Footy tribe columbia univ jan 2014

FOOTY TRIBE

Joe Brown, Kola Adeyemi, Nicholas Marinakis, Gustavo Pinto Guimaraes, Alex Peters

“We strive to better inform fans of the beautiful game and connect them with each other and their club of choice.”

Total # Interviews: 84 Total # Yesterday: 7Total # Online: 21

Day 5 1/17/201

4

Team 23

THE TEAM

Joe Brown, CBS ‘14(S&T; Entrepreneurship)

Alex Peters, CU ‘14(Computer Eng; Physics)

Nick Marinakis, CU IEOR (MS&E) ‘14 (Data Analyst; Backend Engineering)

Gustavo Pinto Guimaraes, CBS ‘15(Strategy Consulting in Brazil)

Kola Adeyemi, CBS ‘14(Accounting; Banking)

Key PartnersWho are our key partners/ suppliers

Key ActivitiesWhich key activities does the biz model require

Value PropositionWhat value do we deliver to the customer

Customer RelationshipsWhat type of relationship does each segment require of us

Customer SegmentsFor whom are we creating value

ChannelsThrough which channel does each segment want to be reached

Revenue StreamsHow much is each segment willing to pay and how would they like to pay us this amount

Cost StructureWhat are our cost drivers

Key ResourcesWhich key resources does the biz model require

B2C: Niche market of footy fans in U.S. & select emerging markets

B2B: Top 32 club teams in Deloitte FML

B2B: 32 international teams in World Cup 2014

B2B: Local bars/pubs

Retailers and advertisers interested in footy fan demographic

B2C: Footy fans (App stores, Facebook, TV)

B2B: Footy clubs & international teams (sales force)

B2B: Local bars/pubs, retailers/advertisers (sales force)

B2C: Free app on mobile platform

B2C: Curated newsfeed on club & international team of choice

B2C: Platform to connect with fellow footy fans locally and on travels

B2B: Target niche of local footy fans for clubs and retailers interested in demographic

B2B: Increased exposure of footy news content and blog providers

B2C: Footy fans (self-service, communities)

B2B: Footy clubs & international teams (co-creation, personal assistance)

Local bars/pubs, retailers/advertisers (co-creation, personal assistance)

Based on our surveys and research:B2C: one-time purchase in the range of $1-$5.99 (26%); $0.99 monthly (17%) and $10 annually (17%) for in-app premium content.B2B: Ads, between $0.5 to $6.0 per thousand impressions; pay to rent our email database; pay sales commissions on merchandise sales; pay for specialized marketing pushes (bars/pubs/retailers)

Curate club-specific footy news for user

Server refreshes newsfeeds every 15m

Geo-locating functionality

Algorithm for curating club-specific news

Reliable cloud server

Back-end programmers & software engineers

Payment processor

News outlets Cloud servers Local bars/pubs Footy clubs from

Deloitte FML

Software development and maintenance costs, # of times a user view articles per day, cost per articles sourced (if any), sales commissions, staff salaries, and typical other operating costs.

On Day 1: Feedback: Clean Up

Segments

Day 1

Day 1: Customer discovery started We went to the Blind Pig, Arsenal’s supporters’ NYC headquarters... Born in London

Resides in NYC for studyingDie-hard Arsenal fanAccess news aggregator websites and

blogs dailyWatch games in bars to be close to other

fans (exchange contacts after games end)

Would like to further connect with fans in other places (for watch and play football)

...Where we met with Mohammed Omer, our customer archetype, among other passionate footy fans of the Arsenal breed...

News feed Dynamic calendar Social network

...And learned about the value of our features for consumers (and that they don’t want to let go of their beer)

News Feed = Nice to Have

Calendar & Community = A must










18 – 50yo Smartphone user Social media user Avid footy fan Geographically

distant from favorite club







Payment processor

News outlets Cloud servers Local bars/pubs Footy clubs from

Deloitte FML

Facebook targeted marketing & third party app ads Software development and maintenance costs AWS provided credits up to $1000 over next year Salesforce commissions & staff salaries

Top 32 footy club by revs/digital fans

32 international teams in WC 2014

Retailers & advertisers interested in footy fan demographic

B2C B2B

Get: Targeted FB mktng/WOM by early evangelists/App Store & Google Play

Keep: Dynamic content/Network effects of local footy community

Grow: upgraded features

Local bars that televise footy matches

Get: Salesforce Keep: High-

frequency footy crowd

Grow: Partner w/bar to create official venue for their footy fans

Get: Offering access to critical mass of their preferred demographic

Keep: High volume of customer impressions/clicks

Grow: Upsell access to more detailed user information

B2B

App Store & Google Play

Direct Sales

Direct Sales

One-stop shop for updates on footy club of choice and to connect with local footy fans

Diversify and increase traffic

Connect with target market niche

Freemium model

(in-app upgrades)

Single % of bar tab

Native/Banner Ads ($0.5 - $6.0 CPM)

Single % of commercial sales through Footy Tribe app

On Day 2: Clarified our SegmentsDe-emphasized News

Day 2

Day 2: First setbacks occurred

... At least until we have hundreds of thousands of users and could generate significant impressions and click through rates

We talked to experts and figured out we couldn’t count on advertising and retailers’ money...

Unless we can bring them more affliates, they would have no interest and our archetype end user already is an affiliate of the club

Conversation with clubs didn’t well too as we are very small to have their support

WE CANNOT COUNT ON ADS

CLUBS DON’T GIVE A SH…










18 – 50yo Smartphone user Social media user Avid footy fan Geographically

distant from favorite club







Payment processor


B2C B2B



Grow: Upgraded features

Local bars that televise footy matches and have less traffic during non-prime sports (football, basketball, etc.) match times.

Get: Salesforce Keep: High-

frequency footy crowd

Grow: Partner w/bar to attract and retain footy fan traffic.


Direct Sales

Allow footy fans to connect anytime, anywhere with each other and find venues to watch matches.

Have all the info needed to follow your team at your fingertips.

Diversify and increase traffic to their establishments.

Free Trial for 1mo OR limited use. 1.99/qtr for premium content.

Subscription/Flat Fee for sponsorship in our app renegotiated quarterly.

So on Day 3: Focus on Fans & BarsRemove Clubs & Ads

Day 3

Channel, “Get” Strategy and Revenue Model

Day 3: Bar hopping day

We went bar hopping talking to owners and managers... • Local bar

• Underserved capacity during usual European football matches times (weekends late mornings and weekdays early afternoon)

• Need for higher awareness and more traffic

• Preferably, located in a region with many foreigns and tourists

... And understood our archetype bar (Havana Central)

News feed: least differentiating feature of the app, kept to increase impressions and bring users back daily

“Passing”: allows users to exchange contact without spilling their beer

Also, through feedbacks and customer discovery, increase the focus on social connections

Big issue: how to make end users consume in the bar, as games are played in weekends mornings on European match times?

Bars concern = drink sales

Added “Passing Feature”










18 – 50yo Smartphone user Social media user Avid footy fan Geographically distant

from favorite club


B2C B2B



Grow: Upgraded feature


Get: Salesforce Keep: High-frequency

footy crowd Grow: Partner w/bar to

attract and retain footy fan traffic.


Direct Sales




Free Trial for 1mo OR limited use. 1.99/qtr for premium content.

Subscription/Flat Fee for sponsorship in our app renegotiated quarterly.

Partnering with bars, getting fans to bars and driving bar sales

Day 4

No big change

Day 4: Online landing page & Preorders

Day 4/5: Online A/B Testing

“A” Page emphasized community; “B” page emphasized other features

105 unique visitors to A page, with a higher conversion 50% to 43%

Confirms our hypothesis that community building features are the most important.










18 – 50yo Smartphone user Social media user Avid footy fan Geographically distant

from favorite club


Connecting Footy Fans – “Passing”

Dynamic fixture calendars


Engineering talent Payment processor Commission-based

sales team

Cloud servers Local bars/pubs Local soccer pitches


B2C B2B



Grow: Upgraded feature


Get: Salesforce Keep: High-frequency

footy crowd Grow: Partner w/bar to

attract and retain footy fan traffic.


Direct Sales




Consumers will pay $4.99 for the complete season calendar (or $3.99 for the national competitions and $1.99 for internationals)

% of bar tap (experiment to be conducted)

Partnering with bars, getting fans to bars and driving bar sales

Day 5

Metrics (Lifestyle versus $100M)

Revenues 2014 2015 2016 2017 2018

Estimated Users 369,550 1,678,047 3,492,664 5,717,848 8,225,242 10% Purchase 36,955 167,805 349,266 571,785 822,524 Calendars - $4.99 184,406$ 837,346$ 1,742,839$ 2,853,206$ 4,104,396$

Bars 25 30 40 50 60 Fans per match 20 20 20 20 20 Matches a week 2 2 2 2 2 Average drinks 2 2 2 2 2 Average $ / drink 5$ 5$ 5$ 5$ 5$ Footy Tribe cut 5% 5% 5% 5% 5%Bar Revenue 500$ 600$ 800$ 1,000$ 1,200$

184,906$ 837,946$ 1,743,639$ 2,854,206$ 4,105,596$

In-App Sales

Bars only NYC

Total Revenues

Local League Calendar Only (per season i.e. yearly) 3.99$ Low End High EndChampions League Calendar Only (per season i.e. yearly) 1.99$ Average cost of a drink at a bar with specials 5.00$ 8.00$ Both Calendars 4.99$ Expected Number of drinks consumed per user per match 2

Bar tab % 5%Revenue Range 1.99$ 4.99$ # of Years Retained in App 5 Revenue Range 0.50$ 0.80$

From To Expected number of games before churn 5LTV for a paying B2C user 9.95$ 24.95$ LTV for a paying B2B user 2.50$ 4.00$

B2C: In-App Purchases per User B2B: Bar Tabs Per UserLife-Time Value

Assuming a 2% click through rate 18,477,507 2% of 18.4 million gives us 369.5K users 369,550 We pay per 1000 impressions 18,478 We pay $.75 per 1000 impressions 13,858$ Number of in-app purchasers year 1 36,955 Our cost per buying user = 13.8K/36.95 0.04$

Customer Acquisition Cost

(1) Lifestyle Business(2) Focus on B2C

Channel First

Next Steps

Carry on with the app Get 50 fans to a bar for a match within 2

weeks Do some more customer discovery at

match Build agile prototype

Timeline

Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Launch Operationa

l AppCustomer Discovery

Beta Testing

Timeline for Next Steps

Technology

Footy tribe columbia univ jan 2014