Ali Al Matrouk

Huda Al Mousa

Khaleefa Al Khaldi

Naser Al Shaibani

Nayef Al Smairi

Noor Al Abdulrazzaq

Saud Al Subaie

July 2, 2012

A Team 5 Presentation

2

Contents

Project and Market Analysis- Need in the Market Place- Positioning Statement- Clear Plan’s Vision- Competition- Market Size

Implementation and Execution- Business Model & Stakeholders- Marketing Strategy: Engaging Critical Stakeholders- High Level Implementation Plan- Budget and Investment Requirements

Investment Request & Structure Concluding Slide Appendix

3

Lack of Info to High School Students: Missed Opportunities & Lost Yrs

250+surveys

20 in-depth interviews with stakeholders:

high school students, parents, & principals

4 Core Problems

Application process

and deadlines

1 in 5 miss a year because misinformed

Low GPA – what’s next?

1/3 surveyed want to know

what to do

Scholarship Options

50% know a little or nothing

about options

Selecting a major

Only 6% speak to a

professional in their field

Government schools don’t have

counsellors.

“I count on my friends for advice” - Student 43%

4

Positioning Statement and Value Proposition“I love it”- Parent

In School Presentation

Events

One on One Counselling

To high school students and recent graduates in Kuwait who plan to go to university, Clear Plan is a modern form of guidance counselling, which proactively offers a one stop shop for easy to understand information about scholarships, admissions, career & major selection, and low GPA graduate options.

Website

CONVENIENT AND ACCURATE FREE – 22 KD

Annual Books

5

Clear Plan’s Vision and Mission

• A Kuwait with Informed and Empowered Students Who Make Smart Choices.

Vision Statement

• Actively provide Kuwaiti students going to college with full admission requirements, scholarship options, major selection information and alternative options in a single location.

Mission Statement

“I want to sign up”- Student

6

CompetitionThe market is underserved, there are a lot of half answers available, which is why 43% of students turn to friends/family for advice and the rest don’t know what to do.

0 20 40 60 80 100 120

-5

-4

-3

-2

-1

0

1

2

3

4

3

5

32

1

Clear Plan

3

3

2

Price

Holistic

High

Low

Strengths

• Challenging to replicate:

•Proactive•Holistic•Convenient

• Ecosystem

Weaknesses

• Low Barriers Entry

Opportunities

• Underserved market

• Substitutes: compliment service: source adverts

Threats

• School counsellors

• NUKS

Source: Proprietary Survey

7

Market Size

With over 100,000 high school students in Kuwait growing at 2.15% annually this market is very appealing.

Private Schools

Public Schools

Market Size: 100 k

Private Schools

Public Schools

Focus on key Government Districts in Year 1: 33%Private Schools

Public Schools

Multi Pronged Marketing Strategy20% conversion of certain grades

10.4 k Students in Year 1

13.2 k Students in Year 2

“5 out of 5!!!” - Principal

Source: Statistics provide by Ministry of Higher Education

8

Business Model & StakeholdersLimited start up costs with a variable cost operational model, and the creation of an ecosystem that feeds other products.

Community

Faculty

Family

FriendsSponsors

Investors

MoHE

NUKS

Injaaz

College Prep

Suppliers

Dedicated Manager

Distribution

Channels

Product Features

Lucrative Partnershi

psDeal

• Website• Schools• Proprietary

Events• Office• Co’op stores• Languages• Book versions• Alert App• Forum

• Just in time inventory

Website Customer

Community

9

ProductIn School

PresentationBooks Website Events

In Person Counselling

Revenues Year 1

NA KWD 189k KWD 9 k KWD 20 k KWD 6 k

Price - User Free22 KWD (senior)

14 KWD (high school)

Free Free20 KWD per

session

Price - Sponsor NA1,000 KWD Premium Ad

300 KWD

300 KD Premium / Month

80 KWD

1,500 KD Premium500 KD

NA

Place School

SchoolsWebsiteEvent

Selected Coop’s

Website Ballroom Office

Promotion Social media, viral, YouTube, School, EventWebsite, Book , Multilanguage

People - User Students PublicStudents Private

StudentsParents

Counsellors

StudentsParents

Counsellors

Students PublicStudents Private

Students PublicStudents Private

People - Sponsor

NALocal universities - Future Employers

Local test centres - CompetitorsNA

Marketing Strategy: Engaging Critical Stakeholders

Feed each other

Product Versioning Language Needs

Multi Distribution Channels

Max Mkt Share

10

High Level Implementation Plan

A phased implementation plan minimizes our risk, improves our execution effectiveness, and allows us to grow market share while allowing us flexibility.

Phase 1 – Summer (1 month)Establishment

• Find a headquarter location and purchase Equipment.• Hire employees and obtain licenses.

Phase 2 – Summer (2 months)Develop Content

• Complete content for University Book.• Build/Launch website.• First contact with schools.

Fall - Phase 3 (4 months)Execute

• Print and distribute University books.• Launch Marketing Campaign.• Contact Sponsors.• Initiate School Visits.• Event 1.• Complete content for Major Book.

Spring - Phase 4 (3 months)Expand

• Event 2.• Launch Major Book.

• Establishment• Develop contentSummer

• Launch University Book• Midterms• Event 1

Fall

• Launch Major Book• Midterms• Event 2• Finals

Spring

11

Budget and Investment Requirement

Key cost assumptions have been verified by suppliers, with phased implementation mitigates risks.

Cash Flow Positive Yr 1

  Budget & Establishment Costs 

Staff Cost (KWD) Unit (KWD) CostsAccounting 150 1,800Administration 450 5,400Book distribution 300 7,200Counselors 700 33,600Sponsors/marketing 800 9,600IT 800 9,600

67,200

Variable Costs (KWD) Unit (KWD) CostsBook Publication 0.67 5,100 Event 7000 14,000Marketing 5,000

24,100

Fixed Costs (KWD) Unit CostsRent 600 7,200 Office Equipment 3,000 Website Development 7,000 Cars and Transportation 5,000

22,200

  Total Costs   113,500  

• Conservative cost assumptions verified from sources.

• 2 Books developed, each in English and Arabic.

• Team of 10 full time employees.• Counselors take a salary cut in exchange

for an equity stake.• Cashflows generated will cover event

costs, and salaries after the third quarter as well as all costs after the first year.

• No sales in the summer.• Two events held per year with sponsors

covering costs of events.• Distribution network covering 3

governents.

Assumptions

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Investment Request

*Discount rate of 25% and assumes no terminal value.

Clear Plan will be able to achieve high returns from a well defined expansion plan that creates value for the customer and stakeholders, and a dedicated and knowledgeable management team.

First round of investment KD 83,000 – seed money to cover start up costs. Proposed structure increases ROI by lowering costs, and incentivizes employees to accelerated growth.

Shareholder Value 2 Yr NPV* Equity Stake

Cornell Investment KD 83,000 KD 80,167 40%

Founders Stake KD 124,500 KD 120,250 60%

Total KD 207,500 KD 200,417 100%

13

Clear Plan

Need in the Market Place- Lack of information to high school

students results in lost opportunities Clear Plan

- Empowering Kuwaiti Students to Make Smart Choices

Solution- Books, Website, Events, In Person

Consults, School Presentations Competitive advantage

- Proactive, Holistic, Convenient Ecosystem Market Size

- 100,000 high school students growing 2.15% p.a.

Business Model- Book sales primary revenue- Engage all stakeholders to maximize

market share- Advertisement secondary revenue stream- Convert potential competitors into partners

Marketing Strategy- Free – 22 KD- Products promote each other- Product versioning - Multi channel distribution strategy

Budget- Limited start up cost and variable

cost model Implementation Plan

- A phased approach minimizes risks and costs

The Deal- 83,000 KWD for 40% Equity

14

Appendix

15

Management Team

Supplier Relationshi

p

Nayef Al Smairi

Sponsors

Noor Al Abdulrazzaq

Finance

Saud Al Subaie

IT

??

We have a strong founding team with diverse strengths – minimizing start up costs because of willingness to work for equity.

School Relationship

Operations

Ali Al Matrouk

Strategy

Huda Al Mousa

Event Management

Khaleefa Al Khaldi

Marketing

Sponsors

Naser Al Shaibani

16

Financials

Income Statement                    Revenues Q1 Q2 Q3 Q4 Year 1 Q12 Q23 Q34 Q45 Year 2

University Book 0 62,368 43,658 18,711 124,737 0 82,486 57,740 24,746 164,972Publics School 0 36,493 25,545 10,948 72,987 0 55,835 39,084 16,750 111,670Private School 0 25,875 18,113 7,763 51,750 0 26,651 18,656 7,995 53,303

Major Book 0 0 27,907 41,860 69,767 0 25,723 8,574 25,723 60,020Publics School 0 0 11,107 16,660 27,767 0 12,745 4,248 12,745 29,738Private School 0 0 16,800 25,200 42,000 0 12,978 4,326 12,978 30,282

Total Book Revenues 0 62,368 71,565 60,571 194,503 0 108,209 66,315 50,469 224,992Book Advertising 0 9,000 0 0 9,000 0 9,000 0 0 9,000Web Advertising 2,280 2,280 2,280 2,280 9,120 2,280 2,280 2,280 2,280 9,120Personal Counseling 0 2,000 2,000 2,000 6,000 0 2,000 2,000 2,000 6,000Event Sponsorship 0 10,000 0 10,000 20,000 0 10,000 0 10,000 20,000Total Revenues 2,280 85,648 75,845 74,851 238,623 2,280 131,489 70,595 64,749 269,112

Costs & Expenses                    Variable Costs

University Book 0 1,817 1,272 545 3,634 0 2,403 1,682 721 4,806Major Book 0 0 1,336 2,003 3,339 0 1,231 410 1,231 2,872Events Costs 0 3,000 0 3,000 6,000 0 3,000 0 3,000 6,000Staff Costs 15,000 16,800 16,800 16,800 65,400 18,900 18,900 18,900 18,900 75,600Prop Events 0 4,000 0 4,000 8,000 0 4,000 0 4,000 8,000Marketing 0 2,500 1,000 1,500 5,000 1,500 1,000 1,500 4,000

Fixed Costs 0 0Rent 1,800 1,800 1,800 1,800 7,200 1,800 1,800 1,800 1,800 7,200Office Equipment 3,000 0 0 0 3,000 0 0 0 0 0Website Development 4,500 2,500 0 0 7,000 0 0 0 0 0Cars and Transportation 5,000 0 0 0 5,000 0 0 0 0 0Total Costs 29,300 32,417 22,207 29,648 113,572 22,200 32,334 24,292 29,652 108,478

Net Profit -27,020 53,232 53,637 45,202 125,051 -19,920 99,155 46,302 35,097 160,634

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Financials

Balance Sheet                    AssetsCash 51,556 104,056 160,300 204,417 204,417 182,405 283,242 330,533 365,630 365,630 Inventory 4,424 5,156 2,548 3,634 3,634 5,726 4,044 3,055 3,055 3,055 Office Equipment (written off) - - - - - - - - - - Cars and Transportation (written off) - - - - - - - - - - Total Assets 55,980 109,212 162,849 208,051 208,051 188,131 287,286 333,588 368,685 368,685

EquityCapital 83,000 83,000 83,000 83,000 83,000 83,000 83,000 83,000 83,000 83,000 Retained Earnings (27,020) 26,212 79,849 125,051 125,051 105,131 204,286 250,588 285,685 285,685 Total Equity 55,980 109,212 162,849 208,051 208,051 188,131 287,286 333,588 368,685 368,685

Cash Flow StatementCFONet Income (27,020) 53,232 53,637 45,202 125,051 (19,920) 99,155 46,302 35,097 160,634 (Increase) Decrease in Supplies (4,424) (732) 2,607 (1,086) (3,634) (2,092) 1,682 989 - 579 Total CFO (31,444) 52,500 56,245 44,117 121,417 (22,012) 100,837 47,291 35,097 161,213

CFI(Included in CFO)

CFFCapital Injection 83,000 - - - 83,000 - - - - - Total CFF 83,000 - - - 83,000 - - - - - Net Change in Cash 51,556 52,500 56,245 44,117 204,417 (22,012) 100,837 47,291 35,097 161,213

Beginning Cash - 51,556 104,056 160,300 - 204,417 182,405 283,242 330,533 204,417 Ending Cash 51,556 104,056 160,300 204,417 204,417 182,405 283,242 330,533 365,630 365,630

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