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Ali Al Matrouk Huda Al Mousa Khaleefa Al Khaldi Naser Al Shaibani Nayef Al Smairi Noor Al Abdulrazzaq Saud Al Subaie July 2, 2012 A Team 5 Presentation.

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Presentation on theme: "Ali Al Matrouk Huda Al Mousa Khaleefa Al Khaldi Naser Al Shaibani Nayef Al Smairi Noor Al Abdulrazzaq Saud Al Subaie July 2, 2012 A Team 5 Presentation."— Presentation transcript:

1 Ali Al Matrouk Huda Al Mousa Khaleefa Al Khaldi Naser Al Shaibani Nayef Al Smairi Noor Al Abdulrazzaq Saud Al Subaie July 2, 2012 A Team 5 Presentation

2 2 Contents  Project and Market Analysis - Need in the Market Place - Positioning Statement - Clear Plan’s Vision - Competition - Market Size  Implementation and Execution - Business Model & Stakeholders - Marketing Strategy: Engaging Critical Stakeholders - High Level Implementation Plan - Budget and Investment Requirements  Investment Request & Structure  Concluding Slide  Appendix

3 3 Lack of Info to High School Students: Missed Opportunities & Lost Yrs surveys 20 in-depth interviews with stakeholders: high school students, parents, & principals 4 Core Problems Application process and deadlines 1 in 5 miss a year because misinformed Low GPA – what’s next? 1/3 surveyed want to know what to do Scholarship Options 50% know a little or nothing about options Selecting a major Only 6% speak to a professional in their field Government schools don’t have counsellors. “I count on my friends for advice” - Student 43%

4 4 Positioning Statement and Value Proposition “I love it”- Parent In School Presentation Events One on One Counselling To high school students and recent graduates in Kuwait who plan to go to university, Clear Plan is a modern form of guidance counselling, which proactively offers a one stop shop for easy to understand information about scholarships, admissions, career & major selection, and low GPA graduate options. Website Annual Books

5 5 Clear Plan’s Vision and Mission A Kuwait with Informed and Empowered Students Who Make Smart Choices. Vision Statement Actively provide Kuwaiti students going to college with full admission requirements, scholarship options, major selection information and alternative options in a single location. Mission Statement “I want to sign up”- Student

6 6 Competition The market is underserved, there are a lot of half answers available, which is why 43% of students turn to friends/family for advice and the rest don’t know what to do. High Low Strengths Challenging to replicate: Proactive Holistic Convenient Ecosystem Weaknesses Low Barriers Entry Opportunities Underserved market Substitutes: compliment service: source adverts Threats School counsellors NUKS School counsellors NUKS Source: Proprietary Survey

7 7 Market Size With over 100,000 high school students in Kuwait growing at 2.15% annually this market is very appealing k Students in Year k Students in Year 2 “5 out of 5!!!” - Principal Source: Statistics provide by Ministry of Higher Education

8 8 Business Model & Stakeholders Limited start up costs with a variable cost operational model, and the creation of an ecosystem that feeds other products. Community FacultyFamilyFriendsSponsorsInvestorsMoHENUKSInjaaz College Prep Suppliers Dedicated Manager Distributi on Channels Product Features Lucrative Partnershi ps Deal Website Schools Proprietary Events Office Co’op stores Languages Book versions Alert App Forum Just in time inventory Website Customer Community

9 9 Product In School Presentation BooksWebsiteEvents In Person Counselling Revenues Year 1 NAKWD 189kKWD 9 kKWD 20 kKWD 6 k Price - User Free 22 KWD (senior) 14 KWD (high school) Free 20 KWD per session Price - Sponsor NA 1,000 KWD Premium Ad 300 KWD 300 KD Premium / Month 80 KWD 1,500 KD Premium 500 KD NA Place School Schools Website Event Selected Coop’s WebsiteBallroomOffice Promotion Social media, viral, YouTube, School, Event Website, Book, Multilanguage People - User Students Public Students Private Students Parents Counsellors Students Parents Counsellors Students Public Students Private Students Public Students Private People - Sponsor NA Local universities - Future Employers Local test centres - Competitors NA Marketing Strategy: Engaging Critical Stakeholders Feed each other Product Versioning LanguageNeeds Multi Distribution Channels Max Mkt Share

10 10 High Level Implementation Plan A phased implementation plan minimizes our risk, improves our execution effectiveness, and allows us to grow market share while allowing us flexibility. Phase 1 – Summer (1 month) Establishment Find a headquarter location and purchase Equipment. Hire employees and obtain licenses. Phase 2 – Summer (2 months) Develop Content Complete content for University Book. Build/Launch website. First contact with schools. Fall - Phase 3 (4 months) Execute Print and distribute University books. Launch Marketing Campaign. Contact Sponsors. Initiate School Visits. Event 1. Complete content for Major Book. Spring - Phase 4 (3 months) Expand Event 2. Launch Major Book. Establishment Develop content Summer Launch University Book Midterms Event 1 Fall Launch Major Book Midterms Event 2 Finals Spring

11 11 Budget and Investment Requirement Key cost assumptions have been verified by suppliers, with phased implementation mitigates risks. Cash Flow Positive Yr 1 Budget & Establishment Costs Staff Cost (KWD)Unit (KWD) Costs Accounting1501,800 Administration4505,400 Book distribution3007,200 Counselors70033,600 Sponsors/marketing8009,600 IT8009,600 67,200 Variable Costs (KWD)Unit (KWD)Costs Book Publication ,100 Event ,000 Marketing5,000 24,100 Fixed Costs (KWD)UnitCosts Rent 600 7,200 Office Equipment 3,000 Website Development 7,000 Cars and Transportation 5,000 22,200 Total Costs 113,500 Conservative cost assumptions verified from sources. 2 Books developed, each in English and Arabic. Team of 10 full time employees. Counselors take a salary cut in exchange for an equity stake. Cashflows generated will cover event costs, and salaries after the third quarter as well as all costs after the first year. No sales in the summer. Two events held per year with sponsors covering costs of events. Distribution network covering 3 governents. Assumptions

12 12 Investment Request *Discount rate of 25% and assumes no terminal value.  Clear Plan will be able to achieve high returns from a well defined expansion plan that creates value for the customer and stakeholders, and a dedicated and knowledgeable management team. First round of investment KD 83,000 – seed money to cover start up costs. Proposed structure increases ROI by lowering costs, and incentivizes employees to accelerated growth. ShareholderValue2 Yr NPV*Equity Stake Cornell InvestmentKD 83,000KD 80,16740% Founders StakeKD 124,500KD 120,25060% TotalKD 207,500KD 200,417100%

13 13 Clear Plan  Need in the Market Place - Lack of information to high school students results in lost opportunities  Clear Plan - Empowering Kuwaiti Students to Make Smart Choices  Solution - Books, Website, Events, In Person Consults, School Presentations  Competitive advantage - Proactive, Holistic, Convenient Ecosystem  Market Size - 100,000 high school students growing 2.15% p.a.  Business Model - Book sales primary revenue - Engage all stakeholders to maximize market share - Advertisement secondary revenue stream - Convert potential competitors into partners  Marketing Strategy - Free – 22 KD - Products promote each other - Product versioning - Multi channel distribution strategy  Budget - Limited start up cost and variable cost model  Implementation Plan - A phased approach minimizes risks and costs  The Deal - 83,000 KWD for 40% Equity

14 14 Appendix

15 15 Management Team Supplier Relationshi p Nayef Al Smairi Sponsors Noor Al Abdulrazzaq Finance Saud Al Subaie IT ?? We have a strong founding team with diverse strengths – minimizing start up costs because of willingness to work for equity. School Relationship Operations Ali Al Matrouk Strategy Huda Al Mousa Event Management Khaleefa Al Khaldi Marketing Sponsors Naser Al Shaibani

16 16 Financials Income Statement RevenuesQ1Q2Q3Q4Year 1Q12Q23Q34Q45Year 2 University Book062,36843,65818,711124,737082,48657,74024,746164,972 Publics School036,49325,54510,94872,987055,83539,08416,750111,670 Private School025,87518,1137,76351,750026,65118,6567,99553,303 Major Book0027,90741,86069,767025,7238,57425,72360,020 Publics School0011,10716,66027,767012,7454,24812,74529,738 Private School0016,80025,20042,000012,9784,32612,97830,282 Total Book Revenues062,36871,56560,571194, ,20966,31550,469224,992 Book Advertising09, Web Advertising2,280 9,1202,280 9,120 Personal Counseling02,000 6,00002,000 6,000 Event Sponsorship010, ,000010, ,000 Total Revenues2,28085,64875,84574,851238,6232,280131,48970,59564,749269,112 Costs & Expenses Variable Costs University Book01,8171, ,63402,4031, ,806 Major Book001,3362,0033,33901, ,2312,872 Events Costs03,0000 6,00003,0000 6,000 Staff Costs15,00016,800 65,40018,900 75,600 Prop Events04,0000 8,00004,0000 8,000 Marketing02,5001,0001,5005,0001,5001,0001,5004,000 Fixed Costs00 Rent1,800 7,2001,800 7,200 Office Equipment3, Website Development4,5002,500007, Cars and Transportation5, Total Costs29,30032,41722,20729,648113,57222,20032,33424,29229,652108,478 Net Profit-27,02053,23253,63745,202125,051-19,92099,15546,30235,097160,634

17 17 Financials Balance Sheet Assets Cash 51, , , , , , , ,630 Inventory 4,424 5,156 2,548 3,634 5,726 4,044 3,055 Office Equipment (written off) Cars and Transportation (written off) Total Assets 55, , , , , , , ,685 Equity Capital 83,000 Retained Earnings (27,020) 26,212 79, , , , , ,685 Total Equity 55, , , , , , , ,685 Cash Flow Statement CFO Net Income (27,020) 53,232 53,637 45, ,051 (19,920) 99,155 46,302 35, ,634 (Increase) Decrease in Supplies (4,424) (732) 2,607 (1,086) (3,634) (2,092) 1, Total CFO (31,444) 52,500 56,245 44, ,417 (22,012) 100,837 47,291 35, ,213 CFI (Included in CFO) CFF Capital Injection 83, Total CFF 83, Net Change in Cash 51,556 52,500 56,245 44, ,417 (22,012) 100,837 47,291 35, ,213 Beginning Cash - 51, , , , , , , ,417 Ending Cash 51, , , , , , , ,630

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