1. Woofyy
A smart device that helps dog owners
enhance emotional bond with their dogs
anytime anywhere
# of Interviews to date: 115

2. The Team
Chang Li Dora Liang Kiki Liu Sharon Liu
EWMBA 16’
Hardware Engineer
FTMBA 15’
PR/Marketing
MIMS 15’
UI/UX Designer
EWMBA16’
Software Hacker

3. How the Story Begins...

4. Market Size
Americans love their dogs
 Giant market:
> 80 million home owned dogs
> 95 million home owned cats
> 56 billion total expenditures
on pets
> 3 billion dog treat market
 Mega Trends
> 91% of pet owners say they
consider their pet to be a
member of their family
> Americans are working
longer hours than anyone else
TAM
SAM
Target
6M
Dog owners
50 million dog owners
25 million upper middle
class dog owners

5. BMC Evolution

6. BMC Week 0

7. What We Learn about Our Customers
CustomerNeeds
Emotional Need
Want to show affection
and feel less guilty
Social Need
“Show off” the dog
pictures
Dog’s benefits Healthier, happier dog
Young, urban professionals, first time
dog owners
Dog owners who spend significant
amount of time away from home
Dog’s benefits Healthier, happier dog

8. Customer Archetype/Persona
Meet Bridget
Age early 30s
Marital Status Married
Kids No, but plan to
Job Manager at a consulting firm
Dog Riley (lab poodle)
Monthly spent on Riley $400-$500
Pains Inflexible schedule, hard to arrange dog walker, feel
bad to leave the dog home, no way to interact with
Riley while away, stressful, sensitive stomach,
exhausted after daycare, emotional
Motivation curiosity, obsession, affection
Influencer dog trainer, dog breeder, FB page for dog owners

9. BMC – Customer Segment and VP
Customer Segment
*Dog owners who
spend significant
amount of time away
from home
*Pet hotel operators
who want to provide
value-added service
* Young, urban
professionals, first time
dog owners
Value Proposition
*Woofyy enables dog parents to
check on their dogs while away
from home for a long time
*Dog parents can discover,
capture and share the precious
life moment of their dogs
*Woofyy will make the dog
parent happier by enabling
them to monitor and interact
with their dogs.
*make pets happier

10. Channels
WWW.
WOOFYY
.COM
LOCAL
MOM
& POP
Animal
Shelters

11. BMC - Channels
Channels
*Direct online sale
*Mobile app stores
*Apple Store
*Local pet stores
*Doggie day care &
hotel
*Animal shelters
*Online retailer (i.e.
Amazon)
*Kickstarter
*Mom-and-pop pet
shops

12. ● Manufacturer to investor
● Share risk
● Leverage expertise
● Value-added service
● Customer awareness and education
● Share the revenue
Key Partners
OEM Pet Hotel

13. BMC – Key Partners
Key Partners
*Manufactures
*Retailers
*Pet Shops
*Pet Hotels

14. WOOFYY
Initial Buy
& Upgrade
Physical
Product Sale
Subscription
Online Video
Storage
Treat Supply
Add-on
Games
Sponsorship
Pet Food
Company
Accessories
Revenue Stream

15. Item Cost
Basic components $45
Plush toy $6.5
Shipping&
Handling
$4.6
Packaging $0.5
Total $56.6
Item Cost
Initial Engineering
development cost
$75,000
Tooling $35,000
BOM
Server
hosting
SG&A
Startup
cost
Cost Structure
Marketin
g

16. BMC – Revenue & Cost
Revenue Stream
*Product sales
*Woofyy-branded treats (subscription)
*Accessory/Add-on sales
*Potential software premium feature subscription
*Potential pet food company partnership revenue
share
Cost Structure
*Ongoing R&D
*Device manufacturing
*Marketing/Channel development
*Data processing & storage server hosting
*Startup Cost(tooling, prototyping, etc)

17. BMC - Final

18. MVP Development

19. MVP 1.0 Stimulus
Respond

20. Learning from MVP 1.0
Stimulus
VALUE PROPOSITION
* Customers want to engage
with dogs.

21. Noise from Customers
Device can
play with dog
Automatic
train the dog
More Games
Correct dog’s
behavior
Solve
separation
anxiety
problem
An “Open Platform”
to support all customer needs?

22. Week of Panic

23. Back to Life – MVP 2.0
1-day
User Test
2-day
User Test
3-day
User Test
Simplified
Fun
Dog-
Friendly

24. Learning from MVP 2.0
Dog & owner “may get
bored soon”
“More than giving treats”
“See my dog
without effort”
Auto Dog Face Tracking
Need to explore
games/courses etc.

25. MVP 3.0
“More than giving treats”
Engagement

26. WTP Test – “Write me a check”
Price # of Customers
$100-200 5
$0-$50 3
Sorry, No 3Customers bring up
detailed questions
“Show me your product”

27. Team Woofyy Emotional Index
Concept
Formation
Redefine
Target
Customer
MVP 1.0 Channel
Discovery
Customer
Relationships
The
“Grand
Open
Platform”
MVP 2.0 BOM $56 $$??
Woofyy for
horses?
Week 1 week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10

28. Financial Appeal
Per Analysis
Revenue Per Device Sale $199.00
Treat Subscription $46.56
Accesory sales $10.00
1-year revneue per customer $255.56
Distribution $26.87
COGS-Device $56.60
COGS-Treat $36.00
CAC $84.00
Variable Cost $203.47
Contribution Per Sale $52.10
Start Up Cost $110,000.00
# of device required to cover startup
cost 2,111

29. Financial Appeal (cont’)
Financial Projections (Initial investment $2M)
Period Q1 Q2 Q3 Q4 Y1 Total Y2 Y3
# of devices sold 300 400 600 1,000 2,300 3,600 $5,600.00
Gross Revenue $76,500 $102,000 $153,000 $255,000 $586,500 $950,400 $1,534,400
Net Revenue $68,441 $91,254 $136,881 $228,135 $524,711 $864,432 $1,684,844
cash burn for
period -$334,539.50 -$329,386.00 -$319,079.00 -$298,465.00
-
$1,281,469.50 -$327,328.00 $899,404.00
cash
remianing/end of
quarter $1,665,460.50 $1,336,074.50 $1,016,995.50 $718,530.50
$
(562,939.00) $ (890,267.00)$9,137.00

30. Market Size 1.0
• Americans love their dogs
 Giant market:
> 80 million home owned dogs
> 95 million home owned cats
> 56 billion total expenditures
on pets
> 3 billion dog treat market
 Mega Trends
> 91% of pet owners say they
consider their pet to be a
member of their family
> Americans are working
longer hours than anyone else
TAM
SAM
Target
6M
Dog owners
50 million pet owning household
25 million upper middle
class dog owners

31. Market Size 2.0
• Americans love their dogs
 TAM:
> 121 million households in US
> 42% own pets
 SAM:
> 32% with 75K+ annual
household income
> 92% live in urban areas
> 50% age between 25 and 44
 Initial Target
> 7% interviewed showed
affirmed WTP
TAM
SAM
Initial Target
534K
Households
50 million dog owners
7.5 million middle class
urban living young dog-
owning household

32. Go or No Go?
Financial Appeal Market Size Problem Solving
Ideal 100%
Hell No (0%)
Woofyy
Conclusion: No go for the treat dispenser
However…

33. Learnings

34. Entrepreneurship
Ask for behaviors,
not features
What problem to solve?
Emotional need or
an engineering product?
Find kickass feature and
stop over-engineering
Seeing is believing: the
importance of MVP
Stick to your profound
belief
Always use WTP test to
find out true concerns

35. Thank you!
Q&A?

36. Appendix

37. Per Analysis
Revenue Per Device Sale $199.00
Treat Subscription $46.56
Accesory sales $10.00
1-year revneue per customer $255.56
Distribution $26.87
COGS-Device $56.60
COGS-Treat $36.00
CAC $84.00
Variable Cost $203.47
Contribution Per Sale $52.10
Start Up Cost $110,000.00
# of device required to cover startup
cost 2,111
Financial Projections (Initial investment $2M)
Period Q1 Q2 Q3 Q4 Y1 Total Y2 Y3
# of devices sold 300 400 600 1,000 2,300 3,600 $5,600.00
average retials
selling price per
device $199 $199 $199 $199 $199 $199 $199.00
Other revenue per
customer $56.00 $56.00 $56.00 $56.00 $56.00 $65.00 $75.00
Gross Revenue $76,500 $102,000 $153,000 $255,000 $586,500 $950,400 $1,534,400
(less) channel
discount (15%) $8,059.50 $10,746.00 $16,119.00 $26,865.00 $61,789.50 $85,968.00 $125,370.00
Net Revenue $68,441 $91,254 $136,881 $228,135 $524,711 $864,432 $1,684,844
(less) COGS-Device $16,980.00 $22,640.00 $33,960.00 $56,600.00 $130,180.00 $203,760.00 -$316,960.00
(less) COGS-Treat $10,800.00 $14,400.00 $21,600.00 $36,000.00 $82,800.00 $108,000.00 $134,400.00
(less)marketing
(customer
acquistion) $25,200.00 $33,600.00 $50,400.00 $84,000.00 $193,200.00 $180,000.00 $168,000.00
(less) operation
costs $50,000.00 $50,000.00 $50,000.00 $50,000.00 $200,000.00 $300,000.00 $400,000.00
(less) R&D $300,000.00 $300,000.00 $300,000.00 $300,000.00 $1,200,000.00 $400,000.00 $400,000.00
cash burn for
period -$334,539.50 -$329,386.00 -$319,079.00 -$298,465.00 -$1,281,469.50 -$327,328.00 $899,404.00
cash
remianing/end of
quarter $1,665,460.50 $1,336,074.50 $1,016,995.50 $718,530.50 $ (562,939.00) $ (890,267.00) $9,137.00
Financial Appeal