4. Market Analysis
4.2. Market Prospect
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4.2. Market Prospect
QR Sticker market is perspective and potential based on various market research conducted.
We did both survey research and focus groups. There are 240 respondents to survey research and 3 focus groups involved in the market research. For each QR Sticker product, it all shows very high percentage of positive sign, the least one is 52% while the highest one is 89%.
Examples of these good signs are: being interested in, considering it as convenient/beneficial, willing to purchase, etc.
On top of the market research, we estimate the potential volume based on some real statistics.
Wedding Card QR Sticker
Mobile QR Corporate estimate, in the future, 1 out of 20 would incorporate Wedding Card QR Stickers to their wedding package. There are 147,636 couples get married in 2013. With 9.2% of couples will get married in the marriage event venue (王嵩容，2003), it is about 14,763 couples would invite friends and family to join their wedding. By calculation, there will be around 3,000 couples every year will purchase Wedding Card QR Sticker.
Postcard QR Sticker
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passengers travel via TaoYuan National Airport. By calculation, there will be around 32,000 travelers every year would buy postcard QR Sticker.To-Go Order QR Sticker
Mobile QR Corporate estimate, in the future, 1 out of 200 would be interested in purchasing To-Go Order QR Sticker. Based on Career Magazine, there are 10,000 breakfast stores in Taiwan. There are 12,100 beverage shops in Taiwan, per Ministry of Finance. By calculation, there will be around 110 breakfast stores using this QR Sticker. To us, in addition to beverage shops and breakfast stores, other small-business food stores, such as lunchbox vendor, are also our target customers in the future. Thus, it would be much more than 110 per our estimation.
Business Card QR Sticker
Salesmen are the most potential final users of Business Card QR Stickers. Mobile QR Corporate estimate that 1 out of 100 will purchase our QR Stickers. Based on calculation, we foresee the future amount will be huge, approximately 20,000 (See below).
i. In Taiwan, there are 842,000 people working in financial, real estate, and insurance industry (Ministry of Economic Affairs, 2014). These 3 industries usually have a high percentage of salesmen, approximately 70%. This is about 589,400 salesmen in those 3 industries.
ii. There are 1,331,182 small-and-medium enterprises in Taiwan (Ministry of Economic Affairs, 2013). Assuming there is at least 1 salesman in one small-and-medium enterprise, it sums up 13,311,182 salesmen in small-and-medium enterprises.
iii. Combining all above, it is about a total of 1,920,582 salesmen in Taiwan.
Overall, both survey research and focus groups have very high percentage in willingness to purchase. But in terms of price, focus groups generally are willing to spend higher price in each QR Sticker product, and this result is consistent in three focus groups. Survey research
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insightful information, which illustrates the reasons behind the decisions. Below are market research results.Market Research Summary
Wedding Card QR Code
1. Wedding Participation QR Sticker: Do people think it convenient if they receive a wedding card with the QR code?
Survey Research: 90% thinks it is convenient to register the participation via QR Sticker
Focus Group: 74% is willing to spend NT$4 or NT$5 on a Wedding Participation QR Sticker
3. Wedding Photo Share QR Sticker: Do people think it convenient?
Survey Research: 75% like it and think it is useful because they would not forget to request photos to see.
Focus Group: 75% like it and think it is useful because they would not forget to request photos to see.
4. Wedding Photo Share QR Sticker: How much are people willing to spend on each QR Sticker?
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Survey Research: 67% is willing to spend more than NT$2 for a Wedding Photo Share QR Sticker
Focus Group: 69% is willing to spend NT$4 or NT$5 for a Wedding Photo Share QR Sticker
Photo Share QR Sticker on Postcards
5. How much are people willing to spend on each Photo Share QR Sticker on a postcard?
Survey Research: 52% is willing to spend more than NT$5 for a Photo Share QR Sticker on a postcard
Focus Group: 68% is willing to spend more than NT$10 or NT15 for a Photo Share QR Sticker on a postcard
6. Do people feel happier when they receive a postcard with a QR code that can see a photo?
Survey Research: 52% think they feel happier when receive a postcard with a Photo Share QR Sticker
Focus Group: 53% think they feel happier when receive a postcard with a Photo Share QR Sticker
Business Card QR Sticker
7. Business Card QR Sticker: How much are people willing to spend on each Business Card QR Sticker?
Survey Research: 66% is willing to spend more than NT$0.3 for a Business Card QR Sticker
Focus Group: 75% is willing to spend more than NT$0.5 for a Business Card QR Sticker
8. Do people think it is beneficial that they can see all the subject matters of their house agent?
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Focus Group: 88% think it is beneficial in finding a house if agent has such kind of QR Sticker
To-Go Order QR Sticker
9. Do people think it is convenient that they can order breakfast/beverage through a QR code?
Survey Research: 89% think it is convenient
Focus Group: 88% think it is convenient
10. How much are people willing to spend on a order QR Sticker if they are running a small business like breakfast/beverage shop?
Survey Research: 67% is willing to spend more than NT$0.5 on an Order QR Sticker
Focus Group: 75% is willing to spend NT$0.5 or NT$0.7 an Order QR Sticker 4.3. Key Customers
In order to boost the sales and expand the market fast, Mobile QR Corporate aims at business to business, known as B2B business model. It is more efficient to expand the market share in the B2B model. To Mobile QR Corporate, we promote QR Stickers to agents, factories, retailers, and small businesses. They will apply QR Stickers to their existing products and services, and in turn create more values to customers. To Mobile QR Corporate, the key customers, at the same time, are regarded as our marketing channels and key partners.
Wedding Card QR Sticker: Our key partners of Wedding Card QR Stickers will be those who have lots connection with our target final users, new couples. By intuition, wedding coordination companies are our best key customers. 65% of new couples will find a wedding coordination company. Thus, they have better persuasive ability in that occasion.
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The second main customers for Wedding Card QR Sticker is wedding card store, usually is a regular copy shop. As compared to other traditional cards, QR Sticker could definitely increase the competitive edge of a regular copy shop. Another key customer is hotels that take wedding events. Many hotel event departments nowadays provide professional services and are trusty to new couples.
In terms of final user analysis, based on the market research, we noticed that age of 18-24, 35-45, and 45 above are more interested in Wedding QR Stickers. Also, 78% of salesmen are willing to use this product, which is higher than the average of 67%.
Business Card QR Sticker: The key customer for this QR Sticker is regular copy shops that produce business cards for companies. They can easily promote QR Sticker to their existing products. QR Stickers differentiate the products from regular business card. Those sold with QR Stickers can be considered as higher price-level product package in the shop. Another key customer group is those public relation companies that usually coordinate a lot of exhibitions.
These companies not only have lots of contacts with salesmen, but also catch a perfect timing to promote QR Stickers. Obviously, all salesmen will need to give away thousands of business cards during exhibitions.
The final users of Business Card QR Stickers are the general public. Considering the functions, salesmen are our target customers among all occupations. Also, organizations that often host conferences and seminars are highly potential customers as well. Based on the market research, averagely 75% of general public are interested in purchasing this.
Photo Share QR Sticker: Travel agencies, airport shops, and airlines are the key customers when it comes to Postcard QR Sticker. It is obviously that those companies/stores have a great chance to do business with travelers before or during a trip. From this sense, travelers are easily appealed by the related products and so can increase the purchase intention. In terms of final user, there is no segment that shows particularly low or high interest, the average is 52%
in survey research, 68% in focus groups.
To-Go Order QR Sticker: Small shops, especially in food industry, are our key customers for To-Go Order QR Stickers. For example, beverage shops, breakfast shops, lunch box stores,
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etc. are all our target customers. Unlike other types of QR Stickers that go through agencies to expand the market, Mobile QR Corporate will explore the market on its own for To-Go Menu QR Stickers specifically. Mobile QR Corporate have salesman and will visit those potential customers and introduce QR Stickers to them.
4.4. Competitors
Traditional QR code
Traditional QR codes have lots in common with QR Stickers, mainly, a tool to connect virtual and physical (offline-to-online). Whatever products that apply QR code, he/she can quickly link to a website that the commercial wants you to go. Many people already print a QR code on their business cards that link to a Facebook page. This has similar function as Business Card QR Stickers provide.
Based on Market Intelligence & Consulting Institute (IMC), Facebook is the NO.1 social media in Taiwan per usage frequency. A lot of things are done on social media nowadays.
Facebook is considered as our competitor to “Photo Share QR Sticker” and “Wedding Card QR Sticker.” For example, new couple would create a ‘Facebook Event’ in order to collect the participants for a wedding. Or, people share photos of wedding and traveling on Facebook.
Google Document
Google Document allows people create a quick survey to distribute to their friends collecting requested information, for example, a wedding participation survey. Especially, the survey is more detailed and thorough than a social media service, e.g. Facebook Event. It can not only
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calculate the total participants but also query other details, e.g. food preference (regular or vegetarian).
Google Map’s service to QR Code
Google provides a “free website” to each business that marked on the Google Map. Everyone can leave a message and review the evaluation in order to popularize the places. This service magnifies traditional QR codes usage. This service, so far, only limits to America. Yet, it is a potential competitor if such service starts in Taiwan.
In summary, there are many similar products to QR Stickers and most of them are even free.
Why QR Stickers? It is because QR Sticker is an offline-to-online bridge and at the same time provides incredible mobility that nothing else can transcend. Details are referred to value propositions above.
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As mentioned earlier, partnership is one of successful factors to Mobile QR Corporate. We are B2B business model, and all of the business customers are considered as our very essential and critical partners. These include airlines, travel agencies, airport shops, wedding coordination companies, and small businesses such as breakfast or beverage shops. Unlike most of cases, transaction is the only thing between buyer and seller, and no further relationship in between. Instead, Mobile QR Corporate discuss and propose promotion strategy with key partners. Win-Win situation is the principle to Mobile QR Corporate.
Regularly meeting with our business customers to proactively understand their needs are essential. For example, it could be offering flexible delivery per their needs or adjust the product content to meet their special needs. We provide customized services to different business customers. QR Stickers are new products in the market, and so it is also our responsibility to educate our partners about the key features of each QR Sticker product and the difference between those competitors.
In addition to above, another very important partner is sticker manufacturer. Mobile QR Corporate outsource the production to sticker manufacturer.
5.2. Pricing Strategy
Each QR Sticker has its own unit price. In addition unit price, there is another price for
“DEPOSIT”. It is because QR Stickers have expiration date. In order to continue the service, he/she needs to pay another amount to extend the expiration.
For QR Sticker’s unit price, Mobile QR Sticker applies discrimination pricing strategy. That is, for similar products/services, QR Stickers are charged differently. Although 4 types of QR Stickers have similar concept, based on the various attributes of final users, the maximum prices they are willing to pay are different.
For example, people often haggle over every once when they are doing business; they want every penny spent worthwhile. On the other hand, to entertainment consumption, as long as the absolute price is not too high, people usually are more willing to spend. Or when people
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leisure travelers are often willing spend money with little incentive. It seems that one penny is one penny in business occasion, while one cent is only a penny in the entertainment consumption.Survey research and focus groups demonstrate a bit different in pricing willing to pay, survey research is willing to pay less than the focus groups. But focus groups provide explanation and insights behind their decisions, which is often used to evaluate and develop the market and for new product launch. Although survey research indicates a lower price in willingness to purchase, yet, it shows a very high percentage of being interested in all types of QR Stickers. Considering all above, the management team decided to price QR Stickers based on the result of focus groups. Price details of each QR Sticker are illustrated below:
Wedding Card QR Sticker: In the wedding card market, the average price is NT$65, which is more than double of a regular card. Apparently, new couples are willing to pay more for a card. Based on the focus groups result, it indicates that 74% of people are willing to spend NT$4 or NT$5 for a QR Sticker. Thus, Mobile QR Corporate charge NT$4.5 for one Wedding Card QR Sticker, for both participant registration and wedding photo sharing.
The expiration period is 45 days. In order to extend the expiration, every 100 QR Stickers charge NT$50 in order to extend another 45 days. Other than pay the annual fee, there is a lump sum charge for no-expiration usage. It will be NT$5 per QR Sticker.
Business Card QR Sticker: As pointed out earlier, businessman haggle over every once. For Business Card QR Sticker, Mobile QR Corporate apply bulk-cheap strategy, which is small profit margin but acquiring more sales quantity. Per this concept, the charge is NT$0.5. The unit price is much cheaper than Wedding Card QR Sticker (NT$4.5/each).
The expiration period is 1 year. In order to extend the expiration, every 100 QR Stickers charge NT$50 in order to extend another 1 year. Other than pay the annual fee, there is a lump sum charge for no-expiration usage. It will be NT$0.7 per QR Sticker.
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Photo Share QR Sticker: Mobile QR Corporate have 2 ways of charge for Photo Share QR Stickers, one is “flat-rate fee”, and the other is “per-transaction fee”.
Flat-Rate Fee
Flat-rate fee will be applied to airline companies. That means, Mobile QR Corporate will charge Airline companies the same amount of money with unlimited supply of QR Stickers.
Airlines surely are big customers to Mobile QR Corporate and can generate continuous stable volume considering its scale. With flat-rate charge, airlines can easily plan the cost into budget. On the other hand, Mobile QR Corporate can generate stable cash flow and reduce operation costs.
Per-transaction Fee
Customers other than airlines, Mobile QR Corporate charge NT$15 each, which is the highest among all types of QR Stickers. This is because NT$15 is a tiny portion as compared to entire travel expense, and people are usually more generous of buying souvenirs to friends/family during traveling.
The expiration period is 2.5 months. In order to extend the expiration, every QR Stickers charge another NT$5 in order to extend another 2.5 months. Other than pay the annual fee, there is a lump sum charge for no-expiration usage. It will be NT$20 per QR Sticker.
To-Go Order QR Sticker: This QR Sticker actually is another type of Business Card QR Sticker that offers different function. But this QR Sticker requires a more complex IT support.
Also, based on the market research, general public indicates strong interest in using the QR code to make an order (89%). Mobile QR Corporate believe it is a potential niche to develop, and will charges NT$0.7 for each QR Sticker. There is no expiration date to this QR Sticker.
5.3. Sales and Promotion Strategy
QR Stickers are new to the market. People generally have no ideas about the functions or how to use it. Thus, in order to get exposed to the public, Mobile QR Corporate will provide free trials. Among our launched products, Business Card QR Stickers and Photo Share QR Sticker
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are generally applicable to everyone. Thus, these will be our free trial samples. Chinese Valentine’s Day will be one of great opportunity for our promotion. In this scenario, Photo Share QR Sticker can be pasted on the flowers or love card. A surprise photo or video can be seen by his/her lover immediately upon receipt. In addition, summer vacation is planned as another promotion event. Such trial event will be ongoing during the first year of our ramp up.
However, all the QR Stickers given away during promotion events do have short period of validity. People can make a deposit in order to extend the expiration.
Other than free trial, bundle sales such as Photo Share QR Sticker with postcard sold in National Palace Museum, will be released from time to time. There are couples of famous tourist spots now attract a lot of Chinese visitors. Where there is postcard, we will cooperate with them to promote bundle products.
Lastly, we will join exhibitions to get exposure and offer sales promotion. For example, Travel Exhibition is a great occasion for Photo Share QR Stickers. Stationary Exhibition is good for Business Card QR Stickers.
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As a small start-up, we will form a flat organization. Carol Chen owns the majority shares and owns the company, but run the business with family members, Gugu Chen, Michael Hsiao.
Three persons are in charge of all necessary positions of Mobile QR Corporate.
6.2. Management Team
Carol Chen is the key person of Mobile QR Corporate and will take on the role of CEO. She puts together the initial start-up plans, including direction, strategies, cost structure and revenue stream to Mobile QR Corporate. She is also responsible of vendor sourcing: to
Carol Chen is the key person of Mobile QR Corporate and will take on the role of CEO. She puts together the initial start-up plans, including direction, strategies, cost structure and revenue stream to Mobile QR Corporate. She is also responsible of vendor sourcing: to