We continue our discussion on Traits of Unique Business Models.
Monetising a Non-Value-Adding activity (NVA): Identifying an activity or an asset that is idle and using it as a platform to enable a service provider to reach out to its customer base.
Cashurdrive Marketing Pvt. Ltd.is a creative media company, based out of New Delhi that offers innovative media solutions. ‘Vehicle wraps’ is one such solution that they offer to advertisers. They register car owners who are willing to let the outer shell of their car be used for putting up advertisements of various companies. The registered car owners get a monthly/ quarterly/ annual fee in return which subsidizes their loan EMI.
What has this company done here? Simply put, they identified a Non-Value-Adding asset (the outer shell of one’s car) which is a great advertising space 24x7x365 and created a revenue stream for themselves as well as the car owner.
Duty Free Shopping on long haul flights. Once a passenger boards an aircraft for a flight that is longer than five hours duration, she/he first figures out ways in which to spend that time productively and more importantly, without getting bored. Retailers identified this platform as a means to peddle their wares to bored passengers long back. In effect, they identified a non-value adding activity (in this case idle time of the passenger) and pushed sales through.
Have you come across more companies that are successfully using this business model? Share your comments.