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COMMERCIALIZATION OF KERALA SEARCH

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

Under the Guidance of


Prof. (Dr.) P. R. Wilson
Dr. Manoj Edward, Lecturer

School Of Management Studies


Kochi-682022, Kerala, India

Year-2009
Commercialization of Kerala Search Mobile Application

Chapter 1

Objective, Scope & Limitation of

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

1. To strictly confine the study to commercialization aspects of KSMA.


2. To analyze the mind set of Indian Mobile subscribers regarding Search
Application and other Value Added Services.
3. To suggest strategies to commercialize Kerala Search Mobile
Application.
4. To suggest further improvements for Kerala Search Mobile Application.

LIMITATIONS OF STUDY

1. The data regarding GPRS Users were not available.


2. Due to Time Constraints we had to limit our sample size to 280.
3. Lack of comparison standards since KSMA is an innovative product in
Kerala Market.

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Commercialization of Kerala Search Mobile Application

Chapter 2

Methodology of the study

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Start

Stage 1.Project study Title:


Commercialization of Kerala
Search Mobile Application
Software – a Feasibility study

Analysis of Market Solutions


– the Company launching
Kerala Search Mobile
application

Analysis of Indian Mobile


Industry

Analysis of companies
offering similar services

Stage 2: Study the pulse of the


Target Market.

Sampling Technique:
Stratified Sampling

Whole population stratified


into Students, Salaried &
Business class

Convenience sampling in
three strata

Sample size: 280


Students : 180
Salaried class : 50 1
Business class : 50

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Type of Data: Primary

Data collection:
Through Questionnaire

Type of questionnaire:
Structured
Questionnaire

Stage 3. Administering
Questionnaire

Stage 4. Collection,
tabulation, presentation
& analysis of data

Find out: Search


preferences, Searching
sources

Find out: GPRS


awareness, usage pattern

Find out: Preferred


mode of search – GPRS
/ SMS & Charge?

Find out: willingness to


subscribe / switch over 2
mob provider

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Find out: Travel pattern


of target market

Find out: Ever felt the


need to search while on
the move?

Commercialize
KSMA? Stop
No

Yes

Stage 5.Formulate
strategies to
Commercialize

Suggest Improvements

Stop

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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”.

As a prelude to know the real pulse of the market preliminary studies on


Market solutions – the company launching KSMA, Indian Mobile Industry and
companies offering services similar to Market Solutions were conducted.

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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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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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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Chapter 3

Literature Review

Market Analysis for VAS, GPRS

& LBS

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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.

In order to check the Market feasibility this software application a market


study was conducted in the following areas:

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

GPRS Usage and the growing trend


• GPRS searching pattern
• A report by Mini Opera

Market analysis for LBS (Location Based Search)


• The concept
• Current Status
• Future potential
• Solutions provided by LBS

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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

Thiis low tarriff is the real challlenge to any


a cellullar operattor. The chart
c abov
ve
sho
ows the lo
ow margiin in whic
ch the ce
ellular ope
erators have to function an
nd
this
s low ma
argin sho
ows a verry steep decline by
b 2007. This ind
dicates th
he
imp
portance for
f alterna
ative sourrce of reve
enue for the
t operattors.
Hig
ghlights on
o the Trrend

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• 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%

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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.

Market trend for VAS in India


A report by market research firm IMRB stated that the mobile value-added
services (MVAS) industry was valued at US$ 1.15 billion in June 2008, and is
expected to grow rapidly at 70 per cent to touch US$ 1.96 billion by June
2009, while according to another report by PricewaterhouseCoopers (PWC),
the Indian VAS market is all set to grow to US$ 2 billion in 2008.

Currently, MVAS in India accounts for 10 per cent of the operator's


revenue, which is expected to reach 18 per cent by 2010. According to a
study by Stanford University and consulting firm BDA, the Indian MVAS is
poised to touch US$ 2.74 billion by 2010.

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Mobile advertising, which is an important VAS segment, is still miniscule in


India. According to analysts, it has the potential to grow at 200 per cent a
year, becoming an important revenue source.

Marketers are increasingly using MVAS as a step ahead of SMS-based


marketing to sell soaps and shampoos, banking, insurance products and also
entertainment services and rural markets are proving to be very receptive for
such marketing.

Further, Venture Capitalists like Canaan Partners, Draper Fisher Juvertson,


Helion, and Nexus India are also innovating with services like mobile
payment options, advertising, voice-based SMS and satellite video streaming.

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.

VAS in India: Past, Present and Future


• VAS constitutes 7% of total telecom revenue for Indian operators.
• SMS consituted 55% of VAS revenue in 2006 [P2P/A2P/P2A, A =
Application, P=Person), the growth was majorly driven by reality shows
like Indian Idol/Kelloggs/KBC etc.
• Digital music (including CRBT and ringtones) constitutes 35% of VAS
revenue.
• CAGR of 44% (2007 – 2010), VAS revenues will reach USD 2,744 mn
(926mn $ by 2007): This is dependent on several factors like regulatory
(e.g. number portability) and non-regulatory factors.
• Growth acceleration will begin in 2009, as various challenges are
overcome, size of mature user base increases, and telco focus on high
end user VAS heightens

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• Bollywood and Cricket is the killer content - though no significant


investment has gone beyond developing local apps or even
content/services.
• SMS/IVR/Music downloads/Internet Apps/Search will see an upsurge;
limited growth of UGC and mCommerce
• Almost half of Indians use ULCH (Ultra Low Cost Handsets)

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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GPR
RS Usag
ge and the grow
wing tren
nd

GPRS searching patttern


ound 21 million
Aro m off the India
an popula
ation use GPRS through mo
obile phon
ne
(So
ource: DO
OT 2008 Report). This show
ws the potential
p ffor the market
m an
nd
GPRS as a sustainab
s ble mode for launching the mobile ap
pplication
n of Mark
ket
ution.
solu

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

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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.

Chart No: 12 Indian Mobile browsing for 2006 – 08

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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Market analysis for LBS

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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• 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.

There are of course technological, infrastructure and other constraints that


have limited the provision of value added services in general and location
based services in particular and these are dealt with at length later in the
paper. But given the conducive environment around the globe, the LBS wave
cannot fail to envelop India.

It is important to note though that country characteristics are different. The


success of personal navigation devices in the US and Europe reflect the high
car density in these countries and the fact that these cars are self-driven. In
major cities of the world, there is one car for every two persons, or less, in
Indian urban areas, this ratio is around one car for more than 250 people.
Cars are usually owned by higher income households and the popular use of
chauffeurs in such families mitigates the need for personal navigation
devices. Meeting the needs of end-users need is critical to the success of a
technology and for India, the applications and models built for the developed
world need not be the relevant ones to provide in the Indian context.

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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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by the user. Though illiteracy is still a concern in rural areas, IVR technology
is looking to overcome this handicap.

Solution provided by LBS


A few examples are outlined below to show that LBS is the appropriate mobile
solution to meet the requirements of specific groups of people, given the
diversity and disparity in the country. These represent just a tip of the
iceberg, when it comes to the potential in India.
• Fishermen can get weather alerts on the high seas, depending on their
location.
• A villager can use LBS navigation within the city to reach his
destination with ease.
• Farmers can get alerts about unseasonal rain that can help them
reduce crop damage for harvested grain, which turns mouldy when wet.
This can have a critical impact on the food stocks, procurement
situation and inflation levels in the current scenario of low grain
production.
• Small businesses can use LBS to keep a check on their mobile field
force to ensure productivity is enhanced.
• GPS systems can help commuters know when the next bus is due at
the bus stop, mobile alerts can be designed to give a commuter specific
information about the bus he needs to catch and its precise location in
real time.
• Fleet management takes on an added dimension in India where drivers
often take shorter routes to avoid national highways, the roads chosen
by them may not be smooth enough for the cargo. This can affect the
safety of the cargo and should be incorporated into the ROI
considerations of operators choosing LBS as an efficiency raising tool.
The option of renting this service on a monthly basis provides a cost-
effective solution for small transport operators.
• In the case of public transport, cell phones of passengers onboard can
be automatically linked to specific emergency call numbers, which can

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be dialed in case of an accident or rash driving. Such a system has


already been made operational in India.

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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Chapter 4

Competitor Analysis

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Competitor Analysis

An LBS developing organization always undergoes a set of common weakness


due to localization and lot of opportunity is lost if a vehicle tracking system is
not developed owing to the fact that the same infrastructure for developing
LBS can be used.

Limitations of a localized LBS system


• It cannot establish its market in one state or cover the market
• It ignores the potential of rural sector
• Cities undergo fast development which finds it difficult to cope up with
trend
• Often LBS requirement is not confined to one travelling within the city,
it is more important for one travelling across cities
• Different cities have different culture and truly diverse more than
within in a state. Therefore the company will have to have different
market plans and different strategies to deal with in different cities

Loss of opportunity if not entered into Vehicle tracking system by a


company in LBS
• Same mobile operator can be used for Vehicle tracking system because
it’s based on GPRS and not GPS
• Vehicle Tracking system market finds an extensive application in the
future
• Existing Fleet management System are having lot of disadvantages of
GPS
• Rural population has lot of potential to accept the system

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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FINGER TIPS in Kerala.


Started in 1994 with a single phone on rent, Fingertips the free telephone
enquiry service by Madhu Bhaskar is now a concern employing 22 telephone
operators and answering hundreds of calls a day.
Whether the call is to find out the chief ministers of various states, or the
address of a phone number in Bangalore, or the phone number of an office in
Thiruvananthapuram? Fingertips provides the required information fast and
free.

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.

The number 2722722 at Fingertips is capable of receiving 20 calls


simultaneously. Madhu Bhaskar, Sreekala and their two children Arya and
Arjun along with the 20 women employees run the service, which is getting
expanded in the meanwhile. Already the firm has started operation in Kollam
at 2799799 and Ernakulam at 2783783.
Revenue for the venture comes from commercial establishments who wish to
have their information disseminated by the agency. They are charged Rs.2
per day.

KERALA GOVERNMENT CALL CENTRE


Official information at one’s fingertips
Everyone hates a visit to a government office. The very thought of spending a
whole day shuttling between different sections confronting indifferent
employees for a simple piece of information and coming out with one’s
purpose still unserved, is at the best, depressing.

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A solution to this “depression” is perhaps in sight. Information is now


available at one’s fingertips, literally.
Just dial 155300 and be welcomed to the government call centre - a one stop
shop for information on a variety of schemes and programmes of different
government departments.
The government call centre at Thiruvananthapuram has been conceived as a
single window ICT-enabled facility for interactive governance. Executives
manning the centre attend to any queries from citizens regarding details of
schemes, programmes, entitlements and welfare benefits of various
government departments.
The “procedures and formalities” for receiving government benefits or to get
hold of that elusive certificate have always been an enigma for the common
man.
So, the call centre executives are also armed with information on such
formalities, sparing people from going around knocking on different doors.
The call centre number is accessible from anywhere in the State at the rate of
a local call.
At present, the call centre provides information on a host of services and
schemes associated with 20 different government departments. Among them
are the Civil Supplies Department, Revenue, General Education, Kerala State
Electricity Board, Kerala Water Authority, Motor Vehicles Department, Local
Self-Government Department, Kerala University, Registration Department, SC
Department, ST Department, Kerala Women’s Commission, NORKA, M.G
University, Electrical Inspectorate, Employment and Training Department,
Industrial Training Department, Cooperation Department, Parliamentary
Affairs Department and Taxes Department (e-filing). The details of various
government projects like National Portal of India Insight, and Malayalam
computing are also available.
The call centre also acts as a complaint registry receiving complaints from the
public and passing it on to the respective departments. A telephone-based
complaint registration under the Chief Minister’s Sutharya Kerala Programme
is also being done at the call centre round-the-clock.

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These complaints are transferred online to the Public Grievance Redressal


Cell of the Chief Minister.
More importantly, the call centre functions round-the-clock except on
national holidays.

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:

Page 29 of 104
Commercialization of Kerala Search Mobile Application

Phone - A 24/7 operator assisted search on a single national number 6999


9999
Internet - www.justdial.com
Wireless - search by SMS on short code 53999

The company has experienced substantial growth from a humble beginning


with a meager investment of $ 1000. Since its inception in 1994, it has
become the numero uno local search brand in India. Over 100,000 SME
advertisers promote their business through Just Dial.
The company’s goal is to create a long-term shareholder value by enhancing
its position as a leading local search destination to different parts of the
globe. Going forward the company intends to leverage its experience and
strength in the International arena.

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.

Page 30 of 104
Commercialization of Kerala Search Mobile Application

The service is currently available on Vodafone, Airtel, BPL, Idea, Aircel,


Reliance, Spice - INR 3/- per message | MTNL Mumbai-INR 1/-per message,
BSNL - INR 0.80/1 per message.

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

Page 31 of 104
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

MUMBAI & CALCUTTA YELLOW PAGE


They are localized LBS systems and suffer from all weakness of a localized
LBS system. It has also not entered into the mobile application market and
the vehicle tracking system market.

Page 32 of 104
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

Once a month every wee


ek end
4 times a 
Once in two  20%
month
month hs
26%
12%

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

6 % of tthe salaried classe


64 es
Mo
obile phon
nes havingg GPRS
a
are havin
ng GPRS
S enable
ed
100% M
Mobile ph
hone but only 52 %
80% 74 18 116
23 h activa
has ated GPRS
S facility.
60%
No
40%
11
11 32 156 Yes
20% 13
W
Whereas 60 % of th
he
0% s
students are hav
ving GPR
RS
ents Salaried Business
Stude Total e
enabled mobile phone
p an
nd
o
only 36 % have
e activate
ed
G
GPRS in ttheir mob
bile phone
e.
GPRS Activated
d

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 and usage


u ra
ate of GPRS

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

Past experrience in using LBS

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.

Butt studentts search


h pattern is little more com
mplex co
onsidering
g its sociial
facttor. As child of his
h family and brought up in a tech
hnological advance
ed
gen
neration he
h suppo
orts certaiin techno
ology rela
ated aspec
cts of his
s family in
which his pa
arents are
e not well versed. A part fro
om this h
he is also influence
ed

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

Students Salaried Businesss Total


Chhart No: 31

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

Under the project “Commercialization of Kerala search mobile application” we


were asked to find out the following.
1. For which all purposes the respondents use the mobile phones?
2. What is the value added services used by the respondents?
3. What would the respondents like to search?
4. Whether the respondents have already tried searching through mobile
phones?
5. What are the current searching sources?
6. Do the respondents know about GPRS?
7. Do the respondents have GPRS in their Mobile phones?
8. Have they activated it?
9. For what all purposes are they using GPRS and their spending
pattern?
10. If the mobile operator is providing a search facility will the
respondents subscribe to it?
11. If any other mobile provider is providing such a search facility will
they switch over to that?
12. What is respondents “search mode” preference?
13. How much are they willing to pay for search?
14. What is the respondents travel pattern?
15. Has the respondent ever felt the need to search while traveling?

Page 49 of 104
Commercialization of Kerala Search Mobile Application

Purposes for which mobile phones are used more frequently


As a prelude to our data analysis we needed to find out the purpose for which
mobile phone s are frequently used. Our findings are stated as follows.

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.

Frequently used VAS (Value Added Services)


Our innovative application KSMA is a Value Added Service. So we intended to
study the Value added Service usage pattern of the sample.

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.

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Percentage of Student population, salaried and business class using the


valued added service - News are respectively 32%, 20% & 26%.

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.

Search preferences of Mobile subscribers


Before launching KSMA the company wanted to know the general search
preferences of the population. This study facilitates the effective formulation
of KSMA search categories. Not only that, but the company can include more
information in those search categories. So our next attempt was to study the
search preferences of the population.

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.

Fortunately all these categories are extensively covered by the company.

One response deserves special mentioning in this report. One respondent


remarked that he preferred searching plumbers, electricians, home nurses
etc. These are categories which are really difficult to search in today’s
scenario. But the company has included those search categories also in
KSMA.

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Made an attempt to search important locations?


Next we wanted know whether the population under study has ever made an
attempt to search important locations using mobile phones. This is to know
whether the concept of searching locations using mobile phones has ever
occurred to them. The inference is furnished below.

Majority (80% - students, 90 – Salaried, 66 - Business) of the three strata we


have taken for study have not made an attempt to search places, ATMs,
hotels etc.

Currently used searching sources


Next an attempt was made to know the searching sources of the population
under study. They were mainly given three sources to select – Search engines,
directories & websites.

For a vast majority of the population we have taken for study the most
preferred searching source is Search engines.

But by using search engines it will be difficult to narrow down to local


searches. While launching KSMA the mobile subscribers has to be made
aware of this fact to get an edge over other searching sources.

Percentage of population having GPRS facility


KSMA can be availed by subscribers having GPRS facility in their mobile
phones. At a later stage Market solutions are going to launch SMS based
search facility also. SO while going for discussion the company wanted to
know the percentage of population under study having GPRS facility in their
mobiles.

Our inference from the study is as follows:


62% of students, 64% of salaried class & 26% of business class have GPRS
facility in their mobile phones.

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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.

How many have activated GPRS?


We have found out the percentage of population with GPRS facility. Our next
step is to find out how many have activates GPRS. For using KSMA an
activated GPRS connectivity is important in the primary stage.

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.

Percentage of population who knows GPRS can be used as search facility


As suggested earlier we wanted to know whether “low percentage of GPRS
activation” is due to “lack of awareness”. If that is the case then the mobile
providers will have to make awareness advertisements along with the launch
of KSMA. We have already found out that majority have not attempted to
search locations using mobile phones.

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.

GPRS usage pattern


Next we wanted to know the GPRS usage pattern. This will help the company
in knowing the general trend to formulate strategies.

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26% of students, 40% of salaried class are using GPRS for sending and
receiving places.

9% of students, 6% of salaried class & 6% of business class are using GPRS


facility for searching 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!!!!

GPRS spending pattern


As more and more companies are entering Mobile market the call rates are
getting slashed substantially. So they have to generate revenue through VAS.

Market solutions wanted to know the GPRS spending pattern of current


subscribers.

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/-

6% of the business class is spending between 100 to 200Rs/-.

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Willingness to subscribe to search facility


Next we wanted to know the mindset of the mobile subscribers. We wanted to
know whether they will subscribe to such a search facility. It is easier to
launch an innovative product like KSMA if you have a conducive
environment.

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.

With an exception of business class majority of the respondents responded


favorably to this question. This is a favorable factor for commercialization of
KSMA.

More from business class can also be enticed by including search categories
relevant to them.

Willingness to switch over to other mobile providers


Next we wanted to know whether KSMA can be used as a marketing tool by
mobile providers to entice its competitor’s subscribers. If the analysis is
favorable they can present this fact to their advantage during negotiation
stage with mobile providers. Unfortunately the result of this analysis is
unfavorable with the exception of business class.

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.

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Preferred mode of search


The company has already decided to launch search facility in GPRS mode. So
it wanted to know the “most preferred search mode” of subscribers.

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.

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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.

Felt the need to search?


The future of the company depends on the one word answer to a single simple
question. Whether the respondents have felt the need to search while
traveling? If the answer is “YES” the can go ahead with its commercialization
plans. If “NO” they have wasted their time, money and effort!!!!

But fortunately for the company the result of analysis is as follows.

73% of students, 60% of salaried people & 54% of business class have felt the
need to search while they are traveling.

Majority of respondents in three strata have given a straight “YES” answer to


the most vital question.

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Commercialization of Kerala Search Mobile Application

Chapter 7

Project Findings & Suggestions

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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.

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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.

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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.

“Sulekha.com” operates mainly in 44 Indian cities. Two cities covered by them


in Kerala are Trivandrum & Ernakulam. According to information from
reliable sources they are on the verge of forming a deal with Reliance (3Rs/-
per search)

The aforesaid potential competitors are concentrating mainly on data like


• Real estate/rentals
• Home services
• Tours/travels
• Cars & Bikes
• Buy & sell
• Jobs
• Shopping
• Computers
• Weddings
• Health care
• Business service

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• Automotive
• Organize an Event

There are two more companies providing services similar to ypkerala.com

“Fingertips” provides A to Z information fast and free. All you have to do is


make a phone call to 2722722 from any mobile or Land line. They get revenue
from various commercial establishments who wish to have their information
disseminated. These establishments are charged Rs 2/- per day.

“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.

Infact “Data listing of various companies” is a source of income as well as


competitive advantage for Market solutions if collected properly in a
systematic way. “The volume of Data” is the source of competitive advantage
for companies like Market solutions. So a strategy should be formulated to
collected data at a minimum cost and it should be achieved in minimum
duration of time. The data are to be constantly updated as and when new
players come to the scenario. This competitive advantage prevents
competitors from entering the arena. The volume of data prevents copycatting
of this service.

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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.

A detailed proposal to recruit MBA students for data collection in disguise of


project study is appended in the annexure of this project report. Those
students proving their mettle in the field of sales can be appointed as
Assistant manager marketing. Students are given training and handsome
stipend before undertaking the project.

Market solutions have to make their data base (ypkerala.com) very strong. It
should act as a “panacea” for all search related difficulties.

Ypkerala is trying to position itself as “Kerala’s everyman’s database”. To


achieve this they have to concentrate on the information requirements of the
common man which are not catered to by other companies. The company has
to cater to the “data requirements” of the common man. The company has to
concentrate more on the below categories.
• Plumbers
• Carpenters
• Timber dealers
• Old age homes
• LPG dealers
• House maids
• Electrician
• Day care centers
• Bore well agencies
• News paper agents
• Coaching institutes

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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 ……..

If Market solutions succeeds in providing reliable data in the aforesaid


categories then it can materialize its objective of becoming “Kerala’s every
man’s database”. Then this KSMA will not be a searching tool to people on
move alone but to all keralites who find it extremely diffcult to find the
information belonging to the above categories.

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

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Commercialization of Kerala Search Mobile Application

professionally it could pose a great threat to ypkerala.com. It is surprising to


note that finger tips have not changed a bit technology wise from what it was
in 1994 when they first launched their service!!!!. They could have gone
online. They could have launched an application like KSMA. But with due
respect to founder of “Fingertips” they lacked the vision to change the way
they operated. They completed discarded the quantum leaps that happened
in technology. So this lesson should be an eye opener to Market solutions.

Market solutions should continuously improve their search service. They


should go for advanced SMS product search. It is an Herculean task but not
impossible to achieve. They have to start with GPRS search and when they
feel that competitors are about to enter the market they have to launch
“advanced SMS based product search” there by making GPRS search
obsolete.

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

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resources it is of our opinion that the company should confine them self to
Kerala.

We would like to furnish the details of some advertisement that can be


telecast through TV to commercialize KSMA.

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.

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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

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Commercialization of Kerala Search Mobile Application

• Private tuitions
• Taxi providers
• Pest removers
• Tank cleaning
• Tailors
• Vastu
• Waterproofing ……. To name a few ……..

“So easy. So quick, so cheap” .search smarter using KSMA

“ALL YOU HAVE TO DO IS…………….”


Explaining the process once more

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)

Second student: “Aliyan paranchathu correcttaa. Let’s go for a movie”


(Dude, what you told is correct, Let’s go for a movie)

Third student: “ Athine pothiyathu vallathum vannitundoo. Engena ariyum?”


(Any new movie realesed? How will we know?)

Forth student: “ Athinallee KSMA – Kerala Search mobile application. 144


category search cheyyaam. Anthoru fast, Anthoru easy, Anthoru cheap
aanenooo…”

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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.

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Commercialization of Kerala Search Mobile Application

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Commercialization of Kerala Search Mobile Application

Advertising Concept – The Seed Plan

Often in many industry a fortune is spend for advertisement. However this


amount spends in many cases seems to be bigger than the benefit acquired.
And in software industry this phenomena is commonly observed. Market
Solutions also falls into the category of a software Industry. For the success
an LBs brand promotion is very important and this calls for advertisement.

So how can we do this advertisement – By posters across the streets? By


advertisements in Media? By promotional SMS or offers? Any of the above
method is useful but it would consume a good fortune.

But we have arrived at altogether a different concept in advertisement called


the Seed Plan. This plan calls for introducing the brand among the most
innovative group of population the youngsters and among them to the college
& school students. This can also be extended to the business establishments
/ enterprise.

The plan is explained by the below flow chart

A college is

CUG is formed within the


college with a common Service
provider

A package of Entertainment and


Free SMS Package

Brand Promotion

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Selection of College/ Business unit


A college is selected based on some criteria such as
1. Strategic Location of the college
Strategic location is found out by the selecting the best area to lay this
seed plan so that the surrounding market can be penetrated. The below
diagram explains it.

Market to be captured

College for laying the plan

Penetration to nearby market

The square represents the market to be captured. The Dark spot


represents the colleges selected and the Doted lines represent that the
market nearby is also penetrated either by entering nearby colleges or
by the local population itself. This location should be justifiable by
means of distance as well as environment of college. All Seeds cannot
be sown at one corner of the market and the penetration done linearly.
There has to be some sort of location if not equidistance to penetrate
the market from all direction.
2. Acceptability & need of the product
The product we are going to introduce to the students must have
acceptability for which the student behavior has to be studied which
calls for a Market Research.
3. Student’s background & Environment to accept the product
If students are coming from a society which do not use mobile? If the
college has less number of students using mobile? If the college has
totally banned the use of Mobile? Such factors need to be considered.

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

1. Reach of the service provider in the particular area


2. Majority of students using the service provider
3. Companies discretion based on the deal with the service provider

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

Strength of the project

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Financial Feasibility

Financial feasibility forms a basic backbone in evaluation of any project plan


because of the fact that no project can be completed without proper fund
flow. To check the financial feasibility the following steps are followed:

Cost of project

Sources of Finance

Calculation of project
Implementation
period

Spreading cost over


the period

Stages of Finance

Calculation of EBIT

Calculation of
Payback Period

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Cost of project
Here the costs are incurred by Web Application, Administrative works, Data
Base Formation and Maintenance, Salary and Overheads & other
miscellaneous expenses.

Web Application: www.YPKerala.com needs to be maintained and


continuously updates according to availability of data and Market
requirement. According to the company reports they are spending Rs 50,000
on an average a month. This is inclusive of the cost levied during its
installation and designing.
Data Base: DBMS (Data Base Management System) is the real core
competency of the company. The large Data about the market was collected
with the help of external agency and staffs of Market Solutions. Each Data
cost at an average of Rs 0.25. The total cost was around Rs 10, 00,000 as per
company report.
Marketing: Here Marketing refers to all activity like advertisement, brand
promotion, data collection by marketing executives, meeting clients,
promotional offer, travelling etc.
Salary: For the complete launch of the search facility Market Solution needs
around 80 employees including the top level Management.
Overheads & miscellaneous: This includes all other costs which are not
calculated or it just means a buffer which can absorb the unexpected cost.

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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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

This sources of funds is however totally irrelevant as far the organisation is


considered since funds have already been mobilized from the above source.
However these funds must be realized at the appropriate stages of the project
which is explained below and this help us to know the stakeholders and the
creditors of the organization.

The composition of stake holders and creditors in the investment made by the
company is shown below

Page 77 of 104
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.

Perriod for Project


P Im
mplementtation
The
e project involves the crea
ation of website
w an
nd web a
application
n. But th
he
ma
ain crux of
o the projject is the
e formatio
on of a Data Base which wo
ould take a
ma
aximum of
o 1 year to cover the entirre markett of Kera
ala. Furth
her, time is
req
quired for tie up wiith majorr mobile players
p an
nd last th
here is the
e need off a
con
nsiderable
e time for developin
ng the ma
arket for Mobile
M Sea
arch faciliity and

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

Page 78 of 104
Commercialization of Kerala Search Mobile Application

months each. Major fluctuations and implementations were not seen on


monthly basis.
Spreading of Cost

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.

Page 79 of 104
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.

oject Cost and Rev


Pro venue
Ma ution is depended on the service pro
arket solu ovider forr their ne
etwork th
his
callls for a revenue
r s
sharing m
model betw
ween the
e business partnerrs. Cellula
ar
ind
dustry as a common
n revenue
e sharing model giv
ven below
w:

Page 80 of 104
Commercialization of Kerala Search Mobile Application

Market Solutions in this case is the Aggregator and application Owner,


therefore total share of revenue would be between 30 % – 40 % of the total
revenue paid by the customer.
Now VAS like Mobile ringtone, Jokes, News etc have been provided to
subscribers at a nominal rate not less than Rs 20. This same rate if charged
to the customer then imagines the value of business the company is going to
have.
The organisation will have a revenue share of Rs 8 per customer. The
population of Kochi is approximately 30 Lakhs. Then if 68 % of the
population subscribe to it (result obtained from the study) then the total
revenue earned by market Solution would be 1.63 Crores.
The source of revenue is not alone confined to the revenue given by the
customer. The sources of revenue are:
• Revenue sharing of the customer
• Revenue earned by listing the business establishment
• Revenue earned by no: of hits in the website

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.

Page 81 of 104
Commercialization of Kerala Search Mobile Application

Calculation of Operating profit / Month

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

Operating cost Cost


Salary 500000
Administrative 100000
Marketing 100000
Total Cost 700,000
EBIT 15,780,000

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.

Page 82 of 104
Commercialization of Kerala Search Mobile Application

The service cost such as application maintenance, website maintenance etc


are not included since it is a self sustaining entity, the cost incurred other
than the salary to professionals is meet by the Hits revenue received by the
website.
No network charges are levied by the service providers as their agreement is to
share the revenue received from the customer.

The Kerala Market


Kerala market
Per No: of
Customer Customers Revenue
LBS 8 10000000 80,000,000
80 20000 1,600,000
Total 81,600,000

Operating cost Cost


Salary 80 @ 20,000 1600000
Administrative 700000
Marketing 1000000
Overheads &
900000
Miscellaneous
Total Cost 4,200,000
EBIT 77,400,000

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

Page 83 of 104
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.

However it is a fact that 68 % of the population as derived from the sample is


a very large figure but even if 30% of the population is subscribing to the
search facility then the payback period would be nearly 31 days or a month.
This shows the strength of this project.

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.

Why EBIT is used?


EBIT is used by investors because the tax structure and financing structure
of the companies being compared may be very different. These accounting
techniques could possibly affect the final profit amount and mask the actual
operating efficiency of the firm. EBIT is used to find the most profitable
company in terms of the efficiency of its operation.
Using EBIT allows an investor to ask, Does Company A make better use of its
resources, and as a result get a better margin on its sales than company B? If
so, then company A is likely to be a better investment over the long term
since it is the more efficient company. Company B may make more money
now because it has an advantage in its financing arrangement or taxation

Page 84 of 104
Commercialization of Kerala Search Mobile Application

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.

Page 85 of 104
Commercialization of Kerala Search Mobile Application

Chapter 9

Conclusion of the Study

Page 86 of 104
Commercialization of Kerala Search Mobile Application

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.

Page 87 of 104
Commercialization of Kerala Search Mobile Application

Chapter 10

Annexure
• Questionnaire

• Recruitment Project
o Project

o Cover letter

o Brochure

Page 88 of 104
Commercialization of Kerala Search Mobile Application

G Listed!!! Get Noticed!!


Get N !!

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

To win thes se prizes all you have


h to do
d is fill up the q questionna aire
serriously an
nd log on to
t www.yp pkerala.com, use the
t search
h facility and
a
find three categorie
c es of dataa missing g in the database
d and send d an
email with thhe missin
ng categorries to info
o@marke etsolution
ns.com

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

Fiinding it diifficult to Search


S hote
els, restau
urant, shop
ps, banks, Atm’s,
pllaces and lot
l more ab bout keralaa WHILE YOU
Y ARE ON MOVE? All A you
haave to do is Log on to www.y ypkerala.c com and d download Kerala
se
earch appliication soft ftware to yo
our mobile and that ttoo free of cost.
c

To
o downloadd type http
p://www.ypkerala.ccom/m in y
your mobille from
an
ny mobile browser
b

Thhis offer is valid for a limited pe


eriod only!!!! Downloa
ad the appllication
today itself and
a searchh SMARTE ER!!!

*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

Page 89 of 104
Commercialization of Kerala Search Mobile Application

Tired of searching shops for buying what you really wanted?


Cloudy about the location of the place you want to visit?

Want to search smarter?

Through GPRS (Internet) you can search as follows

Or
Through SMS search facility like this

Type and send SMS: Atm SBI, Kaloor


Answer you get on mobile: List of all Atm’s in kaloor
Type and send SMS: Type ‘M’ and send the message
Answer you get on mobile: More list of Atm’s of SBI at kaloor
Similarly, Send another SMS for required information

So easy and so fast to search anything you want!

Make the choice now and please visit our website www.ypkerala.com for
detailed demonstration.

Page 90 of 104
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!

Name : Your name Gender: Male Female

Occupation : Your current occupation

Income : Below 10 thousand Age: Below 18


(Per Month) 10,000 to 25,000 18-25
25,000 to 40,000 25-35
40,000 to 60,000 35-45
60,000 and above Above 45
Nil
Your email id
Email :
Mob : 9xxxxxxxx

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

Between 3 to 5 Years 5 Years and above


2. How many mobile providers have you tried before?
1 2 3 4 5 6 and above

3. Which of the following purpose do you use mobile phones for? (Please
tick whichever is applicable)
To call friends and family To SMS

To listen to music/ Watch video Browse internet


Specify
Others
4. Which are the value added services you are using now?
News Caller tunes Astrology Cricket updates

Ticket booking Stories tell Jokes Food tell

Ring tone download Beauty tips Travel

Others Specify

Questionnaire  Page 1 
Page 91 of 104
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

Exporters Food & Dine Governement

Consultancy services Education Entertainment

Health care Others Specify

6. Have you already tried searching places, Atm’s, hotels etc through
mobile phone? Yes No

7. What are your current searching sources?


Search engines like Google, yahoo Official/specialized web sites
Specify
Directories Other sources

8. Does your mobile phone have GPRS (Internet)? Yes No

9. Have you activated GPRS (Internet) in your 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

Stock prices, train timing etc. Other purposes


12. How much are you spending on GPRS per month

Upto Rs 50 Rs 50 – Rs 100 Rs 100 – Rs 200

Rs 200 – Rs 500 Rs 500 and above

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?

SMS based services Call and know offer

Mobile GPRS (internet) based service


Questionnaire  Page 2 
Page 92 of 104
Commercialization of Kerala Search Mobile Application

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

Mobile GPRS (Internet) based services 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

18. How often do you travel on weekends?

4 times in a month Twice in a month

Once in a month Once in two months


19. Have you ever felt the need to search while travelling?

Yes No

Comments:

Questionnaire  Page 3 
Page 93 of 104
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

Page 94 of 104
Commercialization of Kerala Search Mobile Application

PROJECT PROPOSAL

1. Introduction – idea incubation


As per the directions of Mr. Deepesh George, CEO – Market Solutions & Dr. Manoj
Edward, Faculty member, School of Management studies, CUSAT the undersigned
persons were entrusted with the responsibility of “Finding Budding sales executives
with a passion to excel from Various Management institutes by providing them an
opportunity to prove their mettle” as a part of academic project. To be more precise
the undersigned persons were directed to figure out a feasible plan to recruit Young
street smart MBA’s who can actually sell, who can meet monthly sales targets in
today’s competitive market.

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

2.1. Listing the colleges


“Well begun is half done” So to start with, we need to short list the names of
Management Institutes which can be our recruitment sources. We suggest that the
institutes selected should not be from the list of premier B- Schools. Let us target
ordinary business schools. Here we would like to narrow down our list to three
institutes namely,

1. SNGITS
2. Bharatmatha College
3. ICFAI, Kochi

Page 95 of 104
Commercialization of Kerala Search Mobile Application

2.2. Designing brochures and advertisement


After this we need to design brochures and an appropriate letter addressed to the
director of the respective institutes both in hard and soft copy formats. Before
sending this an attempt has to be made to penetrate in to the informal student
networks in the Institutes. For this either one or all of the below strategies can be
adopted.

1. Advertisement in the group Email or groups created by the students of the


college
2. Advertisement through social networking sites
3. Advertisement posted to the college notice board

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.

2.4. Criteria for selection


The interested students has to be short listed based on the below criteria.

1. Street smartness
2. Sales aptitude
3. Willingness to work hard
4. Systems Knowledge

2.5. Recruitment panel

Page 96 of 104
Commercialization of Kerala Search Mobile Application

We suggest constituting an interview panel consisting of Dr. Manoj Edward, Dr.


Baby P.K / One company representative and Mr. Vivek Menon / Mr. Althaf. Official
request has to be sent to Dr. Manoj Edward & Dr. Baby P.K for availing their
services.

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

2.6.2. In the course of project


1. Overcome difficulties confronted while making the sales call
2. Monitoring the students and giving constructive feedback
3. Steps to avoid effort duplication

2.6.3. Post project training


The aforesaid program is imparted to candidates inducted by the company on
successful completion of the project. This consists of:
1. Acclimatization to the organization culture and values
2. Placement and defining area of responsibility
3. Training in grey areas found during the project

2.7. Tips to be given to students while making sales call


While making sales calls the students have to be directed to introduce themselves
as Assistant Manager under training. This is very important from Sales call point of
view because otherwise the sales prospect will not take the presentation seriously.
They should be advised not to mention “academic project” anywhere in their sales
presentation. It is here by suggested to issue “Assistant manager Visiting cards” to
students to establish credibility.

2.8. Remuneration to students who has not achieved sales targets


1. If a student is not able to achieve his 100% target, then a pay package
commensurating with the sales target achieved is suggested.

Page 97 of 104
Commercialization of Kerala Search Mobile Application

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.

2.9. Motivation Techniques


Occasional SMSs and surprise gifts can motivate students to improve their
performance levels.

2.10. Coordination of project activities


We suggest that an employee of Market solution should be deputed to coordinate
the activities of the students. Market solutions can also request the institutes to
assign at least one internal project guide to its students.

2.11. Innovative Idea Generation


After the stipulated time period the students should be advised to submit a project
report based on their findings irrespective of whether they have achieved the quota
assigned to them or not.

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.

2.12. Suggestion to avoid effort duplication


In a scenario where no sales territories are given, the chances for effort duplication
is very high, that is the same prospect might approached by two or more students.

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.

2.13. Training course contend


Last but not the least, nobody expect the assistant manger marketing under
training to be a tech savvy but at the same time he should have a basic

Page 98 of 104
Commercialization of Kerala Search Mobile Application

understanding of the technological concepts involved like GPS/GPRS etc. So while


imparting training emphasis should be given to technological aspects also.

2.14. Duration of the recruitment plan


The breakup of duration is given below

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

S.No Activity Duration


1 Training 3 Days
2 Project work 30 Days
3 Report Submission 7 Days
Total 40 Days

Total Duration of the project: 19 + 40 = 59 Days

3. COST BENEFIT ANALYSIS

1. By implementing this scheme the company is generating a profit of (10


x 1500 x 35 – rough estimate – commission) Rs/- if ten students
achieve their targets. The people achieving targets can be more than
what we have stated here.

Page 99 of 104
Commercialization of Kerala Search Mobile Application

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 

Expected profit  Revenue ‐ Expenditure     173300 

Page 100 of 104


Commercialization of Kerala Search Mobile Application

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

1. This plan can be implemented in other districts and other states


2. Even though we have listed out three institutes we would suggest to
go to SNGISTS for recruitment as we have very “reliable sources”
which would enhance the success of the project.
3. This plan has to be executed at the earliest at least by the second
week of February failing by which the students will not get sufficient
time to pursue the project sincerely, effectively and efficiently.

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Commercialization of Kerala Search Mobile Application

05 February 2009

The Director

Dear Sir,

SUMMER INTERNSHIP FOR MBA STUDENTS

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.

1. The project work should be on topics assigned by the organization.


2. Duration of the internship will be for a maximum of 40 days
3. The candidate will be selected on the basis of a personal interview and if the
number of willing candidates is exceptionally large, the candidates will be
short listed for the interview after a group after a group discussion.
4. Training will be provided to selected students for a period of one week.
5. During the course of project students will be allowed to use the resources of
the project.
6. Students are provided an opportunity to earn while they learn.
7. The student should give an undertaking stating that they shall not disclose to
outsiders or use any information that may come across in the company during
the course of project.
8. The students have to work under the supervision of an authorized official of
the organization.
9. The student will be required to submit two hard copies and one soft copy of
the project report to the organization and the same would be property of the
organization and the organization may use it any manner it deems fit, with out
seeking prior approval from the students.

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

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Commercialization of Kerala Search Mobile Application

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Commercialization of Kerala Search Mobile Application

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