NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
I2 i iimc_2014-15__b-plan-title_
1. Business, Social
Team members
Ankit Gupta – Finance and Strategy section
Contact - 7275765799
Arihant Jain – Marketing section
Contact - 7607983335
Jeet Parekh – Publicity section
Contact - 9783580024
Siddhant Jain – Design section
Contact – 9833947187
2. The Opportunity (Market gap analysis)
Cost of good quality notebooks is very high, which is not affordable for every section of
society.
According to Indian govt. 21.96 % of the Indian population are below the poverty line, so can't
afford to buy a notebook worth Rs10even.
Need for targeted advertisements, which means advertisers should reach its first hand user
directly.
The vision here is to set a new arena in the field of advertisement. The basic idea
of this business model is to sell notebooks at a minimal cost. The prices would be
75-80% less than the market rates. The quality and quantity of the pages won't be
compromised. The basic source of our earnings would be the advertisements. We
could attract the sponsors as the advertisements we’ll deal would be target
oriented and quite a cheap one.
Till now there is no product is available which contains full page advertisements in
notebooks at regular intervals. So the companies which would advertise in our
notebooks would be benefitted as our notebooks would be sold at a good rate
(due to extremely low cost).
We proposed this idea at Google Start-up Weekend, Varanasi 2014 and we
bagged first position in it.
3. Product / Service Description
The product basically deals with a notebook of 200 pages containing 24 pages
of advertisements (including cover pages). This notebook is being provided at
Rs. 5 which in itself attracts the customers. This is so as we are trying to attract
the “Indian student market" (to a large extent). These advertisements would be
at regular intervals in that notebook, providing ample space between two pages
of advertisements.
The prices would be 75-80% less than the market rates. The quality and
quantity of the pages won't be compromised. We'd be designing
advertisements for the "local" sponsors trying to relate the product to the lives
of youth.
The USP (Unique Selling Property)
Rate of advertisements is quite a low one and quite comparable with the
pamphlets. All other sources of advertisements exist for a day, but our product
(notebook) would at least sustain 2 months. Notebooks are flipped quite a no.
of times so per view cost is very low. So these advertisements are in front of
eyes for a long time. The biggest attraction is the price of the notebook.
4. Target Audience
We are targeting the student market. So the sponsors which we’ll try to attract
would be the one concerning students. We’ll approach the companies like tech-
giants, coaching institutes, local cuisines and restaurants, some private colleges,
etc. We’d try to capture the pamphlet and newspaper market (to some extent).
Companies regularly publishing ads in pamphlets would be happy enough to
place their ads in our product. Taking into consideration the local market
(VARANASI) we are all set to get the BHU’s attention. BHU itself has strength of
35000+ students. “No” from a customer is of least probability at this cost. We
had our customer validation survey where 98.7% of people were ready to buy
our product. So our focus revolves around the big universities, where it’s quite
an easy task to sell the product.
At a later stage we can scale our market to KOTA (coaching hub), BANGALORE
(Education hub), DELHI ,etc.. Finally, we will grow at all India level as student
market is very large.
5. Customers Needs (Impact created by the offering)
Our targeted customers are right now buying notebooks at Rs 40, those who can
afford it and those who cant afford go for a cheaper options available.
Advertisers are going for conventional ways of advertising.
What are our customer doing right now?
What will be impact after our offering?
Customers would prefer our quality notebooks available at extremely cheaper
rates than those of our competitors, which will be a clear advantage.
On the other hand, advertisers would prefer us since we offer targeted
advertisements and long lasting and advertisement than newspaper or
pamphlets.
6. Market Analysis & Competitive Landscape
Market size :31.45 crore(student population of India)
Market growth rate: Growing at 1.2% (population growth rate of India)
Distribution channels:Manufacturer->wholesaler->retailer->consumer
Key success factors: low cost and high quality(consumers).Targeted and long lasting
advertisement(advertisers)
According to our knowledge there are very few firms who are working on idea bit similar
to us but have failed due to one or another reason. They are our direct competitor.
Secondly once our idea is outraged in market, firms will try to replicate our idea. Well
established in this sector will try their best to retain market share at any cost.
Indirect competition is from local and national retailers who are selling books at normal
rate .They are well established and have a faith and trust earned.
Differentiate our product:.
First we will try to work on lower or no profits in order to establish in market. Our profits
major share will be vested among distribution channel as an incentive to sell our product
and not prefer competitive product.
Secondly we will try to build customer loyalty by providing effective and a proper supply of
books regularly.
7. Barriers to entry, Growth, Sustainability
Many bigger companies would try to grab our market. It’s just a question of
competition not of monopoly. The fact that matters is quality and we won’t
compromise in it.
There are some start-ups which sell advertisements in notebooks but their notebooks
does not contain full page advertisements and also they are failed to maintain the
price of notebook.
Our product cost is most attractive and it is our biggest advantage. We are not worry
to sell our product.
Most challenging task is to attract sponsors. We are trying to get 24 sponsors from
different fields. No two sponsors are competitive one. Our USP is help us to make
sponsors for us. We already make our 6 sponsors out of 24.
Our funds are limited our growth will be hindered .Well established firms can
capitalise their funds and implement our ideas soon to restrict our growth and
progress. Due to funds they can reach faster and better to capture and retain the
market they previously had.(still our motive will be fulfilled of providing cheap books,
as a means for learning).
8. Business Model
The two products are differentiated on the lone criterion of
exclusivity and priority of the advertisors.
9. Current Status
Our company is approaching at MCIIE, IIT BHU (e-cell of IITBHU). This give a trust to
our advertisers. Our some cost can be financed by MCIIE, IIT BHU and rest is quite
low.
Our main expenditure is to make legal papers for contract to get monopoly from our
advertiser’s side.
Our initial investments requires some funds regarding printing cost. We would need
cost for transportation and inventory.
It is in nurture state and we are looking for sustainable funding to have a great launch
to capture and maximise the market. Idea is being researched upon and we look
forward to do wonders with this.
10. Future Projections
Short Term – We are targeting BHU as our initial market which has 35000+ students
And also Varanasi market. We will try to grab this market in next 6
Months.
Mid-term – We will expand our business to nearby cities Allahabad, Lucknow,
Kanpur also in Kota and Delhi in next 1-2 year.
Long term – At later stages we will expand our business in all India and reach every
Outlet.
Cash outflow Cash inflow
Cost of production Income from Advertisers
Cost of Transport Income from Product