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Tree Tran 2.009 Orange Team Final Presentation December 12, 2005 Outline Customer Needs Solution Competition Customer Feedback Market Financials Customer Needs Saplings weigh 50-450 lbs Difficult to transport, plant, and position in hole Cannot handle tree by trunk

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tree tran 2 009 orange team

Tree Tran 2.009 Orange Team

Final Presentation

December 12, 2005

outline
Outline
  • Customer Needs
  • Solution
  • Competition
  • Customer Feedback
  • Market
  • Financials
customer needs
Customer Needs
  • Saplings weigh 50-450 lbs
  • Difficult to transport, plant, and position in hole
  • Cannot handle tree by trunk
video feedback
Video & Feedback

“I can’t believe I just planted a tree with your device! This is awesome… it is exactly what [CityRoots] is looking for! – Trina Hofreiter, CityRoots

“It’s so easy to move around, even with a heavy tree on it.” – East Campus resident

market
Market

Industry size:

  • $33.5 billion spent in Do-It-Yourself gardening and landscaping
  • 3 million trees planted privately each year by individuals
market8
Market
  • Target customers:
    • landscapers
      • 1.1 million workers
    • equipment rental companies
      • 4000+ nationwide
    • non-profit organizations that plant trees
      • 47 major organizations
business model

Tree Tran

distributor

landscapers

equipment rental companies

non-profit organizations

Business Model
financials
Financials

Market Penetration

Manufacturing Cost

Total cost: $400/unit

Price: $1200/unit1500 units/year sold

financials11
Financials

Profit Growth

Year

Year

Year

Year

  • IRR=25% with $500,000 initial investment
  • 2nd year break even
  • 3rd year steady-state: 1500 units/yr sold (2% market)
  • $270,000 net profit by end of 3rd year
acknowledgements
Acknowledgements

Course instructor: David Wallace

Lab instructors: David Gossard, Doug Vincent

Pappalardo staff: Dick Fenner, Joe Cronin, Bob Gertsen, Steve Haberek, Bob Nuttal

Team mentors: Ethan Crumlin (MIT), Ben Linder (Olin)

2.009 instructors, TAs, and Maureen Lynch

Urban Ecology Institute: Trina Hofreiter (CityRoots)

MIT Libraries

references
References

“Community Forest Partnership.” Urban Ecology Institute. http://www.bc.edu/bc_org/research/urbaneco/program/default.html

“Community Tree Planting Guide - Time for Trees.” Tree Trust. http://www.na.fs.fed.us/spfo/pubs/uf/treeguidehtm/chapter1.htm#Chapter%201

“How to Plant Trees.” The National Arbor Day Foundation. http://www.arborday.org/trees/video/howtoplant.cfm

“Organizations that Plant Trees.” Marshall House. http://www.mhmail.com/Trees.html

“Volunteering and Tree Planting.” The National Arbor Day Foundation. http://www.arborday.org/programs/volunteers/textstates.cfm