobile Subscribers
Advertisers Advertisers
Platform Enablers
Content Providers
Service Provider
Implementation Strategy (1/2)
Free application download for existing subscribers from Service Provider Live! portal Burning
application right on the SIM card
Promoting the concept using cell broadcasts (negligible cost to Service Provider) for existing customers
Collaborating with low cost (` 1000- ` 1900) multimedia handset manufacturers to make LiveWalls as a preloaded application.
Cell Broadcasts
Free Application
Low-Cost Handset Makers
Congestion Issues
• PoI, TCH, SDCCH, Call drop rates are currently breaching the benchmark.
• Sending updates simultaneously to millions will add to the congestion problems.
How do we reach the masses?
Our Suggestions
• Group the users based on interest areas.
• Send updates every 5 seconds to a separate set of subscribers (One group will have around 3000-6000 users)
• If possible, avoid updates when the user is on call.
Implementation Strategy (2/2)
Commencement of Design of the architecture
Development of application
Testing the applicationPartnering with the Content ProvidersSelecting the Aggregators
Fixing Bugs / Re-workAggressive Marketing Campaign
April 30, 2011
June 21, 2011
May 21, 2011
July 7, 2011
July 25, 2011
Launch!3G
At the earliest, when can we reach them?
Challenges
Smaller screen sizeOne full ticker/Wallpaper sized advertisements after call termination
RoamingAutomatic switch off during roaming and switch on when subscriber back into home network
Different aspect ratios for Phones
LiveWalls application will have standard OS and dimension specifications like 176x208, 480x320, 320x480, 640x360,
Billing advertisersHaving fixed rent plus variable using Cost per Action (CPA) or Cost per Click (CPC) models
Personal WallpapersTie-up with social networking sites like Facebook, Orkut, MySpace
Potential Risks Proposed Mitigation Techniques
Summary
Parameters Current basket of VAS LiveWalls
Cost to End consumer Average ` 25/- Free
Cost to the Operator Maintenance costsOne-time cost to develop the application & maintenance costs
Revenue Model Subscribers are heavily charged A win-win situation for all the entities
Reach All the phones All GPRS enabled phones
Ease of usage Relatively complex Easy
PotentialNot high. At current costs, penetration is still insignificant
Being a free service and a strong "push" strategy, potential is High.
Thank You
Annexure - Questionnaire
Number of Respondents: 200
Location: MumbaiMedium: Electronic forms, Direct conversationSoftware used: SPSS 17.0 and Microsoft Excel 2010
Segment: Ranking of Product Offerings:
Rank from 1-10 (10 being highest) in order of preference for the following lines of products:
Sports Education Wallpaper Religion Greetings Astrology Music humour Games Videos Tourism Stocks News
Segment: Identifying Customer Segments:
When would you use the application to browse the internet?
Boredom Relief Entertainment Curiosity Information
How often do you change the wallpaper on the idle screen of your phone?
More than 3 times a day 2-3 times Once a day Once a week Others __________
Would you accept the service if generic advertisements (as displayed in fig 1.1) are present on the idle screen?
Would you accept the service if your preference specific advertisements (as displayed in fig 1.1) are present on the idle screen?
How often do you use internet on your phone?
More than 3 times a day 2-3 times Once a day Once a week Others __________
How often do you download wallpapers on your mobile phone?
More than 3 times a day 2-3 times Once a day Once a week Others __________
How often do you download ringtones on your mobile phone?
More than 3 times a day 2-3 times Once a day Once a week Others __________
How often do you download videos on your mobile phone?
More than 3 times a day 2-3 times Once a day Once a week Others __________
List the most important product line as per your interests among the items listed in figure 1.1.
_____
What would you want as the service offered for the idle screen?
What would you want as the service offered for the “go” button?