Executive summary
This business plan is for a proposed new Android app for individual traffic violations in Kuwait. The App will be unique and first of its kind in the market, integrating much of the services currently offered online by Kuwait Ministry of Interior (MOI). The proposed Android App will not only list the traffic violations of the user, but also identify the Government Traffic department that the violator will be required to pay the fines. In order to use the application, the use will need to register via an email account and provide his/her Civil ID number. The new Android App will provide users with quick and efficient service than the slow MOI website, in addition to enabling the user to find out whether he/she has any traffic violations unaware of considering the indirect traffic fines common in Kuwait. The user-friendly and convenient App is targeted at anyone living in Kuwait with a driving license, and it is estimated that over 100,000 users will be interested. The strategy will involve offering the product as a paid App for drivers in Kuwait with Android Smart phones. The project’s total funding requirements are estimated to be about $90,000, provided by the University and other interest sponsors.
The Team
Our team for developing this business plan for the proposed new Android traffic violations App consists of three members: Yousef Aldhubibi, Sultan Alfares, and Eissa Alshehab. Considering that this is a university project, we shall not take on too specific roles, instead the workload will be spread evenly to allow for equal contribution from all team members. However, it is worth noting that while all the three members will be working in all aspects of the project, each member will have greater input in their areas of competency. As such, Yousef area of expertise will be in programming, Sultan will take care of speaking and organization while Eissais will led in the information gathering and related research.
Product
This business plan is for a proposed new Android App for individual traffic offenses in Kuwait. The App will offer, in a more user-friendly and convenient way, such services currently offered by the Kuwait Ministry of Interior as Violations Payment, Inquiry about Driving License Status, Inquiry about Traffic Violations for Vehicles, Inquiry about Vehicle Record Status. In addition, the new Android App will have unique features such as providing the user with information of any existing traffic violations he/she is unaware of that have attracted fines. The product will also inform the violating driver of the specific Government Department to which to settle the fine. The App will enable the violating motorists to pay their fines online for different type of violation as established by the General Traffic Department: jumping red traffic signal fine of KD 250; reckless driving and violations against the of traffic fines of KD 200, overspeeding to attract double the current fine; and parking in designations reserved for physically-handicapped to pay fine of KD 200 (Kuwait Government Online, 2013). The Product will be used exclusively by Android Mobile users.
Vision and objectives
To provide as many Kuwait drivers as possible with requisite portability to a mobile tool for settling and monitoring their traffic rules compliance.
SWOT analysis
Strengths
• Strong brand image – AppleStore is a well known brand for revolutionary smartphone mobile app users.
• Large market share – Android is currently best selling mobile OS in the world with estimated over 8.6 billion mobiles with Android OS (Guihot, 2012).
• Open source development portal – there is great support for revolutionary development of apps by tech savvy individual, small companies and freelancers.
• VodaFone GPRS VAS Integration – the value added provided by VodaFone enables smooth downloading of softwares from the Apple Store (Sandberg & Rollins, 2013). The new Android App to traffic drivers would also be offered.
Weaknesses
• High competition in the App sector – stiff competition in the Apps market forcing developers to have as high as 30-40% free app offering (Guihot, 2012).
• Less market exposure – the new product is the first of its kind in the Kuwait market and thus little known by potential users risking slow uptake in the beginning.
• Limited customer base – the new product would only be offered to drivers in Kuwait with Android platform smartphones.
Opportunities
• New development in the Android market – the proposed individual traffic offense App would be the newest on the App Store (Sandberg & Rollins, 2013).
• Bargaining power – the developers can bargain for higher compensation with the new technology.
• Growing Android OS market – increasing number of Kuwait people are acquiring smart phones, especially Android-based gadgets (Guihot, 2012).
• Very slow and unreliable MOI website – many drivers visiting the MOI website are frustrated with its slow speed and tendency to freeze; provides opportunity for a faster and convenient new Android App for individual traffic offenses.
Threats
• New entrants – the products faces serious threat from potential new entrants such as Airtel, Samsung, Micromax and other mobile app developing companies
• Substitutes – the new Android App would have potential substitutes such as Windows and Java Apps.
• High customer bargaining power – targeted customers would have high bargaining power for the new product due to increasing competition in the Apps market encouraging free apps offering (Hughes, 2010).
• High number of new apps – there increasing number of new markets threatens to exceed demand for the apps and result in diminished returns in revenue, especially for paid apps.
Market and competitive analysis
Market Analysis
In the recent past, there has been increasing proliferation of mobile apps in Kuwait, with particular increase in popularity among low end customers who are acquiring smart phones (Hughes, 2010). Some of the popular apps include the Urban Moon Kuwait guide (providing search interface for best places to shop, eat, visit, etc); Kuwait Map (a customized Kuwait map app available offline and offering Arabic street names); X-cite mobile app connecting to Alghanin Electronis’s online store; Talabat.com (Kuwait’s leading food-delivery website’s app that enables order on the go; Kilshay (app for finding offers and promos from companies in Kuwait); Kuwait Blogs (a blog aggregation for selected popular blogs in Kuwait); Cinescape (mobile app for reserving tickets); and WR Kuwait Radio (internet-based broadcasting app for listening to any radio station in Kuwait) (Salz & Moranz, 2013).
Competitor Analysis
In the Kuwait market, there are no competitors as such for the proposed new Android App for traffic violations. However, significant competition is expected from the existing Kuwait Labor Law App – a new app offered on Android and iOS devices (Salz & Moranz, 2013). The App offers quick access to the Kuwait labor law and traffic violations along with all listed penalties, requirements, and updated modification to the driving license requirements in Kuwait. However, our proposed new Android App would have the advantage of affordability as the Kuwait Labor Law App is currently has a premium asking price of $3.99.
Strategy
Getting a new mobile app to be noticed and taken up in the increasingly crowded mobile app has become a difficult endeavor for app developers (Stutely, 2012). In the Kuwait app market that well compares with a dense forest consisting millions of trees, we will employ a number of strategies to help move our new product up the increasingly-growing list of apps. As such, we shall use word-of-mouth marketing techniques, SEO tricks, and built-in demographic identifiers (Turner, 2011). We shall rely on tried and tested PR marketing campaign tools through such initiatives as selecting strategic partners, developing clever story angles to fit together with newsworthy occasions. Also, we shall we shall undertake several cause marketing campaigns and contests to get our new product noticed. While we understand that there is no competition as such for our proposed product in the AppStore, we would not be proud enough to overlook the need for a winning marketing plan around our app. We will create a focused and targeted consumer marketing strategy with the aim of creating a lasting first impression amongst potential consumers in Kuwait. Our first swing will also have to be a hit in light of the budgetary constraints we face with the introduction of this new product.
Our strategic partner would have to be an effective ‘marketing’ partner, with broad media appeal so as to be newsworthy. In this regard we shall seek to partner with the Zaid Ashkanani, the famous young and promising Kuwait rally driver who performed impressively in his debut at the recent Bahrain International Circuit. The star driver tied to a newsworthy driving event that resonates with a specific demographic. It is crucial to have a newsworthy partner considering that we seek to generate sufficient media coverage for the new app (Stutely, 2012). To ensure maximum success with the marketing of our new app, we strike to reach majority of our niche audience after whittling it down to a very specific demographic. We shall target drivers in Kuwait with great potential to give positive response to our app and benefit it with sufficient word of mouth.
Financial plans
Figure 1 below shows our estimated start-up summary for the new Android App for individual traffic offences in the Kuwait market.
The table below shows the projected start-up summary of our proposed new Android app
Figure 2. Start-up requirements
The table below shows the projected start-up requirements of our proposed new Android app
Start-up Requirements
Legal $1,000
Insurance $1,000
Rent $2,000
Expensed Equipment $4,000
Total Start-up Expenses $8,000
Start-up Assets
Cash Required $2,000
Start-up Inventory $30,000
Other Current Assets $0
Long-term Assets $50,000
Total Assets $82,000
Total Requirements $90,000
Figure 3. Start-up Funding
The table below shows the projected start-up funding of our proposed new Android app
Start-up Funding
Start-up Expenses to Fund $8,000
Start-up Assets to Fund $82,000
Total Funding Required $90,000
Assets
Non-cash Assets from Start-up $80,000
Cash Requirements from Start-up $2,000
Additional Cash Raised $0
Cash Balance on Starting Date $2,000
Total Assets $82,000
Liabilities and Capital
Current Borrowing $0
Long-term Liabilities $50,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $50,000
Capital
Planned Investment
Robert Conway $40,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $40,000
Loss at Start-up (Start-up Expenses) ($8,000)
Total Capital $32,000
Total Capital and Liabilities $82,000
Total Funding $90,000
Figure 4. Sales forecast
The table below shows the projected sales of our proposed new Android app
Figure 5. Projected 3-year Profit
The table below shows the projected yearly profits of our proposed new Android app
Risk and opportunities
Risks
The app development process is relatively a new phenomenon and in many cases the challenges involved reflect those associated with the development of custom software. For instance, when apps are developed by third parties like us, particularly on non-contractual basis, there is always the risk of running into issues of intellectual property rights when it transferred to the client. As such, it may require prior preparation of a consulting agreement taking care of, among other thing, the ownership of the resulting app and related intellectual property (Stutely, 2012). In addition, we may be challenged (as developers) to indemnify the customer from any claims arising from any third party to the effect that the new app (including all data presented or accessed by it) violates any intellectual property or related rights of that particular third party.
It is also feared that the proposed product may lack privacy policies. This is especially because the individual traffic violations app would gather personal data from the registered drivers in Kuwait. We would require a conspicuously posted privacy policy detailing how personal is gathered, utilized, and shared (Stutely, 2012).
Opportunities
A significant number of people in Kuwait own smart phones with a few using desktops and laptops (Kuh, 2012). This represented a solid target market for our new Android app for individual traffic violations. About 40 per cent of the population of about 2.5 million population have some of the highest disposable incomes in the world, and the government is largely pro-business (McCann, 2012).
The new Android app will be sold both through the App store and via the Internet to registered users. It is our belief that the new product will be a start product, with high market growth and high market share being the only one of its kind in Kuwait.
Conclusion
This business plan relates to the planned development and introduction of a new Android App for individual traffic violations in Kuwait. The new app will have superior characteristics over the MOI website currently offering close to similar service – it will be faster and convienient as well as highly reliable. In order to use the application, the use will need to register via an email account and provide his/her Civil ID number, and is targeted at anyone living in Kuwait with a driving license. There is a market potential of over 100,000 users for the new app. The project’s total funding requirements are estimated to be about $90,000.
Elevator Pitch
In 2012, Kuwait made history for the wrong reasons by breaking the world record in the number of traffic deaths with an average of 17 fatalities in every 10,000 cases. Extensive campaigns by the General Traffic Department in conjunction with the Ministry of Interior have resulted in millions of Kuwait dinars collected in fines, and stricter penalties against traffic violations. The government is projected to spend in the range of 26 billion Kuwait Dinars in the coming years on traffic-related violations. There are as many as 20,000 drivers in the country driving using forged licences that have been issued since 2010. The new Android App will go a long way in fighting traffic offenses and curbing the number of road fatalities in Kuwait.
Reference:
Stutely, R. (2012). The definitive business plan: The fast-track to intelligent business planning for executives and entrepreneurs. Harlow: Financial Times Prentice Hall.
Guihot, H. (2012). Pro Android Apps Performance Optimization. (2012). Berkeley, CA: Apress.
Sandberg, R., & Rollins, M. (2013). The Business of Android Apps Development: Making and Marketing Apps that Succeed on Google Play, Amazon App Store and More. Berkeley, CA: Apress.
Hughes, J. (2010). Android Apps Marketing: Secrets to Selling Your Android App. New Jersey: Pearson Education.
Salz, P. A., & Moranz, J. (2013). The everything guide to mobile apps: A practical guide to affordable mobile app development for your business. Avon, Mass: Adams Media.
Kuwait Government Online. (2013). Inquiring About Traffic Violations for Individuals. Retrieved from: http://www.e.gov.kw/moi_en/pages/eservices/trafficviolation.aspx
Kuh, N. (2012). Foundation iPhone app development: Build an iPhone app in 5 days with iOS 6 SDK. New York: friends of ED.
McCann, T. (2012). The Art of the App Store: The Business of Apple Development. Indianapolis: John Wiley & Sons.
Turner, J. (2011). Developing Enterprise iOS Applications: IPhone and iPad Apps for Companies and Organizations. Sebastopol: O’Reilly Media.
