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 Analysis2.1 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.

Table 1

2.2 Market Overview: The Global VillageNo. 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

Table 4:

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 themeither 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.

Table 3:

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 servicesare 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. GoalBenchmarks: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 ServicesMore Expensive Basic ServicesPremium ServicesCancelled or unde-livered

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.Strategy4.1. 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.Tactics5.1. 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 OfferingFor 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 billTo 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. Implementation6.1. Infrastructure:

Company

Marketing & Business Development

Procurement & Supply Chain

Tech Support

Web & App Development &

MaintenanceContent

Development (DIY)

Online and Telephonic

Professional Assistance

Company

Marketing & Business Development

Procurement & Supply Chain

Tech Support

Company

Marketing & Business 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

Marketing & Business Development

Procurement & Supply Chain

Tech Support

Data Analytics

Advertising

MobileMass Media

Online, social

media & PR

Operations

Marketing

Business Development

ExpansionIdeation

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 monthsAccording 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.

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lR8/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_finan

cial-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-marketpla

ces-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.j

pg• 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-File

s.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