WeAre. INNOVATIVE USE OF VR IN TOURISM
Anja Đurić FACULTY OF ECONOMICS AND BUSINESS | MANAGERIAL INFORMATICS
Contents 1.
2.
INTRODUCTION .................................................................................................................. 5 1.1.
Essay Scope and Purpose............................................................................................ 5
1.2.
Data Sources and Collection Methods ....................................................................... 5
1.3.
Essay Content and Structure ...................................................................................... 5
1.4.
E-business Model – Short Description........................................................................ 5
PROJECT DESCRIPTION ....................................................................................................... 6 2.1.
Project Detailed Description ....................................................................................... 6
2.2.
Project Organization ................................................................................................... 9
2.3.
Project Strategic Background ................................................................................... 10
2.3.1.
Mission .............................................................................................................. 10
2.3.2.
Vision ................................................................................................................. 11
2.3.3.
Project Goals ..................................................................................................... 11
2.4.
Innovations ............................................................................................................... 12
2.4.1. Innovation List ....................................................................................................... 12 2.4.2. Project Innovations – Detailed Description .......................................................... 13 2.5. Competition .................................................................................................................. 14 2.5.1. Main Competitors ................................................................................................. 14 2.5.2. Similarities and Differences with Existing Projects in the Market ........................ 16 2.5.3. Project Competitive Advantage ............................................................................ 17 3.
Digital Business Model .................................................................................................... 18 3.1. Main Business Partners ................................................................................................ 18 3.1.1.
Main Business Partners List............................................................................... 18
3.1.2.
Main Business Partners Description.................................................................. 18
3.2.
E-business Model Values .......................................................................................... 20
3.3.
Key Activities............................................................................................................. 21
3.4.
Key Resources ........................................................................................................... 22
3.5.
Clients ....................................................................................................................... 22
3.5.1.
Main Clients List ................................................................................................ 22
3.5.2.
Main Clients – Detailed Description .................................................................. 22
3.5.3.
Markets and Website Language ........................................................................ 24
3.5.4. Client Registration ................................................................................................. 24 3.5.5. Registered Client Benefits OR Direct and Indirect Benefits of Free Content........ 25
3.6.
Customer Relationships ............................................................................................ 25
3.7.
Business Channels..................................................................................................... 26
3.8.
Project Starting Costs ............................................................................................... 26
3.9.
Revenue Models ....................................................................................................... 27
3.9.1. Revenue Models List ............................................................................................. 27 3.9.2. Revenue Models – Detailed Description ............................................................... 28 4.
DIGITAL TECHNOLOGIES .................................................................................................. 29 4.1.
Mobile Technologies................................................................................................. 29
4.1.1.
Mobile e-business ............................................................................................. 29
4.1.2.
Mobile Application for Smartphone Description .............................................. 30
4.1.3.
Mobile Application Functionality Description ................................................... 30
4.1.4.
Graphic of Mobile Application Functionality .................................................... 32
4.1.5.
Mobile Advertising ............................................................................................ 39
4.2.
Social networks ......................................................................................................... 40
4.2.1. Project Facebook Profile ....................................................................................... 40 4.2.2. Project Author LinkedIn Profile ............................................................................. 40 4.2.3. Project Twitter Profile ........................................................................................... 41 4.2.4. Project Instagram Profile....................................................................................... 41 4.2.5. Project Snapchat Profile ........................................................................................ 42 4.3.
Cloud computing....................................................................................................... 42
4.4.
Big data ..................................................................................................................... 42
4.5.
Sensors and Internet of Things (IoT) ........................................................................ 43
4.6.
3D Printers ................................................................................................................ 43
4.7.
Robotics .................................................................................................................... 43
4.8. Drones .......................................................................................................................... 43 4.9. Virtual and Augmented Reality .................................................................................... 44 4.10. Artificial intelligence ................................................................................................... 44 5.
DIGITAL MARKETING ....................................................................................................... 44 5.1. Project Marketing Plan ................................................................................................. 44 5.2. Project Key words......................................................................................................... 47 5.3. Google AdWords ad ..................................................................................................... 47 5.4. Social Networks Advertising ......................................................................................... 48 5.5. Marketing Plan Table ................................................................................................... 49
6.
DIGITAL PAYMENT METHODS ......................................................................................... 49 6.1. Digital Payment Methods List ...................................................................................... 49 6.2. Digital Payment Methods Description ......................................................................... 50 6.2.1. Banking cards ........................................................................................................ 50 6.2.2. UPI (Unified Payment Interface) ........................................................................... 50 6.2.3. Mobile wallets ....................................................................................................... 50 6.2.4. Internet banking .................................................................................................... 50 6.2.5. Mobile banking ...................................................................................................... 51 6.3. Blockchain tehnologies................................................................................................. 51
7.
PROJECT SWOT ANALYSIS ............................................................................................... 52
8.
PROJECT WEBSITE ........................................................................................................... 52 8.1.
Web Hosting and Web Domains............................................................................... 52
8.1.1. Project Web Hosting ............................................................................................. 52 8.1.2. Project Web Domain ............................................................................................. 53 8.2. Content Management System ..................................................................................... 54 8.2.2. Best CMS for Project – Description ....................................................................... 55 8.3. Website Prototype ........................................................................................................... 56 8.3.1. Project Website Structure ......................................................................................... 56 8.3.2. Project Website Sitemap ........................................................................................... 61 8.3.3. Project Website Structure Description ..................................................................... 61 9.
CONCLUSION ................................................................................................................... 62
10. BIBLIOGRAPHY ................................................................................................................... 62 11. LIST OF WEB LINKS ............................................................................................................ 62 12. LIST OF FIGURES ................................................................................................................ 63 13. AUTHOR CURRICULUM VITAE ........................................................................................... 64 14. ABSTRACT .......................................................................................................................... 66
1. INTRODUCTION
1.1.
Essay Scope and Purpose
Purpose of this essay is to showcase an e-business model presenting the idea of using virtual reality technology in tourism.
1.2.
Data Sources and Collection Methods
Method used for collecting valuable data is going to be done through internet research.
1.3.
Essay Content and Structure
This essay consists of nine chapters, each chapter describing a particular part of the ebusiness model in detail, finalized with a conclusion. Structure is defined with the table given above.
1.4.
E-business Model – Short Description
The idea behind the title is the ability to use virtual reality technology to test out a destination before booking it in a tourist agency. While most goods and services can be either sampled or tested before the purchase, booking a destination in a traveling agency offered no such option. With rapid evolution of VR technologies, there is a gap in the market for virtual reality supported advertising of tourist destinations. This e-business idea consists of developing a software (an app, to be more precise) with features like 360° video material and a VR headset which allows the end user to get an "as realistic as possible" experience of the desired destination. Another feature will focus on a virtual experience of the accommodation which demands partnerships with various hotels and resorts.
2. PROJECT DESCRIPTION This chapter is going to deal with a detailed description of the project, answer questions about the organization of the project and explain the strategic background through mission, vision and project goals, along with innovation description and our main competitors.
2.1. •
Project Detailed Description Project title and overview
WeAre. is a software development startup, specialized in developing platforms supported by VR technology. Our first project is aimed toward the tourism industry, where we have found a gap in the advertising market. Our goal is to provide tourism agencies with an innovative way of advertising their products, and for the first time ever, give their customers the ability to test out their product, which is a particular booking arrangement.
•
Purpose and need
Since WeAre. is a startup specialized in developing software supported by VR technology, we wanted to explore new fields and move away from the gaming industry. We believe that VR can serve as a strong tool in the advertising department and that is why we decided to apply its use in the tourism industry. We believe that advertising in tourism reached a dead end when it comes to todays’ conventional advertising tools. Apart from offering exotic destinations and flashy images, which are not that difficult to follow up, tourist agencies are struggling to enhance their competitive advantages in order to outrun the competition. That is where we step in with an innovative idea and top notch technology, offering an “all-inone” solution. Tourist agencies will not only be able to attract more customers, but also offer a pre-experience of their bookings, which was not a possibility up until now.
•
Business drivers and significance
Key business drivers which will determine the success of our business are following:
High-performing team – our employees are expected to meet the deadlines, achieve realistically set goals in terms of sales targets, maintain a good relationship with our partners and deliver best service possible to our customers. Growth – our main goal is growth, both market wise and profit wise. This technology offers a wide range of use cases and we do not plan on stopping at tourist agencies. Possible partnerships with hotels and resorts are a part of our business plan which opens up international market opportunities and possible profit growth.
Innovation – VR technology is newly introduced to the advertising scene and we want to be one of the first companies which implemented this technology and made a revolution in the advertising industry.
•
Benefits and costs
Our benefits lie in the fact that we have a competitive advantage just by using and implementing new technology such as VR. We believe that our product will attract a great number of people because it is both innovative and offers a “never-before-seen” opportunity to test out a destination before booking it. There is a blend of innovative thinking, purposeful use and an interesting concept offered to both businesses and end customers. Our initial costs consist of company’s share capital, office rent, IT equipment, salaries and taxes. That being said, since WeAre. is a startup, it is automatically put in the high-risk category of businesses and there is a chance that all of the initial investment will not be profitable.
•
Implementation method
First step is to develop software (application) which is able to depict various destinations in VR compatible format. The idea is to surround the user with 360° video material, bought from freelancers, to get the most realistic experience as possible. This particular software will be sold in the form of an app which allows the user to check out 360° video material on its own, or combine it with VR goggles which offer the full experience. Other than software
itself, to enjoy this experience, one would need a smartphone with an installed app and VR goggles (we are opting for ones which can be used in combination with most smartphones). The user will simply pick the desired destination, choose the VR option in the app, insert the smartphone in VR goggles and enjoy their free trial of the destination. The installation process will be conducted by out technicians who will also educate our buyers on how to use the newly installed technology. Developers will be in charge of maintenance and frequent updates of the software.
•
Timeline
For the development of the software, we expect a timeframe of six months, including all of the elements from the first beta version up until the commercial version which is ready to be launched. In the first year, we will mainly focus on advertising our product using various channels such as direct sale, social media, tourism fairs, guerilla marketing and similar. That is why we do not expect to see any profit in the first year of our business. Over the course of next 5 years we expect a yearly growth in sales and profit, which will gradually decline after that period because of change in trends and possible substitutes emerging on the market.
•
Requirements
To start our business there are a few requirements which need to be fulfilled. These requirements cover: Legal matters – starting of a business People – employees Businesses – customers and partners Expenses - company’s share capital, office rent, IT equipment, salaries, etc. Technology – equipment
•
Expected outcomes
As we mentioned earlier, our main objective is growth. Firstly we want to make a profitable business with this particular project which is predominantly focused on tourist destinations and tourist agencies. Secondly we want to expand our business internationally by partnering
up with hotels and resorts giving them the opportunity to offer trials of their accommodation remotely. Another idea which is in the making is developing a platform for real estate agencies to support their business with VR technology, the opportunity to offer multiple real estate options to their customers in just minutes, also remotely.
2.2.
Project Organization
Here we will discuss the organization of our start-up, meaning, we will define needed departments within the company and explain employees’ roles. Since WeAre. is a startup, there will be no strictly defined structure, focus will be on teamwork and thinking on our feet, as most young entrepreneurs do. Our startup consists of 3 departments, namely: sales and marketing, product development and tech support. To explain employees’ roles, each department is going to be described individually:
•
Sales&Marketing:
This department consists of two sales representatives and a marketing specialist accompanied with a marketing assistant (internship), because we believe in young talent and want to encourage graduates to make their first steps in a fast-moving, busy environment which all startups experience. Main task of sales team is to communicate with potential clients, pitch our project to other businesses and take care of all legal paperwork regarding sales (contracts, licenses, etc.). Marketing is in charge of dealing with potential partnerships, taking care of the company social media and web page, coming up with innovative ways on how to advertise our product and keeping track of events such as tourism fairs where we can present our first project.
•
Product development
Product development department consists of two full stack developers and an UX/UI designer. Developers are in charge of handling the creation and maintenance of the
software, while the UX/UI designer is taking care of the interface and visual experience of our products.
•
Tech support
Tech support department consists of two on site IT technicians whose main role is to install the software for our clients and educate them on how to use our product.
Regarding our accounting and finance department, it is going to be outsourced and sales is handling the exchange of needed paperwork. We do not have a separate HR department, because we believe that each department should be able to independently decide if the candidate fits the role and the team dynamic. That being said, marketing is in charge of job ads and incoming applications, but the selection and interviews are being held by the department for which the candidate applied for.
2.3.
Project Strategic Background
In this chapter we are going to state our mission, vision and goals, describing them individually in more detail.
2.3.1. Mission
Our mission is to research, explore and finally provide the best experience in the advertising industry by implementing VR technology. Having feedback form both businesses and end customers makes a full circle process and enables us to constantly push ourselves further, having insight in both entrepreneurial and customer perspective.
2.3.2. Vision
Our vision is to grow as a startup and earn the title of a pioneer in VR infused advertising field. We believe in our ideas and capabilities to a point where we are convinced that we are starting a revolution in this particular industry. We want to make a statement and establish our start-up as a brand which brings innovation and has a significant impact on trends regarding the use of VR technology.
2.3.3. Project Goals
•
Increasing market share
In our first two years we plan on investing heavily in marketing activities in order to establish a recognized brand, rather than being just another startup. This will bring us more attention which will result in a lot of interested parties, both clients and partners. Marketing activities which will predominantly take place in the first year of our business will involve actively participating on tourism fairs to gain the attention of our potential clients and open up possible partnership opportunities. In our second year we will put emphasis on our online presence and devote more time to updating our social media and our webpage. All of the mentioned activities are estimated to result in five to eight new partnerships in total and three new clients a month (in average).
•
Developing new products
Our initial project concerns the tourism industry, but we already have a new idea in mind which is implementing VR in real estate business. Creating a platform for real estate agencies to showcase multiple housing options in just minutes is going to be our next big project. Since we will be more familiar with the development side of the software and have finished infrastructure for the application, our estimated timeframe for completion of the software is three months (beta tests and final launch included). This project is scheduled for January 2023.
•
Expanding into new markets
This goal is closely connected to the previous one. Instead of limiting ourselves on just one industry, we plan on exploring other markets, real estate as mentioned above.
•
Expanding into new locations
We plan on taking our business to Asian countries (China, Japan, South Korea) since it is widely known that the Asian population is tech-obsessed and loves to travel, making a perfect target customer for our business. Initial step is to attend tourism fairs in those particular countries and gain the attention of potential buyer in Asia. This phase is scheduled for March 2022. when we will have more staff and experience from previous sales.
•
Increasing the efficiency of sales
Measures which will be taken to accomplish this particular goal are predominantly people oriented. We plan on constantly educating our employees, rewarding them with bonuses and motivating them to improve their sales skills through team talks, sharing different experiences and approaches.
2.4.
Innovations
2.4.1. Innovation List
•
VR technology
•
New advertising tool
•
Cloud-based software
•
Use of VR in tourism
•
Kickstarter funding
2.4.2. Project Innovations – Detailed Description
2.4.2.1. VR technology
Virtual reality technology typically involves the use of a VR headset, which helps to immerse a user in a digital environment. Through the use of images, sounds and other physical sensations, the user is essentially placed within a virtual world, which they can move around and, in some cases, interact with in other ways.
2.4.2.2. New advertising tool
While many virtual reality applications center around entertainment, the technology is also being utilised by marketers in a number of interesting ways. For example, VR headsets can allow marketers to go beyond providing basic images, allowing users to actually ‘experience’ the product they are being sold to. Additionally, many businesses are experimenting with VR-based user interfaces, replacing traditional computer or mobile interfaces.
2.4.2.3. Use of VR in tourism
Businesses operating within the travel industry have been especially quick to adopt virtual reality technology and for good reason. Typically, their customers are looking to purchase experiences, rather than products, and virtual reality offers an effective way for marketers to give them a taste of what they can expect. Travel customers usually require lots of information before they book a hotel room. This may, for instance, require them to read descriptions, view images, look at videos, read customer reviews or seek opinions on social media. Through intelligent use of virtual reality, however, this process can be shortened significantly.
2.4.2.4. Cloud based software
Cloud-based software is hosted over the internet instead of installed onto your computer. Cloud-based software, by contrast, can be accessed from multiple computers. You can complete tasks on your work computer and then head home and pick up where you left off on your personal computer. Or, useful in the storage industry, managers can work on tasks in the facility’s office and owners can work within the same program in their office the next state over. The goal behind cloud-based technology is to increase accessibility and convenience for users. With an internet connection, you can access your software anywhere and anytime. This setup also allows the software provider to release updates regularly and without interrupting your use of the program. That may not be a problem for vendors who never update their software, but for vendors who consistently implement and improve upon new features, it can make a huge difference in operations at your facility.
2.4.2.5. Kickstarter funding
Kickstarter is an American public benefit corporation based in Brooklyn, New York, that maintains a global crowdfunding platform focused on creativity. Every project creator sets their project's funding goal and deadline. If people like the project, they can pledge money to make it happen. If the project falls short of its funding goal, no one is charged. If a project is successfully funded, Kickstarter applies a 5% fee to the funds collected.
2.5. Competition 2.5.1. Main Competitors
•
Google Earth VR
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Boulevard
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Gala360
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YouVisit
•
Discovery
2.5.1.1. Google Earth VR Google Earth VR starts you off in space, but you can zoom in on any part of the globe and, within seconds, you’ll have a bird’s eye view of the locale in question. With a simple long press and drag of your controller, you can fly from the top of the Eiffel Tower to the inside of Disney World. If you need inspiration for your next adventure, Google provides tours of famous landmarks, along with themed destinations. You can even go from day to night, just point to the sky and swipe. You can also type in an address and Google Earth VR will transport you to said destination, where you can capture and save snapshots of what you see.
2.5.1.2. Boulevard In Boulevard (formerly WoofbertVR), you can explore 3D renderings of various museums and cultural sites located throughout England and San Francisco. However, the app allows you to do more than merely look around. You can access a virtual tablet with the tap of a button, which will provide you with textual information on what you are looking at and allow you to take a brief audio tour. It can even show you which exhibits you can further engage with. For instance, if you tap on Édouard Manet’s famous 19th century painting, A Bar at the FoliesBergère, you’ll be transported beyond the frame and into an animated reimagining of the events depicted in the painting. Or, if you tap on a 1969 photo of painter Helen Frankenthaler, you’ll be able to walk around a 3D rendering of her minimalist workspace
2.5.1.3. Gala 360 Virtual reality has turned photo galleries into 3D experiences. Gala360 consists of a collection of shots culled from professional photographers, all of which allow you to examine events, museums, landmarks, and different locales with a mere swipe of your finger. You can walk around and explore the cavernous lava tubes of Hawaii, for example, or take in the breathtaking views of Yosemite National Park. Certain experiences even have audio
commentary, providing you further context about what you’re seeing as you scroll through the app’s various photos. Many of these experiences are free, though, premium content will cost you a $1 a month.
2.5.1.4. YouVisit YouVisit lets you experience its content on the web (through a web browser or the Oculus Rift) or with a VR headset via its app for iPhone or Android. YouVisit has a variety of interesting travel-related 360-degree photos and videos, from the Ayautthaya temples of Thailand to the Louvre Museum in Paris and helicopter ride over New York City. You can even get onboard the Carnival Breeze and explore the different parts of the cruise ship.
2.5.1.5. Discovery Discovery is one of the major media companies to dive into virtual reality. It launched its Discovery VR initiative that lets users experience TV shows like Gold Rush, Survivorman, Puppy Bowl, and MythBusters, in an immersive manner. Besides exploring the exotic locales, you can swim with sharks, ski downhill with Bode Miller, or learn to forage for food, for example. Discovery VR content can be watched online, but it’s best via a phone and Google Cardboard or similar viewer, or Samsung Gear VR (via Oculus store)
2.5.2. Similarities and Differences with Existing Projects in the Market •
Similarities:
All of the competitors, including us, are highly focused on tourist destination such as major cities, coastal places and historic travel points. Another priority which can be noticed is the accent on high resolution video material which grants the user a quality experience of the destination. •
Differences:
Our plan is to cover not only travel destinations but localities such as museums and galleries as well. Another added feature is our collaboration with hotel chains and resorts which allow for the user to get a feel of their accommodation. We also plan on expanding our business in
the real estate sector which gives us a variety of products, and therefore a bigger market base.
2.5.3. Project Competitive Advantage •
Partnerships:
By partnering up with hotel chains and resorts we are getting a unique selling point which is offering a full experience of accommodation options. Museums and galleries are also a big advantage because we have a chance to partner up with some big names which will work in favor in terms of our reputation and brand image. •
Brand image recognition
The name of the business is WeAre., which is exactly what we do, promote VR technology solutions and contribute to all sides, both business and customer related issues. This means that we are all involved in the process and want to make a strong community supporting each others goals and ambitions. •
Variety:
Our plan is to continuously work on development of VR related solutions in as many industries as possible, starting with our expansion in the real estate market. This is going to grow our product offer and widen our market. •
Know-how:
From our product development team to our marketing specialists, we have assembled an ambitious and goal-oriented team with an unmatched skillset. Key values in our business are people and knowledge. •
Intellectual property:
Legal protection such as copyrights, patents and industrial design rights that prevent competitors from using our content, design and innovations are going to play a big role in our business model.
•
Market location:
Since our initial market location is the Croatian market, which is not saturated with companies offering solutions similar to ours, we estimate our position as a leader for approximately 2 years until our first local competitor appears.
3. Digital Business Model 3.1. Main Business Partners 3.1.1. Main Business Partners List •
Oculus
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Hilton Hotels&Resorts
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Valamar Riviera
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Sun Gardens Dubrovnik
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Esplanade Zagreb Hotel
3.1.2. Main Business Partners Description 3.1.2.1.
Oculus
Facebook Technologies, LLC, doing business as Oculus, is an American technology company founded by Palmer Luckey, Brendan Iribe, Michael Antonov and Nate Mitchell in July 2012 in Irvine, California, now based in Menlo Park. It specializes in virtual reality hardware and software products. In March 2014, Facebook, Inc. CEO Mark Zuckerberg agreed to acquire Oculus for US$2.3 billion in cash and stock. In 2015, Oculus acquired Surreal Vision, a British startup focused on 3D reconstruction and mixed reality, stating that it could be possible for Oculus to develop products with the concept of telepresence. The company partnered with Samsung to develop the Samsung Gear VR in November 2015 for the Samsung Galaxy smartphones. Oculus offers a wide variety of hardware specialized for certain purpose and is a widely known and trusted brand in the VR industry. By partnering up with Oculus, we are stating
that we are ready to work alongside the biggest companies in this industry and are aiming to provide our customers with top notch hardware needed to bring our software to life.
3.1.2.2.
Hilton Hotels & Resorts
Hilton Hotels & Resorts (formerly known as Hilton Hotels) is a global brand of full-service hotels and resorts and the flagship brand of American multinational hospitality company Hilton. Hilton Hotels & Resorts is Hilton's flagship brand and one of the largest hotel brands in the world. The brand is targeted at both business and leisure travelers with locations in major city centers, near airports, convention centers, and popular vacation destinations around the world. By covering more than 580 locations, Hilton makes for a very desirable partner regarding our current project. Our plan is to offer VR experience of their accommodation to the end customer and in return we have our name standing alongside one of the most recognized luxury accommodation providers in the world. Main goal of this partnership is building a brand which will be widely recognized and trusted.
3.1.2.3.
Valamar Riviera
Valamar Riviera is Croatia’s leading tourism company operating hotels, resorts and camping resorts in prime destinations: Istria, the islands of Krk and Rab, Makarska, Dubrovnik, and Obertauern in Austria. Valamar’s 34 hotels and resorts an 15 camping resorts can welcome around 58 000 guests daily and provide perfect holidays and authentic experiences for each guest. We decided to partner up with Valamar because it is a brand which is recognized and appreciated in Croatia. By partnering up with them, we are able to present our brand on the local market standing next to Croatia’s leading tourism company. With this move we are perceived as a trusted brand approved by leaders in offering quality accommodation within Croatian borders.
3.1.2.4.
Sun Gardens Dubrovnik
Sun Gardens Dubrovnik is a 22 – hectare resort on the beautiful Adriatic coast. The resort is located 11 kilometers from the city of Dubrovnik. It features a 201 room five-star hotel and 207 fully – appointed residences. It is a part of The Leading Hotels of the World, a prestigious collection of independent luxury hotels. Rooted in the locations in which they are found, member hotels embody the very essence of their destination. We also want to partner up with a hotel which is directly connected to a major tourist destination, Dubrovnik. That gives us the opportunity to directly combine the destination with accommodation and offer an ‘’all in one’’ solution for the end client regarding their stay in a particular city. Final goal is bettering our customer service and establishing that our company provides solutions before the problem even occurs.
3.1.2.5.
Esplanade Zagreb Hotel
The Esplanade Zagreb Hotel is a historic luxury hotel in Zagreb, Croatia. It was built in 1925 to provide accommodation for passengers of the famous Orient Express train, which traveled between Paris and Istanbul. Located in the city center of Croatia’s capital, the Esplanade is one of the best known hotels located in the mainland Croatia. Since we are a Zagreb based company, and Zagreb is experiencing a growth in terms of foreign visitors, it makes perfect sense to partner up with our most acclaimed hotel. The Esplanade will be our first project regarding VR experience of accommodation. Being such a big part of the history, we want to promote historic buildings which have an interesting story in the background, making the end user even more interested in both destination and accommodation offer. This way our project can serve and educational purpose as well.
3.2.
E-business Model Values
Our core values consist of offering solutions to both businesses and end customers by using innovative thinking and implementing it in our business model. We also want to offer a full service approach when it comes to making business with our clients. Our relationship does not stop when our products is sold. Our whole business model is based on long lasting
relationships with our clients and requires good communication between us. As we previously mentioned, our business makes for a full circle process and enables us to constantly push ourselves further, having insight in both entrepreneurial and customer perspective of our product. By getting feedback from both sides, we are engaging vast number of participants in our product development process, creating a community. We strongly believe that the end goal of every business idea is to solve a particular problem. Our idea solves a particular problem for both businesses such as travel agencies, and their clients, travelers. Businesses have the opportunity to use an innovative platform to advertise their offers, and the end customer gets the trial of their booked trip, which was one of few ‘’products’’ that could not be tested before use up until now.
3.3.
Key Activities
Key activities which are aligned with our business values are following: •
Development:
Since we are a software development company we need to make sure that our product development team is equipped with all necessary tools for delivering the project in given timeframe, without questionable quality of the end product. •
Operations:
After our product is finalized and sold to our customer, we have the obligation to maintain the software and update it regularly.
•
Sales:
Key role in our business is our sales department which is responsible for finding our potential buyers and maintaining communication with existing clients. Sales is also our key revenue resource. •
Customer experience/relationship:
In our business model key departments which are responsible for customer service delivery are sales department and tech support.
3.4.
Key Resources
Key resources necessary to conduct our business are following: •
Financial resources: funding our start-up
To start our business, we need financial resources which we are going to get via Kickstarter, a global crowdfunding platform focused on creativity. •
Human resources: employees
People are the most valuable resource of our business. •
Educational resources: know-how
In our line of business, know-how is one of key determinants for success. •
Physical resources: offices and equipment
To assure our employees are working in a productive environment, we have to provide them with comfortable office space and top notch equipment.
3.5.
Clients
Regarding our initial clients, we decided to present our project to top 5 travel agencies located in Zagreb, having in mind that other agencies in the industry will follow their example. 3.5.1. Main Clients List • Atlas •
Global Travel
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Palma Travel
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Jungle Tribe
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Azur Tours
3.5.2. Main Clients – Detailed Description 3.5.2.1.
Atlas
Atlas is the leading travel agency in the region in the organized travel and tourism services sector. Atlas Airtours, today's Atlas outgoing sector, founded in Zagreb in 1970, over the years became one of the leading regional tour operators and the best host in over 400
destinations worldwide. With the largest offer of vacations and travels, experienced representatives and the longest tradition of an educated guide service, your vacations and trips will make it an unforgettable experience. A big part of Atlas' strategy is emphasis on working closely with customers and business partners, which results in the organization of expert workshops, the exchange of knowledge and experience, and the continuous improvement and enrichment of the offer.
3.5.2.2.
Global Travel
Global Travel is a Zagreb based travel agency with 15 years of experience in the tourism sector. They are well known for their discounted booking offers and group excursions. Global Travel is focused only on European destinations and offers departures from Zagreb, Rijeka and Slavonski Brod.
3.5.2.3.
Palma Travel
Palma Travel is present on the Croatian market for more than 30 years. They offer a wide variety of travel options including organization of individual trips, group excursions and business. Regarding the destinations Palma Travel covers everything, from Croatian coast to exotic destinations such as Morocco.
3.5.2.4.
Jungle Tribe
Jungle Tribe is a travel agency located in Zagreb city center. It has gained popularity in the past three years by the use of their social media such as Instagram and Facebook. Jungle Tribe specializes in organization of exotic destinations and group excursions. Their target customers are usually young adventurous people who are most likely going to post their vacation pictures online. That is exactly how they managed to get their name alongside one of the most popular tourist agencies in Croatia, by carefully targeting their clients and delivering amazing experiences.
3.5.2.5.
Azur Tours
Azur Tours is another travel agency which covers all kinds of destinations. A client is able to choose between various options, from family vacations to exotic destinations for honeymoon. They also offer a lot of wellness options which is interesting for us too, because some of them might be interested in creating 360° or VR promotional material.
3.5.3. Markets and Website Language Our initial market is located in Croatia. Since we are focusing on heavily promoting our brand within the border of our country in our first years of doing business, our webpage is going to be available in Croatian and English language. We plan on expanding our market in the future and we will offer other language options as we discover possible new clients outside Croatia. When time comes, language options will be adjusted according to our newly discovered markets.
3.5.4. Client Registration To accesses our webpage as an end customer there will be no registration required. Free content is going to be purposefully created in order to inform the user about our business, giving them latest news regarding the VR technology breakthroughs (blog) and a glimpse of our project in the form of 360° video material of destinations which will be exclusively available for our actual clients. As far as the app is concerned, it will be a freemium app, meaning a business model, especially on the Internet, whereby basic services are provided free of charge while more advanced features must be paid for. Our clients will have to sign in and pay a monthly fee to enjoy our premium content.
3.5.5. Registered Client Benefits OR Direct and Indirect Benefits of Free Content •
Direct and indirect benefits of free content
We decided for this model, because we believe it will give us more exposure and an opportunity to present ourselves to a wider public, rather than just to our potential clients. Our free content will not be available only on our webpage, but also on all of our social media profiles such as Facebook, Instagram and Linked in which will act as a guide to our webpage. The most significant benefit of using social media for business marketing is that it is one of the most inexpensive ways to promote a brand or a product in comparison to other advertising platforms and marketing tools. Another good thing about the social media platform apart from enabling you to raise the number of organic traffic is that you can track your traffic count as well as the source. By using Google analytics we will be able to: •
See how many people really get engaged with our content
•
Know how many of them leave our site immediately
•
Set up proper goals that will match with the goals of our business
•
Measure whether or not your customers are being able to meet these goals.
3.6.
Customer Relationships
The development of an ongoing connection between our company and our customers is on the list of our top priorities. All of our departments are responsible for a specific segment of building that relationship. Our sales team is in charge of finding our potential customers and presenting our proudt as a solution. After we establish a sale our end goal is bringing quality service to our customer through detailed education about the product given by our sales team. Technitians are responsible for installation of the software and act as a customer service department in cases of possible technical issues. Also, product development team is in charge of maintenance and frequent updates of the software. Mentioned updates will consist of both our propositions and clients proposition regarding possible improvements of the software. This is how we will establish trust and give our clients the opportunity to adress certain issues noticed while using our product. Our marketing team is responsible for
our social media and web page, which is an important part of indirect customer relationship practises. They will be in charge of newsletters, responding to inquiries coming from social media platforms and providing our followers with entertaining content which has an educational purpose.
3.7.
Business Channels
To reach our customers we will attend tourism fairs and invest heavily in our online visibility regarding our webpage and social media accounts. We will be creating entertaing yet educational newsletter content for our potential clients. Also our sales team will be responsible for contacting our potetntial clients directly by calling them and offering them our software (application). Calling the client is a more traditional way of acquiring buyers but we find that this method will be the most efficient one since it has a personal touch. The end customer feels as if they are chosen, rather than just a number that we crossed out while sending out newsletter materials. Another positive point is the fact that the client is able to get a detailed description of our product in the given moment and get a full information about further activites which are neccessary to finalize the purchase. The most cost-efficient way of presentig ourselves to our clients is through social media, which is free.
3.8.
Project Starting Costs
Our initial costs consist of company’s share capital, office rent, IT equipment, salaries and taxes. Since we plan on publishing our project on Kickstarter, we will have the needed funds which will cover project starting costs. The most expensive resource would be IT equipment and office rent. Key activities which will require a large amount of continuous investment are admission fees for tourism fairs and investments regarding marketing activities, such as investing in our webpage visibility online. Project starting costs with short description and estimated monthly/yearly value is given below:
•
Hosting and domain cost:
Since our initial plan is to create our website using WordPress.com, we want to make sure that our hosting pick compliments our CMS choice. We decided for HostGator.com which offers specialized WordPress hosting solutions, such as ‘’WordPress Hosting’’. Although their introductory prices are cheap, starting from $5.95 per month, their renewal fees are higher at $9.95 per month. •
Promotion cost:
To establish our company as a brand we will invest heavily in the early stages of our business in attending tourism fairs and our website visibility. Our plan is to invest approximately 20 000 $ in promotional activities during our first year of doing business •
CMS cost:
We decided for Wordpress. The business plan costs $25 a month and gives you full access to the theme store, unlimited storage space and a custom domain. •
Hardware cost:
This segment concerns our IT equipment. We plan on spending approximately 8000 $ to initially provide our employees with high quality equipment. •
Software cost:
We are a software developing company so there is no cost in this segment (full stack developer approx.. monthly salary: 3000 $). •
Mobile app cost:
With our full stack developers, there is no need to outsource creation of our app (full stack developer approx.. monthly salary: 3000 $).
3.9.
Revenue Models
3.9.1. Revenue Models List •
Subscription access to App content
•
Premium content singles/bundles
•
Affiliate revenue
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Subscriber data access for e-mail marketing
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Sponsorship of website sections
3.9.2. Revenue Models – Detailed Description 3.9.2.1. Subscription access to App content Alongside free app content consisting of free 360° video material of destinations and entertaing content regarding VR technology in advertising, the app will have a registration section for business users (our clients), with a monthly fee (billed yearly), allowing our clients to unlock 10 default destinations available in VR mode.
3.9.2.2. Premium content: singles/bundles To enrich their account, our clients will be able to purchase premium destination previews of their choice either as singles or in bundles. Bundles will consist of three to ten destinations per bundle and the pricing per destination is going to be discounted if the client purchases a larger bundle. Singles and bundles will be a one-time-payment arrangement.
3.9.2.3. Affiliate revenue Affiliate revenue will be collected through our webpage, more precisely through our blog which will be packed with all sorts of articles about VR, innovation in advertising, tourism and similar. For example, we will do a review of an e-book about innovative use of VR in advertising industry and publish an affiliate link for purchasing it.
3.9.2.4. Subscriber data access for e-mail marketing In our newsletter we will also promote our business partners, especially Oculus, and educate our potential clients about the hardware necessary for using our app for business purposes.
3.9.2.5. Sponsorship of website sections Certain amount of our internet space will be rented to other companies which are connected to our industry. For example we will have icons for Oculus, App store and Google
play constantly on our webpage. Another example are pop-up banners advertising companies connected to our business (e.g. Esplanade Zagreb)
4. DIGITAL TECHNOLOGIES 4.1.
Mobile Technologies
4.1.1. Mobile e-business Ecommerce business classifications: •
B2B: Business to Business
Our business model is primarily focused on B2B concept. Our goal is to sell our products to other companies such as tourist agencies and large scale accommodation providers, such as hotels and resorts, providing a long term solution for involving their customers in new ways of promoting their business and taking them a step further in implementing digital innovation in their business model.
•
B2C: Business to Consumer
Considering that our app will have both free and premium features, free being available for the end customer from our buyers, we think of our model as a B2C as well. The end consumer will have the possibility to inform themselves about our company and use free features such as 360° video material as a preview of the full experience offered in VR mode to other businesses.
Type of ecommerce business revenue model: •
Subscription
For offering premium features to our buyers, we will charge them a monthly subscription which allows them to showcase 10 default destinations available in VR mode.
•
Premium content: singles/bundles
To enrich their account, our clients will be able to purchase premium destination previews of their choice either as singles or in bundles. Bundles will consist of three to ten destinations per bundle and the pricing per destination is going to be discounted if the client purchases a larger bundle. Singles and bundles will be a one-time-payment arrangement.
4.1.2. Mobile Application for Smartphone Description Our mobile application is generally our finished product. It holds both free and premium features. Premium features are generally intended to be used by our buyers, tourist agencies. Free features are available for all users, from interested wide public to travel an tech enthusiasts who are interested in our content. Free features consist of 360° video material of a wide range of destinations and latest news on development of VR technology in Tourism and advertising. Premium content will be charged as a monthly subscription, allowing the user to showcase 10 default destinations in VR mode. To enrich their account, our clients will also be able to purchase premium destination previews of their choice either as singles or in bundles. Bundles will consist of three to ten destinations per bundle and the pricing per destination is going to be discounted if the client purchases a larger bundle. Singles and bundles will be a one-time-payment arrangement. 4.1.3. Mobile Application Functionality Description Functionalities: •
360° video material
360° video material as a preview of the full experience offered in VR mode available to all users. This is a free functionality. •
10 default destinations in VR mode
Premium content will be charged as a monthly subscription, allowing the user (tourist agency) to showcase 10 default destinations in VR mode. •
Singles
To enrich their account, our clients will be able to purchase premium destination previews of their choice as singles. This requires having a subscription and an on-time-payment for the chosen destination. •
Bundles
Bundles will consist of three to ten destinations per bundle and the pricing per destination is going to be discounted if the client purchases a larger bundle. As previously mentioned, Singles and bundles will be a one-time-payment arrangement and are both premium features.
•
Latest news on use of VR technology
Another free feature involves latest news on development of VR technology in Tourism and advertising.
4.1.4. Graphic of Mobile Application Functionality •
Initial screen
By tapping on our app icon, the user is presented with an initial screen as showcased in picture below.
Picture 1 Ap: Initial screen
•
Sign in form/continue as a free user
After the application loads, the user is presented with our sign in screen. Our business users/customers can access both free and premium content (Go VR in the app) by signing in with their email and password, whereas users who do not want access to premium content can continue as a free member and gain acces to articles and 360° video material.
Picture 2 App: Sign in screen
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Homepage
Whether the user signs in or continues as a free member, they are presented with the same homepage screen. Homepage contains articles about VR technology, latest news in travel industry and other interesting content. The user is able to use our search bar to browse specific points of interest. To navigate through the app, the user has 3 options, ''cool stuff'' being the homepage, ''360° experience'' as a separate functionality and finally our premium content for our customers under the name ''Go VR''.
Picture 3 App: Homepage
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360° experience
''360° experience'' contains 360° video material of various destinations as shown on the picture below. It is a part of our free content provided to all users, both free and premium. To quickly find their point of interest destination, the user can simply use the search bar.
Picture 4 App: 360° experience
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Go VR/premium interface
Our premium feature is called ''Go VR''. If the user does not sign in beforehand, they are not able to access this particular feature. It holds current offers for bundels and singles mentioned previously, ''offers'' button which leads them to our ''shop'' and our customers previous purchases showcased in section ''My collection''.
Picture 5 App: Go VR/premium interface
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Shop/offers interface
By taping on the ''offers'' button, the user is presented with an interface as showcased below. Here ,our premium users/customers, are able to pick and choose singles and bundles of their liking and add them to their ''shopping cart'' by taping on the cart icon.
Picture 6 App: Shop/offers interface
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Payment process interface
Picture below showcases our interface for paying via banking cards.
Picture 7 App: Payment process interface
4.1.5. Mobile Advertising Mobile advertising is the use of mobile devices to send marketing messages to consumers. Generally, this is done by marketers looking for the best places to advertise inside of SMS messages, banner ads on mobile websites, or by placing an ad in a mobile application such as a news app or game. Advertising models we decided for are explained below: •
Banner ads
This is what most people think mobile ads are. They typically occupy the real estate at the top or bottom of an app. If the user taps the ad, all sorts of possibilities open up from watching a video to the option of downloading an app. Example: Oculus banner will be placed on the bottom of our app. •
Interstitial ads
These are inserted at transition points in an app like right before an app starts or in a case of a game after a level is complete. It’s like watching a commercial on television. It’s typically a video that can drop the user off to the advertiser’s desired URL or to download another app. Example: to be able to watch a 360° video, the user must watch an advertisement prior to the desired destination video. •
Reward ads
The reward is triggered by some event in the app like getting an achievement. The user will see a pop up where they will get a discount, gift card, coupon, etc. The owner of the app will also get compensated too. Example: This ad will allow the user to watch three 360° destination videos, without having to watch other ads in between.
Picture 8 Reward ad, example
4.2.
Social networks
4.2.1. Project Facebook Profile
Picture 9 Facebook profile
4.2.2. Project Author LinkedIn Profile
Picture 10 Author LinkeIn profile
4.2.3. Project Twitter Profile
Picture 11 Twitter profile
4.2.4. Project Instagram Profile
Picture 12 Instagram profile
4.2.5. Project Snapchat Profile
Picture 13 Snapchat profile
4.3.
Cloud computing
The goal behind cloud-based technology is to increase accessibility and convenience for users. With an internet connection, you can access your software anywhere and anytime. This setup also allows the software provider to release updates regularly and without interrupting your use of the program.
4.4.
Big data
Using big data for data mining to decide which destinations should be included in ten default 360° videos is one of our ideas on how to implement big data in our business model. Another use of data mining is to decide how to combine bundles, meaning, which destinations are best combined to be offered as a set.
4.5.
Sensors and Internet of Things (IoT)
VR hardware is closely related to today’s IoT culture. It allows us to design and offer never before seen experiences in VR mode and make the preview of a certain destination or accommodation as realistic as possible.
4.6.
3D Printers
In the future, we might dive into production of our own hardware such as VR goggles. To produce them, we would invest in 3D printing technology and design our own hardware specialized for our services. Enriching our range of products with our own name on it will better our brand image and evoke a sense of trust in our company from the customer perspective.
4.7.
Robotics
Dealing with virtual reality as our main strong point, we are opening doors for partnering up with various industries which require robot training with the help of VR. Motion sensors in AR and VR gaming can be deployed to train robots. With the help of motion tracking technology in VR controllers, robots can analyze and learn various movement patterns. Also, developers can use a technique called reinforcement learning to teach several tasks to robots. In this manner, robotics and virtual reality can combine to develop applications that deliver better performance. Examples of our partner industries are healthcare industry and military training.
4.8. Drones Most of our video material will be shot with drones, allowing multiple view perspectives. This ensures that the end user feels as though they are walking on a beach, driving on a bike or observing the scenery from a plane for example. Drones are going to make it all possible for us without using various professional equipment.
4.9. Virtual and Augmented Reality Virtual reality is our specialty and our end goal is to produce quality 360° video material available in VR mode.
4.10. Artificial intelligence Possible use of Artificial intelligence might be in quick surveys which propose exact destinations described by the user. Based on user’s wishes and needs, the system will provide them with three best matches.
5. DIGITAL MARKETING This chapter is focused on our marketing strategy regarding our website and social media accounts. We will explain various digital marketing types and methods and how we plan on incorporating them in our marketing plan.
5.1. Project Marketing Plan Regarding digital marketing, we will primarily focus on following types of marketing:
•
Display advertising (paid method)
We will promote our company on our partner’s websites with the help of banners and popups. In return we will offer them some space on our website for their own displays.
•
Search Engine Optimization (SEO) (free method)
To gain a higher rank in search engine results, we will use various SEO tactics such as linking, targeting keywords and creating high level content that other sites would link to. Google as a search engine ranks up websites which have quality keyword selection, frequents updates and high click popularity. Since this is an organic method for optimization, we will devote a lot of our time and effort in to this particular method of digital marketing.
•
Blogs (paid method)
We will work on our own blog, because creating new content and updating our website frequently is something that Google recognizes and rans our website higher on the list. Having a blog is important because we will be able to counteroffer marketing methods such as affiliate links for other companies, which will do the same for us. Regarding blogs in general, we will advertise our site on blogs which are followed by our target market, businesses in tourism industry and travel and tech enthusiasts.
•
Newsletter (free method)
All of our subscribed users and the ones who allowed to be on our mailing list will be provided with weekly updates, latest news regarding our company such as latest features, discounts, new bundles in the form of a customized e-mail directed to them by name.
Picture 14 Newsletter example
•
Video ads (paid method)
With YouTube being the number one platform for videos and heavily pushing video advertising on their site, we plan on placing ours there. We will produce three video ads a month and publish them on YouTube which will automatically assign them to the videos which are watched by our target audience.
•
Remarketing (paid method)
Another way of gaining new customers is remarketing. When a potential customer visits our site but leaves without checking it out, our ads would pop up and “follow” them until they are brought back to our website and made in to a happy customer.
As we already mentioned earlier, we plan on spending around 20 000$ a year for our marketing activities. Regarding the advertising period, in today’s fast moving world and forgetful nature of people because of our fast paced lifestyle, the is a need for a constant reminder which is exactly what digital marketing does. We cannot put a timestamp on our marketing activities because we believe that investing in digital marketing requires continuous effort. Traditional promotion will only include business cards, carefully designed for our URL to be visible.
•
Slogans
Some of our proposed slogans are following: 1. WeAre. – because we are VR 2. WeAre. – explore VR 3. WeAre. – world within an arm’s reach
5.2. Project Key words Here are the thirty keywords for our Google AdWords campaign: WeAre, VR, virtual, reality, tech, technology, techy, tourism, start, up, destination, travel, software, development, new, traveler, advertising, marketing, digital, digitalization, subscription, ads, agency, ad, blog, experience, location, summer, winter, exotic, vacation.
5.3. Google AdWords ad As mentioned earlier, here are the thirty keywords for our Google AdWords campaign: WeAre, VR, virtual, reality, tech, technology, techy, tourism, start, up, destination, travel, software, development, new, traveler, advertising, marketing, digital, digitalization, subscription, ads, agency, ad, blog, experience, location, summer, winter, exotic, vacation. Maximum daily budget for our promotion is 100$, depending on season and number of words used. Maximum cost per click will be set to 1$ and maximum monthly budget for AdWords will be around 1200$ •
Google Ads campaign
Our main goal of Google ads campaign is to gain more traffic on our website. Ads will be written in English and Croatian. Our target market are travel businesses and travel and tech enthusiasts. Below is an example of or Google Ads campaign.
Picture 15 Google Ads campaign example
5.4. Social Networks Advertising Our presence will include following official social media: Facebook, Twitter, Instagram, LinkedIn and Snapchat. Different social media accounts will serve different purposes, meaning reaching different customer segments. We find that Twitter and LinkedIn will play an important role in reaching our business clients, while Instagram and Facebook will serve as a word of mouth promotion tools and brand image building within the wider community, not necessarily including our main customers. There are numerous way to promote our business with the help of social media, both free ones and paid ones. Frequently updating our social media profiles will be in the center of our attention whe it comes to free marketing tools. Alongside numerous posts, we will invest in Facebook ads and Sponsored posts on Instagram. This will bring more users on our website and boost our rank regarding the Google search engine. Our marketing department will be in charge of all social media activity. They will take care of purposeful investing our digital marketing budget on carefully picked posts and quality content on social media. Emphasis is on free promotion, but we want to be present on all platforms and gain higher traffic on our website.
5.5. Marketing Plan Table No . 1.
Promotion type
Promotion web address
Banners, popups - PPC
Partner websites: https://www.valamar.com/hr/ https://www.oculus.com/
2.
Google Ads
https://ads.google.com/home/ continuous advertising
1200$ per month
3.
Blogs, affiliate links
e.g. https://www.worldviz.com/virt ual-reality-blog
continuous advertising
max 500$ per month
4.
Newsletter
/
continuous advertising
free
5.
Video Ads
https://www.youtube.com/
continuous advertising
average costper-view of $0.010 – $0.030
6. DIGITAL PAYMENT METHODS 6.1. Digital Payment Methods List •
Banking cards
•
UPI (unified Payment Interface)
•
Mobile wallets
•
Internet banking
Promotion period continuous advertising
Costs 3-20 cents per click
Promotion description continuous investment in display advertising on our partner’s web sites continuous investment in google ads and keywords continuous promotion of our website via affiliate links posted on blogs connected to our business copywriter material customized for our newsletter subscribers, both free users and business clients video ads posted on YT, strategically placed on content related to our business
•
Mobile banking
6.2. Digital Payment Methods Description 6.2.1. Banking cards Internet paymets via banking cards are familiar to most users. We will enable our customers to pay for our service via following cards: American Express, Maestro, Visa and Mastercard. The process consists of entering customers information in a payment specialized interface on our webpage or app, meaning name, surname, IBAN, card expiration date and cvv code.
6.2.2. UPI (Unified Payment Interface) The Unified Payment Interface (UPI) can be thought of like an email ID for your money. It will be an unique identifier that your bank uses to transfer money and make payments using the IMPS (Immediate Payments Service). The interface will allow account holders across banks to send and receive money from their smartphones using just their Aadhaar unique identity number, mobile phone number or virtual payments address without entering bank account details. This payment option is available for our more conservative customers which do not want to share their banking card information on the internet.
6.2.3. Mobile wallets A mobile wallet is a virtual wallet that stores payment card information on a mobile device. Mobile wallets are a convenient way for a user to make in-store payments and can be used at merchants listed with the mobile wallet service provider. If customers decide for this payment option, we will allow the to pay via GooglePay service.
6.2.4. Internet banking Online banking, also known as internet banking or web banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website. Without entering their
credit card nuber on the internet, our customers will be able to deposit the amount directly into our account. Example for this method is Erste Net Banking. 6.2.5. Mobile banking Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet. Same as with internet banking, without entering their credit card nuber on the internet, our customers will be able to deposit the amount directly into our account. Example for this method is Erste mBanking.
6.3. Blockchain tehnologies Since we are in the virtual reality business, we have to think how to link the two and make sense of it. When paired with virtual reality, blockchain opens up new frontiers for education. It will help provide three-dimensional educational experiences and help make clearer hard-to-grasp concepts. Blockchain has the ability to make all the curriculums available through blockchain-linked databases that will allow class members to access secure and interactive course materials by verifying their identities.
7. PROJECT SWOT ANALYSIS
8. PROJECT WEBSITE 8.1.
Web Hosting and Web Domains
8.1.1. Project Web Hosting Since our initial plan is to create our website using WordPress.com, we want to make sure that our hosting pick compliments our CMS choice. We decided for HostGator.com which offers specialized WordPress hosting solutions, such as ‘’WordPress Hosting’’. They are the best option for high traffic websites that need faster loading times. HostGator WordPress plan should make your site faster across different regions, especially for mobile users. Their last 12-month average load time is 369 ms and uptime more than 99.99%. Their total yearly downtime was only 22 minutes, which is rather outstanding. They also offer free site
migrations with all of their plans. All of their plans come with unlimited bandwidth, storage and email accounts. Although their introductory prices are cheap, starting from $5.95 per month, their renewal fees are higher at $9.95 per month. 8.1.2. Project Web Domain 8.1.2.1. .hr Domain We decided for a commercial web domain extension which will be described in the next section. 8.1.2.2. Commercial Domains Our domain pick is thewearevr.com. We opted for this domain name because it contains our full company name and states that we deal with virtual reality related business. We chose .com extension because it is the most common and trusted. We didn’t got with .hr extension because we want to expand to foreign market eventually, and we think that having a website with a domestic extension would not fit in with our mentioned goal. Below is a screenshot proving that our domain name is available.
Picture 16 Domain name: available
8.2. Content Management System 8.2.1. Possible CMS for Project •
WordPress, https://wordpress.com/
WordPress is a free and open-source content management system (CMS) written in PHP and paired with a MySQL or MariaDB database. Features include a plugin architecture and a template system, referred to within WordPress as Themes. WordPress was originally created as a blog-publishing system but has evolved to support other types of web content including more traditional mailing lists and forums, media galleries, membership sites, learning management systems (LMS) and online stores
•
Wix, https://www.wix.com/
Wix.com Ltd. is an Israeli software company, providing cloud-based web development services. It allows users to create HTML5 websites and mobile sites through the use of online drag and drop tools. Along with its headquarters and other offices in Israel, Wix also has offices in Brazil, Canada, Germany, India, Ireland, Lithuania, United States, and Ukraine. Users can add social plug-ins, e-commerce, online marketing, contact forms, e-mail marketing, and community forums to their web sites using a variety of Wix-developed and third-party applications. The Wix website builder is built on a freemium business model, earning its revenues through premium upgrades.
•
Drupal, https://www.drupal.org/
Drupal is a free and open-source web content management framework written in PHP and distributed under the GNU General Public License. Drupal provides a back-end framework for at least 2.3% of all websites worldwide – ranging from personal blogs to corporate, political, and government sites. Systems also use Drupal for knowledge management and for business collaboration.
8.2.2. Best CMS for Project – Description •
WordPress, https://wordpress.com/
WordPress is a free and open-source content management system (CMS) written in PHP and paired with a MySQL or MariaDB database. Features include a plugin architecture and a template system, referred to within WordPress as Themes. WordPress was originally created as a blog-publishing system but has evolved to support other types of web content including more traditional mailing lists and forums, media galleries, membership sites, learning management systems (LMS) and online stores. WordPress is used by more than 60 million websites, including 33.6% of the top 10 million websites as of April 2019, WordPress is one of the most popular content management system solutions in use. WordPress has also been used for other application domains such as pervasive display systems (PDS). Regarding the costs, WordPress is offering five deals: •
Free – allows the user to design a website without publishing it, there is no need for hosting and domain.
•
Personal – best for personal use, $4 per month, billed yearly, allows the user to add some personality to their website with a custom domain, and gives them access to email and live chat support.
•
Premium – best for freelancers, $8 per month, billed yearly, allows the user to build unique sites with advanced design tools, custom CSS, and Google Analytics support.
•
Business – best for small businesses, $25 per month, billed yearly, allows the user to power their business with custom plugins and themes, 200 GB storage, and 24/7 live chat.
•
E-commerce – best for online stores, $45 per month, billed yearly, allows the user to open their online store with a powerful, flexible platform designed to grow with their business.
We are going to use the ‘’Business’’ option since the description fits perfectly with what we need in a website.
8.3. 8.3. Website Prototype 8.3.1. Project Website Structure
Picture 17 Web: Homepage
Picture 18 Web: Homepage 2
Picture 19 Web: About us, Mission
Picture 20 Web: About us, Vision
Picture 21 Web: About us, General
Picture 22 Web: Our projects 1
Picture 23 Web: Our projects 2
Picture 24 Web: Careers 1
Picture 25 Web: Careers 2
Picture 26 Web: Contact 1
Picture 27 Web: Contact 2
8.3.2. Project Website Sitemap
Picture 28 Website Sitemap
8.3.3. Project Website Structure Description As presented in previous sections, our website is set up intuitively. The user can access any section by clicking on the wanted item in the menu bar which is located on the top of the page. •
Our Homepage holds brief information about our business and latest items which are updated on our website, such as new blogposts and information about current recruitment process.
•
‘’About us’’ section holds a drop down menu with our ‘’Mission’’, ‘’Vision’’ and ‘’General’’ information about the company. Those three categories are separated and for each of them we customized different webpages.
•
‘’Our projects’’ section hold information about our own project, WeAre. travel app. It holds a brief description of our app and urges the reader to download it via App Store od Google Play Store.
•
‘’Careers’’ section hold newest information about open positions and a form for our potential candidates to fill out.
•
‘’Contact’’ section urges the user to either leave some feedback, submit a business proposal or leave any kind of message regarding their thoughts on us as a company.
9. CONCLUSION Through this detailed description of our project idea we presented a strong business opportunity for us and our potential clients. To conclude this paper we would like to state that we strongly believe in the success of our business. Given the information above, we are confident that this particular project will attract investors, seem like a good business opportunity for other companies and will cause interest within the wider public such as tech enthusiasts. We covered all the essential steps for starting a business, described each step in great detail and provided prototypes for both our application and website. All of the information given in this project report is based on our own vision of how a startup should conduct preliminary research about important points when it comes to starting a company.
10. 10. BIBLIOGRAPHY 11. LIST OF WEB LINKS •
https://websitesetup.org/best-wordpress-hosting-performance/
•
https://www.ionos.com/domaincheckresult
•
https://kinsta.com/knowledgebase/content-management-system/
•
https://www.canva.com/templates/EADaoKt1WSk-whit-and-black-minimalisttropical-email-newsletter/
•
https://wordpress.com/
•
https://www.wix.com/
•
https://www.drupal.org/
12. LIST OF FIGURES Picture 1 Ap: Initial screen ...................................................................................................... 32 Picture 2 App: Sign in screen ................................................................................................... 33 Picture 3 App: Homepage ....................................................................................................... 34 Picture 4 App: 360° experience ............................................................................................... 35 Picture 5 App: Go VR/premium interface ............................................................................... 36 Picture 6 App: Shop/offers interface ...................................................................................... 37 Picture 7 App: Payment process interface .............................................................................. 38 Picture 8 Reward ad, example ................................................................................................ 39 Picture 9 Facebook profile ...................................................................................................... 40 Picture 10 Author LinkeIn profile ............................................................................................ 40 Picture 11 Twitter profile ........................................................................................................ 41 Picture 12 Instagram profile .................................................................................................... 41 Picture 13 Snapchat profile ..................................................................................................... 42 Picture 14 Newsletter example ............................................................................................... 45 Picture 15 Google Ads campaign example .............................................................................. 47 Picture 16 Domain name: available ........................................................................................ 53 Picture 17 Web: Homepage .................................................................................................... 56 Picture 18 Web: Homepage 2 ................................................................................................. 56 Picture 19 Web: About us, Mission ......................................................................................... 57 Picture 20 Web: About us, Vision............................................................................................ 57 Picture 21 Web: About us, General......................................................................................... 57 Picture 22 Web: Our projects 1 ............................................................................................... 58 Picture 23 Web: Our projects 2 ............................................................................................... 58 Picture 24 Web: Careers 1....................................................................................................... 59 Picture 25 Web: Careers 2....................................................................................................... 59 Picture 26 Web: Contact 1 ...................................................................................................... 60 Picture 27 Web: Contact 2 ...................................................................................................... 60 Picture 28 Website Sitemap .................................................................................................... 61
13. AUTHOR CURRICULUM VITAE VITAE
14. 14. ABSTRACT This paper delivers a detailed business plan containing nine chapters through which we explained and summarized our research regarding starting our own company and launching our first project. First chapter introduces the reader our idea and shortly describes our ebusiness model. Chapter two deals with a more detailed description of our project, including our mission, vision and project goals. Alongside, it holds detailed analysis of implemented innovations and mentions our top five competitors. Chapter three gives the reader insight in our digital business model and concerns our main business partners, values, activities, resources, clients, customer relationships, business channels, project starting costs and revenue models. Chapter four showcases functionalities of our mobile application, prototype of the application and reflects on how we plan on implementing digital technologies, such as big data, in our business model. Chapter five gives the reader information about our detailed marketing plan including a marketing plan table with approximate costs. Chapter six explains which payment methods we decided to introduce to our e-business model. Chapter seven showcases our SWOT analysis in the given moment. Chapter eight showcases a prototype of our future website and provides information about our hosting and domain cost, as well as a description of our top CMS picks. Finally, chapter nine rounds up the whole project and concludes our final thoughts.
ATTACHMENTS 1. Registration Form for Website Visitors 2. Newsletter 3. Project Website Screenshots 4. Mobile Application Screenshots 5. Presentation Handouts
Written essay publishing deadline: April 07, 2020
Other terms: June 20, 2020, 1.00 p.m. September 05, 2020, 1.00 p.m.
Student presentations April 07, 2020 - April 21, 2020
WeAre. Innovative use of VR in tourism Student: Anja Đurić Mentor: Božidar Jaković, PhD. Course: EBusiness
C o n t e n t : > 2.5. Competition
1. INTRODUCTION > 1.1. Essay Scope and Purpose
> 2.5.1. Main Competitors
> 1.2. Data Sources and Collection Methods
> 2.5.2. Similarities and Differences with Existing Projects in the Market
> 1.3. Essay Content and Structure
> 2.5.3. Project Competitive Advantage
> 1.4. E-business Model – Short Description
> 3. Digital Business Model
> 2. PROJECT DESCRIPTION
> 3.1. Main Business Partners
> 2.1. Project Detailed Description
> 3.1.1. Main Business Partners List
> 2.2. Project Organization
> 3.1.2. Main Business Partners Description
> 2.3. Project Strategic Background
> 3.2. E-business Model Values
> 2.3.1. Mission
> 3.3. Key Activities
> 2.3.2. Vision
> 3.4. Key Resources
> 2.3.3. Project Goals
> 3.5. Clients
> 2.4. Innovations > 2.4.1. Innovation List > 2.4.2. Project Innovations – Detailed Description
Content:
Content:
4. DIGITAL TECHNOLOGIES
1. Introduction
> > > > >
5. DIGITAL MARKETING 5.1. Project Marketing Plan 5.2. Project Key words 5.3. Google AdWords ad 5.4. Social Networks Advertising 5.5. Marketing Plan Table
> > > > > > > >
6. DIGITAL PAYMENT METHODS 6.1. Digital Payment Methods List 6.2. Digital Payment Methods Description 6.2.1. Banking cards 6.2.2. UPI (Unified Payment Interface) 6.2.3. Mobile wallets 6.2.4. Internet banking 6.2.5. Mobile banking
> 6.3. Blockchain tehnologies > 7. PROJECT SWOT ANALYSIS > > > > > > > > > >
8. PROJECT WEBSITE 8.1. Web Hosting and Web Domains 8.1.1. Project Web Hosting 8.1.2. Project Web Domain 8.2. Content Management System 8.2.2. Best CMS for Project – Description 8.3. Website Prototype 8.3.1. Project Website Structure 8.3.2. Project Website Sitemap 8.3.3. Project Website Structure Description
> 9. CONCLUSION
1. Introduction 1.4. E-business Model – Short Description
1.3. Essay Content and Structure
The idea behind the title is the ability to use virtual reality technology to test out a destination before booking it in a tourist agency. While most goods and services can be either sampled or tested before the purchase, booking a destination in a traveling agency offered no such option. With rapid evolution of VR technologies, there is a gap in the market for virtual reality supported advertising of tourist destinations. This e-business idea consists of developing a software (an app, to be more precise) with features like 360° video material and a VR headset which allows the end user to get an "as realistic as possible" experience of the desired destination. Another feature will focus on a virtual experience of the accommodation which demands partnerships with various hotels and resorts.
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2. Project description
2. Project description
2.2.
2.1. Project Detailed Description
2. Project description
2. Project description
2.3. Project strategic background 2.3.1. Mission
Project Organization
2.3.3. Project goals > 2.3.2. Vision
Increasing market share Developing new products Expanding into new markets Expanding into new locations Increasing efficiency of sales
2. Project description
2. Project description
2.4.2. Project innovations – Detailed description
2.5. Competition
2.4.2.1. VR technology
2.5.1. Competition list
VR technology New advertising tool Cloud-based software Use of VR in tourism
Through the use of images, sounds and other physical sensations, the user is essentially placed within a virtual world, which they can move around and, in some cases, interact with in other ways.
Google Earth VR
2.4.2.2. New advertising tool
Gala360 YouVisit
Kickstarter funding
2.4.2.3. Cloud-based software
2.4. Innovations
VR headsets can allow marketers to go beyond providing basic images, allowing users to actually ‘experience’ the product they are being sold to
Allows for maintenance of software without disrupting the users 2.4.2.4. Use of VR in tourism A way for tourist agencies to offer trials of bookings
Boulevard
Discovery
2.5.2. Similarities and Differences with Existing Projects in the Market Similarities: All of the competitors, including us, are highly focused on tourist destination such as major cities, coastal places and historic travel points. Another priority which can be noticed is the accent on high resolution video material which grants the user a quality experience of the destination. Differences: Our plan is to cover not only travel destinations but localities such as museums and galleries as well. Another added feature is our collaboration with hotel chains and resorts which allow for the user to get a feel of their accommodation. We also plan on expanding our business in the real estate sector which gives us a variety of products, and therefore a bigger market base.
2.4.2.5. Kickstarter funding A global crowdfunding platform focused on creativity, applies a 5%
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2. Project description
3. Digital business model
2.5.3. Project competitive advantage Partnerships Brand image recognition Variety Know-how Intellectual property
3.1.1. Main business partners list Oculus Hilton Hotels&Resorts Valamar Riviera Sun Gardens Dubrovnik Esplanade Zagreb Hotel
Market location
3.1.2. Main business partners description
3. Digital business model
3. Digital business model
3.2. E-business model values
3.3. Key activities
Our core values consist of offering solutions to both businesses and end customers by using innovative thinking and implementing it in our business model. We also want to offer a full service approach when it comes to making business with our clients. Our relationship does not stop when our products is sold.
Development
3. Digital Business model 3.5. Clients
> 3.5.3. Markets and website language
3.5.1. Main client list • Initial market location: Croatia (expanding over time) Atlas Global Travel Palma Travel Jungle Tribe Azur Tours
Website lanugages: English and Croatian (expanding over time)
3.5.1. Main client list – detailed
3.5.5. Registered Client Benefits OR Direct and Indirect Benefits of Free Content
3.5.4. Client registration Website: no registration required App: Fremium model, free content (no registration required) + premium content (registration required)
Direct and indirect benefits of free content
Operations Sales
3. Digital business model 3.6. Customer relationship The development of an ongoing connection between our company and our customers is on the list of our top priorities. Sales team: in charge of finding our potential customers and presenting our proudct as a solution Technitians: responsible for installation of the software and act as a customer service department in cases of possible technical issues Product development team: in charge of maintenance and frequent updates of the software. Mentioned updates will consist of both our propositions and clients proposition regarding possible improvements of the software Marketing team: responsible for our social media and web page, which is an important part of indirect customer relationship practises. They will be in charge of newsletters, responding to inquiries coming from social media platforms and providing our followers with entertaining content which has an educational purpose.
3
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3. Digital business model
3. Digital business model
3.7. Business channels > 3.8. Project starting costs
3.9. Revenue models
Tourism fairs
• Project starting costs with short description and estimated monthly/yearly value is given below: Hosting and domain costs: HostGator.com starting from Newsletter $5.95 per month, renewal fees are higher at $9.95 per Business proposition calls month. Promotion costs: $20 000 in our first year of doing business CMS costs: Wordpress ‘’Business plan’’, $25 per month Hardware costs: $8000 for high quality tech equipment Software development cost: Fullstack developer, monthly pay approx $3000 App development cost: Fullstack developer, monthly pay approx. $3000
3.9.1. Revenue models list
Socil media marketing
Subscription access to App content – freemium model Premium content singles/bundles – offers for premium users, clients Affiliate revenue – collected through our blog Subscriber data access for e-mail marketing – newsletter, promoting partners Sponsorship of website sections – renting web space to ouside businesses
4. Digital technologies 4.1. Mobile technologies
3.9.2. Revenue Models – Detailed Description
4. Digital technologies 4.1.2. Mobile appliction for smartphone decription
4.1.1. Mobile e business Ecommerce business classifications: B2B and B2C Type of ecommerce business revenue model: Subscription Premium content: Singles/Bundles
4. Digital technologies 4.1.4. Graphic of mobile application functionality
4. Digital technologies 4.1.4. Graphic of mobile application functionality
4
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4. Digital technologies
4. Digital technologies 4.1.5. Mobile advertising
4.1.4. Graphic of mobile application functionality
Shop/offers interface
4. Digital technologies
Payment selection
4. Digital technologies
4.2. Social networks
4.2. Social networks
4.2.1. Project Facebook profile
4.2.2. Project Author LinkedIn profile
4. Digital technologies 4.2. Social networks
4. Digital technologies 4.2.4. Project Instagram profile
> 4.2.5. Project Snapchat profile
4.2.1. Project Twitter profile
5
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5. Digital marketing
4. Digital technologies
5.1. Project marketing plan
4.3. Cloud computing
4.7. Robotics
Software maintenance without interrupting the users
Motion sensors in AR and VR gaming can be deployed to train robots
4.4. Big data
Examples of our partner industries are healthcare industry and military training.
Data mininig for decision making: decide how to combine bundles,
4.8. Drones
meaning, which destinations are best • For 360° video material shooting combined to be offered as a set. 4.9. Virtual and augumented reality 4.5. Sensors and IoT Our core business idea allows us to design and offer never > 4.10. Artificial intelligence before seen experiences in VR mode and make the preview of a certain • Possible use of Artificial intelligence might destination or accommodation as realistic be in quick surveys which propose exact as possible. destinations described by the user. Based on user’s wishes and needs, the system will provide them with 4.6. 3D printers three best matches. Printing our own VR hardvare
5. Digital marketing
5. Digital marketing
5.2. Project key words
5.4. Social networks advertising Different social media accounts will serve different purposes, meaning reaching different customer segments. Twitter and LinkedIn: an important role in reaching our business clients Instagram and Facebook: serving as a word of mouth promotion tools and promoting our brand image within the wider community, not necessarily including our main customers.
5. Digital marketing
6. Digital payment methods
> 5.5. Marketing plan table No.
Promotion type
Promotion web address
1.
Banners, popups PPC
Partner websites: https://www.valamar.com/hr/ https://www.oculus.com/
2.
Google Ads
3.
6.1. Digital payment methods list Promotion period continuous advertising
Costs
Promotion description
3-20 cents per click
continuous investment in display advertising on our partner’s web sites
https://ads.google.com/home/
continuous advertising
1200$ per month
continuous investment in google ads and keywords
Blogs, affiliate links
e.g. https://www.worldviz.com/virtualreality-blog
continuous advertising
max 500$ per month
continuous promotion of our website via affiliate links posted on blogs connected to our business
4.
Newsletter
/
continuous advertising
free
copywriter material customized for our newsletter subscribers, both free users and business clients
5.
Video Ads
https://www.youtube.com/
continuous advertising
average costper-view of $0.010 – $0.030
video ads posted on YT, strategically placed on content related to our business
Banking cards UPI (unified Payment Interface) Mobile wallets Internet banking Mobile banking 6.2. Digital Payment Methods Description
6.3. Blockchain technologies When paired with virtual reality, blockchain opens up new frontiers for education. It will help provide threedimensional educational experiences and help make clearer hard-to-grasp concepts. Blockchain has the ability to make all the curriculums available through blockchain- linked databases that will allow class members to access secure and interactive course materials
s
by
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7. Project SWOT analysis
8. Project website 8.1.1. Project web hosting
8.1.2. Project web domain 8.1.2.1. .hr domain 8.1.2.2. Commercial domain
8. Project website
8. Project website
8.2. Content management syste 8.2.1. Possiblle CMS for project WordPress, https://wordpress.co Wix, https://www.wix.com/ Drupal, https://www.drupal.org/ Description
8.3. Website prototype
m
8.3.1. Project website structure
m/
WordPress, Business option - best small businesses, $25 per month, yearly, allows the user to power t business with custom plugins and themes, 200 GB storage, and 24/ chat
Homepage
8. Project website
8. Project website
8.3.1. Project website structure
8.3.1. Project website structure
About us, Mission
About us, Vision
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8. Project website
8. Project website
8.3.1. Project website structure
8.3.1. Project website structure
About us, General
8. Project website
Our projects
8. Project website
8.3.1. Project website structure
8.3.1. Project website structure
Careers
8. Project website 8.3.2. Project website sitemap
Contact
8. Project website 8.3.3. Project Website Structure Description • Our Homepage holds brief information about our business and latest items which are updated on our website, such as new blogposts and information about current recruitment process. • ‘’About us’’ section holds a drop down menu with our ‘’Mission’’, ‘’Vision’’ and ‘’General’’ information about the company. Those three categories are separated and for each of them we customized different webpages. • ‘’Our projects’’ section hold information about our own project, WeAre. travel app. It holds a brief description of our app and urges the reader to download it via App Store od Google Play Store. • ‘’Careers’’ section hold newest information about open positions and a form for our potential candidates to fill out. • ‘’Contact’’ section urges the user to either leave some feedback, submit a business proposal or leave any kind of message regarding their thoughts on us as a company.
9. Conclusion We covered all the essential steps for starting a business, described each step in great detail and provided prototypes for both our application and website. To conclude this paper we would like to state that we strongly believe in the success of our business. Given the information above, we are confident that this particular project will attract investors, seem like a good business opportunity for other companies and will cause interest within the wider public such as tech enthusiasts.
Thank you for your attention!