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Its time to say “Good-bye to Alcohol Driving!”
Introducing
BUSINESS PLAN
BUSINESS AGENDA
Company & Board of Directors Introduction
Our Business and Window of Opportunity with Demand
Product Description and Business Details
Investment and Returns for Venture Capitalist
Product Technology
Marketing Strategy and Plan
Financial Plan
Key strategy factors Weight Rating Total
Creativity and innovation 0.20 4 0.8
Sustainable competitive advantage
0.15 3 0.45
Unique selling proposition
0.15 4 0.6
Business risk 0.10 3 0.3
Window of opportunity 0.05 4 0.2
Profitability and growth 0.10 3 0.3
Macro-environment and growth
0.05 4 0.2
Market potential/ market share
0.05 3 0.15
Funding for capital 0.05 3 0.15
Competition 0.10 3 0.3
Total 1 5 3.45
GO/ NO GO MATRIX
WHICH BUSINESS ARE WE IN?
Securite Systems Pvt. Ltd. is in the business of Automobile Security Systems.
We provide safety device called the “ Alcohol Detection and Ignition Interlock System “
WINDOW OF
OPPORTUNITY
STATISTICS OF DRINK & DRIVE CASES IN SINGAPORE
Sources:http://www.spf.gov.sg
2005
2006
2007
2008
3300 3400 3500 3600 3700 3800 3900 4000 4100
3650
3773
4010
3586
Drunk and Drive Arrests
Number of Cases
YEAR
2005
2006
2007
2008
0 50 100 150 200 250 300 350
213
288
188
179
Drunk and Drive Accidents Cases
Drunken Driving Accidents
Year
Statistics Of Drink & Drive Cases in Singapore
Sources: http://www.spf.gov.sg
Average from 2005 – 2008
280 Deaths & Injury
217 Drink & Drive Accidents
3757 Drink & Drive Arrests
20052006
20072008
0
50
100
150
200
250
300
350
400
243
361
278
235
Drunk and Drive Deaths and In-jury
YEAR
Num
ber o
f Cas
es
PENALTY FOR DRINK AND DRIVEIN SINGAPORE
First Time – Drink driver will be fined between $1000/- and $5000/- or six months imprisonment.
Repeated Time – Drink Driver will face enhanced punishment up to 3 times the penalty, a maximum of $30,000/- fine and three years' imprisonment.
Offenders causing death or serious injuries can also be caned up to 6 strokes.
License can be revoked.
DEMAND
Demand predicted through surveys.
Out of around 100 customers surveyed Survey Results show 79 % demand from the potential customers for the Alcohol Detection Systems.
We Adopted the “Blue Ocean Strategy”
SATISFY NEED OR SOLVE PROBLEM ?
Alcohol Detection and Ignition Interlock Systems addresses and solves the problem of Drunken Driving .
Prevents accidents, deaths and injuries due to drunken driving.
Can help the Singapore govt. to enforce as a rule.
Solves a problem , which will eventually create need in future.
Contribute to Corporate Social Responsibility
Solves the Problem!
PRODUCT AND LOCATION
Alcohol detector and Ignition Interlock System
Components : Fiber Body Palm Detector & Steering Wheel Sensors.
Helps to prevent ignition of the car if the person is drunk beyond a critical limit.
Easily installable
Launch Place : Singapore
USP & INNOVATION
USP
First mover advantage
First ever continuous monitoring of BAC
Cheaper than other safety devices like air bag
Easily installable
More Hygienic.
Innovation
Fool-proof and cannot be misused.
Palm detection and Continuous monitoring
Avoid breathalyzers which involves breathing .
IP & SUSTAINABLE COMPETITIVE ADVANTAGE
We cannot get an IP or an Industrial design as it is assembled from variety of electronic components.
SCA
Innovation in Product & Service through Research and Development to make the product better.
Contracts with Cabs Companies, Singapore Government
Right FIT
Capital Needed from VC
ENTRY & EXIT STRATEGY
Entry Strategy
Capital Required from VC- SGD 250,000
Interest given to VC – 5% per annum.
Exit Strategy – At the end of 4th Year
Interest for 4 years @5%
Profit given at end of 4th Year - 25% Profit.
Total Return for the VC
33% Return on the Capital.
TECHNOLOGY
PRODUCT TECHNOLOGY
•Transdermal/Galvanic sensor
•Palm Analyzer & Steering wheel sensing
circuit
•Ignition controlled by a logic circuit
•Pre-defined BAC level of 0.08 and continuous
monitoring.
•Detects for ethanol level from infrared beams
•Ignition cut-off of 3-minutes
BLOCK DIAGRAM
PRODUCTION PROCESS
•Electronic components purchased from Progress Turned Parts Industries
Private Limited
•Fibre palm and accessories purchased from Hoshe Fibre-Glass Works
•Fabrication, assembling and packaging done in the workplace
•Product installed in Servotronic Motor Workshop.
•Training provided to workshop employees through employed assembling experts
•$1500 monthly rental and $40 assembling charge paid to workshop
PRODUCT SIZE AND WAREHOUSING
•Palm Analyzer - 20cm x 15cm x 8cm
• Steering wheel sheet thickness – 0.5cm
•Logic circuit – 10 cm x 10 cm x 5cm
•Office Location – Serangoon
•Warehousing – 150 sq feet
•Assembling unit – 250 sq feet
•Office Space – 300 sq feet
Transportation done through purchased marketing second hand cars
SWOT ANALYSIS
Strengths Weaknesses• Life saving product
• First mover advantage
• Continuous monitoring feature
•Fool-proof
•Reduction in Ignition lag
•Add-on product
•Availability
•Acceptance, a matter of prestige
•Not a necessary accessory to all
the car users
•Not a pre-installed accessory
Opportunities Threats•Rising drunk & drive road
accidents
•Multiple distribution channel
•Large number of cab users
•Government Regulation
•Easy to imitate
•Backward integration
•Highly competitive in future
SINGAPORE MARKET SURVEY ANALYSIS
Number of Respondents Percentage
Singapore residents 60/100 60.00%Facing Drunk n Drive problem in family 17/100 17.00%Customers wanting to add ADS in their existing cars 79/100 79.00%Customers wanting to have pre-installed ADS in new cars 83/100 83.00%Customers willing to pay price to install in their existing cars
(300 to 500) SGD 22/76 28.95%(500 to 800) SGD 47/76 61.84%
(800 to 1000) SGD 2/76 2.63%(<300) SGD 5/76 6.58%
Prefer to Hire a cab with a Logo - "I'm protected from AD (Alcohol Driving)" 91/100 91.00%
Prefer "On-call driver to help drive" in drunk scenario's over Cab 56/100 56%
Sources:http://www.surveymonkey.com/s/F6KC5JX
TARGET MARKET
Car Owners – Alcohol drinking drivers, family members of alcohol consumers.
Cab companiesTaxi company Brand Dominant Color FleetComfortDelGro Corporation, Comfort Blue 11404Singapore Technologies Kinetics Citycab Yellow 3823Union Energy Transcab Red and White 3139Premier Rent A Car Silver Cab Silver 2056SMART Automobile Pte Ltd. SMART cabs Green 724SMRT Corporation SMRT Taxis White 2579Prime car rental & taxi Services Prime Copper 562
Total 24287Sources: Taxisingapore ,2009
OTHER POTENTIAL MARKET
Rent-a-car companies - Hertz, Avis, BULLCARZ, Siang Hock, SMART, SG Car-Mart, Alpine, Super-one
Night owl Services – SBS transit
Secure night transport services.
Car sharing Service providers – NTUC Income Car Cooperative Ltd – pay-per-use car system.
POSITIONING
An affordable and easy to use safety installable device to STOP alcohol drink and drive cases.
Create a buzz – “Say no to Alcohol driving ”!
MARKETING STRATEGY
Buzz marketing – “I am protected with AD!”
MARKETING STRATEGY
Direct marketing - Road shows through second hand cars,
Distributing pamphlets, free T-shirts, cleaning accessories in cars
Viral marketing - Online webpage and e-mails
Indirect marketing - Advertisements in Cabs, Petrol bunks
Promotions - Discounts to customers of partners, free service coupons, referral benefits.
FINANCE PLAN
FIXED ASSET
Sources:http://www.sgcarmart.com/used_cars/listing.php?MOD=Hyundai+Getz http://www1.ap.dell.com/content/topics/topic.aspx/ap/topics/microsite/en/advertised-deals?c=sg&cs=sgbsd1&l=en&s=bsd&~tab=2&redirect=1http://www.ikea.com.sg/catalog/news_display.asp?b=1,http://www.patentstorm.us/patents/7299890/description.htmlhttp://www.nextag.com/electrical-copper-wire/search-http://www.voltage-converter-transformers.com/step-down-transformer.html
Note: All cost in financial plan are in SGD
COST OF RAW MATERIALS
Sources:http://www.nextag.com/electrical-copper-wire/search-http://www.voltage-converter-transformers.com/step-down-transformer.html
FIXED OPERATING COST
Sources:http://myjobstreet.jobstreet.com/career-enhancer/basic-salary-report.php?param=Technician%7C000%7Csg%7C%7Csghttp://www.rental-singapore.com/property-singapore/search-property.php
Interest Rate for VC is 5% per yearDepreciation Method: Straight Line Depreciation Method
SALES PROJECTION
Sources:Primary Research Sample Size of 100 as 0f 15th March 2010Online Survey
CAPITAL REQUIREMENT
Expected contribution from VC
80%
Partner contribution20%
Contributed capital
Reserve Cash = $12,200
CASH FLOW STATEMENT
INCOME STATEMENT
BALANCE SHEET
BREAK EVEN ANALYSIS
Total Fixed Cost = $182150 = 181450 + 700
Price = $500
Variable Cost = $237
Break Even Quantity = Total Fixed Cost
Price – Variable Cost
= 182150 = 693 Units
500– 237
PROFIT GROWTH
EXIT STRATEGY FOR VC
VC Interest Rate is 5% per year
RATIO ANALYSIS
GRAPHICAL INTERPRETATION
GRAPHICAL INTERPRETATION
GRAPHICAL INTERPRETATION
HARVEST STRATEGY
Diversification of market and target car manufacturers
Provide on-call support
Data storage and retrieval system
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