G2C

Go 2 China

1

Zachary BrownHustler/

User Experience Specialist

Shockey WuDesigner/

Hustler

Ada XiaoHustler/Designer

Helios ZhouHacker/Designer

Customers Today: 30Total: 79

“Providing short term visitors to China with convenientPhone/Data/App bundled rental service”

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Interviews

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Key Partners• Travel agencies (hotel/flight/car)

• Restaurants/Bars/ Nightclubs

• Advertisement agencies

• Travel Guide Publisher (long term)

Unique Value• Real time event information (food/alcohol/parties)• Social connection (Travel buddy/city exploration buddy)• Tailored itinerary planning and sharing

Other benefits• Easy booking (external link)• Language translation

Needs• Want to travel China but unfamiliar with local dynamics• DIY style• Keen to social interaction• Keen to local hot spots

Customer Profile• Age 18~35• Backpacker• New to China• Short period of stay• English speaking

• App store• Website • Social media

Fix• Initial set up and software design• Business development (w/t key partners)• Initial promotion programVariable• Data storage• A&P

Volume Driven• Stage 1: Ad/Sponsorship (related and unrelated)• Stage 2: Ad + paid version • Stage 3: Ad + paid version + event commission

Platform/Network• Increase the number and quality of vendors• User friendly• Improve social connection• Data management

• Automated• Community• Co-creation

Intellectual• Customer database• partnershipHuman• designer / sales forceFinancial

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Day 1

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How we think this thing would work….

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Multi-party CustomersEnglish speaking 25~35 year old backpacker.

•Frequent Business Travelers.

•Local Vendors • Website (Synchronize with app)• App store•Social media

Fix•Initial setup costs• Initial promotion programVariable•Computing resources• A&P•Monitoring expenses

Volume Driven• Stage 1: Ad/Sponsorship (related and unrelated)• Stage 2: Ad + paid version • Stage 3: Ad + paid version + event commission

Platform/Network• Increase the number and quality of vendors• User friendly• Improve social connection• Data management

• Automated• Community• Co-creation

Intellectual• Customer database• partnershipHuman• designer / sales force

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Day 2

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Multi-party Customers

•Website (Synchroniz ed with app)• App store•Social media

Fix• Initial app development/operation costs• Initial promotion programVariable•Computing resources• A&P•Monitoring expenses

Volume Driven• Stage 1: Ad/Sponsorship (related and unrelated)• Stage 2: Ad + premium version • Stage 3: Ad + premium version + event commission

• Automated• Community• Co-creation

Intellectual• Customer database• partnershipHuman• designer / sales force

6

English speaking 25~35 year old leisure travelers to China.

Local vendors

Improve social connectionImprove number and quality of vendorsR&D of App InterfaceData Management

Restaurants/Bars/ Nightclubs

Advertisement agencies

Travel Guide Publisher (long term)

Local vendors

Local Vendors:•Translated/Customer Designed Menu•Restaurant info/promotion•Event Info

Day 3

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• Hotels in China (onsite at point of sale)

• China Mobile• Phone Manufacturer

Direct sales to local apps

Day 4

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Yesterday we think how the new thing would work….

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Foreign Travelers:Convenient, inexpensive rental smart phone with telephone, email, and internet for short term visitors to China

Fixed•Distribution channel•AdvertisingVariablePhone /data serviceLogistics (storage/transportation)Direct salesApps included in the bundle

Volume Driven•Sales of phone bundled package•Apps that pay to be included in the bundle•Other advertising on/through the phone itself

Physical: Hardware, logistical related storage/transportationHuman: sales forceIntellectual: phone apps, partners/channels

9

Local apps

• Direct sales

• Phone app providers

Direct sales to local apps

•Direct sales

Now is Day 5

G2CHypothesized Customer Archetypes

Lawrence, 25, USA citizen- Go to China for two week vacation - Iphone 4S owner- Heavy data user: >1GB per month- Continuous social connection

- Over 50+ emails per day- Star in Facebook, twitter

- Cost conscious

Problem: data access in China

G2CMarket Size

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Target Market3.47 Mpeople

Target Market3.47 Mpeople

Served Available Market4.3 M

people

Total Addressable

Market10.86 M people

Bundled phone users TAM - Leisure travelers to China: 10.86M SAM - 40% middle segment (not overly frugal or

rich): 4.3M TM - 80% city travelers: 3.47M

Bundle Package cost Cost of smartphone unit = 17$/month (1year depreciation)

Cost of service (240 minutes, 300MB data)= 15$/m Guestimate of other costs (operating/logistics/channel/marketing) =

10$ Remaining profit per sale= 8$

Potential market size 50$ x 3.47M = $173M USD Potential profit (3.47M x 8$) = $29.6M USD (16%)(not including potential revenue from charging apps)

G2C

Pick a Smart Phone Pick a Rate Plan

1 2 3

Pick Travel Apps

- Tiered rate plan• Menu A/B/C (e.g. 5$ per 100MB)

A Bundle to Rent

- Free for private label- Rent for brands

- Basic Free- Premium Apps- Installed Ads

Minimum Viable Product

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13

Hypothesis Testing

Day 1 Day 2

Customer Segments Hypothesis 18~35 years old English speaking travelers to

China for leisure are our targeted customersLocal restaurant who wants to attract foreign travelers will join our database

Test The demand of potential customers within the age range

Test the demand of local restaurant

Result Failed. Pending

Value Propositions HypothesisTargeted customers want to share travel

experiences with other travelersTargeted customers want to share travel experiences with other travelers.

Test Whether the majority of sample customers desire this function

Test whether the majority of sample customers desire this function

Result Passed. Passed

Channels HypothesisSmartphone app stores will be our main channel to reach out to our customers

Local vendors are willing to promote our application

Test Whether our customers go to app stores for travel related apps

How long they could promote our app and would it be free

Result Failed. Pending

Revenue Streams Hypothesis

First stage: advertising, Second stage: one-time payment, Final stage: commission on event tickets sales

Local restaurant who wants to join our database and use our service will be our primary sponsors

TestWhether there is advertisement/sponsorship demand, and if users are willing to pay to download

Test how much commission local vendors will pay, on what sizes of foreign visitors

Result Pending. Pending

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Hypothesis Testing Day 3 Day 4

Customer Segments Hypothesis

There is demand for local phone/data usage by short term travelers who don’t use their mobile plans from home

There is demand for local phone/data usage by short term travelers who don’t use their mobile plans from home

Test Surveying hotels and end users Surveying hotels and end users

Result positive, people want to use at least a phone while in China, if inexpensive.

positive, people want to use at least a phone while in China, if inexpensive.

Value Proposition

sHypothesisPeople are interested in a bundled package People are interested in a bundled package

Test surveying end users (ongoing) surveying end users (ongoing)

Result positive, people indicate they’d be interested in access to phone/internet if inexpensive enough

positive, people indicate they’d be interested in access to phone/internet if inexpensive enough

Channels HypothesisVendors are not currently offering phone/data options to travelers

Hotels will be our major distribution channel

Test surveying hotels and local websites Survey hotels

Result Most of the surveyed hotels are not offering such service at low price

Hotels is unlikely to be our partner due to the conflict of their own landline service

Revenue Streams HypothesisShort term travelers are willing to pay 50$ for

bundle of phone/email/internet accessShort term travelers are willing to pay 50$ for bundle of phone/email/internet access

Test Surveying end users Surveying end users

Result Pending Positive

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Next Steps…Customer Segments – Reiterate Customer Discovery process with interviews of foreigners visiting China, understanding their needs and behaviors.

Hypothesis: travelers who stay in mid-end hotels have needs for data-serviced rental phones.Test: Interview more foreign travelers going to China, especially older ones on which we have little data.

ChannelsHypothesis: Airport kiosks and travel agencies will be better distribution channels.Test: Interviews with airports and travel agencies for demand feedbacks.

Cost StructureHypothesis: Distributing through airport kiosks and travel agencies cost more than through hotels.Test: Interviews with airports and travel agencies for cost informations.

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End of day 5