Marketing Plan
1. Executive Summary
Platinum’ is a ‘start-up’ comprising of a small group of Computer Science Students at the
Old Dominion University. Its attempt is to develop a product that will address a societal
concern and one that will eventually improve and serve society in a meaningful way. The
product designed and developed is called ‘iRespond’. This product will not only
safeguard the lives of individuals but also ensure their privacy.
2. Mission Statement
Platinum’s ‘iRespond’ is a new product which provides a unique combination of security
and privacy in emergency situations, anywhere in the United States with just the touch of
a button.
3. Situation Analysis
In an emergency situation, if we happen to be isolated, it is not always possible to
communicate the need for assistance. According to the beaureau of justice statistics
(http://www.ojp.usdoj.gov/bjs/pub/pdf/cvus02.pdf) Many crimes (>50%) go unreported
and people are victimized because of their inability to call for assistance. Presently there
are many devices like a cell phone, Pepper Spray etc. available in the market that do
provide security to a great extent. But these devices can be ineffective in situations
when an individual is unable to reach to it. Therefore, we decided to come up with a
product that will assist an individual not only, in getting aid in an emergency situation
within minutes but also help in keeping their privacy.
3.1Product
 iRespond: This is a compact and lightweight product with a user-friendly –
interface. There is a button for calling the E-911 services.
 It makes use of the GPS and cell tower triangulation technology in order to
determine the exact location of the victim in possession of the device.
 These are the major components of the product:
1. The iRespond key fob device
2. iRespond button
3. Internal GPS location device
4. Internal transmitter
5. Included registration software
6. Reset key
7. LED - battery level indication
8. LED – distress signal sent
9. Update & recharging unit
10. User manual
11. Registration instructions.
4. Market Summary
According to the surveys that have been conducted we came to the conclusion that our
most important customers are people who are 18 years and above, specifically Elderly,
cell-phone luddites, families and women. To be specific our customer will be anyone
wanting a cost-effective security during an emergency situation, yet is desirous of
privacy.
4.1 Market Demographics
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18 years and above: Our most important customers are individuals who are 18
years and above. According to the US census report of 2003, more than 40 million
people are above the age of 18 in the US.
We aim to target the non cell phone owners which comprise of 46% of the entire
US population, according to the US census report of 2005.
Women population is also included as our target audience they comprise 51% of
the entire US population according to the US census report.
Elderly, over 35 million of the US population according to the 2003 US census
report.
Urban population which is 222,361,000(79%) of the entire US population.
According to the US census of2000.
(http://www.census.gov/prod/2004pubs/04statab/pop.pdf)
Total 2003 U.S. population
by gender
Men
Women
Women
147,772,517
51%
Men
143,037,260
49%
4.2 Market Needs
According to the Harris Interactive Study, 76 percent of non-cell-phone-owners would
want a mobile phone in emergency situations. From the point of view of those people
who are our future customers, security is of utmost importance. Anything that promises
to provide them that sense of security at the touch of a button can really interest them.
Most of the devices that are trying to address such needs do not offer instant accessibility
when every second is a decisive factor between life and death.
Our Customers are anyone aged 18 years and above, we are specifically including
Women. According to a survey conducted by Road and Travel Magazine “ Marketing
directly to women has strong reciprocal value as women are more brand loyal and tend to
support those companies that support them and issues that concern them.”
In addition to a quick response, our customers value their privacy. We give them that
assurance, because iRespond cannot be activated unless it is an emergency situation.
Cost is always an issue with the customer. Anything that is cheap and affordable by a
commoner and guarantees the service that is expected is sure to be a hit. We are that
kind-of a low-cost option to these customers.
4.3 Market Trends
Communications technology is a new industry explosion:
According to the wireless World Forum
(http://www.w2forum.com/item/nearly_20_mn_navigation_emergency_telema)
Strategy Analytics predicts that by the end of 2010 there will be 12.2 million navigation
systems and 6.8 million emergency and roadside assistance telematics units shipped
annually across North America.
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Analysis of Carrier Spending, Subscribers, Devices and Applications for Handsetbased and Telematics Services: Location based technology (LBS) had initially not
done very well but recently it has started to gain prominence and it is resurging
due to three factors. 1) The success of vehicle-centric telematic services. 2) The
success of hand-set-centric telematic services 3) Legislation, which has been led
by E-911.
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The market for GPS equipment continues to expand and evolve: The GPS
chipsets are smaller and much cheaper. As a result the market for GPS is
continuously expanding and companies are using it for new applications.
(www.abiresearch.com)
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“Wireless applications must woo youth” (Oyster Bay, NY - August 4, 2004):
Wireless operators are targeting the youth by coming up with different kinds of
wireless applications that are data –driven to attract the youth. The forecast
market conducted by market study by ABI research predicts a wide range of
market for this kind of product till 2009.
(http://www.abiresearch.com/products/market_research/Wireless_Handset_Appli
cations).
5. SWOT Analysis
Strengths:
 One of the major strengths is the assurance of privacy to our customers. The
feature of on-demand tracking makes it possible for the users to secure their
privacy.
 The accuracy of GPS technology with the backup triangulation helps in precise
tracking of the victim’s position. It has the ability to get a response for the victim
within a span of a few minutes.
Weaknesses:
 This product does not offer a two-way voice communication.
 The question of the security of the database can be an issue because the database
holds all the sensitive information about the customers.
 As iRespond is based on a wireless technology, the signals may get interrupted
due bad weather or any other environmental factor.
Opportunities:
 As the market trends indicate that devices for Location based technologies (LBS)
have begun to gain prominence. This can prove to be a very beneficial for our
future market.
 It is also possible for us to make an alliance with some multimedia companies to
incorporate some features like a video record button.
 Once our product is a hit in the United States we may like to introduce our
product to the International markets.
Threats:
 Our major threat is from the rise in increasing competition. Some of our
competitors like Onstar are always looking towards adding new features to it
which may make our product look unfashionable.
6. Commercial Potential
6.1 Competition
Devices with similar services: There are several products available eg.
• Cell phones
• Emergency Position Indicating Radio Beacon (EPIRB)
• Personal Locator Beacon (PLB)
• Safeguardian
• Wherify’s GPS locator phone
• Wherify’s locator watch for children
• GPS mobile locator / tracker cell phone
• OnStar
Cell phones cannot always be reached out and there are many people who do not own a
cell phone, as mentioned earlier. OnStar is mainly used in conjunction with vehicles and
cannot be utilized in all locations. Some of the other devices can only be used in the sea.
The locator watch for children does not offer the luxury for on-demand tracking thus
there is no privacy.
6.2 Keys to Success
Our main advantage over these products is that they are either too big or it is not always
possible to reach to them instantaneously. We not only offer on-demand but persistent
tracking but also additional medical information for our customers. All these features are
offered at a price much cheaper than the above mentioned products.
6.3 Services
iRespond offers a monthly payment plan of $9.99 Per Month and an yearly payment plan
for $99.99 per year. The Initial Setup for our unit is very simple. There is a user manual
that will have instructions to enable the users to register. In order Register the unit there
is a 1-800 number that will be used. The users will also be allowed to enter some
optional medical information about themselves. The size of the unit would be about 3
and half centimeters. Once activated it will continue transmission of distress signal till
help arrives.
6.4 Financial Objectives
Let us consider the following costs:
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Total cost for molding and assembly:
Rs.660, 000 = $16,500.00
Cost for setting our business up:
$2,711,035.00
Shipping + assembling @ 17% for 100,000 units:
$19,305.00 + $2,711,035.00 = $2,730,340.00
We estimate our profit to be approx. $51,910,200.00
With subscription plan :
– Yearly fee: $2,499,750 @ 25% of 100,000 units.
– Monthly fee: $749,250 @ 75% of 100,000 units per month.
Sales of 100,000 units in 2006.
Profit margin of Profit: $51,910,200.00.
Increase profit margin by 10% every 5th year.
Virginia CIT funding will be used to finance our product.
7. Market Strategy
Targeting:
 Specific market segments that we can win and dominate are:
 18+ yrs Old
 Elderly
 Families
 Cell-Phone luddites
 Women
Positioning: We should position ourselves in the hearts and minds of people by using
value propositions like:
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Privacy
Security
Cost-effectiveness
Communicating: We should try to reach out to the most influential participants of
iRespond like, Businesses, Grocery stores, Gas stations, and 711s.
Branding: We need to make use of a shorthand way in which people would think of us.
E.g. in commercials, Newspapers and Magazines
8. Risks and Critical Issues
After assessment of the various risks factors and the market trends it becomes quite
evident that several wireless products are waiting to be launched by businesses. A
number of products are already available in the market that provides similar kind of
services. Some of these products have been mentioned earlier.
Most of these products have a popular brand name tagged to it. For example, OnStar also
makes use of a panic button in order to assure the customers of their safety and security
on road. OnStar now controls 70% of the market. According to a telematics statistics
(world wireless forum) OnStar is partnering with a leading cell-phone company to offer
hands-free cell phones. With all these developments taking place OnStar can easily use
another creative strategy to add an additional feature to ensure safety and security in other
places with a better subscription plan.
These uncertainties can greatly impact the project. The marketing strategies will have to
be reviewed time and again in order to keep up with the competition. This can result in
changes in the project schedule and cause delays. More delays have an impact on the
budget as resources like contractors and experts would be extended beyond their
specified timelines. On a scale of 1 to 5 the impact of market competition can extend up
to 4.5, therefore, quick execution is the most critical element of our plan.
The probability of the occurrence of this risk can be estimated by investigating these
factors such as, Competitive rivalry, Buyer power, the threat of substitution and the threat
of new entry. By identifying the strength and direction of each of these forces we can say
that the competitive rivalry can lead to the threat of substitution and the threat of new
entry. The probability of substitution by a similar product and by a new entry is very
high. The buyer power is driven by the competitive rivalry hence the probability of the
customers driving down the prices for iRespond is also very high.
There is an in-depth research required to understand the risks involved. Examining the
current market trends, analyzing the Competitors, keeping abreast with the latest wireless
technological developments is vital.
It is necessary to Identify the Competitor’s strategies in terms of geographical locations
and the manufacturing methods used. The competitor’s history and expansion plans
should be known as well. Research needs to be conducted to assess the Competitor’s
Strengths and weaknesses and their progress monitored in the market and the positioning
of their brands in the hearts and minds of people. An estimation of the reaction pattern of
the customer should be done as well. It takes us back to market research and asking the
customer simply which products they like better and why and looking at demographics,
etc.
8.1 Plans to mitigate risks
In order to mitigate this risk there are several steps that can be taken. First and foremost it
is important to design a competitive and intelligent marketing strategy.
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One of the strategies applied is “Barriers to entry”; According to the definition
“barrier to entry is some intellectual or physical barrier that makes it difficult or
impossible for a person or company to sell a product or enter a market.”
Almost anything could serve as a barrier.
For example if we develop a strategy to position ourselves in the minds and hearts
of people, we can have a strong place in the market by creating an intellectual
barrier, with value propositions of Security and Privacy. “iRespond” can be
activated only when desired, customers need not be concerned about who is aware
of their whereabouts. Therefore, it gives an immense sense of security and privacy
which might be difficult for other similar products to match with. Through
advertisements and commercials we can make it possible to communicate this
idea to the customers.
This is advantageous to us in getting a large share of the “pie” because we are
getting an early start in the market because of this new package of “Security
which comes along with privacy”. The key is figuring out where we add value in
this business and then take advantage of it. Using this we can try to capture the
market and lock it in.
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The Ideal market niche should be identified. The growth potential of the product
and the customers and competitor’s interest should be evaluated. Our research
showed that 70% of the non-cell phone owners would like to own some gadget
that will make them feel more secure. This will prove to be an ideal market for us.
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Experienced persons should be made part of “a risk-reduction plan”. The risk
reduction plan can involve a parallel program, like adding multi – media features,
to market the product. This may shoot up the cost. In that scenario we could try to
join up with competitors like, OnStar – to have a strategic alliance.
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We could ask the competitors to sell our product and we could just be the
manufacturer. We could take an alternate approach which does not involve the
risk or we could directly attack by incorporating several additional features in our
product. For instance a two-in-one strategy could be used where an additional
product or service could be added.
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Subcontracting to more experienced people can also prove to be beneficial in
reducing the risk.
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We can also develop an exit strategy in case the product tanks.
9. Marketing Research
In our marketing research we have to cover these areas:
1) Competitors: We need to know the target market of our competitors, the market
trends, the developments in this type of technology and product.
2) Channel Marketing: Market research needs to be done in the knowing the trends
in channel competition, emergence of new channels, major competitors, new
technologies, and major players in the production of this kind of product.
At this stage, our research is mainly secondary research. We are trying to get
information by keeping ourselves abreast with the media and internet, IT magazines.
Very soon we should be able to file our information by using a strong filing system
from secondary sources.
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References specific to this document:
1) http://www.mplans.com/spv/3313/toc.cfm
2) (http://www.abiresearch.com/products/market_research/Wireless_Handset_Appli
cations).
3) www.abiresearch.com
4) http://www.w2forum.com/item/nearly_20_mn_navigation_emergency_telema
5) “Wireless applications must woo youth” (Oyster Bay, NY - August 4, 2004).
6) http://www.census.gov/prod/2004pubs/04statab/pop.pdf
7) http://www.safeguardian.com
8) http://www.wherifywireless.com/corp_home.htm
9) http://marketing.about.com/