Genappeal Case

GenAppeal

A business plan for

a perfect marriage

between

gene technology

and

online dating.

Luc Krols, Ph.D., MBA

Harold Francois, MBA

1 Table of contents

1 Table of contents 2

2 Executive summary 4

3 The product and sales concept. 6

3.1 Scientific basis 6

3.1.1 The T-shirt experiment. 6

3.1.2 From gene to passion 7

3.1.3 The concept 7

3.2 The sales concept. 8

3.2.1 The product/service combination of GenAppeal 8

3.2.2 The target group 9

3.2.3 The distribution concept. 9

4 The market 10

4.1 General description of the 'singles' market 10

4.2 Strong increase of the number of singles. 11

4.2.1 Age distribution 12

4.2.2 Marriages and divorces 13

4.2.3 Number of potential clients in Europe. 14

4.3 Agencies 14

4.3.1 Dating websites 14

4.3.2 Trends for online-dating 14

4.3.3 Marriage agencies 15

4.4 Sales volumes 16

4.4.1 Assumptions 16

4.4.2 Dating website 16

4.4.3 Marriage agencies 16

4.4.4 Singles 17

4.4.5 Overview 17

4.4.5.1 Realistic/basic scenario 17

4.4.5.2 Optimistic scenario 18

4.4.5.3 Pessimistic scenario 18

5 Marketing strategy 19

5.1 Whom do we serve ? (segmentation) 19

5.2 What do we serve? (our product) 19

5.3 How do we provide this successfully? (our business concept) 20

5.4 What is our value proposition? (The added value) 20

5.5 Pricing 20

5.6 Market penetration 21

5.6.1 Direct contact 21

5.6.2 Advertising 21

5.7 Future sales 21

5.8 Protection 21

6 How GenAppeal will evolve. 22

6.1 First phase 22

6.2 Second phase 22

6.3 Several supporting activities 22

6.3.1 Privacy. 22

6.3.2 Quality label. 22

6.3.3 Security. 23

6.3.4 Legal. 23

7 The enterprise: GenAppeal 24

7.1 Structure of the organization 24

7.1.1 First phase 24

7.1.2 Second phase 24

7.1.2.1 Department of genetic analysis 24

7.1.2.2 Department sales and marketing 24

7.1.2.3 IT department 24

7.1.2.4 Department general services 24

7.2 Management of the company 24

7.3 Legal structure of GenAppeal 25

7.4 Board of directors, Management team and Science advisory board 25

8 Financial Plan 26

8.1 Company structure 26

8.2 Assumptions 26

8.3 Revenues 26

8.4 Fixed assets 27

8.4.1 Investments 27

8.4.2 Amortizations 28

8.5 Evolution of the working capital 28

8.6 Financing (Capital and Debt) 28

8.7 Tax on profit. 29

8.8 Profits 29

8.9 Cash Flow statement (Base scenario) 30

8.10 Income statement (Base scenario) 30

8.11 Balance (Basic Scenario) 31

8.11.1 Conclusion 31

8.11.2 Valuation: Discounted cash flow method applied on GenAppeal 31

9 List of figures 32

10 List of tables 32

2 Executive summary

This document describes the business plan of a new company, named GenAppeal.

Extensive research in the field of genetics and biology has shown that physical attraction between men and women is strongly correlated with certain patterns in their DNA. The more different, the stronger the attraction between the two persons, the stronger the sex-appeal. Hence the name of the company: GenAppeal.

This business plan focuses on how we match by means of database searches these differences and compare them with other individuals in our database. We offer this bundled via our dating web site.

We deliver as a product an electronic key corresponding to the unique information of the customer. This enables them to find their perfect matching partner in our database, giving the best opportunities for success.

If we look at demographic trends in Western countries we observe an ever increasing number of singles actively looking for a partner and in doing so, spending huge amounts of money on agencies and dating services.