The MARKET

For leisure motorcyclists, it’s about the journey; they ride to dream, discover and explore (Tynan, 2011) “Although mainly a solo activity, motorcycling can be very social and motorcyclists tend to have a strong sense of community” (Wikipedia: Motorcycling, 2015). For others, performance is most important; lap times, optimum lean angle and the correct engine speed or RPM is paramount.

Motorcyclists face higher risks compared to other forms of road transport. Hazards encountered could be mechanical breakdowns, flat tyres or accidents due to human error. Riders should never take their eyes off the road for longer than is absolutely necessary (NZ transport agency: Safe riding tips, 2014).

Target Market

Our offering is targeted to leisure motorcyclists whether touring on a day trip or on a multi-day overseas trip. Depending on their type of riding they could be a solo or group rider either on a Standard, Cruiser, Sportbike, Sports Tourer or Adventure Bike.

Target

 

Currently we are in the process of creating Personas to be fine tuned through 1 to 1 interviews which will help develop targeted value propositions for marketing to those segments.

Market Size

In the developed countries, motorcycles are used “mostly for recreation, as a lifestyle accessory or a symbol of personal identity” (Wikipedia: Motorcycling, 2015). Motorcycle registrations researched from several sources help determine the market size, which is a whopping 33,677,181 registrations. We intend to debut in Oceania (NZ and Australia) which have 63,890 and 780,174 registrations respectively; but also intend to target the USA. With 8,410,255 registrations, USA is the largest individual market and a logical choice for us to accelerate hardware commercialisation and raise  capital in subsequent rounds. To raise capital in the same market where product will be sold is also a prudent forex hedging strategy.

Our primary research in NZ has revealed that 74% of respondents are leisure motorcyclists. By extrapolating this to the other markets, the significance of market size and opportunity is apparent.

Market size

 

In our target markets of NZ, AUS & US the total market size is approx. 7 million. By applying this to Roger’s Bell curve for 5 customer segments of technology adoption, we determine that 1,095,711 riders are early adopters. A future weekly roundup will provide insight into revenue model and forecasts but for now it is adequate to state that per our FY5 sales forecast of 100,000 HUDs our estimated market share will be 9% of the early adopters which rules out any concerns about having to cross the chasm to target the early majority as addressing that now is not a necessity.

graph

 

What really is Reyedr?

Think of the HUD as a helmet mounted UI for motorcyclists to access relevant information during a ride. The HUD is designed to present data in a non-distracting way with a maximum of 3 data points displayed; which are user definable and with screens swichable through voice or gesture control. Through a series of validation rounds we have determined the MVP for Reyedr HUD is Speed, Navigation & Time. The MVP of Reyedr App consists of the Social aspects of Ride Planning, Routing & Sharing; with Navigation an integral function of Routing and tracking rider location for Safety.

We know our HUD is a cool and sexy product and that hardware attracts competitors and knock-offs; the only way to prevent commoditisation is to build a network effect which we will through our Reyedr App and IoT platform. Our SDK will permit manufacturers of other sensors and devices connect through our App and provide info to the rider e.g. Action Camera controlled through the HUD by voice or gesture control. The end goal is to engage users by applying AI (Artificial Intelligence) to proactively provide activity related information whether on or off the bike.

By building a network, a social community that connects riders, we will increase the valuation of our company at exit in about 5 years time; as the network will help cross the chasm to ‘Early Majority’ and with the long tail thus extended therefore a more sustainable business model.

More on our Competitors, Unfair Advantage and Product Roadmap in the next newsletter.

 

What we have achieved during LL 2016 Week 4

  1. Increasing our Social Media presence for customer engagement.
  2. Customer interviews and surveys WIP.
  3. Hardware, been evaluating suitable technologies for optimising optics.
  4. Regular mentor meetings and engaging with specialists have commenced.
  5. Working on methodology for bottom-up approach for total addressable market.

 

I wish my bike leaked Coffee rather than oil!

 

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Team member profile: Jens Steinigen Lead Dev & Systems Integrator | Co-founder & Director

I am a sucker for new gadgets and technology, which makes my life easier and more convenient. I’d like to live in the future as pictured in many science fiction movies and novels. If there’s a problem, I’ll try to find the best solution to it and more often than not it involves technology of some kind. I like a great looking design and solid sleek solutions with a streamlined experience with the things I use. My dream is to have a fully connected life, where every gadget, every appliance, every single piece of technology talk to each other and I am in the middle of it, orchestrating their buzz.

I started my journey in a small town in Germany, from where I moved to the big city – Berlin – to study in the only field, which I was certain would provide me with the tools and knowledge to make my dream become reality, Computer Science. After completing my studies, I worked for several years as a Systems Engineer for server systems and network infrastructures, designing, planning, implementing and maintaining integrated, highly available, robust and user centric solutions for business clients.

I left my current job as Software Developer at Datacom and committed full time to our business, where I now lead the development of our software and hardware, to bring it to a successful launch in the near future.  I am excited and look forward to an interesting journey and I hope some, if not all of you, come along for the ride and be part of our success! May your bikes be fast, your journeys safe and a hot coffee available at any time!

Regards,

Kal Gwalani, CEO & Founder

mango teQ Limited

CEO & Founder