Week 15

WEEK & SMART PROJECT
We had our meeting with Professor Spotts on Tuesday. This was really helpful. We basically talked about the very start of the project, and how we have gotten to where we are today. Then we focused on our Brand Strategy memo.

It is interesting to think about where we were 15 weeks ago. We were asked to write down a couple solutions to bugs, and then mine was picked to be worked on. This was my idea, yet I am a business major? Since when to business majors come up with innovative ideas? There is a negative connotation that business people are worthless in this smart project. Engineers feel as though they are superior, yet I practically do all of the work, hold my team together, and came up the idea for the project.. that is extremely frustrating. For example, one of my engineers actually asked me what the starting salary is for an accountant. When I told him the number, he was appalled that I would be making less than him in my first year than a brilliant, successful, and godlike engineer. I'm sorry. I am going off on a tangent with my rant about the engineers. And you might be thinking.. Mallory! How could you post that on your blog? What if one of the engineers saw that!? Well, I guarantee they won't. Wanna know how I know that? Because this is a business activity, and they have been taught not to associate with anything that "business" people work on. They are in for a rude awakening when it comes to the real world..

The problem with the mentality of these engineers is that they only view value as a tangible aspect of a product. They automatically think of a product as a piece of machinery rather than a solution to a pain-point. Yes, they are both. But it would be convenient for business and engineering to come together in unity. We should work as partners, not as opponents. In the future, I am aware that I will have to be working with researchers, scientists and engineers. This is just the beginning. The relationship does not end after this smart project. Somehow though, and maybe I am biased, but I feel as though I appreciate the engineers way more than they appreciate me. We had to do CATME surveys, and I thought that the rankings from my team members were interesting. I viewed them a long time ago, and was quite shocked. Here I am, working my butt off for this project, and I am getting ranked "2" for work ethic and initiative. Yeah, that's false. I did not need a survey to tell me that.

On the other hand, I depend on the engineers for the technical aspect of this project. What people may not know about me, is that I actually LOVE learning. Yeah, call me a huge nerd, whatever. I love it. I think that the more knowledge you have, the better! Why not learn about the wiring that engineers are doing?? Do I want to major in it? Absolutely not. Do I want to be quizzed on it? No thank you. But, would I like to learn? Absolutely. However, the engineers would respond with "We are just going to work on engineer stuff while you business people work on whatever you're doing."

Yeah, they really tick me off sometimes. I am not worthless, and when it comes to the expo in the AHLC, I will prove that to them. Mike and Noah sent me a memo about the wiring of the system. 

It said:

Wiring: The active components of the circuit include LEDs, a fingerprint scanner, 2 RF transceiver, a gaseous ethanol sensor, and 2 Arduino boards. The LEDs will be wired to one Arduino in an array such that one will illuminate based upon the data transmitted by the RF transceiver. The resistors will be wired with a 5V input from a digital pin, a 220-ohm resistor, and then to ground. All of the following parts, excluding the transceiver which is wired to the aforementioned Arduino, will be wired to the primary Arduino board. The fingerprint scanner will be wired to ground and a 5V Vcc, the two other pins of the fingerprint scanner will be wired to Tx and Rx ports of the Arduino using 1k and 560-ohm resistors as a voltage divider. The voltage divider is required because the Arduino ports are 5V Tx and Rx while the Tx and Rx ports on the fingerprint scanner are 3.3V. The RF transceiver will be wired to ground, a 5V Vcc, and 2 digital pins. The 2 digital pins are MISO and MOSI for the wireless communication protocols (SPI). The gaseous ethanol sensor will have 3 pins, all 3 being on the same side, wired to a 5V input. On the opposing side of the sensor the top and bottom pins will be wired to ground with the middle pin being wired to an analog pin on the Arduino. Links to all datasheets will be included in the appendix.

What does any of that mean!? I do not know! I feel like I do not have a brain readng the first sentence, but I would like to know. That is the difference between those in business and those in engineers. We want to learn, and they want to just work on the technical stuff. Now, go ahead and tell me that I am being stereotypical, but this is my personal experience with those engineers. Ugh the word engineers literally makes me want to go to bed, but I still give them the time of day when they ask. 

The Brand Strategy Memo proved why the business people matter. We need to form a pitch for potential investors at the AHLC, but if the engineers open their mouth about the technical aspect.. what is going to happen!? They will fall asleep! 

How potential investors will view these engineers if they don't start learning the importance of marketing!


People want to hear about the value of a product, not the wiring. They want to hear why they need it, why we matter, why they should not search for alternatives, why they would benefit from it... the list goes on! The problem is trying to get all of that information into a 90 second pitch! That is why we need a script.

So, embarassing moment: I fell down the stairs Tuesday night. That is why I am not going to be in class on Thursday, and why I will be on crutches. 

But, you bounce back. And here I am, working on my marketing blog. I am such a champ. Anyways, back to why us business people are actually relevant in this world.. despite some negative connotations with the word business. 

The brand strategy memo was helpful because it brought together everything we have been talking about, and compiled it into one file. I enjoyed doing it. The whole thing? Yeah it would have been nice if my team participated more but what are you going to do?! I am not going to defend them anymore because it is toward the end of the semester, I am stressed, I am freaking out, and I am trying not to drown in my schoolwork right now. And it's not like it wasn't obvious already... 

This is the end component of the brand strategy memo that I want to discuss on my blog: 

Brand Name: OK2DRIVE

Why  the brand name, “OK2DRIVE”? 

A great name can create buzz, position you as a true leader and innovator, and reinforce your value proposition in a word or two. That’s powerful. It can convey a culture or a position, and differentiate a company, product or service from the rest of the market. Our company is attempting to appear to be more creative and better at finding a name that stands out from the competition. Additionally, it demonstrates the overall goal of our product, which is to find out if a person is actually okay to operate a motor vehicle.

Brand Essence

Brand essence is the “heart and soul” of the brand, its timeless quality, expressed as “adjective, adjective, noun.” Some people refer to the brand essence as the brand mantra, while for others, the brand’s mantra is synonymous with the brand’s tagline or slogan. A process called “laddering” is often used to uncover the essence of a brand. Laddering is based on the notion that brand meaning can be deepened by examining progressively more abstract implications of a brand’s features. The bottom rung of the ladder represents the starting point, which is usually an attribute. The branding essence for OK2DRIVE is its ability to promote safety and security on the roads for drivers in your area. To elaborate, it is a purposeful tool to protect alcohol consumers, as well as innocent victims, from getting involved in, or causing, drinking and driving accidents, as well as to decrease the fatalities caused by this misdemeanor.

Characteristics:

· Caring, Thoughtful, Considerate, Nurturing

· Safe & Protective

· empathetic/sympathetic

· Passionate

· Authentic

· Determined

· Leadership

· Quality-Driven

· Inspirational/ Life-changing

· Successful

Brand Voice

Defining our brand personality, or brand voice, gives us a better idea of how we should face the user. It elucidates what the voice is telling the story. Keep this idea of brand voice close to hear. This will help with making that crucial translation from “robot speak” to human. A well-defined voice impacts the different stages of your user’s experience with the product and becomes an essential asset for sales collateral, social channels, and even customer support.

Voice Characteristic	Description	Do	Don’t
Caring, Thoughtful, Considerate, Nurturing	We, as the OK2DRIVE team, are concerned about drinking and driving occurrences. We want to make provisions to this issue and look out for the overall well-being of society.	-Provide examples of what could happen if drinking and driving continues Ex: Katie Flynn -Use words like greater good, well-being -Treat each investor as if you were talking to the family of a victim to this horrible action	-Do not blandly approach scenarios -Do not downplay any sort of fatality caused by drinking and drinking
Safe & Protective	We want to keep the roads safe for drivers.	-Use words such as death, accident, fatality -Bold terms to give off seriousness of product	-Do not get too graphic to disturb potential investors
Empathetic/Sympathetic	We try relating to the feelings, thoughts, or attitudes of those who have been negatively impacted by drinking and driving.	-Make sure to remain sensitive of each person -Get your point across, but be mindful of future reactions	-Do not assume about  any investor’s background, for you never know if they had a loved one impacted by drinking and driving
Passionate	We are passionate about stopping drinking and driving fatalities.	-Strong verbs -Trendsetters -High achievement ranking -Make them want to join your movement	-Do not go over the top -Do not scare the investors by how passionate you are (Make them relate to your passion)
Authentic	We are authentic with our actions. We genuinely care about the greater good of society.	-Form a relationship between who you are pitching to and yourself -Establish Credibility	-Do not assume that everyone has the same intentions as you (explain yourself)
Determined	We are determined to make drinking and driving accidents an issue of the past.	-Set goals and explain those goals to others -Show them your outlook	-Do not force them into believing something they do not believe in, for persuasion is different than forcing
Leadership	We want to set a precedent for future generations.	-Lead by example -Show them the dangers of drinking and driving -Take control	-Do not be too demanding, remain calm & collected with your ideas and how you express them
Quality-Driven	We want to make sure that our product is the best it can be.	-Make sure it solves a pain-point -Double check operations -Frequently check in with users and ask about issues and complications (if any)	-Do not abandon your uses after they purchase the product -Do not settle for anything but the best
Inspirational, Life-Changing	We want to change the world with our product.	-Make others envision how great the world will be with your product                 -Make them want to help                  -Make them want to participate	-Do not be cheesy     -Inspirational does not take much effort on the communicators end- it is more of a response from the audience after you have made your pitch
Successful	Make sure that the product works properly, does what it is supposed to, and helps solve a problem for our target market.	-Walk the walk -Prove why you are relevant -Make people want to buy the product	-Don’t just talk the talk -Don’t make it an option for people to drink and drive anymore!

Promise

A brand promise is the statement that you make to customers that identifies what they should expect for all interactions with your people, products, services and company. It is often associated with the company name and/or logo. We promise to provide our target customers with an ability to get home safe. We promise to provide our target market with a way to keep their businesses out of liability and legal troubles, while also promoting safety for their patrons. Safety is so important, and that is why we are trying to provide it with this product. No one should drink and drive, for it causes accidents when there are multiple alternatives to this heinous action. We will make sure that you are OK to drive, and if you aren’t, we will find someone to drive you home that is. We promise not to let the temptation to operate a vehicle while being above the legal limit overcome you. It will not be an option for you to drink and drive with our product. 

I did take that directly from my memo, but I figured it was important to share. Branding is a huge aspect and component of the success behind a company and product. It shows the value of your product to future investors. I think that this was a good exercise to do, and I enjoyed doing it. Assignments actually can be fun.. they do not have to be boring! 

Now its time to convince people. We have to work on our script of the pitch. Our pitch will contain all the aspects of our brand strategy memo. 

Marketing Pitch Script Draft 1

Define who you are:

Are you aware that 28 people die per day in the United States from drunk driving? That is one death every 52 minutes. We at OK2DRIVE can significantly decrease these numbers with our Breathalyzer Activated Lockers.

Value Proposition:

OK2DRIVE presents to you a way to enforce safety on the roads in your neighborhood. Breathalyzer activated lockers will be set up in restaurants, bars, and event venues. Upon arrival, patrons are required to hand in their car keys by walking over to the quad stand, scanning their fingerprint, and then will automatically be assigned to an available locker to put their car keys into. If the operator were to fail the breathalyzer test when wanting to leave the premises, information regarding how they would obtain their car keys at a time when they are legally sober will appear. Information on how to return home that night will also be displayed.  Our product would prevent liabilities from being traced back to the bar, keep the roads safer, and improve the image of any bar or restaurant. Our initial market consists of approximately 915 bars in Massachusetts alone, and we are looking to expand from there.

What we want from this person:

We are also looking for investors for our product. If you have any questions, here is our contact information(hand them business card)

This is just the beginning to our script. Of course it explains some of the technical aspects because it is brand new. They won't understand the product if we do not explain some of the features, but then we immediately discuss the benefits.  You can see that the business people are not completely worthless, for we help market the engineers creation

...Even though it was my idea, but who's complaining?

SHARK PLAN ASSIGNMENT

For my shark plan assignment, I decided to research Kodiak Cakes. Kodiak Cakes knew that they had a product that was like no other, so they set a goal, and tried their best to stay on target. Joel & Cameron went on Shark Tank and asked for 500k expecting to do 5 million in sales in the coming year.  Those are impressive numbers in the Shark Tank, BUT that wasn’t the whole story. Joel had been selling this product on and off since he was a little kid.

 Kodiak Cakes main competitor is Aunt Jemima, as their company has a rich history spanning over 120 years. What is their competitive advantage? Cost. Kodiak Cakes is double the amount of the price of Aunt Jemima. In order words, Aunt Jemima has a 50% cost advantage over Kodiak Cakes. That is very difficult to compete with, and is why they really need to make their product an offer that customers cannot refuse. On Shark Tank, Robert Herjavec asked Joel & Cameron, “Do you think that an average mom out there is going to walk into a store and pay twice as much for a premium product?” Their response: “They are, though.”

Sales are increasing, and they have grown (at the time of pitching to Shark Tank) by 40-50%. Their cost to make the product is $1.65. Their selling price is an average of $3.02. People on Shark Tank believe that they will not compete against the well known brands for pancake and waffle mix. Joel and Cameron say that their customers love the brand, but what brand is it? They are not known enough, and that is what this marketing plan is trying to fix. There are 2 monster competitors in this space, so measuring the risk when measuring the value of this business is quite significant. Big competitors will not be stopped from taking the shelf space that Kodiak Cakes has in Target. Target and Costco have to have competition for the big brands like Aunt Jemima by buying Kodiak Cakes products. Even if they temporarily put the small competition out of business, There needs to be a second product and a competitor to keep the “big guys” honest. But, now.. let’s make Kodiak Cakes the big guys, no matter how hard it will be.

Kodiak Cakes can sell half as many products as the big competitors and still generate a higher margin and more revenue for the store that the products are placed in. At the time of their shark tank pitch, they were making $500,000. Why are they there asking for money? They want to spend a huge chunk of change on slotting fees. A slotting fee, slotting allowance, pay-to-stay, or fixed trade spending is a fee charged to produce companies or manufacturers by supermarket distributors (retailers) in order to have their product placed on their shelves. The fee varies greatly depending on the product, manufacturer, and market conditions. They want to buy into big stores like Target, and Costco, and generate a return off that. At the tie of their pitch to the sharks, they had been doing that for 17 years and they get a return off the profits. They plan to build their business to $20 million in 4 years. Kodiak Cakes does not want to be a commodity pancake business, they want to be known as a branded business.

They plan to sell the business for 1-1.5 times revenue. They are hoping for $30 million. Research investors predict that this will become a reality for Kodiak Cakes. Sharks believed that they should give them the $500,000 they were looking for, but for much more equity. Sharks requested 20-35% equity instead of the 10% they desired. Sharks complimented them for their execution and efficiency. Currently, they have had a great run, but will that continue? Some of the sharks are not sure, which is why 3/5 of the sharks went out. Their is a belief that they will have some macro challenges. But, Kevin decided to take back his “out status.” Barbara said that she wants another shark to join in with her and she wants 20%. When Kevin joins Barbara, they decide to offer $500,000 for 25% equity each. Robert, soloist, offers $500,000 for 35% equity.

What do they decide to do? They were very appreciative of the offers, and thanked the sharks for their interest and the opportunity to be on the show, but they feel the value of their business is way beyond what they said it was. Therefore, they stand by their product, and declined the offers. Bold move. The two sharks that were out complimented them for their intelligence, and those two sharks, Mark and Lori, believed that they made the right call. When they were out of the room, and after they declined the offers, Kevin stated that they could not succeed in their $5 million evaluation of their business, but Mark Cuban does believe that they are worth that. Why didn’t he open up his mouth in the first place? He would have helped them a lot. Commodity or brand? We will see..

Now I will use this information in my shark plan assignment, as well as look at the shark tank update podcast, IBIS World Industry report, kodiakcakes.com.. and anything else I can find!