Cost Structure Analysis

OEP-Venture Lab 2012

Contents

1. Product Description

2. Corporate Activities

3. Cost Structure

4. Cost Estimations

The Idea - Fashion App

Our Visionis to combine the advantages of online shopping and retail stores shopping experiences in one product.

Our Product "Your fashion app"is a free service for young women to inform themselves about actual fashion trends and to receive a valuable and personalized shopping advice.

Benefits of our product

Fashion conscious women:● entertain with new fashion

impressions for free● valuable and personalised

shopping advice● articles can be bought and

tried on in a local shop● save money by getting latest

coupons and find local deals● have an overview of local

shops

Brands / Retail Stores benefits: ● access to a target group● high quality environment for

branding ● high customer attention to

presented message● highly personalised and

localized ad targeting● new customer acquisition and

activation of existing customers

Contents

1. Product Description

2. Corporate Activities

3. Cost Structure

4. Cost Estimations

Key Activities

B2C ConsumerMarketing

Acquire, retain and activate

consumers

B2B Advertiser

Marketing & Sales

Acquire business customer, generate

sales

FashionEditorial

Creation of fashion trend topics, style

selection, composing

Product development and

operations

Improve and operate product applications

ManagementHR, Finance, IR etc.

Corporate Activities: Marketing

● B2C "Consumer" MarketingB2C Marketing includes all activities to acquire, retain and activate end-users of our fashion app. e.g. online marketing, social media activities and email marketing

● B2B "Advertiser" Marketing & SalesB2B Advertiser Marketing includes all activities to announce our product for marketing professionals of fashion brands, online and local retailers, acquire new advertisers and engage them to advertise, link stores and products with our product.

Corporate Activities: Editorial

● EditorialConstantly creation of trend topcis and according trend styles constitute the value of our product: The source of inspiration in fashion. This will include○ Surveillance of global and local fashion trends○ Research of styles available in the market○ Creation of trend topics and accumulation of styles

from online ressources○ Composition, layout and publishing digital asset

Corporate Activities: Product Dev.

● Product developmentThe product development will establish new features within the application for consumers, advertisers and editors to make it more valuable, usable and feasible○ Design user interface○ Create visual design○ Design processes, objects and algorithmen○ Implement features and functions○ Integration of external interfaces

● Product operationsOperations will include all activities and costs for operating the service and maintaining it.

Contents

1. Product Description

2. Corporate Activities

3. Cost Structure

4. Cost Estimations

Cost structureProcess Activity Unit based on

B2C Consumer Marketing

Online Marketing /App Marketing

Budget (performance oriented)+ internal resource (Marketing Manager)

performance +effort

Social Media internal resource (Social Media Manager) effort

eMail Marketing internal resource (Marketing Manager) effort

B2B Advertiser Marketing & Sales

B2B Marketing internal resource+ budget (fixed)+ partner cooperation (commision)

effortfixed budgetpayoff

B2B Sales internal resource (Sales manager) effort / payoff

Editorial Trend topic creation

internal/external resource (Trend scout)+ content costs (license)

effortlicense

Partner linkage internal/external resource (Partner manager) effort

Cost structureProcess Activity Unit based on

Product develop-ment & operations

Product Management

internal resource (Product Manager) effort

Visual Design internal resource (Visual Designer) effort

Implementation internal / external resource (Developer) effort

Operations internal / external resource (Operator)+ hosting expenses

effort,traffic

Manage-ment

Management, HR, IR, Finance etc.

internal resource (Managing Director) effort

Contents

1. Product Description

2. Corporate Activities

3. Cost Structure

4. Cost Estimations

Cost estimations: Editorial

Editorial:● Number of trend topics / year: 650● Number of styles / trend topic: between 20 and 60

styles, average 40● Effort for style selection: between 2 and 7 minutes,

average 5 minutes● Effort for trend creation including composition and

editing: between 4 hours and 4 day, average 18 hours● Total effort for editorial:

2.145 hours / year (268 working days, 1,2 FTE)● Editors hourly rate: between 13€ and 70€, average 42€● Total cost for editorial:

90.000 € / year

Cost estimations: Product Dev.

Product development:● Product Manager including User Interface Design:

between 1 and 1,5 people, average 1,3 FTE● Visual Designer:

between 0,5 and 1 people, average 0,75 FTE● Developer:

between 1 and 3 people, average 2 FTE

Position Effort Calc. Resources Salary / person(2-3 year experience)

Full costs (incl. charges)

Product Manager 1 - 1,5 FTE 1,3 FTE 41,5 T€ 67,5 T€

Visual Designer 0,5 - 1 FTE 0,75 FTE 39,5 T€ 38,5 T€

Developer 1 - 3 FTE 2 FTE 38,5 T€ 100 T€

Total 206 T€

Further costs

B2C Marketing, B2B Marketing & Sales, Management costs would be estimated in two weeks based on further OEP analysis.

Thank you and contact us for more information!

contact@fashion-lab.de