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Amal Tazi, Kyra Pieters, Christina van Engelen, Peter Barker, Joan Chiang Media economics

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Business model
Introduction Customer segment Value propositions Channels Customer relationships Revenue streams Key resources Key activities Key partners Cost structure

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TakeMeThere App The TakeMeThere App is a route and travel-planning app that brings together different forms of transportation in one-click-purchase packages, tailored to the users personal preferences. A basic use would be as follows: the user, already placed by GPS, enters into the app a destination. Based on previous choices of travel, the app cross-references preferences towards mode of transport, acceptable times on different forms, speed and price in order to produce a list of options to the user. Once the user selects a package, with a one-click-purchase the app buys the various tickets, and then provides a step by step schedule and an all inclusive ticket which is shown on the phone/tablet. Revenue would be taken as commission from the travel companies. Modes of transport: Plane, train, bus, bike, car, taxi, walk, ferry. Idea for preferences to be tracked: Acceptable time spent on a mode of transport (10 hrs might be ok on a plane, not so much for a bus or walking!); price; time taken to travel; comfort/preferred modes of transport; time of travel (rush hour, overnight/day etc.). All these can be taken into account in order to offer the user a list of most preferable options. For example, to travel from Utrecht to London one can go by plane, by car, by bus, by train, by ferry or if you're a little insane, by bike. How one feels about time taken to travel vs. price vs. comfort and all the rest means that the most appropriate options are offered first. (Similar to how Google ranks search results based on previous searches and selections). So, at first the options offered will be different, offering different combinations. As the app learns about the user (via either a preferences quiz or smart learning), the options offered be narrowed and more personalized; no longer offering plane or train or bus it offers different plane journeys (economy vs. first class, easy jet vs. British Airways) if the user is more concerned with speed or comfort than price (although of course this is still taken into consideration).

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Customer segments and relationship

The target market for TakeMeThere are users of public transport and those who use smartphones or devices, and therefore apps. There are five major categories then that act as appropriate market identifiers for TakeMeThere:

International Travellers

City Dwellers

- Those who use public transport


Businessmen and women/Professionals - Those who use smartphones/portable devices, and therefore apps Youths (18 25)

Our market segments concern the overlaps between these identifiers. These are two main groups:

The businessmen and women, or professionals, whom work in cities and/or travel on an international level. And youths, whom are often students at either University/College or the end of High School.

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Each segment has a different need for the app:

The first is interested in international business connections between cities, involving flights as well as local transport. This is the most lucrative part of our target market, as it involves much higher travel costs, and thus higher revenue per journey; however, most business travel is organized in house, rather than outsourced. This means that TakeMeThere should be marketed to businesses themselves, who are encouraged to place TakeMeThere on their company phones and hook the app up to their company accounts. This would allow ease of use for the traveller, as well as administrative control for the company. Special Features may be offered to allow the company greater control in how each individual user may use the app. which could provide an extra revenue stream. The relationship we need to maintain with these customers is a personal one, with perhaps even dedicated personal relationships with key accounts. This may not be the most profitable method of maintaining a customer relationship on paper, but it contributes to an overall sense of good business practice, which is key to keeping customers.

The second segment is more interested in shorter, social journeys, with more concerns over cost than speed or comfort. Appealing to this market is less about control, and focused instead on ease of use. One ticket on screen which can be flashed at bus conductors and train guards alike is both easy and cool to use, which not only perpetuates the products (no socially conscious youth wants to be the only one fumbling with tickets as his or her friends stroll on board with their iPhone or blackberry) but keeps them in use, eventually leaving users wondering how they ever got anywhere without it. Relationships with this segment of customers should be more balanced between automated and community support. This combination allows for any problems that can't be solved by an automated system to be shared among what is a highly sociable and connected segment of the market via internet forums and social media, where more complex problems can be browsed and fixed by both other users and TakeMeThere technicians.

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The final 'customers' to consider are the travel companies themselves. Much like comparison websites and other package services, in exchange for sales commission, TakeMeThere provides better access to these markets, as well as time and cost savings in areas such as ticket distribution and collection. Dedicated personal connections are crucial in maintaining good and useful relationships with these companies, as changes in the services they provide and their prices must be constantly monitored and updated. Importantly, without these companies, the app falls apart, and dedicated personal relationships are also the best at maintaining a happy partnership.

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Value propositions

Newness/ Performance Although TakeMeThere is not an entirely new APP on the market it is an improved version of the already existing one. We found the existing one, GetmeThere app, to be a bit lacking and added new components to it so that it is more useful to users. Our Navigate me app will not only work as a GPS system for people who need to get somewhere but there will be a possibility to buy the tickets for numerous ways of transport with it receiving a barcode that will then be used to check in to the mode of transport. Navigate me could be seen as an improvement of an already existing service/ product performance Customization TakeMeThere will be tailored and customized to fill the required needs of its individual users. So this means that when you have travelled to Amsterdam before and used TakeMeThere it will save that data and when travelling to Amsterdam again will offer the type of transport you used before to Amsterdam. This way it will also be less time consuming for the users if they travel a lot to the same places and just want to get their tickets and time schedules as soon as possible. Customization off the app will give the users a good image of it as it fulfills their travel needs as quickly and smoothly as possible, whilst remember their travel history to improve the use of TakeMeThere the more you use it. Getting the Job done The job will get done by using TakeMeThere quite simply, by getting to your destination without any glitches and having used TakeMeThere throughout the entire travel. This will be easy for users to check up on as well, if they get to where they wanted to be then they can consider the use of the app a success. If not, then it was a failure and the job did not get done. Design The design of TakeMeThere will be simple so as not to confuse the users. If there is a lot of travel information already on the app it is better to keep the design to a minimum as otherwise it will become very chaotic and unsightly.

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Brand/Status To use an app you will need a Smartphone of some kind. Smartphones tend to come with some status now. The blackberry and IPhone are the leading smartphones and are also the most used. They can be quite costly so the fact that you can afford one can affect your status. Price The downloading of the application will be free of charge. It is a free app and anyone with a smartphone, no matter what kind, is welcome to download it. The price of tickets and other travel commodities) will cost more than normal as the app will be used on a commission based. This means that with every ticket sold there will be a small amount of money that goes to us. Cost reduction TakeMeThere will not help in the cost reduction area. The tickets that you buy with the app will be a bit more expensive than if they were bought at the ticket office, quite simply because the ticket sales work on commission. So to a profit off this application you need to get a small percentage of the money being spent, which is on tickets. So in a way, this service will reduce a lot of time if you travel a lot and want to get somewhere, as quickly and efficiently as possible however it will cost a bit more than normally. Risk reduction TakeMeThere is free to download and if a customer is not satisfied with the app he or she can simply stop using it. So is no risk in using the application. Accessibility Applications have been around for some time now and have proved to be extremely popular amongst Smartphone holders. So it is not a completely innovative phenomenon but the travel navigator and option to buy tickets on your Smartphone is completely new so it means that that has become a lot more accessible to users as they can organize their travelling a lot easier now from their telephone.

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Convenience/ Usability The convenience and usability of the TakeMeThere app is very big. It means that users can use their phone to buy tickets for boats, trains, planes and any other form of transportation. Not only that but they can use it as a route planner when walking, cycling or driving themselves. It will be very user friendly and easy to navigate and see what the instructions are.

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Ultimately with the TakeMeThere app we want to create a great customer experience. Seeing that nowadays most people have either a smartphone and/or a tablet, there is a need for our app. This app is meant for those who travel a lot on a daily basis. It does not necessarily have to be that far, the TakeMeThere app provides all possible routes and allows you to purchase your tickets for your train, bus or whatever means of travel you are planning on taking. As it has been mentioned before, this app is for people who already own a smartphone and/or a tablet; these people are constantly looking for new apps. It is safe to say that more than half of them do some traveling with public transport on a daily basis and that is why our app will satisfy their needs. It will be very simple and user friendly. Channels are customer touch points that play an important role in the customer experience. Channels serve several functions, including: Awareness Raising awareness among customers about a companys products and services With the help of the Internet we want to spread awareness about our product. Our app will have its very own website, where everything regarding our application will be explained. From how to download it, to planning your next trip, whether its near or far. In addition, we will also be featuring our app on websites where customers usually go to, in order to download apps for their smartphones or tablets. With the help of the customer reviews and the rating system, consumers will be interested to our app. In order to spread more awareness directly to our target audience, we will be partnering with the Airline companies, busses, trains and taxis in order to advertise our product with their help. As for the airline companies, we will have posters in the travel agent offices and in certain airports. The busses, trains and taxis will have a banner promoting our app. The add will state a couple of simple facts: that its free, user friendly and most importantly, it gets you there. The advertisement will pretty much speak for itself. Eventually we want our target audience to associate our product with any traveling plans they will have in the future. Evaluation Helping customers evaluate a companys Value Proposition The promises our company makes in the value proposition must be met in order to keep the consumers satisfied with our brand and product.

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Purchase Allowing customers to purchase specific products and services Our app will be free, so everyone can download it on his or her smartphones and tablets. With the help of our advertisements, we will spread as much awareness as we possibly can amongst our potential consumers. Purchasing our product will be very simple, consumers must simply log on to our website or on other websites that offers different applications and simply download it for free. Delivery Delivering a Value Proposition to customers Nowadays, almost everyone relies on either their smartphone and/or a tablet for business purposes or simply entertainment. Since our app is user friendly and most importantly practical, it will be a great success. This app is something everyone can use, whether you are planning on traveling a great distance or if you simply want to go home and take the quickest route. We are confident that consumers will be very satisfied with our app and as a result, they will remain loyal customers. After sales providing post-purchase customer support Ultimately we want to provide our customers with a great customer experience and as a result they will remain loyal to our product. We strongly encourage them to give us feedback as to what they think of our app. In addition, we will give them the opportunity to freely express their opinions by filling out customer satisfaction report, which can be found on our website. We are always open to any complaints and/or suggestions our consumers may have about our product.

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Revenue streams
Asset sale The asset sale of TakeMeThere would be tickets sold. This would be the usage sale as well. There will be no subscription fees as you download it once and then use it whenever it is needed.

Licensing This Revenue Stream is generated by giving customers permission to use protected intellectual property in exchange for licensing fees. Licensing allows rights holders to generate revenues from their property without having to manufacture a product or commercialize a service. Licensing is common in the media industry, where content owners retain copyright while selling usage licenses to third parties. Similarly, in technology sectors patent holders grant other companies the right to use a patented technology in return for a license fee.

Brokerage fees This Revenue Stream derives from intermediation services performed on behalf of two or more parties. Credit card providers, for example, earn revenues by taking a percentage of the value of each sales transaction executed between credit card merchants and customers. Brokers and real estate agents earn a commission each time they successfully match a buyer and seller.

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Key resources
Key resources can be physical, financial, intellectual, or human. Key resources can be owned or leased by the company or acquired from key partners. Key resources can be categorized as follows: Physical Our app requires us to have an extensive IT section and a logistics infrastructure. We have technical workers who are constantly working at improving our app. We have employees working on our website as well. In addition, we are working together with travel agencies, bus and train companies as well as with taxi companies, in order to spread awareness. Intellectual Seeing that we will be providing traveling information for the following modes of transport: plane, train, bus, car, taxi and ferry, we consider all of them as our partners. Human We need a tech savvy sales force in order to create and improve our app. In addition, we need loyal consumers who will download our app and spread word of mouth so others will download it as well. Financial Revenue will be taken from the travel companies. Since the entire operation consists of a partnership between our company and the travel agencies, we will come to a fair agreement as to how much will be paid to us for our services. In the end, consumers will not mind paying the extra costs for the tickets because they will be saving a lot of time and effort by simply using our app.

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Key Activities
Application The key activity which the application, TakeMeThere, would be providing directions be it by on foot or the various modes of public transport be it bus, train or airplane, whichever is most feasible and applicable for the particular journey.

The key activity of the application and organization would be able to have enough key partners whom the organization would be working extremely closely with to be able to provide such services and directions to them the consumers of the applications.

The activities of the organization itself would be to keep the application up and running but be able to work on a stand-alone basis, without relying heavily on the services or information from its key partners. This is due to the fact that should a key partners website be unavailable for any reason, for example, the Nederlandse Spoorwegen (or, NS), consumers should still be able to purchase tickets to take the train within the application. Needless to say, the application should continue to link consumers up to train services whether or not the NS website is working or not, unless there is a disruption in train services.

Overall the app should be able to: 1. Recognize current location/time, 2. Identify destination, 3. Cross-reference all transportation methods with time and location and destination, 4. Present them in order of preference Organization Key activities of the organization itself would be to continue promoting the applications services and ease of use to as many transport companies in any particular region. Acquisition of more key partners is also very important since this has to happen continuously.

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It would also need to continuously update the application to be able to Get consumers wherever they want to go in the world, regardless of how. As such this does not limit the partnerships of which the organization should pursue, as one of the applications target audiences would be foreigners or people who are unfamiliar with a place or their destination.

The organization would also need to reinvent itself as a company and its product, to find ways to keep updated and to constantly provide top level service to its consumers. This the organization does by research and development of who uses the application, how often people who have bought it, use it as well as which regions are most popular for users.

Key Partnerships
Application providers As consumers who wish to buy TakeMeThere, often need to purchase it through a middle man, be it the Apple App Store, BlackBerry App World or Android Market, one of the organizations key partners would be the companies that provide applications to our consumers.

With each update of the application done by the organization itself, TakeMeThere would then need to be updated as well on the main server of these application stores where consumers can then easily download the update quickly. As at this point, there is no other way to get around this, the organization simply needs to have good rapport with the application providers.

Transport companies The application itself does not provide the transport services to get consumers to their destinations, the transport companies whom we have partnered with to provide them are, thus, the organization needs to have good rapport, strong communication and to ensure that the transport companies do benefit from the partnership.

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Application users & forum members Last but not least, a key partnership of the organization would be the end-users and consumers of the application. This group of people would be the strongest marketers and advocates of the application through word-of-mouth advertising, ratings and reviews that they can give to TakeMeThere on the relevant application stores. Many do not want to pay for applications which have low ratings and bad reviews or bad service, and as such, what TakeMeThere promises to deliver on the description of the application before purchase, it needs to deliver and do so professionally with an easy to use user interface. Users also do not appreciate applications with many refurbishments and installations or errors, and with each update, it should be a relevant and significant change or be well timed so as to make the trouble of updating worthwhile to the user.

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Cost structure
Expenses Rent/lease Supplies Total Development Webmaster Designer 40.000 40.000 70.000 150.000 800.00 580.00 1380.00


Total Equipment

Computers Software

6000.00 15.000 21.000

Total equipment Marketing Promotion team Posters

20.000 10.000 10.000 40.000

Online advertising Total

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Utilities Electricity Telephone Internet Total Utilities Miscellaneous Expenses Total start up costs Break even point: Sales Commission 10% 1.732.000 173.200 500.00 150.00 80.00 50.00 280.00