The document presents a proposal for a wristband product that helps parents monitor their children's safety, health, and location. It discusses two models - a basic model and premium model. The basic model includes GPS and two-way communication, while the premium model adds health monitoring features. It outlines the problem the product addresses, describes the product and its features, provides market research validating demand, analyzes competition, and presents financial projections and funding needs.
2. Leveraging the best
technology on the market to
help busy, stressed parents
feel more at ease and to keep
children safe
JOSI FARMER
2
3. The Problem
NICK THOMPSON
3
• Current watches on the market have features for healthmonitoring
or safety connectivity, but none of them offer LTE connectivity via
eSIM or even a combinationof both health monitoring and safety
connectivity.
• Additionally,modern products only provide younger childrenthe
abilityto connect to their parents or guardians via cell phone, so
the risk of the child losing the device can be high.
CURRENT OPTIONS:
OR
(No LTE/eSIM)
4. The
Solution
A wristband that helps
busy, stressed parents
feel more at ease and
keep children safe
Two models: Basic and
Premium
ASHLEY MCGOVERN
4
6. Validation
JOSI FARMER
6
PARENTS’ WANTS AND NEEDS
77% believe an increase in wearable technology will
increase their ability to parent effectively
49% more likely to own more than one wearable
technology item than non-parents
82% believe the ability to track health, safety, or
location of your child would be useful
Successful marketing is KEY
We can break through the gap in the market
7. The Market
• Urban parents via lowest model—keeping the children safe
• Suburban parents via highest models—easing the minds of those
parents
• Level of tech savviness targeted via different models
• Children ages 4-8 years old
MARKET SIZE
• In 2016, there were 28,705,040 children ages 5 to 11, split
throughout different areas
• Forbes says 164 million wristbands will be sold from 2016-2020
Percentage of the wristband market: .025% by year 6
BRITTNI BOUSE
7
8. Marketing & Sales
MARKETING
• Social media
pushes
• Strategically place
our product in
beneficial locations
based on target
market
• Advertise our
product
SALES
• Employee in
charge of B2B
sales
• Go through the
sales process as
we gain partners
and consumers
• Strong reputation
= strong sales
BRITTNI BOUSE
8
9. Why does
selling
matter?
Corporate partners = success!
Selling and marketing is where our
competitors have failed
A member of our team will be meeting,
presenting, and selling our idea and
product to potential partners (B2B)
The more we get our product into
stores, the more it is sold through our
website (B2C)
BRITTNI BOUSE
9
10. Marketing Tactics
MARKETING TO MOMS
• Overwhelmingly the household member who makes
purchases
• Less sensitive to price of electronics vs other consumer goods
• 33% of moms "use social media to learn tricks/tips from
other moms"
• 44% of moms aged 25-34 specifically
• Facebook, Pinterest, Mom blogs
JOSI FARMER
10
MARKETING TO DADS
• 59% of millennial aged (23-40) dads have say
in purchases of electronics
• Gain most advice from personal relationships
• YouTube is significant source of parenting tips/tricks
12. Our Advantage
SKYLER CARRICO
12
LTE CELLULAR NETWORK CONNECTIVITY VIA eSIM
Unprecedented two-way communication capabilities
from the child's wrist to the parent's phone
BASIC HEALTH MONITORING
ONLY child safety GPS device to monitor pulse/heart-
rate, and to automatically use this information to cue
the parent to listen-in via an app
STATE-OF-THE-ART SPEECH RECOGNITION
First child safety GPS device to use speech recognition
as a safety/tamper-alert mechanism
13. Competition Analysis
SKYLER CARRICO
13
• Aimed at special
needs children
• Listen-in feature
• Two-way voice,
messaging, and
video
communication
• Game-driven
• 1-way messaging
• Durable, simple,
screenless design
• No communication
• Tamper alert
• Uses all cellular
carrier networks
• App integration
14. Product
Launch
Timeline
JON PAUL PEPEN
14
Y1
Q1
• Form LLC, Secure intellectual property
• Secure partnership with a talented engineering and
design firm and an IT security firm
Y1
Q2 – Q3
• Majority of product development
• Establish social media presence
Y1
Q4
• Initial soft-release to consumers
• Establish relationship with retailers
Y2
• Secure partnership with one large retailer
• Expand Marketing Push
Y3
• Product improvements
• Scale manufacturing and distribution
• Secure partnership with at least three major retailers
15. Financials
OWEN VEESER
15
Year 1 Year 2 Year 3
TotalIncome $277,477 $1,054,955 $4,299,910
Gross Margin $191,602 $576,205 $1,997,750
TotalOperating
Expenses
$699,500 $515,500 $987,000
Net OperatingProfit $(507,897) $60,705 $1,010,750
• High initial operating expenses due to steep R&D
• Pre-orders available first three quarters
• Direct Sales have a high margin due to low cost of
production
• Starting second year, expand sales through retailers at a
lower margin
16. Financial Assumptions
• Secure partnershipwith 1 large consumer electronics
retailer by year 2
• Secure partnerships with three large consumer retailers
by year 3
• Livable wages for founders first two years, then double
salaries in year 3.
• Development through a talented design firm:
• Includes estimated salary for six full-time engineers and
computer security experts
• Overhead for the design services groups
• Hardware prototyping costs
• Materials costs similar to other wristbands
• Manufacturing and distribution costs slightly higher
JON PAUL PEPEN
16
20. 20
Income
Sources of Income Unit Price ($) # Units Sold Year 1 Income Year 1
PremiumWristband(B2C) $ 149.99 750 $ 112,492.50
Basic Wristband(B2C) $ 109.99 1500 $ 164,985.00
$ -
$ -
(A1) Total Income Year 1 $ 277,477.50
Sources of Income Unit Price ($) # Units Sold Year 2 Income Year 2
PremiumWristband(B2C) $ 149.99 1500 $ 224,985.00
Basic Wristband(B2C) $ 109.99 3000 $ 329,970.00
PremiumWristband (B2B) $ 75.00 3000 $ 225,000.00
Basic Wristband (B2B) $ 55.00 5000 $ 275,000.00
(A2) Total Income Year 2 $ 1,054,955.00
Sources of Income Unit Price($) # Units Sold Year 3 IncomeYear 3
PremiumWristband(B2C) $ 149.99 3000 $ 449,970.00
Basic Wristband(B2C) $ 109.99 6000 $ 659,940.00
PremiumWristband (B2B) $ 75.00 19140 $ 1,435,500.00
Basic Wristband (B2B) $ 55.00 31900 $ 1,754,500.00
(A3) Total Income Year 3 $ 4,299,910.00
21. 21
Expenses
Category Description/ Calculation Expense Year1 Expense Year2 Expense Year3
Cost of GoodsSold
· Materials
$20 for basic, $25 for premium,based on fitbit
materialscosts
$ 48,750.00 $ 272,500.00 $ 1,311,500.00
· PackagingandLabor $10 perunit, basedon fitbit packaging costs $ 22,500.00 $ 125,000.00 $ 600,400.00
· Inventory&Shipping
Goingthrough 3rd-Party Logisticscompany
(3PL).
$ 14,625.00 $ 81,250.00 $ 390,260.00
· Others
(B) Total COGS $ 85,875.00 $ 478,750.00 $ 2,302,160.00
GrossProfit (A-B) $ 191,602.50 $ 576,205.00 $ 1,997,750.00
OperatingExpenses
· Sales& Marketing(C)
Use social mediaoutletssuch as Facebook and
Youtube,include physical advertisementsafter
larger carriers pick up our product.
$ 50,000.00 $ 100,000.00 $ 200,000.00
· R& D (D)
Heavy initial costs for research and
developementofthe product
$ 350,000.00 $ 100,000.00 $ 100,000.00
$ 400,000.00 $ 200,000.00 $ 300,000.00
General Administrative
· Wages& Salaries
7 founderssalaries,all other rolespaid for
withinR&D and Manufacturing
$ 280,000.00 $ 280,000.00 $ 560,000.00
· Supplies Office Supplies $ 500.00 $ 1,000.00 $ 20,000.00
· Rent
Rent Co-workingspace firsttwo years,2000 sq
ft office third year @ ~$20/square foot
$ 3,500.00 $ 3,500.00 $ 40,000.00
· Utilities $ - $ - $ 5,000.00
· Legal $ 5,000.00 $ 10,000.00 $ 20,000.00
· Depreciation $ - $ - $ -
· Insurance $ - $ - $ -
· Other IncludesTravel Costs $ 10,500.00 $ 21,000.00 $ 42,000.00
Total GA Expenses(E) $ 299,500.00 $ 315,500.00 $ 687,000.00
(F) Total Operating Expenses (C+D+E) $ 699,500.00 $ 515,500.00 $ 987,000.00
(G) Income from Operations Gross Profit - Total Operating Expenses $ (507,897.50) $ 60,705.00 $ 1,010,750.00