Startup@Singapore 2009 Competition Semi-finals Report.

1. LyRex
LyRex

2. LyRex
Table of Contents
1. Executive Summary ................................................................................................................. 4
1.1. Objectives .....................................................................................................................................4
1.2. Mission .........................................................................................................................................4
1.3. Keys to Success .............................................................................................................................4
1.4. Finance .........................................................................................................................................4
2. Introduction ............................................................................................................................. 4
2.1. Definition ......................................................................................................................................4
2.2. What is LyRex? ............................................................................................................................5
3. Problems and Solutions ........................................................................................................... 5
4. Product .................................................................................................................................... 5
4.1. RecoBeE Application ....................................................................................................................5
4.2. Website .........................................................................................................................................6
4.3. Reports ........................................................................................................................................6
5. Management Team .................................................................................................................. 6
5.1. Board of Directors .......................................................................................................................6
5.2. Board of Advisor ..........................................................................................................................7
6. Market Research ..................................................................................................................... 7
6.1. Market Size ..................................................................................................................................7
6.2. Market Trend ...............................................................................................................................8
7. Competition ............................................................................................................................. 9
7.1. Competition to our RecoBeE Discount Application .....................................................................9
7.2. Competition to our RecoBeE Market Research .......................................................................... 10
7.3. Competitive Advantage .............................................................................................................. 10
8. Market Strategy ..................................................................................................................... 11
8.1. STP and Value Pro. .................................................................................................................... 11
8.2. Marketing Tactics ....................................................................................................................... 12
9. Technical Plan ....................................................................................................................... 14
10. Risk ................................................................................................................................... 14
11. Barriers to entry ................................................................................................................ 15
11.1. Intellectual Property ................................................................................................................... 15
11.2. Established community of users .................................................................................................. 15
12. Threats ............................................................................................................................... 15
12.1. Bargaining power of suppliers .................................................................................................... 15
12.2. Threat of new competitors .......................................................................................................... 16

3. LyRex
12.3. Bargaining Power of customers .................................................................................................. 16
13. Finance ............................................................................................................................... 16
14. Mile Stones ......................................................................................................................... 19
15. Expansion Plan .................................................................................................................. 19
16. Exit Strategy ...................................................................................................................... 20
References ..................................................................................................................................... 21

4. LyRex
1. Executive Summary
1.1. Objectives
LyRex leverages upon the latest mobile networking technology to change the way consumers
interact with businesses, brands and even their environment, such as at malls. Lyrex‟s RecoBeE
system integrates mobile and internet together while being user friendly and efficient. With a
talented team from diverse backgrounds, we aim to provide a new platform where consumers are
better served and better treated.
1.2. Mission
To change the way merchants interact with their potential customers with RecoBeE and provide an
enjoyable and complete lifestyle experience to those customers.
1.3. Keys to Success
With the creation of RecoBeE, LyRex is determined to solve the following problems:
For Business Partners:
We give them the ability to capture customers‟ attention through i-Vouchers. LyRex fulfills the gap
between consumers and companies by revealing what the consumers really want.
For Consumers:
Besides providing i-Vouchers to end-users, the RecoBeE system gathers end-users into a community
of like-minded people that look out for one another. In the end, it is the community that sustains
itself and gives RicoBeE its success.
1.4. Finance
Within 3 years of launch, we expect that LyRex will have 58000 customers through the download of
RecomBeE and sales of S$1.88 million with an after tax profit of $1.1 million.
2. Introduction
Imagine you don‟t have to browse through mountains of differing opinions before you purchase the
latest mobile phone.
Imagine you received a trustful message saying that Jay Chou is currently at TheBodyShop in
Takashimaya Shopping Mall.
You wanted to go clubbing and just before you left the house, you can receive real-time update that the
club is packed and another club has shorter waiting line.
2.1. Definition
End-user – Customer who uses our application

5. LyRex
Customer – from the viewpoint of our business partners.
Consumers – from the viewpoint of the entire industry.
2.2. What is LyRex?
LyRex is a business intelligence company that leverages on mobile social networking. We recognize
the complete marriage between mobile phones and Internet. The underlying objective of LyRex is to
create a new community where people can exchange and share real-time information on-the-go. Our
end-users can access the RecoBeE (Recommended By End-users) system to search for the best
discount deals, see other end-users opinions about a particular product or get recommendations from
other end-users. This allows users to experience the power of being connected all the time. At this
moment, RecoBeE is only available on iPhone and iPod Touch as a downloadable application.
However, you can expect RecoBeE to be available to a wide variety of mobile platforms in the near
future.
3. Problems and Solutions
The Problem:
Merchants encounter difficulties serving their customers, as they do not have sufficient information
regarding their customers. Even with the perfect product, it is still hard to capture customer‟s attention
due to advertising overload. Due to the lack of real-time information, customers are unable to make
informed decisions. Also the constant bombardment of advertising has made the consumers are skeptical
and indifferent about a product.
Our Solution:
LyRex uses i-Voucher to capture customer‟s attention. This i-Voucher brings value to the RecoBeE
community, as only members of the RecoBeE community can obtain this exclusive offering.
As we mentioned in the introduction, the underlying objective of LyRex will be to create a new
community. The community will give end-users a sense of belonging, and they can share their personal
experiences with other people within this community. These personal experiences are all valuable real-
time information, which have the potential to generate money. The main revenue streams of LyRex will
be generated from the I-I-Voucher and the community.
4. Product
The RecoBeE community as a whole involves the integration of RecoBeE mobile application and the
Website. By using the twitter platform with proper design and arrangement, we can organize
information, prevent clutter, and establish the necessary framework to build a community. This will be
explained further in the technical plans.
4.1. RecoBeE Application
LyRex offers the RecoBeE mobile application to users of iPhone and iPod Touch. The RecoBeE
application will allow end-users to gather information on-the-go. The search function will allow
users to search by keyword, brand, store, discount, product and location. For example, by clicking
the “Near me” button (see figure below), the application will list out the activities within your

6. LyRex
proximity. You can find out all the information about the best discounts, suggestions and
recommendations made by other end-users.
4.2. Website
The website is a place for end-users to blog about their retail, dining or entertainment experience.
For example, when you‟re at home after a long day of shopping, you can log on to the website and
share your experience with other people. Some of the information you share might be beneficial for
those who are still in the mall. The purpose of the website include, the sharing of experiences,
providing recommendations, company announcements and also making friends.
4.3. Reports
The community focuses on discussions of sales promotions, brands and store events. We leverage on
these discussions to provide market intelligence for our participating stores, which we will
summarize into monthly, quarterly, semi-annual and annual reports.
In the monthly reports, we provide our business partners with an outlook on the number of end-users
who downloaded the vouchers for their stores. The report answers the following questions: Within
this group of end-users who downloaded the vouchers, how many people actually used it? What other
vouchers did they download? Finally, where did they go instead of your store? This gives the store a
breakdown of how many customers they have lost due to competition.
In addition to monthly reports, we will be offering more detailed quarterly, semi-annual and annual
reports on consumer behavior. This will include the trends and results of promotions from other
competitors in the same area and in the same industry. We will include consumer feedbacks,
sentiments, and brand judgments of the participating companies if all these information are available
through data collection from end-user discussions in the community.
5. Management Team
5.1. Board of Directors

7. LyRex
 Gabriel Lee is the CEO of LyRex. Currently, an undergraduate in accountancy at Nanyang
Business School (NBS), he is involved in entrepreneurship and Internet businesses. President
of the Investment Interactive Club.
 Chen Chiu Hao (Ted) is the Technology Director of LyRex. Having studied in Ridley
College in Canada for 6 years, he started several technology start‐ ups. With his network in
Taiwan, he brings with him years of experience to LyRex.
 Daniel Hartoyo is the R&D Director. Being an undergraduate majoring in Chemistry and
Biochemistry, he is passionate about green chemistry and intends to start a green start up in
the near future.
 Benjamin Lum is the Financial Director of LyRex. As a banking and finance major student,
Benjamin has a keen interest in entrepreneurship and enjoys the outdoors.
All members of LyRex have gone through the minor in entrepreneurship conducted by the Nanyang
Technopreneurship Centre, and have benefitted greatly from the rigorous training.
5.2. Board of Advisor
 Mr Lau Shir Hor is the founder and CEO of Elixir Technologies Corporation. He has a
wealth of experience and an extensive network of companies and individuals from which we
can tap into.
 Dr Olaf Rieck specializes in telecommunications, economics and policy, as well as on
corporate strategy for telecommunications service providers. He also held executive teaching
assignments with Korea Telecom and LG.
6. Market Research
6.1. Market Size
Retail Industry
Our RecoBeE system is targeted towards helping customers make better buying decisions as well as
increasing the sales of retail shops. Since all the costs are incurred on the company‟s side, the retail
industry is our main target market. In 2007, the retail industry in Singapore was worth $6.3 billion
and it is forecasted to grow to be worth $8.3 billion. This value represents a compounded annual
growth rate (CAGR) of 5.6% from 2007-2012. [1]
Looking from a regional perspective, LyRex stands to benefit too as the value of the retail industry
in Asia pacific looks set to grow from $211.6 billion to $261.6 billion at a CAGR of 4.3%. [2]
Besides the retail industry, the food services industry is also our target. This industry is especially
lucrative, worth $1.9 billion in 2007; it is set to increase to a value of $2.4 billion by 2012. This
would be as a result of 4.3% CAGR. [3] Cafe and restaurants make up also 42% of the total industry
value in 2007. At the same time, the Asia Pacific‟s food service industry is positioned to grow by
5.2% CAGR to $ 2.96 billion. [4] This represents a valuable industry in which LyRex can target
since the RecoBeE system can be implemented to spur the growth of the food services industry.
Lastly, another industry that has the potential for growth potential includes the consumer electronics
industry. In Singapore, this industry is set to grow to $663.9 million by 5.4% CAGR in 2012. [5]

8. LyRex
While in Asia Pacific, by 2012, the consumer electronics industry will grow by 6.1% CAGR from
$64 billion to $86.1 billion. [6]
LyRex intends to target the retail apparel industry, food services and consumer electronics industries
to promote the use of our RecoBeE system. These three industries involve a high frequency in terms
of transactions, therefore lucrative in their market potential.
Market Research Industry
An important component of our RecoBeE system is that we will be able to gather what customers
say about a brand, store, product etc. Such information is vital for store owners and brand managers
who are interested in knowing about what their customers, potential customers and missed customers
are saying about the store, product or brand. Therefore, LyRex also serves as a market research
company; however, this can only be achieved if critical mass is reached. In 2008, the market
research industry in Asia Pacific and world was estimated to be worth $3.4 billion and $23.4 billion
respectively. [7&8] As consumers become more demanding in their purchases, the information that
we provide to companies about their customers would also be in greater demand.
6.2. Market Trend
Apple’s iPhone
Since the much anticipated introduction of Apple‟s iPhone in June 2007, more than 17.4 million sets
have been sold. [9] The phenomenal growth of iPhone has also been fuelled by the introduction of
iPhone 3G, launched in July 2008. During the first quarter of iPhone 3G, 6.9 million units were sold,
exceeding 6.1 million first-generation iPhone sold in the prior five quarters combined.
In Singapore itself, as of 2008, 20,000 iPhone sets have been sold since its launch, though estimates
put it at over 60,000. [10] These numbers are most certainly set to grow as the ownership of iPhone
will increase with its appeal and usability. This is concurred by Datamonitor‟s prediction that
compound annual growth rate of the market volume of mobile phones in the period 2007-2012 is
predicted to be 18%, at a volume of 890.1 million. [11]
Apple’s App store
The popularity of Apple‟s iPhone and iPod Touch has been clearly vindicated by the popularity of
the Apple App Store. App store is a service for iPhone and iPod Touch users to browse and
download applications developed by third-party developers. Within 9 months, it has already offering
35,000 applications for download and has hot the one billionth download mark. [12] This
phenomenal growth and development of applications will continue to be sustained.
With the success of Apple‟s App store, many mobile companies have started to open up their mobile
platform to third party developers as well. They include Google‟s Android Market, Microsoft‟s
Windows marketplace for Mobile and Nokia‟s Ovi Store. [13] Therefore, LyRex has an immense
opportunity to promote the RecoBeE to all these platform and their respective users.
Twitter
Our system, which connects shoppers and brands, will make use of Twitter to enable real-time
communication. Twitter a free social networking and micro-blogging enables users to update each
other via 140 characters short messages called Tweets. Twitter enables a more-efficient of social

9. LyRex
networking and rich experience for users. It has an estimated user of 4-5 million [14] and the number
of unique users as 6 million a month and the number of monthly visits as 55 million [15]. Since this
social network has been widely accepted and at the same time, readily taken up by people, it would
be the ideal system that will allow users of RecoBeE to connect to one another.
7. Competition
7.1. Competition to our RecoBeE Discount Application
Competition Analysis
Popular iPhone Applications
 BuUuk and Hungrygowhere Despite having similar functions and
structure, we understand that BuUuk‟s and
These applications aim to help customers hungrygowhere‟s objective is to serve a
search for cafe and restaurants. At the restaurant guide and directory. However,
same time, they do provide a platform for the objective of RecoBeE is actually to
customers to review, comment, and offer users the opportunity to access all
discuss via familiar platforms such as discounts and promotions. Therefore, we
Twitter and Facebook. They also provide are targeting a different group, those who
information on discounts and offers. are driven by discounts and offers. At the
same time, RecoBeE is also different from
BuUuk as it aims to involve all forms of
retail outlets, from restaurants, clothing
shops to consumer electronics.
Market Research (Primary Research)
While BuUuk and HungryGoWhere do pose a threat to our business due to their similar functions,
they are essentially a directory company. Upon further investigation, we found out the following:
Findings Conclusions
 iPhone application for  Clearly, there is a demand for
HungryGoWhere and BuUuk is applications that provide users with
ranked 1st and 7th most useful information such as places to
downloadable lifestyle application dine, recipes and lottery details etc.
 However, the applications  While there is a demand for such
themselves have received less than informative services, this area is
stellar reviews, averaging 2 ½ stars currently underserved. Hence, users
out of a possible 5 stars from users. continue to download the
application until a better application
comes along.

10. LyRex
 It is also interesting to note that  Therefore, despite providing the
despite being 7th on the most avenue to communicate, BuUuk has
downloaded list, BuUuk only has not been successful in converting all
about 200 over people following it its users to active users of the twitter
on Twitter feedback channel.
7.2. Competition to our RecoBeE Market Research
Competition Analysis
Business and Brand Intelligence Company Now these companies deploy personnel,
advanced opinion mining system and data
 Brandtology and JamiQ mining techniques to gather information
from across the web about their client.
These two known companies are focused
Through the use of the RecoBeE platform,
on helping clients understand what online
LyRex will be able to gather opinion,
users are saying about them. This is done
comments, complains from users. Hence,
by listening to online conversations from
becoming a one-stop authority website for
blogs, forums and other social media. This
all opinions and comments about brands
is so that businesses and brands can make
and businesses.
timely and strategic decisions.
7.3. Competitive Advantage
Competitive Advantages Explanation
Focused target of end-users End-users will be more attracted to use RecoBeE
application because we offer users the opportunity to obtain
a wide range of discounts, promotions and vouchers from
participating stores. Since it is a common tendency for
every consumer to seek out the best deals and bargains,
therefore, RecoBeE will be most beneficial to them.
Participation of all retail Unlike BuUuk and HungryGoWhere, RecoBeE is not only
aspects focused on the F&B outlets. RecoBeE includes the retail
and consumer electronics, which are highly frequented by
people. Therefore, users can enjoy a wider variety choice,
hence making our application more relevant to them.
Organized Community Essentially, we are creating a community of people who
Building will be able to interact with each other around the topics of
brand, products and stores. By creating a structured
framework and proper channel of communications, users
will able to better navigate the application and website, and
it will be more appealing to them to contribute towards
discussion.

11. LyRex
One-stop website Unlike Brandtology that crawls the web to search for
information, with all the opinions congregated onto the
single RecoBeE platform, it will be easier for LyRex to
generate business intelligence report for businesses.
8. Market Strategy
8.1. STP and Value Pro.
Segmentation
Currently, we are developing our application to work with iPhone and iPod touch devices
exclusively. We will expand to more platforms in the future, which will be explained in our
expansion plans.
We segmented our market based on a psychographic segmentation, adopted from VALS lifestyle
framework. The VALS framework segments the market based on 2 criterions, their motivations
which include ideals, achievement and self-expression, and their available resources, which takes
into account factors such as income, education, self-confidence, intelligence, leadership skills, and
energy.
Have such high resources that they can have any of the 3
Innovators
primary motivations
Have high resources and they are motivated by ideals
Thinkers
Have low resources and they are motivated by ideals
Believers
Have high resources and they are motivated by achievement
Achievers
Have low resources and they are motivated by achievement
Strivers
Have high resources and they are motivated by self-
Experiencers
expression
Have low resources and they are motivated by self-
Makers
expression
Have such low resources that they do not posses any strong
Survivors
primary motivations

12. LyRex
The complete explanation of the above segments can be found in the appendix.
Targeting
We have chosen innovators, thinkers, achievers and experiencers as our targeted market segments. With
experiencers as our primary target market due to the following reasons:
(Segments are arranged according to importance of the target segment)
1. Experiencers are our primary target market because they are motivated by self-expression. They
are the younger population and are willing to channel energy into social activities, and can form
an integral part of our RecoBeE community. They are also enthusiastic shoppers and spenders,
who should appreciate our downloadable vouchers.
2. Innovators have a wide range of tastes. They are a group of consumers that would benefit from
our application as it offers them the sales promotions from a wide selection of merchants. Being
the wealthiest people, they are also the largest spenders. To them, joining our community is a
smart move as we offer them a wide variety of offers in a single device.
3. Thinkers are mostly mature professionals who want to make well-informed rational decisions on
their purchases. They will appreciate RecoBeE as it helps them gather up-to-date on-site
information fed by the RecoBeE community. In turn, users who benefited may want to „give
back‟ to this community by writing their experience on certain retail stores.
4. Achievers are work-oriented, successful people motivated by achievements. Because of their
busy lifestyles, they will use our RecoBeE application for the sake of time-saving.
Positioning
LyRex will position itself as a company that provides the largest range of participating stores, and the
easiest way to find available discounts. We want to be seen as the status quo breaker. Revolutionizing
the way customers interact and choose vendors, putting customers ahead of the food chain. LyRex is a
word taken from both old German and Latin meaning “like King”, and it tells precisely what we want to
achieve, which is to treat the consumers like Kings.
Value Proposition (for consumers / end-users)
 We connect users from wherever they are, and increase the pace and speed of obtaining relevant
real-time information.
 We build a community of like-minded people who cares about getting the best deals. We also
obtain third party views on brands or events, so that people can make better and well-informed
decisions.
Value Proposition (for business partners)
 LyRex gives companies the ability to understand their customers better.
 We ensure that companies can capture their customers faster and better than before.
8.2. Marketing Tactics
Price
Our RecoBeE application will be available for download free of charge. For first time business
partners, we will give them their first monthly report for free.

13. LyRex
We will be basing our price on the percentage of sales of every consumer who used our vouchers.
Currently, we are in the early stages of our business and to effectively obtain a large number of
starting business partners, we will be charging them a low 1% of sales made through the vouchers.
Hopefully, this starting price would influence enough companies to sign up with us to create a
substantial database of business partners. In this early stage, market penetration pricing strategy is
desired.
For the reports, we have decided to make it flexible. We will be implementing a subscription fee for
monthly reports based on $500 a month for 12 months. If companies wish to purchase in bulk, we
will consider giving them a discount.
Place
Our application is downloadable through iTunes application stores in Singapore. Once we have
expanded overseas, we will include it in all the iTunes application stores. Vouchers are redeemable
at all participating outlets, and as long as Wi-Fi are available, end-users will be able to download
vouchers and access the twitter platform.
Since we are leveraging on iPhone‟s and iPod touch‟s location-based systems, end-users are
identifiable virtually anywhere in Singapore, or the world for that matter. They can find out where
these stores are or if there are stores near them that offer promotions on the i-Vouchers. Other online
computer users can access our website to contribute and take part in the community discussions.
We have identified a few good locations by considering the availability of Wi-Fi, the concentration
of stores, and the consumer population in that area. These places include malls, town areas, and
clubs.
Promotion
As we need to create a large enough database of companies to participate and partner with us, we
would be approaching these companies via personal selling. Thus we would need to study each
buying centers for each different company to effectively sell our idea.
During the launch of our RecoBeE application, we will be advertising our phone application on the
newspaper through collaborations with SingTel. We plan to make this advertisement a full-page
advertisement to attract attention.
For free advertising, we will also take advantage of Facebook‟s marketing potential and broadcast
our application on Facebook‟s website. We would then start a fan page that provides links to our
website, which allows us to reach out to people who require more information regarding RecoBeE. It
serves as another mean of advertisement.
We want to be able to harness the fullest potential of our community. Thus, making our application
fun and exciting to use may help us create a widespread hype on RecoBeE, and we plan to use this
as a form of viral marketing to promote interest and increase usage.
A separate, but important, viral marketing attempt is the use of our “Spread the deal!” function. In
this function, RecoBeE users can inform others of the deal that they have received by telling their
friends through the Short Messaging System (SMS). In this way we can effectively reach out to
more people with less effort on our part.

14. LyRex
As part of our sales promotions, we have a point system, and a rebate system established for the end-
users and participating companies respectively.
For the end-users, we allow them to earn points, which they can convert to cash to offset payments
in any of the participating stores. These points will be accumulated through the use of the vouchers.
The points earned depend on the amount spent. In this way, consumers will demand the shops to key
in the correct amount. Once we have registered the amount of points into our system, we can
determine the commission. This is one way to get the end-users themselves to ensure that the correct
amount is recorded, while encouraging spending.
For the participating companies, they will be able earn rebates for every entry of a used voucher.
This rebate money can be used to purchase their monthly or other reports. This will ensures that the
participating stores do not attempt to provide the wrong information regarding their sales made from
the vouchers.
9. Technical Plan
To achieve our goal, we recognized that information delivery is critical to the success of LyRex. After
review through wide varieties of existing technologies, we select iPhone SDK 3.0 and Twitter REST
API. Twitter API enables us to gather real-time information and share it with the public.
To use the discount offered by RecoBeE, end-user must click on the voucher button on the iPhone. The
application will generate a bar code on the iPhone screen for the cashier to scan.
To build a community requires leadership. We‟re not persuading people to want something they don‟t
have. We are simply finding a group that is disconnected, but already have a yearning. We provide them
with the framework of RecoBeE and guide them on how to use it. We provide announcement/
notification function inside RecoBeE so that end-user can get the attention they long desired for using
RecoBeE.
10. Risk
Dependent on two parties
For RecoBeE to succeed it would require a large pool of sign-ups from the businesses and brands. Only
then, can the end-users be able to benefit from using our application to hunt for the best promotions,
vouchers and discounts. Hence, signing up major brand names in the retail, F&B and consumer
electronics industry will be the primary aim of our business development unit.
At the same time, participating companies would want to reach out to as many consumers as they can.
Company‟s would most certainly demand to have a wider outreach as they want to promote their brand
and product to as many as they can. Thus, a key for success would be marketing the RecoBeE platform
to encourage users to use our application.
This two-prong approach is necessary, as one cannot do without the other. Without discounts, there will
be no end-users. Without end-users, the will be no participating companies offering promotion. Thus, to
minimize this risk it is necessary to establish a good network of companies and also retain customers by
utilizing strong marketing and providing good customer experience.

15. LyRex
11. Barriers to entry
11.1. Intellectual Property
Website
To ensure people will be able to identify us easily on the web and prevent competitors from using
our name, we will have our own website - www.recobee.com. This is currently not owned by any
party and we will proceed to make purchase.
Patents
Having patented processes and proprietary systems would enable us to impose considerable barriers
of entry for our competitors. These are the two areas we are considering to patent:
- Processes that will enable the integration of mobile and Internet communications.
- Discount, promotion or voucher redemption process, which is unique as it involves the use of
bar-code.
However, we do recognize that filing a patent would mean making the process public , therefore, not
all the processes will be patented to enable us to have a competitive edge.
11.2. Established community of users
The key to establish a community would be to attract the end-users and keep them. For the survival
of any community, e.g. Twitter and Facebook regular users would be needed to sustain and build the
community. By establishing a close knitted community of end-users and making them comfortable
with the RecoBeE platform, they will not switch over to another rival application easily.
12. Threats
12.1. Bargaining power of suppliers
Forward Integration Analysis
Mall Owners
We realize that a potential competitor Mall owners have a unique position as it
would be the mall owners whom we work has access to all the tenants, making it
with. Being the dominant players in mall easier for them to convince the tenants to
spaces in Singapore, CapitaMall could sign-up. However, the mall owners
potentially create a similar application and recognize that by taking up such a job will
sign all its existing tenants under their significantly require investment. As such
application. Thus, this would mean that LyRex will approach the mall owners to
LyRex will be unable to offer promotions request that we be linked up with the
from the tenants. tenants.

16. LyRex
Food and retail chains It would be unwise for companies to create
Large F&B chains such as MacDonald‟s a brand specific application as it will create
and retail chains such as Topshop would more hassle for consumers themselves. This
boycott our system. Instead, they create an is because consumers would prefer a one-
application that is specific to their brand stop application to track all the promotions,
only. instead of individually each brand
application .
12.2. Threat of new competitors
Copy Cats Analysis
Copy cats are certainly a threat to LyRex‟s While we cannot say that no software
business because software developers can developer will replicate what we have done
easily replicate the software and website. exactly, the barriers of entry will prevent
Furthermore, they would be keen to have a them from doing so:
slice of the lucrative market. The moderate 1) Intellectual Property
cost of entry, not-so steep learning curve 2) Established community of users
and pro-start-up culture also favors them. 3) Brand Equity
12.3. Bargaining Power of customers
Power of the people Analysis
LyRex which aims to build a community LyRex needs to make known to all users of
where people can share and discuss RecoBeE that the comments, feedback and
information and ideas must take great care discussion they contributed will be used to
in managing the community. For example, help businesses and brands better improve
if we fail our responsibility and betray their their promotion and services. All of which
trust by selling confidential information, are for the betterment of customer‟s
then it would have severe repercussion. shopping experience.
13. Finance
Sales Forecast
Currently, there is about an estimated 100,000 iPhone users in Singapore. We expect that number of
iPhone users will grow at an average of 25% per year. This is possible given the iPhone is less that 1
year old in Singapore and that rival telecom providers have yet to lauch iPhone. The use of our
iVouchers will drive 65% of our sales at the start while 35% of our sales would be generated via selling
market reports to companies.
In the third year as LyRex seeks not only to cater to iPhone users but to a wider audience of smartphone
users. We assume that by the 3rd year, we would be able to reach 30% of our target customers. Growth
in the number of partner companies, to use our iVouchers for their promotions will increase revenue

17. LyRex
from our market reports business. Such high growth potential remains feasible as RecomBeE can
expand geographically to reach out to even more consumers and business.
Profit and Loss Statement
LyRex is expected to suffer a loss in the first year due to the development of our system within the first
6 months without any revenue. The initial 6 months after rolling out the system is expected to be slow as
consumers are still unfamiliar with our company and what we can offer.
By the second year and third, with part of our viral marketing campaign, sales is expected to pick up
dramatically as more consumers start using RecomBeE and companies will start join our market report
program to better understand their customers
LyRex is also able to maintain a high gross profit margin of 99% as our only cost of service is through
lending partner companies barcode readers which we rent for them to scan the ivoucher.
Operating margin is expected to increase from 47% in the second year to 74% in the third year. Majority
of the operating expense is wages and since we are only increasing headcount slightly in the third year,
the increase in revenue outpaces increase in our wages, leading to higher operating margin.
Doing a breakeven analysis, LyRex will breakeven in the 3rd quarter of the second year of operation.
Lyrex Pte Ltd
Profit and Loss statement
For Year 2010
2,010 2011 2012
Sales Revenue 75,215 $780,306 $1,880,630
Less: Cost of Goods Sold $7,605 $15,840
Gross Profit 73,685 $772,701 $1,864,790
Gross Margin 99% 99%
Less: Operating Expenses
Sales and Marketing Expenses 9,400 $7,200 $7,200
General and Administration
Expenses 273,180 $398,705 $456,940
Depreciation of Fixed assets 1,050 $1,550 $2,633
Total Operating Expenses 283,630 $407,455 $466,773
Operation Profit before Income
Tax (209,945) $365,246 $1,398,017
47% 74%
Other incomes 0 $0 $0
Total income before income Tax (209,945) $365,246 $1,398,017
-
Loss Carry Forward - $209,945 -
-
Tax Exempt Amount - $200,000 -$200,000

18. LyRex
Total Taxable Income - -$44,699 $1,198,017
Income Tax Expense (37,790) -$8,046 $215,643
Profit after Income Tax (209,945) $373,291 $1,182,374
Cumulative Profit/Loss
2000000
1500000
1000000
Cumulative Profit/Loss
500000
Breakeven
0 in
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Year 2 Q3
-500000
Cash flow Statement
Figure 1 shows LyRex total cash requirement for the first 3 years on the basis of three different
scenarios. The key levers for the simulations are the projected growth in income and projected growth in
expenses.
The assumption for the base scenario is based on the figures in figure 2. On this basis, LyRex would
require $206,000 of financing.
The best case scenario assume an increase in sales of 10% and a decrease in costs of 10%. The best case
scenario would require $180,000 of financing.
The worst case scenario assume an decrease in sales of 10% and a increase in cost of 10%. The worst
case scenario would require about $250,000 of financing.

19. LyRex
$2,500,000
$2,000,000
$1,500,000
Normal Case
$1,000,000 Worst Case
Best Case
$500,000
$0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
'09 '09 '09 '09 '10 '10 '10 '10 '11 '11 '11 '11
($500,000)
Financing
LyRex Pte Ltd will be conowned by 4 founding members. Each of the founding members will contribute
$2500 as part of seed capital which will amount to a total of $10,000. LyRex will also be seeking seed
capital from government grants like Spring Singapre‟s Youth Entrenepeurship Scheme for Start-up of up
to a maximum of $40,000.
14. Mile Stones
15. Expansion Plan
LyRex aimed to move from information delivery system to an intelligence system. Once LyRex gather
enough information from different individuals, it can start pushing personalized advertisement. With the
right information and algorithm, we will be able to recommend the right product for different
individuals. Consumer will no longer be constantly bombarded with advertisements and promotions that
are irrelevant or disruptive, thus enjoying a better shopping experience using RecoBeE.

20. LyRex
To increase our end-user population, we must bring RecoBeE to other platform. Google‟s Androids
would be our primary target because it is similar to iPhone OS and 34 companies have participated in
this development.
LyRex will expand oversea depending on the demand request. With our website, there will be a section
where end-user can request for other city / country. Once the demand is reached, we will open up the
availability in that city. At the moment, we are leaning towards Taiwan, Hong Kong and eventually
Australia.
16. Exit Strategy
In 3 years time we intend to trade sale the company to a larger technological company like Apple or
Google. However, we will sell the company only if the companies offer meets our valuation.

21. LyRex
References
[1] N.A. Apparel Retail in Singapore, industry profile, Sept 2008. Datamonitor. Retrieved 13 May 2009.
[2] N.A. apparel retail in Asia Pacific, industry profile, Aug 2008. Datamonitor. Retrieved 13 May
2009.
[3] N.A. food service in Singapore, Sept 2008. Datamonitor . Retrieved 13 May 2009.
[4] N.A. foodservice in Asia Pacific, Sept 2008. Datamonitor .Retrieved 13 May 2009.
[5] N.A. consumer electronics in Singapore, Sept 2008. Datamonitor .Retrieved 13 May 2009.
[6] N.A. consumer electronics in Asia Pacific, Sept 2008. Datamonitor .Retrieved 13 May 2009.
[7] N.A. Asia Pacific market research, Nov 2004. Datamonitor . Retrieved 13 May 2009.
[8] N.A. Global market research , Nov 2004. Datamonitor .Retrieved 13 May 2009.
[9] NA. Retrieved from Website: http://www.apple.com/pr/library/2009/01/21results.html . Retrieved 13
May 2009.
[10] NA. Retrieved from Website:
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_298790.html. Retrieved 13
May 2009.
[11] mobile phones in Asia Pacific, industry profile, Dec 2008. Datamonitor. Retrieved 13 May 2009.
[12] NA. Retrieved from Website: http://www.apple.com/itunes/billion-app-countdown/. Retrieved 13
May 2009.
[13] NA. Retrieved from Website: http://www.android.com/about/ , http://store.ovi.com/,
http://www.microsoft.com/windowsmobile/catalog/cataloghome.aspx. Retrieved 13 May 2009.
[14] NA. Retrieved from Website: http://www.web-strategist.com/blog/2008/11/19/social-networks-site-
usage-visitors-members-page-views-and-engagement-by-the-numbers-in-2008/. Retrieved 13 May 2009.
[15] NA. Retrieved from Website: http://blog.compete.com/2009/02/09/facebook-myspace-twitter-
social-network/. Retrieved 13 May 2009.
Appendix
VALS lifestyle framework and segmentation
Innovators – These are the consumers that are on the leading edge of change, and have the most
income. These people have high self-esteem and much resource, so much so that they are able to indulge
in any or all self-orientations. Image comes first to them, as they believe it reflects their taste,
independence and personality.

22. LyRex
Thinkers – Thinkers have high resources and are motivated by ideals. They are mostly mature and well-
educated professionals, who want to be well-informed about what is going on in the world. These people
are open to new ideas and social changes, and although they have high incomes, they are still practical
and rational consumers. Thus, thinkers look for value.
Believers – These people have low resources and are also motivated by ideals. They are conservative
and predictable, with their lives centred on family, friends, church, etc. Their incomes are modest, and
they tend to favour local or familiar goods and brands.
Achievers – Achievers have high resources and are motivated by achievements. They are mostly busy
work-oriented successful people, whose satisfaction is derived from their jobs and families. These
people respect authorities and prefer to keep the status quo of the society. They are most likely to
purchase high-end goods to show-off to their peers.
Strivers – These people have low resources and are also motivated by achievements. They have similar
desires as the achievers, but lesser resources to acquire them. Style is of utmost importance to them as it
allows them to appear to be like the people that they admire. Strivers are concerned about the opinions
of others about themselves.
Experiencers – Experiencers have high resources and are motivated by self-expression. They are the
youngest of all the segments (median age of 25), with lots of energy that they ultimately channel to
physical exercise and social activities. They are enthusiastic consumers who spend a large proportion of
their income on clothing, fast food, music, and other youth activities. They like new products and
services, excitement and variety, and they focus much attention on fashion.
Makers – These people have low resources and are motivated by self-expression. They are practical
people who value being self-sufficient. Makers are unimpressed by material possessions, and prefer
value to luxury. They have little interest for the outside world as most of their lives are centred on their
own families and work.
Survivors – These are the lowest income people, with too little resources to have any customer self-
orientation. They are mostly older people in their 60s, with strong brand loyalty. Survivors are best
described as a modest market with little motivation to buy.