a division of acco brands evap™ launch deck evap james marshall
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A DIVISION OF ACCO BRANDS
EVAP™ Launch Deck
EVAP
James Marshall
2 Confidential
Contents
Executive Summary Market Need - Pain Point Introducing EVAP Alternatives to EVAP Pain Point Solved Technology Inside Competitive Analysis Channel Strategy Channel Map Pricing Strategy Customer Value Proposition {Telco, Insurance & Mass} Channel Pricing & Availability Channel Marketing Options Marketing Calendar Marketing Assets Messaging & Packaging
Executive Summary
4 Confidential
Executive Summary
Current business situationFY13 Launch Date 2-1/2 Q1- 2012 1H’13 Insurance Partnerships, T-2 Telco & BuyCell Placement, Distribution, Sell-in, Launch, Awareness,
Category External DriversRapid Smartphone Adoption
Category PillarsMobile Phone Insurance Company Partnerships, (SquareTrade , Protect Cell, LSG, Assurian) Placement + Distribution at Independent Telco’s then T-1 and T-2 Telco’s
Category RoadmapCY13 EVAP: 2 NPD, 0 EOLCY13 EVAP Bulk Pack Shipper for bulk Purchase/s.
Business Outlook FY2013 ($?, 50% GM)Penetrate Consumer market = Independent Telco (US/EU), T1 and T-2 Telco, T1-Retail (US/EU/CA), E-tail, Global Expansion.
Partner with Third Party Mobile Insurance providers (SquareTrade, GWC, Protect Cell, (LSG EU Based) to achieve 1=1 Attach Rate.
Market Need – Pain Point
5Billion Smartphone users in the world, circa
2015
81
of Smartphone users never turn off their devices
.{According to recent study by LifestylesGroup in the UK}
percent
OneBillion of us are connected Like never before
f
f
f
f
f
ff
f
f
f
f
fv
ff
f
f
f
{2out
of3}
People will get their handsets wet
Study conducted by MSNBC
happen around the home
{According to www.Squaretrade.com}
5 out of 10 Smartphone Accidents
60 %Mobile Insurance Claims are due
to water damage.
Gartner Data
700Costof replacinga smartphone
Dollars
13 Confidential
5 billionSmartphone users in the world by 2015
81% of Smartphone owners never turn off their devices
1billion facebook users
2/3 of Smartphone users will get their devices wet
60 % of mobile insurance claims are based on water damage
5out of10 Smartphone Accidents happen at home
700 Dollars cost to replace a smartphone.
We have a lot of smartphones, we
are always connected, we have a habit of getting
them wet, and, they cost a lot of money
to replace!
1. Buy a new or used handset $250 - $7002. Repair it $2503. Go prepaid $1004. Take out a new contract >$2505. Reuse an old phone ;-(
OR…
So what are people doing about it?
Introducing EVAP
17 Confidential
18 Confidential
Evap rescues your wet electronics before its too late.
Usual Dry time 6-24 hours
10x Faster than Rice or other at-home-remedies.
Increases your chances of successful recovery up to 700 times.
Single Use Disposable Aluminumized/Mylar Pouch
Neatly packed with 3 vacuum sealed healing kits stuffed with 20 Grams of Molecular Sieve each.
Pain Point Solved
19 Confidential
K39723EVAP : Bag + 2 Tyvek wrapped Pouches containing 30 grams of Molecular Sieve APG
Value
Rescue your wet electronics before its too late! Once your item has been sealed in the EVAP bag, simply wait until the humidity indicator signals , I’m ready!
Features
Aluminized Mylar Bag – Allows the least amount of moisture.
In as little as 3 hours and No longer than 2 days (depending on how soaked your device was) it will come out of the bag EVAP’D.
2 - Vacuum Sealed Tyvek Pouches containing 30 Grams of Molecular Sieve – APG Grade 13X (High Grade)
Available Jan ’13
NEW!EVAP
Technology Inside
21 Confidential
Adsorbent Ranking
Molecular Sieve
Molecular Sieve
Silica
Mono-Clay
Rice
think bath t0wel metaphor
2nd
3rd
4th
5th
APGGrade
1st
22 Confidential
Competitive Analysis
24 Confidential
Adsorbents Comparison Chart Retail
Packaging
Name EVAP BheestieBag Idea Village Dry-AllSave-A-Phone
Rice
SRP $ $19.99 $19.99 $6.99 $11..97 22.99(EU) $ 3.00
Technology Molecular Sieve 13x APG Grade {Highest
Grade Available}
Molecular Sieve 13X {Standard
Grade}Silica Gel
Molecular Sieve 13x {Standard Grade}
Molecular Sieve 13x {Standard
Grade} Rice
Humidity Indicator Yes No No No Yes No
Desiccant Pouch
Material
Vacuum SealedTyvek
PolyBag with Dotted
Holes
Hard PP Disk/ Plastic
TubNon-Woven Non-Woven None
Amount of Desiccant
60 Grams / 2
28 Grams /1
35 Grams /1
20 Grams / 1 50 Grams /
2 8 ounces
Dry Time 6 - 24 hours 24-72 hours 24 Hours 48 hours Usually 24-72
hours 1 -5 days
Bead Size OD = 3 - 5 mm OD = 3-5 MM OD = 2-3 mm OD = 3-5 mm OD = 3-5 mm
10mm
Compelling Weakness
Not on the shelf until
Q1.
Only 28 grams of Dessicant
2nd rate adsorbant material
Beads are loose …
dirty
UK only Ineffective
Channel Strategy
26 Confidential
Q1 ‘13 Launch EVAP and seek placement within Tier – 2 Telco & Independent Wireless Dealers while simultaneously establishing partnerships with Third Party Wireless Insurance Providers.
This strategy will greatly enable the chances of EVAP becoming Category leader for wet electronic rescue kits.
Press Announcement – CES Jan. 18, 2013
General Availability - February 1, 2013
Parallel Paths of Success
How many headsetsWhere Next essential
Channel Map
28 Confidential
Channel RoadMapPriority’s Listed w/ respect to strategic
importance
(Q1, 2013)Phase 1
(Q2, 2013)Phase 2
(Q3, 2013)Phase 3
(Q4, 2012)
Phase 4
(Q1, 2014)Phase
5 Priority 1a. (Focus)
Priority 1a. (EVAP+ Kensington)
Telco Tier-2 {Independent Wireless Distributors}Tier 2 & Tier 3BuySell Co-Op
Mobile Insurance Partnerships{SquareTrade, LSG, Protect Cell, Assurian}
Tier -1 Telco (Corporate) At&T, Verizon, Sprint & TMobile
Mass Retail Tier -1 TargetApple Grocerie OutletsCVS/Walgreens RadioShack711Walmart
Continued Mass Deployment.
Geo Expansion
Priority 2 (Focus) Tier Distributors Airport convenianceFiJi H20 Model
Priority 3 (Focus) Leslie’s Pool Supply West Marine
Priority 4 (Focus) Independent Telco Tier-1 (Authorized Verizon Retailers)
Verticals
Pricing Strategy
30 Confidential 30
Pricing Strategy
Kensington are committed to creating this category, Zagg is our role model.
Kensington are committed to making this a highly profitable category for channel partners
Consumer focus groups have given us a price positioning range of $19.99 to $29.99 for EVAP (source EVAP)
Kensington are committed to delivering a strong Psychological ‘Value’ proposition for strategic insurance partners, $19.99 delivers that for them.
Customer Value Proposition{Telco, Insurance & Mass}
32 Confidential
Combine all 3 value prop slides into one simple chart
33 Confidential
Value Prop : Insurance
Compelling for Kensington1. 1-1 Hardware/Accessory attachment at P.O.S.
2. Distribution
3. Brand Recognition
Compelling for Insurance Providers
4. Want EVAP because it solves the pain point of customer claims for damaged phones of which 60% are due to water damage
5. Drive Demand and interest for their product or bundle.
6. Bundled as part of customer reward or follow-up program
7. Instant $20.00 value add on that Insurance companies use to incentivize their customers to renew service or lure new customers
34 Confidential
Value Prop : T-2 Telco & Co-ops
Compelling for Kensington 1. Using the install base of Buy-Sell Co-Op to secure the next level of placement, volume, while uncovering
new revenue streams and brand awareness amongst Tier – 2 Telco.
2. Gain traction for phase 2, Tier-1 Telco launch.
A)Leveraging the Tier-2 Telco and wireless BuySell Co-Op experiences to move up to the next install
base in our “stepped strategy” penetrating Tier-1 Telco.
B) By working with Tier 2 Telco to provide the highest level of customer service and high-end wireless
accessories.
Compelling for T-2 Telco & Co-ops3. Adds value to the in-store customer experience and overall level of customer service.
4. Gets their customers back online cheaper and easier than ever before.
5. Customer data interruption is minimal and inexpensive compared to todays alternatives
6. Increased profits & margins
7. Backed 100% by a trusted brand and valued partner in Kensington.
8. Pure profit, EVAP does not replace the sale of any other P.O.P accessory sales.
9. Best Electronic Rescue Kit available today.
10.Reduce ARPU (Average Return Per Unit Sold)
1. EVAP is a product that yields very low returns due to its nature.
35 Confidential
Value Prop : Mass
Compelling for Kensington
1. Phase 3 of “stepped strategy” where volume, brand value & brand recognition have been validated through the earlier phases of the strategy where the customer bases were incrementally smaller.
2. Using this “step strategy” to conquer our next phase, Global Expansion.
Compelling for Mass
2. Consumers demand Hot ticket items. Thus Category Captains are highly coveted by mass-retailers.
3. Margin % increase. Not selling the wrong product, just the wrong brand. At $ 20.00 I can guarantee a 60% margin increase.
Channel Pricing & Availability
37 Confidential 37
Channel Pricing & Availability
MSRP $19.99
KOB 1 $ Channel Margin = 50%
KOB 2 $ Channel Margin = 40%
Estimated GA 1st February
Channel Marketing Options
39 Confidential
Channel Marketing OptionsEffective ways to reach out
Wireless Dealer Magazine Advertisements – Print, Web, E-mail.
Print Advertising • Placement between pages 2-50• 2 Page-Ad Spread • 5 Email Marketing Campaigns• Prints priced from $850.00 for basic and scale up to 25 K for Cover Story.
Eblast Marketing Services • In between print Adds, the email blasts touches 45,000 independent wireless dealers
• Eblasts priced to range from – 5 /$ 1,300.00 and scaling up to 25/$ 3,000.00.
RSE – Retail Search Engine Advertisers can post company profiles and products inside the RSE, used by cellular, electronics and audio retailers to locate products and vendors.
Marketing Calendar
41 Confidential
Marketing Calendar : Conventions and EXPO’sCHANNEL
2013 Dates
2014 Dates
EVENT Event Site Location
Who & What will be there?
Everything & Anyone Wireless
MAY 21-23TBD Q2, 2014
International WIRELESS CTIA 2013
Sands EXPO & Convention Center
Las Vegas, Nevada
• 45,000+ • Service providers• Manufacturers• Developers• Retailers,• Enterprise end-users • The Media
PrePaid Wireless Dealers and Vendors
August 6-8Aug 12-14, 2014
The Prepaid Press Expo Paris Hotel
Las Vegas, Nevada
The PrePaid Press Expo is proud to offer the most informative and affordable conference program for prepaid services.
Independent Wireless Retail Owners, Managers and Resellers
October 13-15
TBD Oct, 2014
Wireless Dealer EXPO
Sands EXPO & Convention Center
Las Vegas, Nevada
• Independent Wireless Retail Owners• Product Buyers• Wireless Wholesalers• Hard Card Distributors• Retail Managers• Employees Dealers• Pay As You GO• MNVO's and Data.• Products and service companies
with incentives for reseller. • Wholesale Manufacturers, Carriers, • OEM's • Content Providers.
Enterprise I.T. Professionals
October 9-11
TBD Oct, 2014 MobileCon
San Diego Convention Center
San Diego, California
The MobileCON event - a mobile IT and Enterprise event designed specifically for the IT executive and professional. This user conference meets tradeshow is a one-stop shop
42 Confidential
Marketing Calendar : Events 2013
Channel 2013 Dates
EVENT Event Site LocationWho & What will be there?
Pre- CES - Attend the Independent Wireless Reseller Convention
Jan, 17 2013
Indepemndent Wireless Reseller Show
Monte Carlo Hotel and Casino
Las Vegas, Nevada
The 25 conglomerate owners for the BuyCell Co – op.
PrePaid Wireless Dealer Visits with detail team.
TBD
Enriching the consumer shopping experience
Aurthorized Verizon Resellers
TBD Sales Detail Team, Retail Sales team and the consumers.
Full promotion and Advertisement campaign in July,(Highest month of water damage)
October 9-11 MobileCon
San Diego Convention Center
San Diego, California
The MobileCON event - a mobile IT and Enterprise event designed specifically for the IT executive and professional. This user conference meets tradeshow is a one-stop shop
Marketing Assets
44 Confidential
4 Sided Spinner • Pre-loaded w/ iPhone 5 cases, S3 cases, Proximo and EVAP.
• Designed with Independent Telco’s in mind. The 4 sided spinner brings much more than versatility.
• Minimal footprint, will not impede where floor space can be extremly limited. Rotation adds to its versatility as it can be placed anywhere on a T-2 Telco sales floor while remaining in view, and accessible in corners, against walls or just in the middle.
Product Highlight Quick Fact Cards• For all T-2 Telco Sales Reps, who might have a tough time keeping products and their
features in order or even mentioned.
• Promote the Kensington Brand and individual product while empowering the sales rep to share the solutions offered by a particular Kensington product. The card also promotes higher conversion of sales when the product details are shared how intended.
Trio Sales Brochure • Spotlighting EVAP while highlighting the Value-Adds it present to all Partnered Wireless
Insurance Providing…Facts, Features, EVAP specific Benefits, How To’s, and plenty of high quality product and lifestyle Imagery
Marketing AssetsIndependent Telco & Insurance
Messaging & Packaging
46 Confidential 46
How it works:
Unzip vacuum sealed EVAP Bag
Place Electronics inside EVAP Bag with all 3 Tyvek “Rescue Pouches” inside.
Re-seal the bag vis-à-vis the zip.
For best results allow 6-24 hours
For soaked items allow up to 48 hours.
700% more effective than rice at removing water.
Also great for preventing damage in areas of high humidity or close coastal proximity.
47 Confidential 47
Self-contained display shipper
• Pre-display quantity - {PDQ} = 8 Per
• Universal hang tab will accommodate EU and US Markets.
• QR Code on Shipper Header
• Its configured to stand alone, on a shelf or hang from peg.
• 3 in 1. ½ the size @ 8 to 1 ratio with 60% Margin.
Thank You
Financial Analysis
49 Confidential
Third Party Wireless
Insurance Providers
Why they need it?The problem with the latest and greatest smartphones is that
along with their bright screens and spectacular features comes a hefty retail price tag that averages $ 700
AsurianProvides 90% of wireless carrier
insurance
Verizon
At&t
Wireless CarrierInsurance
Sprint
T-Mobile
Safewear
GoCare
Squaretrade
WorthAveGroup
Ensquared
LSG Lifestyles Group UK
ProtectCell
Global Warranty
Consumer
Channel Map : Wireless Insurance Providers
ProtectYouBubble
{Assurant INC}
50 Confidential
Stratagy for leverage:Develop geographic market closest to home, eventually expanding as we develop experience.
Strengths • Customer Service• # of locations
Weaknesses• Employee morale issues.• Communication/language issues between headquarters and Taiwan.• Version control issues among Caribou and MEDUSA product lines.
Opportunities• Expansion • Brand Value• More Efficient Supply Chain • Margin increases
Threats Internal : Ability to attract and retain qualified employees, Access to capital, and full-fledged product road maps External : Competition & Pricing
Channel Map : Tier-2 Telco Wireless Resellers
Tier-2 Telco consists of these wireless channels. Tier – 1 Distributors {National} Tier – 2 Distributors {National & Regional Wireless Retailers or Distributors} Tier - 3 Distributors {Small independent Regional & Local Retailers BuyCell Co-Op {Group of organized independent Verizon Wireless resellers}
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