Flair Business Plan

7/25/2019 Flair Business Plan

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STRATEGIC BUSINESS PLAN


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E X E C U T I V E S U M M A RY

B u s i n e s s O v e rv i e w 8M i s s i o n S t a t e m e n t 9V i s i o n S t a t e me n t 9Co re Va l u e s 1 0

B U S I N E S S D E S C R I P T I O N

Co mp e t i t o r P r o f i l i n g 1 2

SWOT Ana l y s i s 1 3C o m p e t it o r S u m m a r y 1 4

COMPET IT IVE ANALYS IS

C u s t o m e r D e m a n d 1 6C u s t o m e r P r o f i l i n g 1 7

P R O D U C T M A R K E T R E S E A R C H

L e a d e r s h i p R o l e s 1 9P e r s o n n e l 2 0

M A N AG E M E N T T E A M P L A N

B e t a M a r k et i n g 2 2F i n a l M a r k e t i n g 2 3M A R K E T I N G P L A N

Reve n ue & W e b Co s t s 2 5O p e r at i n g E x p e n s e s 2 6F i n a n c i a l S u m m a r y 2 7

A p p e n d i c e s 2 9Re fe re nce s 3 1

F I N A N C I A L P L A N

NOTES

B u s i n e s s 4Co mp e t i t i o n 4M a r k et R e s e a r c h 4M a n a g e m e n t 5M a r k e t i n g 5F i n a n c e 6


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3f la i r . com , INC . STRATEGIC BUS I NESS PLAN

C h a p t e r

1

EXECUTIVE SUMMARY


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1 Bus i ness Flair.com, Inc. will create the first Rewards Based Online Video Sharing Platorm. Flair will be a web-based organization that will

aim to provide the Internet community with high quality user-submitted video content.

1 Compet it ion

81.9% 8.8% .1%% o Online Video

Sharing Market

Video Sharing Site

1 Market Research

69.6

90.2

114

135

156

169176

183

52.3

2003 2004 2005 2006 2007 2008 2009 2010 2011

US Online Video Viewers (Millions)

Percent by Age Group of YouTube Users

57.8%

20.7%

19.1%

2.4%20-3513-1935-60

60+


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1 Management

1 Marketing

CEO CMO Lead Product Manager

Web Developers Web Designer

Founders

Employees

Chynna Fry

Company CheerleaderEnsures Communication

Final Decision Maker

Chari Redwine

Head o MarketingBuilds Relationships with Advertisers

Innovates Ad Campains

Develops Back-End InteracesDevelops in Redis and Mongo3+ Years Working Experience

BS in Computer Science

Develops Front-End InteracesHas a Spectacular PortolioVast echnical Knowledge

BS in Graphic Design

Kirby Kohlmorgen

Head o Web Developers and DesignersSite Feature Creator

echnology Coordinator

For first 6-12 months Flair will be an invitationonly beta. All invitations will be distributed

through Pay With a weet.

Afer the beta period, the Pay With a weet invitationwill be shutdown and advertising will shif exclusively to

advertising space on Google and Facebook.


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1 F i nance

Revenue

Web CostsGross Profit

Gross $ per video

$0$0$0$0

$182,500$60,000

$122,500$.0034

$547,500$139,200$408,300

$.0037

Gross ProfitOperating Expenses

Net Profit

$0$263,140$263,140

$122,500$253,140$130,640

$408,300$253,140$155,160

$.0044

$.0026

30 50 100 250 500 25001000 5000 10000

Year One Year wo Ex.1 Year wo Ex.2


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C h a p t e r

2 BUSINESS DESCRIPTION


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2 Bus iness Overv iew

Flair.com, Inc. will create the first Rewards Based Online Video Sharing Platorm. Flair will be a web-based organization that

will aim to provide the Internet community with high quality user-submitted video content. Flair recognizes the inancy o videosharing and how it is one o the most rapidly growing industries on the Internet, and Flair intends to capitalize on this industry. ypi-

cal video sharing sites like Youube only provide their users with the video sharing service, but Flair intends to draw its users with the

incentive o rewards, while at the same time generating higher content-quality videos through the same incentive.

Flairs actual site will be very similar in interace to that o its competitors. Flair will have two different types o users: producers

and consumers. Producers produce the video content that drive the sites interactions, where as consumers view, rate, and share videos

across Flairs site as well as social networks. What makes Flair unique is its ranking and reward systems. Te site will allow users to rank

each video watched by giving the video a Flair Rating, an equivalent to a one to five star rating, see Appendix A. Video producers willbe able to win prizes or receiving flair.

Flair also intends to be one o the most effective video sharing sites. Users will access the site by signing in with either their

Facebook or witter login, see Appendix B. Tis would have several advantages over a typical login. Firstly, both Facebook and witter,

particularly Facebook, can provide inormation about the user to Flair. Inormation such as email, age, sex, location, etc. will allow Flair

to know more about the people visiting the site, and what videos they are watching. Secondly, Facebook can also provide what each

user has liked on Facebook. Tis will allow Flair to more effectively recommend videos to each user. Tirdly, we will be able to tell

our advertising clients more about the people that are interacting with their advertisements. Finally, the ease o using an existing login

versus creating another username and password or the user to remember benefits the user.

Money will be generated by selling video advertising packages to companies. Companies will be charged CPM (cost per thou-

sand) in terms o video views. Tis cost will also be prepackaged a number o rewards that the advertiser will give away. Advertisers

will determine the prizes, and more ofen than not the rewards will be discounts on products by the advertiser. An example would be 6

months ree o a Netflix subscription. Tis way the advertiser spends less money and promotes their product at the same time.


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2 Miss ion Statement

2 Vis ion Statement

Our mission is to provide users with an inrastructure where users can create acommunity o video content producers and consumers, and where these users can

be rewarded with real prizes or their efforts and their high quality video content.

Within three to five years Flair aims change the video sharing market place, and be

the leader in this new market o Rewards Based Online Video Sharing.


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2 Core Values

Placing the users experience beore all other endeavors.

Encouraging the growth o a positive user based community.

Promoting the pursuit o individual talent.

Using only user submitted videos.

Supplying users with quality video content.

Keeping our service ree o charge or users.

Creating a positive user environment or all ages.

Using analytics and metrics to ensure effectiveness in user interace and product development.

Working innovatively with advertisers.


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C h a p t e r

3 COMPETITIVE ANALYSIS


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3 Competitor Prof i l i ng

Flairs competition or the online video sharing market can be distilled down to three companies: Youube.com, Vimeo.com, and

Viddler.com. Each o the online sites have been profiled according to three categories: description, strengths, and weaknesses. Flair be-

lieves that its strengths are able to provide were these other companies have ailed.

Description

Strengths

Weaknesses

Youube is an online video sharing sitethat allows anyone around the world to

upload, view, and share videos.

Vimeo is an online video sharing sitegeared towards indie filmmakers and

more creative video content generators.

Viddler is an online video sharing site orbrands and other businesses.

Youubes service is 100% ree to use.

Youube currently maintains 82% o allonline video sharing.

Viddler has ound a niche in brand ad-vertising purely on their site.

No actual website advertisements.

Vimeo offers its video viewingree o charge.

Offers HD streaming

Poor video content ar exceeds qualityvideo content.

Video consumers ar out weighvideo producers.

Limits users to 500MBs o videodata per week.

Charges users or premiumupload service.

Viddler ocuses only on brands andbusinesses.

Charges users or upload service.


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Opportunities

Treats

Strengths

Weaknesses

3 SWOT Anal ys i s

Flair is a new idea in the young market ovideo sharing websites.

Flair gains its edge by providing users withphysical rewards or their video content.

I Flair is not popular, advertisers will notpay or advertising space on the website.

Flair enters as a small competitor in the-market going against Youube.

Barriers to entry and exit are ew.

Flair will grow with the demands o itsuser community.

Competitors who already maintain a largeportion o the market could quickly inno-

vate towards a reward-based model as well.

Flairs Internet based inrastructureallows or it to be easily scalable.

Te actual service is ree to the user.

Flair has a limited budget.

Tere are many substitutes such asYouube, Vimeo, etc.

Te Internet is a large, young, andworld-wide market.

A downward economy should notnegatively impact demand.

Users could find ways to game thesystem, and make the video sharing

competition unair.

Flair is 100% user driven, thereore theuser is in control o their experience.

Will take six to twelve monthsto build the site.

New businesses are entering the online

market successully.

Limiting staff while iterating innova-tion and site development.


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3 Compet itor Summary

In terms o popularity and overall site usage Youube with over 80%o the market share is the obvious leader, see appendix C. Entry into thiscurrent market will be difficult, but Flair eels that it will be able to lever-age its reward system to draw users. Te intention o having higher qual-ity content as well as content that is dynamically adjusted to each userwill be main leverage points.


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C h a p t e r

4 PRODUCT MARKET RESEARCH


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4 Customer Demand

Te demand or online video sharing has streadily inceased over the years. In October o 2009 there were 11 bil-

lion videos streams watched by 139 million unique users last month in the U.S., which represents growth o 24.8% and

11.3% respectively compared with September 2008 (Sysomos). Youube alone has 1.2 billion video views each day as o

2009 (echCrunch). Currently, in 2011, there are 183 million online internet video viewers, more that a 300% increase

rom 2003 (Hybridsem). Not only is there a market or uploading, watching, and sharing videos online, but there is also

a market or achievement based reward systems. Kiip.com, ounded only a little more that a year ago has already ormed

a network o 15 millions users or its iPhone based game reward system (Kiip). With Kiip users are rewarded with real

rewards or their achievements on iPhone based games. Kiip also just recently, as o April o 2011, recieved 4 million dol-

lars o seed money or the companies startup (CrunchBase).

Kiip Users (Millions)

0

3

6

9

12

15

7/10 10/10 1/11 4/10 7/10 11/11

69.6

90.2

114

135

156

169176

183

52.3

2003 2004 2005 2006 2007 2008 2009 2010 2011

US Online Video Viewers (Millions)


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4 Customer Prof i l i ng

Te Internet is a worldwide market; this causes there to be a large and varying

demographic or online video sharing. However, within this varying demographic

there remains to be a dominating age in which video sharing and consuming is

most popular. 78.5 percent o the users on Youube are between the ages 13-35.

Marketing will be directed toward this demographic to maximise Flairs site usage

and minimize wasteul spending on advertising to a group that is not interested inFlairs services.

Percent by Age Group of YouTube Users

57.8%

20.7%

19.1%

2.4%20-35

13-19

35-60

60+

Percent by Gender of YouTube Users

58.3%

41.7%

Male

Female


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C h a p t e r

5 MANAGEMENT TEAM PLAN


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5 Leadersh ip Ro les Flairs management team will consist o three lead positions o management; Chie Executive Officer, Chie Marketing Officer, and Lead Product Manager.

Each management position will be in charge o a small team o 2-3 employees.

Te Chie Executive Officer, Chynna Fry, will oversee all aspects o the company. It is her responsibility to make sure that everyone is happy

and doing their job as effectively as possible. Chynna will have weekly meetings with the other lead officers to ensure that everyone is on the

same page and working towards the same goals. She will also be the director o employment at Flair, and will be doing all o the hiring. She

will ollow the overall growth o the company. In a way, Chynna will be Flairs cheerleader, going out and making connections with clients,

investors, and users. Chynna will have final decision over product design, employment, and all other company decisions.

Te Chie Marketing Officer, Chari Redwine, will be in charge o all o Flairs advertising. It is Charis responsibility to lead Flairs mar-

keting team. Advertising is the sole revenue producer or Flair; thereore Chair holds one o the most vital management positions. It is her job

to pursue new advertising clients as well as maintain relationships with current clients. Chari will work one-on-one with each client to ensure

that they are happy, and that all o their needs are being met. Chair will build real relationships with each client and will be requently asking

or their input on Flairs product development to ensure that the product best suits their needs.

Te Lead Product Manager, Kirby Kohlmorgen, will be in charge o all Flairs product development. Its is Kirbys job to work with both sitedevelopers and designers, and make sure that communication between the two groups is constantly achieved. Kirby will measure the usage o

the site and the eatures, and will ensure that Flairs eatures are being utilized by all o the users, and that they ulfill the users needs. He will

have serious input on all o Flairs eatures, and will make sure that each eature is user-riendly, advertiser-riendly, and cost effective.


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5 Personnel

Once Flair gets its unding the hiring process will begin. Tree people will be hired whenthe company starts.

wo web developers will be hired to create the back-end or Flair. Teir job will requrire

them to have a swiss army knie o coding and development skills. Tese skills will range rom

programing in systems such as Redis, Hadoop, and Mongo to solving geospatial problems to

developing an effective video recommendation engine. We will require that each developer have3+ years working experience will a 1 million plus user system, and that they have at least a BS in

Computer Science or the equivalent.

Te third person hired will be a web designer. Te designers job will be to make the ront-

end o the site visually appealing while at the same time orming a layout that is user riendly.

Te designer will have to be able to proficently communicate with the two web developers. Tis

requires that the designer have a good knowledge o how Flairs back-end system works. We will

require that the designer provide a portolio o work. Tis protolio will weigh very heavily in the

hiring process. We will also require that they have a BS in Graphic Design or the equivalent.


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C h a p t e r

6 MARKETING PLAN


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6Beta Marketin g

For first 6-12 months Flair will be an invitation only beta. All invitations will

be distributed through Pay With a weet. Pay With a weet is simple social pay-

ment system where one gains access to a service by tweeting an advertisement or

that service. Te exclusivity o an invitation only service will drive more people to

sign up or the service. Tis will cause a snowball effect o signups because each

added user would have advertised Flair to all o their ollowers on witter. Tis is a

simple, yet effective way or Flair to reely advertise. Te beta will allow us to build

up a user-base and content database, and at the same time allow us to receive valu-

able eedback. Tis eedback will allow us to tweak the site until all o the eaturesare ready or a ull site launch making the site available to everyone.


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6 F ina l Ma rket ing

Afer the beta period, the Pay With a weet invitation will be shutdown andadvertising will shif exclusively to advertising space on Google and Facebook.

Google and Facebook will be the only mediums or advertising because o their

more effective advertising model. Both Google and Facebook support the most e-

ective adverting platorms. With Google we can speciy keyword sponsored search

results. Keywords like video sharing, Youube, and Flair will be bought through

Google and every time someone googles any o those keywords Flair will be the top

search result. With Facebook we will be able to specifically target our target demo-

graphic o tech savvy males and emales between the ages o 13 and 30. We will be

able to not only advertise within our demographic, but also will be able to filter ouradvertisements to only hit people who like other video sharing services like You-

ube, Vimeo, and Viddler.


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C h a p t e r

7 FINANCIAL PLAN


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Te only revenue producer or Flair is advertising revenue. Flair has decided on a CPM method or charing

advertising space. Afer research was done a $5 CPM rate was determined to be the industry average or online videoadvertisments. Flairs website will be hosted through Amazon Cloud Services. With Amazon, Flair is only charged or

the data that is streamed to the user, a chart with their pricing can be seen in Appendix D. Financially, one thing going

against Flair is the act that the first ull year o operation no revenue will be produced, because that year will be spent

developing the site. Below is the first two years o revenue and web costs, the second year shows two differing senarios

the demonstrate Flairs scalability and viewership requirements.

7 Revenue & Web Costs

Revenue

WebCosts

G

rossProfit


Site VisitorsVideos per Visit

otal VideosCPM

Advertising Revenue

Video Size

erabytes StreamedStreaming Costs

RevenueWeb Costs

Gross Profit

Gross $ per video

010

0$5.00$0.00

.02GB

0B$0

$0$0$0

$0

$182,500$60,000

$122,500

$.0034

$547,500$139,200$408,300

$.0037

.02GB

730B$60,000

.02GB

2,190B$139,200

3,650,000 (10,000 daily)10

36,500,000$5.00

$182,500

7,300,00 (30,000 daily)10

10,950,000$5.00

$547,500


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OperatingExpenses


EmployeesCost per Employee

Salary Expenses

Gross ProfitOperating Expenses

Net Profit

LeaseUtilities

Office SuppliesBranding Legal Fees

otal Operating Expenses

Loan Amount

ermInterest Rate

otal Loan Costs

6$30,000

$180,000

$0$263,140$263,140

$18,000$8,400$9,600

$10,000$263,140

$450,000

20 Years5.5%

$34,308

$450,000

20 Years5.5%

$34,308

$450,000

20 Years5.5%

$34,308

$18,000$8,400$9,600

$0$253,140

$18,000$8,400$9,600

$0$253,140

6$30,000

$180,000

$122,500$253,140$130,640

6$30,000

$180,000

$408,300$253,140$155,160

7 Operat ing Expenses


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7 F inanc ia l Summary

As demonstrated by the varying viewership in year 2, the amount o Flair users will

be directly proportional to revenue. Flair has decided to pay each employee $30,000 orthe first 3 years o existence. Afer those 3 years both pay and staff size will increase ac-cording to site traffic. Along with the $30,000 each employee will receive real equity inthe company in the orm o stocks. Each new employee will receive approxiametly 5%o the company. Below is a graph demonstrating Flairs scalibiliy.

$.0044

$.0026

30 50 100 250 500 25001000 5000 10000


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C h a p t e r

8 NOTES


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8 Append ices

Flair.com

Appendix A

Appendix B


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Appendix C

Appendix D


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31f la i r com , INC STRATEGIC BUS I NESS PLAN

8 References

Works Cited

Inc., Sysomos. In-depth Statistics on Online Video Sharing and Engagement - Part I. Social Media Monitoring ools

or Business by Sysomos. Web. 28 Oct. 2011. .

Kiip | CrunchBase Profile. CrunchBase, Te Free ech Company Database. Web. 28 Oct. 2011. .

Kiip About. Kiip, a New Model. Real Rewards or Virtual Achievements. Web. 28 Oct. 2011. .

List o Video Sharing Sites and Impact o Video Marketing Orange County SEO | Arizona SEO Experts. Orange

County SEO, PPC, Social Media & Video Marketing Consulting Services - Rank Better | HybridSEM.com. Web.

28 Oct. 2011. .

Youube Video Streams op 1.2 Billion/Day. echCrunch. echCrunch, 9 June 2009. Web. 28 Oct. 2011. .

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