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Momentex – Service Description
Imagine … you have been driving along a toll road, and you are thirsty, As you approach a serve area, you consider stopping for a beverage. However, when you think about the time getting off the highway will add to your trip, you decide to forego the 10-minute detour and to continue driving, thirst unquenched.
… As you pay your toll, you notice that you have the option of using the Gulp & Gosm service to purchase a
cool beverage, pay for the drink and the toll at the same time, and have it dispensed to you right at the
tollbooth, You have your money in your hand, and the drinks look refreshing. Just think … would you buy?
Momentex brings Gulp & Go service to drivers and toll road operators by providing expertise in business activities that are key for successful implementation, while outsourcing non-critical functions that are not core competencies. Momentex believes that it currently possesses or can develop the six core competencies critical to its success.
|Key Business Activities|
|Understand drivers’ needs & design services to meet criteria needs|
|Secure exclusive right to sell on location and manage suppliers and delivery methods|
|Oversee development and implementation of automated services driver needs & trends|
|Oversee integration into electronic and traditional payment systems management, marketing & branding|
|Optimize traffic flow through service design and computer simulation|
|Supervise systems maintenance and beverage management|
|Design programs to educate drivers and institutionalize service|
|Market service to time-sensitive drivers to increase purchase rates|
|Train and motivate site staff who interface with the system|
|Identifying emerging driver/customer|
|Pinpointing new distribution channels|
|Designing services to capitalize upon|
|Creating value through data|
|Designing optimal systems integration|
|Negotiating and structuring alliances|
Momentex’s Gulp & Go service provides driver convenience by enabling drivers to purchase and immediately receive items, through an automated process, at locations where they are already required to stop – tollbooths.
Service Locations. Momentex targets full service toll plazas within the 35 states that operate toll roads. Momentex uses traffic simulation models and driver data to select the best-suited plazas based on demographics, plaza volume, and traffic congestion.
Product Offering. Momentex will offer canned beverages. As a simple decision process is important to avoid disruptions in traffic flow, three to five beverage selections will be available and will include a cola and a diet cola.
Product Price. Market research indicates that drivers are willing to pay a premium for the convenience of Gulp & Go. Momentex anticipates at least a 25-90% price premium over the customary convenience store beverage price (an $0.80 can of soda could sell for $1.00 to $1.50).
Beverage Ordering. Drivers select their beverages at the toll collector’s booth through an ergonomically-designed, user-friendly ordering interface.
Payment. Payment occurs at the same time as drivers pay their tolls. Momentex has developed the service to incorporate electronic toll collection (ETC) systems, thereby providing for not only cash payment to the toll collector, but also electronic payment via ETC transponder.
Beverage Delivery. Drivers attain their ordered beverages at a Gulp & Go dispenser which is located two car lengths past the tollbooth. Momentex has designed the beverage dispenser with a specialized delivery arm to facilitate quick retrieval and accommodate multiple beverages.
Current Stage of Development
Momentex has patented the product delivery mechanism and service process, developed the execution plan and software integration, and has begun preliminary negotiations for a demonstration site with two private toll roads, the Dulles Greenway (located in Virginia) and Transportation Corridor Agencies (located in California). To secure approval for a demonstration site, Momentex is conducting additional market research and refining operations.
On-going Concept Testing. The Momentex team has conducted focus groups, surveys, and extensive interviews, questioning stakeholders at all levels within all industry sectors related to their business. The following table identifies the breadth of discussions that influenced such areas as machine and process design, business model structure, negotiation planning, marketing strategy, profitability assessment, and feasibility. Generally, several levels and rounds of interviews and face-to-face meetings were held with each of the following groups.
Research Interviews and Concept Testing
|Toll Road||Operations||Academics/Political||Beverage/Dist.||Toll Road Drivers||Intelligent Transport.|
|Transp. Corridor (CA)||Versatile Control Systems||Wharton Faculty||Coca Cola||User Survey (100)||Texas Instruments|
|Dulles Greenway||Technique Applied Sciences||MIT Faculty||Pepsi||MA Driver Interviews (30)||Intelligent Transp. of Am|
|MA Turnpike||Ergonomics Consultant||Wharton SBDC||Virgin Cola||CA Driver Interviews (15)||Wayne-Dresser|
|Orlando-Orange Gnty||TransCore||MA Speaker||Cadbury||PA Driver Interviews (50)||Amtech Systems|
|FL Turnpike||TRMI||MA House||Starbucks||Focus Groups (2)||Sentinel ID|
|NH Turnpike||Lockheed Martin IMS||MA Senate||Wittern Group||MIT Transportation Eng.|
|NJ Turnpike||SawNet||MA Transp Committees||VendSource|
|NY Thruway||Epic Cycle Interactive||I BTTA – Trade Assoc.||Canteen Vending|
|KS Turnpike||Wada Metal of America||Industry Retirees||Royal|
|IL Turnpike||ProModel/SimTech||Mason & Martin||Dixie Narco|
|PA Turnpike||Prism Quantitative Methods||Cesari & McKenna||Sevamco|
|Dulles Toll Road||Peck & Associates||Crane|
Continual Operations Refinement. Since the Gulp & Go system integrates existing hardware and software components, Momentex works to tailor the service process design to specific toll road infrastructures.
Pilot Program. Momentex has worked with toll industry experts, business consultants, vending machine companies, lawyers, and engineers to create a detailed pilot implementation plan for a number of toll roads who have expressed an interest in a Gulp & Go pilot operation. The Dulles Greenway, for example, has offered operations data and has placed Momentex in contact with their systems integrator. The Company has prototype ordering and dispensing hardware and system designs for automated billing bundled into current electronic transactions. Refer to the hardware, software, and integration designs in the appendix.
Proprietary Position and Barriers to Entry
Momentex has designed its business model to create barriers to entry against potential competition and provide Momentex with a competitive advantage.
Breadth of Knowledge and Relationships. Momentex has spent 18 months building its knowledge of toll systems, drivers’ needs, and beverage distribution. To build upon this knowledge, Momentex has formed a network of advisors who have extensive experience in these key areas and provide the capability for developing and securing a pilot operation and eventual roll out. In addition, Momentex management has introduced the Gulp & Go service platform to numerous toll roads and has begun to forge relationships with these groups and the politicians who will be instrumental for national roll out of the Gulp & Go platform.
Development Time and Cost. The costs to enter the target market include time and expense to design, develop, and manufacture the Gulp & Go dispenser and build the service infrastructure (installation, maintenance, and inventory management). A company entering the market must incur this investment before experiencing project revenue.
Complicated, Integrated Product. Momentex believes that large beverage companies would be the most likely market entrants. However, to implement the Gulp & Go business model, expertise outside of traditional beverage production, distribution and marketing is needed. With automation and integration into toll systems key to a successful execution, beverage companies would view this high-tech service as outside of their business scope.
First Mover Advantage. The Gulp & Go service creates a new scarce resource with economic value by creating a new distribution channel to leverage a captive customer base and the existing real estate at the toll plaza. Once Momentex installs the Gulp & Go service platform at a tollbooth, Momentex locks up the scare resource and effectively prevents competition since space limitations make the introduction of a competing service impractical. As the developer of the Gulp & Go business model, Momentex plans to leverage this first mover advantage by negotiating with toll authorities to secure exclusive rights to retail products at points of driver-interface.
Legal Barriers. Given the anticipated competition, the Company has created legal and contractual barriers to entry. Momentex has designed the Gulp & Go service platform to be automated using a proprietary process. The platform is protected through a series of patents and service marks on 1) the unique ordering and efficient beverage delivery process, 2) the unique product delivery interface, 3) the automated integration into toll and electronic payment systems, and 4) artwork which enhances the concept and creates a brand. Service marks include “Gulp & Go” and “Ultimate Convenience” and Internet domains include Momentex.com,GulpandGo.com, and GulpNGo.com.
|Table of Contents||Appendices|
|1. Executive Summary
2. Company Overview
3. Service Description
4. Market & Strategy
5. Business Model
9. Risk Factors
|Market Research Survey
Traffic Flow Analysis
Cash Flow Statement
|All information herein is confidential and belongs to Momentex|