marketing plan – child tracking device

8/11/2019 Marketing Plan Child Tracking Device

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Peace of Mind Technologies (POM) is an exciting start-up company in the newlyemerging field of Personal Tracking Devices; respected industry analysts predict thiswill become a LE 15 Million market within the next three years.

Products and ServicesPOM will develop and distribute miniaturized Personal Locator Devices (or Personal Tracking

Devices). Initially, the manufacturing of our devices will be subcontracted, while we developthe supporting software and systems internally, although we plan to manufacture ourproducts in-house in future years. Our products are also distinct in that they are small andfully programmable. Our systems can be customized by the end user for his or her unique,individual applications or different from those required in business applications.


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Market Our primary target markets include, but are not limited to, the family consumer, kids withspecial needs and Alzheimer patients. Because of our unique proprietary programmingcapabilities for each individual unit, we have already received indications of interest fromseveral of these target markets.

We predict our systems will also appeal strongly to families concerned about the safety oftheir loved ones. Sadly, child abduction is on the rise globally and Egypt especially. At theother end of the age spectrum, there are thousands Alzheimer patients in wander away fromtheir homes at some point, unaware of their surroundings. We believe our devices willgreatly reduce these figures in both cases, while potentially saving lives.

The combined number of "potential" customers for our products is well over; we will focuson a more realistic and attainable three-year sales goal, which will generate many millions ofpounds in sales revenues.

By focusing on our strengths, our key customers, and our customers' needs, POMTechnologies will increase sales to several millions of pounds within two years, while alsoimproving the gross margin on sales, cash management and working capital.


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Parents seeking Safety

Parents with special needs kids

Modern/Lifestyle parenthood


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POM Technology is a small monitoringtool that can be placed in your child'spocket, backpack or jacket and usessatellite technology to continuouslyknow the location of the child.

We will have two lines of products: Class A and it is sold by 700 LE Class B and it is sold by 350 LE


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AMBER Alert (Americas Missing BroadcastEmergency Response) originating in the UnitedStates in 1996.

in May 2003, Amber Alert GPS launched a newversion of the Companys highly -successfulAmber Alert GPS device, along with a new companion Smartphone appto allow parents to easily know their childs location.

The price for Amber Alert GPS Child Locator Tracking Device starts from130$.

its high-quality, easy-to-use GPS tracker with plenty of features and aweb-based service. By April 2, 2014 Amber Alert have helped rescue and safely return 688

children.


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Direct VS

IndirectChannels ofDistribution


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Less complicated Less expensive build customer relationships Eliminates cost of middle man Allows for market research

Form Utility Time Utility Place Utility Information Utility Possession Utility Service Utility

Reasons For Choosing Direct Channels

Reasons For Choosing Indirect Channels


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POM technology is extremely small monitoring tool that can beplaced in your child's pocket, backpack or jacket.POM technology uses satellite technology to continuously know thelocation of your child.

POP: it would work in the same way that GPS works for your car.POD:

a- it takes far less battery power

b- Its not giving directions; rather, a personal GPS trackingdevice occasionally transmits data to let a third party knowwhere the device is located.


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There are three different ways you can track your child:-

Location: A small device shares your childs location with youat all timesAlerts: If your child travels outside of a predetermined area,you receive an alert.Alarm: So if your child is in danger, they can hold down a

button for three or four seconds to alert you.


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Obtain peace of mind

Child abductions

Wandering children

Child behavior problems.

Support kids with special needs

Modern / lifestyle parenthood


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Focus on target marketing to increase market penetration anddomination.

Establish brand awareness for the tracking device.


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Assuming we have two lines of products:o Class A will be sold with 700 LE

We will be using Product-Quality Leadership pricing strategy.

o Class B will be sold 350 LE

We will be using Market penetration strategy pricing strategy.


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Should keep an eye on the formcompetition.Exert much effort to ensure that nohealth harm issues would harm thechildren.To assess other aspects of productdesign, such as product packaging ornames.link in with other aspects of marketing.For example, it can help you assess howmuch consumers are willing to pay fornew product features.


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S W

O TSWOTAnalysis


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SWOT Analysis

Strengths

S W

O T

Product quality Health issues. Product material. Signal quality.

Product details match customerspreferences.


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W eaknesses

SWOT Analysis

S W

O T

Product is new, so cant buildon competitor reputation. Company is new, so cant build

on company reputation.


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Opportunities

SWOT Analysis

S W

O T

Current weak security status. Entering different segments... Alzheimer. Elderly. Pets.

Judicial system.

Military. Political. Businesses.


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Threats

SWOT Analysis

S W

O T

Fear of health harm. Emerging of new competitors.


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Loyalty Programs.

Referral Program.

Recycling Program.

Beyond (Partnering) Program.

CSR Program


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As a start-up company in an emerging and changing industry, wehave intentionally designed a conservative plan, looking toensure the achievement of our corporate goals along with asolid ROI to our partners.

We will of course revise our financial plan throughout the firstyear based on actual figures in sales, Importing costs,technological advances, personnel, office space, marketingcosts, and so on


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As per our estimations that will be describe later, the company willneed 750,000 LE as operation cost per month on the first year,break-even point will be reached after 8 months, so for a steadystart up , we will need to have 10 months cover (750,000LE) , plus

the direct cost of sales or the product cost for the projectedquantity that we are expecting to sell which is around 600,000(exactly 608,000 LE)

Total Start up Summery will be 1,358,000 LE Form Break-even calculations, optimal requirement start-up cash is

450,000 LE


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Our plan's success is also predicated on the following assumptions:Securing seed money with investors/ partner who will bringadded value to POM Technology.The acceptance of our device by the public, the business sector

and the military.Staying ahead of technological advances in this field, andreacting to these changes in a timely and efficient manner.Managing the start-up of our firm with minimal personnel until

steady growth necessitates hiring additional departmentmanagement and support staff.


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Our plan's success is also predicated on the following assumptions:Partnering with one of the current mobile operators quickly inorder to penetrate and dominate market share, make use of thecommon technology infra-structure they have.

Success in marketing our products for brand awareness andpositioning.


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The Profit and Loss table, below, shows our projected sales, cost ofsales, and operating expenses for the first three years, of particularnote are the high Sales and Marketing expenses; our marketresearch indicates these approximate spending levels will be

necessary for launching such a new and unique productsuccessfully.All costs associated with import and distributing the physicalproducts can be found under cost of sales in the Sales Forecasttable

We anticipate that sales will begin to generate a stable profit forPOM Technology from second year of operation


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Projected Profit and Loss Assumptions Projected Sales Targets are according to the Following ;

Year One 3000 Unites , Year Two 6000 Unites , Year Three 10000Unites

As we have two line of produces , all calculations are based onselling Product class A , but in case when selling product line class B, quantity of sales have to be duplicated to achieved the neededtargets

Product Class A Cost 320LE , and Product Class B Cost 160LE Product Class A Price 700 LE , and Product Class B Cost 350LE Annual increase for both cost of product , and selling price by 10%


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Profit and Loss Year 1 Year 2 Year 3Quantity (Both Class A and B) 3000 6000 10000Sales EGP 2,100,000 EGP 4,620,000 EGP 8,400,000Direct Cost of Sales EGP 960,000 EGP 2,112,000 EGP 3,840,000Other Costs of Goods EGP 0 EGP 0 EGP 0Total Cost of Sales EGP 960,000 EGP 2,112,000 EGP 3,840,000Gross Margin EGP 1,140,000 EGP 2,508,000 EGP 4,560,000Gross Margin % 54.29% 54.29% 54.29%

ExpensesPayroll EGP 200,000 EGP 400,000 EGP 755,000

Sales and Marketing and Other Expenses EGP 190,000 EGP 200,000 EGP 250,000Adver tis ing & Mar keting Collater al EGP 295, 000 EGP 350, 000 EGP 430, 000Rent EGP 122,800 EGP 126,000 EGP 130,000Telephone EGP 10,000 EGP 10,000 EGP 16,000Utilities EGP 14,400 EGP 18,000 EGP 20,000Insurance EGP 6,000 EGP 8,000 EGP 9,000Company Vehic les and related expens es EGP 16, 800 EGP 18, 000 EGP 20, 000Trade Shows & Events EGP 45,000 EGP 0 EGP 0Total Operating Expenses EGP 900,000 EGP 1,130,000 EGP 1,630,000

Total Cost of Sales EGP 960,000 EGP 2,112,000 EGP 3,840,000Total Operating Expenses EGP 900,000 EGP 1,130,000 EGP 1,630,000P rof it Bef or e I nter es t and Taxes EGP 240, 000 EGP 1, 378, 000 EGP 2, 930, 000

Earnings before interest, taxes,depreciation and amortization (EBITDA)

EGP 240,000 EGP 1,378,000 EGP 2,930,000

Interest Expense EGP 0 EGP 0 EGP 0Taxes Incurred EGP 60,000 EGP 344,500 EGP 732,500

Net Profit EGP 180,000 EGP 1,033,500 EGP 2,197,500 Net Profit/Sales 8.57% 22.37% 26.16%


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Year 1 Year 2 Year 3

Net Profit EGP 180,000 EGP 1,033,500 EGP 2,197,500

Sales EGP 2,100,000 EGP 4,620,000 EGP 8,400,000

EGP 2,100,000

EGP 4,620,000

EGP 8,400,000

EGP 180,000

EGP 1,033,500

EGP 2,197,500

EGP 0

EGP 2,000,000

EGP 4,000,000

EGP 6,000,000

EGP 8,000,000

EGP 10,000,000

EGP 12,000,000

Profit and Loss


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Net Profit/Sales 8.57% 22.37% 26.16%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Net Profit/Sales


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EGP 0

EGP 500,000

EGP 1,000,000

EGP 1,500,000

EGP 2,000,000

EGP 2,500,000

Net Profit


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Important FiguresSales EGP 2,100,000 EGP 4,620,000 EGP 8,400,000

Gross Margin EGP 1,140,000 EGP 2,508,000 EGP 4,560,000

Total OperatingExpenses

EGP 900,000 EGP 1,130,000 EGP 1,630,000

EBITDA (Earnings beforeinterest, taxes,.)

EGP 240,000 EGP 1,378,000 EGP 2,930,000


Net Profit/Sales 8.57% 22.37% 26.16%


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For our break-even analysis, we assume per month running costswhich include our full payroll, rent, utilities, and an estimation ofother running costs. Payroll alone, at our present run rate, is onlyabout EGP 75,000 per month for the first year,

Below Estimations for breakeven analyses show that over the firstyear, we will operate with negative profits and no revenue for thefirst 10 months, before we reach breakeven (2450 Device)


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MonthNumber

OperationCost

QuantitySold

Direct Cost of Sales MonthlyRevenue

TotalRevenue

Total Profit

Month 1 75,000 0 0 0 0 -75,000

Month 2 150,000 0 0 0 0 -150,000

Month 3 225,000 0 0 0 0 -225,000

Month 4 300,000 0 0 0 0 -300,000

Month 5 375,000 0 0 0 0 -375,000

Month 6 450,000 300 96000 210,000 210,000 -336,000

Month 7 525,000 300 192000 210,000 420,000 -297,000

Month 8 600,000 400 320000 280,000 700,000 -220,000

Month 9 675,000 400 448000 280,000 980,000 -143,000

Month 10 750,000 500 608000 350,000 1,330,000 -28,000

Month 11 825,000 550 784000 385,000 1,715,000 106,000

Month 12 900,000 550 960000 385,000 2,100,000 240,000


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1 's t Month 2'nd Month 3' rd Month 4' th Month 5' th Month 6 'th Month 7' th Month 8' th Month 9 'th Month 10' th Month 11 'th Month 12'th Month

Total Profit -75,000 -150,000 -225,000 -300,000 -375,000 -336,000 -297,000 -220,000 -143,000 -28,000 106,000 240,000

-500,000

-400,000

-300,000

-200,000

-100,000

0

100,000

200,000

300,000

Break-even Analysis


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Based on taking average numbers for the profit and Loss tables, wecan find the below graph and table for showing the fill profit trendover three years of operations


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MonthNumber

TotalCost

QuantitySold

Direct Cost ofSales

MonthRevenue

TotalRevenue Total Profit

Month 1 75,000 0 0 0 0 -75,000Month 2 150,000 0 0 0 0 -150,000Month 3 225,000 0 0 0 0 -225,000Month 4 300,000 0 0 0 0 -300,000Month 5 375,000 0 0 0 0 -375,000Month 6 450,000 300 96,000 210,000 210,000 -336,000Month 7 525,000 300 192,000 210,000 420,000 -297,000Month 8 600,000 400 320,000 280,000 700,000 -220,000Month 9 675,000 400 448,000 280,000 980,000 -143,000Month 10 750,000 500 608,000 350,000 1,330,000 -28,000Month 11 825,000 550 784,000 385,000 1,715,000 106,000Month 12 900,000 550 960,000 385,000 2,100,000 240,000Month 13 994,166 500 1,136,000 385,000 2,485,000 354,834Month 14 1,088,332 500 1,312,000 385,000 2,870,000 469,668Month 15 1,182,498 500 1,488,000 385,000 3,255,000 584,502Month 16 1,276,664 500 1,664,000 385,000 3,640,000 699,336Month 17 1,370,830 500 1,840,000 385,000 4,025,000 814,170Month 18 1,464,996 500 2,016,000 385,000 4,410,000 929,004Month 19 1,559,162 550 2,209,600 423,500 4,833,500 1,064,738Month 20 1,653,328 550 2,403,200 423,500 5,257,000 1,200,472Month 21 1,747,494 500 2,579,200 385,000 5,642,000 1,315,306Month 22 1,841,660 500 2,755,200 385,000 6,027,000 1,430,140Month 23 1,935,826 500 2,931,200 385,000 6,412,000 1,544,974Month 24 2,030,000 400 3,072,000 308,000 6,720,000 1,618,000Month 25 2,165,833 800 3,379,200 672,000 7,392,000 1,846,967

Month 26 2,301,666 800 3,686,400 672,000 8,064,000 2,075,934Month 27 2,437,499 800 3,993,600 672,000 8,736,000 2,304,901Month 28 2,573,332 800 4,300,800 672,000 9,408,000 2,533,868Month 29 2,709,165 900 4,646,400 756,000 10,164,000 2,808,435Month 30 2,844,998 900 4,992,000 756,000 10,920,000 3,083,002Month 31 2,980,831 900 5,337,600 756,000 11,676,000 3,357,569Month 32 3,116,664 900 5,683,200 756,000 12,432,000 3,632,136Month 33 3,252,497 800 5,990,400 672,000 13,104,000 3,861,103Month 34 3,388,330 700 6,259,200 588,000 13,692,000 4,044,470Month 35 3,524,163 800 6,566,400 672,000 14,364,000 4,273,437Month 36 3,660,000 900 6,912,000 756,000 15,120,000 4,548,000


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-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

Y 1 M 1

Y 1 M 2

Y 1 M 3

Y 1 M 4

Y 1 M 5

Y 1 M 6

Y 1 M 7

Y 1 M 8

Y 1 M 9

Y 1 M 1 0

Y 1 M 1 1

Y 1 M 1 2

Y 2 M 1

Y 2 M 2

Y 2 M 3

Y 2 M 4

Y 2 M 5

Y 2 M 6

Y 2 M 7

Y 2 M 8

Y 2 M 9

Y 2 M 1 0

Y 2 M 1 1

Y 2 M 1 2

Y 3 M 1

Y 3 M 2

Y 3 M 3

Y 3 M 4

Y 3 M 5

Y 3 M 6

Y 3 M 7

Y 3 M 8

Y 3 M 9

Y 3 M 1 0

Y 3 M 1 1

Y 3 M 1 2

Profit Before Interest (EBITDA) , Three Years Full Trend

Total Profit


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All of the above steps are created as a marketing plan based on marketingresearch and analysis; we might face a deviation of what we did plan verseswhat we will achieve.Hence, we will use three ways in order to monitor ongoing results, investigateany deviation from plans, and take corrective steps as needed. We will usebudgets, schedules, and marketing metrics for monitoring and evaluatingresults as follow:BudgetWe will compare planned expenditures with actual expenditures on quarterlybasis and monitor the sales revenue in monthly basis

Schedules To see when tasks were supposed to be completed and when they actuallywere done.


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Marketing metrics

Through tracking the actual outcomes of marketing programs; to see whetherthe company is moving forward toward its objectives or not and the customerstratification feedback will be the reference.

Contingency plan

Based on the results we will get we will be ready to adjust the marketing planand prepare for a contingency plan.Difficulties and risks

o Problems generating visibility a function of being star-up organizationo An entry into the market by already established competitors

Worst-Case Riskso Determining that the business cannot support itself on an ongoing

basiso Having to liquidate equipment or intellectual capital to cover liabilities


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marketing plan – child tracking device

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