Day 4 presentations columbia apr 2012

Columbia B7739-002Advanced EntrepreneurshipApril 19, 2012Steve BlankBob Dorf

Welcome to Day 4!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● We have our reception 5-6pm today (Thursday) please wear your name tags. This will be a good opportunity to meet your fellow classmates and the professors over a drink Each team will have 5 minutes to present and 3 minutes for Q&AOrder of Presentations1. Kadak (Tea Lab) 7. Diagnosly2. Pulze 8. Social Crowd3. Digital Exchange Network 9. Mobile Marketing4. TVM Technologies 10. YSN5. Jiae 11. Bakamba6. Table Compass (FidelEat) 12. Factabase 13. eFood

Authentic Asia Tea T4UTotal Interviews: (10 in person, 179 cumulative total)Adeem Fenster Stella Chan Richard JamesShashi Shrimali Sanjay Bharadwaj Neeraj Lal

Tea Lab – 04/18/2012 Who are our Key What Key Activities do we Partners? require? How will we Get, Keep Which of our customer’s and Grow Customers?• Indian stores and Asian • Purchasing raw material problems are we helping • Unique, customized tea, stores • Brewing tea to solve? their way Who are our most• Eventually tea makers • Setting up retail outlets • Consistent quality important customers?• Indirect distribution • Advertising, & marketing • consumer don’t have access • Increase product variety through -- subway, • Setting up customer feedback to quality tea outside the • TEA I.D. • repeat customers panda express channel and analysis home • word-of-mouth from • health conscious • Business development with • Formula/proportions are off students (campuses) customers campuses Who are our key • Tea tasting event to collect • Customers looking for a • Product mix creation suppliers? • FP&A management Which customer needs customer feedback (via fun new experience are we satisfying? iPad) • Hiring• Indian store from NJ What are their• Chinese stores from • Tea the “way I like it” outside archetypes? Chinatown the home• Grocery stores such as • Tea w/out tea bags • The rising teen Wal-mart • Cool experience / social • Healthy parents• Restaurant setting for tea • Undergrads What Key Resources we utensils/hardware require? Through which Channels suppliers What are the Key do our Customer What Job do they want Features of our product Segments us to get done for them? • Money What are we getting that match customers want to be reached? • Retail outlets from them? Giving problem/need? • Custom tea their way! • POS system to track sales them? • Tea lab stores • Fun/unique ingredients • SAP system for accounting • Taste of our tea (quality) • make the tea (incl. picking • direct-to-home delivery • License from NY / Campus • The availability of tailored the best ingredients)• Milk, sugar, Splenda, tea • Online approval flavor • education of tea leaves, cups, spices, • HR for hiring & training • Speed of delivery • cool place to hang out pots/pans • Tea brewing equipment • Convenience• MONEY, more revenue • Experience What are the most important costs inherent in our business model? How do we make money? What’s the revenue model? PricingFixed tactics?• Rent• Equipment, furniture and fixtures • Online sales for home consumption Variable • Data – based on the TEA ID card!• Raw materials & supplies • Keep the price close to Starbucks thereafter• Employee salaries • Never price below breakeven even during promotion period • Find ways to give them discounts (survey --- buzz discounts)

Tea Lab – 04/19/2012 What Key Activities do we Who are our Key require? Partners? Which of our customer’s How will we Get, Keep• Indian stores and Asian  Purchasing raw material problems are we helping and Grow Customers? stores  BRAND – Tea Lab to solve? • Unique, customized tea, Who are our most• Eventually tea makers  Brewing tea their way important customers?• Indirect distribution  Setting up retail outlets  consumer don’t have access • Consistent quality  Advertising, & marketing • Increase product variety through – franchises in to quality tea outside the  repeat customers  Setting up customer feedback home • TEA I.D. airports, hotels? subway,  health conscious channel and analysis  Formula/proportions are off • word-of-mouth from panda express customers • Business development with students (campuses)  Customers looking for a campuses • Tea tasting event to collect Who are our key • Product mix creation Which customer needs customer feedback (via fun new experience suppliers? • FP&A management are we satisfying? iPad)• Indian store from NJ • Hiring What are their• Chinese stores from  Tea the “way I like it” outside archetypes? Chinatown the home  Tea w/out tea bags  The rising teen• Grocery stores such as  Cool experience / social  Healthy parents Wal-mart setting for tea  Undergrads Tea merchants Kiosk manufacturers What Key Resources we require? What are the Key Through which Channels What Job do they want Restaurant utensils/hardware Features of our product do our Customer us to get done for them? suppliers • Money that match customers Segments • Retail outlets problem/need? want to be reached?  Custom tea their way! What are we getting • POS system to track sales  Fun/unique ingredients • Tea lab stores Tea lab kiosks from them? Giving • SAP system for accounting  Taste of our tea (quality)  make the tea (incl. picking them?  The availability of tailored • direct-to-home delivery the best ingredients) • License from NY / Campus Milk, sugar, Splenda, tea flavor • Online  education of tea approval leaves, cups, spices  Speed of delivery  cool place to hang out • HR for hiring & training  Convenience MONEY, more revenue • Tea brewing equipment  Experience What are the most important costs inherent in our How do we make money? What’s the revenue model? Pricing business model?Fixed tactics? Rent Equipment, furniture and fixtures • Online sales for home consumptionVariable • Data – based on the TEA ID card! Raw materials & supplies • Keep the price close to Starbucks thereafter Employee salaries • Never price below breakeven even during promotion period • Find ways to give them discounts (survey --- buzz discounts)

Takeaways Tea café Kiosks• High-end tea café in NY city => set for •Low fixed costs/rentfailure • High foot traffic•Key costs: Rent, Utility, Salary, andingredients… •Customized Kiosks available at $20K- $40K•Market for both hot and cold tea • High visibility => low marketing costs• Flagship store => for branding• Way to make money => go outsideNew York City• Sell your products via partners• No brand => no partnering withrestaurant

MVP Cups Indian Tea Chinese Tea English Tea Herbs & Spices SweetenersEntry Pick a herb Pick a Pick a cup Pick a tea sweetener Boil your tea Pay money Store your TeaId Exit Enjoy your tea and come back

Business HypothesisHypothesis Tests Results Retail cafe channel is profitable. Breakeven Analysis Retail kiosks channel is profitable. Breakeven Analysis √

Breakeven Analysis "Middle Am erica" "Middle Am erica" Manhattan Store Store KioskContribution m argin per cupSales $4.00 $3.00 $3.00Direct costs $0.28 $0.28 $0.28 $3.72 $2.72 $2.72Fixed Costs Per Month $60,100.00 $34,500.00 $11,500.00BEP (CUPS PER MONTH) 16,153.94 12,681.70 4,227.23BEP (CUPS PER DAY) 538.46 422.72 140.91 Solution => Go for Kiosks

Marketing“Tea Pots” in the mall (i.e. bud light girls)•Facebook Group•Tea samples•Location (high traffic zones,near an apple store)•Flash mob

Plan for today Test ourKiosks ideas • Interview with the customers customers Test our • InterviewKiosks ideas with key Shopping Mall partners property managers

Kadak – 04/16/2012 What Key Activities do we Who are our Key require? Partners? How will we Get, Keep • Purchasing raw material• Indian stores and Asian • Brewing tea and Grow Customers? stores • Setting up retail outlets Which of our customer’s • Consistent quality • Increase product variety• Eventually tea makers • Advertising, & marketing problems are we helping • • loyalty program tea card• Indirect distribution Setting up customer feedback to solve? • word-of-mouth from students Who are our most through -- subway, panda channel and analysis • consumer have limited access • Business development with (campuses) important customers? express to authentic Asian tea in a • Tea cart promotion via • repeat customers, Asian- campuses • Product mix creation retail format Facebook or Tweeter immigrants consumers Who are our key • FP&A management • Tea tasting event to collect • health conscious customers suppliers? • Hiring customer feedback (via iPad)• Indian store from NJ Which customer needs What are their• Chinese stores from are we satisfying? archetypes? Chinatown • Desire to consume authentic • The Indian• Grocery stores such as Asian tea outside home • The rising teen Wal-mart • Healthy parents• Restaurant • Undergrads utensils/hardware What Key Resources we What are the Key Through which Channels • Baby-boomers suppliers require? Features of our product do our Customer • Money that match customers Segments What Job do they want What are we getting • Retail outlets from them? Giving problem/need? want to be reached? us to get done for them? • POS system to track sales • • make the tea (incl. picking them? taste of our tea (quality) • direct retail • SAP system for accounting • the availability of tailored• Milk, sugar, Splenda, tea • direct-to-home the best ingredients) • License from NY / Campus flavor • education of tea leaves, cups, spices, approval delivery pots/pans • speed of delivery • HR for hiring & training • convenience• MONEY, more revenue • Tea brewing equipment What are the most important costs inherent in our business model?Fixed How do we make money? What’s the revenue model? Pricing• Rent tactics?• Equipment, furniture and fixtures • Low Intro promotion price to attract customers($1.99) Variable • Keep the price close to Starbucks thereafter• Raw materials & supplies • Never price below breakeven even during promotion period• Employee salaries • Find ways to give them discounts (survey --- buzz discounts)

Kadak – 04/17/2012 (morning) What Key Activities do we Who are our Key require? Partners? How will we Get, Keep • Purchasing raw material• Indian stores and Asian and Grow Customers? • Brewing tea Which of our customer’s stores • Setting up retail outlets problems are we helping • Consistent quality Who are our most• Eventually tea makers • Advertising, & marketing • Increase product variety important customers? to solve? • loyalty program tea card• Indirect distribution • Setting up customer feedback • consumer have limited  repeat customers, channel and analysis • word-of-mouth from students through -- subway, panda access to authentic Asian (campuses) Asian-immigrants • Business development with express • Tea cart promotion via consumers campuses tea in a retail format Who are our key • • Product mix creation FP&A management Facebook or Tweeter • Tea tasting event to collect • health conscious suppliers? Which customer needs customer feedback (via iPad) customers • Hiring• Indian store from NJ are we satisfying?• Chinese stores from • X Desire to consume What are their Chinatown authentic Asian tea archetypes?• Grocery stores such as •  The Indian Wal-mart outside home • The rising teen• Restaurant What are the Key • Healthy parents utensils/hardware What Key Resources we Through which Channels suppliers Features of our product do our Customer •  Undergrads require? • Money that match customers Segments •  Baby-boomers What are we getting • Retail outlets problem/need? want to be reached? from them? Giving • POS system to track sales •  taste of our tea  direct retail/franchise What Job do they want them? • SAP system for accounting (quality) model us to get done for them?• Milk, sugar, Splenda, tea • License from NY / Campus •  the availability of • direct-to-home •  make the tea (incl. leaves, cups, spices, approval tailored flavor picking the best delivery pots/pans • HR for hiring & training • speed of delivery ingredients)• MONEY, more revenue • Tea brewing equipment • convenience •  education of tea What are the most important costs inherent in our business model?Fixed How do we make money? What’s the revenue model? Pricing• Rent tactics?• Equipment, furniture and fixtures • Low Intro promotion price to attract customers($1.99) Variable • Keep the price close to Starbucks thereafter• Raw materials & supplies • Never price below breakeven even during promotion period• Employee salaries • Find ways to give them discounts (survey --- buzz discounts)

Tea Lab – 04/17/2012 (afternoon) What Key Activities do we Who are our Key require? Partners? • How will we Get, Keep Purchasing raw material Which of our customer’s• Indian stores and Asian • Brewing tea and Grow Customers? problems are we helping • Unique, customized tea, their stores • Setting up retail outlets to solve? • way• Eventually tea makers Advertising, & marketing • consumer don’t have Who are our most • Setting up customer feedback • Consistent quality• Indirect distribution • Increase product variety important customers? channel and analysis access to quality tea through -- subway, panda • loyalty program TEA I.D. • repeat customers • Business development with outside the home express • word-of-mouth from students • health conscious customers campuses • Formula/proportions are • Customers looking for a fun • Product mix creation (campuses) Who are our key • FP&A management off • Tea tasting event to collect new experience suppliers? • Hiring customer feedback (via iPad)• Indian store from NJ Which customer needs What are their• Chinese stores from are we satisfying? archetypes? • The Indian Chinatown • Tea the “way I like it”• Grocery stores such as • The rising teen outside the home • Healthy parents Wal-mart • Tea w/out tea bags • Undergrads• Restaurant • • Cool experience / social Baby-boomers utensils/hardware What Key Resources we Through which Channels suppliers setting for tea do our Customer require? What Job do they want • Money Segments us to get done for them? What are we getting What are the Key want to be reached? • Retail outlets • Custom tea their way! from them? Giving Features of our product • Teal lab stores • POS system to track sales • Fun/unique ingredients them? that match customers • SAP system for accounting • direct-to-home • make the tea (incl. picking the• Milk, sugar, Splenda, tea problem/need? best ingredients) • License from NY / Campus • taste of our tea (quality) delivery leaves, cups, spices, • education of tea pots/pans approval • the availability of tailored flavor • Online • cool place to hang out • HR for hiring & training • speed of delivery• MONEY, more revenue • Tea brewing equipment • Convenience • Experience What are the most important costs inherent in our business model? How do we make money? What’s the revenue model? PricingFixed tactics?• Rent • Online sales for home consumption• Equipment, furniture and fixtures • Data – based on the TEA ID card! Variable • Keep the price close to Starbucks thereafter• Raw materials & supplies • Never price below breakeven even during promotion period• Employee salaries • Find ways to give them discounts (survey --- buzz discounts)

Your Organization’s PULZE Vladimir Baranov, Jitender Chopra, Riyaz Habibbhai, F. Lane Harwell, Daniello Natoli Interviews: 11 April 19th, 2012 PULZE ORGANIZE, ANALYZE, AND COMMUNICATEPULZE

Hypotheses and Initiatives Hypothesis  HR consultants are a potential sales channel Initiatives  Pricing Initiatives  24 / 7: Design pre-survey, Analyze post-surveyPULZE

Hypotheses: HR Consultants are a Potential Channel  HR Consulting firms have in house technology departments Findings  They see survey software as a way to sell consulting services  Would not partner – see Pulze as competition  Kenexa: (KNXA) Mkt. Cap.: $860MM  Taleo: purchased by ORCL for $1.9B, 2/9/12 Competitors  Hewitt (HEW); MMC (Mercer)  SAP: purchased SuccessFactors (SFSF) for $3.4B Exception  Possibly Leadership Consultants, given focusPULZE

Initiatives: Pricing and Update Value Prop  HR Consulting firms charge $5K - $15K for a survey targetting 300 – 500 users Pricing  SurveyMonkey works for random surveys – not good for employee engagement  Customers WTP between $1000 - $5000 per annum  Customers love the idea of DIY survey software with extensive templates Value Prop  Anonymity and Detailed Data Analysis is Key  Would prefer value added service to call HR specialists for pre-survey setup and post-survey analysis Additional Segment?  25 – 100 Employee company with the same needs as above Additional Channel?  Enterprise Social platforms Jive, YammerPULZE

Price and Value Position HR Consultancies ~$5,000 - $15, 000 PULZE (per survey) $500 - $3,500 PERCEIVED VALUE “Hand Holding” Data and “DIY” Data and Analysis Analysis Benchmarking Benchmarking Templates with response Templates validation Customization Customization Access to Domain Specific Access to Domain Specific Solutions Survey Solutions Legal and Regulatory Monkey Legal and Regulatory Checks Checks $500 per year Raw Data / Little ORGANIZE, ANALYZE, AND Analysis COMMUNICATE $ per Survey/AnalysisPULZE

Team Pulze R&D Key Account Partners Marketing and Manage management 500 <Software vendors the platform Bottom-Up Enterprises Semi customized < 2000 employee service based onEnterprise social Recruitment engagement needs platforms Lead gen Middle Provide employees Management of ownership in larger Suppliers business strategy corporations Cloud service Low cost solution Sales force Software to interim surveysData warehousing developers Website HR talent 3rd party analytics Research experts Variable Fixed Customer acq. One time Payroll service fee Talent acq. Subscription marketing service PULZE Sales

Team Pulze Bottom-Up R&D employee engagement Marketing and Manage Key Account Partners the platform Provide employees management ownership inSoftware vendors business strategy Semi- Manager of a Recruitment customizationEnterprise social company, division platforms Low cost solution or unit with 100- Lead gen to interim surveys SEO 3000 employees, Legal Counsel w/minimal HR Templates support Suppliers Analysis Cloud service Sales force SoftwareData warehousing developers Benchmarked Data Website HR talent 3rd party Gamification – to analytics increase particip HR Consultants Research experts US Legal Variable >Survey Monkey Fixed Customer acq. One time < Consultants Payroll service fee Talent acq. Subscription marketing service PULZE Sales Fee to HR

Team Pulze R&D Bottom-Up employee engagement Key Account Marketing and Manage management Partners the platform Provide employees ownership in business CustomizationSoftware vendors strategy Manager of a Linked-In Low cost solution company, division to employee or unit with 100- Legal Counsel SEO surveys 3000 employees, w/minimal HR Templates support Suppliers Analysis Software Benchmarked Data Enterprise social Cloud service Gamification platforms developers Ethical and Legal Social MediaData warehousing Website HR talent 24/7 Value Added 3rd party analytics Consultants for Research experts HR Consultants Pre/Post Survey Variable Fixed Customer acq. Number of Subscription Payroll Employees service Talent acq. $500 < N < $5K marketing $1 – 5K PULZE Sales Fee to HR

AppendixPULZE

Market Size Business Units 100-499 90,386 500-749 6,060 750-999 3,038 TAM: 151,490 1000-1499 3,044 1500-1999 1,533 2000-2499 904 2500+ 46,525 TAM 151,490 Source: US Census,2008 SAM: 136,384 SAM estimate was derived by using broadband business usage ratio. OECD TM: 34,085PULZE

DEN: DIGITAL EXCHANGE NETWORK The platform for exchanging high value favors and services. 22 INTERVIEWS WEDNESDAY 65 TOTAL OVER 3 DAYSDave Spezzano, Alexey Okhlopkov, Amy Villari, Steve Alperin, Dmitri Dyakin

what we learned yesterday hypothesis result comments PEOPLE ARE WILLING TO PAY CASH MAYBE High-value & WTP, FOR FAVORS maybe not cash PEOPLE ARE WILLING TO ACCEPT MAYBE Behavior change Compliance issues CASH FOR FAVORS PEOPLE ARE WILLING TO TRADE Low expectation of MAYBE quid pro quo FAVORS PEOPLE WANT TO USE ANOTHER Tested philanthropy MAYBE as exchange currency EXCHANGE CURRENCYTHERE IS A VALUE / BENEFIT TO THE FAVOR DOER CORRECT Need to test further

more learning hypothesis result comments PEOPLE RECEIVE/PERFORM FAVORS FOR DIRECT NETWORK CORRECT OFTEN CONTACTS DITTO FOR SECOND-DEGREE Most see this is CONTACTS CORRECT where the REAL benefit is WE CAN SCALE A NETWORK WITHOUT LOSING TRUST MAYBE Piggybacking existing networks like Linkedin WTP TO JOIN ONLINE NETWORK TO ACCESS VALUABLE CONTACTS CORRECT Obvious NEED/MARKET FOR FAVOR Huge market potential CORRECT in China, but may need NETWORK IN RUSSIA, CHINA proof of concept first

Key Learning: WHY WOULD SOMEONEUSE THIS SYSTEM TO DO FAVORS?• reduce time spent doing favors• prioritize response order and time to favor requesters / receivers• INCREASE LIKELIHOOD OF PAYBACKKey Learning: who pays for favors • Second-degree connections more than first- degree contacts

CANVAS 1.1 --People have trouble findingAlumni groups, People who need expert, reliable,Networking high quality Seeding the high verified information.groups, (build to information andsuit..potential level community, Tap communities services and have Software --People spendwhite label already trouble finding it. development, huge amounts ofsevice) transacting offline business time displaying or chaotically Business builders, development, expertise with noOutsourced salesmen, anyone tangible benefitengineering who has everteams, looked for a --A marketplace toWe get paid to connection once match buyers andincrease bonds removed from sellersbetween their closest circle --Simple easy waymembers ,make --Velvet rope, --Reduce the to aggregatecrucial offline Goodwill, friction to finding postings about leaky door policyactivity more Brand, User info, help me get expertise --Affinity groupsefficient. Allow Propagation value from what I --Scoring/rankingmonetization of do for others and for reliability.expertise. what I know. ? Scalable marketplace business. MVPengineering/hosting/design costs are fixed. --Free to join and use– then transaction fee,Feature set build are variable..build to spec listing fee, fee for top tier circles for partners?

CANVAS 1.2 CHANGES IN REDAlumni groups, -- HELP PEOPLENetworking EXCHANGE --PEOPLE WHOgroups, (build to Seeding the high ACCESS & NEED ACCESS &suit..potential level community, FAVORS THAT Tap communities FAVORS FORwhite label Software ARE IMPORTANT. already BUSINESS ORsevice) development, transacting offline PERSONAL USE business --Help people get or chaoticallyOutsourced development, more benefit from --PEOPLE WHOengineering their digital PROMOTEteams, marketing content THEIRWe get paid to BUSINESSincrease bonds --A marketplace to THROUGHbetween match buyers and CONTENTmembers ,make sellers --Velvet rope,crucial offline --Goodwill, --HELP PEOPLE --PEOPLE WHO leaky door policyactivity more --HIGH LEVEL BUILD TRUSTED WANT TO --Affinity groupsefficient. Allow ACCESS CONNECTIONS STENGTHENmonetization of ? TIES WITHexpertise. CONNECTIONS Scalable marketplace business. MVP --POINT SYSTEM TO EXCHANGE VALUE &engineering/hosting/design costs are fixed. GOODWILLFeature set build are variable..build to spec --Free to join and use– then transaction fee, for partners? listing fee, fee for top tier circles

CANVAS 1.3 CHANGES IN RED -Alumni groups, --IMPROVED WAYNetworking groups, TO BUILD TRUST(build to Seeding the high & VERIFICATIONsuit..potential white --PEOPLE WHO level community, Tap communities NEED ANDlabel sevice) --DISCOVERY & Software already PROVIDE ACCESS development, VALIDATION OF & FAVORS FOROutsourced transacting offline business 2nd DEGREE BUSINESS ORengineering teams, or chaoticallyWe get paid to development, CONNECTIONS PERSONAL USEincrease bondsbetween members --SAFE --PEOPLE WHO,make crucial offline PROMOTE THEIR ENVIROMENTactivity more BUSINESS FOR PERSONAL THROUGHefficient. Allowmonetization of EXCHANGE CONTENTexpertise.--LINKEDIN, --Goodwill, --HELP PEOPLE --Velvet rope, --PEOPLE WHOFACEBOOK, EXCHANGE leaky door policy WANT TO --HIGH LEVELOTHER STENGTHEN TIES ACCESS ACCESS & --Affinity groupsNETWORKS WITH --WELL CONNECTED FAVORS THAT(UNLESS WE CONNECTIONS PEOPLE ARE IMPORTANT.SCALEOURSELVES) ?--TIP JAR / PAY-WHAT-YOU-WANT --FEE FOR GIFTING AS THANK YOU Scalable marketplace business. MVP --POINT SYSTEM TO EXCHANGE GOODWILL FOR $$engineering/hosting/design costs are fixed. --PREMIUM ADVERTISING (MAYBE – HARD MODEL)Feature set build are variable..build to spec --transaction fee, listing fee, fee for top tier for partners? circles

WE NARROWED OUR ARCHETYPE

WHAT’S A FAVOR?…..• High value• Would require the receiver to go through extraneous effort to achieve without the doer• Allows access to otherwise inaccessible areas of life …..but how do we differentiate ourselves……? ELEGANT WAY TO SCORE AND RANK TRUST

ECOSYSTEM Favor request Favor1. Provider Favor user Favor Direct Favor2 Provider Link user Direct Link3 Favor Provider Favor user

TodayLAY A PRODUCT OVER OUR CUSTOMER NEEDS & ECOSYSTEM MORE DATA ON REVISED VALUE PROPISTIONS TEST POTENTIAL REVENUE MODELS

Technology for medical and comfort problems of the feet Advanced Entrepreneurship Day 4 April 19, 20126 additional interviews TeamTotal interviewed: Brian Vogt 42 end-users 3 brand managers Doug Carlson 1 channel expert Mohamed Maimouni 1 shoe manufacturer AG Crum 1 shoe startup founder 1 dermatologist Gabriel Giles X online survey responses Sameer Kotak

What Have We Learned? Hypothesis Experiment Results Problem is recognized; they have a Interviews Pending workaround People may have Unclear. Additional discomfort but won’t Interviews experiments required admit it (survey). Appealing product for Interviews Confirmed. Eyes lit up. tech lovers

Channel Analysis Channel Strategy License technology • License the technology to shoe brands to do all manufacturing themselves Unbranded component sales • Sell prebuilt soles with embedded components to shoe brands for assembly Branded component sales • Sell branded prebuilt soles with embedded components. Think “Vibram” soles in boots. Own brand of complete shoes • Create own brand, sell through online retailers

Channel Analysis Earn Others Switching Recurring Game Changing Before Do The Scaleability Protection Costs Revenue Cost Structure You Pay Work License ✔ ✔ ✔ technology Unbranded ✔ component sales Branded ✔ component sales Own brand of ✔ complete shoes

Channel Analysis Channel Strategy Conclusions License technology • Major brands unwilling to work with X technology directly X Unbranded component sales • Unit economics don’t work X Branded component sales • Unit economics don’t work ✔ Own brand sold through • Economically viable online retailers

Channel Analysis Growth Strategy Phase 1 – Create brand for the Active Seekers segment • Sell through medical supply companies • Value price to capture higher Willingness To Pay • Get commitments and funding on Kickstart from severe sufferers • Use this to work out manufacturing and operational kinks Phase 2 – Launch consumer branded shoe for General Comfort segment • Sell initially through Zappos • Leverage their logistics capabilities Phase 3 – Expand in the General Comfort segment • Other online retailers • Airport kiosks • Retail locations • Possible branded component sales Phase 4 – Expand to the Tech Lovers segment • Sell online • Sell through Sharper Image, Brookstone, etc.

Day 3 Canvas TVM Tech Get, keep, grow? Partners? •Mitigate End-users: PR, Shoe mfg, Activities? Active Seekers Customer input, hyperhidrosis branded captivity manufacturing (1) Sought med IP filings, beta •Low effort solution Partners: development, , Convince of Suppliers? unique value for suppliers Component end-users mfg.s, Ventiva •Foot comfort Passive •Discreteness Sufferers Getting? (2) UnSought med Technology, •Medical catalogs manufacturing Resources? •Referrals Giving? Development partner, seed •Cool factor ? Tech Lovers Differentiation and price funding •Foot comfort 3) Tech „comfort‟ Established partner retail outlets Making money & pricing model? Inherent in our model? $40 mfg‟ed, 80 soles, 200 shoes, 400 retail Variable material, mfg overhead 400 retail 250 retail

Day 4 Canvas TVM Tech Get, keep, grow? Partners? •Mitigate End-users: PR, Shoe mfg, Activities? Active Seekers Customer input, hyperhidrosis branded captivity manufacturing (1) Sought med IP filings, beta •Low effort solution Partners: development, , Convince of Suppliers? unique value for suppliers Component end-users mfg.s, Ventiva •Foot comfort General •Discreteness Comfort Getting? (2) UnSought med Technology, •Medical catalogs manufacturing Resources? •Referrals Giving? Development Online Retail, Differentiation partner, seed •Cool factor Kiosks Tech Lovers and price funding •Foot comfort 3) Tech „comfort‟ Established partner retail outlets Making money & pricing model? Inherent in our model? $40 mfg‟ed, 80 soles, 200 shoes, 400 retail Product development, variable costs, 400 retail online retail, kiosks, SG&A $250 retail

Jiae.com: Interest based platform for creative minds in China Team: Deymon Chen, Yu Guo(Hugh), Mathias Rosenthal, James Hagen 23 Interviews + ??? Surveys 2012.04.18 - Day 4 Do we have MVP website ??? Online When ???

Jiae.com: Interest based platform for creative minds in China Team: Deymon Chen, Yu Guo(Hugh), Mathias Rosenthal, James Hagen 23 Interviews + 410 Surveys 2012.04.18 - Day 4 Do we have MVP website Yes!!! Online When Few Hours Before!!!

MVP http://www.wix.com/matros9/jiae

Survey 1: Top Designer Social Site chinavisual.com douban.com diandian.com Tumblr clone ($10M funding) less than 5% zcool.com Top Design site (web 1.0) less than 33% weibo.com China Top SNS site less than 15% blueideas.com visualunion.com abbs.com.cn.com other sites Other Design sites less than 9%Proved: No Leader in Designer Social site, We have a Chance!

Survey 2: Top Features for Designer Social Site Imaged Based Top 3: Image Based 39.4% - Proved 1-Click Reblog Reblog only 9.1% - Surprised Rich and Fresh Content Top 2: Rich/Fresh Content 44% Proved Tailored Content Original Content Design Content Jobs and Projects Looking for Jobs and Projects is low, Surpris Portfolio Showcase Meet Designers Top 1: Expert Feedback 47% - Proved Tips and Resources Others

Business Hypothesis

Ecosystem

Day 3 Business Canvas for Jiae•Fashion Medias •Platform Management • Photo based nice and •1:1 Customer Support •Fashion Bloggers •Customer Acquisition clean SNS platform•Design School •Expanding Reach • More Traffic •D-School Ambassador •Designers•Government • Easy to Share•Design Associations • Statistics Tool •End Users Consumers•Online B2C Partners • Find, organized and Companies•Traffic Partners share inspiration Ideas • Advertising effectively • Find jobs/projects • Sponsorship • Showcase portfolios for • Design Services feedback， big Space • Click Per Sales •Platform •China Photo Related sites •Customer Base •China SNS Sites - weibo, •Brand renren, qq, douban • Target Ad Space • Find Good Designers • Promotion Opportunity •1300 Design Schools • Sales Channels •Design Message Boards • Design Marketplaces •Jiae.com Platform Costs Advertising, Sponsorships, Deign Services Customer Acquisition Costs Click Per Sales , Design Marketplace Marketing and Sales Costs Freemium Free Interest Based SNS Platform

Day 4 Business Canvas for Jiae•Fashion Medias •Platform Management • Image based nice and •1:1 Customer Support •Fashion Bloggers •Customer Acquisition clean SNS platform•Design School •Expanding Reach • More Traffic •D-School Ambassador •Designers•Government • Easy to Share•Design Associations • Statistics Tool •End Users Consumers•Online B2C Partners • Find, organized and share inspiration Ideas Companies•Traffic Partners effectively Rich/Fresh Content • Advertising • Find jobs/projects Image • Sponsorship Based Content • Design Services • Showcase portfolios for • Click Per Sales •Platform Expert Feedback big •China Photo Related sites •Customer Base Space •China SNS Sites - zcool, •Brand weibo, renren, qq, douban • Target Ad Space • Find Good Designers •1300 Design Schools • Promotion Opportunity •Design Message Boards • Sales Channels • Design Marketplaces •Jiae.com Platform Costs Advertising, Sponsorships, Deign Services Customer Acquisition Costs Click Per Sales , Design Marketplace Marketing and Sales Costs Freemium Free Interest Based SNS Platform

FidélEat Restaurant Reservation Loyalty 3 Restaurateur Interviews 20 Consumer Interviews 23 TotalSarah Brown William Cooke Dennis Kwon Robert Montrone Jaidev Rao Abhishek SheetalEMBA ‟12 EMBA ‟12 MBA ‟11 EMBA ‟12 EMBA ‟12 EMBA ‟12Consulting Strategy & Engineer / Tech Consultant / Management Tech Marketing /Neuberger Financial Entrepreneurship TV Producer Consulting StrategyBerman Planning Lala.com ABC Television Rothstein Kass LeCroy Corporation Blue Sky Solar

Table Compass Day Before (Pass, Fail, Unclear) Key Partners Key Activities . Revenue How will we Get, Keep • Medium-low end Restaurant owners • Platform design and and Grow Customers? restaurants development Management Retention plan: points • Medium-high end Key Suppliers • Business . Working capital system, Groupon, restaurants that take Possibly Open Table development, . Filling Seats promotional item, value reservations partnerships and add free meal, etc. What are we getting marketing from them? • Difficulty making Reservation Service reservations • Price Giving them? • End Customers: Restaurant traffic Discounted bookings, secured reservations, Archetypes? restaurant Through which People who plan comparisons Channels do our Price conscious • Discounted pricing Customer Segments Foodies Key Resources want to be reached? • Designers, Engineers • Restaurant discovery • Restaurants: face to • Business face meetings development, Sales • End Customers: Word • Money of mouth marketing, online, direct emailWhat are the most important costs inherent in ourbusiness model? Listing fees, percentage of restaurant fee, restaurant flatFixed Cost: Building the website fee, first year free, etc.Variable: Marketing, sales people, advertising

High End Restaurant Interviews ($100+plate)Hypothesis Test Results High end restaurants Restaurants have Survey 4 managers do not have empty empty seats seats Restaurants will give Survey 4 managers N/A out discounts Working Capital is an Survey 4 Managers N/A issue

Mid Range Restaurant Interviews ($40+ plate)Hypothesis Test Results Restaurants have Very concerned about Survey 9 managers empty seats empty seats Discount customers Restaurants will give Survey 9 managers visit only once to take out discounts advantage of the offer Yes restaurants are Working Capital is an very concerned about Survey 9 Managers issue WIP. Unhappy with Opentable

Diner InterviewsHypothesis Test Results People are willing to prepay for discount an Survey 52 people 75% are willing advanced reservationThe prepayment advance 17% indicated it wouldbooking discount does not Survey 52 people * 8% for under 35 yrs lower the value of the restaurant * 26% for over 35 yrs 30% discount will make people shift their Survey 52 people 75% said yes decisions around – time/day

Restaurant Interviews (mid-high end)Hypothesis Test ResultsFinding loyal customers is Place high value on Survey 21 restaurantsa problem for restaurants returning customersRestaurant owners want tobuild a relationship / know Looking for a system to Survey 21 restaurantsmore about their customers sync data with reservations (data) Restaurants unhappy withRestaurant owners willing “discount” customersto offer an expiring credit Survey 21 restaurants to loyal customers Willing to offer promotions to returning customers

Diner InterviewsHypothesis Test Results Users would go back to the same restaurant for Survey 20 People 100% are willing an expiring 20-30% loyalty discount Users eat out 2-3 times Survey 20 People 100% per weekUsers would not mind that 60% would prefer to have their credit Survey 20 People more time to use the expires credit

Pivot Declaration Pit of Despair

Table Compass Yesterday (Pass, Fail, Unclear) Key Partners Key Activities . Revenue How will we Get, Keep • Medium-low end Restaurant owners • Platform design and and Grow Customers? restaurants development Management Retention plan: points • Medium-high end Key Suppliers • Business . Working capital system, Groupon, restaurants that take Possibly Open Table development, . Filling Seats promotional item, value reservations partnerships and add free meal, etc. What are we getting marketing from them? Reservation Service Giving them? Restaurant traffic • Price Younger Trendy • Discounted bookings, Through which secured reservations, Channels do our restaurant Customer Segments Key Resources comparisons want to be reached? • Designers, Engineers • Discounted pricing • Restaurants: face to • Business • Restaurant discovery face meetings development, Sales • End Customers: Word • Money of mouth marketing, online, direct emailWhat are the most important costs inherent in ourbusiness model? Options: listing fees, percentage of restaurant fee,Fixed Cost: Building the website restaurant flat fee, first year free, etc.Variable: Marketing, sales people, advertising

FidélEat Today (Pass, Fail, Unclear)Key Partners • Platform designRestaurant owners and development - Revenue How will we Get, Keep - Medium-low end • Business Management and Grow Customers? restaurants - Working capital Retention plan: points - Medium-high endKey Suppliers development Filling Seats system, Groupon, restaurants that takePossibly Open Table • Partnerships and promotional item, value reservations marketing - Repeat Business add free meal, etc.What are we - Fill seats during Expiring Promotionalgetting from them? slow periods Credits (EPCs)Reservation ServiceGiving them? Price Younger Trendy Discounted bookings, Young familiesREPEAT Restaurant Through which secured reservations,traffic • Designers restaurant comparisons Channels do our Customer Segments • Engineers Discounted pricing want to be reached? • Business - Discount rewards • Restaurants: face to Development for loyalty face meetings • Sales - Promotional Credits • End Customers: Word • Money of mouth marketing, online, direct email, NY Times Monthly Subscription Fee, Monthly/QuarterlyWhat are the most important costs inherent in customer data serviceour business model?Fixed Cost: Building the website Options: listing fees, percentage of restaurant fee,Variable: Marketing, sales people, advertising restaurant flat fee, first year free, etc. Monthly Subscription Fee, Tiered subscriptions

Diagnose your healthfrom anywhere13 New (45 Total) Interviews Thomas Jonathan Melissa Nina Tim Vladimir Thursday – Day 4

Interviews 25 20 15 Wednesday 10 Tuesday Monday 5 0 Industry Patient Provider Payer Mfg Expert 65

Using an RMVP to Get $$$ Out of Wallet

DIAGNOSLY - Today Automated, Optional Consumers • Convenience of time 24x7 Support • Provider and place Families (primarily subsequent mothers) in engagement • Reduced cost for Automated, Optional the fertility • Device mfg uninsured or high SDK Support testing, pregnancy, and deductible plan early childhood phase relationships subscribers • R&D Indirect, trusted Device Makers• Diagnostic and supplier • Customer • Reduced cost and Small to medium makers monitoring of at-home monitors and support increased quality of diagnostic devices device OEMs software Payers Insurance, Medicare, Med• Insurance • Lower costs due to icaid reduced visits, less Providers networks • Engineers and fraud and General consistent, comprehe Practitioners, Midwives, N• Independent designers nsive data • Online urses, Office sales reps • Legal/Regulatory • Independent Manager, Specialists • Improved patient (Pediatricians, OB/GYNs, Knowledge sales reps vets etc) (IP, FDA, HIPPA, outcomes • Earn more money via • Physicians / Livestock Managers Cattle ranchers, horse etc) focus on higher value Clinics farmers procedures Drug Developers Big Pharma, Biotechs • Testing fees (per test/kit) • People (R&D) • Customer acquisition • Regulatory & Liability 67

DIAGNOSLY - Today • Provider Automated, Optional Consumers engagement • Convenience of time 24x7 Support Families (primarily • Device mfg and place subsequent mothers)• Diagnostic and relationships • Reduced cost for Automated, Optional in the pregnancy and uninsured or high SDK Support early childhood monitoring • R&D deductible plan phase + traveling device OEMs • Customer subscribers Corporate support families $$$• Insurance • Payer Approval • Reduced cost and Indirect, trusted Device Makers networks increased quality of supplier Small/med, at-home Process software monitors and diagnostic devices• Independent • Lower costs due to sales reps reduced visits, less • Physician / Clinics Payers Insurance, Medicare, • Engineers and fraud and • Online• Healthcare consistent, comprehe Medicaid designers nsive data Professional • Independent Sales Providers • Legal/Regulatory Reps Staffed Remote • Improved patient General Knowledge Centers outcomes Practitioners, Midwiv (IP, FDA, HIPPA, es, Nurses, Office • Earn more money via etc) focus on higher value Manager, Specialists procedures (Pediatricians, OB/G YNs, vets etc) • People (R&D) • Regulatory & Liability • Testing fees (per test/kit) • Customer acquisition • 15% Commission • Testing fees (per test/kit) • Free Beyond Provider Acquisition • Subscription • Pay Per Click 68

Diagnosly Ecosystem Patient Data Captured: • Raw data from blood, urine, saliva samples Medical Devices (OEMs) • Raw data from sensors • Symptom descriptions and pictures Pharmacy • Demographic data • Location • Health History Remote MD/Nurseline Patients Payers DIAGNOSLY PLATFORM Laboratory Testing Services (3rd Party) Primary Cloud & DataPhysicians Services • Analysis of raw diagnostic data Phone, Tablet, and • Illness and disease detection Web Applications • DNA analysis • Risk assessmentResearchers Admin & Reporting Dashboard: • Monitoring and diagnostic history • Aggregated lab results Online Health Services (3rd Party) • Alerts and reminders • Electronic Health Records (EHR) • Advanced data analytics • Health Service Provider Network • Analysis of treatment efficacy • Billing and Insurance • Personalized health content and • Appointment scheduling service recommendations • Pharmacy • Virtual appointmentsCONFIDENTIAL 69

Interviews SAYING NEW INSIGHTS• Would like to have a service to generate • Need a partnership with a 3rd party the script because they could check it healthcare specialist call center with the pharmacist • Premature babies is $62B annual• I love using technology to better expense in the US (500k / baby), one organize our life and I would absolutely opportunity may be monitoring at risk pay to use an application that tracked mothers to reduce occurrence our kids test records, etc. DOING CONCLUSIONS• None of the mothers we spoke to were aware that many of these at home tests • Investigating pregnancy monitoring existed devices for at risk mothers 70

Personas Aurora, 38: Heather, 36: Elena, 32: trying to start a family 3rd time expectant mom Mom of premature baby• Owns her own PR firm • 2 Masters (Accounting, Nutrition) • Full-time writer/editor on• Trying Pergonal, preparing for • Stay at home mom (2 kids) maternity leave IVF (after Clomid didn‟t work) • Organic food in fridge • Self-described “worrier”• Tracks basal body temperature • Buys in bulk • Used iPhone apps during via spreadsheet • Tracks expenses via pregnancy (e.g. „til• Uses an ovulation microscope spreadsheet baby, kickcounter) and ovulation test strips daily • She and son take weekly • Uses Snuza baby movement• Uses Woman asthma tests monitor, and iPhone baby Calendar, Ovulator (fertility • High-deductible plan monitor to track baby iPhone apps) • Loves free apps (photo • Humidifies and purifies air• DailyStrength and RESOLVE sharing, games etc) • Hand sanitizers in every room member (fertility support • Splurges on preemie clothes 71

Personas Dev: Dr. Robbins: Mike: Device Developer Pediatrician Payer Account Manager• Specialist in anemia • Sees 50 patients/day (mostly • 8 years experience measurements checkups, coughs, rashes) • Working on MPH part-time• Using open protocols (eg • Lots of panicked phonecalls (studying telemedicine in RS232) from new parents developing world)• Would love a way to integrate • Talks to 15 patients per day via • Uses HealthConnect to prepare his system with others‟ phone (bills for 60% of these) quotes for clients• Frustrated with open source • Hates paperwork • Coordinates renewal and open platforms (e.g. SanaMobile) and • Thinking of moving to a cash- enrollment meetings fragmented apps space only business • Leads smoking cessation• Not familiar with heart rate • Gets paid for data analysis initiative monitors, thermometers, etc • Member of doctors-without- • Dual Dutch/US citizen borders 72

Adword Campaign • Went Live this morning • Will share results tomorrow 73

At home uterine monitoring for high-riskpregnancies http://www.ecommunity.com/homehealth/index.aspx?pg =10797 http://www.fetalmonitorstrips.com/learn_more.html 74

Today‟s Tasks Request for Class – Connections at insurance companies; preferably involved with payment structures. Channel - Interviews - Price / Configuration Adwords Analysis Acquisition Cost / Timeframe - Pay for Click Conversion Adwords Analysis - Flow diagram and time estimates for physician sales and insurance co approvals Further Review of Revenue Model - Interviews & Research 75

76[Social Crowd]An online platform helping local communities to thrive4/16: 12 interviews (5 Investors; 7 Businesses)4/17: 15 interviews (3 Investors; 12 Businesses)4/18: 3 interviews (3 Community Groups)jerry sandersTotal: 30 interviews Group 14

Yesterday 77 One-off: - Platform design An online Finders: - Independent Ongoing: „matchmaking‟ forum - Semi-automated Individuals & business - Screening where F&G connect. - Local community- groups seeking organizations - Marketing focused investment - COMMUNITY - IT maint. & support Finders: Investment opportunities that INTEREST - New market ID efficiency through a provide (i) requisite ORGS screening process returns and (ii) a - Community that ensures only direct benefit to a funding the top ideas are local community. institutions posted. - Local business Grinders: school alumni Grinders: Access to Start-ups and - Personal - Direct contact - Customer d/base small amounts of EXISTING locally connections through website - Proprietary capital typically owned businesses - Local business - Local news & PR knowledge hard to acquire & COMMUNITY activists channels - Brand copyright through institutional GROUPS seeking - Word of mouth - Site skin: look, feel routes. capital investments of $10K-$2MValue-driven: Most important costs include: Dual revenue structure:- Web platform development- IT management & technical support - Finders Fee (2% of consummated deal value)- Marketing & customer acquisition jerry sanders- Application review costs (experts) - Grinders Fee ($250 application review fee) Group 14

Experiments yesterday 78Diving deeper…Test Activities ResultsGenuine market size Further research to determine the accurate dollar value CONFIRMED attributable to our target market & ONGOINGCustomers’ willingness to pay Surveys & interviews to determine: INCONCLUSIVE  Perceived value in CBS Alum review process  Value attributed to time-saving component  Pricing sweet-spot for fees: F&GImportance of local aspect  Surveys & interviews with F&G to determine CONFIRMED  Research local investment statistics  Research industry constituentsHow to plug (not bridge!) the gap Surveys & interviews to determine LT sustainability of our INCONCLUSIVE 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?Interest of Community Groups Surveys & interviews to determine level of interest & TO BE TESTED involvement (are they partners or customers?)[Social Crowd]jerry sanders Group 14

Results yesterday 79We’re STILL learning…• Bifurcated investor customer segment: – Direct local beneficiaries (I like the coffee!) – Indirect local beneficiaries (property values)• Potential additional revenue stream – Share in topline revenue of subject business – Proven model: Bryant Park Corporation• Community board endorsement – Brand – Helps establish barriers to entry[Social Crowd]jerry sanders Group 14

Today 80 One-off: An online platform helping - Platform design local communities to - Independent thrive„matchmaking‟ forum business Ongoing: where F&G connect. FindersInvestors: - Semi-automated organizations - Screening Individuals & - Local community- - Community - Marketing FindersInvestors: groups seeking focused Groups & Block - IT maint. & support Investment efficiency investment Associations - New market ID through a screening opportunities to interest orgs process that ensures provide a direct or - Community only the top ideas are indirect benefit to a funding posted. local community. institutions j - Local business GrindersBusinesses: school alumni Access to small - Local business amounts of capital GrindersBusiness - Customer d/base typically hard to - Direct contact activists es: - Proprietary acquire through through website - Personal Existing locally knowledge institutional routes. - Local news & PR connections owned businesses - Brand copyright Giving residents a channels - Government seeking capital - Site skin: look, feel way to preserve their - Word of mouth entities investments of neighborhood $10K-$2MValue-driven: Most important costs include: Dual revenue structure:- Web platform development - Finders Fee (2% of consummated deal value OR top- IT management & technical support line revenue interest in subject business) jerry sanders- Marketing & customer acquisition - Grinders Application Fee ($250 application review fee) Group 14

A real world example 81Transaction mechanics 5 Betel Bar & Kitchen Existing investor 1 [Social Crowd] Screen 2 3 [Social Crowd] Web Platform 4 Commercial Deal[Social Crowd]jerry sanders Group 14

Experiments today 82Diving deeper…Test Activities ResultsLong term viability Surveys & interviews to determine LT sustainability of our TO BE TESTED 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?User interface How investors and businesses prefer to interact (privacy etc) TO BE TESTEDMarkets Attend a community board meeting to further test the TO BE TESTED genuine market size/need  Streets vs Neighborhoods  Street Ambassadors[Social Crowd]jerry sanders Group 14

Market Size* 83Number of small businesses Target MktTotal Addressable Mkt Assume 1/3 are27,000,000 small self-funded &businesses 1/3 are fundedin USA by conventional (institutional) 27,000,000 954,311 facilities 318,104 Served Available Mkt 954,311 small businesses in NYC (~5% TAM)[Social Crowd]jerry sanders *Statistics provided by the US Small Business Administration Group 14

Neighborhood Hospital Closed down Korean ownerEcosystem New bar opening Doesn’t speak English 84 West Village Flower Rents Revenues 30% Need some $ for Record Store renovation & upgrade Economic Closing down 20Apr12 Environment Souvenir store Economic Customer Revenues Environment behavior “Need affluent customers” Wine Store manager Lives in the hood Would invest for goods in return ($50-100) Partner Crime Bookstore Do we still help City/ Doesn’t v Business that business?Local council enforce Trying to cope with events, … regulations New bar opening Coffee drinker from Coffee Shop East Village Need some $ for Leather bag store Needs a new Espresso Enjoys coming to the renovation & upgrade Exporting overseas machine ($10k) hood Needs cash to upgrade Needs “support” to façade. “modernize Needs to “modernize” Apartment above coffee New bar opening shop Historical Property owner Wants Society Yelp X stable/increasing Katherine property value Neighborhood communities Chains/ Has $$ MNCs Doesn’t have time to invest in the hood. [Social Crowd] jerry sanders Group 14

Existing Suggest What Build investor investments? New “drives” database investor them? 85 Other Key Suggests Partners? investments via Investor direct mailing, … Neighborhood communities ? Web Platform Reach out to Accumulates data Partner Crime investors on local hood/ Bookstore Consult?? business“Social Crowd” Screen “Social Crowd” Reach out to talk about store/ Client Auto-creation database Leather bag Resident store Yelp, …. Business needing $$ $$ Inform $$ and/or profit sharing [Social Crowd] jerry sanders Group 14

Marketing campaignsdesigned for delivery to cellphones, smart phones andother media devices.Team members: Alex Goncharuk Jorge Melgar Hasan Shahid Broor Spahr van der HoekInterviews: 2 (21) Restaurants, (16) Customers 2 Medical, 2 Telecom, 1 Channel partner

Customer DiscoveryTest the Solution Verify or PivotWeb-based mobile marketing Pivottool VerifiedApp that allows them to Phase 3 Phase 4choose what they receiveTest the Problem State Hypotheses2 interviews with owners Phase 2 Phase 1 Restaurants have a marketing14 interviews with customers problem Customers don’t like to receive random mobile marketing (i.e. SMS, email)RestaurantsCustomers

Restaurant’s Ecosystem - Guide: diners rate quality of restaurants, Zagat charges for content - Online reviewers : receive feedback- Suppliers from customers and sell- Landlords advertisement to restaurants- Personnel - Online reservation system: restaurants pay monthly fee for terminal and $1 per reservation - Discounters: sell highly discounted products to end users - Social Media: restaurants advertise directly through this media- Owners- Legal

Restaurant Segments Fine dining - Always full Margin - Income subject - Dedicated marketer Rent 17% to weekly and 10% monthly Midlevel prime location Others Labor seasonality 9% 39% - Generally full - Dependent on - Part-time marketer Food loyal customers 25% sales Midlevel neighborhood - Low margins don’t allow high discounts - Mixed results from digital marketing - Fear of implementing new Low restaurants technologies - No budget

Customer Segments Age 20-25 - Price, location, quality - Website - Interest in receiving opt-in mobile marketing information Age 26-35 - Quality, decor - Location based restaurant info - Zagat, word of mouth - Initial interest in getting an app that Age 35-45 gives the quality, price and - Quality promotions - Zagat Age 45+ - Quality, clean - Known restaurants

Market Size US - Mid level restaurant digital marketing budget ~ $750-600,000 $1,000 per month - Assuming a 30% market shareNew York and a fixed monthly fee of $500 28,000 annual revenue is $15.7M - Additional analysis is needed on variable revenue generationMid Level methods 8,700

Mobile Marketing Day 1 Problems solved: Get/keep/Grow - Allow customers to Key Activities do Customers? develop and execute Most important Who are our Key we require? Low-cost platform that mobile marketing customers? Partners? Software is effective and campaigns (based Small businesses Telecoms development, data quickly shows results on interactive access (or analysis (switching costs for with end users) Telecoms, marketin Who are our key telecoms and marketing) g agencies?) suppliers? Needs satisfied: What are their Telecoms, search - Efficient low-cost archetypes? engines communication with Companies that end consumers would want to use What are we mobile marketing getting from Key features? services them? Giving What Key - Simple Job they want us them? Resources we Which Channels? standardized Web- to get done? Phone numbers/ require? Online (trade fairs?) based software tool Deliver msg to end- short People, IT allowing use of customer through code, advertising infrastructure (data SMS, QR codes and platform center) NFC Important costs? Fixed? Variable?Software (technology) development, (fixed) Subscription fee, campaign fee and marketing/sales (variable) performance-based fee?

Mobile Marketing Day 2 Key Activities do we require? - Restaurants to Get/keep/Grow Restaurants want Who are our Key Marketing reduce sales Customers? to minimize the Partners? Campaign fluctuations dependency on Online templates, Software - Low-cost platform discounters advertisement development, relati - Restaurants to - Marketing Campaign onship building engage customers Templates Restaurant want to Who are our key run local marketing suppliers? campaign ( 2 mins Telecoms, search - Cheap and an breakfast , cheap engines effective way of bagel after reaching the 11am, …) What are we customers getting from What Key them? Giving Resources we - Reaching local Which Channels? them? require? customer Online Message delivery People, IT (location based) services infrastructure (data center) Important costs? Fixed? Variable?Software (technology) development, (fixed) Fee per marketing campaign, monthly marketing/sales (variable) subscription fee

Mobile Marketing Day 3 - Restaurants to reduce sales fluctuations Key Activities do - Restaurants to engage Get/keep/Grow Restaurants want toWho are our Key we require? customers minimize the dependency on Marketing Campaign - Cheap and an effective Customers? discounters Partners? way of reaching the - Low-cost platform Online templates, Software customers Restaurant want to run local development, relation - Reaching local customer - Marketing Campaign marketing campaign ( 2 advertisement mins breakfast , cheap ship building (location based) Templates review webpages bagel after 11am, …) restaurants - Increase customersWho are our key without affecting - Mid pricing level suppliers? existing sales restaurants in Telecoms, search neighborhood areas engines What are we - Filter incoming getting from What Key “discount” info Which Channels? them? Giving Resources we Online, app, loyalty - People between 30- them? require? - Receive restaurant Message delivery information programs 45 years People, IT - People in an services Quality infrastructure (data (price, quality) if you information are in an unknown unknown area center) place Fee per marketing campaign, monthly Important costs? Fixed? Variable? subscription fee Fee based on effectivenessSoftware (technology) development, (fixed) marketing/sales (variable) Free

Mobile Marketing Day 4A (Restaurants) Build and Support - Provide cheaper alternative marketing Campaign to discounter websites templates - Customizable marketing program Website and Mobile - Increased profit App development - Mid priced level - Filtered access to local - Increased customer restaurants deals- Restaurants databases Relationship building loyalty- Online advertisement- Review websites- Restaurants- search engines - Piggy back on loyalty program People, - Restaurant databases IT - Filtered promotion websites infrastructure, Telecom information - Age group 30-45 years Infrastructure, - Local and timely - App store - Travellers Marketing Strategies for promotions - visited restaurants Restaurants Campaign fee, Subscription Important costs? Fixed? Variable? Software (technology) development, (fixed) marketing/sales (variable) Free

Mobile Marketing Day 4B ( TELECOM AND MARKETING AGENCIES) Software Low-cost platform, development, data increasing number of analysis - Infrastructure to standard marketing execute marketing campaigns campaigns Telecoms, search - Efficient low-cost engines communication with Telecoms, marketin end consumers g agencies - Multi-channels access to the potential customer Direct sales, online People, advertisement IT infrastructure Software (technology) development, marketing/sales (variable) Subscription fee, per customer royalty

An online platform that connects procurement consortiums with suppliers Ravi Pingli Interviews:Arez Mardoukhi 18 on Day 3Gopi Sukhavasi 64 Total Kevin Woolley

Business Model Canvas: Day 3Key Partners Key Activities Value Customer Customer• Hotel and • Develop Propositions Relationships Segments restaurant online Buyers • Regular • Local/ associations platform • Find best customer independent• Independent • Continuous suppliers for contact restaurants (no research buyer and procurement chains) services supplier consortiums • Local/ development • Facilitate independent transparency hotels (no and ease of chains) use • Food, tabletop, Key Resources Suppliers Channels and bed linen • Software • Increased • Outside suppliers development visibility to salesforce team potential • Marketing resources customersCost Structure Revenue• Fixed: Software development/maintenance • Annual subscription contract for both buyers and• Variable: Marketing/sales suppliers (~0.5% of consortium revenue) • Buyers/suppliers charged to submit/respond to proposals

Business Model Canvas: Day 4Key Partners Key Activities Value Customer Customer• Hotel and • Develop Propositions Relationships Segments restaurant online Buyers • Regular • Local/ associations platform • Lower costs customer independent• Independent • Continuous • Increase contact restaurants (no research buyer and options and chains) services supplier negotiating • Local/ development position independent Suppliers hotels (no • Increased chains) visibility to • Food and Key Resources customers Channels tabletop and • Software • Increase sales • Outside bed linen development price salesforce suppliers team • Marketing resourcesCost Structure Revenue• Fixed: Software development/maintenance • 3% commission on sales paid by supplier• Variable: Marketing/sales • Annual subscription contract for both buyers and suppliers (~0.5% of consortium revenue)

Business HypothesesHypothesis 1• • Test Result • • Interviewing Local restaurant Accepted but suppliers provide bulk inconsistent between discounts different suppliers 4 major supplierHypothesis 2 executives Test Result• Local restaurants require material cost reductions to join YSN • • Interviews with local Obtained restaurants about types of supplies • Different senstivities shown across different categories of supplies price versus quantityHypothesis 3 Test Result• Local restaurant • data by suppliers Interviews with • Rejected. Local suppliers pay restaurant suppliers pay subscription fee to YSN visiting commission to YSN supplier

Ecosystem Glassware manufacturerThird party sales Showrooms YSNcompany or independent - Buyers pay up to 15% - Consortium lists aggregatedsales rep discount on mixed orders on website- Sells through catalogs bulk orders depending - Suppliers place bids on- Local restaurant gets on category orders a 50-10 discount - Restaurants pay reduced- Sales company buys markup from supplier on a 50- - Glassware supplier pays 50 discount level YSN 3% sales commission- Sales company gets 10-14% commission on salesLocal restaurant Restaurant consortium

Early adopters • Master Chef Warehouse o Offering 3% commission on sales through YSN o Conditional on seeing the demo by Saturday 9AM • MCIC o Offering 3% commission on sales through YSN o No conditions on offer • Lucaris USA o Pending todayNext steps • Prepare demo, present contract, and begin building supply network • Selling at least one case of glassware to one of the interviewed restaurants by tomorrow

Customer Contacts Yesterday: 22 traveler groups in person / 33 online survey responsesCustomer Contacts To Date: 53 in person / 33 online / 75 Adwords clicks / 51,000 online impressionsPurchases To Date: 7 Repeat Customers: 1 Ari Scott Alex Sarah Francois Michael Harkov Greco Morrison Shenton Viargues Burke

Version 3 – EOD April 17th 2012 Get: PR, digital 1. Itinerary collection & WOM, SEO, SEM, consumer Bakamba helps tourists promotions updates have richer, more authentic travel experiences by Tourists – Content Keep/ Grow: great customer 2. Marketing / PR tapping into the knowledge Purchasers service, expand of locals cities, improve partner 3. Customer service – Save time planning offeringsSuppliers: local locals & travelers Revenue sharing & Locals - Contenttrendsetters, work in See the “Real” City relationship marketing Providershospitality, younger/crea Filter based on intereststive, bloggers, active Everything in one placeparents Mass Distributors – Mass Distributors – Content Purchasers Content Purchasers Unique platform for localsGet itineraries: $$ for experts to share and • Search (SEO/SEM)sales as well as monetize their local • Social mediaexposure (blog, video) 1. Web developers knowledge • Travel blogs / sites 2. Marketing/PR team 3. Local expert outreach Potential idea: Provide 4. Sales force (low recommendations and info • Craigslist end, in person) to concierges • Social media • Local blogs Fixed costs: upfront development of site and app How: Sell itinerary for $9.99, pay local 20%, keep 80% gross Variable costs: How: Sell itinerary for $9.99, pay local 10%, keep 90% gross margin. talent/people, marketing/advertising, compensation of margin. locals, product iterations

Hypothesis Result People want flexibility and WTP increased significantly whendynamic itineraries with options presented with MVPs with options Still inconclusive. Seem to be The proper price point for our three segments: Free, $4.99, and product is $9.99 $9.99. Need more data. Aesthetically pleasing? Yes. Easy to use? Not at all. Oops. PeoplePeople will find our website easy found the site confusing, difficultto use and aesthetically pleasing to navigate, and were unsure of service for sale

Hypothesis ResultWe are solving a clear and deep- Yes for our personal networks; NO seated problem with travel for the 50 or so travelers we’ve planning. spoken to in person this week Two segments – some absolutely People would rather pay $5-10 would and others don’t care and and get unbiased want deals/sponsorship to make recommendations itineraries free to them Foreign travelers would not want Foreign travelers are interested if this tool if they do not have data given printable and/or service iPad/mobile offline options

Version 4 – EOD April 18th 2012 Get: PR, digital Bakamba helps tourists WOM, SEO, SEM, consumer 1. Itinerary collection & have richer, more authentic promotions, authors as sales updates travel experiences by force? tapping into the knowledge Tourists – Content 2. Marketing / PR of locals Keep/ Grow: great customer Purchasers service, expand Save time planning 3. Customer service – cities, improve partnerSuppliers: local See the “Real” City offerings locals & travelers Revenue sharing & Locals - Contenttrendsetters, work in Filter based on relationship marketing Providershospitality, younger/crea interests/location/authorstive, bloggers, active Budget advice / Flexibilityparents needed Mass Distributors – Mass Distributors – Content Purchasers Content Purchasers Unique platform for localsGet itineraries: $$ for • Search (SEO/SEM) experts to share andsales as well as • Social media monetize their localexposure (blog, video) 1. Web developers • Travel blogs / sites knowledge 2. Marketing/PR team • Authors as sales force 3. Local expert outreach Potential idea: Provide 4. Sales force (low recommendations and • Craigslist end, in person) info to concierges • Social media • Local blogs How: Sell itinerary for $9.99, pay local 20%, keep 80% gross Fixed costs: upfront development of site and app margin. Tests: can we get locals to contribute without the promise of Variable costs: payment for sales? for $9.99, pay local 10%, keep 90% gross How: Sell itinerary Get one for free if you create one for your talent/people, marketing/advertising, compensation of margin. own city? Pay to post? Break up itineraries into sections by locals, product iterations, printing/binding different locals?

Year to Date Revenue = $0.07Next Steps – Continue gathering feedback from +/-20 or so travelers we’ve emailed MVP site access – Test revamp of revenue model: locals pay to post, locals post without promise of payment, or traveler can either pay $9.99 OR get itinerary for free if they create one for their own city – Continue to investigate WTP, particularly with flexibility options – Investigate online survey feedback and correlations – Review and start testing/implementing improvement suggestions for MVP site – Test more onus on local author to enhance product – Explore additional partnership channels – Explore the possibility of providing offers or deals within itineraries

TEAM FACTABASEComprehensive Business Statistics on DevelopingEconomiesDay 4: 14 InterviewsMary Leong, Alexis Farfaro, Calin Bota, ProsastyChaudhuri, Bader AlKahtani

OUR INTERVIEWS HELPED US FOCUS OUR CUSTOMER SEGMENTSFURTHER Hypothesis Experiment Finding • More statistics on Interview Customers are ready to buy this. They were interested in Value emerging markets the benefits of Factabase that we did not highlight like than anyone else Unique access, Official sources and Cost effectiveness Proposition • Convenient access “We can‟t wait to have this” – Head of Research McKinsey “This is something that is very unique we really need this” – 6 senior researchers and 1 emerging markets specialist Goldman Sachs • Frequent Interview Consultants and investment banks are a key segment Customer • Non-frequent Segments Universities and market research are interested but should not be a priority area for us Individuals and Entrepreneurs are interested • Subscription Interview Consultancies and investment banks like a pay as you go Revenue • Per Table Sale offering Streams Individuals and entrepreneurs like more convenient ways to buy like per table

OUR BUSINESS MODEL CANVAS AT THE END OF DAY 3 Access to the most • Automated Services • National Statistics • Collecting and preparing comprehensive and Companies and Offices the statistical tables Detailed (hundreds of individuals with a • Development of automation sources per country) need for detailed • Public Authorities software and webapps database of curated public statistics on • Customer acquisition and industry statistics on Emerging Markets. • International management developing markets. Organizations (Majority of which are not • Frequent indexed on search engines - Consultancies & hidden on authority • Companies that servers) - Universities publish public statistics Convenience in • Non-Frequent access through - Professionals Advanced Search; • Direct Sales - Entrepreneurs • Software/Web Export and Visualization - Students/Professo developers options; Clear sourcing • Online Sales rs • Research analysts and real-time updates. • Data entry people • API access • HR and admin (special datasets) • Business Development • IT Infrastructure• FTE, IT costs, Rent (Fixed) • Subscription model (comprehensive or sector/country specific) Pay as you go• Part time employee salaries, SEO (variable) What are the most important costs inherent in our business model? Fixed? Variable? • Per-table sale option • API $xx per call

OUR BUSINESS MODEL CANVAS AT THE END OF DAY 4 • Automated Services • National Statistics • Collecting and preparing Companies and Offices the statistical tables Unique access individuals with a • Development of automation need for detailed software and webapps to valuable • Public Authorities public statistics on • Customer acquisition and official Emerging Markets. • International management statistics on Organizations • Frequent developing - Consultancies • Companies that economies in - Universities publish public statistics a • Non-Frequent - Professionals Convenient, R - Entrepreneurs • Direct Sales • Software/Web eliable and - Students/Professo developers • Online Sales rs • Research analysts Cost effective • Data entry people way • API access • HR and admin (special datasets) • Business Development • IT Infrastructure• FTE, IT costs, Rent (Fixed) • Subscription model (comprehensive or sector/country specific) Pay as you go• Part time employee salaries, SEO (variable) What are the most important costs inherent in our business model? Fixed? Variable? • Per-table sale option • API $xx per call

VISUALIZING THE VALUE PROPOSITION Group/Sub-group wise percentage change in All-India index from last month and last year Base:- 1984-85=100 Last May, 06 April, 07 Last year Group & Sub-group May, 07 month I FOOD, BEVERAGES 456 492 496 8.77 & TOBACCO 0.81 447 473 471 5.37 a. Cereals -0.42 566 607 607 7.24 b. Pulses 0 295 345 348 17.97 c. Oils & Fats 0.87 520 581 587 12.88 d. Meat, Fish etc. 1.03 396 433 435 0.46 9.85 e. Milk & Milk Products 501 580 584 0.69 16.57 f. Condiment, Spices etc. 3 6 2 2 467 493 520 11.35 g. Vegetables 5.48 1427 0 5 390 479 475 21.79 h. Fruits -0.84 0 0 398 321 309 -3.74 -22.36 i. Sugar, Honey etc. 485 517 520 0.58 7.22 j. Non-alc Beverages 2 0 582 ‫اإلجماعية دمات‬ 623 ‫ت‬ ‫الخ‬ 626 7.56 k. Prep. Meals etc. Social Service 0.48 0 0 l. Pan, Supari, Tobacco 1428 0 4 683 745 768 3.09 12.45 etc. 0 0 538‫ 99.7 هوزعت حسب ًوع 185والوٌطقت 975 5241هـ‬II FUEL & LIGHT ‫لعام‬ ‫اللوحت‬ 0.35 ‫الوٌصرف هي لوحاث الوركباث بالوولكت‬ 501 Car 529 Plates Issued in the 0 529 5.59 III HOUSING Kingdom By Type : 1425 A.H. 3 0 2 0 50-5 ‫جدول‬ IV CLOTHING, BEDDING /6/30-1/1 Table 5-50 1429 0 0 423 438 439 0.23 3.78 & FOOT-WEAR etc. 0 0 ‫خصوصي الٌـوع‬ ‫أجرة‬ ‫ًقل‬ ‫حافلت‬ ‫آلياث دراجت ًاريت‬ ‫ الوجووع‬Kind 415 429 430 0.23 3.61 a. Clothing & Bedding 0 0 ‫الوٌطقت‬ 478 500Private Taxi 501 Truck 0.2Bus Motor-Cycle Vehicles 4.81 b. Foot-wear Total Region 12 19 479‫005 الرياض‬ 102654 3934 501 35361 0.2 1896 1003 V MISCELLANEOUS 4.59 1259 146107 Riyadh 497‫04509615 هكت الوكرهت‬ 518 3491 25841 0.393116 1811 a. 637 4.23 Medical care 125436 Makkah 369 ‫28521593الوديٌت‬ ‫الوٌورة‬ 396 65 6481 0.25522 7.32 b. Education 30 5 19685 Madinah ‫الشرقيت‬ 63913 371 19777 2023 94 c. 413 Recreation & 86591 Eastern 400 ‫القصين‬ 422 7838 423 8 7670 0.24167 5.75 Amusement 30 5 19685 Al-Qaseem d. Transport & 667 ‫تبوك‬ 685 4400 14 686 15900.15 87 2 10 2.85 Communicaton 6103 Tabouk Coverage of 375 ‫7456 493 حائل‬ 395 0 11020.25126 5.33 e. Personal Care & Effect 0 0 7811 Hail ‫عسير‬ 8442 2 6029 125 6 48 14652 Assir 413 ‫4321 734الحدود‬ ‫الشواليت‬ 440 3 11130.69 52 6.54 f. Household Requisites 1 1 2404 Northern Boarder 567 ‫9572 095 ًجراى‬ 4 592 19240.34 7 4.41 g. Others4707 8 5 Najran 471* ‫4642 105 الجوف‬ 0 503 1424 0.4161 6.79 General Index Al-Jouf 20 0 4069 ‫جازاى‬ 4092 75 2105 92 20 14 6398 Jazan ‫الباحت‬ 1102 3 812 20 1 0 1938 Al-Baha ‫الوجووع‬ 308567 7970 111229 8394 . ‫المصدر : وزارة الداخليت - اإلدارة العامت للمرور‬ 3026 2397 439588 Total Source : Ministry of Interior- General Directorate of Traffic . . ‫ * * تشمل القرياث إعتباراً من عام 4141هـ‬Included Qurayatas From 1414 A.H. . Competition FACTABASE 1 2 3 4 Reformatting, Nor Collection malizing and Categorization Distribution Preparing Quality check

OUR INTERVIEWS HELPED US FOCUS OUR CUSTOMER SEGMENTSFURTHER Hypothesis Experiment Finding • More statistics on Interview Customers are ready to buy this. They were interested in Value emerging markets the benefits of Factabase that we did not highlight like than anyone else Unique access, Official sources and Cost effectiveness Proposition • Convenient access “We can‟t wait to have this” – Head of Research McKinsey “This is something that is very unique we really need this” – 6 senior researchers and 1 emerging markets specialist Goldman Sachs • Frequent Interview Consultants and investment banks are a key segment Customer • Non-frequent Segments Universities and market research are interested but should not be a priority area for us Professionals and Entrepreneurs are interested • Subscription Interview Consultancies and investment banks like a pay as you go Revenue • Per Table Sale offering Streams Individuals and entrepreneurs like more convenient ways to buy like per table

OUR BUSINESS MODEL CANVAS AT THE END OF DAY 2 Access to the most • Automated Services • National Statistics • Collecting and preparing comprehensive and Companies and Offices the statistical tables Detailed (hundreds of individuals with a • Development of automation sources per country) need for detailed • Public Authorities software and webapps database of curated public statistics on • Customer acquisition and industry statistics on Emerging Markets. • International management developing markets. Organizations (Majority of which are not • Frequent indexed on search engines - Consultancies & hidden on authority • Companies that servers) - Universities publish public statistics Convenience in • Non-Frequent access through - Professionals Advanced Search; • Direct Sales - Entrepreneurs • Software/Web Export and Visualization - Students/Professo developers options; Clear sourcing • Online Sales rs • Research analysts and real-time updates. • Data entry people • API access • HR and admin (special datasets) • Business Development • IT Infrastructure• FTE, IT costs, Rent (Fixed) • Subscription model (comprehensive or sector/country specific) Pay as you go• Part time employee salaries, SEO (variable) What are the most important costs inherent in our business model? Fixed? Variable? • Per-table sale option • API $xx per call

OUR BUSINESS MODEL CANVAS AT THE END OF DAY 2 Access to the most • Automated Services • National Statistics • Collecting and preparing comprehensive and • Management Offices the statistical tables Detailed (hundreds of Consultancies • Development of automation sources per country) software and webapps database of curated And Investment • Public Authorities • Customer acquisition and industry statistics on Banks • International management developing markets. Organizations (Majority of which are not • Market indexed on search engines & hidden on authority Research Firms • Companies that servers) publish public • Educational statistics Convenience in Institutes access through Advanced Search; • Direct Sales • Software/Web Export and Visualization • Professionals/E developers options; Clear sourcing • Online Sales ntrepreneur • Research analysts and real-time updates. • Data entry people • HR and admin • Business Development • IT Infrastructure• FTE, IT costs, Rent (Fixed) • Subscription model (comprehensive or sector/country specific) Pay as you go• Part time employee salaries, SEO (variable) What are the most important costs inherent in our business model? Fixed? Variable? • Per-table sale option • API $xx per call

TYPICAL CUSTOMER JOURNEY AT GOLDMAN SACHS NO RESULTS 5% of results Interested in a deal in the retail industry in the country Premium 10% of results Azerbaijan Database Going the extra mile • 50 phone calls • 40 hours Web search 10% of results • 50 hours of data entry • $$$ and time spent Research Request sent to research team on: - Number of hospitals by type in Azerbaijan - Number of patients by illness in Azerbaijan - Number of beds in each hospital in 100% of results Azerbaijan - The same data on other nearby countries to compare FACTABASE

OUR INTERVIEWS HELPED US FOCUS OUR CUSTOMER SEGMENTSFURTHER Hypothesis Experiment Finding • More statistics on Interview Customers are ready to buy this. They were interested in Value emerging markets the benefits of Factabase that we did not highlight like than anyone else Unique access, Official sources and Cost effectiveness Proposition • Convenient access “We can‟t wait to have this” – Head of Research McKinsey “This is something that is very unique we really need this” – 6 senior researchers and 1 emerging markets specialist Goldman Sachs • Frequent Interview Consultants and investment banks are a key segment Customer • Non-frequent Segments Universities and market research are interested but should not be a priority area for us Individuals and Entrepreneurs are interested • Subscription Interview Consultancies and investment banks like a pay as you go Revenue • Per Table Sale offering Streams Professionals and entrepreneurs like more convenient ways to buy like per table

OUR REVENUE STREAMS AT DAY 3 Consultancies Universities Comprehensive Market Research Firms Coverage Needed Full Access Subscri- Per Table Charge ption Based Service Entrepreneurs and Independent Researchers Sector Specific Financial Services Firms Sector based Subscri- Per Table Charge ption Service Less Frequent Frequent Frequency of Need

OUR REVENUE STREAMS AT DAY 4 Universities Comprehensive Market Research Firms Coverage Needed Full Access Subscri- Per Table Charge ption Based Service Entrepreneurs and Independent Researchers Sector Specific Financial Services Firms Consultancies Sector based Subscri- Per Table Charge ption Service Less Frequent Frequent Frequency of Need

OUR BUSINESS MODEL CANVAS AT THE END OF DAY 2 Access to the most • Automated Services • National Statistics • Collecting and preparing comprehensive and Management/Strate Offices the statistical tables Detailed (hundreds of gy Consultancies • Development of automation sources per country) • Public Authorities software and webapps database of curated Financial Services • Customer acquisition and industry statistics on • International management developing markets. Market Research Organizations (Majority of which are not Firms indexed on search engines & hidden on authority • Companies that servers) Educational publish public Institutes statistics Convenience in access through Individual/Entrepre Advanced Search; • Direct Sales neur • Software/Web Export and Visualization developers options; Clear sourcing • Online Sales • Research analysts and real-time updates. • Data entry people • HR and admin • Business Development • IT Infrastructure• FTE, IT costs, Rent (Fixed) • Subscription model (comprehensive or• Part time employee salaries, SEO (variable) sector/country specific) What are the most important costs inherent in our business model? Fixed? Variable? • Per-table sale option

OUR BUSINESS MODEL CANVAS AT THE END OF DAY 2 Access to the most • Automated Services • National Statistics • Collecting and preparing comprehensive and Management/Strate Offices the statistical tables Detailed (hundreds of gy Consultancies • Development of automation sources per country) • Public Authorities software and webapps database of curated Financial Services • Customer acquisition and industry statistics on • International management developing markets. Market Research Organizations (Majority of which are not Firms indexed on search engines & hidden on authority • Companies that servers) Educational publish public Institutes statistics Convenience in access through Individual/Entrepre Advanced Search; • Direct Sales neur • Software/Web Export and Visualization developers options; Clear sourcing • Online Sales • Research analysts and real-time updates. • Data entry people • HR and admin • Business Development • IT Infrastructure• FTE, IT costs, Rent (Fixed) • Subscription model (comprehensive or• Part time employee salaries, SEO (variable) sector/country specific) What are the most important costs inherent in our business model? Fixed? Variable? • Per-table sale option (with pay as you go option for large accounts)

OUR BUSINESS MODEL CANVAS AT THE END OF DAY 4 • Automated Services • National Statistics • Collecting and preparing • Management Offices the statistical tables Unique access Consultancies • Development of automation software and webapps to valuable And Investment • Public Authorities • Customer acquisition and official Banks • International management statistics on • Market Organizations developing Research Firms • Companies that economies in publish public • Educational statistics a Institutes Convenient, R • Direct Sales • Software/Web eliable and • Individual/Entre developers • Online Sales preneur • Research analysts Cost effective • Data entry people way • HR and admin • Business Development • IT Infrastructure• FTE, IT costs, Rent (Fixed)• Part time employee salaries, SEO (variable) Per-table sale option (with pay as you go What are the most important costs inherent in our business model? Fixed? Variable? option for large accounts)

Your Groceries… in the 21st Century 136 interviewsDay 4Jyotsn Gianlui Kerli Brian Dimita Camilla Factabase gi r a

Hypotheses / Results – Day 3Inventory tool enhanced  Survey to • 86% would use the eFood with recipes and dietary validate day 2 appinfo results • 70% WTP, 35% >$1.99 Customers willing to  Survey • 48% would scan/ inputscan / record inventory manually App would convert users  Survey • Survey indicates 43%to online shopping increase  • Small mom & pop shops  Retail are fearful / busy growing Small retailers are good physical salespartner for sales interviews (8) • Mid-sized are alreadyfullfilment present online somehow:  “talk to head office”• eFood makes  20 • Recipe / shopping apps and  connections that don‟t research online shopping apps exist currently exist but are not married together nor with inventory management Key Insights: We validated the concept Sales delivery partners are NOT small retailers

Value Proposition For the Consumer We save you TIME by helping you TRACK, DECIDE ON and BUY groceries For the Business Partners We generate SALES to your store We deliver effective ADS at the point of purchase decision

eFood Value Prop and Revenue Generation ModelFunctionality Output User Benefit Revenue Opportunity What I haveTrack SUGGEST Display Ads What I don‟t have RecipesDiscover DECIDE Recommendations Required Ingredients Online order Commission onBuy PURCHASE online order or In-store purchase store purchaseEducate & Healthy Eating Info Display Ads SHARECommunicate Share recipes with friends

eFood EcosystemCONTENT Search & FULLFILLME Recommendati eFood Orders NT Recipes on Platform Online Online Inventory stores Multiple devices sync O Healthy R Eating Physical StoresNutritional Smartphone Tablet Web portal Info App App ADVERTISERS CONSUMER ’S Kitchen DELIVERYSocial Networks CONTEN MONEY GOODS T

Five things to know about online grocery shopping: Consumers love online grocery shopping, but it takes time getting used to.You can simply the process by improving the online experience withnavigation, search, online help and porting over shopping lists. Deliver a bettertime-saving experience and consumers will hang on. Online baskets are different than offline baskets. The average transactionsize is much larger for food and beverages ($80 online / $30 offline) and healthand beauty purchase ($30 online / $10 offline). And online shopping offers agreater mix of pack sizes and categories. Consumer perceptions and purchase behaviors are affected in importantways. The interactions with the online „store‟ environment are fundamentallydifferent than an in-store experience. The online experience is fueled by aneeds-driven experience as a greater variety of options are made available onscreen. Online shopping “levels the playing field”. Big brand „physical‟ advantages donot translate online. With universal distribution and search functionality aninherent bias toward niche players is created. Ultimately, pricetransparency, connectivity and open content favor a purely „rational‟ market. Large and small brands can win online by combining marketing savvy withdigital capabilities to add value. With interactive websites, smartphoneapplications and social media connections, expanding your brands in new andinnovative directions is virtually limitless.

Five things to know about online grocery shopping:Consumers love online grocery shopping, but it takes time getting used to. You can simply the process by improving the online experience with navigation, search, online Deliver a better time-saving experience and consumers willhelphang onOnline baskets are different than offline baskets. The averagetransaction size is much larger for food andbeverages ($80 online / $30 offline) and health and beauty purchase ($30 online / $10 offline). And online shopping offers a greater mix of pack sizes and categories.The online experience is fueled by a needs-driven experienceBig brand „physical‟ advantages do not translate onlineLarge and small brands can win online by combiningmarketing savvy with digital capabilities to add valueExpanding your brands in new and innovative directions is

Top line survey results Dou you shop online for grocery Would you use goods? smartphone/scanner / manually input your products? Would you pay and how much for grocery app?

End FMCG HoReC DAY 3 user retailers a 7 • 1 • Automated services • Dedicated manager 4 2 6 • Platform Save - time - money • Value added • Automated and targeted mass customization • Multi-sided platforms Online and Offline End-users:• Grocery development & - Diet advisory based on past • - Family busy Distributors to management management consumption mums / working stores / horeca • Platform promotion - Recipes patterns fulltime• sector Apple / Android • Home cooking &, reccomendation • - Higher and service analyses medium income•• Platforms Delivery company (fresh direct) Content providers (recipes) 8 Marketing & sales tool: • • new customers Increase revenues • • 3 On-line retailers myvirtualpantry.co • - Willing to pay for convenience (headspace) • People who cook• BeVinco • • information on m at home and buy• Quantified self • Platform consumption • Smartphone apps at least • Customer base behaviour • web sales something online • Software developers Increased loyalty • Household • • Partners relationship Grocery Retailers appliance store for • managers Content development scanners (Premium • Distributors (Food) and management users) • Direct sales force • Basic app is for free • Selling smartphone apps and extra services - freemium • • • Platform management and development Customer acquisition costs Cost for service premium users 9 • • Selling hardware (scanning devices) transaction fees on online purchases (from supermarkets) 5 • add revenues

Consumer Retailers Advertisers MULTI-SIDED DAY 4 PLATFORM s 7 1 Automated Service (Smartphone App and4 2 6 • Platform development & management • Save time & effort by Tracking, Decidin Website) In –person dedicated • • Time Conscious Tech Friendly • Platform promotion g on & Buying (Relationship • Cook at home Manager) NB. Trackers (Early Groceries• Retailers • Eat Better In-person dedicated evangelists) (Physical & (Ad sales) Generate Physical Retailers Online)• Sales, expand 8 Online Retailers• Apple / Android Platforms Content providers (Recipes etc.) retailers customer base and avg. shopping basket Direct 3 Advertiser Deliver targeted Advertising App Store • Software developers • Partners relationship Indirect managers Partner Stores • Content management Direct Advertisers • Two tier Smartphone App pricing : Lite = Free, Pro = $1.99 (Limited time free • • • Platform management and development Customer acquisition costs Cost for service premium users 9 • promo) Selling hardware (scanning devices) Sales commissions on retail orders 5 Display ads, recommendations

eFood user experience

Day 4 presentations columbia apr 2012

by steve blank

Accessibility

Categories

Upload Details

Usage Rights

Statistics

Day 4 presentations columbia apr 2012 Presentation Transcript