Rodlim entoscent 2012_09_28

Ph.D. candidateChemistry

Ph.D. candidateNeuroscience

Ph.D. inBioengineering

Ph.D. inNeuroscience

# contacts today: 2total: 28

Key Partners (7)Who are our key partners/ suppliers

Key Activities (5)Which key activities does the biz model require

Value Proposition (1)What value do we deliver to the customer

Customer Relationships (4)What type of relationship does each segment require of us

Customer Segments (2)For whom are we creating value

Channels (3) - Through which channel does each segment want to be reached

Cost Structure (9)What are our cost drivers

Key Resources (6)Which key resources does the biz model require

Revenue Streams (8)How much is each segment willing to pay and how would they like to pay us this amount

Pest control businessesa) Chemical

companiesb) Pest control

service companies

Usersc) Individualsd) Businesses

Pest control businesses: Discovery platform

Users: Better pest control products

Pest control businesses: Partnerships

Users: Retail

Cost: Cheaper to produce

Performance1. More potent

2. Low toxicity

3. Chemical diversity

4. Species-specific

Universities

Chemical companies

Pest control service companies

A laboratory

Chemical libraries

Experimental setup

Establish partnerships

Experimental setup

Technical expertise

MarketingLicensing

Sales post-discovery

NOBODY WANTS A “DISCOVERY PLATFORM”

BED BUGS ARE A HUGE PROBLEM

Google Trends

“Bed bugs are the hardest pests to get rid of

in the 20 years I’ve been in the business”

“Every hotel has bed bugs.”

1 bed bug to 38 million bed bugsfrom January to December

Paranoid people

Pest control service companies

Hotels

Pest control services: traps after spraying

Users: trap that works better

-Sales through website-Large retailers-Contracts / chemical warehouses

Problem:Increase in Bed bug incidents and current bed bugtraps are not effective

Solution:Bed bug trap that worksbecause it usesattractants

Pest control service companies

Manufacturers

Retail stores Manufacturers of bed bug trap

Retail stores

Behavioral experiments

Marketing

Pilot testingManufacturingMarketing

Sales/contracts to pest control services

Direct sales

2.0

Total Available Market:number of hotels: 22,000

$6.5billion in non ag pest control. $409m from bed bugs28% growth from y/y growth 2011http://www.pctonline.com/SPC-research-structural-pest-control-market-good-growth.aspx

Serviceable Available Market:$1000 per room to get pest control service

Target Market:hotels in the US: 10% of 2m hotel rooms x $100 annual contract

= $20 million

HOTELS PROVIDE BEST MARKET OPPORTUNITY

Bed bug hitches ride into room

Detect bed bugs

early

Multiply very rapidly

Hotel customer notices and complains

Hotel’s reputation goes down

HOTELS COULD REALLY USE THIS PRODUCT

Pest controlservice is called

Clean out adjacent roomsChange furniture, etc

HIGH COST

So we have an idea of a product.How do we sell to hotels?

General Manager

Assistant Managers

Front Office

Restaurant Kitchen Housekeeping AdministrationAnd Accounts

MaintenanceAnd Engineering

Bars

Head Housekeeper

Deputy Head Housekeeper

Linen Keeper Floor Housekeeper Florist

RoomMaids

StaffMaids

Cleaners House Porters

Valets CloakroomAttendants

Linen Maids Assistants

HOTEL ORGANIZATION

Decider

RecommenderRecommender

Users

Primary deciderssets the protocols

Independent Corporation

Protocols

Reach the decision makers, targeted ads

Same as Hotels

Form relationships, > direct salesTarget Specialty

Chemical distributors

Improve hotel reputation and reduce pest control cost by early detection

Help them increase their performance

EPA

Trade show and conference organizers

Manufacturers

Pest control service companies Manufacturers of

trap and chemicals

Genuine innovation onproduct design

PRODUCT DEV & REGULATORY TESTINGManufacturing

Sales/contracts to Hotels

Sales/contracts to PCS distributors

4.0

Pest control service companies (PCS)

Hotels

DETECTION MARKET IS CROWDEDBUT NO CLEAR MARKET LEADER

WHAT WE LEARNED DAY 4

Experiment 1Talk to Target-Specialty or those who have used competitors’ products

Experiment 2Ask hotel decision makers and recommenders about competitors’ bed bug detection products.

Hypothesis 1No product has a clear cost/performance advantage

Hypothesis 2No company has found the right distribution channel

Result1No one has a clear advantage on selling early detection products to hotels (but one is doing it)

Result 2To be determined

Reach out to the decision makers at hotels and their distributors

Pest controlproduct distributors

Direct sales to hotels

Improve hotel reputation and reduce pest control cost by providing early detection for bed bugs

Pest control product distributors

Trade show and conference organizers

EPAManufacturers

Pest control service companies

Manufacturers of chemicals and products

Product innovation

Sales

R&DManufacturingSales and marketing

Sales/contracts with hotels/motels

Sales/contracts with pest control product distributors

5.0

Hospitality industry

What is missing in current products?-Most attractants except CO2 and dry ice do not work-Best attractant products are either too complicated and unsuitable for hotels -Best attractant products require on-site professional pest control

How do you solve these problems?-Use CO2 or something like CO2-Make it discreet -Make it maintenance-free for the hotels-Make it cheap-Don’t require pest control professionals for anything

WALL PLUGS BED BUG DETECTORS WITHWIRELESS MONITORING

datastreamed

to pest

controlservices

BBlogger (bed bug logger): Allows hotels toremotely and discreetly monitor bed bugs without

on-site pest control professionals

$50 per unit x 2 per room x 100 rooms = $100,000 per hotel+ cartridge every month $5 = $120,000/year per hotel

WHAT WE PLAN TO DO

Hypothesis 1Hotels want the BBlogger

Hypothesis 2BBlogger can trap bed bugs

Hypothesis 3Pest control companies want wireless monitoring (or we can serve as the middle man)

Experiment1Call the hotels and ask them if the idea sounds plausible

Experiment 2Do pilot testing

Experiment 3Talk to hardware and software engineers, talk to pest control companies

Thank you

Steve Blank Jon Feiber

Kenneth Pickar Andy Sack

Chuck House

ClassmatesTAs