Choreosity is a mobile app that allows parents to define chores and rewards for children to earn points towards. The document estimates the market size for such an app in the US, finding a total addressable market of 4-5.6 million families based on surveys. Revenue is estimated at $4 million from premium apps, $1.5 million annually from ads, and $2 million from in-app purchases, with opportunities to improve through iterations based on market research.

1. Choreosity
Market Size Estimate and
Opportunity Analysis

2. What is Choreosity?
 A new way for parents to incentivize kids to
complete their chores, and for kids to
accumulate points toward long-term rewards
 Choreosity is a mobile app that allows parents
to define tasks and rewards to be completed.
The kids’ version of the mobile app presents
tasks and rewards.

3. The Problem
 As any one with children knows, getting kids to
complete chores can often be more trouble
than doing it yourself.
 Choreosity addresses several psychological
problems with getting kids to do chores:
• Creates clear and pre-defined
rewards, that are immutable.
• Kids can see a record of what
they have done, helping them
understand cause and effect
• Can help remove negative
emotions that teaching
responsibility can incite.

4. The Market
 The market for family apps continues to grow as
children have increasing access to mobile media at
younger ages.
 There are surprisingly few high-quality mobile apps
that have successfully captured this market.

5. Value Propositions
Take the "nagging"
out of, and make
chores and
responsibilities fun.
Have fun with other
Tweens/Teens through
an interactive game
that reward points
can be used in.
Acts as a "commitment
mechanism" for
parents/Tweens/Teens'
long term go
Teach Tweens/Teens
good lifestyle habits.
Save time and
improve the quality of
relationship with
Tweens/Teens.

6. Customer Segments
Parents who have children aged
eight to sixteen.
Tweens / Teens
Caregivers (e.g. nannies, babysitters)
Educators (e.g. teachers, after-school
instructors, coaches)

7. Revenue Streams
•Targeted in-App
advertising in free version
•Premium ad-free app sales
‘Freemium’ model
Markup from selling in-app
rewards that parents can
allow children to redeem
for a definable amount of
points / task completions
Sale of Aggregated
Unidentifiable data
Revenues from
professionals for premium
content displayed in private
parent community

8. Market Size Estimate
 Focus on three revenue streams:
 Premium-version App Purchases
 Free-version In-App Advertising
 In-App Purchases for both versions
 Potential Revenue Streams not Analyzed
 Sale of aggregated data
 Sale of premium expert content space on parents’ private
community to relevant professionals (i.e. child
development)
 Focus on US market

9. Estimating Market Size
 US Population (US Census 2010):
 78.8 million families
 21.6 million families with children 5 – 17
 Individual Smart-phone ownership (Nielsen 2012)
 By Age:
 Age 18-24: 62% (80% of new subscribers)
 Age 35-44: 58%
 Age 45-54: 45%
 Age 55-64: 33%
 Assume overall: 50% smart-phone ownership per family
 Conservative estimate, as using individual ownership
statistics

10. US Smart-Phone Penetration

11. Estimated Families with Kids
and parents with iOS or
Android Smart Phones
 Estimated population of families with children 5-17
with at least one parent owning an iPhone or Android
 9.3 million families
 = 21.6 million families with kids * 50% smart-phone
penetration per family * 86% of smart-phone owners
who use iOS or Android

12. iOS and Android app covers most
of the smart-phone market

13. Estimated Internet Access for
Kids
 Statistics for younger kids on smart-phones are not
available
 Kids’ Internet Access
 75.9% of individuals live in a household with internet
access (US Census 2010)
 Estimate may be conservative
 Using 2010 data
 Evidence from our surveys indicate 90% of individuals

14. Potential User Population
 Families with kids (age 5 – 17):
 22 million families
 Families with kids, and parents own smart-phones:
 9 million families
 Families with kids, parents own smart-phones, and
kids have access to the internet:
 7 million families

15. Estimating User Population
36%
31%
33%
Would a mobile app
help with the
“chores issue”?
Yes
Aren't
Sure
No
Nearly 80% of
parents are open to
having technology
assist them in chore
completion
Only 4.8% of parents
have no apps or do
not ever want to use
apps
About 50% of
parents would want a
freemium model for a
chore app
Internal Research Based on survey of
55 parents

16. Total Addressable Market
(TAM)
 TAM = Assume Choreosity has 100% of market share for
chores apps amongst wired families with kids
 Our survey results:
 Nearly 80% open to using technology in chores
 5.6 million families
 36% think a mobile app would help with chores
 2.5 million families
 67% either think a mobile app would help with chores or
aren't sure
 4.7 million families
 Total Addressable Market Share: 2.5 – 5.6 million
families
 Assume 4 million families

17. Premium App purchase
Revenue Estimate
 Assume 20% of families buy premium version
 Assume premium app costs $5 per family
 $4 million revenue from download of paid app

18. Mobile Ad Revenue Estimate
 2012 ad revenue estimates from best-selling game
Fruit Ninja
 In-App Ad Revenue: $0.24 per user per year
 Assume 2 Choreosity users per family
 Assume 80% use free version
 Mobile Ad Revenue:
 $1.5 million / per year

19. In-App Purchase Revenue
Estimate
 In-app purchases will drive 41% of app store
revenues in 2016, up from 10% in 2012 (Gartner
2012)
 Assume each family spends $10 on average
Choreosity in-app reward purchases
 Assume 3% Choreosity revenue on in-content purchases
 In-App Purchase Revenue:
 $2 million / year

20. Choreosity Revenue Estimates
 With 100% market share:
 Premium App Purchases: $4 million
 Free App Ad-Revenue: $1.5 million / year
 In-App Purchases: $2 million / year
 With 50% market share:
 Premium App Purchases: $2 million
 Free App Ad-Revenue: $0.75 million / year
 In-App Purchases: $1 million / year

21. Opportunity Analysis
 Our estimates suggest that there is a potentially large
market for an app like Choreosity.
 We further analyzed this opportunity through an online
survey, and from group / individual surveys*.
 55 Responses from online survey
 2 Group interview sessions with parents
 16 Individual Interviews with parents, children, and
educators / professionals
* Full survey results available at: goo.gl/JlBLL
* Interview notes available at: goo.gl/xcHJo

22. Take-aways from Opportunity
Analysis:
Professionals
 Professionals
 Sooze Protter, M.A. - Teen Life Coach, Parenting Advisor,
and Jewish Community Education
 “Seeing many children with issues stemming from
digital media, it's important for parents to embrace it
and use technology for their benefit.”
 Holly Pedersen, PhD – Parents Place, Director of
Community Education
 “For today's child, digital media is their playground, and
parents need to accept it. By embracing the new digital
landscape, parents will be able to ‘reach’ their children,
and teach them on their terms.”

23. Take-aways from Opportunity
Analysis: Parents
 Chores create a pain point
 The online surveys and interviews confirm our
assumption that there is a pain point for parents and kids
in consistently getting chores done
 Kids complain of too much “nagging”
 Parents complain of inconsistent chore completion and
not being able to get chores done without “emotional
trauma”

24. Take-aways from Opportunity
Analysis: Tweens / Teens
 Surprisingly, having a game within the app was not the
primary motivating factor, but rather it was the point /
reward aspect.
 Universally they liked the texting, picture-taking and
video-making features to avoid their parents’ nagging.
 Kids older than 10 preferred to not invite their friends
because they wanted to keep home life private.
 Kids are motivated by points in app leading to rewards
rather than having an in-app game or competing with
friends.

25. Take-aways from Opportunity
Analysis: Children
 Surprisingly, having a game within the app was not the
primary motivating factor, but rather it was the point /
reward aspect.
 Universally tweens/teens liked the texting, picture-taking
and video-making features in place of their parents’
nagging.
 Kids older than 10 preferred to not invite their friends
because they wanted to keep their home life private.
 Most kids would like to participate in the app because
their parents tell them to.

26. Iterations resulting from Market
Research
 Including an in-app game where points can be used is not
necessary.
 Choreosity is well-suited for families with special-needs
children.
 Parents will be purchasing Choreosity for their children. We
need to educate parents on benefits of Choreosity.
 Aesthetics and usability are very important.
 Integration on facebook should be optional and needs to be
controlled by kids if enabled by parents.
 We should consider an option that allows friends to go online
and encourage each other to finish tasks.

27. Potential Price Points based
on market research
 Current alternatives to Choreosity are low-cost or free
 The alternatives are either verbal instructions or printed
chore charts
 Most parents (50%) want a Freemium model
 Another (32%) would pay less than $20 / year
 Parents of special needs children would be willing to
pay significantly more than the average parent

28. Summary
 There is a market for Choreosity because the essence
of what it solves is the age-old problem that every
parent or adults working with children face, that is,
how do you help your child develop good habits and
skills that is important for success
 Our market size estimates suggest that Choreosity is
an opportunity worthy of continued pursuit.