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Team 4
ENTR 480 Final Presentation
Leveraging the best
technology on the market to
help busy, stressed parents
feel more at ease and to keep
children safe
JOSI FARMER
2
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)
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
Models
GPS
2-way communication
Voice recognition
ASHLEY MCGOVERN
5
GPS
2-way communication
Voice recognition
Health monitoring
Temperature monitoring
BASIC MODEL PREMIUM MODEL
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
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
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
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
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
Demonstration
ASHLEY MCGOVERN
11
Ideal image of what our
wristband would look like
Multiple colors
Easyto use, disguised as
a watch
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
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
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
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
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
What We Need
$400,000 for 40% equity
17
THANK
YOU
18
19
20
Income
Sources of Income Unit Price ($) # 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
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
22

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Parents feel more at ease with child safety wristband

  • 1. Team 4 ENTR 480 Final Presentation
  • 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
  • 5. Models GPS 2-way communication Voice recognition ASHLEY MCGOVERN 5 GPS 2-way communication Voice recognition Health monitoring Temperature monitoring BASIC MODEL PREMIUM MODEL
  • 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
  • 11. Demonstration ASHLEY MCGOVERN 11 Ideal image of what our wristband would look like Multiple colors Easyto use, disguised as a watch
  • 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
  • 17. What We Need $400,000 for 40% equity 17
  • 19. 19
  • 20. 20 Income Sources of Income Unit Price ($) # 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
  • 22. 22