Lamp Project 2009Lamp Project 2009Team 6Team 6
May 26, 2009May 26, 2009
Sabina MaSabina MaCarl RosenauCarl Rosenau
Lorelyn ShannonLorelyn ShannonBruce WilliamsBruce WilliamsDontay YoungDontay Young
Daud ZossDaud Zoss
AgendaAgendaDeciding on a Product
The Product
Business Value
Project Management
Personal Takeaways
Deciding on a ProductDeciding on a Product
Our Mission
Product Choices
Product Selection
Our MissionOur Mission
Develop a product delivered by science/engineering studentManaged by us
Student income of ~$200/month
Product makes use of science/engineering principles
Product ChoicesProduct Choices
Started with two conceptsStarted with two conceptsWeb-based shopping list with printable store Web-based shopping list with printable store
mapmapScience/engineering-based party service for Science/engineering-based party service for
kidskids
Broke into two teams, each researching Broke into two teams, each researching one ideaone ideaCreate simple prototypeCreate simple prototypeAnalyzed markets for eachAnalyzed markets for each
Web-based Shopping MapWeb-based Shopping Map
Concept was easy to prototype and expandConcept was easy to prototype and expand Figuring out target market was difficultFiguring out target market was difficult
Who pays for service (stores, consumer, coupons)?Who pays for service (stores, consumer, coupons)?
Difficult to determine profitability/student incomeDifficult to determine profitability/student income
Science/Engineering PartyScience/Engineering Party Product design more open-endedProduct design more open-ended Market research was more feasibleMarket research was more feasible
Half of team have kids near potential target market ageHalf of team have kids near potential target market age Easier to determine who pays (and who would want to Easier to determine who pays (and who would want to
pay)pay) Parent/kid value proposition easy to explainParent/kid value proposition easy to explain
Product SelectionProduct Selection
Engineering/Science party service Engineering/Science party service Target ages – 6 to 12Target ages – 6 to 12Number of participants – 6 to 14Number of participants – 6 to 14
The ProductThe Product
DescriptionRunning the Business
Market Test Feedback and ObservationsProduct Improvements and Market Expansion
Operational Improvements
Smartie PartySmartie Party™™
Educational entertainment party service for kidsEducational entertainment party service for kids
Children learn basic science and engineering Children learn basic science and engineering principles through interactive game challengesprinciples through interactive game challenges
Delivered and facilitated by energetic and Delivered and facilitated by energetic and friendly service repsfriendly service reps
No two parties are alike Client’s customize their service
Smartie PartySmartie Party™™ Challenges Challenges
Shake, Rattle, and BuildShake, Rattle, and Build™™Civil engineeringCivil engineering
Abe Lincoln’s Penny FloatersAbe Lincoln’s Penny Floaters™™BuoyancyBuoyancyWeight distributionWeight distribution
Running Smartie PartyRunning Smartie Party™™
Promotional Methods Internet website, Fliers, Brochures, ReferralsInternet website, Fliers, Brochures, Referrals
Product development Design all challengesDesign all challenges
ProductionProduction Material Purchase/KittingMaterial Purchase/Kitting
Sales managementSales management Consultation, appointments, etc.Consultation, appointments, etc.
Service delivery and hostingService delivery and hosting Human ResourcesHuman Resources
Recruitment and trainingRecruitment and training PayrollPayroll
Market Test Feedback and Market Test Feedback and ObservationsObservations
Customer FeedbackGood presentation of engineering conceptsKids enjoyed themselvesKids liked goodie bagsKids didn’t quite digest engineering principles
Team ObservationsSetup requirements not originally foreseenManaging kids' attention spans
Product Improvements Product Improvements and Market Expansionand Market Expansion
Enhance productEnhance product Include prizes, goodie bags (additional cost)Include prizes, goodie bags (additional cost) Add visual aidsAdd visual aids Design more challengesDesign more challenges Accommodate children with disabilitiesAccommodate children with disabilities Provide special challenges where kids can partner up Provide special challenges where kids can partner up
with parentswith parents
Expand target marketExpand target market Companies, organizationsCompanies, organizations Expand into other geographiesExpand into other geographies FranchisingFranchising
Operational ImprovementsOperational Improvements Online sales management system
Customize service online Book appointments online
Area customer service reps Saves cost on gas and travel time
Sales reps Interface with larger, more lucrative clients Earn commissions
Business ValueBusiness Value
Market Analysis
Market Research
Value Proposition
Financial Data
KidsKids
Upper-Mid or Higher IncomeUpper-Mid or Higher Income
San Diego North County (92127 Zipcode)San Diego North County (92127 Zipcode)
Country Country SquiresSquires
Kids & Cul Kids & Cul de sacsde sacs
Upward Upward BoundBound
Winner’s Winner’s CircleCircle
Market AnalysisMarket Analysis
Market ResearchMarket Research
Studied similar ventures found in online Studied similar ventures found in online searchessearches
Interviewed audience in target marketInterviewed audience in target market
Research at two children‘s birthday partiesResearch at two children‘s birthday parties
Developed high level service requirementsDeveloped high level service requirements
Educational, hands-on, creative entertainment
Safe
Hassle-free
Low cost
No two parties are alike
Smartie PartySmartie Party™™ Value Value PropositionProposition
Cumulative PaybackCumulative Payback
$150 is our sweet spot
1 Year ROI vs. Unit Cost1 Year ROI vs. Unit Cost
Recommended PricingRecommended PricingOur Price
Smartie PartySmartie Party™™ $150
Direct Competitors’ Prices
Mad ScienceMad Science™™ $195
Play Well Play Well TEKnologiesTEKnologies™™
$275
Indirect Competitors’ Prices
Color Me MineColor Me Mine™™ $280
Captain Cook’s Captain Cook’s Culinary Academy for KidsCulinary Academy for Kids™™
$390
Projected Operating Cash FlowProjected Operating Cash Flow
NPV Summary and AssumptionsNPV Summary and Assumptions
NPV Summary
Initial Outlay 5065
Operating Cash Flow
30262
Disbursement Proceeds
0
NPV 15197
IRR 51%
Year 1 ROI: 0.080
Assumptions
Sale Price 150 per unit
Bad Debt Expense Factor 1% of gross revenues
Purchases and Payments
Unit Cost 112.89 per unit
Rent 0 per month
General & Administrative 0 per month
Sales & Commission0% of total sales, paid month
following sale
General Assumptions
Capital Investment Required
5,065
Tax Rate 35%
Discount Rate 8%
Project ManagementProject Management
Actual vs. Planned Schedule
Actual vs. Planned Materials Cost
Project Challenges and Resolutions
High Level WBS
Planned vs. Actual SchedulePlanned vs. Actual Schedule
Milestone Target Deadline Actual Completion Date
Project Plan 4/14/09 4/14/09 Market Questions 4/14/09 4/17/09 Market Research 4/21/09 4/21/09 Requirements 4/21/09 4/21/09 Design/Game Development 4/28/09 4/30/09 Prototype 5/5/09 4/30/09 Test 5/12/09 5/8/09 Presentation Creation 5/19/09 5/19/09 Presentation Dry Run 5/19/09 5/19/09 Presentation 5/26/09 5/26/09
Detail Plan in MS ProjectDetail Plan in MS Project
Planned vs. Actual SchedulePlanned vs. Actual Schedule
Planned vs. Actual Materials CostPlanned vs. Actual Materials CostVendor Description Estimated Cost Actual Cost
Amazon Blocks 20.99 - Amazon Play-doh! Clay 12.44 -
Office DepotOffice Depot® Poster Boards, 22" x 28", White,
Pack Of 10 4.59 - Target White Rolling Die 1.00 - Home Depot Tape Measure 1.00 -
Office DepotOxford Color-Coded recycled Index Cards 4" X
6" Assorted Colors Pack of 100 1.99 - Michaels Craft sticks for bridge activity (1000 qty) - 4.34 Walmart Tin foil - 3.32 Walmart Timer/stopwatch - 4.97 Walmart Bins for water (2x6.50) - 13.00
Dollar StoreTrays to support building blocks
Bowls to hold blocks - 4.39 Kmart Jenga sets x 2 - 26.08 Home Depot Measuring Tape - 1.08 Party City Prizes/Goodie Bags - 26.23 World Market Prizes/Goodie Bags - 6.36 CVS Name tags - 2.16 Michaels Stickers (to ID groups) - 1.16
Pennies - 5.05 Tax (for itemized costs) - 1.86
Total 42.01 100.00
Project Challenges and ResolutionsProject Challenges and Resolutions
Interpersonal CommunicationInterpersonal Communication WikiSpace (challenge and benefit)WikiSpace (challenge and benefit) Product vs. ProcessProduct vs. Process Task ownershipTask ownership Class project assignment unclearClass project assignment unclear Balancing family, work, and LAMPBalancing family, work, and LAMP Market test logisticsMarket test logistics Inconvenient assignment due dates Inconvenient assignment due dates Keeping Bruce happy Keeping Bruce happy
Personal TakeawaysPersonal Takeaways
Lessons Learned
Leadership and Management Principles Applied
Topics of Interest
Lessons LearnedLessons Learned ““When asked to build a prototype, remind yourself that it is When asked to build a prototype, remind yourself that it is justjust a a
prototype.”prototype.” – Lorelyn – Lorelyn
““Sometimes it’s good to just let some things go and trust others to do a good Sometimes it’s good to just let some things go and trust others to do a good job.”job.” – Bruce – Bruce
““Encouragement and appreciation are a must to help foster a team Encouragement and appreciation are a must to help foster a team environment.”environment.” – Sabina – Sabina
““Assign roles and responsibilities up front to help streamline projects.”Assign roles and responsibilities up front to help streamline projects.” – – DontayDontay
““Patience is a virtue. Take the time to understand who you work with.”Patience is a virtue. Take the time to understand who you work with.” – – CarlCarl
““Nothing works like a demonstration.”Nothing works like a demonstration.” – Daud – Daud
Leadership and Management Leadership and Management Principles AppliedPrinciples Applied
New Product Development – New Product Development – IDEO Deep DiveIDEO Deep Dive
Financial SuccessFinancial SuccessProject ManagementProject ManagementDISC Management StylesDISC Management StylesPerformance ManagementPerformance ManagementMarket Positioning and TargetingMarket Positioning and TargetingEffective PresentationsEffective Presentations
Topics of InterestsTopics of Interests
For Continued and Future DevelopmentFor Continued and Future Development
Effective communication Effective communication Conflict ResolutionConflict ResolutionCoaching and MentoringCoaching and MentoringTeam and Cross Functional CollaborationTeam and Cross Functional CollaborationServant LeadershipServant LeadershipAgile and LEAN principlesAgile and LEAN principles
Video ClipVideo Clip
Questions?Questions?
www.lampproject2009.wikispaces.com
Backup SlidesBackup Slides
http://lampproject2009.wikispaces.com/
• Kept all of our project information and documents
• Alerted us all of changes
• Easily edited
LAMP Project WikiLAMP Project Wiki
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