As of: 8/31/12JerseySquare“The Netflix of Licensed Sports Jerseys”

Bryan Gitler Elmer Moore Jay NaikMichael Melmed

JerseySquare is a rental service for professional sports jerseys

Total Interviews: 169

Total Website Visits: 190TOTAL SUBSCRIPTIONS SOLD: 2

Customer Discovery

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Monday Tuesday Wednesday Thursday Friday

Key Partners

Cost Resources

Potential Customers

Over the course of the week, we spoke with 169 contacts during the customer discovery process

Yankee Stadium

Nike, NBA, NHL Stores

Cleaners,Shipping,

Sports BarsSocial Media,

StarStreet,Sports Bars

1

Customer Sales

1

Key Partners (7)Who are our key partners/ suppliers

Key Activities (5)Which key activities does the biz model require

Value Proposition (1)What value do we deliver to the customer

Customer Relationships (4)What type of relationship does each segment require of us

Customer Segments (2)For whom are we creating value

Channels (3)Through which channel does each segment want to be reached

Cost Structure (9)What are our cost drivers

Key Resources (6)Which key resources does the biz model require

Professional Sports Game Attendees

- Male

- Adult

- <$100k income

- Attend 10+ games per yr

A cheaper way to wear Officially Licensed sports jerseys to a game

Eliminate risk of owning a player jersey who is traded

Provide alternative to purchasing counterfeit jerseys Website

Stadium Shops/Vendors

Ticket Websites

Direct Mail

Annual Subscription Model

Search ads

Social Media

At Stadium Promotions

Revenue Streams (8)How much is each segment willing to pay and how would they like to pay us this amount

Warehouse, shipping, cleaning, logistics tracking, website development/maintenance

Jersey Inventory

Warehouse

Logistics system

- Rental Tracking

- Shipping

- Dry cleaning

- Marketing

- Customer Service

Professional Sports Leagues

Jersey Suppliers

Dry Cleaners

Stadium Shop/Vendors

Pre-paid Envelope Suppliers

USPS/Fedex/UPS

Day 1 Canvas As of: 8/27/12

Day 1 - Yankee StadiumCustomer Discovery

Current CanvasKey Partners (7)Who are our key partners/ suppliers

Key Activities (5)Which key activities does the biz model require

Value Proposition (1)What value do we deliver to the customer

Customer Relationships (4)What type of relationship does each segment require of us

Customer Segments (2)For whom are we creating value

Channels (3)Through which channel does each segment want to be reached

Cost Structure (9)What are our cost drivers

Key Resources (6)Which key resources does the biz model require

Professional Sports Game Attendees

- Male and Female

- Young Adult 18-30

- <$100k income

- Attend >10% of home games per yr

- Casual sports fans

A cheaper way to wear Officially Licensed sports jerseys to a game

Eliminate risk of owning a player jersey who is traded

Provide alternative to purchasing counterfeit jerseys Website

Stadium Shops/Vendors

Ticket Websites

Direct Mail

Annual Subscription Model

Pay per Rental

GET - Search Ads, Partnerships, At stadium promotion

KEEP - Customer Service

GROW - Referral Program

Revenue Streams (8)How much is each segment willing to pay and how would they like to pay us this amount

Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees

Jersey Inventory

Warehouse

Logistics system

- Rental Tracking

- Shipping

- Dry cleaning

- Marketing

- Customer Service

Professional Sports Leagues

Jersey Suppliers

Dry Cleaners

Stadium Shop/Vendors

Pre-paid Envelope Suppliers

USPS/Fedex/UPS

Day 2 Canvas As of: 8/28/12

Day 2- Customer DiscoveryNike Town NBA Store NHL Store

Current CanvasKey Partners (7)Who are our key partners/ suppliers

Key Activities (5)Which key activities does the biz model require

Value Proposition (1)What value do we deliver to the customer

Customer Relationships (4)What type of relationship does each segment require of us

Customer Segments (2)For whom are we creating value

Channels (3)Through which channel does each segment want to be reached

Cost Structure (9)What are our cost drivers

Key Resources (6)Which key resources does the biz model require

Professional Sports Fans

Website

Stadium Shops/Vendors

Ticket Websites

Direct Mail

GET - Search Ads, Partnerships, At stadium promotion

KEEP - Customer Service

GROW - Referral Program

Revenue Streams (8)How much is each segment willing to pay and how would they like to pay us this amount

Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees

Jersey Inventory

Warehouse

Logistics system

- Rental Tracking

- Shipping

- Dry cleaning

- Marketing

- Customer Service

Jersey Suppliers

Dry Cleaners

Pre-paid Envelope Suppliers

USPS/Fedex/UPS

Day 3 Canvas As of: 8/29/12

SPORTS JERSEY OWNERS- Male- Kid to Young

Adult 13-35

SINGLE GAME ATTENDEES- Male and

Female- Young Adult 18-

30- Casual fan

SPORTS JERSEY OWNERS- Flexibility to change jersey- Eliminate risk of owning jersey who is traded

SINGLE GAME ATTENDEES- Cheaper way to wear jersey to a game

SPORTS JERSEY OWNERS- Annual Subscription

SINGLE GAME ATTENDEES- Pay per Rental

Jersey Suppliers

Dry Cleaners

Pre-paid Envelope Suppliers

USPS/Fedex/UPS

Jersey Inventory

Warehouse

Logistics system

Rental Tracking

Shipping

Dry cleaning

Marketing

Customer Service

Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees

Website

Stadium Shops/Vendors

Ticket Websites

Direct Mail

GET - Search Ads, Partnerships, At stadium promotion

KEEP - Customer Service

GROW – Referral/ Reward Program

Day 3 - Customer Discovery

Commercial Dry Cleaners USPS & FedEx

Sports Bars

Jersey Suppliers

Left Side of Canvas Right Side of Canvas

Social Media

Current CanvasKey Partners (7)Who are our key partners/ suppliers

Key Activities (5)Which key activities does the biz model require

Value Proposition (1)What value do we deliver to the customer

Customer Relationships (4)What type of relationship does each segment require of us

Customer Segments (2)For whom are we creating value

Channels (3)Through which channel does each segment want to be reached

Cost Structure (9)What are our cost drivers

Key Resources (6)Which key resources does the biz model require

Professional Sports Fans

Website

Stadium Shops/Vendors

Ticket Websites

GET - Search Ads, Partnerships, At stadium promotion

KEEP - Customer Service

GROW - Referral Program

Revenue Streams (8)How much is each segment willing to pay and how would they like to pay us this amount

Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees

Jersey Inventory

Warehouse

Logistics system

- Rental Tracking

- Shipping

- Dry cleaning

- Marketing

- Customer Service

Jersey Suppliers

Dry Cleaners

Pre-paid Envelope Suppliers

USPS/Fedex/UPS

Day 4 Canvas As of: 8/30/12

SPORTS JERSEY OWNERS- Male- Kids to Young

Adult 13-35

SINGLE GAME ATTENDEES- Male and

Female- Young Adult 18-

30- Casual fan

SPORTS JERSEY OWNERS- Flexibility to change jersey- Eliminate risk of owning jersey who is traded

SINGLE GAME ATTENDEES- Cheaper way to wear jersey to a game

SPORTS JERSEY OWNERS- Annual Subscription $200

SINGLE GAME ATTENDEES- Pay per Rental

Jersey Suppliers

Dry Cleaners

Pre-paid Envelope Suppliers

USPS/Fedex/UPS

Jersey Inventory

Warehouse

Logistics system

Rental Tracking

Shipping

Dry cleaning

Marketing

Customer Service

Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees

Website

Ticket Websites

GET - Search Ads, Partnerships, Social Media, At stadium promotion

KEEP - Customer Service

GROW – Referral/ Reward Program

Launched JerseySquare.com

81 VisitorsIn 1st 9 hours

With 30-Second Demo Video

www.jerseysquare.com

Our First Customer

Our Email Blasts

Current CanvasKey Partners (7)Who are our key partners/ suppliers

Key Activities (5)Which key activities does the biz model require

Value Proposition (1)What value do we deliver to the customer

Customer Relationships (4)What type of relationship does each segment require of us

Customer Segments (2)For whom are we creating value

Channels (3)Through which channel does each segment want to be reached

Cost Structure (9)What are our cost drivers

Key Resources (6)Which key resources does the biz model require

Professional Sports Fans

Website

Stadium Shops/Vendors

Ticket Websites

Direct Mail

GET - Search Ads, Partnerships, At stadium promotion

KEEP - Customer Service

GROW - Referral Program

Revenue Streams (8)How much is each segment willing to pay and how would they like to pay us this amount

Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees

Jersey Inventory

Warehouse

Logistics system

- Rental Tracking

- Shipping

- Dry cleaning

- Marketing

- Customer Service

Jersey Suppliers

Dry Cleaners

Pre-paid Envelope Suppliers

USPS/Fedex/UPS

Day 5 Canvas As of: 8/31/12

SPORTS JERSEY OWNERS- Male- Kids to Young Adult 13-35

SINGLE GAME ATTENDEES- Male and Female- Young Adult 18-30- Casual fan

SPORTS JERSEY OWNERS- Flexibility to change jersey- Eliminate risk of owning jersey who is traded

SINGLE GAME ATTENDEES- Cheaper way to wear jersey to a game

SPORTS JERSEY OWNERS- Annual Subscription, Monthly Subscription, One-Time

SINGLE GAME ATTENDEES- Pay per Rental

Jersey Suppliers

Dry Cleaners

Pre-paid Envelope Suppliers

USPS

Jersey Inventory

Warehouse

Logistics system

Rental Tracking

Shipping

Dry cleaning

Marketing

Customer Service

Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees

Website

GET - Search Ads, Partnerships, Social Media, At stadium promotion

KEEP – Seniority, loyalty program

GROW – Premium subs, Family plan

What We Thought Results What We Found

Customer segment is adult males who attend lots of games each year X

There are two customer segments:• SPORTS JERSEY OWNERS

o Male, Kids to Young Adult 13-35• SINGLE GAME ATTENDEES

o Male and Female, Young Adult 18-30, Casual fan

Customers will use JerseySquare because we are cheaper X

Customers like our company because we provide both:• the ability to wear different jerseys throughout

the season• a hedge against players being traded, getting

hurt, retiring, etc.

Customers will not be willing to spend as much on rental jerseys X Customers are actually willing to spend as much (if

not more) on a subscription for jersey rentals as they do on buying a jersey!

There is a market for renting professional jerseys! P We received payment from our first customer on

Thursday, 8/30/2012

Biggest Learning Moments

Archetypes

Attribute Gasol Junior Becky

Age 32 15 24

Income $65K N/A $40K

Demographics White White White

Type Jersey Buyer Social Statement Social Sports Viewer

Fan Type Avid In-Season Casual

Class Middle Middle Middle

Facebook Status Single/It’s Complicated Single In Relationship

SUBSCRIPTION SUBSCRIPTION PAY PER RENTALRENTAL TYPE

Unit Economics

Jersey Cost(w/ 25% off)

$ 150

Shipping$ 9

Cleaning$ 1

Customer Acquisition

$ 25

Processing$ 1

X 5

X 5

X 5

Unit Costs- $ 230

Revenue$ 199

Net- $ 31

Shipping$ 9

Cleaning$ 1

Processing$ 1

X 5

X 5

X 5

Unit Costs- $ 55

Revenue$ 199

Net$ 86

Year 1 Year 2

Retention 60 %x

TurnsTurns

(For One Person)

Current Pricing Plans

Annual Subscription$199 /year

• Authentic Top of Line Jerseys• Free Shipping• Send back a jersey in exchange for another

Monthly Subscription$29.99 /month

• Authentic Top of Line Jerseys• Free Shipping• Send back a jersey in exchange for another

1 Time, 1 Week Rental$24.99

• Authentic Top of Line Jerseys• Free Shipping• Send back jersey within 1 week

(But A/B Testing for Price Elasticity)

Customer Relationships

GET

KEEPGROW

Results Pending…

• Google AdWords• Guerilla style marketing on

FB, YouTube, and Twitter• Customer referral bonuses• Targeted promotions

• Customer Loyalty program with bonus rentals and discount purchases

• Seniority credits• Partnership rewards and

discounts• Free jersey giveaways

• Sale of customer data• Family plan• Premium

subscriptions• Additional products

Market Size

Total Addressable Market

(how big is universe)

150 Million Americans watch the 5 major team sports (in some capacity)

Served Available Market

(how many can I reach with my sales channel)

11 Million NY Metro Area watch the 5 major team sports (in some capacity)

Target Market (who will be most likely buyers)

Based only Yankee Stadium Research:11.7% of SAM showed strong interest

1.3 Million People - Half subscription / Half Pay Per Rental

• Teenager Customer Discovery• Customer Acquisition

o More Google Adwords Testingo More Website Conversion Testing

• LISTEN TO/OBSERVE OUR CUSTOMERS

Next Steps