Embed Size (px)
DESCRIPTION
Citation preview
Andrew PenroseAri Atkins
Unplugged Team
Ari AtkinsStanford ’12
Design/Engineering
Andrew PenroseStanford ’12
Business
Charlie GlickStanford ’13Media Intern/
Guitarist
Advisors
Tony LilliosFounder/CEO Speck
Mike CassidyEntrepreneur
Ken KantorCEO ZT Amps
Dave BeachStanford ME Prof
Guitars Today
70%Of guitarists we surveyed say yes.
(82)
Big Amps Bulky Effects Pedals+ = Stuck at Home
Does gear transport and setup discourage you from playing electric
guitar?
Guitars Tomorrow
• Effects
• Recording
• Uploading
• Guitaraoke
• Interactive
Lessons
• 3rd Party App
Platform
73%Of guitarists we surveyed say yes.
(82)
Can a built-in amp and iPhone app
substitute fortraditional gear?
Built-in Amp + Smartphone Interface = Jam Anywhere
Prototyping: January 2011- March 2012
Market
Guitars and Gear = $1.5B
GuitarsAmpsEffects
Musical Instruments TAM
= $6.4B
Source: Music Trades April 2011
2Mguitars sold each year in the US
20M guitarists in the US
50M guitarists in
the world
Prototyping: January 2011- March 2012
Competition
2012 2013 2014 2015 2016 2017$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
Other Instruments
Apps
Guitars
Reve
nue
(M)
Prototyping: January 2011- March 2012
Business Model
3.9% of US Guitar Market
$1M $4M
$19M
$42M
$63M
$100M
Manufacturing & Logistics
ComponentsMade in China$30
Parts we DesignMade in China$40
Shipping$10
AssemblyBay Area Factory$10
RetailersSell for $210$120 Margin
Direct to Consumer
Sell for $350$225 Margin
Shipping + Handling $35
$350 Retail
$90 COGS
Prototyping: January 2011- March 2012
Distribution
Pre-Launch Campaign Goal: $100,000 in Preorders (100% Direct)
Short Term (2012)
Strategically Chosen Local Stores (80% Direct)
Long Term (2013+)
Guitar + Consumer Electronics Chains (50% Direct)
Prototyping: January 2011- March 2012
Marketing
Direct Sales
1. Guerilla – concerts, parks, etc.
2. Guitar Blogs, YouTube Channels
3. SEO/SEM
Social Music Videos Musician
Endorsements
Retail
1. In-Store Demos
2. Guitar Mags, Catalogs
Prototyping: January 2011- March 2012
Funding
Product Development
September 2011 – June 2012
First Production Run
July 2012 – June 2013
Scale Up July 2013 – onward
1
2
3
$50K
$850K
$2M VC
• Hire 3 Engineers, 1 Sales• Ship 5,000 guitars• Reach Breakeven Point
• Scale up production and distribution• Design guitars, bass, keyboard, drums
Lemnos Labs• Warehouse, Investment, mentorship• Six guitar designs
Prototyping: January 2011- March 2012
Business Model
0
20000000
40000000
60000000
80000000
100000000
Apps Guitars
Year
2012 2013 2014 2015 2016 2017
Mid-Range Guitar
Free app and some effects for
sale.
High and Low End Guitars
Artist Packages + Guitaraoke
Bass Guitar
API, 3rd party apps,
Android App
Keyboard + Drums
SDK, Developers sell effects
Sell hardware internationally
Develop new music tech apps
3.9% of US Guitar Market
Hardware
Software
