Note:
This project is from way back in 2011, so today the content might seem dated
considering the pace at which technolog...
Computing System Rental Service for
Long-Distance Train travel in India
Techxpress
THE CONCEPT
• Rental service for Entertainment / work systems on Outstation
trains.
•Rent at starting point – Use on journ...
THE OFFERING
Features
Internet
& Voice
Service
Webcam
& video
Chat
Movies
Gaming
E-books
& Audio-
books
Music
Satellite
Ra...
Product Price in INR
Aakash – low-cost Tablet PC 2,999.00
Reliance 3G Tab 12999
WESPRO 7" Netbook Laptop WIFI USB N720 800...
THE BUSINESS OUTLINE
•Railways
•Travel Sites
•Travel Magazines
•Online Media
•Website
•Physical Stores / counters
at all m...
CAPTIVE AUDIENCE NETWORKS
 A broadcast-like medium to deliver informative content to viewers while
they wait at a venue.
...
OUR CONCEPT
•Replication of the mass CAN model in an individual, one-to-one
format.
•Travelers rent the device at the begi...
We Procure the Device in bulk from suppliers
Advertisers provide us with content + Fees
Content is Streamed to the device ...
THE TARGET GROUP
 Travels by outstation trains, AC / 1st class / Chair Car (Can later be
replicated for General classes.)...
TARGET PERSONA #1
 Mona is a 23-year old IT-engineer who works in Mumbai. She
travels home to Delhi for a few days every ...
 Jay is a 36 year old businessman from Bangalore. He is headed to
Kashmir on vacation with his 5-year old daughter, Sara....
Step 1.
Online
User Orders device
via Website
Inputs Personal
Details and Journey
Details
Makes online
payment of Rental
f...
THE PITCH
*As compared to installing permanent on-board entertainment systems in trains
For Advertisers
• One-to-one
adver...
MARKETING
•Irctc.co.in
•Possible Tie-ups with:
•Travel Websites like Makemytrip, Yatra.com, etc.
•Travel Agents
•Advertisi...
POTENTIAL CHALLENGES
•Pilferage / Damage.
• Software / Hardware issues & Troubleshooting mid-journey.
• Inventory manageme...
• Single-use pin number – travel-time based pricing.
• Limited validity period, system locks and can no longer be accessed...
TACKLING INVENTORY & MAINTENANCE ISSUES
•Stock dispatched to respective Station stores only when
order is placed.
• Small ...
Additional
Rental
Formats
Single CAN
Plasma
screen
CDs/DVDs
Games
Books/
Magazines
E-book
Reader
Potential for expansion
-...
THE FINANCIALS
Assuming implementation in 2 major types of trains in India
Rs.
Revenue from rent 150000
Income from Adv. 30000
Total Revenue 180000
Fixed Cost
Cost of Tablet PC 150000
Website creat...
REFERENCES
http://features.ibnlive.in.com/features/cjawards/sponsor_livemedia.php
http://indianwebstartups.com/StartupDeta...
THANK YOU
Ankur Shrivastava
Saket Bihari
Sharon D’Costa
Travel entertainment service business model for Indian Railways
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Travel entertainment service business model for Indian Railways

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Project for concept show 'DMAGICS'. We proposed a model for an innovative on-the-go entertainment rental service for long distance train travel in India.

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  • Type the title of the project, followed by group members’ names.
  • Identification of market, segments: present scenario
  • Social, market, sustainability, environmental impact : ethical relevance
  • Travel entertainment service business model for Indian Railways

    1. 1. Note: This project is from way back in 2011, so today the content might seem dated considering the pace at which technology has evolved. However, something similar did come into existence in India a few months later. (Unfortunately not by us, but it’s good to know that the idea had merit. )
    2. 2. Computing System Rental Service for Long-Distance Train travel in India Techxpress
    3. 3. THE CONCEPT • Rental service for Entertainment / work systems on Outstation trains. •Rent at starting point – Use on journey - Return at destination •Based on the Captive Audience Network Model
    4. 4. THE OFFERING Features Internet & Voice Service Webcam & video Chat Movies Gaming E-books & Audio- books Music Satellite Radio Booking Hotels/C abs, etc.
    5. 5. Product Price in INR Aakash – low-cost Tablet PC 2,999.00 Reliance 3G Tab 12999 WESPRO 7" Netbook Laptop WIFI USB N720 800 MHz 256 MB 4071 Acer Emachine Mini Netbook Notebook 1GB 250GB 14,749.00 ASUS Eee PC X101H Netbook - N455 / 1GB / 250 GB 11,495.00 **Work with Economies of Scale to reduce costs. THE HARDWARE
    6. 6. THE BUSINESS OUTLINE •Railways •Travel Sites •Travel Magazines •Online Media •Website •Physical Stores / counters at all major Stations •Procurement in bulk •Technology (software, streaming media, etc.) •Maintenance •Inventory & Store Space •Insurance •Misc. •Advertisers •Customer - Nominal Rental Fee Revenue Expenditure PartnersResources
    7. 7. CAPTIVE AUDIENCE NETWORKS  A broadcast-like medium to deliver informative content to viewers while they wait at a venue.  Use of plasma displays and LCD screens to deliver content that is relevant to the target audience.  Common locations include medical centre waiting rooms, train and bus stations, and retail checkout areas.  The Technology - a display screen, a media player, and a content management server connected to the media player over a network.
    8. 8. OUR CONCEPT •Replication of the mass CAN model in an individual, one-to-one format. •Travelers rent the device at the beginning of their journey. •Use the device on the train journey, for entertainment or work purposes. •Paid content / ads streamed to device over a wireless network. •Return the device at destination
    9. 9. We Procure the Device in bulk from suppliers Advertisers provide us with content + Fees Content is Streamed to the device via a network Alternatively, manually installed/updated into each device. Customer Orders the device via our website & inputs journey details Customer collects the device at starting point of journey Through journey - Customer uses the device, ads are streamed at regular intervals Customer returns the device to store on arrival at destination point + Collects Deposit Payment of Deposit either online or physical -on location THE VALUE CHAIN
    10. 10. THE TARGET GROUP  Travels by outstation trains, AC / 1st class / Chair Car (Can later be replicated for General classes.)  Is technology savvy.  Mainly students, business travelers, tourists.  Long Distance travel, especially day travel, including long idle periods.  Can afford to spend approx. Rs 2000 as a refundable deposit (In addition to a rental fee of approx Rs. 100)
    11. 11. TARGET PERSONA #1  Mona is a 23-year old IT-engineer who works in Mumbai. She travels home to Delhi for a few days every month.  Mona boards the Mumbai Rajdhani Superfast Express from Mumbai at 4pm and is scheduled to arrive at Delhi at 7am the next day.  She usually spends her time on the train reading her favorite novel, listening to her iPod and worrying about the work piling up in the office while she’s away.
    12. 12.  Jay is a 36 year old businessman from Bangalore. He is headed to Kashmir on vacation with his 5-year old daughter, Sara.  They board the Kashmir Kalli Express from Bangalore at 5am and is scheduled to arrive at Kashmir at 11pm the next day.  It is a long journey, and little Sara gets bored and restless. She carries her dolls along on the journey but misses her video-games at home. TARGET PERSONA #2
    13. 13. Step 1. Online User Orders device via Website Inputs Personal Details and Journey Details Makes online payment of Rental fee + Refundable deposit (Optional) Step 2. At Departure User picks up the device from the Store on Starting Rly. Station Makes payment of Rental fee + Refundable deposit (If not paid online) Receives Temporary Key Step 3. During Journey User Inputs temporary key and unlocks device User uses device throughout journey Ads are streamed to device Step 4. On Arrival Validity of Key expires + system self-locks User returns device at Store at that Station Gets a FULL Refund of Security Deposit PROCESS FLOW
    14. 14. THE PITCH *As compared to installing permanent on-board entertainment systems in trains For Advertisers • One-to-one advertising to captive audience • TG captive for long periods. Ample time for ad messages to register • Large Audience For Travelers • Free usage of a high- tech entertainment device • Payment only of a fully Refundable security deposit. (and a nominal rental fee.) For the Railways • Solution to major customer pain point. • Relatively low-cost, outsourced business model* • No /nominal charge to customer for high- tech on-board entertainment • Competition to Airlines in this respect
    15. 15. MARKETING •Irctc.co.in •Possible Tie-ups with: •Travel Websites like Makemytrip, Yatra.com, etc. •Travel Agents •Advertising at major railway stations
    16. 16. POTENTIAL CHALLENGES •Pilferage / Damage. • Software / Hardware issues & Troubleshooting mid-journey. • Inventory management (various locations) • Content - monitoring and updating on each unit. • Low public familiarity with technology.
    17. 17. • Single-use pin number – travel-time based pricing. • Limited validity period, system locks and can no longer be accessed. • Security Deposit equal to the cost of the Device, Fully Refundable • Personal Details collected at time of order. • Security Deposit + original documents. • Insurance • GPS/RFID TACKLING SECURITY ISSUES
    18. 18. TACKLING INVENTORY & MAINTENANCE ISSUES •Stock dispatched to respective Station stores only when order is placed. • Small volumes of Inventory kept in stores on all major stations for Spot rentals. • Toll-free technical support number / availability of a technician in major trains for troubleshooting.
    19. 19. Additional Rental Formats Single CAN Plasma screen CDs/DVDs Games Books/ Magazines E-book Reader Potential for expansion - Also Replicable in long-distance buses.
    20. 20. THE FINANCIALS Assuming implementation in 2 major types of trains in India
    21. 21. Rs. Revenue from rent 150000 Income from Adv. 30000 Total Revenue 180000 Fixed Cost Cost of Tablet PC 150000 Website creation 20000 Insurance 2500 Total fixed cost 172500 variable cost Labour @ 5000/month 40000 Shop rent 20000 Technicians @10000/Month 20000 Website maintenance 10000 Total variable 90000 Total cost 262500 BEP 1.675 months Monthly Income Statement
    22. 22. REFERENCES http://features.ibnlive.in.com/features/cjawards/sponsor_livemedia.php http://indianwebstartups.com/StartupDetails.aspx?startupId=470 http://www.terabug.com/live-media-the-new-advertising-chain-in-india/ http://www.dailydooh.com/archives/356 http://iims-markathon.blogspot.com/2011/01/captive-audience-networks.html http://business-standard.com/india/news/india-gets-worlds-cheapest-tablet- pc/451633/ http://www.afaqs.com/news/story.html?sid=27808
    23. 23. THANK YOU Ankur Shrivastava Saket Bihari Sharon D’Costa

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