Rob Laidler Feasibility report Kinetic Case Key environmental drivers of Change Pestle analysis Economic, IPhone is a premium

m phone and consumers want to look after it. 60/70% attachment rate of cases for Iphones (Rameraz 2011) Increasing market share of the smartphone market Social 4% of the population own an iPhone Environmental, Increased care for the environment and impact on the planet. Increase in the need for more environmentally sustainable phone accessories. Technological Technological advances in the efficiency of kinetic energy. Issues with current environmental charges, eg solar chargers that do not work in non-hot climates. Opportunity Opportunity with the mobile phone accessory market to produce a kinetic charging case that charges via movement. Need for more environmental phone products. No current products on the market at the current time. Large market value, with a gap in the market. Customer needs An innovative new iPhone device that enable the user to charge their phone will conducting exercise or sport Protects the users phone while in the case

More efficient at charging the iphone than the nearest product rivals eg (solar phone chargers) Product we provide Kinetic cases provide a kinetic mobile phone charging case. This will enable users to charge their phone while doing exercise, movement or sport. The product that we provide will be a unique product as there are no similar products available on the market at the moment after conducting extensive research. The product will be aimed at a wide industry segment due to the amount of consumers who own iPhones Market strategy will be Differentiation Strategy, this will enable high growth potential and returns What we get paid for Developing and selling a product that charges while via movement. Target Market Business to business sales. Selling to major electronic retailers and distributors. Production and distribution. Tier 1 customer Tier two customers. IPhone users, 18-40, most common age range who own an iPhone. Medium to High yearly income. Size of target Market Current iPhone consumer accessories market is valued at 100million within the Uk. (Donkin 2012) Business to Business iPhone accessories market valued at 50 million +/- 10% assuming that there is a 50% mark up on mobile phone accessories from tier 1 customers to tier 2 customers.

 4% of mobile phone users own an Iphone (mintel 2012) Target market is valued at 50 million for Business to Business in the UK. Share of Target Market in Year 5 Total business to business market value = 50 million 15% of the business-to-business market Total revenue 7.5 million Sell 75,000 cases per year at 100 Market Entry Product. First product of its kind, no other similar products available on the market at the moment. Atheistically pleasing to hold and use. 3 Year warranty Price, reflecting the marketing strategy the product will retail at a medium-high end price. This will reflect the quality and innovation of the product. Skimming pricing to be used, as at the current time there are no competitors on the market. Promotion, collaboration with well-known brands such as Nike Running App. This will enable the product to be advertised via there outlets. Made for Apple accreditation, this will show that the product has passed apples tests. This will reinforce the high quality of the product and the marketing strategy. Place, Product to be sold in Apple Shops, Technology shops, Sport Shops, High end retail to shops. Enable customers to purchase product easily but also only sold in shops that reflect the quality of the product.

Process, Research and design to make product as efficient as possible. People, Customer Service, Informative and helpful staff to help with any technical problems Marketing and Sales, Professional and Knowledgeable with drive to get the product in the correct stores Physical Evidence, product packaging, high quality and durable to protect it. Informative Operations Insourced Due to the innovative technology the kinetic charging part of the case will have to be made in house. The main reasons for this are; To not pass any confidential processes onto other companies to stop similar products and keep the process of making the component confidential. This is a core competence so should be kept within the business control. Ensure that this part of the product is manufactured to the correct quality level; this Is a critical success factor as ensuring the technology works in essential. Assembly of cases and kinetic technology and packaging. Outsourced Packaging Packing and printing to be outsourced IPhone cases Designed and outsourced to a company abroad. Eg China where labour rates will be lower than the Uk. Route to Market

 Distribution via indirect channels. Business 2 Business via distributors and retailers Financials Profit and loss for yr.5 Sales Year 5 75,000 Units= 7.5Million Variable Costs= 40 per unit Sales price 100 20 for kinetic charging unit (estimated after looking at similar products retail price) 10 per case (unit price) Packaging, Printing (5.00) Postage (5.00) = Gross Margin 4.5 million Fixed Costs Warehouse operative X4 100,000 (average national rate) Marketing and Sales Team x5 150,000 (average national salary) Machine, production line 50,000 per year Travel costs China x4 4000 Premises costs 200,000 per year (leased per year) Advertising 20,000 per year Broadband, Domain, Website 500 Phones, 1000 Postage 5000 Total fixed costs 510,500 Earnings before Interest and Tax = 3.9 Million Pounds Funding needed Research and Development costs of kinetic unit 650,000

Development of IPhone Kinetic case 100,000 Production and machine set up 50,000 Warehouse Costs Year 1 200,000 Advertising 200,000 (online, trade magazines, consumer magazines Total funding 1.5 million Summary High growth market Innovative technology with no major competitors at the current time Predicted market share of 15% b2b As IPhone sales continue to increase it can lead to a larger market for the product. Major Risks Development costs for the kinetic charger could increase due to the new technology As this we will be the first mover in this market, other competitors could copy the technology.