India’s first of its kind Educational
website for Kids (3-17 yrs)…
IAE –Business plan
Table of Contents
1. Executive Summary
2. Company Vision, Mission, Values & Goals
3. Value statement
4. Product & Services
5. Market trends
6. PESTEL Analysis
7. Market Analysis Summary: SEGMENTATION
Targeting & Positioning
8. SWOT Analysis
9. Marketing Mix: Product
10. Financial consideration : Start-up cost
12. Industry Analysis
13. Web Plan summary
14. Sales Forecasting
egghead.com offers bright children an entertaining place to interact with each
other, the Web, educators, and the world in general. It generates traffic first,
valuation for investors, and eventually commerce and profits. It is a healthy
place for kids to gain knowledge (e-learning) & play games, for parents and
schools to buy, and a creative and fair work environment for employees.
The egghead.com is also an e-commerce project which is natural evolution for
the egghead.com Internet presence. The site will market and sell selected toys,
books, and games products which helps in developing knowledge. It will also
produce Web products and Web applications that will increase market share,
promote name recognition, and maximize efficiency.
Founded in 2015, egghead creates animated, curricular content that engages
students, supports educators, and bolsters achievement. Our online educational
resources include egghead Jr. (K-3), egghead POP and, for English language
learners, BrainPOP ESL. BrainPOP is also home to GameUp, an educational
games portal for the classroom.
From its humble beginnings as an elementary school teacher's classroom
website, on through the present, the Egghead Network has always had one goal,
and that is to make learning free. Founded in 2015 in order to provide students
with a fun and educational way to spend their free time, a teacher's classroom
project has grown into a worldwide platform attracting several million visitors
every single month. Even it will sell the educational products like Toys,
games, books, etc, through its website. The egghead.com e-commerce project is
the natural evolution for the InteliChild.com Internet presence. The site will
market and sell selected toys, books, and games.
Mission & Vision
Our mission is to provide children around the world with an absolutely free
educational resource. A way to learn, while also having fun. We believe that the
best resources should not be reserved for those who can afford them, but should
be made available to everyone, everywhere, without cost. Using the power of
the Internet, this goal is possible.
Our mission is to create fun and interactive learning modules that can be
utilized by teachers, parents, and home schoolers to enhance their learning
environments, and increase the interest and attentiveness of their learners.
Thus our mission is to reach every child, in every corner of the globe, and
provide them with free educational resources.
“We are committed to empowering kids by continuously investing in
technology to improve the
user experience and providing timely and high quality educational content
with all sort of creativity & innovation in it.”
Product & Services:
Spreading out the knowledge & making an kid to learn through our best inputs
& also through the reputed educational institutes learning material with all sort
of creativity in it.
To give The Highest Quality Educational Activities, Products, Movies, Music,
Games, Articles, Text Books, Learning Programs, Lesson Plans, Worksheets,
And Distribute them to our premium users.
Toys and Games: carefully selected toys and games that appeal to the target
market, the parents of the target market, and educators.
Books: there should be a selection of books that appeal specifically to the
parents and educators of the target market, so that these interested adults can go
to this site and order books about their children. In addition, of course there is
also a selection of books to be ordered by and for the kids to read.
The egghead.com market will be expanding exponentially with the advances of
technology in the teaching sectors and the acceptance of technology as a
teaching aid. The critical component to our entrance into the market will be
approval and support from the school communities - including teachers, the
PTA, and special education programs.
The Indian website (online) market depends on the web internet penetration in
India. India has the thirdlargest internet population in the world after China and
the US (Comscore Inc., 2013). Internet users in India are expected to grow by
42% from 245 million in June 2014 to 320 million in June 2015.
As here we can see this no. keeps on rising there is the great potential for our
educational website in a country like India which is at its growing stage.
Out of this many no. of websites, educational website not even compromises of
0.5%. out of these 0.5% there is not even a single website designed for the kids
in a way which we are going to do.
According to the survey, in just five years, media use has increased from 6 ½ to
nearly 7 ½ hours a day in children between the ages of 8 and 17. Even more
alarming - children have become master multitaskers, often using two or more
media devices at the same time. Counting each device separately, these kids
have found a way to cram in a total of 10 hours and 45 minutes of media
content into those 7 ½ hours.
Average no. of time spend by kids on internet (7 to 17 yrs)
egghead.com has no domestic competition though we have an foreign
competitors like kidsknowit.com, funbrain.com, learn4learn.com, etc
Here in India, egghead.com have an competitive advantage of being an first one
start this kind of educational website totally focusing on kids only.
PESTEL Analysis :
A PESTEL analysis tool is applied on the product to give a complete view of
how the different factors would accept the new idea.
P- egghead.com is an educational website particularly focusing on kids,
therefore there would be very little political issues against the firm.
E- No matter of the economic changes, KIDS will always have to be provided
with highly learning material, therefore economic factors would not be affecting
much in providing complete solution on our educational website
S- egghead.com is creating an another way were kids can develop their
knowledge through learning online so the society would accept this new way of
developing knowledge so I feel there will be no social issues.
T- Technological advances in this industry would always require our website to
upgrade it with changing trends in it, thus this factor has a major impact.
E- Straight away as its an educational website, there is no point of
L- As its an educational website there would lot of legal obligations as here we
would be merging with an educational institutes, publication houses, toy
manufacturer, etc This is looked at in greater detail later in the plan.
Market Analysis Summary:
Our primary target markets include these four areas:
1. The kids themselves. We include ages 3-9 and ages 10-14 in our market
statistics because these are the breakdowns available at www.census.gov,
and we include only 10% of the total in each category.
2. Parents. We include 10% of the parents, assuming that leads to an
average combined income above $100,000. Most of these people live in
suburban areas, but the urban upper class is also a major component.
3. Educational institutions for the children of the upper class. This includes
day care and private schools. Penetrating this market is excellent because
it generates leads to our other targets. We include 107 schools in the India
in our table.
4. Self-teaching families. There is an excellent group of established
customers who teach their children from home. The site will benefit
greatly from the time available from this target group.
So in this diagram it clearly shows which is our target audience & we are
particularly carter to very niche market i.e kids, parents & educational
Home school families
NRI parents & kids
Product : Its an website, name- egghead.com, which is an complete
educational, learning & knowledge base solution for the kids, parents &
educational institute through its all sort of material made available on
website with the help of all creativity aspect to it. Even it sells the product
like Toys, Games & Books which again would help to develop
Place: Its an website so it would be made available throughout India. An
all over India there would be 3 corporate office in Mumbai(head office),
Delhi & Banglore.
Price: Basically for an e-learning program, 2 version are made available
to our users 1 is totally free whereas another 1 is paid in which N no. of
additional benefits are made available to our users.
Half yearly $20
And rest all depends on products which we are going to sell (profit
margin would 27% on cost price)
As its an start-up we would just focus on Advertising ONLY print media
& outdoor advertising as well as Direct Marketing for now.
• Threats• Opportunity
• Weak• Strength
no 1 on 1
only for high
it takes time to
of learning to e-
Merging with an top educational institute, conducting seminars with
parents & teachers.
Distributing free gifts to the kids where on that gift our brand name
would be mentioned on it.
Organising an small events for the kids in malls where we can convey
about website to parents while their kids are enjoying in our event.
Our start-up costs comes to $33,750, which are high because of our
commitment to dominate the Internet market place.
The Break-even Analysis is a good financial indicator. We show break-even
with a sales level of about $265K per month, even assuming a fixed cost of
$169 per month, which is high. Given those assumptions, we reach steady-state
break-even in December of this first year.
The sales forecast is based on increasing website traffic and increasing sales per
unique user session. Sales are projected to rise from $569 thousand in 2000 to
$6 million in 2001 and $25.8 million in 2002. The forecast obviously depends
on traffic increase. We plan to lose money for at least three years while we build
traffic and develop our position for the long-term future.
1. Traffic, as measured in unique user sessions: 100,000 unique user
sessions in Jan, 20; 450,000 in December, 2015; 3.5 million in 2016; and
5 million in 2017.
2015 2016 2017
2. Sell-through, as measured in dollar sales per unique visit: a high of $0.58
per unique visit in December of 2015; increasing to $0.83 in 2016; and
$0.92 in 2017.
3. Valuation, as measured in ability to bring in additional investment at
economically feasible valuations. We need to attract $750 thousand this
year, and an additional $2 million in 2016, with valuation performance
that yields attractive internal rate of return (IRR) to investors. The
financial section indicates IRR of more than 100% for all investors, with
larger IRR for seed, declining slightly for first round and then second
4. Acquisition or Initial public offering (IPO) in 2018, with a valuation of
more than $20 million. This assumes of course the market valuations
based on sales and earnings, which are relatively high as this plan is
Start up cost (Resource requirement):
Our start-up costs come to $33,750, because of our commitment to dominate
the Internet market place.
Our development costs are high, but because we are located in Mumbai
(India) , our human resources costs are not as high as they might be -
particularly for the talented programmers that we need. Marketing expenses
are also high, but spending on the costly development of this site without
promoting it appropriately would make it difficult to gather together the
traffic necessary to make this a success.
Our location leverages our partner potential, even though we are paying a
premium for space and for talent due to development costs. Even our
egghead.com business model is based totally on maintaining our website.
Therefore the company will not own any major assets. Even the office that it
will operate from will be rented. This strategy shall be adopted to minimize
risk, as the firm is a start- up and will be launching an absolutely new service
which carters to kids, parents & teachers.
Start-up expenses (in $)
Design work 5000
R & D 1000
Hosting setup 3500
Total Expense 33,750
Start-up plan break-up
The website industry is exploding. Growth is absurd, amazing. We don't
have business reasons to detail this situation in this plan, our readers are
aware of it.
This is sample text describing the different companies addressing the same
target market. The real plan includes details on which companies sell
products (toys, books, or games) into this market & making learning material
available for the kids in most creative manner. It includes who owns them,
how much market share they get (according to available information
sources), and what we know about their assorted business models.
This is sample text describing the different websites addressing the same
target market. The real plan included details identifying these websites, who
owns them, how much traffic they get (according to available information
sources), and their assorted business models.
Competition and Buying Patterns
This is sample text describing factors in competition for website use by
bright children ages 8-14, for sales to their parents and schools. It details
information available about the importance of factors such as pricing,
shipment, quality, presentation, etc.
Web Plan Summary
The primary egghead.co strategy is to build an impressive destination website.
The marketing of the site will be built around the core value that the site will
offer. Although our competition has built a simple store for ordering the
product, the egghead.com site will be reviewed by Web award companies as a
great destination. We will build our revenue and market share around this
Our business model is based on the no. of the subscribers for our paid learning
program & also sales of our products over the website. Because the site is also
intended to increase brand equity and awareness, we are building for high
traffic. Our model requires giving users an excellent free experience and to
develop trust to increase sell-through. We plan to lose money for at least three
years while we build traffic and develop our position for the long-term future.
Website Marketing Strategy
Our first class design, service we provide & product quality are critical to our
positioning as a dot-com company - we should be the best reviewed website in
our category, and that will become the key to future sales. In the past, design
work and marketing has not matched by our better-funded competitor.
However, the core experience for the children has always been better, and with
a new design team and a round of financing, the egghead.com company is ready
to grow with the market. egghead.com will distinguish itself from its competitor
as a full learning center, rather than just a store front.
Sales strategy: Sales Forecast
The sales forecast in the following table and charts is based on increasing
website traffic and increasing sales per unique user session. Sales are projected
to rise from $569 thousand in 2000 to $6 million in 2001 and $25.8 million in
2002. The forecast obviously depends on traffic increase.
Unit Sales 2015 2016 2017
Books 3604 7208 5000
Toys & games 4,618 17,500 50,000
Subscribers 17622 61250 112500
Total Unit Sales 25,845 85,758 167,500
Unit Prices 2015 2016 2017
Toys and Games $30.00 $30.00 $30.00
Books $20.00 $20.00 $20.00
Subscribers $40.00 $40.00 $40.00
Total Sales Yr 1 Yr 2 YR 3
Subscribers $528,672 $1,837,500 $3,375,000
Games & toys $92,368 $350,000 $1,000,000
Books $144,148 $700,000 $200,000
This is an Internet venture that, of course, depends on the developing financial
prospects of the growing Internet world. To make it work financially, we need
to increase valuation on schedule to bring in substantial additional capital. The
following table defines the investment offering for investors. Specifically:
1. The exit strategy is acquisition in 2003, valuing the company at more
than $20 million.
2. Equity plan and valuations at time of exit are detailed in the section that
follows, "Exit Strategy." The plan assumes an ending valuation of $20
million based on market trends, with IRR of more than 100% for all
The general assumptions are listed, Obviously these are detailed financial
assumptions, trivial compared to the underlying critical assumptions, which
1. Continued growth of Internet usage. We accept published forecasts that
say 42.3% of the world's population presently uses the Internet, and that
will grow to 19% by 2018. That's strong growth.
2. No e-commerce disaster scenarios. We'll have no huge problems with
credit card authorization, shipping, etc.
3. Continued support of financial markets, which means continued rise in
valuations of Internet companies, even Internet companies losing money.
The increase in valuation is critical to our financial strategy.