TOUCH PLAY™

Innovation and Entrepreneurship:

From Project to Business Plan

H.A. U-thumporn, SRIVASTAVA Yashowardhan & SHARMA Siddharth

19 April 2010
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Contents
Executive Summary

Business Overview

Market Opportunity and Competition

SWOT Analysis

Development Strategy

Competence management and partnering

Revenue Model
Financing
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 Executive Summary
The Concepts

TouchScreen Hardware

Customized Coffee Table

Coffee Chains and
Restaurants
Entertainment and
Various application
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Executive Summary
The Future is on the table….. The table can order taxis and show bus maps.
Play battleships with partner or friends
(co-diner), should conversation flag

Personalize décor by choosing from a range of

patterns and colors that glow from the table

You can surf internet, watch youtube videos,

look for directions through, login to your
facebook account…..

In the future, no doubt, the tables will allow

courting couples virtually to flutter their
fingertips, praise the luster of each other’s eyes
Click to Watch VIDEO and offer invitations home for coffee.

http://timesofindia.indiatimes.com/ Future: the tables will be able to propose

ET-Now-Digital-dining-in-London- marriage and discuss shared mortgages and
restaurant/videoshow/5789440.cms pensions
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Executive Summary
Business idea & vision

TOUCH PLAY™

Mission:

To create a unique virtual experience for coffee drinkers and food retail
chains

Strategy:

Product: Touch Screen Coffee tables with customized applications to enhance

customer experience

Hardware: Touch Screen (Single Touch), CPU, table frame

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Business Overview
Value Proposition

o Place of socializing
o Conversation Stimulants, Entertainment and Buzz
o Convenience to customers
o Targeted marketing
o Set of applications to choose from
o Monetization of table
o Advertising Revenues
o Charge per hour (Choice of the client)
o Customers spend more time so order more
o Brand Image and Differentiation

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Business Overview
Software and Applications

o Touch screen games

o Menu and Order Placing
o Virtual Interface, Audio Books
o Database of songs and movies trailers
o Customer Feedbacks, ratings of new offerings, targeted marketing, advertising
testing and variable pricing
o Customized Tabloid with revenues from advertising
o Exclusive tailors
o Small applications to create buzz like
online bidding of products, price
fluctuations, small competitions
o Internet access

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Business Overview
Value Chain
Hardware
Manufacturing

Maintenance Content
& Updating Development

Interface
Selecting &
Creation &
Customization
Installation

Outsourced: Hardware , Content Development

In house Activities: Selecting and Customization / Small Application
Development / Installation / Maintenance and Updation
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 Market Opportunity
India
o Fastest growing coffee retail market in the
world with top 3 players having aggregate
sales in excess of 10 billion INR through
roughly 1300 stores
o The total size of these top 3 stores is
roughly 20000 tables out of which we are
targeting only 1200 tables in 1st year
o We target only 4 tables per store in 300
retail store of one of the largest chain Cafe
Coffee Day in 7 major cities of India
o The 7 cities have aggregate population of
53 million with large no of students and
professionals with high spending power
o Delhi, Mumbai, Bangalore, Pune, Chennai,
Calcutta and Hyderabad

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 Market Opportunity
B2B Model

Barista Café Coffee Day

o 65% are 15-30 age group o 52% students, 37% are 20-24 age group
o An escape from the daily pressures o It is urban youngsters favorite
of life “hangout”. CCD, place frequent most
o Barista deal with Leo Mattel toys after “home, workplace & college”
providing board game Scrabble at o 5% of revenue comes from
every Barista outlet across the merchandising like t-shirts, mugs etc.
country. o Board games, guitar etc are available at
o Barista outlets in and around Malls, every outlets
Cinemas, Colleges, and Offices etc. o Outlets are generally located in High
Street/ Family Entertainment Centers.

Source: BARISTA VS CAFÉ COFFEE DAY – A COMPARATIVE STUDY,

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The Indian Institute of Planning and Management, New Delhi
Market Opportunity
Market Analysis
Length of Visit Average Group Size

10% Over 2 hrs More than 5

40% 20% 20% people
1-2 hrs
0.30-1 hr 3-5 people
50% 60%
2 people

Entertainment, Ambiance and Overall Rating:

Barista
/
CCD

Source: BARISTA VS CAFÉ COFFEE DAY – A COMPARATIVE STUDY,

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The Indian Institute of Planning and Management, New Delhi
Competition
Multi Touch
o Microsoft Multitouch table already
installed Rio All Suite Hotel & Casino
in Las Vegas
o Philips 30” LCD Touch sensitive
gaming table
o PQ Labs Inc. iTable 42” full HD LED
Single Touch screen launched 2010
o Menu Logic for iMenu and iMenumax o Digital Touch (T3-B) 26” LCD screen
with Wifi connectivity
o HP Misto coffee table
o Kodak Multi-touch table
o Agyris Game Table
o Mitsubishi Touch table

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 SWOT Analysis
o First Mover
o New entertaining factor in
coffee parlor o New Entrant
o Low Cost for B2B o High Initial Cost
o Multi Functioning o No Credibility
o Generate Revenues
Strength Weaknesses
through different features

o High growth Sector o Technology

o Demand for entertainment Obsolescence
o Capture customer for new Opportunity Threat o Multi Touch screen
features becoming affordable
o Indian Market is huge o New entrant with better
technology
o Possible partnership and
ties

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Development Strategy
Differentiation

1. Understanding client needs and offering customized solutions

2. Interface creation and customized applications/events to create buzz

3. Updating and changing applications over a period of time to maintain freshness

4. Extensive networking with vendors for application development

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Development Strategy
Technology: Capacitive Touch Panel

oSize: 19 inch, options available

oResolution (based on Controller) - 4096*4096
oStatic Load - 500 gm within 30 Sq. cm area for 30 Sec
oLight Transmission - 85%
oTouch Activation Force - Touch force Standard Finger 10g
oEndurance - More than 160,000,000 touches in one location without
failure.
oSurface Hardness - 7H
oOperating Temperature - 20°C to +75°C
oStorage Temperature - 40°C to +80°C

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Development Strategy
Marketing & Sales

Personal selling and pitching

First pitching by Company’s top management

Later interactions handled by sales executives

The communication will contain information on:

1. Complete package including proposals for customized applications
2. Value creation for customers
3. Subsequent gains to the coffee chain

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Development Strategy
Pricing Strategy

o 5% markup on hardware
o 5% markup on content sourced from other vendors
o Charges for customized applications development and interface design at a profit
margin of 20%
o Hardware and software installation charges – 2% of the total cost per table
o Annual maintenance fees - Rs. 500000 per metro and Rs.200000 for other cities
o Updation costs at mark up of 20%

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Development Strategy
Business Strategy
Fast leaping to newer
technologies and
Standardized product products to cater to
with some expanding Indian market
Initial focus on customizable features (in Tier 1 and Tier 2
coffee chains for for small chains and cities) and replacement
two years stand alone outlets of older installations

1-2 3-4 5 Years

1-2 3-4 5 Years

Expand business Competence development

to developing in Standard Product
tables and Development and
applications for Interface/Application
fast food chains Design

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Competence Management
Management Team & Staffs

Executive
o CEO: Yashowardhan Srivatava (BE in Computer Engineering, MBA with 4 years of work
experience- 2 years in IT (SAP))
o COO: U-thumporn H.A. (BBA marketing major from India, MBA with 2 years of work
experience in Export field) also responsible for sales and Marketing
o CFO: Siddharth Sharma (BE in Mechanical Engineering, MBA with one year of work experience
in Finance, also internship in Wi-Fi networking) also responsible for vendor relationships
o CTO: Arpit Lamba (MS in Computer Science, U.S.A.)

Management Staff:
o Two sales executive
o Two Project Leads for IT development
o One manager for administration and HR
o Technical Staff:
o Ten engineers from tier one institutes in India
o Free lancing for idea generation

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Partnership
Probable Partnership

o Bollywood Production Houses (UTV, Red Chillies) for exclusive movies trailors
o Social Gaming: Nicolas Gaume
o Games: IPad application development community, Zapak (Largest Indian Gaming Portal)

o Touch Screen: Tyco (Hardware Vendor, India)

o Audio Books: Audible Incorporated (Amazon)
o Processors: Intel
o Music: Nokia tunes

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Revenue Model
Income & Expenses
o Operating Expenses:
o IT team of 15 people – INR 30000 per month
o 3 IT Project Leads – INR 50000 per month
o Office Rent – INR 100000 per month
o Office setup Expense – INR 1,000,000 per annum
o 2 sales people – INR 15000 per month (after sales)
o 2 Admin staff – INR 25000 per month
o Top Management team - 5 (profit sharing)
o 2 people in 7 metros INR 15000 per month (hardware and
support)
o 2 Office Assistants – INR 10000 per month
o COGS: Touch Screen – INR 30000 per screen
Exchange Rate:
o Revenue – INR 50000 per screen
1 Euro = INR 60
o Gross Margin – INR 7267 per screen
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 Financing
(Figures in INR)

Count Cost 2011 2012 2013 2014 2015

Operating Cost 13120000 18368000 25715200 36001280 50401792

COGS 1200 30000 36000000 50400000 70560000 98784000 138297600

Revenue 1200 50000 60000000 84000000 117600000 164640000 230496000
Interest payment 2160000 3024000 4233600 5927040 8297856
Gross Profit 8720000 15232000 21324800 29854720 41796608
Net Income 6104000 10662400 14927360 20898304 29257625,6

ROE 40,69% 71,08% 99,52% 139,32% 195,05%

Equity 150 000 000

Bank credit for COGS

VC Capital: For Capex Investment at a later date Or for a specific expertise
as may be required in near or distant future 22
 Financing
Assumptions
o We are expecting Business Growth o The risk free return in India is around 8%
at the rate of 40% which with Equity market normalized return at
corresponds to the growth rate of 18.6% in India
retail coffee market of India o To prepare a functional prototype with
o We target to capture 6% market in onboard applications an investment of
the first year of operation roughly 200000 INR is expected.
o We plan to fund operating expenses o We are also expected to be at 25% of
and development cost for first year indicated operating level till our first order
through equity infusion from the (meow the figures in table are 100%)
founders o Since, the CAPEX requirements are very
o We plan to access credit to fund low whereas operating capital requirements
COGS along with favourable are pretty high, the formal credit from the
payment terms from vendors bank could be accessed on favorable terms
o We expect working capital credit for o We plan to fund capex through fresh capital
period of 6 months at a rate of 12% infusion from VC or PE funds in the future
per annum
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The future is on the table…

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