Virtual Friend

Myra Bradburn, Viketa Edwards, Sebastian Miller, Waies Noorzai, Alistair Potts, Damon Shaw, Robert Richards

VF

MISSION STATEMENT

Providing technology to further enhance users interface with computers and software. We continue to further our research to provide the ultimate best technology for all ages. We constantly learn from our previous innovations and adapt to the rapidly changing technological environment in the global economy.

Virtual friend?

• Voice activated GPS navigation • Organizer and planner• Applications can be downloaded for a small fee• Language tutor that teaches

• gives feedback in 52 different languages• Companion Artificial Intelligence (AI)• Voice activated Internet search engine with WIFI• Thousands of games for educational and entertainment

purposes• Weather forecasting • Photo album

How to Market the virtual friend

• Provides relief from boring and unproductive commutes

• Teaches language and provides feedback• Creates a personal experience with AI• Communicates as a technological and

entertainment device• Improves productivity by allowing for

organization and planning while you drive

Virtual friend advertising campaign

• Large scale radio advertising campaign• Supplemental online advertising on related

websites – targeting social networking and virtual reality users

• Google keyword purchases• Online demo versions will be available on

company website• Partnerships developed with auto

manufacturers and rental car companies

Virtual Friend’s target market

Primary target market: US and Canadian cities• Over 1 hour per day spent in traffic in major

metro areas1-2

• High levels of disposable income • Popularity of similar services• Knowledge of local market demands and

opportunitiesNote: 1) Buckner, Stephen. (2004). New York Has Longest Commute to Work in Nation,

American Community Survey Finds. US Census Bureau News. Retrieved from http://www.census.gov/Press-Release2) Ottawa’s commute one of the longest in the country. (2008, April 3). The Ottawa Citizen. Retrieved from http://www.canada.com/ottawacitizen

competitors

• Multiple GPS navigation services– Garmen, TomTom, etc…

• Rosetta Stone language services• Indirect competition for audience attention

from radio and other music devices

Swot analysis

Strengths:• Innovative technology• Captive audience for guaranteed amount of time• Unique product offering (no direct competition)• Technical resources and expertise• Individual customization• Consumer loyalty

SWOt analysis

Weaknesses:• Initial lack of consumer confidence• Restricted to automotive usage• Complex technological requirements• Reliance on satellite services for some service

offerings

SWOt analysisOpportunities:

• Attractive product offering to large consumer base - over 100 million potential consumers3-4

• Millions of dollars spent on similar entertainment products

• Combination of successful individual service offerings

• Increased demand in specific market segments

• Expandable service offeringsNote: 3) Adapted from data collected. Nations Online. The most populated cities in the United States. [Data file]. Retrieved from

http://www.nationsonline.org/oneworld/most_pop_cities_usa.htm

4) Adapted from data collected. City Population. Metropolitan Areas and Agglomerations (Census Population). [Data file]. Retrieved from http://www.citypopulation.de/Canada-MetroEst.html

SWOt analysisThreats:• Individual competitors (GPS services, Rosetta Stone,

etc)• Potential software issues• Driver distraction laws• Increase in satellite usage fees• New market entrants once product is established

Management and Operations

The blue print of running Virtual Friend:Money:

15 million dollars needed for cash flow, budget and operations

Management: organized structure

Note: Biz Move (2009) 10 deadly small business mistakesRetrieved from http://www.bizmove.com/MSBcd.shtml

Small business (2009) Operations Management: Creating a Blueprint for Your Start-UpRetrieved from www.smallbusinessbc.ca

CEO

Executives

Management

Supervisors

Employees

Management and Operations

Property and equipment:Lease or purchase factoryPurchase manufacturing equipmentVehicles for transportation

Inventory and supplies:BatteriesMicro chipsCommunication devicesTouch screen displays

Mio explore more (2009). GPS explained. Retrieved from http://eu.mio.com/en_gb/global-positioning-system_what-inside-sat-nav-device.htm

Gaebler (2009). Small business financial controls. Retrieved from http://www.gaebler.com/Operating-Your-Startup-Business.htm Note:

Finance and accounting

GarminOur biggest competitorAverage about 16 million units in sales5

Virtual Friend wants 1/16 of the market share

VF Goal is to sell 1 million units

Note: 5) U. S. Securities and Exchange Commissions. (2009, Feb. 25). Filings & Forms. Garmin LTD. 10K-Annual Report. Retrieved November 19, 2009 from http://www.sec.gov/Archives/edgar/data/1121788/000114420409010751/v1419 10k.htm

How will we reach our goal?

• We believe that we can reach this goal within a 3 year period, by obtaining 30% of our goal in the first year.

Sales forecast 1st year# of Units Monthly

Month In Thousands RevenueJanuary 1 500,000.00$ February 1 500,000.00$ March 1 500,000.00$ April 1 500,000.00$ May 2 1,000,000.00$ June 3 1,500,000.00$ July 3 1,500,000.00$ August 3 1,500,000.00$ September 3 1,500,000.00$ October 3 1,500,000.00$ November 4 2,000,000.00$ December 5 2,500,000.00$

15,000,000.00$ Total Yearly Sales Revenue

Sales Assumptions

Average PricePer Unit $500.006

Note: 6) Burrell, G., & Kao,M.K. (2009) Garmin. Retrieved November 19, from Garmin web site: https://buy.garmin.com/shop/shop.do?cID=134&pID=33921

Sales forecast 1st yearSales Forecast - 1st Year

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

Months

Rev

enue

Month

Units in Thousands

Monthly Revenue

Start-up Requirements Start-up Expenses

Salaries for Sales and Marketing: $ 937,500.00 Salaries for executives and administrative personnel: $ 87,500.00 Legal Costs: $ 250.00 Travel and related costs: $ 1,875.00 Cost of Goods Sold $ 1,687,500.00 Rent $ 5,000.00 Furniture and Equipment $ 12,500.00 Total Start-Up Expenses – 3 Months: $ 2,732,125.00

Payroll Salary per # Employees Total Salary Employee 5 President $120,000.00 1 $120,000.00 Fin. Officer $100,000.00 1 $100,000.00 Marketing Manager $ 80,000.00 1 $ 80,000.00 Administrative $ 50,000.00 1 $ 50,000.00 $350000.00

Limitations of product

• Losing touch with the outside worldPromote sharing of information learned from VF with others

• Older customers feel intimidated by the technology Include easier to use programs. (aimed at seniors or less tech

savvy)

• Cultural LimitationsVF features a translation program so it can be used in all

languages

• Economic LimitationsVF has been priced comparably to all others in its market.

VF

ReferencesBiz Move (2009) 10 deadly small business mistakes. Retrieved from http://www.bizmove.com/MSBcd.shtml

Buckner, Stephen. (2004). New York Has Longest Commute to Work in Nation,

American Community Survey Finds. US Census Bureau News. Retrieved from http://www.census.gov/Press-Release

Burrell, G., & Kao,M.K. (2009) Garmin. Retrieved November 19, from Garmin web site:

https://buy.garmin.com/shop/shop.do?cID=134&pID=33921

City Population. Metropolitan Areas and Agglomerations (Census Population). [Data file]. Retrieved from

http://www.citypopulation.de/Canada-MetroEst.html

Gaebler (2009). Small business financial controls. Retrieved from http://www.gaebler.com/Operating-Your-Startup-Business.htm

Nations Online. The most populated cities in the United States. [Data file]. Retrieved from

http://www.nationsonline.org/oneworld/most_pop_cities_usa.htm

Mio explore more (2009). GPS explained. Retrieved from http://eu.mio.com/en_gb/global-positioning-system_what-inside-sat-nav-device.htm

Small business (2009) Operations Management: Creating a Blueprint for Your Start-Up. Retrieved from www.smallbusinessbc.ca Ottawa’s commute one of the longest in the country. (2008, April 3). The Ottawa Citizen. Retrieved from

http://www.canada.com/ottawacitizen

U.S. Securities and Exchange Commissions. (2009, Feb. 25). Filings & Forms. Garmin LTD. 10K-Annual Report. Retrieved November

19, 2009 from http://www.sec.gov/Archives/edgar/data/1121788/000114420409010751/v141191_10k.htm