Dog Tracker Nano
- Investment sought:
- Equity offered:
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.
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.
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.
There are over 60m dogs in the EU alone with an estimated 90m adults having at least one dog in their home.
The petfood industry estimates the value of the pet market in France, Germany, Italy, Netherlands, Spain and the UK to be €8.5bn with €1.9bn spent on accessories.
While there is no ‘universal truth’ for dog owners or a single problem to solve, wearable technology such as the Dog Tracker Nano can be used to help address the two most common and important concerns.
- Keeping a dog safe from misadventure, theft or loss.
- Keeping a dog happy, fit and healthy.
Recent studies have shown that while the UK for example, is a nation of dog lovers, many pets are overfed, under-exercised, badly trained and overweight and that loss and theft is on the increase.
We believe that technology is no longer a barrier for mass market dog owners and that an affordable, easy to use product with an intuitive app, marketed in partnership with leading brands, will appeal to the largest dog owner markets in the EU.
Our reputation, marketing strength and endorsement from partners led to a significant interest and demand for founding product, Dog Tracker Plus with over 120,000 unique hits on the Plus site.
We have capitalised on that demand by creating a new site for Dog Tracker Nano with a link between the two. We have also developed a new online store and purchase model with a simplified back end for ease of use.
We feel we understand our market; have the credibility of success in the sector; a history of innovation and rigorous testing, and are able to move fast into the mass market. Our partnership approach ensures a high presence and influence in the market, at low cost to the business.
Characteristics of target market
All owners want to know where their dog is at all times with many worrying about their dog going astray, being lost or stolen. Even those that rarely let their dog off the lead, fear the worst could one day happen to them.
It is estimated some 10m pets go missing worldwide and 1 in 3 pets are lost at least once in their lifetime. In the UK alone 126,000 dogs are picked up by local authorities each year with a variety of wardens, vets, microchip and search companies doing their best to reunite them with their owners.
Increasingly dog owners are recognising that being off the lead is essential for health and well-being and are looking for technology to ensure they are safe.
Keeping a dog fit and healthy is a challenge with inadequate food labeling and little information available for daily dog care.
Nano aims to meet these needs through a single device and a powerful app that combines activity data with self-entered information to calculate ideal weight, exercise and nutrition.
Exploiting the power of partnership.
We understand the market. Management has 10 years’ experience in this sector and a history of innovation and rigorous testing. Our partnership approach should ensure a high presence and influence in the market at a low cost to the business.
In 2016 we will focus on brand development, in-house and partner communication, using all available marketing channels.
We estimate that among our partners - PDSA (welfare), Pets Corner and VetUK (retail) and Eurotunnel Le Shuttle (travel) could reach over 2m dog owners through a single campaign and will reach over 3 million owners repeatedly over the course of 12 months.
Similar programmes would be developed with international partners and licensors in key markets in the pet insurance, pet food, telecomm and pet services sectors.
We will continue to provide product and campaign images, content, branding and design to ensure consistency. And will frequently update the Nano website and online store to ensure top position on all search rankings (as now with Dog Tracker Plus) and the highest possible conversion from site visit to purchase.
We will continue to invest in customer service recognising that even at an entry level price, some owners will take time to make a purchase.
Commercial partner profile examples.
PDSA - The UK’s leading welfare organisation operating 51 hospitals, numerous veterinary surgeries, charity shops and national events. Providing 2.7m free treatments per year.
Eurotunnel - The UK’s leading carrier of dogs travelling to/from Europe. Over 1.1m dogs carried to date.
Pets Corner - The UK’s largest independent premium pet retailer with over 100 stores.
VetUK - one of the largest direct to customer online retailers of veterinary and pet products who recently processed their 2 millionth order.
Dog Friendly - the UK's largest database of places where your dog will be as welcome as you are, with over 100,000 members.
There are a number of tracker producers in the EU and two of note selling only to the US. Recently there has been a spate of new hopefuls seeking funding but they lack our expertise and detailed knowledge of the EU market.
We have an early mover advantage with what we believe is the right product, proposition and price for the mass market. It is important we continue to build value now, while the likes of MARS Petcare, Motorola, Zoetis, EE and Fetch consider their involvement in GPS tracking / activity monitoring of pets.
Dog Tracker Nano comes from an experienced developer with successful products sold to dog owners across the world.
We will rely on four strategies for competitive advantage .
1. Maintain a barrier to entry through exclusive partners in 10 pet verticals:
Pet retail stores.
Online pet retail.
Pet nutrition and food.
Veterinary, pharmaceutical and pet care.
Internet of Things / Telecomms.
2. Build a strong portfolio of complimentary products under the Dog Tracker name for segmentation and price differentiation – each delivering technical excellence at a competitive price.
3. Focus only on high end, high functionality devices with dedicated apps and exclusive options and accessories to increase value and margin.
4. Secure exclusive licensing, wholesale and distribution agreements throughout the EU.