1. Developing a Market Strategy for Looma
Nitya Subramani
Master of Engineering Management
Dartmouth College
ENGG 390 1
2. 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
3. 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
4. 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
5. 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
7. 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
8. Factors considered for Data Analysis
• Gross National Income (GNI) per capita (US$)
• Income Group
• Target Population (Ages 6-17)
• Average class size for the region (Range)
Average class size estimated from secondary market research
8
Database Creation Market Sizing Target Market Selection Marketing Plan
10. Data Analysis
Consider China as the selected country for Market Sizing Procedure
10
Database Creation Market Sizing Target Market Selection Marketing Plan
11. Market Sizing Procedure
• Formulas:
• Estimated number of classrooms= Target population (6-17)/
Average Class Size (40-60)
11
Database Creation Market Sizing Target Market Selection Marketing Plan
15. Market Sizing Procedure
• Formulas:
• Relative Propensity = __(GNI of China- GNI of Nepal)__
(GNI of Malaysia - GNI of Nepal)
• Function to reveal maximum of either the number of schools, or
the number of classrooms times the propensity to install in
classrooms (0 for Nepal and 1 for Malaysia)
15
Database Creation Market Sizing Target Market Selection Marketing Plan
18. Selection of Target Markets
• Top 20 countries based on Market Size
• Other factors considered for selection of target markets:
– Gross Domestic Product (GDP)
– Sympathy factor of a country (Donor interest) (%GDP)
– Spending on education per child (%GDP)
– Number of people in the world speaking the language (1st/2nd
language)
18
Database Creation Market Sizing Target Market Selection Marketing Plan
19. 19
Selection of Target Markets
19
Database Creation Market Sizing Target Market Selection Marketing Plan
Country
Population
6-17 (‘000)
Number of
Loomas
(Market
Size) (in
thousands)
GDP (US$)
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
Selection of Target Markets
20
Database Creation Market Sizing Target Market Selection Marketing Plan
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. 21
Conclusions
21
Database Creation Market Sizing Target Market Selection Marketing Plan
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
25. • Value Proposition:
‘Looma can be the medium to assist resource-deprived remote
schools access local and global educational content.’
25
25
Database Creation Market Sizing Target Market Selection Marketing Plan
Positioning Looma in the Target Market
26. 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
Database Creation Market Sizing Target Market Selection Marketing Plan
27. 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
Database Creation Market Sizing Target Market Selection Marketing Plan
28. 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
Database Creation Market Sizing Target Market Selection Marketing Plan
29. • 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
Database Creation Market Sizing Target Market Selection Marketing Plan
Initial Expansion Further Expansion
India
Indonesia
Philippines
Pakistan
Nigeria
China
Brazil
Mexico
South Africa
Malaysia
30. 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
31. • 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) ($12276 or more)
Source: www.worldbank.org
Appendix
ENGG 390 31
32. ENGG 390 32
Country
GNI per
capita
(US$), 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
33. ENGG 390 33
Country
GNI per
capita
(US$), 2010
Population 6-
17
# Loomas if 1/school at
Tajikistan & 1/classroom at
Croatia income levels (Class
size-26) (in thousands)
# Loomas if 1/school at
Tajikistan & 1/classroom at
Croatia income levels (Class
size-21) (in thousands)
Albania 4000 687 7 8
Armenia 3090 548 4 5
Azerbaijan 5180 1637 21 26
Belarus 6030 1264 20 24
Bosnia and Herzegovina 4790 530 6 8
Bulgaria 6240 882 14 18
Croatia 13760 602 23 29
Georgia 2700 659 4 5
Kazakhstan 7440 3084 61 75
Kyrgyzstan 880 1359 8 8
Macedonia (The former Yugoslav Republic
of) 4520 341 4 5
Moldova - - - -
Montenegro - - - -
Romania 7840 2854 60 74
Russian Federation 9910 17859 483 598
Serbia - - - -
Tajikistan 780 2179 13 13
Turkey 9500 16696 431 534
Turkmenistan 3700 1298 11 14
Ukraine 3010 5647 37 46
Uzbekistan 1280 7202 43 43
Total 1250 1533
Appendix
Market Sizing- Central, Eastern Europe and the Commonwealth states
34. 34
Appendix
Country
GNI per
capita (US$),
2010
Population 6-17
MM
# Loomas if 1/school t
Cambodia & 1/classroom at
Malaysia income levels
(Class Size-28) (in
thousands)
# Loomas if 1/school at
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