Presentation on theme: "Its time to say “Good-bye to Alcohol Driving!” Introducing."— Presentation transcript:
Its time to say “Good-bye to Alcohol Driving!” Introducing
B USINESS P LAN
B USINESS A GENDA Company & Board of Directors Introduction Our Business and Window of Opportunity with Demand Product Description and Business Details Investment and Returns for Venture Capitalist Product Technology Marketing Strategy and Plan Financial Plan
Key strategy factorsWeightRatingTotal Creativity and innovation Sustainable competitive advantage Unique selling proposition Business risk Window of opportunity Profitability and growth Macro-environment and growth Market potential/ market share Funding for capital Competition Total G O / N O G O MATRIX
W HICH B USINESS ARE WE IN ? Securite Systems Pvt. Ltd. is in the business of Automobile Security Systems. We provide safety device called the “ Alcohol Detection and Ignition Interlock System “
S TATISTICS O F D RINK & D RIVE C ASES IN S INGAPORE Sources:
Statistics Of Drink & Drive Cases in Singapore Sources: Average from 2005 – 2008 280 Deaths & Injury 217 Drink & Drive Accidents 3757 Drink & Drive Arrests
P ENALTY FOR D RINK AND D RIVE IN S INGAPORE First Time – Drink driver will be fined between $1000/- and $5000/- or six months imprisonment. Repeated Time – Drink Driver will face enhanced punishment up to 3 times the penalty, a maximum of $30,000/- fine and three years' imprisonment. Offenders causing death or serious injuries can also be caned up to 6 strokes. License can be revoked.
D EMAND Demand predicted through surveys. Out of around 100 customers surveyed Survey Results show 79 % demand from the potential customers for the Alcohol Detection Systems. We Adopted the “Blue Ocean Strategy”
S ATISFY N EED OR S OLVE P ROBLEM ? Alcohol Detection and Ignition Interlock Systems addresses and solves the problem of Drunken Driving. Prevents accidents, deaths and injuries due to drunken driving. Can help the Singapore govt. to enforce as a rule. Solves a problem, which will eventually create need in future. Contribute to Corporate Social Responsibility
P RODUCT AND L OCATION Alcohol detector and Ignition Interlock System Components : Fiber Body Palm Detector & Steering Wheel Sensors. Helps to prevent ignition of the car if the person is drunk beyond a critical limit. Easily installable Launch Place : Singapore
USP & INNOVATION USP First mover advantage First ever continuous monitoring of BAC Cheaper than other safety devices like air bag Easily installable More Hygienic. Innovation Fool-proof and cannot be misused. Palm detection and Continuous monitoring Avoid breathalyzers which involves breathing.
IP & S USTAINABLE C OMPETITIVE A DVANTAGE We cannot get an IP or an Industrial design as it is assembled from variety of electronic components. SCA Innovation in Product & Service through Research and Development to make the product better. Contracts with Cabs Companies, Singapore Government
E NTRY & E XIT S TRATEGY Entry Strategy Capital Required from VC- SGD 250,000 Interest given to VC – 5% per annum. Exit Strategy – At the end of 4 th Year Interest for 4 Profit given at end of 4 th Year - 25% Profit. Total Return for the VC 33% Return on the Capital.
P RODUCT T ECHNOLOGY Transdermal/Galvanic sensor Palm Analyzer & Steering wheel sensing circuit Ignition controlled by a logic circuit Pre-defined BAC level of 0.08 and continuous monitoring. Detects for ethanol level from infrared beams Ignition cut-off of 3-minutes
B LOCK D IAGRAM
P RODUCTION P ROCESS Electronic components purchased from Progress Turned Parts Industries Private Limited Fibre palm and accessories purchased from Hoshe Fibre-Glass Works Fabrication, assembling and packaging done in the workplace Product installed in Servotronic Motor Workshop. Training provided to workshop employees through employed assembling experts $1500 monthly rental and $40 assembling charge paid to workshop
P RODUCT S IZE AND W AREHOUSING Palm Analyzer - 20cm x 15cm x 8cm Steering wheel sheet thickness – 0.5cm Logic circuit – 10 cm x 10 cm x 5cm Office Location – Serangoon Warehousing – 150 sq feet Assembling unit – 250 sq feet Office Space – 300 sq feet Transportation done through purchased marketing second hand cars
SWOT A NALYSIS StrengthsWeaknesses Life saving product First mover advantage Continuous monitoring feature Fool-proof Reduction in Ignition lag Add-on product Availability Acceptance, a matter of prestige Not a necessary accessory to all the car users Not a pre-installed accessory OpportunitiesThreats Rising drunk & drive road accidents Multiple distribution channel Large number of cab users Government Regulation Easy to imitate Backward integration Highly competitive in future
S INGAPORE M ARKET SURVEY ANALYSIS Number of RespondentsPercentage Singapore residents60/ % Facing Drunk n Drive problem in family17/ % Customers wanting to add ADS in their existing cars79/ % Customers wanting to have pre-installed ADS in new cars83/ % Customers willing to pay price to install in their existing cars (300 to 500) SGD22/ % (500 to 800) SGD47/ % (800 to 1000) SGD2/762.63% (<300) SGD5/766.58% Prefer to Hire a cab with a Logo - "I'm protected from AD (Alcohol Driving)"91/ % Prefer "On-call driver to help drive" in drunk scenario's over Cab56/10056% Sources:
T ARGET M ARKET Car Owners – Alcohol drinking drivers, family members of alcohol consumers. Cab companies Taxi companyBrandDominant ColorFleet ComfortDelGro Corporation,ComfortBlue11404 Singapore Technologies KineticsCitycabYellow3823 Union EnergyTranscabRed and White3139 Premier Rent A CarSilver CabSilver2056 SMART Automobile Pte Ltd.SMART cabsGreen724 SMRT CorporationSMRT TaxisWhite2579 Prime car rental & taxi ServicesPrimeCopper562 Total24287 Sources: Taxisingapore,2009
O THER POTENTIAL MARKET Rent-a-car companies - Hertz, Avis, BULLCARZ, Siang Hock, SMART, SG Car-Mart, Alpine, Super-one Night owl Services – SBS transit Secure night transport services. Car sharing Service providers – NTUC Income Car Cooperative Ltd – pay-per-use car system.
P OSITIONING An affordable and easy to use safety installable device to STOP alcohol drink and drive cases. Create a buzz – “Say no to Alcohol driving ”!
M ARKETING S TRATEGY Buzz marketing – “I am protected with AD!”
M ARKETING S TRATEGY Direct marketing - Road shows through second hand cars, Distributing pamphlets, free T-shirts, cleaning accessories in cars Viral marketing - Online webpage and s Indirect marketing - Advertisements in Cabs, Petrol bunks Promotions - Discounts to customers of partners, free service coupons, referral benefits.
F INANCE PLAN
F IXED A SSET Sources: Note: All cost in financial plan are in SGD
C OST OF R AW M ATERIALS Sources:
F IXED O PERATING C OST Sources: Interest Rate for VC is 5% per year Depreciation Method: Straight Line Depreciation Method
S ALES P ROJECTION Sources: Primary Research Sample Size of 100 as 0f 15 th March 2010 Online Survey
C APITAL R EQUIREMENT Reserve Cash = $12,200
C ASH F LOW S TATEMENT
I NCOME S TATEMENT
B ALANCE S HEET
B REAK E VEN A NALYSIS Total Fixed Cost = $ = Price = $500 Variable Cost = $237 Break Even Quantity = Total Fixed Cost Price – Variable Cost = = 693 Units 500– 237
P ROFIT G ROWTH
E XIT S TRATEGY FOR VC VC Interest Rate is 5% per year
R ATIO A NALYSIS
G RAPHICAL I NTERPRETATION
HARVEST STRATEGY Diversification of market and target car manufacturers Provide on-call support Data storage and retrieval system