2. The Problem
Olya Voronetskaya

3. The Problem
Olya Voronetskaya

4. The Problem
Olya Voronetskaya

5. The Problem
Olya Voronetskaya

6. The Problem
Olya Voronetskaya

7. The Problem
Olya Voronetskaya

8. Agenda Market Research Engineering & Design Marketing Financials
Wrap Up

9. Field Research

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

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

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

13. 76% said an app would be useful
Survey Results
Ages 25-55
76% said an app would be useful

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

15. 92% shop at least once a week
Survey Results
Ages 25-55
92% shop at least once a week

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

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

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

19. $299 annually with Amazon Fresh membership
Current Solutions
Amazon Dash
$299 annually with Amazon Fresh membership

20. Current Solutions
“Out of Milk” App
FREE

21. Current Solutions
“Grocery IQ” App
FREE

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

23. Market Gap

24. 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

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

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

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

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

30. Solution - App
Grocery list
Health
Budgeting

31. Walk Through
Scan

32. Scan
Eat
Scan
Throw Away

33. Walk Through
Scan
UPC Number

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

35. Walk Through
Scan
UPC Number
Shopping List
Database

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

37. Walk Through
Scan
UPC Number
Shopping List
Database
Nutrition

38. Nutritional Facts Family Individual
Source:

39. Walk Through Scan UPC Number Shopping List Nutrition Database
Budgeting

40. Budgeting
Budget Spending
Home On the Go

41. Budgeting
Scanned Food
Coupons
Scan from Phone

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

43. Design Features
Blinking Light
Sleep mode
Wireless Connectivity

44. 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

45. App Development
Developing App
$45,000

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

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

48. Target Market
Ages 25-55

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

50. 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

51. The Plan
Phase 1
First 90 Days
Phase 2
One Year

52. The Plan
Phase 1
First 90 Days
Phase 2
One Year

53. Phase 1
Gain publicity
Inexpensive
Easily controlled

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

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

57. 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

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

59. Website

60. The Plan
Phase 1
First 90 Days
Phase 2
One Year

61. The Plan
Phase 1
First 90 Days
Phase 2
One Year

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

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

64. Magazine Advertising 2.2 Million Subscribers 800,000 Subscribers

65. Magazine Advertising
Total Readership:
4.5 million

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

67. Distribution
248 Stores
1,475 Stores
11 Stores

68. Distribution
1,150 Stores
208 Stores
13 Airlines

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

70. 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

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

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

73. 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

74. 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

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

76. Consignment
100 units
100 units

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

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

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

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

81. 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

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

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

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

85. Fixed Costs

86. 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

87. 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

88. 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

89. 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

90. Cash Flow

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

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

93. Agenda Market Research Engineering & Design Marketing Financials   

99. 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