Buddies App Startup | Case Study

Buddies App is a start-up company that will provide traveling services through an application. The value proposition of the Buddies App is allowing users to connect with other travelers to learn more about the travel destination and it will enhance the traveler's traveling experience. Its vision statement, SMART objective statement, and Pre-launch Plan are discussed.

Contents
1.0 Introduction
1.1 Company Profile……………………………………3
1.2 Vision Statement……………………………………4
1.3 SMART Objective Statement……………………….5
2.0 Pre-Launch Plan
2.1 Market Engagement Hypothesis…………………….6
2.2 Preto-Typing strategy………………………………7-8
3.0 Marketing Launch Plan Infographic………………………9
References…………………………………………………..10-11
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1. Introduction
1.1 Company Profile
Buddies App is a start-up company that will provide travelling services through an
application. The application will be made available for Play Store only. As a start-up,
Buddies acquired a capital of RM80,000 – RM100,000. These funds were acquired through
applying for government grants and pitching the idea to venture capital companies to acquire
loans and gain investors. The application is a travel companion mobile application platform
which allows people with similar interests to chat, share their travel experiences through
photos, and meet up at local destinations. Buddies App will start the business locally in a 3-
year program and move its focus towards international regions after gaining popularity.
The value proposition of Buddies App is allowing users to connect with other travellers to
learn more about the travel destination and it will enhance the traveller's travelling
experience. Users specify their travel interests and places to visit when they log in to the app.
Upon login, posts and suggested followings shown on the feed match with the user’s
preferences. Travellers can chat and plan meet-ups with people from different cultural
backgrounds. Compared to touring agencies, the travel buddies’ system allows users to plan
and travel at their own pace rather than a fixed tight and limited time scheduled by tour
agencies. Moreover, the application will be giving discount vouchers based on the traveller's
travel-destination through push notifications. Revenue will be made through in-app
advertising and purchases. Regarding the maintenance of the application, it will have a
routine update according to the latest technology and travel trends.
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1.2 Vision Statement
“To create a different solo travel experience while meeting people that share similar
interests”
Buddies App's vision is to create a different experience for every consumer that goes
solo travelling. As much as consumers prefer to have their own time and go at their own
pace, they would struggle to do research due to the lack of awareness about trusted resources
and the overload of information online. Advice from experienced travellers is more reliable
as compared to paid advertisements online. Therefore, Buddies App is able to help consumers
to visit authentic destinations and enjoy their trips.
Buddies App plans to target consumers from Roy Morgan’s Look at Me segment
which consists of millennials who are always on the lookout for fun and new adventures.
They are social beings who love to meet new people and create new experiences. Buddies
App allows users to meet new people based on their travel place and interest. It helps the user
to get out of their comfort zone. Interacting with people from different backgrounds helps to
enhance communication skills, self-confidence and expand one’s perspectives. Buddies App
could make the travel experience more vivid and memorable.
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1.3 SMART Objective Statement
The company will start launching Buddies App in Malaysia first. Therefore, the first
objective is to go international after the 3rd year of progress in Malaysia. In this period,
Buddies App will work hard to cover the costs while earning profit to sustain the cost of
going internationally after 3 years. The company aims to grow at least 30% of the profit when
they go international. Revenue will be earned through a freemium model where basic features
will be made available, but are limited to a certain number. Upgrading to a paid monthly plan
of RM3.90 will allow users to access premium features such as unlimited “buddies”, meetup
communities, and an ad-free experience. The capital and profit from the Malaysia market will
be used to promote the app to other countries through advertising, therefore there will be a
higher chance of users in other countries.
The second objective is to prioritise customers’ safety to run activities effectively and make
profits, as well as to ensure returning customers. The general satisfaction and consumer
reviews strongly suggest this objective method to give consumers improved security during
and when planning their solo journey. Buddies App, in addition to connecting solo travellers,
will attempt to give great safety. Buddies App will focus on providing security and
understanding to solo travellers through informative solo travel guides and hacks, sites
visiting knowledge and opinions, all at a cheap cost, in exchange for better profits from
delighted customers who keep coming back.
The third objective is for Buddies App to have at least 4 stars rating from consumers
after they used the app within 2 years of the app being launched. It is important that
consumers rate the app which will create a better impression towards other new users that are
considering downloading the app. Having a high star rating may also state that customers are
satisfied with the service provided to them. It also shows that the apps gave certain value and
benefits to them. Other than that, the target consumer that will rate the app will definitely be
within Malaysian solo travellers' citizens.
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2.0 Pre-Launch Plan
2.1 Market Engagement Hypothesis (MEH)
The aim of creating the Buddies App is to let travellers have a different travel
experience by taking inspiration from others' travel locations.
“At least 20% of Malaysian solo travellers between the age of 20 to 40 will
download Buddies App when travelling domestically.”
This accepted Market Engagement Hypothesis is made on the basis that individuals among
this age group are tech-savvy, reliant on social media, and always on the lookout for
experiences that are unique and “Instagram able” (MarketLine 2018, p. 29). This age group is
made up of both Generation Z and Millennials. Generation Z has shown an interest in
participating in digital campfire platforms such as Buddies App where small communities are
formed to connect with others with similar interests (Wilson 2021). Millennials have also
shown similar interest in such community platforms (Faris 2015). This is the reason why this
target market was chosen.
Based on The Sun, Klook’s solo Travel study found that 61% of Malaysian
respondents have stated that safety is their biggest concern while travelling alone, and 48% of
respondents have stated that they are afraid of travelling alone (Quality ‘me’ time 2019).
Moreover, this target market is financially constrained and hence is likely to be open to using
the Buddies App in searching for compatible individuals to share travel expenses. One of the
objectives of creating Buddies App is to make it a secure journey planning app. Buddies App
can be a travel companion. Buddies App helps users stay connected with other users to
reduce fear and discomfort when travelling alone.
“The target market will use Buddies App even if the app is difficult to use and
flooded with advertisements.”
This hypothesis was rejected because it does not clarify the target market. The extent
to which the target market finds the app difficult to use and how much advertising is
considered excessive cannot be measured. In contrast, in-app advertising could ruin the user
experience by using Buddies. The reason for this is that in-app advertising could distract the
attention of app users. Advertisements may cause users annoyance although it brings revenue
for the app developer (Ji, Wang & Gou 2019). Since Buddies is to be used while travelling in
a place that they are not familiar with, Buddies will not focus on doing advertisements in the
app to avoid inconvenience.
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2.2 Preto-typing strategy
The Buddies App will employ provincial Pretotype to collect specialised databases
before its formal introduction. It will determine whether or not this will be of interest to the
wider public. A Beta version of the Buddies App will be released for testing purposes only. It
will be made available to a sample size of 200 clients as well as internal personnel between
the ages of 20 to 40 residing in Kuala Lumpur and Selangor. Limiting the sample size will
reduce the chances of wasted time and effort if the app is not marketable (Savoia 2011). The
beta version of the app will only include the following features: a login page where users
choose their travel interests, an explore page where suggested users and communities will be
shown, and lastly a chat page for users to communicate with their buddies. Each user can
customise their own feed such as customising they’re about section. An illustration of the
beta version is shown below.
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Customers who are interested in the app will need to pre-register for the app in order
to get it before the official launch. The app may not be entirely functional during the beta
phase which may result in a lengthier wait time to connect with travel companions. Keeping
track of how many users have pre-registered to install the app at this early stage will help
figure out how many people are interested in it. As a result, if the programme meets or
exceeds beta testers' expectations, the corporation can feel more confident about releasing it
because only a limited number of people will be able to use it. Customers can thus provide
feedback on the software. The development team will fix any issues before releasing the
product to the broader public. Aside from that, happy consumers will tell their friends and
family about the Buddies App. As a consequence, they'll be ready to download the app for
the next round of beta testers or the public release. Obtaining a specific database also takes
less cash than other Preto typing because the cost is not as great as launching it publicly. By
looking at the app's beta tester databases, it will be evident if the software will be well-
received before it is completely released on the Google Play Store.
Before launching Buddies App, the minimal marketable product method will be
used. This entails producing a work-in-progress online app version of the start-up’s
innovation which will deliver and allow testers and early adopters access to a core set of
Buddies App features. This will ideally serve as the innovation's first prototype, allowing
Buddies App to influence and evaluate the system once it is introduced. The minimal
marketable product method will assist Buddies App in determining and gathering data on
users' levels of interest, and it can also be used in conjunction with other prototyping
strategies such as YouTube, a massive marketing advantage for receiving feedback from
target audiences to see that they are attracted and interested.
The company profile specifies a budget of RM100,000 for the creation of the Buddies
App. With such a limited budget, it is critical that we emulate the final product and
experience as precisely as possible during the prototyping stage. The development team will
produce an online survey using the minimum marketable product method, which is a cost-
effective means of recreating the app match process. The most useful and entertaining
surveys should take no more than 10 minutes to complete. To determine the finest solo travel
opportunities, a number of MCQ and shorter responses in the demographic, psychographic,
and behavioural domains will be asked. There are visuals and YouTube videos integrated
with the poll to go along with the questions.
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3.0 Marketing Launch Plan Infographic
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References
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MarketLine 2018, The Future of Travel & Tourism Technology is driving significant change
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