WoofyyA smart device that helps dog ownersenhance emotional bond with their dogsanytime anywhere

# of Interviews to date: 115

The Team

Chang Li Dora Liang Kiki Liu Sharon Liu

EWMBA 16’

Hardware Engineer

FTMBA 15’

PR/Marketing

MIMS 15’

UI/UX Designer

EWMBA16’

Software Hacker

How the Story Begins...

Market Size

Americans love their dogs Giant market:

> 80 million home owned dogs

> 95 million home owned cats

> 56 billion total expenditures on pets

> 3 billion dog treat market

Mega Trends> 91% of pet owners say they consider their pet to be a member of their family

> Americans are working longer hours than anyone else

TAM

SAMTarget

6M

Dog owners

50 million dog owners

25 million upper middle

class dog owners

BMC Evolution

BMC Week 0

What We Learn about Our Customers

Custo

mer

Needs

Emotional NeedWant to show affection

and feel less guilty

Social Need“Show off” the dog

pictures

Dog’s benefits Healthier, happier dogYoung, urban professionals, first time

dog owners

Dog owners who spend significant amount of time away from home

Dog’s benefits Healthier, happier dog

Customer Archetype/PersonaMeet Bridget

Age early 30s

Marital Status Married

Kids No, but plan to

Job Manager at a consulting firm

Dog Riley (lab poodle)

Monthly spent on Riley $400-$500

Pains Inflexible schedule, hard to arrange dog walker, feel bad to leave the dog home, no way to interact with Riley while away, stressful, sensitive stomach, exhausted after daycare, emotional

Motivation curiosity, obsession, affection

Influencer dog trainer, dog breeder, FB page for dog owners

BMC – Customer Segment and VP Customer Segment

*Dog owners who

spend significant

amount of time away

from home

*Pet hotel operators

who want to provide

value-added service

* Young, urban

professionals, first time

dog owners

Value Proposition

*Woofyy enables dog parents to

check on their dogs while away

from home for a long time

*Dog parents can discover,

capture and share the precious

life moment of their dogs

*Woofyy will make the dog

parent happier by enabling

them to monitor and interact

with their dogs.

*make pets happier

Channels

WWW.

WOOFYY

.COM

LOCAL

MOM

& POP

Animal

Shelters

BMC - Channels

Channels

*Direct online sale

*Mobile app stores

*Apple Store

*Local pet stores

*Doggie day care &

hotel

*Animal shelters

*Online retailer (i.e.

Amazon)

*Kickstarter

*Mom-and-pop pet

shops

● Manufacturer to investor

● Share risk

● Leverage expertise

● Value-added service

● Customer awareness and education

● Share the revenue

Key Partners

OEM Pet Hotel

BMC – Key Partners Key Partners

*Manufactures

*Retailers

*Pet Shops

*Pet Hotels

WOOFYY

Initial Buy

& Upgrade

Physical

Product Sale

Subscription

Online Video

Storage

Treat SupplyAdd-on

Games

Sponsorship

Pet Food

Company

Accessories

Revenue Stream

Item Cost

Basic components $45

Plush toy $6.5

Shipping&

Handling

$4.6

Packaging $0.5

Total $56.6

Item Cost

Initial Engineering

development cost

$75,000

Tooling $35,000

BOM

Serverhosting

SG&A

Startupcost

Cost Structure

Marketin

g

BMC – Revenue & Cost

Revenue Stream

*Product sales

*Woofyy-branded treats (subscription)

*Accessory/Add-on sales

*Potential software premium feature subscription

*Potential pet food company partnership revenue

share

Cost Structure

*Ongoing R&D

*Device manufacturing

*Marketing/Channel development

*Data processing & storage server hosting

*Startup Cost(tooling, prototyping, etc)

BMC - Final

MVP Development

MVP 1.0Stimulus

Respond

Learning from MVP 1.0

StimulusVALUE PROPOSITION

* Customers want to engage

with dogs.

Noise from Customers

Device can

play with dog

Automatic

train the dog

More Games

Correct dog’s

behaviorSolve

separation

anxiety

problem

An “Open Platform”

to support all customer needs?

Week of Panic

Back to Life – MVP 2.0

1-day User Test

2-day User Test

3-day User Test

Simplified

Fun

Dog-

Friendly

Learning from MVP 2.0

Dog & owner “may get

bored soon”

“More than giving treats”

“See my dog

without effort”Auto Dog Face Tracking

Need to explore

games/courses etc.

MVP 3.0

“More than giving treats”

Engagement

WTP Test – “Write me a check”

Price # of Customers

$100-200 5

$0-$50 3

Sorry, No 3Customers bring up

detailed questions

“Show me your product”

Team Woofyy Emotional Index

Concept

Formation

Redefine

Target

Customer

MVP 1.0 Channel

Discovery

Customer

Relationships

The

“Grand

Open

Platform”

MVP 2.0 BOM $56 $$??

Woofyy for

horses?

Week 1 week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10

Financial AppealPer Analysis

Revenue Per Device Sale $199.00

Treat Subscription $46.56

Accesory sales $10.00

1-year revneue per customer $255.56

Distribution $26.87

COGS-Device $56.60

COGS-Treat $36.00

CAC $84.00

Variable Cost $203.47

Contribution Per Sale $52.10

Start Up Cost $110,000.00

# of device required to cover startup

cost 2,111

Financial Appeal (cont’)

Financial Projections (Initial investment $2M)

Period Q1 Q2 Q3 Q4 Y1 Total Y2 Y3

# of devices sold 300 400 600 1,000 2,300 3,600 $5,600.00

Gross Revenue $76,500 $102,000 $153,000 $255,000 $586,500 $950,400 $1,534,400

Net Revenue $68,441 $91,254 $136,881 $228,135 $524,711 $864,432 $1,684,844

cash burn for

period -$334,539.50 -$329,386.00 -$319,079.00 -$298,465.00

-

$1,281,469.50 -$327,328.00 $899,404.00

cash

remianing/end of

quarter $1,665,460.50 $1,336,074.50 $1,016,995.50 $718,530.50

$

(562,939.00) $ (890,267.00) $9,137.00

Market Size 1.0

• Americans love their dogs Giant market:

> 80 million home owned dogs

> 95 million home owned cats

> 56 billion total expenditures on pets

> 3 billion dog treat market

Mega Trends> 91% of pet owners say they consider their pet to be a member of their family

> Americans are working longer hours than anyone else

TAM

SAMTarget

6M

Dog owners

50 million pet owning household

25 million upper middle

class dog owners

Market Size 2.0

• Americans love their dogs TAM:

> 121 million households in US

> 42% own pets

SAM:> 32% with 75K+ annual household income

> 92% live in urban areas

> 50% age between 25 and 44

Initial Target> 7% interviewed showed affirmed WTP

TAM

SAMInitial Target

534K

Households

50 million dog owners

7.5 million middle class

urban living young dog-

owning household

Go or No Go?

Financial Appeal Market Size Problem Solving

Ideal 100%

Hell No (0%)

Woofyy

Conclusion: No go for the treat dispenser

However…

Learnings

Entrepreneurship

Ask for behaviors,

not features

What problem to solve?

Emotional need or

an engineering product?

Find kickass feature and

stop over-engineering

Seeing is believing: the

importance of MVP

Stick to your profound

belief

Always use WTP test to

find out true concerns

Thank you!Q&A?

Appendix

Per Analysis

Revenue Per Device Sale $199.00

Treat Subscription $46.56

Accesory sales $10.00

1-year revneue per customer $255.56

Distribution $26.87

COGS-Device $56.60

COGS-Treat $36.00

CAC $84.00

Variable Cost $203.47

Contribution Per Sale $52.10

Start Up Cost $110,000.00

# of device required to cover startup

cost 2,111

Financial Projections (Initial investment $2M)

Period Q1 Q2 Q3 Q4 Y1 Total Y2 Y3

# of devices sold 300 400 600 1,000 2,300 3,600 $5,600.00

average retials

selling price per

device $199 $199 $199 $199 $199 $199 $199.00

Other revenue per

customer $56.00 $56.00 $56.00 $56.00 $56.00 $65.00 $75.00

Gross Revenue $76,500 $102,000 $153,000 $255,000 $586,500 $950,400 $1,534,400

(less) channel

discount (15%) $8,059.50 $10,746.00 $16,119.00 $26,865.00 $61,789.50 $85,968.00 $125,370.00

Net Revenue $68,441 $91,254 $136,881 $228,135 $524,711 $864,432 $1,684,844

(less) COGS-Device $16,980.00 $22,640.00 $33,960.00 $56,600.00 $130,180.00 $203,760.00 -$316,960.00

(less) COGS-Treat $10,800.00 $14,400.00 $21,600.00 $36,000.00 $82,800.00 $108,000.00 $134,400.00

(less)marketing

(customer

acquistion) $25,200.00 $33,600.00 $50,400.00 $84,000.00 $193,200.00 $180,000.00 $168,000.00

(less) operation

costs $50,000.00 $50,000.00 $50,000.00 $50,000.00 $200,000.00 $300,000.00 $400,000.00

(less) R&D $300,000.00 $300,000.00 $300,000.00 $300,000.00 $1,200,000.00 $400,000.00 $400,000.00

cash burn for

period -$334,539.50 -$329,386.00 -$319,079.00 -$298,465.00 -$1,281,469.50 -$327,328.00 $899,404.00

cash

remianing/end of

quarter $1,665,460.50 $1,336,074.50 $1,016,995.50 $718,530.50 $ (562,939.00) $ (890,267.00) $9,137.00

Financial Appeal