PART B: valorisation plan
SECTION I: The product
|1a||The innovation potential of this product is related to:
|ClustTour can be characterized as both technology push (new possibilities for large scale knowledge discovery form social content sources) and as market pull (need for mitigating information overload in order to make more informed decisions). The Social Web is an ecosystem of participation, where value is created by the aggregation of many individual user contributions. Additional the overload of data requires some form of intelligent management in order to produce information in a collective and conclusive manner for decision making.|
|1b||What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
|The added value of ClustTour is the provision of better technical characteristics that are based on the recent developments in the web science. It reduces information overload by clustering similarities of objects and events. This clustering provides recommendations and the opportunity for more intuitive means for exploring a place. It discovers monuments that really represent the interests of visitors through social networks.|
|1c||What is the Unique Sales Proposition of the potential product?|
The unique sale proposition of ClustTour is the global-local (glocal) context of clustered visitor interest that in a large scale provide an efficient market base to tourism related industries. The availability of content provided by the visitors viewed as a web and mobile service could build an efficient user group to attract potential investors. The attractiveness of this type of web services could create the critical mass of users and simulate marketing practices for additional web services under new business models.
SECTION 2: The Market
|2a||What is the target market for the product?
Please describe the characteristics of your target market.
|The market of the product is global. There are three potential target markets:
Potential visitors of a place, although free web services are recommended to reach critical mass of users, mobile applications could be sold as mobile tourist guides.
Companies interested in promoting their presence on the web and mobile application industry using sponsored web and a mobile application business models.
Web services companies interested in integrated the results in their applications through API licensing or buyout options.
Once ClustTour has reached an adequate level of users the third target market (web services companies) is the most attractive group of users, since they actually retain the generated network value at an optimal price.
|2b||How the product is characterized from the following options? Number of companies producing similar products in the field.
• Base – applied by all companies in the industry
• Leading – applied by a single or limited number of competitive companies
• Key –at a development stage, but has already proven its potential
|ClustTour is characterized as a leading product, since it is developed and only few competitors have presence in the same market globally. The rapid development of ICT based web services also delivers key characteristics for the product since there are consequent stages of research and development. Although the potential is proven, there are emerging developments in the technological field that change the characteristics and versions of the end product.|
|2c||What type of market demand will be satisfied?
• Existing demand – the market is already developed
• hidden (latent) demand – the market has yet to be developed
|ClustTour as an innovative product satisfies a hidden demand for intelligent and collective information retrieval. The clustering of monument and event objects provide to user new means in exploring places facilitating their visiting plans. Thus, opportunity for common interest generation objects creates a favorable environment for exchange of ideas and visiting tips. Sharing resources is a common open web application that is enhanced with clustering capabilities in ClustTour.|
|2d||What is the current stage of the product’s market life cycle?
• Implementation, implementation in production (leading to a radically new product offers)
• Growth (rapid spread within the industry or outside it)
• maturity (parameters of the technical characteristics of manufactured products reached their maximum, higher-grade products can be manufactured on the basis of technological substitution)
|The current stage of the market cycle is implementation that leads to radically new product in the market. At this early stage their positive signs of market exploration. Besides the technological advantages of ClustTour it is important to set the guidelines of the business model under which the product could reach a wide set of users and be recognized globally among the travel planning users (such as TripAdvisor has been recognized for sharing travelling opinions).|
|2e||Strategic partnerships (existing or potential).|
|At the moment there are no strategic partnership between ClustTour implementation consortium and other organizations. A partnership with a large web service operator could be very important, that could integrate ClustTour to its existing set of applications. This partnership could be sector based such as travel industry or spatial based mapping services.|
SECTION 3: The Competition
|3a||What is the competition within your target market?|
|The competition with the target market is defined into a limited number of competitors:
A similar project layout without clustering capabilities www.funtouristattractions.com
A collective sightseeing site that includes pictures from flickr http://geolover.com
A visitor advisor site with collected tags http://hpgloe.com
Trip advising and recommendations http://www.lonelyplanet.com/uk
|3b||What competitive advantages will the introduction of the new product ensue?
• lower prices based on lower production costs
• product differentiation (uniqueness of the product proposal)
|ClustTour is based its competitive advantage on product differentiation. In the competitor products there very elaborated services for the user in geospatial form indexed by countries and cities. ClustTour provides a different service by clustering objects based on common interest for monuments and events. Although all the competitors integrate social networks, ClustTour takes advantage of the clustering of interests to actively involve social networks.|
|3c||Potential products relate to the following price range:
• High price range
• Average price range
• Low price range
|Since the product aims to penetrate market to achieve marketing the product should aim at lower prices to attract clients over competitors. Web services are offered free of charge except personalized travel guides. These guides are offered at an average 10-18 euro by the competitors. Price penetration strategies impose a lower price of about five euro per guide.|
|3d||Potential products will be marketed:
• To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)
• To markets operating on the principle of free negotiation between agents on the market
|The market is not regulated neither is operating on the principle of free negotiation between agents and markets. Promotion strategies are based on discounts offered over the label price.|
SECTION 4: Indicators
|Estimated cost of the new products||220.000|
|Expected market volume (potential / maximum number of users)||20.000.000|
|Expected sales volume||1.000.000|
|Expected market share of the company (proportion between sales and total company sales in the relevant market)||5%|
KEYWORDS QUANTITATIVE ASSESSMENT (0-5).
|Please put X as appropriate.||1||2||3||4||5|
|Size of future market demand||x|
|Competitive positioning of the product||x|