2723372
Description
Flashcards by Varun Sarwal, updated more than 1 year ago
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Created by Varun Sarwal
over 9 years ago
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| Question | Answer |
| What developments are in the pipeline / planned developments? | - Movement to Apple/Android Pay as they come out - iOS App (Y1,Q2) - Ads Platform (Y2,Q1) |
| What's the key value proposition to supermarkets? | 1. Targeted Ads/Offers to drive sales. 2. Lowered Costs - lower staff, maintenance of self checkouts 3. Happier customers and increased customer throughput |
| Key Competitors? | - PCMS group for self checkout machines - Barcalays contactless card - Apps by Powatag, RetailX and MiniCheckout |
| Define TAM and SAM for your market. | TAM = 6.75 bn which includes advertising in all of UK grocery market SAM = The in-store advertising spend in UK 'big-four' supermarkets |
| Why have you assumed a market penetration rate of 30%? | From online surveys, it has been noted that 63% of all consumers would abandon shopping if the waiting times are longer than 4 min. We take 50% of this percentage as the percentage of people that will move to our solution. 50% of 63% is a little over 30%. |
| How did you calculate Target Market Size to be 430m? | in-store advertising in supermarkets = 5bn. Targeting only Tesco, Sainsbury's and Morrisons in the big-four = 57% of 5bn = 2.8bn Out of the three supermarkets, targeting only the local/express stores = 63% of 2.8bn = 1.8bn. 30% penetration rate = 30% of 1.8bn = 500m. Excluding remote cities, target market = 430m |
| Year 1 goals? | - Sainsbury's partnership - 3 stores - 10,000 users - Total Spend (40,000) on Cloud servers, legal fees, accounting, salaries. |
| Year 2 goals? | - Sainsbury's. 50-100 stores Market Bazr app and products, develop Ads platform. - 15,000 on marketing - Break even in Y2 Q3, make 3000 pounds in profit. |
| Year 3 goals? | Sainsbury's and one other supermarket - 500+ stores. - Marketing manager with 100K budget - headcount of 7, data scientist and 2 engineers. - 1.7m in profit, 2.1 in sales, 500K on expenditures. |
| Justify the business model. | - in-store advertising is a faster growing market - supermarkets are in financial crisis, can't afford a paid solution - lowered barrier to entry and easily scalable |
| Define the problem using studies and numbers. | EE study in 2014 shows UK retailers lose £1 bn in revenue due to long queues. BBC report proves supermarkets spend 5bn on brand promotions. |
| Market Growth? | Mobile advertising is at $18 bn as of 2015, and expected to grow to $42 bn by 2017. There are currently 7.4 smartphones per household in the UK. |
| Company Valuation for exit? | - Company valuation of £5m, due to risk involved. |
| Exit Strategy? | - Acquisition by Powatag - Merger with Zapp |
| Team Roles? | - Derek (Mobile, Cloud, devOps and Finances) - Varun (Mobile, Machine Learning, Ad platform and Marketing) - Claudiu (rest API services, UI and Supermarket relationships) |
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