Developing a market strategy for looma

Developing a Market Strategy for Looma
Nitya Subramani
Master of Engineering Management
Dartmouth College
ENGG 390 1

Company Overview
• Non- profit organization, founded in 1996 in Nepal
• VillageTech Solutions (VTS) aims to use technology to better lives in
resource deprived countries
ENGG 390 2

Need for Looma
• Developing countries lack basic infrastructure required for
education
• Recent attempts have failed due to high cost of acquisition and
maintenance
• VTS aims to aid the educational experience for both students and
teachers
• Result: Looma system
3ENGG 390

Looma device
• Looma is a low-power, audio-visual projector-education system
• Features of Looma:
a) Online and offline educational content
b) Interactive whiteboard capability
c) Internet connection through cellular network/Wi-fi
d) Local storage capability
e) Compact and Low power consumption
ENGG 390 4

Problem Statement
• Currently conducting field-trials in Nepal
• Looma is a product with global appeal
• Role:
– Selection of target markets for further expansion of Looma
– Estimating market size in further markets
– Marketing plan for Looma
• Segmenting, Targeting and Positioning (STP)
• Marketing Mix
ENGG 390 5

Agenda
Database Creation
Market Sizing
Target Market Selection
Marketing Plan
6

Database creation
7
Database Creation Market Sizing Target Market Selection Marketing Plan
• Preparation of database for Market research/ Analysis
• Countries categorized based on geography
• Each country has statistics relevant to population, economic growth
and the education sector
• Sources: UNICEF, UNESCO, World Bank

Factors considered for Data Analysis
• Gross National Income (GNI) per capita (US$)
• Income Group
• Target Population (Ages 6-17)
• Average class size for the region (Range)
Average class size estimated from secondary market research
8

Agenda
Database Creation
Market Sizing
Marketing Plan
9

Data Analysis
Consider China as the selected country for Market Sizing Procedure
10

Market Sizing Procedure
• Formulas:
• Estimated number of classrooms= Target population (6-17)/
Average Class Size (40-60)
11

12

• Formulas:
• Estimated number of schools= Estimated number of classrooms/ 8
13

14

• Formulas:
• Relative Propensity = __(GNI of China- GNI of Nepal)__
(GNI of Malaysia - GNI of Nepal)
• Function to reveal maximum of either the number of schools, or
the number of classrooms times the propensity to install in
classrooms (0 for Nepal and 1 for Malaysia)
15

16

Agenda
Database Creation
Market Sizing
Marketing Plan
17

Selection of Target Markets
• Top 20 countries based on Market Size
• Other factors considered for selection of target markets:
– Gross Domestic Product (GDP)
– Sympathy factor of a country (Donor interest) (%GDP)
– Spending on education per child (%GDP)
– Number of people in the world speaking the language (1st/2nd
language)
18

19
19
Country
Population
6-17 (‘000)
Number of
Loomas
(Market
Size) (in
thousands)
GDP (US$)
MM
Sympathy
Factor
(donor
interest)
(%GDP)
Spending on
Education
per child (%
GDP)
Official
Language
Number of people in the
world speaking the
language
India 319330 726-814 1,847,982 0.11 7.2
Hindi, English
(2nd official)
Hindi- 370 M L1, 120 M L2,
English - 340 M L1, 220 M
L2
Indonesia 56208 409-512 846,832 0.15 9.6
Bahasa
Indonesia,
English (some
parts)
Bahasa Indonesia- 23 M
L1, 140 M L2, English- 340
M L1, 220 M L2
Philippines 27720 143-179 224,754 0.02 9.4
Filipino,
English
Filipino- 22 M L1, 65 M L2,
English- 340 M L1, 220 M
L2
Pakistan 51809 118 211,092 0.73 8.4
Urdu, English
(2nd official)
Urdu- 61 M L1, 43 M L2,
English- 340 M L1, 220 M
L2
Nigeria 51338 104 235,923 0.55 7.9 English 340 M L1, 220 M L2

20
20
Country
Population
6-17 (‘000)
Number of
Loomas
(Market
Size) (In
thousands)
GDP (US$)
MM
Sympathy
Factor
(donor
interest)
(%GDP)
Spending on
Education
per child
(% GDP)
Official
Language
Number of people in the
world speaking the
language
China 240567 2359-2621 7298097 0.02027255 6.1
Standard
Mandarin 870 M L1, 180 M L2
Brazil 44334 877-939 2476652 0.018588 22.6 Portuguese 200 M L1, 252 M L2
Mexico 28538 561-601 1155316 0.01290902 15.2 Spanish 350 M L1, 70 M L2
South Africa 13045 260-308 331654.7 0.33926252 17.6
Zulu,
Afrikaans,
English
Afrikaans- 6.5 M L1, 23 M
L2, Zulu- 11 M L1, 26 M
L2, English- 340 M L1,
220 M L2
Malaysia 7378 211-264 278671.1 0.05544529 15.4
Malay,
English
Malay- 40 M L1, 180 M
L2, English- 340 M L1,
220 M L2

21
Conclusions
21
Initial Expansion (1st stage) Further Expansion (2nd stage)
India
Indonesia
Philippines
Pakistan
Nigeria
China
Brazil
Mexico
South Africa
Malaysia
• Initial expansion- Lower Middle Income countries
• Further Expansion- Upper Middle Income countries

Agenda
Database Creation
Market Sizing
Marketing Plan
22

Product Cycle
23

Target Market Segmenting, Targeting
2424
• NGOs/INGOs: Fewer partnerships, better funded, easier to monitor

• Value Proposition:
‘Looma can be the medium to assist resource-deprived remote
schools access local and global educational content.’
25
25
Positioning Looma in the Target Market

Other Recommendations
• Marketing Mix: Product, Place, Price, Promotion (4Ps)
• Product: Looma device
• Place: NGOs/INGOs of developing countries
• Price: Dual-pricing methodology
• Promotion: Crowd-funding platforms, Teacher-training
organizations, Social Media impressions
2626

Success DashBoard
27
Success Dashboard for Looma
Business Goal
Brand
Value
Proposition
Looma will help resource-deprived remote schools access local and global
educational content
Customer
Centric
Objectives
Buildpartnershipswith
contentdevelopers/
teachertraining
organizations
Maketherequired
numberofdevices
(In-house/outsource)
Set-up Loomas in 3 target countries in the next 5 years
Target
Customer NGOs/INGOs in developing countries
$fundsthroughcrowd-
fundingplatforms
SocialMediaMarketing
outputs/website
impressions

VTS’ 3-stage expansion for Looma
• Initial field trials: Countries in 1st stage of expansion
• Full scale expansion: Countries in 1st and 2nd stages of expansion
28
Feedback Feedback
28

• Target countries for further expansion:
• Target market: NGOs/INGOs of developing countries
• Business goal: Set up Looma in 3 countries in the next 5 years
• Pricing strategy: Dual-pricing methodology
29
Final Recommendations
29
Initial Expansion Further Expansion
India
Indonesia
Philippines
Pakistan
Nigeria
China
Brazil
Mexico
South Africa
Malaysia

Appendix
• References:
– http://www.unicef.org/infobycountry.html
– http://www.unesco.org/new/en/education/
– www.oecd.org
– www.worldbank.org
– http://www.col.org/PublicationDocuments/pub_02SchoolnetPacific.p
df
– Evaluation of entry and penetration strategies to Middle East market,
(2012) Urdagul, Ozsoy
– http://www.oecd.org/dataoecd/25/13/35274774.pdf
– Final Report, (2012) ENGS 89-90, Williams, Nuna et al
– 'Exponential Marketing, (2012)- Paul Garrison
ENGG 390 30

• Income groups
o LMI (Lower middle income) ($1006-$3975)
o UMI (Upper middle income) ($3976 - $12275)
o LI (Low income) ($1005 or less)
o HI (High income) ($12276 or more)
Source: www.worldbank.org
Appendix
ENGG 390 31

ENGG 390 32
Country
GNI per
capita
(US$), 2010
Population 6-
17 ('000)
No. of Loomas if 1/school at
Burundi & 1/classroom at
Seychelles income levels (Class Size-
45) (in thousands)
No. of Loomas if 1/school at
Burundi & 1/classroom at
Seychelles income levels (Class
Size- 60) (in thousands)
Angola 3960 6789 61 46
Botswana 6890 560 9 7
Burundi 160 2576 6 5
Comoros 820 234 1 0
Eritrea 340 1657 4 3
Ethiopia 380 28448 65 59
Kenya 780 13153 30 27
Lesotho 1080 696 2 1
Madagascar 440 7026 16 15
Malawi 330 5148 12 11
Mozambique 440 7973 18 17
Namibia 4650 703 13 11
Rwanda - - - -
Seychelles 9490 29 1 1
Somalia 980 3105 7 6
South Africa 6100 13045 308 260
South Sudan,
republic of - - - -
Swaziland 2600 391 2 2
Tanzania, united
republic of 530 14954 34 31
Uganda 490 12006 27 25
Zambia 1070 4525 10 9
Zimbabwe 460 4174 9 9
Total 634 546
Appendix
Market Sizing- East and South African Region

ENGG 390 33
Country
GNI per
capita
(US$), 2010
Population 6-
17
# Loomas if 1/school at
Tajikistan & 1/classroom at
Croatia income levels (Class
size-26) (in thousands)
Tajikistan & 1/classroom at
Croatia income levels (Class
size-21) (in thousands)
Albania 4000 687 7 8
Armenia 3090 548 4 5
Azerbaijan 5180 1637 21 26
Belarus 6030 1264 20 24
Bosnia and Herzegovina 4790 530 6 8
Bulgaria 6240 882 14 18
Croatia 13760 602 23 29
Georgia 2700 659 4 5
Kazakhstan 7440 3084 61 75
Kyrgyzstan 880 1359 8 8
Macedonia (The former Yugoslav Republic
of) 4520 341 4 5
Moldova - - - -
Montenegro - - - -
Romania 7840 2854 60 74
Russian Federation 9910 17859 483 598
Serbia - - - -
Tajikistan 780 2179 13 13
Turkey 9500 16696 431 534
Turkmenistan 3700 1298 11 14
Ukraine 3010 5647 37 46
Uzbekistan 1280 7202 43 43
Total 1250 1533
Appendix
Market Sizing- Central, Eastern Europe and the Commonwealth states

34
Appendix
Country
GNI per
capita (US$),
2010
Population 6-17
MM
# Loomas if 1/school t
Cambodia & 1/classroom at
Malaysia income levels
(Class Size-28) (in
thousands)
Cambodia & 1/classroom at
Malaysia income levels (Class
Size-35) (in thousands)
Cambodia 760 4068 15 15
China 4260 240567 2621 2359
Cook Islands - 6 - -
Fiji 3610 209 3 2
Indonesia 2580 56208 512 409
Kiribati 2010 26 0 0
Korea - - - -
Lao Democratic Republic 1010 1922 7 7
Malaysia 7900 7378 264 211
Marshall Islands 2990 15 0 0
Micronesia 2700 36 0 0
Mongolia 1890 624 4 3
Myanmar - 10981 - -
Nauru - 3 - -
Niue - 1 - -
Palau 6460 5 0 0
Papua New Guinea 1300 2150 8 8
Philippines 2050 27720 179 143
Samoa 2930 60 1 1
Solomon Islands 1030 168 1 1
Thailand 4210 12964 224 179
Timor-Leste 2220 410 3 2
Tokelau - - - -
Tonga 3380 32 0 0
Tuvalu - 3 - -
Vanuatu 2760 74 1 1
Vietnam 1100 18795 67 67
Total 3907 3407
Market Sizing- East Asia, Pacific Islands

35
Appendix
Country
GNI per
capita(US$),
2010 Population6-17
# Loomas if 1/school at Turkey
& 1/classroom at Norway
incomelevels (Class Size-20)(in
thousands)
# Loomas if 1/school at Turkey &
1/classroom at Norway income
levels (Class Size-24) (in
thousands) Population>18
Assuming 13 %
targetmarket
(Students,
professors)
Assuming 5%
penetration(#
Loomas)
Andorra 41130 11 0 0 70 7 0
Australia 43740 3656 82 69 17154 1715.4 86
Austria 46710 1148 28 23 6860 686 34
Belgium 45420 1560 37 31 8536 853.6 43
Canada 41950 5037 108 90 27097 2709.7 135
Czech Republic 17870 1295 7 7 8650 865 43
Denmark 58980 888 29 24 4336 433.6 22
Estonia 14360 170 1 1 1093 109.3 5
Finland 47170 788 20 16 4278 427.8 21
France 42390 9780 212 177 49033 4903.3 245
Germany 43330 10055 224 187 68780 6878 344
Greece 27240 1397 16 14 9376 937.6 47
Hong Kong, China - - - - - - -
Hungary 12990 1328 7 7 8165 816.5 41
Iceland 33870 57 1 1 239 23.9 1
Ireland 40990 756 16 13 3356 335.6 17
Israel 27340 1628 19 16 5055 505.5 25
Italy 35090 7373 124 104 50276 5027.6 251
Japan 42150 15040 324 270 106065 10606.5 530
Lithuania 11400 462 2 2 2696 269.6 13
Luxemborg 79510 79 4 3 399 39.9 2
Netherlands 49720 2619 69 58 13060 1306 65
New Zealand 29050 774 10 8 3282 328.2 16
Norway 85380 811 41 34 3769 376.9 19
Poland 12420 5163 27 27 31181 3118.1 156
Portugal 21860 1429 12 10 8730 873 44
Republicof Korea - - - - - - -
San Marino 50670 4 0 0 26 2.6 0
Slovakia 16220 765 4 4 4421 442.1 22
Slovenia 23860 243 2 2 1688 168.8 8
Spain 31650 5668 83 69 37888 3788.8 189
Sweden 49930 1367 36 30 7456 745.6 37
Switzerland 70350 1068 43 36 6220 622 31
Turkey 9500 16696 87 87 49643 4964.3 248
United Kingdom 38540 9310 178 148 48960 4896 245
United States 47140 53551 1328 1107 235183 23518.3 1176
3181 2673 4165
Total 7346
6838
Market Sizing- Industrialized Countries

36
Appendix
Country
GNI per capita
(US$), 2010 Population6-17
# Loomas if 1/school at Haiti &
1/classroom at Trinidad and Tobago
incomelevels (Class Size-28)(in thousands)
# Loomas if 1/school Haiti & 1/classroom
at Trinidad and Tobago income levels
(Class Size-30) (in thousands)
Antigua and Barbuda 10610 20 0 0
Argentina 8450 8720 165 154
Barbados >9076 45 - -
Belize 3740 94 1 1
Bolivia - - - -
Brazil 9390 44334 939 877
British Virgin Islands - - - -
Chile 9940 3450 78 73
Columbia 5510 11441 135 126
Costa Rica 6580 1051 15 14
Cuba 5550 1834 22 20
Dominica 4960 16 0 0
DominicanRepublic 4860 2616 27 25
Ecuador 4510 3752 35 33
El Salvador 3360 1807 12 11
Grenada 5560 25 0 0
Guatemala 2740 4787 24 23
Guyana 3270 238 2 1
Haiti 650 3023 13 13
Honduras 1880 2354 10 10
Jamaica 4750 714 7 7
Mexico 9330 28538 601 561
Montserrat - - - -
Nicaragua 1080 1719 7 7
Panama 6990 860 13 12
Paraguay 2940 1833 10 9
Peru 4710 7538 74 69
Saint Kitts and Nevis 9980 12 0 0
Saint Lucia 4970 40 0 0
Saint Vincent and the Grenadines 4850 26 0 0
Suriname 5920 128 2 2
Trinidadand Tobago 15380 241 9 8
Turks and Caicos islands - - - -
Uruguay 10590 673 16 15
Venezuela 11590 7244 192 179
Total 2409 2251
Market Sizing- Latin America, Caribbean

37
Appendix
Country
GNI per capita
(US$), 2010 Population 6-17
Yemen & 1/classroom at
Bahrain income levels (Class
Yemen & 1/classroom at
Bahrain income levels (Class
Algeria 4460 8242 33 29
Bahrain 25420 198 9 7
Djibouti 1280 266 1 1
Egypt 2340 21256 66 66
Iran 4530 14845 92 78
Iraq 2320 10544 49 49
Jordan 4350 1914 11 10
Kuwait 8550 557 7 6
Lebanon 9020 960 14 12
Libya 12020 1541 20 17
Morocco 2850 7814 36 36
Palestinian territory 1380 1401 6 6
Oman 17890 626 19 16
Qatar 14860 179 4 4
Saudi Arabia 17200 6680 192 164
Sudan 1270 13350 42 42
Syrian Arab Republic 2640 6424 30 30
Tunisia 4070 2144 12 10
UAE 18440 1094 34 29
Yemen 1060 8144 38 38
Total 715 650
Market Sizing- Middle East, North Africa

38
Appendix
Country
GNI per capita
(US$), 2010 Population 6-17
# Loomas if 1/school at Liberia &
1/classroom at Equatorial Guinea
income levels (Class Size-48) (in
thousands)
# Loomas if 1/school at Liberia &
1/classroom at Equatorial Guinea
income levels (Class Size-62) (in
thousands)
Benin 750 2947 6 6
Burkina Faso 550 5621 11 11
Cameroon 1160 6206 13 13
Cape Verde 3160 142 1 0
Central African Republic 460 1418 3 3
Chad 600 3840 8 8
Congo 2310 1272 4 3
The Democratic Republic of Congo - - - -
Côte d'Ivoire 1070 6438 13 13
Equatorial Guinea 14680 212 4 3
Gabon 7760 454 5 4
Gambia 440 590 1 1
Ghana 1240 7444 15 15
Guinea 380 3282 7 7
Guinea-Bissau 540 486 1 1
Liberia 190 1308 3 3
Mali 600 5354 11 11
Mauritania 1060 1092 2 2
Niger 360 5526 11 11
Nigeria 1180 51338 104 104
Sao Tome and Principe 1200 55 0 0
Senegal 1050 4201 8 8
Sierra Leone 340 1932 4 4
Togo 440 1933 4 4
Total 238 235
Market Sizing- West and Central Africa

Developing a market strategy for looma

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