Post on 27-May-2015
Ying Wang (Lead)
Yu Lei (PI)
Mike Wisniewski (Mentor)
Explosive Detection
NSF / ICORP Program
NSF / ICORP
Presentation Outline
• Show Canvas: Old and New• Here’s What We Did/Found
– Show demo slide– Marketing: build demand creation budget and forecast – Customer acquisition cost – Value Proposition – Customer lifetime value– Channel incentives
• Here’s What We Are Going to Do/Going Forward
NSF / ICORP
New Canvas (10/25)
Cheap
Partner’s distribution channels
IP
Manufacture of machine
Production Sensing materials
Wider spectrum
Production
Large scale
Reliable
Easy to use
Facilities
Chemicals
Profit Explosives Detection/CleanupOrganizations (Development Initiative Limited)
Non-profitOrganizations (HALO)
Flir
Smith Detection
Proved Changes/New Hypothesis
Demo
Training
Dedicate Personal Assistance
Field Test
Direct Sale
NSF / ICORP
New Canvas (11/01)
Cheap
Partner’s distribution channels
IP
Manufacture of machine
Production Sensing materials
Wider spectrum
Production
Large scale
Reliable
Easy to use
Facilities
Chemicals
Profit Explosives Detection/CleanupOrganizations (Development Initiative Limited)
Non-profitOrganizations (HALO)
Flir
Smith Detection
Proved Changes/New Hypothesis
Demo
Training
Dedicate Personal Assistance
Field Test
Direct Sale
Sensitivity
NSF / ICORP
Prototype Demo
• Explosive vapor
• Explosive contaminated hand-print
• Buried explosives
Clean Handprint Contaminated Handprint
RDXPETNTNT TetrylTNB HMX TATP
100
ng
10
ng
1
µg
1
ng
NSF / ICORP
Marketing Campaign
• Public relations (Increase brand awareness)
• Ask customers/partners for referrals (Quality leads)
• Offer humanitarian landmine mapping (Materials)
- Journal publications
- Conference presentations (AIChE, Minneapolis, MN, 2011)
- UConn news (helped to gain Smiths Detection lead)
- Free samples for small areas in developing countries who can not afford
- Prototype demo
- Using the results of the field test
NSF / ICORP
Demand Creation
- Public relations: $5,000 (long-term impact, organic growth)
- Demo and field test: $14,000 (short-term impact)
- Free samples: $11,000 (2000 sq m2)
- Publishing will educate research academics (long-term impact)
- Demo will build credibility (short-term impact)
- Good PR and communication by helping dev. countries
• Budget
• Forecast
NSF / ICORP
Customer Acquisition Cost
• Total customer acquisition expense: $30,000
• Number of new customers: 6
• Per customer acquisition cost: $5,000 (year -1)
NSF / ICORP
Value Proposition Focus
• Market type hypotheses: Resegmented market• Our customers may come from those existing markets:
• The compelling needs of those customers:
• The compelling features of our products (Value Proposition):
- Metal detector- Trained animals: dogs, rats, etc- Surface penetrating radar
- Reduce false alarms- Expand further than use of current techniques, cover more area- Reduce cost
- Sensitivity- Large scale- Low cost
NSF / ICORP
Customer Lifetime Value (LTV) with High Efficiency
Acquisition Year Second Year Third Year
Customers 6 4 3
Retention Rate 65% 75% 80%
Orders per Year 1 2 2
Avg Order Size 1 sq km2 5 sq km2 10 sq km2
Total Revenue $ 24 M $ 160 M $ 240 M
Costs 70% 65% 65%
Cost of Sales $ 16.8 M $ 104 M $ 156 M
Acquisition/person $ 5,000 $ 2,000 $ 2,000
Marketing Costs $ 30,000 $ 8,000 $ 8,000
Total Costs $ 16,830,000 $ 104,008,000 $ 156,008,000
Gross Profit $ 7,170,000 $ 55,992,000 $ 83,992,000
Cumulative Profit $ 7,170,000 $ 63,162,000 $ 147,154,000
Customer LTV $ 1.12 M $ 10 M $ 24 M
http://www.dbmarketing.com/articles/Art251a.htm
NSF / ICORP
Channel Incentives
• Our Product extends existing revenues (such as dogs, metal detectors, and radars) for the channels.
• Channel strategy:
- Build relations with our partners and distributors
- Educate to end-users
- Differentiate from competitions
- Gather valuable customer data
- Maintain an ongoing marketing dialog with our channels
NSF / ICORP
Going Forward
• Meet with…
– Customers
– DHS
– Experts in explosive detection area Prof. Timothy M. Swager, MIT Chemistry. He sold explosive detection device > 2000 units to US army with
a unit price ~ $ 50K.
Prof. Michael Accorsi, Director, National Transportation Security Center of Excellence (NTSCOE), University of Connecticut
ALERT (Awareness and Localization of Explosives-Related Threats), Department of Homeland Security Center of Excellence, Northeastern University
Center of Excellence for Explosives Detection, Mitigation and Response, Energetics Laboratory, Chemistry Department, University of Rhode Island
Dr. Paul Ragsdale, Science advisor of US Department of Homeland Security. We have sent our briefing slides and request to forward our request to the right person in DOD
Follow-up discussion with Dr. Steve Saffin (Operation Manager of “Development Initiative Limited”). He offered real field test sites in Africa to us.
Face-to-face meeting with Mr. Morris (Director of “Development Initiative Limited”) on this Wedn, Nov. 2nd, at UConn. He would take the flight from Africa and we are going to pick him up at Hartford, CT.
NSF / ICORP
Thank You!