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Magic Umbrella Cover V2
- 1. Magic Umbrella Cover the guardians
- 2. The Pain 174 Rainy days a year Wet umbrellas! Sticking them into covers Messing up your bag and homework
- 3. Solving The Problem Modify Umbrella Cover to make it… Hassle free Drip free While… Keeping it functional Compact & convenient Not making look “weird”
- 4. Prototype 1
- 5. Prototype 2 Unconvinced that water will not seep through
- 6. Final Prototype Nylon cover Plastic layer Chamois
- 7. Our Solution No more drips! Synthetic Chamois layer Absorbs water in greater quantity and speed Tough, so no more accidental tears or shreds Hassle Free! Wrap-around Design No more squeezing or “fighting” your umbrella Seals water within the cover Velcro Linings No more fiddling with zips
- 8. Our First Chance LEXICAL Pte Ltd as a corporate gift
- 9. Our First Shop eBay Singapore
- 10. Our first SALE! Saturday Afternoon! Informal Survey Session around school area 2 prototypes Monday Night! Friends 8 pre-orders Neighbors & Family 11 pre-orders Total so far: 21 sold!
- 11. Market Research Manufacturer Woes: Unable to find a manufacturer Umbrella traders unable to customize covers Short-term Solution: Utilize a corporate gifts company Long-term Solution: Approach overseas manufacturers directly
- 12. Market Research Competitor Landscape: Biggest Competitor: Plastic Bags Easy to replicate design Short-term Solution: Make it very difficult for new entrants Bank on low profit margins + large volume Long-term Solution: Good Customer + Vendor relationship
- 13. Finances To produce an initial 500 at $8 each Total Cost = $4000 Operating Cost = $0 (Group will self manage without salary) Raising the money, 2 options: Self-raise Group members split the $4000 bill amongst ourselves GE Money : ezycash Small loans to cover production Repay loan with interest Any leftover revenue will be profit
- 14. Revenue & Profit Plan Low Profit Margins, High Retail Volume
- 15. Keeping Expenses Low Operation & Logistics Operate as a re-seller, not a manufacturer Rent, not purchase transport vehicles Product Design Offer temp jobs to aspiring designers in Polytechnics, NAFA or any other art school “Buy” good designs at $50 per design
- 16. Sustainable Competitive Advantage Good material quality and design Easy Customizing Different designs Multiple markets, shops Different Seasons or promotional events Developing and maintaining good relationship between our clients and vendors
- 17. Original, Creative and Innovative Merged new development with a traditional set-piece Synthetic chamois to absorb any water Completely new approach to covering an umbrella Wrap the umbrella like burrito
- 18. Why invest? Initial start up cost is low, No machines or expensive moulds required Materials are easily available and cheap No complicated supply chain required Big, untouched market Rain is a big problem in Singapore Almost everyone has at least an umbrella No near substitutes with similar functionality
- 19. Why invest? Returns on Investment Our offer: Loan us an amount to cover production cost for contracts Re-pay with 10% interest +5% of profit made All within 3 months Low Risk Retail strategy discourages new entrants Good response from real buyers and clients so far
- 20. Why invest? Recent Development Cost to produce cover down to $2 ($1.50 for workmanship, $0.50 for material)
- 21. Why invest? Recent Development Cost to produce cover down to $2 ($1.50 for workmanship, $0.50 for material)
- 22. Q & A
Editor's Notes
- This is a test message!
- Good Morning Class, we’re the inventors of the Magic Umbrella Cover!Why did we do that? Because we hate the rain, all 174 days of it!And we hate wet umbrellas even more! How often have you fought the umbrella monster, trying to force it back into that “why-is-it-so-small?!” cover of his? Or what about the time when he drooled way beyond the plastic bag you kept him in and then wet your homework?No nono.. Wet umbrellas are a pain! And we’re here to fix it!
- So, to fix it. We think the ideal umbrella cover should be hassle free, and definitely drip free!But…….. We still have to keep it functional, otherwise it won’t be a cover right? Compact and convenient, otherwise you’ll be fighting another monster right? And definitely, not make it look “weird”! Otherwise who would want to carry it, right? And so we went, creating our first prototype!
- I’ll now talk about our product development process.If you remember 3 weeks ago, we unveiled prototype 1, but it was not very well received because it looked like any other umbrella cover. Also, the drawstring around the top did not help much with sealing the water in.
- During the same presentation, we also unveiled Prototype 2, which captured our biggest selling point of our product, the wrap-around design. Some test samples were sent out to several friends and we had some feedback after they used it for around a week. Most said that they were happy with the functionality of sealing the water in, but 1 in particular mentioned that she was still unconvinced that the chamois was able to prevent water from completely seeping through.
- Hence, we address that problem by doubling the chamois layer inside the product, adding an additional plastic layer to allay any fears. Also, we changed lids to a circular shape so that they will fit umbrella bodies better.We took these prototypes and began our first- stage selling. We produced 10, asked 20 people and sold 2 on Saturday. Those who are not willing to buy gave us some precious feedback. Mainly, they prefer a darker color cover and some girls want some special designs. One also said that adding the school logo would make a good school umbrella.We improved upon it again and what you see on our hands is the final product.
- Our solution to the pain comes in 2 categories. Prevent drips and a user-friendly design.In preventing drips, we have synthetic chamois layers to help with absorbing water. Chamois absorbs water 3 times faster and at 50% more in quantity compared to regular towels or cloth. Also, chamois is a tough material and is quite resistant to accidental tears and rips.Also, our product is designed to be hassle free. We come up with the wrap-around design to help users from squeezing or fighting there umbrellas(Our wrap-around design ensures users no longer have to “fight” with their covers) and helps keep the water within the covers. Lastly, with the velcro linings, users will find it easier and faster to pack their umbrellas in their bag.
- During the course of the past week, we approached several hotels and companies to get them interested in our product as a corporate gift. To our surprise, one company actually replied positively: Lexical Private Limited. They didn’t say anything about buying any, but we’re extremely encouraged that they’re willing to accommodate us for a short demonstration.
- Also, we are experimenting with having our product put up on eBay to see if we could tap into the online market.
- And… after talking to Prof yesterday afternoon, we decided to take his advice, throw caution to the wind and see how crazy we can get!From the 2 prototypes that we sold on Saturday, we’ve increased our sale all the way up to a total of 16 as of this presentation. And all that is done just by showing and explaining how our product worked.
- Hide part that we cannot find a manufacturer production process.Find way to make it profitable.First stage, production volume is low, test marketLittle profit, then larger volume, cost go down, decrease retail priceDepend on large volume to make money
- Hide part that we cannot find a manufacturer production process.Find way to make it profitable.First stage, production volume is low, test marketLittle profit, then larger volume, cost go down, decrease retail priceDepend on large volume to make moneyTransition from landscape to solution is bad
- To help explain our revenue and profit plan, we have this graph. As time passes, cost of production will decrease as we find better manufacturers or increase production efficiency and volume. By not lowering our retail price in the same magnitude as cost of production, we cause our profit margin to increase gradually. However, since the profit margin is unlikely to ever increase too drastically, we able to prevent new entrants.
- Daily rental for a van from Alltrust Leasing @ www.alltrustleasing.com$60 for a small van (Renault Kangoo, VW Caddy, Citroen Berlingo)$70 for medium and large vans (Toyota Liteace, Toyota Hiace, Renault Traffic, Nissan Urvan)Not re-sell… buy from multiple and assembleLook out for renting
- Better improved designs for the prototypeQualityCustomisableSeasonal fashionGood relationship with clients and vendors
- So now, the big question original, creative and innovative?Well, for starters, we managed to merge a new development into a very traditional set piece, and gave it a totally new functionality. 2nd, and our product’s biggest selling point. We created an entirely new approach to covering an umbrella. Instead of squeezing it into a bag, you now wrap it up like a burrito.
- But the big question is, why invest?So, let’s talk about money! With no need for machines or expensive moulds, readily and cheaply available materials, and no complicated supply chain, our start up cost is so low, we almost literally break even the second we complete a sale.2nd, everyone has at least 1 umbrella, if not 2 or 3 each. And nothing so far, compares with our product in terms of practicality and convenience
- Next, we move on to returns. I like to think our offer is really good. You loan us an amount enough to cover production cost of fulfilling or completing a contract. We then prioritize to repay you with an extra 10% interest and 5% share of any profit, all within the space of 3 months. I don’t even think the stock markets and fixed deposits can do better.Of course, there are risks to consider. But we assure you that our retail strategy of forcing competitors to accept a very low profit margin is going to complicate and discourage them so much, we will get market domination even before they can push their first product out.Lastly, in previous slides, we already have a very good response from actual, genuine and real buyers and corporate clients. I mean, we even managed to sell our prototypes before this presentation.But the real cheese in our business plan came yesterday afternoon.
- Probably the biggest breakthrough we ever had. Zhi Fan found a tailor who was willing to produce our covers at $2 each.Bringing our production cost down to $5.If you look at the graphs in particular the red and purple bars. The one on the left shows our pricing when we’re dependent on a design firm.But now, when we got a tailor to produce the covers for us, our production cost decreased by half and profits multiplied by 4. When we eventually, do get a manufacturing firm to mass produce the covers for us, there’s still a 50% increase in profits to be had.
- But that’s with selling the covers as a package. Eventually we do hope to sell covers individually so consumers are able to customize their umbrellas according to their moods.And with similar trends in profits here, we definitely have a lot of leeway in choosing between quick expansion both locally and globally, or giving any competitor and new entrant a price war that they’ll never survive.