fotovio | Overview

Give Emotions as a Gift Using fotovio

Everybody loves receiving gifts. Regardless of their age, people still like gifts that they can hold in their hands best. The joy is even greater if there is another surprise in store for the recipient: a personal video message.

How this works? By means of the fotovio QR code products. QR is short for quick response: If a bar code is scanned by means of a smartphone and a bar code app, the contents encoded in this code are called up. The concept is simple: An individual QR code is linked to a video that may be accessed online.

Fotovio QR Codes Are Linked to Videos or Photos

The special thing about this is that fotovio creates QR codes in various designs that can be put on greeting cards, advertising materials, or gifts very easily.

International Customers: fotovio Already Sells Its Product in 6 Countries

The possibilities are almost unlimited. Large international companies, such as Deutsche Post (German postal service), Müller (a German drugstore), or Tesco (the world’s third largest retail chain), have already noticed this and are using our service. The business concept of fotovio is based on a strong B2B orientation focused on large companies in addition to the direct sale to consumers (B2C).

After introducing the memory stickers in October 2013, fotovio has shipped them to more than 400 stationary branches. Fotovio is already present in 6 countries with its products, namely Germany, Austria, Switzerland, the UK, Canada, and Brazil.

In November 2013 alone, fotovio was able to generate sales of EUR 27,000 by means of the memory stickers and thus to generate a contribution margin (profit after deducting the costs) of more than EUR 19,000.

Renowned Business Angels Have Invested EUR 100,000.00 in fotovio

Our international concept and the fotovio technology have also convinced renowned business angels, who invested a total amount of EUR 100,000.00 in 2013. In addition to their financial commitment, our business angels also support us in regard to strategic and operative issues.

Complex Technology, Simple Implementation

As a technology start-up, we have developed an own app for iOS and Android by means of which videos may be uploaded to our servers rapidly and easily. This app makes it very easy to deposit a QR code video. The fotovio app is available in 4 languages and may be downloaded for free.

Scanning the QR codes and playing the videos is of course possible by means of every conventional program. Consequently, recipients of gifts do not have to download any special fotovio software to play their video.

The most important aspect of all fotovio products is the unique QR code on the product. This code may conveniently be stuck (memory sticker) or printed (e.g., video greeting card or video stamp) on to items or integrated into print advertisements in a conventional manner. Corporate customers may also purchase and use fotovio QR codes in a solely digital fashion.

Sample Applications

If the code is scanned by means of a smartphone, users are redirected to a personalized website where they may watch their video message. The digital content, however, may still be edited at any time, so users may implement digital Advent calendars using a fotovio QR code for instance.

Made in Germany, Successful on an International Scale

Be Loving on a Personal Level and Unstoppable in Business

Gifts are not only well-established as a nice gesture among private individuals, but also used by companies as a marketing tool and method of ensuring customer loyalty. 

Therefore, our business concept is divided into two areas:

Advertising Materials (B2B) and Gifts (B2C)

Advertising Materials

The advertising market is a multi-billion market, and fotovio is right in the middle of it.

The possibility of combining eye-catching advertising materials with personal messages is a technical innovation within an enormous market. Companies are constantly searching for new ways to market their products.

For example, the confectionery manufacturer Ferrero may use our memory stickers as a retail marketing tool. For this purpose, a fotovio memory sticker is put into each Ferrero box. Thus, the customers of Ferrero may be pleased about a free fotovio memory sticker. For business customers like Ferrero, the packaging and design of the memory sticker are adapted to the corporate design of the company. In this case, for instance, the fotovio QR code would be designed to resemble kissing lips in order to match the corporate identity of the company.

Close Friends Deserve a fotovio Kiss Including a Personal Video Message

Recipients of gifts receive a brief advertising message of the company when they watch the personal video, which adds an emotional aspect to the brand. The integration of social media and links to mobile online shops are also possible. With regard to the B2B line of business, fotovio particularly benefits from advertising revenues in addition to revenues from selling the QR codes. Companies may add advertising banners or pre-roll videos to their own memory stickers. In such cases, fotovio receives 3 to 7 cents per view. The pricing model is explained in detail in the chapter on the business concept.

                  
Gifts with Personal Video Messages

The gift market is extremely large and may be divided into countless submarkets. The smart thing about our product is that it may be easily attached to anything from postcards and wedding invitations to gift cards and almost any other gift. Moreover, it always includes the surprise effect.

When the memory sticker has been applied to the gift, it may be scanned using the free fotovio app. Then, an own video may be recorded by means of a smartphone and uploaded afterwards to complete the personal gift. The recipient of the gift may access the personal message anytime and anywhere by scanning the sticker using any QR code app. Users can also watch the video without a smartphone, for each memory sticker contains an individual fotovio URL. This URL may easily be accessed on a PC.

Memory Sticker Product Video

Giving is not always easy. Indeed, giving original gifts is even difficult because they are supposed to be creative, thoughtful, and especially personal. By means of the memory sticker, fotovio offers a product that meets these three requirements.

Licensing

Fotovio enables other companies to use the fotovio QR technology and cloud platform if they pay license fees. The fotovio cloud platform resembles Dropbox. Customers store their various contents (e.g., videos) on this platform and may access them anytime and anywhere. The fotovio cloud platform already exists and is already used by corporate customers of fotovio in combination with various services, for instance with the memory stickers or video greeting cards.

Below, we list some examples of applications that international corporate customers have implemented using the fotovio technology. 

International Greetings PLC

nternational Greetings PLC (www.internationalgreetings.co.uk) is a global greeting card manufacturer with annual sales of more than EUR 200 million. It ships its products to more than 100,000 branches worldwide. International Greetings uses the fotovio QR codes for its own video greeting card collection and pays EUR 0.30 per fotovio QR code + 5% of the sales as the license fee. In the UK in particular, the greeting card market is booming. On average, each Briton sends more than 30 greeting cards each year (source: http://www.greetingcardassociation.org.uk/resources/for-publishers/the-market/facts-and-figures).

Fotovio Video Greeting Cards Licensed by International Greetings

Zatnick Inc.

Another customer, Zatnick (http://www.zatnick.com/), is from Canada.

This licensee also distributes video greeting cards that are marketed all over Canada.

Fotovio Video Greeting Cards Licensed by Zatnick

Advertising Materials

The fotovio products and cloud infrastructure are ideal for the use as advertising materials by corporate customers.

Instead of giving away the usual branded pens and similar articles of daily use, companies may also give co-branded memory stickers to their customers. In so doing, the company can double the advertising effect.

First, the packaging and design of the memory sticker are adapted to the corporate design of the company. Second, recipients get a short advertising message when they watch the personal video, which causes the positive effect of the personal message to be transferred to the brand of the company.

Fotovio QR Code in Gift Cards

Apart from being used in free memory stickers, e.g., in the gift wrapping service of department or retail stores, the fotovio QR codes may also be printed directly into the packaging of gift cards. Thus, a personal gift can be added to each (impersonal) gift card. Naturally, this is interesting to the entire retail industry ranging from clothing stores to cosmetics shops.

The business concept of fotovio rests on four pillars:

1. the distribution of own products with the fotovio QR code (e.g., memory stickers),
2. the provision of the fee-based fotovio platform to B2B customers,
3. the sale of QR codes to corporate customers, and
4. the insertion of advertising banners into videos.

The individual areas are illustrated below.

 Fotovio Business Concept

1. Fotovio Products

Fotovio earns money by selling its own products with the fotovio QR codes on the gift market. These products include the fotovio memory stickers.

In so doing, fotovio generates revenues by selling these products to the retail industry. Fotovio memory stickers are available in stores for EUR 2.99; a package contains 3 different stickers. Fotovio is responsible for producing and distributing the products. The contribution margin calculation for the memory stickers shows that fotovio achieves attractive margins.

Contribution Margin Calculation for Memory Stickers

By means of the fotovio QR codes, we were able to generate sales of EUR 27,000 in November 2013 alone, which correspond to a contribution margin (profit after deducting the costs) of EUR 19,000.

2. Fotovio B2B Platform

In the future, all corporate customers will be able to use the web-based platform to generate QR codes for their products and campaigns themselves 24/7 and from anywhere in the world (without requiring the support of the fotovio team). In such cases, fotovio charges the companies an additional fee for each QR code. In addition to creating QR code campaigns, companies may analyze and optimize their campaigns via the platform in many ways. The B2B platform enables fotovio to access a highly scalable and very attractive market in the segment of large and corporate customers.

Fotovio B2B Platform

The fotovio B2B platform does not yet exist and is still being developed by the in-house IT team of fotovio. Because of our three developers and our CTO, fotovio is able to implement even complex customer requirements for the B2B platform.

Apart from the basic functionality, the company will be able to access a visually appealing dashboard displaying the key performance indicators (KPIs) for their own QR codes. In addition to the number of video uploads per campaign or product, the fotovio platform will be able to display the average number of views per video. Moreover, geographical analyses will be possible. The advertising performance, for instance the number of banners and pre-roll videos displayed, will also be visible on the dashboard.

Fotovio will charge the companies a monthly fee for using the B2B platform.

Fotovio B2B Platform Prices

The pricing concept is based on a subscription for a period of at least 1 year. As is visible in the pricing concept, the 3 different subscription types (Basic, Professional, and Premium) include different numbers of features and cost between EUR 29 and EUR 299 a month.

In addition to the monthly fee, there are additional costs for the fotovio QR codes ordered (between EUR 0.09 and EUR 0.19 per code) and for the advertisements displayed (up to EUR 0.07 per view).

3. Fotovio QR Codes

The fotovio QR codes are particularly suitable for license partners who want to add the fotovio technology to their products. Two examples are the video greeting cards by International Greetings and Zatnick. For international distribution of the fotovio memory stickers, the fotovio QR codes are sold to a partner company in the respective country, which then produces the fotovio memory stickers itself. In Brazil, this is an advantage because there is a high import duty on physical products. On the import of digital products such as the fotovio QR codes, however, there is no duty.

4. Fotovio Mobile Advertising

Apart from gift manufacturers primarily using the fotovio B2B platform to order and analyze QR codes, there is already a number of companies that want to use our B2B platform as a marketing tool. The focus of these B2B customers is on connecting mobile advertising to their brand.

Mobile Advertising via fotovio

By means of the fotovio B2B platform, companies can easily connect advertising to personal customer videos.

Practically speaking, this works as follows: Somebody purchases a gift card (e.g., at H&M) that contains a fotovio QR code. The gift giver deposits a personal video for the QR code. When the recipient scans the QR code, the personal video of the gift giver is played. Shortly before the video starts, a commercial (e.g., by H&M) is displayed, similar to the way in which this is done on YouTube. In this example, fotovio profits twice: from the sale of each QR code and from the fee charged every time a commercial is displayed.

Fotovio did not reinvent the QR code. Instead, what distinguishes us from other companies is that we offer a solution to companies by means of our B2B platform. We enable companies to create individual QR codes and to use the QR code technology in a fashion that is very interesting to them by linking them to personal videos.

In particular, the fotovio B2B platform provides a great opportunity to marketing departments of companies for launching emotional cross-media marketing campaigns. Fotovio is the only full service provider offering everything from QR code generation to the linking to personal videos and detailed analyses.

The fotovio QR code designs, which are protected by a utility patent and several design patents, are another unique selling point.

Fotovio Utility and Design Patents

Because of the B2B platform, fotovio is internationally oriented and has customers in 6 countries so far.

Made in Germany. Successful on an International Scale

In the B2B segment with a focus on marketing campaigns, our first customer was the German postal service. We will be able to publish further information on this cooperation in the next few months. We are currently in intense negotiations with Ferrero.

For our own B2C products like the memory sticker, we have attracted renowned customers such as Tesco and Müller (a German drug store chain). Moreover, the fotovio products are sold in select JET gas stations.

In 2014, we will be able to name additional renowned customers. Right now, fotovio is in negotations with companies such as Mrs. Grossman‘s (www.mrsgrossmans.com), the largest sticker manufacturer in the U.S. Mrs. Grossman‘s wants to license the fotovio memory stickers for the American market.

Gift Market

The memory stickers address a wide audience and have created an entirely new market for personalized gifts within the stationary retail industry. Previously, the trend toward tailored products had existed primarily in e-commerce. Because of the fotovio memory stickers, stationary retailers like JET gas stations may participate in this trend for the first time.

Several surveys have shown that consumers prefer personal gifts and are actively searching for them. Fotovio is active on a multi-billion euro market, wants to deliver the memory stickers to all major stationary retailers in Germany and abroad, and thus intends to achieve a significant share of the market. By licensing its products and technology to other gift manufacturers, fotovio will be able to achieve rapid international growth. Consequently, the business concept is highly scalable.

Advertising Material Market

More than 70 percent of all German companies use advertising materials as a marketing tool. This percentage corresponds to 2.2 million companies that are part of our direct target group in addition to non-profit organizations, the government, and the federal states. From 2010 to 2012, advertising material sales in Germany amounted to approximately EUR 3.5 billion each year (source: http://www.handelsblatt.com/unternehmen/mittelstand/werbeartikel-branche-effiziente-werbung-mit-giveaways/6060026.html). In the U.S., more than USD 18 billion was generated by means of advertising materials in 2012 (source: http://www.marketingcharts.com/wp/traditional/us-promotional-product-sales-up-4-4-last-year-34944/). By combining traditional advertising materials with mobile advertising, fotovio sets new standards and creates a new offer for all advertisers.

Advertising Material Sales in Germany in Billions of Euros

From left to right: Mareike, Daniel, Christian and Lisa

The fotovio team consists of the founders, Christian Doberschütz and Daniel Schniepp, and 5 other employees. 

Christian Doberschütz is the founder, managing director, and inventive head of fotovio. He loves not only to dream of ideas, but also to live them – something he does in a very committed manner. Christian has a passion for distributing the fotovio products. Because of his experience as a management consultant, he is very skilled at handling numbers, and he ensures that all employees use their talents in the best way possible at any time.

Daniel Schniepp is the co-founder of fotovio. Christian and Daniel met on a social network and soon noticed that they share the same ambitions. Due to their different personalities, they perfectly complement each other: Christian loves to directly present his products to customers over a cup of coffee. Daniel, on the other hand, loves to work on and implement the technical aspects of the fotovio products.

Artur Machura – iOS developer at fotovio – is passionately working on the fotovio app for the iOS platform, and he enjoys creating a perfect experience for users. In addition to creating a pixel-perfect design, Artur is motivated to provide customers with a memorable fotovio experience by continuously optimizing the app. 

Mustafa Ceylan is the Android developer of fotovio. He is passionately working on the Android app, so it is no surprise that he sometimes works on the app during the weekend as well. It is his ambition to provide app users with the best QR code app and thus ensure that fotovio customers have a unique feeling when using the fotovio products.

Ferdinand Armbruster is the web developer of fotovio. He aims to create the perfect platform for each fotovio product and thus provide customers with an impeccable fotovio experience. Ferdi is passionately working on the fotovio platform and is thus creating the basic infrastructure for the apps and websites.

Lisa Deibert is the marketing manager. She is committed to making people on all continents aware of and thrilled by the fotovio products. It is her goal to make as many people as possible aware of the fotovio products and to interact with them by means of extraordinary marketing activities.

Mareike Farra is truly enthusiastic about being able to contribute all of her creative ideas to the fotovio products. She ensures that there are new and attractive sticker motifs on a regular basis. Mareike is able to implement complex events, motifs, and processes in a surprisingly easy and straightforward graphical manner.

Fotovio is already a successful company with reference customers such as the German postal service, a German drug store chain, and Tesco. From November 2013 to January 2014, we generated sales of more than EUR 40,000. Due to product margins of more than 70%, fotovio achieves high contribution margins. Fotovio already has several international license partners in the UK, in Canada, and in Brazil and is in negotiations with major manufacturers in the U.S. and in Europe.

Since the business concept of fotovio is attractive and globally scalable, several renowned business angels could be convinced to invest in 2013. In total, they invested an amount of EUR 100,000 in fotovio.

The completion of the new B2B platform will be an important milestone in 2014. In the area of advertising materials, fotovio will be able to announce exciting cooperation agreements in the next few months.

We will use the capital provided by the Companists and potential other investors for the areas of sales and marketing, B2B platform, and development of the fotovio app & website. To be more precise, we intend to make the following investments in 2014 and 2015.

• B2B-Plattform
  • Implementation of B2B Platform
  • Integration of Analytical Reports

• Development of fotovio App & Website
  • Integration of Additional Media Types
  • Integration of Additional Features
  • Relaunch of Website and Online Shop
• Sales and Marketing
  • Additional Employees for Sales & Marketing
  • Additional Visits to Fairs in Germany and Abroad
  • MMarketing Campaigns

In 2013, fotovio was able to attract renowned business angels who invested a total amount of EUR 100,000. In addition to their financial commitment, our business angels support us in regard to strategic and operative issues.

Mathias Gehle

Mathias Gehle holds a Diplom degree in engineering management and used to be the managing director of Valora Retail, the leading chain of kiosks and train station shops in Germany. While working there, he was able to increase the number of branches from 130 to 1,660. Mathias Gehle advises fotovio on strategic issues and contributes his large network in the stationary retail industry.

Dr. Philipp Semmer

Dr. Philipp Semmer advises companies in Germany and abroad with a focus on corporate and capital market law. He is very experienced in the domains of mergers & acquisitions, cross-border capital market transactions, and public takeovers. His main focus as a counselor is the media and telecommunication industry. Dr. Philipp Semmer studied law at the FU Berlin and received his doctorate from Humboldt Universität Berlin for his dissertation on stock option programs, which was supervised by Prof. Christine Windbichler.

Dr. Denis Jung

Dr. Denis Jung has invested in a number of other start-ups in addition to fotovio, for instance from the mobile payment sector. In the last two years, he advised various start-up projects (e.g., lendstar and paymey) and contributes a large network of contacts to the company. Dr. Denis Jung holds a doctorate from TU Dresden, a Diplom degree in engineering from TU Munich, and four patents, and he is the author of numerous scientific publications.

Dr. Karsten Stein

Dr. Karsten Stein studied business and law at the Freie Universität Berlin and the University of Düsseldorf and has been admitted to the bar.

His career has a focus on entrepreneurship and started when he founded own companies in the areas of telecommunication, event management, and commerce during his studies. This defining stage was followed by jobs as an investment manager for a publicly listed equity investment company and as the CFO of a technology company

The SWOT analysis is an easy way of displaying all strengths, weaknesses, opportunities, and threats of a company at once.

Fotovio has already won numerous awards. For the memory stickers, for example, fotovio received the innovation prize at the Paperworld trade fair in Frankfurt.

After the ISPA & Innovation Award for the fotovio greeting card in the previous year, this is already the second international innovation prize for fotovio.