1

The BlockheadsPowerBlocks

Ale

Ben

Max Nick

2

Powerblocks = LEGOs + lighting

• Modular lighting– Build your own / customize– Change / reconfigure at will

• Authentic to Max– Home lacks great lighting– Moving a lot– Like building stuff

Neck pieces

Lighting head(s)

Base(s)

3

The Blockheads

Max

Nick Ale

Ben

4

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Int. DesignerRetailers

DesignMarketingCust. Experience

Modular lighting/power:

CustomizationFlexibilityRe-usabilityConvenienceSmart-home integrationPrice

Design IPBrandInt. designers

Acquisition / RetentionSelf-Service

1. High-end (wealthy) home owners

2. Office build-outs

3. Low-end (IKEA mkt), dorm studentsWholesale to

Interior designers

Asset SaleValue-Driven( = high end)

Version 1 -- 1/11

5

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Int. DesignerRetailers

DesignMarketingCust. Experience

Modular lighting/power:

CustomizationFlexibilityRe-usabilityConvenienceSmart-home integrationPrice

Design IPBrandInt. designers

Acquisition / RetentionSelf-Service

1. High-end (wealthy) home owners

2. Office build-outs

3. Low-end (IKEA mkt), dorm studentsWholesale to

Interior designers

Asset SaleValue-Driven( = high end)

?

Version 1 -- 1/11

6

Sneaking Into Dorms

7

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Int. DesignerRetailers

DesignMarketingCust. Experience

Modular lighting/power:

CustomizationFlexibilityRe-usabilityConvenienceSmart-home integrationPrice

Design IPBrandInt. designers

Acquisition / RetentionSelf-Service

1. High-end (wealthy) home owners

2. Office build-outs

3. Low-end (IKEA mkt), dorm studentsWholesale to

Interior designers

Asset SaleValue-Driven( = high end)

?4. Mid-range home owners

Version 1 -- 1/11

8

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Int. DesignerRetailers

DesignMarketingCust. Experience

Design IPBrandInt. designers

Acquisition / RetentionSelf-Service

Wholesale to Interior designers

Asset SaleValue-Driven( = high end)

?CustomizationFlexibility

1. Mid-range home owners

2. Office build-outs

Version 2 -- 1/18

9

Hitting the Phones

10

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Int. DesignerRetailers

DesignMarketingCust. Experience

Design IPBrandInt. designers

Acquisition / RetentionSelf-Service

Wholesale to Interior designers

Asset SaleValue-Driven( = high end)

?Customization

Flexibility

1. Mid-range home owners

2. Office build-outs

Version 2 -- 1/18

11

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Int. DesignerRetailers

DesignMarketingCust. Experience

Design IPBrandInt. designers

Acquisition / RetentionSelf-Service

Wholesale to Interior designers

Asset SaleValue-Driven( = high end)

Customization

Flexibility

1. Mid-range home owners

2. Office build-outs

Version 2 -- 1/18

12

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Retailers

DesignMarketingCust. Experience

Design IPBrand

Acquisition / RetentionSelf-Service

Asset SaleValue-Driven( = high end)

RetailDirect online

?Customization

Flexibility

1. Mid-range home owners

2. Office build-outs

3. Young professionals

More/less lightDirected light

Version 2 -- 1/18

13

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Retailers

Flexibility:More/less lightDirected light

Asset SaleValue-Driven( = high end)

Acquisition / RetentionSelf-Service

RetailDirect online

DesignMarketingCust. Experience

Design IPBrand

Young professionals (20-40 yr old)?

Version 3 -- 1/25

14

Stalking customers at C&B

16

Other progress . . .

17

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Retailers

Flexibility:More/less lightDirected light

Asset SaleValue-Driven( = high end)

Acquisition / RetentionSelf-Service

RetailDirect online

DesignMarketingCust. Experience

Design IPBrand

Young professionals (20-40 yr old)?

Version 5 -- 2/8

Lighting idea

19

Back To The Drawing Board . . .

20

Maximum Pain. Period.

21

Kids Asleep. Parents Happy.

22

The Product

23

The Product

24

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Better lighting thru flexibility:-More/less light-Directed light

-Online ads-Prod. reviews

Young professionals (20-40 yrs)

-Online – direct and mass market

Outsourced: mfg, fulfillment, support

Distributors: Retailers

DesignMarketingCust. Experience

Design IPBrand

Asset SaleValue-Driven( = high end)

Version 5 -- 2/8

25

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

-Baby stops crying

-Baby goesto sleep

-PR, blogs, WOM

-New parents (baby <1 yr)

-Influence: parents, friends

-Online retail

Outsourced: mfg, fulfillment, support

Distributors: Retailers

DesignMarketingCust. Experience

Design IPBrand

Asset SaleValue-Driven( = high end)

Version 6 -- 2/15

26

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

-Baby stops crying

-Baby goesto sleep

-New parents (baby <1 yr)

-Influence: parents, friends

Outsourced: mfg, fulfillment, support

Distributors: Retailers

DesignMarketingCust. Experience

Design IPBrand

Asset SaleValue-Driven( = high end)

-PR, blogs, WOM

-Online retail

Version 6 -- 2/15

27

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

-Baby stops crying

-Baby goesto sleep

-PR, blogs, WOM

-New parents (baby <1 yr)

-Influence: parents, friends

-Online retail

Outsourced: mfg, fulfillment, support

Distributors: Retailers

DesignMarketingCust. Experience

Design IPBrand

Asset SaleValue-Driven( = high end)

?

Version 6 -- 2/15

28

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

-Baby stops crying

-Baby goesto sleep

-PR, blogs, WOM

-New parents (baby <1 yr)

-Influence: parents, friends

-Onlineretail

Outsourced: mfg, fulfillment, support

Distributors: Retailers

DesignMarketingCust. Experience

Design IPBrand

Asset SaleValue-Driven( = high end)

? ?

?

?

Version 6 -- 2/15

29

Talking to More Parents

30

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

-Baby stops crying

-Baby goesto sleep

-PR, blogs, WOM

-New parents (baby <1 yr)

-Influence: parents, friends

-Online retail

Outsourced: mfg, fulfillment, support

Distributors: Retailers

DesignMarketingCust. Experience

Design IPBrand

Asset SaleValue-Driven( = high end)

?

Version 6 -- 2/15

31

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

-Baby stops crying

-Baby goesto sleep

-PR, blogs, WOM

-New parents (baby <1 yr)

-Influence: parents, friends

-Online retail

Outsourced: mfg, fulfillment, support

Distributors: Retailers

DesignMarketingCust. Experience

Design IPBrand

Asset SaleValue-Driven( = high end)

blogs

Version 6 -- 2/15

32

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

-Baby stops crying

-Baby goesto sleep

-PR, blogs, WOM

-New parents (baby <1 yr)

-Influence: friends, blogs

-Online retail

Outsourced: mfg, fulfillment, support

Distributors: Retailers

DesignMarketingCust. Experience

Design IPBrand

Asset SaleValue-Driven( = high end)

-1st baby

Version 6 -- 2/15

33

Babies Outgrow Stuff… Fast

34

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

-Baby stops crying

-Baby goesto sleep

-Blogs,WOM

-New parents (1st baby, baby <1 yr)

-Influence: friends, blogs

-Online retail

Outsourced: mfg, fulfillment, support

Distributors: Retailers

DesignMarketingCust. Experience

Design IPBrand

Asset SaleValue-Driven( = high end)

Renting

Version 6 -- 2/15

35

Babies Outgrow Stuff… Fast

36

To The Future?

Car simulator

Now

Netflix for baby

stuff

2 years

Online product rental?

5 years

37

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

So here’s where we ended up

Outsourced: mfg, fulfillment

DesignMarketingCust. Experience

Design IPBrand

-Blogs,WOM

-New parents (1st baby, baby <1 yr)

-Influence: friends, blogs

-Online retail

-Baby stops crying

-Baby goesto sleep

Asset SaleRenting

Value-Driven( = high end)

Version 8 -- 3/1

38

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Question 1: Can we build it?

Outsourced: mfg, fulfillment

DesignMarketingCust. Experience

Design IPBrand

-Blogs,WOM

-New parents (1st baby, baby <1 yr)

-Influence: friends, blogs

-Online retail

-Baby stops crying

-Baby goesto sleep

Asset SaleRenting

Value-Driven( = high end)

?

Version 8 -- 3/1

39

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Question 2: Do the costs work?

Outsourced: mfg, fulfillment

DesignMarketingCust. Experience

Design IPBrand

-Blogs,WOM

-New parents (1st baby, baby <1 yr)

-Influence: friends, blogs

-Online retail

-Baby stops crying

-Baby goesto sleep

Asset SaleRenting

Value-Driven( = high end)

?

Version 8 -- 3/1

40

So . . . what have we learned?

41

Max

42

Ben

43

Ale

44

Nick

45

BUSINESS MODEL CANVASSES

46

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Int. DesignerRetailers

DesignMarketingCust. Experience

Modular lighting/power:

CustomizationFlexibilityRe-usabilityConvenienceSmart-home integrationPrice

Design IPBrandInt. designers

Acquisition / RetentionSelf-Service

1. High-end (wealthy) home owners

2. Office build-outs

3. Low-end (IKEA mkt), dorm studentsWholesale to

Interior designers

Asset SaleValue-Driven( = high end)

Version 11/11/11

47

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Int. DesignerRetailers

DesignMarketingCust. Experience Customization

Flexibility

Design IPBrandInt. designers

Acquisition / RetentionSelf-Service

High-end residents

Mid-end Interior designers

Asset SaleValue-Driven( = high end)

Also looking at commercial

lighting

Version 21/18/11

48

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors:

Retailers

DesignMarketingCust. Experience

More/less lightDirected light

Design IPBrand

Acquisition / RetentionSelf-Service

Young professionals

-Retail-Direct online

Asset SaleValue-Driven( = high end)

Version 31/25/11

49

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors: Retailers

DesignMarketingCust. Experience

Flexibility:-More/less light-Directed light

Design IPBrand

-Trade show-Online ads-Design mag.

Young professionals (20-40 yrs)

-Retail-Direct online

Asset SaleValue-Driven( = high end)

Version 42/1/11

50

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment, support

Distributors:

Retailers

DesignMarketingCust. Experience

Better lighting thru flexibility:-More/less light-Directed light

Design IPBrand

-Online ads-Prod. reviews

Young professionals (20-40 yrs)

-Online – direct and mass market

Asset SaleValue-driven

Version 52/8/11

51

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment

DesignMarketingCust. Experience -Baby stops

crying

-Baby goesto sleep

Design IPBrand

-PR, blogs, WOM -New parents

(baby <1 yr)

-Influence: relatives, friends

-Online retail

Asset SaleValue-driven

Version 62/15/11

52

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment

DesignMarketingCust. Experience

-Baby stops crying

-Baby goesto sleep

Design IPBrand

-Blogs-WOM = referrals -New parents

(1st baby, baby <1 yr)

-Influence: friends, blogs

-Online retail

Asset SaleRenting

Value-driven

Version 72/22/11

53

Key Partners Key Activities Value Propositions Demand Creation Customer Segments

ChannelsKey Resources

Cost Structure Revenue Streams

Powerblocks Business Model

Outsourced: mfg, fulfillment

DesignMarketingCust. Experience

-Baby stops crying

-Baby goesto sleep

Design IPBrand

-Blogs-WOM = referrals -New parents

(1st baby, baby <1 yr)

-Influence: friends, blogs

-Online retail

Asset SaleRenting

Value-driven

Version 83/1/11

54

Questions?

zuck@stanford.edustaubach@stanford.edupalan@stanford.edu bwil@stanford.edu