Marketing Plan

I-BOX
Power of Internet
TV Users : 130 million
Internet subscribers : 26.19 million

Internet Penetration

140
120
100
Penetration in mn
80
60
40
20
0
TV penetration Internet
penetration

Introduction
Information gap

Huge market opportunity

I-BOX
STP
 Rural Students

Consumption TG: Students

◦ Residing in rural areas.
◦ Aged between 9-16 years of age.
◦ First generation exposure to Information
Technology
Communication TG: Chief Wage Earner
◦ Having PC at home is an aspiration.
◦ Internet is viewed as costly due to upfront
payment required in terms of PC cost.

TARGET GROUPS
 Lower Middle class families

Lower middle class families which view

internet as a new source of entertainment
but,
◦ View operating a computer as a complicated
process.
◦ And buying a computer as a costly affair.
◦ Also payment of bills and taxes online.

TARGET GROUPS- contd.

 Professionals

Using internet after going back from

work:
◦ Online videos/information over a larger screen
◦ Integrated mail to get mail alerts while
watching TV

TARGET GROUPS- contd.

 Semi-Skilled workers - abroad

About 2.2 million Indians abroad

Semi-skilled or unskilled labor category
Providing seamless video/voice chat for
the relatives of these workers, who are
not tech savvy.

TARGET GROUPS- contd.

 S. No. Target group Positioning

1 Students [9-16] Gateway to a brighter future

2 Lower middle class Entertainment and information device

families
3 Professionals Connectivity at leisure

4 Families of Migrant One touch connectivity to your loved ones

workers

Positioning
PPPP
i –Student

i –Gyan

i- Connect
Single click access to features like chat, stocks, sports, etc., provided
to make usage easy.
On the lines of yahoo widget application.
Bluetooth connectivity

i -Pariwar
Web camera and headphone

Product i Box “ Internet on TV”

Segment 1- Rs 5000
Segment 2- Rs 5000
Segment 3- Rs 6500
Segment 4- Rs 5500

Price
 Central hub in the suburbs-rural area- retail
distributor
 Channel partners
 Electronic stores in rural areas
 Demo products with detailed specification handouts
with colour photos of the product in the stores
 Customer care 24x7 centers
 Special trade terms for retailers that place volume
order
 Online order

Place
 Advertising campaign called: “ Mera Desh Mera
Internet ”.. “En desam En Internet”
“information, communication,
entertainment and education”
 Stalls would be put up in front of showrooms and
free demo surfing
 Demos should be conducted in average income
and government schools

Promotion
One week free internet training in conjunction
with popular institutes that offer computer
training should be given to the customers.
Attractive EMI schemes will maximise the
penetration.
Service agreement with internet service
providers to offers bundled offers along with
the device can be provided and part of the
payment can be got as recurring revenue
stream.

Promotion
Build Brand strategy through product
strategy

Brand logo and symbol will be displayed

on the product and packaging

Branding
Market Potential
&
TRIAL RATE
TV Users = 130 Million
Internet subscribers = 26.19 million
Gap = 103.81 Million
Assuming that 40% of 1040 lac will be our
target population = 416 Lac
Sales This Year= a*(1-a)t-1*Maximum
Available Market

Market Potential
Largest number of people tries the
product in the first few periods
Supported by heavy advertisements and
promotions
Assume a decay constant “a” as 0.01

Assumptions
 Year Maximum Sales ( Trial) Cumulative
Available (in Lac) Sales (in
Market (in Lacs)
Lacs)
1 416 4.16 4.16
2 411.84* 4.077216 8.237216
3 407.762784 3.996483046 12.23369905
4 403.766301 3.91774038 16.15143943
5 399.8485606 3.840929319 19.99236875
*411.84=Max Available Market Last Year- Cumulative Sales Last Year(416-
4.16)

Sales
 Sales(Trial)
4.2

4.1

3.9
Sales(Trial)

3.8

3.7

3.6
1 2 3 4 5

The product is simple and innovative. Hence, large no. of people

will try the product in the first few periods as shown in the figure
Sales graph
Porters Five Forces
New
New
Entrants
Entrants

Buyers
Industry
Industry Suppliers
Buyers Rivalry Suppliers
Rivalry

Substitutes
Substitutes
 of Buyers
• Low Bargaining power
• Low for Generic component suppliers of Suppliers
• High for Crucial components Bargaining power
• Intel Dot Station Substitutes
• Low cost computers Treat of
• Since the product caters to a lucrative
Entrants
market; the treat of new entrants is high
Treat of New
• Competition is present
• Products like WD TV Live, MyBox HD, IETV, Industry Rivalry
etc..,
• Does not target the rural mass or students
IRR
&
BEP
  Year1 Year2 Year3 Year4 Year5

Sales Revenue 20800 20386.08 19982.42 19588.7 19204.65

Sales in units 4.16 4.077216 3.996483 3.91774 3.840929
less variable costs (1500*sales) 6240 6115.824 5994.725 5876.611 5761.394
contribution margin 14560 14270.26 13987.69 13712.09 13443.25
less fixed costs 104.5 18.5 20.5 21.7 23.1
income from operations 14455.5 14251.76 13967.19 13690.39 13420.15

Sales-Breakup
 Excise Adjustment Adjustment
Tax(10% In for for Present
Year Revenue India) EAIT Inflation(10%) Value(8%) NPV

1 20800 2080 18720 0.909090909 0.925925926 17018.18

2 20386.08 2038.608 18347.47 0.826446281 0.85733882 15163.2

3 19982.42 1998.241523 17984.17 0.751314801 0.793832241 13511.78

4 19588.7 1958.87019 17629.83 0.683013455 0.735029853 12041.41

5 19204.65 1920.464659 17284.18 0.620921323 0.680583197 10732.12

Total 68466.69

Internal Rate Of Return Calculations

 Adjustment for Present
Present Value of the
Year Variable Cost Fixed Cost Total Cost Value(8%) Cash outflow
1 6240 104.5 6344.5 0.925926 5874.537
2 6115.824 18.5 6134.324 0.857339 5259.194

3 5994.724569 20.5 6015.225 0.793832 4775.079

4 5876.61057 21.7 5898.311 0.73503 4335.434
5 5761.393979 23.1 5784.494 0.680583 3936.829

Total 24181.07

Present Value of Cash Outflow

PV of Inflow = PV of Outflow
68466.69 = 24181.07 (1+r)^5

IRR=23.14%
 Sinceit looks to be a profitable venture, its good
to take loans from bank at a rate much lower
than IRR rate.

 We can go for venture capitalist showing the IRR

returns

IRR Calculation
Thank You