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?