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CardSwitch

By: Carla Smith, Mo Jackson, Deborah Kim,

Janelle Estes and Kim Dowing

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Table of Contents Executive Summary……………………………………4-5 Business Concept Marketing and Operations Finances Future Business Description……………………………………6 Concept and Opportunity Business Model Purpose and Mission Background Information and History Industry and Market Analysis…………………………8 Industry Structure Industry Trends Target Market Market Segmentation and Key Market Factors………9-11 Variable and Market Segmentation Chart

Customer Survey Competitive Analysis………………………………………12-14 Direct Competition Indirect Competition Competitive Advantage/Market Share Competitive Analysis Charts SWOT Analysis………………………………………………15-16 Strengths Weaknesses Opportunities Threats Marketing Plan…………………………………………………17-18 Purpose

Market Opportunity Niche Target Market Customer How We Will Enter The Market How We Will Attract And Retain Customers How Costumers Will Be Attracted To Our Product Operations Plan…………………………………………………19-20 Operations Procedures Cost To Produce

Start-up Timeline Legal Requirements Management Team………………………………………………21-25 Responsibilities and Qualifications Chart

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Financial Plan………………………………………………………26-29 Start Up Costs Loan Repayment Schedule Sales Projections Income Statement Cash Flow Statement

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Executive Summary

Business Concept

Many people face a similar problem: They are unable to keep track of their gift cards

and often end up losing them. They get crammed into wallets, purses, or even

misplaced and end up in the trash. CardSwitch is a simple solution to this problem.

An app that keeps and stores all of your gift cards and lets you use them whenever

you go to that store. You can look at what your friends want on their “wish list” and

CardSwitch allows you to virtually send them gift cards. Also, if you receive a gift

card you didn’t want, (maybe grandpa doesn’t know how to shop for you anymore)

you can swap it with another person and receive a gift card that you wish to have.

Cutting back on plastic and staying eco-friendly, CardSwitch is the best solution for

anyone with a gift card problem.

Marketing and Operations

We market to people with app compatible devices and people who have gift cards.

This handy app allows people to swap, store and send gift cards. For our operations

we must first hire an app designer to design our app, then we have to put our app on

all of the different markets, finally we have to have the consumers purchase our app

and store, swap and purchase gift cards.

Finances

Gift Swap will be sold on the app store for 99 cents. With the App and Gift Card

industry rapidly growing, CardSwitch can be expected to strive as a new business. In

two years, CardSwitch is expected to make $58,890.15 in profit. After two years, we

have also paid $6,169.34 off of our initial debt of $51,185. With that being said,

within the next fifteen years we will have paid off all of loans and will no longer be in

debt.

Future

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Our future goals include a variety of different plans. Some of these are: a rise in at

least fifteen or more app downloads a month, possibly increasing the price of our app

to make more revenue, and as our sales grow, we will expand our advertisement

campaign through social media.

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Business Description

Concept and Opportunity

People are always searching for their gift cards and trying to remember where they

put them, while losing your phone is an uncommon occurrence. Now you can store

all of your gift cards on your phone with CardSwitch! Use our app and have all of

your gift cards in one place never to be lost again. Not only does our app have a

place for you to store all of your gift cards if you receive a gift card that you do not

like you can go on our gift card exchange program and exchange your unwanted gift

card for something that you love. We don’t stop there, we also allow you to purchase

gift cards and send them to others.

Business Model

This app starts at 99 cents. Once we have a big enough customer base we will start

offering companies whose gift cards are on our app an opportunity to advertise on

our app.

Purpose and Mission

Our mission is to help people who constantly lose their gift cards and also have

unwanted gift cards. We know from personal experience how difficult it is to keep

track of all of our gift cards and so this app can help anyone and everyone who has

gift cards.

Background Information and History

Our business began with the problem of never knowing where our gift cards are and

when you do know where a gift card is it tends to be a gift card of little or no value to

you. So we came up with CardSwitch to solve this problem. We are currently

programming this app and we would love to make this app fully functional and help

people all across the globe.

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Industry and Market Analysis

Industry Structure

App downloads this year have reached 102 billion in sales. Now that smartphones

have become such a popular industry, app downloads have become vital. The app

industry contains many different apps, which appeal to many ages. CardSwitch fits

into a special demographic due to not many apps meeting the needs of the people

who are frustrated with gift cards. Our app addresses the problem of misplaced or

unwanted gift cards. The gift card industry is also increasing, especially e-cards or

digitalized gift cards that can be sent via email or mobile app. Gift cards have

become one of the most wanted presents for people of all ages.

Industry Trends

Over the past few years, the mobile commerce and engagement industry has grown

massively. Almost 56% of American adults now have smartphones. Four out of

every five consumers use their smartphones to shop. In 2013, 65% of worldwide

mobile users used their devices to purchase goods or services. Annually, 93% of US

consumers receive or purchase gift cards. From 2005 to 2011, there has been $41

billion in gift cards that went unused.

Target Market

Our main customer segment is aiming towards teenagers and adults with access to a

smartphone or app compatible device, and has ever received a gift card that they

believe they will not use. Unlike other websites, our application provides the

convenience of being on a mobile device. People have made complaints of the

websites not being easily accessible while they are on the move. Other apps that are

similar to CardSwitch do not have the ability to make profiles with wish lists. This

allows the customer to send someone a gift card they know they will love and use.

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Market Segmentation and Key Market Factors

Variable Market Segmentation

Geography Anywhere that you have your mobile

device with you.

Demographic Teenagers and adults with

smartphones

Socioeconomic Any social class who is willing to pay

99 cents.

Psychographic

People who want to keep their gift

cards in a safe place and find their

balance.

Behavior Pattern Gift cards will be lost, forgotten, and

balance will not be easily obtained.

Consumption patterns The idea is that smartphone users will

make use of the application.

Consumer Dispositions Consumers want a place they can

easily store gift cards.

Customer Survey

These are surveys of 25 random people who were all asked the same 3 questions.

Most of the people who were questions had either a smart phone or some app

compatible device.

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12

9

4

Number of people asked out of 25

Teens

20+

12-

16

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Have you ever received a gift card that you didn’t like?

yes

no

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25

Have you ever forgotten about or lost a gift card?

yes

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Would you be willing to pay 99 cents for an app that would let you store your gift

cards and give you the ability to swap gift cards?

yes

no

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Competitive Analysis

Direct Competition

Apps:

Bamboo Wallet

Passbook

Tango card

Gyft

Website:

Plastic jungle

Giftcardswapping.com

Indirect Competition

Stores:

All gift card retailers ex. Target, Starbucks, CVS Website:

All gift card retailers

Competitive Advantage/Market Share

The competitive advantage that CardSwitch has over other companies is that we are

innovative in our technology of storing all of your gift cards, scanning your gift cards,

giving you the ability to swap gift cards, and purchase gift cards to send to others.

We at CardSwitch feel that we will have a large effect on its market of gift card

applications and that its’ market share will be 40%.

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Competitive Analysis Charts

Gyft CardSwitch

Profiles with wish lists X

Swapping X

Storing gift cards X X

Send video w/ cards X

Free to download X

Scan gift cards X X

Customizable folders X

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Business Name

Product or Service

Focus Unique Benefits & Features

Distribution Marketing Pricing Weak- nesses

CardSwitch

An app that allows you to store all of your gift cards and swap with others.

Anyone who has an app compatible device and owns gift cards.

Eco-friendly, reduces plastic, easy to use, allows swapping of gift cards,

Must use app from the app store.

Advertisements found on popular apps

App costs 99 cents

May not have the exact store you’re looking for

Gift Card Rescue

You can trade in gift cards for money and you can also buy gift cards for less money than they are worth

For people who don’t want the gift cards they already own, and want new ones for less.

Allows you to sell gift cards for up to 92% back in cash and buy dis counted cards

Must go on website to be able to trade gift cards

No advertisements at all, comes up on google for gift card swapping

Free Doesn’t give you full amount of money back

Plastic Jungle

You can trade in gift cards for either a best buy, cvs, or united miles gift card

People who are interested in specific brands: best buy cvs, or united miles.

Trade gift card money for points in other companies.

Must go on website to trade in gift cards

No advertisements at all, comes up on google for gift card swapping

Free Only can get three different options for your card

Card Pool A website that allows you to purchase and sell gift cards for cash.

People who want to get money for unused gift cards

You can get real cash in exchange for unwanted gift cards.

Must go on website to trade in gift cards

No advertisements at all, comes up on google for gift card swapping

Free Doesn’t give you 100% of your money back

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SWOT Analysis

Strengths:

We are original because we allow

customers to send and swap gift cards

on the app

We have an app that people can use on

their phones, whereas most of our

competitors just have websites.

We include scanning to make it easier

to download the customer’s gift cards.

Let the customer know the balance on

their cards.

We allow profiling to include a wish

list, which makes it easy for customers

to send cards.

Our management team works well

together.

We are located on the app store,

Google Play, and the android market.

Opportunities:

The number of people

buying/downloading apps is

increasing.

Smart phones have become more

popular.

People are always looking for new

apps.

Gift cards are the number one gift that

adults want.

The gift card prices are rapidly

increasing, especially digital ones.

Threats:

Existing competition.

Other companies creating similar

businesses.

App crashing.

Gyft An app that stores gift cards.

For people who wish to have an easier way to sort and store gift cards.

Save gift cards on phone virtually with no problem

Must use app from app store

No advertisements, found on the app store.

Free Doesn’t include many popular store brands.

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Weaknesses:

Lack of reputation.

Inexperienced management team.

Limited financial base.

Start-up costs are expensive

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Marketing Plan

Purpose

An app that makes storing and transactions with gift cards easier. The app allows

you to swap and send friends gift cards with the click of a button. It organized gift

cards, allow you to get the gift cards you want, and helps you to connect with friends.

Market Opportunity

Two different industries (apps and gift cards) are coming together in one app that

offers things that both industries don’t have. The app industry is booming because of

the new technologies and breakthroughs with mobile devices. The gift card industry

is also growing because it is an easy and hassle free way to give gifts to others.

Niche

Our app’s niche in the financial app market is the gift card section.

Target Market

Our target market is focused on the people who have an app compatible device and

who have gift cards that are unused or they have too many to keep track with.

Customer

We hope to attract anybody who has an app compatible device and doesn’t enjoy

having many unused gift cards everywhere.

How We Will Enter The Market

First we must have an app designer design the app and write the code for the app.

Then we have to get the app on the app store, android market, and Google Play. We

next need to come up with a design for the advertisements by selecting the design,

color, background, and text. We will then have to start purchasing advertisements in

popular apps (Pandora, Spotify, etc.)

How We Will Attract And Retain Customers

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We can create Facebook, Instagram, and Twitter advertisements to get people to

understand the purpose of our app. We also need to get in touch with some major

businesses such as Starbucks, Target, and Walmart and see how we can both

advertise each other’s products. We would try to get on the “free pick of the week

app” for the Starbucks app to get more advertising.

How Costumers Will Be Attracted To Our Product

We will make sure our business is properly explained and has the best parts of our

business (the swapping of gift cards and the gifting of gift cards). We will also have

bright colors and attractions for advertisements that get people’s attention on

popular apps and websites.

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Operations Plan

Operations Procedures

The first step in operating our business is having consumers purchase the app from

the app store, android market, or Google Play. They will then store their gift cards

and/or swap their gift cards. The only point at which we will interfere with the

consumers using of our app is in the unlikely event that there is a glitch in our app

and their experience is somehow compromised.

Costs to Produce

The total cost to create the app from an app producer is approximately $10,000. The

total cost to produce it, market it, as well as updating it and legal requirements

would total around $55,000.

Start Up Timeline

Hire an app designer to design and create our

application.

The app designer

writes the app code.

Put the app on teh app

store, android market, and Google Play.

Advertize it on Facebook,

Twitter, Spotify, etc.

Customers purchase the app from the

app store.

They are able to store,

swap, send their gift cards and enjoy the

other convinences of GiftSwap

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Legal Requirements

The California Online Privacy Protection Act (CALOPPA):

An operator of a commercial Web site or online service that collects personally

identifiable information through the Internet about individual consumers residing in

California who use or visit its commercial Web site or online service shall

conspicuously post its privacy policy on its Web site, or in the case of an operator of

an online service, make that policy available. (Directly from the Office of the

Attorney General)

Some authority such as the Financial Conduct Authority (FCA) must authorize the

app. Another legal requirement in order to put our app on the app store is the

Program License Agreement (PLA) and the Human Interface Guidelines (HIG).

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Management Team

Responsibilities and Qualifications Chart

Team

Member

Responsibilities Qualifications

Carla

Smith

COO

Leader of everything inside of the company

Supports an open environment between all

employees

Believes in CardSwitch’s mission and has

intelligence and a strong drive

Able to explain concisely and correctly the

mission of CardSwitch and all of its’ daily

operations

Manages Operational and Financial Department

Creates within the Operational department a

policy system and effective way to manage all of

the members of the day to day Operational

department

She has great

leadership skills and

has shown these skills

when in student

council at her middle

school and in her girl

scout troop

She works well with

others in group work

and maintains an

open, well working

group environment

She is very mature and

polite when speaking

to others

She is also very social

and has a high

vocabulary

She continues to

impress others with

her speaking skills

She also has a 4.0 GPA

in Polytechnic PACE.

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Mo

Jackson

CFO

Manages all financial information such as the

yearly projections and also all public relations

related to financial information

Coordinates with COO on all things strategic with

relation to budget management

Believes in CardSwitch’s mission and has

intelligence and a strong drive

Creates within the Financial department a policy

system and effective way to manage all of the

members of the Financial department

Works with the CEO on the strategic vision to

create relationships with major investors on the

local, state, and national level

Manages the long-term budget and cost

management

She manages to receive

A’s and B’s on all of her

math tests

She is very familiar

with excel

A fast learner

Loves to work with

numbers

Works well with others

and has good

relationships with

others

Manages her time well

with homework and is

able to focus on long

term goals and her

future

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Deborah

Kim

CTO

All technical visions

Leading technology development, and direction

and growth objectives

Supervises software testing and system security

Believes in CardSwitch’s mission and has

intelligence and a strong drive

Creates within the Technology department a

policy system and effective way to manage all of

the members of the Technology department

Establish technical standards and make sure

they are followed

She has a MacBook of

her own

Is very handy with

technology

She has many of the

very popular social

networks such as

twitter, Instagram, and

Facebook that she is

familiar with and goes

on frequently

She is very good at

envisioning

technological missions

Enjoys creating

artwork and designs

Is able to lead with a

strong voice without

being condescending

or bossy

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Janelle

Estes

CMO

Oversees marketing initiatives

Makes marketing budget and ensures the budget

is followed

Oversee the development of new products and

improvements to existing products

Coordinates public relations, promotions, and

advertising

Believes in CardSwitch’s mission and has

intelligence and a strong drive

Creates within the Marketing department a

policy system and effective way to manage all of

the members of the Marketing department

She not only has good

researching skills

Familiar with many

advertisements on

television, apps, and

billboards

She has many social

networking sites and

knows the best ways to

attract customers

When working with

others she ensures that

goals are met

Also when working

with a group she

makes sure that the

timeline is followed to

a tee

She is very creative and

innovative

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Kim

Dowing

CEO

Oversees and helps with all aspects of the

company

Makes sure all legal documents are properly

filed and makes sure that we are up to date in all

permits and laws

Helps determine all goals (short and long term),

mission, values, and vision

Keeps all members of CardSwitch up to date on

the condition of the business, and all of the

competition

Oversees all of the business and its’ operations

Believes in CardSwitch’s mission and has

intelligence and a strong drive

She continues to show

leadership and lead

position skills.

She has participated in

many jobs that have

required acts of power.

She also continues to

stay organized at both

school and home

everyday

Well rounded in all

academic subjects and

sports

Very on top of all of

her schoolwork

Good at

communicating with

her peers and

coworkers

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Financial Plan

Start up Costs

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Sales Projections

Loan Repayment Schedule

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Income Statement

2014 2015

Gross Sales $31,051.35 $58,890.15

Cost of goods sold $10,350.45 $19,630.05

Gross Profit $20,700.90 $39,260.10

EXPENCES

App Maintenance $2,500.00 $2,500.00

Insurance $200.00 $200.00

Permits $104.00 $104.00

Payment processing $621.03 $1,177.80

Loan Repayment $3,115.75 $3,340.99

Total Expenses $6,540.78 $4,822.80

Net Income-EBIDTA $14,160.12 $34,437.30

Interest $3,484.25 $3,259.01

Depreciation $4,065.00 $4,065.00

Net Income Before Taxes $6,610.87 $27,113.30

Taxes $1,652.72 $6,778.32

Net Income $4,958.15 $20,334.97

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Cash Flow Statement