University of Kentucky

Venture Project: Vignette Image Positioning

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Mason Coleman, Jack Keady, Will Luckett, and Morgan Walli

EGR 120 Technology: Blessing or Curse

Professor Frisby

9 September 2016
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Executive Summary

The media space that surrounds personal navigation is one that is in need of serious

improvement. Yes, there are a plethora of services that will get you from point (A) to point (B)

with minimal trouble, but many are lacking a degree of familiarity that allows the user to relate

what they see on the app to both the physical world around them and the social world they

inhabit. This gap is one our company, Vignette Image Positioning, seeks to fill. As part of an

increasingly complex and connected world, our company understands the need for a cohesive,

easy-to-use platform that bridges the gap between destination-oriented navigation and the human

experience. Certain aspects of this experience, such as curiosity, social interaction, and the visual

perspective, are lacking in the typical navigation app. It was this need that, as users of such apps

ourselves, inspired us and led to the foundation of our project. We seek to expand the traditional

concept of mobile navigation, creating a user-supplemented network of locations that makes it

easier to interactively explore and navigate the physical world using strong, locationally-tagged

visuals while simultaneously coordinating and connecting socially. Through the use of such an

interactive and visually potent platform, our mission is to create memories through adventure and

connections through discovery as we map the world in pictures. While the app is still in the

planning stages of production, we anticipate a scheduled release in the beginning of 2019. In

order to reach this objective, we have set a goal of raising $70,000 to help cover costs incurred

before we break even at around two years after launch, after which we hope to eventually

generate around $60,000 of revenue monthly from a one-million phone consumer base. This base

will be supplemented by the social sharing aspect of the app, as well as by primarily online

product promotion. Revenue will be generated through in-app purchases and ads.
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Product

Our product, Vignette Navigation, is a mobile navigation application that will build upon

basic navigational functions to allow users to explore and interact with their surroundings, as

well as connect with other users. Among the aspects of this app that make it unique and generally

superior to similar apps currently on the market is the Image Positioning function, which allows

users to instantly identify and learn about a location by simply taking a photo. This will be

accomplished by cross-referencing the photo with a user supplemented, locationally-tagged

photo database and GPS data. The information provided about the location photographed will be

sourced from websites published under the public commons, and will include information on the

location’s identity, history, and purpose, as well as information on events, business hours, and so

on. This information will be supplemented and verified through user contributions, in which

users add additional information about a location or verify the validity of existing information.

Contributions to the photo database will work in a similar way. Users can choose to contribute

by uploading and identifying their own photos or by verifying the locational-tags of other user-

contributed photos. As an incentive to contribute, users will receive reward points for each

quality contribution, which can be used for in-app purchases or redeemed for various other

purposes, such as entertainment. Besides the Image Positioning feature, Vignette Navigation also

introduces the Group Maps function. This option allows groups of users to share, contribute to,

and use maps collectively. The Group Maps feature will be especially useful for organizations,

event schedules, and tourist-oriented maps, allowing users to access both locational data and

important information (such as the time an event will be held) on one cohesive platform. So too

can users download “themed” maps, such as a map of important historical locations or major

tourist attractions. Because certain maps must be purchased, it is possible for users, as well as
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businesses, to make money by creating and selling maps on Vignette. The user-friendly and

customizable nature of the Group Maps feature is also found in the Personal Maps function,

where users can create private maps of their most important locations. With highly personalized

settings, users are able to specify the degree to which their information will be shared and how

they wish to interact with other users of the app. While the foundations of the app are underway,

we are still in the process of creating the app interface, developing systems into a functional

platform, and securing rights to intellectual property.

Market Analysis

Within the last few years, smartphones have become more a necessity than a commodity.

As of 2014, there were 1,593,300,000 in circulation globally. That number is projected to reach

2,695,400,000 by 2019 (“Number of smartphone”). This surge in smartphone purchases is

matched with an explosion of app downloads: in 2014 there were 138,809,000,000 downloads,

with this figure reaching an anticipated 268,692,000,000 downloads by 2019 (“Number of

mobile”). After our initial design phase, we expect to enter the market in 2019 with a market

penetration of between 0.05% and 0.1%, generating a consumer base of between 134,770 and

269,540 phones in the first year. Additionally, we believe that our app is particularly well-suited

to market trends, evidencing the success of apps that allow users to interact with their

surroundings using their camera. Pokemon Go is a prime example and, as our app has

significantly more practical implications and an arguably broader consumer base, we anticipate

that similar success is possible.

Management Team and Operating Strategies

Currently, the team is in the initial stages of development. We plan to write a storyboard

to illustrate the app’s layers and pursue rights to the intellectual property that goes with it. Such
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intellectual property will include the Image Positioning process and the sharing and Group Maps

capabilities. Our core team consists of two chemical engineers and two mechanical engineers. In

order to have the necessary expertise, we are looking to expand our team to include a lawyer, a

computer science engineer, and an individual with formal business experience. Eventually, the

team will need to refocus development efforts towards promotion. Here, we plan to use a

combination of online promotional ads and social networking. Through the social aspect of the

app, users can invite friends and share Vignette locations over common social media outlets,

such as Facebook, and even over direct text message. Because of the pervasiveness of social-

networking, we expect this to be an effective marketing strategy. Similarly, businesses that pay

to have “thumbtack” ads can offer customer incentives, meaning that users may even be able to

save money using the app. We hope to have a user base of around one million phones two years

after launch, after which sustaining user base growth, financial stability, and continued

development of the app to further enhance the user experience will become primary focuses.

Profit Potential/ Scalability/ Risk Assessment

We expect initial startup costs, incurred over the first year of development, to be about

$40,000, with at least one additional year for development afterwards. Our breakeven point of

around $100,000 will occur two years after launch. This figure takes the salary of the app

developer, patents, legal fees, marketing, and other development costs into account. To counter

these costs, Vignette Navigation has multiple potential profit streams. Despite the fact that the

app is a free download, revenue will be generated through both in-app purchases and ads. Within

the app, users can create and sell “themed” maps of points of interest. The price will be set by the

user who is selling the map, and our company will take a 10% service charge from each sale.

Because the vast majority of sales for paid apps are at the $0.99 price point, we anticipate to
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receive approximately $0.09 per sale. We believe this is a highly reasonable fee and a valid profit

stream, noting that “total consumer spending on apps has grown from $9bn in 2012 to $40bn in

2015” (Freier). Revenue will also be generated from users who choose not to make in-app

purchases through locationally-tagged, visual “thumbtack” ads, which appear as locations on the

map itself – not in the pop-up format commonly found in mobile apps – in order to seamlessly

integrate advertising, making it more effective for both advertiser and consumer. Licenses for

these ads will be purchased by advertisers, with each view costing $0.10. In-app advertising has

exploded in the last few years, and “the global mobile share of display advertising is set to reach

54.8% this year, growing to almost 76% over the coming four years” and making such a profit

stream highly realistic (Freier). We acknowledge that there are also risks. To maximize our profit

stream, we will have to create and maintain a large private server. This will be costly, but once

established there is the potential for extensive profit. Another concern is possible infringement

on other location service apps. However, we believe that Image Positioning and Group Map

features sufficiently distinguish our company so as to not infringe on intellectual property,

copyrights, or any other legal restrictions.

Conclusion

While our project is still in the initial stages of production, we believe that it has all the

necessary characteristics for effective development, a successful entrance to the market, and,

eventually, substantial profit. Vignette Navigation offers an improvement and new perspective

on traditional navigation, tailoring day-to-day travel to the modern human experience and, in

doing so, making the product highly desirable. We will continue to place such emphasis on the

app’s cohesive and interactive user experience, visually relatable perspective, and practicality as

we continue with product development and set forth to map the world in pictures.
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Works Cited

Compass Rose Clipart. Clipart Panda. Clipart Panda, 2014. PNG file.

Freier, Anne. “In-app advertising ad revenue to generate 53.4bn by 2020.” Mobyaffiliates.

Mobyaffiliates, 6 April 2016. Web. 5 Sept. 2016. <http://www.mobyaffiliates.com/blog/

in-app-advertising-ad-revenue-to-generate-53-4bn-by-2020/>.

“Number of mobile app downloads worldwide from 2009 to 2017 (in millions).” Statista.

Statista, 2016. Web. 5 Sept. 2016. <http://www.statista.com/statistics/266488/forecast-of-

mobile-app-downloads/>.

“Number of smartphone users worldwide from 2014 to 2019 (in millions).” Statista. Statista,

2016. Web. 5 Sept. 2016. <http://www.statista.com/statistics/330695/number-of-

smartphone-users-worldwide/>.