Maduabuchi (Sam) Nkwodinma. Problem - Tier One 85 Frequent Travelers Surveyed 52% loose key card at...
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Transcript of Maduabuchi (Sam) Nkwodinma. Problem - Tier One 85 Frequent Travelers Surveyed 52% loose key card at...
![Page 1: Maduabuchi (Sam) Nkwodinma. Problem - Tier One 85 Frequent Travelers Surveyed 52% loose key card at least once 38% have stayed in hotels that required.](https://reader036.fdocuments.us/reader036/viewer/2022062517/56649efb5503460f94c0e04a/html5/thumbnails/1.jpg)
Maduabuchi (Sam) Nkwodinma
![Page 2: Maduabuchi (Sam) Nkwodinma. Problem - Tier One 85 Frequent Travelers Surveyed 52% loose key card at least once 38% have stayed in hotels that required.](https://reader036.fdocuments.us/reader036/viewer/2022062517/56649efb5503460f94c0e04a/html5/thumbnails/2.jpg)
Problem - Tier One
85 Frequent Travelers Surveyed• 52% loose key card at least once• 38% have stayed in hotels that
required the return of the key card upon departure
• 73% value high-tech innovation
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Problem - Tier TwoAverage of 28 issues with card keys on a monthly basis leading to service recovery• Average per year cost: about
$3,600
Hotels spend between $450 and $1,000+ on replacement keys and key packets monthly• Average per year cost: about
$10,000
Employees mistakes lead to giving guests the wrong keys• Major security issues can result in
lawsuits
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SolutionsProduct: A biometric thumbprint scanning system to replace hotel key card access systems
Features: • 1 x 0.5 inch scanner• Numbered keypad• 1 x 2.2 inch digital information screen• Battery backup
Benefits: • Codes prints to biometrics• Allows override access• Provides local restaurant ads• No issue of non-functionality
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Customer Validation
Our Enterprise• Sales, marketing, and information
technologyPartnership • M2SYS Core Technology: marketing
services• Fulcrum Biometrics: manufacturing• Branded Hotel Chains Software Program • Restricts access to authorized users• Tracks employees more efficiently Survey Results• Approximately 70% are interested in
our service• Willing to pay, on average, $17.50
more/night for this service
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Industry Trends
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Security AlarmServices Industry
Attributes• Mature• Projected to grow, entrance of higher technology
Marketing Segments Served• Security alarms & monitoring
devices• Locksmith services
Follows state of economy• Trend, challenge
2-tiered industry• Low barriers to entry
Security Alarm Services Industry
Hotel Equipment Wholesaling Industry
Hotel/Motel
Industry
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Hotel Equipment Wholesaling Industry
Declining• Private nonresidential construction declining• Price: competitive factor
Role of technology• Hotels focus on more
technologically advanced equipment: improving economic conditions
Low barrier to entry
Security Alarm Services Industry
Hotel Equipment Wholesaling Industry
Hotel/Motel
Industry
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Hotel and Motel Industry
Mature industry• Declined due to price wars• Recovering with economy
High barrier to industry• Brand recognition
• Client base
Increasing use of technology• Especially in upscale hotels
Security Alarm Services Industry
Hotel Equipment Wholesaling Industry
Hotel/Motel
Industry
![Page 10: Maduabuchi (Sam) Nkwodinma. Problem - Tier One 85 Frequent Travelers Surveyed 52% loose key card at least once 38% have stayed in hotels that required.](https://reader036.fdocuments.us/reader036/viewer/2022062517/56649efb5503460f94c0e04a/html5/thumbnails/10.jpg)
Industry Trends
Low barrier to
entry
Varies with economyTechnology-oriented: save $, up-to-date
Mature Industry
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Competitive Advantage
Cost
Direct competition• None: No biometric entrance systems used in the hospitality industryIndirect Competition• VingCard and Onity: major key card companies
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Opportunities• Hotel/Motel Industry barrier to entry• Technology in economy
Why SecuriKey?• Unique• After a one-time installation cost, comparable
yearly subscription fee
Competitive Advantage• Technology increases hotel’s value• Reduces hotel’s long-term cost: lower prices,
higher profitability
Competitive Advantage
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Competitive Matrix
Factor SecuriKey Key Cards Keys
Safety 9 5 5
Convenience 10 5 5
Functionality 9 5 10
Environmental Friendliness
9 5 9
Low Price 5 2 8
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Business and Revenue Model
Relevant Local Restaurant Ads Possible avenue of additional revenue
100 Suite Hotel: SecuriKey VingCard*
Installation (parts/labor) $75,000.00 $71,570.74
Yearly Contractual Cost $36,400.00 $33,500.00
Bi-Yearly Updates Included Varies
Technical Repairs $75.00/hour $75.00/hour
Replacement Parts Varies Varies
**VingCard prices are based on Residence Inn by Marriott Dallas/Addison
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Marketing PlanEnter market
• Utilize direct sales method
Develop product
• Test in select 5 hotels
• Charge half the normal rate
• Provide free technical support visits for first year
Expand to major brands after testing
• Install in 10 branded hotels in Year 2
• Install in 100 branded hotels in Year 3
Target new brands and hotels to beconstructed
• Attend trade shows
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Timeline
• Work with Fulcrum Biometrics to build Prototype
• Consult with Test Hotels
• Contract with test hotels at discounted rate
• Install system in Test Hotels
• Begin gathering data of successes and failures
• Work closely with Test Hotels to monitor issues
• Work on any issues/kinks
• Begin compiling data to give to Hotel Chains
• First contact with Hotel Chain
• Finalize any changes in product or pricing
• Work with M2SYS to develop marketing campaign with increased budget
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Financial ProjectionsY1
5 HotelsY2
10 Hotels
Y3100
Hotels
Revenue $212,500.00 $800,000.00BR
$8,000,000.00
COGS $323,445.30 $646,890.60EA
$6,468,906.00
Gross Profit
$(110,945.30) $215,609.40K
$2,093,594.00
Operating Expense
$570,475.70 $1,324,279.00EV
$1,485,460.47
Net Income $(681,421.00) $(1,108,670.00)EN
$608,133.53
**50% discount for test hotels
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Startup Costs/FundingFirst Year Budget Cost
Sales Salary (3 Sales Representatives) $124,800.00
Managerial Salary (1 Call Center Manager) $58,000.00
Customer Service Representatives (10 Representatives) $300,000.00
Office Space Rental $13,500.00
Accounting and Legal $50,000.00
Internet and Telephone Included in Rent
Office Computers/Equipment $11,165.70
Manufacturing/Materials/Biometric Software $58,445.30
Installation/Labor Contract Costs $265,000.00
Marketing $10,000.00
Training $3,010
Total $893,921.00
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Management Team/Advisors
Call Center Management
Jasmine LinguistSales
Sam Nkwodinma
Hotel Industry Advisor
Abigail Turner
Marketing
Miguel Juarez
Financial Advisor
Open
Human Resources
Open
Technical Advisor
Open
Customer Relations
Shan Su
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