CALine
CALIFORNIA HIGH-SPEED RAIL SERVICE
INTERACTIVE KIOSK
BUSINESS PLAN
APPENDIX
CALine
CALIFORNIA HIGH-SPEED RAIL SERVICE
1.0 Executive Summary ......................................................................................... 04 Objectives Mission Keys to Success
2.0 Business Summary ........................................................................................... 05 Business Ownership Business Description
3.0 Business Model ................................................................................................. 07 Our Mission Our Vision Our Values Value Proposition Business Model Canvas
4.0 Situation Analysis ............................................................................................. 09 Industry Analysis SWOT Analysis
5.0 Market Strategies ............................................................................................. 11 Target Market Strategy Niche Market Marketing Mix
6.0 Organization and Management ..................................................................... 14 Organizational Structure Management Team
7.0 Financial Plan .................................................................................................... 15 Funding Cost Structure Six Years Financial Projection Plan
8.0 Conclusion ......................................................................................................... 18
EXECUTIVE SUMMARY: Today, the travel and tourism market is characterized by competition and flexibility due to increasing options for the passengers. Consequently, the travel industry is under mounting pressure to improve their consumer experience and increase revenue opportunities, while reducing operational expenses. Additionally, with the introduction of customer-sensitive and interactive-media terminals, face-to-face interactions are slowly giving way to face-to-interface interactions. To engage customers effectively, capture revenue, and maintain customer loyalty, we must provide a compelling experience that includes up-to-date information and relevant services in the way the customer wants to receive them. CALine, a newly established business in California plans to exploit this trend by offering CALine Interactive Kiosks. The Interactive CALine self-service technology is designed to give California High-Speed Rail (CHSR) travelers a one-stop-shop with friendly interface and richer experience at different touch points throughout their journey while creating a potential for CHSR to bring a significant return on investment (ROI).
CALine
CALIFORNIA HIGH-SPEED RAIL SERVICE
OBJECTIVES: CALine has established four firm objectives it wishes to achieve in the next two years: • Develop final product and concurrently raise funds through strategic partnerships and advertising revenue in the first six months. • In the first year, at least fifteen mentions of the CALine Interactive kiosk in travel and tourism industry magazines and newsletters. • Deploy a minimum of 10 kiosks at different strategic location in the state of California • Generate annual revenue of above $212,000 at the end of the second year
MISSION: CALine Mission is three-fold, with each being as integral to our success as the next. • Product Mission - Provide customers enhanced travel experience in the most efficient time • Community Mission - Provide community effective integrated services to boost travel and tourism industry in California • Economic Mission - Operate and grow at a profitable rate through sound economic decisions while creating a potential for CHSR to bring a significant return on investment (ROI).
KEYS TO SUCCESS: As a start-up company, new to the travel and tourism industry, we must be focused and work hard to create an acceptance of our brand, products and services within the marketplace. The keys to our success are: • Placement of an innovative kiosk service that is able to both expand existing markets and create new ones. • A steady, disciplined pattern of growth. • Development of a good relationship with clients, partners, key players and customers.
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CALine
BUSINESS SUMMARY
CALIFORNIA HIGH-SPEED RAIL SERVICE
Before the California High Speed Rail is fully operational the Kiosk can help meet the following goals:
BUSINESS OWNERSHIP: CALine is organized as a sole proprietorship, owned and founded by Sonia Ghazali. CALine will be registered in the state of California. Sonia has over seven years of experience in User Experience (UX) and Design Management. She has worked for several architectural firms as a project manager and UX consultant outside and inside the United State. Most recently, she worked on several UX projects for the local community.
BUSINESS DESCRIPTION: CALine is a newly established business in California and its main offering is CALine Interactive Kiosk. The Interactive CALine self-service technology is designed to give California High-Speed Rail (CHSR) travelers a one-stop-shop, friendly interface and richer experience at different touch points throughout their journey while creating a potential for CHSR to bring a significant return on investment (ROI). CALine Interactive Kiosk concept relies on efficiency and technology to gain advantage in marketing, sales and client servicing in high speed rail business. With self-service options, customers can quickly receive the information or services they need, while CHSR business get a cost-effective service delivery option. The ability to handle and integrate rich data, web, voice, and video content through multiple endpoints helps engage rail travelers in a new way while creating CHSR brand awareness, delivering an improved experience and ultimately increasing revenue. Whether it is a commuter, business traveler, holiday maker, tourist or even someone who just needs information; CALine interactive Kiosk will provide “Better, Faster and Smarter” solutions to travelers in the state of California.
1. Enhance brand awareness: Brand Awareness
CALine Innovative kiosk and interfaces will have a huge impact on the image and goodwill of high-speed rail industry in the United State. It will become a statement of CHSR’s commitment, research, awareness, and reliability.
2. Update masses: CHSRA Project Updates
The kiosk will allow the Californians and its visitors to see more detailed information on CHSR and keep the masses up to date on its current and future projects. It will also conduct brief surveys to track customer opinion and make improvements in their plans based on consumer demand.
3. Offline and online advertisement: Advertisement Opportunities
CHSR can sell advertising space on the kiosks which promotes local businesses and city tourism industry. Advertising would take place in the following two ways: Offline—when the kiosk is not in use by a consumer, it becomes a digital sign. Online—while the consumer is using the kiosk, there is an opportunity to utilize advertising space on the screen.
4. Extend market reach: Wide Market Reach
Context-sensitive information and strategic placement of the kiosk at the different locations, like Transit stations, airports, tourist hot spots and public spaces in corporate hubs will open up the prospect of having unconstrained and a wide variety of users.
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BUSINESS SUMMARY
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CALIFORNIA HIGH-SPEED RAIL SERVICE
cont.
Once CHSR is fully functional, the kiosk will:
Round the Clock
5. Ensure round-the- clock service:
9. Personalize assistance:
CALine kiosk’s machine based intelligence nullifies the need for a humans presence during a transaction, information delivery and interaction with a client. Hence, kiosks will be functional 24 hours a day, providing information and generating sale round the clock.
Users will interact with real-time customer service representatives through a two-way high-quality video chat while the remote agent will be able to co-browse and help them evaluate products at the point of decision.
Personalize Assistance
10. Cross-sell and Up-sell:
6. Encourage self service: Encourage Self-Service
Majority of travelers prefer choosing, deciding, and transacting privately, on their own, or with minimal interference from sales agents. They prefer to seek technical opinion only when they need it. In such an evolving nature of client base, the kiosk will prove to be a perfect interface since it is designed entirely on the notion of self service.
Cross-sell/ Up-sell Services
CALine Kiosk will offer additional products and information to increase the value travelers get from the organization and vice versa. Kiosk will support effective cross-selling and up-selling opportunities by delivering content that is real-time and context based.
7. Reduce work load:
Reduce Workload
Kiosk will do the job of marketing, sales, or public relations personnel effectively. Therefore, reducing the workload and cost of having commensurate number of personnel at late hours and remote locations.
8. Target customers with customized information:
+ Target Customers
The kiosk will provide unequaled insight into the shopping habits of their customers, which will help to update the focused content and services. It has the ability to track user‘s interaction and instantaneously provide customized one-to-one marketing to earn customer loyalty for the brand.
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BUSINESS MODEL OUR MISSION: Our mission is to give the travelers in California a “better, faster and smarter” travel experience by ensuring a comprehensive and user-centric interface design that focuses on distinct needs of different customer segments and understands their new requirements with the changing times.
OUR VISION: A state-of-the-art travel experience through integration, user-centric service solutions, innovative interface and cutting-edge ergonomic design.
OUR VALUES: • We believe a good service design should adapt to the needs of the customer . • We value our partnerships with small and large businesses that contribute to overall development of our local communities. • We provide cost efficient services to our clients and the consumer in order to encourage smarter ways to travel
CALIFORNIA HIGH-SPEED RAIL SERVICE
VALUE PROPOSITION: For California High-Speed Rail (HSR) travelers and travel information seekers who want to explore and travel in California. CALine Interactive Kiosk is new service design for the California HSR system that provides strategic, user-centric interface design to enhance traveler’s experience and interaction with service while creating value for the American HSR industry. This will be accomplished by employing compre-
hensive user experience research methods to understand customers’ needs and motivations and their interactions with the service. In addition, it will be achieved by applying service design frameworks to analyze the different touchpoints in the traveler’s journey and services offered to them in order to discover opportunities for innovation in the services and its integration.
Unlike other kiosks which only offer limited services, CALine interactive Kiosk only one stop, multi featured kiosk that will offer travelers a faster, convenient and engaging travel experience to exceed customer satisfaction standards. Our focus is to become the pioneer of integrated pre-travel to post-travel services between cities of California that can easily be adopted as the business model and service design prototype by other states with similar HSR services.
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Business Model Canvas
• iSSimple® Technology for Kiosks • Commuter rail- Caltrans, Metrolink, ACE, BNSF Railway and Union Pacific • Intercity Passenger rail Amtrak California, (San Joaquin & Pacific Surfliner), Capital Corridor
• Transit Services - Bay Area
• CALine HSR Sale and Support • Branding and Marketing for CALine • Provide a user-centric interface design • Customer acquisition and retention • Create awareness & value for CALine • 24/7 Customer service & support • Generate fare & non-fare revenue One-stop out-of-home platform • Respond to market needs as quickly as possible
Rapid Transit (BART) and LA Metro Rail
• California Travel and Tourism Commission • Travel sites (Expedia.com, Visitcalifornia.com and TripAdvisor.com)
• Hotels (Travelodge, Hilton, Marriott, Sheraton, Embassy Suites and ChoiceHotels.com)
• Car Rentals (Hertz, Avis and Enterprise)
• iSSimple hardware & drivers • Software and internet service • Database • Remote agents • Traveler’s community • Partnerships • Other modes of transport INTEGRATED SERVICES • CHSRA • Outsource company for UX/UI, maintenance and engineering Outsource Companies
CALine
Interactive Kiosk
• CALine HSR information, schedules, prices, route, maps and ticket/passes/card sale • Interactive travel comparator for time, cost, distance and stress / comfort comparison between different modes of transport. • Video customer support with co-browsing with remote agent • eTicket printing and QR scanning • Share travel photos, reviews and rating • Destination’s information, maps, attractions, deals search & booking • Last Minute and weekend deals • City event information (On-going and upcoming) • Feedback/complaint portal • Perform survey and track opinion • Trivia • Motivate travelers to enhance their travel experience by choosing CALine HSR for intercity travel • CALine branding and marketing • California High-Speed rail project information, updates and alerts
• Customized iSSimple Kiosk • Content development • Branding and advertising • 24/7 Customer services • Internet Services • Remote Management • Administration • Product equipment • Delivery and Installation • Space cost (if at other locations than CALine HSR station)
CALIFORNIA HIGH-SPEED RAIL SERVICE
• Building Trust • 24/7 Video Customer service • Tracking their opinions • Feedback/complaint and reviews/rating portal • Personalized and customized offering, search and FOLLOW-UP • Extra reward and discount • Identify return customer • Stay connected via emails, mobile updates and alerts
• Rail Travelers in California • Travel Information Seekers • California Travel and Tourism Commission
• CALine website and mobile app database • CHSR travel guide Magazine and Travel websites • SMS & emails to target market • Travel and tourism magazines • Ads, News & Newsletters • Social Media (CALine & CHSR Facebook/Twitter) and YouTube • Press Releases • Word of mouth • CALine rail travel ticket, pass or card • Travel card recharge Automated monthly service • Destination deals • CALine Bus & rent-a-bike Service • Digital signage Marketing • Commission from hotel, and rental car booking • City news and Updates • Ads Rights • Commission to integrate travel website in the search engine • Ad-hoc and scheduled messaging
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SITUATION ANALYSIS INDUSTRY ANALYSIS: Travel and Tourism Information Kiosk: Visitor or travel centers are revamping the way information is presented to travelers by complementing or replacing conventional brochure racks with interactive self-service kiosks. Travelers can now use kiosks to navigate tourist attractions, restaurants, bars, and retail outlets interactively – allowing them to quickly obtain information such as location, contact details, hours of operation with a touch of a finger. Users can then send information electronically from the kiosks to their smart phones or email for later access without the need to tote around foldout paper maps and brochures. State, regional and local visitor bureaus can utilize interactive self-service kiosks to promote activities, special events, local attractions, hotels, restaurants, and other helpful services by placing the units in high-traffic area while minimizing the impact on personnel and simultaneously generating economic growth by directing people to local businesses. There are two prominent travel and tourism Information Kiosks that are receiving traveler’s interest: i. "California Welcome Kiosks" The state division of tourism has installed "California Welcome Kiosks" at tourist hot spots around the state, including Universal Studios Hollywood, Pier 39 in San Francisco, the Collier rest area on Interstate 5 near the Oregon Border, the South Coast Plaza shopping center in Costa Mesa, the Fort Tejon rest area on the Interstate 5 near Bakersfield and the
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CALIFORNIA HIGH-SPEED RAIL SERVICE
Rohnert Park welcome center on Highway 101 near Santa Rosa. The interactive kiosks dispenses general visitor information, allow travelers to book services like hotels and cars, and let users check schedules and purchase tickets for a variety of California attractions. "Anything visitors can do through a ticket agency, they'll be able to do through this system," CalTour Director John said. "We're trying to make it as convenient as possible for travelers." ii. “CHARLES”: CHARLES is a wide-spread, user-friendly visitor information tool that provides advertising content placement and point of sale in one easy-to-use device. Key Features: • End-user navigates touch screen kiosk to access information and purchase tickets • Vendors can perform real-time changes through the cloud-based management portal City Corridor, the technology firm, developed the flat-faced kiosks with a large touch screen for visitors to see ads for attractions, make reservations and print out maps, menus and more. CHARLES is developed to increase visitor awareness of local businesses and attractions during their stay in Charleston, SC and incite spending with partnered businesses. CHARLES is deployed throughout the Charleston area in hotels, the city's four visitor centers and the Charleston International Airport. Also, four were placed at the New York City visitors center in Macy's in Herald Square. Local businesses participate for a monthly fee to be placed on the network, exposing their company to thousands of people each day. Through the kiosk network, attractions can sell tickets and manage ticket inventory in real-time for their attractions and restaurants have the ability to upload menus and book reservations. Participating vendors can also view real-time reporting on viewership, interaction with their advertisements and the demographic data accessed through our management portal. The kiosks also serve advertisers by offering quick feedback on how many people click their ads or print coupons. And businesses can quickly alter the content of their ads, if needed, by computer. A camera on the kiosk also provides information on who uses the machines and whether they are children, young adults or retired people.
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SITUATION ANALYSIS
CALIFORNIA HIGH-SPEED RAIL SERVICE
INDUSTRY ANALYSIS: (cont.)
SWOT ANALYSIS:
Transportation Interactive Kiosk:
Strengths:
Self-service transportation kiosks are being used across multiple public transit platforms for self-service ticketing and check-in, such as airports, subways, train stations, port authorities, bus terminals, and toll booths. In 2011, 104 million visitors used transportation kiosks in New York, New Jersey and Connecticut alone for their ticket and transportation needs. In addition to registration and ticket and boarding pass printing, kiosks are being used to display information such as directions, traffic updates, delays, interactive maps for way-finding, updated scheduling information, travel advisories, internet access, hours of operation, contact information and more. Transportation kiosks speed up the commuting process by allowing travelers to pass through lines quickly with the swipe of their credit or debit cards, enhancing the overall consumer experience. For the transportation provider, these transportation kiosks streamline ticketing operations, management, and reporting - freeing up personnel to attend to other priorities, reducing overhead, and providing new opportunities to market their brands and the brands of advertisers thus creating additional revenue streams.
• • • • • • • • • •
Unique brand awareness and marketing for CHSR, its services and on-going projects Serves a growing trend of attracting and targeting customer out-of-home User-centric service design Integrated services that create value for the brand and High-Speed rail industry in US Multiple revenue streams help ensure fiscal stability Remote management for constantly updating content and technical support Instant availability of transparent service information Time-sensitive advertisements to avail opportunities to cross-sell and up-sell Exposure for key partners 24/7 video customer support to assist the travelers
Weakness: • • • • • •
Initial funding required to meet start-up costs Fixed location-based service Limited market infiltration due to high cost per unit Outsource key players for design development, operation and management Dependency on partnerships for service integration Meager response from non-tech savvy customer
Opportunities: • Fast and effective service could grow user base exponentially • Key partnerships represent a diversity of opportunities to reach audience • Advertisers can reach a wide demographic to influence the future market trends • A customized product could potentially be used worldwide • A seamless, integrated customer travel experience could help build confidence in travel and tourism industry
Threats: • • • •
Financial resources and lack of funding can slow down the project Offerings can be duplicated by knowledgeable experts Failure to reach market will effect revenue stream in the long run Difficulty among consumers to transition from familiar mobile applications
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MARKET STRATEGIES
CALIFORNIA HIGH-SPEED RAIL SERVICE
NICHE MARKET:
TARGET MARKET STRATEGY: CALine interactive kiosk target strategy is based on understanding each niche market’s needs and aspirations, also analyzing different touch points during the journey. To obtain and retain users, an appealing and intriguing visual kiosk is designed to lure potential customers away from their current path or task to investigate what the kiosk has to offer. Sleek, bright and simple design makes the kiosk to stand out from its surroundings. The kiosk interface is carefully designed to be user centric, ergonomic and intuitive.
Primary Niche Market: Who? Discretionary travelers including tourist, holiday makers and business travelers Why? They may not use a specific mode of transportation in a systematic manner. While making decisions about transport and/or routes to use, they often take into account alternate modes such as car, plane. They consider factors such as comfort, convenience, hassle free travel, ease of planning and booking, and integration with other transport and services.
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CALIFORNIA HIGH-SPEED RAIL SERVICE
Secondary Niche Market 1: Who? Commuters
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CALIFORNIA HIGH-SPEED RAIL SERVICE
Why? Rail traveling is a crucial part of their day that can have a significant impact on their lifestyle. Updates and alerts, card recharging, integration with other transports, and being informed about alternate routes in case of disruptions, are some of the key attributes they value.
Secondary Niche Market 2: Who? Anyone who is seeking travel information
CALine
Why? They are mobile users who are looking for different information on the brand, its services and other related products it offers. They value real-time content, local tourism information and travel deals.
CALIFORNIA HIGH-SPEED RAIL SERVICE
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MARKET STRATEGIES
cont.
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CALIFORNIA HIGH-SPEED RAIL SERVICE
MARKETING MIX: Product: Floor standing Interactive Kiosk will have following features: • Floor standing strong metal casing • Professional 42” LCD LED panel with 16:9 aspect ratio • Touch screen with tempered glass • Build-in Intel Core i5 with Wi-Fi/3G • Build-in audio speakers • Front panel build-in camera with Kinect sensor • eTicket, Pass and card printer with QR scanner • Card reader, cash acceptor • Logo customization (acrylic/steel cutting + LED, back side silk printing) • Cutting-edge ergonomic design • One push two adjustable heights each upto 8“ • WxHxD = 28” x 62”-70“ x 3”
Place: CALine Interactive Kiosk will be deployed at rail stations (transit and high-speed), airports, tourist hot spots and public places in corporate hubs.
Promotion:
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CALIFORNIA HIGH-SPEED RAIL SERVICE
• CALine website and mobile app database •CHSR travel guide magazine and website • SMS & emails to promote current and upcoming services • Travel and tourism magazines • Ads, news & newsletters • Social Media (CHSR blog, CALine blog, Facebook/Twitter) and YouTube • Press Releases • Word of mouth
Place: CALine service price for our key Client CHSRA is still to be determined while the cost structure for the advertisements and marketing is as follows:
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MARKET STRATEGIES
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CALIFORNIA HIGH-SPEED RAIL SERVICE
cont.
ADVERTISEMENT AND MARKETING PRICING SHEET Revenue Streams
2015 - 2017
2018 - 2020
Offline Advertisement Digital signage - 1/3 screen
$350/month for 45 mins/day
$375/month for 40 mins/day
Digital signage - half screen
$650/month for 45 mins/day
$700/month for 40 mins/day
Digital signage - full screen
$1200/month for 45 mins/day
$1275/month for 40 mins/day
Video ads -full screen
$2000/month for 30 mins/day
$2200/month for 25 mins/day
City Attraction/Destination advertisement
$25/month - Time sensitive
$28/month - Time sensitive
City news and updates Ads
$10/month - Time sensitive
$12/month - Time sensitive
Hotels Advertisement
$25/month - Time sensitive
$28/month - Time sensitive
Rental Car Advertisement
$15/month - Time sensitive
$18/month - Time sensitive
Ad-hoc and Scheduled Messages
$12/month - Time sensitive
$15/month - Time sensitive
Online Advertisement (Banner Strip)
Affiliate Marketing Social Media Buttons
$0.99/ CPC
$1.29/ CPC
Integrating travel website in Content
$1.15/ CPC
$1.45/ CPC
Attraction ticket sale commission
12% annually/ CPA
15% annually/ CPA
Hotel booking commission
18% annually/CPA
20% annually/CPA
Rental Car booking commission
10% annually/CPA
12% annually/CPA
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ORGANIZATION AND MANAGEMENT ORGANIZATIONAL STRUCTURE: Being a small company it requires a simple organizational structure. Implementation of this organizational form calls for the owners to make all of the major management decisions in addition to monitoring all other business activities.
MANAGEMENT TEAM: Formed as a sole proprietorship, CALine is owned and operated by Sonia Ghazali. With an interest in design and management at an early age, the owner attended an architectural design school to learn the skills of the trade. Sonia has over eight years of experience in design development, user experience, space planning, and education and training. While pursuing her graduate degree in Design management from Savannah College of Art and Design, she worked at a local design firm where she mastered the skill of user experience, product development and management. Upon graduation, she knew that she wanted to start her own business as an experience designer and consultant combining the design aspect of architecture and design management. Sonia’s general responsibilities will be: overseeing client relationships and insuring that the final design meets the customer's expectations. Sonia will also negotiate and oversee the partnering relationships with design firms.
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CALIFORNIA HIGH-SPEED RAIL SERVICE
In the first six months of operation, Sonia will include her husband, Hammad Ghazali as a partner in her business. Later in the year, the company will hire four employees for the positions of marketing manager, account manager, production manager and UI/UX consultant. Hammad’s overall responsibilities will include: finance, legal, accounting, and general business guidance. He will also provide overall management for the company by supervising the sales and marketing manager and the account manager (yet to be hired). Hammad has been a co-founder of three businesses including a technology company that builds digital displays for aircrafts. He has eight years experience in all areas of general business including technology, management and finance, legal and general administrative functions. In these roles Hammad has gained significant experience hiring, training and managing people. The marketing manager will report to Hammad and be responsible for handling the day to day dealings with strategic partners and the advertisement and marketing efforts. The marketing activities will involve extensive contact with the media, as well as overseeing outside contractors for the development of sales collateral and other materials. The sales and marketing manager will also be responsible for developing company’s corporate identity. The account manager will serve a dual role as a book keeper and provide direct oversight for financial dealings with our partners and clients. The production manager will oversee the day to day flow of information between customers, CALine, and the outside design firms. The production manger will insure that the high-level design is carried out, production schedules are met, and the quality standards are maintained. The production manager reports to Sonia. The UI/ UX consultant will have the following responsibilities: design the kiosk application screens, including navigation and workflows; work with other designers and product managers to develop compelling design concepts using branding and style guide standards; and solve design and usability challenges quickly. The UI/UX consultant will work closely with Sonia and report directly to her.
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CALine
FINANCIAL PLAN FUNDING: Funds for this project will be raised concurrently, through strategic partnerships and advertising revenues. The amount of funds available will be based on projected cost requirements to meet the very rigorous technical specifications. It is our intent that this project be addressed in three phases. Phase I is to design, develop and provide all hardware and software necessary to implement a network of automated visitor kiosks to be installed as well as a corresponding budget. Once the kiosk and associated software have been developed, and the associated costs determined, Phase II will be initiated. Phase II will be the site by site installation of the kiosks at ten strategic location in major cities and initially operated segment of CHSR route of California. The major cities include San Diego, Los Angeles, San Jose, San Francisco and Sacramento. While the initially operated segment includes the following cities: San Fernando Valley, Bakersfield, Fresno and Merced. The timing of Phase II will be based on available funds. Phase III will be initiated with the completion of Phase II, different strategic locations will be selected in the main cities and also where the CHSR project is initialed. The number of the kiosk to be deployed and timing of Phase III will be based on available funds.
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COST STRUCTURE: CAPITAL COSTS (Per Unit) Component per Unit
Price
Floor Standing customized Mounts
$
450
42" Dual touch screen
$
1,295
Wireless Hot spot router
$
195
Media player and software
$
245
Speakers and Microphone
$
250
Printer
$
650
Barcode reader
$
465
Magstripe Full Insert Card Reader
$
175
Cash Collector
$
375
Webcam
$
225
Kinect Sensor
$
275
In-Build Blue tooth
$
135
Project Management
$
175
Installation and cabling
$
715
Site Survey
$
175
Total Capital Expenses:
$
5,800
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FINANCIAL PLAN
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COST STRUCTURE: (cont.) OPERATING COST (monthly) Cost Category
Price
Connectivity- T1 connection
$
345
Remote management (SaaS)
$
200
Space Cost
$
800
Miscellaneous
$
155
Total Operating Expenses
$
1,500
PHASE I+II REQUIRED FUNDING Cost Category
Price
Capital Cost for 10 units
$
58,000
Content Development
$
5,000
24/7 Customer Support (36 Months)
$
9,000
Advertising/Promotion
$
18,000
Permit and License (36 Months)
$
360
Miscellaneous
$
1,200
Total Funding required till Phase I + II
$
91,560
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FINANCIAL PLAN
CALIFORNIA HIGH-SPEED RAIL SERVICE
SIX YEARS FINANCIAL PROJECTION PLAN Revenue Streams
2015
2016
2017
2018
2019
2020
Offline Advertisement Digital signage - 1/3 screen
25200
37800
50400
67500
67500
67500
Digital signage - half screen
31200
46800
62400
84000
100800
100800
Digital signage - full screen
43200
57600
72000
91800
107100
122400
Video ads -full screen
72000
96000
120000
158400
184800
184800
1500
3000
4500
6720
8400
10080
600
1200
1800
2400
3000
3600
1500
4500
6000
6720
6720
6720
Rental Car Advertisement
900
1800
2700
3240
3240
3240
Ad-hoc and Scheduled Messages
720
1440
2160
3600
4500
5400
5940
7920
9900
15480
18060
20640
11500
13800
16100
23200
26100
29000
6720
7200
7680
10200
10800
11400
12960
13680
14400
16800
17600
18400
4000
4200
4400
5520
5760
6000
$ 161,540
$ 212,340
$ 261,640
$ 344,080
$ 396,080
$ 421,680
Online Advertisement (banner strip) City Attraction/Destination advertisement City news and updates Ads Hotels Advertisement
Affiliate Marketing Social Media Buttons Integrating travel website in Content Attraction ticket sale commission Hotel booking commission Rental Car booking commission
Total Revenue:
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CONCLUSION
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CALIFORNIA HIGH-SPEED RAIL SERVICE
CALine is a start-up company that is currently offering travel and tourism integration services to California High Speed Rail Service. CALine Interactive Kiosk will meet the requirements of current and future customers of CHSR and other transport services who prefer the idea of one-stop, interactive service terminal at their finger tips. The kiosk incorporates a user-centric design coupled with advanced firmware and hardware to outdo the current kiosk standards. CALine is a small company and is likely to face several challenges in the market. However, it will use its size and innovative service-design to gain advantage over these challenges.
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