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 negotiate with sticker manufacturer. Going forward, she will support overall operation and solve problems with entire managerial team.
Gugu Chen is Marketing and Sales Director of Mobile QR Corporate. She is a very proactive and creative person, and so her personality is absolutely beneficial to this position. She used to work in movie industry as a marketing person. Going forward, she will be in charge of all the promotion execution and expand market share by visiting small businesses. As Gugu is the implementer, and so her feedbacks and suggestions will be highly accounted and appreciated.
Michael Hsiao is IT Director of Mobile QR Corporate. He provides the core competitiveness to the product, and has higher extent of irreplaceability in Mobile QR Corporate. He is a newly graduated master who majors in Electronic and Engineering (EE) from National TsingHua University (NTHU). Being highly interested in programming, he self-studies and specializes in many computer languages. Michael will design and develop all the platforms that Mobile QR Corporate need, and add additional features based on company’s strategy in the future. However, Michael is not a full-time employee to Mobile QR Corporate. He has his own work in Asus during weekday.