Idus733 samrudhiipalshetkar spring17 processbook pdf

24 STEP OF ENTREPRENUERSHIP

TOVIO IDUS 733| ENTREPRENUERSHIP FOR DESIGNERS SPRING QUARTER Proffessor John Schaffeld Project by

SAMRUDHII PALSHETKAR M.A Industrial Design

STEP

0

GETTING STARTED

STEP 0 | GETTING STARTED

LOSING expensive belonging like jewellery or an expensive bag is not only

FINANICAL LOSS but it can be a

SENTIMENTAL LOSS also.

Devastated because of a sentimental loss?

Afraid to wear uninsured jewelry?

Unable to cover the cost to replace it?

Worried about having to settle for a replacement of a lesser value than the original Don’t want to spend on insurance and spend time on managing an insurance.

Forced to work with a jewelry replacement compnay and not my preffered jeweler?

Risk of having insurance rates go up

STEP

01

MARKET SEGMENTATION

STEP 1| MARKET SEGMENTATION

End User Map

Jewellery Insurance

Banks Certification Jewellery E-commerce Eg. Net a porter, Bluestone, Caratlane, Cartier

Single woman

woman self purchase

END USER

Affluent women

Manufacturers

- Gold Jewelry -Diamond Jewelry - Platinum Jewelry - Branded Jewery - Semi-precious Jewelry

SECONDARY COSTUMER Retailers Married woman heavy owner

Gifting - Friends - Family - Spouse

- Independent - small medium chain - large chain - dept store

Traders

STEP 1| MARKET SEGMENTATION

Market Segmentation Chart Affluent Jewelry Owners

Jewellery E-commerce

Location Trackers

Insurance company

Secondary buyer

End-Users

- Single Woman - Married women heavy owner - Self Purchasing Woman

- Single Woman - Married women heavy owner - Self Purchasing Woman

- Single Woman - Married women heavy owner - Self Purchasing Woman

- Admin filing for insurance - Use the data for

- High income Spouse - Daughter of high income parents - Friends with high disposoble income

Applications

- added layer of Security - Filing for insurance claim - Police complaints - Locate bank kept in - Manage certificates

- added layer of Security - Filing for insurance claim - Police complaints - Locate bank kept in - Manage certificates

- added layer of Security - Filing for insurance claim - Police complaints - Locate bank kept in - Manage certificates

- Making the insurance claim process faster and easier but getting the required documents easily.

- Gifting - Added value purchase with jewelry

Benefits

- Peace of mind - Record keeping - Easier complain filing - Status symbol/ Pride of ownership - wear uninsured jewellery with safety

- Peace of mind - Record keeping - Easier complain filing - Status symbol/ Pride of ownership

- Peace of mind - Record keeping - Easier complain filing - Status symbol/ Pride of ownership

- Easy insurance claim for costumers translates to better costumer service.

- Get more costumers

- Show care - Expensive gift -

Platform

GPS iOS/ Android Bluetooth low energy 4.0

GPS iOS/ Android Bluetooth low energy 4.0

GPS iOS/ Android Bluetooth low energy 4.0

Windows

GPS iOS/ Android Bluetooth low energy 4.0

Complementary assets required

Compatible Smartphone iOS / Android with bluetooth and GPS

Compatible Smartphone iOS / Android with bluetooth and GPS

Compatible Smartphone none iOS / Android with bluetooth and GPS

Compatible Smartphone iOS / Android with bluetooth and GPS

Market Characteristics

- heavy spenders - Seek self-expression of status - Showy not subtle - High Inverstors

- Single Woman - Married women heavy owner - Self Purchasing Woman

- Single Woman - Married women heavy owner - Self Purchasing Woman

- Claims process is currently difficult

- Single Woman - Married women heavy owner - Self Purchasing Woman

Women at high ranking post Brides Socialities Celebrities Wives of rich buisnessman

Net- E- Porter Fraser heart Miu Miu Bluestone

Geico Jewelers Mutual Lavalier

- High disposible income spouse - Family - Close Friends - Wedding gifting

Lead Costumers

Size of Market

MK Cartier Selfridges

STEP

02

SELECTING A BEACHHEAD MARKET

STEP 2| SELECTING A BEACHHEAD MARKET

1

Is the target costumer well funded?

Expenditure of affulent households in the United States on Jewelry during the past 12 months in 2016 Household income of 100,000 USD or more.

Under $500 $500 - $999 $1,000 - $2,999 $3,000 - $4,999 $5000 - $9,999 $10,000 - $14,999 $15,000 - $24,999 0%

10%

20%

30%

40%

50% Source: Ipsos

STEP 2| SELECTING A BEACHHEAD MARKET

4

Can you today, with the help of partners, deliver a whole product?

Can’t say now.

- Sourcing hardware and manufacturing - In-house Gold/Diamond/Platinum plating & engraving - In-house frontend and backend team of engineers - In-house design

6

Is there entrenched competition that could block you?

Insurance companies Wearables - Fitbit - Swarowski Other location tracking devices - Tile - Stoneteethr - Hiro - LassoTag - Trackr Bravo - Tin Tage

5

If you win this segment, can you leverage it to enter additional segments?

Once I enter the market with affluent women who own expensive jewelry, I will leverage it to enter the insurance and certification market. I can also enter the branded jewelry retail marer and get royalties from brands for using this product with thier brand logo on it.

7

Is the market consistent with my values, passions and goals?

This market is personally very consistant with my values and passions because my family is into the diamond business in India. I have grown up with influences from the diamond market. I will have a huge user base and contacts in the industry with my dad’s connections in the jewelery industry. When I told him about my product he was delighted.

My mom and many other friends and relatives have often lost jewelery pieces with sentimental value with no way of tracing back to them. This product with help them and empower them to wear jewellery with peace of mind.

STEP 2| SELECTING A BEACHHEAD MARKET

2

Is the target costumer readily accessible to your sales force?

I will be selling this product online and about 33 % of Affluent Americans prefer to shop online instead of going to the store. I can get in touch with my target costumers through social media platforms, online retailers, Influence blogs.

The product will be sold online through our website and other e-commerce platforms like Bluestone, Caratlane, Net-e-porter.

Any after sales services can also be managed online through the website.

3

Does the target costumer have a compelling reason to buy?

ONLY 4% OF JEWELRY IS RECOVERED AFTER BEING REPORTED STOLEN.

THE 2ND LOWEST RATE OF STOLEN

$1.54 BILLION OF JEWELRY WAS

PROPERTY

STOLEN IN THE US IN 2014

Jewelry is often not adequately covered under the theft victim’s homeowners or renters insurance, leaving huge out-of-pocket costs for replacing an item that is stolen, lost, or damaged.

The average cost of an engagement and wedding ring set in 2014 was $8,000 Other precious items you own (Branded jewelry, bags, wallets) can be just as pricey—if not more—to replace.

According to the FBI, only 4% of jewelry is recovered after being reported stolen. The bottom line: If your ring is stolen, you are not likely to get it back. You need insurance coverage that helps you replace a stolen, lost, or damaged engagement ring and other jewelry without extensive out-of-pocket costs.

Standard homeowners or renters insurance policy is adequate. Most homeowners insurance policies provide jewelry coverage, but it is limited, even if you have really good coverage. A typical limit for jewelry coverage is around $1,500 (after a deductible), and this is a combined limit that applies to all of the jewelry you have in your household. If you have any one item that is more valuable, your coverage for that item is still limited to $1,500.

Most standard homeowners and renters insurance policies only provide jewelry coverage in response to certain “covered perils,” or causes of loss. Most do not cover jewelry for damage (e.g., bent prong and lost stone), or accidental loss (e.g., your ring is lost while swimming).

ENGAGEMENT RING COST

$6,000 AVERAGE

-

YOUR INSURANCE PAYS

$1,500 JEWELRY COVERAGE

=

YOU PAY

$4,500 PLUS DEDUCTIBLE

Source: https://www.trustedchoice.com/homeowners-insurance/contents-personal-property/jewelry/

STEP 2| SELECTING A BEACHHEAD MARKET

Jewellery E-commerce

Insurance company

Jewellery Retailers

Affluent Jewelry Owners Secondary buyer

- Gold Jewelry - Diamond Jewelry - Branded Jewelry - Bags & Purses - Semi-precious stones - Heirloom Jewelry

STEP

03

END USER PROFILE

STEP 3| END USER PROFILE

YOUNG DIGITERATTI

Income Income Producing Asset

UPWARD BOUND

TECHNOVATOR WOMAN

Rich, educated, and tech-savvy, they acquire the latest communications and entertainment technology. With their six-figure incomes, these families can afford to equip their homes with wireless computer networks, large TV screens, and home theater systems. They indulge their children with a variety of consumer electronic devices. And a large number of these adults are executives and white-collar telecommuters whose employers provide them with cell phones, and laptops. They like to integrate new technology into their cushy lifestyles, and they frequently go online to track their investments, read current affairs, and check email.

Young Digerati are tech-savvy and live in fashionable neighbourhoods on the urban fringe.

Affluent, highly educated, and ethnically mixed.

They are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants. Many have chosen to start families while remaining in an urban environment.

Upward Bound are often upscale families boasting dual incomes, college degrees, and new homes.

Residents of Upward Bound are above average technology users who own multiple computers and frequently research and purchase all types of products online.

Wealthy

Wealthy

Wealthy

Millionaires, where avg IPA is greater than $1 million

High where avg IPA is between $250,000 & $450,000

Millionaires, where avg IPA is greater than $1 million

US Households: 1,710,495 (1.39%) Median Household Income: $125,700

US Households: 1,315,624 (1.07%) Median Household Income: $78,279

SELECTED END-USER

US Households: 10,256,767 Median Household Income: $118,357

Age Range

28-43 YO’s

Employment Level

Management and proffesional

Management and proffesional

Management and proffesional

Education Level

Graduate +

Graduate +

Graduate +

Household Technology

Above Average

Average

High Tech

Social Group

Tend to be upscale to wealthy, mostly without kids. Although this group is diverse in terms of housing styles, residents share an upscale urban perspective that's reflected in their shopping behaviors and activities. Urban Uptown consumers tend to frequent the arts, shop at exclusive retailers, drive luxury imports, travel abroad, and spend heavily on computer and wireless technology.

One socioeconomic rung down from the Elite Suburbs, with a significant drop in median income; but, they still enjoy comfortable, suburban lifestyles. This social group are a mix of families, couples and singles who tend to have college degrees and white-collar jobs. As consumers, The Affluentials are big fans of health foods, computer equipment, consumer electronics, and the full range of big-box retailers.

high incomes, and the biggest appetites for the latest models of consumer electronics, such as smartphones and wireless technology. To occupy their kid-filled lives, they buy a lot of handheld gaming devices, video gaming consoles, and computers with software for education, entertainment, and exchanging e-mail. No group scores higher for Internet usage, with adults going online to bank, track investments, get news, and research purchases.

These segments express a strong preference for parenting and business magazines, followed by cable TV networks that offer children's programs and movies.

Lifestyle traits

Owns a Mercedes Eats at Chipotle Shops at Banana Republic Goes hiking/backpacking Visits Asia

Owns a expensive car Eats at Qdoba Shops at Express Goes to yoga/pilates Visits Asia

Has lastest wareables Has 3D TV Owns a expensive car Travel for business Read Sunday Washington Post

Location

URBAN UPTOWN. They live within the classic high-density neighborhoods found in the heart of America's largest cities.

SUBARBAN AFFLUENTIALS Residents still enjoy comfortable, suburban lifestyles. The members of this social group are a mix of families, couples and singles who tend to have college degrees and white-collar jobs. As consumers, The Affluentials are big fans of health foods, computer equipment, consumer electronics, and the full range of big-box retailers.

URBAN UPTOWN. They live within the classic high-density neighborhoods found in the heart of America's largest cities.

Gen X

28-43 YO’s

Gen X

28-43 YO’s

Gen X

STEP

04

TAM SIZE FOR BEACHHEAD MARKET

STEP 4| TOTAL ADDRESSABLE MARKET SIZE

DEMOGRAPHICS - USA GENDER - WOMAN AGE GROUP- GEN X INCOME > $200,000 LIQUID ASSET > $500,000 OWNS A WEARABLE OR previous lost a jewellery piece TAM (TOTAL ADDRESSABLE MARKET)

STEP

05

PERSONA FOR BEACHHEAD MARKET

STEP 5| PERSONA

Serena Blair

THE YOUNG DIGITERATTI

PERSONALITY

WHERE SHE SHOPS

HOBBIES

Progressive & opimistic confident social & an extrovert Good host IIndependent and loyal Creative Classy & well dressed

Online- Net-e-porter, Amazon, Nordstorm Macy’s , Sak’s Fifth Avenue, Bloomingdales, Tiffany’s.

- Horse riding at her farm house - Sailing - Playing the piano - Collecting wine - Travelling to exotic beaches and shopping destinatoins - Pilates and Yoga

Prefers shopping home essentials and electronics online but prefers shopping for clothes and jewelry in person.

She picks up from designer boutiques around NYC.

EVENTS/INTERESTS GOALS

I once lost my grandmom’s heirloom diamond braclet at fund-raiser and never found it again, even after filing a police complaint.

That incident still pinches me.

GENDER FEMALE EARNING 10,000K AGE 30 JOB DESCRIPTION OWNER- INTERIOR DESIGN FIRM LOCATION NEW YORK, USA EDUCATION PRATT INSTITUTE,NYC HOUSEHOLD INCOME $10,000

- She wants to get bigger design projects.

- She has ambitious goals for her interior design firm.

- She is future-oriented and believes that the sacrifices of today will pay off in the future.

- She wants to have a child soon now that she is settling into her business.

FRUSTRATIONS AND PAIN POINTS - She is always trying to juggle with the work life and her personal life.

- She is tends to be forgetful because she is always in a rush.

- She is always reminded by her mother to take care of her expensive jewelery because she once lost her mothers expensive necklace because it fell in a party.

- She recently got an heirloom diamond bracelet from her mother in law and she is scared to loose it.

- She doesnt have insurance on her jewelry because she doesnt want to spend so much on it.

INFLUENCES Her parents, especially her dad.

Her husband who motivates her.

Her friends at social gatherings.

She and her group of friends always try to stay ahead of the trends.

She follows celebrities and trends in fashion magazines like vogue and cosmopolitian.

Most of her friends do not work, they have more time to spend on shopping and social events.

HER FAVORITE FASHION BRANDS

CURRENT PHONE : IPHONE 7 ALSO OWNS AN IPAD, MAC AND A FITBIT

HER RIDE

PREFERENCES Functionality

TECHNOLOGY EXPERIENCE SOCIAL NETWORKS Facebook, Instagram, Snapchat

- Spends her money on experiences within the circle. of highly influential friends who have a free-spirited attitude & disposible income.

- Private events upporting causes, galley openings,fashion weeks.

Aesthetics

Status

BRAND & PRODUCT RELATIONSHIP

Cost

- She usually picks up the best quality products available.

- She goes through user reviews while deciding.

- She usually shops for home utility and electronics online but goes tot he store to for clothes and jewellery.

Technology

Security

STEP 5| PERSONA

HER THINGS

HER APARTMENT

STEP

06

LIFECYCLE USE CASE

STEP 6| LIFE CYCLE USE CASE

DISCOVERY

- Through social media - Retargeted Ad’s - Insurance company - Friends at social events

BUY

- Online on our website - Ecommerce: Amazon, Polyvore, - Retail: Urban outfitters.

COSTUMIZE

CONNECT

PUT IT ON

LOST/STOLEN

AFTERSALES SERVICE

- Choose plating (Eg: gold, siliver, platinum)

Once you have the product. You wear it and connect it to your phone using bluetooth.

Once you have the product. You wear it and connect it to your phone using bluetooth.

If the product is lost or stolen it will start beeping and send you a meesage when the product moves even 5 ft away from you.

Helpline on website

- Engraving of initials/personalization - Diamond studded version.

- Model : colour, shape ,size

Initial set up: photo/description Connect to insurance companies

You can contact the police and insurance services here.

accessible through active social media accounts.

COLLECT

Collect the whole range for bags, earrings, bracelets, neclace.

STEP

07

HIGH-LEVEL SPECIFICATIONS

STEP 7| HIGH LEVEL SPECS

FEATURES

TECHNICAL SPECIFICATIONS

Real-time live tracking See the current location of your tracker in real time. Distance indicator to play hot and cold with your tracker.

Size and weight 1� x 1� x 0.2�

15 g

Message alert The minute the phone tracker goes beyond 5 feet, you get an instant alert.

Power QI wireless technology or replaceable CR2016 coin battery or Rechargeable 510mAh LiPo Battery Charging via micro USB-cable

Track multiple devices Need to keep an eye on several trackers? No problem! You can add as many trackers as you need. It is also possible for multiple people to monitor the same tracker from their own mobile phones.

Curation/ Management Take a picture of the item or collection. Get into the habit of keeping a photo record of all of your personal possessions. This helps to document your loss and speeds up the claims process.

Geofences Set multiple digital fences ( personal safe zones) that will alert you as soon as a tracker enters or exits a particular area. Add personal schedules to activate and monitor specific areas at specific times.

Insurance updates Update the value of your jewelry. Expensive items increase or decrease in value from year to year. Talk to your insurance professional about how to make sure the dollar amount of your floater or endorsement reflects these changes.

Personalization Create your own jewellery tracker. Choose your color and you have the option to get your initials engraved on it.

Durability Waterproof & Shockproof Environmental requirements Operating temperature: 14° to 104° F (-10° to +40°) Materials Gold plated, silver plated Connectivity Bluetooth low energy 4.0 GPS Compatibility iOS, Android, Web, Home kit (broadband)

STEP

08

QUANTIFY VALUE PROPOSITION

STEP 8| QUANTIFIED VALUE PROPOSITION Serena realizes she has lost her necklace after getting home and she panics as she had not insured the necklace and doesnt know what to do?

AS IS

if its LOST

She traces back her steps and finds the necklace.

if its STOLEN

Serena goes shopping with her friend where her Tiffany necklance falls down without her realizing POSSIBLE STATE She gets an instant alert that her necklace is not on her anymore.

She gets an alert but someone steals it before she gets there

All the beacons around help her She can now conveniently file for locate her necklace. insurance or a police complaint as she has all the necessary documents and proofs ready.

STEP

09

NEXT 10 COSTUMERS

STEP 9| NEXT COSTUMERS

LUXURY FOR PETS

LUXURY CAR ACCESORIES

Clara’s loves her pug, max. She pampers him buy buying him the cutest pet products available in the market.

She often goes out with her friends where she takes Max and she wants her pug to look as fabulous as her.

Brianna’s dad bought her a Porsche for her sweet sixteen. She bought a MK keychain to go with the car.

She loves her new ride.

Louis Vuitton Dog Carrier 40 ($2,690)

Michael Kors Mercer Pavé Lock and Stars Key Chain ($58)

Henri Bendel Dog Collar Charm ($28)

Porsche 718 Boxster ($56,000)

TRAVEL LUXE Jen is a 40 year old woman who runs a real estate firm in Los Angeles. She is a frequent business class flyer and loves catching up on reading in the airport privileged lounges. She owns multiple hotel memberships like Hilton.

Louis Vuitton Horizon 55 ($3500)

Montblanc Nightflight Luggage Tag ($ 70)

CHIC TEENAGER

TECH SAVVY MOM

Alexa is the trendsetter in her private school in New York. She has a casual chic dressing sense. She loves personalising her luxury products.

Karen is 50 year old who has her own caritable organisation which helps under privileged student get college loans. She loves learning about the latest technology in the market. She is inspired by her daughter who teaches her the new gadgets she purchases.

Valentino Backpack ($4,000)

Helen Ficalora Alphabet charm $225

Apple Watch Rose Gold ($269)

Amazon Echo ($50)

STEP

10

DEFINE CORE

STEP 10| DEFINE CORE

WHY The purpose

Tracker Charm that fits perfectly into the luxury lifestyle while providing re-asuurance and piece of mind to the user.

- Emotional benefits

RE-ASSURANCE

CORE

- Highest quality materials - Cant be patented

WHAT The process

- Constumer piece of mind - Symbol of social status LUXURY

TECHNOLOGY

- Fits into the costumers lifestyle - Subtle not showu - Costumized Designs

HOW The result

STEP

11

COMPETITIVE POSITION

STEP 11| COMPETITIVE POSITION

THE FUTURE FAMILY

STEP 11| COMPETITIVE POSITION

small

SIZE

POG

Big Low

AESTHETICS

High

STEP

12

DECISION MAKING UNIT

STEP 12 | COSTUMER DECISION MAKING UNIT

PRIMARY ECONOMIC BUYER

CHAMPION

- Self purchasing woman - Spouse - Parents

- end user - insurance companies - spouse - Family

COSTUMER’S PURCHASING DEPARTMENT - Website - Net- e- porter -

DMU

END USER - Affluent Gen X Woman who wears expensive jewellery that is not necessarily insured.

PERSON WITH VETO POWER

PRIMARY & SECONDARY INFLUENCER

- Celebrities - Word of mouth - Social media influencer - Socialite - Journalist -End user

- Spouse - Social circle - Parents - Friends and Family - Websites, blogs

STEP

13

COSTUMER AQUISITION PROCESS

STEP 13| AQUIRING A PAYING COSTUMER

TIME

AQUIRING A COSTUMER

ACTIONS

CONTENT STRATEGY Awareness

Approx 2 months

VISITOR all the potential costumers that land on our website, other luxury multibrand e-commerce sites, luxury/ fashion blogs and our social media platforms.

Approx 2 mins

PROSPECT

- Attract interest - conversion

Convert visitors on our website by showing educating them about the benfits of our product and helping them understand the value of owning the product

Approx 10 mins

ACTIVATED USER When a user adds our product to the the wishlist, likes our pages, follows us on social media platforms or shares out product with other potential prospects.

Approx 10 days

COSTUMER When a costumer pays for the product and receives our product through delivery service providers.

Approx 1 months

ACTIVE COSTUMER When the user pairs the product with their phone after downloading our app from the app store.

Approx 1 month

- Capture leeds - Track conversion - Conversion rate - Nuture prospects

- Convert sales - Costumer paid - Costumer delivery

- Weekly active user rate - Costumer service - Maintainence

LOYAL COSTUMER When the user feels reassured and finds value after using out product.

When the refer our product to other like minded individuals.

- Word of mouth - Get referrals - Upsell costumers

Education

Selection

Training

STEP

14

FOLLOW ON TAM

STEP 14| TOTAL ADDRESSABLE MARKET SIZE FOR FOLLOW ON MARKETS

UPSELLING

ADJACENT MARKETS

We will begin the consumer opting one of the trackers from our range

After gaining success with our beachhead market , we will sell the same basic product to adjacent markets with a few additional features like satellite tracking, beep alert. We

of products and after they find value in the product we will upsell the

will sell to the adjacent market with different pricing and marketing communication.

other products like trackers for earring, bags, bracelets etc. We will use

We will leverage our core and build off the expertise from our beachhead market. This can be risky and expensive but it will provide long term value by making it a scalable

our existing sales and distrobution channels to sell new products.

business.

BEACHHEAD MARKET

Product Upselling

ADD ONS

C0=BRANDING

FOLLOW ON MARKETS

MATERIALS

LUXURY PET MARKET App In-store purchases

SCHEDULED APPRAISALS

INSURANCE

CLEANING & CARE

$185.3 M

Luxury pet market in USA (Dogs + cats) 2017

$161.1 M

Estimated expenditure on accessories + toys 2015

18.5% spend $250- $499

LUXURY LUGGAGE MARKET

LUXURY MENS ACCESORIES $236 M

Men’s Luxury Fine Jewellery in USA 2016

$27,610.5 M

Bags and luggage sales in USA 2016 (767.1M units)

Expenditure of affluent households(Income of $100,000 or more) on petcare in 2014 Sources: 2014 Ipsos Affluent Survey USA, Harris Interactive; ID 445622

Sources: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Sources: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

STEP

15

BUSINESS MODEL

STEP 15| BUSINESS MODEL

REVERSE RAZOR BLADE MODEL

HARDWARE ENABLED SERVICE

SIMILAR BUSINESS MODELS

Hardware-enabled service products are almost identical to hardware-as-a-service products but the service is optional. While this may sound like a small tweak, it fundamentally changes the economics of the business.

Every hardware product that uses this business model must make a significant margin on the sale of each unit.

This business model will open up a vast array of unprecedented upselling opportunities.

FULFILMENT STRATEGY

1 Base Model Product Design 3D Printed test base model Battery Testing Mobile App Testing

2

3

4

5

Finalize Hardware and Casing Find Manufacturers Website Design Social Media Pages Cloud testing

Hardware and casing first assembly run Finalize retail kit Packaging design Packaging orders Social Media launch Getting influences on board

Hardware and casing first assembly run Finalize retail kit Packaging design Packaging orders Website and Appstore launch Luxury magazine, blog features

Refine Production errors Production shipments R&D on reducing costs and increasing costumization

STEP 15| BUSINESS MODEL

Key

Key

Value

Customer

Customer

Partners

Activities

Proposition

Relationships

Segments

- Manufacturing Partners - Jewellery Brands - Community - Social Media Influencers / Celebrities - Multi-brand luxury goods e-commerce platforms.

- Product Developement - Managing Manufacturing - Developing and maintaining software, website and app.

- Maintaining Development operations - Community Management

Key Resources INTELLECTUAL - Code base

- Brand patents, copywrights, trademarks -Database PHYSICAL - Inventory HUMAN Experienced team of developers, designers, admins and sales teams.

FINANCIAL Profits, stock option plans, funding from early angel investors, Initial founder investment.

PROTECTION & PREVENTION Reducing the risk of losing expensive jewelry and luxury items.

Preventing a financial blow and a sentimental loss.

Protection of uninsured jewelry

- Self service through app - In-app purchases provide dedicated personal assistence.

- Automated updates - Analytics - App store - Selected multi-brand online stores.

CONVENIENCE Easy to file for claims and register complaints.

MANAGEMENT Managing certificates, photographs, and asset valuations in one place.

COSTUMIZATION & DESIGN High quality material with a design to suit luxurious needs.

NICHE MARKET -FEMALE -AVG HOUSEHOLD INCOME <$100,000 or more -GEN X (28-43 Years Old) and Millennials

Channels AWARENESS Social Media, Website, App, blogs, Multi brand luxury product aggregators & stores.

EVALUATION Blogs, multibrand stores PURCHASE Website and other luxury multibrand sites DELIVERY Local DSP & International shipping AFTERSALES Social Media, Website zopim and call tollfree

- USA: They live within the classic high-density neighborhoods found in the heart of America's largest cities.

Cost

Revenue

Structure

Streams

- Cost of goods sold & operating costs - Research and development - Cost of development and maintaing software - Sales and Marketing - General and Administrative expenses - Logistics

PRODUCT SALES direct sales online (List price of model + product feature dependent) SERVICE SALES Through app INSURANCE COMMISIONS

STEP

16

PRICING FRAMWORK

STEP 16| PRICING FRAMEWORK

DIFFERENCES

BASIC MODEL

Colors Available

Extra Charge Insurance Packages need to be bought seperatly as add-ons

Battery Life

Size

6 Months Replaceable battery

34mm x 7mm

ADD ONS

Attachment for Dog Collar $125

Name/Logo Engraving $ 45

Attachment for Suitcase $140

Precious metal Plating Costumer order price

Key Chain attachment $130

Embellishments Costumer order price

UPSELL MODEL

Less Variety

Costum laser engraving

ADDITIONAL ATTACHMENTS

Yes

Inbuilt insurance package and yearly valuations Qi Wireless technology battery- Never Charge

20 mm x 7mm

STEP 16| PRICING FRAMEWORK

EXPECTATION

Peak of inflated expectation

technology + luxury trigger

Slope of enlightenment

Trough of disillusionment

Plateau of productivity TIME

INNOVATORS

EARLY ADOPTERS

EARLY MAJORITY

LATE MAJORITY

LAGGARDS

ADOPTION RATE

Target Market

“THE CHASM”

Follow on markets

People who want the newest technology, performance and looks

People who want complete solutions and convenience but do not want to compromise on the looks

People who need word of mouth and proof of working to gain confidence or to get aquainted with the technology

STEP 16| PRICING FRAMEWORK

EARLY TESTERS

EXCLUSIVE LAUNCH MEMBERS COMMUNITY

Our first 200 costumers will recieve exclusive collaterals and invites to try our service.

Benefits: - One base model (10% early bird discount) - Delivery free within USA - Your initials engraved (optional) at no cost.

- 20 % off coupon for your first valuation on select jewelry.

- Gift wrapped

LIGHTHOUSE COSTUMERS

TRENDSETTERS

BRAND COLLABORATIONS

Trendsetters Mega-Influencers: celebrities and social Media stars

Collaborating with high end jewellery brands to get a discounted model with the brand engraved on it to increase brand loyalty and brand recognition

LOYAL COSTUMER PRIVILIAGES

“Your special” Discount Coupon Once a person becomes a repeat customer, you'll want to reward them and make them feel appreciated.

10% off on every charm added to the collection to increase repeating costumers. Repeating costumers get these promos through their app and newsletters. This way users will be more likely to have an army of trackers to manage all their expensive jewelry.

Miranda Kerr

Blake Lively

Macro-Influencers: Bloggers and Publishers

chiaraferragni

gemologue

Micro-Influencers: Executives and Socialites

Brit Morin, founder Lauren Remington Platt, and CEO, Brit + Co. founder of Vênsette

Referral program “Gifting reassurance” Discount coupon For every referral you make the costumer gets offers like free month of insurance or free one time appraisal.

STEP

17

LIFETIME VALUE OF AQUIRED COSTUMER

STEP 17| CALCULATING THE LIFETIME VALUE OF AN AQUIRED COSTUMER

1. ONE TIME REVENUE STREAM Selling on our website

Cost of the product = $120 Selling on multi brand e-commerce websites

Cost of the product = $120 - (Varied commission)

6. RETENTION RATE Users will see value in the product once they actually loose something and need to find it.

They will stay 85% because they will keep collecting with the loyal costumer discounts and refferral programs.

App Store Downloads 2. ADDITIONAL REVENUE OPPORTUNITIES

7. GROSS MARGIN

In App Purchases: - Insurance - Costumization - Personalization Add Ons- Attachments.

Insurance company commisions

COST OF GOODS - PRODUCT COST = GROSS MARGIN $120

-

$50

=

$70

- Manufacturing - Packaging

3. LIFE OF PRODUCT 1 Year warranty- Qi Wireless Charging 3 months before battery replacement- battery

- Hardware (casing) - Hardware- Electronics - Software - Certificates

4. NEXT PRODUCT PURCHASE RATE Gross margins will improve after the first 100 costumers, as sourcing hardware and bigger production lines 85%

will drastically reduce the costs.

After a consumer finds value in our produc, trust the system and quality, they will be more likely purchase

The cost of developement of the software and product can be recovered within the first one year.

more for every item to have a complete army of trackers to manage all their luxury items

5. COST OF CAPITAL RATE 40 % There will be a high initial injection of cash flow required to get started but as the no of users increase, cost of production can be got down.

STEP

18

SALES PROCESS

STEP 18| MAPPING THE SALES PROCESS TO AQUIRE A COSTUMER

SHORT TERM

MIDDLE TERM

LONG TERM

DIRECT SALES Website Redirect traffic through: - SEO to optimize site for keywords - Segmented weekly newsletters - PPC(Price per click ) Advertisements on collaborated insurance companies - Promotions, product endorsements & paid adverts on our social media pages

SHORT TERM Continue creating demand, expanding community and client management.

( Facebook , Instagram, Twitter, You Tube) - PPC adverts and product mentions on luxury, fashion, tech, jewelry blogs - Refferals discount coupon codes - Affilities discount coupon codes Events - Fashion weeks ( Curve- Las Vegas, Cotorie ) - Fashion/ luxury exclusive social clubs - Fashion/ luxury invite only events

MIDDLE TERM Focus on order fulfillment and take demand creation burden off through word of mouth and distrobution channels.

Trade Shows - Technology and product tradeshows (CES) - Jewellery tradeshows (International Gem & Jewelry Show - Chicago, International Gem & Jewelry Show - Denver ) - Fashion & lifestyle tradeshows (NW Trend Show)

SALES CHANNELS- VARS Mutlibrand luxury E-commerce ( Technology , jewellery, Fashion Tech) ( Nordstorm, Touch of Modern, Net-e-porter, Saks, Neiman Marcus, Gilt, Rue la la, Signature 9 )

Promotional Partnership with online luxury brand websites ( Gucci, Kate Spade, Swarowski, Coach, Tiffany, Piaget, Cartier, Chopard)

Multi brand Reseller Stores (Technology and Jewellery) ( Bloomingdales, Saks, Neiman Marcus, Bergdorf Goodman)

LONG TERM Create demand, spread value proposition and get early feedback to make iterate.

STEP

19

COST OF COSTUMER AQUISITION

STEP 19| ESTIMATING COCA (COST OF COSTUMER AQUISITION)

SHORT TERM - Year 1

MIDDLE TERM - Year 2

LONG TERM - Year 3

COCA (t) : Cost of Costumer Aquisition for each time period Website Development costs Developers salary Designers salary Q/A Analysts salary Social media adverts PPC Adverts Office rent and utilities Office furniture and computers

$450,000 $220,000 $ 300,000 $ 20,000 $6,000 $8,000 $19,000 $16,000

Developers salary Designers salary Q/A Analysts salary Refferal coupons Affiliate coupons Social media adverts PPC Adverts E-commerce listing commission

Total COCA (ST)

$1,021,000

Total COCA (MT)

$450,000 $220,000 $ 300,000 $ 20,000 $6000 $4000 $6,000 $8,000 $50,000 $1,081,000

Developers salary Designers salary Social media adverts PPC Adverts Refferal coupons Affiliate coupons Tradeshow stall rent Tradeshow set up Tradeshow travel and stay Promotional partnerships Multi brand store commission

Total COCA (LT)

$450,000 $220,000 $ 20,000 $12000 $8000 $5000 $40,000 $10,000 $4,000 $80,000 $50,000 $1,349,000

TMSE (t) : Total Marketing and Sales Expenses over each time period

COCA (ST) / 1 year Total TMSE (ST)

$1,021,000 1

COCA (MT) / 1 years

$1,081,000 1

COCA (LT) / 1 year

$1,349,000 1

$1,021,000

Total TMSE(MT)

$1,081,000

Total TMSE (LT)

$1,349,000

COCA (n) : Cost of Costumer Aquisition for a new costumer over each time period.

TMSE - IBSE Total / New costumers (ST) Total COCA (n)

TMSE - IBSE Total 10,000 / New costumers (ST)

$986,000 $573,000

$41.3

Total COCA (n)

TMSE - IBSE Total 30,000 / New costumers (ST)

$1,081,000 $573,000

$16.93

Total COCA (n)

$1,349,000 $873,000 40,000

$11.9

STEP

20

IDENTIFY KEY ASSUMPTIONS

STEP 20| IDENTITFY KEY ASSUMPTIONS

KEY ASSUMPTIONS BEACH HEAD MARKET

END USER PROFILE

BEACH HEAD TAM SIZE

LIFE CYCLE USE CASE HIGH LEVEL SPECS

COSTUMER AQUISITION PROCESS

- The product will fit into the lifestyle of my beachhead market and would not find it as an accessory for their jewellery.

- Beachhead market are not aware of the difficult insurance plans, its risk and benefits.

- My beachhead market do not get insurance all their items insurance because its expensive, time consuming and a hassle.

- Beachhead market cares about managing and tracking their jewellery - My End-user has filed a lost/ stolen item complaint and found it difficult to do so.

- Insurance filing is considered to be expensive - My end users purchase insurance by themselves - End user find it difficult to manage their valutions, storing their jewellery, authenticity certificates, Insurance certificates.

- My end user is tech savvy to they trust in technology and believe in us to protect their information and privacy.

- Users who donâ&#x20AC;&#x2122;t have insurance will find more value and be willing to buy it as a replacement for insurance.

- User who have previously lost or have their jewellery stolen will see value in the product and purchase it.

- Users suggest the product to thier inner circle because they see vlaue in the referral program - We will be able to 100% secure and encrypt user data agaisnt potential hackers.

- Costumers would see a value added benefit in personalization and embellishments.

My target end-users purchasing desicions can be influenced by affliliates and product endorsements by mega, macro and micro influencers.

FOLLOW ON TAM

- Men would like to use and aquire a location trackers for thier accessories and if the market can had any potential to be tapped.

BUSINESS MODEL

- We can handle payments, personalization, front and backend of softwares, website/app develpement, shipping and returns in- house without using external agencies for it.

- We will be able to stick to our implementation timelines as delay in one step to cause the domini effect on our lauch date.

- High end luxury brands and multibrand retailers will would like to establish partnerships and collaborate with us.

PRICING FRAMEWORK LTV

SALES PROCESS COCA

- Costing for hardware components and manufacturing costs.

- If my beachhead market is willing to spend $100/ $120 on buying each a tracker for more than more jewellery piece.

- At what cost of a product does the costumer find value in investing in our product and service.

- The multi- brand luxury websites will allow me to list my product on their curated websites.

I looked back and analyzed each step of the processs so far to check whether my key assumptions are consistent with how the world works and not how my constumer thinks their work works.

Each key assumption made on the left represents a specific, narrow idea that can be empirically tested later.

STEP

21

TESTING KEY ASSUMPTIONS

STEP 21|TEST KEY ASSUMPTIONS

TOVIO SOIREE

The Tovio Soiree, is your chance to give feedback, suggest features etc to help make your Tovio tracker and app get even better!

An exclusive club for potential loyal costumers

Create an exclusive club for these loyal customers that gives them access to certain promotions, lets them in on company news and secrets before they're released to the general public, and communicates to them that they're part of the process of perfecting your products.

They will provide us with honest opinions and fill out our surveys to get feedback to improve our product and test our key assumptions.

Key Assumptions that can be tested early on

My end user is tech savvy to they trust in technology and believe in us to protect their information and privacy.

Users who donâ&#x20AC;&#x2122;t have insurance will find more value and be willing to buy it as a replacement for insurance.

Costumers would see a value added benefit in personalization and embellishments.

If my beachhead market is willing to spend $100/ $120 on buying each a tracker for more than more jewellery piece.

End user find it difficult to manage their valutions, storing their jewellery, authenticity certificates, Insurance certificates.

A closed group of few selected users who would get early access and exclusive updates to the app.

Learn about and try out our new features before anyone else.

Take part in our product development.

STEP

22

MINIMUM VIABLE BUSINESS PRODUCT

STEP 22|MINIMUM VIABLE BUSINESS PRODUCT (MVBP)

Costumer gets

Costumer

Initiate costumer

from product use

for the product

loop

VALUE

For $120 the costumer gets a tracker with inbuilt Qi Wireless charging.

Each color is applied through a metal anodization process in order to maintain the product's high quality look and feel.

Users also get sophisticated free App that's easy to install on your iOS or Android Smartphone, and easy to use, with on-screen instructions that guide you. The app will help them managing and protect precious belongings.

They can seamesslessly add services through our instore purchases and get the best insurance deals.

PAYS

Sales on our website: Online Payment on our website through Credit or debit card payment gateways Coupon code integration Reseller multibrand websites Sales Provide reassurance on security and privacy while making payments by getting PCI security standards council certificate.

FEEDBACK

Tovio connect facilitates a conversation within a niche group of target costumers.

- Zopim intergration on the website allows real time chat with costumers which can increase conversions.

- Toll free helpline for any issues regarding service, product or complains.

- Direct messaging on social media channels

STEP 22|MINIMUM VIABLE BUSINESS PRODUCT (MVBP)

Tracking Device

STAGE 1

STAGE 2

STAGE 3

1 design pattern

Reduced size

5 Colour plating options

Audible Beep/alarm

One button for all, control a massive list of defined actions

Qi wireless Charging

Personalisation

Waterproof casing

Add on products and attachments

certifications FCC, CE, Bluetooth

Antannae and firmware refinement

Different Designs Reduce size futher More colour plating options

Improve bluetooth range Android/iOS App

Upload and Manage certifications

Community GPS search

Improved UX/UI

Valuation updates

Improved UX/UI

Integrate with more services

Filing complaints

Define and manage silent zones

Costumisable alerts for each product

Integrate insurance subscriptions

White collar service for uploading products Selling pre-owned luxury items

STEP

23

SHOW DOG WILL EAT THE DOG FOOD

STEP 23|IF THE DOGS WILL EAT THE DOG FOOD

TOVIO SOIREE

PPC ADVERTISING TO LANDING PAGE

GOOGLE TRENDS DATA

An exclusive club for potential loyal costumers who currently use the product and will spread WOM through refferals.

Monitering the number of refferal through refferral codes given to select costumers.

Measure and track conversions to www.tovio.com by running a budget Google Adwords campaign and monitering the results.

To get geographic validation using trending and related keywords to check for interest in the product category

GET TRIVIO NOW >

VALIDATION METRICS TO VALIDATE IF THE DOGS WILL EAT THE DOG FOOD BACKERS FOR PRODUCTS IN THE LOCATION TRACKING AND SMART JEWELRY CATEGORY Checking the funding recieved by other location trackers on kickstarter can give a good estimate of the demand in that product category

WEEKLY EMAIL NEWSLETTER

SOCIAL MEDIA VALIDATION

Monitering the weekly open rate and click rate for the newsletter using Mailchimp Checking for conversions to website.

Rate of users unsubscribing

Leverging our social media channels to see how many followers, shares and likes we get.

Using Facebookâ&#x20AC;&#x2122;s brand dashboard to moniter traction.

Running targeted Facebook Adverts.

STEP

24

PRODUCT PLAN

STEP 24|DEVELOP A PRODUCT PLAN

Validating protocol within development of Trivio to ensure high level of quality during every release Protocol to maintain long term protection of the brand Trivio and the health of the company, release after release.

Introduction (Enthusiasts)

Listing down the criterias that must be met before alpha public release.

Document requirements of each market for each release.

The mandatory test types would be: Installation Base Desktop Server Cloud Product Quality Testing Service Acceptence test

Mainstream (Pragmatists)

Late Majority (Conservatives)

Time to market

High

High

Medium

Low

Feature Set

Low

Medium

Low

Medium

Medium

Low

Importance of low defects and testing errors

Release testing

Early Adopters (Visionaries)

Improving aesthetic value Add ons

High Low

Medium Medium

Skeptics (Laggards) Low Medium

High

High

High

Low

Medium

Medium

Medium

Low

Medium

STEP 24|DEVELOP A PRODUCT PLAN

MARKET PENETRATION Market penetration with beachhead market Become a dominant player in the market.

Increase usage of product by current users Grow market share of current MVBP range.

PRODUCT DEVELOPMENT Increase sales by extending the range of add-on products and upselling to current beachhead market.

MARKET DEVELOPMENT

Improve product and app based on new costumer insights after testing key assumptions.

Expand into follow on markets based after getting a indept understanding of the costumers and market needs.

Expand into different geographic locations.

Get more feedback to iterate and improve.

DIVERSIFICATION Build strategic allainces with manufacturers, insurance companies to share risks and expenses.