Widget

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Widget
Version of April 1, 2005

Team Ben Franklin, bfranklin_at_seas.upenn.edu Amy
Guttman, aguttman_at_pobox.upenn.edu
CONFIDENTIAL This product idea or invention is
confidential and is presented solely for the
purpose of evaluation in PennVention. This
document may not be reproduced or redistributed
in whole or in part. By accepting a copy of this
document, the recipient agrees not to reproduce
or disclose the contents of this document to
third parties without the prior written consent
of its authors.
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Guidelines for Powerpoint Slides

• PennVention slide decks will be read by judges,
  not projected for an audience.
• Use black text on white background, with the
  possible exception of titles.
• Use color for emphasis.
• Typeface no larger than 14pt for most text.
• Slide decks may not exceed 10 slides.
• Make slides dense with graphical, visual
  information.
• If you insert images make sure they are of the
  appropriate resolution (typically 300-800 pixels
  on the longest sidedont insert a 5MB jpg
  image).
• It is each team's responsibility to provide
  sufficient information to address each of the
  evaluation criteria in the PennVention 2009
  Judging Criteria. Judges will be instructed to
  evaluate you on each statement in the criteria,
  even if you have not provided sufficient
  information to make an evaluation.
• The following slides are real examples used with
  real business plans and were not created just for
  PennVention. Therefore, they may not be
  appropriate for your presentation needs.
  Nevertheless, they give some examples of how
  innovations are presented in practice.

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Example 1 Xootr Scooter
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• Sweet ride.
• Gets small quick.
• Goes where you go.

(Alpha Prototype)
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Benefits Xootr is Fun Fastest Way from A to B

• Substantially faster than a skateboard because of
  larger wheel diameter.
• Stable at high speeds because of steerer and
  larger wheels.
• More versatile than inline skates
• can cruise around, hang out, go in stores, etc.
  without changing in/out of skates.
• Feels really fast because the rider is low to
  ground.
• High potential for trick/extreme stuff. Handlebar
  plus deck gives trick properties of both a BMX
  bike and a skateboard. Really easy to jump.

Xoot _at_ 9 mph
Save 7 minutes over walking.

• For distances of less than 1.5 miles, the Xootr
  is the fastest mode of transportation (assuming
  set-up time for a bike or skates).
• The Xootr is transparent to public
  transportation it goes on the bus/train.
• The Xootr can be stored in a locker or can be
  easily carried it weighs about as much as a
  laptop computer.

Ride at 12 mph
Walk to bike rack
Walk from bike rack
Unlock
Lock
Trip of 1/2 mile
Skate at 9 mph
Put on skates
Take off skates
Walk _at_ 3 mph
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10
minutes
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The Market

• Segment 1 Campus transportation
• College campuses
• 14.4 million students in post-secondary education
  in U.S.
• 500,000 college students at 20 largest
  warm-weather campuses
• e.g., big schools in California, Texas, Florida,
  Georgia, Arizona, etc.
• 64 of all college students have at least one
  credit card. Most acquire this card in their fit
  year of college. (Credit Risk or Credit Worthy?
  Colleges Student and Credit Cards, A National
  Survey, June, 1998. The Education Resources
  Institute, Boston, MA)
• College students have Internet access, need the
  product, and geographic concentration helps
  create buzz.
• Segment 2 Youthful recreation
• Youth age 12-19 (32 million in U.S.)
• Recreational adult user
• 7 million people age 23-35 with incomes
  40k/year in urban environments.
• Segment 3 Commercial/Industrial employee
  transportation
• high-tech campuses, factories, airports,
  warehouses, film sets

Segments 1 and 2 comprise 30-50 million potential
customers.
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Customer Profile - College Campus Segment

• Male
• Sophomore or junior in college (obtained credit
  card in Freshman year)
• Lives within 1 mile of campus
• Attends college in California, Southwest, or
  South
• Purchases CDs, books, clothing on internet with a
  credit card
• Moderately athletic uses rollerblades and/or a
  bike
• Has discretionary income for clothing, sporting
  equipment, entertainment
• Thinks for himself an early adopter of new
  products

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Consumer Testing

• Alpha prototype tested with approximately 75
  potential customers
• Palo Alto young professionals
• California kids
• Sausalito residents, including bike store owner
  and yacht owners
• Stanford, San Francisco State students
• Young adults in Golden Gate Park
• Moderately positive response
• Where can I buy it NOW? -30 year old male Palo
  Alto surfer
• I have to carry this in my store. -Sausalito
  bike store owner
• Super cool! - Monica, Stanford undergrad
• Predicted purchase rate of 2-5 of those aware of
  product in target market segments. If
  awareness/availability reaches 10 of a 30 - 50
  MM person market, sales potential is therefore
  60,000 - 250,000 units depending on
  adoption/diffusion rates.
• A key result from testing People want to try
  before buying!

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Risk Factors(mitigating actions in parentheses)

• Product risk
• We have proven that the product works, meets
  customer needs, and can be produced at reasonable
  cost. However, there could be unanticipated
  reliability or performance issues that could
  hamper sales. (We will seek to minimize this risk
  by rigorous product testing.)
• Market risk
• The product may be viewed as too silly for
  widespread adoption. (We are testing the product
  with consumers actively and continuously. In
  California, this issue does not appear prominent.
  However, in Philadelphia, some potential
  customers raise the silliness concern.)
• Consumers may not be willing to pay over 200 for
  a scooter. (Initial testing suggests that some
  consumers view 200 as too high. However, many
  consumers readily pay 200 for in-line skates,
  suggesting that at least some segment of the
  market will accept a 200 price point.
  Furthermore, Nova Cruzs most obvious competition
  is similarly priced. If Nova Cruz sells directly
  to consumers, the price can be reduced to about
  175 if necessary.)
• Demand for product sold directly through the
  companys web site may not be strong enough to
  sustain the company. (We intend to conduct
  interviews with retailers in June and July to
  determine their interest level. We plan to test
  market in September using both the direct and
  retail channels. If the direct sales channel is
  unlikely to provide adequate demand, we will be
  able to pursue the retail channel.)
• Competition
• Our technology is not revolutionary. Many
  companies can build a scooter. Many companies
  have better distribution than we will. (We are
  focusing on building a strong brand quickly. We
  are filing patents on our product. We plan to
  achieve substantial market share and mind share
  by the end of the first two years of operation.
  If vigorous competition emerges, we will be
  positioned to be the market leader.)
• Liability risk
• We believe that the product does not present
  unreasonable risks, I.e., it is substantially
  safer than in-line skates. However, if a lot of
  people use the product, someone will be injured.
  Injuries may lead to law suits. (We will seek to
  minimize this risk through a safe design, through
  customer education, and through insurance.)
• Implementation risk
• Nova Cruz is a geographically dispersed team. We
  have never manufactured a product before. (The
  team has successfully completed many projects
  together before. We plan to hire an experienced
  operations manager in the first few months of
  operations. We will concentrate operations at
  Technique.)
• Financing risk
• If demand for the Xootr product is very strong
  and/or we decide we must go retail, Nova Cruz
  will require additional capital. (Once demand for
  the product is verified and Nova Cruzs
  capabilities are demonstrated, we believe that
  additional equity financing will be readily
  available.)

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Example 2 GrindAlert Bruxism Treatment
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The Problem Bruxism and TMJ

• Half the population grinds their teeth in some
  form. For 10 of Americans (29 million), the
  habit causes discomfort, jaw pain, and damaged
  teeth.
• Each year, over 3 million Americans seek
  treatment spending up to 1 billion on
  nightguards that cost about 375 each.

• Temporomandibular Joint Disorder results when
  excessive clenching and grinding cause damage to
  the jaw. This affects 10 million Americans.
• The symptoms can include head, neck and face
  pain, tenderness when chewing, migraine
  headaches, tinnitus, and jaw clicking.
• Many elect to have surgery to fix the damage.

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Primary Existing Solution Nightguards

• Generally custom fitted from molds taken from
  teeth.
• Most patients find them disgusting and compliance
  is low.
• They can only protect the teeth - do not stop the
  habit. Not a treatment.
• Cost varies from cheap 10 generic shells to 900
  custom fit. Average 375.

Mold taken from teeth
Formed nightguard or splint
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The GrindAlert Solution

• GrindAlert is a battery powered, miniature
  sensing device incorporated into a comfortable
  and adjustable headband.

• Using EMG technology, GrindAlert monitors muscle
  activity while you sleep and emits an audible
  tone when clenching occurs, alerting you of your
  grinding at the moment it happens.
• Sensors are placed at the temporalis muscles,
  which also flex during a clench, instead of the
  masseter muscles.
• Instead of sticky electrodes, conductive rubber
  pads are used to make contact with the skin.

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Electronic Module

• The heart of the GrindAlert is a small electronic
  module with a front control featuring
• Score - number of times you clench
• Time - duration of clenching
• Volume - of the tone
• Level - EMG threshold level amount of jaw force
  necessary to trigger the tone
• The back of the device features a piezo tone
  signal generator, similar to alarms found on
  digital watches.

A confidential tone generator replaces an
uncomfortable earpiece. The tone comes in three
levels

• FAINT - A faint tone begins immediately upon
  clenching and continues for 2 seconds, giving you
  time to stop.
• ALERT - If you don't stop, a louder tone sounds.
  Your SCORE increases one point, and the TIME
  function starts counting seconds.
• ALARM Starts after 5 seconds, and continues
  until you stop clenching or grinding.

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Competition EMG and Biofeedback Devices

• EMG Biofeedback devices are wired to the jaw with
  electrodes. They are usually loaned to the
  patient.

AT53 1,300
Myotrac2 1,500
Cycura 195 The worst of all worlds
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Proprietary Position

• 2 U.S. Patents granted with significantly broad
  claims.
• High barrier to knock-offs due to sophistication
  of circuitry.

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Manufacturing and Cost
Manual
Report Card
Screwdriver
Batteries
Jewel Case Box
Electronics Module
Headband

• GrindAlert build price of XX. Sell for XXX
• Volume discounts down to XXX/6 units.
• Disposable headband sales Make for XX, sell for
  XX ea. in 6-packs.
• Batteries, extra score cards, other peripheral
  support.

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Example 3 Voloci Motorbike
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Market

• 50cc-class motorbikes
• existing 3 billion market
• 2.5 million units sold per year in Europe, US,
  Australia, Taiwan, Japan
• Dominant product technology
• 2-stroke air-cooled internal combustion engine
• Two basic configurations scooter and moped
• Many different applications fun, commuting,
  youth mobility, postal service, tourist
  transportation
• Aggressive incentives in Europe for electric
  vehicles
• up to 1000 direct-to-consumer rebates (in some
  municipalities in Italy)

Honda Supercub c1958. The Supercub is the best
selling vehicle in the world (30 million units to
date).
Current State of the Art Aprilia Scarabeo 50cc
motorbike 2399.00, 156 lbs, 2-stroke air cooled
gas engine
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Target Segments
Urban Transport Jonathan, 31 - Copy Writer, New
York City He uses it as his primary
vehicle Recreation The Ayers, 40s Rochester,
New York They use it for recreation and fun at
their vacation home! Suburban Fun/Utility Nancy,
40 Professor, Philadelphia She uses it for
commuting, recreation and keeping up with
kids Off-Road Scott, 35 Software Engineer,
California He uses it for general
transportation and off-road riding. Seniors Art,
65 Retiree, Florida He uses it to get around
his community and the local beachfront in style!
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US Market

• 50cc-class motor scooters
• 100,000 units/year
• 67 annual growth rate for last three years
• Investments by Piaggio (Vespa), Aprilia, Yamaha,
  Malaguti
• Electric stand-on scooter market
• 75,000 units in 2000
• estimated 100,000 units (400) in 2001
• Electric bicycle market
• 35,000 units in 2000
• Efforts by Ford/Th!ink, Mercedes, Giant, Currie
  to establish market.
• Currently still somewhat geeky

European Market

• 50cc-class motor scooter market is 1.4 mm
  units/year in Europe.
• 1 mm units are sold in Italy and Spain.
• Substantial government incentives in Italy.
• By January 2002, mandatory yearly inspection of
  gasoline powered motorcycles in Italy (Bollino
  Blu) 30 of the scooters on the road are
  expected to fail the new European Emissions
  Standard (Euro 2)

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Voloci nX30 Electric Motorcycle

• Specs and Features
• Proprietary brushless motor and controller
• Integral motor housing and frame
• Fast charger (3 hour charge)
• 30 mph/50 kph top speed
• Climbs 25 grade
• 60 lbs/27 kg vehicle weight
• 24 mi/40 km range
• Front/rear disc brakes
• Front triple-clamp suspension
• Rear proprietary rising-rate suspension
• Modular/swappable 16lb/7kg battery pack
• Full DOT compliance (motor driven cycle)

MSRP 1995 2495 (depends on volume/investment)
Note Industrial design of seat, seat frame,
fenders, and fairing is still under development.
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What is Unique and Proprietary about the Voloci?

• Brushless motor (85 efficiency)
• proprietary, custom design in collaboration with
  low-cost producer of brushless motors.
• Brushless motor controller
• microprocessor-based controller
• timing advance, current/speed limits,
  temperature sensing
• System electronics
• smart battery management
• accessory power management
• Rear suspension
• highly compact rising-rate design
• economical
• Frame/battery system
• modular battery brick

Anyone can put a motor on a bike. Its really
hard to build an electric motorcycle that goes 30
mph, weighs 60 lbs, and that can be built for
900.