Marketing New Product Plan

Andrew Stacey, Hiren Babaria, and Antony Gonzalez

The University of Texas at Dallas

Table of Contents
Marketing Objectives..........3

Market Research..............................4

Pricing Strategy................6

Channels of Distribution..8

Promotion Strategy and Plan...........................................................................................................9

Appendix..3

Marketing Objectives:
With technology getting more and more advanced, many people have smart phones, and an

increasing amount of these people are becoming dependent on them. This being said, these

phone-owners are going to make sure there phones are charged at all times, so that the battery

will never die. This would mean bringing a charger with them and plugging their phone in

whenever needed. Well what about households or apartments with larger amount of people living

there? What if everyone hangs out in one room? Will everyone bring their own charger and plug

it into to an individual socket? As the number of people increases in this scenario, the more

hassle there will be: including clutter, not enough wall sockets, and the disorganization of phones

charging all over the place. This is where our product comes into play.

Our product is a multiple-phone charger, with plug-in or wireless charging capabilities. These

characteristics will allow the charging station to be compatible for virtually any type of phone.

The plug-in ports will be USB drives so that it can be accessed by any charger. It will have

individual slots for the placement of each cell phone while it charges, to keep it safe and

protected from any possible damage. This slot will reduce the exposure of the phone to reduce

any damage to the exterior, while still allowing the phone itself to be easily accessed. Our target

market for our product is businesses or large facilities that have high volumes of people and

traffic. This would include office buildings, department stores, hospitals, schools. Our target

market is set as such because our product is intended for use by multiple people, all that have

phones. The product will create a communal charging area for multiple cell phones to be placed

and charged simultaneously. Instead of phones and chargers being scattered or cluttered, this new

product will create a convenient and organized area for our consumers to charge their phones.

Businesses could use this product as an accommodation for their customers as a way to increase

customer satisfaction through more amenities and thus create a better service.
There are many goals that can be stated for this product. One important goals for this product is

to increase awareness for this type of product. Wireless charging is still in the introduction stage

of the Product Life Cycle. Discussing with people who took our survey, especially from the older

demographic, many of them did not know about wireless charging or if their phone had

capabilities to wireless charge.

Through this product, we would like to create more awareness for wireless charging in general.

We would like to generate 30 percent awareness among businesses in Texas in our first year.

Awareness will be increased by spending $100,000 on marketing and advertising. This increased

awareness will hopefully generate more sales for the charge box. People will be more likely to

buy this product because it has wireless and wired charging capabilities, which can be used as a

stepping-stone to solely wireless chargers.

With more awareness, our other goal is in focused in increasing the sales of our product. We

want to sell 4,000 units in one year amounting to revenues of 800,000. With this goal we would

not yet break even, but we would be close, with expectations to break even in our second year.

With the accomplishment of these two goals, I think our product will be on a good track to profit

for the years to come.

Marketing Research:

According to our survey 92% of those who answered had said that their phone charger has been

damaged in some way. This is important because our product is aimed at creating a charging area

that is safe for phones and charger. Since this charger is stationary, and not moved around often

like individual phone chargers are, the likelihood of it being damaged is extremely minimal.
Also, only 50% of our surveyees have used wireless charging before, while 58% said their phone

does not have the capability. Our product would be good for these people in order to expose

more to wireless charging, but still having wired charging for those who cannot charge

wirelessly.

The product named Charge Box will have a total of five trays to hold up to two cellphones in in

each tray. Each tray will have one Universal Serial Bus (USB) port, so different types of

cellphones can be used as along they have the cord required for their phone. The charge box will

be using USB 2.0 instead of the latest USB 3.0 standard to save costs. Using the USB 2.0

standard instead of 3.0 will not hurt the quality of product since USB 3.0 new features are used

for faster data transfer speeds not for faster charging. Each tray will also have a wireless charging

capability, as well as a small LED light so it can be used even at night. The Charge Box team

selected the Qi inductive power standard. The Qi inductive power standard is a superior

compared to competitors such as Powermat, and A4WP. Qi has faster charge time than its

competitors and is less expensive to manufacture. Qi is able to charge at 15 watts of power which

is faster than its competitors (Nazarian, 2015). Qi is also the most used wireless charging

standard. It is currently used in high Samsung and LG cellphones like the Samsung Galaxy S6.

The Charge Box will be made of plastic. Plastic was used, because it provides superior wireless

charging speeds over other materials and it will lower the cost to manufacture the product. Since

the charge box is made of plastic instead of metal it is also lighter allowing it to be moved to

different locations easier. The total product weight will be approximately 2.2 pounds. Charge

Box has an ample amount of weight to it to be sturdy, but is also light enough to move around

easily.
The consumer will benefit from the wide range charging options the product can offer. The

product is a viable replacement to Power Floor Stand Charging Station that is seen around

university locations. The Charge Box can be used in a variety of locations due to its design. The

Charge Box can be used in Doctors waiting area, hotel rooms and lobbies, universities and in

home use. (The product design can be seen on Appendix page 1 and 2)

Pricing Strategy:

The Charge Box will cost 60 dollars to manufacturer at 15,000 units.

This includes the raw materials including the plastic, the technology (USB

Ports, wireless charging, Cables), and LED lighting, as well as the cost of

using SVTronics as our manufacturer. The Charge Box Company will allocate

$100,000 to the marketing budget. The company will also allocate $100,000

in payroll for the company. The three partners, Andrew Stacey, Hiren Babaria,

Anthony Gonzalez, will not be taking salary from the company to keep cost

low as possible. Our pricing objective is to make around a $800,000 dollars in

revenue and a loss of $300,000 for the first year of operation. We plan on

making a profit after our first year, hopefully during our second year of our

operation. For the initial run of the product we are going to produce 15,000

units. The cost per unit will be 73.33 dollars. We will be charging a retail price

of $200 dollars.

This price is competitive because there are charging stations in the market today, but none

that have wireless charging, that cost more than what our product does. For example, UTD has
charging stations throughout campus that, according to our market research, are more expensive

and less capable than our product.

Our total cost for 15,000 units is going to be $1,100,000. This is calculated by adding the

cost to produce the 15,000 goods (15,000*60=900,000) to the marketing budget ($100,000) and

the salaries budget ($100,000), this would equal $1,100,000 . If the Chargebox Company sells

the product each for $200, it would take 5,500 (5,500*200=1,100,000) units to break-even.

Every unit sold after 5,500 units would be considered a profit. Total Revenue with $15,000 units

would be 3,000,000, and a profit of 1,900,000 (3,000,000-1,100,000). Appendix 3 shows the

break-even graph that represents this scenario.

Channels of Distribution:

For our channels of distribution, we are going to focus on selling our product online. People are

getting increasingly comfortable with online shopping, and people who have and utilize a smart

phone are among this demographic. Since this target is targeted towards businesses who have the

higher-quality phones and smartphones, we think that selling our product online should not be a

problem.

We would distribute out of the Dallas area. We have decided to go with SVTronics Incorporation

as our manufacturer since they are located in Plano and manufacture electronics. Their mission

statement includes providing state-of-the-art manufacturing service to their customers. Svtronics

also has a design team that can help make changes product to make it cost effective. They have a

great track record and manufacture for many companies in many market segments, including

Texas Instruments. After researching SVTronics Inc., we have decided that they will be reliable
in manufacturing our product and preparing it for distribution and an efficient manner, while still

maintaining high quality. We will produce our product from here, as well as distribute. We will

use UPS as our means for distribution because they have a large operations center in close

proximity to the DFW airport. Since it is so close, this would be best for our product because it

would reduce the high transportation costs.

 References

Nazarian, R. (2015, June 24). It might finally be time to use wireless charging: Qi adopts fast

charging capabilities. Retrieved November 15, 2015.

Smith, A. (2015, April 1). U.S. Smartphone Use in 2015. Retrieved November 18, 2015.