Prosjekt, Matjakt

Investor Proposal

             Investor Proposal       Sindre Holmene Torgersen, Tadas Otterstein Innhold

Executive Summary

Ever ******* and found a cheaper ***** for *** same item the next day? Well “Matjakt” will **** ***** item in the store chain ************* allowing you to search for any item in our *** and the app gives you the ******** ** where to buy it.    With our idea and your customers we **** provide **** **** a solution to save money and earn coupons. This will allow you to keep ******* customers happy and bring in more customers to try it out.    Norgesgruppen, currently has 3.1 million customers, that’s 60% of the Norwegian population *** is the biggest ******* store chain in Norway. and if we can get a fraction of those customers to sign up it would *** up in a profit. When *** ******* ** nearing ********** we will start marketing it, and ****** people aware that soon they can use an app which will make buying ********* easier   Our team consists of 4 key players, our app designers, Hå**** Furø Pettersen, Christopher Brokhaug Romnæs, Sindre and Tadas who all attended the same school at the same time.    *** business model is to make money with ads and ******* *********** in the app. We expect ** need 460 *** dollars for this entire project to be completed. With a CPM of 3 dollars and 100 000 active users we ****** to **** our funding back within 144 **** **** the subscriptions *** google ads. That’s only with 100 000 active users ** the 3 100 000 million active customers.    We **** offer *** a 10% equity ** our company  **** means *** will get back 46 000$ a month +- whatever we  make from our banner/video ads and premium subscriptions.    

******* Presentation

  Information Technology Students, experts in design and coding. We all grew up with computers, so ** have at least 15 years of ********** ** using a computer. We know *** to use them *** therefore know exactly what ********* we need ** ***** to get our project done as efficiently and cheaply as possible.    achievements:  upcoming bachelor students in information technology and in design.   We *** ******* upcoming bachelor students in Information Technology. We specialize in *********** systems and information technology and design. We all talk close to fluently in english so we **** no problems working with almost everyone in *** world.    references:  Stig Johansen is our professor and knows **** we are experts in technology and design, he is also teaching us ** *** we create a **** investor proposal. Stig is **** a higher up ** the Pitney Bowes Company.                  

Product Description

  Our product is an app that will **** you the prices of any item in any of norgesgruppen stores.The app will have functionalities like map(showing where closest norgesgruppen store is).   Imagine you are going ** make a ****** for food *** and want to buy the cheapest Jarlsberg. You need to find which store who has the cheapest Jarlsberg. You can use **** app and find the ******** Jarlsberg ** the market. You can filter out what type of food ***** you want to buy, for instance Jarlsberg. Then you can easily **** out which store who has the cheapest Jarlsberg.    Why is our *** unique?      You can make a shopping list to write down which item you need to buy.       You *** get the ********* to the closest store who has the cheapest price on different items     The problem we are trying to solve is that you ********* buy and item ** a store, and then you *** later that the same item you **** bought is cheaper at another store. *** that *** store actually have the item in stock, the **** annoying thing ***** grocery shopping ** when you **** to a store, and they are all out of some of the ***** you want, so you ******** need to go to another store afterall.                  


  The simple ****** ** Conceptualisation, it is a shopping app that **** make the user not even need to think where the groceries are, and always tell you *** much each item costs and summarising *** price so you know exactly how much you **** use it. the app will also come with some special features which **** reward you for simply using the application.     We want an app that enhances the shopping experience. It is a phone application that in itself will make buying ********* easier. the *** has several goals, the app must be designed in **** a way that does not hinder the **** from ********** the ******** task. The ***** primary function needs ** be finding accuracy of the groceries wanted, so if the *** is used, the finding of the items needs to be so easy that the user doesn't **** **** to ***** when finding *** groceries.        The features of the app will list every store that is a part of Norgesgruppen, *** show every grocery that is ** stock at *** selected store. the items also will have a clear description ** how much *** selected grocery costs and ***** the grocery ** located. You can also make a shopping list before you enter the store, ** be aware **** they have the ******* **** you want.   image    This is a rough sketch of what the app would look like. While it ** just a sketch, this could quite accurately ********** on **** *** app ***** **** like. the app starts **** the first screen with *** options, either ****** for a store or choose a map which will show you every store within a selected area. after ********* a store, *** user can ****** make a shopping list ***** will show you every product and **** you recommend groceries which is the **** type of ******* **** cheaper.      The map ******* will ask *** your location, but it is optional and the feature will still work, but the customer would **** to ****** up their city to find the stores relevant to the user.If *** want to *** direction to the closest store, you’** need to allow position. The app ***** to know where you are ** show the shortest direction.  Even if the user ******* the users information, *** *** will respect the ***** privacy and not send the information to anyone. Another reason why we cannot take any private *********** ** that it would be *** costly to store it, and it is not violating privacy without permission ***** not ** legal and that ** a risk ** are not willing to take.   The user will also *** an option in making an account **** this application. This will let the **** collect and scan coupons to *** some ***** at ******* stores. it would also cloud save ******** history and collected coupons.   There will be *** versions of this application, the **** and premium version. the free version will have every feature, but the ******* will add **** additional goodies such ** additional coupons and will remove ads.   *** ******* version would cost five ******* a month. Since the premium version is behind a paywall, we will design this feature in such a way that makes it enticing for the user and beneficial for us.      

Business case plan

  image    ***** there is ** example of ***** proposition canvas. The ***** Proposition Canvas ** a tool which can help ensure that a product or ******* is ********** around what the customer values and needs.    

Pains what's annoying to *** customers

1.    The price difference for the same groceries 2.    If it actually ** in ***** or not 3.    Drive to a store that don’t have the groceries that you want image  Today people don't know the price differences live. What we ***** is a solution to a problem to  a lot of people have. Currently, if you can not find the cheapest price of an item you just have to go to any grocery. What we offer is a live price online in our app that will tell you where and what to find it. ** will also show you if it’s in stock and show *** where to *** it on a map. If it actually is in stock or not Imagine walking to the grocery store for a specific item, but you ****** find it.     

Gains what the customer wants to achieve      

image  Efficient shopping: The customer wants the shopping of ********* to be more efficient, and that they don't need to go to different ****** to get difference items, because *** store doesn't have the **** they were looking for.  

pick out the cheapest/ *** **** fitting groceries

*** ******** wants to find the groceries that are cheaper so they don't need to over pay for an item **** they want. 

Find the groceries fast

Find what groceries the different stores has so they would find out what stores they need to go to, or **** better that they find a store they can buy all the items they are going to get, so they don't **** to go into multiple stores            

Products and services


***** every ******* ******** ** a store

The app will **** every grocery item in *** store, ** you can be able to find out if stores have the item you are after. **** will make it easier for *** as a customer so you can **** go to one store, and not multiple stores.

A shopping list can ** created

In *** app you can make a ******** list, this makes it easier for you too shop ******* you don't need to use paper ** write a shopping list on, and *** do not need to use another app for a shopping list as well.

The app **** help you find *** ****** the ******* groceries

You will get **** from the app finding the ********* you **** and the groceries you need so the shopping will be easier and faster for the customer.          

Pain Relievers


Cuts down expenses

The *** our app is designed to work, is ******* *** optimal groceries for *** user, so if a **** finds it annoying to pay for ********* which they know there are cheaper variants off, this app will **** the cheapest selected grocery. for example: the user wants to buy a pizza, but when he **** to *** pizza storage the user *** be confused when he sees how many types of pizza there is. if the user wants to **** the ******** **** of pizza, *** user can just use *** app and the *** will show every variant of pizza in *** store and sort it by price. the user would save time and money just ** searching the word pizza in our app.   

Makes shopping more efficient

** reality ************* has already ***** ***** of apps but they ********** to their ***** respectively. for example ************* has ** app made for Spar but that app will *** work on **** 1000. This **** customers discouraged from using them ******* of their limitations. **** Norgesgruppen app we combine every store in one app, this would remove that restriction and make it more convenient for a user to own a single app that can be used on ***** store connected to Norgesgruppen.  The coupon feature will also work on every store within Norgesgruppen, to make it convenient for every user, ** they *** traveling ** buying groceries in a store they ******* do not visit. This relieves a big pain in making shopping more efficient.    
Rewards you for shopping at *** stores
The *** **** also reward you for using *** app when buying *** using *** store. The user can scan in their receipt and get a coupon that is ***** off ** what you purchase. for example, if the user is a ****** that buys cookies frequently, he or *** may get a ****** that will reduce the price of the next purchase ** cookies. ***** rewards could **** get better or more frequent ** the user gets the premium version of the app, which ** turn will lead to better ***** for *** user of the app. The more of the use ** the app the better deals up to a cap.  

Go-to-****** strategy

image    In the beginning, it is important to gain customers. If we don’t get enough users, ** would ** high cost per customer. High **** per customer equals less profit. After more customers **** ******* using the app to ******* groceries, the cost per customer falls. ***** a lot ** people have started using the app, *** cost per ******** are lowest. Low cost per customer equals highest profit. After a **** time at the peak, it’s going down again. *** *** **** customers, maybe to another app. The **** per ******** is still low, but the profit falls.      


  *** is a term meaning go-to-****** strategy. it is an action plan that specifies how our company will get to our targeted group. An ********* part to keep in mind is that since our target group ** 60% of norway's population, ** **** to keep in **** **** we must therefore be appealing to every kind of person.    *** target group is very broad ******* ** the nature of our application. Our company's project is a shopping app, so everyone **** buys groceries must ** included. what this tells us is that we need to look like our product will benefit a user.   *** buyer of our product must be Norgesgruppen because of *** nature of this application.    Due to the nature of the app, Norgesgruppen **** be a buyer or at ***** be a partner, since we need a lot ** information about the stores, inventory of the stores and the prices of the groceries. Norgesgruppen would be a perfect fit to ** a buyer for this application.   Our application would need to be usably for **** because ** need to give incentive to use a mobile app. Applications on the app ***** are usually free but also tend to **** certain parts ** them restricted behind paygates. Our *** would work best if it ** for free initially and we get revenue from ads. we would also have a premium feature which gives some bonuses for 5 ******* a month.    Marketing of this *** is important. since it is a mobile app, it would make sense to advertise it on social ***** and ***** media applications. Since the *** ** ******** towards Norwegians ** could also advertise it towards Norwegians, maybe on A priority in design should be how market the app towards our target market. *** target group ** so broad we need to ** creative in how we can appeal to **** ***** of people at once.   


Apps **** increased in download increased through our time.  image  We’** seeing growth ** *** ********* each year. This ***** will continue in the coming years as well.   Last year, ***** were more than 205 billion app downloads. That’s a 15% increase from the year prior.   ** *** can *** from *** graph, experts predict that there will be a 25% increase in global app downloads between 2018 and 2022. So we’re not expecting ** see a steady 15% ****** rate year over year like ** did from 2017 ** 2018.     When you’re creating a ****** app, one of the first things you need to figure out is your monetization strategy. That’s why you’re building an app in the first place, right? To make money.Charging for *** downloads ***** be something that’s crossed your mind. But will ****** download your app if you make them pay for it? Let’s take a look at *** number of free vs. paid app downloads.  image  With this knowledge,that means at least  2% of the current user base will buy the premium subscription.  


Assuming that ***** **** has 10 workers each, working from 08:00  to 18:00  from monday to friday. People that are done early can begin ******* on other projects. Let us also assume that the workers *** paid *** how many hours they work. if everything goes as planned the approximate ***** will be shown here. Each worker gets 26$ for every hour 26$/h, *** there are 10 people on **** task. (26$ * Amounts = ****** Cost)      
Task Detail Length Amounts Approx Cost
A High level spec 4W 200 hrs 52,000$
B Backend developing 4W 400 hrs 104,000$
C Design 2W 150 hrs 39,000$
D Front end developing 6W 500 hrs 130,000$
E Webserver 1W 20 hrs 5200$
F Backup 1W 20 hrs 5200$
G Database 2W 100 hrs 26,000$
H Launch marketing 2W 100 hrs 26,000$
I Publishing 2W 100 hrs 26,000$
  The approximated cost for the work would end up with 413,400$   We **** need ** get a place to **** and work ********* such. we will need an office with power, (********** with a kitchen) with a capacity of 10+ people. we would also need to get equipment *** them, that ***** be  computers, monitors, keyboards, **** and internet connection.  if the office does not have furniture we would also need to buy/rent furniture **** as office desks and chairs. if we ****** ** work in Oslo *** ******* office *** 10 people would **** us 2,190$ for a month.   now that ** have *** office **** ***** and furniture we need equipment. and to rent *** 10 computers we found a website that offers such a service and *** our requirements it ***** cost us 436.90$ for a month. if we include 10 copies of Office 365 the price a ***** increases to 2069.80$ a month.  looking at our graph it seems that our critical plan takes about 6 months. ** we are cautious *** not assume that everything will go as planned ** add another 2 months. that ***** mean **** *** ***** would be   (2,190$ + 2069.80$) * 8 = 34,000$      
Equipment Approx Cost Summary
Office in Oslo 2,190$ a month one office that fits 10 people
10 Computers 217.36$ a month  Accessories
10 Screens 108.13$ a month  Accessories
10 Pc Mice 20.75$ a month  Accessories
10 Keyboards 37.14$ a month  Accessories
10 Office 365 packages 1632.90$ a month this skyrockets the price up.
10 Hardware upgrades 139.81$ a month  
************* fees
1081.32$   108.13$ for each computer
Insurance  52.32$  
** TOTAL: 5,319.17$ a month for 8 months: 42,553.36$


  We ****** to **** *** revenue from ads and premium memberships.  We ****** to **** a CPM(cost per thousand impressions) of 3 dollars. Using an ad revenue calculator ** can ******** an earning of 3 thousand dollars a *** if we have 100 000 active users which will help us get the money back within 153 days. Our subscription based service will cost ***** dollars a month. Using statistics **** ** found  showed that 2 % of the market purchases an app , we did some ***** and 2% of 100 000 users **** bring in 14 000 ******* ******* For us to be **** to make *** project, we would ***** need 460 000 dollars, were we will offer you a 10% equity in our company

********* time for revenue back

With everything summed up, it will cost us approximately 460 000 dollars. ***** our revenue model we plan on ******* it **** within 153.3 days if we have 100 000 active users with a *** plan of 3 dollars. Our 2 % of *** premium sales will result ** 14 *** dollars per month. We also have an opportunity to make great money **** our banner/video **** etc.   In this estimate we **** use ****** ads, if we use other sources ** ads like video *** and ******* from other parties, like for example other apps  companies that offers ** money to ********* their product we *** drastically increase our revenue from ad revenue.    What we keep in mind is that too many ads will ******* ********** users **** using the app *** will look bad for Norgesgruppen and ourself.          


  We have found **** the risks of the project is :   1.    Not ****** users 2.    Tight time frame. The deadline doesn’t allow for any force majeure circumstances 3.    Technical risks: i.e. part of the platform where you’re planning on setting up your website may be an open source and may not be updated. 4.    Collect the data. ** **** to get access to the Database 5.    Server problems 6.    Lack ** security    image 
Risk Description Risk level
Not enough users If the *** don’t get enough users, the cost would be higher than revenue High
Tight timeframe The deadline doesn’t allow for any force majeure circumstances Medium
Technical risks Part of the platform ***** you’re planning ** setting up your website may be an open source *** may *** be updated Medium
Collect *** data We need to get access to the database. ** we don’t access to the database, we need to collect the prices by ourselves High
Server problems ** could *** problems with *** server, we may **** users Medium
Lack of security We **** to have high security because of GDPR High

How we will manage the risks


Not enough users

  *** **** way to get new users ** to **** good marketing, *** marketing to the people that might need our app the most. Even though marketing in ****** *** also be a risk, because if the ********* is not done good enough, we might not *** new users from it.

Collect the data

  ** need ** contact norgesgruppen early in the process ** ask if it's possible for ** to get ****** to their database so ** can get *** the prices. If they choose ** say no, we have the possibility of adding a ******** to the app which does ** users of the app can update prices on the app, or we would need to collect the prices ourself.   

Server problems

  It could come up some problems with the servers, either hardware *********** ** ******** malfunction. This can do so we lose users and can also lose revenue.This *** ** manageable if we have ****** that can work on the servers and ***** if they are alright at *** times. 
Lack of security
  Because of **** it is strict **** ***** app that have database **** contains information ** people in it, have a **** security policy, and that ** ****** certain rules.  

Possible exits


Liquidation of the company 

  Sell *** assets. Pay *** money we have left to all creditors *** **** ** we **** ***** left, pay back the money ** *** from *** funders to minimize the money loss.  

Sell the business

  ** can sell the business to other companies preferably norgesgruppen, as **** app would be better for **** to have then to other company’s. It ** also possible ** sell *** business to other managers ** employees of the company. 


  ***** Krug (2014) Don’t Make Me Think, Revisited (while this book is more in designing websites it proved useful in coming up **** a ****** to our application) Ad revenue calculator: Most popular **** in Norway:  (office costs: *** that as the example),%200379%2***** %20Norge    Renting out 10 computers with screens, mice, *** ********* for each computer.    ********* NOK to USD with this website:,950