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Collaborative Marketing Plan:

Motorola Mobility LLC

Group 1
By Mindy Boyle, Angelia Brittingham, Nick Caputo, Mary Clark, Alyssa Fary, and Sarah Craig

Liberty University: BUSI 330-B02

Respectfully submitted to Professor Ron Kennedy
March 6, 2015

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Table of Contents

1. Executive Summary...........................................................................................................2
2. Company Description........................................................................................................6
3. Strategic Focus and Plan...................................................................................................7
Mission................................................................................................................................7
Company Goals..................................................................................................................7
Core Competency and Sustainable Competitive Advantage.........................................8
4. Situation Analysis.............................................................................................................10
SWOT Analysis................................................................................................................10
Industry Analysis: Trends in Cell Phone Industries.....................................................11
Key Competitors..............................................................................................................13
Company Analysis............................................................................................................13
Customer Analysis...........................................................................................................16
5. Product-Market Focus.....................................................................................................18
Marketing and Product Objectives................................................................................18
Target Markets.................................................................................................................19
Points of Difference..........................................................................................................20
Positioning........................................................................................................................21
6. Marketing Program.........................................................................................................22
Product Strategy..............................................................................................................22
Price Strategy...................................................................................................................23
Promotion Strategy..........................................................................................................23
Distribution Strategy.......................................................................................................25
7. Financial Data and Projections.......................................................................................26
Five-Year Projections.......................................................................................................26
8. References.........................................................................................................................27

1. Executive Summary
Market Overview
The current market of mobile communications has flattened and waits for new
technology. The MotoFlic is the latest innovation in mobile communications technology that will
cause a rise in the market again. Holographic projection technology built into the MotoFlic
projected from the screen gives users a new three-dimensional experience with live video
conversation, video streaming, and gaming. The market potential of the MotoFlix encompasses
the Baby Boomer generation down through Millennials. Segmentation includes technology

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literate 12 to 59-year-olds with a household income minimum of $65,000 a year.

Competitive Overview
Motorola has two principal competitors, Samsung and Apple. Samsung owns 23.7% of
the mobile market share while Apple owns 11.7%, leaving 35.7% to Motorola and other lesser
known brands.

Strengths: New holographic technology that project three-dimensional video, text,

and games off the screen. Competitors are currently unaware of this newly

available technology.
Weaknesses: A premium price that the competition could eventually copy and

compete with.
Competitors: Apples iPhone and Samsungs Galaxy own the majority of the
mobile market share. However, by reinventing mobile communications with
MotoFlic and holographic technology, Motorola will successfully compete for
that market share.

Goals and Objectives

Gain competitive share in the market within the first year of release.

Become the top smartphone manufacturer in America within the first year of
release.

Raise brand awareness and loyalty significantly within the first year of release.

Increase customer satisfaction by 30% within the first year of release.

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Opportunity
Smartphone usage is expected to grow an estimated $334.8 billion in 2017. The United
States number of households with cell phones has increased from 36 percent to 71 percent
between the years 1998 and 2005 alone. Now an overwhelming majority of the American
population own a cell phone. Other areas of market growth include Brazil, Russia, India, and
China.
Business Model
Only a handful of cell phone carriers will provide the MotoFlic at the point of release to
allow time for product demand to grow. As the demand grows, MotoFlic will eventually be sold
by all carriers. Motorola will unveil the MotoFlic at the upcoming Mobile Tech Convention.
After, there will be a social media launch and a commercial launch. Packaging design will
include an image of the MotoFlic in use for the benefit conveyed to the consumer.
Financial

Fixed and variable costs include $200 million in research, development,

production, and marketing.

Fixed cost per unit is $158.03
Retail price of $399.99 without a contract and $199.99 with a two-year contract.
Estimated gross proceeds at $583,915,000 by the end of year five.

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2. Company Description
Motorola has been around for over 80 years; they have been a pioneer in the cell phone
industry. Motorola started out as Galvin Manufacturing Corporation by two brothers Joseph and
Paul Galvin. The brothers first manufactured the battery eliminator, which eliminated the need
for batteries in battery run radios. The battery eliminator allowed the radio to run off of
household electricity. After the battery eliminator there came the car radio named Motorola and
this released in the 1930s. The battery was also the first internationally sold product by Galvin
Manufacturing. In 1947, the company dropped the name Galvin Manufacturing and began using
the name Motorola, which means sound in motion. Motorola is also the maker of 2-way radios
that are used by police and used in on the battlefields of WWII. The company also provided the
radio technology for Apollo 11 and its moon landing. In 1946, Motorola began messing with the
idea of the car phone, but it was not until 1984 that the cell phone would make it into the hands
of consumers, causing the company to soar. Motorolas mission statement is: Motorola exist to
invent, build and deliver the best mobile devices on the planet, improving the lives of millions of
people. Motorolas successes include:
Provided the radio technology for Apollo 11's moon landing (Motorola: A brief

history, 2012).
The 1973 DynaTAC, demonstrating the phenomenon of cellular telephones to the

world (Motorola: A brief history, 2012).

The 1996 StarTAC, handset that popularized the clamshell design and brought the

vibrate option from pagers to phones (Motorola: A brief history, 2012).

The 2004 RAZR, pushing the boundaries of cell phone size and fashion yet again,
becoming the best-selling clamshell ever made (Motorola: A brief history, 2012).
3. Strategic Focus and Plan

Mission
Motorola exists to invent, build and deliver the best mobile devices on the planet, to
improve the lives of millions of people (Motorola, 2015). Motorola serves consumers around

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the world with mobile devices. Being that Motorola is the company that invented the first mobile
phone, they are always looking for new ways to reinvent mobile communication. Motorolas
vision statement reads, Our history is rich. Our future is dynamic. We are Motorola and the
spirit of invention is what drives us (Motorola 2015).
Company Goals
For the coming five years, Motorola Mobility seeks to achieve the following goals:

Non-financial
1. To conserve energy by fifty percent of their total electricity from renewable
sources (Motorola, 2015).
2. To reduce hazardous waste by 10% in the next five years (Motorola, 2015).
3. To educate consumers on driving responsibly and the dangers of texting while
driving (Motorola, 2015).
4. To maintain the industry lead in quality and safety by putting all products
through rigorous testing to ensure that the products meet all safety
qualifications for consumers (Motorola, 2015).
5. Become the top smartphone manufacturer in America within the first year of
release.
6. Raise brand awareness and loyalty significantly within the first year of
release.
7. Increase customer satisfaction by 30% within the first year of release.

Financial goal
1. To return on equity of at least 20%
2. To obtain a real (inflation adjusted growth in earnings per share 20% change
by 2016 per year time after time.
3. Estimated gross proceeds at $583,915,000 by the end of year five.

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Core Competency and Sustainable Competitive Advantage

In terms of core competencies, Motorola Mobilitys powerful brand, quality, and
customer loyalty continue to distinguish us from our competitors. Our business success depends
on keeping the trust that consumers have in the Motorola brand. Motorola works to protect the
environment, and set ourselves high standards for supply chain management, quality and
behavior, which helps us to identify new business opportunities, reduce costs and risks, keep
customers loyal and attract the best employees (Motorola, 2015, para. 1). Why invest in
beginning startups when one can invest in a company that has 80 years of experience and is a
leader in innovation.
Other core competencies include environmental efforts, strong financial statements,
strategic assets and outstanding management/people that make Motorola an attractive and
valuable investment. Todays consumers have a wealth of knowledge in regards to
environmental sustainability. Motorola is an ethical company that believes in being good
stewards of the earth for a brighter tomorrow. Motorola has a strong, reliable history of profits
and investments that are found in our financial statements. From our leadership in Government
and Enterprise Solutions, to our present leadership in new WiMAX technologies, Motorola
understands the various complexities of planning and launching new mobility services" (Paul
Lanci, 2007, p. 7), including our latest introduction of the Motorola Flic hologram phone with
built-in technology. Furthermore, The Motorola Services difference: People, Processes and
Innovation - More than 6,500 service professionals worldwide, Customers in more than 80
countries, Extensive R&D resources, Centers of Excellence around the world and Deep
experience in all customer segments (Paul Lanci, 2007, p. 7). Motorola sets high standards for
employees, customers, suppliers, and the industry.

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Motorola has a sustainable competitive advantage for providing the above core
competencies while being a low-cost provider. Motorola ensures the best quality and price to its
customers by using recycled materials not only to lessen its footprint environmentally, but also to
provide lower cost for materials used. By far however the biggest competitive advantage is our
innovative technological
With the new Motorola Flic being launched stocks, prices and cash flow will increase
significantly providing. Motorola expands product annually and is committed to innovative
technology that improves the daily lives of mankind. World class leader in technology, as the
first company to invent the cell phone, Motorola remains a leader in technology being the first
cell phone to invent the built in hologram technology.

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4. Situation Analysis
SWOT Analysis
Figure 1 shows the internal and external factors affecting the market opportunities for
Motorola Mobility LLC.
Figure 1. SWOT Analysis for Motorola Mobility LLC
Internal Factors
Management

Strengths

Weaknesses

Offerings

Very experienced leadership

team with a long history of
experience in their particular
role
Leader in new technology

Marketing

Market all products globally

Personnel

Many positions that offer

flexibility and encourage input
and suggestions

Not enough structure

Finance

Financially strong

Manufacturing

Limited downtime results in

maximum productivity

Company was hit hard by the

recession and was divided into
two separate companies
Downtime causes delays

R&D

Quality management & product

support are an integral part of
the company
Opportunities
Demand for new smartphone
technology is constant among
millennials
Gain significant market share in
smartphone technology via
holographic technologies
Develop new market for
holographic technology that can
expand to tablets and laptops

External Factors
Consumer/Social

Competitive

Technological

Economic

Legal/Regulatory

Upper class households can

afford MotoFlic causing social
desire for middle class to
eventually purchase
There is little specific legislation
aimed directly at mobile devices

Management team is large and

spread thin across the globe

Competitors sometimes come to

the market with lower prices put
lessor quality product
There is no specific marketing
for any particular target group

3rd party applications interfere

with the operating system and
causes glitches.
Threats
Premium price may limit access
to mass markets; consumers
loyalty to other brands
Competitors have a strong
significant share in smartphone
market
Competitors will attempt to
duplicate holographic
technologies and offer a less
quality product for less cost
First generation MotoFlic will
be expensive to a still suffering
economic middle class
Powerful holographic
technologies could cause new

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legislation on mobile devices

Industry Analysis: Trends in the Cell Phone Industry

Cell Phone usage. According to Global Cell Phone Industry Analysis 2012-2017, trends,
profits, and forecast analysis; The cell phone industry is expected to continue its growth
momentum of 2006-2011 and reach an estimated $334.8 billion in 2017 with a CAGR of 6.8%
over the next five years (Research, para. 1, 2013). The reasons the cell phone industry is the
fastest developing industry in the world is because developing regions are expected to expand
along with continuing developments in technology and innovation. Many areas of growth
include Brazil, India, and China due to economic development and urbanization. In the first
quarter of 2014 China has shipped a record of 40% of all smartphones manufactured while the
worldwide market grew 28.6% in the first quarter of that year, according to IDC (IDC, 2014).
Motorola expects the MotoFlic to be a global bestseller and expand quickly into all market
segments.
Meanwhile, in the United States the number of households with cell phones has increased
from 36 percent to 71 percent between 1998 and 2005, according to new data released by the
U.S. Census Bureau. Households continue to decrease landline phones especially in younger
generations and increase cell phone usages (United States Census Bureau, 2009). Statistics by
generation are listed below according to Pew Research Center (Zickhur, 2011).

Age 18-34: Millennials 95% of this demographic owns a cell phone.

Age 35-46: Generation X 92% of this demographic owns a cell phone.
Age 47-56: Baby Boomers 86% of this demographic owns a cell phone.
Age 57-65: Older Boomers 84% of this demographic owns a cell phone.
Age 66-74: Silent Generation 68% of this demographic owns a cell phone.

By that, allowing the MotoFlic an opportunity to pick up the land line market with the younger
generation being evermore technology savvy and cell phone driven.

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Technology Advancement. Correspondingly, the younger generations use their

technology devices for many applications such as reading, games, talking, texting, social media,
news broadcast, video streaming, skyping and many others (See chart below).
Global Business. Motorolas advancing with new holographic technology will expand on
these applications to provide businesses with the technological innovations to thrive. Motorola
continues to strive to improve the lives of all their global customers both businesses and
individuals.

Key Competitors

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Since 1990 cell phone ownership jumped from just over 5.2 million to nearly 110 million
last year (Eng. 2015). The cell phone industry is highly competitive and ever-changing.
Motorolas two principal competitors are Apple and Samsung. Apple is well-known for
manufacturing the iPhone. Apple introduced the iPhone 6 in 2014; with its larger screen and
slimmer design they are considering it to be their best mobile phone yet. Samsung is most
recognized for the Samsung Galaxy. Samsungs newest release was the Galaxy Note 4 in 2014.
The Galaxy Note 4 has a larger screen and a lightweight design.
According to Gartner, Samsung sold 73, 212.4 smartphone units in the third quarter of
2014, and Apple sold 38,186 (Gartner, 2015). Motorola did not make it on the top 5 and instead
grouped in the others category. Samsung was the leader of the smartphone market in 2014 with
23.7% of the vendor market share. Apple came in second with 11.7% (Smartphone Venders,
2015). The need to have the newest technology and design is what fuels competition in the cell
phone industry. To compete against companies like Apple and Samsung, Motorola is reinventing
devices it was successful with in the past. Researching the newest trends and needs of consumers
will keep Motorola one step ahead of their competitors.

Company Analysis
Motorola began life with the purchase of the bankrupt Steward Battery Company in 1928
(Motorola Company Profile, 2012). Brothers, Paul and Joseph Gavin purchased Steward Battery
at auction for $750 (Motorola Company Profile, 2012). They started out with $565 in working
capital and five employees in a rented building in Chicago, IL (Motorola Company Profile,
2012). Their first product was the B battery eliminator that allowed battery operated radios to
run off the household power (Motorola Company Profile, 2012).

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During the Great Depression, the company was close to failure. Paul heard of several
companies that were trying to design a radio to put into cars (Motorola Company Profile, 2012).
He inspired his employees to design an inexpensive car radio (Motorola Company Profile, 2012).
He introduced his new radio at the Radio Manufacturers Association in 1930 and was able to
bring in enough radios to keep the company open (Motorola Company Profile, 2012). In the
2914s Galvin Manufacturing Corporation began researching televisions like the new medium
but halted research on televisions to focus on battlefield radios for World War II (Motorola
Company Profile, 2012). They developed a working two-way AM radio, the Handie-Talkie
SCR536, which became a WWII staple (Motorola Company Profile, 2012). Later in the decade,
Motorola began producing televisions for the public, the Golden View TV, model VT71
(Motorola Company Profile, 2012). Within a year the company had manufactured more than
100,000 sets and had joined the leading group of television manufacturers (Motorola Company
Profile, 2012).
In the 1950s, the company focused on televisions and home entertainment equipment,
such as phonographs, and hi-fi systems for the home (Motorola Company Profile, 2012).
Motorola hit its stride in the 1960s with the creation of NASA (Motorola Company Profile,
2012). Motorola was one of the first providers of space communications and was instrumental in
several transponders used by NASA (Motorola Company Profile, 2012). In 1973, Motorola
introduced the first prototype of the worlds first portable cellular telephone, the DynaTAC
(Motorola Company Profile, 2012). The invention and use of microprocessors allowed the race
for computers and other machines (Motorola Company Profile, 2012). Motorola developed its
microprocessor, the MC6800 and was used widely in automobiles (Motorola Company Profile,
2012).

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In 1983, the FCC issued approval for the first commercially available handheld cellular
phone, DynaTAC (Motorola Company Profile, 2012). The unit became available to the public in
1984 coming in at a mere 28 ounces (Motorola Company Profile, 2012). At the same time,
Motorola produced its last car radio in 1987 (Motorola Company Profile, 2012). During the
1990s, with the internet gaining popularity, Motorola developed its first cable modem and
continued growth in the cellular phone market that continues (Motorola Company Profile, 2012).
In 2001, Motorola introduced a metal portable cellular phone, the V60 model, with internet
access, text messaging and voice-activated dialing (Motorola Company Profile, 2012). Later in
the same decade, in 2004, Motorola introduced the RAZR V3 (Motorola Company Profile,
2012). It was a new ultra-slim cellular phone, by which many later phones would attempt to
duplicate (Motorola Company Profile, 2012).
In 2010, Motorola divided into two entities. One focuses its attention on innovating new
smartphones, called Motorola Mobility (Motorola Company Profile, 2012). The other focuses on
digital set-top boxes for those transferring a digital signal to an analog signal viewed on older
televisions and end-to-end video solutions, called Motorola Inc. (Motorola Company Profile,
2012). With the new MotoFlic, we envision the company combining years of experience and
creativity to produce this product (Motorola Company Profile, 2012). There is no doubt this will
fill a new niche in the cell phone industry and communications market with commercial and
personal applications implicated (Motorola Company Profile, 2012).

Customer analysis
There are many customers who would be in the market for and appreciate the MotoFlic
and its hologram technology. The most obvious of these is the Millennials, who are movers and

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shakers in the technology industry. They are a picky generation and have a big hand in deciding
what products will be successful. This group accounts for about twenty-four percent of our
countrys population and is always in touch with the latest technologies. In fact, seventy-four
percent of them believe that new technologies make life easier and allow them to keep in contact
with their friends and family more effortless (Nielsen, 2014). The MotoFlic would perfectly align
in allowing busy Millennials to keep in touch with family and friends. The holographic
technology will make the user feel as if the person they are having a conversation with is in the
room and not half a world away. For a group that is busy with school, work, and family, who are
looking for a way to simplify their lives, the MotoFlic allows for this capability.
The MotoFlic would also appeal to Baby Boomers. About 15% of Baby Boomers are now proud
smartphone owners, and social media is becoming more popular for this generation (RBDretail,
2013). The holographic technology used in the MotoFlic would allow Baby Boomers to catch up
with old friends or colleagues in a way that they would never have thought possible. This also
appeals to Baby Boomers because it reminds them of the movie Star Wars and makes them awe
at how much technology has advanced in the past thirty years. This technology could not come at
a better time. The technology is also easy to use for a group who is looking for a way to simplify
technology in their old age. This group also rather price sensitive, which is a factor that Motorola
has taken into account when deciding to market this product.
According to a 2013 study on trends, they describe what consumers are looking for in the
cell phone industry. Customers are looking to use technology to connect the world and expand
beyond just using the telephone element of a mobile device, allowing people new and different
ways to communicate (Thompson, 2013). Motorola understands what our consumers are looking
for, and we are meeting these challenges head on by creating the MotoFlic.

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In recent years, Motorolas popularity has fallen significantly. After the great success of
the Razr, which revolutionized the mobile phone industry, Motorola thought they would stay on
top of the industry forever (Carew, 2008). Nothing since the Razr has been successful in
snagging the consumers attention until the MotoFlic. In regards to the decision process, both
Baby Boomers and Millennials have had a major hand in helping us understand what they are
looking for in a phone. These two segments of the population represent our target markets, the
groups that we believe will purchase and use the MotoFlic.

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5. Product-Market Focus

Marketing and product objectives

The product is a step toward the future of communication. The product is an advancement
in communication using holograms within video calling. The advanced technology will reach the
tech-savvy while the easy to use design will accommodate those who are not technologically
inclined.
The goals in which we wish to achieve are as followed:
1. To be one of the top cellular phone sellers in America, reaching the top 10 list within a
year of release date.
2. Raising awareness of the product through social media, billboards, and commercials

Reach 1 million Facebook likes within six months of release date.

The creation of billboards throughout America with familiar Motorola logo along

with new product.

Release commercials for baby boomers on television local networks ABC, NBC,

and CBS as well as nationally with Fox News and CNN.

Release commercials for millennials on YouTube reaching millions of potential

customers.
3. Increase customer satisfaction by 30% in the first year of release with the help of
knowledgeable customer service.

Target Markets

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The primary target market for Motorola MotoFlic in American or Westernized cultures
includes technology literate 12 to 59-year-olds with a parental household income minimum of
$65,000 a year. Our new product the MotoFlic directs toward those looking for a more personal
and meaningful way of communicating with one another. Teenagers can socialize with friends
and listen to music. Teenagers can also access Facebook, MSN, Twitter, etc. as well as many
gaming apps that appeal to them even more so by having different apps integrated with the new
holographic 3D technology. Socializing with your friends in 3D hologram will be the hottest new
trend. As this demographic market craves the latest and greatest in technology upgrades, the
MotoFlic will have them convincing their parents that this is not just a want but a need they
cannot live without. Those in Generation Y rely on social media, friends and family to
recommend the best options. Therefore, advertising on social media sights and setting up
interactive stations at retailers to provide the experience in person before the purchase will be
crucial in our marketing strategy (Roger A. Kerin, 2013).
In all geographic cultures, our target market will include technology savvy business users
from the baby boomer generation on down. These market segments will contain the highly
educated trendsetters with a good amount of technology knowledge and a high regard for
expansion of technology. The MotoFlic will be instrumental in providing many telecommuters a
way of conducting meetings by having a personal atmosphere rather than just hearing a voice on
a conference call or seeing a face on technology such as Skype. This feature will allow
companies to interact with others almost as if they were there, without the costly travel expense.
Generation X being more independent-minded prefer to use the web and research is crucial for
them before deciding on their purchases (Roger A. Kerin, 2013). Therefore, customer feedback,
news reports, quality assurance, and best values for their disposable incomes will highly

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motivate this group. They will introduce this experience to the baby boomer generation or fellow
employees to influence them of the advantages of the 3D hologram technology.
Many stages of communication have been introduced in the last 50 years ago from radios,
television, phone, computers, super large cell phones, to smartphones, text, and now our newest
3D holographic imaging. Motorola has been a large part of these innovations and will continue
to strive to be a technology leader. Consumers delight in advancing technology, and Motorola
will continue to be aware of these needs before they are aware of the need.

Points of Difference
There are several important points of difference between Motorola and the competition.

Technology. Our use of new holographic technology in our phone. There is no

other product on the market like it.

Affordability. Many new smartphones start at $500 when they first enter the
market with a two-year contract. The MotoFlic, on the other hand, will only be
$399.99 without a contract and $199.99 with a two-year contract. The low starting

price will allow our target market to afford this product.

Communication trends. As previously discussed, people are looking for a broader
range of options in regards to communicating with their friends and loved ones.
The MotoFlic will revolutionize the communications industry by allowing people
to keep in touch with their friends and family in a way that they never thought
was possible, via hologram.

Positioning
For the avid smartphone users who enjoy the latest technology, Motorola is a
leader in innovation among all mobile technology. Unlike other smartphones, Motorola

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breaks through communication barriers in extraordinary new ways with its holographic
projection included in the new MotoFlic.

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6. Marketing Program
Product Strategy
Product line and Branding. The goal of the introduction of the new Motorola MotoFlic
cell phone with 3D Holographic technology is to continue our advancement in technology to
optimize mobile service devices for our customers. Our ultimate end consumers for the 3D
technology will be a mixture of pre-teens, teens, the affluent, the educated, and the technology
savvy business people. Motorolas core competency of branding will be made stronger with the
introduction of the new MotoFlic by continuing our efforts to retain customer loyalty and reach
out to new market segments with our efforts focused on maintaining our leadership into new
product development.
Packaging. Our well designed and innovative product will need the proper displays and
packing to draw the customer to our product. Providing a 3D poster board display conveying the
Motorola symbol over New York City in 3D resembling the Batman signal displayed over
Gotham when they are in trouble and need Batman to come to the rescue. In other countries, we
could use that countries most beloved city or familiar symbol to convey that Motorola has come
to the rescue. Packaging that the MotoFlic comes in will also use an image of the 3D technology
as well. Each box will be different and uniquely designed, referring to the image in the executive
summary.
Pricing. Most importantly we will provide excellent sales training for the sales people at
our retail outlets for using the advanced new technology. The initial retail costs will start at
$399.99 without a contract and $199.99 through our providers with a two-year contract. At full
price with the two-year contract, the consumer will pay $299.99 estimating carrier fees and
taxes, which is not bad for such new and highly advanced technology.

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Quality. Success in manufacturing is all about the customer, by providing the excellent
quality along with quick turnaround times to meet supply chain demand. Motorola will continue
to audit our manufacturing plans to ensure the best quality available and use only the most
capable of suppliers in quality. Also, the MotoFlic is a durable product that can easily handle
drops, bumps, and spills. The device will be encrypted to provide maximum security for our
customers personal information. Finally, the device will come with a manufacturers limited 3year warranty on any for parts and labor and 24/7 support for any technical assistance.

Price Strategy
The MotoFlic will, as previously stated, hit the market with a starting price of $399.99
without a contract and 199.99 with a two-year contract. The starting price is markedly cheaper
than many other new phones on the market, which start from $500 with a two-year contract.
This price is meant to attract our target market of families with teens, allowing these families
easier financial access to this new technology. We will then continue the trend of many other
providers after the MotoFlic has been on the market for several months, incentives for all those
who have not already purchased it by dropping the price to $99.99 with a two-year contract. We
at Motorola believe that the holographic technology will revolutionize the industry and act as a
major draw for all those in the market for a new phone.

Promotion Strategy
Key promotion programs for the Motorola MotoFlic are mobile tech convention,
television commercials, social media promotion, partnership with St. Jude Childrens Research
Hospital, and an early-bird special.

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Mobile Tech Convention. The unveiling of the MotoFlic will be at the upcoming Mobile
Tech Convention. Demos would be given to show-off the advancement in communication using
hologram technology within voice calling.
Television Commercials. The release date of July 1, 2015 for the Motorola MotoFlic will
advertise through commercials during American Idols 2015 season finale show. The plan is to
reach teens and pre-teens through this platform by having the commercial shown at least 15
times in 30 second segments during this 2-hour long episode. The commercial will provide reach
and frequency needed to pull customers to our brand. The young female consumer will love the
commercials advertising how they will be able to interact with their friends on their social media
sites with 3D hologram technology.
Social Media Launch. Following the Mobile Tech Convention we would launch our
social media campaign. We would have a drawing for 100 lucky people that share and like our
post of winning an invitation the early-bird special. This invitation would allow them the
opportunity to purchase the phone earlier that the rest of the public. All social media outlets such
as Twitter, Facebook, YouTube, Pinterest, and others will contain announcements for the new
product; including LinkedIn for our business segment to announce the release date of the
Motorola MotoFlic. Mostly, this will be free as it will trend high on most sites and Millennials
will forward to each other. On LinkedIn and Facebook, the advertisements will use business
meetings as examples of how it will enhance worldly interaction without
Partnership. Along with our social media launch, we would also announce our recent
partnership with St. Jude Childrens Research Hospital. Part of every sale of the MotoFlic will be
donated to the St. Jude Childrens Research Hospital to help find a cure for cancer.

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Early-Bird Special. During our campaign, we would reach out to those consumers that
are loyal Motorola users, offering them an invite to the Early-Bird Special. The special would
take place a week before the MotoFlic's release to the public.
Distribution Strategy
The distribution of MotoFlic will only be a single cell phone carrier once released. The
minimum distribution allows time to compile the demand of the product. Motorola will continue
to bring the other three cell phone carriers on board over time by releasing the rights to sell the
MotoFlic as sales increase and demand is high. The end goal is for the MotoFlic to be sold by all
major cell phone carriers in the United States in order to meet demand.

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7. Financial Data and Projections

Five-Year Projections
The MotoFlic took two years and approximately $200 million in Research and
Development, Production, and Marketing. The production cost for the unit is $158.03, and we
anticipate being able to sell the unit at a retail cost of $399.99. With this retail price being lower
than many of todays other top selling smartphones, we expect to be able to outsell the
competition with our new technology and make it a must have amongst Millennials and the techdriven Generation Y population. With this knowledge, we have expected sales of 250,000 units
being sold in select markets within the first year of production.
These sales will net $99,997,500 in revenue, with a production cost of $39,507,500, the
total gross proceeds from year one of sales $60,490,000. We hope to see a steady increase in
sales, projected to double by the second year of production to a half million units. These sales
will bring gross proceeds to $170,485,000 in the second year for a total of $181,470,000 gross
proceeds by the end of the second year, after production costs. We hope to maintain this level of
sales for the next three years, as we also anticipate having to bring to market an updated model,
at an expected much lower cost of R & D of & 10 million dollars. Updates will continue within
each of the last three years in order to stay ahead of the competition. Gross revenue at the end of
the third year, minus R & D projects at $262,940,000. These projected sales will bring MotoFlic
to a break-even point in the third year by the end of the third quarter. Year four, $383,920,000.
By the end of year five, gross proceeds will be projected at $583,915,000. After R&D costs and
production costs, profit will be $383,915,000.

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