Business Plan Presentation: Shadow Speakers Founders Onye Ahanotu- MS Materials Sci & Eng Devin Min- BS Mechanical Eng Nader Jawad- MS Computer Sci Introduction Innovative start-up company originally began from a class called Analytical Product Design. Developing new revolutionary speakers, Shadow Speakers seeks to expand. In order for that to happen, the group is in need of $5,000,000 in investment for a share of the company. Business Objective • Bringing a new experience to music listeners at home by developing a completely wireless speaker that connects to more speakers throughout the house for improved enjoyment. Motivation • Speaker demand increase 0.2% per year from 2010-2015 to $7.8 billion • Market Trends: – Wireless speaker varieties – Docks for portable players – Models designed to blend with décor – Single speaker designed to emulate multichannel audio Marketing Large potential market Targeting Market: • 20-35 years old • Males • Interested in music and innovative products Market Positioning Wifi Enabled Motion Activated Controllabl e through Battery mobile Operated device High quality sound Match Décor Convention al Headphone s Energy Efficient Portability x x x x Convention al Comp Speakers iHome Sonos x x x x Sony Homeshare x x x x Speakal iPig Shadow Speakers x x x x x x x x Final Product Control Panel Power Button Front 3.5 mm Audio Jack Mid-range Speaker Side Subwoofer Speaker Final Product Back Rechargeable Port Motion Sensor Prototype-Software Prototype- Hardware Motion sensor Front Processor Volume control/ EQ Arduino ADK Economic Analysis • Price point- $199.99 +40% Margin • Asking for $5M investment – ($1M) Further product optimization – ($4M) Commercialization and start up costs » » » » » Warehouse/ Work space Equipment purchasing and tooling Scale up Inventory/ Procurement Patents Economic Analysis • Returns – $5M in investment for 75% ownership – 5-Year NPV= $66.5M – Pay back shortly after first year Breakeven Analysis 35.00 Market Adoption 1.20% Market Share 1.00% 0 31.79 31.79 4 5 USD (Millions) 15.00 0.00 9.54 4.77 0 1 2 3 -5.00 -10.00 -5.00 Years 1 2 3 4 Years 20.00 5.00 0.40% 0.00% 23.84 10.00 0.60% 0.20% 30.00 25.00 0.80% 20%- Bose (market leader) 13%- Harman (JBL & Infinity) 5 Future Directions • Advancement in tech • Improvement in quality • Expanded product line – Variable size – Colors and finishes • Commercialization Questions. “Energy consumption”