Problem – 450 students, mostly in rural, SW Kenya near boarder with Tanzania. Toni lived in a rural village, w/ daniel, 8th grade student.
Solution: 52 people filled out the survey – more than 52 responses because individuals have access to multiple technologies Type of Respondent %Administrator510%Parent2140%Student1937%Teacher713%TOTAL 52100%Gender %Male2956%Female2344%TOTAL 52100%
Problem - >100 parents in Nyanza, mostly mini-interviews, common response: “I can’t afford the books my kids need” yet paying for preps and test papers. Solution: launch of beta, immediately had 30 parents (25% of attendees) register for the program before the initial quizzes are ready, common comments “will I be able to afford it?”
Problem – DR story. Teachers resigned Solution – 50 -75 at a teachers conference in Mombassa. Early vision for the product from Toni – formative assessments, teachers have really responded to this, comments like “I love the way it explains to individual students, I wish I had time to do that” or “I want to use this to assess my students.” – want better data, more individualized the better.
How many students to breakeven? Fixed: ~20k/ month / $0.03 (margin/ quiz) = 670k quizzes / (450/11) = 16,341 users (~9% of total market).
CAC assumes some scale - roughly 100k usersLTV assumes 5 years of engagement with @ ~$60 per year
Just top line 30+ billion worldwide and >400m students and Apex – launching targeting 7th-8th graders in Kenya ~140 M (1.75m*.17*450 - or 105m= 1.75m *60 ($/fam)
Student adoption a function of learning effectiveness and usage.Shortening the learning cycle: two assessment schools – we pay for mock exams on a regular basis in order to assess learning impact sooner and iterate on product.Looking forward to more experimentation, particularly around user adoption and sales cycle – what do we need for a successful sale – learning metrics
Just the key features – what’s the real value we’ll deliver to customers and how (lead right into biz model) [hide?]
Transcript of "Bmc m prep feb 2012"
Quality Mobile Education Brian Busch • Aspiring entrepreneur for BOP, 4+ years in microfinance, MBA • 3+ years with fund manager in Costa Rica, invested in 18 MFIs, launched 2 risk management TA programs, co-authored 2 papers, co-chair GSVC Toni Maraviglia • Impassioned educator, 5+ years working in education (1.5 years in Kenya) • Teach for America – Harlem, charter school teacher, MS Edu, launched WISERBridge for 8th grade students in Kenya – 30+ schools, 100+ teachers
What Does a Failing Education System Look Like?100% 8th Graders20% Graduate Graduates Earn 45% Enroll of Girls 10% 3-5x Subsistence Farmer Exit ExamPoverty Cycle Slum Laborer For students and their families, this means: Anxiety, Disappointment, and Wasted Resources
90% of Kenyans have access to cell phones. Opportunity.
Evolution of MPrep: Kids will have better Validated: shops rarely 30+ Schools,access to study tools via carry review books and 450 8th grade students phones internet access is limited
Survey Results50 Respondent % Admin 5 10%45 Parent 21 40%40 Student 19 37% Teacher 7 13%35 TOTAL 52 100%30 Gender %25 Male 29 56%20 Female 23 44% TOTAL 52 100%1510 5 0 SMS Mobile Tablet Computer None Broadband
Evolution of MPrep: ✔ Kids will have better 30+ Validated: shops rarelyaccess to study tools via Schools, 450 carry review books and phones 8th grade students internet access is limited
Evolution of MPrep: ✔ Kids will have better 30+ Validated: shops rarelyaccess to study tools via Schools, 450 carry review books and phones 8th grade students internet access is limited Lesson Learned: Offer Students need a 100+ Parents: Families prices in sync withcomprehensive review can’t afford the upfront family income ups & program cost of review books downs
Evolution of MPrep: ✔ Kids will have better 30+ Validated: shops rarelyaccess to study tools via Schools, 450 carry review books and phones 8th grade students internet access is limited Lesson Learned: Offer Students need a 100+ Parents: Families prices in sync withcomprehensive review can’t afford the upfront family income ups & program cost of review books downs Teachers fear cell 55 Teachers: Want to Lesson Learned: Offerphones – distraction to engage students individual data – lower students individually cus. acquisition cost
Business Model Initial Expenses Customers: SMS Interface: $20K • Individuals - Curriculum: $2K/ grade $0.17/ quiz • Avg 300 – 600 Operating Costs quizzes/ yr SMS Cost: $0.15/quiz • Prvt Schools – full program Mngt/ Staff: $10k/mth ~$50/ studentProduct: Platform: $5k/mth• SMS Study Program Demand Creation: $3k/mthResources:•Curriculum•Delivery Additional Revenue Streams: Platform•Student Data Student Performance Data•Relationships Ad Revenue
Sales Ecosystem: Take Daniel, Toni’s Kenyan brother. He wants to run a computer shop. He knows he needs to finish high school… Deciders Influencers Daniel’s Teacher wants better Daniel wants an easier, exciting data about individual way to study that gives him students, in real time, without individual feedback extra work Daniel’s Parents want an Daniel’s Headmaster wants more affordable, effective study tool of his students to go on to high that Daniel will actually use school Sale Daniel’s Friends want to knowCust. Acquisition Cost: $130 how they stack up against himCust. Lifetime Value: $300
The Market OpportunityAssume: average usage 450 quizzes / yr @ $0.17/ quiz > 400mm students grades 7 – 12 worldwide TAM: $32B ≈ 100mm students grades 7-8 East Africa, India, China SAM: $8B ≈ 10mm students grades 7-8 Target: $.8B East Africa Apex: 1.75 mm students grades 7-8 in $130M Kenya
High Go To Market Plan: Risks1. Pilot: Jan – June 2012 1. Student Adoption • Beta test at 16 schools • What do we do to achieve 40% • Goals: 40% penetration and penetration w/ good contacts at customer feedback schools?2. Full Kenya Launch: 2. Viral growth • Goals: add product • How to grow when less involved? features, brand recognition, decreased SMS costs 3. Bring SMS Costs Down3. East Africa, India, Brazil: 4. Local Lang. & Curriculum • Goals: launch 5–9 new countries • How quickly can we adapt the by 2016 program to other contexts? Low
The Solution: MPrep MPrep costs less than books, is easier to access, and engages teachers. P.S. It’s way more fun to use.Student Initiates MPrep sends an Local Standing Receives quiz: explanation for Pays w/ airtime 5 questions. Data to Teachers each response• Customized Study Program aligned with national curriculum• Easy to Access – any time, anywhere• Engages Students – constant feedback, local standings• Individualized Results and feedback to teachers
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