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The Feasibility and Costs of a New Cross Platform Mobile App

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Peerapol Chongchirasiri

on 19 December 2013

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Transcript of The Feasibility and Costs of a New Cross Platform Mobile App

It is important that the sports tracking app should not only record cyclist’s performance, but also encourage users to enjoy doing a cycling.

As the success of app depends on identifying niche market, the company should improve its main feature, realtime turn-by-turn navigation to fulfill this market.

Provided the main features of the app for free but make user subscribe for accessing other features.

Global market in other the most cycle friendly nations such as Australia, United State, Canada, and Netherlands.
The ideal revenue model is
a combination of
freemium
,
subscription
, and
advertising-supported
models
.
The Feasibility and Costs of a New Cross Platform Mobile Application Aimed at Cycling Marketplace
Internship Presentation
Peerapol Chongchirasiri
Coventry
University

Overview
Characteristics in an app market
Consumer behaviour
Competitors analysis
SWOT analysis of the application
Financial analysis and Revenue model
Characteristics in an app market
But Apple's App store generates higher revenue than Android's Store (Google Play).
App market grows along with the development of smartphone.
Everyone can enter the market.

Many kinds of app.

Game is the king of the mobile eco-system.

App developers must return
30%
of revenue to mobile platform providers.

Overall, sales in app markets generate more than
$26 billion
globally in 2013 and will increase to
$77 billion
in 2017.
Characteristics in an app market
Consumer behaviour towards sports tracking app in the UK
Cycling is one of the popular activity in the UK.

Most British cyclists go for cycling everyday!
Most cyclists are young adult.
START
Goals and Objectives
App on Smartphone
Cycle Computer
Sports Watch
Accuracy & Efficiency
Accessibility
Navigation
Social Networks
"To provide an in-depth analysis of current mobile app market for the company to assess the viability of developing, marketing and launching a mobile application using in cycling market."
Today, Android OS shares the largest percentage in smartphone market globally.
Android
iOS
Windows
Blackberry, Symbian, etc.
Apple's App Store
Google Play
Windows Store
Competitor Analysis : Strategic Group Analysis
Competitor Analysis
s
w
o
T
Thank You
Questions
&
Answers
RunKeeper
Endomondo
MapMyRide
Strava
Runtastic
Road Bike
Which device do you use?

Most Google's app is more expensive than Apple's.
When did you last go cycling?
Average age of the UK cyclists
If you have to buy a sports tracking app / device, how would you rank the functions that influence your buying decision?
There are over 240 apps that can be used for sports tracker.
Free App
Freemium
Premium
Mass Marketing
Segment Marketing
Niche Marketing
Group 1
Group 2
Group 3
Group 4
Group 5
Group 6
Group 7
95.13% of apps are
free
.

Runtastic
is the only app that targets on specific niche market.

RunKeeper
,
Endomondo
,
MapMyRide
,
Strava
, and
Runtastic
approach 65% market share in the market.
Competitor Analysis : Strategic Group Analysis
FitnessKeeper Inc. was established in Boston, US, in 2008

The app has been downloaded more than 7 million users in iOS and more than 10 million users in Android.

TIME Magazine named this app as one of the top 10 iPhone applications of 2009.
Competitor Analysis: RunKeeper
"Health Graph API" feature
Position itself in professional in sport tracking

Expand to other devices eg. Pebble Smartwatch
Competitor Analysis: Endomondo
Competitor Analysis: RunKeeper
Found in 2008

The head office is based in Copenhagen, Denmark.

The objective is
“to make fitness fun by making it more social and more engaging”
'Peptalk' feature
Competitor Analysis: Endomondo
In the future, the app may increase other activities eg. mushroom harvesting, pipeline mapping, or tracking dog daily activities
Competitor Analysis: MapMyRide
MapMyFitness Inc has $23.5 million of funding from many investors.

The company is now acquired by Under Armour, a sports clothing and accessories company.

Have various products eg. running, hiking, walking, winter sports, and cycling.
Competitor Analysis: MapMyRide
The company has invested on media, e-commerce, and enterprise software.

Working with NBC Sports to cover every stage of the Tour de France.
Competitor Analysis: Strava
The company was found in 2009 in San Francisco

Now having 2 apps; Cycling and Running.

The app is very popular in the UK.
What is the mobile application that you use for tracking your performance?
The most well-known feature is KOM (a leaderboard system).
Competitor Analysis: Strava
Competitor Analysis: Strava
Strava’s controversy
http://www.vitalmtb.com/news/news/Stravacide-Family-Suing-Strava-Over-Sons-Death,478
The company characterised the cycling app into road and mountain bike.

The company’s objective is '
to be a full-service health and fitness platform'
.
MapMyWalk
MapMyHike
MapMyRun
MapMyRide
Among these 5 apps, Runtastic seems to earn the highest revenue from selling 30 different apps in various activities.
Competitor Analysis: Runtastic
Running&Walking
Wintersports
Mountain Bike
Road Bike
Push Ups
Squats Trainer
Sit Ups
Pull Ups
Heart Rate Monitor & Pulse Tracker
Altimeter
Pedometer Step Counter
Competitor Analysis: Runtastic
Competitor Analysis: Runtastic
Estimated Revenue
The company has cooperated with its suppliers to introduce the hardware section under Runtastic brand.
Familiar tracking features as exploring a cycling route and sharing data via social network.

Realtime turn-by-turn navigation.
Strengths
Weaknesses
Data may not accurate.

Cause of accident.

Regular update on a map and a cycling route.

Require the cellular network when using navigation.
Grants supported by government and public organisation in the UK.

Increase of app users.

Global market.

Outsource into countries which have lower labour cost.

Opportunities
India
Russia
Ukraine
Be substituted by other apps, other devices , or new technology.

Many competitors in the market.

Regulation
Threats
SmartWatch
Google's Map
Cycle Atlas app
Google's SmartGlass
Cycle Computer
http://www.cycleatlas.com/the-local-project.html
Cost Forecasting
Estimated Cost = £3,000
Estimated Cost = £9,000
Testing = £2,000
App Validation = £2,000
Direct Costs
Marketing, Service, and Maintenance
Software Development
Design and Mock-up
Indirect Costs
(eg. servers and back-up support, management costs)
Estimated Costs = £11,250
Total development costs =
£33,750
Recommendations
"Apps should encourage users to enjoy a cycling"
Revenue Model
Why Subscription?
Assured a predictable and constant revenue.

Encourage users to involve a longer term commitment.
According to Flurry, consumers usually keep sports tracking apps on their smartphone.
Viral effect.
Build its own social group or community.
Help new app to enter the ranks of top downloads more easily.
Why Freemium?
After many users download the app, advertising is a good source of revenue.

Beware that adverts may disturb users!
Why Advertising-supported?
How much for a subscription?
Subscription; £4.99 monthly, £19.99 yearly
RunKeeper
Endomondo
MapMyRide
Strava
Runtastic
Subscription; £2.99 monthly, £19.99 yearly
Paid £1.99 for Full Version
Subscription; £4 monthly, £39.99 yearly
Paid £2.99 for Full Version
Prices in the market
Consumer's Viewpoint
The app's price should be at
£2.99.
With this ideal revenue model , the app will return profit when has been downloaded
645,000 times.

Revenue Model
Scenario Analysis
Other Financial Sources
Grants

Eurostar Ashden Award

Bike Hub's best practice; The Bicycle Association of GB and the Association of Cycle Traders
Full transcript