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!