crescendo columbia 2015
TRANSCRIPT
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Lean Launch Pad – Day 5
Effortlessly create customized, high quality music to enhance your video memories. No musical know-how required.
Cohort 4, Team 18:Lawson Anderson ● Zhedong Chen ● Ethan Cohen ● Jon Merkin ● Drew Silverstein
Interviews since last class: 17Total interviews this week: 84 Total test videos created: 12
Business Model Canvas – Initial
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenues Streams
Millennial (Personal) Consumers:
● App store/mobile app
● Website Download
Creative Professionals:
● SaaS Web App
● SaaS Marketplace
Millennial (Personal) Consumers:
● Digital influencers (articles / blogs)
● Customer loyalty features
● User community
● Search advertising
Creative Professionals:
● Salesforce
● Referrals
● Technical support/Account manager
Millennial (Personal) Consumers:
● Create videos mobile devices
● Share with friends and family
● Made for personal use
Creative Professionals:
● Create content for other businesses
● Ad agencies (creatives)
● Freelance producers
Both Segments:
● Worker salaries
● Office space
● Technical services (e.g., AWS)
● IP protection, legal fees
Creative Professionals:
● Advertising
Millennial (Personal) Consumers:
● Free product with 10 songs free
● Then $2.50 for each ten published/exported songs
● Option for $5/month subscription with unlimited access
● Exports mp3 file-type only (mobile use case)
Creative Professionals:
● Offer promotional one-month free trial
● Subscription for $100/month with unlimited access
● Exports WAV file-type only (desktop use case)
Both Segments:
● Promoters (bloggers)
Millennial (Personal) Consumers:
● Tent pole users (e.g., online celebs)
● Sponsored users who promote
Millennial (Personal) Consumers:
● Video content improvement
● Accessible, high quality music
● Ease of use
● Speed / time savings
Creative Professionals:
● Avoidance of copyright issues
● Accessible, high quality music
● Ability to easily iterate song creation
● Cheaper than the current options
Millennial (Personal) Consumers:
● Users must create videos
● Seamless product functionality
● Must view music as a commodity
Creative Professionals:
● Companies must create content
● Must view music as commodity
Both Segments:
● Backend technology
● Programmers/developers
● Music analysts
● Server space (e.g., AWS)
Creative Professionals:
● Salesforce
● Product support professionals
Business Model Canvas – Final
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenues Streams
Personal:
● App store/mobile app
● Website Download
Professional:
● SaaS Web App
● SaaS Marketplace
Personal:
● Digital influencers (articles / blogs)
● End credit title card, default social
media credit, no audio branding
● Search advertising
● Referral incentives
Professional:
● Salesforce
● Referrals
● Technical support/account manager
● VidCon (ComiCon for Social Media)
Personal
Initial Customer Segment:
● Mothers with kids ages 0-5
Future Customer Segments
● College students
● Young adult adventurers
● Self-interested travelers
● Socially absorbed teens
● Pet owners
● GoPro Users
Professional:
● Video editors (work for a media co.)
● Video producers (freelance)
● Social Media Managers
Personal:
● Employee salaries
● Office space
● Technical services, licenses, and subscriptions
● Computer hardware and software
● Legal
● Accounting
● Marketing
● Coffee. Lots of coffee.
Personal:
● Free product with 1 week free
● Referral = 10 songs free
● Then $4.99 for each ten song creation pack
● Exports mp3 file-type only (mobile use case)
● Option for $5/month subscription with unlimited access
Personal:
● Tent pole users (e.g., online celebs)
● Existing video editing and social
media applications
● Amazon Web Services
● Legal and Accounting
● Early-stage outisde investors
● Startup-friendly bank
● Sponsored users who promote
Personal:
● Ease of use
● Speed / time savings
● Video content improvement
● Accessible music
● Creative tool for young kids
● Create music independent of video
Professional:
● Accessible, high quality music
● Ability to easily iterate song creation
● Cheaper than the current options
● Each track is unique
● Speed / time savings
● Avoidance of copyright issues
Personal:
● Back end software development
● Front end UI/UX development
● Website development
● Server hosting and processing
● Physical and digital marketing
● IP Protection
● Accounting
● Fundraising
Personal:
● Developer(s)/Programmer(s) (1-2)
● Audio sample content creators (2)
● Business management (1)
● Patent(s)
● Capital Investment
Product-Market Fit
“Compose the soundtrack of your life in seconds”
“No more royalty free music”
Day 1: Initial Hypothesis
Days 2 – 4: Listening to Customers
Day 5: Refined Positioning
“Create professional, customized music in under 1 minute with just a few clicks”
- Ease of use- Speed of results- Enhance content
- Unique music- Time savings- Sound quality
Personal
Professional
Customer Segmentation
Day 1: Broad Groupings
Days 2 – 4: Narrowing the Archetypes
Day 5: Identify Initial Target Archetype
Vs.
-Who are they?
-What are their pains?
-How are they similar? Different?
Personal
College Students
Social Teens
Parents
Pet Owners
Adventurers
Professional
Editors
Producers
Social Media
Managers
Mothers of Young Children Ages 0-5
Name:GretchenAge: 31Children:Asa, 8 mo.Location:UrbanIncome: Middle
• Reads Parenting and Oprah Magazines• Eager to capture memorable moments
on iPhone 6; 5-7 videos per week• Takes and shares recommended
products/services with other young moms at daycare pickup
• Willing to spend disposable income on products/ services related to child
• Always keeps phone nearby when with Asa mornings, evenings and weekends
“Get – Keep – Grow” Strategy
Get
• Free trial and credits
• WOM, social media
• Blogs & listservs
• Influencers
• Play groups and baby classes
• SEO, Google Ads, Facebook Ads
Keep
• Consistent feedback
• Ensure ease of use
• Improvements and updates
• Referral program
• Predictive recommendations
• User community
Grow
• Referral program
• App updates / new features
• Offer video editing software
• Weekly rec’s for new uses
• Other customer segments!
“Keeping up with the Joneses”
Channel: App Store
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Our Company App Stores Consumers
App Stores30% Cut
Crescendo ProfitReferralCredit
Acquisition + R&D + Operating Overhead
Free Trial, Refer a Friend, Buy
Free Trial
Free Trial
Free Credit
Buy
Buy
Free Trial
Free Trial: 1 weekReferral: 5 songs freeBuy: $4.99 / 10 songs• In-App purchase• 30% App Store Cut
Free Credit
`
Key Resources, Activities, Partners
Developer(s) /Programmer(s)
Audio Sample Creators
Business Management
Capital Investment
Video Editing
& Social Media Apps
AWSLegal
Counsel
Tent Pole
Users
Angel & Institutional
InvestorsAccountant
Software & UI/UX Dev.
Server Space
IP Protection
Marketing Fundraising Accounting
Patents
Resources PartnersActivities
What’s Next for Crescendo?
• Continue to refine initial target segment• Prioritize back-end technology development• Refine UI/UX based on usability feedback
• Home in on remaining target segments• Refine business model for other personal users (e.g., GoPro)• Identify similarities/differences among segment preferences
• Better understand cost side of business• Model out overhead allocation per download• Drill down on profit per download
• Plan expansion into professional market• How to establish trust with professional users• Adaptation of back-end technology to differentiated UI/UX
APPENDIX
CrescendoEffortlessly create customized, high quality music.
No musical know-how required.
Select Video
Consumer Product Mock-Up 1
Consumer Product Mock-Up 1
Please select desired musical mood or feeling (up to 5):
Drama Action Comedy Horror
RomanticCool ConfidentMellow
Sparse Chill Tension More…
NextBack
Consumer Product Mock-Up 1
Try Another Option?
Consumer Product Mock-Up 1
Ready to Share?
Save to Library Facebook YouTube Vine
SnapChat Instagram Text Email
Consumer Product Mock-Up 1
CrescendoEffortlessly create customized, high quality music.
No musical know-how required.
Select Video
Consumer Product Mock-Up 2
Consumer Product Mock-Up 2
Please select desired musical mood or feeling (up to 5):
Drama Action Comedy Horror
Romantic Inspirational Reflective Mellow
Sparse Happy Tension More…
NextBack
Consumer Product Mock-Up 2
Try Another Option?
Consumer Product Mock-Up 2
Ready to Share?
Save to Library Facebook YouTube Vine
SnapChat Instagram Text Email
Consumer Product Mock-Up 2
Business Model Canvas – Day 2
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenues Streams
Millennial (Personal) Consumers:
● App store/mobile app
● Website Download
Creative Professionals:
● SaaS Web App
● SaaS Marketplace
Millennial (Personal) Consumers:
● Digital influencers (articles / blogs)
● Customer loyalty features
● User community
● Search advertising
Creative Professionals:
● Salesforce
● Referrals
● Technical support/Account manager
● VidCon (ComiCon for Social Media)
Millennial (Personal) Consumers:
Parents (especially w/ young kids)
- Ages 28-40, mostly female
College students (viral)
- Ages 18-22
Adventurers
- Ages 22-35, mostly male
Self-interested traveler
Socially absorbed teen
- Ages 12-18, mostly female
● Create videos on mobile devices
● Share with friends and family
● Made for personal use
Creative Professionals:
Video editors (work for a media co.)
Video producers (freelance)
Social Media Managers
● Create content on desktops
● Businesses are clients
● Made for professional use
Both Segments:
● Employee salaries
● Office space
● Technical services (e.g., AWS)
● Legal services (e.g. IP protection)
Creative Professionals:
● Advertising
Millennial (Personal) Consumers:
● Free product with 10 songs free
● Then $2.50-$5.00 for each ten published/exported songs
● Option for $5/month subscription with unlimited access* (validated, but are people just being
nice?)
● Exports mp3 file-type only (mobile use case) - validated, file size more important than audio
quality
Creative Professionals:
● Offer promotional one-month free trial
● Subscription for $100 $50-$100/month with unlimited access
● $20-40 per track
● Exports WAV file-type only (desktop use case) - validated, audio quality more important than file
size
Both Segments:
● Promoters (e.g. bloggers)
Millennial (Personal) Consumers:
● Tent pole users (e.g., online celebs)
● Sponsored users who promote
● Existing video editing apps and
programs
Millennial (Personal) Consumers:
● Ease of use
● Speed / time savings
● Video content improvement
● Accessible, high quality music
● Creative tool for young kids
Creative Professionals:
● Accessible, high quality music
● Ability to easily iterate song creation
● Cheaper than the current options
● Speed / time savings
● Avoidance of copyright issues
Millennial (Personal) Consumers:
● Users must create videos or pictures
(to create slide shows)
● Seamless product functionality
● Must view music as a commodity
Creative Professionals:
● Companies must create content
● Must view music as commodity
Both Segments:
● Backend technology
● Programmers/developers
● Music analysts
● Server space (e.g., AWS)
Creative Professionals:
● Salesforce
● Product support professionals
Business Model Canvas – Day 3
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenues Streams
Personal:
● App store/mobile app
● Website Download
Professional:
● SaaS Web App
● SaaS Marketplace
Personal:
● Digital influencers (articles / blogs)
● Customer loyalty features
● User community
● Search advertising
Professional:
● Salesforce
● Referrals
● Technical support/account manager
● VidCon (ComiCon for Social Media)
Parents (especially w/ young kids)
● Ages 28-40, mostly female
College students (viral)
● Ages 18-22
Adventurers
● Ages 22-35, mostly male
Self-interested traveler
Socially absorbed teen
● Ages 12-18, mostly female
● Create videos on mobile devices
● Share with friends and family
● Made for personal use
● Pet owners
Video editors (work for a media co.)
Video producers (freelance)
Social Media Managers
● Create content on desktops
● Businesses are clients
● Made for professional use
● Schools, universities, small
businesses (who create their own
content)
Both Segments:
● Employee salaries
● Office space
● Technical services (e.g., AWS)
● Legal services (e.g. IP protection)
Professional:
● Advertising
Personal:
● Free product with 10 songs free
● Then $2.50-$5.00 for each ten published/exported songs
● Option for $5/month subscription with unlimited access
● Exports mp3 file-type only (mobile use case)
Professional:
● Offer promotional one-month free trial
● Subscription for $50-$100/month with unlimited access OR $20-40 per track for freelancer
● Two different models for freelancers vs. media co. employees (who only want unlimited
subscriptions)
● Exports WAV file-type only (desktop use case)
Both Segments:
● Promoters (e.g. bloggers)
● Video editing software
(e.g. iMovie, GoPro Studio,
Animoto, Ocho)
Personal:
● Tent pole users (e.g., online celebs)
● Sponsored users who promote
● Existing video editing applications
Personal:
● Ease of use
● Speed / time savings
● Video content improvement
● Accessible, high quality music
● Creative tool for young kids
Professional:
● Accessible, high quality music
● Ability to easily iterate song creation
● Cheaper than the current options
● Each track is unique
● Speed / time savings
● Avoidance of copyright issues
Personal:
● Must create videos or slide shows
● Seamless product functionality
● Must view music as a commodity
Professional:
● Companies must create content
● Must view music as commodity
● Create software (mobile)
Both Segments:
● Backend technology
● Programmers/developers
● Music analysts
● Server space (e.g., AWS)
Professional:
● Salesforce
● Product support professionals
Business Model Canvas – Day 4
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenues Streams
Personal:
● App store/mobile app
● Website Download
Professional:
● SaaS Web App
● SaaS Marketplace
Personal:
● Digital influencers (articles / blogs)
● End credit title card, default social
media credit, no audio branding
● User community
● Search advertising
● Referral incentives
Professional:
● Salesforce
● Referrals
● Technical support/account manager
● VidCon (ComiCon for Social Media)
Personal:
● Parents (especially w/ young kids)
● College students
● Young adult adventurers
● Self-interested travelers
● Socially absorbed teens
● Pet owners
● What is the common thread btw.
these Personal user segments (i.e..
what is the real segment)?
Professional:
● Video editors (work for a media co.)
● Video producers (freelance)
● Social Media Managers
Both Segments:
● Employee salaries
● Office space
● Technical services (e.g., AWS)
● Legal services (e.g. IP protection)
Professional:
● Advertising
● Use case verification
Personal:
● Free product with 10 songs free
● Then $2.50-$5.00 for each ten published/exported songs
● Option for $5/month subscription with unlimited access
● Exports mp3 file-type only (mobile use case)
Professional:
● Offer promotional one-month free trial, then monthly subscription or per track cost
● Price based on use case (TV, online, etc.)
● Two different models for freelancers vs. media co. employees (who only want unlimited
subscriptions)
● Exports WAV file-type only (desktop use case)
Both Segments:
● Promoters (e.g. bloggers)
● Video editing software (e.g. iMovie,
GoPro Studio, Animoto, Ocho)
Personal:
● Tent pole users (e.g., online celebs)
● Sponsored users who promote
● Existing video editing applications
Personal:
● Ease of use
● Speed / time savings
● Video content improvement
● Accessible music
● Creative tool for young kids
● Create music independent of video
Professional:
● Accessible, high quality music
● Ability to easily iterate song creation
● Cheaper than the current options
● Each track is unique
● Speed / time savings
● Avoidance of copyright issues
Personal:
● Social media sharing/integration
● Seamless product functionality
● UI/UX design
Professional:
● UI/UX design, integration
● Competitive pricing
Both Segments:
● Backend technology
● Programmers/developers
● Music analysts
● Server space (e.g., AWS)
Professional:
● Salesforce
● Product support professionals
Channels and Revenue – Professional
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Our Company
ProfitSG&A + R&D
SalesForce
Production Company
Ad Agency
Sales C
om
missio
n
Mark-Up to Agency