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Super pHresh

By: Neel Kapadia, Tiyree Webb, Ruben Seifert

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Problem

  • Most consumer water purifiers do not offer the capability to change the pH of water.
  • Value-based water purifiers are made from cheap materials and filters don’t last long enough
  • Water purifiers that do have this feature are very expensive, or are locked in at a specific pH
  • Most systems have a complicated setup process
  • Often times customers are stuck with unfair warranty options

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Benefits and Uses of Variable pH Water:

  • A water ionizer allows the user to control the pH of their drinking water
  • Depending on its pH water has a variety of uses:

​

Acidic Water

5-6

  • Watering plants
  • Household cleaning
  • Daily skin care
  • Antiseptic

Purified Water

7

  • Cooling systems
  • Freshwater Aquariums
  • Science!

Alkaline (Basic) Water

8-10

  • Disinfecting food(optimal 9+)
  • Cooking
  • Slightly alkaline (ph 8) water is best for drinking
  • Maximum level of antioxidants pH 8

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Our Solution

  • An all-in-one water ionizer and filter
    • Simple sleek design
    • pH range of 5-10
    • More affordable than competitors
    • Simple maintenance and cleaning
    • Includes quality servicing and warranty
    • Lower power consumption than competitors

​

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Storyboard

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Assumptions

  • Consumers have become increasingly health-conscious, specifically in regard to micro-organisms
  • The average consumer feels existing water ionizer/filter devices are too expensive
  • Consumers feel that other alternatives such as water delivery services require too much work
  • The average consumer does not want to buy 150+ plastic bottles every year

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MVP

  • Survey
    • Online survey (Google forms, SurveyMonkey)
    • Individuals will be given flyers with relevant info (QR code, quick summary of product)
    • Retail Stores will be given a different survey, information will be sent via email
    • Survey will also be available via website

​

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MVP Continued

  • Focus Group Studies
    • Preliminary Survey
    • Demonstration of Similar Product(s)
    • Presentation on what makes Super pHresh different
      • Price
      • After-purchase service
    • Feedback round
    • Post-Study Survey

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Prototype Survey

Survey Questions:

​

  • Do you have a water purifier at home?
  • If you answered yes to the previous question: On average, how long does a filter last?
  • If you answered no to the previous question: Do you do rely on a water delivery service or buy packs of plastic water bottles?
  • Have you heard of the health benefits of alkaline water?
  • How often do you worry about the quality of your drinking water?

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Our Target Market

  • Who wants this? Why?
    • Athletes, consumers with different dietary needs. Health conscious consumers who want variable pH water.
    • Alkaline water has several positive health effects
      • Skin benefits
      • Metabolism regulation
      • Speeds up recovery time
      • Contains electrolytes and antioxidants
  • Who is our ideal target customer?
    • Price-conscious, health-oriented individuals who cannot afford the price of a normal variable pH water purifier.

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Business Model

The Super pHresh Water Filter:

  • Business to Consumer
    • Early focus on penetration pricing (gaining market share)
      • Price: $600
    • Continued focus on providing value to the customer
  • Product and filter would be sold through brick-and-mortar retail stores, as well as online marketplaces such as Amazon.

​

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Business Model Continued

Super pHresh Filter replacement Subscription:

  • Business to consumer -- Subscription Business Model
    • Consumers can choose to buy or order new filters online, or they can choose to enroll in a subscription
    • Subscription uses historical data to predict when your filter will expire (≈ 1yr)
      • Option for delivery or in-store pick-up
      • Allows consumers to order filter ahead of time if needed
    • Subscription offers a lower overall price per filter for the consumer
    • Subscription also offers discount maintenance/repair
    • Potential benefits for long-term members

​

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Market Research

Market Information:

  • Market valued at 6.8 billion (USD) in 2018
  • Expected CAGR of 16% from 2019-2025
  • Market size was 11.48 billion (USD) In 2020
  • EST revenue in 2025: 24.11 billion (USD)

Unit market share by region

  1. Asia Pacific
  2. Europe
  3. North America
  4. Central & South America
  5. Middle East & Africa

​

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Consumer Trends:

  • Having clean drinking water has become an increasingly important issue for the average American.
    • Gallup poll shows clean drinking water is the most pressing concern for most americans
    • Poll also shows that a greater number of americans are becoming more concerned about the issue.
    • Increasing concern over clean drinking water reflected in the high projected CAGR of the market

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Market Size & Segmentation:

  • Total Available Potential Market: 233.022 million
    • Total number of Americans earning more than the median household income
  • Served Available Market: 151.46 million
    • Total number of people in the TAM that have a dietary restriction
    • About 60% of the U.S. population has at least one dietary restriction. We have added a upward deviation of 5% to account for athletes and other health-conscious individuals.
  • Target Market: 11.06 million
    • Total number of Americans earning more than the median household income, with at least one dietary restrictions, living in an urban area in Texas
    • Almost 2.5 million in the DFW metroplex alone

​

​

TAM = 233m

SAM = 151m

Target Market = 11.06m

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SWOT Analysis:

Strengths

Weaknesses

  • Simple Set-up process
  • More affordable than competitors
  • Subscription plan
  • Accessibility
  • Limitations to pH range
  • Warranty Offer
  • Stiff filter replacement options

Opportunities

Threats

  • Expand to more countries
  • Offer a mobile app
  • Auto-fill quantity option
  • Service Hospitals
  • Developments in technology may change this market beyond our ability to adapt
  • Competitor offering low-cost options might wipe out any market position we achieve.
  • Changes in regulation may cause increase in costs

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Competitor Comparison Matrix:

Company

pH Range

Self-Clean

(Y/N)

Easy Install (Y/N)

Filter Pricing ($)

Filter Life

(months)

Useful Life (yrs)

Pricing

Super pHresh

5-10

Y

Y

$55

12

6

$600

Aqua Ionizer Deluxe 9.0

3-11.5

Y

Y

$59.95

4-6

7

$3,295

Kangen Water Machine Leveluk K8

2.5-11.5

Y

Y

$120

6

6

$4,860.50

Tyent Water Ionizer Machine

1.7-12

Y

N

$60

6

6

$4,250.00

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Expense Forecast (Headcount, Quarterly)

Resource Category

Q1Y1

Q2Y1

Q3Y1

Q4Y1

Q1Y2

Q2Y2

Q3Y2

Q4Y2

CEO

1

1

1

1

1

1

1

1

Senior Engineers

-

2

2

3

3

3

3

3

Engineers

-

-

-

4

4

4

4

4

Technicians

-

2

2

2

2

2

2

2

Subtotal Engineering

-

4

4

9

9

9

9

9

CMO

1

1

1

1

1

1

1

1

Marketing and Sales

-

-

-

1

3

3

4

4

CFO

1

1

1

1

1

1

1

1

TOTAL HEADCOUNT

3

7

7

13

15

15

16

16

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Expense Forecast (Expenses, Quarterly) ($000)

Resource Category

Q1Y1

Q2Y1

Q3Y1

Q4Y1

Q1Y2

Q2Y2

Q3Y2

Q4Y2

TOTAL HEADCOUNT

3

7

7

13

15

15

16

16

Headcount Salary*

$37.5

$87.5

$87.5

$162.5

$187.5

$187.5

$200

$200

Sales & Marketing

2

2

2

3

3

3

3

3

Tools and Hardware

1.5

1.5

1.5

1.5

1.5

1.5

1.5

1.5

Software

1.5

1.5

1.5

1.5

1.5

1.5

1.5

1.5

Equipment & Salary Subtotal

$42.5

$92.5

$92.5

$168.5

$193.5

$193.5

$206

$206

COGS**

0

0

0

60

120

300

450

600

Rent***

1.5

1.5

1.5

9

9

9

9

9

Misc (Utilities, Insurance, etc.)****

0.75

0.75

0.75

0.75

0.75

0.75

0.75

0.75

Total Expenses

$44.75

$94.75

$94.75

$238.25

$323.25

$503.25

$665.75

$815.75

Quarterly Burn Rate

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Expense Forecast (Assumptions)

* Salary cost forecast assumes a $50k annual salary per person

** COGS (Cost of Goods Sold) based on a gross margin of 50%

*** Rent cost forecast assumes a $500 monthly cost for office space and a $2,500 monthly cost for manufacturing facilities (starting in Q4Y1)

**** Misc costs assumes a $900/yr cost for utilities, a $700/yr cost for insurance, and a $1400/yr cost for misc. costs

​

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Expense & Revenue Projection

​

Q1Y1

Q2Y1

Q3Y1

Q4Y1

Q1Y2

Q2Y2

Q3Y2

Q4Y2

Revenue

0

0

0

$120,000

$240,000

$600,000

$900,000

$1,200,000

Total Expenses

$(44,750)

$(94,750)

$(94,750)

$(238,250)

$(298,250)

$(478,250)

$(665,750)

​

$(815,750)

​

Net Income (Net Profit)

$(44,750)

$(94,750)

$(94,750)

$(118,250)

$(58,250)

$121,750

$234,250

$384,250

Total Cash (Debt)

$(44,750)

$(139,500)

$(234,250)

$(352,500)

$(410,750)

$(289,000)

$(54,750)

$329,500

Deepest Hole = $ in Q1Y2

Investment Needed = $520,000

Break-Even After: Q1Y2

Profitable After: Q3Y2

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Our Team

Neel Kapadia: Chief Marketing Officer (CMO)

  • B.S. In Marketing, Pursuing MBA in Finance
  • Experienced in marketing analytics, product management, and financial planning

�Tiyree Webb: Chief Financial Officer (CFO)

  • AAS in Business and Science, in-route to BS in Marketing
  • Job experience in sales, banking, and financial analysis

​

Ruben Seifert: Chief Executive Officer (CEO)

  • AAS in Business Administration, Pursuing BS in SCM with minor in Economics
  • Experienced in process improvement, data analysis, and strategic planning
  • Problem-solver, critical thinker, and growth-oriented

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Works Cited

Global Market Research and Industry Analysis. (n.d.). https://www.reportsmonitor.com/report/477983/Water-Ionizer-Market.

5 Gallon Water Delivery Service: Home & Office. ReadyRefresh. (n.d.). https://www.readyrefresh.com/en/gallon-quick-shop.

Plastic Bottles | Habits of Waste. (2021). Retrieved 2 July 2021, from https://habitsofwaste.org/call-to-action/plastic-bottles/

Plastics: Material-Specific Data | US EPA. (2017). Retrieved 3 July 2021, from https://www.epa.gov/facts-and-figures-about-materials-waste-and-recycling/plastics-material-specific-data

Water Delivery. Culligan Water. (n.d.). https://www.culligan.com/service/water-delivery

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Thank You!

We will now take questions and feedback