Business

Proposal for
Suvidha
Mobile
Chargers.
2009
Exclusively for
Angel Investor
Product

Product description High quality, low cost, easily portable

hybrid mobile charger which works in both
rechargeable, reuses mode as well as AA
battery mode.

Technology Source In-house(Patented)

Rechargeable Battery 9V DC Lithium Ion battery

Number of AA batteries 2

Dimension Specification 92mm(l)*64mm(W)*17mm(h)

Weight 5 ounce

Cost of production and Marketing $2.5

Selling price in India $4.5

Selling price in US $9.5

Contact us: suvidhalabs@gmail.com Phone: 91-6274-227550, 91-9334416763

S.W.O.T Analysis

Strength Weakness
1. Low cost 1. New brand with no market exposure.
2. Hybrid with Option of recharge and reuse as 2. Access to US market.
well as charging with AA batteries. 3. Lack of Working Capital
3. Small and portable.
4. Contract production in Chennai available.
5. High profit margin.
6. In house patented technology.
7. Designed to meet all product safety standards

Opportunities
1. 1.5 billion Mobiles all over the world with
growth projection of 10% in 2010.
2. Indian market has 350million mobiles and
expected to grow at 28% in 2010 and 2011.
3. Irregular power supply in India.
4. Upwardly mobile middle class India travels with
their mobiles frequently.
Threats
1. Better known players have already established a
foothold in the US market.
2. Technology can be easily duplicated.
3. Has to maintain cost advantage to be
competitive.

Competitor
Company Product details Usability Dimensions Weight cost

Suvidha labs Portable hybrid Regular 92mm(L)* 5 ounces $9.5

mobile charger batteries 64mm(W)*
and AA/AAA 17mm(H)
rechargeable
batteries.

Duracell Portable mobile AA/AAA 130 mm (L) x 80 6 ounces $29.50

charger rechargeable mm (W) x 30 mm
batteries (H)

Ipwr Portable mobile High 2.3 x 0.8 x 0.5 1.6 ounces $44.95
charger capacity inches
850mAh

Li-Polymer
battery
inside.

Golden Portable hybrid No batteries Big compared to 8 ounces $20.58

gadgets charger required. others

Contact us: suvidhalabs@gmail.com Phone: 91-6274-227550, 91-9334416763

Unique selling points
 High quality low cost product.

 Warranty can be offered in India.

 Product backed by the company in India, unlike imports which are either at least 3 times
costlier or is from an anonymous source with no assurance of quality or service.

 If imports to US succeed, in India the firm can market it as a product used in America.

 No major Indian companies have this kind of product line.

Target Market
The target market is primarily the

 Frequently travelling busy professionals in India (Upwardly mobile middleclass

households)

 People with mobiles but irregular power supply both in Rural and Urban India

 Frequently travelling busy professionals in US looking for a cheap high quality

alternative for established product of this kind.

Implementation Strategy
 Production outsourced to the contract manufacturer in Chennai.( in SreePerumbatoor)

 Marketing Outsource to a Lindas or Mudhra.Fixed cost negotiated and settled as 10,000$

 1 year Warranty provided for effective customer service.

 Online presence is there with a website.

 Independent Retailers and Retail Chain for electronics are initially given 25 to 33% of the
selling price to promote the product. This rate settles down to 22% in around 6 months.

 Initial roll out in Banglore and then spreading to South India.

 Four customer service hubs in South India.

 The package contains a postal envelope which can hold the product.

Contact us: suvidhalabs@gmail.com Phone: 91-6274-227550, 91-9334416763

Financials

Pricing and Cost Detailed….

Costs $ INR

Cost of the plastic case 0.1 4.6

Cost of the internal circuits 0.1 4.6

Cost of mobile plugs 0.4 18.56

Cost of Rechargeable Lithium Ion(6V) battery 0.7 32.48

Cost of warranty /un it 0.1 4.6

Cost of packaging 0.1 4.6

Cost of shipping from Chennai to US /1000unit 986

Cost of shipping from Chennai to US /Unit 1 46.4

Cost Incurred as commission to the retailer in India 1 46.4

Total Costs (Excluding Tariffs) in US 2.5 116

Total Costs in India 2.5 116

Product Pricing In U.S market in $

Duracell 29.5

IPWR 44.95

Golden Gadgets 20.58

Suvidha Labs Charging Systems 9.50

Product Pricing In Indian market in $

TECHNO MART 8.00

IPWR 44.95

Golden Gadgets 20.00

Suvidha Labs Charging Systems 4.5

Contact us: suvidhalabs@gmail.com Phone: 91-6274-227550, 91-9334416763

Test Market and Testing Strategies

Test Market = Bangalore

Why Bangalore?
 Population =8 million.
 Mobile Connectivity =62% of 8mil =4.96mil.
Apart from these facts Bangalore is a microcosm of India, with people from all regions of the
country coming to work and live there; hence it will be a good test market before National
Launch. It is known as the IT capital of Asia with about 300,000 IT professionals. It is a
booming metropolis with a young demographic of about 25 years. Majority of the young people
in Bangalore is working professionals with mobile phones expendable income. Bangalore is a
hub for the newly rich upwardly mobile Indian middleclass.
Initially 5000 units will be sold through independent electronic retailers by offering them a
commission of $1.5 for every unit sold. This is almost 33% of the selling price. The initial
publicity and branding responsibilities will be left for a Advertising and Branding Agency like
Strategeon , Lowe Lindas or Mudhra for $5000.Setting up of a customer service address and
feedback will require $1000.All this should be done in a time frame of 3 months.
Total investment during tesing period =$21,000.

Expected Results

Indian Market
Indian mobile phones and accessories market =$13.5 bil.
It is the fastest growing mobile phone and accessories market in the world.
The total number of mobile phones in India=350 mil.
In 2010 and 2011, 107 million new mobile phones are expected in the market.
The industry is slated to grow at the rate of 28% for the next 2 years.
If we are able reach 0.03% in the first year,

The number of unit of expected sales =105000 units for 2010.

Contact us: suvidhalabs@gmail.com Phone: 91-6274-227550, 91-9334416763

 Year 2010 2011 2012 2013 2014
Total number of units to be sold in 2010 105000 126000 151200 181440 217728
Cost for production 157500 189000 226800 272160 326592
Cost of marketing 10000 12500 15625 19531.25 24414.06
Revenue 472500 567000 680400 816480 979776
Commissions for Retailers 105000 126000 151200 181440 217728
Profit 200000 239500 286775 343348.8 411041.9

Total investment required

Investments $

Test Phase 21,000

Initial production cost for 2010 157500

Marketing costs 10000

Total Investment 188500

Contact us: suvidhalabs@gmail.com Phone: 91-6274-227550, 91-9334416763

Contact us: suvidhalabs@gmail.com Phone: 91-6274-227550, 91-9334416763