Business Plan for application for accelerator program -

Name - UrbanHunt

Problem -

Today a brand interacts with a user across multiple touch-points in order to gain her attention and
improve brand recall. With the advent of mobile technology, in a consumer-driven competitive
market it has become necessary more than ever to keep the track of customer pulse and keep them
engaged with the brand in a personalized manner. Some of the typical pain-points -

- There is no foolproof method to collect real-time consumer insights and feedback about the
changes and trends in shopping behavior, product reviews and to quantify and track customer
engagement.
- In a crowded and competitive market where the customer acquisitions costs are typically high, the
success of a brand primarily boils down to the customer loyalty. Legacy loyalty programs do not
help as they take into account only the purchase activity of the user and due to the low redemption
rates (and low frequency of purchase) seldom translate into sustained user loyalty.
- Traditional ad-hoc means of marketing have proved to be inadequate and a strong social media
presence is a must. While some brands do employ social media marketing and advertising
techniques, this strategy is far less effective unless it is personalized.

Solution -

UrbanHunt is a gamified, micro-reward based engagement platform where brands can run
incentivized campaigns to unlock consumer insights and drive peer-powered marketing. Broadly it
includes:

Real-Time Insights and Feedback -

- connecting with your customers to obtain insights and feedback through mini-surveys /research
polls/sampling.

- engaging customers/users by involving them in product co-creation and running interactive

campaigns (such as Try & Buy, Product Launch Invites etc).

Proximity Marketing -

- Reaching out to the customer at right time and right place. ( Eg.- Sending customized push
notifications about your brand's products / offers when he is about to enter Big Bazaar / Hypercity )

People-Powered Marketing ( the new word-of-mouth marketing )-

- rewarding engaged micro-influencers and fans to create and/or distribute relevant content (photo,
video, tweets) on social media channels to fuel organic reach.
Data-Driven Decisions -

- taking powerful marketing decisions based on detailed analytics about shopper journey, profiles
and other metrics
- Measure ROI of each marketing campaign (TV, Offline, Social ) at scale

Market Size -

The loyalty program market size in retail is estimated to be about Rs. 4000 Crores. Technically , 8
/10 retailers have some kind of rewards system in place and out of which 5-6 of the rewards systems
are broken and not giving them the expected returns. Considering this, atleast 50% of the existing
retail market is the total addressable market.
In FMCG, we are targeting brands having high customer involvement like personal care brands,
food brands etc. We are also targeting Lifestyle and F&B brands. A lot of focus is also on emerging
brands in each of these sectors.

Regarding the Consumer side -

With nearly 60% of the users spend more than 30 mins on browsing social media sites on their
smartphones daily. 7/10 consumers are part of atleast one of the legacy-loyalty programs which
presents a huge opportunity to tap in.

Competition -
Customer Insights platform - Smart Saver
Customer rewards platforms: Bounty, MagicPin, Crown-it, Ladoo installs
Influencer marketing platforms: GetEvangelized, Adfluenz

Uniqueness -

Although there are above-mentioned platforms that are focused on customer rewards and loyalty,
UrbanHunt differentiates itself by positioning as a data-driven customer engagement and insights
platform. By connecting people-powered marketing with the engagement, UrbanHunt offers a
comprehensive suit to the brands for identifying and converting engaged customers into brand
advocates.

We feel that deals and discounts something that would help brands only in the short run. In the long
run it is the engagement and consistent experience given to the consumer that matters and we help
them deliver that through insights and feedback. Regarding peer-powered marketing , we are
basically digitizing the super powerful word-of-mouth marketing and driving growth for the brands.

Current Stage and Roadmap -

We have the mockup prototypes for both the android app (for consumers ) and brand portal (on
Web ) for brands ready. We are currently in the product development stage and hope to realise the
MVP by end of January. We will run beta for around 45 days and by then launch the final version to
public.

Brands onboarding-
We are also in talks with several brands in F&B, Lifestyle and CPG segments. We are primarily
targeting emerging brands in the initial days. Having said that we also aim to have atleast a couple
of omni-present brands like Levi's, CCD etc for the launch. Our target is to have 6-7 emerging
brands like Hokey Pokey (ice creams) and couple of established brands before the launch.

Pre-launch Buzz -
We will be working on our own social media strategies to create the initial buzz and downloads. We
will also be deploying a referral system for creating organic growth in the initial days.

Current Clients -

Currently we are in product development stage and also onboarding brands in parallel. We have
already signed up couple of emerging brands both in F&B and in Lifestyle segment. Also we are in
advanced talks with several other brands.
Our pricing model is based on pay per active consumer for brands and would be offering the
freemium for the first two months and later would be charging them anywhere between 5-10 % of
the total rewards given to consumer.

Clients -
■ Food & Beverage: This includes high-frequency QSRs such as McDonalds, Dominos Pizza, etc
and coffee and ice cream brand outlets such as CCD, Baskin & Robbins, etc
■ Fashion & Lifestyle: This includes apparel, footwear and accessories brands such as Levis,
Woodland, FabIndia, etc
■ CPG & FMCG: This includes high-engagement products of FMCG brands (Nestle Maggi,
Cadbury Dairy Milk, Ponds Fairness Cream etc)
■ Entertainment Centers: This includes multiplex theatres, shopping centers, and sports complex.

Consumers -
The target consumers are the in age group of 18-35. We are piloting the product in Mumbai and
would later expand it to various metros.

Monetisation Plan -

Currently we are operating on Pay-as-you-go basis where we charge the brands only on the
converted sales going through our channel. As the platform grows and evolves, we foresee
following major sources of revenue.
● Pay-per-transaction: Brands continue to pay us the commission (typically b/w 5- 10%) for every
converted sale through our channel. We are also planning to monetize for certain high-engagement,
high-impact key actions such as influencer content creation and distribution.
● Subscription for premium services : Although currently we are not charging brands for the
dashboard (primarily to identify key metrics), we plan to offer analytics dashboard on subscription
basis as a service as our platform grows.
● Data-as-a-service: This forms as an additional source of revenue once we have sufficient amount
of data. Aggregated user data that is being collected across multiple touch-points can be offered as a
service (data is anonymized to be in line with privacy norms) for retargeting in the form external
SDK.

Year 1: Feb 2016 - Jan - 2017

By the end of year 1 (Jan 2017), the numbers that we expect to achieve are as follows:
Brands onboard: 40-50
No. of downloads: 50000
% of active users: 20-25%
No. of active users: 12500
Avg. ticket size per user per month: Rs 400
Transactions driven through the platform (T): Rs 5000000
Team members recruited (including founders): 8 (5 Full-time + 3 Interns)

Financial Expenditures:
Customer acquisition cost: Rs 50
Avg. salary per employee per month: Rs 30000
Avg. compensation per intern per month: Rs 10000
Office Rent per month: Rs. 30000

Total Expenditure:
For Month Jan 2017:
Salary + Office Rent + Customer Acquisition ( Marketing ) Expenses + Misc = 280000

Gross Total Expenditure for the 1st year ( E ) = 3322500

Revenues generated:
Commission % (C) : 8
Revenue from transaction per month ( Rm) =T*C = 400000
Total Revenues for 1st year ( R ) = 1560000

CashFlow : R - E = -1762500
User Growth : >50% MOM

Team -

Why do we need an accelerator ? -