the car brella final
TRANSCRIPT
The CarBrella
A quality product by Au Blaq
Au Blaq!
INFRASTRUCTURE- The Pain and the CarBrella in Action- Advertisement - Engineering Blueprints- Local Market ResearchOFFER- Contextual Insight- Staying Ahead
CUSTOMER- Sales and Marketing-Target Customer Groups-Distribution Channels and Partner NetworksFINANCE- Cost Structure- Revenue Streams and Pre-orders
The Pain
Carbrella in Action
Advertisement
The Carbrella
Engineering Blueprint
Engineering Blueprint
Engineering Blueprint
Engineering Blueprint
Market research
• Probability of rainfall• Local car population• Car owners’ expenditure
Probability of Rainfall
Probability of rain on any given day ≈ 52%
Singapore Vehicle Population
2007 : 541, 487Jul 2009: 592, 725
9.46% increase
Car owners’ expenditure
Average costs spent on a car/ month= $1000
$12,000/year
Market Research
10%
46%
32%
12%
How much are you willing to pay for such a product?
$0 - 10$10 - 20$20 - 50$50 - 100
Contextual Insight
• The Blue Ocean Strategy– New market– No competitors
• Explosion in size of car populations worldwide
1930 1940 1950 1960 1970 1980 1990 2000 2010 20200
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
10000000
World Car Population
Staying AheadProduct proliferation
Brand establishment
Brand recognitionProduct line expansion
Sales and Marketing
• Facebook• Magazine• Newspaper• TV ads
Target Customer Groups
• Car owners• Car dealers• Taxi companies
Distribution Channels Car
owners
existing•Supermarkets•Petrol kiosks
new•Car dealers
Car dealers
Sold along with cars•Add-on accessory
Taxi companies
Partner Networks
US
Manufacturers/Suppliers
Plastic
Springs
PVC Sheets
Distributors
Car Dealers
Retail Outlets
Petrol Kiosks
Authorities
LTA
SPRING Singapore
Banks
Cost Structure• Quotations:
– PVC material for shade: $2/metre– Spring mechanism: $5.10/spring– Plastic moulding: $2.80/piece– Assembly: $2/piece
• Approx. total cost per unit: $11.90• Total sunk costs for manufacturing: $3000
Revenue Streams• Pricing
– Single pack – S$19.90– Family pack (of 4) – S$69.90– Bulk orders (above 100) –
S$16.90 Each• Profit Margins - Per order of single pack: S$8 - Per order of family pack: S$22.30 - Per bulk order: S$5 per piece
Pre-ordersCategory Number of orders received
Friends 7
Neighbours 3
Relatives 12
Family 6
Total 28
Break Even PointBased on a conservative starting estimate for sales of 1000 units:
Estimated sales revenue: $ 16900Total cost of manufacturing: $ 11900Profits: $ 5000Monthly overheads: $ 11750Net profits: -$ 6750
Break Even PointBased on an estimate for sales of 4000 units:
Estimated sales revenue: $ 67600Total cost of manufacturing: $ 47600Profits: $ 20000Monthly overheads: $ 11750Net profits: $ 8250
Break Even Point•Based on an average increase of sales of 500 units a month
•In 7 months, we expect to reach sales volume of 4000 units monthly
•Gives us a break even point of 6-9 months!
Thank you for your kind attention!
Questions please?