ENTERPRENEURSHIP

DEVELOPMENT PROJECT

PROPOSAL

Submitted By:
Saloni Jain – 1820343
Sarah Afreen - 1820376
 BUSINESS PLAN I

EXECUTIVE SUMMARY

Introduction:

A chatbot is a computer program which conducts a conversation in natural language via

auditory or textual methods, understands the intent of the user, and sends a response based on
business rules and data of the organization”. AI is being used together with chatbot in
business which is changing the interactions between clients and service providers. Present-
day chatbots are able to afford split second reactions unlike phone calls, emails and other
web forms.

Need- problem

Lots of companies have chatbots that are not being used to their full potential. Perhaps one of
reason affecting the usage of chatbots is the plethora of chatbots available which is a very
flustering experience for the end user as there are many different places where the chatbots
can be accessed from and it is difficult to keep track. There is a need for a more unified
experience which can simplify things to a great extent.

Business idea and concept

Crack Tech will be an IT start-up with Crackton Chatbot as its primary product. Crack is a
chatbot designed to increase the usability of chatbots in general and to enable chatbots for a
wide audience. Our chatbot serves as an interface between the user and other chatbots.
Chatbots have started to take the place of real human support agents. It is much more
convenient and less time consuming to chat with a chatbot as there is no delay that comes
with a human interaction. You can have a smooth conversation with it and not have any
interruptions because it uses A.I (Artificial Intelligence) to find the appropriate response for
you.
Delta brings a more unified experience to the user as it is a chatbot that interfaces with other
chatbots and gets the job done. The user doesn’t have to go to different websites to use a
chatbot. The user can get all this done from an intuitive app which we aim at creating with
high definition effectiveness and will be available on popular app platforms like Google Play
Store (on Android) and App Store (on iOS).

BUSINESS MODEL
We have five sources of revenue:
 Commission from companies
 Customer support bot fee
 Advertisement
 Chatbot development fee
 Ad-free version through an in-app purchase from our app.

TECHNOLOGY
Information Technology is a field that enables all businesses in all industries to leverage
productivity and functions effectively in the modern global economy. Information
technology, hardware and software associated with IT industry are an important part of
nearly every major global industry. Both software and hardware development involved in IT
industry include everything from computer systems to design, implementation, study and
development of IT and management systems. It is a major global source for both growth and
employment.

AI is being used together with chatbot in business which is changing the interactions
between clients and service providers. Chatbots offer immediate response as expected by the
customers. Present-day chatbots are able to afford split second reactions unlike phone calls,
emails and other web forms.

COMPETITION
This is a relatively new service so the pressure for new entrants is initially low as potential
competitors will wait for a few years before entering the market so as to judge if the service
is valued in the market. And till that point we would have already established ourselves in
the market. Thus, the pressure of new entrants is low in the initial years.
 SOURCES OF FUNDS

SL No Sources of Capital Amount

1 Own funds ₹95,00,000
2 Total Capital ₹95,00,000

PROPOSED INITIAL INVESTMENT AND BREAKDOWN STRUCTURE

The initial investment is 21,10,000 lakhs.
The major cost of this app will be on a pay-per-interaction basis with Dialogue flow charging
₹ 0.2-0.4 per request and Google Cloud charging approximately ₹ 0.1-0.3 per request
(beyond the free quota) and a fixed commission on the revenue will be given to Carnegie
Mellon for usage of their Never-Ending Language Learner (NELL).
Initial Investment Breakup
Item Amount
App Development ₹ 9,20,000
Website Development ₹ 1,30,000
Hardware for testing and development ₹ 5,50,500
Office Furniture ₹ 2,50,000
Office Deposit ₹ 2,50,000
Developer Account ₹ 9,500
TOTAL ₹ 21,10,000

STP ANALYSIS

1. Segmentation
a. Demographic Segmentation :
Presently, we are focusing on the age group 18-28 years who are smartphone users and
use an average of 9 apps per day thus are in need of an integrated app which contains the
chatbots of all apps they use in one destination.
b. Psychographic Segmentation:
  Experiencers - Young, enthusiastic, impulsive people who seek variety and
excitement. They spend a comparatively high proportion of their time online on
fashion, entertainment, and socializing apps.
 Innovators - Successful, sophisticated, active, “take-charge” companies with a
revolutionary vision who are looking to up their marketing strategy and customer
service with the help of chatbots.

c. Geographic segmentation:
Our app can be downloaded across the world due to its availability on Google Play Store
and App Store but the chatbots available on the app will differ from one geographic
location to another and this depends on the various companies operating in that particular
country who want to integrate their chatbot with our app.
d. Behavioural segmentation:
 Nature of the purchase: It is designed for people who use multiple online services and
companies who want to provide customer services and their products using chatbot
and for companies looking for chatbot development and maintain a chatbot app also
for companies who want to sell their product or service, and provide customer service
using chatbots via app at cheaper rates.
 Usage level: people with medium to high usage level of online services like online
food ordering and online shopping. Businesses that use chatbots in their daily
operations. Ex- users and potential users as well.

2. Targeting

The main type of customers would be the pre-existing customers or the customers that the
companies we are tied up with already have. This is due to the reason that users are more
likely to download an app in order to continue using various services that they already use.
Our company also intends to appeal to a young group aged 18-28 years of age as majority of
millennials have high engagement with an average of 9 apps per day. Thus, they would be
interested to interact with a chatbot from various apps that they use on one single app.
3. Positioning

Positioning is a tried-and-true marketing tactic that allows firms to influence their target
audience’s perceptions of a product or service. We will use users to drive our service. This
doesn’t mean implementing every feature request; it simply means listening, asking why, a
lot and getting to the real pain point. This is done by grouping feedback from social, support,
and app reviews into topics to make it much more manageable. App reviews are really
important to the success of our app for a number of reasons.
 BUSINESS PLAN II

EXECUTIVE SUMMARY
The India consumer electronic estimate was worth USD 32.5 billion of every 2016 and is
required to become further over the figure time frame. India gives an overall chance to
short to medium-term development in customer hardware spending. Insignificant
infiltration rates, as against other up and coming markets, depict a superior prospect to
pitch to first-time purchasing family units, alongside substitution gadgets to the white
middle class.
“TYT” has been produced to solve our everyday problem. There are a lot of people who
face the problem of not being able to find the key ring at home and they are in hurry to
go out for meeting, work, etc. So our company came up with the new idea to solve this
problem. This product is known as “TYT” in which there will be the microchip and the
mini-microphone in its. The “TYT” will link with the application in smartphone so that
we can find our key ring whenever we are not finding its. The mini-microphone also help
to find the key ring for example if the GPS on the application show the location but still
you cannot find the key ring. The mini-microphone will help you to find it’s by speak
through the application and your voice will be come out from the key ring. Also we will
add the small features to our products like water resistance, shockproof, etc.

Feasibility of the project:

During the feasibility stage of product development, a company needs to gather
information and perform analysis to assess the feasibility or develop the business case for
a new product. The fact that investment in product development and the cost of design
changes increase rapidly after the feasibility stage emphasizes the importance of doing
your homework well at the feasibility stage
“TYT” has been produced to solve our everyday problem. There are a lot of people who
face the problem of not being able to find the key ring at home and they are in hurry to
go out for meeting, work, etc. So our company came up with the new idea to solve this
problem. This product is known as “TYT” in which there will be the microchip and the
mini-microphone in its. The “TYT” will link with the application in smartphone so that
 we can find our key ring whenever we are not finding its. The mini-microphone also help
to find the key ring for example if the GPS on the application show the location but still
you cannot find the key ring. The mini-microphone will help you to find it’s by speak
through the application and your voice will be come out from the key ring. Also we will
add the small features to our products like water resistance, shockproof, etc.
Also our product can be used in many way it can be use with other thing like handbag,
wallet, keyring, etc. The product will be manufacture in the colorful way. It will be in the
advance fashion style and also useful.
Thus, there will be a lot of chance that our product will be earn a lot of attention from
the customer. As the” TYT” can be suit with any age of the customer. Even the feature is
useful especially for children who have most chance to lose their key ring or things.

TECHNOLOGY
TYT uses a bluetooth technology to connect to keys, other stuff lying around, with the
TYT app on your phone. To make sure that the TYT responds one needs to make sure of
the following things:
A) Bluetooth is on all the time

B) Location service is on

C) TYT app is open and running in the background

TYT are Bluetooth trackers and also use GPS technology. Your tracked item
communicate with the TYT app on your phone using a Bluetooth connection.
TYT is using an advance technology known as “Crowd Locate”. Crowd Locate is an
automatic finding feature built into the TYT app that expands the number of people who
can help you find what’s lost when your item is outside of Bluetooth range. Crowd
Locate helps users find over 2 million items every day.
Each TYT bravo comes with a metal keyring and a small double-sided adhesive that can
be used to put your TYTs onto items with smooth surfaces such as TV remotes. The
keyring and the adhesive are included in the folded instruction booklet in each TYT
package. Likewise, each TYT pixel includes a nylon key loop and a double-sided
adhesive
to be used for attaching your TYT to your item.
 COMPETITION
Currently now there is no TYT are manufacturing in India but there are many foreigner
products like Tile, TYT, Lupo, etc. which sell the product online through amazon, etc.
which the product are very expensive as they are imported product. The price is around
Rs3000-5000.
Thus, the company can use this as the advantage and the opportunity for the company.
For sure that if we manufacturing this product in India the price will come around Rs500-
1500 which is around 50% cheaper than Foreigner Company.
Also, the company can coordinate with the other high fashion brand which the market are
very popular right now like Adidas, Nike, Off-White, Bape , Supreme, etc. in order to
promote our product. And also we can manufactures the limited edition of our products
with these brands.

SOURCES OF FUNDS

Approximate Investment

SOURCES AMOUNT
Personal Funding ₹60,00,000
Loan ₹20,00,000
TOTAL INVESTMENT ₹80,00,000

PROPOSED INITIAL INVESTMENT AND BREAKDOWN STRUCTURE

Bank Loans

Banks are a very attractive source for raising finance in the form of loans as their main
functions involve accepting borrowings and giving out loans. The rate of interest in banks
vary
and also the duration of the loan segments the loans into short, medium or long term loans.
Thus, in our venture it will be a useful source as it helps to procure funds and there are no
expectations on the banks behalf apart from timely repayment. Thus, they will not interfere
with the functioning of our business.
Leasing

A lease is an assertion between two gatherings, the "lessor" and the "tenant". The lessor
possesses a capital resource, however permits the resident to utilize it. The resident makes
instalments under the terms of the lease to the lessor, for a predetermined timeframe.
Renting is, in this way, a type of rental. Rented resources have generally been plant and
apparatus, autos and business vehicles, however may likewise be PCs and office gear.
There are two essential types of lease: "Operating Lease" and "Finance leases".
From our ventures point of view it will be useful as it will help us ascertain certain funds
and assets without having to pay the heavy payments associated with them and in return
they would get repayment and an annual interest.
Angel Investors
Business Angel investors are high total assets people who put resources into organizations
with their own particular cash consequently for value. The most helpful Angel investors
are business people who have been effective and wish to offer back to the business from
which they made their prosperity.
Angel investors are typically ready to sit tight more for returns than funding financial
specialists as they by and large put resources into ahead of schedule stage organizations.
Thus, for our venture it will be crucial as it will provide funding as well as expertise and
dedicated personal who can help manage our operations and in return they will be given
rights in the profits and share issue.

Personal funding
For any business personal funding is an integral component. As an entrepreneur is
expected
to fund their own business as it shows confidence in their efforts and also holds no
liability
and thus no risk of repayment to other outsiders is expected.
The two partners would bring in capital from their savings.
Incubators
Incubators are an indirect way to get sources of funds. They help startups with procuring
funds, help them with services, provide support functions, mentorship, resources, etc. A
lot
 of the prestigious B schools today are incubation centers and this encourages a lot of
students to come up with a start up since incubation centers take care of a lot of the
problems.

STP ANALYSIS

The STP Model consists of three steps that help you analyze your offering and the way
you
communicate its benefits and value to specific groups. STP stands for:
Step 1: Segment your market.
Step 2: Target your best customers.
Step 3: Position your offering.

SEGMENTATION
Segmentation is again done on the basis of 4 different factors:
Demographic Segmentation: Under demographic segmentation the following would
consider
A) Middle age: Worker, Business owner

B) Young age: Student, Part timer

Behavioural Segmentation
People who prefer:
A) Quality

B) Service

C) Price

Psychographic Segmentation
People having a mid to high salary
People who like to socialize
This will lead to following:
1. Curb absentmindedness

2. Need for tracking and navigation devices

3. Need for high quality, innovative products

4. Competitive prices

TARGETING
Targeting is divided into mainly two types:
A) Primary: Middle age high incomers who have a busy lifestyle leaving seniors, children or
pets at home, interested in technology and prioritizes ‘Quality’.

B) Secondary: Young Adults between 18-25. Look for a trendy gadget attracted by the hip.

Niche Marketing: Tech savvy men aged from 18-35

 Limited funding

 Healthy growth rate

 Little competitors

 Buyers have little competitive power

The benefits of the above targeting are as follows:

 Ensure profitability

 Can fine-tune product

 In the future: more niches / differentiated marketing

POSITIONING
Different strategies being used in order to position the target customers:
A) Zero - level channel: Direct sales through internet selling

B) One-level channel: Selling through an intermediary such as a retailer

C) Using Selective distribution

D) Event marketing: CSR, Sponsorship

Advertising in following areas:

1) Financial District

2) Popular bar areas

3) Popular shopping areas

Local distribution through -> Chain stores