NTADBM Mobilocs Group 7 Project Report

7/31/2019 NTADBM Mobilocs Group 7 Project Report

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New Technology Applications

Design & Business Models(NTADBM)

IIM-NID Joint Course

June to August 2012

Instructors: Prof. Rakesh Basant, Economics and CIEE (IIM)

Prof. Deval Kartik, Strategic Design Management (NID)

Prof. Bhavin Kothari, Strategic Design Management (NID)

Prof. Jignesh Khakar, New Media Design, (NID)Academic Associate: Vijaya Rajeshwari

Group 7

Lohit Ahuja | Nikita Iyer | Priyanshu Dubey | Tusshar Saigal


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Table of Contents

Need Identification.................................................................................................................................. 1

Introduction............................................................................................................................................. 1

Purpose and Benefits of the Device .................................................................................................... 1

Technology & Design ............................................................................................................................. 2

Existing Security (Physical Lock and Key) system ............................................................................ 2

Anatomy of old system ................................................................................................................... 2

New System with Digital Key ............................................................................................................ 3

What is NFC?.................................................................................................................................. 3

NFC based Working Model ............................................................................................................ 3

Architecture of Design Solution ......................................................................................................... 4

Scenario .................................................................................................................................................. 5

Without Mobiloc................................................................................................................................. 5

With the use of Mobiloc ..................................................................................................................... 6

Business Model ....................................................................................................................................... 7

What is being sold and the associated assets needs?........................................................................... 7

Customer Insights ............................................................................................................................... 7

Product Development on the basis of Customer Insights ................................................................... 8

Segmentation, Targeting, Positioning (STP) ...................................................................................... 8

Segmentation................................................................................................................................... 8

Targeting ......................................................................................................................................... 8

Positioning ...................................................................................................................................... 9

Product, Pricing, Advertising & Promotion and Place ....................................................................... 9Product ............................................................................................................................................ 9

Pricing ............................................................................................................................................. 9

Advertising:................................................................................................................................... 10

Promotion:..................................................................................................................................... 10

Place:............................................................................................................................................. 11

Sales and Distribution Channel......................................................................................................... 11

Revenue Model ................................................................................................................................. 12

Standard Model ............................................................................................................................. 13


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Customized Model ........................................................................................................................ 13

Marketing, Sales and Distribution Model ......................................................................................... 14

Economic Logic ................................................................................................................................ 14

Market Study................................................................................................................................. 15

Market Analysis ............................................................................................................................ 17

Financials ...................................................................................................................................... 18

Bibliography ......................................................................................................................................... 22


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Need Identification

Theft is a major concern across genders and all age groups. There is a constant fear to

safeguard valuables for short and long periods of time. But this involves a lengthy tediousprocess of the current physical lock and key system which users have no choice but to follow

or if not followed, forego their valuables.

It is this problem that we are trying to solve where users can lock and unlock their valuables

through digital key mechanism by cutting down on the process time and ensuring a safer

security system through new technology applications to the current combination lock and key

system.

Introduction

MOBILOCS is an innovative security device that will empower users to safeguard their

valuables through their smart phones. There are two parts of Mobilocs one is physical lock

with digital receiver and second is smartphone which can communicate with the lock and

thereby giving user a one-click option to lock and unlock all the devices one owns.

Purpose and Benefits of the Device

The primary purpose of this device is to eliminate the tangible key system and theassociated problems like losing keys, misplacing, carrying and recalling keys.

It enables the user to lock and unlock valuables through a password code on their phonesso all the bags could be safeguarded through just one password.

It eliminates the physical handling of keys in lock and key system by replacing it withdigital mechanism.


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Technology & Design

Existing Security (Physical Lock and Key) system:

A lock is a device that keeps valuables safe or restricts access to something that needs

protecting. A lock can hold things out or keep them in. Before the modern electronic age,

locks were entirely mechanical and based on intricate mechanisms made

from levers, wheels, gears, and cams. During the mid-20th century, locks became more

sophisticated and automated and started to incorporate electrical and electronic mechanisms.

But now information is valuable too and most of it is held inside hundreds of millions of

computers that are all linked together through the Internet. Modern locks that protect

computers are based on encryption which is a way of securing information using complexmathematical processes.

Anatomy of old system

The pin tumbler is commonly used in cylinder locks. In this type of lock, an outer casing has

a cylindrical hole in which the plug is housed. To open the lock, the plug must rotate.

Without a key in the lock, the driver pins (blue) are pushed downwards,

preventing the plug (yellow) from rotating.

When the correct key is inserted, the gaps between the key pins (red)

and driver pins (blue) align with the edge of the plug (yellow).


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When the gaps between the pins get aligned with the shear line,

the plug (yellow) can rotate freely.

New System with Digital Key

At the heart of this idea we have a new technology called NFC or Near Field

Communication.

What is NFC?Near field communication (NFC) is a set of standards for smartphones and similar devices to

establish radio communication with each other by touching them together or bringing them

into close proximity, usually no more than a few centimetres. NFC standards cover

communications protocols and data exchange formats, and are based on existing radio-

frequency identification (RFID) standards.

NFC based Working Model

The NEXT generation of smart phones are all going to be NFC enabled. There are already

many Android phones available in the market that are NFC enabled. We have incorporated an

NFC reader along with an NFC tag inside our lock. There is a small micro-controller inside

the lock which will control the movement of the solenoid. The solenoid is our locking

mechanism.

The user will first have to download a Mobiloc app from the Android App-store (this app will

be free). Once the app has been downloaded the user will see a lock (image) icon on his home

screen. The user simply has to tap on this icon to open or close the lock. Since NFC has a


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short range of 5 cm, the user will have to get the phone within range of the lock to change its

state.

What really happens is that the NFC enabled phone simply reads data from the NFC tag

inside the lock to identify the state of the lock. Once the state has been identified the user can

change the state of the lock by writing a new state in the NFC tag inside the lock. The NFC

reader inside the lock will read the data from the NFC tag and tell the micro-controller inside

the lock, about this change in state.

The micro-controller controls the locking mechanism i.e. the solenoid. The solenoid is

basically acting like an automatic latch. The latch closes in lock state and the latch opens in

open state. The NFC reader will tell the micro-controller about the state of the NFC tag and

the micro-controller will open or close the lock with the help of the solenoid.

Architecture of Design Solution


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Scenario

Without Mobiloc

User travels with luggage

User spends time looking for key

User locks luggage with lock and key system


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With the use of Mobiloc

User travels with luggage

User locks/unlocks luggage by one tap on the smart phone

Luggage Unlocked using NFC


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Business Model

What is being sold and the associated assets needs?

In Mobiloc we will fall under the highlighted category of Manufacturer & Inventor.

Types of

Rights Sold?Types of Asset involved?

Financial Physical Intangible Human

Creator Entrepreneur Manufacturer Inventor Human creator

Distributor Financial trader Wholesaler/Retailer IP trader Human

distributor

Landlord Financial

landlord

Physical Landlord Intellectual

landlord

Contractor

Broker Financial broker Physical Broker IP broker HR broker

As the technology doesnt have a close precedent hence we can claim ourselves to fall in the

Creator category.

Secondly our assets are physical and intangible because we will be selling the products

through 2 channels:

1. Outsourced manufacturing and then selling in the market i.e. B2C selling of physicalgoods.

2. Giving licenses to top players in market (like VIP) so that they can design the lockaccording to their needs and earning royalties from them. This is B2B selling of

intangible IP.

Customer Insights

Mobiloc is an amalgamation of innovative thinking by group & focussed group discussions.

As part of focussed group discussions we interviewed 2 groups of people in a train while

travelling a return trip from Ahmedabad & Delhi.


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Few of the key points that emerged from those consumer discussions are:

1. Travellers especially in train are quite wary of their luggage.2. Cautiousness about luggage protection is independent of the class you travel in the

train. Reason for this are:

a. Passengers board & de-board the train midway.b. Secondly no stringent measures are taken by Indian Railways in restricting the

unreserved persons from travelling in reserved bogies.

c. Lastly the master keys exist for almost all locks currently in the market.3. Carrying key is majority of times a pain as the only place it can be placed is in the

pocket post locking the luggage.

4. Passengers are willing to spend almost 100% premium amount if new solution canpromise them a peaceful sleep during their journeys.

Product Development on the basis of Customer Insights

On the basis of these insights and with a rough draft prior to focus group discussion we come

up with a product called Mobiloc. The technology and design aspects of the Mobiloc has

been discussed in earlier sections of the report which clearly demonstrates that our product is

directly catering to the pain point of customer i.e. freedom from carrying keys and

enhanced security of luggage.

Segmentation, Targeting, Positioning (STP)

Segmentation

We will be considering segmentation from 4 different perspectives:

1. Geography wise segmentation: Here we will be considering Tier 1 & 2 cities.2. Demographic wise segmentation: Here we will be considering Male, Female, Elderly

and Bachelors.

3. Socio Economic Wise: Here we will be considering SEC A & B classes4. Lifestyle Perspective: Here we will be considering aspirer & succeeder.

Targeting

We will be targeting following 2 categories


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1. Under male section15-25, 25-40 & > 40 years of age group2. Under female section 20-30 years of age group only because this is the primary

womens section which travels by them. Elsewhere they are accompanied by family.

Positioning

It will be positioned as a unique solution offered to provide enhance security

to luggage users along with reducing the pain of carrying key which translates to enjoy full

journey.

Product, Pricing, Advertising & Promotion and Place

Product - The product Mobiloc would be sold in two forms

1. Standard Lock ModelThe lock with above-mentioned design will be manufacturedand marketed to consumers as the first digital lock. The manufacturing would be

outsourced to suitable manufacturer to avoid initial investment on manufacturing and to

incur only the variable cost per lock. The consumer of this lock would be NFC-enabled

smart phone users and would buy it for their laptop bags, backpacks, handbags, travel

bags etc.

2. Customized Lock Model This variant of Mobiloc would be manufactured incollaboration with premium suitcase/bag companies to allow some of their bag models

come pre-installed with this digital lock. The variant would be needed so that the lock

gels in with the suitcase/bag unobtrusively and doesnt affect the aesthetics of the bag. A

premium suitcase model in partnership with one of the top companies like VIP,

Samsonite or American Tourister will be launched and then depending upon the response,

further partnership with more suitcases/bags companies for more number of models to

incorporate Mobilocs would be formed.

PricingThe prices for the above said locks will be as below

1. Standard Lock - The average cost of a good physical key lock in the market is Rs. 40. Ascustomer s are willing to pay 100% mark-up on existing products hence we would be

pricing Mobiloc Standard version at Rs. 99/piece. We are expecting to earn a net margin

of Rs. 15 on every unit sold.


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2. Customized Lock Model Here as we are giving them licenses hence we are concernedabout the royalty only. Given the fact that this model will increase the exposure of

Mobiloc (through pre-installation in well-known companies products) & would serve as

good marketing and promotional tool for Mobiloc hence we have kept the royalty as Rs.5

/installed piece sold.

3. The application to control the locks using smartphones would be made freely available iniPhone, android and Nokia app stores. This will reduce the switching costs for customers.

And in the coming years we will also try to get this application pre installed in some

Smartphone manufacturers.

Advertising:

E-marketing campaign with more focus on mobile ads would be launched to target smart

phone users. So the marketing channels used would be internet, email, mobile and

bag/suitcases stores.

Within the internet we will be taking help of primarily 2 platforms:

1. YouTube Channel Channel creation is not a costly affair. And this is significantlycheaper than creating & launching a TVC. Here we will include viral ad videos.

Moreover through this we will be able to channelize our effort to our target customer

only.

2. WebsiteIt is very necessary as any authenticated product in todays market is adjudgedby its internet presence. Hence making a website would be of prime importance. Here

products technical specifications, its price list, store availability; bug reporting centre etc.,

all will be there.

Promotion:

1. We will certainly keep away from discount based promotion.2. Instead we will come up with promotional schemes which can improve our product,

generate sales for us and off course create the buzz about our product.

3. To have such a scheme we will organize a temporary stall in malls, where people cancome & give suggestions, where all products can be displayed and product can be sold

also.


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Yearly advertising & promotional expenditure is as given below:

Figure 1: Yearly Advertising & Promotion Expenditure (Details in Economic Logic Section)

Place:

The product will be made available at following places:

1. Book stores at Railway Stations & Airports because here most of our target population isexpected to turn up.

2. Tie up with luggage specific stores in common markets (like Lajpat Nagar), supermarkets (like Shoppers Stop) and hyper markets (like Reliance Mart)

Sales and Distribution Channel

Two kinds of sales channel will be used.

1. Direct Sales Channel This will consists of experienced sales persons & limited innumber. They will be primarily looking into making sales pitches to big clients for

convincing them to buy licenses for their products. Ramp up in this team will be very

slow as we have limited number of customers to target in B2B. They will focus on

realizing sales target for customized Mobilocs. The ramp up this sales force is given as

below:


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Figure 2: Number of salesperson required as direct sales force (Details in Economic Logic Section)

2. Indirect Sales Channel This channel will comprise of conventional sales route i.e.Distributor followed by wholesaler then to retailer and finally to customer. The ramp up

for this team will be a bit fast rate as they need to sell our flagship product i.e. Standard

lock model. They will get in touch with every kind of person involved in sales channel be

it distributor, wholesaler and retailer & convince them to hold our product. The ramp up

this sales force is given as below:

Figure 3 : Number of salesperson as indirect sales force (Details in Economic Logic Section)

Revenue Model

Using the current NFC-enabled smartphone users in India and the growth rate of such users,

the market size of these locks have been estimated. As one user could buy multiple Mobiloc

for multiple bags, the effective market for digital locks is much bigger and as a first mover,


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we hope to capture most of the market share of it. The number bags of different kinds sold in

last few years by various brands and by unknown brands and the respective growth rate data

have also been collected and projected for next four years.

Standard Model

1. Organised SectorThe penetration of Mobilocs in branded suitcases/bags market isexpected to be higher than organised sector and thereby expected captured market

share of Mobiloc has been increased from 1% in 2013 (launch year) to 15% in 2016.

The calculations for revenue and profits have been made using these assumptions and

the total revenue from organised sector for year 2013-16 is Rs. 16.92 crore.

2. Unorganised Sector The penetration here is low as the NFC-enabled smartphoneusers buying unbranded locks would be low. The captured market share assumptions

here are 0.1% in 2013 increasing to 1% in 2016. The revenue calculated from this

sector for years 2013-16 is Rs. 5.85 crore.

Yearly revenue from this model is as shown below:

Figure 4: Yearly Expected Revenue from sales of Standard Model (Details in Economic Logic Section)

Customized Model

The initial partnership with VIP is going to get minimal revenues to the tune of Rs. 7.7

lakh. From the second year 2014, the partnerships will increase and the total revenue for

years 2013-16 is expected as Rs. 1.69 crore.


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Yearly revenue from this model is as shown below:

Figure 5: Yearly Royalty Earned from Customized model (Details in Economic Logic Section)

Marketing, Sales and Distribution Model

As discussed above, the customized model and the tie-ups with big suitcase companies would

serve as a promotion exercise for Mobilocs. Apart from it, a marketing and advertising

campaign would be launched with the theme of first digital lock highlighting the ease of use

and improved safety features. The campaign would be kept keeping tech-savvy audiences in

mind as they only with their NFC-enabled smartphones are our target consumers. Theadvertising campaign would be made to make a cognitive impact of these tech-savvy people.

E-marketing campaign with more focus on mobile ads would be launched to target

smartphone users. So the marketing channels used would be internet, email, mobile and

bag/suitcases stores.

Economic Logic

The steps for arriving at economic logic and the numbers are given below. The Red filled

cells are expected values in coming years.


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Market Study

1. Calculate the total value of travel bags market in India.

Figure 6 : Total value of travel bag market segregated into different categories (Source: Euromonitor, 2011)

2. Calculate the average price of each category in the market. We will be removing thehandbag category from above data because that is not our target product

Figure 7 : Average Price of various categories prevailing in the market (Source: Primary Data collection)

3. From above 2 tables we can extract the number of units made in each category.

Figure 8 : Number of units sold in each category

4. Get the market share data. An important observation over here was that close to 80% ofthe market is under unorganized sector.

Category DataRs Million

2011 2012 2013 2014 2015 2016

Backpacks 10,681 11,482 12,320 13,256 14264 15348

Laptop Bags 7,045 7,552 8,107 8,723 9386 10100

Handbags 20,105 21,000 21,968 23,000 24081 25213

Luggage 33,501 34,874 36,409 38,411 40524 42753

Travel/Sports Bags 10,059 10,155 10,247 10,345 10443 10542

Travel 81,391 85,063 89,051 93,736 98667 103858

Average Prices Rs.

Backpacks 1250

Laptop Bags 1600

Handbags NA

Luggage 5500

Travel/Sports Bags 1800

No of units made yearly 2011 2012 2013 2014 2015 2016

Backpacks 8,544,640 9,185,520 9,856,080 10,605,120 11,411,085 12,278,302

Laptop Bags 4,403,125 4,720,125 5,067,063 5,452,125 5,866,450 6,312,260

Luggage 6,091,073 6,340,800 6,619,800 6,983,891 7,368,007 7,773,249

Travel/Sports Bags 5,588,500 5,641,611 5,692,944 5,747,000 5,801,569 5,856,656


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Figure 9 : Market share data (Source: Euromonitor, 2011)

5. Then we identified who all the top players in each of the categories:

Figure 10 : Top 3 market players

6. As our product is closing linked with usage NFC technology hence we then collected dataregarding NFC enabled phones in the market.

Figure 11 : Number of NFC enabled phones expected in coming years (Gartner, 2011)

Travel Goods Company Shares

%

Company 2011

VIP Industries LTd 5.05

Samsonite South Asia 5.00

American Tourister 1.65

Fastrack 1.50

Targus 1.07

JanSport Asia 1.00

Nike 0.50

Puma 0.62

Reebok India 0.45

President Bags 0.20

Khadim India 0.20

Case Logic 0.28

Adidas India Marketing 0.23

Superhouse 0.12

Gucci India Pvt Ltd 0.10

Shopper's Stop 0.14

Aristocrat Luggage NA

Others 81.89

Total 100

Backpacks Fastrack American Tourister JanSport AsiaLaptop Bags Targus American Tourister President Bags

Luggage VIP Samsonite American Tourister

Travel/Sports Adidas Reebok Nike

Top 3 players in each category

Smart Phone Data

2011 2012 2013 2014 2015 2016

No. of smart phones

(millions) 9,500,000 20,000,000 32,000,000 48,000,000 67,200,000 87,360,000

% Smartphones with NFC 2% 5% 10% 20% 30% 40%

NFC based smartphones (u 190000 1000000 3200000 9600000 20160000 34944000


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Market Analysis

1. Assumption: Industry Wide Market Shares are approximated for individual categoriesalso. Because of lack of category specific market share.

2. Hence now calculating the number of units produced in each category by each of the top3 players.

Figure 12 : Total target units for Mobiloc

Backpacks ( No. of units for top players)

2011 2012 2013 2014 2015 2016

Fastrack 128,170 137,783 147,841 159,077 171,166 184,175

American Tourister 140,987 151,561 162,625 174,984 188,283 202,592JanSport Asia 85,446 91,855 98,561 106,051 114,111 122,783

Total target Backpacks 354,603 381,199 409,027 440,112 473,560 509,550

Laptop Bags ( No. of units for top players)

2011 2012 2013 2014 2015 2016

Targus 47,113 50,505 54,218 58,338 62,771 67,541

American Tourister 72,652 77,882 83,607 89,960 96,796 104,152

President Bags 8,806 9,440 10,134 10,904 11,733 12,625

Total target Laptop Bags 128,571 137,828 147,958 159,202 171,300 184,318

Luggage ( No. of units for top players)

2011 2012 2013 2014 2015 2016VIP 307,599 320,210 334,300 352,686 372,084 392,549

Samsonite 304,554 317,040 330,990 349,195 368,400 388,662

American Tourister 100,503 104,623 109,227 115,234 121,572 128,259

Total target Luggage 712,656 741,874 774,517 817,115 862,057 909,470

Sports Bag ( No. of units for top players)

2011 2012 2013 2014 2015 2016

Adidas 12,854 12,976 13,094 13,218 13,344 13,470

Reebok 25,148 25,387 25,618 25,862 26,107 26,355

Nike 27,943 28,208 28,465 28,735 29,008 29,283

Total target Sports Bag 65,944 66,571 67,177 67,815 68,459 69,109

Total Units 1,261,774 1,327,471 1,398,679 1,484,244 1,575,376 1,672,446


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Financials

Standard Model

1. Assumption:a. We will be launching in year 2013.b. In organized market we are expecting to capture market share of 13% till

2016.

c. In unorganized market we are expecting to capture market share of 1% by2016.

Based on the above assumptions we have the following Standard Mobilocs sold in market in

coming years.

Figure 13: Expected units of standard Mobilocs to be sold in market

2. Assumption :a. Being a premium product we will be pricing it at Rs. 99/pieceb. We are expecting a margin of Rs. 15/piece

Based on the above assumptions and Total Mobilocs sold we will be computing the money

available for advertising & promotion budget for us.

2011 2012 2013 2014 2015 2016

Travel Market ( in units) 24,627,338 25,888,056 27,235,887 28,788,136 30,447,111 32,220,468

Organized Sector (%) 18.11

Industry Growth 2.10%

OS Penetration 18.11 18.49 18.88 19.28 19.68 20.09

Organized Sector (units) 4,460,011 4,786,782 5,141,756 5,548,930 5,991,941 6,474,094

Market Share (Capture, Assume) 1% 5% 9% 13%

Mobiloc units sold (in organized market) 51,418 277,446 539,275 841,632

Unorganized Sector (%) 81.89

UOS Penetration 81.89 81.51 81.12 80.72 80.32 79.91

UnOrganized Sector (units 20,167,327 21,101,274 22,094,131 23,239,206 24,455,170 25,746,374

Market Share (Capture, Assume) 0.10% 0.50% 0.80% 1.00%

Mobiloc units sold (in unorganized market) 22,094 116,196 195,641 257,464

Total Mobilocs Sold 73,512 393,643 734,916 1,099,096


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Figure 14 : Money available for selling & advertising expenditure

3. Assumption:a. Considering 50% of above amount is available for advertising & 50% for sales

force development

b. Consider 1 sales person for this channel will be paid Rs. 360000 per annumBased on the above data we will be computing the advertising mix for subsequent years &

sales force strength.

Figure 15: Advertising Mix

As seen from above table we are well within the budget.

2011 2012 2013 2014 2015 2016

Total Revenue (Rs.) 7,277,657 38,970,609 72,756,686 108,810,500

COGS

Cost of Normal Lock 25 25 25 25

Cost of chip 20 20 20 20

Cost of NFC tag 15 15 15 15

Cost of 1 Mobiloc 60 60 60 60

Total COGS 4,410,701 23,618,551 44,094,961 65,945,757

Expected Margin for 1st year 15

Expected growth in margi 2%

Expected margins in various years 15 15.3 15.6 15.9

Total expected margins 1,102,675 6,022,730 11,469,099 17,495,541

Money available for Selling & Advertising Expenditure

1,764,281 9,329,328 17,192,625 25,369,201

Outsourced

(Hence

expecting this

is the cost per

lock)

2011 2012 2013 2014 2015 2016

Advertising & Promotion expenses available 882,140 4,664,664 8,596,313 12,684,600

Advertising & Promotion Mix

Youtube 100,000 100,000 150,000 300,000

Website 100,000 20,000 20,000 20,000

Mall Promotions 400,000 1,000,000 2,000,000 2,000,000

In store Promotions 282,140 500,000 1,000,000 2,000,000Print Media - 2,000,000 4,000,000 4,000,000

Radio - 1,000,000 2,000,000 4,000,000

Total 882,140 4,620,000 9,170,000 12,320,000


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Figure 16: Sales force strength for selling standard Mobilocs

Customized Model

1. Assumption:a. We will be launching this product from 2013 onwardsb. As for this we will be just negotiating with top market players and providing

them with the licenses hence here we expect that we will be conquering 30%

market share by 2016

c. The royalty is equal to Rs. 5 per piece.By using above assumptions we can calculate the total royalty earned as follows:

Figure 17: Royalty earned by selling licenses for Mobilocs

2. Assumption:a. We will be deploying 100% of royalty earned for sales-force development in

2013 followed by 75%, 60% & 50% in 2014, 2015 & 2016 respectively.

b. Salary for 1 sales-person here will be Rs. 500000 per annum. Increased salarybecause better skill set person is required to negotiate with top notch

companies.

2011 2012 2013 2014 2015 2016

Selling & Distribution Expense available 882,140 4,664,664 8,596,313 12,684,600

One selling person will take 360000 pa

Sales force strength 2 13 24 35

2011 2012 2013 2014 2015 2016

Travel Market ( in units) 24,627,338 25,888,056 27,235,887 28,788,136 30,447,111 32,220,468

Organized Sector (%) 18.11

Industry Growth 2.10%OS Penetration 18.11 18.49 18.88 19.28 19.68 20.09

Organized Sector (units) 4,460,011 4,786,782 5,141,756 5,548,930 5,991,941 6,474,094

Market Share (Capture, Assume) 3% 7% 15% 30%

Mobiloc units sold (in organized market) 154,253 388,425 898,791 1,942,228

Royalty (Rs./piece) 5

Total Royalty Earned (Rs.) 771,263 1,942,125 4,493,956 9,711,141


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By using this data sales force strength comes as follows:

Figure 18: Sales force required for negotiating with big companies for customized Mobilocs

2011 2012 2013 2014 2015 2016

Sales Force development allocation(%) 100% 75% 60% 50%

Corpus for sales force development 771,263 1,456,594 2,696,373 4,855,570

Sales force strength 1 3 5 10


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Documents

NTADBM Mobilocs Group 7 Project Report