Andrew Matthews, Stern MBA CandidateBarrow Reedy, Wagner MPA CandidateJames Wu , Stern MBA Candidate

We eliminate the need for customers to go out and buy bath and body products by designing and delivering sensor-driven, wifi-enabled devices that monitor product usage.

Interviews this week: 35

Total # of interviews: 45

-Convenience: eliminate the trip to the store for essentials

-Curation: identify and deliver the products men want based on a defined set of needs

-Space optimization: design storage that helps store products for easy access

-Cost: purchase in bulk to reduce cost to customer

Business Model Canvas – Day 1

VALUEPROPOSITIONS

CHANNELS

CUSTOMERRELATIONSHIPS

CUSTOMERSEGMENTS

REVENUE STREAMS COST STRUCTURE-

KEYPARTNERS

KEYRESOURCES

KEYACTIVITIES

-Product manufacturers, e.g. Unilever, P&G, Church & Dwight, Reckitt Benckiser, Harry’s, Dollar Shave Club

-Packagers, e.g. Uline, Amcor, Int’l Paper

-Distribution partners, e.g. FedEx, DHL, USPS, Shiply

-Digital services, e.g. web hosting, app development, media advertising (FB, Google)

-Shipping and distribution-Advertising/Customer Acquisition-Warehousing-Inventory

-App/website design and mngt.-Packaging/box design-Product curation (both digital and in the box)-Customer service-Packaging and product curation innovation

-Subscriptions: semester cadence (3-tier model: base, regular and premium)-Refills: Single purchases to refill box-Sponsorships: Brands that advertise on SG boxes

-Website/app programmer-Packaging designers-Social media advertising company-Customer service agents-Warehouse-Vendor mngt/buyer

Demographic-College-age men (18-22), who attend university in the U.S.-Diverse populations

Behavioral-Visits store 2x per month-Unplanned purchases, based first on need and second on discovery

Psychographic-Style neutral to style conscious-Influenced by classmates and cultural icons-Does not enjoy shopping

-Create style-oriented, digital content-Offer event-driven boxes for special occasions, e.g. tailgating-Enlist campus ambassadors-Partner with universities to offer teams sponsorships

-Delivery of VP is through semester-subscription based box -Social media and content marketing, e.g. FB, IG, Vine, Twitter, with influencer strategy-Web/mobile app

The Initial Idea:Curate box for college men to eliminate trips to local convenience stores

What we learned:-Men do not mind the trips to local convenience stores-tracking their usage and remembering to refill is painful-They do not use online solution because they feel there is a delay in product arrival

Men do not need to save trip to the store. They need to remove the thoughts of shopping for bath and body products completely

We need to predict personal usage and auto prompt to re-order

Day One: Hypotheses and Learnings

-Convenience: eliminate the trip to the store for essentialsEliminate the need to think about shopping for these products-Curation: identify and deliver the products men want-Space optimization: design easy access storage-Cost: purchase at near wholesale prices

-Provide customer insights about product use and purchasing habits

Business Model Canvas – Day 2

VALUEPROPOSITIONS

CHANNELS

CUSTOMERRELATIONSHIPS

CUSTOMERSEGMENTS

REVENUE STREAMS COST STRUCTURE-

KEYPARTNERS

KEYRESOURCES

KEYACTIVITIES

-Product manufacturers, e.g. Unilever, P&G, Church & Dwight, Reckitt Benckiser, Harry’s, Dollar Shave Club

-Packagers, e.g. Uline, Amcor, Int’l Paper

-Distribution partners, e.g. FedEx, DHL, USPS, Shiply

-Retailers, e.g. BB&B

-Digital services, e.g. web hosting, app development

-Shipping and distribution-Advertising/Customer Acquisition-Warehousing/Inventory-Product development and manufacturing

-App/website design and mngt.-Packaging/box design-Product curation (both digital and in the box)-Customer service-Engineering and product design

-Subscriptions: semester cadence-Refills: Single purchases to refill box-Sponsorships: Brands that advertise on SG boxes-Retail sales + % fee for refills-Recurring data sales to B2B

-Website/app talent-Product designers-Social media talent-Customer service-Warehouse-Vendor mngt/buyer

B2C-College-age men (18-22), who attend university in the U.S. in urban settings like NYC-Diverse populations

B2B-CPG manufacturers, e.g. Unilever, P&G, who sell men’s bath and body products

-Create style-oriented, digital content-Partner with universities to offer teams sponsorships-Low-touch relationships via retail and mobile app

-High-touch, direct salesforce and acct mngt.

-Delivery of VP is through semester-subscription based box -Brick & mortar retailers-Website/mobile app

-Direct salesforce and account mngt.

The Initial Idea:Men are willing to pay to not have to think about shopping for bath and body products

What we learned:-95% college men are willing to try the service and pay ~ $1 more in premium on the retail price-They do not want hold excess stock-They do not want to wait for product arrival

Customers is willing to pay, but does not think this is a high priority problem.

We need to use a sensor-driven, wifi-enabled devices that monitor usage and prompt user to refill through our ecommerce website

Day Two: Hypotheses and Learnings

Subscription Services

Reta

ilers

Online Stores

Consumer Data

Aggregation and Analytics

Consumer

Tech

Petal Diagram

-Convenience: eliminate the trip to the store for essentialsEliminate the need to think about shopping for these products-Curation: identify and deliver the products men want-Space optimization: design easy access storage-Cost: purchase at near wholesale prices

-Provide customer insights about product use and purchasing habits

Business Model Canvas – Day 3

VALUEPROPOSITIONS

CHANNELS

CUSTOMERRELATIONSHIPS

CUSTOMERSEGMENTS

REVENUE STREAMS COST STRUCTURE-

KEYPARTNERS

KEYRESOURCES

KEYACTIVITIES

-Product manufacturers, e.g. Unilever, P&G, Church & Dwight, Reckitt Benckiser, Harry’s, Dollar Shave Club

-Packagers, e.g. Uline, Amcor, Int’l Paper

-Distribution partners, e.g. FedEx, DHL, USPS, Shiply

-Retailers, e.g. BB&B

-Digital services, e.g. web hosting, app development

-Shipping and distribution-Advertising/Customer Acquisition-Warehousing/Inventory-Product development and manufacturing

-App/website design and mngt.-Packaging/box design-Product curation (both digital and in the box)-Customer service-Engineering and product design

-Subscriptions: semester cadence-Refills: Single purchases to refill box-Sponsorships: Brands that advertise on SG boxes-Retail sales + % fee for refills-Recurring data sales to B2B

-Website/app talent-Product designers-Social media talent-Customer service-Warehouse-Vendor mngt/buyer

B2C-College-age men (18-22), who attend university in the U.S. in urban settings like NYC-Diverse populations

B2B-CPG manufacturers, e.g. Unilever, P&G, who sell men’s bath and body products

-Create style-oriented, digital content-Partner with universities to offer teams sponsorships-Low-touch relationships via retail and mobile app

-High-touch, direct salesforce and acct mngt.

-Delivery of VP is through semester-subscription based box -Brick & mortar retailers-Website/mobile app

-Direct salesforce and account mngt.

8

The Initial Idea:College men should be our target customerOEMs are willing to pay customer consumption data

What we learned:-Not only the college male are willing to pay for our service, single men in general would willing to try it-Analytical data business is mostly saturated. Businesses are unwilling to pay for data

The initial revenue need to come from sale of the devices and re-fill of the products. We can target single men in general in this market

To reduce risks, we should go through Amazon’s eco system and taking orders as they come. Once there is enough demand, we can carry our own inventory and logistics

Day Three: Hypotheses and Learnings

MVP 1 MVP 2

Experiment: Pilot usage of MVP with 28-year-old male to confirm ease of and interest in product use

What we thought: Men would find the object foreign, clunky, and invasive, causing an unwillingness to pay for the product.

What we did: We asked a 28-year-old male to place the product in his bathroom and explained the functionality.

What we found: He responded overwhelmingly positively, noting that he found the product non-invasive and the proposed functionality would erase the pain of thinking about outages. We also found that he had already been empty on several bathroom products, confirming that men find the shopping process cumbersome.

What we will do next: We want to confirm that our experiment is not just noise. We would like to conduct similar experiments with a larger MVP to understand their receptivity to the product.

-Convenience: Eliminate the need to think about shopping for these products

-Cost: purchase at near wholesale prices

-Time: Receive products at or just before you run out

-Provide customer insights about product use and purchasing habits

Business Model Canvas – Day 4

VALUEPROPOSITIONS

CHANNELS

CUSTOMERRELATIONSHIPS

CUSTOMERSEGMENTS

REVENUE STREAMS COST STRUCTURE-

KEYPARTNERS

KEYRESOURCES

KEYACTIVITIES

-Product manufacturers, e.g. Unilever, P&G, Church & Dwight, Reckitt Benckiser, Harry’s, Dollar Shave Club

-Packagers, e.g. Uline, Amcor, Int’l Paper

-Distribution partners, e.g. FedEx, DHL, USPS, Shiply

-Digital services, e.g. web hosting, app development

-Shipping and distribution-Advertising/Customer Acquisition-Warehousing/Inventory-Product development and manufacturing

-App/website design and mngt.-Customer service-Engineering and product design-Inventory mngt. and supply chain-Vendor mngt.

-Product sales of device-% fee for product re-orders-Recurring data sales to B2B

-Website/app talent-Product designers-Social media talent-Customer service-Warehouse-Vendor mngt/buyer

B2C-College-age men (18-22), who attend university-Post-college men, who are “tech experimenters”

B2B-CPG manufacturers, e.g. Unilever, P&G, who sell men’s bath and body products

-Low-touch interactions via web/mobile app-On-demand customer service

-High-touch, direct salesforce and acct mngt.

-Brick & mortar retailers-Website/mobile app

-Direct salesforce and account mngt.

The Initial Idea:Cost of manufacturing for sensor-driven device puts our product in affordable range

Women also have products that they are brand loyal to, and runs out quickly

What we learned:-Initial R&D cost is about $12,000-Each unit cost to produce is about $4.75-Women have potential need for convenience for personal hygiene products

We can expand our customer segments for female audience as well

We need to do a detailed manufacturing cost analysis to figure out our breakeven point

Day Four: Hypotheses and Learnings

Channel Economics

% of Retail

24% 47%

$1.00 $2.00 $4.25$1.25

29%

End

Cus

tom

er

COGS Profit + SG&A + R&D Whole Sale Distributor E

U

Dis

coun

ts

Reseller

Our RevenueOEM

•We get- 47% of retail- the OEM gets 29%- the wholesaler gets 24% less any discount we offer the customer

-Convenience: Eliminate the need to think about shopping for these products

-Cost: purchase at near wholesale prices

-Time: Receive products at or just before you run out

Business Model Canvas – Day 5

VALUEPROPOSITIONS

CHANNELS

CUSTOMERRELATIONSHIPS

CUSTOMERSEGMENTS

REVENUE STREAMS COST STRUCTURE-

KEYPARTNERS

KEYRESOURCES

KEYACTIVITIES

-Product manufacturers, e.g. Unilever, P&G, Church & Dwight, Reckitt Benckiser, Harry’s, Dollar Shave Club

-Packagers, e.g. Uline, Amcor, Int’l Paper

-Distribution partners, e.g. FedEx, DHL, USPS, Shiply

-Digital services, e.g. web hosting, app development

-Shipping and distribution-Advertising/Customer Acquisition-Warehousing/Inventory-Product development and manufacturing

-App/website design and mngt.-Customer service-Engineering and product design-Inventory mngt. and supply chain-Vendor mngt.

-Product sales of device-% fee for product re-orders

-Website/app talent-Product designers-Customer service professionals-Warehouse-Intellectual Property/Patent-Vendor mngt/buyer

-College-age men (18-22), who attend university-Post-college men, who are “tech experimenters”

-Women aged 18-35, who are tech savvy/aware, brand loyal for specific product categories

-Low-touch interactions via web/mobile app

-On-demand customer service

-Website/mobile app (for device sales + product refills)

Unit Economics

Next Steps

Hypotheses Actions

Women aged 18-35 are a potential customer segment.

Store intercepts with MVP to inquire about interest and usage.

The unit economics – even when giving away the device – provide a favorable payback (breakeven) period.

Detailed model with assumptions of users and all-in costs per unit (including contract manufacturing, C&F, 3rd party logistics, and mail delivery service).

For product categories with brand loyalty, discretionary purchasing behavior, and annoying in-home outages, customers will seek a technology solution to eliminate the need to remember to shop.

Build a low tech Arduino prototype to pilot the experiment with 5 people. Build time estimated is about two weeks. Cost is $75 of Arduino Kit + Sensors and the cost of labor.

Digital Campaign

Test: Will they sign up?Single Male 18 – 40

Test 2: Who will click?Demographic data of the Facebook audience that clicks the ad