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| Date post: | 29-Nov-2014 |
| Category: |
Business |
| Upload: | fernando-huerta |
| View: | 823 times |
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THE PAIN
• Someone who needs to buy pre-paid air time for his cell-phone and is not near from a pos.
MBI Student: Fernando Huerta Email: [email protected]
BUSINESS CONCEPT: SOLUTION
• Vending machine.
• Sells cellular pre-paid air time.
• Easy to use and setup.
MBI Student: Fernando Huerta Email: [email protected]
THE VALUE CHAIN OF THE SOLUTION
End Customer
Needs Buy a $2 USD prepaid time Convinent location
Customer Margin: 4%
Activities/Role Prepaid Inventory Take care of equipment
Our Project Margin: 3%
Activities/Role Time Air Distribution Purchase equipment
Mobile Carrier Margin: 91%
Activities/Role Wireless Network Avilable
MBI Student: Fernando Huerta Email: [email protected]
Customer Segments: Location Pop & Mom Stores Small Towns
Factories Highschools
MBI Student: Fernando Huerta Email: [email protected]
OUR MOTIVATION
• Create a Disruptive Business. – Low Cost
– Focused to attack an unserved market.
– Technology based.
– Designed & Manufactured in Mexico.
• Build a convinient solution. – Celullar pre-paid air time.
– E-Services eco-system
MBI Student: Fernando Huerta Email: [email protected]
Our Goals……
• Customer Understanding – Profile and Location – Pain and its circumstances
• Executive Proof of Concept (10) – 3 segments – 5 Cities – User Experience – User acceptance – Financial assumption related to revenue and cost.
• Market Lauch
– Phase I: 100 machines – Phase II: 500 machines – Phase III: 1,000 machines
MBI Student: Fernando Huerta Email: [email protected]
Market Size
• In Mexico 92% of cell phones are under pre-paid plans.
• In Mexico are 85M mobile phone under prepaid plans.
• The industry of supplying pre-paid air time is a $8b USD
45%
31%
14%
10%
Diestel
Recargas del Noreste
Others
Paga Todo
MBI Student: Fernando Huerta Email: [email protected]
Gross Margin Analysis
The Project: • Equipment
– Revenue: $650 – Cost: $300 – Margin: $250
• Service (Pre-paid) $1.5
– Revenue (3%): $0.045 – Collection (1%): $0.015 – Margin: $0.030
Customer:
• Equipment Cost: $650
• Service (Pre-paid) $1.5 – Revenue1 (4%): $0.065
– Revenue2 (10%) $0.150
– Collection (1%): $0.015
– Margin: $0.200
MBI Student: Fernando Huerta Email: [email protected]
Break Even Analysis
The Project: • Equipment Margin: $250
• Fixed Cost:$3,000 – Headcount: $2,000
– Expenses: $1,000
• BEP: 12 equipments per month
Customer:
• Equipment Cost: $650
• Gross Margin $0.200
• BEP: 3,250 sales of pre-paid plans / 14 sales of prepaid plans.
MBI Student: Fernando Huerta Email: [email protected]
GO TO MARKET STRATEGY: CHANNELS
Mercado Libre Vending Machines Owners
Satellite Distributors
MBI Student: Fernando Huerta Email: [email protected]
THE BUSINESS MODEL
Equipment + Service Equipment + Service
Marketing & Sales Collection
Working Capital Equipment Supply Chain Website
Transactional
Equipment Manufacturer
MBI Student: Fernando Huerta Email: [email protected]
LEARNINGS: EXECUTING BUSINESS PLAN & STRATEGY
• Long hanging fruit segments: – Mercado Libre. – Vending Machine Distributors – Satellite Distributors.
• Telcel (Major Carrier Issues)
• Products & Services
– Service: Utility Company – Product: POS, Outdoor equipment, Vending Machine KIT.
• Challenges:
– Scale & Replicate = HIGH SCALE – Trade-off Many services & equipments vs One Equipment
MBI Student: Fernando Huerta Email: [email protected]
