Final_Greenfield Business Model Canvas Presentation

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Greenfield Jason Deane, Mari Herrera, Natalia Loyola, Dave Mueller

Transcript of Final_Greenfield Business Model Canvas Presentation

Greenfield

GreenfieldJason Deane, Mari Herrera, Natalia Loyola, Dave Mueller

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Cant Wont Do WithoutSaving the world One Cell phone at a time

"There's a lot of technology... the level of organization that I see here in this context is new," said Alessandra Morelli, an official with the United Nations High Commissioner for Refugees

A new study has shown that poor people would rather cut back on their food and transport budgets to buy airtime. The study finds the poor forego basic items in the hope of clinching life-changing dealsReduced airtime increments make it easier for lower incomes to buy and suppliers are rushing to fill this gap (http://www.businessdailyafrica.com/Mobile-phone-airtime-eats-into-families-food-budgets/-/539552/1674602/-/item/1/-/jivdc5z/-/index.html)

Allepo refugees cross the Mediterranean in rafts, seek basic services using cell phones. Were looking to serve below this level.

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Raise the Human CapitalIts BIGGER than you think

Kenyas poor would rather go hungry and walk to work than be short of airtime

OR

People place high value on cellular use AND Handset(http://m.mgafrica.com/article/2015-03-03-mobile-come-first-in-africa-before-electricity-water-toilets-or-even-food)Africa:Mobiles are more important than flushing toilets, poor people would rather go without food than be short of airtime, and mobile phones are the great equalizer used to blur social boundaries.Data reveals that mobile phone coverage is the most widely available infrastructure across the continentThe availability of electricity, piped water and roads occupy a more intermediate positionAcross the 33 examined countries, between 70% and 100% of respondents reside in areas with mobile phone coverageFor residents of Langa, mobile phones are the great equalizer, sending subliminal messages to more affluent, mainstream Cape Towners: I may live in a shack, I may not have a car or a house as nice as yours but I do have a nice phone (I might even have the same phone as you!)Kenyas poor would rather go hungry and walk to work than be short of airtime, according to a 2013 study commissioned by the World Bank.seven out of 10 poor people would rather cut back food expenses to spare money for airtime, in the hope that having an operational phone could help them earn some money.

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Greenfield Wireless LLCOpportunity Awaits

Bridging the knowledge opportunity gap assist in qualification processOne bricks and Mortar Location in San Juan78 municipalities, >=30k Population, each gets a Independent contractor agent. commission basedBackpack for 30 units and an IPad with CUBE POSSell 1 GB cards for 2$ not 10$(Straight Talk)App bundle for human servicesAssist with sign up Value add

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Our Business Concept SummaryBusiness Model Canvas

Used the Business Model canvas NOT the traditional Business Plan Model for development.

1. 9 thematic areas addressed

2. High Level - not quite as detailed

3. Interconnections referenced5

Why I like Puerto Rico

VAR for ATT/Cricket reselling Data-leveraging the existing government free phone program that provides talk and text but no data

Changing the Distribution Paradigm Backpack agents(trunkstock) with IPads

Geographic isolation Its an islandSuperb signalLimited competitionGood existing penetration4.3 M people and 1/3 qualify6

Key Partners

Network of suppliers andpartnersthat are going to make our business model work.Our Key Partners include:

U.S. and Puerto Rico government Permits and LicensingAT&T/Cricket Carrier relationship, wholesale agreement, and franchise agreementChamber of Commerce Relationship building and community interactionIMF/World Bank Potential start-up fundingBrown Field Development Space Low or No cost retail spaceInvestors For start up CapitalLocal Distribution NetworkLaw FirmAccounting FirmInsurance AgencyShipping/Logistics Partners

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Key Activities

Logistics and Distribution:This is fundamentally innovated as we are using individual sales agents in each municipality using the back pack method. Innovative distribution mechanism. With indirect distribution we are going to eliminate infrastructure cost.

Customer Service:Service element of coordinating with the customers for assistance with filling out necessary paperwork to get their free safe link phone and during this process sell them their data card

1. Refurbish 2. Logistics/distribution 3. Customer service 4. Sales division 5. Account management 6. Training/HR

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Key Resources

Key resources: 1. Phones/Access 2. Sell Service. Team that will be selling and presenting the serviceto a customer must have an understanding of theselling process.3. Warehouse. One commercial building for storage of goods in San Juan. 4. Brand. Why we chose Greenfield? Because our brand represents a new green field of opportunities!5. Staff. We are planning to employ people local to municipalities that they are going to serve.

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Value Proposition

Value proposition facilitating the usage of information

1.Free phone, Voice, Txt2.Data as a var + apps relevant3.Knowledge4.Access5.Connections6.Fam/socialTransported to us

About 30 percent of all Puerto Rico households or 379,500 households are renters. Federal rental assistance programs enable more than 107,100 low-income households in Puerto Rico to rent modest housing at an affordable cost. About 28 percent of these households are headed by people who are elderly or have disabilities; approximately 53 percent are families with children that are headed by people younger than 62 and do not have disabilities. Federal rental assistance programs reach only a small share of the low-income Puerto Rico households that pay unaffordable rental housing costs.

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Value Proposition

* In Puerto Rico, 70,193 low-income renter households pay more than half their monthly cash income for housing costs. The median income of these households is $480, which is not enough to cover median housing costs of 490 or any other necessities. About 37 percent of these severely cost-burdened renter households are headed by people who are elderly or have disabilities, while 45 percent are other families with children.

* When housing costs consume more than half of household income, lo-income families are at greater risk of becoming homeless. Point-in-time surveys suggest that at least 3,100 people are homeless in Puerto Rico.

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Value Proposition

Provide sign up assistance not clear understanding the maze of confusion that prevents them from getting the services they are entitle tThi benefit cannot be overstated . That people leaving in the bottom of the pyramid do not have the benefit of technology tools or education on how most effectively use them. The social benevolent activity for assisting this customer segment is a major value offering for this community.

We have assemble a list of 6 key applications that escifically and directly addressed basic human needs and the successful maintenance of the providing of those needsWe look at it this way if u feed a man a fish he will only eat for a day but if you teach a man to fish he will eat for a lifetime. we are getting them the tools to learn and continue doing in the future.

1..Nutrition2. Child health3.Aids prevention4. Literacy education5. Helps them find available shelter in their vicinity6. Provides job seeking assistance

Provide sign up coordinator ad assistance to guide them through the process.

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Customer Relationships

For the maintenance of customer service/relationships and on going support the municipality agents and store is San Juan will be there to assist any customer needsFor the maintenance of customer service/relationships and on going support the municipality agents and store is San Juan will be there to assist any customer needsPositive customer relationship are also supported by cricket as well as at&t in order to foster overall positive brand imageThe maintenance of customer accounts who are safelink subscribers would primarily be handle by our municipality agents network A significant element and goal of our customer relationship management initiative is the minimization and reduction of churn (is a relative term that we look at in order to describe the volume of customers departing the base in a given month relative to the base itself using traditional bases points We have an experience based target of sub 2%churm for this product

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Channels

Greenfield Wireless

We are an indirect distribution channel for Cricket Wireless but more significantly we are a VAR (Value Added Reseller) for ATT bulk data. We are specifically distributing that data through our Municipal agents to the 48 most populated areas in Puerto Rico all of which exceeding 30,000 people. We will use our San Juan location as a managerial, operations, and logistic hub for our Puerto Rico Operations.

For our 1 GB data cards 14

Customer Segments

The above charts show the Income eligibility to qualify for the government phone in Puerto Rico and Puerto Ricos history of poverty.

You can also qualify for the government phones if you are on any of the programs below.Federal Public Housing Assistance/Section 8Low Income Home Energy Assistance (LIHEAP)MedicaidNational School Lunch Program (NSL)Nutritional Assistance ProgramSupplemental Security Income (SSI)Temporary Assistance to Needy Families (TANF)

Fact is, residents of Puerto Rico face economic hardships that are completely unknown in the continental United States. The unemployment rate in the Commonwealth is a stunning 14.7% (as of June 2014). That puts a strain on a huge percentage of the islands residents.

The U.S. Census Bureau also announced that in 2014, the nation's official poverty rate in Puerto Rico was 46.2%.

Population in 2014 was 3,548,397 a decrease of -47,442 from 2013

Tax savings for U.S. citizens/companies for bringing business to Puerto Rico

These new laws established a legal framework of incentives designed to stimulate the establishment and development of a wide array of ventures, among them manufacturing, social media, other internet-based operations, commercial businesses, and the export of services

Act 20, the Export Services Act, offers incentives to certain service businesses, including investment and hedge fund managers, to relocate to Puerto Rico and export their services. It does so by taxing their corporate profits at a flat 4%, while making the dividends paid from profits on exported services 100% tax exempt to individual recipients.

Act 22, the Individual Investors Act, was designed to primarily attract high net worth investors to Puerto Rico by providing complete tax exceptions on dividends, interest and capital gains, so long as the individual is present for at least 183 days a year (half the year) in Puerto Rico.

http://www.puertoricoreport.com/u-s-census-data-show-continued-decline-puerto-ricos-population/#.WEdy3cIzWUk

http://www.forbes.com/sites/janetnovack/2015/01/27/puerto-rico-expands-tax-haven-deal-for-americans-to-its-own-emigrants/#31cbd694da5915

Cost Structure1 TB of Data costs $1001 TB = 100 GB which means we are paying $0.10 per GBData Card and Depletion Management equals $0.30 per cardCommission to employees is $0.10 per cardWe will charge $2.00 for each GB of Data and have $0.50 in costProfit = $1.50 per card

1 TB of Data costs $1001 TB = 100 GB which means we are paying $0.10 per GBData Card and Depletion Management equals $0.30 per cardCommission to employees is $0.10 per cardWe will charge $2.00 for each GB of Data and have $0.50 in costProfit = $1.50 per card

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Revenue Streams

The Revenue model assumes the accumulation of the customer base as 1 GB per month data users. Each Salesman is tasked with selling 30 new subscriber account activations per month while maintaining the previous sold existing accounts.

The financial driver for doing this and the equity proposition for the municipality agents is significant as they receive 5% of the gross revenue from data card sales as part of their compensation.

Another significant element in the revenue picture is the sale of cricket phones. We will have a brick and mortar store where we sell cricket wireless phones and plans for those that do not qualify for the government assistance program.

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Closing the Knowledge GAP

Disruptive Distribution Model

Value - $ Savings

Service App Bundling

Demanded

SustainableGreenfield Wireless Opportunity Awaits

Save With Dave! Ahorra Con DAVE!

Radio Spot:

Unbelievable Its time to crossover to Greenfield and - SAVE WITH DAVE Ahorre Con Dave!!

It that time of the year PR when bells are ringing and Opportunity Comes-A-Knocking (knock, knock, knock)

Who is it, but to your wondering eyes do appear But Jolly Old Deal Make-in Jason. Oh ho ho Jason What's your Deal for the Season???

Well Dave - Get with your Greenfield Green-shirted Elf and make your holiday wishes come true with a NEW free SafeLink SmartPhone with FREE basic service and LOW(deep voice) COST DATA!

What's thats you said Jason (Natalia), LOW COST DATA how low can you go???

Here at Greenfield we got the price all the way (slide voice) down to 2 Bucks!! Your wishes came true early and you heard me right just 2 bucks for 1 Gig of data for Face booking, tweeting and your surfing pleasure (sultry voice Mari)

Greenfield Opportunity Awaits

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com.apple.VoiceMemos (iOS 10.1.1)