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Group 17:Keisha Rampersaud, Scott Walter
Maya Feldberg, Jenna Marie Ducut
AGENDA• Recommendation• Consumer Profiles• Competitors• Pillars of Success• Implementation• Risks• Expected Results
Recommendation
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
Implement New VR
Technology
Update Current
CurriculumImprove
Divisional Communic
ation
Develop Marketing
Plan
Recommendation
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
Implement New VR
Technology
Update Current
CurriculumImprove
Divisional Communic
ation
Develop Marketing
Plan
Recommendation
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
Implement New VR
Technology
Update Current
CurriculumImprove
Divisional Communic
ation
Develop Marketing
Plan
Recommendation
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
Implement New VR
Technology
Update Current
CurriculumImprove
Divisional Communic
ation
Develop Marketing
Plan
Target
Offering
CAASCO
ADSN Curriculum
Driving Schools With/Without
MTO Curriculum
North York Driving School
Parents of Novice Drivers
Corporates
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
Target
Offering
CAASCO
ADSN Curriculum
Driving Schools With/Without
MTO Curriculum
North York Driving School
Parents of Novice Drivers
Corporates
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
• Objective: o Promote road safety
• Value: o Quality of curriculumo Attraction of customerso Meeting classroom
capacityo Making money
Target
Offering
CAASCO
ADSN Curriculum
Driving Schools With/Without
MTO Curriculum
North York Driving School
Parents of Novice Drivers
Corporates
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
• Objective: o Find a driving school
• Value: o Quality of the programo Priceo Locationo Availability of classes
Target
Offering
CAASCO
ADSN Curriculum
Driving Schools With/Without
MTO Curriculum
North York Driving School
Parents of Novice Drivers
Corporates
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
• Objective: o Find a driving education
program that emphasizes on refreshers and employee safety training
• Value: o Quality of the programo Locationo Availability of classes
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
Competitors
Offering
CAASCO
ADSN Curriculum
North York Driving School
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
Competitors
Offering
CAASCO
ADSN Curriculum
North York Driving School
• use of online components• 20 - 10 - 10 format • cut down on in-class time• freed up classroom availability
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
Competitors
Offering
CAASCO
ADSN Curriculum
North York Driving School
• Reputable program and large reach across Ontario
• Competitively priced• Offer a range of course offerings
at different price points
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
Competitors
Offering
CAASCO
ADSN Curriculum
North York Driving School
• Use of simulators• creates a pull in demand for
their service• costly price creates a high
switching for independent driving schools
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
Consistency
SustainabilityDifferentiation
Stay consistent with core values and value proposition
Financial sustainability to achieve break-even in the long run
Differentiate services provided to generate employee and customer
interest
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
INTRODUCTION OF OCULUS RIFT• Virtual Reality Headset• Interactive and highly
realistic
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
THE OCULUS RIFT
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
SHORT TERM (1-2 years)
• Greater coordination
• Hire team of 8• Cost $625,000• E-books• Learning modules
• High school newsletters• Birthday incentives• Cold calls • Pamphlets
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
MID / LONG TERM (3-10 years)
• E-books, online modules, simulation, MTO approval
• Cost $1,000• Market to schools
with and without ADSN
• Additional instructor
• Hire one service manager
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
Imitation of Software
Idle Capacity of Driving
School
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
EXPECTED RESULTS
Consistency
SustainabilityDifferentiation
Recommendation
Consumer Profiles
Competitors
Pillars of Success
Implementation Risks Expected
Results
EXPECTED RESULTS2012 2014 2015 2016 2017 2018 2019 2020 2021 2022
SalesDriver Ed1 261,877 274,971 302,468 332,715 365,986 402,585 442,843 487,128 535,840 546,557 ADSN 2 95,841 109,902 138,124 81,722 - - - - - - New ADSN 3 - - - 110,772 263,442 301,542 328,212 347,262 366,312 385,362 Net Sales 357,718 384,873 440,592 525,209 629,428 704,127 771,055 834,390 902,152 931,919 COGS (172,669) (173,742) (150,000) (154,500) (162,225) (170,336) (178,853) (187,796) (197,186) (207,045) Gross Profit 185,049 211,131 290,592 370,709 467,203 533,791 592,202 646,594 704,967 724,874
ExpensesAdvertising & Promotion4 (23,707) (40,000) (42,000) (44,100) (46,305) (48,620) (51,051) (53,604) (56,284) (59,098) Total Admin. Salaries & Benefits (243,988) (246,428) (248,892) (251,381) (253,895) (296,895) (299,864) (302,862) (305,891) (308,950) Project Expenses5 - (814,330) - - - - - - - - Total General Expenses6 (80,036) (85,050) (85,901) (86,760) (87,627) (88,503) (89,388) (90,282) (91,185) (92,097) Total Expenses (347,731) (1,185,808) (376,793) (382,241) (387,827) (434,019) (440,304) (446,749) (453,360) (460,145)
Operating Income 532,780 (974,677) (86,201) (11,532) 79,376 99,772 151,899 199,845 251,607 264,729 Income Taxes - - - - (15,081) (18,957) (28,861) (37,971) (47,805) (50,299) Net Income 532,780 (974,677) (86,201) (11,532) 64,295 80,815 123,038 161,875 203,801 214,431
Cash Provided BY (Used In)Operating Activites 357,718 384,873 440,592 525,209 629,428 704,127 771,055 834,390 902,152 931,919 Financing Activities (520,400) (331,478) (526,793) (536,741) (550,052) (604,355) (619,157) (634,544) (650,546) (667,190) Investing Activities - (814,330) - - - - - - - - Change in Cash (162,682) (760,935) (86,201) (11,532) 79,376 99,772 151,899 199,845 251,607 264,729 Free Cash Flow (162,682) (923,617) (1,009,818) (1,021,350) (941,973) (842,201) (690,303) (490,457) (238,851) 25,879
1 Driver's Ed Revenue is assumed to grow at a rate of 10% as awareness rises for program grows.2 in 2016 50% of schools have switched to new curriculum, ADSN continues to grow at a rate of 10 schools per year.3 in 2016 50% of schools have switched to new curriculum , ADSN continues to grow at a rate of 10 schools per year, with an increased revenue from $1000 yearly fee for use of software.4 Advertising & Promotion budget will grow at a rate of 5% to reach a larger consumer base.5 See Exhibits 9.1 below for cost breakdown on project.6 General Expenses will drop in 2015 as we replace textbook with ebook. Expenses will increase with consumer base at a rate of 1% each year.
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