1. “Providing apartment review
services to international
students looking to relocate
to the US”
Team:
Ahmed Makhlouf
Simon Zhu
Anna Wang
Lillian Wang
Interviews: 81
Day 1: 20
Day 2: 20
Day 3: 23
Day 4: 18
Team 15
Virtual Open House
2. How does this work
Basic
information
for free
Standard
apartment
tour & review
Customized
value–added
service
• Registration for free database service
• Aggregated basic information of the apartment
Location, size, the number of bedrooms,
fundamental facilities…
• Report and recommendation based on the key
words of search
R
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2
1/29/2014
3. How does this work
Basic
information
for free
• Agent tour appointment
• Video tour
Standard
apartment
tour & review
• Produce very detailed review of the apartment
Room condition
Customized
value–added
service
Soundproof
Bedbug history
Heater
Lighting
Facility & Amenity
The size of the
parking lot
Chinese
supermarkets/rest
aurants
3
Safety of the community
Monitor
Criminal history
1/29/2014
4. How does this work
Basic
information
for free
Standard
apartment
tour & review
Customized
value–added
service
• Conduct interview
with previous
resident
• Help connected
with the local
community
4
• Comparison report of
the apartments listed
by the customer
• Customized service
1/29/2014
6. Day1 Hypothesis Testing
What we thought
What we have discovered
People would find video
a more compelling
experience than
pictures
•
•
People would be willing
to pay for an app and
platform to shoot video
of real estate
•
“I don’t want to
cram my phone with
apps I would use once
a year even if they
more efficient”
•
•
What we changed
People find video slow to load
Pictures are sufficient to show the basic
qualities of a property.
If people wanted a closer look, they’d
just go in person
Restart
Customers can upload videos
themselves
Even if they wanted an app, they would
only use it once per few years.
“Why bother use
this app, if I would only
use it once a year”
6
“I can just used
craigslist to upload my
video, I don’t do it
that often anyway”
1/29/2014
8. Day2 Business Canvas
8. Key Partners
Real Estate
Brokers
UAH
7. Key Activities
• Build & maintain
online platform
• Recruit and train
part-time
employees
• Acquire students
• Partner with real
estate brokers
6. Key Resources
Online Platform
Human Resources
Local office
2. Value
Proposition
4. Customer
Relationships
Creating and
publishing professional
quality video tours
and uploading them
to a web portal,
where it can be
shared via social
media or posted to
online realty
marketplaces
Get: advertise on
Acting as a proxy that
provides apartment
review services to
international residents
Reduced Time & Effort:
- Virtual Personal
Assistance
- Easy & detailed
analysis
Online:
9. Cost Structure
official websites, social
media & popular BBS
Keep: Follow up &
obtain feedback after
moving in
Grow: Develop new
services & partnerships
3. Channels
•
•
•
•
Company Website
BBS
Social Media
Real Estate brokers
websites
1. Customer
Segments
Students/apartme
nt owners
interested in
selling/renting out
apartments
Real Estate Brokers
International
Students
- High school
- Undergraduate
- Graduate
Expats
Word of Mouth:
•
•
Real Estate brokers
Alumni
5. Revenue Streams
• Variable Costs: hourly wage for agents,
transportation expense, recruiting & training costs
• Fixed Costs: Utilities- Server & IT costs;
Transaction based service
Standard service with single fixed pricing
8
1/29/2014
9. Day2 Hypothesis Test
What we thought
What we have discovered
Customer – Expats or
their corporations ✖
•
Customer – International
students are willing to
pay $20 – 50 for one
apartment review ?
•
•
•
“Compared to
the rent I’m going to spend
on the house for the whole year,
I would like to spend 1% on a
professional service to
help with my choice”
What we changed
Corporations rely on relocation
agencies
Expats prefer to review apartments
themselves
Focus only on
international
graduate students
Chinese students in particular are willing
to pay these amounts
Married couples are also more willing to
accept this price range
Focus mostly on
Chinese students
and married
couples
“It helps a lot,
I would pay up to
30 dollars to guarantee
a nice place for
my family”
9
“When I relocated
as an expat, I would rather spend
some time and money in a local
hotel to visit possible
options myself”
1/29/2014
10. Day3 Business Canvas
8. Key Partners
Real Estate
Brokers
UAH
7. Key Activities
• Build & maintain
online platform
• Recruit and train
part-time
employees
• Acquire students
• Partner with real
estate brokers
6. Key Resources
Online Platform
Human Resources
Local office
2. Value
Proposition
Acting as a proxy that
provides apartment
review services to
international residents
•
•
•
Time and cost
saved
Professional service
provided by
experienced staff
Providing a detailed
and objective
review
• Quick response
• Catering to
family special
needs e.g.
(schools…etc.)
4. Customer
Relationships
Get: advertise on
official websites, social
media & popular BBS
Keep: Follow up &
obtain feedback after
moving in
Grow: Develop new
services & partnerships
1. Customer
Segments
1. International
Students
- High school
- Undergraduate
- Graduate
•
•
•
•
3. Channels
Online:
•
•
•
•
Company Website
BBS
Social Media
Real Estate brokers
websites
•
•
•
Single
18 – 30 years old
Mostly Chinese
Tend to apply in
peak season
Little experience
with US housing
evaluation
Married
Long term rent
commitment
Specific needs
•
•
•
9. Cost Structure
Word of Mouth:
2. Expats
Real Estate brokers
Alumni
5. Revenue Streams
• Variable Costs: hourly wage for agents,
transportation expense, recruiting & training costs
• Fixed Costs: Utilities- Server & IT costs;
Transaction based service
Standard service with single fixed pricing
10
1/29/2014
11. Customer Archetypes
Freshman Fang
Key Attributes
• Single
•
•
•
•
•
18 – 30 years old, mostly Chinese
Minimal income
Tend to apply in peak season
Little experience with US housing evaluation
Convenience oriented
What Matters
Able to find a satisfying house in New York City
quickly before coming here for study
Value Propositions
• Quick response
• Professional help on apartment appraisal
• Connection with locals
“I would love to pay a reasonable price for your service if it helps me
make quicker decision and build up local connections”
1/29/2014
11
12. Customer Archetypes
Mother Mindy
Key Attributes
• Married, with children
• 22 – 30 years old, international
• Time and money sufficient
• Little experience with US housing evaluation
• Very high standards for housing condition
What Matters
Able to find a safe, wholesome neighborhood
to settle down and raise a family
Value propositions
• Best practice after comparing many different
options before deciding
• Professional help to find neighborhood
supporting long term commitment
• Specific need-fits for education and safety
“We asked a friend to do it, but if we didn’t find anyone, we would’ve
been very willing to pay for such a service.”
1/29/2014
12
13. Day3 Hypothesis Test
What we thought
What we have discovered
Revenue – We should
provide standard service with fixed price ✖
•
•
Free membership or try out attract traffic
It’s difficult to cover or set price on every
unique customer requirement
Introduce a
3-tier pricing
strategy
Channel – Advertising in
the student group on
social media, BBS would
be most effective !
•
Most student prefer to trust information in
familiar student group on social media
Pushing advertisement through instant
messaging and email is more effective
Introduce in
Push Marketing
Strategies
•
“I have friends that
flew all the way to the
US to inspect the apartment
and flew back.”
“Is it possible
for you to connect
me with some previous
residents? I would like to pay
more if it generates
extra cost.”
13
What we changed
“If your service is
recommended by the
social group I have long
time membership, I would
be more likely to
try it out”
1/29/2014
14. Day4 Business Canvas
8. Key Partners
Real Estate
Brokers
Online real
estate database
Instant message
service providers
7. Key Activities
• Build & maintain
online platform
• Recruit and train
part-time
employees
• Acquire students
• Partner with real
estate brokers
UAH
6. Key Resources
Online Platform
Human Resources
Local office
2. Value
Proposition
4. Customer
Relationships
Acting as a proxy that
provides apartment
review services to
international residents
• Time and cost
saved
• Professional service
provided by
experienced staff
• Providing a
detailed and
objective review
Get: advertise on official
websites, social media &
popular BBS
• Quick response
• Catering to
family special
needs e.g.
(schools…etc.)
Push digital marketing:
QQ, group email
Keep: Follow up & obtain
feedback
Grow: Develop new
services & partnerships
Offer discount for referral
3. Channels
Online:
•
•
•
•
Company website
BBS / Social Media
Real Estate brokers
websites/online
9. Cost Structure
1. International
Students
- High school
- Undergraduate
- Graduate
Single
18 – 30 years old
Mostly Chinese
Tend to apply in
peak season
• Little experience
with US housing
evaluation
•
•
•
•
database
Student group on
instant messaging
and email
• Married
• Long term rent
commitment
• Specific needs
Real Estate brokers
Alumni
2. Expats
Word of Mouth:
•
•
1. Customer
Segments
5. Revenue Streams
• Variable Costs: hourly wage for agents,
transportation expense, recruiting & training costs
• Fixed Costs: Utilities- Server & IT costs;
Transaction based service
Standard service with single fixed pricing
3 – tier pricing
14
1/29/2014
15. Customer Relationship
Get
Keep
Grow
• Advertise on university • Follow up and
• Offer discount for
BBS and social media
collect feedback
customers who
• Develop partnership
• Improve services
require more
with brokers and RE
and update to the
apartment tours
database, advertise
customers
• Offer discount for
on their website
• Send holiday or
referrals
• Push digital marketing
birthday greeting
• Develop partnership
through instant
emails
with more influencing
messaging terminal
real estate websites
• Email target customers
through the mailing list
of student associations
15
1/29/2014
16. Pricing Strategy
Basic
information
for free
• Free for registered customers
•
Standard
•
apartment
•
tour & review •
$40 per tour & review *
10% discount off for more than 5 tours
20% discount off for more than 10 tours
Get one for free for every 3 referrals
Customized • $20 per extra value-added service
value–added • Negotiate with customer about the price
service
* Additional tours are priced @ 0.4% of annual rent
16
1/29/2014
17. Day4 Hypothesis Test
What we thought
What we have discovered
Resource – Hiring local
international students as
part-time employees is
cost efficient !
•
Partner – We can
partner with University
housing dept. to
increase reliability ✖
•
•
•
“As much as
we staff would like to
assist you in your startup
idea, it’s not permitted for us to
cooperate officially with you
at this time”
What we changed
International students are willing to help
fresh alumni even if not paid a lot
Chinese new comers prefer to pay the
service provided by a Chinese student
Provide
part-time jobs for
international
students
Official cooperation is not permitted
But International Student Association
are positive in partnering with us
Divert to partner
with Student
Association
“Grateful of the
help the senior alumni
have given me, I would
like help out the new
comers as well”
17
“As long as your
business really solve problem of
student in our association, we
are open to a long
time partnership”
1/29/2014
18. Day5 Business Canvas
8. Key Partners
Real Estate
Brokers
Online real
estate database
Instant message
service providers
7. Key Activities
• Build & maintain
online platform
• Recruit and train
part-time
employees
• Acquire students
• Partner with real
estate brokers
UAH
International
Student
Association
6. Key Resources
Online Platform
Human Resources
- International
Student as parttime employees
Local office
2. Value
Proposition
4. Customer
Relationships
Acting as a proxy that
provides apartment
review services to
international residents
• Time and cost
saved
• Professional service
provided by
experienced staff
• Providing a
detailed and
objective review
Get: advertise on official
websites, social media &
popular BBS
Push digital marketing:
QQ, group email
Keep: Follow up &
obtain feedback
Grow: Develop new
services & partnerships
Offer discount for referral
• Quick response
• Catering to
family special
needs e.g.
(schools…etc.)
9. Cost Structure
3. Channels
Online:
• Company website
• BBS / Social Media
• Real Estate brokers
websites/online
database
• Student group on
instant messaging
and email
Word of Mouth:
• Real Estate brokers
• Alumni
1. Customer
Segments
1. International
Students
- High school
- Undergraduate
- Graduate
Single
18 – 30 years old
Mostly Chinese
Tend to apply in
peak season
• Little experience
with US housing
evaluation
•
•
•
•
• Married
• Long term rent
commitment
• Specific needs
2. Expats
5. Revenue Streams
• Variable Costs: hourly wage for agents,
transportation expense, recruiting & training costs
• Fixed Costs: Utilities- Server & IT costs;
Transaction based service
Standard service with single fixed pricing
3 – tier pricing
18
1/29/2014
19. Cost Structure
Fixed cost
System
development
cost
Variable cost
Labor cost $10
per tour
Training cost
Ways to keep cost low
• Hire international students as part-time labor
• Divide customers into groups based on their university
community
• As our database grows, the average labor cost will decrease
19
1/29/2014
20. Next Steps
Week
Month
• Investigate pricing
structure
• Expand customer
demographics
• Website payment
and registration
Year
•Begin orders and sales
to Test full process
•Formalize and test
Agent Training script
and video template
•Get feedback on
delivered product
•Scale up Website to
automate transactions
20
•Prepare for prime rental
season (Summer) by
scaling up employee
base and marketing
1/29/2014
22. Market Sizing
Total Available Market:
Total Market Size
$780 M
•
•
1.74 Mio international Grad students*
50% of existing student need housing
• 3 house reviews per student
• $30 per review
• 5% Annual Growth
Total Potential Market
$200M
Our
Opportunity
$20M
*Chronicle for higher Education- chronicles.com/article /Graduate-School-Enrollments/141577/
24. Value Propositions
“Freshman Fang”:
International students
Ages 18-22, Single
Minimal Personal Income
“Mother Mindy”:
Globe trotting Professional or Student
Ages 22-30, Married with Children
Substantial Personal Income
Buyers want an appraisal of their
apartment before they sign a long
term lease.
We provide agents who are
experienced in appraisal, and trained
in our system.
Buyers are often far away from their
new location geographically, and
cannot visit prospective homes easily.
Our convenient online system allows
buyers to “visit” homes from anywhere
in the world.
Buyers are concerned about the
impartiality of the information
provided by brokers and agents.
Our agents are paid per visit, not by
commission on sales, and are
reviewed based on accuracy
Buyers are concerned about the high
costs and pushy sales tactics of
brokers and agents.
Our agents simply provide the
information for a much lower fee, the
buyer makes the decisions.
