Business Model & Business Plan

for Smartwatch
GROUP 2

Presentation by:
SOURAV RAKSHIT (1827530)
YASH JHA (1827534)
GAURAV KHARAYAT (1827612)
RAHUL JOSEPH (1827624)
SRINATH K MUKUNDAN (1827630)
SAUMYA DEOGUN (1827654)
 “
Take care of the minutes
and the hours will take
care of themselves.

-Lord Chesterfield

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About the company

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 Premium Smartwatches

Tempus mean ‘Time’ in Latin.

The phrase ‘Tempus fugit’ can be translated as

‘time moving swiftly’.

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 About Tempus Smartwatches

◈ Start-up in Smartwatch manufacturing

◈ Based out of Bangalore, India
◈ Firm’s goal is global penetration & become market
leader in premium watches segment
◈ Disrupt traditional analog/digital watch market
◈ Transform Customer perception about smartwatches
from utility-based to fashion-first
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 Tempus Smartwatches

MISSION VISION
To one day replace every To disrupt the smartwatch
watch worn on the wrist of market with the use of
customers to leading-edge technology, by
Smartwatches. offering smartwatches which
are as durable, fashionable
and as sentimental as
traditional watches.
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Internal Analysis

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 SWOT ANALYSIS

Strengths Weaknesses
• Hardware integration with Open source Operating • Premium Pricing
System • Widely popular amongst the youth and millennial but
• Vernacular options yet to be fully accepted by the baby boomers in
• Disruptive Battery technology & replacement specific countries
program • Lack of control over OS
• Durability must longer than regular smartwatches • Limited Target audience
• Can be passed down generations
Opportunities Threats
• High Global Demand due to Technological • Lack of Product acceptance across all age segments
advancements • Fickle minded nature of customer to switch brands
• New opportunities in R&D, Design thinking and with changing fads
Innovation • Hardware coping up with frequent Operating System
• Existing consumer sentiment of watches as an updates
accessory

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External Analysis

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INDUSTRY LIFECYCLE

◈ The smartwatch industry is

on a rapid growth trajectory

◈ Yet to completely disrupt the

markets in developed nations

◈ Large potential in developing

nation by premium
positioning

Current stage of
◈ Innovative Technology can Current stage of
smartwatch industry
traditional watch
delay shakeout stage industry

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PORTER’S FIVE FORCES

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 PESTLE ANALYSIS

Political
Political aspects include factors like tax policies, trade
control, import restrictions, competition regulation, tariffs,
regulation/deregulation etc.
Rising nationalism makes exporting a challenging task
with high tax tariffs.
Technological
Technological Aspects include the basic technological
infrastructure prevailing in the country to be able to prepare
P T the necessary product, rate of technological change, spending
expected on innovation or R&D. Patented Technology is a set
back for new entrants.
.

Legal
Economy
Legal aspects include Copyrights, patents,
Economic Aspects include growth rates, inflation
employment law and other health and safety laws
rates, interest rates, labor costs, credit
pertaining to a specific country. Collection of
availability, market trends etc. Labor cost is
E L heath
especially high, as highly skilled labor is required.
Related data is subjective to data protection laws
of the country.

Environment
Social Environmental Aspects include the factors like climate, weather,
Social Aspects include the demography, lifestyle, education level, carbon footprints, recycling rules and waste management techniques
buying habits of the customers. Apart from being fashionable, adapted. Disposal of the electronic equipment's is crucial as battery
tech-savvy people use smartwatches,
S E is non-biodegradable.
.

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Business Strategy

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CUSTOMER VALUE PREPOSITION

Passing Lifetime
Intangible down free
smartwatch battery
Benefits through replacem
generations
ent

Continuo
Customer us Blood Advanced
Battery
Delight Glucose Technology
Monitor

Annual
Fitness Subscription
Partner CVP service
Package

Watch
Premiu
Product
Characteristics Durability
m strap
material

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 Tempus
◈ Differentiated product
targeted at broad
audience
◈ Product differentiated
by minimalistic,
evergreen designs
◈ Product has tech
focused on battery & it’s
servicing, unlike present
smartwatches, making it
a sentimental asset to
pass down generations
◈ High price justified by
Value Preposition

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STRATEGY CLOCK

◈ 1 – Fastrack
◈ 2 – Honor
◈ 3 – Xiaomi, Amazfit
◈ 4 – Samsung, Garmin
◈ 5 – Tempus, Apple
◈ 6 – TAG Heur, Montblanc
◈ 7 – Fitbit
◈ 8 - Fossil

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 LINE FUNCTION
Operations
◈ Design of Goods and Services - The company
uses its R&D investments to ensure advanced
features in its products. It also integrates
dealership personnel needs in designing
aftersales services
◈ Quality Management - To maximize quality, the
company uses its Tempus Production System
(TPS)
◈ Location Strategy – Having manufacturing plant
in India and having official dealership in various
other markets
◈ Supply Chain Management - Tempus uses lean
manufacturing for supply chain management. In
this strategic decision area of operations
management, the company uses automation
systems for real-time adjustments in supply
chain activity. In this way, Tempus minimizes
the bullwhip effect in its supply chain.
◈ Inventory Management - Tempus minimizes inventory levels
through just-in-time inventory management. The aim is to
minimize inventory size and its corresponding cost.
◈ Process and Capacity Design - The company emphasizes waste
minimization to maximize process efficiency and capacity
utilization.
◈ Layout Design and Strategy - Layout design in Tempus’s
manufacturing plants highlights the application of lean
manufacturing principles. In this strategic decision area of
operations management, the company aims for maximum
efficiency of workflow.
Marketing & Sales
◈ 60%-70% media spend on Digital Marketing
◈ Target: 10% online purchases; influence 40% purchases via
online
◈ Focus on Exclusivity & Accessibility
◈ Integrating touchpoints though Omnichannel distribution
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 STAFF FUNCTION

HR Finance
◈ Outline Regulations for Compliance, Safety,
◈ Using a preferred financing method, Tempus can
make it easy to their credit option during
and Health
checkout
◈ Maintaining Customer - Employee
Relationships through bonuses and discounts
◈ Develop Training Programs and Performance
Management Methods (This can be
accomplished by keeping personnel files and
establishing a performance evaluation
process)
◈ Use a Human Resource Information System
(HRIS) - Human Resource Information ◈ Giving discounts of 5-10 % on premium banks
Systems can help you track employee time, credit cards.
recruit new employees, manage pay checks
and benefits, automate administrative tasks,
◈ Discounts on bulk corporate orders

track compliance, and keep records

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Financial Planning &

Analysis

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 Financial Planning
◈ Assumptions:
• There is easy access to capital for start-ups
• Economy is in steady growing phase
• No disruptive technological changes
◈ Key Financial Indicators:
• Gross margin at 15%
• Average collection period within 45 days to
regulate cash flow
• Expected Revenue growth rate at 20% YoY
◈ Capital Structure:
• Equity financing from venture capitalists
• Borrowing from Banks at 15% interest
◈ Breakeven Analysis:
• Fixed cost : Rs.5,00,00,000
• Variable Cost: Rs.15,000 per unit
• Selling Price: Rs.25,000 per unit
• Average yearly demand : 4,000 units
• Break Even Quantity: 5,000
• Break even period: 15 months
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 StartUp Cost Structure

Capital Expenses Variable Cost for Amount (Rs)

Fixed Cost Amount (Rs) Year 1
Source Amount (Rs) Raw material 1,50,00,000
Building 2,00,00,000
Machinery 3,24,00,000 Wages 2,00,00,000
Venture 7,00,00,000
Capitalists Office Equipment 50,00,000 Electricity 1,50,00,000
Bank Loans 3,00,00,000 Permits 5,00,000 Transportation 50,00,000
Website 1,00,000 Commission 25,00,000
Others 1,00,00,000
Insurance 10,00,000
Others 25,00,000
Total 11,00,00,000 Others 10,00,000
Total 5,00,00,000 Total 6,00,00,000

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 Revenue Projection

For Year 1:
For Year 2:
◈ Revenue: Rs.10,00,00,000
◈ Revenue: Rs.12,00,000
◈ Expenses:
◈ Expenses: Rs. 7,15,00,000
Rs.11,00,00,000
◈ Tax: 0%
◈ Tax: 0% for start ups for
◈ Profit: Rs. 45,00,000
first 7 years
◈ Loss: Rs. 1,00,00,000
◈ Expected revenue
growth rate = 20%
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Thanks!

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