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Business Plan for Colourful Life, an App for new residents in a community - Page 1

Business Plan for Colourful Life,

an App for new residents in a community

1. Issues in the community

Melbourne and the state of Victoria are destination of many migrants, international students

and expatriates. But many of these new residents are not familiar with surrounding areas that

they just start to live in, study at and work at. The majority of them also do not have many

friends around. The time for them to fit in is usually quite long and struggling. If they are

provided a handy guide, not only the time for them to familiarize themselves with local

communities would be reduced significantly, but businesses in those communities could

enjoy a bigger market faster.

2. Description of the App

The App will provide detailed information about shops, restaurants, gyms, entertainments

and services in the local areas for the new residents. At the same time,new residents will be

provided special ‘group purchase information’. They can join different groups to do things

together to make friends, to save money and to make the experience more interesting. On

the other hand, the App will give local businesses a great opportunity to introduce themselves

to the potential new customers.

3. Value Propositions & Competitive Analysis:

3.1 Value Propositions

People will want to use this App because it provides detailed information about shops,

restaurants, gyms, entertainments and services in the local areas, not only in the big

shopping centres, but also those along the roads. The App will greatly facilitate them to

fit in the local area, and allow them to build up sense of belonging sooner.

The App can help customers to enlarge their social network. Customers can make new

friends by joining in different groups activities.

In this App, both the shops’ owners and the customers can organise a group activity. Shops

can send out notifications about their recently group purchasing information and

customers can click the events to join in. Also, customers themselves can start a group

activity, such as inviting people to watch a film or to go to have a meal together. The

number of people joined can also be set to control the size of groups.

Local businesses will also welcome this App because it can connect businesses with new

customers effectively.

3.2 Competitive Analysis

There are several similar Apps on the market currently: for example,Facebook and Zomato.

Compared with Facebook, this App is not focussed purely on social media because it has the

function to provide customers with information about shops and group activities. During

some big events, Facebook will have similar notification and ask its users whether they will go

or not, but for this App, the group activities are closer to people’s daily life and limited to local

businesses that are geographically closer.Meanwhile, both consumers and businesses can

initiate activities.

When comparing with Zomato, Colourful Life allows customers tosee their friends’ activities

related to the stores they are searching. Also Zomato is a guide of restaurants, while our App

affords information of business in a much wider array.

At the same time,this App stands out from others because its function of finding friends is not

only about establishing one-to-one friendship. The function helps people to meet other group

of people which all have same interests towards something and reduce the risk of meeting a

stranger alone. Therefore, this App makes the finding friends process safer and more efficient

than other Apps.

Also, this App is not simply a fixed database of information. Shops owners would have another

special interface to update their shops information and send out news about their promotion

activities. Business can release group purchasing activities with a certain amount of discount

to a group of people that reaches a certain numberto attract more customers.

4. Market Size

According to the statistical data of net interstate migration, net overseas migration and

international students, there were 10,200 interstate migrants, 54,000 overseas migrants

moving into Victoria in 2015 and the current number of international students in Australia is

over 400,000. Therefore, it is estimated that, if 60% of these migrants, 70% of students and

40% of the local residents are going to use this App (Some people may be too old to learn

how to use mobile phones, some people may cannot get to know this App, some people may

not interest in this App).There are over 300 suburbs in Melbourne; and if it is assumed that

there will be a average of 250 people in each suburb using our App, there will be over 85,000

people using this App potentially, and this number will keep increase annually by at a rate

around 8% each year. (There will be more people using this App in the city and fewer people

using this App in countryside due to different population size)

5. Revenue Stream

It is free for consumers to use this Apps, and the revenue will come from businesses.

When a shop owner registers on the App to promote information about the shop, the owner

needs to pay $300/year/shop, which is acceptable according to our research. Also through

our research, there are around 87 shops along the Whitehorse Rd (an important main road

for Balwyn, a suburb consisting of a decent proportion of immigrants). Assume that there are

around 20 roads or local shopping centres like the Whitehorse Rdin Melbourne, there will be

nearly 1,750 shops and the maximum possible revenue will be $525,000 a year. Also, there

be new shops coming up and old shops closing down. If we assume the net shops increase is

40 shops annually, another $24,000will be gained each year.

If a shop wants to make an advertising, such as appearing on the starting interface or

becoming the first shop in the search result list, they will have to pay extra advertisement fee.

This will be another stream of revenue for Colourful Life.

6. Branding and Promotion:

6.1 Logo

The blue background stands for the blue sky of Melbourne and in the middle is a piece of

ginkgo leaf. The reason for choosing ginkgo is because ginkgo trees is a type of ancient trees

and they are full of vitality and Colourful Life is expected to become as lively as this kind of

tree and to make people feel energetic to start their new life. The yellow and green colour

symbolize the time change from spring to autumn year by year. And the extending meaning

is no matter how time pass by, the App will always benefit people and will never disappear.

6.2 Promotion & Distribution Channels

When there are new residents moving into a new suburb, they always get a brochure from

the local City Council called New Residents Booklet or New Residents Brochure. In the

brochure, it covers everything, from the public transport information to the events which are

held by local communities. We can request the local City Council to add another page that is

about this App into the brochure to encourage the new residents, new migrants and the

international students who just come to this place to use this App to quickly get familiar with

the surrounding area and to make new friends. In our research, the City Council of Boroondara

is open to this idea.

Also, we can introduce our App to different schools and teachers and coordinators of

international students can encourage new students to use this App to get familiar with the

new environment. At the same time, leaflets and handout can be printed out and delivered

to houses. Ads about the App can also be put on local newspapers and City Council websites.

7. Further consideration

1. Because migrants and international students come from different countries. Different

language versions such as Chinese, Korean, Indian versions may be made in the future.

2. Sign up and Log in options may be connected to other social medias such as Facebook and

Instagram

3. Authorization of Google map (Get actual permission from Google to be allowed to connect

the App to Google map.)

8. UI designs

9. Shop Survey Whitehorse Rd

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