Thanks for coming today, we`re really exciting to be

Transcription

Hello.
Allison Shaw & David Bellona
- Thanks for coming today, we're really exciting to be presenting.
- Hi my name is David Bellona. I've worked in online design and marketing industry for 6 years and within the bicycle industry for
2 years, establishing relationships with government officials, business and community leaders.
- Hi, I'm Allison. I've worked in the design field for 5 years, and been a daily bike rider since I sold my car in 2006.
- We're here today to show you a revolutionary new system for how people connect with and protect their bicycles
We believe that there aren't enough people on bikes, and want to fix that. There are a lot of reasons why people don't ride, but
two barriers that we think are really important are theft and lack of community.
600,000
In the U.S., 600,000 bikes are stolen every year. But right now, most products on the market only address theft prevention - that
is, locks. Recovery methods, like bike registries, don't really get stolen bikes back, they just identify them once they've been
recovered.
At the same time, people are still riding bikes. The people who do ride love it. They want to share it -- share their experience. We
know from sites like Daytum and fitness products like Nike+ (which has over 2.3 million users) that people like tracking stats. But
again, the market is failing people. Right now, riders have two choices: buy an on-bike computer system, with all its expensive
and fragile components, and not be able to share, or buy a cheap iPhone app, with low stat tracking quality, and still not be able
to share. (GRAPHICS)
Our product, Setrabike, address both of these issues.
Setrabike offers a new level of protection against theft.
It's also a simple integrated system that allows cyclists to track, share, and compare the stories of their rides with a larger online
community.
We're able to accomplish this by introducing a device that is equipped with high-fidelity, high-quality GPS and wireless
communication capabilities.
This device will run on a new, unique battery and power management system that is easily integrated into the frame of most
bicycles.
Accompanying the device, customers will receive a free smartphone app and access to an online portal. (GRAPHICS)
During a ride, Setrabike gathers statistics like speed, mileage, route, altitude, and pace. Users can access and broadcast this
information on the go through the smartphone app, or at home via the web portal. When the rider gets to their destination, they
can simply lock up the way they normally do.
If they come back and find their bike stolen, they can track their bike's location, again through their smartphone or the online
portal, similar to the Find My iPhone service. This information can then be shared with police in order to begin the recovery
process.
Daily Rider
Weekend Warrior
- So who's going to buy this? Our customers are going to be tech-savvy, into gadgets and social networking, already own
smartphones, and may already use services like Nike+. We are targeting the daily riders and weekend warriors. The majority of
these riders get their gear at speciality bike shops.
- Of the 38 million people who ride their bikes more than twice a year, these two groups make up 6.9 million people, of which
80% also own bike locks.
- So who's going to buy this? Our customers are going to be tech-savvy, into gadgets and social networking, already own
smartphones, and may already use services like Nike+. We are targeting the daily riders and weekend warriors. The majority of
these riders get their gear at speciality bike shops.
- Of the 38 million people who ride their bikes more than twice a year, these two groups make up 6.9 million people, of which
80% also own bike locks.
$5.6 Billion
The US bike industry brought in $5.6 billion dollars in 2009;
Bike Accessories: 35.5% of Market
35% was bike accessories, and half of all bike accessories are purchased in bike specialty shops,
Half of accessories purchased in specialty bike shops:
$980 Million
making our market worth $980 million dollars.
$130mil
1/3 of lock owning daily riders and weekend warriors:
1.8 million people
We believe we can realistically reach 1/3 of the lock owning daily riders and weekend warriors, or 1.8 million people. We also
believe that we can eventually convert half of those to customers, positioning our product to capture $130 million of the bicycle
accessory market.
Competition
We aren't the only ones competing for this customer base. While we are not directly competing with another all-in-one security
and tracking device, we will compete against lock manufacturers, other bike computer products, as well as apps and fitness
tracking portals.
$10-$160
- In the bike lock market, companies offer a tiered lines of lock and chain products.
- Within the bicycle coputer market, the competition is split into two categories: non-GPS and GPS-enabled. Our more direct
competition lies in the GPS enabled market. These devices offer a wide variety of advanced statistics tracking, but overwhelm
users with confusing functioning modes and busy visual displays.
- Recently, smaller players in the market have evolved in the form of battery intensive, low-fidelity smartphone applications with
limited social interactions. There are over 350 bike specific apps.
$10-$160
$75-$650
$10-$160
$75-$650
$0 -$5.99
MapMyRide
up to $20/month
Within the social realm, online products struggle to create a seamless user experience between the bicycle ride and the sharing of
information.
Apps
Bike Computers
low fidelity, some social
high fidelity, some social
???
Existing Locks
prevention
Bike Registries
identification
- Our competitors have yet to create a seamless platform paired with an easy-to-use bicycle computer with high battery life.
Additionally, there has been little innovation in the category of theft prevention beyond physical lock and bike registries. In short,
customer needs are not being addressed by the current market.
- Setrabike fills the gaps currently missing in the market. Our device is easy to install, and requires no extra sensors because it is
placed directly into the bike frame. Its interface is simple and accessible both during and after rides. And plainly stated, our bike
recovery feature is unprecendented. By being first to the market, we will establish brand equity and create a sticky online
community which will help us retain users over time. Over time, competitors will want to partner with us, rather than compete,
because of customer loyalty and high switching costs for those customers.
Clearly, we are creating a lot of value. Here's how we're going capture it:
Apps
low fidelity, some social
Existing Locks
prevention
Bike Computers
high fidelity, some social
Bike Registries
identification
- Our competitors have yet to create a seamless platform paired with an easy-to-use bicycle computer with high battery life.
Additionally, there has been little innovation in the category of theft prevention beyond physical lock and bike registries. In short,
customer needs are not being addressed by the current market.
- Setrabike fills the gaps currently missing in the market. Our device is easy to install, and requires no extra sensors because it is
placed directly into the bike frame. Its interface is simple and accessible both during and after rides. And plainly stated, our bike
recovery feature is unprecendented. By being first to the market, we will establish brand equity and create a sticky online
community which will help us retain users over time. Over time, competitors will want to partner with us, rather than compete,
because of customer loyalty and high switching costs for those customers.
Clearly, we are creating a lot of value. Here's how we're going capture it:
$175 retail
$25 activation
$5 subscription
We are selling Setrabike as a standalone, add-on bicycle component. At retail, it will cost $175, plus a one time $25 activation
fee, and a $5 monthly subscription fee.
$88.4mil
$62.3mil profit
$56.8mil
$33.7mil
$4.3mil
-$8mil
$16.4mil
-$14mil
-$23.1mil
-$24.3mil
-$26.1mil
Our initial production run will be 30,000 units at a per unit cost of $100. Including our operational costs, true per unit cost will
be $270. In the second year, we will increase production to 100,000 units, ramping up to 300,000 units by year 5.
You can see from the chart that our revenues are increasing fairly rapidly. This is due to our continued revenue from the
subscription fees which will generate income for as long as the units remain in market.
We may even improve these numbers. Over the next few years, we hope to see a continued rise in bicycle ridership and personal
statistic tracking and sharing. With this, we will capture customers outside of our current target audience.
$
While we stand behind our numbers, certain factors could limit our product growth. First and foremost is investment in the
development of a new battery and improved power management. Because we are new to the game, this will expensive and
maintanence costs could also become a factor, namely customer service and increased distribution and marketing costs.
Some external growth risk factors are ridership: if it decreases over the next five years, demand for our product will go down.
Additionally, over time, we will have to worry about market saturation of our product.
In order to achieve our revenue goals and stave off decreases in growth, we need to hire and retain the best team possible -another factor which could increase our projected costs.
4 employees
20 employees
(over five years)
With this product, we are starting an electronics company, which means we will need vice presidents of product, technology,
business development, and marketing. Their teams will be comprised of industrial, electrical, and embedded systems engineers,
designers of all stripes, and experts who will help sell and manage our product offerings. Our team will start small with 4
employees, growing to 20 by the fifth year.
Because cyclists are so avid about spreading the love, we'll be able to attract passionate people who are dedicated to the cause of
cycling. We'll also be paying competitive salaries and providing benefits.
With the numbers explained, let's talk about how we get people to buy Setrabike.
Our experience in the cycling world will help us establish authenticity with passionate early adopters, who will become our
greatest marketing asset. In year one and two of sales, we will concentrate on a fragmented sales approach, focusing on high
volume specialty bike shops in the largest bike cities. We will also invest in trade shows, event sponsorship, and some traditional
marketing channels. We also will reach our customers online, not just through blogs, but through Facebook and Twitter
integration with our online community.
As we scale production over the years, we will continue with the strategy we followed previously, but also increase our spending
on traditional marketing. We will partner with wholesale distributors to gain footholds in larger, concentrated retail settings like
REI and City Sports.
We expect that people will buy these units not just with new bike purchases, but also to retrofit their existing bikes.
At the core, we have a quality tracking and communication
module with long lasting battery life that easily pairs with
smartphone and web based applications.
At the core, we have a quality tracking and communication module with long lasting battery life that easily pairs with smartphone
and web based applications.
This will allow us to easily mitigate any situation in which a competitor introduces a similar product. We will be able to license our
technology for implementations in areas like asset, package, and personal tracking. We can also sell retail developer kits for
customers to use in other areas. These extra income streams will also help mitigate any overexpenditures in research and
development, if our sales goals are not met, or if we begin losing money due to market saturation. We could also extend our
target into the municipal and commercial fleet markets, such as bike police and bike rental companies.
Furthermore, if competition proves too strong, and we can't establish brand equity, we can partner with bike manufacturers who
share similar target markets, and mimic the XM radio sales model of integration into new purchases.
Thanks.
Thanks again for your time, and thanks for finding out about Setrabike.

Thanks for coming today, we`re really exciting to be

Transcription

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