The tempbox presentation session 10

The Tempbox29.11.2013

Agenda1. First part:

a. Value chain

b. Key partners

c. Key ressources

2. MVP and costing

3. From business model 1.0 to 2.0a. Business model 1.0

b. Hypothesis validations

c. Business model 2.0

4. Marketing the product (internet marketing)


a. Strategic Positioning, The Value chain & Processes

b. Key partners

c. Key ressources

2. MVP and costing





First part

Strategic Positioning

Key elements MVP and costing From B.M 1.0 to 2.0 Marketing & numbers

The TempBox ’s Value Chain

Inbound logistics

-Contracted- China

Operations

-Contracted-China

Outbound logistics

-Transport Contracted via

UPS/DHL-warehouse insourced

Marketing & Sales

Service

Firm infrastructure: General management, planning, strategy, finance, legal, accounting etc.

Human Resource Management: Selection, rewards, development, relations

Technology development: Know-how, procedures, input

Procurement: Management of partnerships and contracts

MA

RG

IN

Pri

mary

acti

viti

es

Su

pp

ort

acti

viti

es

Key elements MVP and costing From B.M 1.0 to 2.0 The numbersKey elements MVP and costing From B.M 1.0 to 2.0 Marketing & numbers

ProcessesC

ust

om

er

Produced & Delivered to Port

Shipped Via Garland to Warehouse

Product enters Warehouse and Logged Via IT

inventory System

Order Placed online

Advertise through social

media and website

Processed & checked

against quality

PackagedChecked out

of warehouse

via IT system

S&D monitored,

order placed when stock

reaches inventory

ordering point

Order collected by UPS and shipped to customer

Receives confirmation of order

Receives Order

Makes complaint if faulty

Order Received at warehouse

& confirmed

Sales Support deals with complaints and fixes problems

Develop marketing materials

appropriate to target market

Scans online for customer feedback & suggestionsM

ark

eti

ng

Ware

hou

se3

rd

Part

y

intro


Marketing the Brand

Management

Marketing Department

Advertising company

Solicit Marketing Campaign

Plan the marketing strategy

Is there a marketing company

to outsource?

Create the Campaign

Create the campaign

Approve the Campaign

Finalise the campaign

No

Yes

no yes1


Warehouse Stocking &Inventory

Market Research to predict Demand

Place order with Suppliers

Order received at warehouse

and checked in via IT system

Order shipped via Garland to

warehouse

Quality of products suitable for dispatch?

Stock manager monitors IT systems to check inventory levels and reorder period

Collected by Ups for customer delivery

Stored until order received & processed for dispatch

Supplier contacted and faulty goods replaced

yes

Given amount produced and delivered to shipping port

No

Mark

eti

ng

Ware

hou

se

Su

pp

lier

s

2


Customer Orders

Customer places order

Order received at Warehouse

Processed and

checked if meets Quality

measures?

Product checked out and UPS collects for delivery

Customer receives product

Does not

Meets

Management made aware of problems & dealt with accordingly

Product sent back for improvement

Confirmation of order received

Satisfied

Not satisfied

Refund offered

Man

ag

em

en

tW

are

hou

se

Cu

stom

er

3


Customer Complaints

Customer files complaint

Order received at Warehouse

Complaint Process with after sale support

Placed Order => see customer order process

YesOffer replacement

Offer Refund

Satisfied

No

Cu

stom

er

Ware

hou

se

Mark

eti

ng

&A

fter

sale

s su

pp

ort

4


Customer Satisfied

Key resources• Patent

– Protect the tecnical and optical design if possible

– European Patent Office (Patent Search and Application)

– Detemine whether patenting our Design is possible

• Vision & the Brand – Differentiation from unbranded lunchboxes

– Strong brand focus on “Heatability”

– Create a brand and awareness for it

• Financing

• Human resources– Marketing & sales

– Management

– Finance & Accounting


Marketing

Apply

Key resources - Vision

« We want to change how and what people eat on the move – We want to give them the freedom of choice – We want to give them an enjoyable food experience »


Key resources - Organizational Chart


Key resources – Position Forms.Position Relations managerMain Goals - Max efficiency and co-creation to gain knowledge

- Prominent partners Credibility

Strat. Tasks Identify suppliers and partners - Identify alternative partners: Benchmark- Measure performance (alt. Subordinate)- Knowledge and learning through co-creation- Evaluate subordinates

Tactical Tasks Manage relationships - Develop and maintain through contact - Intelink processes- Participate to learn and co-create

Guides Relationship management tools - Information technology - Databases - Research tools


Key resources – Position Forms..Position AccountantMain Goals To keep the finances and the books of the company in order

Strategic Tasks Ensure the company has enough working capital to stay afloatEnsure the company is making enough profit to survive

Tactical Tasks Carry out profit and loss accounts, balance sheets and Cash flow maps. Uncover areas of the company that need attention and pass on to CEO for further consideration

Guides International accounting standards Country specific rules and guidelines Balance sheets and tools for accounting


Key resources – Position Forms…Position Warehousing Processor Main Goals Packaging order to satisfy delivery company and customer

needs, to ensure packaging fits with brand values.

Strategic Tasks Ensure that product meets the customers desired quality standards

Tactical Tasks Hold and prepare orders for specific customer, package product, including delivery address and hand over to UPS delivery service to be dispatched

Guides Follow IT system and order forms to package and prepare postage. Follow company boxing criteria


Key resources – Position Forms….Position Stock/Production ManagerMain Goals To ensure there is enough supply to satisfy demand at all

times

Strategic Tasks Analyse demand and predict how stocked the warehouse must be, ensuring that there is enough inventory in the warehouse.

Tactical Tasks Monitor IT systems to check supply and demand levels

Guides Use Past Sales, Analyse trends, implement minimum and maximum stocking levels


Key resources – Position Forms…..Position Marketing and Selling AssistantMain Goals To raise the awareness of the TempBox & increase its sales

Strategic Tasks To build and position the TempBox brand as a high-end brand to add value to the product

Tactical Tasks Promote the product offer in the target markets, manage the website and social media accounts, updating online advertising materials and designing and organizing the distribution of advertising leaflets in high traffic target areas. Deal with customer complaints and resolve problems

Guides Use defined target market criteria to guide marketing towards. Follow complaint process steps to resolve complaints


Key Partners & Relationships• Production Company– Trusted Supplier Relationship

– Economies of Scale – Single Source Supply

• Transportation supplier

• Cooperative Organizations & Businesses– Business Development, Increase Sales, Marketing

activities




b. Key partners

c. Key ressources

2. MVP and costing






MVP & Costing

MVP


Costing

Dollars

Tempbox Per unit for 1000 units Box 1.65 Heating Mat 6.98 Silicone Top 1.64 AC adaptor 2.35 Insulator 0.17 Car charger 0.83 Customised Box 0.3 Total 13.92

pre shipping Total in euros10.2590

4Euros

Shipping costs Freight 19

Air rate 2.3 Terminal 27 Fuel tax 1.25 Validation 85 Anti theft insurance 0.15 Dispatch 135 Carrier 0.025 Traffic 35 Document validation 0.055 Insurance 0.0875 Delivery 0.03075 Storage 35 AMS 0.0055 Delivery 30.75 After Shipping Total 366.8375 Per Unit 0.366838 Total $ 17.7363

Total after shipping € 10.623 Total € 13.07

• Re-costed Tempbox using shipping instead of air freight as primary transportation method

•Decreased Costs by: €2.45

•Previously resourced suppliers to receive lower production costs


Princing• Minimum Price = Direct costs (10.63)

+ Manufacturer Margin (30%) + VAT (23%) = 18.67

• Direct costs (10.63) + Manufacturer Margin (30%) + Retailer Margin (35%) + VAT (23%)= 28.72

• Aim to maintain 30% manufacturer margin

• Must also consider advertising, warehousing, selling costs etc.

• Priced between that of substitutes (Thermal Lunch Box and Microwave)

• Considering survey responses and landing pages

• First production limited, via retailer: face working capital problems > high scale financing.

• Begin on-line, if establish a Best Seller will expand to retail.

• Price: 29.99

costselling price

to distribution

manufacturer margin

distributor sells

distributor margin

public pricin

g

retailer margin

public pricing with vat

cost euros/ unit

10.63 15.18 30.00% 15.18 0.00 23.35 0.35 28.72

12.85 18.36 30.00% 18.36 0.00 28.24 0.35 35.33




b. Key partners

c. Key ressources

2. MVP and costing






From 1.0 to 2.0


Business model 1.0

People on the move

Students

Workers Business people

Self service

Co-creation

Production Desing

Webpage

PatentBrand Human:

-Sales-Management

Financing

Out

contract

productio

n Choice Freedom: -Save, Health and Preferred

Heating

lunch

Flexible + portable =

Convenient

Price

35 €

Plugability

Design: sleek and

stylish

Webpage

StreetsalesRetail store

Amazone

Distribution

Distribution Marketing and sales

Marketing Distribution Production

Cooperative

organization

s

Fixed costs- Salary- Rent

Scalabl

e

Key elements MVP and costing From B.M 1.0 to 2.0 The numbersKey elements MVP and costing From B.M 1.0 to 2.0 Marketing &

numbers

Hypothesis validation – Customer segments

Targeted customers: Workers, Students & People on the move

Test: Interviews and Surveys

Results: Male students are not too attracted to the product

Key elements MVP and costing From B.M 1.0 to 2.0 The numbers

Hypothesis validation – Value Proposition

Hypothesis Testing Validation Results

Many workers & student face a lack of food choice

Survey >75% agreewe have 74,5% agreed for the moment.

the tempbox is a convenient product

SurveyConcluded from other questions

Validated from other questions

People on the go appreciate the ability to bring their own food

Survey >60% agree

65% students, 35% professionals /workers answered the survey

Both when people are AT their work place, or On the go, ‘bringing food from home is the second most chosen answer.

People are likely to buy the product

Survey, Interviews

>60%

7% extremely likely 40% very likely 30% mod likely Positive interviews


Hypothesis validation – Value Proposition

Hypothesis Testing Validation Results survey 1 Results survey 2

Cleanability influences the purchase decision

Survey

>60% highly

>35% moderatly

N/A Moderatly

Heatability influence Purchase decision

Survey>60% = more than expected - highly

Highly

Style/Design influences the purchase decision

Survey Moderatly Moderatly

Multi-Plugability the purchase decision Survey No - % under validation No - % under validation

Money Saved influence the purchase decision

Survey No - % under validation No - % under validation

Time Saved Influence the purchase decision

Survey No - % under validation No - % under validation


numbers

Hypothesis validation – Channels

‘Promotion through street sales and pop up shops will raise awareness of the product’

Removed from the business plan


numbers

Hypothesis validation – Revenue Streams

Hypothesis Test Validation Results

Customers are willing to pay 30 euros

Subtitutes price – survey > 75% positive answers

>93% should be priced over normal lunch boxesPrice average suggested in survey = 26 €

Affiliate Marketing Empirical Data YES

We’ll sell complementary products for The TempBox and take a comission on it.

Advertising Empirical Data YES

Adds on Community forum + Developer blog (see next slide)

Intermediaries (retailers, distributors)

Too expensive (see costing)

YES -


Hypothesis validation – Revenue Streams Advertising Revenue from:• Creating an Email List & Newsletter include

– News from the community forum,

– News from the founder’s blog

– Special discounds

– Special offers

– Brand events & information

• Pay-Per-Click adds (mainly in the forum & founder’s blog)

• CPM (Cost-Per-Mil impressions) Rates depends on website views, targetted market, website type, websit design,

position of the add. We expect a 5-8$ CPM rate (based on food & lifestyle websites Data) If we have 100,000 views per month => 100 CPM units x 5-8$ = 500-800$ per

month

• Direct Banner Advertising on main websiteKey elements MVP and costing From B.M 1.0 to 2.0 The numbers

Business model 1.0

People on the move

Students

-Male ?

Workers Business people

Self service

Co-creation

Production

Desing

Webpage

PatentBrand

Human:-Sales-Management

Financing

Out

contract

productio

nChoice

Freedom: -Save money, Health and Preferred

Heating

lunch Flexible + Washable+portable =

Convenient

Price

29,99

€Plugabilit

y Website

(online store)

Streetsales

Retail store

Amazone

Distribution

Distribution(warehouse) Marketing &

sales

Marketing Distribution Production

Cooperative

organization

s

Fixed costs- Salary- Rent

Scalable


Reliability:Warrantee

Certifications Design:

sleek and stylish

Managing

relationships and

partners

Direct sales

(Fixed price)

Advertisi

ng

Recap of the changes• Value proposition

- save money, not emphasized by target –

- Esay to clean more important –

- Reliablity and credibility added

- Price 29.99 €

• Segment:

- Male students negative, but might be followers

• Channels:

- No streetsales due to credibility and reliability -

- No retailers (for now) due to costs -

• Key activities: Managing relationships and partners

• Revenue Streams– Advertising on

website, forum, blog


Students

-Male ?

Website

(online store)

Streetsales

Retail store

Amazone

Choice Freedom: -Save money, Health and

PreferredFlexible +

Easy to clean+

portable = Convenient

Price

29,99

€ Reliability:WarranteeCertification

s

Managing

relationships and

partners

Advertising



b. Key partners

c. Key ressources




3. MVP and costing



WebsitesFacebook

Scoop.it

Twitter


numbers

More WebsitesLanding page The TempBox websiteOur Blog


numbers

Numbers• 110 facebook likes

• 267 unique visitors to our landing page – 4,13 % Conversions (email)

• Our blog: 620 views from 20 different countries


numbers

More Numbers• A total of 75 persons took our surveys


numbers

Others• All our presentations available on SlideShare

• Posts on Hacker News & Startup Circle


numbers

Thank You!

The tempbox presentation session 10

Business

Transcript of The tempbox presentation session 10