Final Presentation of the Design Camp
| sc_concept_presentation_final.pptx |
Our Service Concept
Background
Our Service in a Nutshell
Vision and Mission
What (vision): we want to be the leading service provider for travelers seeking to engage with the local life in their destinations by providing a social network for our customers.
How (missions): We will build a service platform that is both functional and usable to ensure high customer satisfaction. The service allows the travelers to contact the locals easily and enables communication with the groups.
How (missions): We will build a service platform that is both functional and usable to ensure high customer satisfaction. The service allows the travelers to contact the locals easily and enables communication with the groups.
Business Model
The business model of our service is presented in the below figure.
Key partners: These include the affiliate and advertisement partners we form with companies to gain revenue. A possible business partner could also be Lonely Planet, which is highly focused on the younger traveling crowd.
Key resources: the service platform is our main resource. We need the employees to sell the service to the affiliates and build the platform.
Key activities: up-keeping and managing the platform (e.g. answering to user problem notifications) are vital to ensure customer satisfaction. Efficient marketing is also needed to kick-start the network effects required for the success of the service.
Value proposition: our value for the users comes from connecting the locals to the travelers.
Customer relationship: we need to build relationships towards the end-users and also to the affiliates through the service platform.
Distribution channel: the distribution channel is the Internet.
Target customers: we are targeting people who are interested in traveling and want to meet local people while doing so. We are probably targeting mostly users between 18 and 35. Market segmentation is not useful as our service is the same for every individual user and the user can choose which functions to use according to his/her preferences.
Revenues: We could form affiliate contracts with Amazon, eBookers, Hostelbookers.com, Hostelworld.com, Supersaver.com and others like to re-direct some traffic from our site to theirs to gain a percentage of the purchase revenues. Related to this, we could start with AdSense or something like that, which would provide us with the means to calculate the clicks we gain. Also, we could sell the customer data to market research companies or other interested parties once we have substantial enough customer base and if there is interest for such a thing in the market. We could also opt for having local advertisers to have more direct advertisements to the travelers and the guides in the exact locations.
Costs: hiring people to develop the service and tho market it would probably be the biggest source of costs. Also, we would need to rent infrastructure from for example Nebula.
Key resources: the service platform is our main resource. We need the employees to sell the service to the affiliates and build the platform.
Key activities: up-keeping and managing the platform (e.g. answering to user problem notifications) are vital to ensure customer satisfaction. Efficient marketing is also needed to kick-start the network effects required for the success of the service.
Value proposition: our value for the users comes from connecting the locals to the travelers.
Customer relationship: we need to build relationships towards the end-users and also to the affiliates through the service platform.
Distribution channel: the distribution channel is the Internet.
Target customers: we are targeting people who are interested in traveling and want to meet local people while doing so. We are probably targeting mostly users between 18 and 35. Market segmentation is not useful as our service is the same for every individual user and the user can choose which functions to use according to his/her preferences.
Revenues: We could form affiliate contracts with Amazon, eBookers, Hostelbookers.com, Hostelworld.com, Supersaver.com and others like to re-direct some traffic from our site to theirs to gain a percentage of the purchase revenues. Related to this, we could start with AdSense or something like that, which would provide us with the means to calculate the clicks we gain. Also, we could sell the customer data to market research companies or other interested parties once we have substantial enough customer base and if there is interest for such a thing in the market. We could also opt for having local advertisers to have more direct advertisements to the travelers and the guides in the exact locations.
Costs: hiring people to develop the service and tho market it would probably be the biggest source of costs. Also, we would need to rent infrastructure from for example Nebula.
Differentiation
We have identified four main competitor categories: Accommodation Portals (such as CouchSurfing and HospitalityClub), guide books, guided activities, and online trip planner (such as Trourist and NileGuide) and listed how LocalEyez differentiates from these services.
