Professional Documents
Culture Documents
MOBILE APPLICATION
A Feasibility Study
Sylesh N
(Reg. No. 85270048)
Vivek Menon
(Reg. No: 85270050)
Submitted in partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
to the Cochin University of Science and technology
Year-2009
Commercialization of Kerala Search Mobile Application
Chapter 1
the study
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Commercialization of Kerala Search Mobile Application
OBJECTIVES OF STUDY
The study has been carried out with the following broad objectives.
1. To study the feasibility of commercialization of Kerala Search Mobile
Application
2. To suggest strategies to commercialize Kerala Search Mobile
Application.
The study has been carried out with the following specific objectives.
1. What are the values added services used by the respondents?
2. What would the respondents like to search?
3. Whether the respondents have already tried searching through mobile
phones?
4. What are the current searching sources?
5. Do the respondents know about GPRS?
6. Do the respondents have GPRS in their Mobile phones?
7. Have they activated it?
8. For what all purposes are they using GPRS and their spending
pattern?
9. If their mobile operator is providing a search facility will the
respondents subscribe to it?
10. If any other mobile provider is providing such a search facility will
they switch over to that?
11. What is respondents “search mode” preference?
12. How much are they willing to pay for search?
13. What is the respondents travel pattern?
14. Has the respondent ever felt the need to search while traveling?
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Commercialization of Kerala Search Mobile Application
SCOPE OF STUDY
LIMITATIONS OF STUDY
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Commercialization of Kerala Search Mobile Application
Chapter 2
Page 4 of 104
Commercialization of Kerala Search Mobile Application
Start
Analysis of companies
offering similar services
Sampling Technique:
Stratified Sampling
Convenience sampling in
three strata
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Commercialization of Kerala Search Mobile Application
Data collection:
Through Questionnaire
Type of questionnaire:
Structured
Questionnaire
Stage 3. Administering
Questionnaire
Stage 4. Collection,
tabulation, presentation
& analysis of data
Page 6 of 104
Commercialization of Kerala Search Mobile Application
Commercialize
KSMA? Stop
No
Yes
Stage 5.Formulate
strategies to
Commercialize
Suggest Improvements
Stop
Page 7 of 104
Commercialization of Kerala Search Mobile Application
The project study was divided to five stages. The tools and methodology used
for project study is explained as and when they come in the five stages.
Stage 1:
Two rounds of discussions were conducted with Marketing manager,
operations manager & internal project guide to discuss the exact scope of the
project. Due to time constraints we were given directions to confine ourselves
strictly to the commercialization aspect of Kerala Search Mobile Application
(KSMA). An appropriate title to the project study was coined after
consultation with Internal project guide of SMS – “Commercialization of
Kerala Search Mobile application for the first time in Kerala Market – A
feasibility study”.
Stage 2:
This stage consists of analyzing the real pulse of target market.
Since the population from which the sample is to be drawn does not
constitute homogenous group, stratified sampling technique is applied to
obtain a representative sample.
Stratified sampling
Under stratified sampling the population is divided into several sub –
population that are individually more homogenous than the total population
and then we select items from each items from stratum to constitute a
sample. Since each stratum is more homogenous than the total population,
we are able to get more precise estimates fro each stratum and by estimating
more accurately each of the component parts, we get a better estimate of the
whole.
Strata can be formed on the basis of common characteristics of the items to
be put in each stratum.
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Commercialization of Kerala Search Mobile Application
For selection of items for the sample from each stratum convenience sampling
technique can be used.
Convenience sampling
Sometimes called grab or opportunity sampling, this is the method of
choosing items in an unstructured manner from the population frame.
Though almost impossible to treat rigorously, it is the method most
commonly employed in many practical situations. This is due largely to the
fact that when most researchers aim to study the behaviors of human beings,
very rarely does one find an ideal environment for carrying out that research.
It may be that if not for the convenience sample, a particular type of research
could simply not take place. Several important considerations for researchers
using convenience samples include: 1. Are there controls within the research
design or experiment which can serve to lessen the impact of a non-random,
convenience sample whereby ensuring the results will be more representative
of the population? 2. Is there good reason to believe that a particular
convenience sample would or should respond or behave differently than a
random sample from the same population? 3. Is the question being asked by
the research one that can adequately be answered using a convenience
sample?
In social science research, snowball sampling is a similar technique, where
existing study subjects are used to recruit more subjects into the sample.
The whole population was stratified into three strata namely students,
salaried class and business class. Convenience sampling technique is used
for selection of sample from each stratum.
The company wanted the sample size in between 250 – 300. It was decided to
take sample size of 280 (Students: 180, Salaried class: 50, Business class:
50) in consultation with internal project guide. The type of data decided to
collect was primary data and method of collecting data was through
administering close ended structured questionnaire in person.
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Commercialization of Kerala Search Mobile Application
Stage 3:
This stage consists of administering questionnaire. It was decided to take
samples of students from various departments of CUSAT. The salaried class
And business class samples were taken from Vidya Nagar colony and in and
around South & North Kalamessery. Salaried employees and business men
among part time MBA students were also contacted to collect data. It took
around two weeks to complete the “administering of questionnaire” process.
Stage 4:
Data collected through questionnaire were tabulated and converted into
percentage. Representation and analysis of data were done by constructing
bar graphs. Search preferences, Searching sources, GPRS awareness, usage
pattern, Preferred mode of search – GPRS / SMS & Charge, Willingness to
subscribe / switch over mob provider , Travel pattern of target market, Ever
felt the need to search while on the move?, etc were analyzed and we reached
the conclusion that KSMA can be commercialized!!!!
Stage 5:
Strategies to commercialize KSMA were formulated and further improvements
regarding the data base were suggested.
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Commercialization of Kerala Search Mobile Application
Chapter 3
Literature Review
& LBS
Page 11 of 104
Commercialization of Kerala Search Mobile Application
Introduction
The mobile application launched by market solution by promoting YPkerala
falls under the MVAS (Mobile Value Added Service) category. The company
intends to provide the facility in two modes – Through SMS and GPRS.
VAS (Value Added Services) and its market Potential which included
• The importance of VAS
• Market trend for VAS in India
• Challenges and Future of VAS
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Commercialization of Kerala Search Mobile Application
VAS
S (Value
e Added Service
e) & Its Market potentiial
Im
mportanc
ce of VA
AS
Pe
er minute Cellular taariffs (in U
US cents)
14.4
15 11 11.4
4
8.4
10 6.5 6.5
2.5 3
3.5
5
Fro
om the above chartt it is clear that the
e cellular tariffs
t are
e lowest in
n India.
urce: Busine
Sou ess world magazine,
m In
ndustry New
ws, Voice & Data, Zinn
nov Analysis
s
Page 13 of 104
Commercialization of Kerala Search Mobile Application
• India has one of the lowest mobile phone tariffs in the world resulting
in low Average Revenue per User (ARPU)
• The problem is that despite the average use of mobile phones being the
highest at 287 minutes a month, India has an average rate per user
(ARPU) of around $8 compared to global average ARPU of $ 21.
• There was a decline of 7.4% in ARPU in 2005 since 2004 and the trend
is continuing.
• The ARPU would continue to drop by about 5% while tariffs will
decrease further by 15%
Page 14 of 104
Commercialization of Kerala Search Mobile Application
Source: Business world magazine, Industry News, Voice & Data, Zinnov Analysis
The analysis on page ___ showed that 51 % (including SMS) of the sample is
using VAS. The above literature review shows the need of cellular operators to
concentrate more on VAS. It’s also important to know the present market and
growth rate of VAS.
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Commercialization of Kerala Search Mobile Application
According to Venture Intelligence, there were nine deals worth US$ 41 million
in 2007, in the mobile VAS space, and till August 2008, seven deals worth
US$ 91 million have already been finalised. Presently, mobile VAS has a US$
700 million market with a 20 per cent y-o-y growth, which is likely to touch
US$ 3 billion by 2012.
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Commercialization of Kerala Search Mobile Application
Challenges
• Lack of content localization
• Shortage of spectrum
• Slow adoption of GPRS mobiles (only 6.1 mn GPRS users compared to
200 mn overall subs)
Future of VAS
• Location Based Services
• Mobile Music update will increase with better bandwidth
• Local content is on the rise - regional/rural IVR seen as a major
opportunity
• IVR will see large scale adoption, especially in rural areas.
• Mobile E-Mail will primarily be driven by enterprises
With an aanual growth rate of 44% (2007 – 2010), VAS revenues will reach
USD 2,744 mn (926mn $ by 2007).
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Commercialization of Kerala Search Mobile Application
GPR
RS Usag
ge and the grow
wing tren
nd
Mo
obile GPRS search patttern
Matrimonial
11%
E ‐ Learningg Travel
13% 37%
Em
mployement
16%
Others
O
23%
Sou
urce: conten
ntsutr.com; KPMG Con
nsumer Marrket –India report
r
Cha
art No: 11
The
e above chart
c sho
ows that Indian mobile
m users searc
ch for tra
avel relate
ed
info
ormation the mostt. This sh
hows the growing importanc
i ce of a fu
ully fledge
ed
LBS
S system..
A report
r by Mini Ope
era
Min
ni Opera is one off the bes
st and mo
ost widely
y used m
mobile web
b browsers
ava
ailable in the mark
ket today
y. Their la
atest upd
date has been a big
b hit witth
use
ers. Since
e its world
dwide laun
nch in 20
006, more
e than 44 million people
p hav
ve
dow
wnloaded and used
d Opera Mini.
M More
e than 11
1.9 million
n people used
u Operra
Min
ni in Marc
ch 2008.
Opera minii has su
urveyed anonymou
a us traffic
c of morre than 44 millio
on
mulative Opera
cum O Miini users worldwid
de to see where
w mo
obile userrs chose to
Page 18 of 104
Commercialization of Kerala Search Mobile Application
spend their time when using the Web on their mobile devices. The figures
released have India centric data as well, which throws up interesting
numbers and sites.
The data consumption on the mobile phones has seen tremendous growth
with 11.9 million Opera Mini users consuming more than 33 million MB of
data for operators worldwide. This represents an almost 88% growth in last 3
months alone.
As far as Indian users go, nearly half (48.9%) of all traffic visit to social
networks via their mobile phones. Here is the list of top 10 sites in India in
the increasing order of search.
Orkut, Google, Yahoo, Peperonity, Gallery.mobile9.com, Mocospace, 160by2,
Mobango , Itsmy and Indian railways
Inference
• Mobile GPRS market is growing in India, Internet browsing is changing
form computer to mobile phone.
• Indian users search for travel related information the most
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Commercialization of Kerala Search Mobile Application
The concept
Location-based services refer to applications that use knowledge of the
geographical position of a mobile device to provide services based on that
information. Such services include navigation assistance, identification in
case of emergency or disaster relief, social networking through finding
friends, map assistance through locating points of interest etc. Provision of
LBS requires the correct positioning technology, a geographical information
system that maps the areas and a conducive environment in the complex eco-
system that the mobile industry operates in.
Current status
Though India is set to become the second largest wireless network in the
world in April 2008, LBS provision is still in its very nascent stage. The action
in this space began in earnest two years ago, when BSNL signed up with a US
based firm Telenity to provide 14 location based services to its customers.
These services form the set of basic applications available abroad, for
instance,
• Real time fleet and asset management
• Friend finder alerts for subscribers
• Mobile yellow pages
• Tourist information on places of interest
The service was launched in July 2007 and the fleet tracking solution has
picked up an impressive customer base in companies such as Mahindra and
Mahindra, Hindustan Lever, Patel Roadways, Chetak Logistics etc.
At the same time, Airtel launched its Enterprise LBS solution with an Indian
firm, Mobiance, a company that uses a self developed Mobile Station
Localization technology. The location based solutions presented by Mobiance
appear to be more innovative. The services offered include:
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Commercialization of Kerala Search Mobile Application
• Tracking fleet
• Mobile workforce management
• Directing consumers to retail stores
• Enabling brand managers track in real time their field representatives
across rural India
• Providing search and navigation abilities to consumers
• Aiding governance for example by knowledge dissemination in case of
natural disasters or public unrest
Though the range of solutions is wide, there is not much supporting evidence
of adoption of LBS by the large magnitude of subscribers. To some extent this
could be due to lack of awareness amongst the consumers, but it also implies
that application developers need to generate more relevant applications and
these solutions must be marketed more effectively in the public eye. There is
no doubt that LBS have great potential in a country where subscribers are
being added at the rate of 8 million a month.
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Commercialization of Kerala Search Mobile Application
Future potential
India with its billion people forms a formidable consumer market, but it has
several distinguishing characteristics. To begin with, despite the rapid
urbanization, India continues to be a land of villages with more than three
quarters of the population in rural areas. The fact that the life of the majority
of the population continues to revolve around agriculture points to the urgent
need for diversification of occupational structure. The scope for raising
productivity and therefore impact growth is significant – around 90 percent of
the labour force in India works in the unorganized, informal sector and
contributes around 60 percent of the national income.
A successful LBS strategy in the Indian context is one that should, in the
words of Ashutosh Pande, Managing Director, SiRF Technologies, “address
the needs for tens of millions people. In India, this has to be a solution which
can in a short period of time penetrate into each of the 600,000 villages to
make a difference to hundreds of millions of people. It is a solution on a scale
that has perhaps never been thought of before.”
The challenge is daunting but there are significant rewards for raising
efficiency and equity by putting the instruments of growth in the hands of the
common man. With rapidly changing technology, the cell phone has proved
its capability as such an instrument of growth.
The low income of the masses and the preference of prepaid subscription
need not be deterrents anymore. The ad-based revenue model that is being
spearheaded in the West, particularly the Android project, is imminently
suited to the developing world, where calls and messages can be free to the
users or provided for a nominal user fee and supported by advertisement
content. This will serve the twin purpose of marketing to the masses,
products and services that can be tailored to the specific user’s needs. Such
advertisements should ideally be voice based, in local languages pre-selected
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Commercialization of Kerala Search Mobile Application
by the user. Though illiteracy is still a concern in rural areas, IVR technology
is looking to overcome this handicap.
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Commercialization of Kerala Search Mobile Application
Location based advertising will allow better branding and consumer targeting
by consumer firms, who are already attracted to the large rural markets.
Though it is well understood that the scope for providing LBS is immense,
there is a great divide between those who work with technology and those
who know what solutions are needed on the field. The classic case of ITC’s e-
chaupals, for instance, spearheaded a revolution in the way technology was
matched to agriculture’s requirements. Clearly the case for LBS provision
through mobile phones is well established with regard to commercial viability
and practical relevance. While the constraints to providing LBS in India are
put forth in the following section it must be noted that it is just a matter of
time to tie up the loose ends and connect technology to the masses.
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Commercialization of Kerala Search Mobile Application
Chapter 4
Competitor Analysis
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Commercialization of Kerala Search Mobile Application
Competitor Analysis
The details of companies offering services similar to that of ypkerala. com and
some concepts of mobile technology are reviewed here.
DETAILS OF COMPANIES
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Commercialization of Kerala Search Mobile Application
His journey to the service was through music. Madhu Bhaskar, who had
learned music at Swathi Tirunal College, Thiruvananthapuram wanted to
start a music school of his own. While going through the telephone directory
to find out addresses for mailing the brochure of the proposed school, the
idea of Fingertips suddenly occurred to him. Sreekala, who came to type the
addresses for the brochure on contract basis for 1 month, later became his
wife.
Page 27 of 104
Commercialization of Kerala Search Mobile Application
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Commercialization of Kerala Search Mobile Application
Sulekha.com
Sulekha has entered into the social networking market. It has also entered
into the yellow pages market and spread its presence in 44 cities across
India. It has also tied up with Airtel, Vodafone and reliance. It defined its
business in Social Networking and Location based Search.
Strength
1. Possess a well developed marketing network and experience
2. The company has spread its reach through mobile application
At glance it may seem that Sulekha as emerged as one of the most successful
yellow page company which is ready to compete with Market Solution. But
the reality is far different because of the fact that sulekha.com is not focused
in its activities.
Weakness
1. The Company is trying to cover across cities in different state which has
the following limitations of a localized LBS system
2. The company has not yet entered into the vehicle tracking system
3. It does not have a solution through SMS
Just dial
Just Dial is India’s no.1 local search destination. The company caters to over
70 million unique users. As of today, this search engine covers 200+ cities in
India. This unique local search service is available on:
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Commercialization of Kerala Search Mobile Application
It has LBS for across 200 cities and phone, internet, wireless and print mode
for yellow pages.
Competitive strength
The company bridges the gap between the buyers and sellers by helping the
buyers find the right providers of products and services while helping the
sellers improve the efficiency of their marketing channel. The company has
achieved a leading position by establishing the following competitive
advantages.
Vision & Business Philosophy
To constantly bring out revolutionary concepts in the field of local search that
would change the way people access information on products and services.
The company’s philosophy focuses on end user experience through constant
innovation, teamwork and integrity.
Just Dial's local search via SMS makes information available at fingertips to
all mobile users across 240 cities in India (WEST). Search for any information
- Company, Product or Service simply by sending an SMS to 53999. A quick
and cool way to get information instantly.
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Commercialization of Kerala Search Mobile Application
Strength
1. The Organization has lot of potential with its huge data base which is
the real core competency in such market
2. A huge market network
3. Experience in the same sector for a decade
Weakness
1. The company is still is carrying out its activities thorough Call and
know mode which is very unfriendly for customers
2. It has not entered into the mobile application mode
3. The company has not entered into social networking like sulekha
4. The company seems to be not taking advantage of the increasing
market segment in GPRS
INFOMEDIA
INFOMEDIA is one of the worthy competitors for Market solution in LBS. It
has entered into various market segments - Yellow pages on print, online,
mobile, phone and CD.
Strength
1. Entered into publishing books
2. In the process of acquiring small companies in carrying out LBS
3. A large data base and infrastructure
4. Experienced management and market network
Weakness
1. Lacks focus in the LBS by not concentrating state wise or region wise
2. Not entered the Vehicle tracking segment
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Commercialization of Kerala Search Mobile Application
WEBINDIA 123
It is the best competitor of Market Solution. It has entered into online
shopping, Entertainment, women’s corner, E card and LBS Sector. It has also
launched the Mobile search application.
Strength
1. Experience in various sector and a huge covers a huge Market Sector
2. In the process of acquiring small companies in carrying out LBS
3. A large data base and infrastructure
4. Experienced management and market network
Weakness
1. Lack of region wise focus in LBS
2. It has not entered in vehicle tracking system
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Commercialization of Kerala Search Mobile Application
Chapter 5
Data Presentation
Page 33 of 104
Commercialization of Kerala Search Mobile Application
Ch
haracterristics of the po
opulatio
on
The
e characteristics of the sam
mple form an impo
ortant parrt in analy
ysis of an
ny
datta. The qu
uestions 1,
1 2, 18 & 19 enqu
uiring abou
ut No: of year’s mo
obile phon
ne
use
ed, No: off mobile operators
s tried, Daily
D trave
el pattern
n, Week travel
t hab
bit
respectively formed the
t basis to check
k the mob
bile usage
e, brand loyalty
l an
nd
trav
vel patterrn among the samp
ple.
Years Mobile phone used
d
Aro
ound 61 % o f th
he
pop
pulation has bee
en
3 to 5 yr
30% usiing mobille for more
> 5 yr tha
an 3 years
s
1 to 3 yr
30% %
31%
< 1 yr
9%
Mobile operators tried
ound 33 % of the
Aro
2
pop
pulation has trried 30%
1
mo
ore than 3 operatorrs 37
7% 3
18%
4
%
8%
> 6
6 5
4%
% 3%
Page 34 of 104
Commercialization of Kerala Search Mobile Application
Dailly Travel Pattern
Only 22 % of th
he
populatio
on trave
els
0 ‐ 20 Km more tha
an 50 km
k
51%%
20 ‐ 50 Km
5 daily
277%
> 100 Km
> 50 ‐ 100 Km
10% 12%
Weeekend traavel
Aro
ound 53
3 % off the > 200
2
26% 50 ‐ 100
pop
pulation travel more 47%
tha
an 100 km
m weekend
d 100 ‐ 20
00
27%
Weekkend Traavel hab
bit
Twicce a
mon nth
42% 26 % of th
he
on
populatio trave
els
Page 35 of 104
Commercialization of Kerala Search Mobile Application
Eve
en though
h the wee
ek end tra
avel patte
ern shows
s 53 % pe
eople trav
veling more
tha
an 100 km
m out of th
hese only 26 % trav
velled freq
quently du
uring wee
ekend. Th
his
figu
ure is also
o substitu
uted by th
he daily trravel patte
ern which
h shows th
hat only 22
2
% of
o the peo
ople travell more tha
an 50 km daily.
Thiis shows that 26 % of the sample travel furtther aparrt from th
heir routin
ne
trav
vel.
en though
Eve h the pop
pulation consist
c off 63 % using mob
bile for more
m than 3
yea
ars person
ns who has switch
hed over more
m than
n 3 opera
ators cons
stitute on
nly
33%
%.This means
m tha
at the adv
venturous people in the s ho are not
sample wh
bra
and loyal are
a as low
w as 33 %.
%
Imp
plication
n from characteris
stics
The
ese compa uggest that 26 % of
arisons su o the sam
mple is fre
equent tra
avelers an
nd
33%
% of the sample is not brand
b loya
al. There
efore the sample consists
c of
maj
ajority of responden
r nt who arre not rea
ady to tak
ke up a se
earch faciility for th
he
sak
ke of trav
veling and
d not read
dy to swittch over their serv
vice proviider for th
he
sak
ke of mob
bile applic
cation sofftware. Ho
owever th
he feasibillity of sea
arch faciliity
is not
n limite
ed to trav
vel alone for a cus
stomer to
o take up it includ
des variou
us
oth
her factors
s like the
e ease witth one can
n find ou
ut places tthan brus
sh throug
gh
yelllow pages
s, plan a travel,
t locate a shop
p etc.
The
e above in
nference is
s proved by
b the res
sponse received forr question
n no: 14 - If
any
y other mobile
m pro
ovider is providing
g you suc
ch search
h a facilitty will yo
ou
cha
ange yourr mobile provider?
p
switch
hing over to other servicce
60 % of the
t respondent saiid that the
ey
provideer would not cha
ange the
eir servic
ce
providers
s just forr the sake
e of mobiile
Yes
40% applicatiion softwa
are. This proves th
he
No theory th
hat testin
ng of new
w product /
60% service by
b a custo
omer can be decide
ed
by the brrand loyalty he pos
sses.
Page 36 of 104
Commercialization of Kerala Search Mobile Application
GP
PRS reac
ch and knowled
k dge
100% 3 % of th
36 he busine
ess class as
a
80% 23
a
are haviing GPRS
S enable
ed
11
15 168
60% 30 m
mobile ph
hone and 25 % hav
ve
No
40%
Yes a
activated GPRS.
25
20% 67
7 102
10
0%
Studeents Salaried Business Total
M
Majority o
of the sallaried clas
ss
Know
wlegde of GPRS as searrch facility
(
(92 %) kn
nows thatt GPRS ca
an
1
100% 3 b
be com
mbined with
w LB
BS
35
5 55
80% 17 f
followed b
by the stu
udent clas
ss
60% (
(82 %) a
and business clas
ss
No
40
40% 16
63 226
Yes (
(58 %).
23
20%
0%
Stude
ents Salaried Business Total
Page 37 of 104
Commercialization of Kerala Search Mobile Application
Uses of G
GPRS
100%
90% 30 10 43
80% 3
70% 10 2 12 Other purposes
60%
50% 0 Stock prices, train timings etc
40% 46 20 66 Sendin
ng & receivingg emails
30% 3 Search
hing places
20%
10% 17 24
3
0%
udents
Stu Salaried Bu
usiness Total
S
Spending o
on GPRS
Rs 100 to
o Rs 200
11
1%
Rs 50 to Rs 100
3
31%
Rss 200 to Rs 50
00
20%
<= Rs 50
32%
>= Rs 500
0
6%
Maj
ajority of the GPR
RS users use GP
PRS for sending
s a
and receiiving MM
MS
message exp
pect the business
b c
class. How
wever the next cate
egory of GPRS
G usag
ge
is the
t intern
net brows
sing. 16 % of the sample told that they sea
arch place
es
thrrough GPR
RS.
62 % o the sample
s sp
pends belo
ow Rs. 100 for GPR
RS. 11 % o
of the sam
mple can be
b
clas
ssified as
s moderatte users are
a willing
g to spend
d Rs 100 to Rs 20
00. 20 % of
Page 38 of 104
Commercialization of Kerala Search Mobile Application
the sample fall under Rs 200 – Rs 500 who can be called frequent users. And
only 6 % of the sample falls in the category of very high users.
Implication
57 % of the sample is having GPRS enabled mobile phones
37 % of the sample has activated GPRS in mobile phone
The figure shows a gap between GPRS enable phone users and GPRS users
this is mainly because of the fact that GPRS rates have gone up and are high.
This trend is supported by the fact that only 37 % of the population are
willing to spend more than Rs 100 for GPRS.
Page 39 of 104
Commercialization of Kerala Search Mobile Application
VA
AS penettration and
a usa
age
Usagge rate of V
VAS
Yes
22%
Only 22 % of the
t samp
ple
uses VAS (Va
alue adde
ed
No
o ce).
servic
78%
%
Purpose off using mob
bile phone
The a
above cha
aracteristic
cs
To listen to
o can b
be well interprete
ed
To SMS music/watcch
26% from tthis pie chart
c whic
ch
videos
16% says that only
y 25 % of
people
e use mob
bile phone
es
for other purrpose tha
an
To call Browse calling
g & SMS.
friends & internet
Family 9%
49%
The
e below histogram
h on VAS usage
u say
ys that Ne
ews, Calle
er tones, Ring tone
es
& cricket
c up
pdates arre the mo
ost sough
ht out ca
ategories p
people prrefer. Som
me
peo
ople have also show
wn consid
derable intterest in Astrology
A and trave
el.
Page 40 of 104
Commercialization of Kerala Search Mobile Application
VAS u
usage
90 81
1
80
66
70
60
50
40 31 29
30
20 14 14
8
2 5
10 0 0
0
Page 41 of 104
Commercialization of Kerala Search Mobile Application
The
e search experienc
ce form mobile
m is as low as
s 15 % fo
or the tottal samplle.
This
s means that there
Tried SSearchingg places
is iimmense scope for
fo
100% this
s marke
et to b
be
80% exploited.
60% 1
150 33 228
45
5 N
No Bus
siness cla
ass showe
ed
40% Y
Yes the maximu
um (25%
%)
20%
27 3
11 41 experience in
n Locatio
on
0%
dents
Stud Salarried Busineess Total based searche
es.
Chart
C No: 26
2
wever
How on
nly 15 %
stu
udents sho
owed prev
vious experience in
n location
n based se
earch. Sallaries clas
ss
sho
owed the least
l expe
erience (6%).
plication
Imp n
An interestiing trend
d to be noted he
ere is th
hat people
e search places or
o
establishmen
nts accorrding to their Ne
eed, Type
e of proffession or
o Person
nal
inte
erest. A business
b man has to travell, interactt with ma
any peoplle and vis
sit
pla
aces. Therrefore his job dema
ands searrching pla
aces and locations
s. But eve
en
in the
t absen
nce of a major
m play
yer in the
e market and a fulll fledge LBS
L system
stilll 25 % of the sample co
ould find an alternative s
search facility. Th
his
hig
ghlights th
he need off such a facility
fa am
mong the population
p n.
Wh
hereas forr a salaried emplo
oyee thing
g remains
s more orr less cerrtain. Eve
en
tho
ough it’s not
n true for a priv
vate secto
or employ
yee, he sttill visits places an
nd
clie
ents of hiis organizzation of which prre – instrruction ha
as been provided
p to
him
m.
Page 42 of 104
Commercialization of Kerala Search Mobile Application
by his group
p of friend
ds who inttroduces new
n produ
ucts. Bein
ng enthus
siastic he is
pro
one to try
y new prroducts/ Services. A low student
s L
LBS patte
ern further
pro
oves the point
p that the mark
ket is still not explo
oited by an
ny player..
Cu
urrent Se
earchin
ng source
es
The
e trend shows a
mo
ore or less
s common
n Current SSearching Source
patttern fo
or LBS
S. 100% 13 0
30
13 3
Maj
ajority (74
4%) of the 80%
33 0 3
43
sam
mple use search
h 10
60% Directories
eng
gine as an
a existing 17 Offical websiites
40% 160 212
sou
urce for searching 35 Search engin
nes
20%
pla
aces and locations
s.
0%
15 % of th
he sample Students Salaried Business Totaal
Chart No: 27
2
use
e officiall website
and
d 10 % se
earch from
m Directories. This
s shows th
he feasibility of an alternativ
ve
LBS
S system since the
e currentt search engines
e fo
orms an a
alternativ
ve for a fu
ull
fled
dged syste
em.
Wiillingnes
ss to sub
bscribe to Loca
ation bas
sed Search Fac
cility
Studentts Salaried
d
No
o No
28%
% 32%
Yes Yes
72% 68%
Businesss Total
No
o
No
50
0%
32%
Yes Yes
50% 68%
Page 43 of 104
Commercialization of Kerala Search Mobile Application
As proved in
i the ea
arlier ana
alysis and
d conside
ering the
e psychollogy of th
he
stu
udents’ po
opulation a favora
able respo
onse (72%
%) was obtained from
f them
m.
Eve
en the sallaried clas
ss who ha
ad very po
oor past experience
e e could vo
ote for suc
ch
a facility
f if it comes to mark
ket. The only
o incon
nsistency of data was foun
nd
am
mong the Business
B c
class who
o in spite having 25
5% experiiences in LBS vote a
win
n – lose 50
5 %. The
e probable
e interpre
etation off this cha
aracteristic
c would be
b
tha
at the lack
k of know
wledge of the LBS system proposed b
by Market Solution
ns
or the lack of confid
dence tha
at such a system would m
meet theirr all need
ds
bec
cause of the fact that
t there is no fully
f fledg m in the market at
ged system
pre
esent (Rep
port from Market Data
D as we
ell as prov
ved in the above an
nalysis).
Ne
eed Duriing Trav
vel
One major aspect
a to
o be unde
erstood before ana
alysing th
he below percentag
ge
histogram on
n need fellt during travel is that
t whatt influence
es the nee
ed of abov
ve
mentioned classes
c of people.
Nee
ed felt duirng trave
el
100%
90% 53
17
7 96
80%
27
70%
60%
No
50%
Yes
40% 132
30
0 5
185
30%
23
20%
10%
0%
Students Salarieed Business Total
Page 44 of 104
Commercialization of Kerala Search Mobile Application
Fac
ctors inflluencing the need
d to use LBS
L durin
ng travel
B
Business Salaried Studen
nts
M
Makes More travel
t witth
Depends on the
e
Tra
avel patterrn professiona
al friends than witth
nature off the job
trravel than
n family family
With fa
amily it’s
s
d Less
less of scheduled
s schedule
ed
Pre - p
planned
Tra
avel sched
duling as comp
pared to
o and planned
p in
sc
cheduled travel
their officiall most off the cases
travel
C
Can happen only
For fam
mily trip
p
Fee
eling of ne
eed to before the
e travel
can happen
n Felt eve
ery time
sea
arch th
han duriing the
during th
he travel
trravel
Table No: 6
udents ha
Stu ave more need
n to se
earch whiile travel than
t any other classes with a
whooping ne
eed of 72 % to sea
arch while
e travellin
ng. Follow
wed by sallaried clas
ss
(63
3%) and then
t ve statics is well in
by business class (46%). All the abov
acc
cordance with the
e psychological fac
ctors whiich influe
ence the sample to
sea
arch while
e travel.
Search pre
eference
es and mode
m off prefere
ence
Search pre
eferences
79 78
80 65
70
60 48 46 50
50
40 24 24
30 7
17
20 4
10
0
Page 45 of 104
Commercialization of Kerala Search Mobile Application
Edu
ucation, entertainm
e ment and
d ATM po
oints are the highly ranked
d searche
es.
The
e second elite cate
egory inclu
udes Health care, Banking & finance
e and Foo
od
& Dine.
D
Mo
ode of Preferenc
P ce for using
u LB
BS
Preference Mo
ode ve category
The entire abov
SMS b
based search Call & Kno
ow Mob GPRS pt the bus
excep siness clas
ss
preferrred GPR
RS mode to
10 subsc
cribe to the LB
BS
88 27 125
5
system
m laun
nched b
by
38 13 63
12 Marke
et Solutio
ons.
51 59
5 3
Imp
plication
n
Stu
udents an
nd salarie
ed class as preferrred the GPRS Mode beca
ause of th
he
eas
siness witth which GPRS ca
an be han
ndled for search fa
acility. Ho
owever, th
he
inc
clination of
o the bu
usiness class towards the call
c & know mode has to be
b
com
mpared with
w their current searching sources and
a experrience in using LBS.
The
ey are the o uses more official sites and
e one who d Directorries to sea
arch place
es.
Thiis is beca
ause of th
heir need to
t get exa
act inform
mation. Th
hey are allso the on
ne
who make call
c to the
eir busine
ess network to kno
ow inform
mation abo
out a plac
ce
or its
i locatio
on. And th
his is show
wn by the
eir inclina
ation to ca
all & know
w offer.
SMS Vs G
GPRS This
T partiicular tre
end consiistent witth
SMSS the above
e data o
on preferrnce mod
de
39%
%
compares
c the pre
efernce of
o SMS to
GPRS GPRS.
G GP
PRS gets potive vote of 61 %
61% as
a comparred to SM
MS mode. This
T show
ws
Chart No: 32
the feasibilty of the LBS sy
ystem to be
b
ma
arketed in GPRS mo
ode.
Page 46 of 104
Commercialization of Kerala Search Mobile Application
Implication
15 % of the sample has tried LBS
70 % of the sample is using search engines as a substitute for LBS
68 % of the sample is willing to subscribe to LBS
65 % of the sample has felt to search while travelling
Around 61 % of the sample chose GPRS as the mode of LBS
Education entertainment and ATM ranked top among the favorite searches by
people.
The need felt by student during travel was more than any other class. The
GPRS mode also showed maximum penetration into the student category.
However the past experience of usage for the LBS was predominant among
business class.
Page 47 of 104
Commercialization of Kerala Search Mobile Application
Chapter 6
Data Interpretation
Page 48 of 104
Commercialization of Kerala Search Mobile Application
Page 49 of 104
Commercialization of Kerala Search Mobile Application
As far as mobile phone usage is concerned, 94% of the students are using it
for calling friends and family members.56% of the students are using mobile
phones for sending SMSs, 36% of the students to listen to music or see videos
& 21% to browse internet.
94% of the salaried class is using mobile phones to call friends and family
members, 46% of the salaried class for sending SMSs, 26% to listen to music
and watch videos and 20% to browse internet.
60% of the business class is using mobile phones to call friends and family
members, 14% of the business class for sending SMSs,0% to listen to music
and watch videos and 0% to browse internet.
It is crystal clear from our study that majority of the three strata are using
mobile phones most frequently for calling friends & family, more frequently
for sending SMSs and frequently for listening to music or see video and
occasionally for browsing internet. But it is interesting to note that business
classes are having aversion to using mobile phones for browsing internet.
We also wanted to know whether mobile phones are used for some other
purposes but nobody responded to that question.
As far as the value added service usages are concerned frequently used Value
added services are News, Caller tunes, cricket updates, ticket booking & ring
tone down load.
Page 50 of 104
Commercialization of Kerala Search Mobile Application
Caller tunes are used by 28% of the student population, 24% & 6% of
salaried and business class.
14%% of the student population, 4% & 6% of salaried and business class are
using cricket updates.
4% of students & 14% of business class book tickets through mobile phones.
11% of student population and 20% of salaried class use the value added
service – Ring tone down load.
In our survey we found out that most often people wanted to search ATMs,
automotive, banking and finance, food and dine, education, entertainment
and health care.
Page 51 of 104
Commercialization of Kerala Search Mobile Application
For a vast majority of the population we have taken for study the most
preferred searching source is Search engines.
Page 52 of 104
Commercialization of Kerala Search Mobile Application
Majority of the students and salaried class are having this facility in their
mobile phones but case is different with the case of business men.
37% of students, 50% of salaried class and 20% of business class have
activated GPRS in their mobile phones.
Only the majority in salaried class have activated GPRS. Is it because of lack
of awareness/ they consider this as useless? Let’s check out next.
91% of students, 80% of salaried class and 46% of business class know that
GPRS can be used as search facility in mobile.
But we were wrong. Majority of students and salaried class with an exception
of business class knew that GPRS can be used as search facility also.
Majority of the population know that GPRS can be used as search facility. But
they have not tries searching places using mobile phones. This is quite
interesting a fact.
Page 53 of 104
Commercialization of Kerala Search Mobile Application
26% of students, 40% of salaried class are using GPRS for sending and
receiving places.
6% of students & 4% of salaried class are using GPRS for knowing stock
price, train timing etc.
Most of the respondents are using GPRS for sending and receiving emails.
Only a minority is using GPRS for searching purposes. A reason to this might
be the difficulty to search information using the existing tools. So there is a
business opportunity for Market Solutions!!!!
It is as follows:
Out of students for GPRS usage 16% are spending less than 50Rs/-, 11%
between 50 to 100Rs/-, 4% between 100 to 200Rs/- & 7% between 200 to
500Rs/-.
Out of salaried class for GPRS usage 4% are spending less than 50Rs/-, 16%
between 50 to 100Rs/-, 6% between 100 to 200Rs/- , 14% between 200 to
500Rs/- & 4% above 500Rs/-
Page 54 of 104
Commercialization of Kerala Search Mobile Application
71% of students, 70% of salaried class & 40% of business class will subscribe
to such a search facility if it is offered by their mobile providers.
More from business class can also be enticed by including search categories
relevant to them.
Our study revealed that majority of the population in case of Students (49%)
and salaried class (60%) is not willing to switch over to new telecom provider
in case if this search facility is provided by the new mobile provider. But
majority of business class (54%) is willing to switch brand if a new mobile
provider is offering such a search facility.
This is the only minor unfavorable factor we found in our analysis and this
can be neglected. But sill you can “delight” your existing subscriber base with
this unique VAS.
Page 55 of 104
Commercialization of Kerala Search Mobile Application
28% of students, 10% of salaried class & 6% of business class preferred SMS
based search.
21% of students, 24% of salaried class & 24% of business class preferred Call
& Know facility.
49% of students, 54% of salaried class & 20% of business class preferred Call
& Know facility.
Except with business class the most preferred search mode is GPRS. The
company has taken a right decision.
Travel pattern
KSMA aims to make life easy for people who travel frequently to new places.
So Market solutions wanted to study the travel pattern of population under
study.
Analyzing the daily travel pattern we found out that 57% of students, 30% of
salaried class and 34% of business class traveled between 0 – 20Kms. 22% of
students, 34% of salaried class and 34% of business class traveled between
20 – 50Kms. 7% of students, 20% of salaried class traveled between 50 –
100Kms. 4% of students traveled greater than 100Kms.
Analyzing the week end travel pattern we found out that 24% of students,
14% of salaried class and 46% of business class traveled between 50 –
100Kms. 19% of students, 16% of salaried class traveled between 100 –
200Kms. 14% of students, 20% of salaried class & 14% of business class
traveled greater than 200Kms.
Page 56 of 104
Commercialization of Kerala Search Mobile Application
Analyzing the frequency of week end travel pattern we found out that 26% of
students, 26% of salaried class and 26% of business class traveled four times
a month. 43% of students, 64% of salaried class & 26% of business class
traveled twice a month. 22% of students, 26% of salaried class and 14% of
business class traveled four once a month. 11% of students, 10% of salaried
class and 20% of business class traveled once in two months.
73% of students, 60% of salaried people & 54% of business class have felt the
need to search while they are traveling.
Page 57 of 104
Commercialization of Kerala Search Mobile Application
Chapter 7
Page 58 of 104
Commercialization of Kerala Search Mobile Application
The one word answer to the very Title of our project study “Commercialization
of Kerala Search Mobile Application – A feasibility study” ie whether Kerala
Search Mobile application can be commercialized is “YES”. This inference will
be substantiated and justified in the following paragraphs.
The response to the 20th question, the most vital question of our
questionnaire by the majority of the respondents has been very encouraging
to give green signal to the commercialization of Search application. The
majority of the respondents taken part in survey have felt the need to search
while traveling. The company has to capitalize on this latent need. For
capitalizing on this golden business opportunity they have to provide a
convenient medium for the target market and the company cannot come up
with a better medium than mobile phones. As we all know mobile phone is
not a luxury any more but is a necessity!!!!
Now that there is a latent need and company has provided a suitable medium
– mobile phones, the search mode preferred by the target market has to be
found out. It is clearly evident from question no 15 that most preferred
medium for search is “GPRS based search” for students and salaried class.
But for business class it is “Call & Know facility”.
Majority of the respondents taken part in the survey are aware of GPRS and
they know that GPRS can be used as a search facility. This “familiarity” is a
favorable factor for commercialization of KSMA.
Majority of respondents other than business class are having GPRS in their
mobiles but the majority with an exception in salaried class have not
activated GPRS.
It can be inferred from the positive response given to question no:13 that
majority of the respondents will subscribe to such kind of a search facility
provided their mobile provider is offering one.
Page 59 of 104
Commercialization of Kerala Search Mobile Application
So the company should present this finding to the mobile provider with whom
they are conducting final round of discussions to fix the deal. The mobile
provider should launch “awareness advertisements” highlighting the
convenience and search narrow down options of KSMA so that the customers
will down load the application, activate GPRS and starting using the same.
This is another avenue for generating revenue for mobile providers and they
can add one more value added service to their existing list. They can use this
application as another tool for satisfying their existing customer base.
An interesting observation that can be made from the study is that majority of
the respondents in students and salaried class is not willing to switch mobile
providers incase if any other provider is offering such a search facility. But
same is not the case with business class. They are ready to subscribe this
facility.
But our instinct says the company can discard this unfavorable response and
concentrate on other favorable factors. This is going to be an instant hit in
the mobile market. The existing mobile providers can use this to entice new
customers if they go for an “early bird strategy”
Most of the current GPRS users are using this facility for sending and
receiving emails.
Majority of the respondents did not even dare to make a “wild guess”
regarding the price they are ready to pay for this service. So we are not in a
position to suggest the pricing strategies for this service.
A vast majority of the respondents have not even tried searching ATMs, hotels
etc through mobile phones.
Most of the respondents taken part in the survey prefer searching ATM
points, automotive, education, entertainment & health care.
Page 60 of 104
Commercialization of Kerala Search Mobile Application
Most frequently value added services are news, caller tones, cricket updates &
ring tone down load.
Analyzing the potential competitors we can find the below facts which are
relevant for formulating commercialization strategies.
“ask laila” is providing similar SMS based search service but only in seven
cities - Banglore, Mumbai, Delhi, Chennai, Kolkaka, Hydrerabad &
Ahmedabad. They have tie up with Vodafone & Reliance to provide Search
service and is charging Rs 3.00 per search.
“Just a dial” operates in 240 cities in West India. Their service is currently
available on Vodafone, Airtel, BPL, Idea, Aircel, Reliance, spice for Rs 3/- per
search. For MTNL Mumbai they are charging Rs 1/- per search.
Page 61 of 104
Commercialization of Kerala Search Mobile Application
• Automotive
• Organize an Event
“Kerala Government Call Centre”!!! – Just dial 155300- a one stop shop for
information on a variety of schemes and programmes of different government
departments.
We can come to the conclusion from competitor analysis that there is not a
single company in Kerala providing GPRS / SMS based search service. So
Market solutions can go ahead with their plans to form tie ups with various
mobile providers to offer KSMA to their subscribers.
KSMA is providing search facility in 144 different categories. But before going
for full fledged commercialization they have to make sure that sufficient data
is available in these 144 search categories.
Page 62 of 104
Commercialization of Kerala Search Mobile Application
Market solutions cannot charge for data like hospitals & government offices.
But they can definitely charge for listing of hotels, shopping malls etc. So
once the company convinces the target establishments that they are on the
verge of launching this KSMA through various mobile providers the
establishments will be ready to pay for different listing schemes according to
their business requirements.
Market solutions have to make their data base (ypkerala.com) very strong. It
should act as a “panacea” for all search related difficulties.
Page 63 of 104
Commercialization of Kerala Search Mobile Application
• Advocates
• Agriculture needs
• Auditoriums
• Dance schools
• Earth movers
• Hair fixing/treatment
• Mason
• Marbles and granites
• Private tuitions
• Taxi providers
• Pest removers
• Tank cleaning
• Tailors
• Vastu
• Waterproofing ……. To name a few ……..
Market solutions can also provide the same services to tourists also through
mobile providers. Thus mobile providers can enhance their customer base
also.
Market solutions can also try to form a tie up with the Kerala Government
Call centre to disseminate latest information about various schemes and
procedures of different government departments.
It is of our opinion that Market solutions should always keep an eye on Finger
tips. They have a very good database and if they market the same
Page 64 of 104
Commercialization of Kerala Search Mobile Application
Most of the telecom providers are providing “call & know search facility”. But
on an average they are charging around 6 Rs/- per minute for availing this
facility in Kerala which is too high a charge as far as a common man is
concerned. Since GPRS search facility is not available in Kerala there is a
market devoid of competitors so they can charge around Rs 3/- (comparing
with what is charged in other states) in the beginning and when this become
a common value added service in the future they can reduce the price
substantially. A time will come in future due to stiff competition when the
mobile service providers will be forced to give these value added services free
of cost / or with other schemes to subscribers.
Along with sending SMSs to popularize KSMA the mobile providers should
advertise this application through different media like news papers & TVs
highlighting the ease, quickness and cost effectiveness of KSMA.
Market solutions had a plan to go for state wise invasion plan of the whole of
Indian Market. After making an analysis of the competitors and financial
Page 65 of 104
Commercialization of Kerala Search Mobile Application
resources it is of our opinion that the company should confine them self to
Kerala.
Advertisement 1.
Scene 1
Sales engineer Anith raj has come to an unfamiliar Place “X” to attend a one
day sales meeting. He is pretty relieved now (reflected from his facial
expression – camera should take his facial expression carefully). At last
the sales meeting is over. Its 9.30 PM and he steps out of conference hall.
Scene 2
He walks to his car singing the latest Tamil hit song. Suddenly a thought
comes to his mind. The very next day is his first wedding anniversary. He has
forgotten to buy a “necklace” for his wife. By the time he reaches his native
place all jewellery shops will be closed
Scene3.
He searches his purse for money. He is running short of funds. He is not
familiar with the place. He does not know the exact location of ATM and
jewellery. He looks around to find some one who is familiar with that place.
But cannot find a single person. He becomes tensed because he knows his
wife well and she will be totally unhappy if he does not keep his promise. He
is in a very perplexed situation.
Scene 4
Suddenly he remembers the SMS he received from Airtel. “Log on to
www.ypkerala.com and download KSMA to search smarter”. This SMS is to
be highlighted in the screen.
Page 66 of 104
Commercialization of Kerala Search Mobile Application
Scene 5
He suddenly becomes hyperactive. Downloads KSMA & finds the location of
ATM & Jewellery shop. (Camera should be zoomed to demonstrate the
search process!!!). Goes to ATM, Buys a necklace and next day happy
wedding anniversary ( To be shown in advertisement – to end in positive
note)
Scene 6
To be displayed and announced on the screen.
You have seen only two categories. There are many more categories – around
150. (This time the camera should make a quick glance of the following
categories.)
• Plumbers
• Carpenters
• Timber dealers
• Old age homes
• LPG dealers
• House maids
• Electrician
• Day care centers
• Bore well agencies
• News paper agents
• Coaching institutes
• Advocates
• Agriculture needs
• Auditoriums
• Dance schools
• Earth movers
• Hair fixing/treatment
• Mason
• Marbles and granites
Page 67 of 104
Commercialization of Kerala Search Mobile Application
• Private tuitions
• Taxi providers
• Pest removers
• Tank cleaning
• Tailors
• Vastu
• Waterproofing ……. To name a few ……..
Advertisement 2
Scene 1
Engineering college. Four students coming out of class.
Scene 2
First student: “Aliya enthoru boran class? Ennu eni classill erikkan vayya”
(Dude, Hell of a boring class. Cannot attend classes today)
Page 68 of 104
Commercialization of Kerala Search Mobile Application
(It’s for that purpose KSMA - Kerala Search mobile application. Can search
144 category. So fast, so easy and so cheap.)
Scene 3
Camera zoomed to show the search process. Get search results. Go for the
movie. Every thing ends in a positive note.
Scene 4
Then same as that of first advertisement.
Page 69 of 104
Commercialization of Kerala Search Mobile Application
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Commercialization of Kerala Search Mobile Application
A college is
Brand Promotion
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Commercialization of Kerala Search Mobile Application
Market to be captured
CUG Formation
CUG (Common user group) needs to be formed with any service provider
which can be selected on the basis of
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Commercialization of Kerala Search Mobile Application
Entertainment package
The package consists of College stories, College jokes, College News, Stories
published by innovative writers in college etc. Along with this a free SMS
package can also be given to students. Now along with every SMS brand
promotion can be done. Slowly the need for a location based search can also
be cultivated among the students.
The spread
Students normally would serve a brand promoter at their homes. But along
with this the locality of the college will also get familiarized with the Location
based search. Now this serves as a plan to enter into the nearby market as
shown by Diagram.
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Commercialization of Kerala Search Mobile Application
Chapter 8
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Commercialization of Kerala Search Mobile Application
Financial Feasibility
Cost of project
Sources of Finance
Calculation of project
Implementation
period
Stages of Finance
Calculation of EBIT
Calculation of
Payback Period
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Commercialization of Kerala Search Mobile Application
Cost of project
Here the costs are incurred by Web Application, Administrative works, Data
Base Formation and Maintenance, Salary and Overheads & other
miscellaneous expenses.
Project cost
Web Application 12 @ 50,000 600000
Administration 300000
Data base 1000000
Marketing 1000000
Salary 1600000
Overheads &
900000
Miscellaneous
Total 3960000
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Commercialization of Kerala Search Mobile Application
Sources of Finance
After the project cost is ascertained the next important thing is the how these
funds can be obtained.
Sources of financing
Stakeholders
Yahoo Partner 2000000
Investors (Business group) 1500000
Loans
Banks & Financial Institutions 1200000
Returns
From Market 700000
Total 5400000
The composition of stake holders and creditors in the investment made by the
company is shown below
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Commercialization of Kerala Search Mobile Application
Sourcess of Finaancing
Inveestors
(Businesss group)
288%
Yahoo Partneer
37%
Banks & Financial
Insttitutions
22%
om Market
Fro
13%
Cha
art No: 34
Fro
om the Ma
arket: Thiis is the fund
f gene
erated du
uring the p
project de
evelopmen
nt
perriod by th
he busine
ess establishment for
f listing
g their companies name witth
the
e ypkerala
a.
The
e busines
ss had hardly
h an
ny investm
ment of fund by the prom
moter. Th
he
pro
omoter fac
cilitated the
t flow of
o funds from
f othe
er sources by conv
vincing th
he
feasibility off the projject. This
s shows the
t entrep
preneuria
al talent to
t genera
ate
fun
nds from other sou
urces tha
an putting
g from ow
wn pocke
et. But th
his needs a
verry good prroject pro
oposal to work with
h otherwiise the stakeholderrs won’t be
b
con
nvinced.
Sprreading the
t cost over
o the period
p
Thiis is done
e find out what wou
uld be the
e finance requirem ach stage of
ment at ea
the
e project. For this a period of one yearr is divide
ed into 6 p
parts con
nsisting off 2
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Commercialization of Kerala Search Mobile Application
1 st 2 nd 3 rd 4 th 5 th 6 th Total
Web Application 300,000 100000 50000 40000 50000 60000 600,000
Administration 75,000 50,000 40,000 40,000 45,000 50,000 300,000
Data base 400,000 200000 400000 0 0 0 1,000,000
Marketing 50,000 75,000 75,000 200,000 250,000 350,000 1,000,000
Salary 200,000 200,000 200,000 200,000 300,000 500,000 1,600,000
Overheads &
Miscellaneous 150,000 150,000 150,000 150,000 150,000 150,000 900,000
Total 1,175,000 775,000 915,000 630,000 795,000 1,110,000 5,400,000
The company also divided its activities into 6 stages for its expansion which
consists of three stages for developing the Data Base and three stages for
aggressive market for the brand promotion.
This trend can be viewed better with the help of a line chart as below:
Project Cost spread over a year
1400000
1200000 1,175,000
1110000
1000000
915000
800000 775000 795000
Cost
600000 630000
400000
200000
0
1 2 3 4 5 6
Months 2 4 6 8 10 12
Expenditure 1,175,0 775000 915000 630000 795000 1110000
We can see that highest cost is incurred at the starting of the business i.e.
the initial investment. This chart helps to plan for additional requirement or
other sources of funds in case the project overshoots the budget or if the
sources of fund default.
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Commercialization of Kerala Search Mobile Application
Cost ite
ems spre
ead ove
er a yearr
Salary 1
12
Marketting 1
12
Data b
base 6
Administrattion 1
12
Web Applicattion 2
0 2 4 6 8 10 12
Months
The
e chart sh
hows the breakup of items of cost sp
pread overr the periiod of tim
me.
Thiis shows that salary, marke
eting and
d Administration ne
eeds to be met by a
fixe
ed fund fllowing sou
urce and Data bas
se and We
eb applica
ation needs more or
o
less
s of one tiime investment. Th
his gives the
t flexibiility in org
ganizing the fund for
fo
the
e project of the company as
s certain costs are
e to be m
met over a period of
tim
me. Furthe
er the cha
art no: 36
6 also sho
ow the am
mount requ
uired at each
e stage
es
of the
t projec
ct.
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Commercialization of Kerala Search Mobile Application
At present there are more than a billion entries listed in the data base which
consists of around 15,000 customers who have listed their business
establishment. This constitutes revenue per customer at an average Rs 1,000
and an average of Rs 80 per month.
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Per Customer/Month
Revenue LBS 8
Listing
80
Revenue
Market in Kochi
Per Customer No: of Customers Revenue
LBS 8 2040000 16,320,000
80 2000 160,000
Total 16,480,000
Here the operating cost is calculated by taking only salary, Administrative &
Marketing cost incurred by the company.
Calculation of cost
Salary is calculated by taking the average salary to employee in the company
as Rs 20,000 in the marketing section. There 20 employees working for the
company in Kochi.
Administrative Cost: Here the term administrative include a wide range of cost
such as Rent of building, stationary etc.
Marketing Cost involves all aspects of cost incurred during marketing such as
brand promotion, Meeting clients, petrol by salesman and other overheads.
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Commercialization of Kerala Search Mobile Application
Per year
EBIT 928,800,000
Table No: 30
Now this trend can be extending to all Kerala as shown by Table No: 6. As per
the company reports Market Solutions is expecting a total customer base of
1/3 of the population of Kerala which makes it approximately 1 crore people
availing the search facility of market Solutions. The total no: of employees all
over Kerala is now 40 and the company plans to have around 80 employees
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Commercialization of Kerala Search Mobile Application
for its expansion plan. Similarly all other cost will be high. EBIT can be
calculated as shown in Table No: 6.
This per month revenue can be extend over a year and calculated to be 928
million.
Payback period
The payback period shows very interesting figures. The return from the Kochi
Market is Rs 15,780,000 i.e. per day earning would be Rs 526,000 which
means that the payback period is nearly 11 days if the 68 % of the population
of Kochi is subscribing to the search facility.
And if the Kerala market is considered as a whole then we can find that the
return is as higher as Rs 928,800,000 for a year i.e. Rs 2,544,675 is per day
EBIT i.e. the project is capable of return the money within just two days! But
of course these figures have been arrived without calculating the interest rate
and Tax chargeable.
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rate. Since these are subject to change in the future, Company B may lose
their apparent advantage.
EBIT should not be used to evaluate a company in isolation. Even though a
heavily leveraged company may appear profitable using EBIT, in actuality, it
may be losing money when interest on its significant debt load is taken into
account. Taxation can also have such a significant effect on the profitability of
a company that a seemingly promising company may be a poor investment
choice if only the EBIT is considered.
But in this case the interest cannot accumulate longer since the hardly any
interest is levied by the stakeholders they just take away the portion of profit
as signed in the deal. And this % of profit does not comes into play for a
feasibility study as the stakeholders are considered as one single entity who
wants to get a fair amount of return more than that offered by a bank rate or
Investment in financial Market, say more than 20 – 30 % of the Invested
amount. And only interest is charged by the banks & financial institution
from whom long term loans were never taken for financing banks were
dependent for short term loans as the project itself would end in one year and
the return would start after that.
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Commercialization of Kerala Search Mobile Application
Chapter 9
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When we started our project study we were pretty pessimistic regarding the
“Commercialization of KSMA”. Now we are on the verge of completing our project study and
we are very optimistic regarding the “Commercialization of KSMA”. We would like to give an
“Emphatic Yes” to the Commercialization of the KSMA. Favorable response from the
respondents and situation in the current mobile market in Kerala prompted us to reach this
conclusion. The collected data and results of data analysis can be used by the company to their
advantage during the negotiation process with mobile providers. Database should be updated
constantly and the company should concentrate on data categories which are relevant to
common man to make KSMA – a Common Man Search Application.
As Peter F Drucker has rightly remarked “Business has only two functions – Marketing &
Innovation”. Market solutions has innovated a product/service in the Kerala Mobile Market.
To capitalize on this innovation Market solutions has to Market this effectively. But they should
not stop there. They should continuously innovate new product features to stave off companies
who are expert at copycatting concepts.
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Commercialization of Kerala Search Mobile Application
Chapter 10
Annexure
• Questionnaire
• Recruitment Project
o Project
o Cover letter
o Brochure
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Commercialization of Kerala Search Mobile Application
First prize
p : Rs 2000/-
2
Second prize : Rs 1000/-
1
Third prize : Rs 500/-
5
Consollation priizes : T- Shirts
S fo
or the first 50
Datte of luck
ky draw: 1/3/09
Hurrry!!! Fill up
u the qu
uestionnairre serious
sly
and
d log on to o ypkerala
a to try your luck
To
o downloadd type http
p://www.ypkerala.ccom/m in y
your mobille from
an
ny mobile browser
b
*Priz
zes will be annnounced to youu through SMS
S or email. Plea
ase note that awarding of p
prizes will be as
a per
the sole
s discretion of ypkerala. The
T employees
s of ypkerala or
o relatives of employees
e sho
ould not take part
p in
this competition.
c
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Commercialization of Kerala Search Mobile Application
Or
Through SMS search facility like this
Make the choice now and please visit our website www.ypkerala.com for
detailed demonstration.
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Commercialization of Kerala Search Mobile Application
Please furnish the below details and fill up the questionnaire so that we
can get back to you to and inform you about the exciting prizes!
Questionnaire
(Indicate your choice by putting a tick mark)
1. For how many years have you been using mobile phones?
Less than 1 year Between 1 to 3 years
3. Which of the following purpose do you use mobile phones for? (Please
tick whichever is applicable)
To call friends and family To SMS
Others Specify
Questionnaire Page 1
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Commercialization of Kerala Search Mobile Application
5. Which among the following would you like to search? (Please tick
whichever is applicable)
ATM Points Automative banking & Finnace
6. Have you already tried searching places, Atm’s, hotels etc through
mobile phone? Yes No
10. Do you know that GPRS (Internet) can be used as search facility in your
mobile? Yes No
11. For what purposes do you use GPRS? (Tick whichever is applicable)
For Searching places Sending / receiving mails
13. If your mobile operator is providing you such a search facility will you
subscribe to it? Yes No
14. If any other mobile provider is providing you such search a facility will
you change your mobile provider? Yes No
15. If your mobile provider offers you search facility then which mode will
you prefer?
16. How much will you pay for the above services? (Please indicate the
amount in Rs in the appropriate boxes)
Rs
SMS per search
Call and know offer Rs
17. What is your travel pattern? (Please put a tick in the appropriate box
below)
Daily
0-20 Km 20-50 Km 50-100 Km 100 and above
Weekend travel
50-100 Km 100-200 Km 200 and above
Yes No
Comments:
Questionnaire Page 3
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Commercialization of Kerala Search Mobile Application
PROJECT PROPOSAL
A Recruitment Project
Submitted by:
Vivek Menon
SEM IV, MBA (FT)
SMS, CUSAT
Submitted to:
Market Solutions (PVT.) Ltd.
Mangalya Towers, Main Road,
Mannarkkad, Palakkad District,
Kerala, India – 678582
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PROJECT PROPOSAL
The above idea was incubated by Dr. Manoj Edward in a casual discussion with
Mr. Deepesh George.
2. Recruitment plan
The company plans to recruit 10 – 15 MBA’s who belong to the aforesaid genre.
They will be given an appropriate project topic in the field of sales and marketing.
Along with this they will be given an opportunity to prove their acumen by
achieving Sales targets – 35 Premium listing allocated to them. Once they achieve
this they will be awarded a cash prize of 15000Rs/- and a lucrative offer letter to
work in the capacity of Assistant Manager – Marketing. The company also provides
two days training and necessary resources to the students. The students are free to
work anywhere in Ernakulam District
1. SNGITS
2. Bharatmatha College
3. ICFAI, Kochi
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This is done to inscribe the name ‘ypkerala’ in the minds of students so that they
respond favorably when the actual presentation is made, a sort of brand building
exercise. The company should contact the faculty members to eliminate
exaggerated CVs.
2.3. Presentation
After this the Recruitment team has to visit the institutes and make lively
presentation highlighting two aspects to entice students.
1. Exciting project in Sales & Marketing: A new concept – Being introduced for
the first time in India
2. Opportunity to prove them self: Lucrative offer & Offer letter.
1. Street smartness
2. Sales aptitude
3. Willingness to work hard
4. Systems Knowledge
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2.6. Training
We suggest training in three session’s pre-project, In the course of project & post-
project training.
2.6.1. Pre project training can be given in the following area:
1. How to make a successful sales call?
2. Process and procedures in making the sales call
3. Strategies to be used while making a sales call
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2. Absolute freedom for students to opt out of the project if they find
themselves incompetent to achieve the sales targets, because, an employee
without job satisfaction can do more harm to company than good.
Many a times it happens that the student will not be good at closing sales.
But at the same time he may be able to generate wonderful innovative ideas.
His forte is his analytical abilities. So the company should search for
innovative ideas in the project reports submitted. Feasible ideas have to be
properly rewarded and implemented.
To overcome the above, we would like to suggest a GROUP SMS facility so that
whenever a prospect is approached the same can be reported to his fellow students
and the company.
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Phase 1
S.No Activity Duration
1 Discussion 2 Days
2 Penetration of informal network 3 Days
3 Brochure printing 3 Days
4 Sending brochures 3 Days
5 Presentation 1 Day
6 Soliciting CVs 2 Days
7 Short listing 1 Day
8 Interview Intimation 3 Days
9 Interview & Spot Selection 1 Day
Total 19 Days
Phase 2
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2. The company can find “the real talents” in the field of sales &
marketing
3. The company may also get innovative ideas from students
4. The company is getting publicity through this recruitment drive.
5. The company can collect the data about the market through students.
Estimate for the business proposal
Expenditure
particulars Details Amount
Initial cost
Transportation cost 500
Interview & Selection 2000
2700
Brochure and communication 100
Follow up (SMS & telephone) 100
During project
Training cost 30hr @ Rs100/Hr 3000
Communication during project SMS & telephone 2000
Attrition without business 5students 1000
Miscellaneous 100/Student 2000
Attrition with business 5 Students 0
Follow up after project
Loss of customer 15 Business 15000
Telephone & SMS 1000
26700
Revenue
(Business) ‐ Average of 1000/Business by 10
10*(35000‐15000) 200000
(Stipend) students
Deferred Revenue
During business
Left over deal completion 20 Business 20000
Word to mouth deals 5 Business 5000
After project
Customers through Advertisement 50 Business 50000
100 deals @ Rs
Brand promotion 1000 100000
Experience for similar project Effectiveness 2000
Increase in database 350 @ Rs 5 1750
Total Profit 352050
Note:
Attrition without business – Refers to students leaving the project before
completing any sales call.
Attrition with business – Refers to students leaving the project after completing
some sales call (We have fixed a min a 5 sales call). Its net effect would be no profit
no loss.
4. SUGGESTIONS
05 February 2009
The Director
Dear Sir,
We have launched a scheme in our organization for offering summer internship for MBA
students from reputed management institutes/ university departments. We have pleasure
in advising you that your esteemed institution is identified for providing summer
internship for the students undergoing management courses. The salient features of this
scheme are as under.
We are very glad to associate with your esteemed institute and request you to sponsor
students genuinely interested in this internship program.
Please find attached with this a brochure to be displayed on the notice board.
Yours faithfully,
HR Manager