The future of online interactions: The realisation

V Stage The

Two

Realisation

VIRTUAL REAlITY and SOCIAL MEDIA

CONTENTS Chapter one 1.1 Introduction 1.2 Rationale 1.3 Problem statement 1.4 Aims and objectives

1 3 5 7

Chapter two 2.1 Primary research 2.2 Secondary research 2.3 Research limitations 2.4 Key findings

9 10 10 11

The

Opportunity

Chapter 3.1 Rationale 3.2 The concept

three

16 17

Chapter four 4.1 Why virtual reality?

4.2 Sizing the opportunity 4.3 Key drivers

24 31 28

Chapter five 5.1 Consumer segmentation 5.2 Consumer needs 5.3 The user

36 38 40

Chapter six 6.1 Competitor analysis 6.2 Notable competitors 6.3 Competitive advantage/point of difference Future SWOT

41 43 48 49

The

Business

Chapter seven 7.1 Brand DNA 7.2 The technology 7.3 Brand essence model 7.4 Location 7.5 Commercially viable 7.6 Business Model 7.7 Business strategy 7.8 risk analysis 7.9 launch of the ‘Virtualit-e’ 7.10 Monitoring success

The

54 55 57 58 58 58 59 60 61 63

Communication

Chapter eight Marketing communication plan Chapter nine 9.1 Capital Funding 9.2 Start-up cost 9.3 App development 9.4 Profit and Loss 9.5 Second year sense check Chapter 10.1 The future 10.2 Conclusion References Bibliography List of illustrations Appendix

68

81 82 84 85 87

ten 90 90 93 99 105 109

#Seeing the differently

world

INTRODUCTION

1

1.1 Key insights gained from stage one provided fundamental understanding into the effects of social media on consumers and on individuals in general. The central issue concluded within stage one was a key concept encapsulated in the quote ‘connected, but alone?’ (Turkle, 2012), this idea arose and a sense of disconnection between personal interactions became prevalent in the research. A blurring of lines between online and offline connections means the way individuals maintain relationships and connections becomes less personal and less emotional. The importance of creating a genuine connection between brand and consumer is imperative and yet becoming less attainable because of consumers resistance towards direct advertising and disconnection from each other, how can a consumer maintain a relationship with a brand when they are becoming disconnected from each other. A key quote encapsulating the issue “we are not actually communicating with each other, we are unconsciously communicating lies” (Roschke, 2015). Throughout the research, it was shown this disconnection was causing a need for escapism and lead to the concept of escaping whilst remaining connected, as remaining digitally connected is so imperative within society. Virtual reality was a natural extension of digital connectivity and will be further explored during this project.

Leading to the idea that a product/service could be provided that would keep individuals connected in a world where this so vital, but offer a sense of escapism and a more personal, sensory experience. During this project the objective will be to create the plan for a commercially viable, innovative new social media platform.

2

1.2 This topic is highly important to marketing and branding, in terms of being cognisant of the future and prepared for the possible changes in communication between the brand and consumer. Successful communication is one of the most vital components of a brands health and prosperity.

Through the research in stage one, it became evident that the change in the way consumers perceive advertising, means there has to be a change in the process of consumers connecting with brands. This produces a need for brands to have a social media platform they can successfully utilise to connect with their consumers in a genuine and sensory way, as the lack of trust in brands grow.

3

RATIONALE

4

PROBLEM STATEMENT

5

1.3 The disconnection from offline and online lives is diluting the relationships individuals have with each other. The difference between the personas portrayed online to how individuals are in reality can cause a misconstrued idea of how lives ‘should be’. Stage one primary research demonstrated the comparisons made with online personalities or accounts often caused self-esteem issues, often times the people they would compare themselves with were portraying a lifestyle not often realistic. Online lives and profiles give individuals an opportunity to edit themselves and what they say, creating a lack of genuine and real portrayals. Therefore this causes an issue of what is more important, the life you portray online or the life you live offline. This problem then leads to a change in how a brand should communicate with consumers, their marketing and advertising conducted over social media must be more genuine and believable if a brand wishes to connect with its consumer. A genuine emotional connection contributes to the health of a brand, therefore excelling a brands success. Research from stage one made it evident that there was a gap in the social media market for a platform where individuals and consumers can connect in a more genuine way, and not just upload pictures and statuses that can be manipulated. Further research revealed virtual reality was a developing technology that would enable consumers to have experiences in ways that have never been imagined before (Elgan, 2015). Research presented that combining these two ideas would create a product or service that would offer something to a society that is becoming an experience driven culture, craving increased sociability.

6

AIMS AND OBJECTIVES

7

1.4

Objectives:

• To explore if a social media platform combined with virtual reality could create a futuristic personal and connected experience.

• To create a software that aids brands with a tool to create a more genuine and emotive experience which increases consumer interaction.

• To thoroughly understand what consumers want from social media which will help develop ‘Virtualit-e’.

Aims:

• To understand consumer expectations of the future for personal and virtual technology for social media.

• To produce a social media platform which enables consumers to experience social media in an inspirational and personally connected way.

•

To humanize social media to enhance users online portrayal.

8

2.1

Primary

research

Method

Sampling

Data was gathered through means of 4 semi-structured in depth interviews

Individuals that are heavily active on social media within the millennial generation

Industry expert interviews

Industry expert from technology and coding field

A focus group

Consisting of 4 individuals

The researcher attended the annual wearable technology show 2016 at Excel, London

The show enlisted 138 companies to exhibit and which 4,874 people attended the trade show.

Why? Qualitative in depth interviews were set like a conversation where the interviewer set a general direction and followed specific topics raised by the participant (Zhang and Wildemuth, 2009).The participant did most of the talking and this is a method of research that enables the researcher to gain key insights into individual’s opinions and evaluations on a particular topic. In this case, the participants were potential users of ‘Virtualit-e’ enabling the participant to give honest answers with time to develop and give reasons. The aim of these interviews, was to find out what consumers expect from social media, and likeliness that individuals would be interested in ‘Virtualit-e’.

This research Helped to develop informed and practical solutions to inform parts of the business concept and marketing plan. In this method, the interview gained the experts specialist knowledge in the virtual reality and coding technology field.

Nonetheless, when interviewing an expert in a particular field it is harder to organise because of time restrictions on their behalf.

Held at Nottingham Trent University, Boots library. The focus group was made up of individuals between the ages of 21 and 27 who are active and highly involved with social media platforms. The aim of this method of research was to gain consumer insights and opinions on social media and virtual reality, to inform elements of the business concept ‘Virtualit-e’.

There were multiple different vendors that were showcasing VR and AR technology. In particular social VR companies were present. The researcher was able to interview and gain information on the companies present and create industry contacts.

2.2

Secondary

research

For this report, it was important to gain current and up to date research. The secondary data collection started with identifying the existing credible sources, which gave the researcher insights into the evolving world of virtual reality.The importance of future thinking within this particular topic meant the researcher had to explore many sources and literature that could provide insights into creating a future proof brand. The research comprised of books, press releases,TED talks, news articles and online sources.

Evaluation of the research will help to highlight if and where there is a subsequent market and consumer need for a business that will aim to humanize social media and in turn help uphold genuine relationships online. Secondary research helped to understand and confirm primary research findings into consumer needs, consumer expectations and behaviour.

2.3 Research limitations

The researcher did not undertake a survey for stage two as it was decided that the participants couldn’t be regulated and they may not be a part of the already established target consumer group.

Hence the decision to carry out one to one interviews and focus groups. A possible limitation of the focus group, it may not be a true representation of the larger population as it is a small sample size. This was overcame by the fact the participants were part of and truly represented the target demographic.

2.4

Key

findings

Focus group (1)

Findings influenced the business concept and provided key opinions from possible end users of the business concept.

Expectations of social media from the target users included high quality images and video and a connected experience. All respondents would be willing to experience different ways of communicating online. Speaking on the future, respondents claimed they expect video, improvements on sound and visuals and predicted social media to become one of the most powerful marketing tools. Finally, respondents and possible end users claimed they would not feel comfortable using virtual reality headsets on an everyday basis. This lead to finding technology that could be utilised without headsets.

Focus group (2)

The focus group helped to gain potential users awareness and opinions on the combination of virtual reality and social media.

The focus group showed users expected an improvement in visual experiences and connections. Concept shared with users, gave insights including opinions that they could see the future of social media including virtual reality.

Interviews

Key findings that helped to establish the business concept came from interviews. Possible end users of the business claimed they expect HD/3D video calls in the future for social media as well as users expecting interactions to be more genuine and transparent.

12

The Opport unity

15

RATIONALE

3.1 Research has shown there is a need for a more genuine social platform, as outlined throughout the report. There has to be a change within social media, to humanize and revive true human connections and online portrayals.As explored during stage one, social media in its existing condition has resulted in decreased significance of physical presence and experience of being within people. In order for individuals to truly communicate in a personal way to restore real connections, body language and tone of voice needs to be exhibited as tone of voice is vital when communicating. This product development will allow individuals/consumers to connect with each other in a more personal and connected experience, not currently possible in all existing social media platforms.

Therefore becoming a platform for brands to utilise to communicate with consumers and execute campaigns as well as a platform for personal relationships and friendships.

Business

objectives:

• To become a leading social media platform gaining market share within the mass market •

To obtain 7000 users during the launch week

16

THE

CONCEPT

Leading to the opportunity, ‘Virtualit-e’, it aims to be a fire starter within the industry. As a platform where consumers can connect with brands in a new way. Using innovative and emerging technology to humanize the digital world.The aim will be to create an experience over anything. “People don’t buy what you do, they buy why you do it” (Sinek, 2010).

The importance of humanizing the digital world and increasing the significance of online relationships remains at the core. An ultimate goal will be to reconnect the consumer with the brand, this has to be genuine. A key competitor ‘Snapchat’ has achieved high consumer interaction, the aim will be to become another key platform brands will use to connect with their consumers (see appendix 8).There will be no framing Instagram pictures to portray a certain look as anybody will be able to navigate the room or surrounding. The ‘Virtualit-e’ will be a free service for individuals, as this is important when creating trust and rapport with the consumer of the platform. Secondary to the main aim, becomes the importance of becoming a front runner in the social media market as a new platform differentiating itself from competitors.

The social media platform will be designed around the idea of allowing real social interactions, often lost in the new digital age. Stage one indicated the need for a platform where communication could be more personal and further research within stage two confirmed the need and revealed there is an existing consumer base. Using innovative technology, and a personal device (smartphone) with 96.8 percent of new smartphones sold being either iPhone or Android (compatible with VR). The free application will be tactile, with a simple design and aesthetic. Using consumer insights, the most popular elements of social media platforms will be combined with VR technology. Ultimately, the ideal technology remains in early stages of development and in order to stay true to the core values of ‘Virtualit-e’ there must be a progression within the technology.The future of the business will be lightweight VR technology. Further primary research found technology that can be utilised for the early stages of ‘Virtualit-e’ with a plan to progress outlined in the business strategy. The technology is further explained in chapter 7. The application will create a seamless experience where connection is key. The features were decided through consumer research. It was decided the applicability of the feature for the app, they will include; live hangouts in personal locations, live broadcasts with online personalities, celebrities etc., live event coverage and voice calls with live (3D) video (watch a video/ event together). A key feature that can ensure a faster user growth rate, will be the ability for users to automatically send friend invites, research showed this feature enables large increases in numbers and continued growth (Dawson, 2014).

IMMERSIVE

SEAMLESS

EXPERIENCE

18

CONNECTION

IS

KEY

3D

AND

LIGHTWEIGHT

VR

Virtualit-e available on Apple App Store

#Virtual Rea Social Media

lity

and

4.1 Why Virtual social media?

Reality

and

As introduced during stage one, the future may be virtual. These points help to identify how virtual reality can offer a solution to the problem identified. Key insights from the research influenced decisions on aspects of ‘Virtualit-e’, ensuring the concept is user friendly and fits in with the current culture.

Humans

are

social

creatures

People are naturally social creatures. Psychology shows that much of what goes on inside the human mind is designed to help the person relate to others (Baumeister and Bushman, 2009). Proving a natural social imperative to communicate with others, hence the popularity of social media platforms. There are currently 1.55 billion users of Facebook, showing the sheer popularity and attraction to social networking. In terms of the problem statement this shows the amount of people relying on the digital world to uphold relationships but more importantly it identifies a market for ‘Virtualit-e’. Consumers rely on communicating, most of this is done via personal devices. (eMarketer, 2015).

Importance

of

body

language

Mehrabian explains a famous statistic in the communication field, 93% of all communication is non-verbal (Yaffe, 2011). Some theorists disagree with that number, this can be looked at as more of a figure than a genuine representation.The theory relates only to communicating about emotional feelings not all communications. The overall key point is that a majority of our communication isn’t done verbally. Non-verbal cues combined with inflection are key in understanding what someone is saying, what they are trying to get across and more integral the personality and the person behind the words (Mason, 2015). This is further supported by primary research, participants of interviews that didn’t use social media explained a key reason for not, was the fact that words could potentially be misconstrued.

24

The

beginning

of

the

virtual

world

Top brands have begun to adopt virtual reality, with some introducing commercial products within the next few years. Facebook acquired the virtual reality company, Oculus VR. They released an app called Oculus Social Alpha. Samsung Gear VR headset is required as well as Samsung smartphone (Elgan, 2015). Inevitably, leading brands in innovation, Apple have recently hired a top expert in VR. CEO of Lieberman Research Worldwide, David Sackman explained during a TED talk event, the reason why virtual reality becomes relevant now is due to the increase in computing speed, the decrease in cost of computing and finally the size of the headsets have become more wearable In the last year or so with the introduction of Oculus rift and Samsung Gear VR (Stables, 2016). Although key insights from primary research revealed a majority of the potential consumers of the business concept would not be willing to wear VR headsets on a daily basis, they found them inconvenient and uncomfortable (app focus group), this research influenced the technology later decided upon discussed in chapter 7.

Cultural

trends

It is important for the business concept to fit into new cultural trends and shifts. Entertainment has been a source of escapism for many years. This idea of entertainment being a getaway, is growing and becoming even more prevalent (Capps, 2015). The cultural landscape will be defined by technological developments.

The

solo

self

Driven by the fact that a quarter of UK households are single person households. With the introduction of VR technology such as Oculus Rift, is creating more solo experiences, while making it easier to share your experience and life with other all over the globe. Being alone no longer means being lonely (Quoirin, 2016). As individuals in society they are learning how to cope with longer ‘alone’ hours. Stage one research showed that there was a disconnection and a lack of being within each other, this issue is being recognised and it is clear there is a need for a middle ground between digital connection and genuine relationships and accepting the new reality that there is a shift in how much time individuals are spending ‘alone’.

26

27

The

future

market

The VR Social market (not yet established) in its present condition is highly penetrable, there are only a small amount of commercial level introductions of VR products within social at the moment. The current time is prime for new introductions as the market may become more penetrated in the future. Although the market has not been established as of 2016, there are some estimates on the potential VR market as a whole, Market studies suggest that the consumer virtual reality market will be worth anywhere from $1bn this year to $5.2bn in 2018, and even $15.9bn by 2020 (Cook, 2016).

Key

drivers

Research shows the potential size of the future VR market. There are multiple drivers of the market that will ensure the transition from 2016’s early adopters to 2020s mass consumers. As the future consumers rely on and expect certain attributes from technology and mass market products there are multiple factors identified that will drive the market forward to potentially achieve its $150 billion worth by as early as 2020 (Digi-Capital, 2015).

Mobility, this means the ability for all day battery life, untethered platforms, quality service and data. Users of VR will need to adapt to use VR in everyday life, in controlled environments (home, office, train, and plane).

Vision, In order to reach mass market users cannot experience individual pixels or eye strain, meaning image resolution etc., needs to meet a certain standard that consumers have grown to accept.

Wearability, mass consumer technology is easy to use and doesn’t involve compromise.

Finally, affordability, the price has to reach a point where it is reasonably priced. Each of these factors will evolve over time and should be taken into consideration with any prospective VR businesses.

28

#Sizing

The

Opportunity

4.2

Sizing

the

opportunity

A key element to consider is whether there is a current market for ‘Virtualit-e’ and in order to measure this, extensive analysis of the market must be done. This will show there is a market that has sufficient volume and value for an innovative social media platform that specialises in communication. As ‘Virtualit-e’ is a fairly new product to be introduced on a commercial level, there is not already an established specific market, it means dealing with future thinking and estimations. Therefore ‘Virtualit-e’ can fit between two current markets; IoT markets and social media market.

The

internet

of

things

market

The Internet of Things (IoT) market is a market that has been established for the most ‘hyped’ new technologies. Although emerging technology markets are not new, IoT has surged due to media coverage and other factors such as supplier attention, technological advances and increasing demand. Hal Varian, Chief economist at Google believes that, “The price of sensors, processors, and networking has come way down. Since WiFi is now widely deployed, it is relatively easy to add new networked devices to the home and office” (Baho, 2015). Technological advances and decline in cost of component technologies will encourage the development of new innovative products as it becomes more commercially viable.

An existing example of this can be found in consumer demands for smartphones, sales went from about 170 million devices sold annually just 4-5 years ago to more than a billion devices in 2014 (Bauer, 2014).

The growth proves that the IoT market is an attractive market and shows market potential. Research from James Bryzek, VP at Fairchild Semiconductor estimates new forecasts regarding the IoT opportunity. The market has the potential to add $10 to $15 trillion to global GDP over the next 20 years. Although this is very much future thinking, Gartner research estimates that IoT products and service suppliers will generate revenue exceeding $300 billion in 2020 (Gartner, 2014). To further support this future thinking and the potential growth of the IoT market. Juniper Research released an estimate that is actually UK based, they expect a surge to 38.5 billion IoT related connected devices in use worldwide by 2020 (Juniper, 2016).

The

social

media

market

Another market that is imperative to understand, is the social media market. This market is so well established with a core group of platforms that remain at the top holding majority market share. These statistics as of January 2016 show the sheer volume of the market on a global scale, there are 2.307 billion active social media users showing a 10% increase in growth since January 2015. There has also been significant growth in the amount of active mobile social users, 17% increase on 2015 (Chaffey, 2016), showing an increase in ‘on the go’ more consumers are interacting with social media and using personal devices everywhere, showing the importance of creating a mobile product.

The

UK

Within the UK as of January 2016, there are 38 million (59%) active social media users and 33 million (51%) active social mobile users. The top active social platforms, supports the fact that there is a market for a communication/messenger based social media platform (Virtualit-e) within the UK; Facebook, Facebook Messenger, WhatsApp, Twitter, Instagram and Skype. As well as 43% of the population using mobile messengers. Proving there is sufficient volume within the market (Chaffey, 2016).

Value Regarding value within the market, Facebook retains majority market share with 79.49%. Followed by Twitter at 8.49%. Changes made to business models within Instagram and WhatsApp in January 2016 may change the outlook of the market. Instagram is adapting to push advertising offering towards small businesses, enabling them to target their marketing at particular users. As well as international expansion. Analysts have suggested the app could generate between $1.2bn and $2bn in revenue in 2016, with monthly users rising to a possible 520 million by the end of 2016 (Ahmed, 2016).

#Who’s

The

U

ser?

35

5.1 Consumer

segmentation

Millenials Key insights gained from stage one, showed that millennials and technology go hand in hand. They are the generation most affected by social media and engaged with the internet, otherwise known as digital natives. The consumer group spend the most amount of time on digital media than any other generation. Born between 1980 and 2000, millennials are highly engaged with technology. The primary research obtained identified this generation as the most solitude, in terms of their disconnection from personal relationships as discussed earlier in the report.

Secondary research estimates 74% of online millennials are active on social media (PewResearch, 2013) and that is still growing with Facebook remaining the ‘home base’. Primary research revealed millennials are often willing to try new social media platforms when introduced by friends and word of mouth. (appendix focus group). Therefore Millennials have been identified as the target age demographic of ‘Virtualit-e’.

Furthermore it is was identified that there was a possible secondary target audience, research argued that generation Z are the future consumers of innovation, these consumers can be characterized into four trends: 1) A focus on innovation, 2) An insistence on convenience, 3) An underlying desire for security, and 4) A tendency toward escapism (Wood, 2011). These trends correlate with the basis of the business concept, as a generation they are highly prone to escapist consumption activities and have a high level of comfort within the virtual world, the internet has always existed in their lives thus having high expectations for technological advances “more, smaller and better”. Meaning a natural relationship could possibly be formed between generation Z and virtual reality, therefore becoming a secondary target consumer of ‘Virtualit-e’.

36

The Consumer

5.2 Consumer

needs

Through extensive research there were a number of needs and aspects of the consumer of ‘Virtualit-e’, the consumer is ultimately being affected by the initial problem of disconnection and these consumers have specific traits and ideas influencing them. These aspects of consumer needs include…

Importance

of

creating

emotional

connections

Building an emotional connection with the consumer is imperative, a lot of real emotion is lost within the way people are connecting currently with social media. Providing an experience that is worthwhile for the consumer, means engagement rates can grow. Over 50% of an experience is based on emotions. A brand could benefit from a platform that could help build emotional connections by communicating in real time and with genuine interest in the consumer. Relating back to social media being a platform for brands and consumers to connect, by building these connections a brand can ensure that customer relationships get stronger and last longer (Berenbaum, 2016).Today’s service providers need to develop and demonstrate higher levels of emotional competency, explained in ‘The Experience Economy’ today’s consumers expect to be “positively, emotionally and memorably impacted at every level of their commercial existence” (Pine and Gilmore, 2011) meaning consumers can be engaged in a ‘personal’ way.

Experience

culture

It was recognised that there are Consumers that want a ‘different’ experience, society is less constrained and individuals are now keener and more tolerant to diversity and open to trying new experiences. Today, consumers expect brands to focus on experience, this should begin at the core of the company. Raymond, 2003 explains consumer behaviour within this culture “Experience culture and increased sociability: more tolerant of ‘difference’ and keener on ethnic, social and sexual diversity, keener on trying new foods, new holiday destinations and experiences.” (Raymond, 2003) Further explained by Pine and Gilmore in ‘authenticity’, “there is no need to avoid staging experiences, even virtual experiences, now that authenticity is the foremost consumer sensibility” (Gilmore and Pine, 2015). Authenticity is now as important as availability, cost and quality. Companies that consumers interact with must reflect their personality.

Technology

adoption

curve

The technology adoption curve shows how and when consumers interact with new technology. It is a theory about how individuals and organizations behave in implementing innovative technologies. The model is split into 5 segments of consumers; innovators, early adopters, early majority, late majority and laggards. It is important to be able to identify which part of the curve the target consumers fall into. In the context of ‘Virtualit-e’, an innovative new social media platform implementing new virtual reality technology this model will be crucial in making sure there is a consumer segment, ensuring commercial success and brand health. Virtual reality is a fairly new innovation but has now integrated into the early stages of commercial products for example Samsung oculus, although it still remains at the beginning stages of innovation and the technology adoption curve as it is somewhat imperfect and expensive. Realistically the technology remains with the innovators and enters the early adopter’s stage. By the time the big idea is executed it could be estimated virtual reality will have entered the early majority. Early majority are influenced by productivity issues and conformity, from primary research often the reason why a consumer will download or interact with a social media platform is because their friends have joined and they want to be involved. (appendix to focus group) 38

5.3

User

profile

The target user will be aged between 18 and 28. They are digital natives, who are inspired by technology and influenced visually.They expect a certain level of technology and lead a highly active social life whilst attempting to uphold relationships all over the globe.The user lives life in the fast lane and is constantly on the go, utilising the newest technologies and products to improve their everyday lives.

40

6.1

Competitor

analysis High market share

Gap in the market

Existing Technology

Innovative Technology

Low market share

41

Perceptual

Map

The perceptual map identifies viable gaps and presents a significant market opportunity for an innovative social platform that retains high market share. Having multiple high share holding companies at the top of the map shows there is a high competitive barrier, further concreting the idea that the new business concept should be highly innovative in order to differentiate itself from its competitors.

42

6.2 Notable

competitors

Snapchat Consumer research identified Snapchat to be the most popular, genuine social media platform currently as of early 2016 (Statt, 2013). Snapchat is good for being genuine - it is what it is.

Likeable to Periscope being a live video platform it also appears more genuine than other platforms, albeit it is arguable that it isn’t being used to the best of its ability. (Charnock, 2016).

It’s also worth noting that Snapchat is technologically significant. Its use of augmented reality ‘lenses’ to create a mask for the user to ‘wear’ may not be innovative in itself, a plethora of apps do this, but to make it a part of live communication is unusual. Although Google Hangouts do it too, it has made AR truly mainstream. Snapchat are also monetising the lenses – Samsung has recently sponsored a Snapchat lens to showcase Samsung Gear VR. In terms of social media competitors, snapchat and periscope are the closest competitors taking steps towards the high tech, immersive social channel that ‘Virtualit-e’ aims to be.

Followed closely also taking steps towards it are vTime and AltspaceVR - the first two VR social networks. VTime is based in Liverpool while AltspaceVR is Californian. Both are garnering users in the 10,000s, with the use of cartoon avatars that seem to lack a ‘real’ or lifelike appearance.

43

44

vTime According to vTime it is ‘the first VR sociable network that allows anyone, anywhere to socialise with family and friends in virtual reality. Using just a smartphone and a VR headset, vTime allows you to meet, chat and interact with friends, old and new, near and far, in breathtaking virtual locations. The future is already in your pocket.’ The primary research allowed the researcher to try the software first hand and disadvantages of the app were that the locations and avatars are cartoons, so although the app offers real time communication it is not necessarily bringing together individuals in a ‘real’ way, this is the same within its competitor AltspaceVR. The app also causes the user eyestrain and a lack of balance after minutes of using the VR headset, meaning users can’t use the app anywhere it has to be in a controlled environment.

46

47

Oculus

Social

Alpha

A competitor of ‘Virtualit-e’ is Oculus Social Alpha owned by Facebook, it has a substantial platform and backing by an already credited and arguably popular social media platform. Mark Zuckerberg has begun the transition of Virtual Reality from gaming to a socialising tool. On Oculus Rift he comments, “is a really new communication platform. By feeling truly present, you can share unbounded spaces and experiences with the people in your life. Imagine sharing not just moments with your friends online, but entire experiences and adventures” (Russell, 2014).

AltspaceVR AltspaceVR offers a way of experiencing VR in a social way. Allowing the users to create customised avatars and spaces.

An emphasis on creating an open, collaborative experience for all of its users. They can chat, play third-party games or watch YouTube and Netflix together. The app uses a VR headset, the first to be made available across multiple platforms.

Again, similar to its competitor vTime, downsides include the need for the use of VR headsets which according to primary research are not convenient or tactile.The cartoon avatars could be interpreted to also decrease the genuineness of the app.

6.3

Point

of

difference

Differentiating itself from its competitors is a key area of the business concept. Using technology that does not require headsets means a user can experience virtual reality in a tactile and mobile way. The application can be used in less controlled environments in comparison to its VR competitors. As well as the use of real locations rather than virtual locations, making the experience much more personal.

48

SWOT

This SWOT will show the potential strengths, weaknesses, opportunities and threats for the future business concept.

Potential opinions

Genuine

First VR social that will be fully genuine, with no use of avatars or cartoon environments. Truly connecting users in a more personal way

poor

brand

Potential poor reputation amongst consumers if first impressions of the service are not positive.

Platforms

New

Hard to maintain a consistent experience due to the wider variety of form factors and OS devices on Android iOS approval process can take longer than two weeks and can be quite restrictive on data sharing and advertising

One of the first of its kind, the business concept will be one of the first companies to combine social with VR. Free

The use of the service will be available over multiple platforms and will also be a free service to its users Enhanced

connections

The possibility of increasing the users connections, friendships and relationships could contribute to an overall more connected society

Fig 3: SWOT Analysis

S

W 49

ANALYSIS

From the SWOT it was decided to launch ‘Virtualit-e’ app on multiple platforms (Android and iOS) to avoid any of the issues listed.

Global

expansion

Technology

If there is notable success within the UK, global expansion is part of the future business strategy.

The need for certain technology that is not currently advanced enough for commercial use. Lightweight VR is still in production stages meaning alternative technology should be considered in the meantime.

Acquisition

As a result of expansion, there will be an increase in amount of users. The business can be acquired by a larger company. E.g.

Facebook acquired Instagram and WhatsApp.

Consumer

acceptance

Despite thorough consumer research, there is a chance that consumers may not accept ‘Virtualit-e’ as positively as would be hoped. Potential poor reputation amongst consumers if first impressions are poor.

Already established competitors

‘Virtualit-e’ is a small business, started by a new business owner.

Whereas certain direct competitor such as ‘Oculus Social Alpha’ are owned by brands such as Facebook a social media leader.

O

T 50

#The

Brand

53

7.1

Brand

Brand vision

Brand mission

Brand promise

Brand values

Brand position Tone of voice

54

DNA

To lead the way in humanizing social media, in an innovative way, bring ‘personal’ back to ‘personal devices’ To inspire individuals to reconnect with each other in a genuine and ‘real’ way across the globe A tactile, innovative experience that will inspire users to truly reconnect Transparency, authenticity, emotional, human, connectivity, togetherness Global leader in innovative social platforms Authentic, heart-felt yet fun and explorative

7.2

The

Technology

In order for virtual reality to integrate into our everyday lives, in this case using social media, the technology needs to be tactile and secondary research it is apparent that large VR headsets are impractical for everyday use, especially within the millennials. Respondents saying they looked uncomfortable and impractical. (appendix focus group To overcome this, a technology, Lightweight VR offers an experience of virtual reality on a smartphone, without the headset. CEO of are producing a VR framework that would allow individuals to enter virtual reality simply by looking at a smartphone screen, by using a A compromise with this technology is the lack of a full immersive experience, instead it is replaced with convenience.

This technology relies on future thinking as it is highly innovative, therefore alternative technologies can be utilized to turn the concept Draw & Code are a technology company based in Liverpool where they harness emerging technologies, create innovative art and develop key insights and expert opinions on the technology that could be used in order to turn the concept into a reality. Phil Charnock, Marketing social network other than the filtered world of Instagram or the pomposity of the twitterati.� (Charnock, 2016). Through interviews and devised.

Proposed ready to be adopted by its target users. From primary and during the focus group stated their opinions on VR headsets, Adtile technologies, Nils Forsblom announced his company phones innate sensors to calculate precise movements. into a reality in the short term. sophisticated immersive experiences. This company provided Manager agreed “there certainly is a need for a more ‘genuine’ discussions about possible technologies the following ideas were

Technology

To improve upon existing technology within social media such as Snapchats’ use of augmented reality technology and make it feel more personal and ‘genuine’. One step could be to involve the consumer with the experience. So, a 3D scan of the user could place your likeness and your environment into full 3D. In a couple of generations there will be 3D sensors in phones (see Google’s Project Tango or the Structure Sensor for the iPad) but until the technology is created this will prove a challenge to execute immediately the business allows a year of software development.

3D technology This technology gives the user the freedom to move around just like in real life. Which is the key to feeling more real and genuine.

Ideally the technology will be a compromise between 3D and virtual reality technology. A way to make this experience even more genuine is to go without the ‘cartoon character’ avatars. Users will be able to record and talk to each other in a conventional way, but see it in VR. If the technology is currently not advanced enough, another option for interacting in VR may be to avoid the avatars and make it an audio interaction. To have a 360 VR film (like Topshop’s live catwalk) with people together in the same experience but with an audio connection to each other. Users are sharing a live, 360 VR scene but with the added audio communication element. The technology may also make it possible to annotate the scene with augmented reality elements.

As mentioned previously millions of people have smartphones.

Although through research it was revealed android and iOS (iPhone) are smartphones capable of running vTime or AltspaceVR (current Social VR applications), but they can all run 360 video. Just by moving your phone around your head you can enjoy 360 video.

Phil Charnock explains “In the future I am convinced that full 3D is the way to go. But for a truly social experience that is VR, feels genuine the way video does and can run on any phone or tablet 360 video seems a good place to start.” (Charnock, 2016).

n

P

e r s o ,

To inn lea ov d t To ati he ve w ins wa ay p i in re y, b in h a g in rin um en div g ‘ an uin idu p e a als de ers izing nd to vic ona so ‘re re es’ l’ b cia al’ co ac l m k t ed wa nne o ‘ ia y a ct pe , in cr wi rs an os th on st e al a he ch glo ot be he r

ins

n,

re e nc y co , a nn uth ec en tiv ti ity cit , to y, e ge mo th ti er on ne al ss , hu ma

pa

ns

media, in a

ill

e tiv

At t r i

57

e

e pir

Humanizing social reconnecting individuals genuine way

g se i m o

a

V a l u

M e s sa

r tw ha P et t nc nnec rie pe eco ex ly r ive tru vat o no rs t , in use

s

tile

Tr a

tac

a ov inn t, e en tiv fid ra on lo , c xp un d e t f an ye l lt nta -fe e rt em ea dg , h ju tic onn

en th

Au

ty i l

A

C

o

re

s

essence

e

Brand

t u b

7.3 model

The most popular social media platforms such as Facebook, Instagram and Snapchat do not charge a fee for signing up but become commercially viable by allowing advertisers to essentially ‘rent’ out its users eyeballs. For example on television a weekly series up to 18 million viewers will watch the episode and thus pay least subconscious attention to 16 minutes of commercials. Therefore keeping the service free for users whilst maintaining revenue. As an example, an average Facebook account contributed $5.32 to its revenue in 2013, with 1,228,000,000 active users at the time; the approximate total revenue from advertisements in 2013 would have been around $6,532,960,000.

7.4 Location, Manchester The advantages of setting up the business in Manchester are sufficient. There are currently multiple Virtual Reality companies based in the North West England. As the business is online based, the location of the business can be a small office to begin with and location does not affect cost of operation.

Additionally research has shown, rent prices within the North West are much lower in comparison to other large cities such as London.

The UK has an improved technology industry from a decade ago, a new generation of British entrepreneurs has helped build an increasing home-grown tech industry. GP Bullhound, a specialist tech investment bank, calculated that in the last 12 months no less than eight UK tech businesses have reached a valuation of at least $1bn (Heath, 2015).

An advertiser supported model will be used as a revenue stream, as secondary research supported that this would be the most successful. Rather than individually charging users, keeping the platform free will garner more users and therefore allow more advertisers to engage. Additionally, charging for something that is readily available as a free service may defer users.

7.5 Commercially viable

7.6

When considering the commercial viability of a possible social media platform, and one that is following the advertisement stream of revenue. The profit will depend on how many users the platform garners. An example to show this idea, Twitters SEC filing (financial statement) expressed the following in their forward looking statements. “Our ability to attract advertisers to our platform and increase the amount that advertisers spend with us”, “our ability to improve user monetization, including advertising revenue per timeline view” (McFarlane, 2014). Therefore showing the importance of creating a platform that will attract the right consumers and one that fits in with the current cultural shifts.

Producing profit There are two approved options for a social media platform to create profit and become commercially viable. Firstly, a business can charge a membership fee whether its subscription based or a one off signup fee. To attract consumers to the business they can offer a freemium period, then after the free period the company can begin charging a premium.

58

Business

Model

Through secondary research into business models based on adverting, Cost per lead and revenue share are both models that could be implemented in the business. Both based around the advertiser paying the advertising presenter (‘Virtualit-e’) to ensure users visit the advertiser’s website. Although it was concluded a Multi-sided business model which is a business model pattern that brings together two or more distinct but interdependent groups of customers, the platform creates value by facilitating interactions between the different groups.

A multi-sided platform grows in value to the extent that it attracts more users, a phenomenon known as the “Network Effect” (Ankaraju, 2010). Global expansion will incur if the business shows sufficient success within the UK, which will mean possible changes to the business model as the user base will increase.

Using informed estimations from other social media start-ups and similar company’s business models, profit approximations for profits were devised. If ‘Virtualit-e’ reaches 122,800 users by the end of year one (336.44 users a day) ‘Virtualit-e’ can reach a profit upwards of £445,071 (see appendix 7).

7.7 4

Business

year

Strategy

plan

1st year: July 2016- June 2017

Begin campaign for Kickstarter crowd funding campaign, as well as pitching for investments and government grants. The budget will then be allocated to start-up costs. Finally the business will begin software and technology development for the application after obtaining licenses.

2nd year: July 2017 – June 2018

Finalise software development and finalise logistics. By summer ‘Virtualit-e’ will be launched on all personal devices. Launch marketing communications plan alongside. The event will take place alongside the launch of the application.

3rd year: July 2018 – June 2019

Focus on obtaining ROI and monitoring engagement. Possible adaption and additional functions, as consumer opinions are reviewed. There will be a focus on technology improvements and growth throughout the third year.

4th year: July 2019 – June 2020

‘Virtualit-e’ will begin global expansion into appropriate locations on platforms that have proven to provide the most valuable users by using retention tracking. Begin looking for agreements for acquisition by an existing social media platform.

Continuing constant progression of technology.

7.8 Risk

analysis

Risk

Likelihood

Impact

Mitigation

Technology development

Medium

High

Prepare for pushing back launch dates and coinciding events. Available technology will be utilised

Monitoring safety

Low

Medium

Clauses on health and safety within the application

There is a technology acceptance risk due to the impact of technologies, the business introduces technologies unfamiliar to users

Low

Medium

Ensure that adequate impact analysis is conducted. Ensure plans for additional promotion and communication and status to facilitate user acceptance

With technology it is important to recognise the possible challenges. Lightweight VR requires sophisticated algorithms that should be able to capture the scale of short, medium- and long - range motions, from gestures (tilting, shaking) to arm length movements.

As with many smartphone applications, immersive VR also has a tendency to generate heat and use up battery power. All these elements have been considered to ensure the viability of ‘Virtualit-e’ (VentureBeat, 2015). Although, the technology is still some time away from being ready to be used commercially, primary research carried out obtained information on technology that could turn the concept into a business within the first 2 years, with a plan to move into lightweight VR when the technology becomes sophisticated enough to use on a mass market scale.

7.9

Launch

of

the

‘Virtualit-e’

The social media platform ‘Virtualit-e’ will launch in summer of 2018, the application will be available via the website and there will be apps on all iOS and android powered personal devices, available through the app store. The website will provide information about ‘Virtualit-e’, how to use the app and ensure users have the ability to contact the business and ask questions, there will also be a FAQ section.

61

62

7.10

Monitoring

success

App store success During the launch downloads will be monitored and measured to ensure the app is being seen by enough users in the first week of launch. This means tracking downloads as an initial indicator of interest and usage. Because the app is being launched on multiple platforms, a source called ‘App Annie’ will be used to gain market research an analytics platform will measure the downloads by source, indicate overall revenue and track app store ranking (Adler, 2014).

First week retention rates It will be important to ensure the channels chosen during pre-launch are delivering the numbers needed to meet business objectives.This will be found through acquisition and retention tracking. Finding which channels delivered the most engaged and valuable users.Therefore helping to validate the right sources. Knowing figures on percentage of users downloaded and haven’t re-engaged since. Overall it will identify how well the app is keeping users interested. Post launch goals can then be devised (Adler, 2014).

63

64

#The

Commun

ication

Marketing

and

communication

plan

An integrated marketing communication approach will be used to achieve the objectives of the marketing campaign.

Through the use of well-coordinated integrated marketing communications. The strategy will combine public relations, digital marketing techniques and content marketing techniques (Fill, 2009). Although there will be a one year communication plan outlined below. The application is so unique and part of a market that is currently not heavily penetrated it is going to have organic acquisition. ‘Virtualit-e’ will always remain around the idea that it is a tool to reconnect individuals and humanize social media rather than to be solely based around profitability, the aim will be for users to recognize this ideal as consumers are craving ‘real’ and honest brands. Therefore all marketing techniques will stay true to this idea. Additionally, with the business being small and new to the market, the budget for marketing is on a smaller scale, this will be further outlined in chapter 9. Therefore a larger communication plan can take place further down the line when the business has built momentum and there is the ability to have a larger marketing budget.

Smart objectives •Increase brand awareness by obtaining 100,000 followers on Instagram after 1 year, and doubling this each year •Obtain a visual brand identity, be recognizable to users and consumers •To ensure users re-engage with the app after initial download Communication After examining how consumers become aware of new social media platforms, it became evident that often users discover through existing social media platforms as well as word of mouth. A primary research interview revealed respondents learned of new social platforms through Facebook (appendix interview nat). Supported by the fact that studies have shown that social media has a 100% higher lead-to-close rate than outbound marketing (HubSpot, 2016). This influenced the marketing techniques, social media will be used a communication tool. Although initially social media was identified as disconnecting consumers there are some advantages. The fact social media is an effective marketing tool has not been disputed. Key platforms such as Instagram will be used as part of the integrated marketing communication.

68

Instagram

#SeeTheWorldDifferently

In order for ‘Virtualit-e’ to become a mainstream contender within social networking, utilizing other social media platforms will be an effective way of reaching existing users. Instagram is a platform where content creation is highly effective. The Instagram page will include a direct link to the app store, where ‘Virtualit-e’ can be downloaded. The aim of this marketing will be to increase brand awareness. Instead of paying for a sponsored advertisement which is estimated to cost around $350,000, an influencer will be employed to take over the account for 1-3 days. A guest ‘Instagrammer’/online personality will have a large Instagram following. Opening ‘Virtualit-e’ Instagram page to a unique group of followers. This technique decreases the cost yet still allows brand awareness to grow.

An endeavor to make the application available through other platforms will make it easier for users to become aware of the new platform and follow links through to the app. For example how current users of Instagram can link their Instagram page to their Facebook.

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Highly

shareable

content

As part of the marketing strategy, integrated into the other aspects of the communication plan, highly shareable content will be created as a marketing objective. Creating content with the intent of it being widely shared throughout social media. The target consumer is active on social media and on average shares … of content. A share can be likened to a ‘social stamp of approval’ increasing; the contents reach, lead generation, SEO and most importantly increase users.

Using infographics and images Research showed that Infographics are liked and shared on social media 3X more than other any other type of content (Mass planner, 2015). This was supported by further research showing visual content is more than 40X more likely to get shared on social media than any other content (Mawhinney, 2016).

Example: Advertising Events Using the most popular event that week, for the target consumer, or the number one hotspot trending at that particular time.

Research showed keeping the finger on the pulse will ensure content is shareable and capture the consumer’s attention. For example during April ‘Coachella’ kicks off the festival season in California attracting popular names and celebrities, also being a highlight in fashion follower’s calendars. Users of the app will be able to join in with the events, virtually. By creating content and virtual video advertisement, to garner users for this particular event it will introduce new consumers to ‘Virtualit-e’.

Emotive As mentioned earlier in the report, the importance of creating emotional connections with each other as individuals, as well as brands with consumers is a major element of ‘Virtualit-e’. Therefore creating ‘shareable’ videos that can affect and make an impression with their users on an emotional level will be a way of garnering attention to ‘Virtualit-e’ in a genuine way.

For example some of the most shared online video advertisements created emotional feelings which connected with the consumer.

‘Try before you buy’ Once the app has been designed, trialing it with the public will be a priority to ensure it is consumer friendly and tactile enough for users to use. If the trialing is done within the early stages it will allow time for any minor changes. As well as putting the application in front of influential members of the tech industry to gain informed opinions, this may also result in stealth marketing if the influencers decide to take the ‘Virtualit-e’ to their own social media pages etc.

Optimizing search engines When preparing for organic acquisition, App Store Optimization (ASO) will ensure the listing will rank high in the app store, involving the right key words into the store listing will ensure it ranks higher and is easily discovered. It will be ensured that the app is in the right category, 63% of downloads come from general browsing in the App Store. (Lomas, 2013)

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Launch

Event

The event will be held in major UK cities during the summer including Manchester, London and Edinburgh. The three cities were chosen because London being the capital, Manchester being the home base for ‘Virtualit-e’, finally Edinburgh has been voted top city within UK for the past 3 years (Telegraph, 2016). The events will take place on rooftop locations, chosen because of the idea of being able to see world in a new way, different from being on ground level.You don’t just see a snapshot, you see the whole view.The event will be available as a location on the ‘Virtualit-e’ application where users will be able to attend virtually from all over the UK. The event will coincide with the launch week of the app. Taking place from 7pm to 1am, there will be 40 guests invited to each location.

London Radio rooftop bar in Temple will provide a scenic backdrop where views of iconic building such as the shard can be seen. Research obtained showed it would cost £50 per guest of which would be given in value of food and drink. Therefore the budget of £2,000 would cover location, food and drinks.

Manchester Hilton hotel located in Deansgate, Manchester. The event will take place in the rooftop bar Cloud 23, Eros Lounge, Guests will be welcomed with a cocktail and 4 canapes per person with 2 further glasses of wine, beer or soft drinks. This package costs £30.00 per person -. £1,200.

Edinburgh Chaophraya rooftop location, overlooks famous landmarks of the capital city. This location offers the same package as the Manchester location costing £1,000.

74

3D

street

artwork

As part of the integrated campaign there will be art installations in the 3 chosen cities throughout the UK. 3D artwork painted onto concrete spaces in public areas to advertise the upcoming launch of ‘Virtualit-e’. The aim is to attract and introduce the concept to the public. On average artists charge £16 an hour and with an average 2m x 2m art piece taking 16 hours, estimations approximate one piece will cost £300. All three locations will approximately cost £900.

76

One

year

communication

Second Strategy/Communication

July

year:

July

August

2017

September

Launch on platforms Launch website Event PR Trial and testing Social media campaign #SeeTheWorldDifferently

77

-

June

October

2018 November

December

January

February

March

April

78

May

June

#The

Financ

ials

9.1

Capital

funding

Crowdfunding Raising capital through crowdfunding, research revealed from the platform Kickstarter it was established that new, innovative technology products/platforms are among the most successful with reaching funding goals. For example;‘Ossic X:The first 3D audio headphones calibrated to you’ was over 1000% funded and raised $1,333,1982 with 28 days to go in March 2016. Crowd funding will be used to raise £65,000 as part of the capital fund.

Grants and schemes www.greatbusiness.gov.uk is a scheme running through Manchester City Council that offers support, advice and inspiration for growing businesses. ‘Business is great Britain’ offers multiple grants for SMEs including; European funding and support programs, Small Business Research Initiative and Innovate UK smart grants.Through these schemes, it will be an aim for £10,000 to be funded to go towards the marketing budget and website development.

Venture capitalist Investments from venture capitalists will put up an investment of £65,000 in exchange for 15% business share, this was worked out through a business formula (Cradock, 2009).

Capital Funding (£) Government grants

10,000

Crowdfunding

65,000

Capital investor

65,000

Total

140,000

81

9.2

Start-up

cost

Start-up costs

Cost (ÂŁ)

Domain name

19.00

Website development

3,848

App development

100,000

Launch events

5,100

Location Rent

780

Utilities

732

Total

110,479

9.3

App

development

Technology

licensing

A license will be acquired to use the technology, Adtile: Lightweight VR. The owner of the technological intellectual property will allow ‘Virtualit-e’ to use/modify the technology in exchange for compensation. Pricing the intellectual property for the early-stage technology was costed with the budget for the app development.

Development cost of ‘Virtualit-e’ to be available on Android and Apple iOS within 8 months: £100,000. From estimates by app development companies; “somewhere between $100,000 and $300,000” – Applico, “anywhere between $150,000 to $450,000” – Savvy apps and “as little as $150,000… as much as $500,000” – Fueled (Formotus, 2016). A report, released in January 2015, outlines detailed breakdowns of cost drivers (Clutch, 2016).

• Planning • Design • Features • Infrastructure • App administration • Testing • Deployment

84

9.4 Profit

and

Year one

loss Income

£0

Capital

£0

Total income

£0

Direct costs

£0

Gross profit

£0

Gross profit margin

0%

Account fees

-

Events

-

Event artwork

-

Utilities (electricity, gas, water)

-

Telephone

-

Rent

-

Motor vehicle expenses

-

Stationary and printing

-

App development

£500

Website development

£500

Total overheads

Net profit

-£1000

Net profit margin

0%

Tax (20%)

£0

Net profit after tax

£0

Year two

Year three

£445,071

£489,578.1

£140,000

£0

£585,071

£489,578.1

£0

£0

£585,071

£489,578.1

100%

100%

£792

£792

£4,200

-

£900

-

£732

£732

£480

£480

£780

£780

£1188

£1188

£156

£156

£100,000

-

£3,848

-

£132,276

£7,378

£452,795

£482,200

77%

98%

£90,559

£96,440

£362,236

£385,760

Year two Income based on 122,800 users (336.44 users a day) contributing £3.62 each a year in advertising. Capital based on all capital being raised by year 2. Third year income assuming user rates rise by 10%. Year two overheads are dramatically higher due to higher outgoings caused by app development and marketing budget. 15% of year three profits would go to the venture capitalist.

Leaving £327,896 profit after tax and venture capitalist payments.

9.5 Second

year

sense

check

Aim

(-30%)

(+20)

Income

£445,071

£311,549.7

£534,085.2

Capital

£140,000

£98,000

£168,000

Total income

£585,071

£409,549.7

£702,085.2

Direct costs

£0

£0

£0

Gross profit

£585,071

£409,549.7

£702,085.2

Gross profit margin

100%

100%

100%

Total overheads

£132,276

£92,593.2

£158,731.2

Net profit

£452,795

£316,957

£543,354

Net profit margin

77%

77%

77%

Tax (20%)

£90,559

£63,391.4

£106,870.8

Net profit after tax

£362,236

£253,565.6

£436,483.2

This sense check shows the profit and loss in case of a 30% decrease and 20% increase during the second year, the first year of profit. If only 85,960 users (rather than the projected 122,800) downloaded the app in the first year of launch, profits would decrease by 30%.

88

10.1

The

future

Future growth of ‘Virtualit-e’ will focus on technology developments, global growth and acquisition. Through thorough research, ‘Virtualit-e’ has all the momentum and potential to become a leading social platform. Consumers are craving connected experiences and ‘Virtualit-e’ offers a solution to a problem within society whilst fitting in with current cultural trends and consumer needs. The future will focus on global expansion, with users reaching into the millions. After 3 years as an established social network, ‘Virtualit-e’ will hope to be acquired by a large and well-credited company.

Allowing ‘Virtualit-e’ an opportunity to grow to its full potential, with the most advanced technologies available.

10.2

Conclusion

In conclusion, ‘Virtualit-e’ offers a platform that can regain genuine connections within the digital world, offering a solution to the problem of disconnection and lack of genuineness within the current social media landscape. The needs of consumers confirm that there is a user base for the business.The primary research confirmed that consumers are willing to experience a different way of communicating online. It was identified that a number of consumer needs coincided with ‘Virtualit-e’ including, a need for emotional connections as well as a need for ‘different’ experience in particular more authentic experiences.

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News

Articles

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TED

Talks

Sinek, S. (2010) How great leaders inspire action.Available at: https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_ action?language=en (Accessed: 15 April 2016).

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Releases

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Cook, N. (2016) The virtual reality economy: A new market opportunity? Available at: http://www.business2community.com/business-innovation/virtual-reality-economy-new-market-opportunity-01436587#htXe3OiJT075RZrB.97 (Accessed: 12 April 2016).

Cradock, M. (2009) What percentage of my company should I give to investors? Ask an expert - catapult - ABC online. Available at: http://www.abc.net.au/catapult/askexpert/s2566412.htm (Accessed: 14 April 2016).

Dawson, F. (2014) How to create a social network that makes money. Available at: http://www.forbes.com/sites/freddiedawson/2014/09/30/how-to-create-a-social-network-that-makes-money/#5567f7b4bc0c (Accessed: 19 April 2016).

DeBroff, S. (2016) 20 social & digital trends that will impact marketing in 2016. Available at: http://www.business.com/marketing/20top-social-and-digital-trends-that-will-impact-marketing-in-2016/ (Accessed: 11 April 2016).

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Elgan, M. (2015) Hy virtual reality is the next social network. Available at: http://www.computerworld.com/artiÂŹcle/2999819/social-media/why-virtual-reality-is-the-next-social-network.html (Accessed: 14 April 2016).

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Lomas, N. (2013) Mainline App stores still dominate iOS/Android App discovery, finds Forrester, but word of mouth & social recommendations also key. Available at: http://techcrunch.com/2013/04/17/forrester-app-discovery-report/ (Accessed: 15 April 2016).

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Yaffe, P. (2011) ‘The 7% rule’, Ubiquity, 2011,pp. 1–5. doi: (10.1145/2043155.2043156) (Accessed 13 April 2016).

Interviews Charnock, P (2016) See Appendix

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List

of

illustrations

Available at: http://arcatrip.deviantart.com/art/ Camera-lens-182744236

Available at: https://www.pexels.com/photo/blackand-white-city-man-people-1984/

Created on photoshop by Eve Willans

Available at: http://www.thisiscolossal. com/2015/11/ cellphone-attention-antoine-geiger/

Available at: https://www.pexels.com/photo/skyearth-galaxy-universe-2422/

Available at: https://blog.adtile.me/2015/03/17/ intro- ducing-mobile-vr/ Created on photoshop by Eve Willans

Available at: http://www.windowscentral.com/ sites/wpcentral.com/files/styles/larger/public/field/ image/2015/10/oculus-rift.jpg?itok=N1s3wThW

Available at: https://blog.adtile.me/2015/03/17/ intro- ducing-mobile-vr/ Created on photoshop by Eve Willans

Available at: https://www.pexels.com/photo/ black-and-white-man-shadow-alone-27967/

Available at: https://blog.adtile.me/2015/03/17/ intro- ducing-mobile-vr/ Created on photoshop by Eve Willans

Created on photoshop by Eve Willans

Available at: https://blog.adtile.me/2015/03/17/ intro- ducing-mobile-vr/ Created on photoshop by Eve Willans

Available at: http://1.bp.blogspot. com/-jXW9U1qjaWk/VWq_TmUbn_I/ AAAAAAAAB90/04T9HS1UjbU/s1600/snapcode. png

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Primary imagery taken by Eve Willans

Available at: https://www.pexels.com/photo/blackand- white-restaurant-lunch-kitchen-3409/

Available at: http://www.randyzimnoch.com/ wp-content/uploads/altspacevr-logo.jpg

Created on photoshop by Eve Willans

Available at: https://www.oculus.com/en-us/ blog/ join-friends-in-vr-with-new-oculus-socialfeatures/

Created on photoshop by Eve Willans

Available at: https://www.pexels.com/photo/ ab- stract-glare-visual-art-3582/

Available at: http://quirkylondon.net/wp-content/up- loads/2013/08/ME-London-Radio-Exterior-1200x762.jpg

Available at: https://www.pexels.com/photo/ road- car-blurred-morning-sun-46277/

Available at: http://illuzone.net/wp-content/uploads/2015/01/3D-Street-Art-5.jpg

Created on photoshop by Eve Willans

Available at: https://images.unsplash.com/ pho- to-1431605695381-f4a9c3cdd150?ixlib=rb-0.3.5&q=80&f- m=jpg&crop=entropy&s=1d6cabd39ece84165dc- 1181c91bbc5da

Available at: https://images.unsplash.com/ pho- to-1446776653964-20c1d3a81b06?ixlib=rb0.3.5&q=80&f- m=jpg&crop=entropy&s=5f64318252bec5a995159d524d- 405a5e

#Appendices

Appendix

1

Welcome to my focus group as part of the research for my final year project into social media and virtual reality, and creating a genuine platform to reconnect individuals and users of social media.

To enable me to answer my research questions I wish to talk to you about your opinions and views on Social media and Virtual Reality.

The focus group/interview will be a focussed discussion and will take approximately 30 minutes. We will concentrate on the following: Opinions of social media and virtual reality The focus group/interview will be taped and transcribed, and should you want a copy of the transcription then please ask me and I will arrange for one to be sent to you.

The information you give me will be used in support of my work and will be written up in my project/dissertation.

Anything you say will be treated with the strictest confidence and your contribution to the discussion will not be attributed to you as an individual, what you said will be used for illustration only; to reinforce a point that I am making.

The tapes will be kept in a locked room and the transcripts on a password protected computer. Both will be destroyed once I have completed my degree and graduated.

Respondent 1.

Answers

What do you expect from social media?

Respondent A

Respondent B Respondent C

Respondent D

I expect to be connected to people, especially friends and family. I also like to know what’s the latest trends and news. I like to keep up with celebrities through social media platforms too.

To socialise and keep up to date with latest news etc. (as I don’t follow news in general) I expect high quality photos and a clear quick message service.

Up to date streaming with the latest posts first. A way of being able to be safe online with easy access to block somebody or report something.

Entertainment, Information & Connections 109

2.

Would you be willing to experience a different way of communicating online?

Respondent A

Yes, depending on what it is, how easy it was to use.

Respondent B

Yes, I’m always up for trying out new social networking sites

Respondent C

I’m a bit apprehensive due to the fact I feel i achieve excellent communication online already. There are several ways to message my friends like Facebook message, Instagram message and snapchat message and if I want a more personal conversation I would use Skype or Facebook video. I don’t really see how much better communicating online could get.

Respondent D

Depending on the look & meaning of the platform, yes

3.

Would you be willing to pay for a social media account?

Respondent A

No because every social media site is free so I don’t see why I should pay to use a social site. LinkedIn is different though because it’s more like working professionals.

Respondent B

No because social media is popular due to the fact it’s free, so we should never have to pay to socialise with friends and connect with brands etc.

Respondent C

No I feel social media should be free, because it always has been.

Respondent D

No

4.

What do you think the future of social media and online interactions involve?

Respondent A

Respondent B

I think possibly the demonstration of cool things that would happen in the future such as innovative concepts for architecture, travel and general living conditions. Not just this, I also think that social media and online interaction has a lot to do with privacy, maybe there may not be any privacy left and everyone becomes an open book!

I just feel that it will become the most powerful marketing tool and may have such power to control the world.

Respondent C

I’m unsure what it involves, maybe improvements made on sound and picture. On Facebook video call it sometimes doesn’t connect and the sound can be poor. I see the future being improvements made on that.

Respondent D

Video activity, live streams etc.…

5.

Would you ever consider wearing a Virtual reality headset in your everyday life? And why?

Respondent A

No because it’s not really suitable for everyday life, it wouldn’t really work for using it on the go, it’s not very travel friendly.

Respondent B

Definitely not because it’s uncomfortable.

Respondent C

No because to me virtual reality headsets relates to games and gamers. I don’t see how wearing a headset could benefit me as an individual. Also I would feel silly wearing one, maybe in the future when they become a ‘trend’ would I wear one if I felt it would make an improvement to my life but not for gaming purposes.

Yes, a new way to interact with new people

Respondent D

6.

Have you any knowledge on Virtual Reality technology? If so what it is your opinion on its use?

Respondent A

No, I know nothing.

Respondent B

Yes, only brief knowledge based around retail and gaming how it’s changing experiences, making it more exciting.

Respondent C

My knowledge is it’s used for reality games and is still an up and coming piece of technology. When I visited the USA they had them in the arcades so I experienced them. I only see them for gamers.

Respondent D

No I haven’t... There can be many advantages for its uses e.g.

Job applications, promoting/raising awareness to any activities and also helps to deter people from making fake profiles

Appendix 2 Interview A 1.

What do you seek from social media?

I seek a way of keeping in touch with close friends to acquaintances. A way of allowing me to keep in touch with people I wouldn’t necessarily keep in contact with. In my busy life I would find it extremely difficult to see all the friends I would like to see on a regular basis. Social media allows me to chat, post and see what their up to at the touch of my finger. I like to see people’s photos, be the first to know when somebody’s got engaged or had a baby.

2.

How does social media improve or damage your life?

Social media is a great tool that allows me to keep in contact with people. Although the negative views on social media would be its quite addictive and obsessive. Body image has completely changed since using my social media accounts and I can see how it influences a lot of people day to day. I find that it doesn’t help my sleep as I’m checking it last thing and night and first thing in the morning. Sleep deprivation is due to many factors but social media being one.

3.

Is there a gap in-between existing social platforms for a platform that reconnects relationships in a more genuine way?

I feel that day to day when people are busy, i use video calls and messages for a quick way to speak to people. I feel that if i wanted to reconnect a relationship in a more genuine way, I would meet up for a coffee or a meal.

4.

What are your favourite features of social media platforms?

Photos and hashtags, I enjoy finding relevant photos such as gym tips and makeup tips. I enjoy the Facebook live feature and watching videos online.

5.

What do you think the future of social media and online interactions involves?

Improvement on what is already there. Better sound and visual, maybe HD or 3D video calls. As our devices are being improved so often, our social media has to keep up with that.

6.

How do you usually learn about new social media platforms?

Word of mouth usually or in a magazine

Appendix 3 Interview B 1.

What do you seek from social media?

Easy socialising tools to contact friends and family as well as connecting towards brands. Also being a fashion enthusiast, I’d like to be able to keep up with trends, bloggers etc easily and update my own online profile with any content I’d like to share.

2.

How does social media improve or damage your life?

It improves it as it’s easy to contact anybody through social media sites and it’s great for creatives like me to post what they like and be inspired etc. It also keeps me up to date with latest news without having to be on news apps etc.

3.

Is there a gap in-between existing social platforms for a platform that reconnects relationships in a more genuine way?

Yes because there have been recent studies about how social media has affected people in regards of their self-esteem, people don’t seem to understand that social media are people’s life highlights, therefore it’s not all what it looks like. It would be refreshing for these people who struggle with themselves or jealousy to have knowledge that these ‘perfect’ people feel the same emotions and even have bad days like everybody else so the whole brainwashing due to social media won’t exist no longer. (not sure whether this is the right kind of answer) 4.

What are your favourite features of social media platforms?

Image sharing, news sharing

5.

What do you think the future of social media and online interactions involves?

From the previous question, it has come to mind that hopefully it involves more reality, where people aren’t ashamed to be themselves online

6.

How do you usually learn about new social media platforms?

Not entirely sure when I come to think of it… maybe word of mouth or articles/reviews popping up on Facebook.

Appendix 4 Interview C 1.

What do you seek from social media?

Entertainment and connections

2.

How does social media improve or damage your life?

Raises awareness about what’s going on in society on a daily basis, Can be seen as a distraction when entertainment value is at a peak time

3.

Is there a gap in-between existing social platforms for a platform that reconnects relationships in a more genuine way?

Not that I am aware of

4.

What are your favourite features of social media platforms?

Vine and videos, profile views and additional apps that can be used on social media platforms

5.

What do you think the future of social media and online interactions involves?

Video activity, live streams etc.‌

6.

How do you usually learn about new social media platforms?

Through existing social media platforms where others may comment on the use of another

Appendix 5 Interview D 1.

What do you seek from social media?

I seek friendship and keeping up to date with my family and friends, I think it’s an easier way to keep connected on the go.

2.

How does social media improve or damage your life?

Improving because you can keep in contact indirectly with people – the fact they are your friends on Facebook is almost like confirmation that you both acknowledge each other without the need to personally message them.

It doesn’t damage my life.

3.

Is there a gap in-between existing social platforms for a platform that reconnects relationships in a more genuine way?

Yes I think so, because snapchat is live updates without any edits, Facebook is about sharing funny videos or connecting with course mates, twitter is taken less seriously it’s all about jokes and Instagram is about impressing people and being selective about what you show. So when considering all these points I would say that the gap would definitely be to make people realise how to be more authentic and genuine.

4.

What are your favourite features of social media platforms?

Editing, to be honest without edits I probably wouldn’t use social media in the same way I use it now.

5.

What do you think the future of social media and online interactions involves?

I think it consists of being more open about who you are, so privacy will definitely be affected however users will still only show what they want to show, so I guess transparency would still be an issue on how authentic or genuine people are.

6.

How do you usually learn about new social media platforms?

Usually through friends.

Appendix Industry

6 expert

interview

I am Eve Willans and as part of my programme of study am undertaking research into the producing a social media platform that increases genuineness and reconnects brands and users in the digital world.

To enable me to answer my research questions I wish to talk to you about your knowledge of technology and coding in regards to this topic.

The focus group/interview will be a focussed discussion and will take approximately 40 minutes.

The focus group/interview will be taped and transcribed, and should you want a copy of the transcription then please ask me and I will arrange for one to be sent to you.

The information you give me will be used in support of my work and will be written up in my project/dissertation. Anything you say will be treated with the strictest confidence and your contribution to the discussion will not be attributed to you as an individual, what you said will be used for illustration only; to reinforce a point that I am making.

The tapes will be kept in a locked room and the transcripts on a password protected computer. Both will be destroyed once I have completed my degree and graduated.

Interviewer: Respondent: Interviewer:

Respondent:

Interviewer: Respondent:

Hi Phil, this interview will aim to understand the technology and logistics needed for the concept we discussed over email.

Hi Eve, yes that’s fine.

From seeing the brief plan and concept for my idea could you suggest what would be possible in terms of the technology for the application Wow, this is great. There certainly is a need for a more ‘genuine’ social network than the filtered world of Instagram or the pomposity of the twitterati. Snapchat is good for that - it is what it is. Periscope being live video also feels genuine, albeit that most people use it in a dull way.

Thank you, which platforms do you think are the most genuine?

It’s worth noting that Snapchat is technologically significant.

Its use of augmented reality ‘lenses’ to create a mask for the user to ‘wear’ may not be innovative in itself, plenty of apps do this, but to make it a part of live communication is unusual.

Although Google Hangouts do it too. It’s made AR truly mainstream. Snapchat are also monetising the lenses - look up the Samsung Gear promotion snapchat did recently.

Interviewer:

What’s your opinion on the technology used by snapchat?

Respondent:

For me this use of augmented reality in snapchat is a step towards the high tech, immersive social channel that you describe. The next two steps towards it are vTime and Altspace VR - the first two proper VR social networks.VTime is based in Liverpool while Altspace is Californian. Both are good, but they use cartoony avatars that have had zero time spent on their design. I thought Nintendo got the Mii avatars spot on for the Wii, that would be far better than what these VR social networks offer.

Yes, how do you think ‘Virtualit-e’ can provide a more genuine experience?

Interviewer: Respondent:

Interviewer: Respondent:

So, how to improve upon them and make it feel more personal and ‘genuine’ like you say in your brief? One step could be to get yourself into the experience. So, a 3D scan of yourself could place your likeness (and your environment) into full 3D. In a couple of generations there will be 3D sensors in phones (see Google’s Project Tango or the Structure Sensor for the iPad) but until then it is a hard thing to do.

So how about available technology as of now?

3D is great, a video game like Minecraft gives you the freedom to move around just like in real life. Maybe that is the key to feeling more real? There will be no framing your Instagram picture to make your room look tidy - anybody will be able to navigate the room and see what’s in there!

Maybe a compromise between 3D and conventional 2d imagery will work? AltSpace offers the option to sit with avatars watching videos together. So maybe you could record and talk to each other in a conventional way, but see it in VR? It’s not conducive to instant communication though as it implies.

Another option for interacting in VR may be to ditch the avatars and make it an audio interaction. What I mean by that is to have a 360 VR film (think Topshop’s catwalk project from a while back) with both of you in the same experience but with an audio connection to each other.You are sharing a live, 360 VR scene but with the added audio communication element.

Imagine bitching our way through the final to The Voice as if we were sat together whispering in the front row? It may also be possible to annotate the scene with augmented reality elements. So I spot a nice dress on the catwalk, you say ‘which one?’ and I say ‘this one’ slapping a big arrow onto it.

Interviewer:

That is interesting, so in terms of the platforms the platform will be available on and the devices what are your opinions?

Respondent:

You mention that many, many millions of people have smartphones. Most of them are not capable of running vTime or Altspace, but they can all run 360 video. Using google cardboard, Samsung gear VR or even just by moving your phone around your head you can enjoy 360 video.

Ok thank you, do you have any final opinions?

Interviewer: Respondent:

In the future I’m convinced that full 3D is the way to go (as well as Project Tango, also look up Lytro who make lightfield cameras to see where we are headed). But for a truly social experience that is VR, feels genuine the way video does and can run on any phone or tablet 360 video seems a good place to start.

Thank you so much, the information you gave me was beyond helpful.

Interviewer:

Appendix Key Partners Venture capitalists and advertisers

7 Key Activities Platform/Network

Value Propositions Convenience and accessibility

Key Resources Intellectual and digital

Cost Structure Fixed costs. Main costs - technology maintaining and developing

Customer Relationships Customer acquisition

Customer Segments Interdependent customers

Channels Direct

Revenue Streams Brokerage fee (commission), advertisements

Appendix

8

Snapchat case study Launched 4 years ago, snapchat has become a key social media platform for marketers, as a way of reaching their consumer base.

Challenge Consumers have become selective with the brands they engage with, making it more difficult for brands to ensure their communication is being seen. Consumers increased savviness of technology, means brands need to decide which platforms allow the best connection with their consumers.

Snapchat A newer platform that brands consider as a channel in their marketing mix. Statistics show that their ads and content get up to 4 billion daily video views. Snapchat discover allows users to explore stories curated by media channels such as Buzzfeed, Cosmopolitan and MTV. In October 2015 Cosmopolitan reported its stories on discover receive around 3 million daily views, with 72% of users clicking through.

Case study summary • Snapchat has become a key social channel brands need to be using to reach consumers • Snapchat gets 4 billion daily video views – that’s the same as Facebook • 72% of Snapchat stories are watched until the end (Limited, 2015)

Appendix

9

Proof

of

costs

Cost

Quote

Reference

Office space

£780 per annum

http://www.regus.co.uk/locations/office-space/manchester-king-street

Utilities

£732 per annum

Domain name

£19

Locations for events

£5,100

App development

£100,000

Website development

£3,848

http://www.executiverelocation.co.uk/ how-much-a-rough-guide-to-uk-livingcosts/ https://www.123-reg.co.uk/order/ domain?X-CSRF-Token=6fef6e51cf4fd25ba9ee7f2f80c48709f1f48d6f&domain=virtualit-e.com All prices discussed over phone conversations with representatives of the businesses http://businessapps.co.uk/pricing?utm_source=Adwords&utm_medium=CPC&utm_term=cost%20 of%20app%20development&utm_content=47713817989&utm_campaign=CustomCampaign http://platowebdesign.com/web-design-pricing-calculator.php

Appendix 10 Break even analysis

Tutorial

record

sheets

Consent

forms

This submission is the result of my own work. All help and advice other than that received from tutors has been acknowledged and primary and secondary sources of information have been properly attributed.

Should this statement prove to be untrue I recognise the right and duty of the board of examiners to recommend what action should be taken in line with the University’s regulations on assessment contained in its handbook. signed .............................................................. print name ………………………………………………………………..

date .................................................................

Eve Willans N0521899 7,924 words