Marketing Plan
DFM
Don’t Forget Me
DFM
Marketing Plan
1.0
November 10, 2007
Final
Version:
Date:
Status:
In the year 2007, there were 652 incidents involving kids and automobiles. There
were reports of 804 children involved in which there were 202 fatalities. Furthermore,
there were reports of 9,100 children treated in emergency rooms due to non-traffic
incidents. There are several issues contributing to non-traffic incidents involving vehicles
and children. These include children left in a vehicle’s passenger compartment in hot
weather or who lock themselves in the trunk of a vehicle, children strangled by a
vehicle’s power window or sunroof, children killed or injured as a result of a vehicle
backing up, and children killed or injured as a result of vehicle-generated carbon
monoxide. Out of the total number non-traffic fatalities in the year 2005, 23% were due
to children left alone in vehicles during hot conditions. Also, it is important to point out
that the 49% of child fatalities due to being backed over by a vehicle will diminish
because of new solutions coming on line that utilize camera technology. This information
was not present at the time these statistics came out; therefore, the percentage will
decrease for being backed over by a car, however, the percentage due to hyperthermia
will increase. One can see the percentages in the chart below.
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Marketing Plan
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It is life threatening when someone’s body temperatures reaches above 104°F.
Also, when someone’s body temperature reaches 106°F, brain death begins. When
one’s body temperature reaches 113°F, death is nearly certain. It does not take long
for a vehicle to reach these conditions in the summer. When the temperature outside
is 80°F the temperature inside is 80°F, in 10 minutes the temperature inside inceases
to 99°F, within 20 minutes the temperature is 109°F, within 30 minutes the
temperature inside is 114°F, within 40 minutes the temperature is 118°F, within 50
minutes the temperature is 120°F, and within 60 minutes the temperature is 123°F.
Internal temperatures above 122°F will cause rigidity in the muscles and certain,
immediate death.
Temperature vs Time
Temperature
140
120
100
80
Temperature outside
is 80 degrees
60
40
20
0
0
10
20
30
40
50
60
Time
Chart of temperature vs. time (time in minutes)
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The amount of passenger vehicles produced annually is around 4.8 million and
around 5 million sold annually. The reason for more cars being sold than manufactured,
is cars that were not sold in previous years are sold in current year statistics. School buses
are the largest mass transit program in the US. There are over 440,000 school buses
transporting more than 24 million children every day of the school year. This indicates
that there exists a large potential market for enhanced child safety features. Safety is a
concern in both markets including passenger car manufacturers, and bus manufacturers.
With non-traffic fatalities due to heat on the rise, we represent a new safety system to
help prevent this tragedy from occurring in vehicles. School buses and seat belts are a
recent topic under debate. While most states do not enforce school bus seat belts because
of the effort involved in maintaining them, our device will help prevent incidents
involving leaving children on buses unattended, and can be used to help keep children in
their compartment.
There are a large number of new vehicles sold yearly including cars and buses.
Our system installed in a vehicle offers an enhanced safety solution for new vehicles.
Furthermore, we will focus on obtaining a car manufacturer to license our patent on our
technology. In our license agreement, we will receive royalties on the number of our
systems installed in their vehicles.
Table 1-15: Annual U.S. Motor Vehicle Production and Factory (Wholesale) Sales (Thousands of units)
1997
1998
1999
2000
2001
2002
2003
2004
2005
Production, total
12,131
12,003
13,025
12,774
11,425
12,280
12,087
11,960
11,947
Passenger cars
5,934
5,554
5,638
5,542
4,879
5,019
4,510
4,230
4,321
Commercial
vehiclesa
Factory (wholesale) sales, total
Passenger cars
Commercial
vehiclesa
6,197
6,448
7,387
7,231
6,546
7,261
7,577
7,731
7,625
12,223
12,112
12,127
12,527
11,108
U
U
U
U
6,070
5,677
5,428
5,504
4,884
U
U
U
U
6,153
6,435
6,699
7,022
6,224
6,964
7,143
7,467
7,767
Table indicating number of vehicles produced and sold
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Marketing Plan
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The two class types that capture 90% of school buses sold are Class C and Class D. Type
C is identifiable by the engine that protrudes at the front of the vehicle, ahead of the front
windshield. It typically weighs 12-15 tons. The driver's seat and main student entrance
door are located behind the front axle. Type D is identifiable by a body that extends the
full length of the chassis, giving it a characteristic "flat-nose" design. The driver's seat
and primary entrance door are forward of the front wheels, with the engine located at
either the front or rear of the vehicle.
Below, one can see two charts indicating the number class C buses manufactured, and the
class D school buses manufactured. They both show an increase over the past years. This
indicates that the market for school buses is increasing not decreasing.
Type D transit-style production saw 8,505 buses built, an increase of 789 units or
10.2 percent over a year ago.
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Price Point for Customer
With the diminishing car sales in recent months, each car maker is looking for ways to
gain an edge over their competitors. Vehicle safety can give them edge. The cost
compared to the average cost of a passenger vehicle of $25,000 is minimal. The sales
increase for a vehicle installed with our safety system out weighs the cost for them. Also,
the consumer buying the vehicle from the dealership will not be affected greatly because
the cost is negligible. With car sales decreasing in recent months, our safety system
installed in a vehicle will show the consumer their dealerships are dedicated to producing
a safe vehicle that will help increase sales by gaining the consumer’s confidence.
There has been a debate recently about installing seat belts into school buses, which
indicates a more concern for safety on, buses, though buses maintain a good safety record
of our school bus transit program. Additionally, school bus manufactures may want to
show a safety commitment with their buses and may want to offer a better product. The
DFM will provide bus manufacturers with a less intrusive system, and one that requires
little assistance from the bus driver. Schools buses are being critiqued for their safety
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Marketing Plan
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features. School bus manufacturers will gain an edge by installing the DFM, and having a
device to monitor students in a compartmentalize environment. Also, the cost compared
to the average cost of a school bus of $70,000 is minimal.
Profit
With the available passenger vehicles of 4.8 million being produced annually, there
are around $1.3 billion dollars available to be made in the passenger car market. The cost
to have enough systems to cover the available vehicles will be $2.8 billion. In the
licensing agreement, we will receive in royalties $50 per system installed in vehicles.
With estimates capturing around 1 % of the market available (50,000 vehicles) for the
first out year and deducting the total cost of $1,636,702, the total profit will be $863,298.
For the second out year, expecting 100,000 vehicles to have the DFM installed and
deducting the total cost of $1,124,468, the total profit will be $4,738,830. Furthermore, in
the third out year, expecting 125,000 vehicles to have the DFM installed and deducting
the total cost of $1,124,468, the total profit will be $9,864,362. The number of school
buses that were manufactured has risen to 47,915 in the year 2006 from 25,690 buses in
the year 2005. This shows a 4.6 percent increase in buses made. A typical class C 64
passenger bus cost around $70,000. Using the year 2006 numbers, there is $5.9 million to
be made in profit the first year if the increase is the same in production, there is $6.1
million to be made the second year. The cost to have enough systems available will be
$65 million. We estimate capturing around 1 % of the market available (500 buses) for
the first two years, the total made will be $25,000 the first year. We will have $512,000
invested in hardware, personnel, and other cost including patent processing cost of
$10,000.Estimates are for the car manufacturers to pay a $50 royalty fee and for each
installation of the system. The money left over should be put back into the system for the
year. After enduring the cost of $512,000 from phase III and anticipating other costs for
the first out years, we anticipate we will still show profits close to $863,298 in the
passenger vehicle market.
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Marketing Plan
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The cost for Phase I includes $21,953 for hardware/software development, and
$72,352 for labor which totals $94, 305. During Phase II the hardware/software
development will cost $47,371 and $620,256 for labor. The total cost comes to $667,627
for Phase II. The Phase III hardware/software cost will be $187,000 and labor cost will be
$325,234. The total cost for the first 6 months into Phase III will be $512,234. During
Phase I, we will develop a prototype and prepare the Phase II grant proposal. During
Phase II, we will conduct extensive testing of the system and approach potential
customers. From the start of Phase III we anticipate showing a profit after the first year.
The total cost for Phase I and II will be $761,932 which the SBIR grants for Phase I and
II will cover all the cost. Furthermore, the profit after deducting the cost for Phase III the
first year after the start of Phase III will be $863,298 from the car manufacturing
industry. Most of this money should be put back into research and developing new
innovative enhancements to our technology so we can pursue additional patents. Adding
the profit from the car manufacturers and the bus is $25,000 the total profit exceeds $2
million for the first year. Furthermore, we will show large profits the second year which
could exceed $4 million.
18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
Out Year 1
Out Year 2
Out Year 3
I
RO
To
ta
lC
os
To
t
ta
lR
ev
en
ue
So
ld
Out Year 4
Sy
st
em
s
Dollars
Out Years ROI
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Chart showing profits over 24 month period
Number of units
Profit ($50/unit)
Total Cost
Total Net Profit
Passenger
Vehicles
50,000
$2,500,000
$1,636,702
$863,298
Bus
500
$25,000
0
$25,000
Chart showing total profits for first year
In the above chart, one can see the how much it takes to produce, how much the
profit, and the total cost for the vehicles we plan to market for the DFM. These are
minimal compared to anticipated sales with the systems installed. The average cost of a
passenger vehicle is $25,000 and the average cost of a $64,000 school bus is $70,000.
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Marketing Plan
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Benefits for the Customer
Advantages for Car Manufacturers
 Improves car sales that have dropped in recent months.
 Improves confidence in consumers that safety is a priority for their vehicles.
 Reduces number of fatalities/injuries occurring in vehicles they manufacture.
Advantages for Bus Manufacturers
 Improves confidence in school districts that safety is a priority for their buses.
 Improves confidence in the transporting and delivery of the school’s precious
cargo.
 Reduces liability cases occurring from students being killed or injured.
 Reduces risks from school bus driver’s negligence.
Advantages for Consumers
 Reduces fatalities and injuries due to leaving children behind in vehicle.
 Improves confidence of parent/caregiver for transporting and delivery of
children/elderly.
 Reduces the number of liability suits due to caretaker’s negligence.
 Possible vehicle insurance discount for added safety features.
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Marketing Plan
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Marketing Strategy
Advertisment
We will patent the DFM system and have the car manufacturer license the
technology paying a fee for every unit installed in a vehicle over the lifetime of the
patent. In the initial phase, we will provide an exhibit at national safety conferences such
as the Lifesavers 2008 Conference ( http://www.lifesaversconference.org/). We also will
provide an exhibit at safety conferences for school transportation such as the annual
conference held by National Association for Pupil Transportation
(http://www.napt.org/displaycommon.cfm?an=1&subarticlenbr=69). Also we will need
to Beta test our product and will provide it free to the Gloucester County Public Schools
to Beta test our product in several of their buses. Furthermore, we will install free of
charge our DFM system into several passenger vehicles for further beta testing. After
Beta testing for one year, we can use Gloucester County Public Schools and owners of
the demo passenger vehicles as advocates to help promote our product in a much larger
market in the car industry.
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Marketing Plan
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Competition
Diagram – Competition Matrix
The above competition matrix shows what is offered from the competition
compared to what the Don’t Forget Me system has to offer. The Child Presence Device
utilizes pressure and distance sensors, and has a means for alarming the caregiver. The
Halo Baby Seat Safety System provides all that the Child Presence Device has to offer
plus it detects the temperature. The Baby Alert’s Child Minder System provides all that
the Child Presence Device has to offer and provides an automatic self-test. It does not
utilize temperature sensors to detect the temperature. The Volvo S80 Heartbeat Sensor
only offers the means for detecting a heartbeat. It does not have a method to differentiate
between a human heartbeat and another living animal. The VTI heartbeat sensor only
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offers the same as the Volvo S80 heartbeat sensor. It uses accelerometers to detect small
vibrations and utilizes software to detect that it is a heartbeat. Our Don’t Forget Me
System offers everything the competitors offer plus a light and vibration indicator, auto
temperature control, and a CO2 sensor.
The Child Presence Device, Halo Baby Seat Safety System, and Baby Alert’s
Child Minder System offer a low cost product. The Child Presence Device cost is around
$35 but has not reached the market yet. The Halo Baby Seat Safety System retail cost is
$129 but one can purchase from the Internet for $89. The Baby Alert’s Child Minder
System can be purchased for $89.99. The Volvo heartbeat sensor comes with the Volvo
S80 and it adds $400 to the cost of the vehicle.
Advantages our DFM offers over other competitors is a more accurate way of
detecting an unattended child’s’ presence in a vehicle by analyzing more information and
mitigating the chance of a false alarm.
The cost of our DFM will be $50 a unit installed in the car manufacturer’s vehicles
which is minimal cost compared to the vehicle plus the accuracy is better than our
competitors. With better accuracy, the DFM minimizes chances for fatalities or people
being serious injured in one of their vehicles that can be devastating to there existence.
Added safety features in buses have been discussions between school agencies, and bus
manufactures as they are always looking for safer school buses even though school buses
are one of the safest transit programs.
Conclusion
DFM will target safety conscious car and bus manufacturers by offering a system to
monitor numerous vital conditions using sensor technology and complex software. The
purpose is to reduce fatalities and serious injuries and improve vehicle sales and due to
individuals being left unattended in the vehicle for an extended period of time. There is
not a product on the market to sense all vital conditions in order to accurately detect the
presence of a child in a vehicle unattended over time. The DFM will provide everything
our competitors have plus add additional features including CO2 sensor, light/vibe
indicator, and an auto temperature control mechanism. With the DFM monitoring all of
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these conditions, it will mitigate the chance of false alarms. We will patent the DFM
system and have the car manufacturer license the technology paying a fee for every unit
installed in a vehicle over the lifetime of the patent. The potential for large profits exist in
an industry where safety is a priority. Furthermore, the DFM offers a better solution and
the cost is minimal to the vehicles cost.
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References
 Kids and Cars http://www.kidsandcars.org/
 EPA Gov http://www.epa.gov/hiri/about/pdf/EHEguide_final.pdf
 Thingamababy
http://www.thingamababy.com/baby/2007/07/babysafety.html
 Public School Buses http://www.schoolbusinfo.org/
 Supt’s Memo
http://www.pen.k12.va.us/VDOE/suptsmemos/2006/reg010.html
 Bus Regulations
http://www.pen.k12.va.us/VDOE/Finance/VAPT/regulations.htm
 Temperature over time in a vehicle
http://ggweather.com/heat/hot_car_00min.jpg
 Children left on School Buses
http://www.stnonline.com/stn/top_stories/left_behind1.htm
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