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Mystery on Main Street

Interactive B2B2C big data adtech/martech A/R app for B&M's

USA, Florida
Market: Tourism, sport, Other, Artificial Intelligence, Virtual and Augmented Reality, Mobile applications
Stage of the project: Prototype or product is ready

Date of last change: 27.03.2024
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Idea

Interactive B2B2C big-data martech/adtech mobile app using AI, A/R and gamification to promote local B&M and events businesses. Players visit locations they chose. We gather shopper preference data.

Current Status

NOTE: MoMS is currently non-revenue producing and non-MVP. HOWEVER:
-We have a detailed analysis projecting substantial revenue and ROI, year 1.
-We have personally surveyed over 1,100 potential users in the US and Canada with overwhelming positive response.
-We have commissioned sales agents ready.
-We have multiple pilot sites prepared to launch.
-Our executive management team has 150+ years of combined sector, technologies, business, sales and more experience.

Market

Mystery on Main Street’s (MoMS) unique interactive, data rich marketing and advertising mobile app uses gamification to revitalize communities, promote local shopping and sustain economic growth. The interactive “whodunit” game for mobile phones will be freely available to the public and downloadable through the Apple App Store and Google Play. In each “gameplay”, the application takes players from location to location to receive clues and solve a unique mystery while promoting local merchants (e.g.: storefront retailers, restaurants, bookshops, events, entertainment centers) by encouraging the player who must browse within these locations as a core function of completing the game. Participating locations are viewable worldwide within the app’s map but the clue is only viewable within the location, and only within a small window of time. This motivates impulse buying and return shopping. The first player to solve the mystery receives a valuable prize. Gameplays can be engineered to continue for a determined time. Think of this as Groupon meets scavenger hunt and Pokémon Go, but players and participating merchants mutually gain with no membership or subscription required.

Data for the most successful similar mobile game reveals the average player is a 26 y/o woman making US$90k per year, the best player is 70 and group players range in age from 16 to over 60. In other words, this is not a kid’s game. Personal, legally required data including gender, DoB/age, address, and contact information collected from the player is used to determine prize winning eligibility. Data will not be sold and instead, is used to determine demographics information.

- As of 2022, there were over 2,045,422 brick-and-mortar retail merchants and eateries across just the U.S.
- As of 2022, physical stores account for 87% of retail US sales, e-commerce comprises 13% of total sales
- Physical stores are still expected to account for 72% of all U.S. retail sales by 2024
- Between 2020-2021, U.S. consumers spent 11% more time and money in brick-and-mortar stores
- As of 2022, 94% of consumers have returned to shopping at physical stores
- 73% of consumers prefer brands with personalized shopping experiences
- As of 2021, U.S. retail sales reached over $4.44 trillion, an increase of 10% from 2020
- As of 2022, total global retail sales are valued at a whopping $26.7 trillion, projected amount to
around 31.7 trillion U.S. dollars by 2025
- Calculated 2023 (only USA) TAM/SAM/SOM: US$ 1,254,506,400 / US$ 953,424,864 / US$ 204,542,200

Problem or Opportunity

Walk-in businesses do not have a method to gain insight on non-buyers. Furthermore, they rely on word-of-mouth and limited promotional methods (Facebook ads, Google ads, print flyers, etc.) that cannot and do not provide reliable data necessary to determine if these routines are proving valuable to achieve their growth potential. Their marketing spend is a product of these efforts, producing a “Catch-22” - a problematic situation created by the solution.

Solution (product or service)

“MoMS” is creating a unique interactive, big data martech/adtech mobile app using AR, AI and incentivized gamification to promote sustained economic walk-in business growth. User/Players visit locations they chose, receive clues, solve a mystery and receive cash prizes. Location gathers data on non-buyers! This opens pin-point advertising and marketing opportunities unavailable anywhere else.

Competitors

Similar in scope but targeting municipality promotion as opposed to local retailer advertising, and also based in Sanford, Florida, USA, is distrx. Founded in 2017, they seem to have a head count of two however, have progressed well. Their approach is to create events which they call “Apptivities” for municipalities which have downloaded the app. That municipality or community management in turn, acts as a middleman and sells or provides at no cost to the merchant, inclusion within that community’s app for events such as scavenger hunts and walking tours. Company revenue is derived from a US$200.00 fee per included location. Each merchant must provide their own promotional material for the app. According their Founder and CEO, they have roughly 1800 communities already within the app of which 600 are active.

Another US based pre start-up company, Winquest, offers a similar premise to MoMS. They seek US$1million investment to launch.

There are other similar “whodunit” games using mobile apps targeting personal and corporate entertainment based worldwide, wherein one creates their own game including the most popular, CluedUpp. The television show Shark Tank hosted one called Adventure Hunt. Billed as a Pre-made Scavenger Hunt, these games require the user to pay to play.

In addition, there are single location games such as XtremeBingo and The Dinner Detective. These are also focused on entertainment. Another type of rewards game that incentivizes shopping by offering coins as coupons from brand purchases while collecting shopper trends is Fetch Reward. There have been attempts to build other storyline games as described which failed to generate traction due to lack of proper marketing, leading to lack of customer awareness. Silent Streets is one example.


Advantages or differentiators

There is however, no other similar marketing and advertising method anywhere currently on the market that incentivizes local shopping while increasing community development, increased small business market share and revenue, and pin-point big data accuracy that MoMS provides. The closest real competition is web advertisement such as Google Ads, Facebook ads, and print publishing such as weekly flyers (ex: Valpak). Facebook’s average cost per click (CPC) is about $0.35 globally and about $0.28 in the U.S. Thus, just 1000 clicks = US$350.00. Print ads such as Valpak charge for US$250.00 for a ¼ page ad. Broadcast media such as TV averages around US400.00 for one non-primetime 30 second local spot, while Radio is minimum US80.00 for one non-primetime 15 second local spot. Other similar advertising methods vary in cost, which like these, do not guarantee physical presence. Furthermore, MoMS collects pinpoint user data not available using these other methods.

Finance

Immediate revenue is derived through a low US$100 rate from the merchant for each gameplay. This rate is expected to increase the second year. Gameplays are engineered for a determined amount of time, typically one month. The greater the number of participating merchants, the greater the revenue and number of expected players. In-app advertising, targeted advertising, brand and partner product promotion, merchandise retail sales, and more are on the road map. Capital costs as explained below and those related to marketing and promotion (under section Marketing) are minimal. Initial investment will be used for app and website completion, supplementary marketing and promotion, and expected minor legal and administrative costs. First year projected revenue targeting just .05% of only the US market, is US$12million with a 70% +/- GPM. This is achieved as follows:
100 merchants per business district x $100.00 rate each x 100 business districts x 12 months = US$12,000,000.
An alternative method is 2,045,422 US merchants x $100.00 rate x 12 months x .05% (1st yr. SOM) = US$12,272,532.

1st year direct employee payroll, based on anticipated revenue = US$3,192,000.
1st year contract commissioned payroll, based on sales = US$2,250,000. (already calculated in GPM)

The remaining approximately US$9,000,000. +/- (74%) will be used for marketing, growth and expansion.

A detailed financial month to month projection breakdown is available upon request.

Our objective is both immediate and long term profit and high profit margins placing priority emphasis on customer service, not immediate growth rate.

Business model

B2B2C. Organizations such as Merchants Associations, Chambers of Commerce, redevelopment agencies, and property management and development companies gain through a partnership with MoMS. Our incentivized platform will help increase their tenants/customers revenue, thus increase their bottom line. We’ll additionally seek out and partner with organizations that call on brick and mortar establishments such as point-of-sale (POS) services providers.

Money will be spent on

Mystery on Main Street use of funds
Phase 1 - Development Amount Timeline Month 1 - 6
App v 1.0 development US$ 55,000.
App v 1.0 website US$ 5,000.
Initial marketing US$ 2,500.
Legal and administrative US$ 5,500.
Phase 2 - Pilot Month 7
Prize money US$ 5,000.
Agent commissions US$ 12,000.
Initial Rollout US$ 85,000.
Data collection Month 8
Application enhancements US$ 60,000.
Phase 3 - Revenue Month 9
Marketing/Prizes/Incentives US$ 85,000.
Sales salaries/commissions US$ 60,000.
Working capital US$ 60,000.
Rollout US$ 265,000.
Total funds requested US$ 350,000.

Offer for investor

Our total ask is US$350,000.00. Our Phase 1 need is US$85,000.00. We are open to negotiation on offers.

Mentors & Advisors

Risks

Risks and Roadblocks
It’s expected the companies and types of companies mentioned as competitors will quickly note the value MoMS brings to merchants as well as the expected hyper-growth and high gross profit margin. As such, their brand awareness and current access to the customer base could allow them to create a low-to-no-cost business model, with the intent of undercutting MoMS growth and advancement. A plan is already developed to counter this, which details how any attempt to disrupt MoMS progress using this or a similar business model will in actuality, act to increase MoMS objectives with minimal cost or reduced revenue and profit margins.

Contingency/Unforeseen Event
This company was founded at the cusp of the Covid-19 pandemic; an episode which proved to be a devastating blow to our global target market. This actually adds strength to our business model as it prepares us for planning future multiple market and business strategies enabling immediate and long term revenue, profit, and positive growth. If however the company fails to reach mass market acceptance due to its unique business model, our plan is to approach our competitors who currently have significant contact with our target customer base. MoMS can serve to enhance their offering providing greater consistent access to their customers.

Incubation/Acceleration programs accomplishment

No

Won the competition and other awards

In process.

Invention/Patent

Our IP is derived from a combination of property including copyrights, trademarks, trade secrets resulting from research and development, our customer acquisition formula defining our competitive advantage and digital assets, and the formula used to arrive at a defined gameplay period of not to exceed 28 calendar days under normal gameplay conditions.

Photos

Photo 1 - Interactive B2B2C big data adtech/martech A/R app for B&M's

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
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Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
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