Rentable Entertainment System for Long-Distance Train travel

Presented by –

Sharon D’CostaAnkur ShrivastavaSaket Bihari

THE CONCEPT

• High-tech on-board entertainment / work systems on Outstation trains.

• Low-cost, Rental System

• Based on the Captive Audience Network Model

THE OFFERING

Features

Internet & Voice Service

Webcam & video Chat

Movies

GamingE-books & Audio-books

Music

Satellite Radio

Booking Hotels/Cabs,

etc.

Product Price in INR

Aakash – low-cost Tablet PC 2,999.00

Reliance 3G Tab 12999

WESPRO 7" Netbook Laptop WIFI USB N720 800 MHz 256 MB 4071

Acer Emachine Mini Netbook Notebook 1GB 250GB 14,749.00

ASUS Eee PC X101H Netbook - N455 / 1GB / 250 GB 11,495.00

**Work with Economies of Scale to reduce costs.

THE HARDWARE

• Advertisers• Customer - Nominal

Rental Fee

• Procurement in bulk• Technology (software,

streaming media, etc.)• Maintenance• Inventory & Store

Space• Insurance• Misc.

• Railways• Travel Sites • Travel Magazines• Online Media

• Website• Physical Stores /

counters at all major Stations

Revenue Expenditure

PartnersResources

THE BUSINESS MODEL

CAPTIVE AUDIENCE NETWORKS

A broadcast-like medium for delivering informative content to viewers while they wait in a particular venue.

Use of plasma displays and LCDs to deliver content that is relevant to the target audience.

Common locations include medical centre waiting rooms, train and bus stations, and retail checkout areas.

The Technology - a display screen, a media player, and a content management server connected to the media player over a network.

OUR CONCEPT

• Replication of the mass CAN model in an individual, one-to-one format.

• Individual travelers rent the device for use throughout their train commute, while advertisements are streamed to it.

We Procure the Device in bulk from suppliers

Advertisers provide us with content + Fees

Content is Streamed to the device via a network Alternatively, manually installed/updated into each device.

Customer Orders the device via our website & inputs journey details

Customer collects the device at starting point of journey

Through journey - Customer uses the device, ads are streamed at regular intervals

Customer returns the device to store on arrival at destination point + Collects Deposit

Payment of Deposit either

online or physical -on

location

THE VALUE CHAIN

THE TARGET GROUP

Travels by outstation trains, AC / 1st class / Chair Car (Can later be replicated for General classes.)

Is technology savvy.

Mainly students, business travelers, tourists.

Long Distance travel, especially day travel, including long idle periods.

Can afford to spend approx. Rs 2000 as a refundable deposit (In addition to a rental fee of approx Rs. 100)

Step 1. Online

User Orders device via Website

Inputs Personal Details and Journey

Details

Makes online payment of Rental fee + Refundable

deposit (Optional)

Step 2. At Departure

User picks up the device from the Store on Starting

Rly. Station

Makes payment of Rental fee +

Refundable deposit (If not paid online)

Receives Temporary Key

Step 3. During

Journey

User Inputs temporary key and

unlocks device

User uses device throughout journey

Ads are streamed to device

Step 4. On Arrival

Validity of Key expires + system

self-locks

User returns device at Store at that

Station

Gets a FULL Refund of Security Deposit

*As compared to installing permanent on-board entertainment systems in trains

THE PITCH

For Advertisers

• One-to-one advertising to captive audience

• TG captive for long periods. Ample time for ad messages to register

• Large Audience

For Travelers

• Free usage of a high-tech entertainment device

• Payment only of a fully Refundable security deposit. (and a nominal rental fee.)

For the Railways

• Solution to major customer pain point.

• Relatively low-cost, outsourced business model*

• No /nominal charge to customer for high-tech on-board entertainment

• Competition to Airlines in this respect

MARKETING

• Irctc.co.in

• Possible Tie-ups with:

• Travel Websites like Makemytrip, Yatra.com, etc.• Travel Agencies

• Advertising at major railway stations

POTENTIAL CHALLENGES

• Pilferage / Damage.

• Software / Hardware issues & Troubleshooting mid-journey.

• Inventory management (various locations)

• Content - monitoring and updating on each unit.

• Low public familiarity with technology.

• Single-use pin number – travel-time based pricing.• Limited validity period, system locks and can no longer be accessed.

• Security Deposit equal to the cost of the Device, Fully Refundable

• Personal Details collected at time of order.

• Security Deposit + original documents.

• Insurance

• GPS/RFID

TACKLING SECURITY ISSUES

TACKLING INVENTORY & MAINTENANCE ISSUES

• Stock dispatched to respective Station stores only when order is placed.

• Small volumes of Inventory kept in stores on all major stations for Spot rentals.

• Toll-free technical support number / availability of a technician in major trains for troubleshooting.

Additional Rental

Formats

Single CAN Plasma screen

CDs/DVDs

Games

Books/ Magazines

E-book Reader

Potential for expansion

- Also Replicable in long-distance buses.

THE FINANCIALSAssuming implementation in 2 major types of trains in India

Rs.Revenue from rent 150000Income from Adv. 30000

Total Revenue 180000

Fixed Cost Cost of Tablet PC 150000Website creation 20000

Insurance 2500Total fixed cost 172500variable cost

Labour @ 5000/month 40000Shop rent 20000

Technicians @10000/Month 20000Website maintenance 10000

Total variable 90000Total cost 262500

BEP 1.675 months

Monthly Income Statement

REFERENCES

http://features.ibnlive.in.com/features/cjawards/sponsor_livemedia.phphttp://indianwebstartups.com/StartupDetails.aspx?startupId=470http://www.terabug.com/live-media-the-new-advertising-chain-in-india/http://www.dailydooh.com/archives/356http://iims-markathon.blogspot.com/2011/01/captive-audience-networks.htmlhttp://business-standard.com/india/news/india-gets-worlds-cheapest-tablet-pc/451633/http://www.afaqs.com/news/story.html?sid=27808

THANK YOU

Ankur ShrivastavaSaket BihariSharon D’Costa