SlideShare a Scribd company logo
Anthony Cutrofello
Matt Fineran
Meagan Eng
Bernie Guzman-Lopez
Company Background
Founded by Former Apple engineers Tony Fadell and Matt Rogers in
2010
First product - Learning Thermostat in 2011
Google acquired Nest Labs on January 14, 2014 for 3.2 billion dollars
Currently not publicly traded 

By summer 2015, Nest plans to sell 85,000 thermostats monthly
Nest Products
Nest Protect
Nest with
Pendleton Blanket
Nest with Clean
Bottle
Nest
Thermostat
Dropcam
Trends
Societal
“Going green”
Buying local
Do-it-Yourself
Social responsibility
	
  
Technology
Millennials – early adopters
“Internet of Things”
Mobile
	
   Economic
Millennial
spending power é
	
  
	
  
Industry
Smart Home market é
Energy efficiency/LEED certified
buildings	
  
	
  
Automated	
  entertainment	
  
	
  and	
  security	
  systems	
  
	
  
KP
•  Nest Pro
•  Google
•  Government
•  Utilities
Companies
•  Distributions
•  Home
Appliance
Developers

KA
•  R&D
•  Production

VP
•  Innovating
home
accessories to
be more energy
efficient,
convenient,
secure and safe
by reducing
cost, and being
customizable

CR
•  Nest Pro
•  Customer
support

CS
•  Family
Households

Owners or Renters
Technologically
Advanced
Middle to Upper
Class
KR
•  Research and
Development
•  Talented
Employees
•  Intellectual
Properties

CH
•  Home Depot
•  Lowes
•  Apple 
•  Target
•  Nest Online 
•  Best Buy 
•  Amazon
•  Online
Electronics
Retailers
C$
•  Manufacturing and Distribution
•  Marketing and Sales
•  R&D

R$
•  In store Sales
•  Internet Sales
•  Google

Current Business Model
SWOT
Strengths

•  Interconnectivity
through wifi
•  Backed by Google
Weaknesses

•  Few product offerings
•  Recalls on previous
products
•  Google’s public image
Opportunities

•  Apartment complexes/
office buildings/hotels
•  Growing Smartphone
industry
•  Security services using
current products
Threats

•  Competitors
•  Renters
•  Viruses and hackers -
Nest platform and
products
Challenges
Competitors
Na1onal	
  share	
  of	
  	
  
first-­‐1me	
  home-­‐buyers	
  
	
  is	
  slipping	
  
Minimal investment in
the home’s
infrastructure
Solution
Renters
Grab	
  as	
  much	
  market	
  
share	
  as	
  possible	
  as	
  
quickly	
  as	
  possible	
  by	
  
crea1ng	
  a	
  grab-­‐and-­‐go	
  
ecosystem	
  of	
  smart	
  
devices	
  and	
  appliances	
  
for	
  the	
  home.	
  
Stakeholders
Profit
People
Planet
Recommendation
Used with
Nestlet and
Sensors
Monthly
subscription
emergency
service
Sensors
detect
security
threats
Nestlet
Modified
Jawbone
Bracelet
New Business Model
KP
•  Insurance
Companies
•  Emergency
Services
•  Nest Pro
•  Google
•  Government
•  Utilities
Companies
•  Distributions
•  Home
Appliance
Developers
KA
•  Providing
Smart Home
Services 
•  R&D
•  Production
VP
•  Innovating home
accessories to be more
energy efficient,
convenient, secure and
safe by reducing cost,
and being customizable
•  People, Planet, Profit
•  Providing a service to
focus on human safety,
Protecting the planet
with our innovative
technologies, Gaining
profit through this
service
CR
•  Nest Pro
•  Customer
support
•  Safe Nest
Automation
Service
CS
•  Millennials
(17-34)
•  Family
Households
Owners or
Renters
Technologically
Advanced
Middle to Upper
Class
KR
•  Server
Systems
•  Research and
Development
•  Talented
Employees
•  Intellectual
Properties
CH
•  Home Depot
•  Lowes
•  Apple 
•  Target
•  Nest Online 
•  Best Buy 
•  Amazon
•  Online
Electronics
Retailers
C$
•  Manufacturing and Distribution
•  Marketing and Sales
•  R&D
•  Communication servers
R$
•  In store Sales
•  Internet Sales
•  Safe Nest Subscription
•  Nestlets 
•  Google
Strategic Partners
First
Responders Fire Rescue
Police
EMS
Reduce
response
times
Improve
accuracy and
efficiency
Insurance Providers
Insurance
Providers
Premium
Reduction
Incentive
15-20%
Reduction
Pricing
$30 Pack of 10 sensors
$100 2 Nestlets
$90 Nest Protect
SafeNest
Starter Pack
$190 ($220 Value)
$20.00/
Month
Pricing
Basic Plan
$36.99/
Month
Basic Plan
$29.95/
Month
$66.94/
Month
SafeNest
The same services as
ADT + Life Alert
$20.00/
Month
Integrated Marketing
Communications
WHAT?	
  
WHO?	
  
HOW?	
  
SAFETY	
  
MILLENIALS	
  
CHANNELS	
  	
  
Advertising
Short Commercial 
spots on Youtube 
Parents are always trying to
make everything safer for us.
Now, let’s give back. 
Get your parents a Nest
Protect with Safe+Nest.
Cause Marketing
5% of our annual subscription fee will be
destined to their local fire departments
Fire departments
can allocate these
resources to address
their main issues
It’s all about
giving back…
Public Relations
Product Placement
Modern
Family
Chicago Fire 
Arrested
Development
The audiences of these shows comprise substantial
millennial viewers and reflect their overall social and
cultural attributes
Distribution
Safe Nest
Signup online
at nest.com
Nestlet
Apple, Home Depot,
Lowes, Target, Amazon,
nest.com
Social Media
#SafeNestSelfie
1 winner per
social network
Take a selfie with your
NestProtect and post to social
media with the hashtag
#SafeNestSelfie for a chance to
win a Nestlet.
Guerilla Marketing
•  Dance to “Staying Alive”
•  Nest Protect with Safe Nest
saves lives
	
  
Time Square Fire Fighter Flash Mob 
	
  
Evaluation
Insurance	
  
Rate	
  
Reduc;ons	
  
Number	
  of	
  	
  
SafeNest	
  
Subscrip;ons	
  
Number	
  of	
  	
  
Nestlets	
  Sold	
  
Key Performance
Indicators
Contingency Plan
Initial revenue generated from SafeNest will
be allocated to a precautionary War Chest
Preventive measure to solve any potential issues
encountered with first generation adoption of
Safe+Nest
We will be
prepared!

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Nest Business Model Presentation

  • 1. Anthony Cutrofello Matt Fineran Meagan Eng Bernie Guzman-Lopez
  • 2. Company Background Founded by Former Apple engineers Tony Fadell and Matt Rogers in 2010 First product - Learning Thermostat in 2011 Google acquired Nest Labs on January 14, 2014 for 3.2 billion dollars Currently not publicly traded By summer 2015, Nest plans to sell 85,000 thermostats monthly
  • 3. Nest Products Nest Protect Nest with Pendleton Blanket Nest with Clean Bottle Nest Thermostat Dropcam
  • 4. Trends Societal “Going green” Buying local Do-it-Yourself Social responsibility   Technology Millennials – early adopters “Internet of Things” Mobile   Economic Millennial spending power é     Industry Smart Home market é Energy efficiency/LEED certified buildings     Automated  entertainment    and  security  systems    
  • 5. KP •  Nest Pro •  Google •  Government •  Utilities Companies •  Distributions •  Home Appliance Developers KA •  R&D •  Production VP •  Innovating home accessories to be more energy efficient, convenient, secure and safe by reducing cost, and being customizable CR •  Nest Pro •  Customer support CS •  Family Households Owners or Renters Technologically Advanced Middle to Upper Class KR •  Research and Development •  Talented Employees •  Intellectual Properties CH •  Home Depot •  Lowes •  Apple •  Target •  Nest Online •  Best Buy •  Amazon •  Online Electronics Retailers C$ •  Manufacturing and Distribution •  Marketing and Sales •  R&D R$ •  In store Sales •  Internet Sales •  Google Current Business Model
  • 6. SWOT Strengths •  Interconnectivity through wifi •  Backed by Google Weaknesses •  Few product offerings •  Recalls on previous products •  Google’s public image Opportunities •  Apartment complexes/ office buildings/hotels •  Growing Smartphone industry •  Security services using current products Threats •  Competitors •  Renters •  Viruses and hackers - Nest platform and products
  • 7. Challenges Competitors Na1onal  share  of     first-­‐1me  home-­‐buyers    is  slipping   Minimal investment in the home’s infrastructure Solution Renters Grab  as  much  market   share  as  possible  as   quickly  as  possible  by   crea1ng  a  grab-­‐and-­‐go   ecosystem  of  smart   devices  and  appliances   for  the  home.  
  • 10. New Business Model KP •  Insurance Companies •  Emergency Services •  Nest Pro •  Google •  Government •  Utilities Companies •  Distributions •  Home Appliance Developers KA •  Providing Smart Home Services •  R&D •  Production VP •  Innovating home accessories to be more energy efficient, convenient, secure and safe by reducing cost, and being customizable •  People, Planet, Profit •  Providing a service to focus on human safety, Protecting the planet with our innovative technologies, Gaining profit through this service CR •  Nest Pro •  Customer support •  Safe Nest Automation Service CS •  Millennials (17-34) •  Family Households Owners or Renters Technologically Advanced Middle to Upper Class KR •  Server Systems •  Research and Development •  Talented Employees •  Intellectual Properties CH •  Home Depot •  Lowes •  Apple •  Target •  Nest Online •  Best Buy •  Amazon •  Online Electronics Retailers C$ •  Manufacturing and Distribution •  Marketing and Sales •  R&D •  Communication servers R$ •  In store Sales •  Internet Sales •  Safe Nest Subscription •  Nestlets •  Google
  • 11. Strategic Partners First Responders Fire Rescue Police EMS Reduce response times Improve accuracy and efficiency
  • 13. Pricing $30 Pack of 10 sensors $100 2 Nestlets $90 Nest Protect SafeNest Starter Pack $190 ($220 Value) $20.00/ Month
  • 15. Integrated Marketing Communications WHAT?   WHO?   HOW?   SAFETY   MILLENIALS   CHANNELS    
  • 16. Advertising Short Commercial spots on Youtube Parents are always trying to make everything safer for us. Now, let’s give back.  Get your parents a Nest Protect with Safe+Nest.
  • 17. Cause Marketing 5% of our annual subscription fee will be destined to their local fire departments Fire departments can allocate these resources to address their main issues It’s all about giving back…
  • 19. Product Placement Modern Family Chicago Fire Arrested Development The audiences of these shows comprise substantial millennial viewers and reflect their overall social and cultural attributes
  • 20. Distribution Safe Nest Signup online at nest.com Nestlet Apple, Home Depot, Lowes, Target, Amazon, nest.com
  • 21. Social Media #SafeNestSelfie 1 winner per social network Take a selfie with your NestProtect and post to social media with the hashtag #SafeNestSelfie for a chance to win a Nestlet.
  • 22. Guerilla Marketing •  Dance to “Staying Alive” •  Nest Protect with Safe Nest saves lives   Time Square Fire Fighter Flash Mob  
  • 23. Evaluation Insurance   Rate   Reduc;ons   Number  of     SafeNest   Subscrip;ons   Number  of     Nestlets  Sold   Key Performance Indicators
  • 24. Contingency Plan Initial revenue generated from SafeNest will be allocated to a precautionary War Chest Preventive measure to solve any potential issues encountered with first generation adoption of Safe+Nest We will be prepared!