Vision Future

Industry: Retail Advertising Summary: Introduction of Advertising on Stationary specially Notebooks used by students and professionals. With high Shelf life and ROI, a unique opportunity better than any Print Media Advertising. Stage: Operational since 6 months, with more than 10 advertisers. Investment required: $50000

Ankit Mehta Tushar Kumar

Gaps and Opportunities

With developing technology its getting difficult for advertisers to get eyeballs of their target consumers/customers. Television remotes make people change channel during every break. News papers have shelf-life of 10-20 mins. Magazines lie on shelves for whole month and then travel to Garbage Bag Pamphlets, Leaflets play all roles except they are meant to Notebooks have still retained their place not only for students but for working professionals as well. An important media of advertisement to get eyeballs of consumers

The average shelf-life of any notebook advertisement is around 45-90 days.

The Advertisement moves with the consumer and makes multiple touch points. A highly cost effective solution .

TV

Radio

News paper

Magazines

Notebook

Avg rate ($)

Avg visibility clutters

500/10 sec
10 seconds High

20/10 sec
10 seconds High

80/sq cm
1 hour High

100/sq cm
15 days Low

6/sq cm
90 days Very low

Reach
Limitations

High
High cost of making and airtime

Low
High Channel switching

High
No specific target, Low shelf life

Low
High clutter

Medium
Long lead time

Report source: FICCI-KPMG 2011 report

Advertising Revenue (INR Bn)

180 160 2010 2011 140 120 100

Print Advertising (INR Bn)

180 160 140 120 100 80 60 40 20 0 Television Print Radio OOH Digital

2010 2011 2012P

2012P

80
60 40 20 0 Newspaper

Magazine

Biz Model
The paper industry total newsprint consumption is only 20% while Printing and Writing paper is 40%. It gives a huge opportunity to convert P&W paper to a new Print Media vertical. Notebook market is mainly operated through retailers who will become evangelists once they see more profit. Manufacturers and Suppliers operates within 5-10% profit margins and 40-45% profit margin is available to retailers. We plan to give more margins to retailers obtained from our Ad revenue. This way we can outplay the existing players (the number will increase as per the investment)

We plan to create following entry barriers 1) High Quality on manufacturing cost to retailers 2) Quick delivery to retailers 3) Creating loyal advertiser network 4) Giving quality services to our customers.

We have defined a total of 12 Ad space on notebook and plan to achieve year long advertisers for the same. Ads are meant for certain number of copies.

Sales Network
Location New Delhi Noida Ghaziabad sales point 142 46 8 Sales / Month 60000 8500 1000

Immediate Expansion
Location Gurgaon Faridabad Sahibabad sales point 6 5 5 Sales / Month 500 400 400

Strategy
Sales Strategy Advertisement
Primarily Educational Institutes (Schools, Coaching, Colleges and Training institutes) Restaurants and retails chains of a local player Easy payment options and Bulk ad purchase discounts. Using online and offline resources to make touch points. Initial focus on clients using print media and then move to everyone.

Sales Strategy - B2B for Notebooks

References and direct sales (Human resource intensive) Keeping High Quality and low rates will eventually give a thrust in capturing Notebook market. Ad revenue can be easily transferred to customers and consumers. Creating a loyal retail base with high quality, low rates and quick delivery services.

Distribution Channel
Plan to get more vendors spread across NCR regions so as to get direct delivery to retailers Plan to setup 3 more warehouse one each in Gurgaon, Ghaziabad, and East Delhi Plan to get 2 Commercial OMNI vehicles since it doesnt have any delivery time restrictions.

Infrastructure
Infrastructure 2 warehouses Noida and Delhi Rented Office in Noida 8 sales executives and 2 IT people for maintaining CRM

Team

Ankit Mehta
IIT Bombay Alum with more than 6 years of experience working in multiple startups & performing innumerable roles

Customers 150 Retail Stores across NCR region More than 10 advertisers (5 active) Distribution of 1 lakh notebooks/ Month

Tushar Kumar
MBA (M&S) PG with 3 year of experience in counseling students with their higher studies.

Competitors
Direct Advertising
Neelkamal (Rare) ITC (Self Branding)

Risk and Mitigation

Delivery Glitches can lead to potential loss of customer Credit Period and recovery pose potential rupture of system Manufacturing delay or defect poses serious threat to credibility.

Direct - Notebooks
BILT ITC Navneet Century Many local players

Indirect
Newspapers Magazines Banners/ Posters Pamphlets etc.

Circulation in Localized region of Advertiser Competitive Advertisement cause problems. Highly depend on environmental factors

Key Financials ($ K)
$K
Notebook

2011
No. of units
Sales Price/unit Total Advertisements No. of Accounts Avg. Fee Account Total Net Revenue ($ K) Gross Profit ($ K) Net Profit ($ K)

2012

2013

2014

2015

160,225 1,503,310 3,593,828 8,808,784 21,591,093

$0.48 $76,908

$0.48 $0.55 $0.60 $0.65 721,589 1,976,605 5,285,270 14,034,210

5.00 $300 $1,500 78 15 10

100 $300 30,000 752 130 22

275 $350 96,250 2073 461 196

530 $400 212,000 5497 1194 539

860 $500 430,000 14464 3079 1562

$K

We have currently infused 40000$ from savings, family and friends. We are looking for $1.5m to increase our current bandwidth and jump by two years. We plan to use this amount to increase Notebook sales capacity as well as the advertising sales.