Marketing Plan (Daniel Holloway)
Don’t Forget Me
Marketing Plan
Version:
Date:
Status:
1.0
December 5, 2007
Final
Purpose
The purpose of this document is to provide a plan to identify the market and to define strategies
in marketing our product.
Market Analysis
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
Don’t Forget Me: Passenger Safety System
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.
(Diagram: Nontraffic noncrash fatalities)
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.
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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
(Diagram: Chart of temperature vs. time (time in minutes))
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.
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Don’t Forget Me: Passenger Safety System
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
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
Passenger cars
6,070
5,677
5,428
5,504
4,884
U
U
U
U
Commercial vehiclesa
6,153
6,435
6,699
7,022
6,224
6,964
7,143
7,467
7,767
Factory (wholesale) sales, total
(Table: number of vehicles produced and sold)
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.
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Don’t Forget Me: Passenger Safety System
Type D transit-style production saw 8,505 buses built, an increase of 789 units or 10.2
percent over a year ago.
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
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Don’t Forget Me: Passenger Safety System
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 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
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Don’t Forget Me: Passenger Safety System
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.
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.
Furthermore, we will show large profits the second year which could close in on $1 million. Below is a
chart showing the return on investment for the out years.
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Don’t Forget Me: Passenger Safety System
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
Out Year 4
Out Year 3
Out Year 2
Sy
st
em
s
I
RO
To
ta
lC
os
To
t
ta
lR
ev
en
ue
Out Year 1
So
ld
Dollars
Out Years ROI
(Diagram: Chart showing profits over 24 month period)
Passenger
Vehicles
Bus
Number of units
50,000
500
Profit ($50/unit)
$2,500,000
$25,000
Total Cost
$1,636,702
0
Total Net Profit
$863,298
$25,000
(Diagram: 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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Don’t Forget Me: Passenger Safety System
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.
Marketing Strategy Advertisement
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
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Don’t Forget Me: Passenger Safety System
several of their buses. Furthermore, we will install free of charge our DFM system into several
passenger vehicles for further beta testing. We will recruit these Beta testers at Old Dominion
University’s daycare center. Professors will be more willing to let us demo the DFM in their vehicle.
Also, we can recruit expecting women in Lamaze classes held by hospitals. We can also find Beta
testers by going to other public services that are advocates for safety like fire stations. 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.
Competition
(Diagram – Competition Matrix)
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Don’t Forget Me: Passenger Safety System
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 selftest. 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 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
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Don’t Forget Me: Passenger Safety System
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 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. By Beta testing in passenger vehicles owned by professors utilizing ODU’s daycare, we
will gain advocates to help our credibility. 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.
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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