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# contacts today: 2total: 28 Ph.D. candidate Ph.D. candidate Ph.D. in Ph.D. in Chemistry Neuroscience Bioengineering Neuroscience
Key Partners (7) Key Activities (5) Value Proposition (1) Customer Relationships (4) Customer Segments (2)Who are our key partners/ Which key activities does What value do we deliver What type of relationship For whom are we creatingsuppliers the biz model require to the customer does each segment require value of usUniversities Experimental Cost: Pest control setup Cheaper to Pest control businessesChemical produce businesses: a) Chemicalcompanies Establish Discovery companies partnerships Performance platform b) Pest controlPest control 1. More potent serviceservice Users: Better companiescompanies Key Resources (6) 2. Low toxicity pest control Which key resources does the biz model require products Users A laboratory 3. Chemical a) Individuals diversity b) Businesses Chemical Channels (3) - Through which channel does each segment want to be reached libraries 4. Species- specific Pest control businesses: PartnershipsCost Structure (9)What are our cost drivers Users: RetailExperimental setup Revenue Streams (8) How much is each segment willing to pay and how would they like to pay us thisTechnical expertise amount LicensingMarketing Sales post-discovery
BED BUGS ARE A HUGE PROBLEM “Bed bugs are the hardest pests to get rid of in the 20 years I’ve been in the business” “Every hotel has bed bugs.” Google Trends
1 bed bug to 38 million bed bugs from January to December
2.0 EntoScent Behavioral Problem: Pest control Increase in Bed services: traps after Paranoid people experimentsPest control bug incidents and sprayingservice current bed bug Pest control Marketing Users: trap thatcompanies traps are not service effective works better companiesManufacturers Solution: -Sales through Hotels Bed bug trap websiteRetail stores Manufacturers of that works -Large retailers bed bug trap because it uses -Contracts / attractants chemical Retail stores warehouses Pilot testing Sales/contracts to pest control services Manufacturing Marketing Direct sales
HOTELS PROVIDE BEST MARKET OPPORTUNITY Total Available Market: number of hotels: 22,000 $6.5billion in non ag pest control. $409m from bed bugs 28% growth from y/y growth 2011 http://www.pctonline.com/SPC-research-structural-pest-control-market-good-growth.aspx Serviceable Available Market: $1000 per room to get pest control service Target Market: hotels in the US: 10% of 2m hotel rooms x $100 annual contract = $20 million
HOTELS COULD REALLY USE THIS PRODUCTBed bug hitches Multiply very Hotel customer ride into room rapidly notices and complains Pest control Hotel’s reputation service is called goes down Clean out adjacent rooms Change furniture, etc HIGH COST So we have an idea of a product. How do we sell to hotels?
HOTEL ORGANIZATION Independent Corporation Primary deciders sets the protocols Protocols General Manager Decider Assistant ManagersFront Restaurant Kitchen Housekeeping Administration Maintenance BarsOffice Recommender And Accounts And Engineering Head Housekeeper Recommender Deputy Head Housekeeper Linen Keeper Floor Housekeeper Florist Linen Maids Assistants Users Room Staff Cleaners House Valets Cloakroom Maids Maids Porters Attendants
4.0 EntoScentEPA Reach the Genuine decision makers, Hotels innovation on Improve hotelTrade show and targeted ads product design reputation andconference Pest control service reduce pest Same as Hotels companies (PCS)organizers control cost byManufacturers early detectionPest control service Form Manufacturers of Help them increasecompanies their performance relationships, trap and > direct sales chemicals Target Specialty Chemical distributors Sales/contracts to HotelsPRODUCT DEV & REGULATORYTESTING Sales/contracts to PCS distributorsManufacturing
DETECTION MARKET IS CROWDED BUT NO CLEAR MARKET LEADER
WHAT WE LEARNED DAY 4 Hypothesis 1 Experiment 1 Result1No product has a Talk to Target- No one has a clearclear Specialty or those advantage on sellingcost/performance who have used early detectionadvantage competitors’ products products to hotels (but one is doing it) Hypothesis 2 Experiment 2 Result 2No company has Ask hotel decision To be determinedfound the right makers anddistribution recommenders aboutchannel competitors’ bed bug detection products.
5.0 EntoScentPest controlproduct Product innovation Reach out to the Improve hotel decision makers at Hospitality industrydistributors reputation and Sales hotels and their reduce pest control distributorsTrade show and cost by providingconference early detection fororganizers bed bugsEPA Pest control Manufacturers ofManufacturers product chemicals and distributors productsPest control servicecompanies Direct sales to hotels Sales/contracts with hotels/motelsR&DManufacturing Sales/contracts with pest control productSales and marketing distributors
What is missing in current products?-Most attractants except CO2 and dry ice do not work-Best attractant products are either too complicatedand unsuitable for hotels-Best attractant products require on-site professionalpest controlHow do you solve these problems?-Use CO2 or something like CO2-Make it discreet-Make it maintenance-free for the hotels-Make it cheap-Don’t require pest control professionals for anything
WALL PLUGS BED BUG DETECTORS WITH WIRELESS MONITORING$50 per unit x 2 per room x 100 rooms = $100,000 per hotel + cartridge every month $5 = $120,000/year per hotel BBlogger (bed bug logger): Allows hotels to remotely and discreetly monitor bed bugs without on-site pest control professionals
WHAT WE PLAN TO DO Hypothesis 1 Experiment1Hotels want the BBlogger Call the hotels and ask them if the idea sounds plausible Hypothesis 2BBlogger can trap bed Experiment 2bugs Do pilot testing Hypothesis 3 Experiment 3Pest control companies Talk to hardware andwant wireless monitoring software engineers, talk to(or we can serve as the pest control companiesmiddle man)
Thank you Steve Blank Jon FeiberKenneth Pickar Andy Sack Chuck HouseClassmates TAs