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1/18/2015
1
United Green Technologies
Bryan Hall – Chief Executive Officer/President
Kristjan Archer – Vice-President of Customer Relations
Allison Caparros – Chief Operating Officer
Arthur Deakin – Vice-President of Research and Development
Ashley Knipp – Chief Creative Officer
Travis Wert – Chief Information Officer
Introduction
1/18/2015
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Table of Contents
1. Introduction
2. Product Selection
3. Product Plan
4. Industry Overview
5. Target Niche Analysis
6. Pricing Plan
7. Distribution Plan
8. Promotion Plan
9. Next Steps and Summary
United Green Technologies
Manufacturer in Cincinnati, Ohio which specializes in sustainable technology
Recent performance and maturation has led UGT to point of insolvency
New product, UV Green will jump start sales growth
Target markets of Santa Barbara, CA; Evanston, IL; and Syracuse, NY
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
FY 2012 FY 2013 FY 2014 FY 2015
Recent Performance
Pro Forma Revenue Capture from UV
Green
Sales Figures and Performance: Historical and Projected
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About UV Green
Computer peripheral industry is mature and saturated with legacy products
UV Green utilizes laser technology to manipulate a pre-treated page
Completely safe and environmental effect of paper is negligible
Cost effective and eco-friendly because no ink is used
Compatible with battery (chargeable) and solar panel
Proprietary technology with seven patents
Characteristics Aesthetics
The Science behind UV Green
Focuses nitrogen TEA (Transversely Excited Atmospheric) laser on pretreated paper
Capsules in nanotubes release chemicals through the use of NanoLace® technology*
The capsules are sprayed onto the paper
Laser is focused with an optic fiber
TEA Laser
Citric Acid
*United Green Technologies consulted with Professor Kandel, Ph.D. and Professor Hildreth, Ph.D. from the University of Notre Dame and the product’s three inventors to develop NanoLace®
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Product Selection
Competitive Product Scorecard
Comparable company research demonstrates that UV Green has a differential advantage in the computer peripheral landscape.
Competitive Product Scorecard Products (see key below)
20 Characteristics A B C D E
1. High value in use/ low cost to make it. 6 7 5 6 10
2. Protection (patents, special knowledge, share). 6 1 4 6 10
3. Ease of use. 3 3 6 4 10
4. Differential advantage. 2 6 4 6 9
5. Rate of technological change. 4 5 3 5 9
6. Type and degree of competition. 5 4 4 4 8
7. Unique and trendy. 1 6 2 3 10
8. Shelf space at retail. 7 2 4 6 9
9. Prior use patterns. 4 2 4 7 8
10. Affordable. 3 4 3 3 9
11. Newness. 2 7 3 5 10
12. Divisibility. 4 5 3 4 9
13. Rate of use. 6 2 5 6 10
14. Durability. 4 3 3 5 10
15. Life Cycle. 2 4 3 5 10
16. Bankable. 3 4 4 7 10
17. Fundamental trends. 2 5 4 4 9
18. Size of market for like products. 5 3 5 6 8
19. Consumer purchase patterns. 3 7 5 5 9
20. Web friendly. 2 2 6 3 9
Total 74 82 80 100 186
Average 3.7 4.1 4 5 9.3
A: Xerox Phaser 3250
B: Mini Mobile Robotic Printer
C: Epson WorkForce All-in-One
D: Hewlett Packard Laser Jet
E: UV Green
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Utility Bundle Analysis
Comparative Utility Bundle
Xerox Phaser 3250
Mini Mobile Robotic Printer
Epson WorkForce All-in-One
Hewlett Packard Laser Jet
UV Green
1. Form 4 8 6 2 10 2. Time 5 6 8 5 8 3. Place 5 8 7 4 9 4. Possession 6 7 8 6 10 5. Image 1 7 3 7 9 6. Information 7 3 4 3 8
Score: 28 39 36 27 54
Average: 4.67 6.5 6 4.5 9
UV Green has an exceptional advantage in form and possession utility. Outperformance across categories leads UV Green to a score twice the
average of its peers.
Product Selection
Examined a compilation of 40 niche
products
Selected UV Green for marketing and
strategy design
Key Characteristics: portable, green*,
time and money saving
Given results from the competitive
scorecard, utility bundle analysis, and
research, UV Green is optimum choice
*Solar Panel
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Product Plan
Goals
Primary Goals
• $3.5 mm in web sales and $8.125 mm in retail stores.
• 7.3 units per store per day
• Achieve 40% recognition among target niche (CPAs) within the first year
Secondary Goals
• Three new patents per stage of evolution
• Maintain an average of 0.9 on the Product Scorecard
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Product Life Cycle
New Life Cycle Stage: UV Pure 3D ($700)
Eco-friendly 3D printer that uses only recycled materials
Maturation Stage: UV Gamma ($275)
Wireless booster and twice the printing speed as UV Green
Crash Stage: UV True ($250)
Made of recyclable materials and supports UGTrees
Competition and Retaliation Stage: UV Hue ($300)
Colored Printing
Introduction Stage: UV Green ($337.54)
Eco-friendly, green, inkless, portable
Maslow Utility for Future Products
As UV Green evolves, the future products fulfill even more of Maslow’s utility needs, further increasing the value of the product.
Maslow's Hierarchy UV Green UV Hue UV True UV Gamma UGT Laser 3D
1) Physiological X
2) Safety X X X
3) Love/Belonging X X X X X
4) Self Esteem X X X X X
5) Self Actualization X X X
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Industry Overview
Product Life Cycle
Competitors are in the maturation of their life cycle. UGT significant opportunity to attack their market share. UGT determined that Epson is
weakest in the peer group
12%
21%
4%
20% 3%
40%
Others
Canon
Roland
Epson
Ricoh
HP
Hewlett Packard strongest in Industry, Epson demonstrates
opportunity to Attack UV Green
1/18/2015
9
Industry Profile Pyramid
Research indicates that consumers are dissatisfied with Epson’s products, leaving room for United Green Technologies to take a
portion of Epson’s 20% market position.
Hewlett- Packard (40%)
Epson (20%), Dell (5%)
Xerox (3%), Mini Mobile Robotic Robotic Printer (<1%)
Clear market leader
Mature players with sizable market positions
Tangential role in market or momentum players
Trend Ratios and Momentum
UV Green will have tailwinds from social, political, economic, and tech trends.
Zerox Phaser 3250 Mini Mobile Robotic Printer Epson WorkForce All-in-One Hewlett Packard Laser Jet UV Green
1) Government Incentives for Green Technology - - - + +
2) Intellectual Property Protection - - + + +
3) Ink Disposal Legislation - - - - +
4) Legal Case Precedent - - - - +
Political Subtotal 0 0 1 2 4
Subtotal Average 0.00 0.00 0.25 0.50 1.00
5) Wireless Connectivity to Internet Platforms + - - - +
6) Cost Savings from Tech - - - - +
7) Solar Power/Light Refraction - - - - +
8) Lack of Change - - - - +
Technological Subtotal 1 0 0 0 4
Subtotal Average 0.25 0.00 0.00 0.00 1.00
9) Cost Conscious College Students - - - - +
10) Environmental Movement - - - + +
11) Millennials Opt for Convenience - - - - +
12) Patriotism: Made in USA - - - - +
13) Slimmer/Sleeker is Better - - - - +
Social Subtotal 0 0 0 1 4
Subtotal Average 0.00 0.00 0.00 0.20 0.80
14) Projected Industry Growth + + + + +
15) Increase in Ink Cost - - - - +
16) Economic Recovery + + + + +
17) Falling Price of Semi Conductors + + + + +
18) Rising Price of Oil - - - - +
19) Household Wealth + + + + +
20) Per Capital Disposable Income + + + + +
21) Economies of Scale + + + + -
Economic Subtotal 6 6 6 6 7
Subtotal Average 0.67 0.67 0.67 0.67 0.78
Total Trend Momentum Average 0.33 0.29 0.33 0.43 0.90
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Technology Stage Analysis
The technological landscape in the printer market is old and mature.
UV Green LaserJet Inkjet
Geographic Target Markets
With a target market in professional services, United Green Technologies sees significant potential on the east coast, west coast, and in the Midwest
% of Adults in Business Jobs (2013) % of Adults in Business Jobs (Projected 2018)
5 Year Transition
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Target Niche Analysis
Buyer Profile: Hobbies & Occupations
Middle to upper class
Young Adults 25-34
Professionals and students studying to move into respective professions: Millennials
PRIZM Analysis
Occ
up
atio
ns • Photographers
• Accounting
• Finance
• Research Industry
• Scholar
• Novelist
• Publisher
• Poet
• Advertising
• Architect
• Small offices
• Academic
• Secretary
Ho
bb
ies • Arts and Crafts
• Sustainability Clubs
• Publications Clubs
• PTA
• Pinterest Members
• Scrapbooking
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Why is UV Green bought over competitors?
Consumer problems Xerox
Phaser HP
LaserJet Epson
Workforce Mini
Mobile UV
Green
1) Initial setup 4 8 9 6 9
2) Printing capacity 6 5 9 4 8
3) Jamming Issues 5 7 5 9 9
4) Build quality 9 7 4 5 9
5) Network Capabilities 5 4 6 8 10
6) Breakdown of printer 4 6 5 4 8
7) Size of ink cartridge 8 8 4 2 10
8) Price of ink cartridge 8 3 4 2 10
9) ADF* tray setup 9 4 4 8 8
10) Operating life 4 8 7 3 9
11) Print speed 6 7 7 3 8
12) Hardware of printer 5 7 4 5 9
13) Software for printer 4 7 8 5 9 Software compatibility** 4 7 8 5 9
Average 5.8 6.3 6.0 4.9 8.9
Maslow’s Utility Bundle
Average Score
Physiological 9
Safety 9
Love/Belonging 9.3
Esteem 9.3
Self Actualization 9
Determination of Target Market
C
ost
Valu
e/U
se
Dif
fere
nti
al
Advanta
ge
Div
isib
ilit
y
Mark
et
Siz
e
Covera
ge
Gre
en S
ati
sfacti
on
30-4
0 H
ours
Clu
bs/
Alt
. M
edia
TO
TAL
AVERAG
E
1 Photographers 7 6 5 8 9 8 10 10 63 7.9
2 Business
Professionals 9 10 10 10 10 10 10 10 79 9.9
3 Writing
Process 10 10 10 9 9 10 10 9 77 9.6
4 Architect 8 8 9 7 8 9 10 7 66 8.3
5 Arts and
Crafts 10 7 9 10 10 9 9 10 74 9.3
6 Student Clubs 10 6 7 10 6 10 6 8 63 7.9
7 PTA 10 5 5 10 6 8 6 8 58 7.3
In a macro matrix, UGT compared 35 hobbies and occupations, narrowed to 19 with a score above 9.0
Created micro matrix with reselected criteria
Focused on most impactful categories with variance analysis
Top 3 most benefitted markets
Reveals that Business Professionals are UV Green’s target market
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Target Niche within Target Market
Co
st V
alu
e/U
se
Dif
fere
nti
al A
dva
nta
ge
Div
isib
ility
Mar
ket
Size
Co
vera
ge
Gre
en
Sat
isfa
ctio
n
30
-40
Ho
urs
Co
nfe
ren
ces
TOTA
L
AV
ERA
GE
1 Architects 6 6 5 8 9 8 10 8 60 7.5
2 CPAs 10 10 10 10 9 10 10 10 79 9.875
3 Market analysts 10 10 9 8 10 10 10 9 76 9.5
4 Financial advisors 10 8 9 10 9 8 10 9 73 9.125
5 General management 7 7 9 10 8 10 9 6 66 8.25
6 IT directors 7 6 7 10 6 8 10 6 60 7.5
United Green Technologies plans to target CPA’s because their professional aligns with UGT’s targeted 40 hrs. per week of use.
CPA Selection Explanation
UV Green effectively satisfies all the basic needs of consumers as seen by Maslow’s Utility Bundle.
UV Green eliminates the majority of consumer problems experienced with competitive products.
Target Niche: CPAs
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Pricing Plan
Goals
$8.125 mm in brick & mortar retail sales and $3.5 mm in online sales
Profit margin of 61.20%
0%
10%
20%
30%
40%
50%
60%
70%
Industry Gross Profit Marign Targeted Gross Profit Margin
Margin Profile
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Pricing Strategy
Price Based off relative strength of UV Green to comparable products universe
UV Green at $337.54 is priced at the top of the comparable products hierarchy
Utility Bundle Competitive Product
Scorecard Weighted Average
Xerox Phaser 4.67 3.7 4.19 Comp Ratio from Competitors
Mini Mobile 6.5 4.1 5.3 4.81
Epson Workforce 6 4 5
HP LaserJet 4.5 5 4.75 Multiple
UV Green 9 9.3 9.15 1.9x
Pricing determined by weighted average comparison between UV Green’s competitive product score/utility score and the peer group.
Push Strategy
5
4 5
Given the skim pricing strategy of UV Green, UGT will strategically place sales representatives to promote its product.
1/18/2015
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Breakeven Analysis
Price Based off relative strength of UV Green to comparable products universe
UV Green at $337.54 is priced at the top of the comparable products hierarchy
Unit Price $337.54
% of COGS that are Fixed 55%
Units Sold per Day 94.37
Sales COGS Fixed Costs Units
Retail $8,125,000 $3,152,500 $1,733,875 5136.80
Online $3,500,000 $1,358,000 $746,900 2212.77
Total Units Sold 7349.57
Days to Breakeven 77.88
United Green Technologies expects to breakeven in a month and a half.
Price Optimization
Retail Sales Online Sales
Sales Face Value $8,125,000.00 $3,500,000.00
Real Sales Value $6,500,000.00 $3,500,000.00
Unit Price 337.54 337.54
Paper Selling Price *Ream 15 15
Cost to Acquire Paper *Ream 1 1
Consumer Ream Usage 9490 9490 Total Sales
Reams Bought per Year 18.98 18.98 $10,000,000.00
Profit on Reams per Customer $265.72 $265.72
% to Retailer 20% 0%
Units Sold (excluding paper sales) 24071.22 10369.14 Paper Usage (Day)
Units Sold (with paper sales) 12132.48 5801.81 26
United Green Technologies will benefit from a price skim strategy and cross selling the specialty paper along with the printer.
1/18/2015
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Distribution Plan
Short Channel Design
Producer
Retailer
Consumer
Producer
Consumer
UGT intends to utilize a short channel to enhance the image of UV Green, strengthen customer service, improve quality control, and maintain
influences over our product prices.
WEB
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Channel Structure
Selective Coverage
$8.125 Million
California
$2,700,000
Santa Barbara
UC Santa Barbara
Apple Store
Campus Bookstore
Brookstone
Illinois
$2,700,000
Evanston
Northwestern
Apple Store
Campus Bookstore
Brookstone
New York
$2,700,000
Syracuse
Syracuse University
Apple Store
Campus Bookstore
Brookstone
= 7.33 Printers /day/store
Web Sales: 35% 28.4 printers/day
Distribution Centers
Two distribution centers
Youngstown, OH
Riverside, CA
With distribution centers in strategic locations, UGT will be able to successfully distribute its products.
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Strategies
SKIM strategy
PUSH strategy
Aggressive advertising strategy
High value in use
TV Space
Specialty Circulars
Trade Meeting
Online Ads
Social Media
Advertising
Communication Mix Goals
60,000 hits on UGT’s UV Green website in first 6 months
100 new followers per month on Twitter account
500 likes per month on UV Green Facebook page
Media Schedule
Pre Launch Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total
Word of Mouth 12.0 4.2 4.2 4.2 2.2 3.2 4.2 2.2 2.2 2.2 2.2 3.2 4.2 50.0 Publicity 8.0 4.5 4.5 4.5 2.5 3.5 4.5 2.5 2.5 2.5 2.5 3.5 4.5 50.0
Personal Selling 5.0 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 20.0 Advertising 20.0 9.8 9.8 9.8 7.8 8.8 9.8 7.8 7.8 7.8 7.8 8.8 9.8 125.0
Total by Stage 45.0 19.7 19.7 19.7 13.7 16.7 19.7 13.7 13.7 13.7 13.7 16.7 19.7 245.0
*In thousands
$245,000 in first year to advertising expenses
$20,000 to jump start efforts online and
Devote $12,000 in pre launch stage for sustainability contest
$8,000 in publicity expenses and exposure to targeted conferences (AICPA)
1/18/2015
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Website
United Green Technologies wishes to give a seamless, and user friendly social network and product sites for their consumers.
Advertisements
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Celebrity Endorsement
Adam Scott: Actor known for
his role as an accountant in
Parks and Recreation
Next Steps and Summary
1/18/2015
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Summary
UV Green
Saves time, saves money, saves the environment
$337.54 per unit
Profit margin of 61.2%, Break even in 78 days with 65% of sales (40% markup) from retail and 35% of sales from the web
9 stores in 3 cities: Santa Barbara, CA, Evanston, IL, and Syracuse, NY.
2 midpoint distribution centers in Riverside, CA, and Youngstown, OH.
Strategies: Skim and Push (CPA’s target)
Upper range of price points and aggressive advertising Target market: Business professionals and students
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