Throughout the Spring 2012 semester, I worked with three classmates to develop an in-depth proposal for a start-up for my Business of Design class. Our business, called spark!, is a manufacturer of a children's cultural education product called Culture Cave. On this team, I supported graphic design, research, and writing tasks. After three months of hard work and dedication, we summarized our project in a detailed business plan. - - - - The spark! Culture Cave is a cultural immersion experience for kids between the ages of 6 and 10. At the core of this idea is: • an iPad app that features a new traditional story each month. the culturally-rich story provides context for a wealth of ancillary information, games, and activities included in each app. • a sound-equipped tent with velcro walls that kids can decorate with a world map, architectural cut-outs, and other country kit materials. this is a place a child can claim as a kids-only cool hangout. • monthly country-specific activity kits filled with open-ended, and hands-on activities that a child will look forward to We at spark! believe that the best way to teach kids about culture is through traditional stories enhanced by interactive, open-ended, and hands-on activities that spring from that narrative.

1. spark! Culture Cave B u s i n e s s P l a n
Aysegul Kacar Allison Leach Shalini Sardana Lisa Woods
California College of the Arts | Business of Design | Spring 2012

2. Industry Overview
Current Market Trends
Children are overloaded with entertainment options. From comic books to
iPad games, the landscape for toys is vast and varied. Ours is a unique time
period in which traditional hands-on games compete with novel interactive
software.
Yet the ways in which children learn about culture are often via disparate
and disconnected experiences. A child’s first encounter with a foreign Discovery
country might take place in trying a new food or listening to a new song.
Maybe he or she will complete a Google search afterwards, or ask a trusted
Disconnect
adult to learn more. But chances are, the child’s learning experience is
short-lived and incomplete.
Few products on the market take advantage of today’s unparalleled
opportunity space to integrate traditional and modern interactive tools in a
cultural transmedia learning experience.
The Missing Link Learning
Children are curious about new cultures and enjoy a mix of entertainment
options, from non-tech to tech.
Parents want to teach their children about the world, but have limited
knowledge and time.
Culture Cave offers a holistic transmedia learning experience?
2 spark! Culture Cave

3. spark! Culture Cave 3

4. 4 spark! Culture Cave

5. The Solution: Culture Cave
Our Value Proposition
The spark! Culture Cave is a cultural immersion experience for kids between
the ages of 6 and 10.
At the core of this idea is:
• an iPad app that features a new traditional story each month.
The culturally-rich story provides context for a wealth of ancillary
information, games, and activities included in each app.
• a sound-equipped tent with Velcro walls that kids can decorate with a
world map, architectural cut-outs, and other country kit materials. This is Our Mission
a place a child can claim as a kids-only cool hangout.
To be the leading provider of fun, holistic, immersive and interactive cultural
• onthly country-specific activity kits filled with open-ended, and
m education for children.
hands-on activities that a child will look forward to
Our Vision
We at spark! believe that the best way to teach kids about culture is through
To help raise the next generation of global citizens.
traditional stories enhanced by interactive, open-ended, and hands-on
activities that spring from that narrative.
Our Values
We will always put kids first.
We will provide multicultural education that is fun and promotes respect.
We will encourage children to continuously explore and question.
spark! Culture Cave 5

6. target market
Current iPad Market (US)
• Parents own approximately 61% of all iPads. projected
• n 2012, parents owned 25.5 million iPads.
I
60.8 million iPad users
( 2014 )
• verall iPad ownership is on the rise­­­with a
O
projected 31% growth by 2014. The total
number of iPad-owning parents will likely 41.9 million all iPad owners
increase proportionally to 37 million by 2014. ( 2012 )
• pproximately 40% of all school children in
A
the US are between the ages of 5 and 9.
• e thus estimate our total market—iPad
W
owning parents with children between the
ages of 5 and 9 in the US­ to be around 10
— 25.5 million iPad owning
million. parents
• f that population, we will target 1 million
O ( 2012 )
people in Phase 1.
Sources: 1 million our target
New Media Trend Watch, April 2012 market
The Financial Telegraph, April 2012
National Center for Education Statistics, 2011
New Media Trend Watch, April 2012
The Financial Telegraph, April 2012
6 spark! Culture Cave

7. spark! Culture Cave 7

8. research
iPad User Experience Trends Among Professionals 2012 Tablet Market (US)
IDG Connect “iPad for Business Survey 2012,” January 16th, 2012 Wired Magazine, January 6, 2012
• 60% of iPads never leave the home (US). • Apple holds 73% of the U.S. tablet marketshare.
• 70% of iPad usage occurs in the living room (US).
• 79% of professionals say they “always” use their iPad on the road
2012 iPad Demographics (US)
(globally). Silicon Republic, February 17th, 2012
• The proportion of professionals who describe their iPad as a “complete”
• study from The NPD Group suggests that iPad owners are older and
A
or “partial” substitute for TV/DVD players, games consoles and MP3 richer than other tablet owners.
players ranges between 30% and 40% (globally).
• f survey respondents who have an income of US$100,000 or more,
O
• Nearly 75% say that owning an iPad has reduced the frequency with
40% owned iPads and 26% owned other types of tablets.
which they purchase newspapers and books (globally). Half say that
• onsumers who were buying tablets towards the end of last year were
C
owning an iPad means they are less likely to purchase films on DVD.
50% more likely to have an income of less than US$45,000, while 33%
These markets for physical media are already in decline. Based on this
were more likely to be under 34 years old, CNET reported.
evidence, tablet computing will likely hasten their demise.
Tablet Spending Trends (US) 2011 iPad Demographics (US)
Journalism.org, “The Tablet Revolution,” October 2011
Adobe Digital Marketing: The Impact of Tablet Visitors on Retail Websites, 2012
• ighteen months after the introduction of the iPad, 11% of U.S. adults
E
• In an analysis of 16.2 billion visits to the websites of more than 150
retailers in 2011, Adobe Digital Marketing Insights found that those who now own a tablet computer of some kind.
visited using a tablet spend over 50% more per purchase than visitors Apple Headlines, “iPad Statistics,” April 2011
who use smartphones, and over 20% more than visitors who use desktop/
• 7.8 million people own an iPad in the U.S.
laptop computers.
• iPad owners’ annual income:
• ablet visitors appear to spend more because of their demographics, the
T
nature of the tablet user experience, and the environment in which they 6.4% less than $25K 16.4% $75K to $100K
shop online. 11.9% $25K to $50K 49.4% above $100K
15.9% $50K to $75K
8 spark! Culture Cave

9. spark! Culture Cave 9

10. Stop-animation setup at
the Children’s Creativity
Museum, San Francisco
10 spark! Culture Cave

11. competition
Little National Geographic Children’s
Kiwi Crate Culture Cave
Passports Magazine for Kids Creativity Museum
Monthly magazine with
Monthly subscription information about animals, Monthly subscription of
Monthly subscription of An interactive art and
of materials for arts and science, technology, materials that encourage
materials focused on learning technology museum for kids
crafts, science activities, archaeology, geography, learning about
Primary and open-ended play
about other countries
and pop culture - plus jokes, foreign cultures
For kids ages 3 to 12
Offerings games, and activities.
For kids ages 5 to 10
For kids ages 3 to 7 For kids ages 5 to 10
Memberships range from
For kids ages 6 to 14
$10.95 to $13.95/month $69 to $159/year
$19.95/month $35 to $45/month
$15.00/10 issues
The museum offers many Culture Cave offers
Includes a letter from hands-on activities.
Founded by a former eBay a dedicated sound-
fictional travelers Sam
and PayPal executive, a Kids have free online access Membership includes: equipped play space,
and Sofia describing their
PayPal cofounder, and an to games, videos, photos, iPad-based games and
foreign country adventures • e-newsletter
ex-Yahoo product manager. “fun stuff” and news. hands-on activities.
• exclusive members-
Subscription includes only events
Kits address specific National Geographic is Kids can share their
access to online games
Strengths developmental areas
and activities
a well-known and well- • workshops, exhibit favorite work online.
such as creating, respected brand. openings and special
moving, discovering, performances Parents have access to a
Little Passports offers
communicating, and caring. National Geographic has • museums store discounts rich online community.
parents an “Agent
been in business for 35 years
Opportunity.” • carousel rides discounts
Activities encourage and has strong brand loyalty. Activities are designed for
Agents earn up to 30%
parent involvement • birthday party discounts both parent and child, as
of all personal sales.
at the museum well as for the child only.
The museum has limited
hours from Wednesdays to
Kiwi Crate doesn’t address Little Passports mostly
Sundays, 10am to 4pm.
cultural education. appeals to girls. National Geographic’s
Culture Cave costs
magazine has little
Activities are not more than most
Weaknesses Kiwi Crate has no integrated Little Passports has minimal content and lots of
designed to involve both subscription products
digital component, no online digital content, no advertising for candy,
parents and kids. for kids.
online community, and no sharing community, and no video games, and movies.
dedicated play space for kids. dedicated play space for kids.
The Museum doesn’t
address cultural education.
spark! Culture Cave 11

12. Product
1 Sign Up Online We offer 3 monthly subscription levels.
Kids like cool hangouts, they want your iPad, and
they love getting surprises.
Imagine teaching kids about cultures from around
the world in a cool hangout, through interactive
iPad games and many fun hands-on-activities.
Here’s how it works:
2 Receive your Setup Kit Your Setup Kit will arrive in a 3 Receive your Monthly Country Kit The Monthly Kit
couple of weeks. It includes the Culture Cave tent, a world map, a includes a traditional story, hands-on activities, and an iPad app
passport, and instructions for the iPad app. secret story code. Each month, a new country is featured.
12 spark! Culture Cave

13. spark! Culture Cave 13

14. 14 spark! Culture Cave

15. product
The Unique iPad App
Unlike other subscription products for kids on the market, the Culture Cave
App leverages the iPad’s video, audio, interaction, and camera functionality
to deliver an immersive and holistic cultural educational experience.
The Coolest of
Hangouts
No other subscription service
offers Culture Cave’s tent—a
place kids can claim as their
own, and where they can enjoy
an immersive audio experience.
A Variety of Proven Activities A Vibrant Online Community
Kids can do Culture Cave activities on their own or with their parents or The Culture Cave website hosts a Forum for parents to share experiences
friends. Our activities are created by native country experts and then vetted and ideas, a Gallery for kids to upload their favorite works, and a Cultural
by educators, parents, and kids. Event Calendar to learn about upcoming happenings.
spark! Culture Cave 15

16. consumer journey map
DISCOVER EVALUATE DECIDE
Google search Choose a plan
Other parents
(3-, 6-, or 12-months)
Facebook mentions spark! website
30-day money back guarantee
Twitter mention Mommy blogs
Choose 1 of 3 countries
Mommy blogs Free spark! app sample (Phase 3 retail)
and other bloggers Customer testimonials
Scholastic catalog spark! representative in person
Google SEO spark! information packet
Parent’s
YouTube videos Exterior packaging
Experience (Phase 3 retail)
Trial subscription for educators
iTunes App Store search result
spark! local launch event
spark! blog
spark! community upload page
Press releases for media
mention (NYT, SF Gate, etc.)
Friend mention
YouTube video
Child’s
School event
Experience
Teacher mention
Parent mention
16 spark! Culture Cave

17. CONFIRM OUT-OF-BOX USE SHARE
Parents note kids are more Comment on spark! forum
Open access to spark! forum Easy to set up and get started
informed and inquisitive Facebook/YouTube/Twitter
Confirmation High parental involvement mentions
email from spark! Activities bring parents and
Both kid(s) and kids together Blog posts
1-week welcome parent(s) involved
notification postcard Kids sharing with parents spark! community upload page
Thrill of “gift” coming in the mail their creations
iTunes review
Simple tasks child can do Using code to download
new country app word-of-mouth
Carrying case for the tent
and accessories Parents arrange playdates with Review country on spark!
other “Culture Cavers” website
30-minute setup
Teacher recommendations
Download app
Watch online video on
tablet for setting up tent
Both kid(s) and parent(s)
involved
Thrill of “gift” package
coming in the mail
spark! Gallery (showcase of
Simple tasks child can do kid-generated work)
Kids sharing activities
1-week welcome Carrying case for the tent with each other word-of-mouth
notification postcard and accessories
spark! Culture Cave 17

18. Branding
Color Palette spark! Logo
spark!
Brand Attributes
Culture Cave Logo
cheerful inspiring insightful
curious surprising creative
silly trustworthy spark!
Brand Typeface
Brandon Grotesque:
Thin Light Regular
Medium Bold Black
18 spark! Culture Cave

19. MARKETING
Our Website Awards
One of the main touchpoints where our customers will learn information To raise awareness for Culture Cave and earn our customers’ trust, we will
about us and interact with us will be our website. In addition to product enter top toy competitions such as:
details about the Culture Cave, we will also prominently feature:
• Parent’s Choice Award
• videos and photos from our customers
• Good Housekeeping’s Best Toy Awards
• a Gallery for kids to upload their favorite work
• National Parenting Center Awards
• private Forum for parents to actively contribute to the Culture Cave
a
community by sharing their stories and experiences. This sharing will
We will also strive to be featured in the top app lists of premier tech product
allow us to get feedback directly from our users to improve our product.
review destinations such as:
• a Cultural Event Calendar for upcoming events and announcements
• Wired’s App Guide
• a blog
• CNET.com
Social Media
Facebook, Twitter, YouTube, and Pinterest Events
spark! Culture Cave will use the power of social networks to raise awareness We will participate in different activities and events throughout the year
among our future customers. Facebook and Twitter will be utilized to such as storytelling events, play dates, and school book fairs, as well as major
inform people about promotions, surprise packages, events and activities. toy, technology and educational conferences.
Social sharing will be encouraged via multiple social media channels with
conveniently located buttons. A public YouTube channel will be created for iTunes
our customers to post videos about their unique experiences. We will have an iTunes App Store page for downloading our basic app.
spark! Culture Cave 19

20. marketing
Advertising
spark! Culture Cave will run advertisements in different media channels
such as travel and family magazines, mommy blogs, Scholastic catalog and
children-focused websites.
Complimentary sample kits
We will reach out to top media reviewers and educators and provide them
with free samples to test our product and generate buzz.
Word-of-Mouth
Our customers will also learn about us through different personal
social circles such as from children’s classmates, teachers, friends, and
other families.
“Imagine traveling all
over the world from the
same place!”
20 spark! Culture Cave

21. BUSINESS MODEL
Who do we serve? Our Core Capabilities
• Elementary school kids •W
e are excellent UX designers who have unique international
backgrounds for building multicultural education.
• Parents of elementary school kids who have a high disposable income
• e are modern strategists who know how to integrate familiar media
W
• Elementary school teachers, administrators, and librarians
with emerging technologies in an innovative way.
•W
e are culturally-sensitive education planners whose enthusiasm for
What do we provide? teaching kids about new countries respects the inherently complex
•
Holistic and interactive cultural learning experiences for children nature of cultures.
•
Our products educate kids about other cultures while they have fun
Our key partners
• Content creators: authors, editors, illustrators, and programmers.
• Manufacturers of physical materials: tent, arts and crafts, etc.
• istributors: in addition to our own website, we will be selling our product
D
through Amazon and Scholastic catalog.
spark! Culture Cave 21

22. BUSINESS MODEL
How we provide our product One week before shipment, the parent and child will receive a welcome
postcard informing them that their initial Culture Cave package is on its way.
Our distribution channels When the package arrives, the parent and child will receive a code to
download the Culture Cave app. In addition to downloading each month’s
To begin, we will sell Culture Cave through our own website, Scholastic
country story on the app, the parent and child can also access the Culture
catalog and Amazon. As business picks up, we will increase our tablet
Cave community using the app.
compatibility to include non-iPad platforms. Finally, we will extend our
distribution channels to include existing stand-alone retail stores, and create After experiencing our products and services, members can visit the spark!
a Culture Cave retail store. website to write their feedback and comments in private forums and share
their videos and photos.
How our customers will discover us One week after the last country kit has shipped, the parent and child will
receive a goodbye postcard to thank them for their service and encourage
• spark!’s website subscription renewal.
• Social media (Facebook, Twitter, Pinterest, YouTube)
• Events (from school book fairs to major toy, technology and educational Our Competitive Advantage
conferences)
• Scholastic magazine How we are different
• Amazon.com spark! Culture Cave is a unique experience shared by both the child and
parent. While many culture-related products have only one means of
• iTunes App Store interaction, our product is accessible on various levels (multisensory and
• Ads and reviews in various media channels multimedia), as well as accessible in different environments (the tent, the
home, or even the car).
• Word-of-mouth
How our customers will interact with us Our sustainable advantage
After submitting an order, the parent will receive a confirmation email with Other companies could reproduce the Culture Cave tent, activities, or the
a link to spark!’s website for online access to discussion forums and other iPad app individually. However, they cannot offer the seamless connection
activities. between our physical and digital components created by a valuable team
of writers and artists native to each country. This holistic approach is our
valuable asset.
22 spark! Culture Cave

23. Subscription Plans How we make money
We offer three subscription plans. Customers have the option of purchasing We charge our customers for the initial setup kit, as well as monthly country
either a 3-month, 6-month, or annual subscription. packages and tablet content.
Our major costs include:
3 months 3 countries $45 per kit • Software application development
• Website development
• Payroll
• Marketing
6 months 6 countries $40 per kit • Fees to Scholastic catalog for distribution
• aterials (tent, Velcro background, country kit materials, and passport)
M
• ulfillment (packing, mailing, assembly, and warehousing)
F
• Content development
• Platform compatibility and version updates
12 months 12 countries $35 per kit
• Patents for our technology and tent
spark! Culture Cave 23

24. FINANCIALS
Annual Budget
YEAR ONE YEAR TWO
Revenue $ 499, 875 $ 999,750
Service Costs $ 156,000 $ 312,000
Overhead costs
Salary and $ 195,000 $ 195,000
Administration
Marketing $ 78,000 $ 117,000
Vendor Relations $ 74,981 $ 149,962
Support $14,996 $29,993
Total Costs $518,978 $803,955
Annual Income ($19,103) $195,795
Startup Costs $207,000 —
Gross Profit Margin — 24%
24 spark! Culture Cave

25. Revenue Projections
The average price for a kit is $40.
Having shipped 250 kits per week by the end of Year 1, spark! Culture Cave
will generate $499,875 in revenue.
With an estimated of growth rate of 100%, revenue is projected to reach $1
million by the end of Year 2. Due to this growth, spark!’s annual income will
increase from a loss of $19,103 to a net profit of $234,795.
Budget Distribution for Year One Budget Distribution for Year Two
6% Salaries and Administration
3 2
0% Salaries and Administration
15% Marketing and Public Relations 12% Marketing and Public Relations
14% Vendor Relations 15% Vendor Relations
3% Support 3% Support
3
0% Cost of Services 31% Cost of Services
0% Annual Income 20% Annual Income
spark! Culture Cave 25

26. COMPANY GROWTH
Plan of Action Future Projections
PHASE 1 End of Year One
In Phase One, we are planning to sell our product to middle-class parents We plan to sell 12,500 kits in Year One.
who live in the US and own an iPad, at a cost of $12 a kit and a goal of 250
kit sales per week. We will be selling through our own website, Scholastic End of Year Two
magazine, and Amazon.
We plan to double our sales to 25,000 kits in Year Two.
PHASE 2
In Phase Two, we will develop software compatibility with other tablets and
establish partnerships with gaming platforms such as Wii. We will introduce
a Netflix-style queue to allow parents and kids to arrange their own list of
countries.
PHASE 3
As our business picks up, we will extend our distribution channels to include
retail stores such as bookstores, airports stores, museum stores, toy stores and Airports
specialty stores - and eventually implement a stand-alone Culture Cave store.
Museum
Gift Stores
More Countries Toy Stores
Queue
PHASE 1 PHASE 2 PHASE 3
26 spark! Culture Cave