The Problem Olya Voronetskaya

The Problem Olya Voronetskaya

The Problem Olya Voronetskaya

The Problem Olya Voronetskaya

The Problem Olya Voronetskaya

The Problem Olya Voronetskaya

Agenda Market Research Engineering & Design Marketing Financials Wrap Up

Field Research

“People like their home products to be technologically integrated.” Market Research “People like their home products to be technologically integrated.” -Tony Sanna

Market Research “My family would really benefit from something that can help us observe our grocery spending.” -Bruce Altmark

Market Research “I want something that can connect my family and track our nutritional habits together.” -Stanley Weber

76% said an app would be useful Survey Results Ages 25-55 76% said an app would be useful

Survey Results Ages 25-55 98% forget to buy an item

92% shop at least once a week Survey Results Ages 25-55 92% shop at least once a week

Customer Needs Family Integrated Financially Beneficial Convenient Nutritionally Beneficial Family Integrated Financially Beneficial Convenient

Busy families who are nutritionally and financially conscious. Target Market Busy families who are nutritionally and financially conscious.

Target Market Breakdown Families with children 48 million households Parents ages 25-55 with 2-3 children 37 million households 6-17 years old 12 million households

$299 annually with Amazon Fresh membership Current Solutions Amazon Dash $299 annually with Amazon Fresh membership

Current Solutions “Out of Milk” App FREE

Current Solutions “Grocery IQ” App FREE

Needs Matrix Customer Need Convenience Family oriented   Customer Need Convenience Family oriented Spending analysis Nutrition breakdown

Market Gap

Mission Statement To help the busy family maintain a healthier lifestyle, save time and money while shopping, and seamlessly fit into the everyday kitchen routine. Olya Voronetskaya

Agenda Market Research Engineering & Design Marketing Financials Wrap Up 

Smart device compatible Concept Selection Scanner Small and durable Smart device compatible Fit in the Kitchen

Track Grocery spending Concept Selection App Shared Information Nutrition Facts Track Grocery spending

Solution - Scanner Fits anywhere Compatible to all devices Ready to Go Small Design

Solution - App Grocery list Health Budgeting

Walk Through Scan

Scan Eat Scan Throw Away

Walk Through Scan UPC Number

UPC Number UPC Number: 0016000264694 Description: Nature Valley 100% Natural Crunchy Granola Bars – Oats ‘N Honey Size/Weight: 1.5 oz (42g)

Walk Through Scan UPC Number Shopping List Database

Shopping List Description: Nature Valley 100% Natural Crunchy Granola Bars – Oats ‘N Honey Food Categories Add Items Manually

Walk Through Scan UPC Number Shopping List Database Nutrition

Nutritional Facts Family Individual Source: http://platform.fatsecret.com/api/

Walk Through Scan UPC Number Shopping List Nutrition Database Budgeting

Budgeting Budget Spending Home On the Go

Budgeting Scanned Food Coupons Scan from Phone

Walk Through Scan UPC Number Shopping List Scan & Plan Nutrition Database Nutrition Budgeting

Design Features Blinking Light Sleep mode Wireless Connectivity

Bill of Materials Per unit cost: $51 Component Material Company Price per unit Wireless Bluetooth Barcode Scanner Plastic Coshine Group Co., Ltd. $48.67 Suction cup (x2) $0.14 Green LED light $0.20 Packaging Cardboard PAC Worldwide $2.46 Per unit cost: $51

App Development Developing App $45,000

Needs Matrix Customer Needs Convenience Family oriented   Customer Needs Convenience Family oriented Spending analysis Nutrition breakdown

Agenda Market Research Engineering & Design Marketing Financials Paul Greenfield Engineering & Design Alex Glass-Hardenbergh Marketing Anna Putelo Financials Danielle Mustin Wrap Up Olya Voronetskaya  

Target Market Ages 25-55

Reaching the Target Market Social Media Print Advertisements Trade Shows Store Tour

Pricing Strategy $61 $225 $51 $113 Profit per Unit Retail Price Cost per Unit $51 Wholesale Price $113 Retail Price $225 Profit per Unit $61

The Plan Phase 1 First 90 Days Phase 2 One Year

The Plan Phase 1 First 90 Days Phase 2 One Year

Phase 1 Gain publicity Inexpensive Easily controlled

Social Media Costs $5 per day to advertise on Facebook Gains about 35 ‘likes’ each day $450 total for first 90 days

Store Tour 15 Stores in 90 Days $150/4 hr Demo

Sales Proof of Concept Give 100 units to each store with demo Projected 20 online sales in first 90 days Make adjustments based on consumer feedback

Website Direct buy option Initial Design Cost: $2,000 Update Cost: $18,000 Maintenance per year: $7,000

Website

The Plan Phase 1 First 90 Days Phase 2 One Year

The Plan Phase 1 First 90 Days Phase 2 One Year

NBC Health and Fitness Expo Phase 2 NBC Health and Fitness Expo Washington D.C. $6,000 Crowd of over 10,000 people

Dauphin County Women’s Expo Phase 2 Dauphin County Women’s Expo Hershey, PA $6,000

Magazine Advertising 2.2 Million Subscribers 800,000 Subscribers

Magazine Advertising Total Readership: 4.5 million

Costs One ad per month in one magazine Full Page $50,000 annually

Distribution 248 Stores 1,475 Stores 11 Stores

Distribution 1,150 Stores 208 Stores 13 Airlines

Sales 108 units per store starting in Q2 > 300 locations 650 website sales in Q2 Increase by 10% each quarter

Average Annual Breakdown Magazine Advertising: $50,000/year In-Store Demos: 3 stores/month $4,500/year Social Media: Facebook ads $5/day ($1,500/year with cap) Website Maintenance $8,000/year Google Adwords $9,000/year $298,000 Annually

Reaching the Target Market Social Media Print Advertisements Store Tour Trade Shows

Agenda Market Research Engineering & Design Marketing Financials Wrap Up   

Two Phase Plan Phase 2 – Full Distribution Phase 1 – Test Run Assuming success in Phase 1, large-production distribution through website & retail Timeframe: 1 year Phase 1 – Test Run Low Production test runs Timeframe: 90 days

Two Phase Plan Phase 2 – Full Distribution Phase 1 – Test Run Assuming success in Phase 1, large-production distribution through website & retail Timeframe: 1 year Phase 1 – Test Run Low Production test runs Timeframe: 90 days

Production Consignment: 300 units 320 unit production run Website Sales: 20 units

Consignment 100 units 100 units

Retail Showcase Margin CoGS $51 Retail commission $113 Scan & Plan Profit $61 $225

Website Selling Price: Scan & Plan Website Website Design Cost: $2,000 Website Selling Price: $225 CoGS: $51 Scan & Plan Profit: $174 $225

Phase 1 Cost Breakdown Total Phase 1 Cost: $42,000

Phase 1 Initial Investment: $42,000 Financials Customer Acquisition Cost $ 10 Customer Lifetime Value $ 68 Phase 1 Initial Investment: $42,000

Phase 2 – Full Distribution Two Phase Plan Phase 2 – Full Distribution Assuming success in Phase 1, large-production distribution through website & retail Timeframe: 1 year Phase 1 – Test Run Low Production test runs Timeframe: 90 days

Distribution: Scan & Plan Website Generates 50% of Sales Website Design Cost: $18,000

Distribution: Scan & Plan Website Generates 50% of Sales Website Design Cost: $18,000 Website Selling Price: $225 CoGS: $51 Scan & Plan Profit: $174 $225

Retail Showcase Margin CoGS $52 Retail commission $113 Scan & Plan Profit $61 Retail Selling Price $225 $225

Fixed Costs

Development $82,000 Development costs Design $10,000 Prototyping $12,000 Market Testing $15,000 Market Research $20,000 App Development 25,000 $82,000

Ramp Up $73,000 Ramp Up costs Website Design $18,000 Website domain $100 Market Introduction -Williams Sonoma - Kitchen Kapers -Bed Bath & Beyond $45,000 $15,000 $10,000 $20,000 Final Testing $73,000

Marketing costs per year Marketing & Support Marketing costs per year Pamphlet advertising $6,500 Google Ad words $9,000 Trade shows $12,000 In-store promotion $4,500 Facebook $1,500 $50,000 Support costs per year App maintenance $9,000 Website management $7,000

Sales Estimates .01% 12 million 1,300 units Q2 Projected Sales Target Market: 12 million .01% 10% Quarterly Growth Q2 Q3 Q4 1,300 units 1,430 units 1,570 units

Cash Flow

Cash Flow Initial Investment: $190,000 Breakeven Point: Q3

Financials $ 10 $ 117 Customer Acquisition Cost Customer $ 10 Customer Lifetime Value $ 117

Agenda Market Research Engineering & Design Marketing Financials   

Acknowledgements Pat J. Costa , Professor Professor Huang, CSE Department Professor Dong, Marketing Department Professor Ehrig, Management Department Professor Dimitrova, Marketing Department Ann Padjen, Lawyer Matt S., Sales Associate at Barcode Inc. Adam B., Salesperson at Bed Bath & Beyond Tony Sanna, Salesperson at H.H. Gregg Anthony, Salesperson at BestBuy Dave, Salesperson at BestBuy Brian, Salesperson at Amazon Melissa Walsh, Teacher Kathryn Bisson, Representative from Zco Corporation Olya Voronetskaya