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Presented by Amit Jindal

Portland College

2018

Slide 1

Hello and Welcome to this project presentation.

Slide 2.

My Name is () and I will talk about our Product, “Track my Baby”. It is scary to know that

460,000 children are reported missing Every year in the United States. These cases happen often,

and the parents are left traumatized. This is because, once a child wonders off, there is no way to

know where they are unless you can call out to them and they listen, or they come back to where

the parents are. One of the most innovative solutions out there to find something is Tile tracker.

Tile, allows you to track small objects like car keys using your mobile phone. Using the same

technology, We came up with clothes that can be tracked by parents every now and then to know

where the child is at all times.

Slide 3:

The development of the product entails getting a very small but very reliable tracking device, and

having it sown into the child’s clothes. Once a parent buts the clothes, they can immediately

track them on the track My Baby mobile application, and so long as the child is wearing that

cloth/ clothes, they can keep tabs on where they are at all times. The tracker is waterproof and

tamper proof to children with a shelf life of over an year.


Slide 4:

Part of the Challenges we anticipate would be Getting Startup finances to pay for the Patent and

for production costs of the first 100,000 units.

Getting Reliable and Affordable Sources of Raw materials (in this case Clothes and trackers)

Convincing Major Retailers like Wal-Mart to stock and display our products.

Marketing Costs and the most effective Methods of marketing.

Slide 5:

The biggest Risks to a Startup business like this include:

- Our products being copied under different technologies even before the Patent comes out.

- Huge companies coming in with similar products but taking a Giant share of the market

either because they are a known brand, or due to their financial and marketing muscle

- Supplier bargaining power would affect the price of the product, and damage the business

approach of price differentiation.

- Buyer bargaining power, especially when there are cheaper products that work the same

way. This would mean lowering profit margins to try and meet the buyer and still

maintain operations.

- Bigger and New entrants could segment the market or even take over.

Slide 6:
Some of the costs expected include: Supplier costs: In China, baby clothes can be bought for

between $0.99 and $10.99 in large quantities. Tracking chips or devices can be bought for as low

as $0.5 to around $5 per piece. Since most of the assembly is done manually, every cloth can be

assembled with the device for as low as $0.5 per cloth. Marketing and Distribution costs even

though would later be based on revenues, could be averaged to range between $30,000 and

$50,000 in Miami Florida as the Pilot State for the products.

Slide 7:

Research and Development will later be based on Sales revenues, but as a start, it would cost

$50,000 for the first year. Patenting Fees will cost around $700 at established Patent offices, on

professional patent services. Rent and overhead costs would amount to 30,000 the first year, and

consultation on a few areas would need around $2000. As the business grows, these numbers

would increase as sales revenues stream in.

Slide 8:

This is a Summary of Expenses. It is good to Note that Supplier costs are the highest since this is

an assembly of two finished goods.

Slide 9:

To do a proper Intellectual Property Reservation, Proper documents need to be made describing

the product, how it works and all other relevant information. A patent application is launched

with the help of a Patent officer or advocate, and on completion, a provisional Patent Pending

document is issued, allowing the producer to start marketing and distributing their products

without fear of copyright infringement.


Slide 10:

The product Cost model is based on the production costs. Taking a 40% profit Margin of the Unit

Costs allows for the company to really have affordable products, and encorage clients to

purchase through registered and partner Retailing companies. The total cost of each unit is

averagely $7.12 and its selling price is only $9.96 to the Retailers. Incase of price control, the

product would only go to a maximum of $14.99.

Slide 11:

The product remains cheaper than normal children’s wear. The concept works with the tyranny of

Numbers, for the company. The more bulk products sold, the more revenues collected. Since this

is a percentage model, price fluctuates with decrease or increase of production costs. This

ensures a stable profit margin, and to some point, flexible in order to maintain price

differentiation. Another advantage is the innovation is very attractive to parents and at a good

cost. This would directly solve the problem of losing children by parents being aware of where

their children are at any point.

Slide 12:

In conclusion, having cheaper suppliers means having cheaper products and that is always

attractive to clients. By using effective and low cost marketing methods, one is able to really tap

into the market fast. The pricing model allows for a rather workable profit projection and

estimation and safeguards the company in case of price hikes. The model also maintains low

costs to the buyers and this ensures that the company always stays ahead in its price

differentiation strategy.