HTPI Phase II

Home SecurityIn-A-Box

April 8, 2008

Brad ForringerTravis HarknessMichael HermestonSachal LakhavaniJensen Matlock

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Agenda

Key Stakeholders

VOA

Scenarios

Insightful Quotes

Refine POG

Key Product Attributes

HomeSecurity

Home Security In-A-Box

Key Stakeholders

STRICTLY CONFIDENTIAL

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Renters, Mortgage Lenders, and Retailers Key to Success

Stakeholders(Most important stakeholders are highlighted)

Customers– Renters

– College Students– Young Professionals– Divorcees– Longer Term / Older Renters– Lower Income People

– Landlords– Banks– Real Estate Developers– Real Estate Agents– Foremen– Insurance Companies– Local Government

Consumers– Renters– Real Estate Agents (if property is

empty)– Banks (if property is empty)

Distribution Channels– Retailers

Supply Chain– Suppliers

Employees

Shareholders

Management Team of Honeywell– VP of Honeywell Home Security

Society at Large– Local Government– Law Enforcement

Key Stakeholders

Home Security In-A-Box

VOA

STRICTLY CONFIDENTIAL

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Differentiating factors focus positioning in target markets

EMOTION Low Medium High

adventureindependencesecuritysensualityconfidencepower

VOA

EMOTION Low Medium Highadventureindependencesecuritysensualityconfidencepower

Low Income Families VOA

Young Professionals VOA

Proposed Solution Current Status

Home Security In-A-Box

Scenarios

STRICTLY CONFIDENTIAL

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Terry – the young consultant in Cincinnati

Terry is an MBA student who is about to graduate. She will be moving to Cincinnati where he will work for a consulting firm. She is going to continue to rent once she moves and probably will be traveling a lot for business. She is unsure how long she will be working for the consulting firm and/or living in Cincinnati.

She will be living alone in an apartment building filled with mainly young professionals. The building has key entry and a security guard in the parking garage but nothing besides a chain in the individual apartments. Terry is tech savvy and self-reliant so she feels comfortable using new devices and systems. She feels relatively safe in his apartment but she knows that there have been break-ins in the past.

Scenario A

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Karen – the single mother in Philadelphia

Karen is a single mother of four living in South Philadelphia. She works two jobs to keep food on the table but there is little left for anything else. She does all of her shopping at big box stores like Walmart in order to save money. Her children and her live in a rented two bedroom house in a dodgy neighborhood, but it's the best that she can afford.

Her current security system is a baseball bat and an "intimidating" mutt named Sparkles. She wishes that she could provide a safer environment for her kids but the installed system route is too expensive and impractical because she doesn't own the house.

Scenario B

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Jim – the buyer at Target

Jim is a buyer at Target. He just graduated from Tuck and uses every possible excuse to slip this fact into conversation. He is in charge of the home security section at Target is looking to make a name for himself.

He is trying to find out of the box ideas that would bring some level of prestige to his actually meager section. A high level of Jim's compensation is tied to his section sales throughout the country so he keeps his ear to the ground for products that offer a new level innovation either in distribution and/or grouping.

Scenario C

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Joe – the mortgage banker in Las Vegas

Joe is a mortgage banker in Las Vegas and is highly stressed these days due to the current housing crunch. That crunch has resulted in a tremendous increase in mortgage defaults, which have led to foreclosures. As a result, Joe constantly worries about the properties, which are already losing value on a daily basis.

Currently, his only two options are to drive by the properties on his own or pay a service to do it, both of which are expensive and time consuming. He wishes there was a better way to safeguard the bank’s investment.

Scenario D

Home Security In-A-Box

Insightful Quotes

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Inside the stakeholders’ minds…

"From a landlord perspective, it would be nice to be able to use this technology to offer an inexpensive security solution as an option which tenants have to pay a premium for.  Additionally, since the security solution is portable less units would have to be purchased.“

"Securing unsold units can be an issue in lower income apartment buildings where there is no full time doorman.  An inexpensive security solution could be an answer to this issue, provided that there is no way to disable and steal the security solution itself.“

"If the idea is to move it, it should be easy to buy and install extra parts like if my new apartment has more windows or something."

"It would be great if someone could just tell me what I need given my apartment setup."

"Since we don't have many fancy possessions, we care most about personal safety."

"Is it like a fire alarm and is easy to use and it will really work or is it cheap like crappy Target furniture?"

“The customizable factor is very attractive.”

Quotes

Home Security In-A-Box

A Refined POG

STRICTLY CONFIDENTIAL

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Integrating the new learning

Currently, a combination of social and societal trends have led to a large population of Americans living in various rental properties for long periods of their lives. The current home security market fails to offer this nomadic population a comprehensive security system that would not only ease their security fears but also fit their lifestyle in ease of use and installation, customization, portability, and convenience of purchase, including a highly personalized consultation.

Two primary segments of renters (young professionals and lower income families) exist differing in 3 main ways: desired price point, purchase process and location, and product attributes such as service plan interest.  A system with these attributes would also be of demand in alternative situations such as foreclosed homes and construction sites.

Refined POG

Home Security In-A-Box

Key Product Attributes

STRICTLY CONFIDENTIAL

Essential Product Attributes

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Key Product Attributes

Convenient to purchase (find the product without looking such as kiosks or internet)

Customizable for any number of entrances and needs

Easy to install (does not require professional installation, sensor placement is intuitive, etc.)

Easy to setup (UI gives reassurance and allows testing)

Wireless sensors (no installation hassle)

Portability (easy to take down and take to next residence)

Extendable (easy to add more sensors and backwards compatible)

Connection to monitoring service options (wireless, wired, sound only, etc.)

Variety of pricing plans

Next Big Questions

Are all segments profitable?

What does the system cost?

What willingness to pay do different segments have?

Are there other countries besides the US where we could sell such a system?

Would people be confident to install the system themselves or would we have to warm them to the idea through marketing?

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Looking Ahead

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Discussion

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Applause