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					                           SnapTrip

                        Business Plan



Professor Albert V. Bruno
Leavey School of Business
MKTG 566 Small Business Entrepreneurship
June 3, 2009



Deepankar Das
Richard Hung
Dylan Salisbury
Swetha Sirupa
Table of Contents

   I.               Industry, Company, and Products ......................................................................................................1
          1.         The Company .................................................................................................................... 1
          2.         Products............................................................................................................................. 1
               a)       Breakthrough User Experience .................................................................................... 1
               b)       Differentiating Technology .......................................................................................... 1
               c)       Exploration Content ..................................................................................................... 2
               d)       Community Content ..................................................................................................... 3
               e)       Unique Offerings .......................................................................................................... 4
               f)       Social Networks ........................................................................................................... 5
               g)       Itinerary Building ......................................................................................................... 6
               h)       Customer Support ......................................................................................................... 7
          3.         The Industry ...................................................................................................................... 7
          4.         Critical Success Factors .................................................................................................... 8
          5.         Structural Analysis of the Industry ................................................................................... 9
          6.         Description of Industry Evolution................................................................................... 10
   II.              Market Research and Analysis ......................................................................................................... 11
          1.         Customer Segments, Buyer Decision Making Issues ..................................................... 11
               a)       Chinese ....................................................................................................................... 12
               b)       Filipino ....................................................................................................................... 12
               c)       Indian Americans ....................................................................................................... 13
          2.         Target Market Size and Trends ....................................................................................... 13
          3.         Competition..................................................................................................................... 15
               a)       Zicasso........................................................................................................................ 16
               b)       Expedia ....................................................................................................................... 16
               c)       Travelocity and Orbitz................................................................................................ 16
               d)       Sabre ........................................................................................................................... 16
               e)       Orbitz.......................................................................................................................... 17
               f)       Priceline...................................................................................................................... 17
               g)       Contiki ........................................................................................................................ 17
               h)       Summary .................................................................................................................... 18
          4.         Estimate Market Share and Sales .................................................................................... 18
          5.         Ongoing Market Evaluation ............................................................................................ 19
   III.             Marketing Plan ........................................................................................................................................ 19
          1.         Overall Marketing Strategy ............................................................................................. 19
          2.         Target Market Definition ................................................................................................ 20
          3.         Market Positioning .......................................................................................................... 20
          4.         Competitive Advantage................................................................................................... 21
          5.         Pricing (Economic Value to Customer) .......................................................................... 22
          6.         Channel Plan ................................................................................................................... 23
          7.         Marketing Communications Plan.................................................................................... 24
          8.         Sales Plan To Generate First Six Months Of Sales ......................................................... 25
          9.         Service and Warranty Policies ........................................................................................ 26
          10.        Advertising and Promotion Plans ................................................................................... 27
          11.        Marketing Budget ........................................................................................................... 28
   IV.              Development Plan.................................................................................................................................. 29
          1.         Development Status And Tasks ...................................................................................... 30
          2.         Difficulties and Risks ...................................................................................................... 31
          3.         Product Improvement and New Products ....................................................................... 31
          4.         Cost Management Plan ................................................................................................... 32
   V.               Operations Plan ...................................................................................................................................... 32
          1.         Geographical Location .................................................................................................... 32
          2.         Facilities And Improvement............................................................................................ 33
          3.         Strategy And Plans .......................................................................................................... 33
VI.         Management Team ................................................................................................................................ 33
          1. Organization .................................................................................................................... 33
          2. Key Management Personnel: .......................................................................................... 34
         a)     Deepankar Das, VP of R&D ...................................................................................... 34
         b)     Richard Hung, CEO ................................................................................................... 34
         c)     Swetha Sirupa, VP of Sales and Marketing................................................................ 35
      3.     Management Compensation and Ownership .................................................................. 35
      4.     Advisory Board ............................................................................................................... 36
         a)     Dylan Salisbury, Core Technology Advisor & Representative of Management team
 on Board of Directors ......................................................................................................................... 36
         b)     Galen Li, Travel Industry Veteran, Advisor, and Board of Directors ........................ 36
VII.        Critical Risks and Problems ............................................................................................................... 37
      1.     Risk Of Delay In Establishing Partnerships .................................................................... 37
      2.     Risk That Certain Features Have Cost Or Time Overrun ............................................... 37
      3.     Risk That Customer Service Quality Is Insufficient ....................................................... 37
      4.     Risk That Patent Protection Is Not Strong ...................................................................... 38
      5.     Risk Of Poor Quality Travel Content.............................................................................. 38
      6.     Risk Of Difficulty Establishing Trust With Initial Customers ........................................ 38
VIII.       The Financial Plan ................................................................................................................................. 38
      1.     Profit and Loss Forecasts ................................................................................................ 38
      2.     Pro Forma Cash Flow Analysis ...................................................................................... 39
      3.     Pro Forma Balance Sheets .............................................................................................. 40
      4.     Break-Even Analysis....................................................................................................... 40
IX.         Proposed Company Offering ............................................................................................................. 40
      1.     Desired Financing ........................................................................................................... 40
      2.     Securities Offering .......................................................................................................... 41
      3.     Capitalization .................................................................................................................. 42
      4.     Use of Funds ................................................................................................................... 42
      5.     Exit Strategy and Plans ................................................................................................... 43
Exhibit 1. Scenario Analysis ................................................................................................................................... 44
Exhibit 2. Travel Correlation Engine Diagram ............................................................................................... 46
Exhibit 3. Porter’s Five Forces .............................................................................................................................. 47
Exhibit 4. Survey Results ......................................................................................................................................... 48
Exhibit 5. Market Size Calculations ..................................................................................................................... 49
Exhibit 6. Competitive Set ....................................................................................................................................... 50
Exhibit 7. Competitive Matrix................................................................................................................................ 51
Exhibit 8. Estimated Market Share and Revenues ........................................................................................ 52
Exhibit 9. Positioning Statement .......................................................................................................................... 53
Exhibit 10. SnapTrip Message Map........................................................................................................................ 54
Exhibit 11. Buyer Utility Map for SnapTrip ........................................................................................................ 55
Exhibit 12. Economic Value Added by SnapTrip .............................................................................................. 56
Exhibit 13. Marketing, Sales &Advertising Budget ......................................................................................... 57
Exhibit 14. Development milestones .................................................................................................................... 61
Exhibit 15. Product development and operations costs ............................................................................... 62
Exhibit 16. Income Statements (Monthly for the first Year) ....................................................................... 63
Exhibit 17. Income Statements (Quarterly) ....................................................................................................... 64
Exhibit 18. Cash Flow Statements (Monthly) .................................................................................................... 65
Exhibit 19. Cash Flow Statements (Quarterly) ................................................................................................. 66
Exhibit 20. Balance Sheet (Annual) ....................................................................................................................... 67
Exhibit 21. Breakeven Analysis ............................................................................................................................... 67
  I.    Industry, Company, and Products

         1. The Company

        Four Silicon Valley professionals from the Santa Clara University’s Leavey School of Business

founded SnapTrip in Spring 2009. SnapTrip is a unique travel site that helps people plan international

multi-destination trips in one stop. Our value proposition is for our customers to save time from planning

by using our unique and comprehensive travel software. The target markets of SnapTrip are select groups

of upper middle class income Asian American families in the Bay Area, who make international trips. As

the industry consolidates, this valuable customer base will make us an attractive acquisition target.


         2. Products

        SnapTrip operates a Web site that customers can use to easily research and book multi-destination

trips. The key differentiator from competitive Web sites is the ease in which the user can combine all the

elements of a complete trip (air, hotel, transit, and attractions) into a customized package. The site

contains several types of content. Each section has links that will allow the user to start booking a trip

related to the content being viewed.


            a) Breakthrough User Experience

        Exhibit 1 shows how a typical customer can save 85% of the total time required to research, plan,

and book an international multi-destination trip. A SnapTrip customer will also have a better experience

because he or she has all the information needed to customize the perfect trip, and can then easily book it.


            b) Differentiating Technology

        The technology behind SnapTrip’s product is the Travel Correlation Engine (TCE). This

software produces an ideal experience for the customer during the exploration, planning, and booking

process. The software combines real-time inputs from the user with a rich knowledge base of travel

information using artificial intelligence algorithms. The resulting itineraries and other suggestions can


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then be combined with rich collections of media sources that contain deep information about each site and

attraction such as videos, maps, and virtual reality tours. Exhibit 2 shows the components of the TCE

system.

          We expect the TCE software to receive patent protection, providing a technical barrier to entry as

well as a key differentiator from current competitors.


              c) Exploration Content

          In the exploration sections of the Web site, customers can find detailed information on travel

destinations and accommodations. The content is organized in multiple ways to allow each customer to

find the information most important to his or her trip planning. Throughout the Web site, a customer can

easily start planning an itinerary from any page. For example, from a page showing a video about a

cultural event in Madrid, a customer can quickly begin an itinerary for a trip to southern Europe including

a stay in Madrid.

          By region: The user may browse sites related to a region of interest, such as Western Europe or

Pacific Rim. From here the user will be able to view information on specific sites and attractions, or start

to view trip blogs and travel videos from other customers who have visited the region. See below for

more information about these community features. At any point the user can start creating their own trip

based including the region or site being viewed.

          By interest or affinity: The user may browse for vacation ideas related to themes such as great

museums, shopper’s paradise, and castles and palaces. Again, the user can start booking a trip, read more

detail about the individual sites and attractions, or view content uploaded by other users.

          By language: All of the Web site is available in Mandarin, to support a marketing trial targeting

the Chinese community in California. From the home page or any page of the site, the user can click a

link to switch to the Mandarin version of the Web site.

          Video content: In each section, the Web site includes professional travel videos to capture the

user’s interest and help them learn about the sites and attractions. SnapTrip plans to license videos


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produced by television networks such as the Travel Channel, National Geographic, Discovery Channel

and the Food Network. These videos will contain the branding of the television network as a way to

maintain credibility and authority of the content. We expect that television networks will be willing to

license some material for a low fee because the material also serves to promote the television network. If

such arrangements cannot be made, the videos may be licensed from a company specializing in

distributing stock travel videos such as TravelVideo.tv or FlyingMonk.com.


              d) Community Content

          In the community sections of the Web site, current and potential customers interact to share

stories and ideas about travel. Current customers can write trip blogs to tell about their trip and highlight

what they did or didn’t like. SnapTrip will “seed” this section of the Web site by hiring freelance travel

writers to write about their travel experience and respond to questions about travel destinations posed by

prospective customers.

          Customers can also upload short travel videos, either as part of travel blogs or individually. For

example, a customer who took a video of the view from a river cruise in Sweden can upload the video to a

section of the SnapTrip web page about Scandanavian attractions. Other users can comment on the video.

This provides a way for prospective customers to learn about an attraction and decide whether to include

it as part of their trip, even if the original customer who uploaded the video did not write a detailed

review.

          Many prospective customers will find value in this section of the Web site. After reading a trip

blog, a customer can ask more detailed questions about the experience which may be answered by the

original poster, other customers, or SnapTrip staff. From a trip blog Web page, a customer can begin a

new itinerary which closely matches the trip described in the blog post. In an open forum, customer can

ask for general trip planning advice.

          Users who regularly post questions or answers in the community section can develop a positive

reputation on the site. The site will allow all of a customer’s writings to be viewed in a central page,


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along with a rating system to award the best contributors. For example, a silver star may be awarded to a

contributor who writes 50 posts or receives 5 recommendations from other readers. This system will

encourage active contributors to remain loyal to the SnapTrip web site.

        The community section will not be strictly isolated from other parts of the web site. For example,

a page containing a video of a travel destination may also contain comments and questions from

customers.


             e) Unique Offerings

        SnapTrip offers some attractions and features that cannot be found on most other travel booking

web sites:

        Foreign language tour guides: Personal guides can be hired to assist the travel party for any

portion of a trip. Initially, guides will be available who speak Mandarin, Cantonese, Hindi, and Tagalog

(Filipino). SnapTrip contracts for these services with existing service providers in the most frequently

visited countries. These services are already available to be hired directly at some destinations, but

SnapTrip is unique among competitors by offering them to the customers most likely to use the service

and by allowing these services to be booked as part of a customized travel package.

        Sites that do not otherwise have online booking: Some hotels and outside major cities do not

have electronic booking systems that ensure availability. In these situations, TCE presents the customer

with a lodging choice that is highly likely to be available based on current and historical data. TCE also

recommends such lodging when alternative arrangements are also likely to be available. After the user

books the trip on SnapTrip, SnapTrip customer service staff will finalize the arrangement with the hotel.

The user experiences the convenience of booking the entire itinerary at once, which is not available from

competitors when such lodging is chosen. The algorithms and data in the TCE software ensure that this is

a smooth process most of the time.

        Events: SnapTrip presents the customer with information on relevant events such as concerts and

cultural events. TCE software suggests the events most likely to capture the customer’s interest without


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overwhelming the customer with a plethora of data. If a customer is interested, SnapTrip suggests ways

to easily change the customer’s itinerary to include these events. Using the community features of the

web site, customers can enter detailed information about local events that fellow travelers may be

interested in.

        Detailed maps: TCE software uses with third party mapping services to provide the user with

interactive maps showing the entire trip as it is being planned. Users can use a map view to learn about

their destinations and find nearby attractions. Other sites that are highly recommended by TCE software

or by other SnapTrip users will be highlighted, and an interested customer can easily learn more about the

site by viewing detailed information or community-generated content.

        Virtual reality: TCE software also uses third party systems to provide virtual reality views of

many spots on the travel itinerary. A customer can have the experience of “flying through” an itinerary,

zooming between destinations with aerial views that combine geographic images and virtual reality

techniques. If a particular attraction or city has been incorporated into a virtual reality Web site such as

Second Life, images from the virtual reality site can be presented to the user and the sites can link back

and forth to each other. This provides a highly differentiated user experience which will help reinforce

SnapTrip’s image as a travel service that is differentiated by its technological leadership.


             f) Social Networks

        The SnapTrip Web site will integrate with social networking sites such as Facebook and Twitter.

Any viewer of the site who also has an account with a social networking site will be asked permission to

share non-confidential travel information with friends. Users’ friends will start to see messages on social

network sites such as the following:

        Swetha Sirupa booked a vacation!       Click here to see where she’s going.

        Richard Hung posted two travel reviews this week!         Click here to read them.

        Deepankar Das asked a question about train service in Europe.           Click here to read it.




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        These messages provide links directly to the SnapTrip site, where the viewer can see small

amounts of the friend’s activity (such as which travel attraction was reviewed), and the viewer will be

encouraged to try SnapTrip as a customer.


            g) Itinerary Building

        SnapTrip’s core technology is its TCE software, described above. When building an itinerary,

this software considers a number of factors provided directly and indirectly by the customer, SnapTrip,

and external sources, to create itineraries that are immediately bookable, profitable for SnapTrip and

highly likely to meet or exceed the customer’s expectations.

        Customer input factors considered by TCE includes as much or as little information as the

customer wants to enter on the web site before viewing an itinerary. This includes factors such as cities to

visit, desired length of stay, preference for luxury or value, preferred brand of hotel, etc. A customer does

not need to provide every possible input. Some customers will want to enter a few items and have an

itinerary created for them to consider. TCE also considers inferred travel preferences that were deduced

from the customer’s previous trips, use of the website, or responses to promotional material.

        When creating an itinerary, TCE also considers the experience of other SnapTrip customers. To

increase customer satisfaction and sales, TCE will try to create itineraries similar to other itineraries that

customers have purchased.

        Finally, TCE considers inventory supply and pricing to build an itinerary that is likely to satisfy

the customer while remaining profitable for SnapTrip. This information may change in real time

throughout the day.

        After an initial itinerary has been selected, TCE helps the user make changes to the itinerary. The

user can request a change such as a longer stay in one city or a different time of day for a train trip, and

TCI will adjust any aspects of the itinerary necessary to ensure that the complete itinerary is practical and

meets the customer’s expected needs.




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        The value provided to the customer is in time savings and assurance that the complex itinerary

will meet all of the customer’s needs. For the relatively simple example of a couple visiting three cities in

Europe, SnapTrip will save seven hours or more of time spent choosing and booking each component of

the trip, as illustrated in Exhibit 1. Although SnapTrip can’t quantify this value directly to every

customer, many customers will see a strong value proposition in SnapTrip’s service.


            h) Customer Support

        Customer service is offered using telephone, e-mail, and web chat. Customer service provides

fast answers to pre-sale questions to encourage sales as well as a single point of contact for problems,

questions, or changes regarding a booked trip.

        During Web chat customer service, a support box pops up in a separate window alongside the

site. A customer service representative is able to view the customer’s browsing session and provide them

specific guidance on the user’s activity, whether to solve a technical problem or to provide travel advice.

        If a user spends a lot of time browsing a particular section, an automated message will appear

inviting the user to “start a web chat with a travel expert.” This is to identify customers who are having

technical difficulties as well as customers who are considering a trip and may make a purchase with a

little encouragement from a support agent.


         3. The Industry

        The global travel services industry is large, but faces significant challenges due to the global

economic climate. The entire travel industry generally faces intense competition, as well as fast and

significant change.

        The travel industry is very seasonal. What the travel industry calls “Leisure travel” is generally

highest in the first, second and some times third calendar quarters as customers plan and book spring,

summer and holiday travel. In the later quarters of 2008, the global economic and financial market

conditions greatly declined which caused great uncertainty for travelers and travel companies.




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        The type of travel which produces the largest spending per traveler occurs from international

travel originating from first-world countries such as the United States. In 2007 spending on international

travel originating from the United States totaled $100.4 billion. 41% of these trips included visits to more

than one destination city; they were multi-destination trips2. Primary research as well as data from the

U.S. Department of Commerce shows that spending per travel party exceeds $2,000.


            4. Critical Success Factors

        Erect barriers to entry around the new product category: As a whole, the travel industry has

low barriers to entry. By differentiating our product from our competitors based on the features and

services that SnapTrip offers, we intend to establish a new product category within the realm of online

travel agencies (OTA) of fully convenient customizable multi-destination trip planning. To achieve

success, SnapTrip must differentiate itself so strongly that competitors cannot easily build comparable

products. The advanced algorithms behind the product serve as one type of barrier, and patent protection

is another. The consumer behavior data gathered from SnapTrip’s users will make the software more

useful and strengthen the technological advantage. Finally, as users contribute from the target market

segments contribute to community content, the community effect will be a further barrier to entry from

new competitors.

        Establish a wide range of partnerships. SnapTrip’s partners hold the actual inventory of travel

services and accommodations that make up an itinerary designed and purchased on SnapTrip. SnapTrip’s

value proposition will be fully realized if many partnerships can be developed allowing for all aspects of

customers’ dream trips to be coordinated and booked on SnapTrip’s web site. The company will rely on

the experience and connections of SnapTrip’s industry expert on its Board of Directors to help ensure that

a stream of partnerships is established early to fuel rich travel offerings to SnapTrip’s customers.




        2
         U.S. Department of Commerce (2007). Profile of U.S. Resident Travelers Visiting Overseas Destinations:
2007 Outbound. http://tinet.ita.doc.gov/outreachpages/download_data_table/2007_Outbound_Profile.pdf


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        Stay on the Leading Edge of Web Technology: SnapTrip needs to possess the latest available

and most efficient technology and techniques. As new technologies are available on the Internet, for

example advanced mapping services, SnapTrip needs the technical ability to include the features on the

SnapTrip web site if the technology can be used to enhance the user experience. SnapTrip does not need

to adopt features without some consideration, but it can lose its status as providing the leading user

experience if larger competitors leapfrog any significant aspect of the user experience. The experience

and dedication of the founding VP of R&D and Technical Advisor will be crucial to helping SnapTrip

with this success factor.


            5. Structural Analysis of the Industry


        Exhibit 3 shows Porter’s analysis of the industry from SnapTrip’s perspective as multi-

destination trip vendor. The threat of new entrants to enter into the travel service industry is high because

barriers to entry in the industry are low and few. Large and small competitors can offer multi-destination

trips with business models that can ramp up quickly, for example by offering package tours.

        Additionally, low barriers to entry in the travel industry as a whole result in a high level of

substitute products available to consumers. Because customers can invest their own time and assemble a

trip from multiple sources, all online travel agencies and direct travel providers constitute substitutes to

some extent. SnapTrip will compete with substitute products by targeting segments that see a value in the

convenience and reliability provided by SnapTrip’s product, and who are therefore more likely to choose

SnapTrip over alternate methods of planning and booking a trip. No other business offers a

comprehensive travel planning experience that plans trips, lets the customer book the trip, and offers

customizable choices. U.S. Government statistics show that 41% of international travelers make multi-

destination trips and 35% of travelers book travel plans online3. The average international traveler from

the US is from the upper-middle class and generally exhibits a busy lifestyle, which should allow for a



        3
            U.S. Department of Commerce (2007).

                                                  9 of 70
preference to save time on making on making plans for trips and a preference to use SnapTrip’s

technology offering. As a result, barriers to entry into SnapTrip’s area of interest of the industry is

moderate, which is higher than the general travel industry and this means that the threat of potential

entrants to compete against SnapTrip is lower compared to “typical” travel companies.

        The industry is particularly sensitive to any economic factors that affect travel tendencies. During

the past two years, economic conditions largely due to the downturn of the mortgage credit industry have

affected the travel industry negatively. Suppliers are dumping travel and tour packages and struggling to

grow profitability. Customers enjoy substitution power as large number of competitors offer similar

products. However, there are only a finite number of airlines and suppliers. The Industry of Travel

Agencies has a high level of concentration with the top four players estimated to account for fewer than

61% of the available market share in 2007.


         6. Description of Industry Evolution

        The travel services industry has been around for a long time and stands as an extremely strong

industry with an estimated generated revenue of $10.3 billion. This is a slight decline compared to an

estimated $10.8 billion in 20081. This estimates a third year of decline, where 2008 showed a real decline

of 3.0% compared to 2007. The global economic recession has affected the industry negatively. However,

since the industry is so huge, there is a large number of high potential opportunities for growth. There is a

trend from travel and tourism oriented business to use their own efforts and websites to offer deals.

Deeply discounted products, services, and packages are being “dumped” by tourism operators when

unused. The practices mentioned above do not assist in positive industry performance. As the overall

travel industry has been affected by the macroeconomic conditions, the market for multi-destination trips

remains strong.

        Online booking for most travel arrangements has been available in developed countries for years,

and the online travel market in the U.S. is thought to be reaching saturation. Customers are comfortable

with using online means for making travel arrangements.


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 II.      Market Research and Analysis

              1. Customer Segments, Buyer Decision Making Issues

          The 2007 report from the office of travel and tourism classifies 31,228,000 U.S resident travelers

visiting overseas destinations. Out of these travelers 25,888,000 make trips that include leisure and

visiting friends and family. 68% of the above category classifies leisure/recreation/holiday as the purpose

of the trip. Also, the average household income of travelers making leisure trips is $109,500. Based on

the demographic data pacific region contributes to 19% of the travel and significant traveling revenues (a

total 6% from San Jose, San Francisco and Oakland) come from the bay area. This is due to the fact that

most of the breadwinners in this region hold a professional or technical degree.

          According to the U.S. Census Bureau, there were 13.1 million Asian Americans in 2007, and this

number will grow to 14.1 million in 2012. Chinese, Filipino, and Asian-Indian groups account for more

than half of all Asians in the U.S. (58.3%).4 Asian Americans are concentrated in the largest U.S. cities,

with 40% of all Asian Americans living in the metropolitan areas around Los Angeles, San Francisco,

New York, and Chicago.5 Asian Americans take longer trips when compared to the average domestic

traveler.

          Majority of Asian-American travel originates in the Pacific West, predominantly in California.

Out of the 6,945,403 M population in the bay area, 21.81 % represent the Asian origin6.

          The general characteristics of these segments are:

                 1. Discretionary spend is available that allows them to plan for leisure trips

                 2. Brand loyalty is high among these customer segments


          4
            MINTEL (2007 October) Asian-American Lifestyles – US. http://0-
academic.mintel.com.sculib.scu.edu/sinatra/oxygen_academic/my_reports/display/id=226629&anchor=atom/display/id=303291

          5
              Asian American in Wikipedia: the Free Encyclopedia. http://en.wikipedia.org/wiki/Asian_American (Accessed 2009 June 2)

           6
             U.S. Censur Bureau (2007) ACS Demographic and Housing Estimates (San Jose-San Francisco-Oakland, CA Combined Statistical
Area). http://factfinder.census.gov/servlet/ADPTable?_bm=y&-context=adp&-qr_name=ACS_2007_3YR_G00_DP3YR5&-ds_name=&-
tree_id=3307&-redoLog=false&-all_geo_types=N&-geo_id=33000US488&-format=&-_lang=en




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              3. Due to the nature of busy schedules, they value the time saved in the other activities.

              4. Tech Savvy

          Three out of ten Asian-Americans take trips that include air transportation. Asian-American

traveling households spend $1,000 or more per trip. Shopping is the favorite activity of Asian-American

travelers. The next most popular trip activities are visiting historical places or museums, pursuing outdoor

recreation, attending cultural events or festivals, and gambling.

          Asian-American household trip includes children under 18 years old. Asian-American traveling

households are headed by those with an average age of 38 years old with a college degree or more.


              a) Chinese

          Chinese Americans are the largest group of all Asian-Americans. Their national origins

encompass four districts: Mainland China, Hong Kong, Taiwan, and Southeast Asia. In addition, they are

separated into two different dialects: Mandarin and Cantonese. Affluent pockets of Chinese Americans

can be found in metropolitan areas such as San Francisco bay area, Los Angeles, Seattle, Chicago and

Dallas.

          Chinese Americans prefer speaking Chinese as their dominant language. They exercise extreme

caution in both business and personal dealings. They are quality and value consciousness and plan for the

long term. They have a strong brand loyalty and prefer personal referrals. To satisfy a Chinese client, one

has to pay attention to personal details and respect the cultural and regional differences.


              b) Filipino

          Filipino Americans are the second largest group of all Asian-Americans. They are highly

educated and they settled in services such as medical, dental and optical fields. They are family oriented,

devotional and they love to travel and party as a group. Majority of Filipino understand English. They

prefer to own status brands and they are receptive to celebrity marketing. They place great emphasis on

personal references. They don’t plan too far ahead and are flexible about travel arrangements.




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              c) Indian Americans

        Indian Americans speak several different Indian languages, but most speak and understand

English pretty well. They are concentrated near the metropolitan cities such as New York, San Francisco,

Chicago and Los Angeles. Asian Indians are highly educated and settled in professional services such as

IT and medicine. They have high regard to preserve their religion, culture and family values. Social

acceptance and self-esteem are an essential part of Indian culture.

        They are value conscious and risk-averse. They follow a slow and thoughtful decision making

process. They adopt popular brands, but not too premium. They depend on personal referrals. They like to

plan ahead.

        Exhibit 4Exhibit 4 provides the summary of target customer requirements based on a survey.

The key decision criteria for the targeting segment include: finding lowest price on airline tickets, finding

lowest price on hotels, save time booking the entire trip, select times for flights easily, an easy to use Web

site, be able to read experiences from other travelers and get alerts for price changes that can save money.

        Customers usually spend anywhere from $750 to $ 3000 or more when they visit at least two

destinations depending on the nature of the travel. The average length of the trip is 7-10 days. Majority of

our customers start planning three to six months before the travel date for planning and reserving the trip.

They usually reach out to OTA (online travel agency) such as Expedia, Travelocity etc. Customers felt

that the current Online Travel Agencies (OTA’s) are not providing customized trips that meet their travel

needs. And, every individual has different preferences and budget. Hence, it is important for SnapTrip to

understand the customer needs and match the human touch that traditional brick and mortar travel

agencies offered as a blessing for customers who are planning multi-destination trips.


         2. Target Market Size and Trends

        Our initial target segments would be the Chinese, Filipino and Asian Indians in the bay area. For

detailed analysis on the size of the targeted Asian American segment in the bay area refer to Exhibit 5.




                                              13 of 70
        Major markets are already in recession and the recovery is expected in early 2010. The

unemployment rate is at 8.9% and federal funds rate is at an all-time low of 0.25%. Some of the key

positives include low commodity prices, ongoing interest-rate cuts, a relatively stable US dollar and a

bottoming US housing market. In the short-term, it is expected that last minute bookings will be strong,

because holidaymakers tend to shy away from early decisions due to uncertainty over the economy. Many

people prefer to take vacations closer to the home. Anyone who aims for success in online travel must be

more than ever in the position of reacting flexibly to short-term changes in demand and offer creative

package deals to lure the opportunistic travelers. The current economic environment has also begun to

impact the vendors. Lower demand could impact the net revenue that OTCs generate from the booking of

vacations.

        Increased usage and familiarity with the internet has driven rapid growth in online penetration of

travel expenditures. The trend is towards technologies that provide cost savings and revenue focused

strategies in the short term. With the focus on revenue projects we expect a shift away from unproven

playing grounds like the mobile and social environments. The social media sites are more suitable for

brand building and long-term brand awareness initiatives than for short-term, ROI-oriented marketing7.

We can expect to see more technologies consolidate, get purchased, or simply disappear this year. In

addition, the growing significance of search and meta-search sites has contributed to the increase in online

marketing costs.

        The traditional leisure travel bookings are generally the highest in the first three quarters as

travelers plan and book their spring, summer and holiday travel. The number of bookings typically

decreases in the fourth quarter. Revenue is typically the lowest in the first quarter and highest in the third

quarter due to delay in revenue recognition.




        7
            http://tourismtechnology.rezgo.com/2009/01/travel-tourism-technology-trends-for-2009.html




                                                          14 of 70
          Selling and marketing expense primarily relates to direct advertising expense, including

television, radio and print spending, as well as traffic generation costs from search engines, internet

portals and our private label and affiliate programs.

          For many years, commissions were 10 percent of the price of plane tickets. But commissions on

airplane tickets have eroded in recent years, first to 5 percent, then to fixed fees of $10 per one-way ticket,

and then to zero for some airlines. Commissions on hotel reservations and car rentals remain at 5 to 10

percent, and commissions on tour packages and cruises can go as high as 20 percent. In addition to

traditional commissions, agencies can earn significant override commissions from travel suppliers based

on the volume of business they do. Industry gross margins range from 65% to 80%. However, significant

price-based competition on travel packages is evident, due to increasing competition and reducing

margins resulting in industry operator consolidation.

          Many potential customers are unsure of the location they wish to reach. There is a real need for a

Web-portal that allows quick planning and reservation of multi-destination trips with optimized itinerary.

Time is a precious commodity. SnapTrip can save the customer time and money, and help to ensure that

they are satisfied with their vacation.


              3. Competition

          The online travel agencies have close to 50% market share in the travel agencies industry8.

Expedia has a market share of 17.5% followed by Priceline, Travelocity and Orbitz with market shares of

7.1 %, 2.6% and 2.4% respectively. Differentiation among the various website offerings has narrowed

dramatically in the past several years, and the travel landscape has grown extremely competitive, with the

need for competitors to generally differentiate their offerings on features other than price. More recently,

the online travel industry has seen the development of alternative business models and methods of

payment for travelers and suppliers, which in some cases place pressure on historical business models.




          8
              IBISWorld (2009 May 15). Travel Agencies in the US – Industry Report. http://0-
www.ibisworld.com.sculib.scu.edu/industry/keycompetitors.aspx?indid=1481

                                                        15 of 70
Intense competition has also led to aggressive marketing spend by the travel suppliers and intermediaries,

and a meaningful reduction in our overall marketing efficiency and operating margins.

         Exhibit 6 provides a snap shot of the competitors for SnapTrip. The traditional OTA focus on

single destination trips and they leave the trip planning to the end-users. It is clearly evident from the

Competitive matrix presented in Exhibit 7 that traditional online travel agencies excel at single

destination trips.


             a) Zicasso

        Zicasso is the only service that directly competes with SnapTrip. However, Zicasso’s business

model is different as it provides a platform for customers and travel merchants. The transactions typically

take a week and Zicasso can’t guarantee customer service. Also, in order to generate sustainable revenues

Zicasso needs to invest for building a large network of travel service providers.


             b) Expedia

        Expedia with its low cost business model achieved significant market share. Expedia remains

focused on the North American market, accounting for 85% of sales in 2007. Expedia has made several

sound acquisitions that enabled the company to host a range of brands, from budget to the luxury end of

the market. Its portfolio consists of brands such as Hotels.com, Hotwire.com, Elong , Egencia,

TripAdvisor and Classic Vacations. These brands enable Expedia to weather the economic downturn.

Expedia relies on search engines for its business. Changes in the pricing or algorithms of these services

could severely impact on the company's revenue.


             c) Travelocity and Orbitz

        These companies follow the Expedia business model, but have relatively low market share.


             d) Sabre

        Sabre (parent brand of Travelocity) has managed to create significant businesses synergies within

its three business segments, Travelocity, Sabre Travel Network and Sabre Airline Solutions through the


                                               16 of 70
offer of unique but, at the same time, highly related products and services. Sabre has successfully

enhanced its presence in emerging markets by entering new business contracts with local travel suppliers

and establishing customer support centers to bring the GDS (Global Distribution System) provider closer

to its customers around the world. Sabre’s strategy is to focus on technological innovations, enhanced

customer service and adapting to cost conscious environment.


            e) Orbitz

        Orbitz focuses on a strategy to improve its service and offerings to consumers by providing the

most information available about their travel plans. Orbitz brand portfolio consists of Cheaptickets.com,

Trip.com and Orbitz.com. Orbitz aims to overcome the on-line leadership of two of the leading travel

retail companies, Travelocity and Expedia. It aims to do this by providing a superior product in terms of

search capability, supported by strong advertising and strategic relationships. Orbitz operates partnerships

with a number of other on-line companies, including meta-search engines such as Sidestep and Kayak, as

well as Yahoo travel.


            f) Priceline

        Priceline allows customers to name their price. Priceline is the best travel site for nabbing deals

on hotels -- particularly for deals on normally high-priced rooms in major cities.ConsumerAffairs.com

notes that consumers have lodged complaints against Priceline for customer service and flights that leave

at odd times or have multiple connections. Thus, Priceline is best at finding cheap airline tickets with just

a few days notice rather than for long-term planning.


            g) Contiki

        Contiki is an established tour operator since the 1960's. Contiki sells packaged tours to adults in

the 18-35 age range who would like to book a trip by themselves or with a friend. Tours are grouped into

three levels: camping, budget, and superior. Contiki addresses some of the "pain points" with trip




                                              17 of 70
planning that SnapTrip identified, but their product is only for young adults who are interested in

complete tours, and who would like to travel as part of a large group.


              h) Summary

        In summary, the competitors for SnapTrip can be grouped in to two types of operators. The

current online travel agencies such as Expedia, Orbitz and Travelocity that provide a wide range of

individual flight, hotel and car rental options but they don’t offer the trip optimization for multi-

destination trips. On the other hand, packaged tour operators such as Zicasso and Contiki offer pre-

planned vacations that save time in trip planning but allow zero customization for travelers. SnapTrip will

combine the best of both groups. OTA customers have low brand loyalty and hence SnapTrip has a good

opportunity to gain customers who plan multi-destination trips from existing agencies.


            4. Estimate Market Share and Sales

        The existing OTA’s typically achieve $3 revenue for each $1 spent on marketing efforts9.

However, SnapTrip would need to spend more on marketing to build a strong brand. In the initial phases,

SnapTrip plans to spend $381,500 on marketing resulting in $1,100,000 revenue for a market share less

than 1% one year after the product launch. After the first year, we expect the marketing dollars to

generate higher revenue. Once the brand awareness is created (after 2 yrs) SnapTrip can generate three

times the marketing spend and start grabbing market share from other established players. SnapTrip will

also increase its marketing budget in the later years to reach larger portion of the targeted Asian American

segments in the Bay Area. Exhibit 8 provides detailed analysis of the market share and revenues

SnapTrip hopes to achieve based on the estimated marketing dollars spent.




        9
          Expedia, Inc. (2009 February 19). Expedia, Inc. Reports Fourth Quarter and Full Year 2008 Results
[Press Release]. http://media.corporate-ir.net/media_files/irol/19/190013/Expedia%20Q4%202008%20Release.pdf


                                               18 of 70
         5. Ongoing Market Evaluation

        It is important for SnapTrip to attract and retain the customer base. We will evaluate the

effectiveness of the advertising campaign in attracting the target audience and translate in to revenues for

SnapTrip. In addition, we will research customer data to identify the repeat customers and their purchase

amounts. As the travelers are looking for a unique experience in planning their trips while avoiding the

time to make plans we would continuously enhance our customer support to deliver the experience.

        SnapTrip will gather data from travel industry reports, macro economic factors, tourism data from

international destinations and other travel partners such as airlines, car rental and hotel providers. This

data will be used to generate forecasts and plan the marketing budgets accordingly. SnapTrip will actively

review marketing activities from competitors and the impact of the marketing spending on their financial

performance since the brand awareness is the key in the travel industry. On the technical front, SnapTrip

will continuously monitor the user interface trends and exceed the industry standard. In addition, we need

to periodically evaluate the optimization of the correlation software that allows the traveler to reserve the

trip to provide distinguished service. We should also expect many me-too competitors offering similar

service for customers requiring multi-destination trip planning. SnapTrip has to continually exceed

customer expectations to retain the market share.

        Once SnapTrip achieves major market share in the Bay Area, SnapTrip will focus on other major

cities such as Los Angeles, New York and Chicago that have higher Asian American population and

similar ethnic segments.



III.    Marketing Plan

         1. Overall Marketing Strategy

        SnapTrip enables efficient multi-destination trip planning. SnapTrip follows a niche strategy and

focus on Asian American market segment starting from San Francisco bay area. SnapTrip’s trip

optimization software will minimize total travel time while maximizing the attractions covered. SnapTrip


                                              19 of 70
will offer knowledgeable customer service representatives along with flexible service and warranty

policies.

        To encourage trials, SnapTrip will offer the search service for free and there are no membership

fees required. SnapTrip will partner with global service providers to secure discounts on car rentals,

hotels and attractions. SnapTrip will apply a 15% mark-up on these services.

        Our prospective customers mentioned that a recommendation from a friend would encourage

them to use our services. Hence, we plan to invest in strategies that create brand awareness through viral

marketing such as Google Keywords and social networking sites. As part of our beta program, we would

ask friends, family and their social networks to use the website and provide their feedback. SnapTrip will

invest in focused mass media such as ethnic radio and print ads in travel magazines. We also plan to

enhance customer adoption by offering “Referral Bonus” and to retain our elite customers we would offer

additional benefits via discounts, reward points.


            2. Target Market Definition

        SnapTrip provides unique value and time savings to affluent travelers planning multi-destination

trips. During the initial phases SnapTrip would exclusively target Asian American ethnic segment. This

focus on a particular segment helps us identify the buyer preferences and tailor our offering. Within the

Asian Americans, SnapTrip identified Chinese, Filipino and Indian Americans to be most attractive sub-

segments because of their similarities in education, population size and family oriented culture.

Specifically, the first few years would focus on San Francisco bay area due to the density of affluent

Asian American population. In later years, SnapTrip will focus on affluent Asian Americans in other

metropolitan cities such as Los Angeles, New York and Chicago.


            3. Market Positioning

        Exhibit 9 provides a detailed positioning statement for SnapTrip. Most of the OTA’s are focused

on delivering the cheapest tickets. SnapTrip will focus on providing customer satisfaction that a dedicated




                                              20 of 70
travel agent would offer. This is achieved by considering the customer preferences, time allotted for the

trip, budget, seasonal factors and points of interest while providing exceptional customer service.

        Asian Americans travel to major cities and they travel as a family including kids. The head of the

household approves the plan based on the total budget, variety of attractions and trip time. Women have a

significant role as they tend to do more of the travel planning in general, particularly when family trips

are considered. SnapTrip’s optimization software that avoids the pain in trip planning will be very

compelling for them. Asian Americans rely heavily on referrals from family and friends. They are also

receptive to celebrity endorsements. Compared to other ethnic segments, Asian Americans have strong

brand loyalty. SnapTrip hopes to gain their trust through its vast knowledge base of destinations, travel

videos and superior customer service. Exhibit 10 has the detailed message map tailored to various

influencers, recommenders, decision makers and approvers in the Asian American segment.


         4. Competitive Advantage

        The superior “SnapTrip Software” allows customers to schedule their trip much more effectively

in a short time compared with traditional agencies. For example, a customer may save more than 10 hours

planning a trip that includes 4 destinations. In addition, SnapTrip provides comprehensive trip research to

make sure customer has detailed knowledge before they start their trip and also connect with other

travelers of similar interest. Exhibit 11 has a detailed buyer utility map that highlights SnapTrip’s points

of differentiation.

        SnapTrip is following a niche strategy focused on Chinese, Filipino & Indian American

customers. We understand their culture and travel preferences. Hence, SnapTrip will have first mover

advantage in offering customized vacation packages. Our focused strategy also enables us to track every

marketing dollar that we spend for this segment.

        Barriers to entry are important because SnapTrip is the only company offering fully customizable

travel packages for multi-destination trips on the World Wide Web. SnapTrip’s advanced software

provides a significant barrier to entry. This software reflects months of work by software experts and


                                              21 of 70
SnapTrip expects to receive patent protection that will prevent a competitor from entering the market with

a similar technology-supported solution.

        The community effects of SnapTrip will provide another barrier to entry. After SnapTrip’s

successful launch, the site will be known as valuable source of information. This will encourage

participation in the community section of the site by avid travelers, who will submit their own travel

stories, videos, and discussions about destinations. This will lead to a network effect of community

participation, making it harder for a new entrant to focus on multi-destination travel.

        Finally, this knowledge base of travel information and preferences gained from customer

interactions and community content will be used to further refine and improve the effectiveness of the

software. These aspects of the business will create a virtuous cycle of continual improvement and

increased community involvement by the customer base.


         5. Pricing (Economic Value to Customer)

        SnapTrip’s pricing model is to sell customized trips for a total package price. The price of each

component of the trip will be marked up at a different rate, for an average of 15% above cost for all sales.

This pricing model reflects the primary value proposition of time savings and the positioning statement of

a premium product differentiated by technology. For example, a consumer may pay a $350 price

premium booking a family vacation during which the consumer saved 10 hours of planning and had a

great experience planning the trip.

        A trip booked with SnapTrip will cost more than the sum of lowest available prices consumer can

find for the individual components. SnapTrip will always have difficulty selling to a price-shopping

consumer who is willing to spend significant time booking his or her own version of an itinerary that was

initially suggested by SnapTrip. However, because SnapTrip’s value proposition is time savings, such a

consumer is not part of SnapTrip’s core market and SnapTrip will not be able to reach this consumer with

any sustainable pricing model. The SnapTrip web site will not explicitly list the price of each component,

in order to discourage such price shopping. However, customers will be given some significant insight


                                              22 of 70
into the pricing, for example as they see the price of an itinerary lowered after changing hotel choice to a

more affordable selection.

        Airline tickets will have lower markup than other aspects of a trip itinerary. This is because there

is an efficient market for price comparison on airline tickets, and a significant mark-up on airline tickets

may prevent customers from trying SnapTrip initially or result in SnapTrip earning an initial reputation as

unnecessarily marking up prices. SnapTrip provides more technological advantage in arranging hotels,

intra-city transportation, attraction, and the other aspects of travel, and these components will have more

of a price mark-up above cost.

        For example, Exhibit 12 considers a family of four planning a week long multi-city vacation trip

to Europe covering ten attractions. The total supplier cost for this trip would be $7000. If the customer

purchased this trip through OTA by reserving each and every component of the trip, they will end up

spending more than 20 hours and the entire trip cost would reach $8000 after commissions & service fees.

If the customer purchases at SnapTrip, they can finish the reservation in less than an hour and they will

also cover more attractions due to trip optimization. Hence, the customer perceived value would be $8700

($8000 from competitor reference price + $500 due to optimization + $200 for the time savings and

customer service). SnapTrip will be selling this package at $8200, a $500 less than customer perceived

value and yet $200 more than competition.


         6. Channel Plan

        SnapTrip has a single channel selling trip packages from its main SnapTrip.com Web site. All our

marketing efforts will drive potential customers towards this Web site. However, SnapTrip will be

receiving inventory from multiple service providers such as hotel, car rentals etc. And, there is a potential

for conflict when securing services at a specific location. When two providers quote similar prices,

SnapTrip will consider other factors such as customer service ratings, history of prior transactions before

showing those options to the customers.




                                              23 of 70
          In the initial phases, SnapTrip plans to subscribe to the global reservation systems such as Sabre

GDS, Gallileo and WorldSpan. For example, Gallileo system provides access to 500 airlines, 50 rental car

companies and 50,000 hotels.

          SnapTrip also plans to join the preferred partner programs of various car rental companies, hotel

providers and private attractions such as adventure tours etc. These partnerships should enable first

preference to inventory and price data. In return, SnapTrip will be accepting lower margins from these

providers. In addition, SnapTrip has to generate periodic reports for these partners to avoid them from

engaging in direct bookings.


           7. Marketing Communications Plan

          To achieve the brand awareness and build customer base it is essential that SnapTrip invests in

the selected means of communication avenues. The targeted ethnicities are still interested in receiving

information in paper form10 hence we would focus our efforts to feature SnapTrip and its unique

advantage in the travel magazines and the cultural magazines that are tailored for Chinese, Filipino and

Indian Americans. For example, Snap Trip will advertise in the travel section of the Filipinas Magazine

that is targeted for this ethnic segment. Other highly popular media is the local radio channels in

Mandarin (Huayu Radio, San Francisco), Hindi and Tagalog to reach them through advertisements on

travel reservation and planning.

          As an online service provider, SnapTrip plans to establish its presence through e-newsletters that

provide information about latest deals and expert’s advice on planning vacations during various seasons

to its tech-savvy and affluent customers. As social networking is gaining popularity, SnapTrip also plans

to advertise in the travel blogs such as tripadvisor.com, hotelchatter.com that share travel content with

customers. SnapTrip will also host a blog that contains feedback from previous travelers and their video




          10
             Outdoor Advertising Association of America. Marketing to Asian-American Consumers.
http://www.oaaa.org/UserFiles/File/Marketing/Multicultural/4.4.2h.ppt



                                                        24 of 70
blogs. Additionally, a blog on SnapTrip will periodically feature packaged travel that includes the best

places to visit, to stay etc similar to Via magazine from AAA.

        PR and publicity play a critical role in attracting the customer base. Hence, SnapTrip plans to

seek celebrity endorsements and advertise them on-line, on radio and in magazines. For example, an

interview with Yao Ming sharing his experience of using SnapTrip’s multi-destination planner would

attract Chinese audience. Trade conferences (e.g. Vacation Show Case) and expos present a great

opportunity for SnapTrip to establish its brand in the bay area. In addition, road shows at the cultural

event centers of the Chinese, Filipino and American Indian would support the brand building initiatives.

         Finally, our professional and knowledgeable customer service representatives will encourage

new sales or offer additional vacation ideas to our customers.


         8. Sales Plan To Generate First Six Months Of Sales

        SnapTrip plans to reach the targeted market segments through various print, radio and online

media. During the first six months of operations, we would spend $3,500 on print media such as travel

and cultural magazines with increased allocation in the fifth and sixth months. Similarly, we allocate

$12,000 for radio advertisements and $150,000 for online advertisements on search engines, travel blogs

and social networking. We expect that the for the all the channels above 4% of the customers will view

the website and out of these customers 1% of them would actually buy the product resulting in the

conversion rate of 0.04%. Exhibit 13 provides details on the sales and advertising expenses for the first

six months.

        We plan to offer promotional codes to induce the initial trial of the website for a limited time. We

will also encourage customers to leave feedback about our service by offering discounts and coupons

periodically. SnapTrip will send mobile/email alerts about the discounts once customers register their

travel preferences. A flat rate of 3% of the revenue that includes the royalties and discounts is accounted

as COGS.




                                              25 of 70
        SnapTrip expects to establish key partnerships with airlines, hotel, car rental and other attraction

providers for which $100,000 is allocated during the product development phase and the first six months

of operations. For example, we partner with travel channels to host travel videos on the SnapTrip Web

site which will also provide brand exposure for the travel channel. In return, SnapTrip will advertise in

their travel channels and magazines such as Lonely Planet and AAA Travel Guide. SnapTrip will also pay

for Google ad-words to generate site traffic.


         9. Service and Warranty Policies

        In general, SnapTrip reflects the cancelation policies of the individual reservations in a

customer’s itinerary. SnapTrip provides extra value because its web site and customer support is a single

point of contact for making changes, as opposed to requiring the customer to contact multiple service

providers who may be based in foreign countries.

        Making changes to itineraries is easy with SnapTrip - the same advanced software used to plan

the trip is used to adjust other aspects of the trip to accommodate a change. However, customers may be

responsible for additional fees when required by airlines, hotels, and other service providers.

        Our elite customers (those who bought more than $10,000 worth of services) will receive

exclusive travel deals, travel vouchers for attractions and we will also waive our commissions for

rescheduling the trip.

        SnapTrip will have a dedicated and knowledgeable customer support team assisting with trip

planning and schedule changes. In the initial phase, customer support number (800-sna-ptrip) will be

available from 8am PST to 8pm PST. We will also create an FAQ page, an email address for response

within 24 hours. SnapTrip will utilize other popular tools to introduce instant communications (e.g. AIM,

Yahoo messenger). SnapTrip will also monitor customer feedback both on our site and other blogs to

continually improve customer service.




                                                26 of 70
         10. Advertising and Promotion Plans

        Advertisements and promotions will be focused on communicating to the target ethnic segments

to explain the value proposition and establishing credibility of SnapTrip as a new service. For reaching

Indian Americans and Filipinos, advertisement is best served in English language, but it has to be

sensitive to their respective cultures.

        The company expects to find that certain messages and promotions are more effective for certain

ethnic segments. Therefore the company will closely monitor the effectiveness of its promotional

campaigns using customer surveys and interviews, conducted cheaply and quickly by members of

SnapTrip’s full-time staff. The company will be prepared to increase promotions that are effective and

quickly drop ineffective promotions.

        The company’s initial key methods of promotions include endorsements by ethnic celebrities are

likely to be recognized by the population in the target geographic market: By keeping a geographic and

ethnic focus, SnapTrip expects to find price-effective endorsement opportunities. For one example of a

possible celebrity endorsement, Professional Dancer Cheryl Burke from the “Dancing With the Stars” TV

series is recognized by the Filipino-American community as a successful Filipino-American with bay area

roots, but she is not the caliber of celebrity who would compete for national product endorsements in the

U.S. or Philippines.

        SnapTrip will also buy media slots that focus on target segments. Internet advertising sales can

effectively target specific ethnic segments in specific U.S. geographic markets. Some online advertising

can be geographically targeted and also purchased on a “click-through” basis so that fees are only paid

when viewers decide to click on a displayed advertisement. By running an advertisement in a language

such as Hindi, Mandarin, or Tagalog (Filipino), SnapTrip can decrease the amount paid for exposure to

consumers outside its target ethnic groups. For print media, ethnic newspapers already provide an outlet

for geographic and ethnic targeting.

        Promotions are offered to encourage viewers to explore the site. These promotions will aim to

have users explore the site to understand its value and consider it for their next travel purchase.

                                              27 of 70
Promotions may require users to enter a code that was supplied in an advertisement, as a way to

encourage site trial by offering something that may only be available for a limited time. Promotions

include: discount on first booking, experience an exclusive virtual reality tour of an exotic location, read

more about a celebrity’s experience with the site, refer a friend and receive a cash rebate when the friend

books a trip.


         11. Marketing Budget

    The VP of Sales and Marketing and a Marketing Manager employee will establish the brand presence

of SnapTrip.

    The marketing manager will develop marketing collateral for the website, blogs, advertising in print

and radio, online advertising through search engines and social networks. In addition, he or she is

responsible to analyze the travel patterns, perform competitive research about deals and offerings and

conduct business intelligence analysis to develop the marketing plan. SnapTrip will also buy content from

third party resources after paying royalties. For content generation and other business intelligence

activities, SnapTrip budgets $5000 per month. The VP of Sales & Marketing is responsible to build

partnerships with various service providers. SnapTrip budgets $10,000 per month to pay for potential

legal fees and expenses. In addition, VP of Sales and Marketing is also responsible to develop the value

proposition and strategy for branding.

        SnapTrip will also have a team of four trained customer service representatives. We have

budgeted $5,000 per month as we expect to outsource to US service providers. SnapTrip plans to hire

larger number of customer service agents in six months after launch.

        SnapTrip will invest $500 per month for advertising in print media such as newspapers and travel

magazines. We have budgeted $2000 per month for radio advertising. In addition, SnapTrip will spend

$15,000 per month for on-line advertising including Google Ad-sense keywords, Facebook Ads and

advertisements in travel blogs.




                                              28 of 70
We hope to invest more heavily in marketing from the end of first year to reach full potential of our

business. Exhibit 13 has the detailed marketing budget forecast.



IV.     Development Plan

        Development of the SnapTrip service consists of the following elements:

        Core Software: This consists of the Travel Correlation Engine (TCE) software and the design of

the databases used to store data by TCE. This software is developed and maintained by SnapTrip

employees.

        Web Site Software: This software consists of the web site itself including the site’s various

navigation tools, data entry forms. This software will be written from one of the industry standard

languages that control web site design, navigation controls, authentication, and database access. Two

such languages are Ruby On Rails and Java.

        Travel Content: Content and media for the SnapTrip is developed by SnapTrip employees and

licensed from third parties. Unlike the Web Site Software component, Travel Content is expected to

remain fresh and relevant on a weekly basis. The content is continually updated as news breaks affecting

travel, SnapTrip decides to promote certain travel destinations or service providers, or new content is

received from third parties.

        Partnerships: SnapTrip forms partnerships with travel service providers in order to be able to

sell partners’ inventory of air flights, hotel stays, transit, etc. The critical initial partnerships will be

established with the goal of providing accomodations and transit across the countries of origin for the

target segments, where good inventory coverage is a key to success, as well as western Europe, a popular

destination for upscale vacations with advanced intracountry transit systems that can be provided by a

single partner.

             1. Large and medium-sized hotel chains within Asia and Europe

             2. A partner who can book inter-city travel across western Europe



                                                 29 of 70
            3. A partner who can book inter-city travel on the Indian subcontinent

            4. A partner who can book inter-city travel within China

            5. A partner who can book intra-city and inter-island travel within the Philippines

            6. A number of partners who can book attraction tickets and reservations in Asia and

                western Europe

        Additionally, the SnapTrip web site will contain a partner portal section which allows partners to

instantly update specific information about services provided and available inventory, if they choose. The

partner portal also allows new partners to submit applications to provide inventory to SnapTrip. The

partner portal provides an incentive small lodging and service providers to use SnapTrip as a way to bring

in more business. By this mechanism, SnapTrip can extend the breadth of its available offerings without

devoting an effort on individual recruiting and servicing small partners.


         1. Development Status And Tasks

        Exhibit 14 describes the timeline of tasks and milestones to launch the company and develop the

web site and service. The current estimate is to finish most of the technology development in December

2009 and take first customer orders on January 1st, 2010.

        Core Software: This is under development by the founders of the company.

        Web Site Software: Because this component uses standard web programming techniques, this

component can be developed by an offshore consulting firm. The VP of R&D will develop technical

specifications for the project by July 1st, 2009. Within a month, a software development firm will be

selected to fulfill the contract. A firm will be chosen from a referral site such as elance.com which

provides reputation information for offshore software development firms. Is it expected that this

component can be delivered to SnapTrip by November 1st, 2009, at which point the small SnapTrip R&D

team will work on integrating the TCE and Web software and initial testing of the web site. A cost

breakdown for this contract is provided in Exhibit 15.




                                             30 of 70
        Travel Content: The Marketing Manager position, a full-time staff member, will be hired in July

2009 to produce the content for the initial launch of the site in time for the public launch in February

2010.

        Partnerships: Partnership discussions will begin in earnest as soon as possible after the next

funding round is received. Because SnapTrip has not yet launched a public web site, the company would

like to use the backing of outside investors as a credibility factor to encourage partners to view SnapTrip

as a source of significant business and therefore treat SnapTrip favorably. An allowance of $10,000 per

month has been budgeted for expenses required to negotiate and finalize these partnerships.


         2. Difficulties and Risks

        Partnerships: SnapTrip must secure partnerships that represent a geographically wide area of

travel inventory, in order to have a product that is attractive to the target segments of travelers on multi-

destination trips. The launch plan assumes that such agreements can be made in September 2009 in order

for SnapTrip’s web site to launch on schedule.

        Inventory fulfillment: SnapTrip needs to determine the complexity of the system to acquire

inventory and fulfill orders with travel service providers, and whether related software components can be

purchased or licensed from a vendor. Any customized software for fulfillment may need to be written

quickly by the founding VP of R&D, because the details may be known too late to allow this software to

be written by a consulting firm.


         3. Product Improvement and New Products

        SnapTrip will monitor industry developments and company performance to find product

improvements that fit with the company’s strength and market position. The most likely improvements

will be the addition of new types of travel inventory, such as coverage of more cities, new providers for

lodging and intercity transit, or the ability to book new kinds of attractions as part of a SnapTrip itinerary

booking. These product improvements may require new partnerships and travel content, but they will not

require significant overall changes to the system. The partner portal section of the web site is designed to


                                               31 of 70
encourage small providers to apply to become partners, which is a way to encourage some of this type of

product improvement.


         4. Cost Management Plan

        To avoid cost overrun for developing the software, the job contracted to outsourced software

developers is restricted to use conventional software technologies to build a web site to meet a written

specification. Exhibit 15 includes an estimate for the cost of this contract. The riskier work of

developing and testing the core software, as well as integration testing with third parties, is to be

performed by full-time employees. Holding an equity stake in the company, the full-time employees have

a strong incentive to work hard and resolve problems on time.



 V.     Operations Plan

        The company’s critical Information systems will be operated by service providers with contracts

that guarantee high reliability of services. Customer service will operate at the company headquarters in

Santa Clara. Exhibit 15 provides with costs related to maintaining company offices.


         1. Geographical Location

        The company will maintain only one office site. This site will be conventional Class B office

space used by all company employees. The company will seek to find reasonable lease in a building that

is attractive to prospective employees.

        The company office will be in Santa Clara, California. Santa Clara is one of many cities in the

San Francisco Bay Area that has a large skilled work force and a presence of companies that provide

services for Internet-based enterprises. Santa Clara is particularly suitable due it its proximity to the

founders’ homes.




                                               32 of 70
            2. Facilities And Improvement

        The facilities will include a suitable area for telephone customer support. This can be arranged

using typical office components such as cubicle walls, and it is not expected to result in significant up-

front or ongoing costs beyond what is required for conventional office space.

        Note that the company’s information technology operations are operated on servers leased by

web hosting companies. These computers physically reside in the web hosting company’s data centers.

For maintenance or upgrade of the site, these servers can be accessed by authorized employees over the

Internet. These employees can be physically located at the company’s headquarters or any other place

that provides adequate Internet access. During off hours employees who need to work on the servers can

also do so from their homes.

        As such, the company does not have any special operations needs to maintain its web site or other

Internet-based services.


            3. Strategy And Plans

        The company does not have any specialized facilities needs. The overall goal is to keep lease

costs low while maintaining sufficient facilities for employees to be productive and satisfied. The

company expects to be able to relocate to new office sites in the future with minimal disruption to

business.

        The company will plan to enter into a two-year lease including option to sublease, to take

advantage of the favorable economic environment for commercial tenants. The company will be flexible

about lease terms if necessary to move in time to meet the development milestones.



VI.     Management Team

            1. Organization

        SnapTrip will be led and managed by a CEO, Vice President of Research and Development, and

Vice President of Sales and Marketing. The founders will fill these roles. The company will hire a

                                              33 of 70
Marketing Manager, who will also work on content generation. Two full time R&D employees will be

added and a Software Engineer will be hired in November 2009.


         2. Key Management Personnel:

            a) Deepankar Das, VP of R&D

        Deepankar Das is a brilliant, creative, driven, and gifted problem solver with excellent

organization and communication skills. He has a strong background in engineering and technology and

holds a degree in engineering from the National Institute of Technology Rourkela, which is one of India’s

premier national level institutions for technical education, and is pursuing his MBA from Santa Clara

University (SCU). Deepankar has over fifteen years of experience in the software industry and currently

leads the software solutions efforts as a senior software engineer at a multi-billion dollar

telecommunications firm. He will continue to offer his creativity, problem solving skills, software

technology expertise, and leadership to SnapTrip. In addition, with his natural love and gift for numbers

along with his experience in finance and accounting during the past three years while pursuing his MBA,

he will manage the finances of our operations.


            b) Richard Hung, CEO

        Richard holds a degree in materials science and engineering from the University of California,

Berkeley and is getting his MBA from Santa Clara University and was on the Dean’s List in 2008. He has

a combination of 8 years of experience in product quality assurance, customer service, and product

manufacturing management. He was also the founder and president of CircleAds, which was a company

focused on reaching affinity groups through the internet. While working at CircleAds, Richard was able

to reach out to markets at the universities in Berkeley, Davis, and San Francisco. His experience will

allow him in leading the organization and assist in the leadership of the sales, marketing, and operations

to make SnapTrip successful.




                                              34 of 70
              c) Swetha Sirupa, VP of Sales and Marketing

        Swetha Sirupa is currently working with the content management and marketing team at Cisco

Systems Inc. She is serving as the President of Entrepreneur's Connection, at Santa Clara University.

Swetha is extremely connected in the world of entrepreneurs, as she has organized the Entrepreneur's

Special Series featuring Marthin De Beer, Senior VP of Emerging Technologies Group at Cisco. Swetha

successfully led the VCIC at SCU, which is a candidate to secure the Entrepreneur's Choice Award for

the first time in the last two year. In 2007-2008, she served as Vice President of Events for Entrepreneur's

Connection. She has experience in handling customer issues through Dell International Inc. in India.

While at Dell International, she received nearly perfect customer satisfaction reviews throughout her

entire career in customer support and service. Swetha has a civil engineering degree from the Osmania

University, which one of India’s largest and well known public universities for its Engineering and

Technology departments and is considered as one of the best management institutions under the

university system. She is currently pursuing her MBA at Santa Clara University and will graduate with a

nearly perfect academic record and outstanding extracurricular profile in entrepreneurship. Her expertise

in customer support and service, content management, marketing and sales combined with her amiable

and energetic personality will surely secure customer satisfaction and good brand recognition. Swetha’s

unbelievable network in the entrepreneurial circuit will undoubtedly aid SnapTrip in future business

transactions.


         3.     Management Compensation and Ownership

        SnapTrip has four founders, while three of the founders are actively filling the positions described

above. The three founders listed above will be working for below market rate salaries and equity interest

in the company. The fourth founder, who will be an advisor and serve on the Board of Directors will

receive equity interest in the company and will receive no salary. A total of $300,000 will be invested

from founders and family, with each founder investing $50,000. SnapTrip’s Travel Veteran, who will

serve as an advisor and serve on the Board of Directors, will receive equity compensation.


                                             35 of 70
         4.    Advisory Board

              a) Dylan Salisbury, Core Technology Advisor & Representative of Management

                 team on Board of Directors

        Dylan Salisbury is a genius, a gifted innovator, and a team player. He graduated from the

University of California, Santa Cruz at age 19 with a degree in Computer and Information Sciences and is

on track in getting his MBA on the Dean’s List from Santa Clara University. Dylan has over fifteen years

of experience in developing, designing, scaling and launching new products in the software technology

industry. He holds several software patents and with his leadership and dedication, he developed a system

of operational procedures and methodologies that catapulted a start up, Flycast Communications

Corporation, to a remarkable IPO and acquisition. For SnapTrip, Dylan will help develop, integrate, and

patent the Travel Correlation Engine software technology. He will use his leadership, experience, and

extraordinary intelligence to mastermind the introduction of SnapTrip to the market.


              b) Galen Li, Travel Industry Veteran, Advisor, and Board of Directors

        Galen Li is SnapTrip’s travel industry expert. Galen’s educational background covers a computer

science degree and business administration minor from the University of California, Berkeley. He has an

MBA from the Massachusetts Institute of Technology - Sloan School of Management and had spent time

studying at Harvard University Graduate School of Education. He is an extremely savvy and driven

individual with over 5 years of expertise in the travel service industry. Galen was the youngest member at

Expedia, Inc. to hold a management position. While at Expedia, he drove the adoption of new, internally-

developed automation framework to streamline processes, led the development of automation scripts for

the Customer Experience test team to improve efficiency by expediting verification of routine tasks and

by reducing the amount of resources needed, addressed customer concerns and prevented a lawsuit by

heading the verification and deployment of fixes for emergency customer security issues. Prior to leaving

Expedia to pursue his MBA, he worked closely with marketing and sales to gain full knowledge of the

travel industry and to fully integrate his skills effectively to continue the growth of Expedia’s market


                                              36 of 70
value. In 2006, he led Expedia’s largest product development project with an estimated net present value

of over $77 million. Galen is currently working in San Francisco, as the product manager of Brightstorm,

an e-Learning company. His expertise in the travel industry, experience with arguably the largest

company in the travel industry, and experience in product development will truly allow SnapTrip in

gaining success.



VII.    Critical Risks and Problems

         1. Risk Of Delay In Establishing Partnerships

        If there is a delay in establishing the first partnerships with travel service providers, SnapTrip will

not be able to offer comprehensive travel itineraries. If a customer cannot book all of the necessary

arrangements for a trip on SnapTrip, the value provided to the customer is not significantly above

competitive travel sites.


         2. Risk That Certain Features Have Cost Or Time Overrun

        Certain features of the web site do not have specific time or money budgeted, including:

Mandarin language content, integration of travel videos, integration with virtual reality and mapping sites.

The budget assumes that the full-time R&D staff can handle the programming aspects and the content

generation budget is sufficient for maintaining Mandarin language content. Any of these features may

take more time or money than budgeted.


         3. Risk That Customer Service Quality Is Insufficient

        Despite the rising professionalism of outsourced customer service firms, customer service

representatives must have sufficient travel knowledge and language skills to serve a customer base that

may speak English as a second language and be highly knowledgeable about their intended destinations.




                                              37 of 70
          4. Risk That Patent Protection Is Not Strong

         After SnapTrip successfully demonstrates the value of its service, competitors may develop

 technology to develop similar product offerings. If SnapTrip is not protected by its patent filing or if a

 competitor takes an aggressive stance regardless of SnapTrip’s claims, SnapTrip’s value proposition may

 be undercut.

         Risk of declining travel in key market segments: SnapTrip is counting on the targeted ethnic

 market segments of international travelers to remain large enough to support SnapTrip’s growth into a

 successful business. A number of events could cause the markets to decline severely, such as prolonged

 global economic problems or an outbreak of a communicable disease that leads to a reduction in travel

 between the U.S. and Asia.


          5. Risk Of Poor Quality Travel Content

         The marketing plan assumes that a single marketing employee can ensure the quality and

 thoroughness of all the travel content on the site. If the content is not sufficient, customers will not get all

 the information they need to plan their travel. Accordingly, they may find that SnapTrip does not provide

 the promised benefit of quick and thorough planning. Such customers are likely to use competitive sites

 for some planning, and book reservations using those sites instead of SnapTrip.


          6. Risk Of Difficulty Establishing Trust With Initial Customers

         The revenue plan will fall short if potential customers are not convinced that SnapTrip is a

 trustworthy reliable service provider during the initial launch. Advertising material must be carefully

 designed and tested for its ability to instill trust among members of the target markets.



VIII.    The Financial Plan

          1. Profit and Loss Forecasts

         SnapTrip’s customers pay in full while booking their trips and the revenues are recognized only

 for the period for which service is offered. Operating expenses are classified into:

                                                38 of 70
        Marketing, Advertising and Sales expenses include travel allowances of marketing employees,

content generation, marketing material and promotional expenses.

        General and Administrative expenses comprise of utilities, maintenance, legal and

accounting costs. Please refer to Exhibit 1?? for the cost breakdown structure.

        The average useful life of software and the hardware purchased is assumed to be 3 years in total.

Depreciation expenses are then computed using straight-line method over the average life of useful years

with no salvage value. Revenue estimates and expenses discussed above are used to construct the pro

forma profit and loss statement for first five years of operation. Exhibit 15 provides the pro forma profit

and loss statement for the first year. Exhibit 16 provides the pro forma profit and loss statements on

quarterly basis next five years.


         2. Pro Forma Cash Flow Analysis

        Non-cash adjustments such as tax benefit due to net loss carry forward, accounts payable and

prepaid expenses, if applicable, are added to net income from income statement to calculate the net cash

from operating activities. Utilities, building maintenance and supplies expenses are payable later and

accounted in accounts payable. However, the rent of the facility is prepaid and appropriate portion is

credited to prepaid expenses account. We do not anticipate any purchase of a plant or property. However,

purchases of equipment and software are assumed to occur at the beginning of the period and categorized

under investing activities. Financing activities includes the cash required to finance SnapTrip. SnapTrip

requires $1,000,000 at the beginning of year 1, $300,000 of this will be raised through seed funding by

the founders and their family and friends, while the rest of the money will be raised from angel investors.

        SnapTrip offers no sales on credit; hence it lacks accounts receivables.

         Exhibit 17 provides the cash flow analysis for the first year and Exhibit 18 shows the projected

cash flow statements for the rest of the years as quarterly statements.




                                              39 of 70
            3.   Pro Forma Balance Sheets

        The tax benefit due to net loss carry forward is credited to deferred tax assets and is utilized when

SnapTrip generates profit. The plant, property and equipment account is credited as the gross amount of

capital invested minus the accumulated depreciation. Prepaid expenses and accounts payable from cash

flow are carried as assets and liabilities respectively. Net income (loss) adjusted for deferred tax asset

amount is added to retained earnings under equity section.

        Exhibit 19 provides further details on the balance sheet.


            4. Break-Even Analysis

            SnapTrip facility breaks even during year 3, if the revenue forecast is met. Hence, year 3

revenues and expenses are used as a base line for break-even analysis. SnapTrip incurs significant amount

($2,400,000 approximately) of fixed costs per year and a minimal amount in variable costs ($15 sales

commission per new subscribed member in terms of customer service costs). We assume that the total

dollar sales per customer is $2700 and the average sales commission is 15% of the net dollar sales. Based

on this analysis, SnapTrip requires approximately 6050 individual bookings to break-even. Given the

membership growth, SnapTrip breaks even in Q1 of year 3. Exhibit 20 shows the details of the breakeven

analysis.



IX.     Proposed Company Offering

            1.   Desired Financing

        Based on the cash flow estimates, SnapTrip requires $1.0 million in year 1 to finance its

operations. To reduce the total dilution for the shareholders, we plan to raise $300,000 in seed capital

from our savings, friends and family. Each founder will invest $50,000 from his/her savings and plans to

obtain the rest from family and friends. We anticipate that our cash flows from year 2 onwards will

finance our expansion plans.

By the end of the first year, we will seek $500,000 in additional funding from angel investors.

                                                40 of 70
           2.   Securities Offering

        Since the seed round is financed using founder’s savings and funds acquired from family and

friends. Only common shares are offered for this round. SnapTrip issues 5 million shares at value of $0.1

each. The ownership percentage of founders and investors are shown in Exhibit 29. The shares being sold

pursuant to this offering are restricted securities and may not be resold readily. The prospective investor

should recognize that such securities might be restricted as to resale for an indefinite period of time. Each

purchaser will be required to execute a Non-Distribution Agreement satisfactory in form to corporate

counsel.




                                              41 of 70
         3.   Capitalization

        The company will issue 5000000 shares priced at 0.1 cents each.

        The table below shows the capitalization table for seed financing.




                 Name                       Amount Invested      Shares        Ownership

                 Deepankar Das              50,000               500000        10%

                 Swetha Sirupa              50,000               500000        10%

                 Dylan Salisbury            50,000               500000        10%

                 Richard Hung               50,000               500000        10%

                 DD-FF                      25,000               250000        5%

                 SS-FF                      25,000               250000        5%

                 DS-FF                      25,000               250000        5%

                 RH-FF                      25,000               250000        5%



                 Authorized & Reserved-
                 Employee Stock                                  2000000       40%
                 Options, etc

                                            Total                5000000       100%




         4. Use of Funds

        The capital obtained in seed funding will be used for various activities. The revenues generated in

year 1 are not adequate to fund the center operations. Hence, 80% of capital raised will be used to fund

center operations. The rest of the money is used to finance the marketing and SG&A expenses over the

next year. The breakdown of the usage and the activity are shown in Exhibit.




                                             42 of 70
         5. Exit Strategy and Plans

        The current growth plan is to position SnapTrip for acquisition in five years. The net income with

operations focused on only bay area customers is 12 million by the fifth year. We would leverage

industry expertise from our advisor, Galen Li, and look for potential buyers during year six. We

anticipate travel companies like Travelocity and Orbitz will be interested in our technology and our

market share among the ethnic segments and will be willing to buy our company for approximately

5xEBITDA in the fifth year. We believe that our technology and our niche market will be an attractive

proposition for established online travel agencies.




                                              43 of 70
Exhibit 1. Scenario Analysis

          Young professional who is interesting in visiting 3 cities in Europe with spouse for about two

weeks with a budget of about $4,000.

 Use conventional travel web sites (Expedia, Use web site of tour operator or tour reseller
                                                                                                                 SnapTrip
                book direct                                 such as Zicasso
            Activity                Minutes               Activity               Minutes                   Activity                 Minutes
Research cities and attractions on       90
invididual web sites.
                                                                                      60
Read trip blogs on sites such as         20   Shop around on web sites that                   Enter the preferred cities, budget,
Yahoo Trip Planner.                           offer package tours.                            and best travel days.
Decide on an outline for the                                                                  OR                                      20
                                         10
desired trip.                                                                                 Read trip blogs and find somebody
                                                                                      20      else's trip to model the trip on.
Look for more specific and                    Go to reseller sites and request
                                         30
appropriate attractions to work               quotes for packages that include                Receive a proposed itinerary from
with the desired itinerary.                   the desired citites.                            SnapTrip.

                                              Days later, receive responses from              Try changing the length of stay in
Find flight times most likely to         60   reseller sites. Look through all        60      each city and hotel class, and          10
work out. See if changing dates               available tours and choose the                  receive a new itinerary and trip
leads to better prices.                       best fit.                                       price after each change.
                                              Look for flight times and prices                Explore more attractions to add,
Research hotels in the first city        30   that work with the tour (this is not    30      and receive a new itinerary and         20
and choose a hotel.                           included with most tours).                      trip price after each change.
                                                                                              Adjust final details such as
Research hotels in the second city       30                                           10      departure time time for trains or       15
and choose a hotel.                           Book the tour transaction.                      pick-up time for rental car.
Research hotels in the third city                                                             Book the trip in a single
                                         30                                           10                                              5
and choose a hotel.                           Book the flights.                               transaction.
Research transit between cities.
Make sure locations and times
                                         60
work with the preferred flights
and hotels.
Change one or more of the hotel
plans to accommodate the transit         15
arrangements.
Double check the details to make
                                         25
sure the itinerary is practical.
Book all the flights, hotels, transit
                                         90
and attractions at each web site.
        Total time: 8 hours 10 minutes               Total time: 3 hours 10 minutes                   Total time: 1 hour 10 minutes
                                              The customer has purchased a package tour
  The customer has created a custom trip.                                                 The customer has created a custom trip and
                                               that is not exactly what he or she wanted.
 Quality of the experience depends on how                                                   has a high level of assurance about the
                                              The customer may have waiting several days
       well he or she did the research.                                                      experience they will have on the trip.
                                                      before receiving the itinerary.




                                                          44 of 70
45 of 70
        Exhibit 2.               Travel Correlation Engine Diagram




     Travel purchase and browsing activity             Knowledge Base (Database)                       Travel Inventory (Database)




                                                                       Fuzzy Logic
                                                                         Module
                                Script / Rules
        User inputs
                                   Engine




                                                           Correlation Module
                                                                                                                               Web Site Content




Travel videos                                                             Content Generator




                                     Mapping Service                                 Virtual Reality




  Legend


                Patentable modules

        Modules developed or hosted by third parties

        Other modules




                                                             46 of 70
Exhibit 3. Porter’s Five Forces



                              Potential Entrants

                                                      Concentration
                                Threat of new         rivalry is high
                               entrants is high


              Bargaining                                 Bargaining
               power is                                   power is      Buyers
  Suppliers                Multi-Destination Travel
               medium                                     medium
                                 Competitors



                                    Threat of
                                  substitutes is
                                      high

                                   Substitutes




                                47 of 70
   Exhibit 4. Survey Results


Question                                     Statistics

Visited more than 2 destinations in a trip   53%

Spent more than $2000 for vacation           65%

Length of the vacation                       7-10 days

How ahead do you plan the trip?              3- 6months

Time to plan the trip                        7.5 hours

Purpose of Trip: Explore a new destination   67.20%

Purpose of Trip: Beach Vacations             46.60%

Source of travel information                 Travel booking sites such as Expedia, Travelocity

Customer Preference                          Price, Save time, Travel experiences, Flexibility

Payment fees                                 up to $19.99

                                             Recommendation from friend, Media such as TV and Travel

Adoption of website                          Magazine




                                             48 of 70
Exhibit 5. Market Size Calculations

       Bay Area Market for Multi Destination Trips
       Number of US International Leisure and VFR Travelers                                                       25,888,000

       Purpose of the trip (Leisure/Recreation/Holidays)                                                                  68%
       Number of Leisure Travelers                                                                                17,603,840
       Percentage of people making multi destination trips( Two or more
       destinations)                                                                                                      41%
       Number of people making multi destination trips                                                             7,217,574
       Percentage of people from Bay Area                                                                                  6%
       Number of people making multi destination trips from Bay Area                                                 433,054
       Percentage of people willing to booking online                                                                     35%
       Number of people willing to booking online                                                                    151,569
       Average dollars spent by traveler per visit                                                                     $2,735
       Total Available Market                                                                                  $414,541,386


       Asian American Market for Multi Destination Trips in Bay Area
       Number of people making multi destination trips from Bay Area                                                  433,054

       Percentage of multi desination travel that is made by Asians in bay area                                            25%
       Number of people making multi desination travel that are Asians                                                108,264
       Percentage of multi desination travel within targeted Asians(Chinese,Indian
       Americans,Filipino) in bay area                                                                                     73%
       Number of people making multi desination travel that are targeted Asians in
       bay area                                                                                                        79,032
       Percentage of people willing to booking online                                                                      35%
       Number of targeted Asians who are willing to booking online                                                     27,661
        Average dollars spent by traveler per visit                                                                    $2,735
       Total Serviceable Market                                                                                  $75,653,803


       Notes:

  1.   Source data from http://tinet.ita.doc.gov/outreachpages/download_data_table/2007_Outbound_Profile.pdf
  2.   Percentage of multi destination travel made by Asians in the bay area is determined by the percentage sum of the wage
       earners who earn more than $100,000 based on the statistics from http://ccsre.stanford.edu/reports/report_13.pdf
  3.   Percentage of multi destination travel within targeted upper middle class Asians in the bay area is 73% of the Asians in
       the bay area from census distribution http://factfinder.census.gov/servlet/ADPTable?_bm=y&-context=adp&-
       qr_name=ACS_2007_3YR_G00_DP3YR5&-ds_name=&-tree_id=3307&-redoLog=false&-all_geo_types=N&-
       geo_id=33000US488&-format=&-_lang=en



                                                    49 of 70
Exhibit 6. Competitive Set

                    Budget                       Zicasso


                    Generic
                                                  Expedia, Orbitz, Priceline,
                 Product Category                 Travelocity, Contiki


                  Product Form
                                                 Brick and Mortar Stores,
                                                 Supplier Websites
                Multi Destination
                 Customized
                 Trip Agency
               Online Travel Agencies

                                               LCD TV, Household Repairs,
                 Trip Reservation              Savings for Kids,
                                               Loan Repayments

                Discretionary dollars
                 ($1500 - $3000)

                  9” Netbooks




                                    50 of 70
        Exhibit 7. Competitive Matrix

                             SnapTrip      Zicasso        Expedia    Priceline   Travelocity   Orbitz
Credibility of Brand
Trip Customization
Trip Optimization
Lowest Price on airlines
Lowest Price on hotels
Customer Service
Website User Experience
Total Transaction time
Low cost of service
Trip Advisor/Trip Research


         Legend                         Strong                      Average

                                        Above Average                Below Average

                                        Weak




                                               51 of 70
Exhibit 8.      Estimated Market Share and Revenues

                         Year 0       Year 1      Year 2    Year 3             Year 4         Year 5
    Marketing, Sales    $381,500       $666,000 $1,167,000 $1,431,000         $1,695,000     $1,959,000
    & Advertising
    Revenue             $256,981     $1,102,752 $2,116,890 $3,184,196         $3,828,125    $4,472,053
    Cum. Revenue        $256,981     $1,359,733 $3,476,623 $6,660,819        $10,488,944   $14,960,997

    Market Share            0.06%         0.33%        0.84%        1.61%          2.53%          3.61%
    Est. Growth                                           92%         50%            20%               17%

            Note: The revenue projections for a given year is dependent on the marketing expenditure

    invested in the previous year




                                               52 of 70
Exhibit 9. Positioning Statement

To           Upper middle class Income families

             SnapTrip

Is the       One stop mutli- destination travel portal

That/Where   Offers customized and optimized trip itinerary

Because      SnapTrip software correlates user preferences and provides optimized itinerary for the

             user

So that      Customers can get one stop shop that enables them to plan and reserve the trip which

             saves time and focus on enjoying their vacation




                                          53 of 70
Exhibit 10. SnapTrip Message Map

 Audience 1:Men,Women (Approvers/Decision Makers)            Audience 2:Colleague, Friends, Community(Recommenders)
 Supporting Messages                                         Supporting Messages
                                                                                                           Snap Trip
                        Save time&                                                                         Message
                                                                                    Professional &         Map
                      accommodating
                                                                                           Friendly
                          budget
                                                                                          Customer
                                                                                           Support
          Trip                                                          Flexibility
                                       Customization
      Optimization                                                    to change trip                       Single source of
                                        & Quality of
                                                                           plan                              Information
                                       arrangements


                         Variety of
                                                                                          Reasonable
                         Attractions
                                                                                            Prices


                                                   Main Positioning
                                                      Statement
 Audience 3: Family Members (Users)                                     Audience 4: Celebrities, Friends, Family (Influencers)
 Supporting Messages                                                    Supporting Messages

                      Fun and Unique
                                                                                            Reliable
                        Experience
                                                                                            Options

       Saves total                                                       Customer
        trip time                                                         Service                               Efficient
                                                                                                                vacation
                                                                                                             planning tool




                                               54 of 70
                                                                                    PP-Point of Parity
                                                                                    PD- Point of Differentiation
       Exhibit 11. Buyer Utility Map for SnapTrip

                Purchase               Delivery           Use                   Supplements           Maintenance   Disposal

                Online travel portal   E-Tickets,         Multi-point trip      Trip advisors,
                for customized trip    Online             planner, Saves time   blogs, feedback
                planning(PD) ,         confirmations      on trip research,     from
                Email alerts about     for all            Optimized trip        previous travelers
Customer        the deal(PP)           transactions       planner saves time    (PP)
Productivity                           (eg: hotel         while increasing
                                       vouchers,          options(PD)
                                       attraction
                                       tickets)
                                       (PP)

                Theme based            Mobile             Easy of navigation     Purchase
                tours(PP),Store        confirmations      (PD)                  attraction tickets,
                customer               (PD)                                     theme park
                preferences                                                     admission passes,
                (meal options,                                                  show tickets(PD)
Simplicity      (Non)Smoking
                rooms, automatic
                drive) and payment
                options)
                (PP)

                Screen shot of         Email              Smart Phone            Arrangement of
                pricing options        Reminders          Friendly web-         travel guides,
                (PD)                   (PP)               portal (PD)           shuttle services
Convenience                                                                     (PD), Visa and
                                                                                Immigration
                                                                                Information(PD)
                Secure (SSL)           Confirmations      Dedicated             Travel Videos
                transactions to        from Suppliers     advanced customer     that allow
                prevent fraud and      (PP)               service using         decision
Risk            identity theft (PP)                       social networking     making(PD)
                                                          tools(PD),
                                                          Connecting Similar
                                                          Travelers(PD)
                                                          Innovative web-       Make new
                                                          site provides         friends with
Fun and Image                                             unique shopping       similar interests
                                                          experience (PD)       (PD)
Environmental                          E-tickets avoid    Optimized trip
Friendliness                           paper (PP)         reduces travel
                                                          miles (PD)


                                                       55 of 70
Exhibit 12. Economic Value Added by SnapTrip




                             56 of 70
Exhibit 13. Marketing, Sales &Advertising Budget

     A. Base Cost Structure

        Base Cost Structure
                                                                                              No of people            Personnel Cost Support Costs
        Marketing
                                Branding, Value Propostion                                                        1         $30,000
                                Cust Service(outsource)                                                           8         $40,000
                                Distribution/Channel Partners                                                                                     $90,000


        Sales & Advertising
                                Print(Travel Magazines,Cutlural Magazines)                                                                         $5,000
                                Media(Radio)                                                                                                      $30,000
                                Online(Search Engines,Travel blogs,Social Networking)                                                          $150,000
                                                                                                                            $70,000            $275,000
                                                                                                                      Total Costs              $345,000
        Advertising - Revenue
        Conversions
        Print                           $5,000                        Media                              $30,000                      Online                 $150,000
        Costs                             $100                        Costs                                   $300                    per imperssion            $0.10
        No of Advt                           50                       No of Advt                                100
        No of Impressions                60000                        No of Impressions                       60000                   No of Impressions       1500000
        Customers who view                                            Customers who view                                              Customers who
        online                              4%                        online                                     4%                   view online                  4%

        Customers who buy the                                         Customers who buy                                               Customers who
        product                          1.00%                        the product                             1.00%                   buy the product           1.00%
        Conversion rate                  0.04%                        Conversion rate                         0.04%                   Conversion rate           0.04%
        Total Customers                      24                       Total Customers                            24                   Total Customers             600
        Avg Trip Cost/person            $2,735                        Avg Trip Cost/person                   $2,735                   Avg Trip Cost/person     $2,735
        comission                       15.00%                        comission                              15.00%                   comission                15.00%
                                          $410                                                                $410                                              $410
        Total Revenue                   $9,846                        Total Revenue                          $9,846                   Total Revenue          $246,150


        SnapTrip                                  57                                         MKTG 566
           Assumptions for calculating the base cost structure:

      1.   The costs of advertising in print radio and online are approximated based on the current market conditions from the internet.
      2.   For e-commerce websites the typical rate of customers who buy the product will be between 0.5%-8% depending on the sector, target market and quality of the site and proposition
           http://content.websitegear.com/article/conversion_rate.htm
      3.   From the industry report on travel and tourism http://tinet.ita.doc.gov/outreachpages/download_data_table/2007_Outbound_Profile.pdf, the average price spent by per visitor making
           package trip is $2,735
      4.   Based on the industry average, we expect to earn 15% commission for the multi destination trip reserved on SnapTrip.

      B. Costs & Revenues forecasts
         Monthly Forecasts

                                    Product Development                                                                   Alpha       Beta
                           Jun-09         Jul-09         Aug-09        Sep-09       Oct-09         Nov-09       Dec-09       Jan-10       Feb-10     Mar-10           Apr-10 May-10              Jun-10
Marketing
Branding, Value
Propostion                                                            $5,000       $5,000         $5,000       $5,000       $5,000       $5,000      $5,000          $5,000      $5,000          $5,000
Web Content
Generation                              $5,500           $5,500       $5,500       $5,500         $5,500       $5,500       $5,500       $5,500      $5,500          $5,500      $5,500          $5,500
Distribution/Chann
el Partners                                                          $10,000 $10,000             $10,000      $10,000      $10,000      $10,000 $10,000            $10,000 $10,000              $10,000

Sales & Advertising
Print(Travel                                                                                                                               $500         $500           $500      $1,000          $1,000
Media(Radio)                                                                                                                             $2,000      $2,000          $2,000      $3,000          $3,000
Online(Search
Engines,Travel                                                                                                                          $15,000 $15,000            $30,000 $30,000              $60,000

Total Costs                    $0       $5,500           $5,500      $20,500 $20,500             $20,500      $20,500      $20,500      $38,000 $38,000            $53,000 $54,500              $84,500
Revenues
From Print                                                                                                                                 $985    $985               $985 $1,969    $1,969
From Media                                                                                                                                 $656    $656               $656    $985     $985
From Online                                                                                                                             $24,615 $24,615            $49,230 $49,230 $98,460
Total Revenues                                                                                                                          $26,256 $26,256            $50,871 $52,184 $101,414



           SnapTrip                                       58                                            MKTG 566
       Quarterly Forecasts

                         Sep-10     Dec-10         Mar-11     Jun-11     Sep-11     Dec-11     Mar-12    Jun-12    Sep-12     Dec-12    Mar-13     Jun-13
Marketing:

Branding, Value
Propostion              $15,000    $15,000        $15,000    $15,000    $30,000    $30,000    $30,000   $30,000   $45,000    $45,000   $45,000    $45,000
Web Content
Generation              $16,500    $16,500        $16,500    $16,500    $74,250    $74,250    $74,250   $74,250   $74,250    $74,250   $74,250    $74,250

Distribution/Channel
Partners                $30,000    $30,000        $30,000    $30,000    $45,000    $45,000    $45,000   $45,000   $60,000    $60,000   $60,000    $60,000
Sales & Advertising
Print(Travel             $3,000     $3,000         $3,000     $3,000     $4,500     $4,500     $4,500    $4,500    $6,000     $6,000    $6,000     $6,000
Media(Radio)            $12,000    $12,000        $12,000    $12,000    $18,000    $18,000    $18,000   $18,000   $22,500    $22,500   $22,500    $22,500
Online(Search
Engines,Travel          $90,000    $90,000        $90,000    $90,000   $120,000   $120,000   $120,000 $120,000 $150,000     $150,000 $150,000    $150,000

Total Costs            $166,500   $166,500 $166,500         $166,500   $291,750   $291,750   $291,750 $291,750 $357,750     $357,750 $357,750    $357,750
Revenues
From Print               $8,861     $8,861 $11,815           $11,815    $17,723    $17,723    $26,584 $26,584 $35,446        $35,446 $35,446      $35,446
From Media               $5,908     $5,908   $7,877           $7,877    $11,815    $11,815    $17,723 $17,723 $22,154        $22,154 $22,154      $22,154
From Online            $221,535   $221,535 $295,380         $295,380   $393,840   $393,840   $590,760 $590,760 $738,450     $738,450 $738,450    $738,450
Total Revenues         $236,304   $236,304 $315,072         $315,072   $423,378   $423,378   $635,067 $635,067 $796,049     $796,049 $796,049    $796,049




       SnapTrip                              59                                   MKTG 566
Quarterly Forecasts

                                          Sep-13           Dec-13     Mar-14       Jun-14       Sep-14       Dec-14       Mar-15       Jun-15
Marketing:

Branding, Value Propostion             $60,000          $60,000      $60,000     $60,000      $75,000      $75,000      $75,000      $75,000
Web Content Generation
Distribution/Channel                 $74,250.0        $74,250.0     $74,250.0   $74,250.0    $74,250.0    $74,250.0    $74,250.0    $74,250.0
Partners                               $75,000          $75,000       $75,000     $75,000      $90,000      $90,000      $90,000      $90,000
Sales & Advertising
Print(Travel                             $7,500            $7,500     $7,500      $7,500       $9,000       $9,000       $9,000       $9,000
Media(Radio)                           $27,000          $27,000      $27,000     $27,000      $31,500      $31,500      $31,500      $31,500
Online(Search
Engines,Travel blogs,Social           $180,000         $180,000     $180,000    $180,000     $210,000     $210,000     $210,000     $210,000

Total Costs                           $423,750         $423,750     $423,750    $423,750     $489,750     $489,750     $489,750     $489,750
Revenues
From Print                             $44,307          $44,307      $44,307     $44,307       $53,168      $53,168      $53,168      $53,168
From Media                             $26,584          $26,584      $26,584     $26,584       $31,015      $31,015      $31,015      $31,015
From Online                           $886,140         $886,140     $886,140    $886,140    $1,033,830   $1,033,830   $1,033,830   $1,033,830
Total Revenues                        $957,031         $957,031     $957,031    $957,031    $1,118,013   $1,118,013   $1,118,013   $1,118,013



         Assumptions for calculating costs and revenue forecasts:

    1.




         SnapTrip                                     60                               MKTG 566
 Exhibit 14. Development milestones

Target date      Milestone            Description                                                            Owner

2009-06-15       Incorporation and    Formally establish the corporate structure for post-seed               CEO
                 corporate launch     funding. Secure accounting and legal services for the first year
                                      of operation.
2009-07-01       Write technical      CEO and VP of R&D collaborate on detailed technical                    VP of R&D
                 specifications for   specifications for the site, to facilitate hiring of technical staff
                 each process         and hiring outsourced software development.
2009-08-01       Contract with        A firm is selected and contracted with to develop the majority         VP of R&D
                 outsourcing firm     of the web site.
2009-09-01       Contract with        Enter into firm contracts with travel providers to allow               VP of Sales
                 inventory            inventory to be sold.
                 providers
2009-10-01       Move into office     By this date, the company will enter into lease contract for           CEO
                 space                office space and move in. The company does not plan to hire
                                      any office management or IT staff to maintain the office space.
2009-11-01       Hire the rest of     The following additional staff members will be hired and start         CEO
                 the launch team      by this date.
                                      1.        VP of Customer Service
                                      2.        One R&D employee
                                      3.        One sales employee
2009-11-01       Contract with web    Enter into a contract to secure web hosting services to support        VP of R&D
                 hosting providers    the company's operations.
2009-11-01       Test prototype       Receive an early prototype of the web site from outsourcing            VP of R&D
                 web site             firm. R&D staff evaluate the prototype against technical
                                      specifications and the web hosting capabilities, and make any
                                      adjustments in plans from lessons learned during the software
                                      development process so far.
2009-11-15       Develop training     This milestone is intended to identify any missing links in the        VP of
                 materials for        business process so far. Customer service and R&D team                 Customer
                 customer support     collaborate to identify possible customer issues that the              Service
                 staff                company does not yet have a plan for how to resolve.
2010-01-01       Launch marketing     Full marketing plan is finished by this date. This includes            VP of Sales
                 plan                 advertising to run at the advertising launch date (below). This
                                      may include other marketing operations that should start
                                      earlier, such as talking to industry experts and bloggers to
                                      create a "buzz" about the company's launch.
2010-01-01       Alpha launch         By this date, a fully functional version of the site will be           VP of R&D
                                      received from contractors and installed on the web hosting
                                      service. The site will go live and book travel for friends and
                                      family of employees. All employees will start using the site to
                                      test end-to-end functionality.
2010-02-01       Beta launch and      This trails the Alpha launch by one month, to allow time to fix        VP of R&D,
                 advertising launch   technical bugs discovered during the Alpha phase.                      VP of Sales




              SnapTrip                                61                                           MKTG 566
Exhibit 15. Product development and operations costs

 Outsourced software development costs

          This estimate assumes the site can be developed in 5 developer-months for an average hourly
 price of $20, and that a contractor will accept payment terms such as those described at Sumeru
 Software’s web site on http://sumerusoftware.elance.com/

 $4,800 at 2009-08-01 (Commencement of outsourcing contract)
 $6,400 at 2009-11-01 (Receive first version, begin testing)
 $4,000 at 2009-11-15 (Testing of consultant's work by SnapTrip completed)
 $800 at $2009-12-01 (Bug fixes done and contract over)
 $16,000 total cost


 Office rental costs

 Square foot per employee.                           250
 Rent per square foot per month.                     $1.50
 Number of employees to provide space for in first   10
 headquarters.
 Total cost per month.                               $3,750


 Start-up office costs

 Number of employees (first 6 months).               7
 Computer, furniture, office supplies, etc.          $2,000
 Total                                               $14,000


 Monthly office costs

 Phones ($100 per employee per month)                $1,050
 Remote e-mail hosting, electricity, and any         $500
 utilities not included in rent
 Total                                               $1,550


 Web hosting costs

 Standard web hosting to run the site developed by   $100
 contract developers using standard technologies
 (Java, Ruby on Rails, MySQL, etc)
 2 managed servers to run any special components     $200
 developed by the R&D team
 Total (monthly)                                     $300


         SnapTrip                               62                                    MKTG 566
     Exhibit 16.                  Income Statements (Monthly for the first Year)
Pro Forma Income Statements (Monthly)

                                          Jun-09       Jul-09     Aug-09      Sep-09      Oct-09      Nov-09      Dec-09      Jan-10      Feb-10      Mar-09      Apr-09     May-09        Jun-10
Revenues                                       0            0          0           0           0           0           0           0       26256       26256      50871       52184       101414
 Cost Of Goods Sold                            0            0          0           0           0           0           0           0         788         788       1526        1566          3042
Gross Revenue                                  0            0          0           0           0           0           0           0       25468       25468      49345       50618         98371

Operating Expenses
 Marketing, Sales & Advertising              $0      $5,500      $5,500     $20,500     $20,500     $20,500     $20,500     $20,500     $38,000     $38,000     $53,000     $54,500      $84,500
 General & Administrative                  7,500       7,600      11,300      14,300      15,900      12,300      11,300      11,300      11,300      11,300      11,300      11,300       11,300
 Center Operations                             0           0           0           0           0       4,300       4,300       8,300      12,300      12,300      12,300      16,300       16,300
 Depreciation                                  0           0           0           0         333         333         333         778         778         778         778         778          778
 R&D                                       6000        6000        6000        6000        6000       11000       11000       11000       11000       11000       11000       11000        11000
Total Operating Expenses                $13,500     $19,100     $22,800     $40,800     $42,733     $48,433     $47,433     $51,878     $73,378     $73,378     $88,378     $93,878     $123,878
                                                                                                                                                                                                0
Income from Operations                  ($13,500)   ($19,100)   ($22,800)   ($40,800)   ($42,733)   ($48,433)   ($47,433)   ($51,878)   ($47,909)   ($47,909)   ($39,033)   ($43,259)   ($25,506)
Interest income (expense)                       0           0           0           0           0           0           0           0           0           0           0           0           0
Taxes                                           0           0           0           0           0           0           0           0           0           0           0           0           0
Net Income(Loss)                        ($13,500)   ($19,100)   ($22,800)   ($40,800)   ($42,733)   ($48,433)   ($47,433)   ($51,878)   ($47,909)   ($47,909)   ($39,033)   ($43,259)   ($25,506)
                                                                                                                                                                                                0
EBIT                                    ($13,500)   ($19,100)   ($22,800)   ($40,800)   ($42,733)   ($48,433)   ($47,433)   ($51,878)   ($47,909)   ($47,909)   ($39,033)   ($43,259)   ($25,506)
EBITDA                                  ($13,500)   ($19,100)   ($22,800)   ($40,800)   ($42,400)   ($48,100)   ($47,100)   ($51,100)   ($47,132)   ($47,132)   ($38,255)   ($42,482)   ($24,729)




SnapTrip                                             63                                              MKTG 566
                      Exhibit 17.                         Income Statements (Quarterly)
Pro Forma Income Statements (Quarterly)
                                         Sep-10    Dec-10    Mar-11    Jun-11            Sep-11      Dec-11      Mar-12    Jun-12    Sep-12    Dec-12    Mar-13    Jun-13    Sep-13    Dec-13    Mar-14    Jun-14     Sep-14     Dec-14     Mar-15     Jun-15
Revenues                              236304.00 236304.00 315072.00 315072.00         423378.00   423378.00   635067.00 635067.00 796049.10 796049.10 796049.10 796049.10 957031.20 957031.20 957031.20 957031.20 1118013.30 1118013.30 1118013.30 1118013.30
 Cost Of Goods Sold                     7089.12   7089.12   9452.16   9452.16          12701.34    12701.34    19052.01 19052.01 23881.47 23881.47 23881.47 23881.47 28710.94 28710.94 28710.94 28710.94 33540.40 33540.40 33540.40 33540.40
Gross Revenue                         229214.88 229214.88 305619.84 305619.84         410676.66   410676.66   616014.99 616014.99 772167.63 772167.63 772167.63 772167.63 928320.26 928320.26 928320.26 928320.26 1084472.90 1084472.90 1084472.90 1084472.90

Operating Expenses
 Marketing, Sales & Advertising       166500.00 166500.00 166500.00 166500.00         291750.00   291750.00   291750.00 291750.00 357750.00 357750.00 357750.00 357750.00 423750.00 423750.00 423750.00 423750.00 489750.00 489750.00 489750.00 489750.00
 General & Administrative              33900.00 33900.00 33900.00 33900.00             33900.00    33900.00    33900.00 33900.00 33900.00 33900.00 33900.00 33900.00 33900.00 33900.00 33900.00 33900.00 33900.00 33900.00 33900.00 33900.00
 Center Operations                     48900.00 48900.00 72900.00 72900.00             96900.00    96900.00    96900.00 96900.00 120900.00 120900.00 120900.00 120900.00 144900.00 144900.00 144900.00 144900.00 168900.00 168900.00 168900.00 168900.00
 Depreciation                           2333.33   3333.33   3333.33   3333.33           3333.33     4333.33     4333.33   4333.33   4333.33   4333.33   3000.00   3000.00   3000.00   3000.00   3000.00   3000.00   3000.00   3000.00   3000.00   3000.00
 R&D                                   33000.00 33000.00 33000.00 33000.00             33000.00    33000.00    33000.00 33000.00 33000.00 48000.00 48000.00 48000.00 48000.00 48000.00 48000.00 48000.00 48000.00 48000.00 48000.00 48000.00
Total Operating Expenses              284633.33 285633.33 309633.33 309633.33         458883.33   459883.33   459883.33 459883.33 549883.33 564883.33 563550.00 563550.00 653550.00 653550.00 653550.00 653550.00 743550.00 743550.00 743550.00 743550.00

Income from Operations                    -55418.45 -56418.45   -4013.49   -4013.49   -48206.67   -49206.67   156131.66 156131.66 222284.29 207284.29 208617.63 208617.63 274770.26 274770.26 274770.26 274770.26 340922.90 340922.90 340922.90 340922.90
Interest income (expense)                      0.00      0.00       0.00       0.00        0.00        0.00        0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00
Taxes                                          0.00      0.00       0.00       0.00        0.00        0.00        0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00      0.00 102276.87 102276.87
Net Income(Loss)                          -55418.45 -56418.45   -4013.49   -4013.49   -48206.67   -49206.67   156131.66 156131.66 222284.29 207284.29 208617.63 208617.63 274770.26 274770.26 274770.26 274770.26 340922.90 340922.90 238646.03 238646.03

EBIT                                      -55418.45 -56418.45   -4013.49   -4013.49   -48206.67   -49206.67   156131.66 156131.66 222284.29 207284.29 208617.63 208617.63 274770.26 274770.26 274770.26 274770.26 340922.90 340922.90 340922.90 340922.90
EBITDA                                    -53085.12 -53085.12    -680.16    -680.16   -44873.34   -44873.34   160464.99 160464.99 226617.63 211617.63 211617.63 211617.63 277770.26 277770.26 277770.26 277770.26 343922.90 343922.90 343922.90 343922.90




              SnapTrip                                                           64                                                          MKTG 566
     Exhibit 18.              Cash Flow Statements (Monthly)

Proforma Cash Flow Statements (Monthly)

                                             Jun-09      Jul-09     Aug-09      Sep-09      Oct-09      Nov-09      Dec-09       Jan-10     Feb-10      Mar-10
Operating Activities
Net Income                                ($13,500)   ($19,100)   ($22,800)   ($40,800)   ($42,733)   ($48,433)   ($47,433)   ($51,878)   ($47,909)   ($47,909)
Non cash Adjustments
Accounts Payable
 Depr & Amor                                      0           0           0           0         333         333         333         778         778         778
Total Cash from Operating Activities      ($13,500)   ($19,100)   ($22,800)   ($40,800)   ($42,400)   ($48,100)   ($47,100)   ($51,100)   ($47,132)   ($47,132)

Investing Activities
  PPE                                            0           0       -4,800     -12,000          0      -10,400       -800           0           0           0
Other                                            0           0            0           0          0            0          0           0           0           0
Total Cash from Investing Activities             0           0        -4800      -12000          0       -10400       -800           0           0           0

Financing Activities
Proceeds from Long Term Debt                     0           0           0           0           0           0           0           0           0           0
Repayment from long term debt                    0           0           0           0           0           0           0           0           0           0
Proceeds - CS offering                     300,000           0           0     700,000           0           0           0           0           0           0
Total Cash From Financing Activities       300000            0           0     700000            0           0           0           0           0           0

Inc/Decr in Cash
Cash Beg                                          0   $286,500    $267,400    $239,800    $887,000    $844,267    $785,433    $737,200    $685,322    $637,413
Cash End                                  $286,500    $267,400    $239,800    $887,000    $844,267    $785,433    $737,200    $685,322    $637,413    $589,503




SnapTrip                                   65                                     MKTG 566
               Exhibit 19.             Cash Flow Statements (Quarterly)



Proforma Cash Flow Statements (Quarterly)

                                              Sep-10          Dec-10      Mar-11      Jun-11      Sep-11      Dec-11      Mar-12     Jun-12     Sep-12      Dec-12
Operating Activities
Net Income                                   (55,418)        (56,418)     (4,013)     (4,013)    (48,207)    (49,207)    156,132    156,132    222,284     207,284
Non cash Adjustments
Accounts Payable                                                                                                                      15000
 Depr & Amor                                  $2,333       $3,333         $3,333      $3,333      $3,333      $4,333      $4,333     $4,333     $4,333      $4,333
Total Cash from Operating Activities        ($53,085)    ($53,085)         ($680)      ($680)   ($44,873)   ($44,873)   $160,465   $175,465   $226,618    $211,618

Investing Activities
  PPE                                         -12,000              0           0           0      -12,000          0           0          0     -12,000          0
Other                                               0              0           0           0            0          0           0          0           0          0
Total Cash from Investing Activities          -12,000              0           0           0       -12000          0           0          0      -12000          0

Financing Activities
Proceeds from Long Term Debt                       0               0           0           0           0           0           0          0          0           0
Repayment from long term debt                      0               0           0           0           0           0           0          0          0           0
Proceeds - CS offering                             0               0           0           0           0           0           0          0          0           0
Total Cash From Financing Activities               0               0           0           0           0           0           0          0          0           0

Inc/Decr in Cash
Cash Beg                                      496,085    $428,667       $372,248    $368,235    $364,221    $304,014    $254,808   $410,939   $567,071    $777,355
Cash End                                    $428,667     $372,248       $368,235    $364,221    $304,014    $254,808    $410,939   $567,071   $777,355    $984,640




         SnapTrip                                       66                                      MKTG 566
Exhibit 20. Balance Sheet (Annual)

      Balance Sheets

                                         Startup         Year 1      Year 2      Year 3         Year 4       Year 5

      Assets
      Current Assets
       Cash & Cash Equivalents           300,000        $496,085    $364,221    $567,071      $1,401,875   $3,636,094
       Deferred Tax Assets                  0               0           0           0              0            0

       Total Current Assets              300,000        496,085     364,221     567,071       1,401,875    3,636,094
       PPE                                  0            22,000     17,667      15,000         15,000       15,000

      Total Assets                       300,000        518,085     381,888     582,071       1,416,875    3,651,094

      Liabilities
      Debt                                 0               0           0           0              0            0
      Accounts Payable                     0             10000       15000       20000          30000        30000
      Total Liabilities                    0             10000       15000       20000          30000        30000

      Equity
       Paid-in capital                   300,000        1,000,000   1,000,000   1,000,000     1,000,000    1,000,000
       Retained Earnings                    0           -471,915    -603,112    -397,929       446,875     2,681,094

        Total Liabilities + Equity       300,000        518,085     381,888     582,071       1,416,875    3,651,094




Exhibit 21. Breakeven Analysis



                 Variable Costs      $10 per customer
                 Members             Fixed Cost    Total Costs   Revenues
                      2,000          $2,400,000.00 $2,420,000.00    $810,000.00
                      2,500          $2,400,000.00 $2,425,000.00   $1,012,500.00
                      3,000          $2,400,000.00 $2,430,000.00   $1,215,000.00
                      4,000          $2,400,000.00 $2,440,000.00   $1,620,000.00
                      6,000          $2,400,000.00 $2,460,000.00   $2,430,000.00
                      8,000          $2,400,000.00 $2,480,000.00   $3,240,000.00




      SnapTrip                                     67                                       MKTG 566

				
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