1. Team
Alice Brooks
Colorwheels
Create. Express. Inspire.
Daniela Buchman
Bettina Chen
Miguel Reyes
Unleashing the next generation of female
Mentors creativity through innovative play…
Nick O’Connor
Ashton Udall Parents: 69
Kids: 110
High school girls: 6
Experts: 32
Manufacturers: 6
Bloggers: 3
Survey responses: 68
Total: 294
E245 The Lean LaunchPad
2. Alice Brooks
BS MIT Mech E
Team
MS Stanford Mech E
Nest Labs
Product Development, Rapid
prototyping
Miguel Reyes
Bettina Chen BS IE (ASU)
BS Caltech EE MS MS&E (Stanford)
MS Stanford EE Intel Supply Chain, Mfg,
Experience at a hardware Biz Dev, Teaching/presenting
startup and mentoring kids to kids
Daniela Buchman
Mentors BS Brown Univ. Mech E
Nick O’Connor MS Stanford
Ashton Udall Mech E
Product Dev, Teaching/
presenting to kids, finding
local resources
3. Original idea
We’ll combine the best features from these
personality
fun back story + beautiful design
intuitive joiners
infinite
+ educational + combinations
To make a new interactive building set for girls
4. Original idea
We’ll combine the best features from these
Market Size
personality
+
fun back million US females aged 5-9
10 story
beautiful design
intuitive joiners
50% adoption (or so we thought...)
Basic kit $40
5 million * $40 = infinite
+ educational + combinations
$200 million target market
To make a new interactive building set for girls
5. Agenda
Phase 1: Customer discovery
Phase 2: Product and experience development
Phase 3: Channels and strategy
Appendix
Project timeline
Talking to parents, craigslist
analogous product postings, and
landing pages
Testing with analogous
products with kids
6. Agenda
Phase 1: Customer discovery
Phase 2: Product and experience development
Phase 3: Channels and strategy
Appendix
Project timeline
Talking to parents, craigslist
analogous product postings, and
landing pages Developing the product
Testing with analogous Developing the experience
products with kids (Children’s Creativity Museum)
7. Agenda
Phase 1: Customer discovery
Phase 2: Product and experience development
Phase 3: Channels and strategy
Appendix
Project timeline
Talking to parents, craigslist
analogous product postings, and Brainstorming new business
landing pages Developing the product model ideas
Testing with analogous Developing the experience Investigating MLM
products with kids (Children’s Creativity Museum)
8. Business Model Canvas (Phase 1)
ColorWheels Alice Brooks, Daniela Buchman,
Bettina Chen, Miguel Reyes
Premium Direct
communication
Parents with
Intuitive Parent
Parent college
Marketing instructions community
networks degrees
Child’s quality
Suppliers of life
Daughter (user):
Product R&D 5-9 years old
lab Fun, unique Web sales
social
Design,
Distribution,
Materials, Asset sale (kits, add-ons)
Manufacturing
11. Customer Discovery Goals
Understand buyer’s wants, needs, and behaviors
Understand end user’s wants, needs, and behaviors
Figure out why a solution does not yet exist
13. What we did
Interviewed 55 parents
- In homes, at schools and museums, on the streets
- Landing page tests
- Purchasing behavior
Observed 41 kids playing
- In homes, at schools and museums
- Their toys, analogous products, initial prototypes
Interviewed 18 experts
- Professors, educators, toy industry veterans
22. Key Learnings
Hands-on learning
Parents Convenient purchasing decision
Educated STEM parents
Fun to assemble and decorate
Kids Community
Girls aged 6-10
This problem is the holy grail
Experts Differences in development correctable
through play
23. Susan (STEM Mother)
She’s a scientist.
Household income: $80k+
She works 60+ hours a week and is incredibly busy.
Motivations
Needs educational toys/after school activities, so she
can feel good about her daughter’s intellectual
development.
Wants to do anything she can to help her daughter
prepare for college.
Colorwheels Angle
Heard about colorwheels through other moms; signs up for the mailing list and gets
information/deals.
Older “Mary Kay” girls are good role models for her daughter. Give her daughter
something to aspire to
24. Susan (STEM Mother)
She’s a scientist.
Household income: $80k+
She works 60+She works a week a week and is incredibly busy.
hours 60+ hours
and is incredibly busy
Motivations
Needs educational toys/after school activities, so she
can feel good about her daughter’s intellectual
Anything to help development.
her daughter
Wants to do anything she can to help her daughter
prepare for college for college.
prepare
Colorwheels Angle
Heard about colorwheels through other moms; signs up for the mailing list and gets
Heard about Colorwheels
information/deals.
Older “Mary Kay” girls are good role models for her daughter. Give her daughter
through other moms
something to aspire to
25. Maya, 8 years old
Attends piano lessons, soccer practice, girl
scouts, and advanced math classes after
school.
Her mother is a neurologist.
Motivations
Likes playing with her friends and
doing group activities
Is interested in science but also likes
playing pretend with her friends.
Colorwheels Angle
Way more fun than math classes and she gets
to play with her friends.
Interacts with “cool” older girls that help her
build her projects.
26. Maya, 8 years old
Attends piano lessons, soccerafter school
Many practice, girl activities
scouts, and advanced math classes after
school.
Her mother is a neurologist.
Playing with friends
Motivations
Likes playing with her friends and
doing group activities
Is interested in science but also likes
playing pretend with her friends.
Looks up to older girls
Colorwheels Angle
Way more fun than math classes and she gets
to play with her friends.
Interacts with “cool” older girls that help her
build her projects.
28. Business Model Canvas (Phase 2)
Learning topic Quick and Proven toys
convenient buy Parents with
Can't wait for college degrees,
Online Interactive Keep daughters the next busy lifestyles
Marketplace material occupied shipment
Fun to
Parents: assemble and
decorate Daughter (user):
Retail Playdates Online sales
7 to 9 years old
Intuitive
Girls: create
instructions
and advocate
Hands-on learning
Design,
Distribution, Asset sale (kits, add-ons)
Materials,
Manufacturing Monthly Subscription
29. Revised Product Idea (DIY electronic kit)
Skills Developed: Fine motor skills by Vision: Use our line-up of toys to build
assembling the toy, spatial cognition Colorwheel City
Benefits: Learn about voltage, solar Social Proof: Show off masterpiece on
power, how circuits turn on/off website
31. Product and Experience Goals
Determine if our presence is necessary in the current model for
the experience to succeed
Product that girls can learn from independently, with minimal
parental involvement and stay engaged
33. What we did
Removed ourselves from the experience
Shipped 12 MVP kits to local families
Tested social play and competition as motivator
Hosted after school program at Duveneck
Mimicked Girl Scout community and culture to test engagement
Hosted 2 sessions at SF Children’s Creativity Museum
35. Key Learnings
Experience is more important than the product
MVP Parents and kids are busy
Varied parent expectations of the experience
Diminishing returns: 12 kits not necessary
Competition!
Duveneck More fun in a group
Parents prefer safe apps to website for kids
Excitement at badges, community feel
CCM The experience is essential
We are part of the product and the experience
How do we provide more role models?
36. Experience > Product
Capitalize on this with:
- Party Packages
- Physical store
- Colorwheels Team Video Series
- School programs, after school
and weekends
- Young Mary Kay type agents
39. What we did
4 Main Areas:
Experience trumps product
Channels
Girl Scout model
Market Broadening via MLM
Kept coming back to our 3 core principles:
Girls
STEM
Hands-on learning
40. Business Model Canvas (Phase 3)
ColorWheels Alice Brooks, Daniela Buchman,
Bettina Chen, Miguel Reyes
Quick, convenient
Learning topics iPad app
buy
Referrers Video demos Merit based level up
Creativity and skills Educated STEM
(parents and development parents
Host classes Parent community
bloggers)
and camps Assemble and
Older kids - role Tiger moms
models - young decorate
Train young reps
reps Gift givers
Kids community
Kids: Build, post Parents community Online sales
online, share Educational Daughter (user):
content Schools, Museum gift 7 to 9 years old
Hands-on learning shops, Camps,
Educational Homeschool Co-op,
Kit Packager
institution After school programs,
Supply Chain
Flash sale sites
Design, Distribution, Materials, Multi-level marketing
Manufacturing
41. Business Model Canvas (Phase 3)
ColorWheels Alice Brooks, Daniela Buchman,
Bettina Chen, Miguel Reyes
Quick, convenient
Learning topics iPad app
Referrers Video demos
buy
Merit-based Level up
Merit based level up
Creativity and skills Educated STEM
(parents and
bloggers)
Host classes development (Gamification)
Parent community
parents
Older Kids as
Older kids - role
and camps Assemble and Tiger moms
decorate
Role Models young reps
models - young
reps
Train
Gift givers
Kids community
Kids: Build, post Parents community Online sales
online, share Educational Daughter (user):
content Schools, Museum gift 7 to 9 years old
Hands-on learning shops, Camps,
Educational Homeschool Co-op,
Kit Packager
institution After school programs,
Supply Chain
Flash sale sites
Multi-level
Design, Distribution, Materials, Multi-level Marketing
marketing
Manufacturing
42. Updated Market Size (Online sales)
“Online/Internet sales experiencing the most explosive revenue growth over 2009 at 22 percent.”
US market size for building sets (2010): $1.2 billion (2x the 2004
market size)
– NPD Press Release
7.5M households with girls 5-9
20% of US households make over $92K
US Toy Market
$21.23 billion 7.5*0.20 = 1.5M
Expect to get 30% of those households = 450K
Target Market 450K*$100 = 45M
$45 million
($100 comes from subscription and also from
analogous toys that these households are willing to
spend on)
47. Michelle, Junior in high school, 16
Attends high school at a top school and is
applying to 15 top colleges for applied math.
“She’s more interested in the experience than
the pay”
Motivations
Wants something to help her get into excellent
four year college and pursue her degree in
applied math.
Colorwheels Angle
Flexible working hours
Great college application enhancer
Money
About 106K female students from the class of 2011 scored a 3 or higher on a STEM AP test
48. Michelle, Junior in high school, 16
Attends high school at a interestedand the
“She’s more top school in is
applying to 15 top colleges for applied math.
experience in the the pay” than
“She’s more interested
than experience
the pay”
Motivations
Wants something to workingget into excellent
Flexible help her hours
four year college and pursue her degree in
applied math.
Colorwheels Angle
Great college application
Flexible working hours
enhancer
Great college application enhancer
Money
About 106K female students from the class of 2011 scored a 3 or higher on a STEM AP test
49. Key Learnings
Channels Better ways to reach target market
Don’t leave out the gift givers
MLM Evangelists: highly motivated teenagers
Effectively train and retain
Partners Exposure through: Local partnerships
Bloggers: Required $$ or followers
50. Company Vision
This decade we will inspire and unleash the next generation
of female creativity to accelerate the growth of females in the
STEM field.
Core Principles
Hands-on Learning
STEM (Science, Tech, Engr, and Math)
Geared towards girls
51. Overall Project Take-aways
1. Advice ≠ Wisdom
*pick out what makes the most sense
2. Titles ≠ Roles
*fully democratic was too slow
3. Building a product ≠ Building a company
*investigate “product-market fit” as well
4. Successful entrepreneurs = Don’t give up
*Get used to picking yourself up
52. Moving Forward
Officially starts next week!
https://fbcdn-sphotos-a.akamaihd.net/hphotos-ak-ash4/294574_197561530304090_177206045672972_532357_7049749_n.jpg
54. Business Model Canvas (week 1)
ColorWheels Alice Brooks, Daniela Buchman,
Bettina Chen, Miguel Reyes
Parents: Paying
Customer
Direct communication with - High level of
Partners: School of Manufacturing customer online
Cost: “premium” toys are involvement with child
Education, Bay Area Mom/ Product R&D Retention and customer
expensive - College degrees in
Dad blog groups, Bay Area Marketing loyalty by offering free
Appeal: educational math, science, or
parent association sample of new products
usually means boring and engineering
unattractive Parent blogs/community
Suppliers: Manufacturer, Design: instructions are
stores providing building typically not kid-friendly Daughter (user):
materials Retention: limited - 5-9 years old
Value for Parents: increase
child’s quality of life by
Outsourced manufacturer
providing them with a fun,
R&D lab for prototyping
educational, and effective
Behavioral data of children
toy
Value for Kids: fun, unique
social (online component) Web sales
Product design costs Basic Kits ($40 List Price)
Distribution, S&H costs Add-ons/Specialized accessories
Materials, Manufacturing ($15-20 List Price)
costs
55. Business Model Canvas (week 2)
ColorWheels Alice Brooks, Daniela Buchman,
Bettina Chen, Miguel Reyes
User base: show off their
Quick & Convenient masterpiece Parents: Paying
- approval/rec by other Customer
parents (faster decision - High level of
Continuous stream of
Online Marketplace making) Looking for MORE!: Kids involvement with child
newly designed
- Amazon - add-ons shipped to can’t wait to receive the - College degrees in
products (Base Kits,
- eBay household every month next thing they chose for math, science, or
Add-ons) (less need to shop for this month engineering
new toys)
- info, videos, testimonials
Retail provided on the website
- Local toy stores (well informed purchase) Website: winning post Daughter (user):
Parents, Mommy
- Independent niche
bloggers, Parent groups: every month gets featured - 5-9 years old
store
word-of mouth, Skills developed:
recommend our toys - fine motor skills Retention: kid chooses on
- spatial cognition the website the next add
User base: need kids to on to receive
Kid built the product
share creations from the - fun, unique Product demos: after-
kits online - self esteem, confidence school centers, Little
- chance to be creative League, YMCA, Innovation One time purchase:
Museum, Children’s $30 base model kit
Product design costs Museum
Distribution, S&H costs
Materials, Manufacturing Subscription
costs $20 for one add on per
month
56. Business Model Canvas (week 3)
Incorporate formal Rely on
Quick, convenient,
learning topics into Colorwheels for
informed purchasing Parents (paying
product proven set of toys
Online Marketplace decision customer): High level
Create interactive of involvement with
- Amazon
material Keep daughters Can't wait for the child
- eBay
(instructional occupied with non next shipment to College degrees in
videos, stories, etc.) princess toy create and decorate STEM
Retail
Limited free time
- Local toy stores
Parents/ Fun to assemble and from busy lifestyle
- Independent
niche Community host decorate Online sales
store play dates, word of
mouth Effective and Daughter (user):
intuitive instructions - 7 to 9 years old
Girls: create, wear,
advocate, and share Hands-on learning
the product One time purchase:
$30 base model kit
Product design costs
Distribution, S&H costs Subscription
Materials, Manufacturing costs $20 for one add on per
month
57. Business Model Canvas (week 4)
Incorporate learning
topics Quick, convenient, Club Colorwheels
Create interactive informed purchasing (online Parents (paying
Referrers (parents material decision community) customer): High level
and bloggers) of involvement with
Marketing child
(Exposure, Creativity and skills
College degrees in
product demos) development
STEM
Limited free time
Kids: Build, post Fun to assemble and from busy lifestyle
online, share decorate Online sales Gift giver
Kit Packager Effective and Daughter (user):
Supply Chain intuitive instructions - 7 to 9 years old
Educational non-
profit institution Hands-on learning
One time purchase:
$30 base model kit
Product design costs
Distribution, S&H costs Subscription
Materials, Manufacturing costs $20 for one add on per
month
58. same as last week
new this week
Business Model Canvas (week 5)
ColorWheels Alice Brooks, Daniela Buchman,
Bettina Chen, Miguel Reyes
Incorporate learning
topics Quick, convenient, Private online
informed purchasing space or iPad app Parents (paying
Create interactive decision customer): High level
Referrers (parents material of involvement with
and bloggers)
Host after- Creativity and skills Level up system child
school programs development College degrees in
STEM
Eco friendly Limited free time
Kids: Build, post Fun to assemble and Online sales from busy lifestyle
online, share decorate
Schools Gift giver
Educational Kit Packager Effective and Museum gift shops
non-profit Supply Chain intuitive instructions Camps Daughter (user):
institution Homeschool networks 7 to 9 years old
Hands-on learning After school programs
Online flash sale sites
Product design costs
Distribution, S&H costs Subscription
Materials, Manufacturing costs One time purchase: $20 for one add on per
$30 base model kit month
59. same as last week
new this week
Business Model Canvas Train young reps
(week 6)
Incorporate learning ColorWheels Alice Brooks, Daniela Buchman,
Bettina Chen, Miguel Reyes
topics
Private online space
Make video or iPad app
demonstrations Quick, convenient, Parents (paying
informed purchasing customer): High level of
decision Merit based level up - involvement with child
Host after-school and
weekend programs, Girl Scout model College degrees in STEM
Referrers (parents
summer camps and Creativity and skills Limited free time from
and bloggers)
spring break camps development busy lifestyle
Parent community
Older kids - role Fun to assemble and
models - young reps decorate
Tiger moms
Kids: Community with
Kids: Build, post Free educational other kids, shared Online sales
online, share content culture
Parents: Way to link up Gift giver - aunts and
Schools uncles, grandparents
Kit Packager Hands-on learning Museum gift shops
Educational non-
profit institution Supply Chain Camps
Educational
extracurricular Homeschool Co-op
activity After school programs Daughter (user):
Online flash sale sites 7 to 9 years old
Product design costs One time purchase:
Distribution, S&H costs $20 base model kit Subscription for additional
Materials, Manufacturing costs content
Event hosting (eg birthday parties)
Camps, after school and weekend classes
60. Business Model Canvas (week 7)
ColorWheels Alice Brooks, Daniela Buchman,
Bettina Chen, Miguel Reyes
Train young reps
Quick, convenient,
Incorporate learning Merit based level up -
informed purchasing
topics Girl Scout model
Referrers (parents decision Educated, STEM Parents
Make video 5
and bloggers) Creativity and skills
demonstrations Tiger moms
development Parent community
Gamification of learning
Educational non- Fun to assemble and 7
Google adwords Gift giver - aunts and
profit institution decorate uncles, grandparents
Kids: Community with
other kids, shared Daughter (user):
Free educational culture 6 to 10 years old
content Parents: Way to link up Online sales
20
Kit Packager Hands-on learning Schools
Supply Chain Museum gift shops
Educational Homeschool Co-op
extracurricular 169 169
7 8 After school programs
activity
Monthly subscription (1 month free trials)
Product design costs
Distribution, S&H costs Multi-level marketing
Materials, Manufacturing costs 4 (Mary Kay model) 15
61. Business Model Canvas (week 8)
ColorWheels Alice Brooks, Daniela Buchman,
Bettina Chen, Miguel Reyes
Train young reps
Quick, convenient,
Incorporate learning Merit based level up -
informed purchasing
topics Girl Scout model
Referrers (parents decision Educated, STEM Parents
Make video 5
and bloggers) Creativity and skills
demonstrations Tiger moms
development Parent community
Gamification of learning
Educational non- Fun to assemble and 7
Google adwords Gift giver - aunts and
profit institution decorate uncles, grandparents
Kids: Community with
other kids, shared Daughter (user):
Free educational culture 6 to 10 years old
content Parents: Way to link up Online sales
20
Kit Packager Hands-on learning Schools
Supply Chain Museum gift shops
Educational Homeschool Co-op
extracurricular 169 169
7 8 After school programs
activity
Product design costs
Distribution, S&H costs Kit and subscription through
Materials, Manufacturing costs 4 MLM 20
62. C change from previous week
S same as previous week
BMC changes chart
2 3 4 5 6 7 8
KP C S C S C/S S S
KA C C C/S C/S C/S C S
KR C C C S C/S S S
C$ S C S S S S S
VP C C C/S C/S C/S S S
CR C C C C/S C/S S S
CH C C S C/S S S S
CS S C C/S S S S S
R$ C S S S C/S C C
Totals 7C/2S 6C/3S 6C/6S 4C/9S 6C/9S 2C/7S 1C/8S
65. Multi-Level Marketing in Action
Stella and Dot
Sell the Story: work from home, flexible
“Stella & Dot is so much more than a
fashion brand we're a company
inspired by, and created for, strong,
savvy women from all walks of life.”
Chloe and Isabel
Sellers age 19-27, sellers interact
with customers in online
community originally, founder
worked for major jewelry
companies. Tiffany’s etc.
66. Summary of results
Few responses from bloggers: 2 of the 3
responses requested money to advertise us
Sweepstakes upped our “Likes” on Facebook to
837 from 50
Email marketing campaign to 150 people
yielded 1 purchase out of 29 clicks
67. Physics'C:'E&M'
About
106,000
female
students
from
the
class
of
2011
scored
a
3
or
higher
on
a
STEM
AP
test.
By
parCcipaCng
as
a
colorwheels
ambassador,
high
school
girls
will
have
more
confidence
in
their
STEM
abiliCes.
Long
term
goal:
start
programs
to
help
high
school
girls
Sta0s0cs'
take
more
STEM
AP
classes
and
get
involved
in
more
STEM
acCviCes,
ex:
FIRST
RoboCcs,
Science
Fairs