Entrepreneurship final

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Entrepreneurship final

  1. 1. The Opportunity
  2. 2. The Opportunity  Demand in the consumer market is growing.  Most of the operators are small.  Consumer demands are getting diversified.  Internet is penetrating into seniors.
  3. 3. Funeral consumer market (Japan) Total sales of 2,190 operators (Stable demand in the market) -> 1,304 billion yen -> 0.9% up vs. 2008 1160 1310 Sales of Funeral Industry 1140 1300 (Billion yen) 1120 1290 Number of Death (1,000 people) 1100 1280 1080 1270 1060 1260 1040 1250 1020 1240 1000 2007 2008 2007 2009 (Source: TEIKOKU Data Bank) 2008 2009 Going up to 1.66 million in 2060 (Expected) 4
  4. 4. Funeral operators(1/2) (Most of the operators are small ) Number of Employees The share of 16 large companies is only 0.7% 1-9 10 - 49 50 - 99 32.6 % 100 - 299 59.7 % 300 - 59.7% of operators are small companies which has less than 10 employees 5
  5. 5. Funeral operators(2/2) (2 major groups & new operators) Operators dealing with funeral only Price is high New operators offering the package price Price is low Operators dealing with both wedding and funeral Price is high 6
  6. 6. Consumer needs segmentation / target Target of “Specialist Operator & Ceremony Organizer” I don’t prepare Leave all to you Make it simple Customized Standard Express myself in my own funeral Our Target! Target of “New Operator” Don’t want to bother families Prepare by myself Target of “Specialist Operator & Ceremony Organizer” 7
  7. 7. Internet Use among Seniors (Japan) Demographics: 8,393 aged over sixties Demographics: 1,064 aged over sixties Demographics: 1,064 aged over sixties Source: http://whatjapanthinks.com/tag/senior 8
  8. 8. Our Products / Services Strategy Business Model
  9. 9. Our Products / Services  Offering online one-stop-shop services & contents as a free SNS platform supplier  Can provide integrated services by connecting and collaborating with small funeral operators  Can get revenue from funeral operators and advertisement as a margin simplified funeral Integrated! Inbound marketing! Aged Japanese and their families Customize as we like Small funeral operators Advertisement suppliers SNS platform 10
  10. 10. SWOT analysis Strengths 1. First mover 2. Platform business 3. Low cost operator 1. Aging society Opportunities 2. Diversified customer needs 3. Penetration of SNS 4. Increase of small funeral operators share 1. Still no customers 2. No much knowledge on funeral business 3. Small capital 1. Easier launch for popular SNSs to this market 2. Low IT literacy of small funeral operators Weaknesses Threats 11
  11. 11. Strategy COSY Family bulletin Memory board board SNS platform Customized planning Evaluation of service funeral operators Free for end users Cost advertisers and funeral operators Product Price Place Promo tion Concept Low cost first mover SNS with rapid growth On the internet so that we can connect with the other SNS platforms Viral marketing through SNS communities 12
  12. 12. Business Model Key Partners Key Activities • Acquire new customers • Funeral operators & suppliers • Nursing/ aged homes, hospices & day-care • Community centers, Ward offices & NGOs • Maintain site & develop contents Value Propositions • Offers online One-Stop-Shop services & contents • Platform • Facilitates referral process between users & operators • Site’s manager & staff • Provides online advertising space Key Resources Cost Structure • Staff salaries • System maintenance & software depreciation • Advertising & promotions Customer Relationships • Self-service • Single/ multiple transactions Channels • The Internet • Step-down care centers Customers • Aged Japanese preparing for endof-life event • Funeral operators & suppliers • Advertisers • Ward offices Revenue Streams • Referral fees • Advertising fees • Office & infrastructure lease; legal & professional fees 13
  13. 13. Management Team
  14. 14. Management Team Jun Iwata, Advisor Jun is currently the Training Manager of Swarovski. His specialty is in customer service, store operations, and staff development with over 18 years of experience in the retail business. Jun started his career as Assistant Buyer at the Isetan Department Store and as Store Manager at Uniqlo Japan. He then served as Operations Manager at Uniqlo UK and USA. He majored in International Law at the Sophia University in Tokyo, Japan, as well as Political Science at the Santa Clara University in CA, USA. He is currently a candidate for the degree of MBA at the University of Tsukuba, Japan. Shigeyuki Matsuo, Business Operations Before joining COSY, Matsuo was the Head of Project Management Office in Fuji Fire & Marine, a member company of AIG and led several strategic projects, including flagship product developments and distribution channel transformation. Before he joined AIG, he has more than 10 years experience in operational improvement and project management in consulting firms. He is currently pursuing MBA in the University of Tsukuba, Japan and holds a bachelor’s degree in Economics from the University of Tokyo. 15
  15. 15. Management Team Goshi Fujimoto, Technology & Product Development Goshi’s major is in marketing research and software programming for the prediction of customer growth and the optimization for system development. He started his business experience as a researcher in a energy supply company. He has been a member of several taskforces for government project as a representative of marketing research. He is currently pursuing MBA in the University of Tsukuba, Japan and holds a master’s degree in Science from the Hokkaido University. Pauline Tan, Business & Marketing Pauline’s major flair is in her good eye for details, people management abilities and excellent execution of strategic plans. She has business experience as the Head of Programmes - a business unit of an established international NGO and social enterprise, and Operations Manager of a mid-sized franchising enterprise. A Singaporean native, she is currently pursuing MBA in the University of Tsukuba, Japan and holds a bachelor’s degree in Social Work from the Singapore Institute of Management, as well as an Engineering Diploma from the Ngee Ann Polytechnic. 16
  16. 16. Marketing plan Operating plan Schedule Financial plan
  17. 17. Marketing Plan Goal KPI Increase Online Presence Generate Leads Establish Brand Establish Network Build strong internet presence (No. of unique visits, page views) Focus on generating leads (Online lead forms, sign-ups for e-mail promotions & enquiries) Win new visitors & establish reputation (Awareness, content co-creation) Focus on establishing partnerships (Service providers, advertising subscribers) Build strong source of unique visitors Objective Identify & expand source of generating leads Build awareness of potential visitors & online community Track and generate traffic through SEO (unique visitors per day, average site time per use) Content Marketing through Blogging, Social Media Build strong network of service providers & source of advertising subscribers Inbound Marketing on Web 2.0 Target 100 visits per day (up to first 6 months) Conversion rate: 1% of traffic (leads to sales) 90-100 leads in a month (after first 6 months) A channel for expertise insights through content cocreation on health/ wealth/ end-of life (online campaigns & webinars) Recruit participating funeral operators; advertisers; supporting community partners (face-to-face) Quarterly events 10% new leads per quarter 5-10 operatorpartners (takes 6-8 months) 18
  18. 18. Operating Plan ■Contents Development enhanced by “Feedback Loop” Characteristic Funeral Operators / Funeral Goods Providers Site Visitors Interview Provide characteristic contents Examples Consult about new funerals COSY User’s real feeling ■System Development / Maintenance is outsourced to India.
  19. 19. Schedule Launch 2013 1st 2nd 2014 1st 2nd 2015 1st 2nd Site Development Contents Development Hiring Advertising Partnering nursing home Sales to funeral operators 20
  20. 20. Financial Plan(1/3) –Non financial Revenue DriverUnique Users Page Views Thousand Thousand 600 6000 5130 500 5000 400 4000 300 3000 2866 513 2000 200 1602 287 100 1000 160 50 500 89 0 0 2013 895 2014 2015 2016 2017 2013 2014 2015 2016 2017 21
  21. 21. Financial Plan(2/3) – Revenue, MarginRevenue by segment Ad revenue Mil Revenue / Margin Referal revenue Revenue Margin Mil 300 450 256 410 400 250 350 300 200 154 143 150 229 250 186 200 100 150 86 40 50 5 15 117 88 100 48 27 50 9 20 -13 36 3 -17 0 0 2013 2014 2015 2016 2017 -50 2013 2014 2015 2016 2017 22
  22. 22. Financial Plan(3/3) – Free Cash Flow Free Cash Flow Mil 150 133 92 100 50 6 0 2013 -16 2014 2015 2016 2017 -50 -60 -100 23
  23. 23. APPENDICIES
  24. 24. Population Growth (Japan) 25
  25. 25. Consumption of Seniors (Japan) Medical and health related Traveling Children and grandchildren Housing related Ceremonial functions Entertainment expenses, such as friend Consumer elec & Elec appliance Automotive related Self Enlightenment and Study Clothes Furniture Telecommunication and internet Others 26
  26. 26. Pro Forma Profit and Loss [thousand JPY] 2013 Revenues: Advertising Referral Total Revenue Expenses: Personnel Advertising System maintenance Software depreciation Office & infrastructure lease legal & professional fees Interest Total Expense Margin 2014 2015 2016 2017 5,000 15,000 20,000 8,949 26,846 35,795 40,039 48,047 88,086 143,318 85,991 229,309 256,500 153,900 410,400 16,000 600 1,000 2,000 1,500 500 16,000 1,200 1,000 2,000 1,500 500 21,600 22,200 64,000 4,200 2,000 4,000 4,000 1,500 3,200 82,900 64,000 12,000 2,000 4,000 4,000 1,500 3,200 90,700 160,000 24,000 2,000 4,000 8,000 1,500 3,200 202,700 -1,600 13,595 5,186 138,609 207,700 27
  27. 27. Assumptions of financial plans  The Baby Boom Generation will continue the trend of demanding more personalized funerals, and the target is 10% of the internet users of the generation.  The possible competitors such as SNS player and existing funeral operators will offer similar SNS platform as they see our success, but by then we will have positioned ourselves as the market leader and our market share in year 5 will be 30% of the targeted users.  In year 3, we will expand our operation. We will invest 80 mil yen in system expansion backed by commercial bank loan, and increase the number of personnel to 8, 8, 20 in year 3, 4, 5, respectively. 28

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