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Raghav Agarwal 09IB-041 Rahul Chatterjee 09IB-043 Rohan Agrawal 09IB-047 Saahil Juneja 09IB-049 Anuj Kalra 09IB-061
Target group for these paintings have been elite group or high net worth individuals in India. Digital paintings are an innovation simply being evolved to bring art into the mainstream of Indian society. The idea is to take the paintings of eminent artists to the broader segment of the Indian society who are either art enthusiasts or want to flaunt affordable luxury. The art works will be licensed from eminent painters and their digital illustrations will be presented in the digital frames. With the use of LCD or more advanced technology high quality illustrations can be produced. The top .5% segment of Delhi NCR and luxury, First class hotels are being targeted with this product. Total households targeted are 60750 and 36 hotels. For the first 3 years we plan to operate in Delhi NCR only. We will use interior designers for getting clients on revenue sharing model. A web portal will be established for easy order and display. We will actively promote and display our product in art galleries.
Pixelart has been established by five very innovative entrepreneurs of IMT-IB batch 2011. The company has the philosophy of combining new age technology with traditional art works by budding artists to make art affordable to a larger segment of society. The company is striving to first exploit the lucrative market of Delhi NCR. The company also believes in CSR and has a goal to promote art from budding and lesser known artists.
Mission and Goals
Pixelart¶s mission is to be the leading vendor and marketer of digitized paintings in India. Pixelart wants to provide complete digitized painting setups to consumers including the plasma screens and the high quality digital licenses of the latest artwork. The goal is to make works of art affordable to more people and to give an opportunity to emerging artists to exhibit their talent and gain exposure. Pixelart intends to bring modern Indian art to Indian homes using the latest digital technology.
1. Obtain financing for purchasing licenses of known faces in Indian art apart from the new artists. 2. Reduce Plasma screen costs by at least 25% and pass on half the benefit to customers. 3. Increase sales by at least 30% for the first three years and at least 50% for the following two years.
Non Financial Goals
1. Own licenses for at least 75 works belonging to emerging and mid-career artists and at least 15 belonging to established Indian artists. 2. Spread operations from Delhi-NCR to other major cities including Mumbai, Kolkata, Chennai, Bangalore and Hyderabad. 3. Develop a successful and secure Internet site providing product details and channel for sales. 4. Form a large network of partners including prominent art galleries, interior decorators and artists.
Pixelart wants to capitalize on the first mover¶s advantage in the Indian market and build a strong foothold developing the following core competencies in the process: High-quality digitization of original licensed artwork using latest camera and scanning technology; and advanced techniques including digital stitching. Panel of art connoisseurs and experts for making decisions related to investment in upcoming and established artist. Marketing of acquired licenses through a strong network of interior decorators and art galleries. Developing a reputation among emerging artists as a credible platform for exhibiting their work. Making contemporary art affordable
Ease of access and payment through interactive website. High-quality digitization capability. High-quality Plasma screens obtained from single manufacturer, ensuring good quality control. Limited cash flow. Will have to look for credit options for high funding required initially. Too much reliance on expert panel, owners themselves not experts on art. Reliance on single manufacturer.
Boom in Indian art scene in the recent years with price doubling in 4-5 years. Increasing income levels especially among urban youth Understanding and owning art considered a status symbol amongst the rich. Use of modern technology. Expansion into related services in the future.
Product is not a substitute for real art work for art lovers. Canvas prints of original paintings Purchase of paintings as an investment rather than ownership-related-prestige Pirated and fake prints
There are two types of marketing goals prevalent before us: Short Term Goals Long Term Goals
Marketing Objectives (Contd.)
Short term Goals: The fundamental objective of PIXELART is to first create awareness about the product and its format which is first in its class and also to gradually increase the sales volume. Creating a good image of the company is of paramount importance. Profitability is our primary concern. Long Term Goals: Expanding beyond the NCR region. Collaboration with artists of national and international importance. Retention of our loyal customers. Introduction of a sensor based GUI that changes the paintings in its memory automatically according to the ambient physical conditions and mood of the surroundings.
World Region: ASIA Country: INDIA City: DELHI-NCR
Demographic Factors for Households
Age: 25+ Gender: ANY Household Income: MORE THAN 1 LAKN/MONTH Occupation: SELF-INCOMED; CORPORATE EXECUTIVES; BUSINESS HOUSES; ENTERTAINMENT INDUSTRY PROFFESSIONALS
Social Class: UPPER-MIDDLE AND UPPER-UPPER ife Style: ACHIEVERS ersonality: EXPRESSIVE; STYLISH; OPEN MINDED; CREATIVE
We have dual target of reaching civilian population and branded hotels (Luxury and first class). In the first phase which will last for 3 years we will target Delhi NCR. Socio-economic classification of households in Delhi NCR
Particulars Total Population No. of households (avg. 4 members) Target Percentage Target Population Value 48600266 12150066 0.5% 60750 60750 Total
*percentage calculated on basis of consumer demographics (Source: Wallet Monitor, IMRB International)
Particulars Total Hotels in Delhi NCR r irst Class Target So r e: HVS International .h sinternational. om Value 140 4. Total
Branded hotels in Delhi NCR represent a major target segment for o r inno ati e prod t. Hotels ha e good finan ial strength and strong desire to appeal their g ests. We ill target l r and first lass branded hotels a ross the region
Characteristics of the Paintings
The paintings will be available only through the internet (company website). They will be original rendition of the art wherein a copyrighted scanned image of the painting will be used. The digitized format of the painting will be compatible with only the technology provided in the GUI. The size of the painting is going to be modified to have the best fit for the GUI screen. Certificate of originality for the paintings is going to be provided for every purchase
Specifications of GUI
Resolution: 1920 X 1820 pixels Size: Fixed sized GUI of 42 inches diagonally. Memory space: Depending on the model the memory space will be either 125MB; 256MB; 512 MB or 1 GB. Format: The GUI will only be compatible with paintings with the unique extension provided by the company. Incorporated technology will allow a slideshow representation the paintings if multiple paintings are stored in the GUI¶s memory.
Direct Marketing Channel The company website http://www.pixelart.com will serve as the direct point of contact for the customers. This website will be a comprehensive database of all available paintings and will contain details of the artists along with the prices. The paintings will be on display. The GUI will also be on display in the site along with all the necessary details with the specifications and technicalities. Consumers can buy the paintings and the GUI from this portal.
Indirect Marketing Channels
Strategic tie ups with Interior Designers: The
target market is fashion conscious and aesthetically inclined. Tying up with interior designers is a logical step to cater to our TG. According to prevailing market conditions an interior designer demands a cut off of about 3% to 5% for any luxury goods sold through their reference. We will offer a cut of 3% on the selling price of the product. Advertising and showcasing in galleries: The product (GUI and digitally formatted painting) can be displayed at various galleries which showcase the products of budding artists. Advertisements of the web portal alongside the product can be done to raise awareness. Through contracted artists: Art shows of the contracted artists can serve as a channel of marketing our product. The personal web sites of the artists under consideration will also be used as a iral Marketing strategy of the company¶s web portal.
Online Portal: Here, as we are targeting only the NCR population so we plan for the delivery within 3 working days from the day of the order. For the first time consumers the GIU would be sent across within 3 working days, whereas for the consumers ordering available digital painting this would be done within 2 working days from the day of order. Interior Decorators: This again would be an important medium to distribute our product to our potential customer base. These interior decorators have their boutiques and display shops from where the buyer can directly pickup the GIU and then log on to our online portal and request the desired digital paintings
is the list of potential decorators we have zeroed in on for strategic tie-ups. This distribution strategy is only for the first 3 years. After that more aggressive distribution strategies will be formulated based on demand. Electronic retail stores can be targeted in the future for stocking the GUI.
Decorator Sudesh & Associates Shriji Mercantile Co.
Sonali Decor Design Singh Decors New Tech Interiors & Art Gallery MLS & Co. Parichya Interiors S.G. Lakhanpal & Associates
Modern Design Consortuim Concept Designers
Our promotion planner takes into account: The type of market Sales promotion objectives Competitive conditions Cost Effectiveness of the promotion tool
Tie-in Promotions: We will use the leverage of already established Interior Designer brand names to sell our products. It will be a win-win situation in which they will get a cut off of 3% on the selling price. Point of Purchase Displays and Demonstrations: Demonstration of the GUI at galleries portraying art work of budding artists. Product Warranty: The GUI will come with an explicit warranty of 5 years. Advertisement in life style magazines: we have targeted 3 life style magazines with a healthy distribution rate in the NCR region for advertisement of the product and the web portal. They are namely Architectural Digest; Inside-Outside; Best Interiors.
Cost based pricing: It involves adding a markup to the cost of the product. Competition based pricing: Setting prices based on the prices the competitors charge for similar products is called competition based pricing. Consumers will base their judgments of a products value on the prices that the competitors charge for a similar product. alue based pricing: In value based pricing price is based on the buyers perception of value rather than on sellers cost. An increasing number of companies are basing their price on the products perceived value.
Pricing for LCD screens or GUI
alue to the customer for a 42¶¶ LCD screen is Rs. 50000 Doing a cost analysis of the same we arrived that it can be obtained from the manufacturer at a cost of Rs. 35000. Hence we will be providing the LCD screen at a price of Rs. 40000 sharing the benefit of Rs 15000 between the customers and ourselves in the ratio of 2:1.
Pricing for the digitized painting
The pricing for the painting will be on a differential basis. Every painting is distinct in its own and also the copyright deals vary from artist to artist. It depends on the negotiations and other deal factors. So the cost details are: Digitization cost: Rs 2000/ Painting Licensing cost: 10% of the market value of the painting plus 7% to 15% as royalty The price of the painting will lie in the range of 30% to 60% depending on the popularity and exclusivity of the painting.
Particulars 2010 % % 2011 2012 change change
Households Hotels Total sales
608 70 678
790 81 871
1027 93 1120
Household Customers Particular Target households* 1st year target sales Yearly increase 2011 sales 2012 sales Total market captured 2012 end
Hotel Customers Particular Total hotels In Delhi NCR# Luxury First class Total 2010 sales 2011 2012
value 60750 1% 608 30% 790 1027 4.4%
alue 140 24.8% 27% 73 70 84 97
H S International
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