MARKETING PLAN

Presenters Pete Rooke Renee Lin

Jacky Chen Marshall RX

Joe’s Experience10:00 : Joe takes out his note and turn on his digital recorder.10:25 : Joe misses an important example when he tries to write down everything professor says.19:00 : Joe lies down on the couch and turn on his 32” HDTV, leaving his note in the bookcase.2 months later, mid-term is coming…10:00 : Joe goes through his notes and find many unclear points.10:20 : Joe plays his recording files and tries to find out what did the professor say.10:40 : After 20 minutes, he finally gets the example Dr. P said.11:30 : Joe sees a term “SMST” and does not know what it is. He recalls that Dr. P said few weeks ago. He flips around his notes to get the explanation.11:40 : Joe finds the note after 10 minutes.11:55 : He finds he missed a class and needs to borrow notes from Luke.12:30 : He gets the notes from Luke and heads to FedEx Kinko to get a copy.

Pain PointsJoe feels that his learning experience would be more

productive if there is a tool to a) share notes easily on the web. b) search through the notes. c) remind him of what was talked about in the class.

d) link the audio recorded in the class to the notes.

His Options are …..

Digital Pen ( EPOS, Anoto )Handwriting Recognition S/W with EPOS, Anoto

Digital Voice Recorder (Sony, Olymbus, Panasonic)

??????????

Introducing….

The Pulse Smartpen is a computer embedded in a pen that captures handwriting and simultaneously records audio, synchronizing it to the writing. This is particularly useful in taking notes during a class or conference. The Pulse Smartpen comes in two versions: the 1GB model with 100 hours of audio storage and 16000 pages of digital notes, the 2 GB model doubles the storage .

Giving Voice to your Notes

Who is our Customer

Professional Non ProfessionalStudents

Need: Increase GPAMarket Size: 11 MillionFit of the Product: PerfectBenefits: Increase productivity, Saves timeFinancially Viable: Yes

Need: Incorporate all detailsMarket Size: 52 MillionFit of the Product: PartiallyBenefits: Capture all details in a meetingFinancially Viable: Yes

Source : http://www.census.gov/population/www/socdemo/school/cps2007.html

Need: Fill ApplicationsMarket Size: 94 MillionFit of the Product: Poor Benefits: Electronic Application

Value Stack

StudiousStudent

vv YShare Notes

Linking Audio with

notes

Save time for

networking

Good Grades and

Job

StudiousStudent

Share Notes

Searching Audio

Cannot locate the

required clip

No time for Networking. Grades are

average and lands in an average Job

Y

Student with a pen and a Digital Voice Recorder

Student with a Pulse Smartpen

Commercial BreakStay Tuned

….

Positioning Livescribe

Audi

o Re

cord

ing

Non Digitized Note taking

No

Audi

o Re

cord

ing

Digitized Note taking

Audi

o Re

cord

ing

Non Digitized Note taking

No

Audi

o Re

cord

ing

Digitized Note taking

Link

aud

io w

ith n

otes

Marketing MixPr

oduc

tPr

ice

Place

Saves TimeNever Miss a wordIncrease Productivity

FacebookLiveScribe Technical blogBook Stores

Sony Digital $64.95

Smartpen $149.95

IOGear Digital Pen $70.73

Promotion

Financials

Average percentage of Study conscious Students

--9108*0.6+1790*0.35=4,262,000

Average percentage of family income over $75,000 --> 3188*0.6+1074*0.85=2,826

Average percentage of students willing to spend on productive electronics -->2826*10%=282,600

56,520

35% 60%

60% 85%

10%

Market Potential 2%

2009 2010 2011 2012Market potential 56520 59346 62313.3 65428.965Revenues from Smartpen $ 8,757,774.00 $ 9,195,662.70 $ 9,655,445.84 $ 10,138,218.13 Revenues from notebooks $ 22,551.48 $ 23,679.05 $ 496,016.98 $ 10,390,315.77 Revenues from Cartridge $ 11,275.74 $ 11,839.53 $ 248,008.49 $ 5,195,157.88 Total Revenues $ 8,791,601.22 $ 9,231,181.28 $ 10,399,471.32 $ 25,723,691.78 COGS pen($100) $ 5,652,000.00 $ 5,934,600.00 $ 6,231,330.00 $ 6,542,896.50 notebooks( $10) $ 565,200.00 $ 593,460.00 $ 623,133.00 $ 654,289.65 cartridge($3) $ 169,560.00 $ 178,038.00 $ 186,939.90 $ 196,286.90

Gross $ 2,404,841.22 $ 2,525,083.28 $ 3,358,068.41 $ 18,330,218.73 SGA $ 1,758,320.24 $ 1,846,236.26 $ 2,079,894.26 $ 5,144,738.35 License $ 833,333.33 $ 833,333.33 $ 833,333.33 Royalty $ 175,832.02 $ 184,623.63 $ 207,989.43 $ 514,473.84

Net Income $ -362,644.38 $ -339,109.93 $ 236,851.39 $ 12,671,006.54

Livescribe will breakeven in 2011

Facts and Assumptions

Smartpen(1GB) $ 149.95

Smartpen(2GB) $ 199.95

Notebook $ 19.95 Cartridge $ 5.95

% of Total Sales for 1GB Smartpen 90%

% of Total Sales for 2GB Smartpen 10%

Growth rate for Market potential 5%

SGA 20% of sales

License to be paid to Anoto $ 2.5milliom

Royalty paid to Anoto 2% of sales

• Enter to win a $1,500 scholarship & a Pulse Smartpen• See success stories• Checkout how the pen has helped students

What is Livescribe ?

Tell your story and Win $1,500

Tell your Success Story with the Smartpen

Your testimony could win you a $1,500 Scholarship

Other Suggestions1) The price point may intimidate some college students on tight

budgets. Livescribe must position their pen as a necessity (same as textbooks/course packs/tuition/housing) so that the parents will be willing to fit the bill. Target the ad’s at students and encourage them to use these to show their parents how necessary it is for them to get a Smartpen.

2) Increase the visibility by making it available in more retail outlets

Thank You