MGT1022- LEAN STARTUP

MANAGEMENT

PROJECT REVIEW 3
PROJECT: SKYNET SMART GADGETS (SHA SMART HELMETS)

TEAM MEMBERS
• VARSHAA.U.P (17MIS0142)
• MADHUMITHA.B (17MIS0172)
• JAWAHAR.V (17MIS0205)
• SURIYA.D.U (17MIS0435)
• DEIVEEGARAAMAN.V (17MIS0477)
• KEERTHIVASAN.S(17MIS0515)
• SHANKARA NARAYANAN.R.V (18MIS0022)
• PUNNA SRAVANI (18MIS0038)
• MALEPATI PRATHYUSHA (18MIS0043)
• SUJITHROSHAN.S (18MIS0062)
 Indicators

1. Marketing Plan
2. Finance Plan
3. Investment Plan – Angel investor / VC / Bank loans
4. Operational Plan – P&L / Cash Flows
5. Performance Measure
1.Marketing Plan
Marketing Plan components

Marketing Objective

Target Customer definition

Unique Selling Proposition

Pricing

Distribution and Availability

Promotions
 Marketing Plan

Growing Consciousness Towards Road Safety, A Big Boost For Indian Helmet Industry

• While the Indian two-wheeler industry is currently going through a prolonged phase
of slowdown, one of the allied industries -- the helmet market remains unaffected
and continues to flourish with an annual growth rate of 20%.
 Market size definition

1. Market size is estimated at 22mn helmets

2. Growth rate of 20% CAGR
3. Market size in the next 5 years = 44mn helmets

Details 2019 2020 2021 2022 2023

Volume 22Mn 28Mn 35Mn 39Mn 44Mn
Value Rs Cr 1320crs 1500cr 1800cr 2000cr 2400cr
 Marketing Objective

1. Achieve a market share of 5% of the 2 wheeler Helmet

market by Year 2 end.
2. Achieve a turnover of Rs 75 crores
3. Convert 5% of the 22mn helmets to Skynet
4. To be available in 50% of South India Helmet shops and
accessories shops
5. To lead the online channel sales of helmets
 Target Customer definition

• Demographic profile
• Age – 18 to 45
• Gender – Male and Female
• SEC – SEC A1, A2 and B1
• Urban population -- Living in Metro, Mini Metro, Class 1 towns and Class 2 towns

• Psycographic profile
• Bike users / Riders
• Heavy travellers on bike
• Tech savy and Affluent
 Unique Selling Proposition definition

1. Safety while riding – 1. Superior Safety

Stated Need What What we 2. Technology integrated
Consumer are Interface
needs ? offering 3. GPS support
4. Roadside assistance
5. Blue tooth connectivity for
answering calls
What 6. Value for Money
competition
1. Superior structure is offering
2. Vibrant colours
3. Good fit
4. Light weight
5. Economical
 USP and Value addition
Additional Features
1.Safety with impact resistance
Basic Need
2. Technical interface for on
1.Safety while screen display
driving / Riding 3. Bluetooth connectivity for
checking and receiving calls
2.Light weight
4.Automatic Roadside
3. Attractive design assistance enablement
Customer Delight
1. Light weight superior
material
2. Connected always
3. Assistance for emergency
4.Nearest mechanic and
puncture shop list at touch
5. Customizable colours
Product
 Pricing
Details Amount per helmet
MRP per SHA Rs 2000
Technology product
Helmet shop margin and Price Rs 1600
Similar to telecom pricing Dealer margin and price Rs 1400
Customer buys the helmet GST @ 10% Rs 140
Revenue to Skynet per helmet Rs 1360
Customer then recharges for GPS,
Cost of helmet Rs 600
Hospital Assistance, Ambulance Cost of Warehouse Rs 100
assistance and other features using Cost of Transport from factory to Rs 150
a prepaid concept dealer
Total Cost Rs 850
Gross Margin for Skynet Rs 1360 – Rs 800
Per helmet gross margin for Skynet Rs 560
 Distribution and Sales

Distribution Reaching Pricing

customers

• Dealers in • Helmet shops • Close to

every city • 2 Wheeler competition
showrooms • Margin and
• Spare part profits
shops • Affordable
• Recharge
plan
 Break geographical barrier through Online sales

1. Build a customer Portal for Skynet

2. Lead customers to Portal using SEO and Page visits
3. Offer discounts on Portal
4. Deliver to home using Ekart and Delhivery
5. QR code based warranty card activation
6. GPS enabled usage map to see UIO – To help testimonials
2.Finance Plan
Finance Plan

1. Finance plan is a plan of the finance required and when the

same is required.
2. It takes into account all the pre production, production and
sales related fund requirement.
3. The Finance plan tell us how much finance is required from
start till the first two years.
Details M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total Y1 Y2 Y3
All India Market size 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 24000000 0 0
South Market Size 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 7200000
TN Market Size 210000 210000 210000 210000 210000 210000 210000 210000 210000 210000 210000 210000 2520000
Sal es forecast Vol 0 0 0 0 0 1000 1500 3000 3500 5000 7500 7500 29000 45000 100000
Sal es Value per helmet 1400 1400 1400 1400 1400 1400 1400 1400 1600
Sal es Revenue 1400000 2100000 4200000 4900000 7000000 10500000 10500000 40600000 63000000 160000000
Variable Cost
Helmet production cost 600 600 600 600 600 600 600 600 700
Logi stics cost 100 100 100 100 100 100 100 100 100
Margin Generated per helmet 700 700 700 700 700 700 700 700 800
Margin Geerated Rs 700000 1050000 2100000 2450000 3500000 5250000 5250000 20300000 31500000 80000000
Fixed cost 3350000 2350000 2350000 2350000 2350000 2350000 2550000 2550000 2550000 2650000 2650000 2650000 30700000 33770000 37147000
Advance for offi ce 1000000 0 0 0 0 0 0 0 0 0 0 1000000
Rent for offi ce 150000 150000 150000 150000 150000 150000 300000 300000 300000 300000 300000 300000 2700000
Manpower cost
Developers 250000 250000 250000 250000 250000 250000 300000 300000 300000 400000 400000 400000 3600000
Hardware designers 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 1800000
HR person 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 1200000
IT Infrastructure 1200000 1200000 1200000 1200000 1200000 1200000 1200000 1200000 1200000 1200000 1200000 1200000 14400000 14400000 14400000
Licences for SAAS etc 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000 6000000 6000000 6000000

Sal es and Marketing Expense 3500000 3500000 10000000 7500000 5500000 5500000 5500000 41000000 60000000 80000000

TOTAL FUND required -3350000 -2350000 -2350000 -2350000 -2350000 -5150000 -5000000 -10450000 -7600000 -4650000 -2900000 -2900000 -51400000 -62270000 -37147000

1. Year one total fund requirement will be Rs 3 crores

2. Year 2 fund requirement will be about 3 crores
3. Year 3 fund requirement is 4 crores
4. Year 4 – Venture breaks even
3.Investment Plan
 Investment Plan
Details Total Y1 Y2 Y3 Y4 Y5

1. Own funds of founders All India Market size

South Market Size
24000000
7200000
0 0 0 0

1. Each founding member invests Rs 2 lakhs of own TN Market Size 2520000

fund Sales forecast Vol

Sales Value per helmet
29000 45000
1400
100000
1600
200000
1600
300000
1800
Sales Revenue 40600000 63000000 160000000 320000000 540000000
Variable Cost

2. Angel Investor
Helmet production cost 600 585 550 550
Logistics cost 100 100 100 100
1. Two angel investors have evinced keen interest on Margin Generated per helmet 700 915 950 1150

the project.
Margin Geerated Rs 20300000 31500000 91500000 190000000 345000000
Fixed cost 30700000 33770000 37147000 40861700 44947870
2. They have agreed to fund the first 3 years Fixed Advance for offi ce 1000000

Cost and Marketing Expenses Rent for offi ce

Manpower cost
2700000

3. They will stay vested for 5 year period – with a Developers 3600000
30% stake in business Hardware designers
HR person
1800000
1200000
4. At the end of 5 years, the valuation of the business IT Infrastructure 14400000
is expected to be at 250 crores ( 5X valuation ) Licences for SAAS etc 6000000

5. At 30% stake , investor will walk out with almost 75 Sales and Marketing Expense 41000000 60000000 80000000 120000000 180000000
crores
TOTAL FUND required -51400000 -62270000 -25647000
6. For the investor ..investment has tripled in 5 years
Net Margin Generated -51400000 -62270000 -25647000 29138300 120052130
4.Operational Plan – P&L and Cash Flows
Details M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total Y1 Y2 Y3 Y4 Y5
All India Market size 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 24000000 0 0 0 0
South Market Size 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 7200000
TN Market Size 210000 210000 210000 210000 210000 210000 210000 210000 210000 210000 210000 210000 2520000
Sales forecast Vol 0 0 0 0 0 1000 1500 3000 3500 5000 7500 7500 29000 45000 100000 200000 300000
Sales Value per helmet 1400 1400 1400 1400 1400 1400 1400 1400 1600 1600 1800
Sales Revenue 1400000 2100000 4200000 4900000 7000000 10500000 10500000 40600000 63000000 160000000 320000000 540000000
Variable Cost
Helmet production cost 600 600 600 600 600 600 600 600 585 550 550
Logistics cost 100 100 100 100 100 100 100 100 100 100 100
Margin Generated per helmet 700 700 700 700 700 700 700 700 915 950 1150
Margin Geerated Rs 700000 1050000 2100000 2450000 3500000 5250000 5250000 20300000 31500000 91500000 190000000 345000000
Fixed cost 3350000 2350000 2350000 2350000 2350000 2350000 2550000 2550000 2550000 2650000 2650000 2650000 30700000 33770000 37147000 40861700 44947870
Advance for offi ce 1000000 0 0 0 0 0 0 0 0 0 0 1000000
Rent for office 150000 150000 150000 150000 150000 150000 300000 300000 300000 300000 300000 300000 2700000
Manpower cost
Developers 250000 250000 250000 250000 250000 250000 300000 300000 300000 400000 400000 400000 3600000
Hardware designers 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 1800000
HR person 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 1200000
IT Infrastructure 1200000 1200000 1200000 1200000 1200000 1200000 1200000 1200000 1200000 1200000 1200000 1200000 14400000
Licences for SAAS etc 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000 6000000

Sales and Marketing Expense 3500000 3500000 10000000 7500000 5500000 5500000 5500000 41000000 60000000 80000000 120000000 180000000

TOTAL FUND required -3350000 -2350000 -2350000 -2350000 -2350000 -5150000 -5000000 -10450000 -7600000 -4650000 -2900000 -2900000 -51400000 -62270000 -25647000

Net Margin Generated -3350000 -2350000 -2350000 -2350000 -2350000 -5150000 -5000000 -10450000 -7600000 -4650000 -2900000 -2900000 -51400000 -62270000 -25647000 29138300 120052130
5.Performance Measures
 Business Measures

Lead indicators
• Office set up timeline
• Staff recruitment completion
• Test run on software
• Software testing
• Hardware and Helmet integration project on PERT Chart
• Consumer test reports
• Consumer Scores on Purchase Intention

Lag indicators
• Sales review end of month
• Sales value
• Expenses review
• Future orders projection
 Financial measures

1. Fixed cost trend

2. Purchase cost – Target vs actuals
3. Sales revenue generation
4. Margin generation
5. Fixed cost trend
6. Cash flow management – for the month
7. Cash flow forecast for next month