Final Project Sriram A R-IITM 2016

FINAL PROJECT
“Your answer to everything”

1.1 The Situation: The urban household
Working couples have
lesser time to do the
household chores. Their
kids have to be engaged
when they are away too.
Single working men
have to take care of
cleaning the house,
washing the clothes
and other repairs,
things that weren’t
previously their
domain.
Single working
women have to
take care of things
like fixing electrical
repairs, appliances,
vehicles and so on,
something not
done by them
before.
1. Executive Summary

Women in the urban household:
Number &
Percentage of
working women in
urban areas
Percentage of Women:
Private Sector- 24.5%
Public Sector- 17.9%
Organized sector- 20.4%
Percentage of women registered in employment
exchanges- 32.5%

The urban household:
Also…
More Work, More Money
Higher willingness to pay services for needs
Lesser time to Do it Yourself.

1.2 The product and it’s aim:
In a world of ever-growing needs, busy schedules and
increasing work hours, No.42 is a home-service
provider app aimed at providing one-stop solutions to
all home services and household problems at
affordable costs with access to verified, high quality
professional service.

Range of services:
The free version of the app offers access to services like Electrical
maintenance, Plumbing, Laundry , Carpentry, Pest Control, Home
Cleaning, Packers & Movers and Call Drivers and the premium
version grants access to Beauticians, Fitness trainers, Salon and
Spa, Interior Designing, Home Automation, Dieticians, Weddings
and Events and Educational and Vocational Instructors and so on.

1.3 Proposed course of action: Uberization of the Home-Service
Industry
Service Vendors
and Agents
Collaborators
Freelancers
Specialized
Subsidiaries
Consumer

2. Situation Analysis
2.1 Company Overview:
Core Competencies and Strategic assets:
1. Range of Services: Despite there being a number of companies offering
home service solutions, no other company offers such a wide range of services,
catering to both ‘needs’ and ‘wants’.

2. Use of subsidiary companies/collaborators and specializers in
a specific vertical:*
Outsourcing of different verticals to different vendors reduces the excess
demand, thereby creating a better customer experience. Also, specialized
subsidiaries operating in a specific vertical means that all energy and resources
go towards fulfilling needs in that vertical alone. Similar subsidiaries for
different verticals not only makes it easier but also increases efficiency.
Subsidiaries
High Consumer Demand
Increased Consumer satisfaction
and increased efficiency.
* The idea of buying out well-performing subsidiaries and subsidiaries is followed by some big players in the market too,
but this certainly gives an upper hand to every company..

3.Consumer friendly subscription plans:
The annual subscription plans are formed keeping in mind the demography,
psychography and needs of the target consumer market. In addition, the
flexibility of the plans makes it easier to the consumer to structure the plan
according to one’s personal needs. This way, the exact desirability of the
product on offer is achieved since it is partially designed by the consumers
themselves.
4. Do It Yourself section:
Though the Do It Yourself (DIY)section of the app isn’t going to be a major
contributor to the revenue, it adds immense value to the consumer and
increases the number of hits of the app. It also helps develop Brand Equity by
creating the image of the brand as “One which truly cares about the consumer
and provides the best advice”.

5.Intrinsic Design of the Business Model to make users upgrade:
In a field where 32% of the users return for a second try, designing the business
model to facilitate upgrade premium version makes it a profitable venture to
both the consumer and the company. The app is intrinsically designed to cut
down costs for the loyal customers, thereby urging customers to upgrade.To the
consumer, an upgrade not only opens the doors of access to new realms of
services but also helps cut costs by referral codes and exclusive offers, coupons
while for the company an upgrade is an increase in the revenue.

2.2 Market Overview: The Global Village
No. Of Services
Value of the industry in
Billion Dollars
Customer Base

Market Overview: India
Economic Value
No. of Start-ups founded in
2014 in this industry
Expected Potential in Economic
Value :$100b-$400b
The market is thus, a YOUNG and RAPIDLY GROWING one.
Context:

Since the Product is aimed at
the Indian Market and is
planned to be launched only in
India, therefore we will restrict
our analysis from now on to
the Indian Market.

Current and Potential Customers:
The current customer base is represented by the middle-class
and high/elite-class working population in Tier 1 cities. This can
be further extended in the coming future to Tier 2 cities as well.
Competition:
With close to 69 start-ups operating in a $100 billion industry, it
is a new yet rapidly growing industry with competitors vying to
make it big. The biggest standpoint of this market is the
closeness between various competitors and hence, one path-
breaking idea would give a company the status that Flipkart or
Amazon has in the e-commerce industry.
However, there are effectively only 14 serious competitors,
making this an industry with even more potential to make it big.

The biggest competitive advantage for No.42 is that it is the only
brand offering such a wide range of services.
Table 2:

No. of effective competitors
Economic Value

From Table 4, let us analyse the cities along with the number of
competitors in this Industry:
City No. of competitors
Chennai, Pune 2
Kolkata, Hyderabad, Jaipur, Chandigarh,
Ahmedabad
1
Vishakapatnam 1
Gurgaon 4
Bangalore 8
Delhi 7
Mumbai 9
Thus, we see from the above data that making the app initially
available in cities like Chennai, Pune, Kolkata, Hyderabad, Jaipur,
Chandigarh, Ahmedabad and Vishakapatnam would mean that the
app would have 0-2 competitors, making it an oligopolistic market.

Collaborators & Investors:
The Industry offers a sea of opportunities for collaborators
and investors. Collaborations hep increase efficiency in the
service delivered. The brand offers the collaborator a huge
customer base while the collaborators bring along with them
either their realm of specialization or workforce or both.
Similarly, the brand gains from the investments made by the
investors since it acts as a source of capital and the investors
benefit from the growth of the brand in a new and exciting
industry such as this which holds a lot of promise.

The Target Customers of the Basic services
The Basic Services would be aimed at the demography of the
working population that is the age group of 25-64. However, the
target customers of the basic services would be the demography
of young and middle-aged working men and women (Age group 25-
40) with special emphasis on women (Who are generally involved in
household chores in a country like ours).
The Target Customers:

The Premium services like Beauty, Diet, Fitness, Interior Designing,
Home Automation and so on will be aimed at the middle-aged upper
middle-class working population (Age group 30-40) and the high/elite-
class who will both have the willingness to pay as well as want these
services. There will be a special emphasis on women among the
demography.
The Target Customers
of the Premium
services
are the upper middle-
class population.

Other Premium Services such as Instructors for Educational and
Vocational Purposes would be aimed at Mothers of all ages and
Teenagers (Age 13-20).
The Target Customers of the Other Premium services are
Mothers and teenagers.
The initial Target Customers would be the people of the
aforementioned demographies in the cities of Chennai, Pune,
Kolkata, Hyderabad, Ahmedabad, Vishakapatnam, Jaipur and
Chandigarh.

3. Goal
Benchmarks:
Since the process of setting benchmarks involves not only
personal ambitions of the firm but also requires an analysis of the
current market situation to set feasible targets, let us analyse the
scenario with the competitors in the market and use it as a
yardstick to set targets.
We will set the deadline as the end of 2nd year for the benchmark.
From Table 1, we see the following:
UrbanPro, LocalOye, Zimmber, UrbanClap & HouseJoy are the
companies with more than 1000 calls per day.
Among these 5 companies , the average number of calls per day is
1600 and the average call back rate is 30.75%

As mentioned in slide 19, making the app available in the cities
of Chennai, Pune, Kolkata, Hyderabad, Ahmedabad,
Vishakapatnam, Jaipur and Chandigarh would mean that the app
has a maximum of 2 competitors in a city, thus making it an
oligopolistic market.
Among these, UrbanPro is one competitor that is constant
across all cities mentioned above. However, UrbanPro only
offers educational and vocational learning products which is not
a major target of No.42. Besides, while No.42 would compete
with UrbanPro in the educational and vocational learning front,
the reverse is not the case in all other fields that No.42
specializes in.
Max. No. of Competitors

Even among the cities where there is a competitor, near.in in
Jaipur, Zimmber in Pune and UrbanClap in Chennai are the only
competitors. All the three of the aforementioned companies
started in 2014 and are still new to the Industry.
The competition in different
cities.
Therefore, effectively the market is duopolistic in 3 cities and
monopolistic in the other 9.

With the analytical data obtained from the previous slide, we can
safely approximate that the app would receive around 1600 calls
a day with a call-back rate of 30% since the app satisfies all
requirements satisfied by companies with similar call rates such
as demography, geography, market domination and range of
services.
Let us assume that 50% of the calls made are for Cheap Basic
Services such as petty leaks and small repairs with an average
cost of service as INR 400 or $6, 25% of the calls are made for
more expensive Basic Services such as installing pest control
systems, installation of appliances and Packing & Moving with
an average cost of service as INR 4000 or $60, 15% calls are
made for Premium Services with an average cost of INR 4000 or
$60 and that 10% of the calls are not provided with services or
are cancelled.

Calls
Cheap Basic
Services
More Expensive
Basic Services
Premium Services
Cancelled or
undelivered
30% of the customers call-back. Let’s assume 60% of these customers
upgrade to premium version to cut down costs in the long run. The
cost of upgrade is INR 100 (Mentioned in the form).

Revenue Models:
Table 4:
Of the revenue models mentioned above, the app would follow
the commission model. In cases where the service is provided
directly by a vendor, the app gets a 15% commission on the bill
and when there is a middleman/specialized subsidiary, the app
gets a 10% commission on the bill.

Revenue Calculation:
Revenue through Service Provided:
Going by the date mentioned in the charts mentioned in the
previous slides, the Net revenue generated per day is 3,00,000 INR.
For a quarterly, it comes to 2.7 Crore INR. For two years, it is
65 Crore INR.
Revenue through Upgrades:
Going by the upgrade rates assumed from the obtained data, the
revenue generated per day through app upgrades is 30,000 INR.
For a quarterly, it is 27 Lakh INR.
However, the app upgradation rate in a Freemium model is not a
linear function.

The app upgrade rate can be assumed to increase by 5% each
month until the 2nd quarter and there can be assumed to be a
monthly decline of 5% until the third quarter and =be the same
until the end of the 8th, assuming no technological upgrades/
expansions take place.
This results in a revenue of 40 Lakh INR in the first 2 quarters is
2.58 Crore INR, in the next quarter is 1.48 Crore INR and the next 5
quarters is 6.5 Crore INR. Net Revenue from upgrades over 2 years
is approximately 10.5 Crore INR

Net Revenue at the end of 2 Years:
1. Revenue from service provided
+ 2. Revenue from upgrades
+ 3. Revenue from subscriptions (Lets assume 10% of 1+2)
+ 4. Revenue from advertisements (Lets assume 10% of 1+2)
– 5. Cost of offers and discounts (Lets assume 15% of 1+2)
This amounts to approximately 80 Crore INR at the end of 2 years.
However, this was obtained by looking at companies with more
than 2 competitors in their cities of operation, lesser range of
services and not offering flexible subscriptions.
Hence, accounting for these competencies and assets, the goal can
be atleast 20% above the expected revenue at the end of 2 years.

Therefore, the Goal would be to make 100 Crore
INR at the end of 2 years , that is $15 million.
After that, there will be expansion to other cities and
improvements & innovations in technology.
From the 3rd year onwards, the goal is to grow at a
rate of 5-10% every year.

4.Strategy
4.1. The Target Customers:
• Basic Services: Middle-class and High Class urban working
men and women of the age group 25-64, especially women.
• Premium Services: Upper Middle-Class and High Class
Urban Middle-Aged (30-40 years) working Men and Women,
especially women.
• Educational and Vocational Services: Mothers and
teenagers (Age 13-20).

Benefits offered by the Offering’s Value Proposition to
the Customers:
• Quick Access to Services- Organization of an otherwise
random industry.
• Verified, High Quality Professionals.
• Many needs and services satisfied under one roof.
• MoneyBack Guarantee- If service is not satisfactory.
• Customer friendly annual subscription plans.
• Transparent Pricing and Easy Payments.
• Convenient Booking.
• Free Do It Yourself Videos offering advice to consumers for
learning and fixing small repairs.

Brand Positioning:
A Brand that offers a one-stop solution to all Household
Services at the best prices, along with consumer aware,
trustworthy, professional and top-notch service and advice
to the consumers.
Positioning Strategy:
• One-Stop Solution: Wide Range of Services under one roof.
• Best Prices: Referral Codes, Offers, Coupons, etc.
• Trustworthy, Professional: Verified Professionals
• Consumer Aware: Subscriptions & Plans flexibly designed,
partially by the consumers themselves at cheaper costs;
Effective Segmentation of Demographies, targeting specific
services at specific consumer segments.

4.2. Collaborators: Product Chain
Service Vendors
Collaborators
Freelancers
Specialized
Subsidiaries
Service Agents
Consumer Smaller Companies
Marketing Channels

• Freelancers and Service Providers: Freelancers and
Service Providers like Independent Plumbers, Carpenters,
electricians, lawyers, drivers, etc.
• Service Agents: Human Resource Capital Companies like
Quezx, CalibeHR, Arsenius Skill Capital, HR Capital &
Services and so on who provide access to Service
Providers.
• Specialized Subsidiaries: Sometimes, it is more profitable
to divide and rule. Specialized Subsidiaries are used to allot
work under different verticals to smaller companies
specializing in those verticals. In due course of time, these
companies are generally taken over. For example, MyWash
is a laundry company taken over by HouseJoy and Orobind
is a fitness provider taken over by the same company.

Smaller Companies: As a company grows, it generally acquires
smaller companies to provide increased efficiency. For example,
Zimmber has acquired FindYahan and UrbanClap has acquired
HandyHome recently.
Communication Partners: Different media of communication
can be used to publicize the start-up. Eg: Google
Advertisements, IT parks and Corporate Parks (Place of work of
Demographies), apps and websites of collaborators, newsprint,
radio and television.

Benefits offered by the Offering’s Value Proposition to
the Collaborators:
• Larger Consumer base.
• More Frequent Calls; Increase in Business.
• Better Organization among individual vendors; ensuring
more streamlined demand and supply.
• Bridging demand and supply.
• Mutual Publicity for Marketing Channels and subsidiaries.
WIN –WIN

4.3. The Company: The Three Major Branches
Company
Marketing & Business
Development
Ideation on Marketing
Strategies to build Equity and
Image and also formulating
campaigns and offers to
develop Business.
Procurement & Supply Chain
Acquiring & collaborating with vendors,
service agents and service providers;
Maintaining levels of supply to cope with
the Demand by coordinating with the
Marketing Channels.
Web & App Development &
Maintenance
Designing, Maintaining and
Upgrading the features of the
app and keeping abreast with
the innovations and
technological developments
in the industry.

Key Stakeholders of the Company & Benefits offered by
the Offering’s Value Proposition to the Key Stakeholders:
Employees: The Employees are the backbone of any
company. They are the major stakeholders since they are the
ones who would be impacted both by its Growth & Decline.
Benefits:
• The biggest advantage of working in a budding industry and
a budding start-up is that the careers of employees grow at
the same pace as the company itself. It offers quick growth.
• Learning Curve in building the company from scratch.

Suppliers, Service Providers, Service Agents and
Subsidiaries: The suppliers are the source of service. Since a
major chunk of the revenue comes through them there is a
mutual dependency between the company and the suppliers
and are hence key stakeholders.
Benefits:
• Increased Business.
• Since Demand > Supply in the Current Scenario, it means
assured source of income and hence job security.
• Bridging of demand and supply and alleviating pressure of
increasing demand.

Investors, banks and Stockholders: Investors and
Stockholders provide initial source of capital for any
company and hence hold high stakes.
Benefits:
• Their profits increase along with the company.

4.4. Competitors: Competitive Offerings
Closest Competitors:

Competitive Offering of UrbanClap:
• Wide range of services.
• Trusted Professionals
• Guaranteed Service.
Competitive Offering of Zimmber:
• Verified, Professional Service.
• Punctual, Reliable & Transparent.
• MobeyBack Guarantee &
Standardized Pricing.
• Great Offers, Coupons and
Referral Codes.

The competitive offerings of UrbanClap are weaker than
that of No.42 in the following ways:
• While UrbanClap provides a Wide Range of services, it
does not offer subscription plans and regular offers.
• It also does not offer DIY videos/ professional advice.
• It does not offer MoneyBack Guarantees.
The competitive offerings of Zimmber are weaker than
that of No.42 in the following ways:
• No.42 offers a much wider range of services.
• Lack of Subscription plans.

More Work, More Money
Higher willingness to pay services for needs
Lesser time to Do it Yourself.
4.5. Context:
Economic:

Increasing
Investments
Rapid growth of the Industry
Value of the Industry in India
With Increasing Investments, Rapid Growth of the Industry
and positive response of consumers,the economic
scenario looks healthy to enter this industry.

Technological:
App-Only Approach
The World inside a
Smartphone
With a worldwide support for the App-Only approach and
ever developing world of technology, the Industry can be
made accessible at the touch of a button.

Socio-Cultural:
The Urban Household now consists of working couples,
both loaded with a lot of work. There is now a
requirement to fulfil basic household needs for which
people no longer have the time to do by themselves.
Also, single working men and women require assistance
on household problems. People are more inclined
towards home delivery of services with less time being
available.

Regulatory:
With the increase in social crimes caused by unknown
and unverified vendors, the need for Verified,
Trustworthy professionals is felt both by the people as
well as the State.
Physical:
With an ever increasing demand for home services, the
Industry streamlines unorganized service sources into
Organized, verified, trained and steady source of Supply.
This way, the pressure of increasing demand is alleviated
by the Industry.

5.Tactics
5.1. Product Characteristics:
• Relief from website-run bookings; simple booking
experience.
• Handy, easy to use; easy access
• Affordable, worthy upgrade to Premium version. (INR 100)
• Supporting latest versions of Operating Systems.
• Up to date with technological growth.
• Future Scope: Virtual Reality to simulate a retail shopping
experience to add in home-delivered retail services.

5.2. Service Characteristics:
• Wide Ranging Services.
• Trustworthy, Professional Service.
• Affordable, worthy upgrade to Premium version. (INR 100)
• MoneyBack guarantee and value for money.
• Catering to urban working population of all demographies.
• Quick Delivery of Service.
• Bringing different services under one roof at the touch of a
finger.
• Consumer Friendly Subscription plans that cut down costs
for regular users.
• Cheap, affordable yet quality solutions through offers,
Coupons, Deals, etc.
• Flexible Plans partially designed by consumers
themselves.

5.3. Brand:
Name: No.42
Logo*:Symbol*:
Slogan: “Your answer to Everything”
Meaning of the Brand Name:
The number 42 is, in The Hitchhiker's Guide to the Galaxy by
Douglas Adams, the "Answer to the Ultimate Question of Life,
the Universe, and Everything“. Since the product is the answer
to every household problem, the number 42 has been adopted.
The “No.” in No.42 denotes the Door number/ Plot Number of a
house, since the product is all about your home.

Offering of the Brand:
In a world of ever-growing needs, busy schedules and
work hours, No.42 is a home-service provider app aimed at
providing one-stop solutions to all home services and
household problems at affordable costs with access to
verified, high quality professional service.
*The logo and symbol used are not the exact brand logo
and symbol but would resemble the displayed ones.
Jingle: “ Whatever be your problem, No.42 is your
solution”

5.4. Price:
Price of an Upgrade: 100 INR / $1.5
Since the revenue model is one based on Commissions,
the cost on commissions is shared between the
consumer and the supplier/collaborator.
Price of the offering to the Consumer:
Price = 5% of the Service Bill for a Basic Offering
For a Premium Offering, Price = 5% of the bill + one-time
cost of 100 INR.
Price of the offering to Collaborators:
To Service Agents and Middlemen = 5% of the bill
To Suppliers = 10% of the bill
The lower cost on middlemen is because they in turn
have to pay their suppliers.

5.5. Incentives:
Incentives to Customers:
• Offers on referring to new customers.
• Offers, Deals and Coupons for loyal and Premium
Customers.
• Lower costs of Subscription Plans in comparison to
the regular service costs.
Incentives to Collaborators:
• Monthly Travel and Food Allowances
• Better service rewarded with more clients and tasks.
Incentives to Company Personnel:
• Annual Bonus in proportion to the growth of the
company over a year to all employees.
• Better work rewarded with additional bonuses.

5.6. Communication Channels:
To the Consumer

The following are the modes of communication of prices
and offerings to the consumers:
• Mobile Advertisements
• Newspaper Advertisements
• Radio Publicity
• Coupons, Deals and Offers on sites and apps of
collaborators, subsidiaries, etc.
• Standees and Posters at Corporate and IT parks.
• Referral Codes
• Blogs
The following are the modes of communication of prices
and offerings to the collaborators:
• SMS alerts to suppliers on booking
• In-built app info similar to cab booking apps like Ola.
• Mails to the managements of the collaborators.

The following are the modes of communication of
offerings and prices to the company personnel:
• Official Mail IDs
• Notices and Alerts at Workplace
• Quarterly Reports
• Monthly Performance Books
• Clear information to the employees by their
supervisors on the Segments, Target Market, etc.
The following are the modes of communication of
offerings and prices to the key stakeholders:
• Official Mails
• Quarterly Reports
• The Stock of the brand itself gives the stakeholders an
idea of the how the offering of the brand is performing.

5.7. Distribution:
App Distribution:
The following are the steps involved in
distribution of the product:
Step 1: Install through QR codes at places of
gathering, work area like Corporate and IT
parks, etc
Step 2: Installation through circulation of APK
files on social media like Facebook, popular
blogs, websites, etc.
Step 3: Available on Google Play Store.
Step 4: Available on Windows and Apple Stores

Distribution of Offerings , Prices and Incentives To
Customers:
This can be done through alerts on the app, SMS alerts
to all registered numbers and also through the
communication channels mentioned before.
Distribution to Company, Personnel and Stakeholders:
The media mentioned previously for communication of
the offering can itself be used for distribution purposes.

6. Implementation
6.1. Infrastructure:
Company
Development
Procurement &
Supply Chain
Tech Support

Web & App
Development &
Maintenance
Content
Development (DIY)
Online and
Telephonic
Professional
Assistance
Company
Development
Procurement &
Supply Chain
Tech Support

Company
Development
Procurement &
Supply Chain
Tech Support
Independent
Vendors
Freelancers Service Providers
Specialized
Companies
Middlemen
Smaller
Subsidiary
Companies
Collaborators
Channel Management
Team (Various Cities)
Legal Support
HR Management
Quality,
Operations and
Verification

Company
Development
Procurement &
Supply Chain
Tech Support
Data
Analytics
Advertising
MobileMass Media Online,
social
media & PR
Operations
Marketing
Business
Development
Expansion
Ideation
Business &
Market
Analysts

6.2. Processes:
6.2.1. Tech Support Team:
• App-Development and maintenance.
• Content Development for DIY Videos.
• Telephonic and Online Professional Assistance.
• Revamping of technology.
• Updating versions of the app in tandem with the
advancements in technology.
• Tech Support in case of default or repairs.

6.2.2 Procurement & Supply Chain:
• Channel Management:
• Acquiring vendors to provide services.
• Acquiring Specialized and subsidiary companies.
• Ensuring Supply meets Demand.
• Making Profitable Collaborations.
• Quality, Verification & Operations:
• Rating the quality of service rendered and using it for
future usage.
• Verification of legitimacy of vendor.
• Other Operations for working of the team.
• HR Management:
• Management of the workforce and catering to their needs.
• Legal Support:
• Carrying out due diligence while hiring people and making
collaborations.
• Representing the company in case of lawsuits.

6.2.3 Marketing & Business Development:
• Data Analytics:
• Working with the obtained data.
• Predicting viable options for campaigns, target markets,
takeovers, expansion and advertisement by analysing
available data.
• To track the impact made by various campaigns.
• Advertising:
• To come up with cheap, yet successful ad campaigns.
• Advertising through the media mentioned before.
• To find the target markets and target campaigns towards
them.
• Expansion:
• To use available data from the data analytics team to
observe trends and formulate successful expansion
ventures.
• To ideate upon offers and deals at the new venues.
• To decide on the scope, area and extent of expansion.

• Business & Market Analysts:
• To observe market trends to decide which services to
promote.
• To formulate deals and offers along with the Data
Analytics team to mimic market trends and reach
customers most effectively.
• To carry out pricing of the services and offers.
• To track performance of existing offers and deals as well
as observe trends of services and provide business
advice.
• To decide which offers and services to promote and which
ones to discard according to geography and demography.
• To decide on what goes into the Basic Version and
Premium Version.
• Ideation:
• To work alongside all the above teams to aid ideation on
offers, advertising campaigns, expansion plans, etc.

6.3. Schedule: (Incubation and the first two years)
Incubation Stage:
Quarter -1:
• Start of Operations.
• Installation of apps through QR CODES.
• Acquire more vendors.
• Verification of identities.
Quarter 0:
• Installation of apps through APK files.
• Targeted online promotion and circulation of APK files.
• Further acquisition of service providers.

Year 1:
Quarter 1,2 & 3:
• Release of app.
• Targeted ad campaigns covering all media.
• Promotion through Offers, Deals and Referral Codes.
• Collaboration with middlemen and specialized
companies.
Quarter 4:
• Yearly Performance Report.
• Analyse good performers and bad performers and
train/discard the bad ones.
• Analyse consumer behaviour and trends and shape
offers and deals accordingly.

Year 2:
Quarter 1,2 & 3:
• Incorporate changes advised from previous year.
• Promote yearly subscriptions and plans through
advertising media.
• Acquisition of smaller companies and those specializing
in a field.
Quarter 4:
• Yearly Performance Report.
• Analyse possible options for expansion both in the
domain of services and geography.
• Evaluate performance.
• Formulte new deals and offers (Cheaper yet effective).
• Analyse consumer behaviour and trends and shape
offers and deals accordingly.

After the second year, efforts will be
taken based on the available data
from the analytics teams and
expansion of the company into
newer and 2nd tier cities will take
place.

• Cash Flow from Operations
• Receivables vs Sales Growth
• Productivity
• On-Time Deliveries
• ACSI- Customer Satisfaction Index
• Employee Retention
• Backlog
• Gross Margin Per Product Line
Other Self proposed Indices:
• Cost per consumer (for offers and advertising purposes)
• Upgradation rates
Control & Exhibits
Control :
Performance evaluation & Environmental Analysis
Indices:

Exhibits:
Price Calculation per Upgrade:
As mentioned before, the revenue generated from app upgrades is only a small
chunk of the total revenue while the revenue for the firm is majorly generated
through commissions from every service provided.
Hence, as long as the revenue from upgrades of the app is able to cover the fixed
costs of the firm and the variable costs up till it breaks even, it will suffice.
Lets assume there are 25,000 downloads per month and that the number of
downloads is consistent. Let's assume this is considered for one city only. Hence,
1 office would be enough to run the process. Let the rent be say, 3 Lakh INR per
month in a metropolitan city. I intend to cover the fixed costs and variable costs till
the point of break even within x months, which means the fixed costs + variable
costs of x months will have to be covered by upgrades in x months. The fixed
costs involve the investment for the firm which include the cost for developing the
app and starting up. This can practically be done under 2 Lakh INR. The variable
costs per month would be the rent, electricity and other services alongwith the
salaries to be paid. Lets assume there are 25 employees and total salary paid is
10 Lakh INR per month.

Given the app promotion strategy mentioned above, we can expect upto
30-40% conversion of basic to premium upgrades in the initial stages.
It can be approximated that there will be 10,000 conversions per month.
10,500*cost of one upgrade*Number of months = Fixed Costs + Variable
costs*Number of months
According to this calculation, there are two variables and one equation. I
intend to break even on fixed costs and variable costs upto date by 10
months.
This way, the cost of one upgrade comes to 100 INR
100 INR in today's foreign exchange value is 1.489 USD
Hence the value of one upgrade can be 1 USD and 50 cents. (1.5 USD)
*Though this value is higher than the nearest competitor, provisions such
as offers, coupons, subscriptions, service plans and high-end services are
not on offer and any regular consumer would save a lot more by upgrading
and the 100 INR would only be a meager amount compared to what it's
value is. Besides for someone of the upper middle-class 1.5 USD is a
paltry amount and hence wouldn't amount much. In case of multiple cities,
this can be extrapolated and we would arrive approximately at the same
value.

• https://www.google.co.in/search?q=many+women+at+work&espv=2&biw=1366&bih=
643&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjYnczUqO7NAhXFo48KHfP6AeEQ_A
UIBygC#tbm=isch&q=more+work&imgrc=YpA5iXwD-FveQM%3A
• https://housedecorationideas.files.wordpress.com/2012/01/bachelor-living-room.jpg
• https://media.licdn.com/mpr/mpr/p/5/005/058/1a0/1d0c0f4.jpg
• http://www.familybusinessunit.com/blog/wp-content/fbumedia/2013/09/working-
from-home.jpg
• http://www.wikigender.org/wiki/women-and-men-in-india-2012/
• http://cdn.iwillteachyoutoberich.com/wp-content/uploads/2010/01/earn-more-
money-this-year-800x453.jpg
• http://www.forbes.com/2008/08/11/small-business-management-ent-manage-
cx_gm_0811genemarksninemetrics_slide_2.html
• http://faculty.som.yale.edu/vineetkumar/research/Freemium_May2014_Kumar.pdf
• https://docs.google.com/document/d/11kVTiG0OBKnHPc5sN_-
w69jv0YrJU_uj3gvkE_oqlR8/edit
• https://www.google.co.in/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-
8#q=home+services+recruitment+in+India
• https://www.housejoy.in/bangalore/laundry/?utm_source=mywash&utm_medium=em
ail#home
• https://www.taskbob.com/
• https://www.urbanpro.com/
• https://en.wikipedia.org/wiki/Stakeholder_(corporate)
References and Image Sources:

• http://www.hrcapitalservices.com/
• http://fitness.housejoy.in/promotions/fitness/5?utm_source=orobind
• https://www.urbanclap.com/
• http://zimmber.com/
• http://articles.economictimes.indiatimes.com/2016-04-
12/news/72266924_1_financial-services-fragmented-sector-co-founder/2
• http://www.meditab.com/services/tech-support/
• http://www.forbes.com/sites/neilhowe/2015/06/16/why-home-services-
marketplaces-offer-more-than-just-renovations/#1bcf94e35ce0
• https://inc42.com/buzz/decoding-100-billion-home-services-marketplaces/
• https://www.franchisehelp.com/industry-reports/home-services-industry-report/
• https://robliano.files.wordpress.com/2014/03/stock-footage-million-dollars-
rotate.jpg
• https://tctechcrunch2011.files.wordpress.com/2015/07/windows-store.png
• https://get.everfest.com/apple.png
• http://cdnqrcgde.s3-eu-west-1.amazonaws.com/wp-
content/uploads/2013/11/jpeg.jpg
• http://www.android.pk/blog/wp-content/uploads/2013/02/Install-Android-APK-
Files.jpg
• Marketing Management: A South Asian Perspective by Philip Kotler.

Thank You
Disclaimer:
This presentation was created by Sriram A R, IITM
during a marketing internship under the guidance of
Prof. Sameer Mathur, IIM Lucknow
(www.IIMinternship.com)
Sriram A R
Prof. Sameer Mathur

Final Project Sriram A R-IITM 2016

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