Tactical Strategy Port Indigo
Tactical Sales Plan
For the
gomo™ CONNECT
Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd. & Highly Confidential
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products &
services in mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo
Mobile Solutions Pvt. Ltd, in India and/or other countries. Publication Date: September 2011. Port Indigo reserves the right to change the contents of this document
and the features or scope of its products and services at any time without obligation to notify anyone of such changes.
Port Indigo – Tactical Plan for goMo™ CONNECT
1. Objective
The objective of this document is to create a blueprint of “how” to push the goMo™ CONNECT into an
identified Target Group (TG) to see how the product, with its back-end technology, is being accepted.
This tactical push will be closely monitored to validate our TG identification, our choice of target
markets and pricing. It will also help us assess the look and feel of the product and demand for the
concept, technology and product.
Since the initial roll out will be tactical in nature, it is proposed that the “Market Trials” route should
be adopted for the introduction to the market. This will help in better positioning, better inventory
planning and subsequent customization in terms of product, pricing people and positioning.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
2. Target Group
Start with the urban, young, upwardly mobile, “early adopters” who have more disposable income.
Give them something which is a must-have. Support a favorite activity like mobile browsing or mobile
entertainment or even mobile shopping. This plays well into the concept of “compulsive clicking”.
Plus, since we are starting with a sophisticated audience, they will be able to influence other markets
- semi-urban, semi-rural - where the “aspirational” component would be a strong driver for adoption
of the goMo™ CONNECT and other devices to follow.
2.1 Why this Target Group?
According to an AC Nielsen research report smart phone users spend 2.5 hours on average daily
with their phones in downloading content, playing games or other related activities.
Mobile consumers in the age group of 15–34 living in the Tier 1 cities, According to an NCAER
(National Council of Applied Economic Research) study around 5.6 million households which
have a monthly income of more than INR 2, 00,000.00 live in the Tier 1 cities. The emerging
consumer behavior group in these cities has a few of the following segments:
Teen Riches: A lot of young people in different segments and locations who are influencing their
parent’s spending or spending their own money. They are adopters of trendy lifestyle when it
comes to dining, fashion, occasional clubbing.
Call Center Boomers: A generation which is upwardly urban class, IT Savvy, needs to socialize and
shop.
The Yeppies (Young Entrepreneurial Professionals): Truly self-made and are better off than the
above mentioned buyers. Like to spend their money on luxury and are selective about their
products they want to purchase.
The Yippies (Young International Professionals): Working with MNCs and travel extensively.
Why would they buy the device?
Browsing, downloading & shopping on mobile phones is picking up, but still a cumbersome activity.
Case in point: the limited number of handsets that eBay has released its Symbian app for. The goMo™
CONNECT device provides an easy, consistent interface, clubs the most popular sites together, culls
the best deals available at any given time, provides an easy way for end-users to click through products
& place them in the shopping cart, and a consistent check out process.
Best of all, consumers could get discounts, i.e. better pricing than if they were shopping online through
normal channels.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
2.2 The Initial Cities / Territories
A few factors have been taken into consideration for selecting the cities for initial roll out in
accordance with our Target Group. The same are mentioned below:
Scope of Personal Economic Growth
Monthly per capita expenditure and disposable income
Level of Consumerism
Consumer trends for purchases
Adoption levels of new technology
So, based upon the above parameters we have identified to launch in the following cities:
New Delhi – NCR
Mumbai
Bengaluru
Some key facts and figures as to why these cities have been selected
New Delhi:
Total Estimated population – Nearly 20 million (including NCR)
Per Capita Income – Rs.1.16 Lakhs (Highest in the country)
Literacy Rate – 86.34%
Total Population below poverty line – 8.23%
Key sectors of economic growth – Information technology (Including ITES), Retail, Telecom,
Hotels, Banking, Media & Tourism, Manufacturing, Real Estate, Automotive.
UMP – Capital city and central political hub of the country
Mumbai:
Total Estimated population – 20.74 million (including Thane & Navi Mumbai)
Per Capita Income – Rs.1.10 Lakhs
Literacy Rate – 94.7%
Total Population below poverty line – Approximately 13%
Key sectors of economic growth – BFSI, Media, Information technology (Including ITES), Retail,
Telecom, Hotels, Real Estate, Ports.
UMP – Financial and commercial capital of the country contributing to 6.16% of the total GDP
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
Bengaluru:
Total Estimated population – 8.6 million
Per Capita Income – Rs.1 Lakhs (Approximately)
Literacy Rate – 85.74%
Total Population below poverty line – Approximately 14.3%
Key sectors of economic growth –Information technology (Including ITES), Retail, Telecom, Hotels,
Real Estate, Manufacturing, FMCG, Biotechnology
UMP – Silicon Valley of India contributing to 33% of India’s total IT exports.
Note: UMP stands for Unique Marketing Proposition
Rationale for selecting only these 3 cities to kick start the tactical plan
All the three cities mentioned above have been shortlisted because of the following reasons
Ample availability of TA
Leading markets in terms of mobile device sales
Structured retail and distribution touch points available in terms of penetration
These cities are trend setters in terms of new products introduction and subsequent
adoption for marketers.
Our solution is primarily meant and aimed for the mobile device users and the TA with whom we
wish to start off the adoption is present in big numbers in these cities. These markets are prime
markets for any mobile products and solutions company (whether big or small) which has to offer
innovative new products. And this is clear from the numbers mentioned in the below matrix.
All the other cities namely Chandigarh, Ludhiana, Jaipur, Pune, Hyderabad, Kolkatta, Chennai,
Ahmedabad, Surat etc. have been contemplated on for the second phase because though these
markets have the presence of TA but the sales of smartphone devices in comparison to these cities is
not minuscule but also not very encouraging too. Ahmedabad, Surat, Chennai, Kolkatta are
exceptions to the numbers rule but are primarily feature phone markets.
And going out to this mix of tier 1 and tier2 markets will involve lot of efforts both in terms of sales
and marketing. So it makes sense to involve them in the second phase when we are talking about
more numbers probably in the range of (6 – 10 X) of what we wish to achieve in the Tactical roll out.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
3. Sales Projections – Tactical Maneuver
Initially we should kick start the tactical push with 9,500 units. The break up behind this figure is as
follows:
Name Of The city
Delhi – NCR
Mumbai
Bangalore
Total (Rounded Off)
Number of Initial “gomo” units to be placed- (Including the figures for post sales replacement support @ 5%)
The math behind the above is based on the total average market size of new handsets (feature &
Smart phones) sold in each city.
Name of the city
Delhi – NCR
Mumbai
*Kolkatta
Bangalore
*Chennai
Total Monthly Market Size
(Feature Phone)
2,00,000 units (Avg.)
1,50,000 units (Avg.)
1,00,000 units (Avg.)
75,000 units (Avg.)
70,000 units (Avg.)
*Smartphone Market Size
36 – 40 K per month Avg.
30 K per month Avg.
20 – 25 K per month Avg.
15 – 20 K per month Avg.
15 K per month Avg.
Data Sources:
Frost & Sullivan Report: Published on 21st March 2011
According to industry estimates in- million “Features Phones” and 18.1 million “SMART phones”
will sell in the Indian market. The overall estimated CAGR is 11.4% every year for the next five years.
Cellular Operators Association of India data – Average of last six months data on new connections sold
(GSM Subs).
Industry: Feedback from sales people of two national distributors namely Brightpoint (National Distributors
of Motorola/HTC) and Redington (National distributors of RIM/Blackberry)
Others: Regional distributors of multiple brands in each of the cities mentioned above
Note
Since our solution is directly meant for the mobile device consumers so we have taken into consideration
the average market size of the new mobile handsets being sold in the market.
Currently the market share of smartphones that are being sold is 14% (Please refer to the market figures
mentioned in “Data Sources” section above), but I have presumed the figure to be 18% to round of figures
evenly. Also the smartphone market is ever growing.
10% multiplier of the *Smartphone Market Size of the higher value in all the cities has been assumed accept
Bengaluru where the median value has been taken as Bengaluru is the second most penetrated city in terms
of SMART PHONE adoption. The current population is 8.6 million of the city and by the end of 2012 is
expected to be second most populated city of India by crossing 10 million. A perfect place for our initial TA
for the other simple reason that it is well known as the “Silicon Valley of India”.
5% for after sales support is also incorporated in the projected figures.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
Working Example
The Market – New Delhi - NCR
(A) The market potential – 2, 00,000 units of new mobile devices being sold on an average.
(B) 18% of (A) = 36,000 units rounded off to 40,000 units is the number of smartphones being sold
on an average per month.
(C) Keeping in mind that this being a tactical move so I have assumed 10% as the initial number of
units that are to be placed in this market. So 10% x (B) = 4,000 units.
(D) 5% buffer as the industry norm for replacements/returns/DOA. So buffer = 5% x (C) = 200 units.
(E) Adding (C) & (D) = 4,200 units.
*Suggestion - It will be better if we introduce the product in the Chennai and Kolkatta markets in the
second phase when we ramp up for more cities.
A few reasons to include Kolkatta and Chennai in the second phase keeping in mind the qualification
criteria of TA are mentioned below
Rank at 3rd and 5th positions respectively as per the “Purchasing Power Parity GDP” after Mumbai
and Delhi and are also the major metros of India.
The literacy rate in Kolkatta is 87.14% and in Chennai the literacy rate is 90.33%.
Kolkatta is growing as a commercial hub since the start of early 2000s with surge of investments
in real estate, infrastructure, retail, hospitality. Kolkatta also has large public sector industrial
units. Major sectors include steel, heavy engineering, mining, minerals, cement, pharmaceuticals,
food processing, agriculture, textiles.
Chennai is one of the fastest growing cities in the world according to Forbes. Chennai’s economic
growth is fuelled by automobile manufacturing and automotive components (nearly 40% of the
industry), Contributes to 14% of IT exports, Houses some of the leading names in Telecom &
Electronics manufacturing like Nokia, Motorola, Dell, Wipro, Zebronics, Foxconn, Ericsson etc.
Potential markets in terms of device sales with all the leading handset manufacturers that we
want to target are selling their products in both of these markets.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4. What will be our Revenue Model?
We will be working on two most likely routes which are:
Plan A – B2B Partnerships
To forge B2B alliances with leading players in the mobile ecosystem such as:
MNOs
Handset OEMs
e-Commerce Retailers
LFR (Large Format Retail Stores)
Traditional distributors (National as well as regional)
Plan B – B2C route
To forge B2C partnerships, this approach is being contemplated upon so that we are not limited in our
approach to achieve the first objective of Tactical Push.
For the above approach to materialize and succeed following verticals have been identified keeping in
mind the Target Group.
Education
BFSI (Retail & Credit Cards)
IT/OA companies
Fashion Apparels including (Premium Watch Retail, Jewelry, & Footwear)
Petroleum companies
Airlines
Malls & Multiplexes
Personal Navigation Device (PND) Manufacturers
Five Star Hotels
Loyalty Programs
BPOs
DTH / TV Content Distribution companies
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.1
Pros & Cons of the Proposed Partnership Plan
4.1.1 MNOs
Pros as to why we should partner with them
The idea of forging an alliance with them is driven by a few of the following facts:
Reach the existing and new customer base. The matrix of the respective market shares below
clearly supports the need as to why approach them. Currently there are more than 884 million
cellular subscribers in the country.
Established network of authorized direct and indirect retail partners. They have their own network
of retail outlets from where they sell plans and handsets. Also traditional multi brand retail touch
points are partnering with them majorly for prepaid business. Also they have corporate sales
partners which sell to corporates their plans and devices hence it helps us in reaching our “Target
Group”
Mileage and co-branding come as the package. It is obvious that a partnership with leader always
helps in establishing rapport and market penetration and helps in various marketing activities
which help save a lot of money.
Some of the key players with market shares are:
MNO
Airtel
Vodafone
Idea Cellular
BSNL
Aircel
Uninor
% Wise Market Share
27.30%
22.93%
16.68%
14.42%
9.64%
5.99%
Data adapted from “Cellular Operators Association Of India”
Compelling Value Proposition for the MNO
Increased adoption of 3G data plans
Driving Utility MVAS adoption
Better customer satisfaction
Enhanced user retention
Non Voice Revenue growth like “Regional Entertainment VAS”
The above value proposition is relevant because once we establish the connect with the respective
stake holders and decision makers, and help them recognize that what we are offering is a unique
proposition of “Unprecedented Comfort and Convenience” to their users so that they can surf online
content of choice anytime anywhere there by resulting in increased consumption of 3G data plans.
Also if their users are getting enhanced and convenient experience to surf which was hitherto missing;
so this will help in better customer satisfaction rate.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
We are not proclaiming that with our offering the above pain areas of MNO will be addressed
overnight but with the increased penetration coupled with awareness of all variants of smart phones
in terms of features and price, government initiatives to implement ipv6, 4G/LTE becoming a reality
pretty soon the consumer will definitely like to adopt the new and enhanced experience of mobile
surfing. The situation is like a time bomb which is ticking and will definitely explode one day.
And with the innovative tool that we have to offer the convenience and comfort factor will trigger
what is called as “Compulsive Clicking”. A classic and perfect analogy is that of television viewing
where viewers have a habit of “Channel Surfing”. Similarly a mobile user will like to explore more
content of choice and spend more time shifting to various pages of content and consume more of
data.
This gradual adoption will have a snowball effect sooner or later because of the TA we have defined
and selected and hence will lead to the desired business results for these players.
Likely Distribution Route
Authorized retail outlets owned directly or indirectly by the MNO. Every MNO has dedicated
stores which are a mix of franchisee or owned property model. These retail points have all the
inputs required like space, manpower, walk in customers, display area, premium location etc.
which can help create awareness and sell through of initial goMo™ CONNECT units.
Respective distribution, sub distribution partners for their prepaid business. Down the line they
have distribution partners who sell their prepaid plans and have monetary power, manpower,
operational expertise, walk in customers etc. required to push and see the sell through of the
product.
Authorized corporate sales partners for handset and other products. Apart from the above
mentioned partners there are partners who sell their handset bundles, USB data cards to
corporate customers. These might be partners who also have franchisee as well as prepaid
distribution partnerships with the respective MNO.
Revenue Model
General industry trend with MNOs is to work on a revenue sharing basis in case of VAS products. But
since we are offering a product with a unique proposition so we will talk about stock and sell model.
The product can either be cobranded; white labeled or can be offered with specific MNO branding.
Cons
Given the size of the entity of any MNO and their consumer base there are a few challenges as
mentioned below
1. We are a new organization with an innovative solution with no success story to tell.
2. They will ask for references as to where all we have sold or what our existing consumer
base.
3. They will talk about “Revenue Sharing” or “Consignment based” revenue model because
they can command to do so. But which is not a recommended method.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
The argument to counter above cons is simple: Apple, Dell, Microsoft, and Cisco are some of the
corporations which started very small from a point where nobody knew them. But today we know
their success story. All the cons mentioned above can be countered and I believe there is a solution to
do that too. All this is going to happen at the negotiation stage after they have understood and liked
the demo/concept and want to go ahead, but will like to start cautiously (After we have created
enough FUD factor).
Likely Solution
We can look at doing pilots with one or two MNOs with whom we talk on the lines of making it a
success by starting with initial low quantities; let’s say 500 or 1000 units per target city which will cost
them at 40% below the MSRP. They then can position the same with a certain select group of users
whose average monthly billing is more than 2000 in INR, who are on a 3G plan, are postpaid
consumers, and are roaming a lot and are in the age group of 20-34.
They can then recover the cost which could be paltry rupees 500-600 over a period of next three
months. Then we can again sit across the table and dissect the whole activity together and see what
the success rate was. And post the analysis the model can be replicated.
Which partners to approach for the first phase?
1.
2.
3.
4.
Airtel
Vodfone
Idea Cellular
Aircel
Why them?
All of them put together command 76.55% of the market.
Each one of them is present in the category A circles.
Each one of them is striving towards different initiatives for adoption of data plans within their
existing user base and also for new consumers.
Each of these players has big pockets for spending money on right kind of marketing programs.
4.1.2 Handset OEMs
Pros as to why we should partner with them
The idea to partner with them is driven by:
Our solution is meant for mobile device consumers
Their capability for new customer acquisition
Deep pockets for structured marketing spend
Established network of dedicated and multi brand retail partners
Established network of regional and national distribution partners
Key data points
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
In the fiscal of- the total revenues generated by handset manufacturers was INR
33,171 crores.
Other mobile handset makers who are not in the top 10 list have generated combined revenue
of INR 10,108 crores.
The following matrix features the top 10 players with their respective numbers
Manufacturer
Nokia
Samsung
Micromax
RIM
G’ Five
LG
Karbonn
Spice
Maxx Mobiles
Sony Erricsson
Revenues in Rs. Crore
12,929
5,720
2,289
1,950
1,326
1,210
1,-
Compelling Value Proposition in terms of Handset OEMs
To offer unique and different products to the retail customers and increase their existing
market share.
Increased market penetration in terms of awareness, adoption and availability.
Likely Distribution Route
Authorized retail outlets. Every OEM has dedicated retail outlets which are majorly run via a
franchisee model and they have all the ingredients required like space, manpower, walk-in
customers, display area, premium location etc. which can help to create awareness and sell
through of initial goMo™ CONNECT units.
Respective distribution, sub distribution partners and retail partners. Down the line they have
distribution partners who sell their prepaid plans and have monetary power, manpower,
operational expertise, walk in customers etc. required to push and see the sell through of the
product.
Can also help in placing the products with the LFRs. They also approach the LFRs because they
have established network of “Brick & Mortar” stores which sell multi brand products, have
attractive levels of walk-in customers, necessary infrastructure for display and awareness.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
Revenue Model
Outright purchase model has to be adopted. The price obviously has to be subsidized. We can’t
work with them on consignment basis or revenue sharing as in the case of an MNO.
Local LC for a certain amount of credit period, Industry standards are of 90 days. Payment terms
have to be worked out so that our money is safe.
Cons
Again, a handset OEM has muscle power to command us. A few of the factors that need to be kept
into consideration are:
They will ask for exclusivity
They will ask for credit
They will ask for support in terms of liquidation of the inventory, in shop staff training, in shop
branding and promotion, arm twisting on the replacement aspect
Price support for the unsold inventory
Manipulation of the MRP
Likely Solution
Again we should look for a pilot with couple of the key players with one of the SKUs in the smartphone
category which has an ASP of 8K and above. We can talk on the lines of bundling the goMo™ CONNECT
and tell them to do a trial with the three cities selected and with approximately 3000 units overall
costing at 500 or 600 each. This cost can be either recovered from the consumer or subsidized in the
marketing budget or subsidizing the distribution margin at their end.
We can’t talk about running it as a scheme because it can backfire and they will like to do it only as
per demand basis and then the loop goes to working only on back to back orders.
Which players to approach for the first phase?-.
Nokia
Samsung
RIM
LG
Spice
HTC
Apple
Sony
4.1.3 e-Commerce Retailers
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
Pros as to why we should partner with them
The reasons as to why we want them as likely partners are:
To add on the breadth and width of the distribution for us.
They have an existing base of TA.
Established network meant for logistics and availability across the country.
Advertising and branding at low costs in comparison to the traditional advertising route.
Key data points
According to a report by the Internet and Mobile Association of India, India’s e-commerce market is
growing at an average rate of 70% annually and has grown over 500% since 2007.
The following chart depicts the growth of E-commerce in India in the last couple of years:
Apparently, more online users in India are willing to make purchases through the Internet. Overall ecommerce industry is poised to experience a high growth in the next couple of years. The 70 percent
year on year growth is expected to continue and India’s e-commerce market is forecast to reached a
whopping $US 10 billion by the end of 2011.The e-commerce market in India was largely dominated
by the online travel industry with 80% market share while electronic retail (e-tailing) held second spot
with 6.48% market share.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
The success and growth story of “Flipkart.com”, “Makemytrip.com” and “IRCTC” substantiates the
views shared above. A few key pointers about Flipkart are:
Ranks in the top 30 websites in India
11,500,000 book titles available
8 million hits per month
4500+ current team strength
30000+ items shipped every day
27 cities with own delivery network
Makemytrip.com
Generated revenue of $53.8 million in the quarter ended December 31, 2011, an increase of 50.3%
over revenue of $35.8 million in the quarter ended December 31, 2010. (Data adapted from the
official web site)
IRCTC.co.in
13.25 million Transactions are done on an average monthly on this website. (Data adapted from
medianama.com)
Compelling Value Proposition for them
Differentiated product offerings for the consumers
Enhanced eyeballs and consumers
Achieving bottom lines with profit making SKUs
Company Confidential
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
Likely Distribution Route
Have their own distribution and logistics network. Since they are in direct touch with the consumer
online and offline so they do not need to have partners to resell. Hence to maintain the service
levels and fulfillment of consumer orders they have their own network for logistics and order
fulfillment.
Revenue Model
Industry standards are to work on back to back orders (For example Home Shop 18 Network)
Cons
Enlistment money to the tune of minimum 1, 00,000 rupees is required as this money is required
for promotion on the website and their TV network, product demonstration etc.
Since we are also looking at them as Likely clients also so we might land into a barter deal with
these players, which is not good initially.
Suggestion
We should look at this B2B association in the second phase of our product positioning strategy. And
we should concentrate more on partnering with people like Makemytrip, IRCTC and Expedia.
Company Confidential
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.1.4 Large Format Retail Stores (LFR)
Retail in India: Brief Overview (Adapted from http://www.ibef.org/)
India has one of the largest numbers of retail outlets in the world. The sector is experiencing
exponential growth, with retail development taking place not just in major cities and metros, but also
in Tier-II and Tier-III cities. India's growing population and urbanisation offers a huge market for
organised retail. Increasing economic prosperity and change in consumption pattern drives retail
demand. The retail sector in India is emerging as one of the largest sectors in the economy, with total
market size of US$ 425 billion in 2010.
The organised retail segment in India is expected to be 9 per cent of total retail market by 2015 and
20 per cent by 2020. India's grocery retail segment is the most attractive in the world. Hypermarkets
would be the largest retail segment, accounting for 21 per cent of total retail space by 2013–14.
With a score of 63, India ranks fourth among the surveyed 30 countries in Global Retail Development
Index and ranked sixth in the 2011 Global Apparel Index. India's strong growth fundamentals along
with increased urbanisation and consumerism opened immense scope for retail expansion for foreign
players.
Foreign retailers are entering into Indian market to share a huge profit. Foreign direct investment (FDI)
up to 100 per cent is allowed under the automatic route in cash & carry (wholesale). Government is
planning to remove the old tax systems to simplify the tax calculation and avoid double taxation in
Indian retail. New Goods and Service Tax (GST) will simplify the tax structure.
The fast moving consumer goods (FMCG) players are focusing on rural market as it constitutes over
33 per cent of FMCG consumer base in India. Employment opportunities and increased urban
amenities are attracting huge rural population towards cities for better life style.
Pros as to why we should partner with them
Add on the breadth and width of the distribution. Since they have multi city operations and have
structured “Brick & Mortar” outlets across the country so they are a good bet for spreading and
sell through of goMo™ CONNECT units.
Reach to the new customer base. They have walk-in customers and with the trend in the urban
cities rising to visit and buy from them so it helps our cause to reach the TA.
Interaction with the end customer via a dedicated team. Have operational and sales staff to
attend to the customers.
Mileage, cobranding come as a package. Have display space and shelves to showcase to the walk
in consumer and they keep coming out with new schemes to sell the products. Again a strong
reason to partner with them.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
Compelling Value Proposition
Differentiated product offerings that can add to their top line and bottom lines and get them new
walk-in consumers
Likely Distribution Route
Have their own distribution and logistics network
Revenue Model
Outright purchase model with PO and credit policy as per the mutually agreed terms and conditions
and not to exceed 60 days. Local LC required for the transaction.
Cons
Again, LFRs have muscle power to command us. A few of the factors that need to be kept into
consideration are:
They will ask for exclusivity
They will ask for credit
They will ask for support in terms of liquidation of the inventory, in shop staff training, in shop
branding and promotion, arm twisting on the replacement aspect, placement of dedicated sales
promoters and advertising also.
Price support for the unsold inventory
Manipulation of the MRP
Likely Solution
Their biggest pain area is huge infrastructure, fixed and monthly operational costs; so they only like to
talk about margins. We should consider passing on a big chunk of the margin to them which will be
the only engagement hook with them. Also, we have to keep into consideration that the MOP does
not get affected and the other players in the ecosystem do not get affected or complain of price
disparity.
Which Players to start with?
1.
2.
3.
4.
5.
6.
Croma
Hotspot
The mobile store
Landmark
Futuregroup
Univercell
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.1.5 National / Regional Distribution Model
Pros as to why we should partner with them
Add on the breadth and width of the distribution because they have multi city operations
Reach a new customer base in terms of dedicated channel partners
Indirect interaction with the end-customer via a dedicated team of tier2 / tier3 channel partners.
Established network of retail outlets across the country and at the local levels.
The national distributors have separate teams to deal with LFRs so they can help in positioning
the same with the organized retail trade.
Compelling Value Proposition
New profitable product lines that can help enhance their product portfolio as well as their bottom
line.
Cons
A few of the factors that need to be kept into consideration are:
They will ask for credit
They will ask for support in terms of liquidation of the inventory, in shop staff training, in shop
branding and promotion, arm twisting on the replacement aspect, placement of dedicated sales
promoters
Price support for the unsold inventory
Advertising support
Suggestion:
Typically we should appoint regional partners to start off in the cities mentioned above and in
parallel we should keep our talks on with NDs. NDs will be good to talk to when the regional model
is successful and we are ready for the second phase.
Company Confidential
Page 20 of 42
Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.2
Pros & Cons (B2C)
4.2.1 Compelling reasons for Port Indigo
The compelling need to go after the above mentioned customer segment is as follows:
Have large chunk of addressable TG as defined above.
Have established and structured network of distribution in case of segments like FMCG,
Pharmaceuticals, IT/OA companies, Petroleum.
4.2.2 Value proposition for the identified B2C segments
The underlying or compelling need for these segments is common depending upon the industry
vertical can be categorized as follows:
R&R (Rewards & Recognition) for sales and internal work force. Sectors like BFSI, IT
hardware/Office Automation companies, Coffee chains, and Lifestyle product retail are manpower
centric operations. They have multiple outlets and branches which require manpower to run. So
these organizations have internal rewards and recognition programs which are being run by these
organizations to motivate their work force.
For channel partners. IT hardware / Office Automation companies keep rewarding their loyal and
performing channel partners with different kind of lucrative schemes, benefits and gifts so goMo™
CONNECT can be a wonderful proposition for them.
Bundling for end customers. IT/OA majors run various bundles and schemes with some specific
products for making it lucrative for end customers. Hence goMo™ CONNECT can be positioned for
the same.
Redemption programs for the native customer base. The product can be offered by loyalty
program players, credit card companies as free gift against redeemable points accumulated.
To enhance purchase of products. The product can be a great fit for the petroleum companies
because these companies come out with various schemes and programs for their consumers to
encourage more purchase of petrol and also to retain them. They provide discounts to the
customers on certain slabs achieved. Hence goMo™ CONNECT can be a wonderful idea to push.
Company Confidential
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.2.3 B2C segments – Analysis (Why & How)
4.2.3.1 Education
Why Education?
Education is one of the top three contributors to the GDP and is a big market in the country.
Biggest avenue for accessing our TA. Because we are looking at young educated upwardly urban
masses and educational institutions are the best place to find them.
Huge chunks of TA available for creating awareness, trickledown effect and sales of goMo™
CONNECT units. Students are “trendy and happening” strata of the society and a recognized age
group by all marketers for the consumption of their products. Also they are a perfect segment in
terms of the TA definition.
Cons
To sell in this segment it will require a separate team who needs to specifically cater to this
segment only.
Long sales gestation cycles
How to Sell (A Likely Approach)
We can use our team to hold kiosk kind of road shows for demo and subsequent sales of goMo™
CONNECT units in the top 10 – 15 engineering/management/grad colleges in each of the target cities.
Some of the key educational institutions in Delhi
IIT – Indian Institute of Information & Technology
Delhi college of Engineering
AIIMS – All India Institute Of Medical Sciences
FMS – Faculty of management Studies
Delhi University (Especially the colleges in the North & South Campus)
JNU (Jawahar Lal University)
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.2.3.2 Banks (Including Retail / Credit Cards)
Banks are big contributors to the GDP growth in the country despite the fact that more than 50% of
the population is still without a bank account or do not use any sort of banking products.
Why Banks?
A huge chunk of TA available for positioning the goMo™ CONNECT. Majorly banking as a sector is
available in urban areas and they have customers who are educated, have disposable incomes and
are interested to learn about new technologies.
Since we are also looking at them as one segment for m-commerce, it will be an added bonus
because banks can look at it from the perspective of increased online mobile banking usage.
They can also use it for internal rewards and recognition programs. Banks have multiple branches
and have staff members who are educated in different departments and have large work forces.
So they can gift the product under their rewards and recognition programs from time to time to
deserving employees.
Can empanel goMo™ CONNECT for the “redeemable gifts” section against monthly points
accumulated for a certain select category of credit card customers. All banks have customers who
own their credit cards and each bank runs various schemes from time to time and reward
programs for the credit card customers. So we can get a chance to empanel goMo™ CONNECT in
their monthly newsletters and EDMs which can help create awareness and subsequent sales.
Cons
Since banks are large organizations in terms of hierarchy and processes so getting to the right
decision makers in these organizations is a tedious and time consuming process and also the
decision making is time consuming process hence we require separate manpower and patience
to reap fruits out of this activity.
How to sell (A Likely Approach)
Top few banks in the country are
SBI
HDFC
ICICI
AXIS
Bank Of Baroda
CITI Bank
Punjab National Bank
IDBI
We need to approach their product / consumer marketing teams at the HQ levels and go through
the lead generation process as mentioned separately.
Company Confidential
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.2.3.3 IT Hardware /OA companies
Why them?
They are looking to offer innovative bundles or discounts with their products like laptops, printers,
MFDs (Multifunctional devices), Tablets etc. for their consumers and channel partners. So we will
talk to them on the lines of bundling goMo™ CONNECT with a few of the specific product lines.
Access to a good chunk of TA. Their consumers match the criteria of our TA definition hence this
will be an indirect approach to get to them.
Can also use goMo™ CONNECT for internal R&R. All the big players like HP, Lenovo, Samsung,
Canon, TVSE etc. have large disparate direct and indirect sales teams, channel partners so they
can use the same for rewarding the efforts of deserving candidates.
Cons
These are organizations which are large in size, numbers and locations hence their manpower is multi
locational and decision makers are always on the move. Getting a decision out of them is a uphill task
and requires a lot of time.
How to sell (A Likely Approach)
Some of the top players in this category are
Hewlett Packard
Lenovo
Dell
Sony
Samsung
Canon
TVSE
Acer
We need to engage with their HQ teams at the product / consumer marketing levels and go through
the lead generation process as mentioned separately.
Company Confidential
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.2.3.4 Premium Fashion & Lifestyle Retail
This is an ideal space where our TA is available in all the metro cities that we have identified. With the
economic growth, increase in the disposable incomes and organized retail catching their foothold
lifestyle and fashion have improved in the Tier1 cities which we wish to target.
Why Them?
Access to TA. The typical consumers are upwardly mobile, are educated and have enough
disposable incomes to buy these products through their authorized retail stores, hence the choice.
Differentiated offering other than discounts. Since these products command a premium and India
being a cost conscious market so these players want to woo their customers by offering discounts,
so instead of the discount they can position goMo™ CONNECT as a bundle.
Consumer retention
Reach in terms of breadth and width. They have multiple retail outlets direct and franchisee so we
are indirectly benefitting by not having to put efforts for awareness and availability.
GoMo™ CONNECT can be positioned as a free gift for a certain amount of goods purchased.
Cons
These are organizations which have structured and multi locational presence in the country via their
own and franchisee model. Being large in nature they have to go through a lot of tedious processes to
purchase and approve any new product, gift, schemes.
How to sell (A Likely Approach)
Some of the leading players of the industry are
Nike
Adidas
Reebok
United colors of Benetton
Raymonds
Reid & Taylor
Bata
Rayban
Titan
Gilli
Tag Heur
Citizen
We need to with their HQ teams at the product / consumer marketing levels and go through the lead
generation process as mentioned separately.
4.2.3.5 Petroleum Companies
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
With the increase in purchasing power of the consumers and financial modalities becoming consumer
friendly the growth in purchase of automobiles has done a tremendous growth in the last decade. And
this is evident from the increased number of international players setting their foot in our country and
the number of variants available. And to run an automobile we require petrol without which it will be
a liability instead of an asset.
Why Petroleum companies?
Access to TA via their petrol pumps. As explained above consumers who own four wheelers and
typically belong to the affluent middle class. They have to go to these filling stations and hence it
is an area of opportunity for us too.
Reach in terms of breadth and width. All these companies have multiple pumps and filling stations
in each city so indirectly help us in reaching to our target audience.
GoMo™ CONNECT can be positioned as a free gift for a certain amount of petrol purchased in
three months or six months. A few of the companies they run monthly programs to encourage
more purchase of petrol and consumer retention and they provide discounts to the customers on
certain slabs achieved. Hence goMo™ CONNECT can be a wonderful idea to push.
Cons
These organizations are mainly companies which are government owned and since their processes
are more laidback and work as per government regulations and norms hence getting business out of
them is a time consuming process. Also we will require separate manpower to do the promotional
activity at the various petrol pump locations in different cities.
How to sell (A Likely Approach)
Some of the key organizations are
IOCL (Indian Oil Corporation Limited)
BPCL (Bharat Petroleum Corporation Limited)
Essar Oil Limited
HPCL (Hindustan Petroleum Corporation Limited)
Oil India Limited
Gas Authority of India Limited
We have to engage with their HQ teams at the product / consumer marketing levels and go through
the lead generation process as mentioned separately.
Company Confidential
Page 26 of 42
Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.2.3.6 Airlines
Gone are the days when travelling by air was supposed to be a right of the rich and affluent. Today
with the advancement in the technology, government opening up the ground for private players, stiff
competition, no frills airlines air travel has become possible for others also.
Why?
Access to TA. Corporate travelers, individuals, frequent fliers, businessmen and mostly all of the
passengers are people who are educated, have disposable incomes and adopters of new gadgets
specifically mobiles so a perfect fit for positioning the goMo™ CONNECT.
Can be promoted via their inflight shopping magazines or sales activities. A classic example is the
“Inflight Shop” of Indigo. They sell different categories of lifestyle products and showcase them
via their magazine. Hence we get to create awareness and push for sales of goMo™ CONNECT
units.
Airlines can use it as a gift for their “Frequent Flyer” program. Every airline has a program by which
they ensure to retain customers and provide better services to regular consumers. So they can
use our product as a gift for their frequent passengers.
Can be used for their internal R&R programs for the air hostesses and stewards.
Cons
Domestic Airlines is a sector where the decisions makers are not easily accessible and due to the
pressure of earning their bottom lines majority of their rewards programs purchases are driven by the
idea of “Back to Back” purchase. Indigo airlines are an exception to the rule. And the empanelment
procedure is tedious and time consuming.
Some of the leading names of the industry are
Jet Airways
Indigo
Airindia
Spicejet
Go Air
How to sell (A Likely Approach)
We need to engage with their HQ teams at the product / consumer marketing levels and go through
the lead generation process as mentioned separately.
Company Confidential
Page 27 of 42
Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.2.3.7 Malls & Multiplexes
Malls are springing up in every city and are fast becoming sought-after entertainment hotspots, with
shopping as the by-product. From a situation where there were no malls about a decade ago, the
country has over 300 malls translating to more than 100 million square feet in available mall space.
The “Mall Culture” is fast catching up now in Tier2 cities also.
Why Malls?
Large walk-in of the TA on the weekends. With the weekend culture now firmly in place in the
metro cities people throng to malls in large numbers. So it is an opportunity for us to create
awareness and push the sales of goMo™ CONNECT units.
Great Avenue for brand awareness. Helps us to advertise and create awareness & traction for the
product.
Cons
To do promotions and sell through simultaneously it will require manpower and prior written
permission from the authorities in advance. The activity has to be planned in advance because the
footfall happens only on the weekends or holidays or during the festivals.
How to Sell (A Likely Approach)
Each of the three cities demarcated have their own famous and preferred mall destinations. Mumbai
is leading in number of malls. So the list is going to be a long one. But a few of the important names
are mentioned below
Sahara Mall
Select city
Ansals Plaza
The great India place
Garuda mall
Mantri Square
The Forum
Phoenix
Inorbit
Rcity
We can use our team to hold kiosks for demo and subsequent sales of goMo™ CONNECT units in the
top 5 malls in each of the target cities.
Company Confidential
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.2.3.8 PND (Personal Navigation Device) manufacturers
It would soon be a thing of the past for you to roll down your glass window and ask for directions.
Whether it is a map on your smartphone, a location application sitting on your tablet device or a
personal navigational device (PND) installed in your car, these are slowly and steadily changing the
way you locate your destination. And this is evident from the fact that more than 1, 50,000 units sold
in India in 2011. The number of devices sold in 2010 was around 52,000 this is a whopping 150%
growth.
Why Them?
Perfect domain for accessing the TA. The average cost of a PND as off now ranges from 10K to
20K, so the consumer who is buying a GPS navigation device is educated, early adopter of
technology and has disposable income.
Can be sold as a bundle with the new devices. We can offer goMo™ CONNECT units as a free
bundle.
Cons
These are organizations which are typically large SMB segment organizations which have multicity
operations because of the nature of the product. Also a tedious process of empanelment, product
demonstration, approvals is going to be on an average a six months cycle.
How to sell (A Likely Approach)
Some of the prominent players in the category are
Satnav
Mapmyindia
Garming
Tom Tom
We need to engage with their HQ teams at the product / consumer marketing levels and go through
the lead generation process as mentioned separately.
Company Confidential
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.2.3.9 Coffee Shops & Cafés
Today there are more than 1500 coffee cafes in the country, of these 1000 have opened in last five
years. The organized café market in India is estimated to be growing at a compounded annual rate of
25%
Pros
Large walk-ins on daily basis of the TA. Stirring up the market is India's growing youth segment:
around 50% of India's 1.2 billion people are 25 or younger. By 2015, this is expected to increase
to 55%. For this segment, particularly those with steady, disposable incomes, coffee shops serve
as a social hub. Coffee chains offer a basic emotional need -- refuge. They are brands between
home and office. Also the increasing number of business meetings happening in these cafes due
to their ambience. Hence a perfect place for positioning our goMo™ CONNECT units.
Creation of brand awareness. Indirect and cost effective channel of creating brand awareness.
Can be bundled as a free gift for a certain purchase, or corporate customers, or regular members
Cons
Due to the operational nature of the size of these chains decision making is a tedious and time
consuming process.
How to sell (A Likely Approach)
Some of the key players in this category are
Café coffee day
Barista
Costa coffee
Gloria Jean’s
We need to engage with their HQ teams at the product / consumer marketing levels and go through
the lead generation process as mentioned separately.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.2.3.10 Loyalty Programs
Keeping customers loyal is a problem. Over the last decade a lot of Indian companies have become
aggressive to run loyalty programs. As a result, 42 percent of Indians in the SEC A, B and C categories
are now part of at least one loyalty program in India’s $4 billion-a-year loyalty market. (This figure
includes the market for gifts, which a lot of companies use as a surrogate for loyalty programs.) Loyalty
is seen as the number one tool that allows retailers to access data on customer tastes and
preferences.
Why Them?
Large database and access to TA. Typically the members of these programs are corporate
executives both male and female, students and shoppers. So a good source of accessing our Target
Audience.
Can empanel goMo™ CONNECT for the “redeemable gifts” section against monthly points
accumulated for a certain select category.
Can be used for gifting purpose to their corporate customers.
Cons
Tedious processes for empanelment, deep sales cycle are some of the reasons to consider.
How to sell (A Likely Approach)
This industry is still not very structured and lots of big players from different domains are running their
own programs. Certain prominent names of interest are
Payback
Hero Honda’s Passport
Loyalty One
BPCL’s Petro Bonus
Shopper’s stop First Citizen
We need to engage with their HQ teams at the product / consumer marketing levels and go through
the lead generation process as mentioned separately.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
4.2.3.11
BPOs
According to the NASSCOM and Everest India report, Indian BPO industry would grow nearly five-fold
from its present revenue to reach US$50B by 2012.
The sector, that has grown manifold in size and matured in terms of service delivery capability and
footprint over the past decade, is now at an inflexion point. Today, it faces a unique opportunity to
enhance its role as a full-service, value-adding partner. There is significant headroom in the
addressable BPO opportunity for buyers and providers, and there are sizeable untapped areas across
a wide spectrum of segments. Also, the Indian BPO sector is favourably positioned to benefit from its
established delivery capabilities, which influence buyers’ decision to expand their global sourcing
exposure.
The Study shows that going forward, the Indian BPO sector, at its current momentum, can reach
around US$ 30 billion in export revenues by 2012. However, the sector can set itself a stretch target
of US$ 50 billion (that is, approximately five times its present size) in export revenues by 2012. A fivefold growth in the Indian BPO market will add nearly 2.5 percent directly to India’s GDP from exports
earnings and provide direct employment to about 2 million people. This will also spur growth in
smaller Tier 2 and 3 cities to enable a six-fold growth in the number of delivery centres that will be
required to support the enhanced target for the sector.
Why BPOs?
Large chunk of TA. Average age of a BPO worker is 24 years. They are a pampered lot with nice
office environ and disposable incomes. Majority of them are conversant with English as a language
and are the hip-hop stream that are upwardly mobile, socially well conscious and can act as
passive brand ambassadors. Hence targeting them is the right idea.
Can be positioned for internal R&R programs. Almost all of the BPOs run incentive programs for
their CSEs/CSRs, so goMo™ CONNECT can be used for their internal rewards and recognition or
for gifting as incentive.
Can be sold personally to employees via the kiosk mode. We can put up a kiosk in the canteen
with the permission of the respective authorities in these calls centers and create awareness and
traction for sales.
Cons
To do promotions and sell through simultaneously it will require manpower and prior written
permission from the authorities in advance. The activity requires to be run 24X7 because of the culture
of the working environ and majorly in international operations the staff is available in large numbers
during the night shifts.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
How to sell (A Likely Approach)
Some of the key names and players in this category are
Genpact
IBM Daksh
WNS global services
Wipro BPO
HCL
ICICI OneSource
Infosys BPO
Accenture
EXL
We need to engage with their HQ teams at the HR levels and go through the lead generation process
as mentioned separately.
4.2.3.12
DTH / TV Content Distribution Companies
Touted to be the next best thing in television broadcasting a few years back, DTH in India has lived up
to its promise of big numbers. A recent report released by Singapore-based Media Partners Asia
(MPA), the total DTH subscriber base has touched 44.4 million in the country in November, 2011. In
2010, it was 25 million. DTH has thus grown 77% in a year. Of the Rs.32,000 crore Indian TV market, a
bulk of the money, close to 60%, comes from the money that subscribers pay for DTH or cable
services. Thus with these new figures, the number game in Indian television changes drastically. DTH
is the platform for watching TV in nearly one third of the 148 million TV households in India.
Why Them?
The above mentioned figures indicate that our defined TA is already available in large numbers
within this segment of users. These are consumers with disposable incomes and early adopters of
new technologies. Hence it makes sense to explore partnering with these players.
We can offer goMo™ CONNECT units as a free bundle for their new consumers, or existing
consumers who fall under the slab of high ARPU category. All these players are constantly putting
in advertising efforts, various lucrative schemes to woo consumers so our product can be a great
offering.
We get indirect mileage in terms of distribution, awareness creation and placement with our
desired TA and more so this will help us later when we want to reach the masses.
Cons
Due to the large size of these organizations and disparately located decision making authorities it is a
long and tedious process to get introductory meetings and another time consuming process of product
approval.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
Also since their scope is to capture the four screens i.e. Cinema, Computer, Television and Mobile so
it might be an apprehension that our product might cannibalize into their pie. Logically speaking the
screen size of mobile in comparison to the other three will be a limiting factor; also consumers will
like to experience better content delivery and rich viewing experience which is best possible on a
television screen.
Moreover Television is more evolved in terms of adoption.
How to sell (A Likely Approach)
The top players in this category are
Dish TV
Tata Sky
Big TV
Sun TV
Airtel
Videocon
Currently there are top six players and we need to engage with their HQ teams at the product and
consumer marketing levels and go through the lead generation process as mentioned separately.
Revenue Model
Depending upon the B2C vertical the revenue model will have to be customized and will broadly be
bifurcated as below
Back to back. Holds true in case if the customers are credit card companies.
Outright Purchase. Holds true for engagements where bundling is required or the goMo™
CONNECT is going for large numbers in case of R&R programs.
Pricing will have to be manipulated as per the demand pattern and depending upon to which
vertical and what organization it is.
A uniform credit policy has to be formulated and applied according to the kind of end customer
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
5. Lead Generation Model
The engagement model with all of the prospects is going to be common. We need to classify them
according to the following rule:
A. Identified – Intent to pursue (Hot)
B. Contacting – Attempting to engage (Warm)
C. Qualifying – Introductory dialogue occurring (Cold)
This process has already been initiated and requires revamping to make more consolidated database
of contacts which is being prepared and will be shared separately.
After the lead generation activity the positive prospects will be approached for demonstration and
commercial process as next steps for forging an alliance.
5.1 Opportunity Matrix
Various opportunities will be identified and should be categorized as per the following matrix.
The objective is to measure the timelines and end results
Opportunity Stage
Probability
Activity
Opportunity Identified
0%
Potential prospect identified.
Idea Discussed
0%
Client confirms, issues, challenges etc.
Concept Solution
Delivered
10%
Written concept submitted to prospect.
Solution Meeting
Complete
20%
Concept discussed including how and when to
begin.
Full Solution Delivered
40%
Solution submission including demo, outcome,
timeline and pricing.
Solution Validated
50%
Proposal modified if necessary or resubmitted.
Verbal Approval
75%
The proposal gets accepted by the relevant DMA
(Decision Making Authority).
Negotiation Stage
90%
Contract and SOW in review / negotiation.
Formal signing of SOW
100%
Contract and SOW signed and awarded.
Opportunity Lost
0%
Autopsy.
Deal Dead Or Delayed
0%
Return to nurturing.
Note: The above opportunity matrix is the framework according to which the leads generated will be monitored
on a weekly basis. This will act as kind of CRM module for managing “Sales Leads” and form another set of refined
data for reporting and monitoring. It will also help us in taking well informed corrective actions.
Company Confidential
Page 35 of 42
Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
Company Confidential
Page 36 of 42
Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
5.2
Initial Target Accounts and timelines for The Next Quarter
A separate list in the excel format is attached. The list attached is the Category - A list (Intend to
pursue)
In total there are 81 accounts identified including the 7 already qualified prospects of Port Indigo
prior to my joining. There are 10 categories of these identified prospects.
The prospects identified have been listed according to their industry verticals which relate to (A)
the “Market Segments” identified and (B) also contain prospects meant for B2B Alliances. For
example “Handset OEMs” – The identified prospects are the prospects which are business leaders
in their own category and have consumers / buyers which fit the description of TA as identified
and defined by us.
Timelines – Starting March 2012 we will try and forge alliances with at least 2 players each from
the categories listed within a time frame of next 90 days.
A few of the prospects do not have the pertinent and necessary contact details which will soon be
worked upon and incorporated in the database.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
6. Pricing
Pricing Components
Description
Landed cost
This includes manufacturing, packaging, shipping and
importing costs. For calculation sake we call it LC
Taxation
Depending upon the statutory laws. We call it T%
Premium / Profit Margin
We call it P%
Distribution Margin
20-30% depending upon the B2B partners, we call it DM%
Expense & Operational Costs
This will include logistics and promotion costs. Generally 1015% of the overall costs. We call it LC1
MOP / MSRP
LC + T%*LC + P% of (LC+T%*LC)+DM%* (LC + T% of LC+P% of
(LC+T%*LC))+LC1
The market introductory price will have to be fine-tuned bearing in mind the buying and purchase
patterns of the Indian customers, not to overlook the buffer for discounting.
The ball park transfer pricing can range between INR 400 to 600 depending upon the size and
name of the distribution partner, Quantity, internal margin levels, strategic aspect of the deal.
The MSRP / MRP will be driven by the partners in case of MNOs and Handset OEMs. This is the
common trade practice. But we need to ascertain and maintain the MOP (Market Operating Price)
in conjunction with these partners.
A good price point (MSRP / Introductory price) can be INR 1099 or 1199 to serve the end-customer
mindset from the notion of “Perceived Value” and also keeping in context the buffer of margins
or price discounts to be passed on to the B2B partners, distribution and retail partners both at the
national as well as regional level.
We will also have to comply with the statutory requirements of the “MRP ACT”
Company Confidential
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
7. Resource Requirements
7.1 Standard
A fully functional demo kit
Copy of Standard NDA
Channel partnership agreement
DOA (Dead on arrival) policy - the bullet points for this policy will be TAT of 5 working days,
Authentication from the respective channel partner required, and time frame of 14 – 21 days for
reporting the DOA.
7.2 Marketing
Awareness campaigns via Social Media like (FB, LinkedIn, Orkut, and YouTube). A sample case
study is also attached for reference.
Mobile campaign has to be specific keeping the TA in mind.
BTL (Below the Line) agency for experiential push and awareness creation
Marketing inputs in the form of standees, danglers, fliers, trainings for the OTC staff for B2B
partners like MNOs, Regional distributors and retail touch points.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
7.3 Manpower
Channel Team - 4-6 ASMs category, In-store promoters (required for LFRs/Multi Brand Retail
stores/Mall activities).
Corporate Accounts – 4-6 Corporate accounts sales executives specifically for exploring the B2C
alliances.
Operations – For billing, logistics and maintaining the warehouse
Note
All the manpower should be outsourced to the BTL agency we finalize upon. Makes it more economically
viable.
The Channel team should be placed (Only ASMs) one month in advance of the actual product launch so
that the product availability is taken care of timely. The pedigree of these ASMs should be typically from
the local markets, which have been involved in the telecom distribution and know the basic dynamics.
This will help in creating advance orders with the local distribution partners.
In store promoters should be placed after the distribution alliances have finalized whether it is traditional
retailer or large format retailer.
7.4 Central Warehouse & Transportation
The central warehousing should be maintained in New Delhi and we can tie up with a courier company
like GATI or DTDC for transportation. Statutory compliances in consultation with the finance
department need to be clarified. Transportation costs have already been incorporated in the formula
for pricing. This whole operation will require hiring a space meant for warehousing.
Later when the operations become big and multi cities we can tie up with “Third Party Logistics”
companies like DIESL.
7.5 Sales Logistics
All partners have to go through a financial screening / due diligence before fixing up of the credit
limit for them.
All payments have to be in advance, 30 days local LC or maximum 60 days depending upon the
credit rating of the B2B partner.
All commercial transactions have to be documented with proof of payment.
Initially we can use software like Tally® ERP for maintenance of inventory, billing code creation
and PO number generation of each B2B partner.
Maximum TAT for the goods to reach the respective partner’s should not exceed 72 hours in case
of local delivery and maximum 120 hours in case of upcountry locations.
Company Confidential
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
7.6 Packaging
Packaging trends in the home grown mobile segment are that the design dimensions of the product
are given to an external agency who designs the same according to your needs and demands and then
the same with a sample is shared with the OEM in China who do the packaging for you and charge for
the same.
So in effect we need to first outsource a designer who could produce a design as per our requirements
and educates us also on the quality of the paper that needs to be incorporated for the packaging.
The packaged product then needs to be qualified and quantified as per statutory laws of “MRP ACT”.
Also we need to declare things like free from “Health & Environmental Hazards”
7.7 Information Technology
Billing software
Barcode scanners
Network Printers
Wireless Internet Connectivity
Laptops / Desktops / Central Server
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.
8. Post-sales Support
Post-sales is a very important aspect for any product or service to succeed with the end consumers.
This will cover the following aspects:
Replacement issues of faulty or DOA (Dead on Arrival) products, A DOA policy has to be formulated
for the same. A broad outline has been mentioned above.
TAT – Turnaround Time also has to be ascertained which will play a very critical role in building
credibility for the product and organization. A typical TAT for introductory product line like ours
should be immediate on the spot in case of faulty products since the product costs involved are
not very high and we have already kept a buffer for the same.
Inventory Planning for the replacement has to be done. The general industry trend is 2% to 5% of
the inventory has to be kept for replacement.
Mechanism of addressing the customer grievances has to be defined, and it has to be addressed
through the various channel partners.
Customer education on how to operate the device and upload the application also has to be taken
care off.
Telephonic support should also be incorporated. The financial viabilities have to be ascertained,
but it will become mandatory once the operations become big.
8.1
Returns Policy
The following bullet points can be incorporated to formulate the policy.
Goods once sold will not be returned unless otherwise the returned product has been qualified
according to the DOA policy or is broken when the packaging was opened for the first time. The
instance has to be reported within 48-72 hours.
Require a copy of the invoice for the return.
Refunds have to be in the form of currency which was used for the buying the unit.
Every partner to be offered a CN (Credit note) which needs to be adjusted with their future
purchase.
The length of the time that is being allowed by a retail store whether LFR or regional has to be
determined.
A tracking mode to be put in place for enforcing the returns.
Sales staff at all levels has to be educated about the returns policy.
The onus lies on the consumer to ensure that the packaging has not been damaged or tampered
with before accepting or purchasing the product.
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Copyright ©2012 by Port Indigo Mobile Solutions Pvt. Ltd.
Port Indigo Mobile Solutions Pvt. Ltd. (www.portindigo.com) is a fully-owned subsidiary of Port Indigo, Inc., a US-based company that offers products & services in
mobile telephony.
All rights reserved. Port Indigo, the Port Indigo logo, go explore your world, and gomo™ CONNECT are trademarks or registered trademarks of Port Indigo Mobile
Solutions Pvt. Ltd, in India and/or other countries. Publication Date: March 2012. Contents of this document may not be copied or distributed in any manner.