Mobile Learner

B6554
Mobile Commerce

Mobile Learner

Presented to

Prof Arthur Lee Gilbert

Prof Olaf Rieck

Project by

Chang Ee Chia

Regina Marini


Mobile Learner

Business Plan

February 2004

Business Plan – NTU20040229

Regina Marini & Chang Ee Chia

Block 309 Hougang Avenue 5 #10-289

Singapore 530309

+65-6283-4158 / +65-9660-1620

This document contains confidential and proprietary information belonging exclusively to

Regina Marini & Chang Ee Chia

Executive Summary

  1. Vision and Mission

Mobile Learner is a pioneering and enterprising start-up company, offering a training solution, which will transform the company into the premiere service provider for learning on wireless platform.  Our mission is to be the most practical and innovative solution for fast and effective learning.  We aim to become the dominant player as a content provider for education and training in the mobile commerce marketplace.  Our products and services will provide convenience to learners and be an ingenious tool for trainers.

  1. Products and Services

Mobile Learner will launch products and services in three phases:

  1. Phase 1 – Educational Tool for Students

Mobile Learner will initially be an assessment tool for secondary school and tertiary students preparing their examinations and will also cover content for major examinations like G.C.E. ‘N’ levels, G.C.E. ‘O’ levels, G.C.E. ‘A’ levels, and SAT examinations.  Students revising for examinations either sign-in via WAP or SMS for revision questions.  When they submit their answer, they will be given their score, and the correct answers to those questions that they did not get correct.  Students can also sign-in via WAP or SMS for mathematical formulas, notes or subject summary.  The focus will be on core subjects like Mathematics, English, second languages, like Mandarin and Malay, etc.  We will then move to specialised subjects like Physics, Chemistry, Biology, History, Geography, etc.

Individual student performance will be captured, and parents can monitor their children’s performance, either via SMS, WAP or online through the Mobile Learner website.  In addition to being a fuss-free monitoring tool, Mobile Learner has the added advantage over tuition services, as parents get unbiased information on their children’s progress.  Mobile Learner will also be a more cost-effective than tuition services in the long-run.

As an assessment tool, Mobile Learner will complement students in their studying.  It will help students diagnose their current understanding of a subject and discover the gaps in their knowledge and areas that they need to review during their preparation for an examination.

  1. Phase 2 – Complementary Tool for Teachers and Book Publishers

Having established Mobile Learner as an assessment tool, we intend to become a service provider to schools and educational institutions.  Mobile Learner is a natural extension of e-learning and can complement the existing e-learning strategy that schools and educational institutions are currently implementing.  Teachers will find Mobile Learner a good tool for homework and assignments, as it is self-marking, and is able to explain to students the correct answer for questions or problems that they did not understand.  In addition, teachers can monitor their students’ progress and learn more about studying patterns.

Educational book publishers currently include e-learning supplements on CD-ROM or website with the sale of their book.  Mobile Learner could be included as an assessment tool.  This would provide additional value to the student.

  1. Phase 3 – Corporate training tool

As a training tool, Mobile Learner has tremendous potential as a complementary corporate training tool.  Mobile Learner could be used tool to enhance dissemination of information within the organisation.  Since Mobile Learner is accessed by a cell-phone, it had a more real-time reach compared to email and corporate portal.  Mobile Learner could be used as fuss-free certification tool, to ensure that employees understand new product and service offering, improving the level of customer service.  In addition, front-line staff, like sales and field technical support personnel, could use Mobile Learner as a refresher while they are at the customer location, without the embarrassment of the letting the customers know they lack in information.

  1. Marketing Strategy

As a learning tool for students, Mobile Leaner would be available to both subscribers and ad-hoc users.  Subscribers have access to a full range of products, while ad-hoc users would be offered a limited range of products.

  1. Product

Mobile Learner’s initial product strategy would be a content provider on WAP and SMS platform.  The product would be organised by quizzes, by topic, by subject.  A quiz would comprise ten questions.  Each topic would have three levels of quizzes – beginner, intermediate, advanced.  On average, each subject would offer ten different topics.  Students can request hints to a question, formulae and notes on the subject.  Each subject offers a test of 30 questions, drawn from different topics and different levels of difficulty.  Upon completion of a test, students with good performance would get a reward like downloading a ring-tone or logo, etc.   Mobile Learner tracks each subscriber and ensures the same questions would not be offered again unless the student has gotten the answer wrong on the previous attempt.  User personalisation tools such as setting reminders and scheduling of topics would be offered.  In addition, progress reports would be sent to parents, if this service is selected.

Ad-hoc users are likely to be trial users, students who need a quick revision just before a test or examination, or students just want to revise a particular topic.  Ad-hoc users would select from quizzes with 2, 5 or 10 questions, in a particular topic, as and when they sign-in via WAP or SMS to Mobile Learner.

  1. Price

The marginal cost per additional user of Mobile Leaner is negligible.  Hence, penetration pricing strategy (i.e.: affordable prices) would be used.  This would enable us to gain a critical mass of subscribers quickly.  This would create a network effect, and users are likely to promote the products to their peers.

A subscriber would pay $60 per subject, which would comprise ten topics, each with three quizzes of 10 questions each.  A test comprising 30 questions would cost $6.  If the subscriber requires a progress report to be sent to the parents, an additional charge of $5 per subject would be levied.

For ad-hoc usage, the price would be $1.00, $1.50 and $2.00 for quizzes of 2, 5 and 10 questions respectively.

At implementation, odd-even pricing tactic - $59 per subject, and price bundling - $64, would be used to attract subscribers to Mobile Learner.  

  1. Promotion

As Mobile Learner’s initial target market would be students, our promotion strategy would be to inform and educate potential customers of our product.  We need to build the image that mobile learning is a valuable learning tool for students, and convert existing e-learning users to mobile learning.

Advertising for Mobile Learner would done mainly through media which target students like TV Mobile, free sheets like Today and Streats, tabloids like The New Paper, Computer Times, publications like Lime Magazine, and radio stations like Perfect 10.  Mobile Learner would also be promoted at school events through sponsorship at Sports Day, etc.

  1. Distribution

As a start-up company, we intend to establish ourselves and grow through strategic alliances with educational institutions and book publishers.

At the initial stage, Mobile Learner will be concentrated in Singapore education and corporate training market.  However, this model is portable in any other market.  However, the content is be customised to each market.

  1. Business Model

As a content provider, our main value proposition is to provide on-demand training to learners.  Our solutions not only provide convenience, but enable the user to be mobile.  Unlike current e-learning solutions, Mobile Learner users are not restricted to be in front of a PC.  To commence learning activities at Mobile Learner all that is needed is a cell-phone.  This enables the user to learn in a short period of time, even if the user in queue waiting to buy lunch! Revenue Model consists of both subscription and pay-per-use basis.

  1. Action and Funding Requirement

  1. Action Plan

To launch, Mobile Learner needs a database of 15,000 questions and some development work.  Hosting of the WAP services could be outsourced after the development has been done.  On-going development is necessary monthly to expand on the database to include content for more subjects.  

  1. Financial Analysis

Our initial estimates are that the setup cost is $30,000 for a database of 15,000 questions.  Total monthly cost for the first year is estimated at $300,000, including cost of on-going developments.  Assuming customer base of subscribers and ad-hoc is 30% and 70% respectively, first year’s pre-tax income is estimated at $200,000.  Break-even is forecasted in Year 2.

  1. Funding Required

An estimated $300,000 is requested for funding for this business.


Table of Contents

        

1.2        Mission        

1.3        Products and Services        

1.4        Business Model

        

2        Market Analysis

        

2.3        Target Market        

3        Marketing Plan

        

4        Operational Plan        

4.1        Product Development

        

5        Financial and Contingency Plan        

5.1        Profit and Loss Forecast        

5.2        Break-Even Analysis        

5.3        Funding Required        

5.4        Risk Analysis        

5.5        Exit Strategy

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  1. Organisational Plan

  1. Company

Mobile Learner is a pioneering and enterprising start-up company.  We offer creative products and services, which will transform the company into the premiere service provider for learning on wireless platform.  

  1. Mission

Our mission is to be the most practical and innovative solution for fast and effective learning.  We aim to become the dominant player as a content provider for education and training in the mobile commerce marketplace.  Our products and services will provide convenience to learners, and be an ingenious tool for trainers.

  1. Products ...

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