Marketing plan for location based services

Abstract

Location-based services utilize the knowledge of a user's (subscriber) location or position to offer context-sensitive services that are most likely at that point of time. These may be rendered by any mode - e.g., Wi-Fi, Bluetooth or simply via GSM or CDMA (technologies that are used to render mobile phone services in India and other countries).These services rendered by network operators with the help of content providers are taking off in the USA and Europe; in the USA, the federal government is creating the push with E-911laws and consumer demand is fueling growth in Europe. In India, a few operators do offer these services but the demand has not yet been staggering owing to a "lack of killer applications". This marketing plan offers some solutions to the problems in creating demand for LBS services in India. The traditional value-chain for LBS services has always been centered around the network operators; however, it is possible to have a viable, sustainable model in which network operators become fringe players or even do not exist at all. This improves profits and provides a much-needed boost for this fledgling industry. This report provides strategies for making this happen and also projects current and future revenues for all players. Potential subscribers fall neatly into two segments based on the value they put on accuracy of services and navigation information. The distinctness of the segments means the risk of cannibalization is relatively lower and value-based pricing has a role to play. First-mover advantage for players in the LBS value-chain gives them temporary competitive advantage, which they need to leverage and keep evolving their services to ward off price erosion and fight competition. This report looks at some of these issues and describes the status-quo for LBS in India, strategies for ASPs, looks at issues in pricing and segmentation and provides recommendations to handle future trends in LBS services globally and in India.