Day 5 presentations columbia apr 2012

Columbia B7739-002

Steve Blank Bob Dorf

Day 5 - Advanced Entrepreneurship

April 20, 2012

Welcome to Day 5!

Order of Presentations

1. Diagnosly

2. Factabase

3. eFood

4. Kadak (Tea Lab)

5. Mobile Marketing

6. Jiae

7. DEN (FavorNet)

8. TVM Technologies

9. Social Crowd

10. YSN

11. Table Compass (FidelEat)

12. Bakamba

13. Pulze

Quick Announcements

● Please sit with your team members● Name cards are helpful! Please continue to put them up ● Remember to sign in when the sheet is passed around● Please grade and provide comments to the other teams’ presentations

Each team will have 15 minutes to present and for Q&A

14 New (59 Total) Interviews

Thomas Jonathan Melissa Nina Tim Vladimir

Friday – Day 5

Diagnose your health from anywhere

Interviews

Industry Expert

Patient Provider Payer Mfg0

5

10

15

20

25

30

35

ThursdayWednesdayTuesdayMonday

5

• 15% Commission

DIAGNOSLY - Yesterday

• Provider engagement

• Device mfg relationships

• R&D• Customer

support• Payer Approval

Process

• Convenience of time and place

• Reduced cost for uninsured or high deductible plan subscribers

• Diagnostic and monitoring device OEMs

• Insurance networks

• Independent sales reps

• Healthcare Professional Staffed Remote Centers

• People (R&D)• Regulatory & Liability• Customer acquisition

• Testing fees (per test/kit)

• Engineers and designers

• Legal/Regulatory Knowledge (IP, FDA, HIPPA, etc)

• Reduced cost and increased quality of software

• Lower costs due to reduced visits, less fraud and consistent, comprehensive data

ConsumersFamilies (primarily subsequent mothers) in the pregnancy and early childhood phase + traveling families

Device MakersSmall/med, at-home monitors and diagnostic devices

PayersInsurance, Medicare, MedicaidProvidersGeneral Practitioners, Midwives, Nurses, Office Manager, Specialists (Pediatricians, OB/GYNs, vets etc)

• Improved patient outcomes

• Earn more money via focus on higher value procedures

Automated, Optional 24x7 Support

Automated, Optional SDK Support

• Indirect, trusted supplier

Corporate

• Physician / Clinics• Online

• Independent Sales Reps

• Free Beyond Provider Acquisition• Pay Per Click

• Testing fees (per test/kit)• Subscription

6

• 15% Commission and SPIFs

DIAGNOSLY - Thursday



• R&D• Customer


Process















PayersSelf Insured Companies, Insurance, Medicare, MedicaidProvidersGeneral Practitioners, Midwives, Nurses, Office Manager, Specialists





Indirect, trusted supplier

Corporate

• Physician / Clinics• Self-insured co’s


• Marketing support for interest generation


• Data acquisition fee

7

Payer Discussions

OTC: FSA & Insurance cannot reimburse OTC

CPT: Review indicates that some home diagnostics have data acquisition codes

A major reason companies self insure is that they can include this type of items in plan- Also likely to provide ready third party

MD/Nurse Hotline

CONFIDENTIAL 8

Diagnosly Ecosystem

Patients

Online Health Services (3rd Party)

DIAGNOSLY PLATFORM

Cloud & Data ServicesPhone,

Tablet, and Web

Applications

Medical Devices (OEMs)

Primary Physicians

PayersPharmacy

Remote MD/Nurseline

Independent Representatives

CONFIDENTIAL 9

Primary Archetype – Day in the lifeBefore Diagnosly

Heather, 36: 3rd time expectant mom

• 10pm: Noah (5 yrs) comes out to say that his throat hurts• Mom uses artery thermometer• Temperature is 101• Mom gives him Tylenol and lozenge, puts him back to bed

• 7am: Noah still complaining of sore throat, looks pale, swollen glands, fever still at 101

• 8am: Mom calls dr office as soon as it opens, makes appt for 11am

• Noah gets popsicle and watches TV with Ryan (3 yrs)• Mom calls school to let them know Noah won’t be there, calls

Ryan’s ju jitsu class to cancel for the day• 10:30am: Mom, Noah and Ryan go to drs office, wait 20 min in

waiting room, 20 min in exam room, take strep test, wait for results, get prescription called in (Noah and Ryan are VERY bored)

• Noon: Mom, Noah, and Ryan go to Walgreen’s to pick up prescription

• 12:30: Arrive home and give Noah antibiotic, take a Valium

CONFIDENTIAL 10

MVP

CONFIDENTIAL 11

Diagnosly

CONFIDENTIAL 12

My Devices

Home Reports Inbox

3

My Devices

Ear Infection DetectorLast Used: 4/20/12

WheezOmeter (Asthma)Last Used: 4/15/12

Strep Throat TestLast Used: 3/25/12

ThermometerLast Used: 2/18/12

CONFIDENTIAL 13

Connect a New Device

Home Reports Inbox

3

My Devices

My Devices

Start

CONFIDENTIAL 14

Searching for Devices…

Home Reports Inbox

3

My Devices

My Devices

CONFIDENTIAL 15

Home Reports Inbox

3

My Devices

My Devices

2 Devices Found

Select Device to

Connect:

Ear Infection Detector

Strep Throat Test

CONFIDENTIAL 16

Home Reports Inbox

3

My Devices

My Devices

Connecting…

CONFIDENTIAL 17

Ready to Begin Test

Home Reports Inbox

3

My Devices

My Devices

Start

Strep Throat TestLast Used: 3/25/12

CONFIDENTIAL 18

Home Reports Inbox

3

My Devices

My Devices

Test in Progress…

CONFIDENTIAL 19

Home Reports Inbox

3

My Devices

My Devices

Analyzing Data…

CONFIDENTIAL 20

Home Reports Inbox

3

My Devices

My Devices

Test Complete

Your Results are Ready

View

Share

CONFIDENTIAL 21

Home Reports Inbox

3

Reports

My Devices

Strep Test Results4/20/12 11:05 AM EST

103 mcL

32 mcL

1343 c/

1535 c/

10

342 mg/

White Blood Cell

Red Blood Cell

Hemoglobin

Hierocratic

Platelets

Strep

Live Consult

CONFIDENTIAL 22

My Physicians

Home Reports Inbox

3

My Devices

Dr. Anne Miller, MDOB/GYN

Last Contact: 3/29/12

Dr. Steve Blank, MDEntrepreneurology


Dr. Mike Johnson, MDPediatrician


CONFIDENTIAL 23

Primary Archetype – Day in the lifeAfter Diagnosly

• 10pm: Noah (5 yrs) comes out to say that his throat hurts• Mom uses artery thermometer• Temperature is 101• Mom swabs his throat and does a Diagnosly Strep Test which

comes back positive• Diagnosly sends results to central server, runs confirmation

scan and calls in prescription to 24 hour pharmacy• Noah takes Tylenol and lozenge

• 10:30: Jason (dad) goes to pharmacy to pick up prescription• 11pm: Noah takes antibiotic

• Everyone goes to sleep• 8am: Mom calls Noah in sick to his school• 11am: Noah goes with Mom to watch Ryan’s ju jitsu class

CONFIDENTIAL 24

Adword Campaign • Signs of market

demand among

target segment.

(young parents)

• Signs of broader

demand for home

diagnostic tests.

CONFIDENTIAL 25

Sales FunnelA

war

enes

s

Inte

rest

Con

side

ratio

n Referrals

Cross-S

ell

Up-S

ell

Unbundling

Keep

Pur

chas

e

Consumers• Physician Recommendation (Partnerships)• Self-Insured Company Health Plan Recommendations

(Partnerships)• Viral in online mother’s groups (Earlyvangelists)

Providers• Independent Sales Force (Existing Relationships & Cold Calls)• Trade Journal Marketing• Professional Conferences

CONFIDENTIAL 26

Aw

aren

ess

Inte

rest

Con

side

ratio

n Referrals

Cross-S

ell

Up-S

ell

Unbundling

Keep

Pur

chas

e

Sales Funnel

Consumers• Recommendations from physician groups• Recommendations from other mothers• Targeted marketing campaign

Providers• Sponsored research and articles regarding improved

outcomes• Diagnosly forwards leads to independent reps

CONFIDENTIAL 27

Aw

aren

ess

Inte

rest

Con

side

ratio

n Referrals

Cross-S

ell

Up-S

ell

Unbundling

Keep

Pur

chas

e

Sales Funnel

Consumers• Ask physician for validation

Providers• Speak to independent reps• Review materials for medical validity• Provide free samples

CONFIDENTIAL 28

Aw

aren

ess

Inte

rest

Con

side

ratio

n Referrals

Cross-S

ell

Up-S

ell

Unbundling

Keep

Pur

chas

e

Sales Funnel

Consumers• Subscription or One Time Purchase• From physician, online, pharmacy

Providers• Indirect Sales Force

CONFIDENTIAL 29

EVOLUTION OF DIAGNOSLY

30

DIAGNOSLY - Monday

PatientsDevice Makers

PhysiciansPayers

Researchers

What they want:• Fewer hospital

visits (spend less time, and money)

• On-demand testing• Frequent testing• Access to test data• Integration with

other health data• Privacy, security

• R&D• Tech support• Partner sales &

support• Customer support

Problem / Need – 1. Medical diagnostic tests cannot be conducted effectively outside of a hospital or clinic.


• Lab-on-chip OEMs• Health networks• Testing labs• Clinical research

companies• Online health service

providers

Getting from them:• Hardware to conduct

diagnostic tests• Access to customers

Payment process

Giving them:• A platform• Mobile connectivity• Data mgmt• Integration with online

health ecosystem

• People (R&D)• Tech infrastructure• Customer acquisition

• Testing fees (per test)• Monthly subscriptions (freemium model)

• Online (direct)• Physicians• Hospitals• Clinics• Health

networks

• Industry experts• Engineers and

designers• IP experts• Privacy experts• Lawyers

1

3

2Get customers:• Partnerships• Online marketingKeep + Grow:• Quality service and• user experience

5

6 7

8

9

2. Developing and maintaining proprietary software for each device is expensive

3. Integrating patient data is hard

Key Features – Provide an easy way for

diagnostic devices to connect to the internet,

so that patients and physicians can run tests

and access their data from anywhere.

4

31

DIAGNOSLY - Tuesday

• R&D• Tech support• Partner sales &

support• Customer support




• Lab-on-chip OEMs• Health networks• Testing labs• Clinical research

companies• Online health service

providers

Getting from them:• Hardware to conduct

diagnostic tests• Access to customers

Payment process

Giving them:• A platform• Mobile connectivity• Data mgmt• Integration with online

health ecosystem

• People (R&D)• Tech infrastructure• Customer acquisition

• Testing fees (per test)• Monthly subscriptions (freemium model)

• Online (direct)• Physicians• Hospitals• Clinics• Health

networks

• Industry experts• Engineers and

designers• IP experts• Privacy experts• Lawyers

Get customers:• Partnerships• Online marketingKeep + Grow:• Quality service and• user experience



ConsumersFamilies (primarily mothers) in the fertility testing, pregnancy, and early childhood phase

Device MakersMakers of at-home monitors and diagnostic devices

PayersInsurance, Medicare, Medicaid

ProvidersGeneral Practitioners, Midwives, Nurses



32

DIAGNOSLY - Wednesday



• R&D• Customer

support






• People (R&D)• Customer acquisition• Regulatory & Liability


• Online• Independent

sales reps• Physicians /

Clinics





ConsumersFamilies (primarily subsequent mothers) in the fertility testing, pregnancy, and early childhood phase

Device MakersSmall to medium makers of at-home monitors and diagnostic devices

PayersInsurance, Medicare, Medicaid

ProvidersGeneral Practitioners, Midwives, Nurses, Office Manager, Specialists (Pediatricians, OB/GYNs, vets etc)• Improved patient

outcomes• Earn more money via

focus on higher value procedures




Livestock ManagersCattle ranchers, horse farmers

Drug DevelopersBig Pharma, Biotechs

33

• 15% Commission

DIAGNOSLY - Thursday



• R&D• Customer


Process















PayersInsurance, Medicare, MedicaidProvidersGeneral Practitioners, Midwives, Nurses, Office Manager, Specialists (Pediatricians, OB/GYNs, vets etc)






Corporate

• Physician / Clinics• Online


• Free Beyond Provider Acquisition• Pay Per Click

$$$


34

• 15% Commission and SPIFs

DIAGNOSLY - Friday



• R&D• Customer


Process















PayersSelf Insured Companies, Insurance, Medicare, MedicaidProvidersGeneral Practitioners, Midwives, Nurses, Office Manager, Specialists






Corporate

• Physician / Clinics• Self-insured co’s


• Marketing support for interest generation


• Data acquisition fee

TEAM FACTABASE

Comprehensive Business Statistics on Developing Economies

Day 5: 6 Interviews (48 Survey)

Mary Leong, Alexis Farfaro, Calin Bota, Prosasty Chaudhuri, Bader AlKahtani

HYPOTHESIS TESTING

Channels

Hypothesis Experiment Finding

Interview / Survey

• There’s a need for a direct sales team

• Individual users will be acquired online through search engines

Revenue Streams

• Pricing and volumes Interview / Survey

Inconclusive / needs more thought

Customer Segments

• I-banks are the only segment within financial firms

• Professionals with per project needs (Entrepreneurs, Investors, etc…) are a segment interested in this

Interview / Survey

What are the most important costs inherent in our business model? Fixed? Variable?

1

3

4 2

5

6 7

8

9

Access to the most comprehensive and Detailed (hundreds of sources per country) database of curated industry statistics on developing markets.(Majority of which are not indexed on search engines & hidden on authority servers)

Convenience in access through Advanced Search; Export and Visualization options; Clear sourcing and real-time updates.

• Management Consultancies

• Investment Banks

• Market Research Firms

• Educational Institutes

• Professionals/Entrepreneur

• Automated Services

• Subscription model (comprehensive or sector/country specific)

• Per-table sale option

• API $xx per call

• National Statistics Offices

• Public Authorities

• International Organizations

• Companies that publish public statistics

• Collecting and preparing the statistical tables

• Development of automation software and webapps

• Customer acquisition and management

• Software/Web developers

• Research analysts• Data entry people• HR and admin• Business

Development• IT Infrastructure

• FTE, IT costs, Rent (Fixed)• Part time employee salaries, SEO (variable)

OUR BUSINESS MODEL CANVAS AT THE END OF DAY 3

• Direct Sales

• Online Sales

Pay as you go


1

3

4 2

5

6 7

8

9




• Investment Banks and Commodity Traders




















• Direct Sales

• Online Sales

Pay as you go

Still unclear how to approach individual users.

- 50% of respondents had an interest in business statistics on developing markets and ALL of which faced serious challenges getting access to them.

- From the people that faced challenges, the vast majority did not pay a subscription to a service if the tables they needed were on a premium service – However, when asked if they would be interested in premium tables sold on a per project basis, all were extremely excited about this offering.

- The expected prices per table were very diverse ranging from $10 to $200.

HYPOTHESIS TESTING

Channels


Interview / Survey


• Professionals would use their credit cards to buy a table - and expense it to their companies

Revenue Streams

• Pricing and volumes Interview / Survey


Customer Segments

• Financial Services Firms are a segment on their own

• Individual users (i.e. individual professionals) are a segment

Interview / Survey


1

3

4 2

5

6 7

8

9



Companies and individuals with a need for detailed public statistics on Emerging Markets.

• Frequent - Consultancies - Universities

• Non-Frequent- Professionals- Entrepreneurs- Students/

Professors

• API access (special datasets)

















• Direct Sales

• Online Sales

Pay as you go


1

3

4 2

5

6 7

8

9




• Frequent - Consultancies - Universities


Professors


















• Direct Sales- No VP of Sales,

personal prospection from founder for key accounts

- Sales admin• Online Sales for

individual professionals (paypal and credit card)

Pay as you go


1

3

4 2

5

6 7

8

9




















personal prospection from founder for key accounts


individual professionals (paypal and credit card)

Pay as you go






“Access through an

excel interface is very

important”

HYPOTHESIS TESTING

Channels


Interview / Survey


• Individual users will be acquired online through search engines

Customer Segments

Revenue Streams

• Financial Services Firms are a segment on their own

• Individual users (i.e. individual professionals) are a segment

• Pricing and volumes ??

Interview / Survey

Interview / Survey


• Focusing on priority segments:– Management Consultancy, 100+ consultants– Investment Banking, 500+ employees

850 accounts$86 million spent on databases with potential for growth

Based on census generalized to world

+ interviews

FACTABASE: $13 million

Based on $50/table or $15,000/subscription

+ interviews

MARKET SIZE AND REVENUE HYPOTHESIS


1

3

4 2

5

6 7

8

9






• Automated Services• National Statistics

Offices













personal calls from founder for key accounts


individual professionals

Unique access to valuable official statistics on developing economies in a Convenient, Reliable and Cost effective way

Per-table sale option (with pay as you go option for large accounts)

Factabase

What are the most important costs inherent in our business model? Fixed? Variable? How do we make money? What’s the revenue

model? Pricing tactics?

FILL OUT ALL 9 BOXES OF THE CANVAS IN ORDER 1 THUR 9

1

3

4 2

5

6 7

8

9

A one stop shop for all public statistics on the GCC.

A top notch user interface with export options

Advanced Charting tools

Monthly Reports

Management Consultancies

Local Companies

International Companies interested in the region

Direct Sales

Online Sales

• Personal Assistance

• Self Service

• Subscription service based on:• Duration of use • Coverage of content












FACTABASE

What are the most important costs inherent in our business model? Fixed? Variable? How do we make money? What’s the revenue

model? Pricing tactics?


1

3

4 2

5

6 7

8

9

Enhancing access to public statistics on emerging markets that often have issues relating to:1) Availability:

Believed to be non existent or are difficult to find.

2) Convenience: Require multiple steps to prepare them for use and/or compare multiple tables from multiple sources.

Through a user friendly one-stop setting with easy search, visualization and export options.


• Frequent and comprehensive (Financial services, consulting, Media, Universities and R&D)

• Frequent and sector/country specific (Ad Agencies and Market Research)

• Non-frequent and comprehensive (Individuals or Students)

• Non-frequent and sector/country specific (Entrepreneurs, International investors)

• Online

• Direct Sales


• Personal assistance

• Co-creation

• Subscription model (comprehensive or sector/country specific) for premium tables

• Per-table sale options for premium tables• Ad-based model for free tables• API access for application developers• Special pricing for customized reports













1

3

4 2

5

6 7

8

9

Enhancing access to public statistics on emerging markets that often have issues relating to:1) Availability:

Believed to be non existent or are difficult to find.

2) Convenience: Require multiple steps to prepare them for use and/or compare multiple tables from multiple sources.

Through a user friendly one-stop setting with easy search, visualization and export options.


• Frequent(Consultancies)

• Non-Frequent(Financial Services, Entrepreneurs, Individuals, News Agencies)


• Online

• Direct Sales
















OUR BUSINESS MODEL CANVAS AT THE END OF DAY 1; FOCUSED CUSTOMER SEGMENTS, RELATIONSHIPS, CHANNELS AND REVENUE STREAMS


1

3

4 2

5

6 7

8

9

Access to the most comprehensive and Detailed (hundreds of sources per country) database of curated industry statistics on developing markets.

(Majority of which are not indexed on search engines & hidden on authority servers)Convenience in access through Advanced Search; Export and Visualization options; Clear sourcing and real-time updates.


• Frequent - Consultancies


Professors














OUR BUSINESS MODEL CANVAS AT THE END OF DAY 2; FOCUSED CUSTOMER SEGMENTS, RELATIONSHIPS, CHANNELS AND REVENUE STREAMS

• Direct Sales

• Online Sales

Pay as you go


1

3

4 2

5

6 7

8

9















• Direct Sales

• Online Sales

• Management Consultancies And Investment Banks






1

3

4 2

5

6 7

8

9






• Automated Services• National Statistics

Offices













personal calls from founder for key accounts


individual professionals



Your Groceries… in the 21st Century

170 interviews + 15 partner meetings + Google ads + survey + website visits

Jyotsna Gianluigi Kerli Brian Dimitar Camilla

What do I have?

Mmmm… What should I eat tonight?

Meet Baldo…

Start the App

Chicken!

What should I eat tonight? What do I

have?

Shop Now! Deliver Today!

www.efood-global.com

Number of hits: 100Google Ads hits: 0

http://www.efood-global.com/

http://www.efood-global.com/

Competitive Landscape

Recipe and online shopping solutions exist - > millions of users

No inventory and integrated solutions!Co-opetition – Clear interest from retailers

5 million downloads

Road Testing

Road Testing• 42 Usability Tests

– 76% - Yes! – 50% - willing to pay

• $ 1.50 - $ 5.00

• Web Survey – 86% - Yes!– 70 % - willing to pay

Insights• Weekly meal plans• Single guys a potential customer segment • «Dial-a-Chef» - > «Impress the Date!»• Link to social media • My Recipe Book (add and edit)

Revenue & CostsRevenue (2 Sided Platform)• Consumers: Free App (Users in year 500K))

• Advertising Revenue ($ 3-4 /1000 impression)• Commission on retail orders

(starting in month 7th – 4-5% of online sales)

Costs• Research & Development ($200K)

• Sales and Marketing (10% of sales)

Key Learnings• You must get out of the building - you WILL

discover the unexpected• It is OK to Pivot • It’s challenging to work in a newly formed

team under the time pressure• Communication is critical

E-Food

• End-users:- Single households (students / young professionals)- Family busy mums- Seniors• Small HoReCa

businesses (restaurant chain)

• Platform management

• Platform promotion

• Marketing & sales tool

• Providing direct access to information on consumption behaviour of users

• Increased loyalty through benefit to users

• Grocery Distributors to stores / horeca sector

• Apple / Android Platforms

• University campuses (tech clubs)

• OEM hardware manufacturers

• Platform management and development• Customer acquisition costs• Cost for service premium users • transaction fees on online purchases

(from supermarkets) • add revenues

• Sales force

• Platform • Customer base• Human resources

1

3

2

5

67

8

9

• Save time (finding and delivery)• Reduce costs (waste, best deals)• Diet advisory • Recipes management & recommendations

• Automated services4

• Grocery Retailers • Distributors (Food)

• Basic app is for free• Selling smartphone apps and extra services - freemium • Selling hardware (scanning devices)

• Smartphone apps market

• web sales• Household appliance

store for scanners (Premium users)

• Automated mass customization based on past consumption patterns & reccomendation analyses

End user

FMCG retailers

Multi-sided platforms

DAY 1

E-Food

Online and Offline End-users:- Family busy mums / working fulltime - Higher income - Willing to pay for convenience (headspace)

• Platform development & management

• Platform promotion\

• Marketing & sales tool

• Providing direct access to information on consumption behaviour of users

• Increased loyalty through benefit to users



• University campuses (tech clubs)

• OEM hardware manufacturers

• Delivery company (fresh direct)

• Content providers



• Sales force

• Platform • Customer base• Human resources• Software developers• Partners relationship

managers

1

3

2

5

67

8

9

• Save - time - money• Value added - Diet advisory - Recipes management

• Automated services4



• Smartphone apps market

• web sales• Household appliance


• Automated mass customization based on past consumption patterns & reccomendation analyses

End user

FMCG retailers


DAY 2

Key Insight: CUSTOMER DEMAND for inventory app??YES! – KEEP GOING!!

Key Changes:Refine customer segment and value proposition

• Automated services• Dedicated manager

• Online and Offline End-users:

• - Family busy mums / working fulltime

• - Higher and medium income

• - Willing to pay for convenience (headspace)

• People who cook at home and buy at least something online



Marketing & sales tool:• new customers• Increase revenues• information on

consumption behaviour

• Increased loyalty



• Delivery company (fresh direct)

• Content providers (recipes)

• BeVinco• Quantified self



• Direct sales force

• Platform • Customer base• Software developers• Partners relationship

managers• Content development and

management

1

3

2

5

67

8

9

• Save - time - money• Value added - Diet advisory management - Recipes • Home cooking service

4



• On-line retailers• myvirtualpantry.com• Smartphone apps• web sales• Household appliance


• Automated and targeted mass customization based on past consumption patterns &, reccomendation analyses

End user

FMCG retailers


DAY 3HoReCa

Key Insights: PUPIL DILATING INTEREST and WTP for inventory + recipesApp converts in store customers online

Key Changes:Identified key potential retail partner (Bevinco)Understood our B2B value proposition.

Redefined customer segment

Automated Service (Smartphone App and Website)

• Time Conscious• Tech Friendly• Cook at homeNB. Trackers (Early evangelists)



Generate Sales, expand retailers customer base and avg. shopping basket

• Retailers (Physical & Online)


• Content providers (Recipes etc.)

• Platform management and development• Customer acquisition costs• Cost for service premium users Sales commissions on retail orders

• Software developers• Partners relationship

managers• Content management

1

3

2

5

67

8

9

• Save time & effort by Tracking, Deciding on & Buying Groceries

• Eat Better

4

Physical Retailers Online Retailers

• Two tier Smartphone App pricing : Lite = Free, Pro = $1.99 (Limited time free promo)

• Selling hardware (scanning devices)

Direct App Store

In –person dedicated (Relationship Manager)

Consumers DAY 4Advertisers

In-person dedicated(Ad sales)

Indirect Partner StoresDirect Advertisers

Deliver targeted Advertising

Display ads, recommendations

MULTI-SIDED PLATFORM

Advertiser

Retailers

Key Insights: Concept validatedCustomers willing to scan / record inventory

Sales delivery partners are NOT small retailersOpportunity to integrate Advertising channel

Key Changes:Pivot to TRACK – DECIDE – BUY (not recipe service)

Refined revenue model: Paid App, revenue sharing with large retailer, advert revenue.






• Large retailers (Physical & Online) (Freshdirect, Dagostino’s Eden Garden)



• Platform management and development ($200k)• Customer acquisition costs • Cost for service premium users Sales commissions on retail orders



1

3

2

5

67

8

9


• Eat Better• Social

4


• FREE APP• Two tier Smartphone App pricing : Lite =

Free, Pro = $1.99 (Limited time free promo)• Selling hardware (scanning devices)

Direct App Store


Consumers DAY 5Advertisers






Advertiser

Retailers

Key Insights: Users loved the appDesire for extended soft user functionality

Interest from large retail partners

Key Changes:Free App






• Large retailers (Physical & Online) (Freshdirect, Dagostino’s Eden Garden)



• Platform management and development ($200k)• Customer acquisition costs

Sales commissions on retail orders



1

3

2

5

67

8

9


• Eat Better• Social

4


FREE APP

Direct App Store


Consumers FINAL CANVASAdvertisers






Advertiser

Retailers

Adeem FensterShashi Shrimali

Stella ChanSanjay Bharadwaj

Richard JamesNeeraj Lal

Total Interviews: 242 to date (21 in person + 42 online + 3 mall visits + 2 store manager interviews yesterday + BUILT A WEBSITE!)

Authentic Asia Tea T4U

Tested the concept: Kiosk at a mall

Click the step that’s most important to your tea experience

Like the idea 86%

Hate the idea 2%

I wish the idea were...

13%

Testing the Kiosk Concept

Coffee 19%

Cold tea drinks

22%

Food 28%

Pastries 24%

Other 8%

What are we missing?

Setting how long I want my tea to boil

Something else...

Having someone make the tea for me

A lounge to hang out and enjoy my tea

Remebering the way I made my tea so I don't have to do it again

Choosing the tea leaves that I want

10%

10%

24%

41%

41%

59%

What's most important?

Abso-lutely 49%Maybe

33%

No way 10%

Only if... 8%

Would you buy?

Validation but still needs improvement…

Tested the concept: Website MVP!

TeaLAB

http://goodsie.com/store/tealab

How will we Get, Keep and Grow Customers?

• Consistent quality• Increase product variety • loyalty program tea card• word-of-mouth from students

(campuses)• Tea cart promotion via

Facebook or Tweeter• Tea tasting event to collect

customer feedback (via iPad)

Kadak – 04/16/2012

Who are our most important customers?• repeat customers, Asian-

immigrants consumers• health conscious customers

What are their archetypes?

• The Indian• The rising teen• Healthy parents• Undergrads• Baby-boomers

What Job do they want us to get done for

them?• make the tea (incl. picking

the best ingredients)• education of tea

What Key Activities do we require?

• Purchasing raw material• Brewing tea• Setting up retail outlets• Advertising, & marketing• Setting up customer feedback

channel and analysis• Business development with

campuses• Product mix creation• FP&A management• Hiring

Which of our customer’s problems

are we helping to solve?• consumer have limited access

to authentic Asian tea in a retail format

Which customer needs are we satisfying?

• Desire to consume authentic Asian tea outside home

What are the Key Features of our product that match customers

problem/need?• taste of our tea (quality)• the availability of tailored

flavor • speed of delivery• convenience

Who are our Key Partners?

• Indian stores and Asian stores

• Eventually tea makers• Indirect distribution

through -- subway, panda express

Who are our key suppliers?

• Indian store from NJ• Chinese stores from

Chinatown• Grocery stores such as

Wal-mart• Restaurant

utensils/hardware suppliers

What are we getting from them? Giving

them?• Milk, sugar, Splenda, tea

leaves, cups, spices, pots/pans

• MONEY, more revenue

What are the most important costs inherent in our business model?

Fixed• Rent• Equipment, furniture and fixtures Variable• Raw materials & supplies• Employee salaries

How do we make money? What’s the revenue model? Pricing tactics?

• Low Intro promotion price to attract customers($1.99)• Keep the price close to Starbucks thereafter• Never price below breakeven even during promotion period• Find ways to give them discounts (survey --- buzz discounts)

Through which Channels do our

Customer Segments want to be reached?

• direct retail• direct-to-home

delivery

What Key Resources we require?

• Money• Retail outlets• POS system to track sales• SAP system for accounting• License from NY / Campus

approval• HR for hiring & training• Tea brewing equipment

1

3

4 2

5

6 7

8

9


• Consistent quality• Increase product variety • loyalty program tea card• word-of-mouth from students

(campuses)• Tea cart promotion via

Facebook or Tweeter• Tea tasting event to collect


Kadak – 04/17/2012 (morning)

Who are our most important customers? repeat customers,

Asian-immigrants consumers

• health conscious customers


• The Indian • The rising teen• Healthy parents• Undergrads• Baby-boomers


them?• make the tea (incl.

picking the best ingredients)

• education of tea






are we helping to solve?• consumer have limited

access to authentic Asian tea in a retail format

Which customer needs

are we satisfying?• X Desire to consume

authentic Asian tea outside home


problem/need?• taste of our tea

(quality)• the availability of

tailored flavor • speed of delivery• convenience

















• Low Intro promotion price to attract customers($1.99)• Keep the price close to Starbucks thereafter• Never price below breakeven even during promotion period• Find ways to give them discounts (survey --- buzz discounts)



direct retail/franchise model

• direct-to-home delivery




1

3

4 2

5

6 7

8

9


• Unique, customized tea, their way

• Consistent quality• Increase product variety • loyalty program TEA I.D.

Tea Lab – 04/18/2012

Who are our most important customers?

• repeat customers

• health conscious customers

• Customers looking for a fun new experience


• The Indian • The rising teen• Healthy parents• Undergrads• Baby-boomers


them?• Custom tea their way!• Fun/unique ingredients• make the tea (incl. picking the

best ingredients)• education of tea• cool place to hang out





Which of our customer’s problems are we helping

to solve?

• consumer don’t have access to quality tea outside the home

• Formula/proportions are off


are we satisfying?

• Tea the “way I like it” outside the home

• Cool experience / social setting for tea

• Tea w/out tea bags


problem/need?

• taste of our tea (quality)• Experience• the availability of tailored flavor

• speed of delivery• Convenience

















• Online sales for home consumption• Data – based on the TEA ID card!

• Keep the price close to Starbucks thereafter

• Never price below breakeven even during promotion period• Find ways to give them discounts (survey --- buzz discounts)



• Teal lab stores

• direct-to-home delivery

• Online




1

3

4 2

5

6 7

8

9



• Consistent quality• Increase product variety • TEA I.D.• word-of-mouth from

students (campuses)• Tea tasting event to collect


Tea Lab – 04/19/2012

Who are our most important customers?

repeat customers health conscious

customers Customers looking for a

fun new experience


The rising teen Healthy parents Undergrads


them?

Custom tea their way! Fun/unique ingredients make the tea (incl. picking

the best ingredients) education of tea cool place to hang out


Purchasing raw material BRAND – Tea Lab Brewing tea Setting up retail outlets Advertising, & marketing Setting up customer feedback




are we helping to solve?

consumer don’t have access to quality tea outside the home

Formula/proportions are off


are we satisfying?

Tea the “way I like it” outside the home

Tea w/out tea bags Cool experience / social

setting for tea


problem/need?

Taste of our tea (quality) The availability of tailored

flavor Speed of delivery Convenience Experience




through – franchises in airports, hotels? subway, panda express




Wal-mart Tea merchants Kiosk manufacturers Restaurant



them? Milk, sugar, Splenda, tea

leaves, cups, spices MONEY, more revenue


Fixed Rent Equipment, furniture and fixturesVariable Raw materials & supplies Employee salaries


• Online sales for home consumption• Data – based on the TEA ID card!• Keep the price close to Starbucks thereafter• Never price below breakeven even during promotion period• Find ways to give them discounts (survey --- buzz discounts)



• Tea lab stores• direct-to-home delivery• Online




1

3

4 2

5

6 7

8

9

Tea lab kiosks


• Consistent quality• Increase product

variety • TEA I.D.

• Tea Pots

Tea Lab – 04/20/2012

Mall shoppersrepeat customershealth conscious

customersCustomers looking

for a fun new experience

The rising teen Healthy parents Undergrads

Custom tea their way! Fun/unique ingredients Have us make your tea education of tea cool place to hang out

Purchasing raw material BRAND – Tea Lab Brewing tea Setting up kiosks Advertising, & marketing Setting up customer

feedback channel and analysis

• Product mix creation• Hiring + training

consumer don’t have access to quality tea outside the home

Formula/proportions

are off

Tea the “way I like it” outside the home

Taste of our tea (quality)

The availability of tailored flavor

Remember me Experience Cool experience /

social setting for tea

• Tea manufactures

• Mall managers• Other raw

material suppliers

Kiosk manufacturers

Restaurant utensils/hardware suppliers

Milk, sugar, Splenda, tea leaves, cups, spices

Equipment

FixedRentEquipment, furniture and fixturesVariableRaw materials & suppliesEmployee salaries

• Mall kiosks• Online sales for home consumption• Flagship store• Data – based on the TEA ID card!

• Tea lab kiosks• Flagship store

• Money• Custom kiosks• POS system to track

I.D• HR for hiring &

training• Tea brewing

equipment

1

3

4 2

5

6 7

8

9

Walk in with an idea

End of day 2

End of day 1

End of day 3

End of day 4

Walking away with tools to grow any plant

Our Journey in this class ……

BeginningDay 1

MOBILE MARKETINGMarketing campaign designed for delivery to cell phones, smart phones and other media devices.

Team members: Alex Goncharuk Jorge Melgar Hasan Shahid Broor Spahr van der Hoek

Interviews: 22 restaurants, 17 customers, 2 channel partner, 2 telecom, 2 medical,

Customer Discovery

Phase 1Phase 2

Phase 3 Phase 4

State HypothesesRestaurants have a marketing problemCustomers don’t like to receive random mobile marketing (i.e. SMS, email)

RestaurantsCustomers

Test the Problem2 interviews with owners14 interviews with customers

Test the SolutionWeb-based mobile marketing toolApp that allows them to choose what they receive

Verify or PivotPivotVerified

Restaurant SegmentsFine dining - Always full- Dedicated marketer

Midlevel prime location- Generally full- Part-time marketer

Midlevel neighborhood

Low restaurants - No budget

- Income subject to weekly and monthly seasonality

- Dependent on loyal customers sales

- Low margins don’t allow high discounts

- Mixed results from digital marketing- Fear of implementing new

technologies

Customer SegmentsAge 20-25- Price, location, quality- Website

Age 26-35- Quality, decor- Zagat, word of mouth

Age 35-45- Quality- Zagat

Age 45+- Quality, clean- Known restaurants

- Interest in receiving opt-in mobile marketing information

- Location based restaurant info

- Initial interest in getting an app that gives the quality, price and promotions

http://www.iconarchive.com/show/people-disability-icons-by-anatom5/family-icon.html

http://www.iconarchive.com/show/people-disability-icons-by-anatom5/reading-icon.html

Market Size- Restaurant expenses in the mid

level range for marketing/discounting is within $750-$1,000

- Assuming a 30% market share and a fixed monthly fee of $200 annual revenue is $6.2M

Restaurant’s Ecosystem

Suppliers

Merchant processing provider

Point of Sale

Product Diagram

Data

Data Application

Pay Bill

Receipt

Registration (email)WEB/

MOBILE PORTAL

Marketing Promotions

(web)Push / Pull Promotions

(mobile)

Point of Sale

Marketing ApplicationPortal with

Promotions

Targeted Campaigns

Acquire Customers Plan

MVP - Customer

MVP - Restaurant

Web PortalCustomers Statistics

- Sales- Average Expenditure- Frequency

Marketing summary - Subscribers- Consumption patterns- Promotion Results

Mobile Marketing Day 1

Most important customers?

Small businesses(or Telecoms,

marketing agencies?)


Companies that would want to use mobile marketing

servicesJob they want us

to get done?Deliver msg to end-customer through

platform

Key Activities do we require?

Software development, data

analysis

Problems solved:- Allow customers to develop and execute mobile marketing campaigns (based on interactive access with end users)

Needs satisfied:- Efficient low-cost communication with end consumers

Key features?- Simple standardized Web-based software tool allowing use of SMS, QR codes and NFC

Who are our Key Partners? Telecoms


Telecoms, search engines


them?Phone numbers/

short code, advertising

Important costs? Fixed? Variable?Software (technology) development, (fixed)

marketing/sales (variable)

Subscription fee, campaign fee and performance-based fee?

Which Channels? Online (trade fairs?)

What Key Resources we

require?People, IT

infrastructure (data center)

1

3

4 2Get/keep/Grow

Customers?Low-cost platform that is effective and quickly

shows results (switching costs for

telecoms and marketing)

5

6 7

8

9


Restaurants want to minimize the dependency on discounters

Restaurant want to run local marketing campaign ( 2 mins breakfast , cheap bagel after 11am, …)


Marketing Campaign

templates, Software development,

relationship building

- Restaurants to reduce sales fluctuations

- Restaurants to engage customers


Online advertisement




them?Message delivery

services



Fee per marketing campaign, monthly subscription fee

Which Channels? Online


require?People, IT


1

3

4 2Get/keep/Grow

Customers?

- Low-cost platform- Marketing Campaign

Templates

5

6 7

8

9

- Cheap and an effective way of reaching the customers

- Reaching local customer (location based)


Restaurants want to minimize the dependency on discountersRestaurant want to run local marketing campaign ( 2 mins breakfast , cheap bagel after 11am, …)

- Mid pricing level restaurants in neighborhood areas


Marketing Campaign templates, Software

development, relationship building

- Restaurants to reduce sales fluctuations

- Restaurants to engage customers

- Cheap and an effective way of reaching the customers

- Reaching local customer (location based)

- Increase customers without affecting existing sales


Online advertisement

review webpagesrestaurants




them?Message delivery

services Quality information



Fee per marketing campaign, monthly subscription fee Fee based on effectiveness

Which Channels? Online, app, loyalty

programs


require?People, IT


1

3

4 2Get/keep/Grow

Customers?- Low-cost platform

- Marketing Campaign Templates

5

6 7

8

9

- Filter incoming “discount” info

- Receive restaurant information (price, quality) if you are in an unknown place

- People between 30-45 years

- People in an unknown area

Free


- Mid priced level restaurants

Build and Support marketing Campaign templates

Website and Mobile App development

Relationship building

- Increased profit

- Increased customer loyalty- Restaurants databases

- Online advertisement- Review websites- Restaurants

- search engines



Campaign fee, Subscription

- Piggy back on loyalty program- Restaurant databases websites

People, IT infrastructure,

Telecom Infrastructure,Marketing Strategies

for Restaurants

1

3

4 2- Provide cheaper alternative

to discounter websites- Customizable marketing

program

5

6 7

8

9

- Filtered promotion information

- Local and timely promotions

- Age group 30-45 years- Travellers

Free

- Filtered access to local deals

- App store- visited restaurants


Mid priced level restaurants

Website and Mobile App development Marketing & Sales

‘Tailored’ marketing to existing customers

New customer acquisition

Expenditure analysis

Increase profitIncrease customer

loyalty

Merchant processing service provider

Software (technology) development(fixed), marketing/sales (variable), IT Infrastructure(fixed/variable)

Campaign fee, Monthly Subscription fee

- Direct sale People, IT infrastructure, Payment Processing Network

1

3

4 2 Functionality Demo

Switching cost

5

6 7

8

9

Targeted promotion information

Age group 30-45 years

Free

Economic benefit Reward program

Web portal, Visited restaurants, App store

- Restaurants databases- Online advertisement- Review websites- Restaurants- search engines

Build and Support marketing Campaign templatesRelationship building

Telecom Infrastructure,Marketing Strategies for Restaurants

Provide cheaper alternative to discounter websitesCustomizable marketing program

- Piggy back on loyalty program- Restaurant databases websites

Local and timely promotions

4

Travellers

Summary

Payment terminal as a client data aggregation point Acquisition and activation points

High cost of customer(restaurants) acquisition Targeting new and existing clients Rewarding the existing clients, target high spenders

provide spenditure statistics that drives targeted marketing campaigns

Payment Processor as a KEY Partner

Next Steps …

Jiae.com: Interest based platform for creative minds in ChinaTeam: Deymon Chen, Yu Guo(Hugh), Mathias Rosenthal, James Hagen

12 Fashion Bloggers Interviews + 12 Top Designers Surveys1 digital Marketing Domain Expert

2012.04.20 - Day 5

Potential Partners with 4 Leading Design Schools

Total Numbers Up to Day: 780

Survey 3: Western Fashion/Designer Content?

Designer like Western Fashion/Design Content, However, - they are either blocked 50%- or not be translated into Chinese 33.3%

New Vision:Great Design should have no boundaries: It can transcend borders, language, traditions, culture, and even the aging of time. It speaks directly to a person’s heart

I like it, most of them are translated, 16.7%

No Interest 0%Read English, but Blocked 50%

Read Chinese, need translation 33%

• Main objective of blogger is to increase visibility• Did not realize content was blocked in China• All interested in tapping into the Chinese Market but don’t know

how• All interested in partnering with a site that would handle

translation and elegantly display content

Key learning from Western Fashion Bloggers

• Just returned from China, and exploring innovative ways to expand visibility there

• Eager to see our site, and very interested

• Willing to provide a feed of original content from multiple design discipline

• Design Schools could be key content providers and advertisers

Key learning from Leading Design Schools

Ecosystem

Customers Acquisition Cost

• Fashion Bloggers: $1450/Fashion Blogger x 100 = $180000• $2.1/Design students x 163000 = $345000• $0.77/End users X 750000 = $580000

Collect and Share Ideas

Tools for Design School

Targeted Ads Space

Find Good Designers

Design Market Places

Top Designers

Design School

Design Media

Government

Web Partners

Companies/Brands

Platform Management

Customer Acquisition

Expanding Reach

Platform

Customer Base

Brand

Network

Platform Costs

Customer Acquisition Costs

Marketing and Sales Costs

Advertising

CPS (click per sales) and Design Products Sales

Free Interest Based Network

Acquisition

Activation

Retention

Jiae.com

1300 Design Schools

Design Union Sites

SNS Sites (weibo, renren)

Designers

Design schools

Consumers

Companies

Advertiser

Day 1 Business Canvas for Jiae

•Photo based nice and clean SNS platform

•More Traffic

•Top Designers Design School Design MediaGovernmentWeb PartnersCompanies/Brands

•Platform Management•Customer Acquisition•Expanding Reach

•Platform•Customer Base•Brand•Network

Platform Costs



Advertising

Design Marketplace

•1:1 Customer Support

•China Photo Related sites•China SNS Sites - weibo, renren, qq, douban

•Fashion Bloggers

•Find, organized and share inspiration Ideas effectively (Designers)

•Find jobs/projects (Designers)

•Showcase Portfolios for Feedback

•Find Good Designers (Companies)

•Design Marketplaces (All Customers)

•Designers

•Consumers•Companies •Advertiser•D-School Ambassador

•1300 Design Schools•Design Message Boards

•Jiae.com

Free Interest Based SNS Platform

•Community Management

Day 2 Business Canvas for Jiae (1 fashion blogger, 9 students interviews)

•Collect and Share Ideas Tools for Design School•Targeted Ads Space •Find Good Designers•Design Market Places

•AcquisitionActivationRetention

•Photo based nice and clean SNS platform

•More Traffic •Easy to Share•Statistics Tool


•Platform•Customer Base•Brand

Platform Costs



Advertising, Sponsorships, Deign Services

Click Per Sales , Design Marketplace


•China Photo Related sites•China SNS Sites - weibo, renren, qq, douban

•Fashion Bloggers

•Find, organized and share inspiration Ideas effectively

•Find jobs/projects •Showcase portfolios for feedback ， big Space

•Target Ad Space•Find Good Designers•Promotion Opportunity•Sales Channels•Design Marketplaces

•Designers

Companies

• Advertising

• Sponsorship

• Design Services

• Click Per Sales

•D-School Ambassador


•Jiae.com

Freemium Free Interest Based SNS Platform

Day 3 Business Canvas for Jiae (4 companies, 2 fashion bloggers, 3 designers interviews)

•End Users Consumers

•Fashion Medias

•Design School•Government •Design Associations

•Traffic Partners

•Online B2C Partners

•Consumers•Companies •Advertiser

•Community Management

•Image based nice and clean SNS platform

•More Traffic •Easy to Share•Statistics Tool



Platform Costs






•China Photo Related sites•China SNS Sites - zcool, weibo, renren, qq, douban

•Fashion Bloggers

•Find, organized and share inspiration Ideas effectively Rich/Fresh Content

•Find jobs/projects Image Based Content

•Showcase portfolios for Expert Feedback big Space


•Designers

Companies

• Advertising

• Sponsorship

• Design Services

• Click Per Sales



•Jiae.com



•Fashion Medias


•Traffic Partners


Day 4 Business Canvas for Jiae (12 Interviews, 410 Survey, MVP)

•Image based nice and clean SNS platform

•More Traffic •Easy to Share•Statistics Tool, Translation



Platform Costs

Customer Acquisition Costs ($1.1 million for 100 fashion

bloggers, 160k students, 750000 designers)




•China Photo Related sites•China SNS Sites - zcool, weibo, renren, qq, douban

•Fashion Bloggers

•Find, organized and share inspiration Ideas effectively Rich/Fresh Content

•Find jobs/projects Image Based Content

•Showcase portfolios for Expert Feedback big Space


•Designers

Companies

• Advertising

• Sponsorship

• Design Services

• Click Per Sales



•Jiae.com


Day 5 Business Canvas for Jiae (12 Interviews, 12 Survey, 4 Design Schools)


•Fashion Medias


•Traffic Partners


FAVORNETplatform for exchanging high-value favors

16 INTERVIEWS 81TOTAL OVER 4 DAYS

Dave Spezzano, Alexey Okhlopkov, Amy Villari, Steve Alperin, Dmitri Dyakin

key findings:value to favor doer • reduce time spent doing favors• prioritize response order & probability based on profile of requester• increase likelihood of paybackvalue to connector• validate requester & quality of connection• reduce time of making introduction• tangible benefit from fulfilled favors (what is it? % of transaction?

explore)• status in network• goodwill (can this be distributed?)value to requester• obvious reasons

challenges:trust barrier • possible solutions:

– aggregate existing social data (#/type connections, online behavior)– user scores, reviews, ratings, rankingsNEXT STEP: ENGINEER TO DESIGN FUNCTIONALITY (KEY RESOURCE)

monetizing behavior• from customer discovery, we learned that

FAVORS ≠ SERVICES

I do / receive for other reasons:-Goodwill / karma-Social expectation

I get paid / I’m willing to pay

NEXT STEP: EXPERTISE IN BEHAVIORAL PSYCHOLOGY (KEY RESOURCE)

favor, as we define it…..

• high value• would require the receiver to go through extraneous

effort to achieve without the doer• allows access to otherwise inaccessible areas of life

– contacts (business & social)– services & products– information & expertise

…..but how do we differentiate ourselves?

Why people give and receive favors?Who? Why? Benefit? Why Online?

Person in need of a favor

No other way to get “it” done

Extended network to areas not available before

My direct network is limited (1st degree)

Delivering a favor for a cause

Monetize favor for a belief I hold Philanthropy Larger market to

raise awareness

Delivering a favor for a trade

Monetize favor for myself

Created value on something that only had value to holder

Create a bidding/auction market where none currently exists

Delivering a favor to help others

Feel good about myself

Extended network to areas not available before

Reach those outside my network

Delivering a favor for self gratification

Raise my profile and status

Self serving; serve the individuals ego

Express my status to others visually

first movers

tradeafavor.com

• Stuck in “re-launch” as of mid-2011• < 13,000 users, ~130 views per day• [In 2007] we made the strategic decision to

build the prototype as an application for the new Facebook platform

• It’s a social application, we kept saying, and it needs a social network to run on

• Limited to barter without monetary valueTIMING IS EVERYTHING

first movers

charity buzz

• $15 m revenues, $3 m EBITDA• No integration with other social media sites;

doesn’t leverage information of user• According to a VC: “it’s a nice little business”

SCALE IS CRITICAL

what they miss (if we had more time…)

• scale– TEST SOLUTIONS: build an app, partner, disrupt

• not all favors are equal– TEST SOLUTIONS: rank, rate, monetize; incentivize doer & not just

requester

• high-end is very small segment– TEST SOLUTIONS: broad segment (everyone online with a LinkedIn &

facebook profile)

• value to connectors as a segment– TEST SOLUTIONS: rank, rate, monetize; incentivize connector; test value

of status

problems/issues that still need to be addressed• incentives

– best way to attract customers to use– how do we incentivize givers to connect with receivers?

• moving a behavior from an offline to an online– gain trust of users– maintain security and intimacy of behavior– associate emotion and reaction in a virtual world

• over saturation– integrate with other online platforms– leverage existing networks/platforms/user base

FAVORNET

Search

Who Are You?

Mission StatementRecent Favors TestimonialsCategories AffiliationsHome

Site Schematic

Who are you?

• Need a favor• Give a favor for charity• Favor for trade• Favor to help• Favor for gratification

• What you can offer?

• What you need?

• Who can you match me with?

(Search Box for Favors)

(Dropdown)

• Peer verification• Match through

Networks• Search key words• Favor score from

previous review information

• Compatibility test

Categorization• Introductions• Events• Experiences• Quick hits

Connection

How does it work?

• Select Category• Select a favor• Broker deal

Exchange Occurs

Following Exchange receiver gives peer

rating on execution/delivery/

usefulness

Peer ratings create trust and provide credibility to the source

Peer rating is then delivered to social

stream of networks

Option to push out

Steve needs help with (fill in the blank) for a client outing . No one in Steve’s immediate network has access or can help. Steve posts on FavorNet. Joe responds he can help but asks for something or nothing in return. Following the completion of the transaction, Steve peer rates Joe on his ability to deliver.

After the Exchange

CANVAS 1.1

People who need high quality information and services and have trouble finding it.

Business builders, salesmen, anyone who has ever looked for a connection once removed from their closest circle--Reduce the friction to finding info, help me get value from what I do for others and what I know.

Seeding the high level community, Software development, business development,

--People have trouble finding expert, reliable, verified information.

--People spend huge amounts of time displaying expertise with no tangible benefit

--A marketplace to match buyers and sellers--Simple easy way to aggregate postings about expertise--Scoring/ranking for reliability.

?

Alumni groups, Networking groups, (build to suit..potential white label service)

Outsourced engineering teams, We get paid to increase bonds between members ,make crucial offline activity more efficient. Allow monetization of expertise.

Scalable marketplace business. MVP engineering/hosting/design costs are fixed. Feature set build are variable..build to spec

for partners?

--Free to join and use– then transaction fee, listing fee, fee for top tier circles

--Velvet rope, leaky door policy--Affinity groups

Goodwill,Brand, User Propagation

1

3

4 2Tap communities already transacting offline or chaotically

5

6 7

8

9

CANVAS 1.2 CHANGES IN RED

--PEOPLE WHO NEED ACCESS & FAVORS FOR BUSINESS OR PERSONAL USE

--PEOPLE WHO PROMOTE THEIR BUSINESS THROUGH CONTENT

--PEOPLE WHO WANT TO STENGTHEN TIES WITH CONNECTIONS


-- HELP PEOPLE EXCHANGE ACCESS & FAVORS THAT ARE IMPORTANT.

--Help people get more benefit from their digital marketing content

--A marketplace to match buyers and sellers--HELP PEOPLE BUILD TRUSTED CONNECTIONS

?


Outsourced engineering teams, We get paid to increase bonds between members ,make crucial offline activity more efficient. Allow monetization of expertise.


for partners?

--POINT SYSTEM TO EXCHANGE VALUE & GOODWILL--Free to join and use– then transaction fee, listing fee, fee for top tier circles


--Goodwill,--HIGH LEVEL

ACCESS

1

3


5

6 7

8

9


--PEOPLE WHO NEED AND PROVIDE ACCESS & FAVORS FOR BUSINESS OR PERSONAL USE

--PEOPLE WHO PROMOTE THEIR BUSINESS THROUGH CONTENT

--PEOPLE WHO WANT TO STENGTHEN TIES WITH CONNECTIONS


-

--IMPROVED WAY TO BUILD TRUST & VERIFICATION

--DISCOVERY & VALIDATION OF 2nd DEGREE CONNECTIONS

--SAFE ENVIROMENT FOR PERSONAL EXCHANGE

--HELP PEOPLE EXCHANGE ACCESS & FAVORS THAT ARE IMPORTANT.

?


Outsourced engineering teams, We get paid to increase bonds between members ,make crucial offline activity more efficient. Allow monetization of expertise.--LINKEDIN, FACEBOOK, OTHER NETWORKS (UNLESS WE SCALE OURSELVES)


for partners?

--TIP JAR / PAY-WHAT-YOU-WANT--FEE FOR GIFTING AS THANK YOU--POINT SYSTEM TO EXCHANGE GOODWILL FOR $$--PREMIUM ADVERTISING (MAYBE – HARD MODEL)--transaction fee, listing fee, fee for top tier circles


--Goodwill,--HIGH LEVEL ACCESS--WELL CONNECTED PEOPLE

1

3


5

6 7

8

9


PROFESSIONALS (HHI, WELL-EDUCATED) WITH ACCESS TO HIGH-VALUE, HARD-TO-OBTAIN CONTACTS, SERVICES & PRODUCTS WHO DO AND RECEIVE FAVORS OFFLINE

1) REQUESTERS2) DOERS3) CONNECTORS


EFFICIENT, TRUSTED ONLINE PLATFORM FOR TRANSACTING FAVORS

IMPROVED WAY TO BUILD TRUST & VERIFICATION ONLINE

DISCOVERY & VALIDATION OF 2nd DEGREE CONNECTIONS

IMPROVE CYCLE TIME OF ASKING FOR & DOING FAVORS

Alumni sites - TEST MVP HERE

LINKEDIN, FACEBOOK, GOOGLE+, TWITTER


for partners?

--PAY-WHAT-YOU-WANT, FEE FOR GIFTING--POINT SYSTEM TO EXCHANGE GOODWILL FOR $$--PREMIUM ADVERTISING--transaction fee, listing fee, fee for top tier circles


1) ENGINEERS2) BEHAVIORAL PSYCHOLOGY EXPERTS (ON-/OFFLINE)3) EARLYVANGELISTS

1

3

4 2IMPROVE EXPERIENCE OF OFFLINE CUSTOMERS

5

6 7

8

9

key learning: VALUE of fulfilling human social need

• value propositions come in two forms: they solve a problem or they fulfill a human social need

• Social Needs are friendship, dating, sex, entertainment, art, communication, blogs, confession, networking, gambling, religion, etc.

• they have always been fulfilled face-to-face• they are now moving on-line• the market size for these applications equals the

entire human race• these are the ultimate applications

Welcome to THE experience

Advanced EntrepreneurshipApril 20, 2012

Brian VogtDoug Carlson

Mohamed MaimouniAG Crum

Gabriel GilesSameer Kotak

FOR DAY 5: 32 IN-PERSON INTERVIEWSConsumersRetailers: Macy´s, Geox, Saks, Cole Haan, Lord & Taylor, Boticelli, David Z.

46 Online survey responses +81 In-person interviews

58 end-users10 retail6 medical4 brands3 design & mfg

TEAM TVM

Brian VogtDoug Carlson

Mohamed MaimouniAG Crum

Gabriel GilesSameer Kotak

EMBA NY, BS EngineeringEMBA NY, BS EngineeringEMBA Berkely/CU, Fashion EMBA NY, BS InfoSysEMBA NY, BS/MS EngineeringEMBA NY, BS/MS Pharma

VISION

CREATE A MARKET AT THE INTERSECTION

OF FOOTWEAR STYLE, TECHNOLOGY, AND COMFORT

THE JOURNEY

OPPORTUNITIES‘’BREATHING SHOES’’

MARKETGROWING SUCCESS OF

BRANDED COMPONENTS EMERGING

TECH-STYLE TREND

$1.1B $260M SOLD OUT!

DISCOVERYHYPOTHESIS TEST RESULT

• End-users• Retailers• Med providers

Branded component

$400 retail

All men’s dress and bus casual

Own shoe brand • Online retail partner

• Brands• Designers• Manufacturers

• End-users• Retailers

$249 retail+ accessories

• General comfort• Medical

SEGMENT:

CHANNEL:

PRICING:

ARCHETYPES

Description: 35 Affluent male

VALUE PROP:General comfort,

clean and controlled ventilation for shoes

Description: Suffering

(Eg. Hyperhydrosis, Pernio)

VALUE PROP:Alternative, discrete, controlled option to

existing costly therapies

GENERAL COMFORT MEDICAL CONDITION

Most important? Men, dress &

business casual

Archetypes? Stuck in closed shoes during work-day with

changing environments

Job to get done? Enable comfort and productivity

Activities? Customer input, IP filings, beta development, ,

suppliers

Customer’s problems? End-users: foot sweat, hot, cold.

Partners: differentiation

Customer needs? Comfort, medical / Profitability growth

Product features? Battery powered

shoe sole ventilation, cooling,

heating

Partners? Shoe mfg.'s / branders by

region , development

Suppliers?Component

mfg.'s, Ventiva

Getting? Technology,

manufacturing Giving?

Differentiation and price

Inherent in our model? Variable material, mfg overhead

Making money & pricing model?$50 mfg’ed, 100 soles, 200 shoes, 400 retail

Reach segments? Established partner retail

outlets (brick & mortar)

Resources? Development partner, seed

funding

1

3

4 2Get, keep, grow? End-users: PR, branded captivity

Partners: Convince of

unique value for end-users

5

6 7

8

9

Day 1 Canvas

Day 2 Canvas

Day 1 -- Key Learnings

CUSTOMER SEGMENTS• Identified three distinct segments

VALUE PROPOSITIONS• Identified additional value prop.

Day 3 Canvas


CUSTOMER SEGMENTS• Refined three distinct segments

VALUE PROPOSITIONS• Identified value propositions for

each segment• Price differentiation for a range of

feature sets• Price differentiation for each

segment

CHANNELS• Identifying channels for each

segment

Day 4 Canvas


CUSTOMER SEGMENTS• Refined focus to “General

Comfort” segment• Developed a phased segment

rollout strategy

CHANNELS• Switched to Online Retail and

kiosks for our General Comfort segment

PARTNERS• Switched from selling

components to brands to making whole shoes

Day 5 Canvas


CUSTOMER SEGMENTS• Prioritized General Comfort• Dropped Tech Lovers (for now)• Clarified that target segments

were for men only

CHANNELS• Switched to Online Retail for all

segments• “To try is to buy”

VALUE PROPOSITION• Identified the need for strong

designs by a notable designer• Confirmed $199-$249 as the

pricing sweet spot

PARTNERS• Equity partnership with Chinese

manufacturing consortium

Medical Condition

General ComfortOnline Retailer

Kiosks

Designer

Manufacturer

TVM ECOSYSTEM

Property Managers

$

$

$

$

$

$

Brand Development

THE OPPORTUNITIES ARE LIMITELESS

THANK-YOU!

Most important? Men, dress &

business casual

Archetypes? Stuck in closed shoes during work-day with

changing environments



suppliers

Customer’s problems? End-users: foot sweat, hot, cold.

Partners: differentiation



shoe sole ventilation, cooling,

heating



Suppliers?Component

mfg.'s, Ventiva









funding

1

3




5

6 7

8

9

Day 1 Canvas TVM Tech

Day 2 Canvas

Most important? Men, dress & business

casual

Archetypes? (1) Sought med

(2) UnSought med(3) Tech ‘comfort’



suppliers

Customer’s problems? End-users: foot sweat, hot, cold,

fatigue.Partners:

differentiation



shoe sole ventilation, cooling, heating, massage



Suppliers?Component

mfg.'s, Ventiva






400 retail250 retail




funding

1

3




5

6 7

8

9

TVM Tech


Customer Segments• Identified three distinct

segments

Value Propositions• Identified additional value

propositions


Active Seekers (1) Sought med


suppliers

Partners? Shoe mfg,

manufacturing



400 retail250 retail


funding

1

3




5

6 7

8

9

Passive Sufferers

(2) UnSought med

Tech Lovers 3) Tech ‘comfort’

• Mitigate hyperhidrosis

•Low effort solution

• Foot comfort• Discreteness

• Cool factor• Foot comfort

• Medical catalogs• Referrals

?

Established partner retail

outlets

Suppliers?Component

mfg.'s, Ventiva


manufacturing

Giving? Differentiation

and price


Customer Segments• Refined three distinct segments

Value Propositions• Identified value propositions for

each segment• Price differentiation for a range

of feature sets• Price differentiation for each

segment

Channels• Identifying channels for each

segment


Active Seekers Activities?

Customer input, IP filings, beta development, ,

suppliers

Partners? Shoe mfg,

manufacturing

Inherent in our model? Product development, variable costs,

online retail, kiosks, SG&A


400 retail $250 retail


funding

1

3




5

6 7

8

9

General Comfort

Tech Lovers ’

• Mitigate hyperhidrosis

•Low effort solution

• Foot comfort• Discreteness

• Cool factor• Foot comfort

• Medical catalogs• Referrals

Online Retail, Kiosks

Established partner retail

outlets

Suppliers?Component

mfg.'s, Ventiva


manufacturing

Giving? Differentiation

and price


Customer Segments• Refined focus to “General

Comfort” segment• Developed a phased segment

rollout strategy

Channels• Switched to Online Retail and

kiosks for our General Comfort segment

Partners• Switched from selling

components to brands to making whole shoes

Day 5 Canvas

Medical Condition

ActivitiesMarketing, R&D,

Design

Partners Shoe

manufacture

Inherent in our model?

Product development, variable costs, online retail, kiosks, SG&A

Making money & pricing model?

$199 – $249 retail

$100 – $125 wholesale

ResourcesSeed money,

Engineering talent, Established designer,

Chinese partner

TVM Tech

1

3

4 2Get, keep, grow Informational

Website, testimonials,

kiosks, 30-day guarantee,

customer svc

5

6 7

8

9

General Comfort

• Relief from significant

medical conditions

• Foot comfort• Cool factor

• Style

Online Retail Partner

SuppliersComponent

Electronics & Footwear

GettingTechnology,

manufacturing

Giving Differentiation

and price

Men, 25-45

jerry sanders Group 14

159

[Social Crowd]An online platform helping local communities to thrive

4/16: 12 interviews (5 Investors; 7 Businesses)4/17: 15 interviews (3 Investors; 12 Businesses)4/18: 3 interviews (3 Community Groups)4/19: 18 interviews

Total: 48 interviews


160

Monday

“Neighborhood” shops who need $

for their business but also “do good” for their community.

People who want to invest in their local

community while also getting a return on their investment.

Project management, renovation, software.

Shop owners who want to renovate their building & needs both

cash & expertise (renovation, project

management, …) but also providing them for

a “supply” of customers as the

business is starting.

People investing $ and in their local

community, satisfying their desire for a return on $ but also to invest

in their local community.

Key partners and suppliers are people

from the construction/

renovation industry

We get know-how/expertise & we give them …

work!

Web platform, program management and technical support Brokerage fee, licensing, advertising

Media, social media, direct contact,

chamber of commerce

Financial, physical, technical, HR


1

3

4 2Direct contact and

social media. Retaining and

growing customers will be a challenge.

5

6 7

8

9


161

Tuesday

Finders:Individuals & groups seeking investment opportunities that provide (i) requisite returns and (ii) a direct benefit to a local community.

Grinders:Start-ups and locally owned businesses seeking capital investments of $10K-$2M

One-off:- Platform design

Ongoing:- Screening- Marketing- IT maint. & support- New market ID

An online ‘matchmaking’ forum where F&G connect.

Finders: Investment efficiency through a screening process that ensures only the top ideas are posted.

Grinders: Access to small amounts of capital typically hard to acquire through institutional routes.

- Independent business organizations

- Community funding institutions

- Local business school alumni

- Personal connections

- Local business activists

Value-driven: Most important costs include:- Web platform development- IT management & technical support- Marketing & customer acquisition- Application review costs (experts)

Dual revenue structure:- Finders Fee (2% of consummated deal value)- Grinders Fee ($250 application review fee)

- Direct contact through website

- Local news & PR channels

- Word of mouth

- Customer d/base- Proprietary

knowledge- Brand copyright- Site skin: look, feel


1

3

4 2- Semi-automated - Local community-

focused

5

6 7

8

9


162

Wednesday





- COMMUNITY INTEREST ORGS





Value-driven: Most important costs include:- Web platform development- IT management & technical support- Marketing & customer acquisition- Application review costs (experts)

Dual revenue structure:



- Word of mouth



1

3


focused

5

6 7

8

9

Finders:Individuals & groups seeking investment opportunities that provide (i) requisite returns and (ii) a direct benefit to a local community.

Grinders:Start-ups and EXISTING locally owned businesses & COMMUNITY GROUPS seeking capital investments of $10K-$2M



- Finders Fee (2% of consummated deal value)

- Grinders Fee ($250 application review fee)


163

Thursday

j



An online platform helping local communities to thrive‘matchmaking’ forum where F&G connect.


- Community Groups & Block Associations interest orgs





- Government entities

Value-driven: Most important costs include:- Web platform development- IT management & technical support- Marketing & customer acquisition




- Word of mouth



1

3


focused

5

6 7

8

9

FindersInvestors:Individuals & groups seeking investment opportunities to provide a direct or indirect benefit to a local community.

GrindersBusinesses:Existing locally owned businesses seeking capital investments of $10K-$2M

FindersInvestors: Investment efficiency through a screening process that ensures only the top ideas are posted.

GrindersBusinesses: Access to small amounts of capital typically hard to acquire through institutional routes. Giving residents a way to preserve their neighborhood

- Finders Fee (2% of consummated deal value OR top line revenue interest in subject business)

- Grinders Application Fee ($250 application review fee)


164Experiments Yesterday

[Social Crowd]

Test Activities ResultsLong term viability Surveys & interviews to determine LT sustainability of our

business model. For instance, the impact of consummating: a good deal: loyalty to us or the contracting party? a bad deal: negative splash-back on us?

Inconclusive

User interface How investors and businesses prefer to interact (privacy etc) Conclusive

Markets Attend a community board meeting to further test the genuine market size/need Streets vs Neighborhoods Street Ambassadors

Conclusive, but not scaleable

Diving deeper…


165

Friday



Helping local communities thrive by creating an online platform for them protect and preserve their way of life


- Community Groups & Block Associations Local business school alumni



- Government entities

Value-driven: Most important costs include:- Web platform development- IT management & technical support- Marketing & customer acquisition




- Word of mouth



1

3


focused

5

6 7

8

9

Investors:Individuals & groups seeking investment opportunities to provide a direct or indirect benefit to a local community.

Businesses:Existing locally owned businesses seeking capital investments of $10K-$2M

Investors: Investment efficiency through a screening process that ensures only the top ideas are posted.

Businesses: Access to small amounts of capital typically hard to acquire through institutional routes. Giving residents a way to preserve their neighborhood

- Finders Fee (2% of consummated deal value OR top line revenue interest in subject business)

- Application Fee ($250 application review fee)- Revenue sharing (Percentage from topline)


166Home Page

[Social Crowd]

I have $ I need $


167Profile

[Social Crowd]


168Boston Area – 2 leads

[Social Crowd]


169Friday

A platform helping business owners who

need to renovate funding &

construction services

Monday

Results/ lessons learnedWhat we thought

Experiments “unearthed” questions

Tuesday Wednesday Thursday




?

An online platform helping local communities to thrive



?

?

[Social Crowd]


170Monday

[Social Crowd]

Helping business owners who need $ to

renovate building raise the $ from their

local community

12 interviews with investors & business owners

Small businesses (“Grinders”) -- which are essential to vibrant communities -- face increasing threats to viability due to the inaccessibility of capital. Small business owners (grinders) and investors (finders) do not connect




s


171Tuesday

15 interviews with investors & business ownersDeep dive in Greenwich

Local element is key.Money is not enough: business owners also need expertise to develop innovative and relevant solutions to adapt to their ecosystem.People are interested in supporting their local businesses.Business owners need $ to renovate establishment. BUT, they also need money to buy new equipments/furniture and develop new product/services







[Social Crowd]


172Wednesday




s

3 face to face meetings (multiple parties).5 phone interviews

Proven model: Bryant Park CorporationNeed community board endorsementNeed Brand

Need to help small businesses get ownership of their building to avoid rent increase.Residents' wealth & culture vary drastically across location- is the model easily transferable?Some businesses are just not sustainable (& we need to decide if we help them or not)Need to understand the industry of small business if want to help it efficiently.




Does the “model” apply to other cities? Neighborhood

that haven’t organized ?

Unearthed a need for people to have a “platform” to “organize”/ exchange info/$$. But needs a lot more Customer Discovery to address that need.

[Social Crowd]


173Thursday




3hr community meeting (50 people).6 phone interviews (NYC, Boston, …)

Model applies to Boston too, ie transferable ;-)

Meetings & calls confirm the need for a “tool” for communities to “thrive”- what will it look like???

Developed and tested a wireframe. ?

[Social Crowd]


174Conclusion

• Confirmation that small businesses need $ & that residents are willing to invest so that communities continue to thrive (problem 1)

• BUT, identified a broader, yet not clearly defined need/problem: there is a need for a “tool” for communities to “organize”/ exchange info/$$ (problem 2).

• Next steps:– A. develop MVP to get running with problem 1 & test product market

fit– B. Do more customer discovery to get to the bottom of problem 2.

[Social Crowd]


175Next Steps?

Contact with Neighborhood organizations

Contact with Community funding

Institution & industry associations

[Social Crowd]

An online platform that connects procurement consortiums with suppliers.“Bulk Pricing without the Bulk”

Interviews:22 on Day 486 Total

Ravi PingliArez MardoukhiGopi Sukhavasi

Kevin Woolley

YOUR SUPPLIER NETWORK – Day 1

BuyersCFO’s, COO’s, CPO (Chief Procurement Officers)

Find the best possible suppliers for their operational needs

SuppliersCMO (Chief Marketing Officers), Sales Department

Find new customers

SoftwareMarketing

Sales

Buyers1. Find the best possible suppliers for procuring goods and services. 2. One solution to manage end to end source-to-pay process

Suppliers1. Provide platform to reach target market customers

Purchasing Associations

Marketing/Sales Team

Fixed - Software development, maintenance costs, administrative costs

Variable – Marketing/Sales costs

Subscription fee will be charged per seat for each customer.

The pricing will be higher for buyers than suppliers

Professional Network


Industry conferences

Software Development

Team

Marketing Resources

1

3

4 2Partnerships with

Industry Trade shows

Professional network

5

6 7

8

9

YOUR SUPPLIER NETWORK – Day 2

Chain/Corporate Restaurants

Chain/Corporate Hotels

Sales Companies Distributing to Hotels and Companies

SoftwareMarketing

Sales

Buyers1. Find the best possible suppliers for procuring goods and services. 2. One solution to manage end to end source-to-pay process

Suppliers1. Provide platform to reach target market customers


Marketing/Sales Team

Fixed - Software development, maintenance costs, administrative costs

Variable – Marketing/Sales costs

Subscription fee will be charged per seat for each customer.

The pricing will be higher for buyers than suppliers

Professional Network


Industry conferences

Software Development

Team

Marketing Resources

1

3

4 2Partnerships with

Industry Trade shows

Professional network

5

6 7

8

9

Key Partners• Hotel and

restaurant associations

• Independent research services

Key Activities• Develop

online platform

• Continuous buyer and supplier development

Value PropositionsBuyers• Find best

suppliers for procurement consortiums

• Facilitate transparency and ease of use

Suppliers• Increased

visibility to potential customers

Channels• Outside

salesforce

Customer Relationships• Regular

customer contact

Customer Segments• Local/

independent restaurants (no chains)

• Local/ independent hotels (no chains)

• Food, tabletop, and bed linen suppliers

Cost Structure• Fixed: Software development/maintenance • Variable: Marketing/sales

Revenue• Annual subscription contract for both buyers

and suppliers (~0.5% of consortium revenue)• Buyers/suppliers charged to submit/respond to

proposals

Key Resources• Software

development team

• Marketing resources

Business Model Canvas: Day 3

Key Partners• Hotel and

restaurant associations

• Independent research services


online platform


Value PropositionsBuyers• Lower costs• Increase

options and negotiating position


visibility to customers

• Increase sales price

Channels• Outside

salesforce


customer contact



• Local/ independent hotels (no chains)

• Food and tabletop and bed linen suppliers


Revenue• 3% commission on sales paid by supplier• Annual subscription contract for both buyers

and suppliers (~0.5% of consortium revenue)


development team



Key Partners• Network

effect among densely located restaurants


online platform


Value PropositionsBuyers• Lower costs• Increase

options and negotiating position


visibility to customers

• Higher margins

Channels• Outside

salesforce


customer contact



• Glassware suppliers


Revenue• 3% commission on sales paid by supplier• Free subscription for local restaurants


development team



Business Hypotheses

Hypothesis 1

• Restaurants will use the website instead of working with sales companies

Test

• Interviews with local restaurants

Hypothesis 2

• When showing the products, restaurants want to see the supplier name along with the price

Test

• Interviews with local restaurants

Result

• Accepted provided major suppliers are there on the network and they get a better deal

Result

• Accepted unless YSN provides a warranty on the product

Hypothesis 3

• Restaurant will procure supplies in coordination with other restaurants for a discount

Test

• Interview with local restaurants

Result

• Accepted with the caveat that delivery would not add significant cost.

What’s next?

• Brand Name (Glass…..)

• Setup LLC

• Get Trademark

• Acquire capital (SBA loan)

• Form the execution Team

• Enroll suppliers into YSN

• Signup local restaurants to use YSN

First Payment

FidélEatRestaurant Loyalty

19 Restaurateur Interviews

25 Consumer Interviews

Cumulative: 59 Restaurants, 77 Consumers, 140 Surveys

Robert Montrone

EMBA ’12Consultant /TV ProducerABC Television

Jaidev Rao

EMBA ’12Management ConsultingRothstein Kass

Abhishek Sheetal

EMBA ’12Tech Marketing / StrategyLeCroy Corporation

William Cooke

EMBA ’12Strategy & Financial PlanningBlue Sky Solar

Sarah Brown

EMBA ’12ConsultingNeuberger Berman

Dennis Kwon

MBA ’11Engineer / Tech EntrepreneurshipLala.com

Mid Range Restaurant Interviews ($40+ plate)

Interview of Savored.com

Interview of Savored.com

Advanced Booking Discounts

Listen to your Customers (restaurants)

Repeat Customers!

Pivot Declaration

Pit of Despair

Diner Interviews

Restaurant Interviews (mid-low end, Columbia)

Restaurant Interviews (mid end, trendy)

Restaurant Interviews (mid-high end restaurant group, trendy, young international)

Restaurant Interviews (mid-high end, UWS)

Listen to your Customers (restaurants)

Restaurants with more than 40% repeat customers want better way to…

ANALYZE and RECOGNIZE

ANALYZE

OpenTable

• Collects information• Provides some analysis• Will export to XL file

Hypothesis

• Export data• Provide better analytics• Allow more creative loyalty programs with value add

RECOGNIZE

• Reservations are automatically recognized through open table

• PROBLEM ----- Most repeat customers are walk-ins!

• SOLUTION ----- Face recognition

• This allows the hostess to recognize a repeat customer, even if it has been 6 months since their first visit.

www.fideleat.com

http://crowdgoo.com/fideleat

ECOSYSTEM

RestaurantHostess Stand

OpenTableReservatio

n Book

FidelEatOpenTable

Website

PHOTO

RESERVATION

DATADATA

CUSTOMIZED INFORMATION

Table Compass

Who are our most important customers?Both restaurants and end users What are their archetypes?People who plan, price conscious, occasions, groups of friends What Job do they want us to get done for them?End customer: discountsRestaurants: fill seats

Key Activities• Platform design and

development • Business

development, partnerships and marketing

Which of our customer’s problems are we helping to solve?• Empty tables• Difficulty making

reservations• Price

Which customer needs are we satisfying?• Restaurants: revenue

management, working capital

• End Customers: discounted meals, secured reservations, restaurant comparisons

What are the Key Features of our product that matchcustomers problem/need? • Discounted pricing• Restaurant discovery

Key Partners Restaurant owners

Key Suppliers Possibly Open Table

What are we getting from them? Reservation Service Giving them? Restaurant traffic

What are the most important costs inherent in our business model? Fixed Cost: Building the website Variable: Marketing, sales people, advertising

How do we make money? What’s the revenue model? Pricing tactics?Options: listing fees, percentage of restaurant fee, restaurant flat fee, first year free, etc.

Through which Channels do our Customer Segments want to be reached? • Restaurants: face to

face meetings• End Customers: Word

of mouth marketing, online, direct email

Key Resources• Designers, Engineers• Business

development, Sales• Money

1

3

4 2How will we Get, Keep and Grow Customers? Retention plan: points system, Groupon, promotional item, value add free meal, etc.

5

6 7

8

9

Monday

Table Compass

Archetypes?People who planPrice consciousFoodies




• Difficulty making reservations

• Price• End Customers:

Discounted bookings, secured reservations, restaurant comparisons

• Discounted pricing• Restaurant discovery





Listing fees, percentage of restaurant fee, restaurant flat fee, first year free, etc.






1

3

4 2How will we Get, Keep and Grow Customers? Retention plan: points system, Groupon, promotional item, value add free meal, etc.

5

6 7

8

9

(Pass, Fail, Unclear)

• Medium-low end restaurants

• Medium-high end restaurants that take reservations

. Revenue Management. Working capital. Filling Seats

Tuesday

Table Compass

Younger Trendy




• Price• Discounted bookings,

secured reservations, restaurant comparisons

• Discounted pricing• Restaurant discovery





Options: listing fees, percentage of restaurant fee, restaurant flat fee, first year free, etc.






How will we Get, Keep and Grow Customers? Retention plan: points system, Groupon, promotional item, value add free meal, etc.


• Medium-low end restaurants

• Medium-high end restaurants that take reservations

. Revenue Management. Working capital. Filling Seats

Wednesday

FidélEat

Younger TrendyYoung families

• Platform design and development

• Business development

• Partnerships and marketing

PriceDiscounted bookings, secured reservations, restaurant comparisonsDiscounted pricing- Discount rewards for loyalty- Promotional Credits



What are we getting from them? Reservation Service Giving them? REPEAT Restaurant traffic


Options: listing fees, percentage of restaurant fee, restaurant flat fee, first year free, etc. Monthly Subscription Fee, Tiered subscriptions



of mouth marketing, online, direct email, NY Times

• Designers• Engineers• Business

Development• Sales• Money

How will we Get, Keep and Grow Customers? Retention plan: points system, Groupon, promotional item, value add free meal, etc. Expiring Promotional Credits (EPCs)


- Medium-low end restaurants- Medium-high end restaurants that take reservations

- Revenue Management- Working capitalFilling Seats- Repeat Business- Fill seats during slow periods

Thursday

Monthly Subscription Fee, Monthly/Quarterly customer data service

FidélEat

Repeat customersNew Customers

• Platform design and development

• Business development

• Partnerships and marketing

- Discount rewards for loyalty

- Better Service

Key Partners Open Table

Key Suppliers Face recognition software

What are we getting from them? Reservation Service Giving them? REPEAT Brand Loyalty

What are the most important costs inherent in our business model? Fixed Cost: FACE RECOGNITION SYSTEM Building the website Variable: FACE RECOGNITION SYSTEMS, Marketing, sales people, advertising



of mouth marketing, online, direct email, NY Times

• Designers• Engineers• Business

Development• Sales• Money


- Medium-high end neighborhood restaurants

- High Quality of Repeat Business

- Enable Customer Recognition

- Enable personalized marketing

NOW

Monthly Subscription Fee, Monthly/Quarterly customer data services one time fee

- How will we Get, Keep and Grow Customers

How will we Get, Keep and Grow Customers? Retention plan: Expiring Promotional Credits (EPCs)

Pivot Declaration

First Advisory Board Member

Customer Contacts Yesterday: 17 traveler groups in personCustomer Contacts To Date: 70 in person / 33 online / 75 Adwords clicks / 51,000 online impressionsPurchases To Date: 7 Repeat Customers: 1

Scott Greco

Ari Harkov

Alex Morrison

Sarah Shenton

Francois Viargues

MichaelBurke

1. Traveling to urban destination and a desire for authentic experiences

2. Own smart phone / tablet (ideal)

3. Age 25-45 / target 25-35 (?)

4. Professional, $50k+ income

5. Time-starved

Our job:-making planning quicker,

easier, painless-access to off the beaten

path spots-vacation that meets their

specific interests

1. Itinerary collection & updates

2. Marketing / PR

3. Customer service – locals & travelers

For Customers:1. Access to authentic,

non-touristy spots

2. Better planned days = easier, maximize vacation time

3. Save time

4. Clean UX and interactive itineraries take the guidebook to 21st century

For Local Experts:5. Monetize your local

knowledge

Partners: hotels, local merchants, airlines, online booking sites, local sites, rental car

companies, international phone data carriers

Suppliers: local trendsetters, work in

hospitality, younger/creative,

bloggers, active parents

Get itineraries: $$ for sales as well as

exposure (blog, video)

Fixed costs: upfront development of site and app

Variable costs: talent/people, marketing/advertising, compensation of locals, product iterations

How: Sell itinerary for $4.99, pay local 20%, keep 80% gross margin.

Pricing tactics: compete between guidebooks & freePromos: 1st free, free if feedback, buy 1 get 1 free, free if FB post

1. Search (SEO/SEM)2. Social media3. Travel blogs4. Travel/local sites

1. Web developers2. Marketing/PR team3. Local expert outreach4. Sales force (low end,

in person)

1

3

2Get: PR, digital WOM, SEO, SEM, consumer promotions

Keep: great customer service, expand cities, improve partner offerings

Grow: CRM / relationship marketing, expand offering to more cities

5

6 7

8

9

4Version 1 – April 15th 2012

Locals - Content Providers


2. Marketing / PR

3. Customer service – locals & travelers

Partners: hotels, local merchants, airlines, online booking sites, local sites, rental car companies, international phone data carriers

Suppliers: local trendsetters, work in hospitality, younger/creative, bloggers, active parents

Get itineraries: $$ for sales as well as exposure (blog, video)




Pricing tactics: compete between guidebooks & freePromos: 1st free, free if feedback, buy 1 get 1 free, free if FB post

• Craigslist• Social media• Local blogs


in person)

1

3

2

5

6 7

8

9

Version 2 - EOD April 16th 2012

Mass Distributors – Content Purchasers (Ex: Hotel Concierge)

Bakamba helps tourists have richer, more authentic travel experiences by tapping into the knowledge of locals Save time planning See the “Real” City Filter based on interests Everything in one place

Get: PR, digital WOM, SEO, SEM, consumer promotions

Keep/ Grow: great customer service, expand cities, improve partner offerings

4

Unique platform for locals experts to share and monetize their local knowledge

Revenue sharing & relationship marketing

• Search (SEO/SEM)• Social media• Travel blogs / sites

Tourists – Content Purchasers


Mass Distributors – Content Purchasers



2. Marketing / PR

3. Customer service – locals & travelersSuppliers: local

trendsetters, work in hospitality, younger/creative, bloggers, active parents







in person)

1

3

2

5

6 7

8

9



Bakamba helps tourists have richer, more authentic travel experiences by tapping into the knowledge of locals Save time planning See the “Real” City Filter based on interests Everything in one place

Get: PR, digital WOM, SEO, SEM, consumer promotions


4



• Search (SEO/SEM)• Social media• Travel blogs / sites


Potential idea: Provide recommendations and info to concierges





2. Marketing / PR





Variable costs: talent/people, marketing/advertising, compensation of locals, product iterations, printing/binding


Tests: can we get locals to contribute without the promise of payment for sales? Get one for free if you create one for your own city? Pay to post? Break up itineraries into sections by

different locals?



in person)

1

3

2

5

6 7

8

9



Bakamba helps tourists have richer, more authentic travel experiences by tapping into the knowledge of locals Save time planning See the “Real” City Filter based on

interests/location/authors Budget advice / Flexibility needed

Get: PR, digital WOM, SEO, SEM, consumer promotions, authors as sales force?


4



• Search (SEO/SEM)• Social media• Travel blogs / sites• Authors as sales force



People want flexibility and dynamic itineraries with options

People would prefer to build their own itineraries based on a

database of local recommendations.

People will choose travel itineraries based on WHO is

writing them.

Confirmed. WTP increased significantly when presented with

MVPs with options

Confirmed. People love the ability to build their own itineraries.

Confirmed. Everybody wants to know who is writing, but it

remains unclear whether it is the main reason for choosing an

itinerary.

Hypothesis Result

People also would want to be put in direct contact with their local

guide.

Refuted. People do not seem to want direct contact with their

local guides.





MVPs with options


Hypothesis Result


guide.


local guides.


writing them.



itinerary.



MVPs with options

Hypothesis Result


guide.


local guides.


writing them.



itinerary.








2. Marketing / PR





Variable costs: talent/people, marketing/advertising, compensation of locals, product iterations, printing/binding

How: Sell itinerary for $4.99 - $9.99, pay local 20%, keep 80% gross margin.

- Should we allow people to download itineraries in exchange for writing an itinerary?

- Should we give itineraries away for free and rely on an advertising model or other revenue source?



in person)

1

3

2

5

6 7

8

9



Bakamba helps tourists have richer, more authentic travel experiences by tapping into the knowledge of locals Save time planning See the “Real” City Filter based on

interests3 or more options for every occasion

Get: PR, digital WOM, SEO, SEM, consumer promotions, authors as sales force


4



• Search (SEO/SEM)• Social media• Travel blogs / sites• Authors as sales force



The AUTHENTIC City Experience

• Restaurants• Activities • Attractions

Eco SystemLocal Recommendations

Via Web for the Pre Planner

Mobil device for the On The Go

Subscriptions for Multi User Locations

• The individuals creating itineraries

Bakamba Travelers

?!*&?

Travel Agents

Online Travel Sites & Travel Books

$$

Next Steps

– Increase the number of tests and experiments and introduce the site slowly to early access users without a high-fanfare launch.

– Add technical expertise within the core group of founders.– Reverse-engineer the business models of our competition and analyze

the success and failures of their strategies.– Continue to gather data, and truly establish our goal:

• Millions of users• Immediate Revenue

– Once data has been gathered, focus on pattern recognition within the data. We will map out the market opportunity, determine whether there is also a revenue opportunity there, and proceed accordingly.

PULZE

Your Organization’sPULZE

Vladimir Baranov, Jitender Chopra, John Gole, Riyaz Habibbhai, F. Lane Harwell, Daniello Natoli

Total Interviews: 47!

April 20th, 2012

PULZEORGANIZE, ANALYZE, AND COMMUNICATE

PULZE

Hypotheses

We can use consultants as channels?

We can use consultants as customers?

PULZE

- SEO, SEM, AwC: $10, AcC: $250

- Leadership Conferences: AwC: $1499, $AcC: $50

- Social Media Groups: AwC $10, AcC: $250

How else would we get customers?

PULZE

1) Standard Off-the-shelf software:- content empty- no insight- the questions are the best guess of the person creating them

2) HR and Management Consultants are potential channels and customers

3) Value-based pricing

4) Demonstrate value first and follow-up with telesales and direct marketing

We also talked to HR software company

PULZE

Survey Monkey

$500 per year

$ per Survey/Analysis

Price and Value Position

PULZE$500 - $3,500

HR Consultancies~$5,000 - $15, 000

(per survey)

Per

cep

tion

of

Val

ue

Raw Data / Little Analysis

“DIY” Data and AnalysisBenchmarkingTemplates with response validation CustomizationAccess to Domain Specific SolutionsLegal and Regulatory Checks

ORGANIZE, ANALYZE, AND COMMUNICATE

“Hand Holding” Data and AnalysisBenchmarkingTemplatesCustomizationAccess to Domain Specific SolutionsLegal and Regulatory Checks

PULZE

Team Pulze

500 < Enterprises

< 2000 Bottom-Up employee

engagement

Software vendors

One time service fee

Sales force

1

3

4 2Key Account management

5

7

8

Provide employees

ownership in business strategy

Low cost solution to interim surveys

Middle Management of

larger corporations

Semi customized

service based on needs

Subscription service

Enterprise social platforms

Partners

6

Cloud service

Data warehousing

Suppliers

3rd party analytics

R&DMarketing and Manage the

platform

Lead gen

Recruitment

Software developers

HR talent

Research experts

Payroll

marketing

Fixed

Sales

Customer acq.

Talent acq.

Variable

9

Website

PULZE

Team Pulze

Manager of a company,

division or unit with 100-3000

employees, w/minimal HR

support

Bottom-Up employee

engagement

Software vendors

One time service fee

1

3


5

7

8

Provide employees

ownership in business strategy

Low cost solution to interim surveys

SEO

Subscription service


Partners

6

Cloud service

Data warehousing

Suppliers

3rd party analytics

R&D

Marketing and Manage the

platform

Software developers

HR talent

Research experts

Payroll

marketing

Fixed

Sales

Customer acq.

Talent acq.

Variable

9

Website

HR Consultants

Analysis

Benchmarked Data

Templates

Semi-customization

Sales force

Gamification – to increase particip

Recruitment

Lead gen

>Survey Monkey < Consultants

Fee to HR Consultants

US Legal

Legal Counsel

PULZE

Team Pulze

Manager of a company,

division or unit with 100-3000

employees, w/minimal HR

support

Bottom-Up employee

engagement

Software vendors

Number of Employees

$500 < N < $5K

1

3


5

7

8

Provide employees ownership in

business strategy

Low cost solution to employee surveys

SEO

Subscription service $1 – 5K


Partners

6

Cloud service

Data warehousing

Suppliers

3rd party analytics

R&D

Marketing and Manage the

platform

Software developers

HR talent

Research experts

Payroll

marketing

Fixed

Sales

Customer acq.

Talent acq.

Variable

9

Website

HR Consultants

TemplatesAnalysis

Benchmarked Data

GamificationEthical and Legal

Customization

Legal Counsel

Fee to HR Consultants

24/7 Value Added Consultants for Pre/Post Survey

Linked-In

Social Media

PULZE

Team Pulze – day 5

Manager of a company, division or unit with 100-3000 employees,

w/minimal HR support

Bottom-Up employee engagement

Software vendors

Number of Employees$500 < N < $5K

1

3


5

7

8

Provide employees ownership in business

strategy

Low cost solution to employee surveys

SEO


Partners

6

Cloud service

Data warehousing

Suppliers

3rd party analytics

R&D

Marketing and Manage the platform

Software developers

HR talent

Research experts

Payrollmarketing

Fixed

Sales

Customer acq.

Talent acq.

Variable

9

Website

Consultants

TemplatesAnalysis

Benchmarked DataGamification

Ethical and Legal

Customization

Legal Counsel

24/7 Value Added Consultants for Pre/Post Survey

LinkedIn

Social Media Consultants?

Conferences

PULZE

Summary and Conclusion

The Original strategy Sell to human resources executives, primarily Mixed response Co-Opetition, Barry Nalebuff, YSOM

Leadership and HR are different verticals

Original Strategy

Refine market segment SMid: Small to medium size enterprises are the

sweetspot Needs support and data

Pivot

PULZE

Canvas could be used for public growth companies analysis

Customer discovery process may lead to several pivots

Archetype of customer may pivot with more data

Channel aligned with your value propostion gives best advice

Not all ideas are hopeless, they are just waiting for a pivot

Ask for help and help others: Pay Forward

Lessons Learned

PULZE

Appendix

PULZE

Market SizeBusiness Units

100-499 90,386 500-749 6,060 750-999 3,038 1000-1499 3,044 1500-1999 1,533 2000-2499 904 2500+ 46,525

TAM 151,490

TAM: 151,490

SAM: 136,384

TM: 34,085

Source: US Census,2008

SAM estimate was derived by using broadband business usage ratio. OECD

PULZE

•Next Steps

o Test an MVP Does it excite people? Easy to sell? Can we raise prices?

PULZE

Customer Relationship and Channels

Acquisition?Awareness?

ProblemsHR consultants don’t want to work with usMiddle Managers aren’t actively lookingOptionsReferrals – Probably not enoughSales forceImplicationsCosts soarCannot keep prices to our low price point

HR Managers

HR Consultants

HR Blogs, Journals

Middle Managers

Day 5 presentations columbia apr 2012

Education

Transcript of Day 5 presentations columbia apr 2012