Case based presentationCase based presentationonon

The Winslow Clock The Winslow Clock CompanyCompany

Presented by:Presented by: Ritika JindalRitika Jindal

Daljeet kaur JohalDaljeet kaur Johal Nirlep KaurNirlep Kaur

RamanRaman KhushbooKhushboo

Overview of the caseOverview of the case

The case is about the “ WINSLOW The case is about the “ WINSLOW CLOCK COMPANY.”CLOCK COMPANY.”

An idea to make a “THROWABLE” An idea to make a “THROWABLE” alarm clock.alarm clock.

The idea is given by Dr. Michael The idea is given by Dr. Michael Winslow, a psychiatrist by profession.Winslow, a psychiatrist by profession.

To make his idea successful Dr. To make his idea successful Dr. Winslow has worked upon it and has Winslow has worked upon it and has made a business plan.made a business plan.

Industry InformationIndustry Information

Clock market in the U.S has been Clock market in the U.S has been growing at a rate between 8 & 10%.growing at a rate between 8 & 10%.

Wireless clocks has lead -25% annual Wireless clocks has lead -25% annual growthgrowth

Alarm clocks has led-29% annual Alarm clocks has led-29% annual growthgrowth

These clocks are sold through -These clocks are sold through - a variety of retail outlets a variety of retail outlets catalog sales catalog sales

Product DescriptionProduct Description

Quartz alarm clock consists of two Quartz alarm clock consists of two basic parts-basic parts-

1.1. Lightweight black foam ball-4 Lightweight black foam ball-4 inches in diameter which inches in diameter which contains……contains……

-“brains” of the clock - microchip-“brains” of the clock - microchip

-Circuit board-Circuit board

-Impact switch-Impact switch

Continue…………………..Continue…………………..

-small batteries-small batteries

-audio device for the alarm-audio device for the alarm

2.Quartz movement- handsomely 2.Quartz movement- handsomely styled cube of molded plastic.styled cube of molded plastic.

…………………….timing device has been built .timing device has been built into the circuitry that automatically into the circuitry that automatically shuts off the alarm after one minute shuts off the alarm after one minute if the ball is not thrown.if the ball is not thrown.

Operational ManagementOperational Management

Dr. Winslow will oversee all Dr. Winslow will oversee all operations, his regular staff operations, his regular staff supervise the critical functions of supervise the critical functions of marketing , production management marketing , production management and business development.and business development.

Other critical areas that are handled Other critical areas that are handled by consultants called Bill Barlow & by consultants called Bill Barlow & product design- John Edwards.product design- John Edwards.

Marketing Plan & StrategyMarketing Plan & Strategy

During 1During 1stst year the focus is on year the focus is on placing the clock in up sale placing the clock in up sale department stores, clock specialty department stores, clock specialty stores & catalogs that reach upper –stores & catalogs that reach upper –middle income and upper income middle income and upper income executives & families.executives & families.

Advertising & PublicityAdvertising & Publicity

Publicity campaignPublicity campaignPrint ad campaignPrint ad campaignCooperative advertising plan to help Cooperative advertising plan to help

participating dealers in the first major participating dealers in the first major seasonseason

Trade showsTrade showsPromotional activitiesPromotional activities90 sec video spot for the second season90 sec video spot for the second season

Financial ProjectionsFinancial Projections

Sales & profits generated by the Sales & profits generated by the product is expected to reach by 8.5 product is expected to reach by 8.5 million within 3 years.million within 3 years.

Components and subassemblies Components and subassemblies would be purchased rather than would be purchased rather than manufactured by the company & manufactured by the company & then assembled and shipped by an then assembled and shipped by an outside contractor.outside contractor.

Continue………….Continue………….

Capital investment- Capital investment- $50000( minimum)$50000( minimum)

Start-up expenses, prototypes & Start-up expenses, prototypes & preproduction operating expenses for preproduction operating expenses for 11stst 2 months of 2004 -$50000 2 months of 2004 -$50000

Credit-$814000 (march to sept 2004)Credit-$814000 (march to sept 2004)Additional operating expenses-Additional operating expenses-

$176000(march – October)$176000(march – October)Equity capital-$650000Equity capital-$650000

Continue………………Continue………………

Combined cash injection of $1.2 Combined cash injection of $1.2 millionmillion

Return on investmentReturn on investment

………………..19% in 1..19% in 1stst year year

………………..33% in 2..33% in 2ndnd year year

……………………37% in 337% in 3rdrd year year

CONCLUSIONCONCLUSION