2. 3D Retail Group
Retail Advertising (External Market)
Revolutionizing
advertising
experience
Overcoming
hassles faced by
retailers
(robberies, high
physical
inventory costs)
The Creative Concept
Transform
physical
products to 3D
display
holograms
Stunning visual
experience for
customers
Lean Startup (Internal
Organization)
Understanding customer
needs
Iterative product/service
releases
3. TEAM
Berkley Kilgore
(Founder & CEO)
Brad Fisher
(Co-founder)
Other key member: Erin Kowalski (Sales & Marketing
Head), Gregory Dorvil (Technology, Research &
Social Media Head
4. MARKET OPPORTUNITY
$3 billion in
2013 to $10
billion by 2018
Malls
1st market –
Baltimore/DC
metro area
Automobile
stores
Primary focus
group
Museums
Jewelers
Bottom-Up approach to target the market
6. BUSINESS MODEL
VIABLE BUSINESS MODEL
• Unique offering in the
market
• Agile product
development process
• Need based
product/service for
jewelers, art
exhibitions, luxury
retailers
SUCCESS INDICATORS
• Minimum 60% customer
retention Year-on-Year
• 3 offices in span of 5 years
• Turn profitable by end of year 2
CHANNELS:
Cold calls, Product
demos, Social Media
TARGET
CUSTOMERS:
Jewelers, Museums,
Malls, Automobile
stores
PRODUCT:
Multiple
packages
TARGET
MARKET:
Greater
Baltimore/DC
area
TRACTION: Iterative
product/service
development model to
match customer
needs, widen target
customer
base, increasing
number of
scan/customer
8. COMPETITION
COMPETITOR PATH
3DRG’s DIFFERENTIATED PATH
• No current competitors the
segment of retail advertising
space
• Dwelling in to unchartered
territory in retail advertising space
• 3D holographic product displays
•Potential competitors:
• Direct Dimension
• Exact Metrology
(These companies are in to 3D
scanning and modeling, however,
not targeted at retail advertising)
• Bundled approach (product +
services)
• Bottom-up rather than Top-down
go to market strategy
• First mover advantage in target
market
3DRG is storming on a path never
conquered by competitors before!!
9. BARRIERS TO ENTRY
As 3D scanning, modeling &
holographic technology is in
growth face, the capital cost
of acquiring products from
suppliers is high
Nascent
technology
As technology is new, there
are chances that
technological swings make
harder for interested player
to enter market
Patents could make it
tough for
competitors to enter
market, however, onl
y for a limited period
High capital
cost
3D Retail
Advertising
space
Consumer
acceptance
Patents
Consumer
acceptance is the
biggest factor for
competitors to enter
this market
10. FINANCIAL OVERVIEW
• Total Current Investment
– $785 (Prize money received by winning Start up Maryland
‘Pitch across Maryland’ competition)
• Revenue, break even point &profitability projections
• Revenue CAGR – 25%
Projection
2014
2015
2016
2017
2018
Revenues
$(‘000)
175
219
286
387
535
Profits $
(‘000)
(4.85)
27.88
63.20
116.09
196.04
Note: CAGR – Compounded Annual Growth Rate
11. USE OF PROCEEDS
• Past proceeds
– Reward money in to website development
• Future proceeds
1. Capital investments
• Hardware supplies (scanners, holoboxes, display units)
• Office space
2. Operational expenditures (Working Capital)
• Salaries
• Impact driven promotional and technological awareness
campaigns
• Product demo workshops
3. Expansion
• Greater Baltimore region
• Major cities: NY, LA, DC
12. CAPITAL REQUEST
Raise type: Convertible Promissory Notes
– Lower capital gains tax benefit for investors as it is considered
‘qualified small business stock’
– Win-win situation for both 3DRG and investors
– Convertible equity overcomes shortcomings and risks of convertible
debt investment such as complex and expensive licensing process
Minimum Investment amount: $25,000 /investor
Total raise amount: $200,000
13. TERM SHEET
Name of the company: 3DRG
Type of security: Convertible Promissory Notes
Financing amount: Up to $200,000
Interest rate: 8% per annum
Maturity: Principal and unpaid accrued interest on the Notes will be due and
payable 24 months from the date of the Note Purchase Agreement
Security Interest: The Notes will be a general unsecuredobligation of the
Company.
Amendment & Waiver: The Note Purchase Agreement and the Notes may be
amended, or any term thereof waived, upon the written consent of the
Company and the Requisite Holders.
Retail Advertising (External Market)3DRG is revolutionizing the experience of retail advertising. Jewel robberies are on the increase all over the world, physical inventory cost, insurance costs and physical product advertising is getting expensive day by day. To overcome the real world problems of retailers and advertisers, 3DRG has come up with a concept which is indeed unique in the market and at nascent stage.The Creative ConceptTraditional advertising concept involves physical product display and customer handling/touching products before purchase. While this has its own advantages, more and more business owners are faced with recurring problems of high inventory cost, insurance costs due to breakage/damaged products by physical handling. By 3D scanning and modeling the physical product and converting it in to 3D holographic displays, customers are in for a treat of absolutely amazing product visuals.Lean Startup (Internal Organization)We, at 3DRG believe in the Lean Startup (Eric Ries). Our product/service development cycle would be iterative which would help gauge customer needs and come up with a final product/service which is unbelievably simple and effective to use for our customers. Moreover, this approach also helps us to limit our production cost and market risk unlike where full blown product/service is launched altogether, which has high failure rate.
Jewelers are our primary focus group where robberies, theft and high insurance costs are imminent and also human lives are involved. We are aware that the global market size is expected to grow to $10 billion by 2018, however, that’s not on what we are focusing right now. We are more interested in using BOTTOM-UP approach starting with Jewelers and climbing up the ladder with Museums, Automobile stores and Malls.
Ourpackages come with variation: Base, Intermediate, PremiumEach of these package include following products/software:1. Products:Next Engine 3D Scanner, 24/7 Media Holobox, Unity Web Player2. Software:Dropbox
PRODUCT: We intend to introduce multiple packages with variation in number of 3d scanning and display devices to be used on customer websiteTRACTION: We aim to build momentum by broadening our target customers and geographical presence and keeping up our customer retention ratio in between 60-80% by creating clear benefits awareness and promotional demosAGILE PRODUCT DEVELOPMENT PROCESS: It is process where a company creates a product through iterative steps. Not only that, it is a process where the development time is short and thus, development process is quick which delivers the final product, better and faster
