NON-DISCLOSURE AGREEMENT

THIS AGREEMENT (the "Agreement) is entered into on this 21 st day of April 2016 by
Cevdet Furkan Ozgunaydin and Inter Stellar group between any third party, located at Kaunas
Lithuanua( the Disclosing Party).
The Recipient here (..) to desires to participate in discussions regarding Inter Stellar
Intellectual Property/(the Transaction). During these discussions, Disclosing Party may
share certain proprietary information with the Recipient. Therefore, in consideration of the
mutual promises and covenants contained in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:
1. Definition of Confidential Information.
(a) For purposes of this Agreement, Confidential Information means any data or
information that is proprietary to the Disclosing Party and not generally known to the public,
whether in tangible or intangible form, whenever and however disclosed, including, but not
limited to: (i) any marketing strategies, plans, financial information, or projections,
operations, sales estimates, business plans and performance results relating to the past, present
or future business activities of such party, its affiliates, subsidiaries and affiliated companies;
(ii) plans for products or services, and customer or supplier lists; (iii) any scientific or
technical information, invention, design, process, procedure, formula, improvement,
technology or method; (iv) any concepts, reports, data, know-how, works-in-progress,
designs, development tools, specifications, computer software, source code, object code, flow
charts, databases, inventions, information and trade secrets; and (v) any other information that
should reasonably be recognized as confidential information of the Disclosing Party.
Confidential Information need not be novel, unique, patentable, copyrightable or constitute a
trade secret in order to be designated Confidential Information. The Receiving Party
acknowledges that the Confidential Information is proprietary to the Disclosing Party, has
been developed and obtained through great efforts by the Disclosing Party and that Disclosing
Party regards all of its Confidential Information as trade secrets (b) Notwithstanding anything
in the foregoing to the contrary, Confidential Information shall not include information which:
(i) was known by the Receiving Party prior to receiving the Confidential Information from the

Disclosing Party; (b) becomes rightfully known to the Receiving Party from a third-party
source not known (after diligent inquiry) by the Receiving Party to be under an obligation to
Disclosing Party to maintain confidentiality; (c) is or becomes publicly available through no
fault of or failure to act by the Receiving Party in breach of this Agreement; (d) is required to
be disclosed in a judicial or administrative proceeding, or is otherwise requested or required
to be disclosed by law or regulation, although the requirements of paragraph 4 hereof shall
apply prior to any disclosure being made; and (e) is or has been independently developed by
employees, consultants or agents of the Receiving Party without violation of the terms of this
Agreement or reference or access to any Confidential Information.
2. Disclosure of Confidential Information.
From time to time, the Disclosing Party may disclose Confidential Information to the
Receiving Party. The Receiving Party will: (a) limit disclosure of any Confidential
Information to its directors, officers, employees, agents or representatives (collectively
Representatives) who have a need to know such Confidential Information in connection
with the current or contemplated business relationship between the parties to which this
Agreement relates, and only for that purpose; (b) advise its Representatives of the proprietary
nature of the Confidential Information and of the obligations set forth in this Agreement and
require such Representatives to keep the Confidential Information confidential; (c) shall keep
all Confidential Information strictly confidential by using a reasonable degree of care, but not
less than the degree of care used by it in safeguarding its own confidential information; and
(d) not disclose any Confidential Information received by it to any third parties (except as
otherwise provided for herein). Each party shall be responsible for any breach of this
Agreement by any of their respective Representatives.
3. Use of Confidential Information.
The Receiving Party agrees to use the Confidential Information solely in connection with the
current or contemplated business relationship between the parties and not for any purpose
other than as authorized by this Agreement without the prior written consent of an authorized
representative of the Disclosing Party. No other right or license, whether expressed or
implied, in the Confidential Information is granted to the Receiving Party hereunder. Title to
the Confidential Information will remain solely in the Disclosing Party. All use of

Confidential Information by the Receiving Party shall be for the benefit of the Disclosing
Party and any modifications and improvements thereof by the Receiving Party shall be the
sole property of the Disclosing Party. Nothing contained herein is intended to modify the
parties' existing agreement that their discussions in furtherance of a potential business
relationship are governed by Federal Rule of Evidence 408.
4. Compelled Disclosure of Confidential Information.
Notwithstanding anything in the foregoing to the contrary, the Receiving Party may disclose
Confidential Information pursuant to any governmental, judicial, or administrative order,
subpoena, discovery request, regulatory request or similar method, provided that the
Receiving Party promptly notifies, to the extent practicable, the Disclosing Party in writing of
such demand for disclosure so that the Disclosing Party, at its sole expense, may seek to make
such disclosure subject to a protective order or other appropriate remedy to preserve the
confidentiality of the Confidential Information; provided in the case of a broad regulatory
request with respect to the Receiving Partys business (not targeted at Disclosing Party), the
Receiving Party may promptly comply with such request provided the Receiving Party give
(if permitted by such regulator) the Disclosing Party prompt notice of such disclosure. The
Receiving Party agrees that it shall not oppose and shall cooperate with efforts by, to the
extent practicable, the Disclosing Party with respect to any such request for a protective order
or other relief. Notwithstanding the foregoing, if the Disclosing Party is unable to obtain or
does not seek a protective order and the Receiving Party is legally requested or required to
disclose such Confidential Information, disclosure of such Confidential Information may be
made without liability.
5. Term.
This Agreement shall remain in effect for a two-year term (subject to a one year extension if
the parties are still discussing and considering the Transaction at the end of the second year).
Notwithstanding the foregoing, the parties duty to hold in confidence Confidential
Information that was disclosed during term shall remain in effect indefinitely.

6. Remedies.

Both parties acknowledge that the Confidential Information to be disclosed hereunder is of a

unique and valuable character, and that the unauthorized dissemination of the Confidential
Information would destroy or diminish the value of such information. The damages to
Disclosing Party that would result from the unauthorized dissemination of the Confidential
Information would be impossible to calculate. Therefore, both parties hereby agree that the
Disclosing Party shall be entitled to injunctive relief preventing the dissemination of any
Confidential Information in violation of the terms hereof. Such injunctive relief shall be in
addition to any other remedies available hereunder, whether at law or in equity. Disclosing
Party shall be entitled to recover its costs and fees, including reasonable attorneys fees,
incurred in obtaining any such relief. Further, in the event of litigation relating to this
Agreement, the prevailing party shall be entitled to recover its reasonable attorneys fees and
expenses.
7. Return of Confidential Information.
Receiving Party shall immediately return and redeliver to the other all tangible material
embodying the Confidential Information provided hereunder and all notes, summaries,
memoranda, drawings, manuals, records, excerpts or derivative information deriving there
from and all other documents or materials (Notes) (and all copies of any of the foregoing,
including copies that have been converted to computerized media in the form of image, data
or word processing files either manually or by image capture) based on or including any
Confidential Information, in whatever form of storage or retrieval, upon the earlier of (i) the
completion or termination of the dealings between the parties contemplated hereunder; (ii) the
termination of this Agreement; or (iii) at such time as the Disclosing Party may so request;
provided however that the Receiving Party may retain such of its documents as is necessary to
enable it to comply with its document retention policies. Alternatively, the Receiving Party,
with the written consent of the Disclosing Party may (or in the case of Notes, at the Receiving
Partys option) immediately destroy any of the foregoing embodying Confidential Information
(or the reasonably nonrecoverable data erasure of computerized data) and, upon request,
certify in writing such destruction by an authorized officer of the Receiving Party supervising
the destruction).
8. Notice of Breach.

Receiving Party shall notify the Disclosing Party immediately upon discovery of any
unauthorized use or disclosure of Confidential Information by Receiving Party or its
Representatives, or any other breach of this Agreement by Receiving Party or its
Representatives, and will cooperate with efforts by the Disclosing Party to help the Disclosing
Party regain possession of Confidential Information and prevent its further unauthorized use.
9. No Binding Agreement for Transaction.
The parties agree that neither party will be under any legal obligation of any kind whatsoever
with respect to a Transaction by virtue of this Agreement, except for the matters specifically
agreed to herein. The parties further acknowledge and agree that they each reserve the right,
in their sole and absolute discretion, to reject any and all proposals and to terminate
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not create a joint venture or partnership between the parties. If a Transaction goes forward, the
non-disclosure provisions of any applicable transaction documents entered into between the
parties (or their respective affiliates) for the Transaction shall supersede this Agreement. In
the event such provision is not provided for in said transaction documents, this Agreement
shall control.
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Each party warrants that it has the right to make the disclosures under this Agreement. NO
WARRANTIES ARE MADE BY EITHER PARTY UNDER THIS AGREEMENT
WHATSOEVER. The parties acknowledge that although they shall each endeavor to include
in the Confidential Information all information that they each believe relevant for the purpose
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to the accuracy or completeness of the Confidential Information is being made by either party
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have any liability to the other party or to the other partys Representatives resulting from any
use of the Confidential Information except with respect to disclosure of such Confidential
Information in violation of this Agreement.
11. Miscellaneous.

(a) This Agreement constitutes the entire understanding between the parties and supersedes
any and all prior or contemporaneous understandings and agreements, whether oral or written,
between the parties, with respect to the subject matter hereof. This Agreement can only be
modified by a written amendment signed by the party against whom enforcement of such
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(b) The validity, construction and performance of this Agreement shall be governed and
construed in accordance with the laws of Europe applicable to contracts made and to be
wholly performed within such state, without giving effect to any conflict of lawsprovisions
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(c) Any failure by either party to enforce the other partys strict performance of any provision
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(d) Although the restrictions contained in this Agreement are considered by the parties to be
reasonable for the purpose of protecting the Confidential Information, if any such restriction
is found by a court of competent jurisdiction to be unenforceable, such provision will be
modified, rewritten or interpreted to include as much of its nature and scope as will render it
enforceable. If it cannot be so modified, rewritten or interpreted to be enforceable in any
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such provision was not included.
(e) Any notices or communications required or permitted to be given hereunder maybe
delivered by hand, deposited with a nationally recognized overnight carrier, electronic-mail,
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address of the other party first indicated above (or such other addressee as may be furnished
by a party in accordance with this paragraph). All such notices or communications shall be
deemed to have been given and received (a) in the case of personal delivery or electronicmail, on the date of such delivery, (b) in the case of delivery by a nationally recognized
overnight carrier, on the third business day following dispatch and (c) in the case of mailing,
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(f) This Agreement is personal in nature, and neither party may directly or indirectly assign or
transfer it by operation of law or otherwise without the prior written consent of the other
party, which consent will not be unreasonably withheld. All obligations contained in this
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respective successors, assigns and designees.
(g) The receipt of Confidential Information pursuant to this Agreement will not prevent or in
any way limit either party from: (i) developing, making or marketing products or services that
are or may be competitive with the products or services of the other; or (ii) providing products
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(h) Paragraph headings used in this Agreement are for reference only and shall not be used or
relied upon in the interpretation of this Agreement. IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the date first above written.
Disclosing Party

Receiving Party

By

By _____

Name: Cevdet Furkan Ozgunaydin

Name:

Title: Mr.

Title:

14

[Cevdet Furkan Ozgunaydin]

[Nathan Ferrete]
[Jeremy Renauding]
[Sarunas Neimontas]
[Camille de Cecchin]
[Laurane Heimferte]
[Rahul Signh]
[Tanribey Babayev]
[Celal Mehdiyev]
[Tural Qurbanov]
[Saskia Seimol Sebastian]
[Sajith Saji]

[Inter Stellar]
[K.Donelaico Gatve]

[Inter Stellar]

Business Plan
Prepared: [13/03/16]

Contents
Business Plan template.......................................................................................1
Business Plan Summary......................................................................................4

The
The
The
The

Business.................................................................................................4
Market....................................................................................................4
Future.....................................................................................................4
Finances..................................................................................................5

The Business.......................................................................................................5
Business details............................................................................................55
Organisation chart..........................................................................................5
Management & ownership...............................................................................6
Key personnel................................................................................................6
Products/services...........................................................................................8
Innovation.....................................................................................................8
Risk management...........................................................................................9
Legal considerations.......................................................................................9
Operations.....................................................................................................9
Sustainability plan........................................................................................11
The Market........................................................................................................12
The Future........................................................................................................17
Vision statement...........................................................................................17
Mission statement.........................................................................................17
Goals/objectives...........................................................................................17
Action plan..................................................................................................17
The Finances.....................................................................................................18
Supporting documentation................................................................................24

Business Plan Summary

The business plan is like all the other businesses, survive in the market, bring innovative and
socialy responsible solutions that the customer will be willing to pay. Our business model is
more innovative in the way of formality. All employees are free to share, edit, ask, do during
and after conception,production. This methodology helps us to see different perspectives and
the influence of culture. Our first product will be

The Business
Business name: INTER STELLAR
Business structure: Company
Business location: Kaunas Lithuania
Relevant owner experience: 2 years on Tourism and Hotel Management. 3 years on
Industrial Technology Management
Products/services: Electirc sockets with wireless technology.

The Future
Vision statement:
Reduce and eliminate household accidents caused by plugs, reduce the cost of electricity for
businesses or household, give freedom to user of controlling via wireless.
Goals/objectives:
Short term goals are ;

To achieve sales goals

To manufacture without problems
To manage logistics
To develop a core suppliers
Try to achieve breakeven with costs and sales
To get invesment

Long term goals are ;

To capture Eastern European market

To capture Western European market
To develop more products

The Business
Products/services: Inter Stellar group is focused on solving daily life problems related with
design of the current products. We are offering a variety of services with our semi
professional start up team. We belive the continues improvement of products and services
therefore we choose an innovative approach to solve the problems.

Organisation chart
Figure 1: Organizational Chart

CFO (Tural
Gurbanov)
Industri
al
Design

Finance

CEO
(Furkan
Ozgunaydi
n)

Manufa Lega
cturing
l

Logisti
cs

CMO (Jeremy
Reneudin)
Marketin
g

Sales

Purchasi
ng

Management & Ownership

Key personnel
]
Job Title

Name

Expected
staff
turnover

Chief Executive
Officer

Mr.Furkan
Ozgunaydin

Chief Marketing
Officer]

[Mr Jeremy
RenAudin]

[12-18
months]

[Chief Operating
Officer

[Mr Tural
Gurbanov]

[12-18
months]

Sales

[Ms Laurene
Heimferte]

[12-18
months]

Purchasing

[Mr.Nathan
Ferrete]

[12-18
months]

Marketing

Ms. Camille
Cecchin

[12-18
months]

Manufacturing

Ms. Saskia
Seimol
Sebastian and
Mr.Sajith Saji

[12-18
months]

Finance

Mr Sarunas
Neimontas

[12-18
months]

Design

Mr.Rahul
Singh

[12-18
months]

Legal

Mr.Celil
Mehdiyev

[12-18
months]

Logistics

Mr.Tanribey
Babayev

[12-18
months]

Products/services
Product/Service

Description

Smart Socket

Smart device connected to internet that

enables user to control the flow, see the
data, send notifications.

Market position: Competetive. As there are similar products, we expect to conquer market
with our mission. Like insurance companies selling insurances for imaginery situations, we
expect to fix the problem rather than sell money for money.
Unique selling position: Other may have focused on more complex problems we expect to
fix small problems which no one cared to change before
Value to customer: Neccesity product.
Growth potential: Our potential is directly related with new constructions, furnitre stores,
and people who wants to change their current sockets.

The Design.Rahul Singh

InnovationFurkan Ozgunaydin
Research & development (R&D)/innovation activities

In long term we will focus on big data analysis and A.I for our future products. The A.I will
help users to control the process much more easier. With the analysis of big data that we will
gather about consumptions such as what product takes most electric, the probability of
accidents and much more which will be available for A.I to manupilate that information and
enable it to take preventative actions if necesery.

Intellectual property strategy

Currently all the process is protected by NDA agreements. For someone to be able to see the
desings, details, processes or other things related with our Intellecutal property its a must to
sign NDA before anything which will enable us to control the security. We currently have
copyright of all the material in personal computers which will help us to prove in case of
hacking that we are the first prior art. Also we have published this information our our secret
group on facebook its a sign of publication and we will have the rights in case of plagmarism

or stealing. After the testing process we expect to make legal rights, such as patenting,
Trademarking. We are planning to make it in EPO which will be cheaper than ICP.

Risk management
Risk

Likelihood

Impact

Strategy

Legal Issues

Likely

Medium

Strategical patenting,
manipulating IP system
using utiliy or other ways
to secure our product.

Connectivity problems

Likely

High

We need to make signal

receiver outside of the
socket that will enable to
recive it better.

Financial Problems

Highly Likely

High

As there is no capital, it
will be hard to raise it.

Protoyping

Likely

Medium

More research and

expertise is needed for
beta and alpha working
protoypes.

Legal Issues and Financial Projections..Celil Mehdiyev

Initially, our pricing strategy will be based on penetration pricing in order to get
peoples attention, but the product will capture the initial market share. Thus, we can solve
this problem reducing the costs, and it will give advantage to start with a low price. Of course,
we have numerous costs which we will pay and take those expenses into consideration. The
costs of ready data are considered the first cost in financial projections. The cost of this
material per one product is around 1.15 euro. Secondly, we bring the available data to the
country with the help of Logistics Company. We have signed agreement with IBA Logistics
Group which provides transport services in Europe. We gained to have discount for a
partnership with the company, and all the costs equals to 12.000 euro in order to transport in
Lithuania. The third cost is connected with the custom services in Lithuania. As we mentioned
below, there are some costs to bring a product to Lithuania. The chart, which has been taken
from Financial and Legal Consulting of the EU countries, shows that taxes must be paid per
50 units of product. Since, we will produce plenty number of the product, we must pay 0.1
dollars for every 50 units.

Rates of custom
duties applied to
Limit on
Nos.

Name of commodity

Measurement
unit

Relative

commodities

price

can be

(in USD)

transported for
free

each unit of
measurement for
commodities
transported in
excess of
specified limits
(in US dollars,
relative)1

1.

Socket

1 unit

3,0

10 units

1,5

Since we have a contract with logistics firm that they can carry up to 50000 units in one
transport. Therefore, we agree to bring that amount of product in order to check it will work in
Lithuania or not. Totally, as we pay 0.1$ (0.09 euro) for every 50 units, we pay 100$ (93 euro)
for 50000 units. Costs are so low that it will increase our benefits. To calculate the ready data
at 1.15 euro, 1.15x50000 = 57500 euro, adding 93 euro as a tax, and also 12000 euro to
logistics, it will be equal to 69593 euro total. This means sales cost overall.
At last we deliver the new products to the megastores and simple shops at the price of
2.74 euro. Overall the sales will be 2.74x50000=137000.
Total sales

Total costs

Profits

137000 euro

69593 euro

67437 euro

If we make this transportation with this logistics 10 times a year, there will be 674370
euro profit for a year. It means that in one transportation, we get the benefits of 67437 euro
overall.
Net profit: 67437 euro*0.8(20% income tax) = 53950 euro in Lithuania for the first time.

Operations
MANUFATURING
Sebastian

Sajith Saji Nair & Saskia Saimol

RAWMATERIAL
The main thing that need to make electric plug socket with sensor are made of
Bakelite
Glass
Galvanized (nickel plating material and zinc plating material)
Plastic
Metal sheet
Chemicals
Cut on cut off sensor
Actuators
Pin(brass)
Fuse element(copper)
Fuse clip (copper)
Fuse ends (copper)
Cable wire (copper)
Cord grip (nylon)
Cable sheath (PVC)

 Wire sheath (PVC)

Pin sheath(PVC)
Fuse body(alumina)
Cord grip screws, major plug screw, pin screw(steel)
Packing materials.
The outer case of the plug is made of Bakelite; glass is used in the down part where the sensor
is integrated.
The Production Process of the Electrical products basically involves the process machining
(lathing and punching of metal parts, and spring making) galvanizing, molding of plastic
parts, assembling the plug part and the sensor part connecting it through a cable,
inspection/testing and packing
Two hole sockets: These electrical sockets carry two wires one of which is the live or hot
wire carrying alternating current from main AC supply to the appliances. The other wire is the
neutral wire that backs the current from the equipment to the mains supply. A socket includes
an insulating elastomeric sheet having a penetration hole, metal circuits formed on at least one
of the front and rear surfaces of the elastomeric sheet, and a through-hole having a metal film
formed on an inner wall of the penetration hole. The metal circuit on the front surface of the
elastomeric sheet is electrically connected to the metal circuit on the rear surface of the
elastomeric sheet via the through-hole. With such a configuration of the socket, it is possible
to provide a socket contact terminal and a semiconductor device having the same, which is
suitable for low-resistance, large-current, and high-speed configurations.

Sensor working

Stimulus
Medium (pressure
&temperature
variance)

Signals
Target handling
Resistance- voltage

(information)

Electricity cut on and cut off sensor are being used. provides real-time recognition of a
power source going off or coming on. Common use is to monitor the power supply
To implement process control, the transistor must collect data from and transmit
signals to the production process
Components required to implement the interface:

Sensors to measure continuous and discrete process variables

Actuators to drive continuous and discrete process parameters

Devices for ADC and DAC & I/O devices for discrete data (both can be done
through a controlling application installed in mobile or a personal remote)

The controlling of sensor:

Machinery and Equipment

The production equipment is:

Presses

Cleaning (scouring) equipment

Trimming machine

Furnace

Sheering equipment

Electric planting equipment

Milling machine

Injection molding machine

Lath (Bench)

Air compressor

Drills (Bench)

Grinders

racks and etc.

Other (vise, carriage storage boxes work tables)

Sustainability Plan.Furkan Ozgunaydin

Environmental/resource impacts
As we are the world dependant on electric we sometimes forget to plug of from it and it
causes waste for environment and for our money. Therefore with our innovative product we
expect to control it and give customer a freedom to plug of wirelessly. This technology if used
in all household will eliminate waste of electric and save billions of dollars. But we should
not forget our primary mission. It is to reduce accidents caused by electric. We know that
main reason of house fires are caused by electric or devices that left on electric. To solve this
we develop a technology that will enable user to control the flow, check the statistics of
consumption, autonomous close if neccesery sending notifications of devices.

Community impact & engagement

This will make a sense for public because we still have firefighter departments all around the
world. This means there is still a big problem. With effective advertisement and social media
campaign we expect to conquer the society and take attention on the problems with current
design of sockets. They are the primary reason for house fire and regarding with it death.
Risks/constraints

The main risk with device will be itself, which is connected to power source/cable therefore in
case of no electricity we need to find an alternative energy to enable socket for autonomous
control of the flow.
The other risk is related with connectivity of wireless. Our device can work withitself but It
will reduce the freedom of user. In some places on world there are still people without
internet. This can be main risk.

The MarketJeremy Renaudin

Macro environment market
It is essential to know the market in which we will evolve. We used the marketing tool
PESTN so as to analyze the macro environment.
Environments

Opportunities

Threats

Political

Subventions from the State for

product respectful of the environment.

Many norms concerning wall electric

plug.

Economical

Global habit from households to try

saving money.

Economic crisis: purchasing power of

households is low.

Social
Cultural

Well-developed internet network.

Old generations can be reluctant to

new technologies.

Technological Scientific

Investment
innovation.

Generations are more and more

connected.
for

research

and

Smartphones are really democratized.

Apparition and development of Smart
Houses.
Natural

In the current situation, there is a high

degree of interest for ecological
products.

In this table, we chose to cross the different environments with opportunities/threats. The
purpose is to bring out directly all opportunities and threats for each sector, and have a
specific analysis for each of them. We can observe that the market offers many opportunities
which bode well for the Smart Plug. Real threats are almost inexistent concerning the macro
environment.

Micro environment analysis

With the intention of doing a SWOT analysis to know the strengths, weaknesses,
opportunities and threats involved in our project, here is first a summary of the strengths and
weaknesses of our Smart Plug.
Strengths

Weaknesses

Innovating product

Could be difficult to insert in people daily

life

High quality

Expensive

Well-designed product

Competition : product already on the market

Product with many features

Difficulty to penetrate BtoC market

2 ways of distribution : BtoB and BtoC

Young teamworkers
More dedicate to new generation of
people,
Product allowing money savings
Internet or Bluetooth connection (people
have choice depending on which
connections they have or prefer)

Thanks to this analysis, we are able to use the SWOT matrix and cross the
strengths/weaknesses of our plug with the opportunities/threats of the market.

[Business Name] Business Plan [YEAR]

SWOT
analysis

Strengths
Innovating product
Well-designed product
Many features
Young teamworkers
Money savings
Internet or Bluetooth connection

Weaknesses
Difficult to insert in people daily life
Expensive
Strong competition
Hard penetration of C2C market

Page 33

Opportunities
Subventions from the State
Households try saving money
Well-developed internet network
Young connected generations
Investment for R&D
Smartphones democratization
Development of Smart Houses
Interest for ecological products
Strength-Opportunity strategies
Innovating to get subventions
Allowing people to save money
By using smartphone, a democratized
product
By proposing a low consumption
product

Weakness-Opportunity strategies
By reaching Smart House market

[Business Name] Business Plan [YEAR]

Your competitors
In order to identify our competitors, we decided at first to analyze the competitive
environment by using PORTER Five Forces Model.

Threats of new entrants: High

System easy to implement by

old plug manufacturers

Rivalry among existing

Bargaining power of
competitor:

Threats of substitute: High

suppliers: Medium-low

Many similar systems

proposed by

High
Many competitors

Many suppliers for

Bargaining power of buyers:

High

Strong competition,

According to the obvious analysis, we can observe that competition is intense. Smart
Plug market is already well-developed, and we have to take it into consideration if we want to
reach it. Therefore, the product and marketing strategies have to be adapted to be different
from our competitors. The next table will summarize what features our Smart Plug needs to
be competitive in the market.
Features already existing

Features for being different

Page 34

[Business Name] Business Plan [YEAR]

Being water resistant to reach external plug

Controlled by smartphones/tabs by using

market (competitors are not present in this

wifi/Bluetooth.

market)
Proposing a top of the range external design,

Turning on/off the plug.

if we decide to sell a complete plug and not

only the system inside
System integrated directly in an electric wall

Setting the time of operation.

plug. (Competitors propose only a separated

system to connect to a wall plug)

Creating groups of corresponding devices (for

instance a group for each room).
Including proximity detection.*
Measuring the consumption of each device
which is plugged.
Notificiations
*This feature allows the plug to be activated automatically when it is in the field of your
smartphone or tablet and get off when it is not inside anymore. Useful for lighting the house
for example
The fact of creating an electric wall plug makes us different from our competitors. This
feature really have to catch our attention. It will almost define all our strategy. Indeed, the
goal is to achieve two distribution strategies, in order to increase our market share and
compete with other companies in this market. Of course, we will work in BtoC by selling the
product individually to furniture retailers, for people who are renovating a room of their house
for example. But our main strategy has to be focused on BtoB. Sell the plug directly to
furniture shops, houses constructors and sellers and so on. For example, when a store like Ikea
will sell a complete set of furniture for a living room, this set of furniture will contain our
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[Business Name] Business Plan [YEAR]

plugs, and they will be directly installed to their customers. Another example, when
construction companies will build Smart Houses, they will directly implement our plugs.
This distribution strategy will allow to penetrate the market differently, and get around our
competitors by mitigating our weaknesses and exploit our own strengths.

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[Business Name] Business Plan [YEAR]

Product.(LAURENE HEIMFERTE)

It is a smart electrical wall plug that is controlled from a smartphone or tablet via Bluetooth /
Wi-Fi. The idea is to advantageously replace a programmer with the ability to turn on and off
at a set time, connected devices but also to measure their electricity consumption.
The installation is very easy. When launching the application, sensing the plug is launched.
After two to three seconds, it appears. Of course, the application is able to support multiple
plugs. That allows to create groups of corresponding devices, for example, every room in the
house. But it is also possible to control several plugs simultaneously. Each connected terminal
is then represented by its icon. To make sense of all the plugs, it is advisable to rename them.
Simply pressing a few seconds on the corresponding icon which gives access to the details of
the plug. Here you can change the name, associating rooms and even activate the proximity
detection. This last feature allows the plug to be activated automatically when it is in the field
of your smartphone or tablet and get off when it is not inside anymore. Useful for lighting the
house.

Price

Concerning the price and considering the analysis of costs of production we should take some
points to determine at what price we will sell our plugs.

First point : the average price of the normal plug : between 2 and 3 euros for a plug.

The cost of production : if we refer to the part of purchase and suppliers we can see

that this cost is between 3 and 4 euros.

Of course we have to increase this cost to cover all our spending.

For BtoC : between 25 and 30

For BtoB : more the firm will order less the price will be.

0 to 20 = 25 each
20 to 25 = 20 each
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[Business Name] Business Plan [YEAR]

Place

The first step is to choose some places to sell our products. Considering our targets
(principally BtoB but also BtoC) its important to make the plug available for all kind of
expected customers.

BtoB : First question : where the professional used to buy materials ? In speciality

store first so we decide to integrate our product in this kind of store (artisan, electrician).

BtoC : The customer target is in fact for the Do-It-Yourself users. Indeed, our plug will

be use by this kind of person who renovate a room or a house by themselves.

So, we should also sell our products in Hypermarket, in DIY shop like HOMEBASE.

Fort both targets we will have an internet website with a presentation of our product,

the promotion, how to install it, where you can buy it

Moreover, it will be possible to buy our plugs directly on the website for more convenience,
practicality and will be send by the post service.
Below, you can see the kind of website that we can do (of course its just a prototype).

Promotion

Commerciale representative

The commercial representative is a good way to manage the personal relationships with
customers. These people work for the company. In our case, their main aims are to promote
our product by approaching the potential customers in BtoB. Specifically, they will meet in
face to face the providers of house furniture in order to sell our product. They are playing the
main part in our product promotion.

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[Business Name] Business Plan [YEAR]

The advertising

The advertising is also a big part in our way communication. It uses to cause costumers
behaviour, create a notoriety and transfer information to get answers from the aim. To
promote our product, we should use magazine specialized in home furniture.
-

Trade fair

To participate at this kind of events might be really useful to create some new partnerships.
The main goal of this way to promote is not to sell but to increase our notoriety and to
encourage a first try of our plug. These trade fair could could give us the opportunity to meet
the market and the costumers

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Advertising & sales.Furkan Ozgunaydin

Advertising & promotional strategy
[What strategies do you have for promoting and advertising your products/services in the
next 12 months?]
Planned promotion
/advertising type

Expected business improvement

Social media campaign

It will effect millenials as well as

babyboomers. By employing targeted
market advertisement our product will
only hit the ones that are intrested.

Media Release

By using media release we expect to

make a wave and to question that, Are
we safe with the current design of our
sockets.

Sales & marketing objectives

Jeremy Reneudin a French Marketing Manager controls the team of marketers who have
expertise in marketing and sales area.Team goal is to bring French culture of marketing to
Lithuanian environment which will improve the process in here. By employing BtoC and
BtoB method we expect to sell both manufacturers and customers.

Unique selling position

The problem with current sockets are they are not hitting mass market, they are not trying to
convince people that their current socket can kill your child, burn your house, cause damage
to your computer. As we all know short circuits and not stable electric flows are causing
current sockets and the pluged devices serious damage. With our design we bring the
customer a freedom from stress that they forget something in the plug, a freedom of
controlling safe environment.

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[Business Name] Business Plan [YEAR]

Purchase and Suppliers .(NATHAN FERRETTE)

In order to manufacture the product at the best price, it is necessary to find the right
suppliers delivering good quality materials with advantageous price. Thats why the purchase
function is involved in the process.
At the beginning, we must define the needs of the firm. Which materials are needed
for the product? At which price ?
Then, in order to search for the suppliers, a sourcing is needed using macro-economics
sources, collect of informations and cartography. After that the firm is able to launch tenders
and analyze offers based on the criteria of delay, cost and quality.
After that the contract are made, please find in the the tab below the different suppliers
involved in the supply chain of Inter Stellar .

Material

Supplier

Unite Price ( )

Bagelite

Professional Plastics

7,44 euros ( sheet of

3mmX200mmX200mm)

Glass

Kosta

35 euros ( 1 square meter

sheet )

Galvanized

Ponzio

10,10 euros ( 1 X 2 feet sheet )

Plastic

Master Spektr

9,30 euros ( 1 square meter

sheet )

Metal

Metals Depot

9,43 euros ( 1X 2 feet sheet)

cut off cut on sensor

Gem Sensor

1,40 euros

actuator

Ali EXPRESS

0, 76 euros

PIn ( bras)

HK Hushun group

0,04 euros

Fuse

Changzhou Wisdom
Electronics

0,001 euros

Cable Wire

Home depot

0,55 euros ( 1 meter )

Cord Grip

Digikey

0,32 euros

Cable Sheath

Shanghai Lontom Electric

Material Co

0, 45 ( 1 meter )

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[Business Name] Business Plan [YEAR]

According to the prices proposed by our suppliers its now easier to determine the
production cost per unit. If we take in consideration the informations in the tab above , the
cost of production will be 3,72 euros. Its now necessary to determine the sale price by
applying a margin according to the strategy decided by the marketing team.
After few years of partnership with the suppliers, it will be possible to negotiate harder
the price and then reduce the production cost.
Of course, by following a strategy of reducing costs, its also necessary to limit the
level of the stock and like Toyota , try to apply a just-on-time delivery policy.

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[Business Name] Business Plan [YEAR]

Logistics..Tanribey Babayev
Interstellar will promote the new brand to all distributions in all world starting from
Lithuania. After every country department receives the new product, distribution in the
country started. In order to spread the new products to the all regions of countries, Interstellar
needs transport managers in addition to marketing specialists and managers. There is
distribution policy in the company that it starts with low cost districts-more labor districts.
After finding enough worker and channels, Interstellar prefers to spread to the regions.

=> Inbound Distribution:

Inbound logistics is the management of goods and materials which are arriving at your
business premises. It is the opposite of outbound logistics.Also Inbound Logistics is one of
the basic processes of logistics, concentrating on purchasing and arranging the inbound
movement of materials, parts, or finished inventory from suppliers to manufacturing or
assembly plants, warehouses, or retail stores.The inbound logistics that are necessary for our
company's survival was transported into the company warehouse through the use of trucks.
Inbound logistics refers to the transport, storage and delivery of goods coming into a business.
Which material are include for formation to our product?
*Plastic
*Aluminum
*Glass
- Plastic: The Company "Master Spektr" which is located in Latvia, Riga is producing low
grade and sustainable plastic goods. Its more suitable and very cheap way to bring this goods
for our manufacture through truck transportation.
- Aluminum: To get Aluminum to our manufacture its better way to importing from Poland
from "Ponzio" Company which is located in Slupno near Warsaw city. Also its more easy and
cheaper way to import this goods from Poland which is nearest to Lithuania.

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[Business Name] Business Plan [YEAR]

-Glass: For that goods to importing to Lithuania best way to get from Sweden from "Kosta"
company which is more famous brand in the world with their products.
Beside "Kosta" Company is located more cities in Sweden so we can get our products from
which is the more near city and useful way to obtain it by Cargo shipping.

=> Outbound Distribution

The movement of material associated with storing, transporting, and distributing goods to its
customers.

Channels: Interstellar needs to find reliable intermediaries to distribute the new

products. In other option, Interstellar can open the transport department, which will provide
the company with delivery system to the stores. New vacancies are announced and the
company provides transport managers, drivers, and cars. It will be the best choice for making
new product.

Locations: As we know, the main location of Interstellar is in Lithuania. And the

central department will provide every country with goods like power socket. Then the process
started inside the country. The company agrees with mega stores to sell its new product, and
some retailers start to distribute the product to all country. Choosing the small shops is the
responsibility of retailers and transport department. The central location of company in
Lithuania is in Vilnius, it will expand to other regions during the next years.

Transportation: Delivering in a time is the most important factor in transportation in

markets. As Interstellar is situated in Lithuania; the air transportation is the best way of
delivery system. In spite of the fact that it will cost a bit more, it is the safe and speedy way of
transportation. By selecting the air transportation Interstellar reduces the inventory levels and
packaging costs.

Logistics: As we know, logistics is one of the important branches in supply chain

management. It should be as cheap as possible that the transportation reduces the distribution
costs, and improves customer service. Interstellar looks through all the details of physical
flow of the product in order to satisfy all the customers requirements. The company

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[Business Name] Business Plan [YEAR]

professionally fulfills inventories, transportation and other logistic services in time in attempt
to meet customers needs and wants.

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[Business Name] Business Plan [YEAR]

The Finances.(SARUNAS NEIMONTAS)

As a new player in the market, Inter Stellar company must assure competitive production
costs. In previous chapter Legal Issues and Financial Projections it is stated that our expected
price of new and innovative product will be - 2.74 eur each and our target production costs
(excluding logistic) will be about 1.15 eur per unit.
Also our goal is to reach productivity of ten fully loaded trucks of our product within 12
months . We have a contract with logistics firm and it is confirmed that they will carry up to
50.000 units in one transport truck.

Projected production capacity of first production line:

units per truck

units per year
units per month
units per day
units per hour
units per minute

22 days month
8h per day

units
50,000
500,000
41,667
1,894
236.74
3.95

turnover, eur
137,000
1,370,000
114,167
5,189
648.67
10.81

From this table

we can see that to start supply other departments with steady and secure amount of product,
we need produce about 1.900 units per day on average. Production site must work in one 8
hours shift, 5 days per week, 12 month per year.
One electric socket production line of medium-low productivity capacity, serviced by 4-5
operators, technical support and supervised by one team leader, is enough to ensure smooth
integration in to the market. All needed equipment for this line is specified and described in
chapter Machinery and Equipment. By current market prices installation of such production
line should cost 40.000 100.000 eur, depends on manufactoring companies of main
equipment.

All the target wage costs per month of first production line:

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[Business Name] Business Plan [YEAR]

operators
contractor
team leader
technical support

salary (one
month)
taxes
4
780
1
450
1
965
1
1,050

total cost
(one month)
566.32
1,346.32
294.06
744.06
700.63
1,665.63
762.35
1,812.35
9,607.32

It

is

clear that our company needs:

Four Equipment Operators for qualified work on production line;

One Contractor for non-qualified work from labor hire company;

One Team Leader with expierence in production of electric parts, high team building
skills and high LEAN knowledge.

One Technical Support engineer with experience in production of electric parts, and
high skills in maintenance of all the machinery and equipment in site.

All the production costs of first production line (including logistis) for one month after
production starts and reaches expected level:

cost per unit

units produced
transport
wage
raw materials
other production costs
equipment maintenance
production administrating costs
energy consumption
total

0.240
0.231
0.789
0.042
0.020
0.028
0.041
1.39

1 month, eur
41,667
10,000.00
9,607.32
32,859.35
1,750.00
833.33
1,158.33
1,708.33
57,916.67

Part, %
17.27
16.59
56.74
3.02
1.44
2.00
2.95
100.00 It is

clear that the main production costs will be: raw materials (56.7% of whole unit's production
costs), production transportation (17.3%) and wages (16.6% ). It is most sensitive parts in
whole structure, and in the future Inter Stellar company should be focus on improving
purchasing of raw materials, finding new transportation possibilities and new partners and
improving productivity. All other costs will be about 9 percents of whole unit's production
costs.
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[Business Name] Business Plan [YEAR]

Projected production capacity and all the production (including logistis) costs of first
production line for first 5 years:

units produced
transport
wage
raw materials
other production costs
equipment maintenance
production administrating costs
energy consumption
total

2017
500,000
120,000
115,288
394,312
21,000
10,000
13,900
20,500
695,000

2018
525,000
117,000
115,288
376,568
21,420
10,200
14,178
20,910
675,564

2019
551,250
114,075
115,288
359,623
21,848
10,404
14,462
21,328
657,028

2020
578,813
111,223
115,288
343,440
22,285
10,612
14,751
21,755
639,354

2021
607,753
108,443
115,288
327,985
22,731
10,824
15,046
22,190
622,506

index of target
grow
5.00
-2.50
0.00
-4.50
2.00
2.00
2.00
2.00

After the first year company will focus on increasing of productivity level and decreasing
production and logistics costs:

Productivity will be increase by 5 percents each year by installation and

implantation of LEAN tools in Inter Stellar production site (5S; SMED; Process
Confirmation; Standard Work and etc) and contain continuous self-improvement
philosophy;

Transportation costs will be reduced by 2.5 percent each year by finding new
transportation possibilities, new partners and by signing long-term contracts;

Wage costs should stay on the same level, because it is possible in the future to
waive contractor, but split his wage for other employees to maintain high staff
motivation;

Raw materials costs will be reduced by 4.5 percent each year by improving
purchasing of raw materials on signing long-term contracts, finding new partners
and etc;

All other costs should increase by 2 percents each year considering current
inflation rate.

Please pay attention that all the calculations in this chapter are done for one
production line only to show the structure of production costs and to reflect
possibilities of productivity and processes in the Company. First production line (in
conditions shown on this chapter) will be assembled to assure smooth entrance of
innovative and ground-braking product into the market.

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[Business Name] Business Plan [YEAR]

It is clear that Inter Stellar company is right now and will be ready to respond to any
market demand.

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The Future..Furkan Ozgunaydin

Vision statement
In the next 10 years we expect to conquer all European market and move our headquarters to
Northern America to Silicon Valley. To achieve that we need serious series A,B,C funding
from European venture capitalists.. Then to develop better and more innovative products
which we can mass market. To go public in 15 years. To develop and use A.I which customer
can speak and control their devices for our future and current products. To reduce and
eliminate the accidents caused by electric sockets.

Mission statement
To achieve the visions we need to increase the sales, reduce the cost of manufacturing, try to
create better composites that will do the job of beuty and elegance, develop our IT team that
will plant the seed for our future of A.I and software updates. To hit northern America we
must conquer and develop stable business in European enviorment. We can follow Ikea model
to reach there.

Goals/objectives
Short term goals are ;

To achieve sales goals

To manufacture without problems
To manage logistics
To develop a core suppliers
Try to achieve breakeven with costs and sales
To get invesment

Long term goals are ;

To capture Eastern European market

To capture Western European market
To develop more products

Action plan
Please note: This table does not include sustainability milestones as they are listed in the
sustainability section above.
Milestone

Date of
expected
completion

Person
responsible

Make beta prototype of software and socket

10 weeks

[Manufacturing,
Desing,

Extensive marketing, social media and

advertisements.

14 weeks

[Marketing and
Finance]

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[Business Name] Business Plan [YEAR]

Milestone

Date of
expected
completion

Investment for mass production.

20 weeks

Business deals with local furniture companies and

construction companies

30 weeks

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Person
responsible

Ceo,
Manufacturing,
Logistics