Cost Structure - OEP Report
- 1. Cost Structure Analysis OEP-Venture Lab 2012
- 2. Contents 1. Product Description 2. Corporate Activities 3. Cost Structure 4. Cost Estimations
- 3. The Idea - Fashion App Our Vision is to combine the advantages of online shopping and retail stores shopping experiences in one product. Our Product "Your fashion app" is a free service for young women to inform themselves about actual fashion trends and to receive a valuable and personalized shopping advice.
- 4. Benefits of our product Fashion conscious Brands / Retail Stores women: benefits: ● entertain with new fashion ● access to a target group impressions for free ● high quality environment for ● valuable and personalised branding shopping advice ● high customer attention to ● articles can be bought and presented message tried on in a local shop ● highly personalised and ● save money by getting latest localized ad targeting coupons and find local deals ● new customer acquisition and ● have an overview of local activation of existing shops customers
- 5. Contents 1. Product Description 2. Corporate Activities 3. Cost Structure 4. Cost Estimations
- 6. Key Activities Management HR, Finance, IR etc. B2B Product B2C Advertiser Fashion development and Consumer Marketing & Editorial operations Marketing Sales Acquire, Acquire Creation of fashion retain and business trend topics, style Improve and operate activate customer, selection, composing product applications consumers generate sales
- 7. Corporate Activities: Marketing ● B2C "Consumer" Marketing B2C Marketing includes all activities to acquire, retain and activate end-users of our fashion app. e.g. online marketing, social media activities and email marketing ● B2B "Advertiser" Marketing & Sales B2B Advertiser Marketing includes all activities to announce our product for marketing professionals of fashion brands, online and local retailers, acquire new advertisers and engage them to advertise, link stores and products with our product.
- 8. Corporate Activities: Editorial ● Editorial Constantly creation of trend topcis and according trend styles constitute the value of our product: The source of inspiration in fashion. This will include ○ Surveillance of global and local fashion trends ○ Research of styles available in the market ○ Creation of trend topics and accumulation of styles from online ressources ○ Composition, layout and publishing digital asset
- 9. Corporate Activities: Product Dev. ● Product development The product development will establish new features within the application for consumers, advertisers and editors to make it more valuable, usable and feasible ○ Design user interface ○ Create visual design ○ Design processes, objects and algorithmen ○ Implement features and functions ○ Integration of external interfaces ● Product operations Operations will include all activities and costs for operating the service and maintaining it.
- 10. Contents 1. Product Description 2. Corporate Activities 3. Cost Structure 4. Cost Estimations
- 11. Cost structure Process Activity Unit based on B2C Online Marketing / Budget (performance oriented) performance + Consumer App Marketing + internal resource (Marketing Manager) effort Marketing Social Media internal resource (Social Media Manager) effort eMail Marketing internal resource (Marketing Manager) effort B2B B2B Marketing internal resource effort Advertiser + budget (fixed) fixed budget Marketing + partner cooperation (commision) payoff & Sales B2B Sales internal resource (Sales manager) effort / payoff Editorial Trend topic internal/external resource (Trend scout) effort creation + content costs (license) license Partner linkage internal/external resource (Partner manager) effort
- 12. Cost structure Process Activity Unit based on Product Product internal resource (Product Manager) effort develop- Management ment & operations Visual Design internal resource (Visual Designer) effort Implementation internal / external resource (Developer) effort Operations internal / external resource (Operator) effort, + hosting expenses traffic Manage- Management, HR, internal resource (Managing Director) effort ment IR, Finance etc.
- 13. Contents 1. Product Description 2. Corporate Activities 3. Cost Structure 4. Cost Estimations
- 14. Cost estimations: Editorial Editorial: ● Number of trend topics / year: 650 ● Number of styles / trend topic: between 20 and 60 styles, average 40 ● Effort for style selection: between 2 and 7 minutes, average 5 minutes ● Effort for trend creation including composition and editing: between 4 hours and 4 day, average 18 hours ● Total effort for editorial: 2.145 hours / year (268 working days, 1,2 FTE) ● Editors hourly rate: between 13€ and 70€, average 42€ ● Total cost for editorial: 90.000 € / year
- 15. Cost estimations: Product Dev. Product development: ● Product Manager including User Interface Design: between 1 and 1,5 people, average 1,3 FTE ● Visual Designer: between 0,5 and 1 people, average 0,75 FTE ● Developer: between 1 and 3 people, average 2 FTE Position Effort Calc. Resources Salary / person Full costs (incl. (2-3 year charges) experience) Product Manager 1 - 1,5 FTE 1,3 FTE 41,5 T€ 67,5 T€ Visual Designer 0,5 - 1 FTE 0,75 FTE 39,5 T€ 38,5 T€ Developer 1 - 3 FTE 2 FTE 38,5 T€ 100 T€ Total 206 T€
- 16. Further costs B2C Marketing, B2B Marketing & Sales, Management costs would be estimated in two weeks based on further OEP analysis.
- 17. Thank you and contact us for more information! contact@fashion-lab.de