Finance and Marketability

Finance and Marketability

The concept is mainly based on location-based services which makes it context aware services which basically uses and adapts the user’s current location. Since GPS based services are being used on a daily basis such as for travel, weather, housing, etc. (Marketingfacts, 2008) our idea to incorporate pricing and services offered by different fuel stations an extension to the current navigation service that’s being used. In the world of cloud computing we wish to offer the service to be used with respect to the existing navigation devices in cars such as Android Auto and Apple Carplay which enriches the user experience. Moving on to the revenue streams , Even though there are a lot of revenue models that are being used, “Freemium” revenue streams opt best for our app service. Freemium is a business model, whereby basic services are provided free of charge while more advanced features must be paid for, is its general definition however we make basic altercations to the existing model which is apps with advertisements are free and the apps without advertisement to be paid. Also people with paid apps are entitled to regular updates and latest bug fixes more so than people using the free app.

Factors for the Use of Freemium:

Several factors contribute to the appeal of a freemium strategy. Because free features are a potent marketing tool, the model allows a new venture to scale up and attract a user base without expending resources on costly ad campaigns or a traditional sales force. The monthly subscription fees typically charged are proving to be a more sustainable source of revenue than the advertising model prevalent among online firms in the early 2000s. Social networks are powerful drivers: Many services offer incentives for referring friends (which is more appealing when the product is free). And freemium is more successful than 30-day free trials or other limited-term offers, because customers have become wary of cumbersome cancellation processes and find indefinite free access more compelling. (Harvard Business Review)

So How Do We Make Money?

The application which is freely provided has advertisements which are self-sourced by the developers or can be done through an ad provider. In this revenue stream the developer is paid per impression or the ad that is displayed in the app. The advantages are it is easier to tally up the views rather than pay per click and also the ads are easier to set up.

The target group of users are both male and female who drive cars regularly, from our market analysis and interview results we were able to gather that users who don’t drive a company leased car (in their case the company pays for the fuel so they don’t take a diversion to opt for cheaper fuels however they would use the app for services they find in the station) are not exactly in our target group. The app appeals to the middle class economy who wish to save money on fuel expenses added to this we also found out that 63% of user don’t mind in taking a retour if they save money which works in our favor. The demographic which we aim at is also youngster’s preferable college and job goers who use cars on a regular basis and at the same time keep track on the money they spend on fuel.