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Mobillite Mobillite Satellite phones Satellite phones Aron Butler Aron Butler Caitlin Allard Caitlin Allard Kristina Cole Kristina Cole Jill Buote Jill Buote John Gordon John Gordon

Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

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Page 1: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

MobilliteMobilliteSatellite phonesSatellite phones

Aron ButlerAron Butler

Caitlin AllardCaitlin Allard

Kristina ColeKristina Cole

Jill BuoteJill Buote

John GordonJohn Gordon

Page 2: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Why Choose Mobillite?Why Choose Mobillite? These phones provide communication in even the most secluded These phones provide communication in even the most secluded

areas of the planet, including oceans areas of the planet, including oceans (1)(1)

They are small, light, and durable. perfect for any type of business They are small, light, and durable. perfect for any type of business or leisurely travelor leisurely travel

Made with nalgene plastic (high-density polyethylene)Made with nalgene plastic (high-density polyethylene) which is which is stronger than other plastics and is environmentally friendly stronger than other plastics and is environmentally friendly (2)(2)

Uses LEO (low earth orbit) satellite technologyUses LEO (low earth orbit) satellite technology Provides worldwide wireless coverage with no gapsProvides worldwide wireless coverage with no gaps Orbit the earth at high speed, low altitude orbitsOrbit the earth at high speed, low altitude orbits Must fly complete orbits, further guaranteeing complete coverage over Must fly complete orbits, further guaranteeing complete coverage over

every area by at least one satellite at all times every area by at least one satellite at all times (3)(3)

Page 3: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

The Target MarketThe Target Market People whose jobs require travel and People whose jobs require travel and

unrestricted communication with the rest unrestricted communication with the rest of the world includingof the world including::

Professional/ scientific (researchers) Professional/ scientific (researchers) (A)(A)

Size of segment (6,125,13)Size of segment (6,125,13) Total average income (60,327)Total average income (60,327)

Financers/insurance companiesFinancers/insurance companies(B)(B)

Size of segment (5,575,813)Size of segment (5,575,813) Total average income (46,297)Total average income (46,297)

Agricultural management Agricultural management (C)(C)

Size of segment (1,729,992) Size of segment (1,729,992) Total average income (31,781)Total average income (31,781)

ForestersForesters(D)(D)

Size of segment (1,249,000)Size of segment (1,249,000) Total average income (26,146)Total average income (26,146)

MinersMiners(E)(E)

Size of segment (480,992)Size of segment (480,992) Total average income (51,207) Total average income (51,207) (4)(4)

A

B

C

D

E

Page 4: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Product DemandProduct Demand

In areas where there is a high risk for natural disasters (specifically In areas where there is a high risk for natural disasters (specifically hurricanes such as Katrina) there is a strong demand for satellite hurricanes such as Katrina) there is a strong demand for satellite phonesphones

In 2005 alone, one company alone sold over 1000 phones during In 2005 alone, one company alone sold over 1000 phones during the month of Septemberthe month of September This remained the same during the first half of the 2006 hurricane This remained the same during the first half of the 2006 hurricane

seasonseason 2007 is expected to be the same with purchases and activations of the 2007 is expected to be the same with purchases and activations of the

satellite phones satellite phones (5)(5)

Page 5: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

NAICS CodeNAICS Code

334220 334220 (6)(6)

Page 6: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Market Size and GrowthMarket Size and Growth In the last five years there has been a tremendous growth in the satellite In the last five years there has been a tremendous growth in the satellite

phone marketphone market 30% average sales growth each year for the past five years30% average sales growth each year for the past five years Demand for rental units have almost doubled every year for the same periodDemand for rental units have almost doubled every year for the same period Public awareness for satellite phones has increased due to terrorist attacks and Public awareness for satellite phones has increased due to terrorist attacks and

natural disastersnatural disasters There has been an increased interest by business and government agencies There has been an increased interest by business and government agencies (7)(7)

However, many leading satellite phone companies have suffered great dept However, many leading satellite phone companies have suffered great dept and bankruptcy due to lack of subscribers, even though there has been and bankruptcy due to lack of subscribers, even though there has been increased awareness people still are not purchasing satellite phones increased awareness people still are not purchasing satellite phones

Globalstar’s stock is down more than 90% from a year ago Globalstar’s stock is down more than 90% from a year ago (8)(8)

The estimated market size for 2002 was 42 million users, but the market The estimated market size for 2002 was 42 million users, but the market never reached that size, there is not much of a demand never reached that size, there is not much of a demand (9)(9)

Page 7: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Product Life CycleProduct Life Cycle Satellite phones have very low Satellite phones have very low

growth and profits due to the growth and profits due to the lack of interest in satellite lack of interest in satellite phonesphones

When satellite phones first When satellite phones first came out, the company lost came out, the company lost money rather than earn money money rather than earn money due to lack of public due to lack of public knowledge and needknowledge and need

Sales increase during Sales increase during hurricane seasons and times hurricane seasons and times of other natural disastersof other natural disasters

(10)

Page 8: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

CompetitorsCompetitors The main competitors for Mobillite are:The main competitors for Mobillite are:

InmarsatInmarsat GlobalstarGlobalstar Iridium Iridium (11)(11)

Mobillite is a better product!Mobillite is a better product! Cheaper to rent or buyCheaper to rent or buy

Dollar per minute calling feesDollar per minute calling fees Receiver of the call pays nothingReceiver of the call pays nothing

Made of a stronger plastic (more durable)Made of a stronger plastic (more durable) The smallest of all satellite phonesThe smallest of all satellite phones

attachable antenna attachable antenna Uses LEO satellite technology which is far more dependable than the Uses LEO satellite technology which is far more dependable than the

commonly used geostationary servicescommonly used geostationary services

Page 9: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Start Up CostsStart Up Costs

Mobillite could take out aMobillite could take out a $500,000 loan to start off with from a $500,000 loan to start off with from a federal bank which would cover the costs of:federal bank which would cover the costs of: Office equipment and supplies- $25,000Office equipment and supplies- $25,000 satellite equipment-$125,000satellite equipment-$125,000 rent for the building- $100,000rent for the building- $100,000 utilities and salary for workers-$ 200,000utilities and salary for workers-$ 200,000 advertisements- $50,000advertisements- $50,000

We could also raise capital by offering stocks and shares to the We could also raise capital by offering stocks and shares to the general publicgeneral public

Page 10: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Test Marketing PlanTest Marketing Plan In order to make Mobillite known to the public we intend to advertise on radio In order to make Mobillite known to the public we intend to advertise on radio

stations and billboards in major citiesstations and billboards in major cities

We will test Mobillite in Monterey, California.We will test Mobillite in Monterey, California. Not a major cityNot a major city May be subdued to earthquakes and forest fires.May be subdued to earthquakes and forest fires. Fairly wealthy city with people that could afford to use our phoneFairly wealthy city with people that could afford to use our phone

Page 11: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Reduce, Reuse, RecycleReduce, Reuse, Recycle

With toxic elements like lead and mercury found in each mobile unit, With toxic elements like lead and mercury found in each mobile unit, it is important to keep satellite phones out of landfills and it is important to keep satellite phones out of landfills and incinerators. incinerators. (12)(12)

There are a number of Charities that accept the donation of old There are a number of Charities that accept the donation of old mobile phones (including cell phones and satellite phones)mobile phones (including cell phones and satellite phones) Wireless Foundation’s cell phone recycling programsWireless Foundation’s cell phone recycling programs

Donate A Phone recycles phones to raise funds for a number of charitiesDonate A Phone recycles phones to raise funds for a number of charities Call to protect collects retired phones to give to victims of domestic violence Call to protect collects retired phones to give to victims of domestic violence

for use as a lifeline for use as a lifeline (13)(13)

If the user of a Mobillite satellite phone returns they old, used phone If the user of a Mobillite satellite phone returns they old, used phone to us at the end of use, the user will receive a check reward of $25to us at the end of use, the user will receive a check reward of $25

Page 12: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Channel TypeChannel Type Mobillite will use C1 (direct marketing) and C3 (producer to Mobillite will use C1 (direct marketing) and C3 (producer to

wholesaler to retailer to customer)wholesaler to retailer to customer) We will be using a merchant wholesaler who will store our satellite We will be using a merchant wholesaler who will store our satellite

phones for usphones for us Mobillite will be sold both online and in stores, so to avoid any pricing Mobillite will be sold both online and in stores, so to avoid any pricing

conflicts, Mobillite will be sold to the merchants at a discount price, who conflicts, Mobillite will be sold to the merchants at a discount price, who will sell to the retailers at a discount price. The online price will match will sell to the retailers at a discount price. The online price will match the prices of the phones in the storesthe prices of the phones in the stores

Mobillite will use selective market coverage, focusing on areas Mobillite will use selective market coverage, focusing on areas where there are high risks for natural disasterswhere there are high risks for natural disasters

Mobillite will not be franchisingMobillite will not be franchising

Page 13: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

LocationLocation Mobillite will be located in Monterey, CaliforniaMobillite will be located in Monterey, California

California has a population of 36,457,549 California has a population of 36,457,549 (14)(14)

Eighth wealthiest state, so most of the people should be able to afford Eighth wealthiest state, so most of the people should be able to afford our phoneour phone

High risk for natural disastersHigh risk for natural disasters

Page 14: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Inventory ManagementInventory Management The merchants will be warehousing Mobillite phones for usThe merchants will be warehousing Mobillite phones for us

Mobillite will increase production during the summer and winter to Mobillite will increase production during the summer and winter to prepare for hurricane seasons which generally happen in the fall prepare for hurricane seasons which generally happen in the fall and springand spring

Mobillite will use air as its method of transportation because it is Mobillite will use air as its method of transportation because it is quick and we want our product to be readily available to our quick and we want our product to be readily available to our customers in case of sudden natural disasters.customers in case of sudden natural disasters.

Air is the best method of transportation for small objectsAir is the best method of transportation for small objects

Page 15: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Projected Income Statement ProcessProjected Income Statement Process

Step A:Step A: # of units for the 1# of units for the 1stst year = 95,000 units year = 95,000 units

Step B:Step B: Labor = 45Labor = 45

Materials = 90Materials = 90

Benefits = 20Benefits = 20

TotalTotal = 155 units = 155 units

• Step C:Step C: L = 45 x 95,000 = 4,275,000L = 45 x 95,000 = 4,275,000

M = 90 x 95,000 = 8,550,000M = 90 x 95,000 = 8,550,000

B = 20 x 95,000 = 1,900,000B = 20 x 95,000 = 1,900,000

TotalTotal = 14,725,000 = 14,725,000

Page 16: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Process ContinuedProcess Continued Step D: Step D: OPERATING EXPENCESOPERATING EXPENCES

Administration = 95,000 x 5 = 475,000 Administration = 95,000 x 5 = 475,000 Lease/rent costs = 65,000Lease/rent costs = 65,000Insurance = 35,000Insurance = 35,000Total operating expensesTotal operating expenses = 575,000 = 575,000

• Step E:Step E: ATC = average total costATC = average total costATC = ATC = (total cost of goods sold + total operating (total cost of goods sold + total operating

expenses)expenses)expected # of units soldexpected # of units sold

(14,725,000 + 575,000)(14,725,000 + 575,000) = = 15,300,00015,300,000 = 161 = 161 95,000 95,00095,000 95,000

ATC = $161ATC = $161

Page 17: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Continued……….Continued………. Step F: Step F: Markup based on selling priceMarkup based on selling price

Selling price= Selling price= ATC per unitATC per unit 1- markup desired1- markup desired

$ 161 $ 161 = $ 460 per unit = $ 460 per unit 1 - .651 - .65

• Step G:Step G: Gross Profit = sales – cost of goods soldGross Profit = sales – cost of goods sold44,175,000 – 15,175,000 = 29,000,00044,175,000 – 15,175,000 = 29,000,000

Net income before taxes = gross profit – total operating Net income before taxes = gross profit – total operating expenses expenses

29,000,000 – 575,000 = 28,425,00029,000,000 – 575,000 = 28,425,000

Tax Amount = net income before taxes x taxes(40%)Tax Amount = net income before taxes x taxes(40%) 28,425,000 x .40 = 11,370,00028,425,000 x .40 = 11,370,000

Net income after taxes = before taxes – tax amountNet income after taxes = before taxes – tax amount28,425,000 – 11,370,000 = 17,055,00028,425,000 – 11,370,000 = 17,055,000

Page 18: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Breakeven PointsBreakeven Points

Breakeven point in unitsBreakeven point in units = total fixed costs/unit contribution margin = total fixed costs/unit contribution margin

contribution margincontribution margin = unit sales price – unit variable cost = unit sales price – unit variable cost

CM = 460 – 155 = 305CM = 460 – 155 = 305

BP = BP = 575,000 575,000 = 1,885 IN UNITS = 1,885 IN UNITS

305305

• Breakeven point in dollarsBreakeven point in dollars = breakeven x unit sales price = breakeven x unit sales price

BP = 1,885 x 460 = $867,100 IN DOLLARSBP = 1,885 x 460 = $867,100 IN DOLLARS

Page 19: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Mobollite Satellite PhonesMobollite Satellite PhonesProjected Income StatementProjected Income Statement

Years 2008 - 2012Years 2008 - 201210% Growth each year

Year 2008 2009 2010 2011 2012

Sales $44,175,000 48,592,500 53,451,750 58,796,925 64,676,618

Costs of goods sold:

Labor 4,725,000 5,197,500 5,717,250 6,288,975 6,917,873

Materials 8,550,000 9,405,000 10,345,500 11,380,050 12,518,055

Benefits 1,900,000 2,090,000 2,299,000 2,528,900 2,781,790

Total cost of goods sold 15,175,000 16,692,500 18,361,750 20,197,925 22,217,718

Gross profit 29,000,000 31,900,000 35,090,000 38,599,000 42,458,900

Operating expenses:

administration 475,000 475,000 475,000 475,000 475,000

lease/Rent costs 65,000 65,000 65,000 65,000 65,000

Insurance 35,000 35,000 35,000 35,000 35,000

Total operating expenses 575,000 575,000 575,000 575,000 575,000

Net income before taxes $28,425,000 31,325,000 34,515,000 38,024,000 41,883,900

Taxes 40% 40% 40% 40% 40%

Tax amount 11,370,000 12,530,000 13,806,000 15,209,600 15,209,600

Net income after taxes 17,055,000 18,795,000 20,709,000 22,814,400 26,674,300

Page 20: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Pricing StrategyPricing Strategy We will first use Reference pricing by looking at our competitors We will first use Reference pricing by looking at our competitors

prices in order to mark our cost down in hopes of attracting more prices in order to mark our cost down in hopes of attracting more costumerscostumers

Penetration will then be our main strategy by setting a lower price to Penetration will then be our main strategy by setting a lower price to attract buyers to our satellite phone company instead of our attract buyers to our satellite phone company instead of our competitorscompetitors

By setting a lower price we hope that our satellite phone will become By setting a lower price we hope that our satellite phone will become further globalized and create a higher demand, which we intend to further globalized and create a higher demand, which we intend to meet!meet!

Our price has been determined by mark up based on selling price, Our price has been determined by mark up based on selling price, which will leave our company with a good profitwhich will leave our company with a good profit

Selling price = Selling price = ATC Per unitATC Per unit $161$161 = $460 = $460 1 – Mark – up desired1 – Mark – up desired 1 - .651 - .65

• Selling Price = $460Selling Price = $460

Page 21: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

ConcernsConcerns

Our pricing strategies are not to raise any concerns other than that of Our pricing strategies are not to raise any concerns other than that of the reactions of our competitors, which may result with them trying to the reactions of our competitors, which may result with them trying to lower their price as well. lower their price as well.

However, other satellite phones cost about $200 more than ours and However, other satellite phones cost about $200 more than ours and will only create competition if other companies rethink and execute will only create competition if other companies rethink and execute new strategies.new strategies.

When and if this does occur our company will have plenty of warning When and if this does occur our company will have plenty of warning and time to rethink our strategy as well. Considering the fact that they and time to rethink our strategy as well. Considering the fact that they would have more steps to take than us because our satellite phone is would have more steps to take than us because our satellite phone is already unique and costs a lot lessalready unique and costs a lot less

Page 22: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Discounts & ShippingDiscounts & Shipping

Cash discounts and quantity discounts will not be an issue because Cash discounts and quantity discounts will not be an issue because our product is expected to be needed almost as soon as it is ordered, our product is expected to be needed almost as soon as it is ordered, and in small quantities. and in small quantities.

If we were to give a cash discount almost all buyers would meet the If we were to give a cash discount almost all buyers would meet the standards, plus we are also selling our product online, which must be standards, plus we are also selling our product online, which must be paid the minute its orderedpaid the minute its ordered

Our shipping prices will only have an effect on the buyer depending Our shipping prices will only have an effect on the buyer depending on their location in comparison to our shipping stations.on their location in comparison to our shipping stations.

We would like standard shipping to cost about $4.95, but if more than We would like standard shipping to cost about $4.95, but if more than 3 satellite phone are purchased for the same shipping location then 3 satellite phone are purchased for the same shipping location then shipping will be free. However, we do not expect this to occur often.shipping will be free. However, we do not expect this to occur often.

Page 23: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

• Objective:Objective: Through our campaign we aim to build strong relations among Through our campaign we aim to build strong relations among our costumers, the media, and communities creating awareness about our our costumers, the media, and communities creating awareness about our product and exactly what our product can and will provide, that being product and exactly what our product can and will provide, that being assistance to attain or feel relief.assistance to attain or feel relief.

• Channel:Channel: We will be using sponsorship to support NPR (National Public We will be using sponsorship to support NPR (National Public Radio), which is a non-profit internationally acclaimed producer and Radio), which is a non-profit internationally acclaimed producer and distributor of noncommercial news, talk, and entertainment programming. distributor of noncommercial news, talk, and entertainment programming. We will also sponsor KPBS and WJCT. We will also sponsor KPBS and WJCT.

• By sponsoring them we will receive a 10 second on air acknowledgement By sponsoring them we will receive a 10 second on air acknowledgement for our financial support during these programs. for our financial support during these programs.

• Sooooo, with this we are getting our message across while generating Sooooo, with this we are getting our message across while generating community goodwill.community goodwill.

Public Relations CampaignPublic Relations Campaign

Page 24: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Public Relations CampaignPublic Relations Campaign

Target:Target: We would like our campaign to target those who can benefit We would like our campaign to target those who can benefit and receive the most assistance from our product when and if and receive the most assistance from our product when and if needed. Meaning to say, that by distributing our product we would needed. Meaning to say, that by distributing our product we would like the consumers to be fully aware that we are providing a like the consumers to be fully aware that we are providing a “reliable” form of assistance for various situations as well as “reliable” form of assistance for various situations as well as location.location.

Our target audience will therefore include customers as well as the Our target audience will therefore include customers as well as the communities which are more apt to being surrounded by natural communities which are more apt to being surrounded by natural disasters, such as hurricanes, earthquakes, brush fires, etc. disasters, such as hurricanes, earthquakes, brush fires, etc. Customers will therefore be those who are part of these Customers will therefore be those who are part of these communities, or those who travel, taking on the environment by communities, or those who travel, taking on the environment by means of hiking, white water rafting, or anything else that may call means of hiking, white water rafting, or anything else that may call for immediate assistance.for immediate assistance.

Page 25: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Public Relations CampaignPublic Relations Campaign Our Message:Our Message: As a satellite phone provider we are trying to convey the As a satellite phone provider we are trying to convey the

message that our phone is a 100% reliable source for attaining assistance message that our phone is a 100% reliable source for attaining assistance or relief at any time and place, while still being light, compact, and or relief at any time and place, while still being light, compact, and convenient. convenient.

Our message will be released before and after the times of occurrence for Our message will be released before and after the times of occurrence for natural disasters based on location. For example, the months in which natural disasters based on location. For example, the months in which hurricane season occurs. Yet, our phone will still be available at anytime for hurricane season occurs. Yet, our phone will still be available at anytime for those who need it for reasons of comfort on trips or adventures.those who need it for reasons of comfort on trips or adventures.

Evaluating PR:Evaluating PR: In order to evaluate we would compare our sales in year 1 In order to evaluate we would compare our sales in year 1 to what we predicted for year 1, then from there make the proper to what we predicted for year 1, then from there make the proper adjustments needed. We would also monitor the internet to see how many adjustments needed. We would also monitor the internet to see how many users checked out the product and web site. This can help us discover why users checked out the product and web site. This can help us discover why possible consumers may have turned away. We could also check out other possible consumers may have turned away. We could also check out other satellite phone companies to see if their sales jumped at any point in time satellite phone companies to see if their sales jumped at any point in time when our product may not have been doing well. Yet, we only predict when our product may not have been doing well. Yet, we only predict success! success!

Page 26: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

AdvertisingAdvertising Advertising budgetAdvertising budget = (unit sales price x # of units for yr.1) x 5% = (unit sales price x # of units for yr.1) x 5%

($480 x 95,000) x .05 = $2,280,000mil($480 x 95,000) x .05 = $2,280,000mil

• Media forms:Media forms:

Radio- Radio- We will be using a few different radio stations, those being We will be using a few different radio stations, those being ( NPR, WERZ, KPBS, and, WJCT ). We feel that these stations will target a ( NPR, WERZ, KPBS, and, WJCT ). We feel that these stations will target a variety of generations and not just the youth of today. This radio advertisement variety of generations and not just the youth of today. This radio advertisement will consist of our general message and where you can find further info.will consist of our general message and where you can find further info.

Billboard- Our billboard will be eye catching and straight to the point, so Billboard- Our billboard will be eye catching and straight to the point, so it catches the eye when travelers are driving by. Anything to wordy wouldn’t make it catches the eye when travelers are driving by. Anything to wordy wouldn’t make an impact.an impact.

Page 27: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

BillboardBillboard

Provides the ability to communicate

any time, anywhere,with anyone,

under any circumstance.

For more information visit us at Mobillitephones.com or tune into NPR, 107.9, 89.5, OR 89.9

Page 28: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

SchedulingScheduling Radio adds will be launched morning, noon, and night during prime hoursRadio adds will be launched morning, noon, and night during prime hours

morning – 6-9ammorning – 6-9am

Afternoon – 11am–1pmAfternoon – 11am–1pm

Night – 4–7pmNight – 4–7pm

Our billboards and radio adds will be launched before and after disastrous Our billboards and radio adds will be launched before and after disastrous seasons.seasons.

These are the seasons:These are the seasons:

Southwest (brushfires)Southwest (brushfires) December– JuneDecember– June

Atlantic & Central Pacific (hurricanes)Atlantic & Central Pacific (hurricanes) June – November June – November

Page 29: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Cost of AdvertisingCost of Advertising

AudienceAudience Cost per ad/ Cost per ad/ add slotsadd slots

Cost per Cost per Thousand Thousand Households Households (CPM)(CPM)

NPRNPR

(Nation Public Radio (Nation Public Radio Sponsor)Sponsor)

40,000,00040,000,000 $650,000$650,000 $16.25$16.25

WERZ- 107.9FMWERZ- 107.9FM

(Portsmouth)(Portsmouth)

15,000,00015,000,000 $60,000 X 3$60,000 X 3

(three time slots)(three time slots)

= 180,000= 180,000

$12$12

KPBS- 89.5FMKPBS- 89.5FM

(San Diego Sponsor)(San Diego Sponsor)

21,000,00021,000,000 $300,000$300,000 $14.29$14.29

WJCT- 89.9FMWJCT- 89.9FM

(Jacksonville (Jacksonville sponsor)sponsor)

18,000,00018,000,000 $400,000$400,000 $22.22$22.22

BillboardsBillboards

(Fl, CA, NE area)(Fl, CA, NE area)

65,000,00065,000,000 $125,000 x 6$125,000 x 6

= 750,000 = 750,000

$11.54$11.54

Page 30: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

AdvertisingAdvertising

Theme:Theme: Our theme will consist of making it know that our product is fully Our theme will consist of making it know that our product is fully reliable and convenient in any situation or location providing assistance to reliable and convenient in any situation or location providing assistance to attain or feel relief.attain or feel relief.

Types of Advertising:Types of Advertising:

CompetitiveCompetitive- We will be competing with our characteristics, being - We will be competing with our characteristics, being that our satellite phone is smaller and compact.that our satellite phone is smaller and compact.

PioneerPioneer- Through pioneer we will be educating our consumers - Through pioneer we will be educating our consumers about our product because many are uneducated when it comes to satellite about our product because many are uneducated when it comes to satellite phones.phones.

Evaluation:Evaluation: We will evaluate by sending and taking a pole from our We will evaluate by sending and taking a pole from our costumers, but also by looking at our sales.costumers, but also by looking at our sales.

Page 31: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Sales ObjectiveSales Objective

Mobillite will have a trial period of 30 days to sample our Mobillite will have a trial period of 30 days to sample our product for FREE! If our phone is not purchased, the product for FREE! If our phone is not purchased, the consumer must return our phone with a required consumer must return our phone with a required questioner explaining why they didn’t want the phone.questioner explaining why they didn’t want the phone.

To ensure reliablity, we will take down all consumers credit To ensure reliablity, we will take down all consumers credit information to protect us from theft through this trial. If the phone information to protect us from theft through this trial. If the phone is not returned or bought after 30 days, we will charge their is not returned or bought after 30 days, we will charge their account, otherwise, this trial period is free of charge!account, otherwise, this trial period is free of charge!

Page 32: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Sales PromotionSales Promotion

In order to promote our phone, we will set up a demo in In order to promote our phone, we will set up a demo in the retailers we intend on selling our phone in, directing the retailers we intend on selling our phone in, directing specifically towards the consumerspecifically towards the consumer Circuit CityCircuit City Radio ShackRadio Shack Best BuyBest Buy Dicks Sporting goodsDicks Sporting goods

We will also use price reduction. If our phone is We will also use price reduction. If our phone is purchased during the trial period, the cost will be purchased during the trial period, the cost will be reduced from $460 to $400reduced from $460 to $400

Page 33: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Promotion SchedulingPromotion Scheduling

Since Mobillite production is increased during the Since Mobillite production is increased during the seasons before common natural disaster seasons seasons before common natural disaster seasons (summer and winter), our promotion will also take place (summer and winter), our promotion will also take place during this time since it is leading up to the most during this time since it is leading up to the most important and crucial time to have our satellite phoneimportant and crucial time to have our satellite phone

Page 34: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Promotion SurveyPromotion Survey

To tell how well our demos went, people will be offered a To tell how well our demos went, people will be offered a survey rating what they thought of our phonesurvey rating what they thought of our phone

We will also hand out cards with our website, monitor We will also hand out cards with our website, monitor how many people are accessing our websitehow many people are accessing our website

Page 35: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Key Points of MobillteKey Points of Mobillte

Strong and dependableStrong and dependable

No limit to serviceNo limit to service

Smaller and significantly cheaper than our competitors Smaller and significantly cheaper than our competitors phonesphones

Page 36: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Consumer ObjectionsConsumer Objections

Since many people don’t know a lot about satellite Since many people don’t know a lot about satellite phones, some concerns or complaints may be:phones, some concerns or complaints may be:

Consumers might feel that our phone is too large Consumers might feel that our phone is too large compared to the standard cell phone sizecompared to the standard cell phone size

Our phone does not offer extra features such as Our phone does not offer extra features such as cameras, music, and internet that cell phones offercameras, music, and internet that cell phones offer

Page 37: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Overcoming these objectionsOvercoming these objections

Our phone offers around the world service that Our phone offers around the world service that normal cell phones cannot provide without a normal cell phones cannot provide without a service feeservice fee

The point of our phone is not to use as a toy, its The point of our phone is not to use as a toy, its purpose is to be a reliable tool in reaching help purpose is to be a reliable tool in reaching help in case of natural disasters, car accidents in in case of natural disasters, car accidents in remote areas, and as an aid to workers who are remote areas, and as an aid to workers who are often placed in remote areasoften placed in remote areas MinersMiners Forestry/ agricultural workersForestry/ agricultural workers scientistsscientists

Page 38: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Type of CloseType of Close

Mobillite will use an urgency close, regarding the end of Mobillite will use an urgency close, regarding the end of our trial period. We will use our 30 day trial period and our trial period. We will use our 30 day trial period and the discounted price during this time as motive to buy the discounted price during this time as motive to buy our phone, because it wont last forever!our phone, because it wont last forever!

Page 39: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Follow Up ProceduresFollow Up Procedures In order to avoid post cognitive dissonance Mobillite will offer those In order to avoid post cognitive dissonance Mobillite will offer those

who purchase this product a charger, an extra battery, a water proof who purchase this product a charger, an extra battery, a water proof hard case, a portable antenna for use in a car, and a one year hard case, a portable antenna for use in a car, and a one year warranty, all for free!warranty, all for free!

We will also provide a Referral rewards program: if a consumer tells We will also provide a Referral rewards program: if a consumer tells a friend about Mobillite and they too purchase our product then both a friend about Mobillite and they too purchase our product then both will receive a free Mobillite giftwill receive a free Mobillite gift

Stock in the Mobillite company is also availableStock in the Mobillite company is also available If Mobillite is purchased during expected hurricane seasons, If Mobillite is purchased during expected hurricane seasons,

we will provide a free hurricane emergency kit we will provide a free hurricane emergency kit useful for any natural disasteruseful for any natural disaster

Page 40: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

Sales ForceSales Force

Product line will be the way we structure our sales force. Product line will be the way we structure our sales force. The salespeople of Mobillite will be fully knowledgeable The salespeople of Mobillite will be fully knowledgeable about our product, in order to provide help and answers about our product, in order to provide help and answers to the consumersto the consumers

Our sales force will be compensated and motivated by Our sales force will be compensated and motivated by salary commission. Our employees will have a set salary commission. Our employees will have a set salary, however, bonuses will be given based on how salary, however, bonuses will be given based on how many phones the salespeople are sellingmany phones the salespeople are selling Mobillite is a very pleasant environment filled with people who care Mobillite is a very pleasant environment filled with people who care

about our productabout our product Our hours are flexible depending on the employees personal situationOur hours are flexible depending on the employees personal situation Opportunities to advance in the workplace are available to those with Opportunities to advance in the workplace are available to those with

outstanding sales recordsoutstanding sales records

Page 41: Mobillite Satellite phones Aron Butler Caitlin Allard Kristina Cole Jill Buote John Gordon

ResourcesResources 1. Ezine Articles. (2007)1. Ezine Articles. (2007)

http://ezinearticles.com/?Satellite-Phone-Benefits-and-Information&id=382575http://ezinearticles.com/?Satellite-Phone-Benefits-and-Information&id=382575

2. Wikipedia. 2. Wikipedia. High density polyethyleneHigh density polyethylene. . Last updated 9 Oct. 2007Last updated 9 Oct. 2007

http://en.wikipedia.org/wiki/HDPEhttp://en.wikipedia.org/wiki/HDPE

3. Wikipedia. 3. Wikipedia. Satellite PhoneSatellite Phone. Last updated 9 Oct. 2007. Last updated 9 Oct. 2007

http://en.wikipedia.org/wiki/Satellite_phonehttp://en.wikipedia.org/wiki/Satellite_phone

4. U.S. Census Bureau. (2006) 4. U.S. Census Bureau. (2006) American Community Survey.American Community Survey.

http://prudence.franklinpierce.edu/exchweb/bin/redir.asp?URL=http://factfinder.census.gov/http://prudence.franklinpierce.edu/exchweb/bin/redir.asp?URL=http://factfinder.census.gov/servlet/STTable?_bm=y%26-geo_id=01000US%26-servlet/STTable?_bm=y%26-geo_id=01000US%26-qr_name=ACS_2006_EST_G00_S2404%26-ds_name=ACS_2006_EST_G00_%26-_lang=enqr_name=ACS_2006_EST_G00_S2404%26-ds_name=ACS_2006_EST_G00_%26-_lang=en%26-redoLog=false%26-CONTEXT=st%26-redoLog=false%26-CONTEXT=st

5. Global Com. 5. Global Com. Are You prepared for 2007?Are You prepared for 2007? (2006) (2006)

http://www.globalcomsatphone.com/globalcom/2007.htmlhttp://www.globalcomsatphone.com/globalcom/2007.html

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Resources (cont)Resources (cont)6. U.S. Census Bureau. Retrieved Sept. 17 20076. U.S. Census Bureau. Retrieved Sept. 17 2007

http://www.census.gov/cgi-bin/epcd/srchnaics07defshttp://www.census.gov/cgi-bin/epcd/srchnaics07defs

7. Global Com. 7. Global Com. The Future of satellite Phone Market Looks Bright.The Future of satellite Phone Market Looks Bright. Retrieved Oct. 9 2007 Retrieved Oct. 9 2007http://www.globalcomsatphone.com/articles/future.htmlhttp://www.globalcomsatphone.com/articles/future.html

8. Dow Jones & Company Inc. Retrieved 9 Oct. 20078. Dow Jones & Company Inc. Retrieved 9 Oct. 2007http://proquest.emi.comhttp://proquest.emi.com

9. New York Times. 9. New York Times. Planet Earth Calling Iridium; Can the Satellite Phone Service Achieve a SoftPlanet Earth Calling Iridium; Can the Satellite Phone Service Achieve a SoftLanding? Landing? Retrieved Oct. 9 2007Retrieved Oct. 9 2007

http://query.nytimes.com/gst/fullpage.html?http://query.nytimes.com/gst/fullpage.html?res=9C0DE1DD1E3AF934A3575AC0A96F958260&sec=&spon=&pagewanted=2res=9C0DE1DD1E3AF934A3575AC0A96F958260&sec=&spon=&pagewanted=2

10.10. Product Life Cycle. Retrieved Oct. 9 2007 Product Life Cycle. Retrieved Oct. 9 2007 http://images.google.com/imgres?imgurl=http://www.atkinson.yorku.ca/~lripley/zchtplc.jpg&imgrefurl=http://wwwhttp://images.google.com/imgres?imgurl=http://www.atkinson.yorku.ca/~lripley/zchtplc.jpg&imgrefurl=http://wwwatkinson.yorku.ca/~lripley/imUproduct.htm&h=325&w=500&sz=14&hl=en&start=7&um=1&tbnid=6eRAnmgzF1jatkinson.yorku.ca/~lripley/imUproduct.htm&h=325&w=500&sz=14&hl=en&start=7&um=1&tbnid=6eRAnmgzF1jEM:&tbnh=85&tbnw=130&prev=/images%3Fq%3Dproduct%2Blife%2Bcycle%26svnum%3D10%26um%3D1%EM:&tbnh=85&tbnw=130&prev=/images%3Fq%3Dproduct%2Blife%2Bcycle%26svnum%3D10%26um%3D1%6hl%3Den%26sa%3DN6hl%3Den%26sa%3DN

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Resources (cont)Resources (cont)11. Mackay. Retrieved 17 Sept. 200711. Mackay. Retrieved 17 Sept. 2007

http://www.mackaysatellite.com/http://www.mackaysatellite.com/

12. NBC Newschannel. 12. NBC Newschannel. The Environment and You.The Environment and You. Retrieved 17 Sept. 2007 Retrieved 17 Sept. 2007

http://www.kpvi.com/global/story.asp?s=6619867http://www.kpvi.com/global/story.asp?s=6619867

13. Technobabble. 13. Technobabble. Cell Phone Recycling Makes Good Cents. Retrieved 17 Sept. 2007http://www.lockergnome.com/nexus/technobabble/2005/01/26/cell-phone-recycling-makes-good-cents/

14. US Census Bureau. Retrieved 25 Oct. 2007

http://quickfacts.census.gov/qfd/states/06000.html