VirtualQ Opportunity Analysis Project

Team YVR6Venture Lab 2012

May 19th 2012

Outline

• Value Proposition• Market Research• Market Size• Competition• Conclusion

Value Proposition

• For everyone, with access to Internet or SMS, who wishes to save time in lineups, VirtualQ allows lining up without physically being present and notifies only when ready to be served.

• For all businesses or organizations with long lineups, VirtualQ provides a service to effectively manage lineups, resources and daily operations while improving customer satisfaction and increase in sales.

• Unlike any other service VirtualQ provides real time notification via a mobile application and web based services.

Market Research - End Users

• Hypothesis– Need for VirtualQ– Willing to pay for an App/Service– Don’t mind ads for free service– Likes promotions through the service

• Experiment– Face to face interview: 22– Survey: 68

Market Research - End UsersResults: Need for VirtualQ

44%

22%

24%

10%

Encountered Lineup

All the timeOnce a WeekOnce a MonthRarely

37%

59%

4%

Annoyed

All the timeSometimesNever

Market Research - End UsersResults: Willing to pay for an App/Service

51%

7%

41%

Will Pay

One time small feeSubscriptionNo

Market Research - End UsersResults: Revenue through ads or promotions

6%24%

50%

21%

Ads

Like itSomewhat usefulAnnoyingDon't care

18%

44%

25%

13%

Promotions

Like itSomewhat usefulAnnoyingDon't care

Market Research - End UsersResults: Demand at lineup locations

Post Office

Passport

Office

Consulates

Driver’s

Moto

r Vehicl

e

Medical C

linics

Diagnostic L

abs

Schools

Restaurants

Movie Theater

Retail Sales E

vents

Tourist A

ttraction Site

s

Banks

Telecom/In

ternet

All mentioned

0%

10%

20%

30%

40%

50%

60%

70%

Demand

Market Research - Business

• Hypothesis– Need for a change in the way lineups are handled– VirtualQ will help optimize resources and daily

operations– Willing to use the service– Will pay for the service

• Experiment– Interviews: 8

Market Research - Business

• Results– Interviewees thought it was a good idea.– Due to the lack of a prototype, it was inconclusive

if the system will help optimize resources and daily operations.

– Businesses to use and pay for service is a probability, we need to gather more data.

Market Size – End UserAvailable MarketWorld cell phone users: 5.6 Billion

Servable MarketUsers in developed Countries: 900 million

Target MarketUsers with smart phones and potential buyers: 290 million

App Price: $1

Revenue: $0.7

Market Size: 203 million

Market Size - BusinessAvailable MarketEstimated number of Businesses/organizations in developed countries: 55 million

Servable MarketEstimated Businesses/Organizations with lineup: 0.55 million

Target MarketPotential User: 55,000

Subscription: $10 /month

Revenue: $120 /year

Market Size: 6.6 million/year

Competition

Unlike Qminder, VirtualQ offers- Promotions- Algorithm to distribute customer flow- Real time notification for service issues

Unlike QMATIC, VirtualQ offers- Mobile App - Cost effective and easy integration- Promotions

Unlike Qless, VirtualQ offers- Mobile App- Cost effective and easy integration- Real time notification for service issues

Conclusion

• 66% people surveyed encounter lineups at least once a week and 96% people find them annoying.

• 58% people are willing to pay for service.• More data to be collected on business end.• We will pursue this idea for OEP.