Montana Vehicle
Emergency Kit
Montana Safety Equipment
LEFT OUT IN THE
STORM?
Be prepared and protect those you
love with a Made in Montana
Roadside Emergency kit, brought
to you by Montana Safety
Equipment.
Objectives
• Increase public safety awareness.
• Provide a “made in Montana”
emergency roadside kit for Montana
drivers.
• Get MSE’s emergency kit into 1% of all
lone commuter vehicles in Montana.
• Kits for 5% of teen drivers.
• Kit costs about $56 and can sell for
$60, leading to profits of $27,200
(minus advertising expenditures).
Target Market
• Montana drivers
– 973,000 vehicles, 562,000 drivers
• Lone commuters
– 86% of Montanans drive to work
alone.
• Parents of teen drivers
– 7% of drivers are 16-20 years old.
– At the greatest risk for single vehicle
accident.
Strengths & Weaknesses
• Strengths
– Common product customized with Made in
Montana concept and products.
– Contains Montana specific items (for
Montana climate).
– Creates a sense of safety for consumer.
• Weaknesses
– Primarily a seasonal product.
– Establishing a new company.
Opportunities & Threats
• Opportunities
– Montana population growth (increase from
935,000 in 2004 to 962,000 in 2010)
– Timing coincides with increasing
promotion of road emergency survival tips.
– Can easily modify kit for sale in other
states with similar climates.
• Threats
– Large number of competitors.
– Typically a one-time purchase, not a rebuy
item.
Product Life Cycle
• Product market in market maturity
stage.
• Focus for MSE’s kit is
differentiation – Montana Made –
in order to capture market share.
Contents of MSE kit
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Tri-fold shovel
Emergency survival blanket
Three emergency candles
Water proof matches
Kinetic flashlight (shake to charge)
Signal mirror
Whistle
Multi-tool (with screwdrivers, pliers)
Band-Aids
Gauze
Gloves
Three sets of hand-warmers
Jumper cables
Three road flares
Target Audience
• Working professionals with
teenage children.
• Commuters who predominantly
travel solo.
• Approximate age 25-55.
• Concerned with safety of self
and/or family members.
• Wishing to support local “Made-inMontana” company and products.
Purchasing Process
• Government’s increasing push for safety awareness
and road hazard survival leads more consumers to be
interested in this product category.
• Purchase typically not an impulse decision.
• Parents make purchase for teenage children seeking
to ensure survival in case of accidents and for “peaceof-mind”.
• Commuters purchase for themselves, or for fellow
commuters, also for “peace-of-mind”.
• Purchase Made in Montana product, even though cost
is slightly higher than market, to support local
business.
• MSE product available at
www.MadeinMontanausa.com, Buffallo Chips, and the
Made in Montana store in Helena, as well as local
stores carrying “Made in Montana” products
throughout Montana.
Competitors
• asAsseenOnTV.Com
– 150 pc emergency kit for 29.95 + 10.95 s & h
– (lesser quality)
• AccessConnect.Com
– 11 pc emergency kit for 29.95 + s & h
– (lesser quality)
• AAA
– 39 piece kit retail for 29.95 + s& h
• Red-e vehicle kit
– 80 piece kit $259.95 + s& h
– (more supplies for survival)
Competitor Analysis
Comprehensive Kit
Red E Kit
MSE
Low
Price
AAA
As Seen on TV
AccessConnect
Economy Kit
High
Price
Market Dimensions
• Market potential is 973,000 vehicles, 562,000 drivers.
• Current target of 1% of commuters is approximately
4800* drivers.
• Current target of 5% of teenage drivers is
approximately 2000** drivers.
• Estimated population growth leads to an estimated
increase in drivers from 562,000 to at least 579,000 by
2010 (estimating 60% of Montana’s drive).
*(562,000 drivers * 86%lone commuters*1%=4833 drivers)
**(562,000 drivers * 7%teen drivers * 5%=1967 drivers)
Consumers Will:
• Become interested or aware of the problem
– Use psychological influence of maintaining a state of
readiness in case of emergency.
– Use social influence regarding safety of loved ones.
– Emphasize the winter season as hazardous and the time
to purchase is NOW!
• Recall and gather info re possible solutions
– Emphasis on the comprehensive nature of our product,
able to meet the challenges of Montana winter storms—
no need to purchase other products, all in one inclusive.
• Evaluate alternative solutions – perhaps try some out
– Must continue to emphasize the LOCAL attributes of our
product.
• Decide on appropriate solution
– Emphasis on product satisfaction will be so high, they
will want all family and friends to carry the same
equipment - peace of mind.
• Evaluate the decision
Strategy Considerations:
Product
• MSE’s kit is a specialty product that will be
treated as a Homogenous Shopping product.
– Market is in maturity stage.
– Customer service must be kept at very high level.
• MSE guarantees kit for 3 years.
• MSE supports “Made in Montana”.
• MSE can personalize kits for low cost.
– Embroidery services available from Montana
Correctional Enterprises.
• Cultural Sensitivity
– Product supports current trend towards emergency
safety and survival.
Strategy Considerations:
Place
• Market exposure required is at least
50% of all teen drivers, parents of teen
drivers and commuters.
• Direct channel distribution
– Web-site based order and customer
service available.
• Direct access
• Also linked through Made in Montana web-site.
• Indirect channel distribution
– Retail sales through stores that carry
Made in Montana goods.
– School fundraiser option.
Strategy Considerations:
Promotion
• Emphasize safety and peace-of-mind.
– Remind consumers of hazards of winter
driving in Montana.
• Rapidly changing weather means severe winter
storms with little or no warning.
• Extreme cold, wind, and ice conditions lead to
increased accidents.
– Remind consumers of the importance of
being prepared for emergencies.
• Emphasize “Made in Montana”
– Encourage consumers to be prepared and
to support local businesses.
Strategy Considerations:
Promotional Blend
• Advertising
– Through Made in Montana web-site.
– Print media in the local newspaper.
– MSE business cards with company contact
information and web-link.
• Personal Selling
– Through direct contact with consumers.
– Through school fundraiser promotion.
• Sales Promotion
– Discount on multiple kit purchase.
– Fundraiser Options
• Schools: 25% of profits returned to schools.
• Charity: 25% of profits returned to charity.
• Both options include school logo/charity logo
embroidery.
Strategy Considerations:
Price
• Demand is relatively inelastic.
– Specialty item with few substitutes.
• Low mark-up due to primarily direct
channel sales.
• Customer value impact through
promotion
– School and charity purchases for “good
cause”.
– Made in Montana purchases for
supporting local business.
• List price adjustments for quantity
order passed on to consumer.
Special Implementation
Problems to be Overcome
• Company size.
– High time investment by all parties to
facilitate sales and customer service.
• Contact with schools and school organizations
with fundraising option.
• Contact with local charity organizations and
businesses with charity fundraising option.
• Regular contact with local “Made in Montana”
retailers.
• Financial considerations
– Small business loans available.
– Limited individual resources.
Sources
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Drivehomesafe.com/just_4_u_teens.htm
www.stats.indiana.edu/state_projections_2010.xls
Quickfacts.census.gov/qfd/states/30000.html
www.mdt.mt.gov
www.knowthis.com
www.AsSeenOnTV.com
www.aaa.com
www.accessconnect.com
www.madeinmontanausa.com