LEAN STARTUP MANAGEMENTMGT1022

BUSINESS MODEL PLAN

Startup Name : UDAAN (DRONE FORALL)

Group Members:

S NO REG NO NAME
1 16MIS0419 S.P Lakshmi priya

2 16MIS0084 K. Kavya

3 16BIT0028 Vinay Krishna Teja

4 16MISo458 Sree Charan
5 16BCE0472 Anirudh Varma
Table of contents

Page No

1. Marketing drone technology 3

2. Target market 4

3. Marketing plan strategy 5

4. Revenue model 6

5. Sales model 11

6. Sustainable Competitive Advantage 14

7. Innovation factor 17

8. Avoidance of pitfalls 19

9. Graceful exit 21

10. Operational overview 21

11. Appendix 25

12. Organizational chart 25

13. SWOT analysis 26

14. Competitors 27

15. Startup costs 29

16. Performas 30

17. Risk analysis 31

18. Break even analysis 31

5 Ways of Marketing Drone technology
1. Drones as a tool
The drone can be used as camera that will be able to record from perspectives that used
to require a lot of time, effort, and money.

2. Quick Marketing
Drones can be used for quick marketing pushes. Brochures and flyers can be flown from
place to place.

3. Drones as actors
Many people associate drones with only video recording, but they can do so much more.
Basically, drones are new and intriguing, and some marketers are already capitalizing
on the fact that many people simply like to watch drones fly around. Many have seen
the Amazon Prime Air commercials in which Amazon playfully characterizes delivery
by drone as the future of package delivery.

4. Drones as a platform
Drones can travel almost anywhere, which makes them an ideal advertising platform.
Traditionally, marketing consisted of print ads, TV commercials, billboards, and Internet
ads, but drones provide new opportunities that marketers can take advantage of.

5. Unlimited creativity potential

In addition to the numerous straightforward ways marketers can use drones as a tool,
they can also use the technology’s unlimited potential for creativity. That is, a drone
doesn’t just have to be a character, a billboard, or a camera; it can also be a component
of art.
For example, Intel used 500 drones to power a portion of Lady Gaga’s Super Bowl LI
halftime show. They programmed their drones to sync up and arrange themselves in
various patterns according to the music, and, of course, to display the Intel trademark
across the night sky when they had everyone’s full attention.
Problem Statements
1. Road Accidents
Nearly 5 – 6 lakh road accidents occur in a year in India. Out with which 2 – 3 lakhs
result in deaths. Most of the deaths occur due to delayed help and unavailability of first
aid and medication at the time of accident.

2. Floods
Large number of people are affected due to floods in an area. Around 1.8 million people
were affected in Assam floods and many more which resulted in heavy loss to life and
property. People are left stranded in one place for many days without food and water,
resulting in deaths.

Udaan manufactures drones to provide solutions to the above problem statements.

Solutions
1. Road accidents
Once a road accident is reported to the traffic police, “Udaan” drones are sent to the
accident spot with the first aid kit and medication. Before the ambulance arrives, the
injured will get temporary and timely treatment, due to which his or her life can be saved.

2. Floods
“Udaan” drones can lift upto 500gms. Multiple drones can be sent to people stranded in
areas, with food and water. Providing food and water via drones will help people survive
in the stranded areas until they lifted to some safe place.

Target market
Target market for our drone company comprises of mostly people looking for extensive
photography or surveillance. Most of the youngsters who are interested in buying drones or
quadcopters seem try to get the plastic frame 3d printed. And rest of the market get the complete
ready-made drone.
Target customers
As discussed above drones are now used for various applications in particular surveillance. We in
UDAAN are really trying to focus on some specific target customers.

 In recent years we have seen a huge growth in number of marriages in which drones were
used to shoot the marriage. So we are definitely going to target marriage palaces to sell our
drones.

 army needs to keep an eye on boarder 24x7. And to watch the complete boarder which is
so long is a very difficult task and so we will target army as a potential customer as our
drones can detect any motion on boarder.

 it is very difficult to inspect mining sites as the environment over there is very harsh, so we
will target mine owners as our target customers and we believe this sector has a great
potential for drones and they are not used as such.

 Drones helped in assessing the damage and relief efforts in Nepal after the recent
earthquake. So we can target govt. disaster response department to sell our drones.

 Drones equipped with cameras, and with special stabilisers and gimbals incorporated, can
be used for film making so this has already become a hot target for drone markets.

Marketing plan and strategy

We at UDAAN are planning to sell drones at two levels:

1. Parts

 as we know that youngsters who believe in DIY want to build their drones on their own, so we
have decided to sell parts of drone separately.

In this segment there are some people who want just the frame and others want just the mechanical
stuff (motors, wings etc.) so for that we have decided that we will provide full guaranty for one
year on the mechanical parts. But for the plastic frame we won’t be providing any guaranty or
warranty.

2. Ready to fly
 then for those customers who want completely ready-made drones we have launched a series
of drones which will be delivered to their choice of location with a technician who will assemble
the drone in front of them and train them on how to use the drone and guide them through the
process of flying and landing it. These drones will have 6 months guaranty and 2 years warranty.

Now in this segment we have noticed that some customers may want something customised
according to their use or business. For that we have decided to hire a team which will meet with
them and ask them what kind of application they want to perform with our drone and according to
that our team will decide the mechanical requirements of their drone and only then their order will
be placed. The charges will be increased as per customer requirement. These drones will have one
year of warranty and 2 free services from our side.

REVENUE MODEL:

Feasibility:
After years of prohibiting the public from flying drones, India’s aviation regulator, the Directorate
General of Civil Aviation (DGCA), on Oct. 30, 2017 unveiled draft norms for the usage of aerial
vehicles, thus paving a bright future to drone’s industry in India.Drones, also known as unmanned
aerial vehicles (UAVs) or remotely piloted aircraft system (RPAS), are used in several parts of the
world to monitor crop production and infrastructure, assess damage following natural calamities,
and carry out surveys, commercial photography, aerial mapping, and package delivery.

The government has designed the rules according to the size of the drone being flown.

Classification Size
Nano less than 250gm
Micro 250gm to 2kg
Mini 2kg to 25kg
Small 25kg to 150kg
Large greater than 150kg

The rules will come as a relief for Indian e-commerce companies who can potentially skip the
country’s crowded roads and traffic jams to make timely deliveries. Flipkart has been persuading
the government in this regard since 2015. Amazon, which made its first public drone delivery in
the US this March, filed a patent application in October for certain markers that it will deploy to
facilitate deliveries using drones in India.
In this haste to grab a new age technical marvel there is large void created in market. This void is
an opportunity to be seized. When it comes to UAV’s importing countries India stands at second
comprising a world share of 13.2%. Imports accounts for nearly 83% of drones in usage around
the country. Government norms are indeed a heavy thrust to already booming industry around the
world to enter our land. If we are not fast enough to seize this golden opportunity world leads are
always ready to have their foot hold in India.

India constitutes to nearly $300Million market in drones but major share is constituted to military
use. With new full-fledged regulatory norms in force now commercial drone’s markets is expected
to outburst three folds in just 2 years (UAV’s and Commercial Drones combined). Many African
nations—Kenya, Rwanda, Malawi, and more—have been using the technology to ferry HIV tests,
deliver blood, and even combat poaching. This will also create business offering outside India. We
must evolve new age technologies to compete aggressive China in electronics, hardware and this
seems to be one among most promising sectors.

Cost Advantages:
There were lots of irregularities over the price tags which varies on a larger range. Factors
concerning these variations in price tags are too many:

1. Majority drones are imported with no specified MRP tag in Indian rupees.
2. Illiteracy over drone’s capacities, features, working.
 3. No popular brands to be referred as a benchmark for consumers to weigh against.
4. Scarcity of Dealers, service centers.
It’s hard for any start – up to build a new framework for a system with no face till date. UAV’s
industry is scattered with respect to commercial drones, whereas UAV’s for military purposes, it’s
is fully under government surveillance handed over to DRDO. There were strict rules against
interfering in military UAV’s development, usage of drones in restricted conflict areas.

If these odds are turned over, our start – up will be 75% closer to be a successful one. We had a
clear insight for these odds and how to overcome these step by step. The herculean task still awaits
us how we execute these mere plans on papers as a reality to be shaped. We formulated the below
discussed plans to overturn flaws and print our name on an empty canvas.

1. Imported Drones: A fight with imported items will not be a cake walk as it comprises a
large chain of black market dealings in market. Only way to overcome this hurdle is by
aggressive marketing campaign without providing a chance for market chains to suppress
us prior to creating a brand name in public. After creating a brand name for ourselves we
will have a base to fight later. This is where many start – up’s goes wrong without creating
a base, puts up a fight against competitors. Never start alone unless your idea has no
existing competitors in market. We can use nationalism concept here to fuel our start – up
as well as help our country to get rid of foreign influence to save our own economy. We
can emerge as champions of a change which gives us boost up.

2. Illiteracy on UAV’s: Most of the people see drones as flying objects to have fun.
Educating customers applications of drone’s helps to create a positive vibe around our
brand which worked for FOGG Deodorant. Clearly, mentioning drone specifications and
applications will excite innovators to introduce drones in their business model.
Entertainment, excitement, memories hunters will be fond off to carry one on their
destination planning’s. If this works perfectly we can establish monopoly over the sector
in no time. Once our aggressiveness is lost they will suppress us harder, our start – up may
probably dead. Promote, educate and become the source people go to for the information
and knowledge they need. Advance content from an angle that makes you the industry guru
and trusted thought leader.

3. Branding: Non – existence of a brand is an ultimate opportunity to grab. People generally

are so obsessed to brands, they won’t even try to have look upon us if there exists a brand.
They always drive contrasts with branded material, it is a typical human mindset. If we
publicize our company as a new generation pioneer as there is no established brand so far
this will fetch attention. For any brand to stand longer creation of trust among customers
and publicizing brand name in such a way as if all drones in existence are of our company.
This planned and aggressive marketing of brand name, framing UDAAN as a bench mark
brand for drones further stiffens our hold on this sector.
If you have a great story to tell about how and why you came to be and who you plan to
become, you can identify with your customers and they will reward you for it.
 4. Scarcity of dealers and service centres: For the existing market of drones and UAV’s
there is no organized structure of dealers and service centres. Consumers want more, and
they want it from those businesses that are not afraid to redefine the parameters of success.
Aggressive branding strategies begin and end by defining who you are as a business and
how you want to reflect your values to your core audience. Industry leaders are revered in
business because of one critical thing.
Establishing dealers and service centres builds further trust in people and motivates them
it is secure to buy one for themselves. This component is the very base what we called to
build a framework for this sector which is non – existent. If our marketing strategy goes
wrong here, it will cut down our reach to normal people deep down. We can create new
markets by our own by reaching innovators out there among people to innovate a new
market which can be done keep on exiting their minds with our products and services.

Financials:
Funding is key for any newly seeded invention or start – up to take a form and make its debut into
real market world. Initial stages we need lots of funding for aggressive entry into the sector. We
will find few opportunities here in India which probably is a good sign of a transforming India but
there are no adequate opportunities. Few innovative governments and metropolitan cities are battle
grounds where you need to fight for funds for your start – up. It’s too hard to predict your
probability to get funds among hundreds of starts – up’s fighting for their ideas.

Projections of future in this sector around world helps us to impress angel investors but dealing
with these investors are to be overseen with care and without any legal conflicts.

Market value is key factor for anyone to invest in any firm. With commercial drone market being
valued at $127 Billion. This is obviously an eye feasting figure to endorse. With a projected market
growth at a rate of 40% annually for next 5 years to come accounts for additional cream layers

Two former steps that are to be done for our business plans to acquire capital to start our market
proceedings are:

1. Open your own wallet first: Tap into savings, home equity, or retirement accounts. It's risky,
but don't expect others to invest in your startup if you haven't put some of your own money in.
Knowledgeable investors want to see founders show confidence with cash. They favor
entrepreneurs with more than "just" sweat equity in the game.

2. Sign up strategic partners early on: There's nothing sweeter than finding a supplier,
distributor, or especially a customer who stands to gain so much from your solution that they are
willing and able to help foot the bill. Your firm ambition is visible with the kind of partners you
wish to have by your side. This will create an aura when you approach for investments in your
company by eager angel investor firm or an MNC to provide with technology and funding a key
factor for a greater debut in market like Krazybee, just dial, Snap deal, etc.

If we meet above two criteria’s it will be easy to attract investors for our firms. After making a
debut and beginning to acquire trust among people, creates a new door of opportunity to enter into
defence market which is generally 3 folds bigger than civilian drone market. This defence market
mostly clinging in government owned firms and lagging diversity in its sphere of applications
especially in our country as well as most of developing and under developed economies. If we can
establish ourselves as a pioneer in civilian market doors automatically opens doors for a strategic
and key defence market. This makes our startup to contribute for national security as well as our
own growth. It will mark a new way of thinking in startups culture which start seeing their
opportunities that contribute to national growth.
SALES MODEL

Introduction

A Drone or Quadcopter is a Vehicle which have a large potential of performing tasks that
are ambitious to the humans. They are used in many applications such as inspection of high
structures, humanitarian purposes or search and rescue missions. A specific type of Drone called
Quadcopter is becoming quite popular due to its vast advantages. Some of the advantages of these
Quadcopter are surveillance in military, civilian and disaster management. The Quadcopter can be
picked based on the application needed like a remote-control drone for sale with a camera, a
beginner quadcopter to learn with, a more professional drone for aerial photography, or even an
FPV (first Person View) racer, you’ll find the full spectrum of RC drones.

The above graph indicates the sales of consumer drones to dealers in the U.S. from 2013 to
2017(in million U.S. dollars). The graph indicates the purpose of drones in future. This document
presents our research on some of the main sales models and sustainable competitive advantages of
Quadcopter.

START-UPS:

The sales of drone start by building a small start-up company by name ‘Udaan – Drones for
Everyone’. The start-up will have moto of production of drones and reconstruct the troubled ones.
The company offers various sales of applications of Quadcopters such as

1. Aerial Photography:

Quadcopter drones are highly useful for photography applications which includes Film-
Making, Special events, Real Estate, Agricultural and Journalism. These applications of
corresponding models can be sold out fastly.

The money can be earned through by selling Aerial Photos and Footage.

The ultra 4K HD videos can be equipped to the drone which are suitable for both
outdoor and indoor footage.

2. Package Delivery:

The Amazon company purpose is to deliver the packages which are choosed by the
customer. As humans are changing their perspective regarding online shopping, Drones are
helpful to deliver the packages. Some of the other companies like Amazon and Australian
Post are investing in Drone Research. This type of application model has yet to come.
These deliveries are quick and safe as well.

Delivery charges can be earned through by delivering Packages to the destination.

3. Surveying and Mapping:

Quadcopter provide companies with property boundaries, digital elevations and

surveying construction sites for placement of buildings. The drones will be useful for civil
engineers for citation purposes.

Quadcopters are very useful to identify the boundaries of the remote areas and hill
stations where humans can’t decide it by own with accuracy.

A start-up Company only with Aerial Surveying can be introduced where money
can be earned through surveying the land.

4. Aerial Advertising:
 Now-a-days, the advertising is helpful by displaying banners. These banners can be
displayed by using drones aerially. This will be helpful for grand and big events like
Olympics, Opening Ceremonies of sports events.

Money can be earned based on the brand of the advertising poster displayed.
Better these drones are displayed at famous places and buildings such that they are
branding it well to more people.

5. Commercial Inspection Services:

The large bodies like cell towers, Tv Towers, Wind Turbines, Pipe lines, Bridges and
Power lines can be inspected using these quadcopters. Some of the drones which are
working for these application models are existing, but they didn’t have accuracy in them.
Quadcopters provides 4K camera which can make HD videos and photos. Quadcopters are
helpful to find the fulfil this application model objective.

It is the application model which can be a profitable business. Many professional

surveillances in many countries earning a lot of money through it.

6. Residential Home Inspections:

The siding, chimneys, check roofs and other structures of the house can be inspected by
the quadcopters. These Quadcopters can have only good camera quality and small
applications. These type of application models are also existing which can also have done
by other drones other than quadcopters.

These can be sold to may large buildings for maintenance purposes. A new start
up can be developed which produces large quantity of it.

7. Military Inspections:

The drones are mainly useful for the defence and security purposes of the country. With
latest technology development in the quadcopters, these are highly helpful for tracking the
elements which are threatful to them.

These can be sold to many nations for security purposes and other issues. This will
be helpful for producing large number of drones for a start-up and which leads to
more profit.

8. Emergency Cases:
 The quadcopters are highly helpful for the government authorities to help people by
providing them food and medical kits during atmospheric changes like floods, earth
quakes. Quadcopters, which uses latest technology can be sent to the exact location and
capture the situation of the people in emergency cases and send it to the rescuers.

The drone operators are often employed for disaster relief to provide services. The
freelance UAV pilots are well-paid for this job. A new Start-up can be turned up by
taking UAV pilots into jobs.

9. Agricultural Surveys:

Quadcopters are very useful to agricultural department by surveying crops from the air
with and inexpensive unmanned aerial vehicle equipped with a variety of sensors which
provides a farmer to collect various types of data regarding the soil hydration, variations in
soil composition and Pest/fungal infestations. These operations can help farmers reduce
plant damages, cut costs, and have the higher yield.

10. Reselling Drones:

The other business idea which can help to make money is Reselling Drones. One should
purchase the popular new models at one price, and lately sell the, at higher price to your
customers. During Initial stage, it requires lot of investment and fees to open and maintain
your store.

By the above objectives for helping various people with various applications, Quadcopters
are come forefront so that there will be held with growth in business and economy of the
start-up companies.