Business Plan: Mobile Edge Advertising

Authors Avatar

Page  of

Business Plan: Mobile Edge Advertising

        


  1. Table of Contents

I.        Table of Contents        

II.        Executive Summary        

IV.        Product Range        

V.        Marketing Plan        

VIII.        Startup Expenses and Capitalization        


  1. Executive Summary

Mobile Edge Advertising is an exciting new venture that seeks to capitalize on the emerging advertising market on mobile phone applications.  We will design interactive applications that blend our clients brand image along with functional features.  These features can range from simple expense calculators, to elaborate online ordering systems, and games.  We believe that associating a clients brand with these functions will encourage downloads and multiple uses, providing a very effective advertising method.  Companies such as Lexus, Coke-a-Cola, and Dominos have already expressed satisfaction in using apple apps as a form of advertising.

In house development of applications can be extremely expensive, ranging from 10,000-100,000 euro for an application with a web interface.  Our company’s products will be far less complex and rely on the creation of basic templates for creating applications.  As a result our costs will be significantly less and we will be able to target a section of the market who otherwise could not afford to have an advertising presence in the Apple or Android application market.

In 2006 the amount of money spent on advertising was 1.4 billion Euros in Ireland alone. With the current economic crisis that is gripping Ireland companies will be looking for ways to significantly reduce the amount they spend on advertising.  Our product will help because we are a 1 time fee with only small charges occurring.  This we require companies to rely less on Paper and Television advertising which requires a significant cash expense for every time the add runs.

From an investment standpoint this is an industry that has significant growth potential.  From the third Quarter of 2009-2010 over 1/3 of all cellular phones sold were Smartphone’s with the capability of downloading applications.  This market share is expected to increase exponentially as the price of this technology is reduced. In addition our company has extremely low start up costs, with labor being the only significant cost associated with our operations.    

        We are seeking a 40,000E investment for 20% of our company.  Our valuation is based on 2 times our projected first year sales.  We feel that this is a fair market number reflecting the risk associated with a high technology startup.  This money will be used to actively recruit a talented programmer that will be able to bring our vision to a reality.


  1. General Company Description

Edge Advert will be a mobile phone application company specializing in developing advertising applications for small to medium business. We will design applications specific to each clients desires. We will be the cost leader in the industry using pre-designed templates that we will maintain intellectual property rights over.  By minimizing the cost we will be able to reach a segment of the market that is currently unable to afford mobile phone applications.

Our applications will integrate our client company’s logo and brand message into an interactive program.  We will distribute these applications across all application platforms including Iphone, Blackberry, and Google Apps.  By integrating the brand with functional or games it will encourage downloads and provide effective repeat advertising.

Our business philosophy is to minimize costs without sacrificing quality.  This will allow us to reach a large market of businesses that can benefit from our products and services.

Mission Statement

To provide our clients with an effective, affordable advertising in an area previously reserved exclusively for wealthy companies.  

Company Goals

Short Term: We would like to sell 96 applications in the first year.

First Three Years: We would our early customers to find value in our advertising method and increase the level of services they desire

Long Term: Our goal is to transform the current application market into one that seamlessly combines function with brand promotion

Target Market: Our Company will focus on small to medium sized business that would not be able to afford to have a brand presence in the android or apple application stores.  It is our belief that this effective method of advertisement will become a vital component to most companies overall marketing strategies.

Product Road Map

        As our services become more complex it allows us to open up additional revenue streams.  This will grow our potential profitability exponentially from years 1-3.  In year 1 we are limited to charging only for our application as there are few ways to track the usage of our applications.  In year 2 we will be able to actively track every time a customer opens our application and record their actions, this allows us utilized a standard web advertisement fee structure of CPM (clicks per million).  In year 3 we will be able to allow in application ordering.  This will allow us to charge our clients fee based on percentage of sales generated through our application.  

        

Critical Success Factors

  • Knowledge of the industry as it emerged in North America, and being an early adopter to the concept in Europe
  • Creating entertaining applications that will encourage multiple replay while still conveying brand message of our clients
  • Encouraging creativity within our company in order to stay ahead of the competition
  • Minimize costs wherever possible to make our service affordable


  1. Product Range

Initially we will provide the first 2 product levels to our clients.  The fees are approximate base fees that will increase depending on the level of complexity desired by the client.  We will also charge a small fee any time an update is required, such as to change contact information or menu items.

In year 2 we will introduce the third product level.  The significantly higher fee represents the increased difficulty and time required to develop a web based component for the application.  The monthly fee will also vary depending upon the amount of bandwidth the application will require to operate.

1st Product Level

  • Offline only game or utility that incorporates our client’s logo
  • Set coupons
  • Starting at 1000E 1 time fee + small fee for updates.

2nd Product Level

  • Online/Offline utilities that incorporates our client company logo and web site, that gives the end user access to menus, coupons
  • Coupons can change be changed on a regular basis error.  
  • At this level we can also seek to charge our clients on a fee per use basis
  • Starting at 1200E + small charges for updates
Join now!

3rd Product Level

  • Offline Game that incorporates our clients logo and web site, that facilitates online ordering/purchasing
  • At this level we can also seek to charge our clients on a fee per use basis as well as a percentage of sales made through the application
  • Starting at 2000E depending on complexity + a monthly fee starting at 200E per month

Competitive Advantage

Hill and Jones states that there are 4 cornerstones to competitive advantage: Superior Quality, Superior Innovation, Superior Customer Responsiveness, and Quality.   The cornerstones we will focus on are superior innovation, in terms of how ...

This is a preview of the whole essay