Entrepreneurship Class December 2013 The goal is to show the iterated process in the development of a start-up company, starting from an idea that satisfies a particular need in the society.

1. In collaborazione con:

2. “Charge your smartphone or tablet when you
need and you are in public places such as
department stores, airports, museums”

3. • Suppliers
• Department
Stores
• Service & Admin.
• Renting
• Marketing
• Purchasing
• Rentable USB
Pocket
Charger
• 1 to many
• Dept. Stores
• Airports
• Museum
• Smartphone,
Tablet Users
• Equipment
(USB charger;
Cables..)
• Employees
• Payment for use
• Customized deals with stores
• Fixed Costs: stands rent, marketing
OHs, labor OHs, equipment.
• Variable Costs: energy supply.

4. • PROBLEM:
 Smartphone users usually have low
battery due to their intensive usage;
• NEED:
 Charge smartphone outside home;
• SOLUTION:
 Offer a rentable pocket charger inside
department store, airports and
museums;
• NEWNESS:
 Being the first that satisfy these new
set of needs.

5. • Customer segment:
 Who are they?
 Smartphone, tablets and PC
users
 What is their issue?
 Short battery life
 What are their gains?
 Charging in mobility their devices
• Customer relationships:
 B2C: 1 to many
• Market type:
 New market type

6. • Single stage distribution
• Direct sales
• Channel Types:
 Museums
 Department Stores
 Airports
• Criteria for distribution:
 Low effectiveness
 High efficiency
 High control

7. Coverage: Low
Control: High
EXCLUSIVE SELECTIVE INTENSIVE
Coverage: High
Control: Low

8. • Phisical:
 Chargers and Cables
 Inside-store stand
 Warehouse
 Strategic location
• Intellectual:
 Brand
• Human:
 Entrepreneurial team
 Employees
• Financial:
 Family & Friends

9. • Key Activities:
 Purchasing (from Alibaba.com)
 Renting
 Bargaining
 Advertising
 Administration
 Designing (stand, website,app)

10. • Our Partners:
 Chinese suppliers;
 Department stores, Airports, Museums.

11. • Cost-driven
• Economies of scale
• Fixed Costs:
 Rent
 Wages
 Administrative
 Chargers & Cable
 Marketing
 Overheads
• Variable Costs:
 Energy

12. • Physical revenue model:
 Renting the chargers
• Pricing model:
 No competition
 Low financial leverage
 List price

13. • We based our testing process
relying on a survey:
 Realized with Google Platform
 Addressed to our friends through
social networks and emails
 Composed by 7 questions
 100 answers received

14. Often (68)
Rarely (6)
Sometimes (27)
4 (28)
3 (18)
2 (5)
1 (5)
5 (45)

15. NO (20)
Yes (80)

16. • Rinascente CEO: Alberto Baldan
• Rinascente Duomo Director: Sonia Burgazzi
“Pocket chargers would be a value added service
that would improve customers experience inside
Rinascente®”
But…
“It should be implemented through a direct contract
with the department store avoiding any kind of
charge for customers”

17. • PROBLEM:
 Smartphone users usually have low battery
due to their intensive usage;
• NEED:
 Improve the visitors’ experience
 Charge your smartphone for free while you
are shopping;
• SOLUTION:
 Offer a rentable pocket charger only inside
department store;
• NEWNESS:
 Being the first that satisfy these new set of
needs.

18. • Customer segment:
 Who are they?
 Direct customer:
 Department stores
 Final user:
 Smartphone users only
 What is their issue?
 Short battery life
 What are their gains?
 Charging in mobility their devices
• Customer relationships:
 Switch to B2B: 1 to many
• Market type:
 New market type

19. • Single stage distribution;
• Direct sales;
• Channel Types:
 Department Stores only
 (Excluding Museums
and Airports)
• Criteria for distribution:
 Low effectiveness
 High efficiency

20. Coverage: Lower
Control: Higher
EXCLUSIVE SELECTIVE INTENSIVE
Coverage: High
Control: Low

21. • Phisical:
 Chargers and Cables
 Inside-store stand
 Warehouse
 Strategic location
• Intellectual:
 Brand
 Contract NDA
• Human:
 Entrepreneurial team
 Employees
 Mentor: Antonio
Tazartes
 Advisors: Maurizio
Castello, Sonia Burgazzi
• Financial:
 Family & Friends
 Crowd funding
 Banks

22. • Key Activities:
 Purchasing
 Renting
 Bargaining
 Contracts with department
stores
 Marketing & Advertising
 General & Administration
 Designing (stand, website, app)

23. • Our Partners:
 Chinese suppliers;
 Department stores only.

24. • Cost-driven
• Economies of scale
• Fixed Costs:
 Rent
 Wages
 Administrative
 Chargers & Cable
 Marketing
 Overheads
• Variable Costs:
 Energy

25. • Physical revenue model:
 Renting the chargers for free;
 Department stores pay us a fee based
on the volumes range;
• Pricing model:
 No competition;
 Low financial leverage;
 Dynamic price due to negotiation

26. Charge your
smartphone
for free when
you have low
battery and
you are in a
department
• B2B
• 1 to many
• Direct
customer:
department
stores
• Final user:
smartphone
users
• Only
department
stores
• Physical
• Intellectual
• HR
• Financial
• Purchasing
• Bargaining
• G & A
• Suppliers
• Department
stores
• Only Fixed Costs within
a certain range
• Department stores pay a
fee based on the volumes
range

27. REVENUES HP Year Daily
Number of visitors 5.400.000 15.000
Users % 0,1 0,1
Users 540.000 1.500
Price € 0,5 € 0,5
Total Rev € 270.000 € 750,0
Chargers Micro Usb Lightning 32 pin
TOTAL
EXPENSES
% 1 0,4 0,2 0,4 -
Rinascente 500 200 100 200 -
Price per Unit € 6,00 € 0,45 € 0,65 € 0,50 € 7,60
Total Cost € 3.000,00 € 90,00 € 65,00 € 100,00 € 3.255,00
• According to our
interviews result
• According to market
share (Forbes.com)
• Price referred
to
Alibaba.com

28. • Technological progress:
Increase of battery life;
• Department stores' make or buy tradeoff;
• Low entrance barriers

29. • Extending to Small shops:
Business would return to B2C
maintaining B2B;
Small shops around Milan;
You can rent a GPS traced pocket
charger from one small shop and
return it to another one;
Rent fee directly from customers;

30. Charge your
smartphone
for free when
you have low
battery and
you are in a
department
store or
walking
around the
city
• B2B
• B2C
• 1 to many
• Direct
customer:
 Department
stores
 Smartphone
users
• Final user:
smartphone
users
• Department
stores
• Small Shops
• Physical
• Intellectual
• HR
• Financial
• Small Shops
• Purchasing
• Bargaining
• Renting
• G & A
• Suppliers
• Department
stores
• Only Fixed Costs within
a certain range
• Department stores pay a fee
based on the volumes range
• Rent fees from customers