Professional Documents
Culture Documents
1.EXECUTIVE SUMMARY......................................................................................2 2.BUSINESS OVERVIEW......................................................................................4 2.1.COMPANY OVERVIEW:.............................................................................................................4 2.2.SERVICE OVERVIEW................................................................................................................4 2.3.VISION:.............................................................................................................................5 2.4.MISSION:...........................................................................................................................5 2.5.STRENGTHS AND CORE COMPETENCIES:.........................................................................................6 2.6.CHALLENGES:.......................................................................................................................6 2.7.WHY DO PEOPLE NEED THIS SERVICE?...........................................................................................8 3.INDUSTRY OVERVIEW......................................................................................9 4.MARKETING PLAN..........................................................................................10 5.1.MARKET ANALYSIS:..............................................................................................................10 5.1.1.Market Description...............................................................................................10 5.1.2.Market Size...........................................................................................................10 5.1.3.Market Growth: ....................................................................................................11 5.1.4.Market Opportunities:...........................................................................................12 5.1.5.Target Market.......................................................................................................13 5.1.6.Regulations:..........................................................................................................13 5.1.7.Porters Five Analysis:............................................................................................14 5.1.8.SWOT Analysis:.....................................................................................................16 5.2.MARKETING STRATEGY..........................................................................................................17 5.2.1Value Proposition...................................................................................................17 5.2.2Branding................................................................................................................18 5.2.3Marketing Objectives.............................................................................................19 5.2.4Strategy.................................................................................................................19 5.3.MARKETING MIX:................................................................................................................20 5.3.1.Product/Service Strategy:.....................................................................................20 5.3.2.Pricing Strategy: ..................................................................................................21 5.3.3.Place Strategy......................................................................................................22 5.3.4.Promotion Strategy:..............................................................................................23
FIGURE 1: U.S MARKET SHARE OF MOBILE ADVERTISEMENT 2011($ MILLIONS).....9 FIGURE 2: GROWTH OF U.S MOBILE ADVERTISEMENT ($ MILLIONS).....................11 FIGURE 3: POTENTIAL GROWTH OF U.S MOBILE ADVERTISEMENT ($ MILLIONS). . .11
1. Executive Summary
Lay Bros LLC will be a high technology mobile advertising application for smart phones (Android and Apple initially), located in Georgia, USA.
People will be able to download it to their phones using the Android market place and advertisers will pay us to be able to advertise with us. Users will be rewarded with different benefits on listening to advertisements or reading messages. Our applications will be innovative and appealing; we will offer variety of categories for all sorts of companies and industries. We have some of the greatest minds in the software industry associated with our organization. Our main goal is to increase our market share and build brand identity internationally through online operations. We will develop very attractive and user friendly website, where our customers can share their experiences and queries. Lay Bros LLC has many strengths, such as customized solutions, consultancy, competitive pricing, continuous support, expertise in multiple industries, innovative ideas and creative team. The objective of the service is to earn maximum profits by introducing this app to maximum number of users around the world and introduce these users to companies and businesses according to their target market needs and give benefits to users and earn commission from businesses by marketing their services. Our promotion strategy in start will be PULL STRATEGY. We will use multiple channels to advertise our services. Our main advertising strategies will be based on product comparison advertising and product Benefits advertising. We will promote our services through some above the line mediums and we will give more weight to online market in start. Our online business model will allow us to cut our costs and flexibility to operate from anywhere.
2. Business Overview
2.1. Company Overview:
Lay Bros LLC will be a high technology mobile advertising application maker for smart phones (Android and Apple initially), physically present in Georgia, USA; to feed the market with high standards. There are already many local and international firms working all around the globe and dealing in phone apps solely made for the purpose of marketing, but we will introduce ourselves with innovative and most effective marketing apps for smart phone users. Our main goal is to increase our market share and build brand identity internationally through online operations. We will offer ultimate apps for smart phones, like; android and apple makes. We aim to meet the market demand as per the standards and need. We will attract the users throughout the world through our online services. We will provide our services globally; any one can download our applications through our easy to use website on competitive prices. We will create our own titles and we will offer Old media has its own significance where new media has its own popularity and importance, but if we merge both then it can work far faster and better than they work separately. My idea is to cash this merging effect through such an application which will increase the response overnight and the results are exceptional for companies to advertise their to only those users who are interested in mobile advertising.
current scenario where competition is so much intense and businesses needs new ideas to market their products. The rise of smart phone and 3G technologies also make job easier for companies to market their products through new mediums such as mobile phone tones, MMS, SMS and web searching on mobile. Users can any time switch off this application and this will help them to get latest updates. Our applications will be innovative and appealing; we will offer variety of categories for all sorts of companies and industries. We have some of the greatest minds in the software industry associated with our organization. Their skills and talent will help our company to reach the next level. We have the best designers and programmers; who can create innovative apps and new ideas so frequently. We will develop very attractive and user friendly website, where our customers can share their experiences and queries. They can also interact with other users and build community and can take advantage of group and affiliate marketing. Slogan: Advanced marketing solutions with new age media
2.3. Vision:
To become one of the top innovative marketing app publishers in the world
2.4. Mission:
To serve the customers as per their requirements with best innovative ideas and customized marketing apps for Android, gain maximum market share of marketing applications for smart phones To accomplish this, we focus on; quality of services, long term relations with our customers and interactive communication, demanded products and companies according to the taste and demographics of consumers, best graphics and technology. We will aim to provide them immediate solution by engaging consumers and dramatically increasing brand awareness.
2.6. Challenges:
Intense competition and many companies fighting for share in the market Lack of fund to build reputation in market Lack of funds in start for expensive marketing budget
One of main challenge is to convince people and bring them to our platform and buy our apps
3. Industry Overview
Mobile advertising is one of the most attractive, entertaining, and effective medium of marketing industry especially in the U.S.A. This is a rapid growing sector which enables marketers and businesses to send their message across to consumers quiet easily. This sort of advertising is very beneficial for advertisers to market their products and services. The media encompassing mobile advertising include mobile web sites, mobile applications, mobile messaging and mobile video.
Figure 1: U.S Market Share of Mobile Advertisement 2011($ Millions)
Source: Jpmorgan1
In the Year 2011, the share of mobile message advertising was around 82%; where the mobile search advertising stands at second with share of 10% and the share of mobile display advertising stands at 8%.
4. Marketing Plan
5.1. Market Analysis:
5.1.1. Market Description According to a research conducted by a private firm in 2010, U.S. is considered as the second largest in terms of mobile advertising market after Japan2. The number of active mobile subscriptions was beyond 300 million in 2010 and this figure is expected to grow in coming years. Due to high usage, the average expenditure on mobile advertising campaign stands at almost $75,000 to $100,000 respectively. Another study confirmed that about 50% of U.S. mobile population goes through advertising option3.
5.1.2. Market Size The total population of mobile users aged 13+ is around 233 million, out of which the largest share goes in account of users of mobile web, which are about 107 million 4. According to data collected by a research firm in which about 100.7 million mobile users make use of text messaging, mobile web was used by 34.1 million users, 24 million consumers download content, 14.6 million peopled used web searches and web video was checked by 9.3 million users5. In the USA, the total number of mobile advertising campaigns was around 8,000 and the average volume of new campaigns was 21.8 per day6.
Techcrunch, accessed on 10th June 2011, available at: http://techcrunch.com/2010/11/02/smaato-u-s-will-spend-5-billion-on-mobile-advertising-in-2015/ 3 Techcrunch, accessed on 10th June 2011, available at: http://techcrunch.com/2010/11/02/smaato-u-s-will-spend-5-billion-on-mobile-advertising-in-2015/ 4 Jpmorgan, accessed on 11th June 2011, available at: https://mm.jpmorgan.com/stp/t/c.do?i=E8283-B8&u=a_p*d_423260.pdf*h_2tvncakf 5 iab, accessed on 11th June 2011, available at: http://www.iab.net/media/file/moble_platform_status_report.pdf 6 Techcrunch, accessed on 10th June 2011, available at: http://techcrunch.com/2010/11/02/smaato-u-s-will-spend-5-billion-on-mobile-advertising-in-2015/
5.1.3. Market Growth: It is forecasted that in U.S. the users of mobile internet through handsets will go up and reach 158 million in 2015 and the income from mobile advertising and mobile ecommerce is immense and it potential growth will rise 37% on mobile advertising market and 65% on mobile ecommerce during 2009 to 2015 correspondingly7. At the early months of 2010 about 25,000 mobile applications were launched by apple store and more than 800 million applications were downloaded by consumers8.
Figure 2: Growth of U.S Mobile Advertisement ($ Millions) Figure 3: Potential Growth of U.S Mobile Advertisement ($ Millions)
Source: Jpmorgan9
Source: Jpmorgan10
In the year 2011, the revenue from mobile advertising is around $5,099 million, which was up from $3,790 million in the year 2010; almost growth of 34.53 %. Its Potential
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Sutherla, accessed on 10th June 2011, available at: http://sutherla.blogspot.com/2010/04/usa-forecast-growth-to-158-mobile.html 8 Jpmorgan, accessed on 11th June 2011, available at: https://mm.jpmorgan.com/stp/t/c.do?i=E8283-B8&u=a_p*d_423260.pdf*h_2tvncakf 9 Jpmorgan, accessed on 11th June 2011, available at: https://mm.jpmorgan.com/stp/t/c.do?i=E8283-B8&u=a_p*d_423260.pdf*h_2tvncakf 10 Jpmorgan, accessed on 11th June 2011, available at: https://mm.jpmorgan.com/stp/t/c.do?i=E8283-B8&u=a_p*d_423260.pdf*h_2tvncakf
figure illustrates that in 2012 the sales will raise to $6,303 million which shows 23.61% growth.
Figure 4: Growth of Store Application in U.S
Source: Jpmorgan11
The above charts show that the growth of Apple and Android applications is huge and majority of applications sold in past are of these two platforms. The above numbers are showing that we have selected right platforms for our application.
5.1.4. Market Opportunities: There are many opportunities in the market for Lay Bros LLC, such as: U.S. economy has now recovered from recession, which means an increased investment in new businesses. Advertising and social media marketing industry is on the rise all around the globe and in U.S.A these markets are growing at much faster rates. These growths also cause expansion in demands for advertising and public relation. No one in the market is offering solutions like us, so first mover advantage is another opportunity for us to count on.
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All these facts together give us enough room to count these opportunities and penetrate in the market. 5.1.5. Target Market
Our primary target market is Android mobile users and this is our primary target market; according to above table the total target market for our business is 30.2 million users.
5.1.6. Regulations: Privacy Laws Consumer Information Security law Tax Laws Business Laws Domain Registrations
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Competitive Rivalry: There are many service providers in the mobile advertising application market following different channels to attract the clients. Market is growing and very competitive. Many small and big service providers are working in the market. Online business and ecommerce makes market more intense and international firms also now part of this market and companies from all around the globe giving services.
Bargaining power of Customers: In service industry for business to business market, clients always look for the quality services without paying high prices; since they seeking quality and increase profitability. Almost every high quality service provider charging very high prices due to high demand and customization of highest level and customers power in this industry is high.
Bargaining power of Suppliers: In this industry supplier is charging low prices, since demand is high but the outsourcing and international giants now giving competitive pricing and market is now much more competitive because of saturation and lots of players entered in the market. That is why now the suppliers power is slightly reduced.
Level
High Medium High High High
Threat of Substitute: There are some substitutes available in the market for mobile marketing through smart phones, either client go for traditional mediums or normal SMS marketing but high usage of smart phone reduce the threat of substitutes.
5.1.8. SWOT Analysis: Strengths: Customized Services: Knows the art of blending media to give maximum results to both clients and users: First mover advantage: Vast range of services Experienced Staff Low pricing against high quality services Global Reach Experience of vast range of industries Strong relationships with corporate world Customized software
Weakness: Lack of the funds Low marketing budget No goodwill in the market Low staff in the start Hard to afford full time staff Hard to build trust initially
Opportunity: New market and growing rapidly all around the globe Economy is recovered from recession and now prospering No one in the market is offering combined package like us
Threats: Damage to database Change in Mobile Internet costs Economic recession Change in laws and regulation Hacking
Lay Bros LLCs core value proposition is that it will add value to its services by providing most effective services at competitive prices. It will offer innovative services, these services including; best use of mobile to advertise to right target market and get results in real quick time.
5.2.2 Branding We position Lay Bros LLC as a brand, which will offer variety of quality services at attractive pricing and margins as compare to industry practices. We will position ourselves as a unique service provider; that will save money and time of its client and give them desired results in much affordable and effective manner.
5.2.3 Marketing Objectives Lay Bros LLCs marketing objectives are very simple and clear. We want to focus on mobile advertising app for Android and support old and new media and mix them in a way that our consumers will get best possible results by reaching right target audience and we can serve them for longer period of time. We will market our business aggressively to build brand equity and company image in the country; to offer quality solutions, low pricing and get trust of our customers by fulfilling their demands and needs. Our primary objectives are: Service Objectives: We have innovative ideas for businesses of USA initially; who are looking for trusted Marketing/ advertising solutions. We will offer most trusted services and we will offer maximum benefits to our clients and users. We also want to give customized services, and we will understand the needs of every individual client by researching their past results and assess their needs and then we come up with best mix of mediums and find right target audience for them and market their products/services to get their desired results in most affordable manner. It will save time and money for our clients. Financial Objectives: Our prime target is to minimize our operational and unnecessary costs and become most profitable app making business; which offer most trusted services to all; consumers, consumer businesses and B2B businesses. We will advertise their messages in a way that will save costs and efforts of our team and of our client. We will generate maximum revenue by offering multiple services to diversified clients and satisfy our investors and employees by giving them maximum returns. Company Growth Objectives: Initially we offer services in USA, then we move to other locations and we will cover whole American region and other nearby countries. We want to expand our business to those countries where opportunities are exist and market is attractive (most likely USA and Japan) and people need mobile marketing/advertising services, such as, India, UK, China and Australia. Our growth strategies are to expand our network to different locations all around the world, especially high demand areas where businesses and economies are huge, and usage of smart phones is also high such as; China, India, U.S.A, UK, etc. 5.2.4 Strategy Business Strategy: Our main strategy is to make sure services will be right according to the demands of the market and give maximum benefits to our target market. We want to fill market gap by
offering low cost, customized, quality and result oriented platform for businesses to cater there target market and build long term relations with their customers. We will build very good relationships with our vendors, suppliers and investors to get maximum benefits for our business. We will do strategic alliances and partnerships with vendors for timely delivery, better costs and improved quality.
Sales Strategy: We will offer our customized and effective app to vast market in all sorts of industries; more importantly in affordable prices as compare to high price industry practice, all these services are unique and will add value to the business and customer growth of our clients, safe money and time for them. We will offer very low prices and low margins and give them winning strategies based on market and business research. These core competitive advantages make us unique to promote our business and services.
usage is very high. Company product strategy is developing a most customized app for businesses to reach their target market through use of Android phones. The objective of the service is to earn maximum profits by introducing this app to maximum number of users around the world and introduce these users to companies and businesses according to their target market needs and give benefits to users and earn commission from businesses by marketing their services. Users of this service can get multiple benefits, like; its an easy to get, easy to monitor, easy to implement and easy to turn off; can help users to save time and earn money while get updates of different products/services. No one yet introduce such idea of mobile marketing through apps and offer most result oriented yet quick solutions in low prices. In this way this service is totally differentiated and unique to the people and businesses of U.S.A. This service is not like traditional mediums not yet only focusing on to give information but its a perfect platform to reach only interested customers who really need any particular products or services and separately these services can cost lot of money and time but with us both are reduced to extreme level.
5.3.2. Pricing Strategy: Since we are new in market and we cannot compare us with any other service because we are offering entirely unique services and unmatched packages. Therefore, we have chosen a Penetration pricing strategy.
In order to make sure that the pricing of services we are going to charge are affordable and users of our services feel no issues paying for that because we are offering variety of services that are considered very specialized in their own field. We will charge very low prices against quality services with state of the art monitoring tools and software and unlike industry practice of high pricing.
5.3.3. Place Strategy We will use different channels to reach our target market. We will follow traditional chain but with innovative strategy and use of technology. We will use our all contacts and past experience to increase our client base. We will be present physically at Georgia, USA. But we will market and do business online. This online business model will allow us to cut our costs and flexibility to operate from anywhere. This online business will also allow us to market our business more easily when online marketing is on the boom. Our website will be: WWW.LayBros.com
5.3.4. Promotion Strategy: Our promotion strategy in start will be PULL STRATEGY. We will use multiple channels to advertise our services. Our main advertising strategies will be based on Product comparison advertising and Product Benefits advertising. We will create awareness about our service, its benefits and functions in the start. We will give emphasize on two objectives in start, create awareness amongst the target market and build brand name as a most effective advertiser in the market. We will promote our services through some above the line mediums and we will give more weight to below the line activities in the start.
Suggested Mediums:
We will give emphasis to online channels of advertising. Our some of the advertising mediums we selected are as follows: Online Channels:
Social media marketing: Social Media have become a large part of online traffic, and it continues to grow. Now more than ever, it's imperative for us to take advantage of the marketing opportunities available through social media. We will utilize social media to promote our business and create pages on social networks, such as Facebook, MySpace, Orkut, Twitter etc. Search Engine Optimization: SEO may target different kinds of search, including image search, local search, video search and industry-specific vertical search engines. This helps give us a web site web presence. Internet Advertising We will also promote our services on Internet and related online directories. We will advertise through banner ads on websites. We will pick high traffic websites related to sectors we are targeting for enterprises. We will also utilize our website to promote our business through internet marketing. Our website will be www.LayBros.com.
Initially we will promote our business in USA, and one year cost of advertising will be $15,000 for first six months right after launch of business.
Social media advertising Rate 10 hours per week @ media $100 per hour = $1,000 per week
We will do 5 hours per week for first six months right after launch of business; which will cost us $13,000.
Banner Advertising
Type
Popular sites Source: Workz15
impressions
per thousand (CPM)
Rate
$25 to $70
We will place ads on popular websites and it will cost us around; 20,000 CPM per month for whole first year right after launch of business; $6,000
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Optimum7, accessed 30th Nov 2010, available at: http://www.optimum7.com/internet-marketing/internet-marketing-management/internet-marketingcosts.html 14 Dannybrown, accessed 30th Nov 2010, available at: http://dannybrown.me/2010/01/17/the-real-cost-of-social-media/ 15 Workz, accessed 30th Nov 2010, available at: http://www.workz.com/content/view_content.html?section_id=515&content_id=5619
Location Worldwide
Source: Onlineearning
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We will advertise for whole year right after launch of business; which will cost us around: $6000
$40,000
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