1. # contacts today: 2
total: 28
Ph.D. candidate Ph.D. candidate Ph.D. in Ph.D. in
Chemistry Neuroscience Bioengineering Neuroscience
2. 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 creating
suppliers the biz model require to the customer does each segment require value
of us
Universities Experimental Cost: Pest control
setup Cheaper to Pest control businesses
Chemical produce businesses: a) Chemical
companies Establish Discovery companies
partnerships Performance platform b) Pest control
Pest control 1. More potent service
service Users: Better companies
companies 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: Partnerships
Cost Structure (9)
What are our cost drivers Users: Retail
Experimental setup
Revenue Streams (8)
How much is each segment willing to pay and how would they like to pay us this
Technical expertise amount
Licensing
Marketing
Sales post-discovery
4. 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
5.
6. 1 bed bug to 38 million bed bugs
from January to December
7. 2.0 EntoScent
Behavioral Problem: Pest control
Increase in Bed services: traps after Paranoid people
experiments
Pest control bug incidents and spraying
service current bed bug Pest control
Marketing Users: trap that
companies traps are not service
effective works better companies
Manufacturers
Solution: -Sales through Hotels
Bed bug trap website
Retail 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
8. 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
9. HOTELS COULD REALLY USE THIS PRODUCT
Bed 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?
10. HOTEL ORGANIZATION
Independent Corporation Primary deciders
sets the protocols
Protocols
General Manager Decider
Assistant Managers
Front Restaurant Kitchen Housekeeping Administration Maintenance Bars
Office 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
11. 4.0 EntoScent
EPA Reach the
Genuine
decision makers, Hotels
innovation on Improve hotel
Trade show and targeted ads
product design reputation and
conference Pest control service
reduce pest Same as Hotels companies (PCS)
organizers
control cost by
Manufacturers early detection
Pest control service Form
Manufacturers of Help them increase
companies
their performance relationships,
trap and
> direct sales
chemicals
Target Specialty
Chemical distributors
Sales/contracts to Hotels
PRODUCT DEV & REGULATORY
TESTING Sales/contracts to PCS distributors
Manufacturing
13. WHAT WE LEARNED DAY 4
Hypothesis 1 Experiment 1 Result1
No product has a Talk to Target- No one has a clear
clear Specialty or those advantage on selling
cost/performance who have used early detection
advantage competitors’ products products to hotels
(but one is doing it)
Hypothesis 2 Experiment 2 Result 2
No company has Ask hotel decision To be determined
found the right makers and
distribution recommenders about
channel competitors’ bed bug
detection products.
14. 5.0 EntoScent
Pest control
product Product innovation Reach out to the
Improve hotel decision makers at Hospitality industry
distributors reputation and
Sales hotels and their
reduce pest control distributors
Trade show and cost by providing
conference early detection for
organizers bed bugs
EPA Pest control
Manufacturers of
Manufacturers product
chemicals and
distributors
products
Pest control service
companies Direct sales to
hotels
Sales/contracts with hotels/motels
R&D
Manufacturing
Sales/contracts with pest control product
Sales and marketing
distributors
15. What is missing in current products?
-Most attractants except CO2 and dry ice do not work
-Best attractant products are either too complicated
and unsuitable for hotels
-Best attractant products require on-site professional
pest control
How 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
16. 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
17. WHAT WE PLAN TO DO
Hypothesis 1 Experiment1
Hotels want the BBlogger Call the hotels and ask
them if the idea sounds
plausible
Hypothesis 2
BBlogger can trap bed Experiment 2
bugs Do pilot testing
Hypothesis 3 Experiment 3
Pest control companies Talk to hardware and
want wireless monitoring software engineers, talk to
(or we can serve as the pest control companies
middle man)
18. Thank you
Steve Blank
Jon Feiber
Kenneth Pickar
Andy Sack
Chuck House
Classmates
TAs
Editor's Notes
Traditionally, pesticides have relied on nerve-blocking agents, which are used to KILL insects.This is the same type of chemical that is used in nerve gases and at high enough concentration they are highly toxic to many organisms including humans.Pest control products these days have become more sophisticated and make use of semiochemicals, which can modify insect behavior because they find them attractive or repulsive.In particular, they use pheromones and chemicals from host organisms that are of ecological importance to the insect.Semiochemicals are often species specific and do not rely on killing the insects. Therefore they are environment friendly and not toxic to human beings and in many places they are not considered pesticides for this reason.But many of these semiochemicals are often expensive to produce because they have specific stereochemistry and olefin geometry. So we think it will be great to discover new chemicals, which can substitute for these semiochemicals but not only that, block the activity of these chemicals. To do this, we want to use electrophysiology---here we have a sensillum of the insect chemosensory organ. By recording the electrical activity from these sensors we can see the electrical response elicited by semiochemicals.Now using this as a platform, you can screen small libraries of chemicals to look for these new classes of pest control chemicals, such as new antagonists and super-agonists.This approach has been used to discover new chemicals for mosquitoes, which is an important advance in our fight against malaria.But we think that this approach can be used to discover new chemicals to any insects, including these little guys--bed bugs.
COLORSDirect sales not retailResources: Behavioral tests.Hotel headquarters-how to get them-----yelp and tripadvisorsParanoid people:- Google AdWords? Another dimension in addition to just using Distribution channels: Customer relationships: Answers the following three questionsHow to get: get them to know about me and get first orders from me. Acquisition. How to keepGrow customersWe need to ask the hotels who are the decision makers. What is the buying process? Are you happy with the people you buy from?Pull on the thread: keep asking questions that are more sophisticated… not a survey. In–person interviewDon’t go solo. Learning/interviewing together is better.
Costs for pest control service: $60/visit in St. Louis $120/visit in Salt Lake City $180/room in San Francisco
COLORSDirect sales not retailResources: Behavioral tests.Hotel headquarters-how to get them-----yelp and tripadvisorsParanoid people:- Google AdWords? Another dimension in addition to just using Distribution channels: Customer relationships: Answers the following three questionsHow to get: get them to know about me and get first orders from me. Acquisition. How to keepGrow customersWe need to ask the hotels who are the decision makers. What is the buying process? Are you happy with the people you buy from?Pull on the thread: keep asking questions that are more sophisticated… not a survey. In–person interviewDon’t go solo. Learning/interviewing together is better.
COLORSDirect sales not retailResources: Behavioral tests.Hotel headquarters-how to get them-----yelp and tripadvisorsParanoid people:- Google AdWords? Another dimension in addition to just using Distribution channels: Customer relationships: Answers the following three questionsHow to get: get them to know about me and get first orders from me. Acquisition. How to keepGrow customersWe need to ask the hotels who are the decision makers. What is the buying process? Are you happy with the people you buy from?Pull on the thread: keep asking questions that are more sophisticated… not a survey. In–person interviewDon’t go solo. Learning/interviewing together is better.
Over the course of the next two days we learned a lot about our competition.
Competition: -Buggybeds-Bedbug Interceptor-Checking beds and luggage, regular washing
COLORSDirect sales not retailResources: Behavioral tests.Hotel headquarters-how to get them-----yelp and tripadvisorsParanoid people:- Google AdWords? Another dimension in addition to just using Distribution channels: Customer relationships: Answers the following three questionsHow to get: get them to know about me and get first orders from me. Acquisition. How to keepGrow customersWe need to ask the hotels who are the decision makers. What is the buying process? Are you happy with the people you buy from?Pull on the thread: keep asking questions that are more sophisticated… not a survey. In–person interviewDon’t go solo. Learning/interviewing together is better.
Competition: -Buggybeds-Bedbug Interceptor-Checking beds and luggage, regular washing
