Dog Tracker Nano

Idea

Introduction

Nano is a small, lightweight, strong and waterproof dog tracking system that can be worn every day by all breeds to monitor activity and fitness and to provide year round protection against loss and theft. It is an always-on 'live tracker' providing a constant location on your mobile, wherever you are in the UK or abroad – essential for detailed tracking of walks, activity and exercise and essential for accurate geofences and alerts.

We launched Dog Tracker Nano in October 2015 following an over-funded Seedrs first round and sold over 500 pre-orders in just 10 weeks. We now have sales or commitments for almost 1,000 devices and started deliveries at the end of January 2016.

We require a second round of funding to ensure we can build a constant supply of product before our partners start marketing Nano. Our first objective is to achieve sales of 2,500 devices and reach a point where the company is self-sustaining through ongoing subscriptions and sales.

For more information please go to www.dogtrackernano.com.

Intended impact

Our aim is to make caring for a dog easier and more fun, at an affordable price for the average dog owner.

Nano is one of the first mass market pet trackers, combining high performance technology with an intuitive app, for dog owners concerned about safety and well-being. The sleek waterproof design ensures the Nano can be used daily by all breeds whatever their shape or size. Wearing the collar means that dogs can be let off the lead for the exercise they need, with peace of mind for the owner that they won’t go astray.

Continuous tracking and simple to use maps, ensure owners know where their dog is at all times to help prevent loss and theft.

The smart collar tells owners how much exercise their dog is getting and for how long, while the app analyses data and goals to give practical advice on ideal weight, exercise and nutrition for a fit and healthy dog.

Initial pre-order production of the new Nano sold out in 10 weeks, through direct marketing to existing customers. Since then we have developed joint programmes with our UK partners in readiness for a national roll out in H1 2016.

At an RRP of £99 upfront plus £6 a month for unlimited usage OR free when you pay £12 a month, we believe Nano will quickly become an essential technology for all owners.

Early adopters have proven demand for the Nano, with many choosing to purchase options and accessories, increasing their value and margin beyond our initial forecast. Total product sales since October are over 1800 when the security collar, matching collar, roaming sim and speed track options are included.

Through our website and online store and integrated partner programmes, we feel we can can reach the market quickly. To date Pets Corner, VetUK, Eurotunnel, PDSA, Dog Friendly, PFMA and Agria are on board with further partners in discussion for H2 2016.

We plan to target the UK, France, Belgium, Switzerland, Germany, Italy and Spain – a market of 33.6 million dogs.

Substantial accomplishments to date

Using funds from the first round we have met our initial objectives.
- design and build the new Nano device, options and accessories.
- design, build and release the Nano app for iPhone and Android.
- run a pre-order campaign to prove demand, pricing and messaging.
- agree partnerships in key verticals - travel, welfare, veterinary, insurance, retail stores, online retail and pet services.

In 10 weeks from 1 Oct we met our pre-order target of 500 units and have placed a further 300 units with our retail partners. We have completed device and app test programmes and are ready to start a national marketing campaign. We are aiming to reach a modest 250 units per month by the end of April.

Monetisation strategy

Nano is priced for the mass market.

Initial testing is complete and pre-order sales targets have been exceeded. The first large scale batch runs are planned to commence in February to meet demand and target upfront income from hardware sales, long tail subscription revenue from usage fees and fixed contracts, plus high margin income from option and accessory sales.

Price tariffs will remain at .
- £99 upfront plus £6 a month unlimited usage (12 month initial contract) OR
- free device plus £12 a month unlimited usage (18 month initial contract) to give customers flexibility. Discounts and incentives will be offered against options and accessories to drive demand but upfront and usage fees will not be discounted, to ensure margin is protected. Pre-order buyers have shown a strong preference for paying up front (78%) and a good appetite for options (77%). Both benefit our short term income and margin.

Sales and revenues are expected to come from four sources.

1) Direct sales generated by in-house marketing programmes, including the Dog Tracker Nano website and online store as well as the Customer Services team.

2) Indirect sales generated by exclusive partners promoting Nano directly to their customers.

3) Licensing in the largest EU markets where the partner takes responsibility for marketing, sales and distribution.

4) Wholesale and distributor agreements for secondary EU markets.

Further income could come from the aggregated data collected through the collar and app showing exercise and activity levels by breed and lifestyle. Such data would be valuable to pet food, pet insurance, pharmaceutical companies and veterinarians.

Use of proceeds

The first round from Seedrs was used to design, develop and produce the Nano & app, both of which are now complete. Funds were also used in the preparation of marketing materials for in-house and partner marketing in support of the launch.
We now require more working capital to ensure we can maintain build larger quantities of devices, to support our own sales & marketing efforts and those of our partners through 2016.
The investment will be used as follows.
1. Ensure continuity of supply of Nano devices.
2. Support partners with the sales & marketing strategy.
3. Ongoing website/online store development.
4. Investment in SEO and search media; social media; partner programmes, advocacy and referral programmes.
5. Secure international agreements.