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Mobile Media Incorporated

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Page 1: Mobile Media Incorporated

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Page 2: Mobile Media Incorporated

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Page 3: Mobile Media Incorporated

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Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _______________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________.

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________.

Upon request, this document is to be immediately returned to _______________.

___________________ Signature

___________________Name (typed or printed)

___________________Date

This is a business plan. It does not imply an offering of securities.

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1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.3 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

3.0 Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

4.0 Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.1 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

5.0 Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

6.0 Value Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

7.0 Proprietary Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

8.0 Phase 1 - Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

9.0 Phase 2 - Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

10.0 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1110.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1110.2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

11.0 Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1211.1 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

11.1.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1211.1.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1311.1.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1311.1.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

11.2 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

12.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1512.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

13.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Start-Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Promotional Tour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Ad Server Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Table of Contents

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1.0 Executive Summary

1.1 Objectives

MoMedia will establish a leading position in the mobile marketplace, challenging the market leadership head-on with:

• Aggressive price under-cutting strategy,

• Rapid expansion of distributional efforts, and

• Forceful marketing campaign to develop a high-level of brand recognition and awareness.

MoMedia will then further maintain a leading position and outpace the mobile marketplace by:

• Always striving to make the first move,

• Introducing new and innovative services, and

• Promoting new uses of our services .

1.2 Mission

MoMedia provides our users with convenient access to dynamic mobile content and communications through advertisements and provide advertisers with a scalable platform to engage our audience.

1.3 Keys to Success

MoMedia will use key concepts in all planning and implementation processes to ensure a path of success:

• We will be a market leader through forward-thinking.

• We will provide superior service, unique from the competition to maintain an advantages position in the marketplace.

• We provide services that are built around the mobile consumer’s needs and interests.

We believe in providing consumers value in return for an extended marketing relationship and building on that relationship .

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2.0 Company Summary

Mobile devices are the most widely held media channels in the world. A mobile device is personal, always on, and engaged throughout the day, making it an attractive advertising platform. The reach is greater than television, the effectiveness is stronger than print, and the targeting is more precise than the web. MoMedia is an MVNO (Mobile Virtual Network Operator) mobile service provider in the start-up phase of its operations, establishing a mobile network for mobile users and opening up a one-stop solution for content providers and advertiser.

All of our mobile services are 100 percent free to our users through advertisements. We earn solely from advertising revenues and endure the cost of providing the media to our users. By offering completely ad-funded services we have been able to eliminate all contracts and billing processes tied to the end-user.

MoMedia has replaced the user-paid model with the ad-driven model to move the leverage from the consumer to the mobile service provider. We are able to leverage our ad-funded services to customers to expand our advertising audience. We are able to leverage our advertising audience to expand our services. We believe in providing customers value in exchange for an extended marketing relationship.

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2.1 Company Ownership

MoMedia is incorporated in Oregon, with a shareholder split between founders Nicholas James Hogan (President), Bradley William Grube (Vice President), Sean David Ebright (Chief Operations Officer), and Bobby James Grube (Chief Sales Officer). Each of these founders is to have an equal share split of the corporation for introducing new and unique business solutions and will have an active participation in the start-up of MoMedia.

2.2 Start-up Summary

Seed Funding Request: $6M / Company Valuation: $10M:

MoMedia Seed Funding will be allocated according to actual and forecasted expenses, $100K to purchase 25K mobile SIM cards, $3.75M for mobile handsets, $400K will support a MoMedia Promotional Tour to distribute the SIM cards and handsets, $1M will cover employment compensations, $250K covers ad server platform and technology platform hosting, $250K covers pre-paid platform and technology hosting, the remainding $250K will be set aside for unexpected costs.

Assets

Non-cash Assets from Start-up $5.75M

Cash Requirements from Start-up $0

Total $5.75M

Liabilities

Expenses From Start-Up $250K

Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

Total Liabilities $250K

Capital

Investment Requirement $6M

Total Planned Investment $6M

Start-up Funding

Start-up Assets to Fund $5.75M

Start-up Expenses to Fund $250K

Total Funding Required $6M

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3.0 Products and Services

MoMedia funds all mobile content and communications with advertisements, including,

• voice • text • picture • mobile browsing• application downloads

We provide advertisers with a scalable platform to engage our audience, inserting advertisements into all MoMedia content and communications. This will make MoMedia an easier mobile solution to engage for both consumer and advertisers.

Our ad-server platform tags the data with advertisements as it moves to the mobile network. The mobile service traffics over an outsourced company with an established network infrastructure and tarriffs each unit of data as it moves. We have outsourced the mobile service provisioning with a company specialized in providing this. MoMedia develops and brands this customized mobile service offering.

4.0 Service Business Analysis

Advances in mobile networking and partnerships between mobile operators have lowered entry-barriers. Mobile operators can now enter the marketplace without establishing it’s own towered network with mobile network enablers to offer mobile virtual network operators service through a variety of network partnerships. Partnerships have also led content providers to come together to create a one-stop sourcing for mobile operators to provide media services. Mobile handset manufacturers are moving toward mobile computing and media devices to ensure compatibility with high quality media.

Mobile marketing taps into the media budgets of advertisers, using mobile as a medium to communicate with mobile customers. Thus an ad-funded MVNO (Mobile Virtual Network Operators) is a company that finances it's ARPU with money from advertisers. MNE's (Mobile Network Enablers) offer virtual networks to MVNO's through network operator partnerships.

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4.1 Competition and Buying Patterns

Some mobile operators have already come to offer an advertising platform to U.S advertisers and content developers, currently ad-funding multiple non-voice related services. This means that the ad-funded concept has already been exposed and developed some customer awareness to the benefits. There are many mobile operators within the U.S, none completely utilizing the ad-funded business model. There is one direct competiting model, the pre-paid model. Pre-paid mobile operators market themselves as a lifestyle and cost-conscientious brand with a coveted youth audience.

MoMedia will function under a branding strategy, building brand recognition to attract customers, advertisers, and content providers. Building brand recognition will require marketability, awareness, and a presence in the marketplace. MoMedia will strive to establish a leading position in the mobile marketplace, challenging the market leadership head-on with an aggressive price under-cutting strategy, a rapid expansion of distributional efforts, and a forceful marketing campaign. We have established a pricing structure unique from the competition by offering all of our services free to our users.

5.0 Infrastructure

The choice of an MVNO network architecture and host network combined with the proposed services in the Business Plan determine which core network functions will be undertaken by MoMedia. These functions will in turn determine which core network systems and services are required. We then face two critical decisions:

• Whether to outsource or to build the capabilities in-house?

• In the case of outsourcing whether to work with a single network enabler or to work with multiple best-of-breed suppliers?

In determining how best to answer the questions, we will address and weigh up a number of key issues. These issues:

• The time taken to achieve commercial launch.

• The degree of flexibility over future products and services.

• The future long term potential return versus the operational and financial risk.

Outsourcing offers the quickest and least risky route to market, in 3 months, and the lowest levels of capital expenditure and therefore invested capital. Capital expenditure is substituted by increased operational costs to the outsource company, which scale up with growth in customer base and usage. Outsourcing reduces cash outflows in the short term and shortens the time to positive cash flow.

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Investing in our own core network assets has the potential to deliver greater long term returns on investment if we achieve our target customer growth. However, long term margins are lower and so is the potential long term return on investment. Outsourcing also typically results in less flexibility over the capabilities of the business and propositions it can offer.

Developing an in-house solution requires more time, in 6-12 months, before commercial service launch and greater investment as the time to positive cash flow and payback is longer. The higher levels of investment increase the operational and financial risk of the business. Furthermore, a poorly designed infrastructure or poor implementation could damage the business’s ability to operate effectively.

The right design for network and systems, the right choice of suppliers, rigorous implementation, integration and testing are all critical. Getting any one of these wrong can result in significant time and budget overruns, poor service to customers, and greater expense. Developing core network capabilities in-house however, offers greater flexibility over the development of innovative products and services and higher potential returns on investment in the long run provided the target number of customers are acquired. Choosing between outsourcing versus building in-house represents a tradeoff between risk, flexibility, and return investment.

6.0 Value Chain

An MVNO is no different to any other business and must have a source of sustainable competitive advantage if it is to create value for investors. A competitive advantage is achieved by successful MVNO's through effectively leveraging their existing assets to generate customer growth with low customer acquisition costs. MVNO's typically seek to leverage the following assets:

• Existing customers: It is easier to sell a new service to existing customers than it is to win entirely new customers.

• Brand: To be successful the leveraged brand must drive the purchase of mobile telephony.

• Distribution: Using existing channels will help reduce the cost of customer acquisition when going to market .

• Content: For some, mobile provides simply another media for the distribution of existing content.

• Convergence: Bundling of services has been shown to increases customer loyalty.

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7.0 Proprietary Property

MoMedia is in proccess of purchashing a customized ad serving platform to take the mobile service request and tag it with ad inventory as the request moves through the mobile network. We will be outsourcing task management for all software applications, hosted solutions, dedicated server hosting, and custom programming for our ad server. Given below is a list of major components that ad exchange is built from:

• Ad Serving Component: Consists of typical ad network features that facilitate connecting advertisers with publishers.

• Rules Engine: A rules engine may be deployed as a plug in. This rules engine can be executed before or after direct campaigns in the hierarchy to target ads to direct or RTB traffic.

• RTB Bidder: RTB bidder takes traffic from various ad exchanges and organizes them for review by administrator. Any traffic that administrator is interested in bidding on is imported into the ad network product so that RTB campaigns can be created.

• RTB Auction Engine: RTB auction engine broadcasts direct impression requests to DSPs to bid on.

• Rules Generator: General rules that would feed into the rules engine.

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8.0 Phase 1 - Milestones

Phase 1

Month 1-Month 3

• Negotiate network partnership contracts.

• Begin brand awareness marketing campaign.

Month 4-Month 6

• Continue marketing campaigns.

• Begin Oregon MoMedia mobile services

• Begin Oregon MoMedia Promotional Tour.

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9.0 Phase 2 - Milestones

Phase 2

Month 7-Month 8

• Continue marketing campaign.

• Continue Oregon MoMedia mobile service.

• Begin MoMedia marketing campaigns over Washington, Hawaii, and California.

• Renegotiate network partnership contracts.

Month 9-Month 18

• Continue marketing campaign.

• Continue Oregon MoMedia mobile service.

• Begin MoMedia mobile service over Washington, Hawaii, and California.

Month 19-Month 21

• Continue marketing campaign.

• Continue MoMedia mobile service.

• Develop Convergence as a network enabler.

• Develop Ad-Server technology platform capabilites and capacity.

Month 22-Month 24

• Continue marketing campaign.

• Continue MoMedia mobile service.

• Negotiate network enabler partnership contracts.

• Begin network enabler licensing sales.

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10.0 Market Analysis Summary

MoMedia will function under a branding strategy. Building brand recognition will require marketability, awareness, and a presence in the marketplace. We will utilize a diligent marketing campaign, press releases, magazine advertisements, radio advertisements, and television advertisements.These mass communication advertising mediums will develop a high-level of brand recognition and brand awareness.

10.1 Market Segmentation

10.2 Target Market Segment Strategy

We will begin operations in the U.S., with trial launch in Oregon. MoMedia uses figures from U.S census reports, using a 2 percent market growth that follows current population growth rates in Oregon. To establish our potential and projected target market, age, gender, and population were key targeting identifiers.

In the Market Analysis we compare overall Oregon population to our potential market in Oregon based on age and gender demographicsThe total populations for the period 2013 to 2015 are generated as part of the economic and revenue forecast of OEA.

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Market Analysis

2013 2014 2015

Oregon 3,923,500 3,965,300 4,011,800

Potential Market

1,041,046 1,046,191 1,055,496

CAGR 0.96% 1.07% 1.17%

11.0 Strategy and Implementation Summary

11.1 SWOT Analysis

11.1.1 Strengths

1. The president of MoMedia is very knowledgeable in marketing and the field of mobile marketing.

2. MoMedia uses a decentralized management hierarchy, extending front-line authority to sales representatives and authorized dealers. This will speed the growth of MoMedia as decisions move more quickly.

3. MoMedia doesn't use the same customer contracts and billing processes that prevent other mobile operators from applying the ad-funded business model. This allows MoMedia to be more flexible in it’s operations.

4. MoMedia has administered the ad-funded business model into every aspect of it’s operations. This will allow MoMedia to offer a more desirable platform for advertiser and stream more services to the customer.

5. Proven trials have demonstrated that ad-funding mobile content and services increases usage and increases the amount of users, suggesting a satisfied customer base and positive word-of-mouth communication.

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11.1.2 Weaknesses

1. MoMedia operates under too few of people that hold too much knowledge, this can be consequential in an underdeveloped industry like mobile marketing.

2. MoMedia relies too heavily on advertising revenues. This may begin to slow growth if advertisers lose interest in mobile as an advertising medium.

3. MoMedia will be limited on staff with too few of people responsible to the completion of too much.

4. MoMedia operates on a thin budget. This could slow growth.

11.1.3 Opportunities

1. MoMedia is entering an underdeveloped industry, mobile marketing. A lack of entry-barriers into this industry will aid in establishing a presence in the marketplace and boost initial growth.

2. MoMedia has rendered turn key solutions through intermediary businesses to support it’s offerings.

3. Using the same network enabler, MoMedia can expand from regionally, to nationally, to even globally when future growth permits.

4. MoMedia will be the first U.S mobile operator to completely ad-funded all mobile services that it offers.

11.1.4 Threats

1. MoMedia will be offering a new type of service relying on limited customer awareness. Whenever a new type of product or service enters a market, awareness needs to be drawn to it’s uses and benefits.

2. Pre-paid mobile service providers have already been following some of the same practices and offerings that give MoMedia a competitive edge.

3. MoMedia has yet to secure large-scale distributors. Authorized dealers are key to connecting the mobile service providers to the end-user.

4. MoMedia relies too heavily on intermediary businesses to provide it’s services. If one of these businesses cannot or will not provide support to MoMedia it will be difficult to continue it’s offerings.

5. MoMedia is a start up company with no brand recognition.

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11.2 Competitive Edge

MoMedia converted internal Weaknesses into internal Strengths, and external Threats into external Opportunities. Then we match internal Strengths to external Opportunities to represent a competitive advantage.

1. MoMedia is one of only a handful of mobile operators that can offer a mobile advertising platform. Mobile is seen by many marketers as the next medium for advertising.

2. MoMedia uses a limited staff with project oriented responsibilities. This allows MoMedia to reduce overhead.

3. MoMedia maximizes all return on investments while minimizing expenses. MoMedia must do this in order to maintain a thin budget and fat margins.

4. Pre-paid mobile service providers have already followed some of the same practices and offerings that MoMedia will be using. This exposes some customer awareness to the uses and benefits of ad-funding mobile. It reveals a proven market for this type of service.

5. MoMedia relies heavily on intermediary business to provide it’s services. This allows MoMedia to focus on external growth rather than maintaining internal development.

An MVNO is no different to any other business and must have a source of sustainable competitiveadvantage if it is to create value for investors. A competitive advantage is achieved by successful MVNOs through effectively leveraging their existing assets to generate customer growth with low customer acquisition costs.

MVNOs typically seek to leverage the following assets:

1. Existing customers: It is easier to sell a new service to existing customers than it is to win entirely new customers.

2. Brand: To be successful the leveraged brand must drive the purchase of mobile telephony.

3. Distribution: Using existing channels will help reduce the cost of customer acquisition when going to market .

4. Content: For some, mobile provides simply another media for the distribution of existing content.

5. Convergence: Bundling of multiple services is common and has been shown to increases customer loyalty.

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12.0 Management Summary

This executive team brings motivated management professionals and educated forward-thinking business leaders. Expertise in business concepts including, business development, negotiation, contracting, sponsorship acquisition, strategic alliance, and project proposals . Experience with marketing concepts including, interactive promotions, mass advertising, online marketing, and mobile marketing.

President: Nicholas James Hogan

Oversees the overall development of strategic partnerships and alliances, including contracts, procurement, and proper legality compliance. Budgeting resources to the most productive uses with the aim of creating aximum value for MoMedia stakeholders. Responsible for serving as an information conduit through the vice president, to executives, using a top-down management model, cascading the mission and strategy to personnel.

Vice President: Bradey Wiliam Grube

Positioned to assume the powers and duties of the President in the case of a vacancy in that office. The communicator role involves executive-level relations and executive duty delegation. The decision making role involves ecisions about corporate policy and procedures. The leader role motivates, advises, and directs executives. The manager role maintains quality and performance control in operation, development, and organization.

Chief Operations Officer: Sean David Ebright

Duties are categorized by MoMedia workforce strategist, inter departmental performance, and organization. Responsibilities of operations include maintaining a proper in-house and outsourced communications, facilities, and business relations. Comprising of the overall internal and external functions to operate MoMedia.

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Chief Sales Officer: Bobby James Grube

Reporting to the Chief Executive Officer, this individual is responsible for the direction and management of all saes and business development, including market competiveness, compensation, and has an active role in pricing. The CSO will drive company acquisition and revenue goals and will work closely with marketing on product distribution and channel strategies.

Chief Marketing Officer: Amber Marilynn Boyce

Responsible for the MoMedia brand image, experience, and promise, and propagating it throughout all aspects of MoMedia creative networking channels. Coordinating MoMedia activities and resources put into media ased materials, content, and branding. Positioned to oversee web-based strategies of MoMedia intranets, extranets and web sites.

Chief Financial Officer: To Be Named

Ensure timely and accurate analysis of budgets, financial trends and forecasts. Oversee all aspects of the finance and accounting functions of the organization. Provide executive management with advice on the financial implications of business activities. Manage processes for financial forecasting, budgets and consolidation and reporting to the Company Provide recommendations to strategically enhance financial performance and business opportunities.

12.1 Personnel Plan

Personnel Plan 2013 Phase 1 2013 Phase 2 2014 Phase 2

President $50K $60K $120K

Vice President $50K $60K $120K

Chief Operations Officer

$50K $60K $120K

Chief Sales Officer $50K $60K $120K

Chief Financial Officer $50K $60K $120K

Chief Marketing Officer $50K $60K $120K

Chief Technology Officer

$50K $60K $120K

Chief Human Resource Officer

$50K $60K $120K

Chief Admin Officer $60K $120K

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Miscellaneous Personnel $250K $500K $1M

Back-End Sales Mannager $30K $40K $75K

Back-End Sales Mannager $40K $75K

Back-End Sales Mannager $40K $75K

Back-End Sales Mannager $40K $75K

Front-line Sales $20K $20K $40K

Front-line Sales $20K $20K $40K

Front-line Sales $20K $20K $40K

Front-line Sales $20K $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Operations Manager $40K $40K $80K

Marketing Manager $40K $40K $80K

Technology Manager $40K $40K $80K

Product Manager $40K $40K $80K

Financial Manager $40K $40K $80K

Human Resource Administrator

$40K $40K $80K

ToTal $1M $2M $3.5M

13.0 Financial Plan

MoMedia will use Blyk (www.blyk.co.uk) when determining future financial projections. Blyk launched in the U.K on 24 September, 2007, and is targeted at 16 to 24 year-old customers only. Blyk was the first ad-funded MVNO in the world.

To create ad inventory, Blyk relies on sending ad messages as MMS, and sometimes as SMS, to its customer base. The marketing benefit of MMS is that the incoming message immediately draws the attention of the user. The user can also decide when they want to respond to the Ad MMS which is a step towards opt-in advertising.

We use past revenue and expense figures taken from a Mobile Economy Whitepaper based on Blyk, Reengineering Blyk's Business Model - How to build a profitable ad-funded MVNO and maximize Ad ARPU. This table represents revenues and costs for forecasting MoMedia projections. The actual values of Blyk’s business and the wholesale prices negotiated with the host network, Orange, in the U.K are not publicly disclosed. MoMedia uses the following tables as a conservative guide when assuming financial statement projections. These figures have been converted to U.S dollars.

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MoMedia will use Blyk (www.blyk.co.uk) when determining future financial projections. Blyk launched in the U.K on 24 September, 2007, and is targeted at 16 to 24 year-old customers only. Blyk was the first ad-funded MVNO in the world.

To create ad inventory, Blyk relies on sending ad messages as MMS, and sometimes as SMS, to its customer base. The marketing benefit of MMS is that the incoming message immediately draws the attention of the user. We use past revenue and expense figures taken from a Mobile Economy Whitepaper based on Blyk, Reengineering Blyk's Business Model - How to build a profitable ad-funded MVNO and maximize Ad ARPU (Average Revenue Per User). This table represents revenues and costs for forecasting MoMedia projections. The actual values of Blyk’s business and the wholesale prices negotiated with the host network, Orange, in the U.K are not publicly disclosed. MoMedia uses the following tables as a conservative guide when assuming financial statement projections. These figures have been converted to U.S dollars.

Given figures taken from this cost structure representing Blyk financials spanning the first couple of years of launch. The expenses are represented by a percent of sales method to forecast financials and estimating fixed figures:

• 10% Platform Technology Costs: Software applications, hosted solutions, dedicated server hosting, and custom programming for our ad server.

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• 15% Personnel Costs: Limited personnel with project oriented responsibilities and outsourcing our operation functions allows us to reduce our overhead. By minimizing expenses we maintain a thin budget and fat margins.

• 08% Marketing Costs: Promotional events, online advertising, magazine advertisements, radio advertisements, and television advertisements, and television advertisements.

• 02% Operations Costs: Outsourcing to intermediary companies allows us to provide all our mobile services. With minimized internal operations, we can focus externally on partnership procurement and customer acqusitions. Network cost are not represented do to it's high varable costs per unit of data:

• 50-60% Network Costs: Tarriff on network data traffic.

In this cost structure representation there are no direct customer acquisition costs, this is because Blyk released the service via e-mail by invitation only. All SIM cards given to those invited to try Blyk mobile service. Blyk offered them for free and considered a promotional tool, and so noted as a marketing expense.

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Capital Structure:

• 60% - (Convertible Preferred Stock) Open for Investor Shareholder's.

• 40% - (Preferred Common Stock) Existing Shareholder's.

• 0% - (Common Stock) Corporate Stock Option's Pool.

Each share of Convertible Preferred Stock shall be convertible, at any time, at the option of the holder, into shares of Common Stock, at an initial conversion ratio of two shares of Common Stock for each share of Preferred Stock.

Seed Funding Request: $6M / Company Valuation: $10M:

MoMedia Seed Funding will be allocated according to actual and forecasted expenses, $100K to purchase 25K mobile SIM cards to develop our customer base, $3.75M for MoMedia locked mobile handsets distributed with SIM cards, $400K will support a MoMedia Promotional Tour in effort to distribute the SIM cards and handsets as a promotional tool at pre-determined route destinations, $1M will cover employment compensations, $250K covers ad server platform and technology platform hosting, $250K covers pre-paid platform and technology hosting, the remainding $250K will be set aside for network variable costs and any other unexpected costs during launch.

Assets

Non-cash Assets from Start-up $4.75M

Cash Requirements from Start-up $1M

Total $6M

Liabilities

Expenses From Start-Up $250K

Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

Total Liabilities $250K

Capital

Investment Requirement $6M

Total Planned Investment $6M

Start-up Funding

Start-up Assets to Fund $5.75M

Start-up Expenses to Fund $250K

Total Funding Required $6M

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Start-Up

Seed Funding Request: $6M / Company Valuation: $10M:

Assets

Non-cash Assets from Start-up $5.75M

Cash Requirements from Start-up $0

Total $6M

Liabilities

Expenses From Start-Up $250K

Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

Total Liabilities $250K

Capital

Investment Requirement $6M

Total Planned Investment $6M

Start-up Funding

Start-up Assets to Fund $6M

Start-up Expenses to Fund $6M

Total Funding Required $6M

Appendix

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Promotional Tour

Appendix

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Ad Server Platform

Appendix

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Personnel Plan

This executive team brings motivated management professionals and educated forward-thinking business leaders. Expertise in business concepts including, business development, negotiation, contracting, sponsorship acquisition, strategic alliance, and project proposals . Experience with marketing concepts including, interactive promotions, mass advertising, online marketing, and mobile marketing. Blending skill sets of graphic design, applied media, event planning, proposal writing, business relations and consumer relations.

Personnel Plan 2013 Phase 1 2013 Phase 2 2014 Phase 2

President $50K $60K $120K

Vice President $50K $60K $120K

Chief Operations Officer $50K $60K $120K

Chief Sales Officer $50K $60K $120K

Chief Financial Officer $50K $60K $120K

Chief Marketing Officer $50K $60K $120K

Chief Technology Officer $50K $60K $120K

Chief Human Resource Officer $50K $60K $120K

Chief Admin Officer $60K $120K

Appendix

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Miscellaneous Personnel $250K $500K $1M

Back-End Sales Mannager $30K $40K $75K

Back-End Sales Mannager $40K $75K

Back-End Sales Mannager $40K $75K

Back-End Sales Mannager $40K $75K

Front-line Sales $20K $20K $40K

Front-line Sales $20K $20K $40K

Front-line Sales $20K $20K $40K

Front-line Sales $20K $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Front-line Sales $20K $40K

Operations Manager $40K $40K $80K

Marketing Manager $40K $40K $80K

Technology Manager $40K $40K $80K

Product Manager $40K $40K $80K

Financial Manager $40K $40K $80K

Human Resource Administrator $40K $40K $80K

ToTal $1M $2M $3.5M

Appendix

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Financial

We use past revenue and expense figures taken from a Mobile Economy Whitepaper based on Blyk, Reengineering Blyk's Business Model - How to build a profitable ad-funded MVNO and maximize Ad ARPU. This table represents revenues and costs for forecasting MoMedia projections. The actual values of Blyk’s business and the wholesale prices negotiated with the host network, Orange, in the U.K are not publicly disclosed. MoMedia uses the following tables as a conservative guide when assuming financial statement projections. These figures have been converted to U.S dollars.

Appendix

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Given figures taken from this cost structure representing Blyk financials spanning the first couple of years of launch.

Appendix

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