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BleuKi offers Bluetooth software to link car & cell phone, enabling remote access to vehicle features. Seeking investments for development stages to target Ford vehicles and expand market share. SWOT analysis included with market insights.
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BleuKi • Sean Burke, Frank Dodge, Raffi Isanians • Kevin Hung, and Pao Ting Tu
Moving into the Digital World Physical Media is becoming obsolete.
BleuKiBusiness Description • What does BleuKi do? • Where the problem? • The BleuKi solution... • How does it work?
BleuKi • BleuKi available for 5 different phone companies • Bluetooth software linking car & cell phone • Open car doors and trunk and disengaging alarm with cell phone
Use of Proceeds • Assuming initial investments of $500,000 dollars. • First Stage: • developing software • Seek a senior programmer • Purchase components to test and verification • Look into licensing patents • Second Stage: • Find talent in accounting, law, sales and marketing
Use of Proceeds Employees 32% Other 28% Patent 40%
Target Customer: Ford • 16.1% (112,149 vehicles) in January 2010 • Ford will be selling 1,140,000 Cars annually • Offers Bluetooth enabled automobiles. • Apple, HTC, Sony Ericsson, Motorola, Palm and Google
SWOT Analysis • Strengths • Offers convenience and functionality to busy consumers • Competitive advantage • Software • Indirect Marketing
SWOT Analysis • Weaknesses • Need expertise in sales, accounting and law. • Competitors have released similar products (Apple and Denso). • Use of Bluetooth will jeopardize our ability to use other wireless transmissions.
SWOT Analysis • Opportunities • Affordable solution convenient for smartphone users (30 million iPhone users and growing) • Bluetooth 3.0 will allow more functionality • Work with Ford to develop BleuKi: they are pushing the use of technology in everyday use with their Ford Work Solutions
SWOT Analysis • Threats • Mercedes Benz and Hughes Technologies “MBrace” system: incorporates our concept along with other features • Patent 6,697,638 by Denso Corporation blocks our creation of such a device and requires us to license from them • Viper Technologies: leader in automotive security systems and auto-starting systems
Competitors • Viper Smart • BlueKey Wireless • Competitive advantage • Software • Indirect Marketing
Sales and Marketing • Exclusive to Ford Motor Vehicles: • 1.2 million yearly sales, most with Bluetooth • Contract: initial factors • 5 years • Yearly minimum product sales: 250,000 • Individual product cost: $50 or .4% retail value • Included as part of the option package with Bluetooth • Yearly revenue: $12.5 million for each of the 5 years of our initial contract
Risk Factors • Ford not accepting the contract • Ford finding a competitor who could do it for cheaper • Competitors duplicating our technology and targeting a competing car company
Finance • Initial production cost: • Costs: $300,000 • includes product and software development, program writing, and testing
DistributionMarketing Ourselves • Preinstalled in Ford vehiclesOnline web page; download from web page using PIN # given with purchase • Ford will take care of any other problems that aren’t directly connected to the software • We will support Ford’s customers.
After Contract • Pursue another contract with Ford or GM or multiple auto-makers • Look into also developing BleuKi for home security systems, etc. • Sell the company and the rights to our product outright
Expected Valuation • RF Micro Devices, a $250 million company acquired Silicon Wave for $10.8 million after 7 years • Expected Valuation at $55 million
Exit Strategy • Initial investment: $500,000 • Percent Ownership by Investors: 20% • Return at end of 5 year contract: • 20% of what company is sold for ($11 million of the $55 million)
Questions... • Thank You!
If the phone dies... • Ford has keypad code access on the outside of all their vehicles. • Charger in the car.