The document discusses the opportunity in Japan's funeral consumer market. It notes that demand is growing as the population ages and consumer needs diversify. Most funeral operators are small. The document proposes an online one-stop shop SNS platform that connects aged Japanese, small funeral operators, and advertisers. It would offer integrated services like a family bulletin board and customized planning. Revenue would come from referral fees from operators and advertisements. A SWOT analysis identifies strengths in being a first mover platform business but weaknesses in lack of experience and capital. The management team backgrounds and financial plan with projections over 5 years are also summarized.

2. The Opportunity

3. The Opportunity
 Demand in the consumer market is growing.
 Most of the operators are small.
 Consumer demands are getting diversified.
 Internet is penetrating into seniors.

4. Funeral consumer market （Japan)
Total sales of 2,190
operators
(Stable demand in the market)
-> 1,304 billion yen
-> 0.9% up vs. 2008
1160
1310
Sales of Funeral Industry
1140
1300
(Billion yen)
1120
1290
Number of Death
(1,000 people)
1100
1280
1080
1270
1060
1260
1040
1250
1020
1240
1000
2007
2008
2007
2009
(Source: TEIKOKU Data Bank)
2008
2009
Going up to
1.66 million
in 2060
(Expected)
4

5. Funeral operators(1/2)
(Most of the operators are small )
Number of Employees
The share of 16 large
companies
is only 0.7%
1-9
10 - 49
50 - 99
32.6 %
100 - 299
59.7 %
300 -
59.7% of operators are
small companies
which has
less than 10 employees
5

6. Funeral operators(2/2)
(2 major groups & new operators)
Operators dealing
with funeral only
Price is high
New operators offering
the package price
Price is low
Operators dealing with
both wedding and funeral
Price is high
6

7. Consumer needs segmentation / target
Target of “Specialist
Operator & Ceremony
Organizer”
I don’t prepare
Leave all
to you
Make it
simple
Customized
Standard
Express
myself in
my own
funeral
Our Target!
Target of “New
Operator”
Don’t
want to
bother
families
Prepare by myself
Target of “Specialist
Operator & Ceremony
Organizer”
7

8. Internet Use among Seniors (Japan)
Demographics: 8,393 aged over sixties
Demographics: 1,064 aged over sixties
Demographics: 1,064 aged over sixties
Source:
http://whatjapanthinks.com/tag/senior
8

9. Our Products / Services
Strategy
Business Model

10. Our Products / Services
 Offering online one-stop-shop services & contents as a free SNS
platform supplier
 Can provide integrated services by connecting and collaborating with
small funeral operators
 Can get revenue from funeral operators and advertisement as a margin
simplified funeral
Integrated!
Inbound marketing!
Aged Japanese
and their
families
Customize as
we like
Small funeral
operators
Advertisement
suppliers
SNS platform
10

11. SWOT analysis
Strengths
1. First mover
2. Platform business
3. Low cost operator
1. Aging society Opportunities
2. Diversified
customer needs
3. Penetration of SNS
4. Increase of small
funeral operators
share
1. Still no customers
2. No much
knowledge on funeral
business
3. Small capital
1. Easier launch for
popular SNSs to this
market
2. Low IT literacy of
small funeral
operators
Weaknesses
Threats
11

12. Strategy
COSY
Family bulletin
Memory board
board
SNS platform
Customized planning
Evaluation of
service
funeral operators
Free for end users
Cost advertisers and funeral
operators
Product
Price
Place
Promo
tion
Concept
Low cost first mover SNS with rapid growth
On the internet so that we
can connect with the other
SNS platforms
Viral marketing through SNS
communities
12

13. Business Model
Key
Partners
Key
Activities
• Acquire new
customers
• Funeral
operators &
suppliers
• Nursing/ aged
homes, hospices
& day-care
• Community
centers, Ward
offices & NGOs
• Maintain site &
develop contents
Value
Propositions
• Offers online
One-Stop-Shop
services &
contents
• Platform
• Facilitates
referral process
between users
& operators
• Site’s manager
& staff
• Provides online
advertising space
Key
Resources
Cost Structure
• Staff salaries
• System maintenance & software depreciation
• Advertising & promotions
Customer
Relationships
• Self-service
• Single/ multiple
transactions
Channels
• The Internet
• Step-down
care centers
Customers
• Aged Japanese
preparing for endof-life event
• Funeral
operators &
suppliers
• Advertisers
• Ward offices
Revenue Streams
• Referral fees
• Advertising fees
• Office & infrastructure lease; legal &
professional fees
13

14. Management Team

15. Management Team
Jun Iwata, Advisor
Jun is currently the Training Manager of Swarovski. His specialty is in customer
service, store operations, and staff development with over 18 years of experience
in the retail business. Jun started his career as Assistant Buyer at the Isetan
Department Store and as Store Manager at Uniqlo Japan. He then served as
Operations Manager at Uniqlo UK and USA. He majored in International Law at
the Sophia University in Tokyo, Japan, as well as Political Science at the
Santa Clara University in CA, USA. He is currently a candidate for the degree of
MBA at the University of Tsukuba, Japan.
Shigeyuki Matsuo, Business Operations
Before joining COSY, Matsuo was the Head of Project Management Office in Fuji
Fire & Marine, a member company of AIG and led several strategic
projects, including flagship product developments and distribution channel
transformation. Before he joined AIG, he has more than 10 years experience in
operational improvement and project management in consulting firms. He is
currently pursuing MBA in the University of Tsukuba, Japan and holds a
bachelor’s degree in Economics from the University of Tokyo.
15

16. Management Team
Goshi Fujimoto, Technology & Product Development
Goshi’s major is in marketing research and software programming for the
prediction of customer growth and the optimization for system development. He
started his business experience as a researcher in a energy supply company. He
has been a member of several taskforces for government project as a
representative of marketing research. He is currently pursuing MBA in the
University of Tsukuba, Japan and holds a master’s degree in Science from the
Hokkaido University.
Pauline Tan, Business & Marketing
Pauline’s major flair is in her good eye for details, people management abilities
and excellent execution of strategic plans. She has business experience as the
Head of Programmes - a business unit of an established international NGO and
social enterprise, and Operations Manager of a mid-sized franchising enterprise.
A Singaporean native, she is currently pursuing MBA in the University of
Tsukuba, Japan and holds a bachelor’s degree in Social Work from the
Singapore Institute of Management, as well as an Engineering Diploma from the
Ngee Ann Polytechnic.
16

17. Marketing plan
Operating plan
Schedule
Financial plan

18. Marketing Plan
Goal
KPI
Increase Online
Presence
Generate Leads
Establish Brand
Establish Network
Build strong
internet presence
(No. of unique visits,
page views)
Focus on
generating leads
(Online lead forms,
sign-ups for e-mail
promotions &
enquiries)
Win new visitors &
establish
reputation
(Awareness,
content co-creation)
Focus on
establishing
partnerships
(Service providers,
advertising
subscribers)
Build strong
source of unique
visitors
Objective
Identify & expand
source of
generating leads
Build awareness
of potential
visitors & online
community
Track and generate
traffic through SEO
(unique visitors per
day, average site
time per use)
Content Marketing
through Blogging,
Social Media
Build strong
network of service
providers & source
of advertising
subscribers
Inbound Marketing on Web 2.0
Target
100 visits per day
(up to first 6 months)
Conversion rate:
1% of traffic
(leads to sales)
90-100 leads in a
month
(after first 6 months)
A channel for
expertise insights
through content cocreation on health/
wealth/ end-of life
(online campaigns
& webinars)
Recruit participating
funeral operators;
advertisers;
supporting
community partners
(face-to-face)
Quarterly events
10% new leads per
quarter
5-10 operatorpartners
(takes 6-8 months)
18

19. Operating Plan
■Contents Development enhanced by “Feedback Loop”
Characteristic Funeral Operators
/ Funeral Goods Providers
Site Visitors
Interview
Provide characteristic
contents
Examples
Consult about
new funerals
COSY
User’s real feeling
■System Development / Maintenance is outsourced to India.

20. Schedule
Launch
2013
1st
2nd
2014
1st
2nd
2015
1st
2nd
Site Development
Contents Development
Hiring
Advertising
Partnering nursing home
Sales to funeral operators
20

21. Financial Plan(1/3) –Non financial Revenue DriverUnique Users
Page Views
Thousand
Thousand
600
6000
5130
500
5000
400
4000
300
3000
2866
513
2000
200
1602
287
100
1000
160
50
500
89
0
0
2013
895
2014
2015
2016
2017
2013
2014
2015
2016
2017
21

22. Financial Plan(2/3) – Revenue, MarginRevenue by segment
Ad revenue
Mil
Revenue / Margin
Referal revenue
Revenue
Margin
Mil
300
450
256
410
400
250
350
300
200
154
143
150
229
250
186
200
100
150
86
40
50
5
15
117
88
100
48
27
50
9
20
-13
36
3
-17
0
0
2013
2014
2015
2016
2017
-50
2013
2014
2015
2016
2017
22

23. Financial Plan(3/3) – Free Cash Flow Free Cash Flow
Mil
150
133
92
100
50
6
0
2013
-16
2014
2015
2016
2017
-50
-60
-100
23

24. APPENDICIES

25. Population Growth (Japan)
25

26. Consumption of Seniors (Japan)
Medical and health related
Traveling
Children and grandchildren
Housing related
Ceremonial functions
Entertainment expenses, such as friend
Consumer elec & Elec appliance
Automotive related
Self Enlightenment and Study
Clothes
Furniture
Telecommunication and internet
Others
26

27. Pro Forma Profit and Loss
[thousand JPY]
2013
Revenues:
Advertising
Referral
Total Revenue
Expenses:
Personnel
Advertising
System maintenance
Software depreciation
Office & infrastructure lease
legal & professional fees
Interest
Total Expense
Margin
2014
2015
2016
2017
5,000
15,000
20,000
8,949
26,846
35,795
40,039
48,047
88,086
143,318
85,991
229,309
256,500
153,900
410,400
16,000
600
1,000
2,000
1,500
500
16,000
1,200
1,000
2,000
1,500
500
21,600
22,200
64,000
4,200
2,000
4,000
4,000
1,500
3,200
82,900
64,000
12,000
2,000
4,000
4,000
1,500
3,200
90,700
160,000
24,000
2,000
4,000
8,000
1,500
3,200
202,700
-1,600
13,595
5,186
138,609
207,700
27

28. Assumptions of financial plans
 The Baby Boom Generation will continue the trend of demanding more
personalized funerals, and the target is 10% of the internet users of the
generation.
 The possible competitors such as SNS player and existing funeral operators
will offer similar SNS platform as they see our success, but by then we will
have positioned ourselves as the market leader and our market share in
year 5 will be 30% of the targeted users.
 In year 3, we will expand our operation. We will invest 80 mil yen in system
expansion backed by commercial bank loan, and increase the number of
personnel to 8, 8, 20 in year 3, 4, 5, respectively.
28