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PeopleSmart, LLCCapstone 600 Final Project

Professor Bruce Razban Professor Louise

PasternackKeller Graduate School of

ManagementDate: 04/13/2015

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AGENDA• Vision• Executive Summary• Business Model• Monetization • Break-Even• SWOT• Financial Analysis and Plan• Marketing/Sales• Risk Mitigation • HR Plan• Questions

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PeopleSmart’s Vision

Affordable smartphone for low-income people in Mumbai, India using microloans.

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Executive Summary

PeopleSmart will serve both rural and urban customers across Mumbai, where mobile telephony is a major driver of socioeconomic development. The company envisions providing the power of digital communication, enabling everyone to improve their lives, and help secure a better future for all.

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Organizational Chart

CFOMyra Zofen

yi

Financial Planning

CTOSidra Musht

aq

Assessin

g Technologies

HRDAizle

Alejandrino

Staffing

COOKevin Librod

o

Day-to-Day Operations

CIOSuma

n Prasa

d

Data Integration

MDTimot

hy Haney

Target

markets

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PS Business Model

KEY PARTNERS• Manufacturers

(Huawei)

• Service Providers (Airtel)

• Micro-lending bank (Grameen)

KEY ACTIVITIES• Local Design

• Software Development

• Quality Control

REVENUE

• Sale of Products

• Lease

• Rental

• Microloans*

*Microloans are relatively small loans to people or businesses with poor credit (Kabbage, 2015).

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Features of Smartphone• 4GB Memory• 5MP Front Camera• microSD card slot, up to 32GB • Skype built-in • 8 hours of removable/replaceable

battery backup• Display Size 3.5 inches• Bluetooth enabled• Processor 1.3GHz, Dual Core

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Monetization/Break-Even• Manufacturing cost of

smartphone will be $47.50 (Huawei, 2014).

• Profit margin will be 5% at a retail price of $50 ($3,401 INR).

• 3% Microloans available• Leases available at $4.99 per

month for 24 months with renew, return, or purchase options.

• Need to sell an average of 100,000 smartphones during first three years to break even

• Post profit in year 3--$50,000

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Target Market: Mumbai

• Household income $1500/year and below.

• College and university

• Seasonal tourists

Open Signal.com

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Household Budget in Mumbai

Source: BMI Q1 2015 Business Monitor International

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Size of Market: Mumbai

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Size of Market: Mumbai

IDC 2015, Market Share Data in Mumbai

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SWOT AnalysisSTRENGTHS

• Complete Hardware/Software

• User-friendly

• Future Expandability

WEAKNESSES

• Employee capabilities

• Local regulation

• Too low profit margin

OPPORTUNITIES

• Huge Market Segment

• Prepaid Breakouts

• City vs. Country

THREATS

• Low Income

• Motorola Economic Version

• Price Wars

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Projected Profit and Loss

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Finance

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Operational Plan

• First Year – Develop prototype design of smart phone

• Second Year – Test market, get customer feedback and plan for production

• Third Year – Analyze market data and start production

• Fourth Year – Re-evaluate production

• Fifth Year – Improve production

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Marketing and Advertisements

• Promote new economic smartphone at a very affordable price of $50 in Mumbai through online, print and TV media

• Differentiate new smartphone against other smartphones

• Massive TV campaign planned before product launch

• Regular advertising to maintain local public awareness

• Sponsor local events/games

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Risk Mitigation

Risks Risk Mitigation

• Performance of local distributors, carriers, and other resellers.

• Create performance metrics and analyze distributor performance quarterly.

• Ability to obtain components in a timely manner.

• Implement “Just in Time” methodology.

• Dependence on India’s economic growth.

• Implement interest-free loans or lease methods.

• Product acceptance. • More social advertising and promotions.

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HR Budget Plan

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3-Year Function and Staffing Plan

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Project Schedule

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Next Steps

Investment

• We would like some seed money at 5%.

Exit Strategy

• PeopleSmart, LLC would like to go public and sell stocks

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References

Business Monitor International. (2015). Industry Research & Data | Emerging Markets Analysis | BMI Research. Retrieved from http://www.businessmonitor.com

Huawei. (2014). Manufacturing — Huawei Solutions. Retrieved from http://e.huawei.com/en/solutions/industries/manufacturing

IDC. (2014).The premier global market intelligence firm. Retrieved from http://www.idc.com

Kabbage. (2015). What Are Micro Loans? Retrieved from https://www.kabbage.com/blog/what-are-micro-loans/

Open Signal. (2015). Retrieved from http://opensignal.com/coverage-maps/India/

Questions