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SetJet Corporation
Table of Contents
I. II. III. IV. A. B. C. V. A. B. C. VI. Executive Summary ............................................................................................................................... 4 Our Company ........................................................................................................................................ 5 Mission Statement ............................................................................................................................ 6 The Product ....................................................................................................................................... 7 Description ........................................................................................................................................ 7 Usability ............................................................................................................................................ 9 Usage................................................................................................................................................. 9 Key Personnel...................................................................................................................................... 11 The Management Team .................................................................................................................. 11 Advisory Board ................................................................................................................................ 11 Core Employees .............................................................................................................................. 12 The Market Analysis ........................................................................................................................ 13
A. Target market size, motivation, and pain ........................................................................................ 13 B. Industry Analysis ................................................................................................................................. 14 C. Competitor Analysis ............................................................................................................................ 15 i. Direct Competition .......................................................................................................................... 15 ii. Indirect Competition ....................................................................................................................... 16 D. Our Sustainable Competitive Advantage ........................................................................................... 17 VII. A. B. C. D. E. F. G. VIII. A. B. C. The Marketing Strategy .................................................................................................................. 18 Branding .......................................................................................................................................... 18 Packaging ........................................................................................................................................ 18 Community...................................................................................................................................... 19 Online Advertising ........................................................................................................................... 19 Pricing.............................................................................................................................................. 20 Sales ................................................................................................................................................ 20 Distribution ..................................................................................................................................... 21 The Business Strategy ..................................................................................................................... 22 Physical Product Flow ..................................................................................................................... 22 Marketing Flow ............................................................................................................................... 24 Customer Service and Information Technology Flow ..................................................................... 24
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SetJet Corporation D. E. IX. A. B. C. D. X. A. Finance and Accounting Flow ......................................................................................................... 25 Human Resources Flow ................................................................................................................... 25 Financials ......................................................................................................................................... 26 Financial Assumptions..................................................................................................................... 26 Financing ......................................................................................................................................... 27 Revenues ......................................................................................................................................... 28 Expenses.......................................................................................................................................... 29 Appendices .......................................................................................................................................... 31 Primary Research Plan .................................................................................................................... 31 Musician/Entrepreneurs Focus Group ................................................................................................ 31 Music Consumers Focus Group........................................................................................................... 31 Interviews............................................................................................................................................ 32 B. C. D. E. Cost of Components........................................................................................................................ 34 Complete Business Plan Flow Diagram ........................................................................................... 36 Secondary Sources .......................................................................................................................... 37 Financials ............................................................................................ Error! Bookmark not defined.
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SetJet Corporation
I.
Executive Summary
SetJet, a start-up company based in Sumner, Washington, puts forward a simple technological solution to solve a pain in the market: currently, there is no easy way to share electronic files person-to-person between devices that normally do not communicate with each other. Our focus is to provide a simple and secure way to share files from one device to another through a physical, hard-line connection. We do so by selling a pocket-sized computer, which most closely resembles a USB flash drive. With a built-in battery, small processor, memory capacity, and a folder switch to change what you are transferring its easy to push files along from the S3, our flagship product, with just the press of a button. With a variety of plug-in options, such as micro-USB switch or Bluetooth adaptor, the S3 is situated to move forward with the market and be backwards compatible with all older devices. The S3 would serve as a compliment to other mobile electronic devices by expediting file transfer. This benefit can help the music industry where up-and-coming artists are looking for new, inexpensive methods to promote and distribute their music to fans. There are over 240,000 professional musicians, but there are around 62 million amateur musicians that are not represented in this professional count, all whom could use the S3 to help distribute their songs [1][20]. Our company can provide more than just a product, but foster a community that is willing to help musicians thrive in their role as small-time entrepreneurs [2]. To reach our target audience, we will initially solicit musicians directly both online and offline in the local community and then launch to a larger audience. By capitalizing on social media as well as attending music festivals and trade shows, we will convince musical artists that our business will help fulfill their needs. Once a steady revenue stream is established we will be expanding across geography, arenas, and products. Our management team will take advantage of our individual backgrounds in manufacturing production, marketing, and finance in order to become a successful business. Each member of the core team has musicianship experience and therefore has understanding of our initial target market. Our advisory board will bring additional skills, connections, and experience in fields such as engineering, human resources, and law that will be critical during the initial launch phase. SetJet is looking for a group of angel investors willing to contribute $500,000, on top of the $30,000 contribution by the initial management team, which will fund the first 18 months of operations. The money will be used to engage in research and development, to secure a patent on our product, and lay the groundwork of our marketing and sales strategy. The most relevant challenges we face include: Initial Research, Design, and Development phase where marketing and manufacturing will be clarified Establishing our foothold as a viable tool in the file-transfer industry Raising enough capital to introduce a new consumer product Our success will arise from: Knowledgeable and passionate management team A high-quality, competitively priced cool product with exceptional customer service Trends of increasing numbers of electronic mobile devices and therefore the increasing necessity of in-person electronic file transfer
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SetJet Corporation
II.
Our Company
There are tens of millions of individuals that carry around one or more electronic devices with them at any given time. Syncing information and moving files between the devices is frustrating and time-consuming, especially between multiple people when a computer or the internet is not readily available. Trying to move files between your own devices is difficult enough, but trying to distribute electronic files as a form of advertisement or publicity to consumers is a herculean task. Doesn't this seem like something that ought to be painless in today's wired society? SetJets value proposition is to be a fast, safe, convenient, and affordable method to distribute electronic files in a mobile person-to-person setting. Our flagship product, the S3 a small, simple, and secure device does just that. The S3 makes it effortless to share files between mobile devices, with friends, or even complete strangers with little more than a push of a button.
The SetJet has products with the potential for many uses in security necessary environments, internet dead-zones, and hardware interfacing. The initial target market is upcoming musicians who find SetJets products to be an effective and easy way to distribute their music (Fig. 1). Not only is music local to the Seattle area, where SetJets warehouse will be based, but musicians are becoming more and more enthusiastic about new and creative tools that help them connect to their fans [3]. With these reasons in mind and our knowledge about the music industry, this niche was the obvious choice. We at SetJet want to build devices in a manner that takes advantage of pre-existing technologies, rearrange them, and then merge them into a simple product that solves a pain in the market. Set. Jet. Go.
Sample Case 1: Ice-breaker I just dont know what to say to my listeners. After I get off stage, there is this awkward moment of what to say or do to grab their attention. I want to form a personal connection with my fans, but I am unsure how to break the ice. SetJets S3 gave me an easy way out. I just pull the S3 out of my pocket and say, Hey man, do you want a free sample of my music? There is no better way to grab someones attention than the word free. As I connect the S3 to their iPhone and transfer the files, I have 10 seconds to make my pitch. Sometimes I complement them, sometimes I talk about the show, and sometimes I talk about a new guitar riff that I discovered. Whatever I can to make an impression. I want them remember me. And now they do! Thank you SetJet!
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SetJet Corporation
III.
Mission Statement
To create hardware and software solutions that allows current and future technological platforms to share files with one another in a user-friendly fashion. Allow individuals to quickly and simply share files with one another in-person.
Why S3? The name comes from the qualities that SetJet had in mind when developing the product. Small This pocket-sized computer is slightly larger than your normal USB flash drive, which makes it easy to carry around. Simple The file transfer capability of the device can happen with no more than a push of a button. There is an optional complex interface if you need it, but why add complication if you dont have to. Secure A hard-line connection means that the device cannot be wirelessly hacked and therefore your files stay exactly where you want them. Thats the biggest problem of our most direct competitor Blue-tooth.
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SetJet Corporation
IV.
The Product
Figure 2: SetJet S3
A. Description
The S3 aesthetically resembles a small USB flash drive but has the hardware of a simple computer and more. The anatomy (Fig. 2) will be small and straightforward on the exterior, approximately 2 1/2 inches long by 3/4 inch wide by 1/2 inch tall. The innards comprise a motherboard, RAM, and lithium ion battery; while the exterior has a sleek black body, a folder selection and activation button, and male and female USB, while requisite with a communicational LED. The female adaptor end allows a whole host of USB cables to be plugged into it in order to connect to any mobile electronic product. These could include but are not limited to: USB to mini-USB in order to connect to Android products (smartphones, kindles, and tablets), USB to Apple Dock in order to connect to Apple Products (iPad, iPod, Macbook); USB Bluetooth adaptor in order to connect to Bluetooth compatible products; USB Wi-Fi adaptors to connect to the internet; and anything else that can be plugged into a USB port. Most individuals will have some of these cables at home already in order to charge and sync their mobile electronic devices. These cables are also sold cheaply online. Also, Y-cable versions are available that consolidated multiple cables into one item. SetJet will sell separately hard plugs that serve the same purpose with our S3 logo (Fig. 3). This gives the consumer an option on the feel of the product allowing them to cut down on clutter by having a smaller, more rigid device. It also provides a secondary revenue source to the company of a simple, high margin product that can be completely outsourced.
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We at SetJet do not want to be a limiting factor for a musician that has quality in their mind. If they want to use lossless file formats like .flac, .aac, or .wav, the S3 can handle a full album without a problem. The file containing a typical three-minute song on a CD (which is a high quality and lossless format) is 3040 megabytes in size. Albums are usually 12 songs in length, but we allow for 20. [21] That means for one album we need at least 800 megabytes of space. Scaling again to provide that amount for 4 folders means 2,400 megabytes of space or 2.4 gigabytes. The S3 has 8 gigabytes of space. The lifespan of a battery will vary considerably with how it is used, how it is maintained and charged, temperature, and other factors. But with a 3 volt 400 mAH rechargeable lithium ion button battery, with current demands of 50mA when idle and 100mA [22] the batter life should be approximately 6.6 hours. Recharging occurs when the male end USB is plugged into a computer. The limiting factor really for the lifespan of the S3 is the USB ports. A well worn USB may be writeprotected to help ensure the life of individual cells; however, the USB connector hardware can withstand only around 1,500 cycles. [23] The USB 3.0 technology has transmission speeds of up to 5 Gbit/s [24] which compared to current wireless speeds of 3.5 Mbit/s [19] and Bluetooth speeds of 2.4 Mbits/s [13]. USB 3.0 can effectively transfer all 8 gigabytes of the S3 in seconds. SetJet also recognizes the appeal of customization. A future goal is mass customization where our large customers can work with us to order changes with consideration like S3s look, memory space, and processor speed.
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SetJet Corporation
The combination of technologies arranged into an S3 is patentable. Discussions with a patent lawyer about the procedure, cost, and time necessary to work through the patent process have already begun. Once the patent is secure, then SetJet will have control over the market for a few years [26].
B. Usability
Musicians today manage entire at-home studios [2] that we use as a bar for the complexity of our product. The S3 will need to be learned how to effectively be used quickly, our estimate of the learning curve is less than 30 minutes. The general usability will entail learning a sequence of button pushes and to switch between folders to transfer intended files. There will be no more than two button pushes for simple file transferring. Placing files onto the S3 will be the same as a flash drive except for the need to place files into the appropriate folder corresponding to the switch. The intention of design and operation is for the S3 to be a device that can be solely used by a single musician, in distribution and marketing of music. During the R&D phase SetJet will investigate the most effective ergonomic and software setup so that the user will have minimal difficulties while using the S3. Once we have the final design, to teach musicians how to use the S3 and to effectively interact the S3 with other technologies our company has three venues of learning: the instructions provided in the product packaging, a customer service hotline, and a video provided on our website. These resources combined with the intuitive design will increase usability. At our musician focus group, one of the interviewees thought that it would gain musicians the most sales if the S3 were able to include credit card purchases built-in [18]. This is a suggestion that will be taken into consideration for future products. At the moment, the musician can use the S3 to sell albums, but like CDs, they will need to take cash. During the music consumer focus group, there was expressed unease of not having a receipt for proof of purchase [17]. When a musician uses the S3 for sale of their music, there will be a receipt generator program that will be an additional service that we will provide. When the generator is placed into a folder, it will be activated during the file transfer of that folder and will add a unique receipt file along with the music. Compatibility was an issue of expressed concern. But compatibility should not be a problem from a software engineering standpoint, commented Professor David Gries, of Cornells Computer Science Department [28].
C. Usage
On the right side of the S3 (Fig. 2), the folder selection button can be change between folders 1 through 4. They give the musician an option to preload the S3 with files on different folders so when the activation button is pressed only the selected folders files will transfer. The activation/SetJet-Icon button, when pushed, transfers the contents of the selected folder onto the connected receiving device. The built-in LED light, inside the activation button, is to let the user know what the device is doing at any given time. Yellow and green LED colors will inform the user of what the S3 is doing, green when the device is ready to transfer, yellow while it is transferring, and then back to green when transfer is complete. The logo will blink yellow when the battery is low and blink green and yellow interchangeably when there is an error. Whether the musician plugs the S3 into a device that does not have a screen or one that does have a screen, the S3 will be able to interface with it and recognize what it is. If the receiving device is a flash drive, then when plugged into the S3 the proprietary software of the S3 will transfer the files over
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with a new folder with a pre-designated name. Otherwise with a receiving device that has an interactive screen, our software interface will ask the owner where they want it or to cancel, but if the owner does not care then by pressing the activation button twice the S3 will place the files into the listening devices default music folder. The transaction will only take a few seconds, customers do not like to have to sit and wait for their music to transfer [17]. If the musicians customer already knows that they want the music transaction, then the musician will need approximately 30 seconds to complete it: 15 seconds to get the right adaptor (if needed), 10 seconds to plug the S3 into receiving device, and at most 5 seconds for the actual file transfer (which includes interfacing). When the musician plugs their S3 into their home computer, software preinstalled for it on that computer will recognize the presence and provide a user-friendly interface in order to easily interact with the S3. The musician can then select a folder to see the S3s contents, drag and drop or delete files, or place the receipt generator program.
Sample Case 2: Unlocking my own devices On a daily basis, I carry around an Android phone, a Kindle, and an iPad. None of these devices connect to one another. My phone let me know that my friend sent me a .pdf over email that I want to read on my Kindle, so then I had to go home, collect all my cables, and connect each device to a computer in order to complete the transfer. Another time the backlit-screen on my iPad started hurting my eyes and so I want to move my eBook over to my Kindle, again another cable and another computer. Why does this have to be so hard? Thankfully, I bought SetJets S3 that lets me to do the file transfer whenever and wherever I want. I connect the S3 to my phone, download the .pdf attachment to it, and then connect it to my Kindle. Bam! Done! Its that easy. Now I dont have to worry about what files I have on what devices.
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SetJet Corporation
V.
Key Personnel
A. The Management Team
Brenton A. White, CEO Currently a supervisorial machinist of three years at Porous Materials Incorporated. And previously held an internship position at the Ithaca City Attorneys Office under Dan Hoffman, City Attorney, and Bob Sarachan, City Prosecutor. Has managerial and supervisorial experience in previous jobs including Von Cramm residence hall and Cornell Catering. Achieved two associate degrees in Paralegal Studies and Machine Tool Technology, who is also a candidate for a Bachelors of Science in Natural and Environmental Systems at Cornell University. Musical interests include being in grade school orchestra playing brass baritone in grade school and picking up the guitar and piano later in college. Austin Zwick, CFO Has done consulting work with local nonprofits and governments in the Ithaca area on their budgets, performance measurement, and financial statements. Spent three years as a research assistant doing statistical analysis. Achieved a Bachelors in Industrial and Labor Relations in 2009 and is a candidate for a Masters of Public Administration in Economics and Financial Policy in 2012 from Cornell University. Enrolled to be a Certified Management Accountant. Music al interests include basic guitar. Thomas Shepherd, Chief of Marketing Has worked at the Philadelphia Zoo for seven years, and worked with the Chief of Marketing. Developed themes for the zoos summer events, as well as helped develop the marketing campaign around these events. Is a candidate of a Bachelors of Science in Interdisciplinary Studies with a focus in marketing and bio engineering from Cornell University 2012. Musical interests include being a promotions manager for an a cappella group at Cornell and sang in the Cornell University Glee Club.
B. Advisory Board
Jayde Doetschman Owner of Moon City Records. An entrepreneur who opened her own recording studio in November 2010. Her expertise of the music market will help in aspects of product design and marketing. The network of independent musicians will be a good resource to approach after development of the S3. Edgar Alexander Garcia Electrical Engineer. Has a Masters of Engineering from Cornell University and works as a Freelance hardware designer. His understanding of hardware and circuitry will aid in the R&D of the S3. Eric Swidler Software Engineer. A graduate of Computer Science from Cornell University. The knowledge of Java programming that he has will be critical in how we approach interfacing the S3 with the many devices that SetJet wishes to communicate with. Jen Maisel Patent Lawyer. At the initial stages of development, having a trusted resource to advice in the sensitive aspects of design ownership is critical. Jen will provide an integral buttressing with legal procedure. Amy Scherer Marketing Expert. Needed for the many years spent working in the field of consumer behavior. Will be invaluable to understanding how to hone in our target market.
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SetJet Corporation
C.
Core Employees
Our team will consist of individuals with knowledge, skill sets, and connections that will help our business grow. After securing initial financial capital, we hope to bring to some of these individuals on-board as full-time employees. This will be an eventual ramp up process with engineers hired early on and most other people hired after our second round of financing in 2014. Computer Hardware Engineer Integral to our company for the development and design of hardware solutions to the pains in the market that we are trying to solve. Core responsibilities will be to design schematics for the entire electrical layout of devices, beginning with the S3. Computer Software Engineer Essential for the development and design of software solutions. Core responsibilities will be to program the software packages needed to interface with the necessary technologies. Website Developer and Information Technology Manager Critical for the design, creation and maintenance of our website. Core responsibilities will be to fulfill all of our information technology needs as they arise. Customer Service Manager Vital to the long-run success of our company is to be able to anticipate what problems the consumer will encounter before they even do so. Core responsibilities will be to create the interfaces and procedures that we interact with our customers through. Human Resources Manager Important to the success of our company by making sure that we are hiring the right people with the right skills at the right time. Core responsibilities will be to manage hiring, training, retaining, motivation, and compensation of our employees. Attorney Critical upon the founding of our company to figure out legal caveats of entering the market, filing a patent, and protecting our brand. Core responsibilities will be to write and oversee contracts, file and protect our patents, and address any legal concerns that occur. Sales Associates Coordinator Imperative to our business in order to manage our salespeople. Core responsibilities are making sure that our products are well represented and sold at venues such as clubs, trade shows, festivals, and educational institutions.
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SetJet Corporation
VI.
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B. Industry Analysis
Musicians are distributing their music through five main channels: Internet Sales, CDs, Radio, Internet Radio, and illicit File-sharing. Since our product does not address non-ownership of the music or piracy concerns, the industry analysis will focus only on the first two in that list. Once consumers have obtained a copy of the music, then they listen to it on four major platforms: Computers, Smartphones, MP3 Players, and Stereo Systems. The S3 acts as another distribution channel, while allowing file transfer between different listening devices. In recent years, the technological platforms have changed to become even more digital. Sales of CDs at major retailers has fallen drastically as consumers purchase their music online, but a few major brick-and-mortar retailers still maintain quite the presence in the market. For example, the single largest seller of music is Walmart. iTunes, last year, became the second largest music seller, pushing Best Buy into third [3]. Internet Sales through iTunes, Amazon.com, and other online marketplaces offer an avenue for artists to directly release their music. When an artist sells their music on iTunes, iTunes takes a 35 percent cut and gives the rest to the artist/production company. If the artist is independent, then they keep the remaining 65 percent. Artists who are signed under a production company, the split between the label and the artist is up for negotiation. A typically split is 80/20 in favor of the producer for the remainder after the marketplace. Under these circumstances, and artist makes about 13 cents out of the 99 per song that consumers pay [5], [6]. Internet Sales have provided a platform for artists to drop their label and sell their music independently [3]. As such, many artists are becoming increasingly more like small businesses that are in charge of their own promotion, marketing, and sales. This decentralization of the music industry has greater reduced the influence that record companies once had. [2] We found that musicians prefer to sell their music themselves rather than have other people do it. Musicians enjoy the opportunity to talk about their music as it is a lot more personal. Additionally, they can push the product and feel a connection to their fans [18]. Although the music market is slowly declining, the industry is shifting to focusing more on live performances, an arena where the S3 excels the most [27].
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C. Competitor Analysis
i. Direct Competition
The market that the S3 is competing in is the in-person file transfer niche. Consumers find that transferring files in person between individuals is currently difficult and inconvenient [18]. Musicians and Music Managers believe that this leads to lost sales [17]. Our direct competition is therefore other tools that attempt to solve this problem: CDs, Bluetooth, and to a limited extent wireless technology. The market of in-person file transfer is still developing. A few technologies have emerged to dominant the market, but all have fatal flaws. The most common is still simply handing out CDs the AOL model - and/or giving away USB drives, which can be both expensive for upcoming artists to make and distribute. The more tech-savvy solution is to transfer files in-person via Bluetooth, but it has problems with a lack of backward compatibility, security, and energy consumption. Finally, there are several technologies and platforms that occupy the market space of non-mobile file transfer, which we view as indirect competition. Since our device builds off current technologies without discrimination, we view our indirect competition as an opportunity to add more features to enhance our users' experience. As more technologies enter the market, the need for having everything talk to one another will become greater and greater.
Bluetooth
Our largest single competitor is Bluetooth. This technology is gaining popularity and the number of devices equipped with this technology has increased by a third in 2011. Bluetooth allows the user to gain control of a multitude of devices that are within a certain radius - 10 meters for wireless products and 30 meters for laptops - and allows data to flow streamlessly at 2.4 Mbps between devices [10]. Bluetooth has some significant weaknesses though, the most prominent of which is safety and security. Hackers can use an open Bluetooth port to access and download all files that are saved on that device, including files, usernames, passwords, and other propriety information. These Blue-attacks, also known as bluesnarfing and bluejacking, enable individuals to take full control of your device, say a Smartphone, to send text messages, write emails, and place phone calls as long as they are within range. It becomes no surprise that businesses are incredibly hesitant to use this technology [11].
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SetJet Corporation
Other downsides of Bluetooth include that it is a significant energy hog when it is on, a technical knowledge gap of people who are not familiar with it, and that it is not compatible with nonBluetooth enabled devices, which is a sizeable chunk of the mobile electronic market [10]. The S3 can solve these problems. After purchasing the right cables and adapters that can plug into the female end of the SetJet USB, our device can allow file transfer to almost every portable electronic device; anything that has a USB, mini-USB, micro-USB, Apple Dock, or even a bluetooth port. A Smartphone can transfer files to our device, which then can turn around and transfer it to a Kindle without ever having to plug into a computer - this is a significant competitive advantage over pure Bluetooth technology. Our device also powers itself through its own battery, so it's not the energy hog that Bluetooth is. A hard-line connection to the target device gets rid of the security issues automatically. If the USB-to-Bluetooth adapter is used, then it will suffer the same security issues of other Bluetooth devices - but the hacker could only gain access to whatever is stored on the USB instead of practically every file, document, and email that you have ever touched. When the device shuts off, then files cannot be illicitly copied. This allows the S3 to have the same advantages of Bluetooth, while mitigating many of its problems.
Dropbox
Dropbox - a program where users can share folders that sync through the internet - is also a competitor. Mainly meant for computer-to-computer file transfer, the program has an application for mobile devices - but it is again clumsy to use for anything but viewing files. Two people inperson would both need internet connections on their mobile devices, which is no guarantee. And even if individuals overcome this barrier, folders would still need to be mutually shared, which makes in-person file transfer between two strangers incredibly unlikely. The SetJet USB is a direct transfer product that does not need internet and does not need configuration time between new acquaintances. The S3 could also build off Dropboxs technology
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by encouraging users to program the software on the USB to automatically move the files directly into a Dropbox folder, so that newly received files would be accessible on all of their devices. There is ample partnership opportunity here.
Email
Email is a competitor in the sense that two people can share files quickly and easily without already needing to be acquaintances, but Email has the same problems that Dropbox has. Both people would need to have internet as well as each others contact information, and even so it clumsy at best to send files with most to each other off of mobile devices. A simple hook-up connection, such as the S3 provides, would be easier.
Sample Case 3: Better than Bluetooth I dont trust Bluetooth anywhere near me or my small business. The John Barker special about blue-jacking scared me half to death. You mean that someone can download all my emails from my phone as long as they are within a 30 foot radius of me? I have confidential documents in there. I have passwords saved. Thats my privacy we are talking about! My livelihood! SetJet gave me a way to securely transfer files between myself and my employees. I can quickly hook the device up to each of their work phones, hit a button, and the files move over almost instantaneously. No worries about who does and does not see these files. Such a relief. I just carry this thing around with me instead of my normal flash drive. No extra baggage necessary.
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B. Packaging
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The packaging is meant to reinforce our brand and the values of small, simple, and secure (Fig. 5). The packaging is a simple white hard cardboard box with our company name, product name, and respective logos for each. The size of the box is no bigger than it has to be in order to fit our product, a pre-packaged cable splitter, and an instructional manual. The minimal coloring along with the empty white space on the box, combined with the ease of opening it, embodies simple. The thick, hard cardboard box embodies secure.
C. Community
Fostering an online community through social media will be a key to our marketing strategy. One idea is that our social media outreach will have a transfer of the week promotion, where artists can submit creative new ways that they used our product such as getting a store manager to set up their S3 in-shop to sell their music without the artist themselves having to be there. Winners featured on our transfer of the week would receive a promotional package as a prize, where they are featured on our site with samples of their music and information on their upcoming performances. The other part of the prize would be a custom, band-specific case for them to carry their S3 in with pride. Our commitment to foster these relationships will create a sense of belonging to our company, and will drive musicians to feel like they are missing out on something, if they are not a part of the SetJet community. Accounts on the website will be free and we will strive to help out up-and-coming musicians see themselves as entrepreneurs. Not only will there be forums focused around using the S3 in creative ways, but there will also be section talking about challenges musicians face running their own businesses. Our social media team will create sections on the 101 things musicians need to know. There will be sections on everything from accounting to viral marketing. For example, we will also link to other tools that these musical entrepreneurs could use; Sites, such as CDbaby and Sonicbids, which focus around helping musicians market themselves. These websites also help musicians find gigs and get their music on everything including iTunes, Spotify, Amazon, Google Play, and many more. Having links to these sites along with our own how to sections will give our customers the confidence and skills they need to succeed in their music. Discounts will be offered and a reward system created to people who actively engage on our forums therefore rewarding brand loyalty. In order to kick start SetJets community, we have set aside $500 dollars a month to distribute around 40 S3s to musicians. These musicians will become our brand champions, and will begin the word of mouth advertising for the S3. Some of the places where we will distribute these promotional S3s will be music festivals and tradeshows, where we will have demonstrations of the product. Going to these events will be a way to show off the products and to find potential brand champions to give products to.
D. Online Advertising
Early on, we will focus on the lesser expensive promotion medium, over the internet. We will advertise through Google Ads and the musician sections of social media sites like Facebook and MySpace, all of which will drive potential customers to our website. Internet ads will be the target of our more traditional ads. We will utilize Google Ads search engine optimization and have deals on daily discount sites such as GroupOn and LivingSocial. We will use blogging and the traffic on the forums of our web site to help our search engine optimization. The S3 will come up under keywords such as music marketing, person file transfer, and USB mini-computer on Google. We will elicit help from our focus groups to see what other unique word combinations come to mind. After the trial phase of our product development, we will begin advertising on more traditional media platforms print, radio, and television. We will have over $800,000 to spend on
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advertisements, and will put commercials on music TV channels such as MTV and BET where prime time commercials cost $5,600 [25]. This will build the association of our product with successful musicians. If possible we will have famous artists using the S3 in promotional ads. In music magazines, such as Vibe and Rolling Stone, we will have ads that illustrate the musicians role as an entrepreneur in order to show how SetJet can help solve their problems. Working with radio stations in cities that are known for their music scene, such as Seattle, Austin, and Memphis, we will advertise how our community and products can help them succeed.
E. Pricing
The preliminary price for the S3 will be $40, which is expensive for data storage, but quite affordable for a pocket size computer. The premium is justified because of the community the SetJet website will foster and the additional functionalities of the S3 over a USB flash drive (Fig. 6). We will market our product as an investment because using the S3 can replace and supplement other methods of distribution, which will ultimately save musicians money. The marginal cost of an artist buying a blank CD with a case is $1.30, whereas the marginal cost of transferring from the S3 is free [14]. This will allow us to ask for a higher price as compared to a USB flash drive. Because there are multiple alternatives readily available for file-sharing, the price elasticity for our market will be high. We will be able to judge our success by looking at the portion of the market we have captured as obtainable through polling. Sales would also be a good indicator of our success.
F. Sales
As we begin to market and sell our consumer electronic products, our salespeople who are paid on commission - will reach out and sell directly to businesses and consumers. This will be done by attending festivals, trade shows, and approaching potential clientele individually. SetJets salespeople will begin to set the stage for wider-consumption. Even if our salespeople cannot make the in-person sale immediately, they can direct individuals to follow-up on our website that we will have up at the launch of our company. Our website will not only act as a public face to our company, which brandishes our image, but also will be able to transact sales and support the aforementioned forums. Website sales will ship directly from the factory floor to the customer. Musicians will use the SetJet S3 as a new, more personal way, to distribute their music. SetJets goal is to have transactional relationship with our consumers, but as a start-up, we will be more
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on the relational side to build our brand image from scratch. We believe that it will take time to convince the first adopters. Musicians should become convinced to buy our product after no more than two interactions, once to become introduced to the product, and once to be convinced that they need it. Each of which should be no longer than a short commercial ad. The sales cycle should be no more than a week to begin with, but in the long run it should be instantaneous as people will be able to buy our product off the shelf. The S3 is designed to help musicians with their distribution needs, which never ends, so we aim to build our relationship with the customer after they have our product.
G. Distribution
We will distribute our product in three different ways: Directly from our facility, through our salespeople, and later on all other major outlets focusing primarily on Amazon. Sales made through our website will ship directly to the consumer using one of the parcel services. Our salespeople will have inventory on-hand to sell to consumers whenever and wherever they encounter them. They can also re-direct consumers to our website, and still take a commission if the purchaser provides a certain code, if they cannot make the sale in-person. We hope to quickly take advantage of Amazon's sales and distribution network by becoming an Amazon Prime product that ships directly from their warehouses. As such, we plan on establishing our distribution facility and inventory warehouse near the industrial park in Sumner, WA, where there is convenient access to Amazon's distribution center [15]. Besides being able to tap into their sales network, this location allows us to take advantage of the nearby ports of Pudget Sound to have our offshore suppliers ship components to us. Sumner, which is a traditional manufacturing city that got hit hard by the recession, has experienced significant unemployment at 10.7 percent [16]. These conditions benefit our company because it will: reduce labor costs, make available large amounts of underutilized manufacturing capacity, and give SetJet options of many empty warehouses. Other major consumer product manufacturers, such as Green Mountain Coffee Roasters and Kellogg's, have begun to re-locate inside the industrial park in the city for these same reasons [15]. Longer term, we plan on selling our products en masse to every major retailer. Any consumer can walk into a big box store - like Best Buy or Wal-mart for example - and buy it directly off the shelf. At this point, we would deliver large quantities from our distribution warehouses to each of these chains. If need be, we would consider opening up an assembly operation in East Asia to take advantage of lower labor costs. International distribution centers are in the very long-term time horizon. Sample Case 4: After the Show Right before TasteBuds band gets off stage, they let the crowd know that they will be selling their new album out in the parking lot. As I approach them, they ask me if I would like to buy a CD. The hitch is that I havent bought a CD in nearly a decade now. All my music is on my iPhone and thats exactly where I want their album now too. What am I going to do with a CD? No problem, TasteBud says as he pulls out the brand new SetJet S3, and then asks to see my iPhone. I want to hear his newest song, so I give it to him and he plugs the S3 into my phone. He presses a button and next thing you know, Im rocking out to their newest hits. Instant gratification achieved thanks to the S3.
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importance of R&D as a core value, in that we need to stay ahead of the technological curve. In any consumer electronic product company, having a constancy of quality base components will be instrumental to our success. We will locate our warehouse on the west coast in Sumner, WA in order to be near a major port, which allows us to receive parts from East Asia. Though there are many possible computer component companies that we could do business with, cultivating these relationship in a competitive marketplace will continue to be important. Here are a few potential suppliers, although these are third party and in the future can be circumvented by going directly to the components manufacturers: i. ii. iii. iv. Hosfelt DigiKey Mouser AllieDelec
In the near term, our plan will be assembling products on a small scale in-house while we work on establishing our footprint in the market. We need to ensure quality products that are produced in a timely and cost effective manner by instituting a quality control process before finished goods go into our inventory. The last thing we want is unsatisfied customers because the product is broken prior to delivery. In the long run when quantities sold go from the hundreds to the tens of thousands, we will consider contracting out the manufacturing to an East Asian company to do it overseas where labor costs are significantly less. We believe that managing both in-process and finished goods inventory will be crucial to our success. Failure to do so could lead to potential cash-flow problems and unnecessary overhead expenditures, which could jeopardize our business. Another reason that we are placing our locating in Sumner, WA is that we desire to be near the industrial park that Amazons distribution center in in. This gives us a strategic advantage because it allows us to leverage their pre-existing distribution channels. We will focus on quickly becoming an Amazon Prime featured product to help kick off the transition from musician-oriented product to a mass market good. Though we would lose a bit of revenue per sale going through Amazon, it would open us up to having a significantly larger audience and therefore make it up terms of volume. Sales will also be shipped directly from our warehouse to customers who buy the product on our website, as well as distribution through independent salespeople. In the long run, we hope to be on the shelves of every major retailer and therefore utilizing their distribution networks to do so.
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B. Marketing Flow
At the beginning of our company, the marketing team will be out doing research on the target market and making connections within the music community while the product flow team is doing R&D (Fig. 8). The marketing campaign by leveraging social media, such as Facebook and Twitter, as mentioned in the marketing strategy section. The sales team will travel to musician based events, including music festivals and tradeshows, and will sell the product directly to the musicians at these events. By giving product demonstrations and free promotional merchandise, the sales team will make sales to the critical early adopters that will help ferment our brand image. The online advertising campaign will begin with Google Ads, AdWords, and AdSense. Although we would prefer people to buy the product off of our website directly because we will capture a greater share of revenue that way, we believe that customers would be more likely to purchase the product off of Amazon as there is an inherent trust and convenience factor to take into consideration. For that reason, most online advertising will direct people to Amazon where they can buy the product. When we have more of a marketing budget we will begin advertising on music stations, as well as using print ads in music magazines such as Vibe and Rolling Stone. All of these advertisements will drive customers to our website where they can look at videos of how to use the product and will have a chance to buy the S3. In the long run, television advertisements become more appealing once we make the transition to being a mass market good.
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Sample Case 5: Going Overseas I am going to Zimbabwe next month to help a group of farmers make the best use of their resources. To do so, I want to transfer a lot of electronic articles and eBooks to them in order to have more of a lasting impact. The problem is that I dont want to carry around a laptop, not only for the inconvenience factor but because it is also a target to get stolen as well. The SetJet S3 was an easy solution to my problems. I can carry it around and can transfer files on the go without needing a computer or internet. It just works.
Though Figure 8 and 9 do not tell much of a story in of themselves, they are introduced in this section in order to complete the whole flow chart that can be seen in Appendix C.
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IX.
Financials
Initial Investment by Management Team: 30,000. Capital Investment: First Round: $500,000. July 2012 Second Round: $1,000,000. January 2014 (See Financing Section for more details) Interest rate on savings account: 1.00%. Market Size: Number of professional musicians in the U.S. is 240,000, but there are around 62 million amateur musicians that are not [1][20]. SetJet estimates that 1 percent of the market will buy our product, leaving 622,400 S3 patrons. The number of Americans with smart phones is an estimated 50 million. Global number of people with electronic mobile devices is in the hundreds of millions. These statistics lead us to the conclusion that there is no short term market cap, but rather it makes sense to have a push model of production and sales backed by a hefty marketing budget. Minimum 25 percent of our budget goes to marketing and it grows over time. Sales: 150 units sold in the first month with an 8% growth rate. Growth coincides with increases in the marketing budget, especially after the second round of financing. (See Revenues section for more details). Sales Commissions: Our salespeople will be paid a 15 percent commission for every S3 sold. In addition, big box stores and Amazon will also take a 15 percent commission. Seventy five percent of our sales will be through commission with the rest being directly through our website. Marketing budget: The initial round of financing is seed money for our website and social media projects which makes up approximately 25 percent of our budget. The second round of financing has significant investments in marketing in order to sell our product which accounts for 45 percent of our budget. Sales Price: $39.99. Determined by an amount that customers would be willing to pay, maintained cash flow, and a breakeven point in the fourth year. Cost of Goods Sold per product: $10.25, as shown by our secondary research on parts (See Expenses section for more details). Production Capacity: 24,960 a year per full-time worker. We believe that the assembly of the product with a soldering iron can be done in five minutes. 12 per hour * 40 hours a week * 52 weeks a year = 24,960. The management team will be assembling the S3 ourselves until sales reach a point that justifies a full time worker. In the long term future, at the point where several full-time employees are needed to build the S3 we will look at outsourcing the work. Compensation: $36,000 a year with 3.5% annual growth, minor benefits package of $1,000 growing at 3% per year, and potential for bonuses that coincides with company growth (See Expenses section for more details). Size of management team: 3 individuals. The three initial people highlighted in the management team profile, which covers specialties of manufacturing/production, finance/accounting, and marketing/sales. A fourth individual will be hired on the onset who is a computer science engineer to design the hardware and software. The number of employees grows over time with increases in sales revenue, especially after we receive our second round of financing (See Expenses for more details). Breakeven point: Without expansion plans: ~5,600 units in total, or 600 per month With expansion plans: ~64,000 units in total, or 7,000 per month
A. Financial Assumptions
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Runway: Between first and second rounds of investment: Without expansion plans: 55,288 /33,645= 1.6 months With expansion plans: 55,288/224,000= 0.2 months If our second round of financing does not come in when we would like it to in Jan. 2014, then we will postpone our expansion plans. If we do not expand, then we can make some minor cuts to be at a break-even point in early 2014 that allows us to stay afloat until further investment is made. With expansion plans, our breakeven point will not occur until late 2015. If expansion is undertaken, then our profits will be much greater in the future that if it was not.
B. Financing
$3,000,000.00 $2,500,000.00 $2,000,000.00 Outside Financing $1,500,000.00 $1,000,000.00 $500,000.00 $0.00 2012 -$500,000.00
Figure 11: Financial position of the company over time
2013
2014
2015
Initial funding will come from the founders, but the majority of investment will have to come from outside sources. We have two distinct phases of our company, where each will need its own round of financing: A seed phase in 2012 (Round A) and start-up phase in 2014 (Round B). Our business will be operating at a loss for the first few years before becoming profitable in 2015 (Fig. 11). The initial funding combined with Round A financing will support the company for the first 18 months, plus a short runway to secure additional financing. At the end of this first phase, we will have a patented product in hand that has already undergone trial phases. The company will be ready to move to mass marketing and mass production. Though the company is near self-sustainability at this point, but future profits would be greatly increased by further investment. Funding in Round B will provide capital to the company to carry out its expansion plans. During this time, our marketing budget increases by 10 times over, the number of employees doubles, outside consultants are brought in, and production and sales significantly ramp up. Our financial model puts our new breakeven point at 12 months after Round B. If it looks like we are not going to make our sales target, then we will pull back a little on our expenditures until our sales catch up.
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Initial funding to get the company off the ground will be $30,000 provided by the three founders and their respective family and friends. This round of financing will mainly be used as a buffer while obtaining further funding. The CEO will provide $12,000, and as the largest initial investor, will serve as the final authority on all decision making. The two other founders will provide $9,000 each. Round A begins in July 2012 with a $500,000 capital injection by selling a piece of our company and an additional $30,000 brought in by the friends and family of the founders. With our complete business plan in hand, a product that has a patent pending, and a competent management team, the company will be ready to start the project. The money will be used for the first six months, there will be an R&D phase where prototype models are made, the website is built, and a future production model is created. The next 12 months will be spent on producing, marketing, and selling the initial trial version of our product. The website will be up and running at this. Our sales and marketing people will be reaching out to artists and building our connections in the community during this time. The initial feedback will be used to fine tune our product and message. Round B begins in January 2014 with an additional capital injection of $1,000,000: Three-fourths of which comes from selling another piece of the company and the final one fourth coming from bank loans with an APR of 8%. This amount from these sources will be able to provide adequate cash flow for a rapid expansionary period. If funding cannot be obtained in January 2014, we have the ability to cut costs and be self-sustainable within six weeks before we run out of money. The funding will be used to ramp up marketing, production, and sales to become more of a mass market good.
C. Revenues
The main driver of revenues will be sales. After a 6 month R&D period, we expect to sell 150 units in January 2013 at a sales price of $39.99 with most of those sales coming from direct contact to musicians through our salespeople. With a significant marketing budget at hand of at least 25 percent of all expenses, we believe that our sales will grow at a rate of 8 percent per month. As our salespeople start to develop deeper relationships and as our social media campaign begins to take off, we will experience strong growth in the coming years. Our model predicts that we will have 1,100 and 4,517 during the first two years respectively during our trial phase, and 56,785 sales in the third year as our company expands. The exponential growth coincides with hefty increases in our marketing budget, especially beginning in 2014 after our second round of funding when we will triple our marketing budget for a full on blitz of the market. The revenue of these sales is tempered by having a 3% budget allowance for returns and replacements. We expect approximately 75% of our sales to be on credit with 30 days in accounts payable. At first, these on-credit sales will be given to independent salespeople who make a 15% commission per sale and later on, they will be to major retailers such as Amazon, Best Buy, and other box stores. As there are so many different uses for this technology as we explain in the staging section, we do not feel that our market potential is capped in the near term. Because of the unpredictability of our possible secondary revenue sources, our model does not take these into account. These secondary revenue sources would only marginally contribute to funding, such as advertising on our social media page, using AdSense, selling plug-ins, and potential partnership activities. In addition, we also intend to apply for a SBIR grant by stressing the security aspects of our product that could be used as a tool for the US military whilst producing US jobs. By either the end of 2013 or 2014 depending on expansion, our revenue from sales will be enough to sustain our business. Based off our financial model, SetJet would need to sell approximately 5,600
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units in total and maintain a pace of 600 unit sales a month to be at a break-even at the end of 2013. To be at our break-even point at the end of 2014, SetJet would need to sell approximately 64,000 units in total and be currently at a pace of 7,000 unit sales per month. There is no seasonality that is taken into account in our financial model.
D. Expenses
2013
Dollars Employee Compensation Professional Services Marketing Inventory Other $128,610.00 $27,000.00 $93,600.00 $37,040.61 $57,504.00 Percentage 37.41% 7.85% 27.23% 10.78% 16.73%
2015
Dollars $691,021.02 $105,000.00 $1,830,000.00 $1,241,827.15 $210,568.80 Percentage 16.94% 2.57% 44.87% 30.45% 5.16%
Total
$343,754.61
100.00%
$4,078,416.97
100.00%
Figure 12 above shows how our expenditures change after our first and second round of financing. The 2013 numbers show what SetJets expenditures are 6 months after securing Round A, whereas the 2015 numbers show what SetJets expenditures are 12 months after Round B. The delay is used in order to give a more accurate representation of our costs after the transition is over.
After the first round, employee compensation is high as a percentage as we are employing four individuals at competitive wages who will get the company going. The marketing budget is simply seed money to make our website operational and have our marketing team out in the field. Some inventory to build our product and some professional services mainly to hire a patent lawyer and a marketing consultant - is needed. Other costs are mainly our capital expenditures and rent at this point. After the second round of financing, marketing and inventory make up a combined 75 percent of our costs. The marketing budget balloons to over $1.8 million a year in order to push our product out into the marketplace. Despite doubling our staff and paying out bonuses, the percentage that
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makes up employee compensation drops to 17. Similar story for professional services; despite the increase in pure dollar amount, the percentage still falls. Inventory now makes up approximately a third of our budget. The big change in other costs is the movement to a much larger warehouse. Overall, fixed costs decline as the variable costs increase. We need to keep our finished S3 inventory ahead of our sales, which will require us to purchase our components a month ahead of the sales that we are expecting plus 10 percent in case we grow faster than our initial projection. Inventory costs are accounted for on a linear scale, by which we mean that we are only finding the costs of each component on a per unit basis. But we have to in all cases purchase the components for the S3 in bulk to obtain wholesale prices, which have been discussed above. The parts that have been identified to inventory are casings, packaging, circuit boards, RAM, processors, buttons, switches, male and female USB ports, and batteries. We used alibaba.com, a global-trade site where manufacturers sell their products wholesale to other businesses, to find our offshore manufacturers. With all the parts, except casings and packaging, we have identified the manufacturers, prices, and quantities needed (See Appendix B). To keep costs down, the original team will be working out of a residential house in Sumner, WA during the first few years of operation. A single house could serve as a location to hold inventory, produce the product, and conduct all other business functions, as well as house our staff. As operations ramp up in later years, money has been budgeted to move to a commercial warehouse. A moderate salary of $3,000/month will be paid out to employees, as well as a small stipend for benefits that could be used to cover things like health care costs, bus passes, and other miscellaneous expenses. Employees will also receive bonuses once the company earns a net profit. We believe that this compensation package would be adequate to entice and retain people with an entrepreneurial spirit. Another way to keep expenses down is to minimize capital expenditures. A single vehicle can be used for transport by the whole team, which is one of our few major capital expenditures. Other major capital expenditures are computers and office furniture, which will give the front office a professional feel for visiting clients. Other minor capital expenditures include tools such as soldering equipment, wiring, clamps, voltmeter, work desk, and lamp needed to do assembly. We budget more than enough money to purchase plenty of this equipment because we could not produce our products without it, but if we properly maintain such equipment than the longevity of these products will increase.
Sample Case 6: The Job Fair I have found a sure-fire way to make representatives at career fairs remember me. They get handed hundreds of paper resumes and business cards, but how many people can transfer an electronic copy to them right there on the spot? Well, I can and I do. I pull my S3 out of my pocket and transfer my resume to their laptop or any other mobile device that they have on them. They remember me as that tech-savvy applicant and therefore get plenty of calls back. All thanks to SetJet.
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X.
Appendices
Based off of these findings, this focus group reinforced what SetJets assumptions of what would be the selling points to musicians. But with the addition that we will have to take into consideration how to include credit card purchases into the transaction most likely, in a future product.
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PART 1: PRE-DESCRIPTION QUESTIONS a) Do you wish there was an easier way to receive electronic music files in person besides CDs? b) Do you care about environmental concerns when purchasing music? PART 2: DESCRIBE PRODUCT PART 3: POST-DESCRIPTION QUESTIONS a) In what contexts do you see yourself using such a device? b) Would you trust people to transfer music files over to your device? What would alleviate this trust concern? c) Would you enjoy getting music more from artists this way compared to a more conventional way, such as off iTunes or CD's? Key findings were: Dislike the clutter left by CDs and paper. Do not mind the environmental impact of CDs. Displeasure towards the time and task to rip their music on their computers from CDs. Do not want to take more than a few seconds to sync their music to their listening device. Would prefer to use the S3 in smaller, intimate settings with start-up musicians to establish personal connection with musicians. Not concerned about plugging their devices into a strangers S3 when holding their own device, but were worried if they had to hand their own device over to the transferor. Expressed unease at not having a receipt for proof of purchase, as if they bought the music from a store.
One great example that shows that demand for our product exists: When asked about inadequacies in the music purchasing market and before introducing our product, one individual responded by describing his want for a USB that could hold and transfer music directly to his phone. He went on to describe other features of that possible product that coincided with what we are selling. This proves that our idea is not unique, but we can be the first ones to obtain a patent and introduce the product to market.
Interviews
We spoke to other experts in various fields who have insider knowledge that could help our business succeed. These individuals so far include: a) Jen Maisel J.D. Jen is a patent lawyer in Washington, D.C. We will be speaking to her for information on how to protect our product from being copied by another competitor. When asked about what it takes to get a patent, her response was a lot of time, a lot of money, and someone who can argue with the patent office. We would have to show that our product is truly unique. On the plus side, there has been a shift in patent law that has moved to first-to-file patent acknowledgement. So even if our patent is pending for the first few years as our application works through the process, we would be able to legally defend the product as soon as our patent is approved. This increased the importance of filing a patent, as well as seeking legal counsel, early-on; we have therefore allocated budget room to do so.
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b) Jayde Doetschman is the owner of Moon City Records. Her experience in running a business, establishing a network, and managing revenue flows will provide insight into pains that are in the music industry concerning SetJet. When asked about how useful this product would be to new artists, she said that it would be a welcomed new tool for artists to get their name out there. She agreed to serve on our advisory board and introduce our product to the artists that come through her recording studio. She will be a valuable contact in the field of music marketing and promotion. c) David Gries Computer Science Professor, Cornell. His professional insight will provide clarity into how probable it will be to provide a software interface for the S3 with other devices. When asked about how to program the software and other compatibility issues, he said that it ought to be rather straightforward for a software engineer to program and could easily be done within our development timeframe. He did not think there should be issues getting into the file folders for either Android or Apple products. He also recommended making the software open-source in order to give our users a more customizable experience. d) Lacey Caroline- is a musician in New York City. We will be speaking to her to have a better idea of the entrepreneurial challenges facing musicians. When asked about what challenges she faced as a new artist, she responded that, Getting her name out there was not the problem, getting people to remember her name was. She said that when she would refer people to iTunes to get her music they never would, and once they parted ways she would never have contact with the person anymore. She thought that the S3 would be able to help her leave a more lasting impression on her listeners.
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B. Cost of Components
Printed Circuit Board Manufacturing: Global Design Tech Electronics Co., Ltd. (Wuxi, Jiangsu, China) (also known as DK) is an advanced technology company specialized in researching & developing, designing and manufacturing all types of intelligent control panels and controllers. We implement electronic product designs, industrial system automation designs, electronic circuit hardware and software designs and others while fulfilling OEM/ODM purchase orders. Our main focus is on R&D and technically-driven electronics manufacturing ... http://www.alibaba.com/product-gs/471364891/High_quality_PCB_SMT_DIP_soldering.html?s=p Price: US $ 1 - 100 / Piece Min order 10 Piece/Pieces Other manufacturers: China: http://www.pcbnet.com/default.asp China: http://www.hampoo.com/en/pcb_fab?gclid=CMPei62no68CFQdN4AodHx8aaw US: http://www.4pcb.com/ USB Connectors: Dongguan ADAM Electronic Technology Co., Ltd., founded in Changan, Dongguan in 2003, is a private industrial enterprise integrating R&D, moulding, stamping and assembling together. USB 3.0 Connector A Type Male & Female: http://www.alibaba.com/product-gs/321581900/USB_3_0_Connector_A_Type.html?s=p http://www.alibaba.com/product-gs/318319128/USB_Connector_3_0_A_Type.html?s=p\ Price: 0.31 to 0.42/part RAM: Welcome to ShenZhen Faost Co.,Ltd, one of most professional manufacturers of digital products, including USB Flash drives/Pen drives/Flash memories/Pen drives/Pen flash,Flash drive+Hub,USB drive+SD,digital photo frame from 1.1" up to 15" ,HDD enclosure,(HDD) Multi-media player and solar charger for iphone 3G/3GS in China. http://www.alibaba.com/product-gs/218857656/Dual_Drive_SD_Card.html US $ 3.3 33 300 Piece/Pieces Processor:
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SHEN ZHEN YI XIANG TRADE CO.,LTD (other name SAMTECH IMPORT & EXPORT CO LTD) is an agent for many famous enterprises. We're engaged in electronic digital storage product sale,including memory modules,usb, SD/TF/MS flash cards, card readers, MP3/4/5 players, digital photo frames, notebook computers and computer accessories and etc. http://www.alibaba.com/product-gs/517015113/laptop_M_Processor_760_2_0GHz.html US $ 1 - 5 / Piece Min order 200 pieces Battery: Our company was founded in 2000 and is mainly engaged in designing and manufacturing CR series lithium manganese dioxide button batteries. Our products include six series and thirty-two varieties. http://www.alibaba.com/product-gs/527375279/3_6V_li_button_cell_battery.html US $ 0.4 - 0.8 / Piece Min order 1,000 pieces Buttons: Zhejiang Jianfu Electronics Co., Ltd., found in 2002,is a professional manufacturer engaged in producing and developing tact switches. Reply on technological Superiority, 25 years' production and development experience, we are dedicated to growing into an excellent manufacturer of tact switch. http://www.alibaba.com/product-gs/201190794/square_push_button_tact_switch_smd.html US $ 0.045 - 0.055 / Piece Min order 1,000 pieces Switches: Established in 1998, Miaosen Plastic & Electronic Co., Ltd. Of Dongguan City is located in Dongguan, China. We have many years of experience in making switches. Based on our strong producing capability, we pay our attention to quality controlling. Our management members insist on the principle of ''Quality, Professionalism, Honesty & Win-win'' in our business. http://www.alibaba.com/product-gs/433020461/sliding_gate_limit_switch.html US $ 0.037 - 0.21 / Piece Min order 1,000 pieces
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Timing flows from right to left. Once processes begin, they do not end. Everything that is parallel on the vertical axis begins at the same time. The complete diagram shows how the company moves from the beginning R&D phase, through the trial phase, and finally becoming a fully-supported mass market prdocuct.
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D. Secondary Sources
1. Musicians, singers, and related workers 2008 Retrieved 3/15/2012, 2012, from http://www.bls.gov/oco/ocos095.htm#earnings 2. Hracs, Brian Jennings. (20011). T-space at the university of Toronto libraries: Working in the creative economy: The spatial dynamics of employment risk for musicians in Toronto 2011. Retrieved 3/15/2012, 2012, from https://tspace.library.utoronto.ca/handle/1807/26275 3. Berman, S., Battino, B., & Feldman, K. (2011). New business models for emerging media and entertainment revenue opportunities. 4. Bengloff, R. (2010). A road map for indies. Billboard, 122(4), 6-6. 5. Byrne, Sean. (2003) ITunes download service and others only help rip-off musicians | MyCE my consumer electronics Retrieved 3/15/2012, 2012, from http://www.myce.com/news/iTunesdownload-service-and-others-only-help-rip-off-musicians-6910/ 6. Mizell, Cameron. (2008). How to effectively promote and sell your music on iTunes Retrieved 3/15/2012, 2012, from http://www.musicianwages.com/the-working-musician/how-to-effectivelypromote-and-sell-your-music-on-itunes/ 7. RIAA - recording industry association of america Retrieved 3/15/2012, 2012, from http://www.riaa.com/physicalpiracy.php?content_selector=piracy-online-scope-of-the-problem 8. Oberholzer-Gee, F., & Strumpf, K. (2010). File-sharing and copyright. 9. Friedlander, Joshua P. (2010). Illegal downloading = fewer musicians. Retrieved 3/15/2012, 2012, from http://www.riaa.com/blog.php?content_selector=riaa-news-blog&blog_selector=Illegal Downloading_Fewer Musicians&news_month_filter=7&news_year_filter=2010 10. Bluejacking frequently asked questions :: Bluesnarfing Retrieved 3/15/2012, 2012, from http://www.bluejackq.com/bluesnarfing.shtml 11. Jakobsson, M., & Wetzel, S. (2001). Security weaknesses in bluetooth. 12. Humphrey, Clark. (2009) MISCmedia, a report on popular culture by clark humphrey loser: The real seattle music story Retrieved 3/16/2012, 2012, from http://www.miscmedia.com/books/loser-the-real-seattle-music-story/
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13. Festivals and concert series - music - arts - seattle.gov Retrieved 3/16/2012, 2012, from http://www.seattle.gov/html/visitor/musicfests.htm 14. BestBuy.com 2012 Verbatim - 10-pack 12x CD-RW discs with slim cases - 95156 Retrieved 3/16/2012, 2012, from http://www.bestbuy.com/site/Verbatim+-+10-Pack+12x+CDRW+Discs+with+Slim+Cases/1791222.p?id=1218291944399&skuId=1791222 15. Gillie, John. (2011). Amazon to open Sumner warehouse, hire several hundred | business - the news tribune Retrieved 3/15/2012, 2012, from http://www.thenewstribune.com/2011/05/04/1652278/amazoncom-to-open-sumnerwarehouse.html 16. Economy in sumner, washington Retrieved 3/15/2012, 2012, from http://www.bestplaces.net/economy/city/washington/sumner 17. Music Consumer Focus Group . 8 people. March 31, 2012. 18. Music Business Manager Focus Group. 8 People. April 7, 2012. 19. 4G wireless speed tests: Which is really the fastest? | PCWorld Retrieved 4/23/2012, 2012,
from http://www.pcworld.com/article/221931/4g_wireless_speed_tests_which_is_really_the_fastes t.html 20. Marketing to musicians | american demographics | find articles Retrieved 4/23/2012, 2012, from http://findarticles.com/p/articles/mi_m4021/is_n3_v18/ai_18056290/?tag=content;col1 21. MP3 vs AAC vs FLAC vs CD | stereophile.com Retrieved 4/23/2012, 2012, from http://www.stereophile.com/features/308mp3cd 22. O' Brien, K. (2008). Power and performance characteristics of USB flash drives. 23. USB powered gadgets and more.. Retrieved 4/23/2012, 2012, from http://www.getusb.info/what-is-the-life-cycle-of-a-usb-flash-drive/
25. Interview Professor Jura Liankonte Cornell University April 9, 2012 26. Interview Jen Maisel April 13, 2012
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27. IBISWorld global music production and distribution industry market research report - industry
conditions Retrieved 4/23/2012, 2012, from http://clients.ibisworld.com/globalindustry/conditions.aspx?indid=2160
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