Decode in - IT management

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A mobile app to decode what you are consuming in any country

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Decode in - IT management

  1. 1. decodeIN “Know what you consume” TEAM - 5 Bartosz Suchomski Leigh Clouston Ethan Nichol Evans Fortoh Fongum Marzia Pe Vipul Sonavane
  2. 2. Table of Contents I. Problem Introduction II. Service Provided by our App III. Market Opportunities IV. User Acquisition Strategy V. Financial Projection VI. Total Investment amount VII. Investment Amount Usage VIII. IT Infrastructure Overall view IX. Security & User Privacy Policy X. Identified Team Roles
  3. 3. I. Problem Introduction
  4. 4. •Situation: Globalization has increased Traveler numbers and mobilized an International workforce •Complications: No easy guide to help people navigate the foreign landscape •Implications: Confused Travelers, health risks, and loss of happiness •Position: decodeIN, the mobile app that combines a dictionary, encyclopedia, and translation tool •Opening Action: Explore the details of decodeIN and the business opportunity •Benefits: Save time & money – know what you consume •We will tackle each of these topics through the
  5. 5. Globalization has increased Traveler numbers and mobilized an International workforce TheShanghai Daily reported that Shanghai’s expat population now exceeds 173,000 – a 6.7% increase from 2011.  What’s more, that figure only accounts for a quarter of the total number of foreign residents currently residing in mainland China.  February 20, 2013
  6. 6. Top 10 countries according to international tourist arrivals •Number of expats living in China 600,000 in 2012 (sixth national census) •Similarly other countries like Saudi Arabia, Italy, Mexico are the hot spots for the expats •Tourism is a Trillion Dollar Industry (First Research) Source: wikipedia
  7. 7. HSBC Expat Expat Explorer Survey 2012
  8. 8. Problem Introduction Tachipirina, Efferalgan Tylenol, Triaminic Panadol, APAP Aspirin Para, Pyrigesic, Metacin 对乙酰氨基酚片 Other Brand Names Aceta, Actimin, Anacin-3, Apacet, Aspirin Free Anacin, Atasol, Banesin, Ben-uron, Biogesic, Crocin, Dafalgan, Dapa, Dolo, Datril, Extra-Strength, Efferalgan, DayQuil, Depon & Depon Maximum, Feverall, Few Drops, Fibi, Fibi plus, Genapap, Genebs, Lekadol, LemSip, Liquiprin, Lupocet, Milidon, Neopap, NyQuil, Oraphen-PD, Panado, Panadol, Panadrex, Panamax, Paracet, Parol, Panodil, Paratabs, Paralen, Phenaphen, Plicet, PyongSu Cetamol, Redutemp, Snaplets-FR, Suppap, Tachipirina, Tamen, Tapanol, Tempra, Tipol, Tylenol, Uphamol, Valorin, Xcel Source: wikipedia
  9. 9. Common names for “Arugula” Common names for “Cilantro” Rocket – UK  Rugula  Rucola  Roquette  Colewort  Biological name: Eruca sativa   Coriander – Asia  Chinese Parsley  Dhania - India  Biological name: Coriandrum sativum
  10. 10. II. Service Provided by our App
  11. 11. Complications: No guides to help people navigate the foreign landscape Bart is Thirsty! He doesn’t understand what he is going to drink…
  12. 12. Implications: Confusion abroad Search for food Travel to new country • Restaurants • Grocery Stores • Convenience Stores Purchase food based on tastes Make future food choices Look for familiar Food Choices Time spent finding choice Enjoy or dislike tastes May make poor food choices, expense related to finding “Likes”
  13. 13. Bart is happy! He used decodeIN and managed to know what he is drinking! decodeIN…makes your life safer and better
  14. 14. Mock Up Home 2nd Screen Profile Home Take a Picture Match Results Search…. Additional Features
  15. 15. Mock Up Profile (pop-out screen) Match Results Closest results to searched ingredien t Name of Person Allergies Country Link to Facebook, Twitter, QQ Home Match Results Top 5 (in language for Country of profile) Options
  16. 16. Mock Up Additional Features Each Feature will cost an additional $1.00 for 1 month of use Home Options Home Effects Origins Next 5 Ingredients Substitutes Options
  17. 17. Start Take Picture Translate in known Language Translat eSearch Find match/similar local product Local language/ show in store Features Flow Input a name in search box Search for the ingredients Effects Origins End Translate back in known language Allergies
  18. 18. Databases for ingredients  http://fnic.nal.usda.gov/foodcomposition/usda-nutrient-datalaboratory  http://ndb.nal.usda.gov/ndb/search/list  http://tna.europarchive.org/20110116113 217/http://www.food.gov.uk/science/dieta rysurveys/dietsurveys/ Could link to these databases for free
  19. 19. III. Marketing Opportunities
  20. 20. Market Opportunities Smartphone Users Trend Attractive Demographics
  21. 21. Market Trends Applications now more than 400 million accounts with registered credit cards in the App Store, making it the store with the most credit cards on file anywhere in the world The App Store is expanding from 120 countries to 152. (http://mashable.com/) 1.2 billion smartphones will enter the market over the next 5 years, about 40 percent of all handset shipments). (ABIResearch)
  22. 22. Global smartphone operating system share forecasted in 2016 Global smartphone operating system share in 2012 2.00% 2.50% 4.50% 3.30% 2.10% Android 11.40% 1.50% 0.10% Android 0 iOS 18.80% 68.80% IDC (Feb 2013); IDC (Dec 2012) Source BlackBerry OS Symbian Windows Phone iOS 4.10% 19.10% 63.80% IDC (Feb 2013); IDC (Dec 2012) Source BlackBerry OS Symbian Windows Phone • IDC (February 2013): 68.8 percent of smartphones shipped in 2012, shipped with Google’s free Android OS • That is more than three times the number shipped with Apple’s iOS (18.8 percent) and dwarfs BlackBerry OS (4.5 percent) and Nokia’s Symbian (3.3 percent) • In 2016, IDC (Dec 2012) predicts that market shares will look pretty similar to 2012, except for the rapid rise of Windows to take 11.4 percent of the market
  23. 23. Market opportunity Smart phones •In every country on an average 80% population uses mobile •In every country on an average 40% population uses Smartphones •In last quarter in 2012, 144 million android users and 40 million iOS users added worldwide •Worldwide app download 17.7 B in 2011 •Apps are engaging people 80 mins/Day including social networking sites •On average 10 apps downloaded per month by single user Competitors Only on iOS •5000 language translate related apps •2000 medicine related apps •200 Pharma related apps •300 ingredient related apps Number of downloads •1,000,000+ downloads almost for every 4 star rated app •10,0000 for an average rated app
  24. 24. Target Market: China EXPATS   VISITORS Approximately 600,000 in 2012 (sixth national census reveals) 78% are Smartphone users (based on our survey of 60 samples)   Approximately 57.6 million in 2011 (World Tourism Organization UNWTO) 21% are Smartphone users (based on research Android Market Share of 70% Ios Market Share of 20% Total Target 8.7 million people
  25. 25. UNWTO Tourism Reports By regions, the biggest growth will be seen in Asia and the Pacific, where arrivals are forecast to increase by 331 million to reach 535 million in 2030 (+4.9% per year).
  26. 26. Market Survey results 60 Respondents decodeIN What are you putting in or on your body? Yes No I don't Know Do you have problems in translating/understanding during 71.70% 18.30% 10.00% daily routine ? Do you feel the need in translating food, beauty and drug product ingredients ? 80.00% 20.00% 0.00% Will decodeIN be useful for you 66.70% 20.00% 13.30% ? How much are you willing to pay 71.70% for decodeIN? ( $10 ) 28.30%
  27. 27. Opening Action: Business Strategy Phase 1 Food Phase 2 Medications We focused on food – 63% of our survey respondents on Linkedin indicated they would want an app translating food Phase 3 Cosmetics
  28. 28. Indirect Competitors Most admired applications in these category – Majority have 100,000 users5 language translator apps in iOS Top Top 5 language translator app in Android iTunes Language Translation Jibbigo Ultralingua iLinguist Linguo Interpret Free Yes Yes Yes No Yes No Paid No Yes Yes Yes Yes Yes Top 5 medicinal components apps in iOS Component V3 Engine No Yes Expedition No Yes Dictionary of Medicine No Yes My Medicine Plus No Yes Medicine A-Z No Yes Top 5 food ingredient apps in iOS Allergy Maze No Headache Maze No Baby & Infant Maze No Asthma Maze No Chemical Maze No Yes Yes Yes Yes Yes Free Google Translate Yes Transzilla Yes Universal translator Yes Fast translator Yes Translate Yes Paid No No No No No Top 5 medicinal components apps in Android Injectable Medicines Yes No Medicines for Yes No disaster Medicines No Yes Compendium UK Equivalent medicines No Yes Natural Medicines Yes No Database Top 5 food ingredient apps in Android Food Calorie Yes No Food dictionary Yes No Food+ No Yes Food & Me No Yes Raw Food Way Yes No
  29. 29. SWOT Strengths Our idea is unique Our object is human body, undying demand Opportunities Countries where English is not the first language Daily use of App Weaknesses Authenticity of the data Source of the data Tie ups with multiple companies Threats Copy cats Timely delivery of add-ons and updates Price for the app
  30. 30. DecodeIN What are you putting in or on your body? Total Started Survey: 60 Total Finished Survey: 60 (100%) http://www.surveymonkey.com/My Survey_Responses
  31. 31. About 67% of the surveyed people will be a potential buyer of DecodeIN App About 72% of the surveyed people will be willing to pay $ 10 for DecodeIN
  32. 32. Target Market: Expats in China Who is he? Davide S. • Aged 23 Lives in Beijing Studies in an International university • • What does he care about?     He enjoyes cooking at home He always buys food in international supermarket He would like to know more about Chinese names for ingredients He doesn’t speak chinese, He wants to find a solution for eliminate this problem 
  33. 33. Target Market: Expats in China Who is she? • Cindy L. • • Aged 31 Lives in Shanghai Works in a multinational company What does she care about? • • She doesn’t speak chinese, she tries to understand what she is buying every day, at the supermarket She will like to find and try new chinese products but at the only condition to figure
  34. 34. Market Segment – Visitors in China  Shelly and Joen C. Who are they? Aged 38,29, Americans  Travelling around China for 3 weeks  What do they care about? They just speak English  They have preservatives allergies  They are worried to do not understand the ingredients of chinese products 
  35. 35. Market Segment – Visitors in China  Abel H.  Who is he? Aged 35, Libanese Works for an International Company based in Dubai Travels twice a month to China  What does he care about? He doesn’t speak chinese He faces many problems when he has to buy food and medical products in China
  36. 36. IV. User Acquisition Strategy
  37. 37. User Acquisition? Estimated User Data?     Different access to the App: 1. One time users - Tourists 2. a week/ 2 week users 3. Permanent Users – Expats Expats in China – 600,000 (derive the total market #’s here)  Visitors to China 20 Million 2012  Globally  ◦ 21% worldwide users smartphone  Market share: Android 70%  Apple 21%
  38. 38. User Acquisition  How will we get users, what does this mean
  39. 39. What kind of customers do we want? Loyal Customer Base: User that takes an action that ties back to ROI, such as purchase of premium version, repeat visits and registrations How to attract this type of customer? Targeted advertising- advertised on apps that have similar target demographic (travel apps, health related apps) Social media search optimization- targeted advertising on social media sites, YouTube video of app Promotion on FreeMyApps, Appsfire, FreeAppAlert Free month of use for logging in on Facebook, sharing with friends or registering your email
  40. 40. Users: Quality vs. Quantity Metric Download Acquistion Model Loyal User Acquisition Model Marketing Cost $40,000 $40,000 Downloads 110,000 27,500 Cost-Per-Download $0.36 $1.45 Registration Conversion 5% 35% Registrations 5000 9,500 Cost-Per Registration $8.00 $4.21 Value-Per-Registration $6.00 $6.00 Our ROI ($10,000) $17,000 Model Even though the Volume Based model delivers 4x more downloads at a lower cost, the Loyal User model delivers almost double the registrations and a much higher ROI Source: www.fiksu.com
  41. 41. User Acquisition Strategy What we want to avoid: Volume/Rank driven download acquisition • “Buying” downloads: Partnering with a marketing company that guarantees a certain number of downloads or a certain ranking • Too expensive- $1-2/ install. 20 million downloads (industry standard)= $20 million!?! • Use of possible fake accounts set up by agency, automated bots or cheap Chinese labor to boost rankings- App often never accessed or immediately deleted after download • Potential loss of membership to developer platformalready banned by Apple • Incentivized downloads- offering online rewards for downloading our app • Users known for leaving negative reviews
  42. 42. User Acquisition Strategy  Tapjoy and other agencies too expensive- 50-75% of a paid apps price per install, $0.35-0.57 per free install Acquisition can be as high as $1.31 per user (source www.venturebeat.com Focus more on Lifetime Customer Value, quality users not quantity Freemium version that promotes upgrade to paid verison
  43. 43. User Acquisition  Free month of use for signing up with your social media account, sharing with friends Cross promotion- advertised on apps that have similar target demographic (travel apps, health related apps) Social media search optimization, targeted advertising on social media sites Avoid incentivized downloads (users are rewarded with prizes or points for downloading an app)- banned by apple, lower quality of user, users are known for leaving negative reviews, benefits of increased app store rankings are quickly lost as the app falls out of the charts very quickly,
  44. 44. V. Financial Projections
  45. 45. Opening Action: decodeIN Financial Projections Q1 Q2 Year 1 Q3 Q4 Q1 Q2 Year 2 Q3 Q4 Income New Users Total users Fixed Fee Extra features Advertisment Impressions $ Add clicks $ TOTAL: 10,000 10,000 $39,900 $20,000 1,050 $ 2,975 $ $63,925 12,000 22,000 $47,880 $24,000 14,400 36,400 $57,456 $28,800 17,280 53,680 $68,947 $34,560 20,736 74,416 $82,737 $41,472 24,883 99,299 $99,284 $49,766 29,860 129,159 $119,141 $59,720 35,832 164,991 $142,969 $71,664 1,260 $ 1,512 $ 1,814 $ 2,177 $ 2,613 $ 3,135 $ 3,570 $ 4,284 $ 5,141 $ 6,169 $ 7,403 $ 8,883 $ $76,710 $92,052 $110,462 $132,555 $159,066 $190,879 3,762 10,660 $229,055 Expenses Payroll Programers Advertisment campaign Social media Expedia campaign TOTAL: $ $ 75,000 $ 8,000 $ 75,000 $ 75,000 $ 8,000 $ 8,000 $ 75,000 $ 8,000 $ 75,000 $ 8,000 $ 75,000 $ 8,000 $ 75,000 $ 8,000 $ 75,000 8,000 $ $ $ 5,000 $ 5,000 $ 93,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 93,000 $ 93,000 $ 5,000 $ 5,000 $ 93,000 $ 5,000 $ 5,000 $ 93,000 $ 5,000 $ 5,000 $ 93,000 $ 5,000 $ 5,000 $ 93,000 $ 5,000 5,000 93,000 GROSS PROFIT: $ (29,075) $ (16,290) $ (948) $ 17,462 $ 39,555 $ 66,066 $ 97,879 $ 136,055
  46. 46. Benefits: decodeIN Revenue Model     $3.99 One-Time Fee $1.00 Extra Features $0.85 Price Per Click $3.00 Impressions (1000) Save Time  Save Money  Reduce Health Risks   Product placement food & beverage
  47. 47. Detailed Financial Investment?  Charges: ◦ Cost per user to acquire ◦ Cost to link to databases  Google Translate – may not charge – just the app using the data  Wikipedia ◦ Cost associated with development ◦ Cost for Optical Character Recognition (can get open source for this feature) whatever is scanned in is what they took a picture (manually pick) ◦ Database could be in the phone
  48. 48. Costs to Develop One Time Costs IOS vs. Android Costs IOS: Annual Fee $99 per year Patent $625 - $825 for the filing fee $870 for the issue $565 maintenance for 3.5 years Total Universal Costs ~ $2,300 $20,000-$50,000 (6 months) Android: Annual Fee $100 per year $16,000-$40,000 (1-2 months) Both Code Audit: $8000 for a week Total Costs: User Acquisition + Development = $112,400 Total Revenues: 27,500 Downloads @ $3.99 = $109,725
  49. 49. Break Even Graph When will we launch our phases  How many users will we need to acquire 
  50. 50. VI. Total Investment Amount
  51. 51. VII. Total Investment Usage
  52. 52. VIII. IT Infrastructure Overview
  53. 53. IX. Security & User Privacy Policy
  54. 54. X. Identified Team Roles
  55. 55. Our Management Team
  56. 56. Miscellaneous
  57. 57.                  Expat Explorer is the world’s largest global survey of expats. Commissioned by HSBC Expat, a trading name of HSBC Bank International Limited, and conducted by third party research company YouGov, 5,339 expats were questioned through an online survey. Now in its fifth year, the survey continues to provide valuable insights into expat life around the globe. Individuals from six continents described the opportunities and challenges they experience living away from home. The survey provides an insight into how expat life differs from country to country, continent to continent and from an expat’s country of origin.
  58. 58.                  The report covers three key aspects of expat life: Expat Economics Expat Economics looks at a range of factors including expat earning levels, spending, saving and investing patterns, and the impact of the current global financial climate to paint an informed picture of expats’ economic situation around the world Expat Experience Expat Experience looks at expat quality of life including emerging trends on expat relocation, how expats keep in touch with friends and family, and their plans for retirement Raising Children Abroad Raising Children Abroad looks at three main factors deemed important for expat parents: childcare, health and wellbeing, and education and integration
  59. 59.        BEIJING - Results of the 2012 Amazing China The Most Attractive Chinese Cities forForeigners survey were released. Expats c hose Shanghai, Beijing, Shenzhen and others asChina's 10 most attractive cities f or foreigners. The cities that made the top 10 list are: Shanghai, Beijing, Shenzhen, Suzhou, Ku nming,Hangzhou, Nanjing, Tianjin, Xiamen and Qingdao. Launched in September 2012, the voting invited 175,400 expats over the past yea r to appraisetheir favorite Chinese cities BEIJING - Results of the 2012 Amazing China The Most Attractive Chinese Cities forForeigners survey were released. Expats c hose Shanghai, Beijing, Shenzhen and others asChina's 10 most attractive cities f or foreigners. The cities that made the top 10 list are: Shanghai, Beijing, Shenzhen, Suzhou, Ku nming,Hangzhou, Nanjing, Tianjin, Xiamen and Qingdao. Launched in September 2012, the voting invited 175,400 expats over the past yea r to appraisetheir favorite Chinese cities Updated: 2013-04-09 17:28 ( chinadaily.com.cn)
  60. 60.               Optical recognition system Match with the format of list of ingredients Database on the smartphone Sequal lite Every ten medical words it cost 20 rmb/ translation company for let’s say 1000 words – price? We have to choose between food cosmetics and medications Free scan barcode and try to figure out Protection/ user partner / to do not run the risk that someone else copy in other country Only in china? User of Android vs Iphone / local phone don’t have google player Better Apple for this reason (above) Find out if there are direct or indirect competitors ( and eventually explain why we are different with our APP) Different features – to kill the competitors Don’t be cheap with project!
  61. 61. Features (Mobile Phone) (Each feature can have a price associated) 4/5 + 8/12 + 12/14 (77.4%) 31 China Mainland Ex-Pat – 593,000 Smartphone Users 77.4% = 355,252 Android Users 71% = 248,676 Visitors (permanent users) 57,160,000 to China 21% Users 8,400,000 SQL Lite – database is already in the phone – cost for data (by words, every 10 medical words will cost 20 RMB – phone up a translation company (1000 medical words, how much will this cost?) Buy access fee – search words (medical key word translation services) (medical translation database) (cosmetic translation database) Download a free bar-code reading app - click on the app to see the data coming back. Could get standard information (service agreements – don’t allow the database to make an app) what country, anyone can duplicate and launch into another country – what is the largest companies? Partner with them . People with allergies, cosmetic ingredients (some preservatives are in these products), can’t find substitutes to, Cosmetics, Medication, Food - could be 3 phases (huge categories) similar working ingredients – what is it called? What is it for? (Narrow to one product catalog) Launching in China – don’t leverage off the cloud as much – probably don’t need a Whofe – sold in the US apple Store & China apple Store – Android – what % of people actually purchase? How many people in ex-pat community are using the android phone vs. I-phone Upfront costs for android much less and more Android Phone (local does not have Google play) only the carrier service app-store What is the chance of the app getting duplicated using Android platform Research – who are the competitors –(any known? Direct or indirect) what makes the app unique. Allergies – market research – show this on the slides (back up slide) Will probably cost $1 MM plus USD
  62. 62. Q&A Thank you!

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