Scooter Hire Business Plan - PowerPoint by kom74081


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                                       Version of April 1, 2005

                              Ben Franklin,
                              Amy Guttman,

This document is an overview of the Widget device. The information contained herein is confidential and is
            provided solely for the purpose of participating in the PennVention competition.
Guidelines for Powerpoint Slides

•       The PennVention “decks” will be read, not projected, for the most part.
•       Use black text on white background, with possible exception of titles.
•       Use color for emphasis.
•       Typeface no larger than 14pt for most text.
•       Make slides dense with graphical, visual information.
•       If you insert images make sure they are of the appropriate resolution (typically 300-800
        pixels on the longest side…don‟t insert a 5MB jpg image).

•       The following slides are real examples used with real business plans and were not created
        just for PennVention. Therefore they may not be exactly appropriate for your presentation
        needs. Nevertheless, they give some examples of how innovations are presented in

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Example 1: Xootr Scooter

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                                                 • Sweet ride.
                                                 • Gets small quick.
                                                 • Goes where you go.

                                                   (Alpha Prototype)

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  Benefits: Xootr is Fun + Fastest Way from A to B
                                                                    •     Substantially faster than a skateboard because of larger wheel diameter.
                                                                    •     Stable at high speeds because of steerer and larger wheels.
                                                                    •     More versatile than inline skates
                                                                            –     can cruise around, hang out, go in stores, etc. without changing in/out of skates.
                                                                    •     Feels really fast because the rider is low to ground.
                                                                    •     High potential for trick/extreme stuff. Handlebar plus deck gives trick properties of
                                                                          both a BMX bike and a skateboard. Really easy to jump.

            Xoot @ 9 mph
                                     Save ~7 minutes over walking.

                Ride at 12 mph                                                       •      For distances of less than 1.5 miles, the Xootr
Walk to                                  Walk from                                          is the fastest mode of transportation
bike rack                                bike rack                                          (assuming “set-up” time for a bike or skates).
               Unlock         Lock
                                                   Trip of 1/2 mile                  •      The Xootr is transparent to public
 Put on             Skate at 9 mph          Take off                                        transportation; it goes on the bus/train.
 skates                                     skates                                   •      The Xootr can be stored in a locker or can be
                                                                                            easily carried; it weighs about as much as a
                                                                                            laptop computer.
                              Walk @ 3 mph

                1     2   3     4    5     6   7       8   9   10       minutes
The Market
 •     Segment 1: Campus transportation
         –    College campuses
               • 14.4 million students in post-secondary education in U.S.
               • 500,000+ college students at 20 largest warm-weather campuses
                     – e.g., big schools in California, Texas, Florida, Georgia, Arizona, etc.
               • 64% of all college students have at least one credit card. Most acquire this card in their first year
                   of college. (Credit Risk or Credit Worthy?: Colleges Student and Credit Cards, A National Survey, June, 1998. The Education Resources Institute, Boston,

                  •   College students have great internet access, need the product, and geographic concentration
                      helps create “buzz.”
 •     Segment 2: Youthful recreation
         –    Youth age 12-19 (32 million in US)
         –    Recreational adult user
               • ~7 million people age 23-35 with incomes >$40k/year in urban environments.
 •     Segment 3: Commercial/Industrial employee transportation
                  •   high-tech campuses, factories, airports, warehouses, film sets

             Segments 1 and 2 comprise 30-50 million potential customers.

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Customer Profile - College Campus Segment

  •     Male
  •     Sophomore or junior in college (obtained credit card in Freshman year)
  •     Lives within 1 mile of campus
  •     Attends college in California, Southwest, or South
  •     Purchases CDs, books, clothing on internet with a credit card
  •     Moderately athletic: uses rollerblades and/or a bike
  •     Has discretionary income for clothing, sporting equipment, entertainment
  •     Thinks for himself; an early adopter of new products

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 Consumer Testing
 •     Alpha prototype tested with approximately 75 potential customers:
         –    Palo Alto young professionals
         –    California kids
         –    Sausalito residents, including bike store owner and yacht owners
         –    Stanford, San Francisco State students
         –    Young adults in Golden Gate Park

 •     Moderately positive response:
         –    “Where can I buy it NOW?” -30 year old male Palo Alto surfer
         –    “I have to carry this in my store.” -Sausalito bike store owner
         –    “Super cool!” - Monica, Stanford undergrad

 •     Predicted purchase rate of 2-5% of those aware of product in target market segments. If
       awareness/availability reaches 10% of a 30 - 50 MM person market, sales potential is therefore
       60,000 - 250,000 units depending on adoption/diffusion rates.
 •     A key result from testing: People want to try before buying!

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    Risk Factors
    (mitigating actions in parentheses)

•      Product risk
         –      We have proven that the product works, meets customer needs, and can be produced at reasonable cost. However, there could
                be unanticipated reliability or performance issues that could hamper sales. (We will seek to minimize this risk by rigorous
                product testing.)
•      Market risk
         –      The product may be viewed as too silly for widespread adoption. (We are testing the product with consumers actively and
                continuously. In California, this issue does not appear prominent. However, in Philadelphia, some potential customers raise the
                silliness concern.)
         –      Consumers may not be willing to pay over $200 for a scooter. (Initial testing suggests that some consumers view $200 as too
                high. However, many consumers readily pay $200 for in-line skates, suggesting that at least some segment of the market will
                accept a $200+ price point. Furthermore, Nova Cruz‟s most obvious competition is similarly priced. If Nova Cruz sells directly to
                consumers, the price can be reduced to about $175 if necessary.)
         –      Demand for product sold directly through the company‟s web site may not be strong enough to sustain the company. (We intend
                to conduct interviews with retailers in June and July to determine their interest level. We plan to test market in September using
                both the direct and retail channels. If the direct sales channel is unlikely to provide adequate demand, we will be able to pursue
                the retail channel.)
•      Competition
         –      Our technology is not revolutionary. Many companies can build a scooter. Many companies have better distribution than we will.
                (We are focusing on building a strong brand quickly. We are filing patents on our product. We plan to achieve substantial market
                share and mind share by the end of the first two years of operation. If vigorous competition emerges, we will be positioned to be
                the market leader.)
•      Liability risk
         –      We believe that the product does not present unreasonable risks, I.e., it is substantially safer than in-line skates. However, if a
                lot of people use the product, someone will be injured. Injuries may lead to law suits. (We will seek to minimize this risk through
                a safe design, through customer education, and through insurance.)
•      Implementation risk
         –      Nova Cruz is a geographically dispersed team. We have never manufactured a product before. (The team has successfully
                completed many projects together before. We plan to hire an experienced operations manager in the first few months of
                operations. We will concentrate operations at Technique.)
•      Financing risk
         –      If demand for the Xootr product is very strong and/or we decide we must go retail, Nova Cruz will require additional capital.
                (Once demand for the product is verified and Nova Cruz‟s capabilities are demonstrated, we believe that additional equity
                financing will be readily available.)

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Example 2: GrindAlert Bruxism Treatment

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The Problem: Bruxism and TMJ
  •       Half the population grinds their teeth in some form.
          For 10% of Americans (29 million), the habit causes discomfort, jaw
          pain, and damaged teeth.

  •       Each year, over 3 million Americans seek treatment spending up to $ 1
          billion on nightguards that cost about $375 each.

  •       Temporomandibular Joint Disorder results when
          excessive clenching and grinding cause damage to
          the jaw. This affects 10 million Americans.
  •       The symptoms can include head, neck and face pain,
          tenderness when chewing, migraine headaches,
          tinnitus, and jaw clicking.
  •       Many elect to have surgery to fix the damage.

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Primary Existing Solution: Nightguards
  •      Generally custom fitted from molds taken from teeth.
  •      Most patients find them disgusting and compliance is low.
  •      They can only protect the teeth - do not stop the habit. Not a treatment.
  •      Cost vary from cheap $10 generic shells to $900 custom fit. Average: $375.

               Mold taken from teeth                                           Formed nightguard or „splint‟

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The GrindAlert Solution
  •       GrindAlert is a battery powered, miniature sensing device incorporated into a comfortable and adjustable

      •     Using EMG technology, GrindAlert monitors muscle
            activity while you sleep and emits an audible tone
            when clenching occurs, alerting you of your grinding at
            the moment it happens.
      •     Sensors are placed at the temporalis muscles, which
            also flex during a clench, instead of the masseter
      •     Instead of sticky electrodes, conductive rubber pads
            are used to make contact with the skin.

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Electronic Module
•   The heart of the GrindAlert is a small electronic module with a front
    control featuring:
      –    Score - number of times you clench
      –    Time - duration of clenching
      –    Volume - of the tone
      –    Level - EMG threshold level: amount of jaw force necessary to
           trigger the tone
•   The back of the device features a piezo tone signal generator, similar
    to alarms found on digital watches.

                                                                             A confidential tone generator replaces an
                                                                             uncomfortable earpiece. The tone comes in
                                                                             three levels:
                                                                                –FAINT - A faint tone begins immediately upon
                                                                                clenching and continues for 2 seconds, giving you
                                                                                time to stop.

                                                                                –ALERT - If you don't stop, a louder tone sounds.
                                                                                Your SCORE increases one point, and the TIME
                                                                                function starts counting seconds.

                                                                                –ALARM – Starts after 5 seconds, and continues
                                                                                until you stop clenching or grinding.

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Competition: EMG and Biofeedback Devices
  •    EMG Biofeedback devices are wired to the jaw with electrodes. They are usually
       loaned to the patient.

                                             AT53: $1,300
                                                                                          Myotrac2: $1,500

                                                                                        Cycura: $195
                                                                                        The worst of all worlds

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Proprietary Position
    •     2 U.S. Patents granted with significantly broad claims.
    •     High barrier to knock-offs due to sophistication of circuitry.

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Manufacturing and Cost


       Report Card


     Jewel Case Box

                                                               Electronics            Headband

 •      GrindAlert build price of $XX. Sell for $XXX
 •      Volume discounts down to $XXX/6 units.
 •      Disposable headband sales: Make for $XX, sell for $XX ea. in 6-packs.
 •      Batteries, extra score cards, other peripheral support.

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Example 3: Voloci Motorbike

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• 50cc-class motorbikes
        • existing $3+ billion market
        • 2.5 million units sold per year in
        Europe, US, Australia, Taiwan, Japan

• Dominant product technology
                                                                       Honda Supercub c1958. The Supercub is the
        • 2-stroke air-cooled internal combustion engine               best selling vehicle in the world (30 million units
                                                                       to date).
        • Two basic configurations: “scooter” and “moped”

• Many different applications: fun, commuting, youth mobility, postal service,
  tourist transportation
• Aggressive incentives in Europe for electric vehicles
        • up to $1000 direct-to-consumer rebates (in some municipalities in Italy)

                                                          Current State of the Art: Aprilia Scarabeo 50cc motorbike
                                                          $2399.00, 156 lbs, 2-stroke air cooled gas engine

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Target Segments
Urban Transport
        Jonathan, 31 - Copy Writer, New York City: He uses it as his primary vehicle
        The Ayers, 40‟s – Rochester, New York: They use it for recreation and fun at their
        vacation home!
Suburban Fun/Utility
        Nancy, 40 – Professor, Philadelphia: She uses it for commuting, recreation and
        keeping up with kids
        Scott, 35 – Software Engineer, California: He uses it for general transportation
        and off-road riding.
        Art, 65 – Retiree, Florida: He uses it to get around his community and the local
        beachfront in style!

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US Market
      • 50cc-class motor scooters
           • 100,000 units/year
           • 67% annual growth rate for last three years
           • Investments by Piaggio (Vespa), Aprilia, Yamaha, Malaguti

      • Electric “stand-on” scooter market
           • 75,000 units in 2000
           • estimated 100,000+ units (>$400) in 2001

      • Electric bicycle market
           • 35,000 units in 2000
           • Efforts by Ford/Th!ink, Mercedes, Giant, Currie to establish market.
           • Currently still somewhat “geeky”

European Market
   • 50cc-class motor scooter market is 1.4 mm units/year in Europe.
   • 1 mm units are sold in Italy and Spain.
   • Substantial government incentives in Italy.
   • By January 2002, mandatory yearly inspection of gasoline powered motorcycles in
     Italy (“Bollino Blu”) – 30% of the scooters on the road are expected to fail the new
     European Emissions Standard (“Euro 2”)

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                                      Voloci nX30 Electric Motorcycle

                                                                                                Specs and Features:
                                                                                                • Proprietary brushless
                                                                                                  motor and controller
                                                                                                • Integral motor housing and
                                                                                                • Fast charger (3 hour
                                                                                                • 30 mph/50 kph top speed
                                                                                                • Climbs 25% grade
                                                                                                • 60 lbs/27 kg vehicle weight
                                                                                                • 24 mi/40 km range
                                                                                                • Front/rear disc brakes
                                                                                                • Front triple-clamp
                                                                                                • Rear proprietary rising-rate
                                                                                                • Modular/swappable
                                                                                                  16lb/7kg battery pack
                                                                                                • Full DOT compliance
                                                                                                  (“motor driven cycle”)

                                                                                                 MSRP $1995 – $2495
                                                                                                 (depends on volume/investment)

Note: Industrial design of seat, seat frame, fenders, and fairing is still under development.

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What is Unique and Proprietary about the Voloci?
  • Brushless motor (85+% efficiency)
        • proprietary, custom design in collaboration with low-cost producer of brushless
  • Brushless motor controller
        • microprocessor-based controller
        • timing advance, current/speed limits, temperature sensing
  • System electronics
        • smart battery management
        • accessory power management
  • Rear suspension
        • highly compact rising-rate design
        • economical
  • Frame/battery system
        • modular battery “brick”

  Anyone can put a motor on a bike.
  It‟s really hard to build an electric motorcycle that goes 30 mph, weighs 60 lbs, and that can be built for $900.

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