Read A Long: The Voice Recognition Projector
By: Kiersten Keating, Jared Brusco, Anthony Dolce, Mark Threlkeld
As parent have you ever had your kid ask you into bed you can tuck them but you were so tired from you long day at work to do it right away? Were you worried about if you gave your child an electronic device in the meantime, it would keep them up even longer?
Or as kid weren’t you scared of sleeping in the dark, worried about a monster under your bed or in you closet to get you?
Here a product to shine up your night.. The Read A Long: The Voice Recognition Projector
Sleeping Aid Market
SWOT
Strengths
Weaknesses
Opportunities
Threats
Strategies
Target Segments
Demographics
Psychographics
Geographics
Behavioral
Core Strategy
Read A Long: The Voice Recognition Projector
Our company will use the differentiation strategy because it suits our product the best. We are the only projector in the sleeping aid market to incorporate voice recognition technology to solve the unmet need of helping children get to sleep. Our brand wants to recognize this competitive advantage we have over our competitors in the sleeping aid market.
Positioning Strategy
The Read A Long Corporation Positioning Statement
“For busy mothers of young children who worry that their children will not get enough sleep, Read A Long: The Voice Recognition Projector is a projector with voice recognition technology that can help read your child to sleep. That’s because Read A Long is equipped with Alexa capabilities, so the projector can do multiple tasks such as reading to a child, the child telling the projector the names of the characters in the story, and the projector reading to the child in famous character’s voices.”
Product Strategy
What is Read A Long?
It is a regular sized projector that can be plugged into a wall. It to be large enough so the projection of the book should cover the whole ceiling for the family to read. The quality of our product would be high tech and work efficiently.
Packaging
Will show how our product works with the voice recognition technology on the box. We want to include photos of the product in use to show how happy it makes parents and children. There will be a close up image of Read A Long and the features that it has. The text on our packaging wouldn’t be small so it be easy to read. The size of the box will be the same.
Features
There will be the child safety lock and a timer. The child safety lock is when the parent flips the switch to limit the use of the projector overnight so parents would not be worried about our product keeping their child up at night. The timer on the product will turn off after the machine is not used for certain amount of time.
Pricing Strategy
Product | Read A Long | Childrens Book | Medicine | Sound Machines | Night Lights | Star projectors | Toys |
Price | $40 | $5-$10 | $5-$20 | $20-$30 | $10-$20 | $20-$30 | $10-$30 |
Since Read A Long would have to price our product higher than our substitution and rank our price a little higher than the rest of our competitors. We have technology that our competitors have never thought would be possible to have in the market, so our price would have to reflect our advantages over our competitors. Below, is the chart that was presented in the situation analysis.
Distribution Strategy
Read A Long will be located at:
Advertising Strategy
Eye Catching
Our product will be eye catching to capture the attention of kids who would then ask their parents to purchase our product. To catch the eyes of kids, our advertisements need to include bright colors and familiar characters.
Informative
Our product will be informative for parents who then look into our product when their kids ask for it. It needs to inform the parent about the functions of the projector in a short and easy way.
Creative Strategy
Generally Accepted Belief: It comes with a negative association that Read A Long is just another electronic device, so it will keep the child up anyway at night. Books do the same job as our product, so why would you have to go purchase a whole new product that simply does the same thing as a cheaper alternative.
The Major Selling Idea: Our product is unique in the perspective that we are the only product in the sleeping aid market that incorporates this technology.
Benefit: Read A Long relieves the stress of mothers of young children who feel that they do not have enough time in the day to do everything. They can purchase this product for their child to ease for their absense. The child has new and fun way going to sleep and reading books.
Reason to Believe: Our projector is equipped with an Alexa voice recognition system that will read your child to sleep as well as project the story on the ceiling for your child to read a long as well. It will be the new hot tech to have.
Our Mascot: Reed
Creative Strategy
Tone/Image: It will have a fun yet serious tone, since the responsibilities of mothers and children not getting sleep is not a laughing matter. This a brand new product never seen before in the market. It will be easy to used and operate. Also, having a talking projector to help save the day gives our brand a mascot and something that the kids can recognize and have a connection with.
Mandatories: Show the logo on the commercial. When they go and purchase our product, they will see the logo on the packaging or on our website and associate it with our commercial.
Key Insight: We will use a mascot for our advertisement because the product is actually for young kids. You will see the more factual information of the commercial and the functionality of the product where as the child would see a new friend. Our strategy helps satisfy the unmet need that is featured in the commercial that a busy mom is worried about her child not getting enough sleep for she is not there to tuck them in. We ensure that our projector would help get your child to sleep.
Rough Sales Forecast
| Even though $506 thousand is not a lot of money, it is expected that in our first year we would not make any profit. We have a lot of expenses to cover since we would have to account for the Alexa licenses for each unit we make. We would need to pay back investors, the license, marketing expenses since most of our budget would be getting our name out in the market, and the functional costs to actually build our projector. These would be the best case scenario of our sales and we may earn a lot less than what we stated, however, the first year is a lot of trial and error and see where we can adjust our strategy for the ongoing year. By the second or third year of our product, we want to strive to have a concrete marketing plan to get not only the most revenue as possible, but to have a concrete loyal customer base and a good brand reputation. | |
Rough Sales Forecast
Sales Potential | In a perfect world if we got one Read A Long to each mother and grandmother in our market our sales potential would be:
|
Rough 1 year sales forecast |
33,600,000 x .0002%= 6,720 x $40= $268,800 2 / 3. Since our product would only need one initial purchase per household, there would not be a need for any repeat purchases unless a person needs to buy another one for a different child in a separate room. If that is the case we would estimate:
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Rough sales forecast total | $228,000 + $268,800 + $4,560 + $5,376= $506,736 |
Marketing Budget
Marketing Budget Category | Dollars | % of Total Budget |
Advertising-Traditional media | $10,000 | 10% |
Advertising- Digital | $20,000 | 20% |
Social Media | $20,000 | 20% |
Consumer Promotion | $10,000 | 10% |
Trade Promotion | $10,000 | 10% |
Public Relations | $10,000 | 10% |
Marketing Research | $15,000 | 15% |
Total Marketing Budget | $100,000 | 100% |
Revenue and Profit Forecast
| Dollars | % of Gross Sales | Comments |
Gross Sales Revenue | $506,736 | 100% | |
| $10,000 | 1.97% | 506,736/10,000 |
=Net Sales | $496,736 | 98.03% | |
| $234,000 | 46.18% | If we make about 13,000 models for the first year and multiply it by the $10 for the Alexa license and per unit to build is about $8 to make 13,000x 18 (10 +8)= 234,000 |
=Gross Margin | $262,736 | 51.85% | 234,000/506,736= 46.18 98.03-46.18=51.85 |
| $100,000 | 19.73% | 100,000/506,736=19.73 |
= Contribution Margin | $162,736 | 32.12% | 51.85-19.73=32.12 |
| $200,000 | 39.47% | Salaries, Insurance, Interest Expense, Utilities, Taxes, Depreciation of equipment, Rent of headquarters, Payment of loans |
Profit (Loss) | $-37,264 | -7.35% | 200,000/506,736=39.47 32.12-39.47=-7.35 |
Consumer Promotion
Completion Promotion
For the first 10 books a consumer reads through our device they will then get an exclusive book that is only available with the projector.
Reading List
For the long term one is that we will have reading lists where if you finish the reading list, you will unlock a book of the month.
Subscribed to Newsletter
Our customer will subscribed to our newsletter. When they sign up, they will tell us on it their child’s birthday. The month of the birthday, there can be an exclusive coupon to get a free book of their choice from our library.
Trade Promotion
Displays
Our company will be having displays set up for our product in the retailers we sell through such as Best Buy.
% OFF
Our company will be offering deals on books. For example if you by one you can get a % off another one.
Token
Each customer will be able to get a stamp chart with the projector. After a certain amount of stamps you get by buying a new book with us you will receive a virtual token and a personalized email saying where to go it will let you get a book for free.
Public Relations
The Read A Long Corporation will stay close with the public by:
Email Campaign
Target Audience: Mothers (Ages 30-50)
Purpose: Brand building/introduction into our target audience, getting across the unmet need and worries that consumers may have
Email Campaign pt. 2
Target Audience: Mothers (Ages 30-50) and Grandmothers (65-80)
Purpose: Discount and rely our core values and beliefs to our target consumer saying that we are here for you during this uncertain time.
Schedule
Thank You For Listening
Does anyone have any questions?