The BlockheadsPowerBlocks

Ale

Ben

Max Nick

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Int. DesignerRetailers

DesignMarketingCust. Experience

Better lighting thru flexibility:-More/less light-Directed light

Design IPBrand

-Online ads-Prod. reviews

Young professionals (20-40 yrs)

-Online – direct and mass market

Asset SaleValue-driven

2/8/11

Channel options . . .

Customers

Direct online(www.powerblocks.com)

Mass market retail(Walmart, Target, IKEA, etc.)

Lighting showrooms(SF Lights, Berkeley Lighting, etc.)

Online lighting distributors(lightinguniverse.com, bellacor.com)

Mass market online(Amazon.com, eBay.com, etc.)

n = 8 channel interviews

-15%

-25%

-60%

-60%

Create customer differences

Customers

Direct online(www.powerblocks.com)

Mass market retail(Walmart, Target, IKEA, etc.)

Lighting showrooms(SF Lights, Berkeley Lighting, etc.)

Online lighting distributors(lightinguniverse.com, bellacor.com)

Mass market online(Amazon.com, eBay.com, etc.)

High-end Customers

-15%

-25%

-60%

-60%

n = 8 channel interviews

Who is the customer?

• n = 8 new interviews

• Can afford $$$, but don’t want to spend on lights

• Go to Target, Wal-Mart, IKEA, Amazon.com for lights

• Like shopping online, will browse, read reviews, buy online

Distribute through online channel – direct and Amazon

The future: residential lighting leader

Now 2 years 5 years

Next steps

• Talk to more customers – zero in on price they’d pay for our value prop

• Lock down on initial design, so can start more thorough costing – can we make it cheap enough?