core final presentation
TRANSCRIPT
1
Pyramid Play Mat is a board where kids can play with various toys and store toys once they are finished playing.
Our product aims to facilitate the tedious clean-up process associated with playtime.
2
Investor Snapshot
$267,486
Product Development
Sales & Marketing
Security & Compliance
Seed Round*
Equity 75% available for distribution
Project: Internal Rate of Return43%
Project: Net Present Value$585,119
3
Our Target Audience
People who’ve purchased children’s games/toys in
the past 12 months
45,160,000
14,171,390
Lives within 50 miles of their grandchild
4,545,360
Part of US Labor Force
“On the Move Mommies”
“Nearby Nanas”
- 25 – 54 y/o- Female in US Labor Force- Spent >$50 on kids toys in last year
- 55+ y/o, Grandparent- Live within 50 mi of grandchildren- Spent >$50 on kids toys in last year
4
Pyramid Play Mat vs. Competition
Price: $48
Price: $58.99
Price: $39.99
Stre
ngt
hsW
eakn
ess
es
• Travel size option• 12 color options• Simple, durable
• 4 mesh pockets• 5 sizes
• Lego board• Large play area• Comfortable• Protects creations
• No creation protection• No pockets• Small diameter• Only sold online
• No creation protection• High Price
• 1 style/color• Occupies large floor
space• Ltd. distribution
channels
5
Marketing Tactics
Magazine Ad.Banner Ad.Billboard Ad. $38,368
$143,005
$31,200
Year 1 2 3 4 5Marketing Expense 301,805.51$ 354,275.64$ 509,144.34$ 407,385.69$ 507,929.20$
Annual Advertising Cost
6
Demand Forecasts
1 2 3 4 5 -
50,000
100,000
150,000
200,000
250,000
Year
Uni
ts
1 2 3 4 5$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
Year
Demand: Units Demand: Dollars
Forecast: Sales
On the Move Mommies
Nearby Nanas
Total
Year 1 2 3 4 5Total Units 35,354 64,948 117,532 125,717 204,389 Manufacturer Sales 841,457$ 1,544,072$ 2,719,011$ 2,895,785$ 4,506,609$
7
Channel Distribution
Year 5
Year 4
Year 3
Year 2
Year 1
26%
38%
46%
63%
75%
23%
32%
35%
37%
25%
15%
22%
19%
29%
8%
Online Independent Retailers Mass Merchants
$39.99
$39.99
$39.99
$39.99
$37.90
$24.49
$23.77
$23.13
$23.03
$22.05
Chain Retailers
Manufacturer
Average Selling PriceRetailer
8
Internet Leverage
Parents Corner Homepage Creative Zone
9
Key Performance Indicators
Meeting Projections Conversion Rates
Developing realized transactions
Determine campaign effectiveness
Utilize A/B Testing
Compares actuals and projections
Are we satisfying demand?
10
Logistics
ConsumersShanghai Warehouse
Suppliers in China
Retailers
Website
Source & Shipping: 26.5 Days
Assembly: .5 Day Final Distribution
Port of Long
Beach, CA
11
Notable Expense: Cost of Goods Sold
COGS per Unit
COGS
Year 1 2 3 4 5COGS 363,177$ 599,560$ 1,053,843$ 1,268,215$ 1,763,029$ COGS/unit 10.10$ 8.90$ 8.33$ 9.39$ 8.07$
12
Notable Indicator: Inventory
Inventory Days
InventoryT
Year 1 2 3 4 5RM Units 855,509 1,344,125 2,287,803 2,456,653 3,523,399 WIP Units 691 1,295 2,433 2,597 4,203 FG Units 4,169 7,630 17,378 17,905 29,718 Total Inventory 165,022$ 266,042$ 471,494$ 522,806$ 743,280$ COGS 363,177$ 599,560$ 1,053,843$ 1,268,215$ 1,763,029$ Inventory Days 166 162 163 150 154
13
Quality Metrics + Standards
InspectionPreventive Measures
Utilize template to measure cut accuracy
Worker inspects all elements of fabric
Daily Calibration
Machines with high, guaranteed accuracy
14
Base Case Scenarios
Project: Internal Rate of Return43%
Project: Net Present Value$585,119
Year 1 Year 2 Year 3 Year 4 Year 5Sales Revenue $841,457 $1,542,368 $2,720,477 $2,897,022 $4,504,898Marketing Expenses $318,978 $402,893 $609,144 $507,386 $627,929Total IS Expenses $28,685 $9,812 $21,296 $25,286 $12,735% Sales 3.4% 0.6% 0.8% 0.9% 0.3%
15
Sensitivity
Variable Original Value NPV=0 % ChangeAwareness for Move Mommie 100% 91% -9%Variable Cost 100% 114% 14%Fixed Administrative Cost 100% 119% 19%Competition 100% 122% 22%Marketing Expense (Pull and Push) 100% 130% 30%Awareness for Near By Nana 100% 68% -32%ACV 100% 68% -32%Terminal Value 3,427,282$ 1,824,610$ -49%Fixed Production Cost (MOH) 100% 158% 58%
Terminal Value$3,427,28
2
16
Risk + Mitigation
Building + maintaning our relationships with
suppliers
Growing our marketing teams and hiring
experienced professionals
Tracking and updating our awareness and ACV
Increasing Variable Cost
High Marketing Expense
Competition + Losing Awareness
Year 1 2 3 4 5Competition 0% 0% 20% 30% 35%Manufacturer's Rep. 1 1 0 0 0Sales Force 0 0 1 1 1
17
Marketing
1. Sales Forecast2. Base Case Sales Foreca
st3. Best Case Sales Foreca
st4. Worst Case Sales Forec
ast5. Margins Breakdown6. In – Store Marketing Ta
ctics7. Base Case ACV8. Compensation9. Years 1-5 IMC
19
Sales Forecasts
20
Base Case Sales Forecast Breakdown
21
Best Case Sales Forecast Breakdown
22
Worst Case Sales Forecast Breakdown
23
Mar
gin
s B
reak
dow
n
24
In-Store Marketing Tactics
25
Base Case ACV
26
Compensation
27
Operations Management
1. House of Quality2. Primary + Secondary Suppli
ers3. Center of Gravity4. Factory Layout5. Make – Buy – Analysis6. Process Flow Diagram7. Year 1 – Organizational Struc
ture8. Year 5 – Organizational Struc
ture9. Cost of Goods Sold
28
Hou
se o
f Qu
alit
y
29
Pri
mar
y +
Sec
ond
ary
Sup
pli
ers
30
Center of Gravity
31
Fact
ory
Layo
ut
32
Make-Buy Analysis
33
Pro
cess
Flo
w D
iagr
am
34
Year 1 – Organizational Structure
35
Year 5 – Organizational Structure
36
COGS
37
Finance
1. Break-Even Analysis2. Base Case Income State
ment3. Base Case Balance Sheet4. Base Case Cash Flow5. Best Case Cash Flow6. Worst Case Cash Flow7. NPV Profile
38
Break-Even Analysis
39
Base Case Income Statement
40
Base Case Balance Sheet
41
Base Case Cash Flow
42
Best Case Cash Flow
43
Worst Case Cash Flow
44
NPV Profile
45
IMC
Year
1
46
IMC
Year
2
47
IMC
Year
3
48
IMC
Year
4
49
IMC
Year
5
50