Montana Vehicle Emergency KitMontana Safety Equipment

LEFT OUT IN THE STORM?

Be prepared and protect those you love with a Made in Montana Roadside Emergency kit, brought to you by Montana Safety Equipment.

Objectives

• Increase public safety awareness. • Provide a “made in Montana”

emergency roadside kit for Montana drivers.

• Get MSE’s emergency kit into 1% of all lone commuter vehicles in Montana.

• Kits for 5% of teen drivers. • Kit costs about $56 and can sell for

$60, leading to profits of $27,200 (minus advertising expenditures).

Target Market

• Montana drivers– 973,000 vehicles, 562,000 drivers

• Lone commuters– 86% of Montanans drive to work

alone.

• Parents of teen drivers– 7% of drivers are 16-20 years old.– At the greatest risk for single vehicle

accident.

Strengths & Weaknesses

• Strengths– Common product customized with Made in

Montana concept and products.– Contains Montana specific items (for

Montana climate).– Creates a sense of safety for consumer.

• Weaknesses– Primarily a seasonal product.– Establishing a new company.

Opportunities & Threats

• Opportunities– Montana population growth (increase from

935,000 in 2004 to 962,000 in 2010)– Timing coincides with increasing

promotion of road emergency survival tips.– Can easily modify kit for sale in other

states with similar climates.

• Threats– Large number of competitors.– Typically a one-time purchase, not a rebuy

item.

Product Life Cycle

• Product market in market maturity stage.

• Focus for MSE’s kit is differentiation – Montana Made – in order to capture market share.

Contents of MSE kit

• Tri-fold shovel• Emergency survival blanket• Three emergency candles• Water proof matches• Kinetic flashlight (shake to charge)• Signal mirror• Whistle• Multi-tool (with screwdrivers, pliers)• Band-Aids• Gauze• Gloves• Three sets of hand-warmers• Jumper cables• Three road flares

Target Audience

• Working professionals with teenage children.

• Commuters who predominantly travel solo.

• Approximate age 25-55. • Concerned with safety of self

and/or family members.• Wishing to support local “Made-in-

Montana” company and products.

Purchasing Process

• Government’s increasing push for safety awareness and road hazard survival leads more consumers to be interested in this product category.

• Purchase typically not an impulse decision.• Parents make purchase for teenage children seeking

to ensure survival in case of accidents and for “peace-of-mind”.

• Commuters purchase for themselves, or for fellow commuters, also for “peace-of-mind”.

• Purchase Made in Montana product, even though cost is slightly higher than market, to support local business.

• MSE product available at www.MadeinMontanausa.com, Buffallo Chips, and the Made in Montana store in Helena, as well as local stores carrying “Made in Montana” products throughout Montana.

Competitors

• asAsseenOnTV.Com– 150 pc emergency kit for 29.95 + 10.95 s & h – (lesser quality)

• AccessConnect.Com– 11 pc emergency kit for 29.95 + s & h – (lesser quality)

• AAA – 39 piece kit retail for 29.95 + s& h

• Red-e vehicle kit– 80 piece kit $259.95 + s& h– (more supplies for survival)

Competitor Analysis

Red E Kit

MSE

As Seen on TV

AccessConnect

AAA

Comprehensive Kit

Economy Kit

Low Price

HighPrice

Market Dimensions

• Market potential is 973,000 vehicles, 562,000 drivers.• Current target of 1% of commuters is approximately

4800* drivers.• Current target of 5% of teenage drivers is

approximately 2000** drivers. • Estimated population growth leads to an estimated

increase in drivers from 562,000 to at least 579,000 by 2010 (estimating 60% of Montana’s drive).

*(562,000 drivers * 86%lone commuters*1%=4833 drivers)**(562,000 drivers * 7%teen drivers * 5%=1967 drivers)

Consumers Will:

• Become interested or aware of the problem– Use psychological influence of maintaining a state of

readiness in case of emergency.– Use social influence regarding safety of loved ones.– Emphasize the winter season as hazardous and the time to

purchase is NOW!

• Recall and gather info re possible solutions– Emphasis on the comprehensive nature of our product, able

to meet the challenges of Montana winter storms—no need to purchase other products, all in one inclusive.

• Evaluate alternative solutions – perhaps try some out– Must continue to emphasize the LOCAL attributes of our

product.

• Decide on appropriate solution– Emphasis on product satisfaction will be so high, they will

want all family and friends to carry the same equipment - peace of mind.

• Evaluate the decision

Strategy Considerations: Product • MSE’s kit is a specialty product that will be

treated as a Homogenous Shopping product.– Market is in maturity stage.– Customer service must be kept at very high level.

• MSE guarantees kit for 3 years.• MSE supports “Made in Montana”.• MSE can personalize kits for low cost.

– Embroidery services available from Montana Correctional Enterprises.

• Cultural Sensitivity– Product supports current trend towards emergency

safety and survival.

Strategy Considerations: Place• Market exposure required is at least

50% of all teen drivers, parents of teen drivers and commuters.

• Direct channel distribution– Web-site based order and customer

service available.• Direct access• Also linked through Made in Montana web-site.

• Indirect channel distribution– Retail sales through stores that carry

Made in Montana goods.– School fundraiser option.

Strategy Considerations: Promotion• Emphasize safety and peace-of-mind.

– Remind consumers of hazards of winter driving in Montana.

• Rapidly changing weather means severe winter storms with little or no warning.

• Extreme cold, wind, and ice conditions lead to increased accidents.

– Remind consumers of the importance of being prepared for emergencies.

• Emphasize “Made in Montana”– Encourage consumers to be prepared and

to support local businesses.

Strategy Considerations: Promotional Blend• Advertising

– Through Made in Montana web-site.– Print media in the local newspaper.– MSE business cards with company contact

information and web-link.

• Personal Selling– Through direct contact with consumers.– Through school fundraiser promotion.

• Sales Promotion– Discount on multiple kit purchase.– Fundraiser Options

• Schools: 25% of profits returned to schools.• Charity: 25% of profits returned to charity.• Both options include school logo/charity logo

embroidery.

Strategy Considerations: Price• Demand is relatively inelastic.

– Specialty item with few substitutes.

• Low mark-up due to primarily direct channel sales.

• Customer value impact through promotion– School and charity purchases for “good

cause”.– Made in Montana purchases for

supporting local business.

• List price adjustments for quantity order passed on to consumer.

Special Implementation Problems to be Overcome• Company size.

– High time investment by all parties to facilitate sales and customer service.

• Contact with schools and school organizations with fundraising option.

• Contact with local charity organizations and businesses with charity fundraising option.

• Regular contact with local “Made in Montana” retailers.

• Financial considerations– Small business loans available.– Limited individual resources.

Sources

• Drivehomesafe.com/just_4_u_teens.htm• www.stats.indiana.edu/state_projections_2010.xls• Quickfacts.census.gov/qfd/states/30000.html• www.mdt.mt.gov• www.knowthis.com• www.AsSeenOnTV.com• www.aaa.com• www.accessconnect.com• www.madeinmontanausa.com