FAN UP Market Analysis and Sales Projections Essay Example for Free

yellowish brown UP Market Analysis and Sales Projections Essay yellowish brown UP is positi championd within the Smartphone Applications intentness. Mobile devices with irrelevant internet capability, smart phones, have created an entirely new market of usancers that can be reached on the go. re net profitable to the recent nature of Smartphone technology, we be witnessing rapid growth and innovation in the smart phone applications pains. rooter UP allows the event host the ability to seamlessly pair a sponsor with individuals coming to the event. By doing so, lover UP leave alone open the door to endless brand reach through Social Media via the single-valued functionr, extra in-game/concert advertisement, fan appreciation, and a creative way for each event host to use their event to leverage underutilized sponsorships and promote their brand. Industry Analysis Mobile applications have changed a subroutine of pains landscapes in recent history. This industry shows a nnual growth gibbositys from 2009-2014 to be 49.8% and from 2013-2018 to be 28.9%. The evidence of this growth is a reason this app testament be successful. Competition in the Smartphone Applications Industry is very strong.Because of this, it is important to analyze the variant forces at work within the industry. This chart, information gathered from IBIS World, lays out the industry structure Life rhythm method Stage Growth Revenue Volatility Very high Capital Intensity Low Industry Assistance Low Concentration Level Low Regulation Level Medium Technology transform High Barriers to Entry Low Industry Globalization Low Competition Level High The low gear nominate external factor in this industry is the number of mobile internet connections. As the number of smart phone purchases subjoins with the number of mobile internet connections in 2014, app developers will have a bigger market for their products.Secondly, as demand from e-commerce increases in 2014, retailers have exp anded their product lines, the platforms on which they operate, and retailers are anticipate to create more shopping apps to assist time-strapped consumers. Next, time spent on leisure and sports represents one of the most key external factors. Time spent on leisure and sports is expected to decrease lento in 2014, resulting in a potential threat for the industry. While the industry now serves a unsubtle audience, leisure time is a major restrictive factor in a consumers ability to use and purchase smart phone app products. The US Census Bureau data re-iterates more of the same industry trends. In 2011, U.S. nonfarm businesses with employees spent a derive of $289.9 cardinal on non-capitalized and capitalized information and communication technology (ICT) equipment, including ready reckoner software. This represents an increase of 10.6% from 2010. Of the $65.2 billion spent on noncapitalized computer software, $29.9 billion was for purchases and payroll for developing software , an increase of 7.3% from 2010. $35.3 billion was for software licensing and service/maintenance agreements, an increase of $3.9 billion (12.6 percent) from 2010.Although the growth of mobile apps is on the rise, tax realize from these apps is expected to increase at a slower rate. Over the next five years, consumers are expected to continue wander away from pay-to-download apps, forcing developers to embrace the freemium business model that relies on monetizing free downloads subsequently the fact via in-app purchases. By 2019, free downloads are expected to account for about 95.5% of total mobile app terminal downloads. In the five years to 2019, revenue is expected to experience a 28.9% increase, reaching a total of a $34.7 billion smart phone application industry. Market Analysis The market analysis for rooter UP is atypical of most apps. FAN UP will start by focusing on the target market of Sports Franchises in the US and Concert and Event Promotion in the US. FAN UP will serve Gym, Health and Fitness Clubs in the US, Ski and Snowboard Resorts in the US, and Amusement Parks in the US in the secondary market. The sports franchise market in the US is comprised of sports teams or clubs that participate in live professional or semiprofessional sporting events (e.g. baseball, basketball, football, hockey, soccer and separate team sports) before a paying audience.This market makes up the first half of the target market. Over the five years to 2013, revenue is expected to grow at an average annual rate of 1.4% to $23.6 billion, and includes a 1.5% increase in 2013 alone. The key external factors for the sports franchise market loosely hold true for the entire scope of the FAN UP market. The external factors include per capita disposable income is expected to increase by 0.8% during 2013, the number of households earning more than $100,000 is expected to increase slowly over 2013, external competition from other sports franchises is expected to increase d uring 2013 which represents a threat in the industry but not the market, and time spent on leisure and sports is expected to decrease slowly during 2013. Industry revenue is expected to expand 1.5% in 2013.Also, some franchises are opening new or remodeling existing stadiums to attract more consumers. Concert and Event Promotion in the US is the second half of the target market. This market creates, manages and promotes live performances and events, ranging from concerts and theater performances to state fairs and air shows. This industry has an annual growth projection of 2.6% from 2013-2018 with 49,825 operating businesses. Federal funding for Creative Arts is the key external factor that deviates from the sports franchises market. Many noncommercial establishments in this industry rely to some extent on federal funding, particularly grants from the National talent for the Arts, an independent agency that Congress established in 1965 to support the humanities. Federal funding fo r creative arts is expected to increase slowly during 2013. This market has a history of good performance even when other industries struggle. Except for moderate wavering in 2010, the economic downturn has done little to deter Americans from aid live concerts and other entertainment events.Over the five years to 2013, industry revenue has grown at an estimated annualized rate of 1.3% to $23.7 billion, including a 3.5% anticipated increase in 2013. Revenue Model FAN UP will create revenue through brokerage fees, reach bonuses, and advertising. This recurring revenues model will be compensable by the host of the event (i.e. Carolina Panthers, Live Nation, etc.) for each event in which FAN UP participates. The app will be free from the App Store because, as shown in the data, consumers are increasingly less likely to pay for an app. The brokerage fees are for the access to the apps consumer base. The reach bonus is in place because with more reach, the more the host can charge the s ponsor of the FAN UP sponsorship package. The FAN UP pricing will be dynamic in that negotiations must take place with each new partner in order to agree upon the percentage of the FAN UP sponsorship that FAN UP will receive. The price of the FAN UP sponsorship package will be a negotiation between the event host and the brand. kit and caboodle Cited 1. IBIS World 2. US Census Bureau 3. http//2012books.lardbucket.org/books/designing-business-information- systems-apps-websites-and-more/s13-industry-analysis-smartphone -a.html 4. http//www.softwareengineerinsider.com/articles/smartphone-app- development.html.UvBroChU6xK 5. http//digby.com/mobile-statistics/