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Company Description
“Emotiv is a neuroengineering company that has brought to market an affordable,
consumer friendly, high-resolution, multichannel, wireless EEG system…Emotiv is
revolutionizing human-computer interactions by allowing computers to react to your moods
and deliberate commands in a more natural way” (Emotiv, 2013, para. 1). Four award-winning
scientists and executives founded Emotiv Systems, Inc. in 2003. This team included technology
entrepreneurs Tan Le and Nam Do, internationally recognized neuroscientist Professor Allan
Snyder, and chip-design pioneer Neil Weste. “These founders all shared the same inspiring
vision: to introduce the immediacy of thought to the human-machine dialogue. Together they
have developed a technology that utterly transforms the way we interact with computers”
(VBProfiles, 2013, Overview). In 2009 the company launched the Emotiv EPOC, the world’s first
consumer neuroheadset primarily designed for use in the electronic gaming industry. Although
Emotiv’s initial launch picked up steam in the gaming industry, the company recognized the
potential of applying this technology across a variety of industries.
The medical research field is one of the most life changing spaces for the Emotiv
technology. Tan Le, Emotiv President, along with Dr. Geoff Mackellar, CEO of Emotiv Research,
share a vision of driving innovation in the medical industry. They believe the key to developing
meaningful applications is keeping their product affordable and highly available.
Enter Emotiv Lifesciences
Tan Le and Dr. Geoff Mackellar founded Emotiv Lifesciences in 2011. “Emotiv
Lifesciences is a bioinformatics company offering a unique platform for crowd-sourced brain
research. Emotiv leverages cloud computing, big data and mobile technology to offer valuable
personal insights and accelerate brain research globally” (Du, K., 2013, p. 2). The company’s
mission is to foster a global community of brain research via electroencephalography (EEG).
“Geoff co-founded Emotiv Lifesciences with Tan as a means to propel the research effort and
investigate future clinical and quantified-self applications of consumer-grade EEG systems… his
greatest ambition is to get the Emotiv Insight out into the world” (Le, T., 2013, para. 5-6).
Product Description
As previously mentioned, Emotiv pioneered the market of low cost EEG devices for
consumer use with the EPOC device. Emotiv Lifesciences is introducing the Emotiv Insight, the
second-generation EEG headset. The Insight “is a sleek, 5 channel, wireless headset that records
your brainwaves and translates them into meaningful data you can understand. Designed for
everyday use, Insight has advanced electronics that are fully optimized to produce clean, robust
signals anytime, anywhere” (Emotiv Lifesciences, 2013).
One of the most notable improvements over the first generation EPOC model is the use of dry
hydrophilic polymer sensors designed to absorb moisture in the surrounding environment. The
setup is quicker and more convenient since the user does not have to prepare the surface of
the scalp and is no longer required to apply saline gel to each of the 14 sensors. This feature
was added specifically to promote more frequent use of the product versus the nuisance of
adding saline gel before each use. The product design phase involved extensive modifications to
deliver a device that is lighter, comfortable, as well as visually appealing.
Emotiv Insight Key Highlights
• Wireless headset that measures and converts brainwaves into computing commands
that can be used to control objects, improve performance, or understand your brain more
• Faster, next-generation brain scanner that collects real-time data on the wearer's
thoughts and feelings and delivers it directly to a computer, phone, or other device through
Android, iOS, OSX, Linux, and Windows platforms
• Deciphers basic mental commands such as levitate, push, pull, rotate and hard to
visualize commands such as disappear
• Measures and tracks your Attention, Focus, Engagement, Interest, Excitement, Affinity,
Relaxation and Stress levels
History About the Product
The founders of Emotiv Systems, Inc. envisioned the EPOC Neuroheadset in 2003. The
device was made available for commercial use in 2009. The conception of the Emotiv Insight
resulted from a substantial amount of meaninful feedback from consumers, researchers, and
developers. “The purpose behind the Insight and EPOC headsets is quite simple… the
company’s long term aim is to take a clinical system (the EEG) from the lab into the real world
and to democratize brain research” (StoriesByWilliams, 2013).
• Brain-computer interfaces (BCIs) utilize psycho-physiological measurement techniques
to record brain activity and translate it into actions through a computer system. This allows the
user to interact with a system through mental actions alone, circumventing traditional control
paradigms such as physical manipulation or verbal commands
• The Insight is the second evolution in a line of headsets that when worn, track and
monitor the brain’s activity, translating the brain’s record to an ever-useful, app-friendly report,
engineered to “optimize brain fitness and performance.”
Situation Analysis
In order to effectively manage the Emotiv Insight, the product launch and marketing plan, it is
essential to understand the product itself and the current environment the product will be launching in.
The situation analysis will have to be periodically re performed to keep a firm grasp on the current
environment and to be prepared for market shifts that can impact the Marketing plan and product
launch capabilities.
SWOT analysis
In taking advantage of the increased attention on brain related injuries and disorders, Emotiv
Insight can build upon key strengths, including the exclusive 5 EEG sensors and 2 reference sensors,
award winning pre-cursor product, compatibility with major mobile and desktop operating systems,
among others.
To build and maintain a strong product, however, Emotiv must not lose sight of several
weaknesses and threats that have the potential to impact Emotiv’s bottom line or derail the product
before it ever gets off the ground; among them being heavy regulation, limited resources, and increasing
competition in the space. Table X summarizes these strengths, weaknesses, opportunities and threats.
Table X (if there are other tables, Shaun, adjust the naming convention to make sense chronologically)
Strengths
Revolutionizes the way we interact with computers
Wide range of uses; from gaming to interactive television, everyday computer interactions,
hands-free control system, smart adaptive environments, art, accessibility design, market
research, psychology, medicine, robotics, automotive, transport safety, defense and security.
Applicable to wide range of consumer markets; children, adults, individuals with medical
complications
Fully compatible with all popular mobile and desktop operating systems to access and monitor
data
Offers low cost research
First product offering, Emoti EPOC, is an award winning technology; currently used by
developers and researchers in more than 100 countries worldwide
Only brainwear on the market to offer 5 EEG sensors and 2 reference sensors, which provides
useful coverage of key sites around the cerebral cortex: frontal cortex (executive functions),
parieto-temporal (auditory, spatial/co-ordination), and occipital (visual). This spatial resolution is
crucial to getting EEG data that will allow you to receive more in depth information on your
brain activity.
Dry sensors that do not require any conductive gel or saline solution to operate
Weaknesses
It’s a developing technology that isn’t fully matured
Requires a headset for use
Limited resources to start up production
Limited marketing strategy while developing the brand/functionality
Currently pending regulatory approvals to ship worldwide
Opportunities
Expansion opportunities in medical research to build upon reputation in the medical community
which offers potential for grants to offset production/research costs
Develop physician relationships to gain access to their practice
Increased focus on brain related injuries in sports
Increased focus on brain related injuries/disorders among veterans
Threats
Medical industry is heavily regulated
Pharmaceutical companies could block any new technologies perceived to reduce their
treatment market share
Competitors; Neurosky Mindwave Mobile, InteraXon Muse have similar product offerings
Increased attractiveness of this segment due to the increased focus on brain related
injuries/disorders
Misuse of the technology potentially exposes Emotiv Insight to legal or reputational risk
Putting thoughts/brain function into action can have unintended consequences that have a
potential to interfere with Intellectual Property, decency, privacy laws
Market overview
• Citizen Scientists, Quantified Selfers, and basically everyone interested in their own
brain and improving their performance
• Mind controlled prosthetics - “Millions of people worldwide suffer from sensory and
motor deficits caused by spinal cord injuries. Researchers are working to develop tools to help
restore their mobility and sense of touch by connecting their brains with assistive devices”
(Peter, 2013, p. 1).
• The Emotiv Insight has huge market potential for many reasons: it is safe for children,
adults, and those with medical complications; it’s applicable to virtually every consumer
industry, the Emotiv Insight is fully-compatible with all popular mobile and desktop operating
systems
Core Business/Service of the firm
Emotiv Lifesciences produces relatively low-cost, portable, high-resolution
electroencephalogram headsets that that allows users to better understand and interpret the
signals from our brain. The Emotiv Insight measures and collects real-time data on the
participant’s thoughts, feelings and facial expressions that is wirelessly transferred to a
computer, phone, or other device through Android, iOS, OSX, Linux, and Windows platforms.
Emotiv Lifesciences’ goal is to deliver groundbreaking EEG technology into the hands of many
for the purpose of stimulating worldwide brain research of everyday living.
Emotiv Lifesciences is pursuing the dream of widespread brain function screening to
catch early signs of autism, epilepsy, learning disabilities, ADHD and other conditions… Le's
vision is the potential to implement inexpensive cognitive and neurological monitoring for
developmental disorders” (Saxton Speakers Bureau, 2013).
Competitive Analysis
NeuroSky, Inc. – The leader in Brain-Computer Interface (BCI) technologies for consumer
product application. Founded in 2004 and headquartered in San Jose, Calif., NeuroSky works
with industry partners, developers and with academic and research institutions, to provide
innovative products and solutions across a wide range of areas.
InteraXon – Has years of experience creating and implementing brainwave-controlled
computing technology and applications as well as an ongoing awareness of state-of-the-art
advances in the field. The company’s product, Muse, measures your brainwaves in real-time. It
sends those brainwaves to your smart phone or tablet showing you how well your brain is
performing; and also translates your brainwaves into instructions to interact with content on
your iOS or Android device.
Competitive Strategy
Emotiv Insight
InteraXon-Muse
NueroSky, Inc-MindWave
Mobile
The major competitive advantage that Emotiv Insight will emphasize is that it is the only
brain wear on the market to offer 5 EEG sensors and 2 reference , which provides useful
coverage of key sites around the cerebral cortex: frontal cortex (executive functions), parietal-
temporal (auditory, spatial/co-ordination), and occipital (visual).
This spatial resolution is crucial in getting EEG data that will allow you to receive more in
depth information on your brain activity. The headset has greater spatial ability, and measures
readings from a greater area of the skull, while still being affordable as compared to full medical
brain computer interface setups.
A particular characteristic that stands out with Emotiv is the company’s reputation with
encouraging third-party development and research. This allows developers to unleash their full
spectrum a creativity and thought into a world of undiscovered game-changing applications.
Emotiv continues to build upon its success by producing affordable devices that measure raw
EEG data at a reasonable level of accuracy. Medical-grade EEG studies that produce comparable
results are unrealistic for worldwide studies as they can cost from $3,000 to as much as
$50,000.
The price point of the Emotiv Insight devices allows researchers to purchase several
units for their case studies.This advantage will generate an increased amount of visibility, not
only for its product differentiation, but also for its capability to allow individuals to conduct low-
cost research.
Main Goals for Emotiv Insight
Emotiv Insights main goals are to: 1.) Increase exposure; 2.) Increase traffic; 3.) Gain
marketplace intelligence; 4.) Develop loyal customers; 5.) Improve Sales; 6.) Create new
partnerships; 7.) Reduce marketing expenses
Marketing Objectives/Competitive Strategy for Emotiv Insight
Establishing Strategic Alliances-To promote a new way that will allow individuals to
optimize their brain fitness & performance, as well as measure their own cognitive
health & wellbeing, through strategic alliances with hospitals, rehabilitation centers, and
organizations.
Develop a Strong Marketing Strategy-To create advertising strategies that positions
ourselves to be viewed as leading innovators who provide clinical product solutions to
help businesses manage the complications of disease.
Establishing Value Proposition-To be able to effectively use the devices therapeutic
system offering as the way to gain entrance into the market and build our products
awareness.
Developing Principal Goal-To achieve $5 million in revenue by year three.
Promotion Strategies
Develop a product awareness campaign by partnering with a third party that specializes
in public relations and industry media. (Will develop direct mail information, product
brochures, product training video and guide, webinar etc.)
Develop physician’s relationships to gain unique access to sell to the organizations
where they have privileges. In addition to the business/physician relationship, the
physician may be asked to develop a Board (may consist of one doctor, etc.) that
sponsors luncheons, and information sessions.
Target Market Segments
By pursuing an aggressive product awareness campaign, Emotiv Insight will become the
leading brain wear technology that has a therapeutic offering.
Emotiv Insights Target Market Segments
Rehabilitation Centers
Disabled Individuals
Hospitals
Individuals with Mental
Disorders
Marketing Strategy
One important element in building Emotiv Insights revenue is by conducting a market
analysis and analyzing the trends of the direct competitors. Once this is done, Emotiv Insight
players will need apply the information to their current objectives. This will allow them to gain a
competitive advantage that will increase their revenue. In addition, Emotiv Insight players will
need to establish “who” the product is and what consumers it will attract. This can be done by
using three elements that include: Branding, Positioning, and Awareness.
Branding- Branding is essential for Emotiv Insights success. Emotiv Insight can brand
itself as the next generation wearable device that can be used as a therapeutic offering.
Rehabilitation CentersBuild relationships with
Accelerated rehabilitations centers who will use Emotiv Insight as a
treatment technique for individuals seeking treatment in an inpatient
and outpatient basis
HospitalsBuild business relationships with
hospitals that will allow physicians to use Emotiv Insight as a therapeutic offering to their
head and trauma patients
Disabled IndividualsWork to form partnerships with
organizations such as The American Association of People with Disabilities (AAPD) to offer Emotiv Insight as a part of their
Telecommunications and Technology Policy Initiative
(TTPI)
Individuals with Mental Disorders
Target organizations that treat military personnel who suffer from post traumatic disorder
Positioning- Positioning is essential for Emotiv Insight because it helps guide the
marketing strategy in deciding the brands essence. The result of positioning shows why
the target audience should buy the product. One component of Emotiv Insights strategy
is to strategically position the product in a market that has a need for rehabilitating
devices.
Awareness-Emotiv Insight can capitalize on their strength of being a device that has a
therapeutic offering. Through the product awareness campaign, aggressive advertising,
and a strong market presence, Emotiv Insight will gain solid awareness to the market
that aims to restore mental health that has been lost by traumatic injury or disease.
Product/Service Strategies
Emotiv Insights sales representatives will target specific market areas that will include
local & national hospitals and rehabilitation centers, organizations for disabled
individuals, and organizations that have programs designed to treat individuals with
post traumatic disorder.
Design a Webinar that provides in depth product information as well as an intensive
training session that is required to be completed before the use of the device.
Develop a relationship with a foreign market to distribute and manufacturer products.
Financial plan for EMOTIV INSIGHT
Breakeven Analysis
It is calculated that the fixed costs are incurred for a plant that has a capacity of 2,000 units.
In that case, the total fixed costs are ($55 * 2000 = $110,000). The calculations for the
breakeven point has been broke out for the product in terms of units as well as sales.
Fixed Costs: $55 per unit for 2000 units capacity = $110,000 Variable Costs: $25 per unit Selling Price: $300 per Unit Breakeven in terms of units = $110,000 / ($300-$25)
= 400 units Breakeven in terms of sales = $110,000 / (($300-$25)/$300)
= $120,000
As you can see based on the chart Emotiv will have to sell 400 units in order to break
even. Also, Emotiv’s sales need to at least be $120,000 in order to cover all of our costs. In
addition, in order for the product to turn a profit, it will need to sell more than 400 units, or
have sales of more than $120,000.
50100
150200
250300
350400
450500
550600
650700
750800
850900
9501000
-$150,000.00
-$100,000.00
-$50,000.00
$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
Breakeven analysis
Profi
t
Number of units
Advertising costs
Budget allocation has to be done according to various parameters:
How far would we like our reach to be?
Return expected from the promotion?
The product is targeted at a large variety of customers for which it needs a wide reach
through its promotions. The best suited investment for this purpose is investment in print
advertisements in medical magazines, targeted promotional material for health offices, and
medical supply trade shows. This will be followed by Television advertisement, internet
advertisements, and an aggressive social media campaign.
We expect proportion to be as follows:
40%
30%
20%
10%
Advertisement budget
TV advertisementInternet campaignsHealth care professional's advertisement materialOther pomotional material
Operating and Non-operating costs
We segregate the costs of the operations which include the manufacturing of the
product, and non-operating which include other expenses such as promotional and sales,
administrative, market research, product research and development.
The idea behind this plan is to identify possible costs and accordingly allocate budgets
for each category of expense. This will enable the company to manage and control the costs
and thereby improve profitability.
Operating expenses
Labor $150,000
Supervisors $50,000
Materials $130,000
Overheads $110,000
Non-operating expenses
Advertising $20,000
Promotions $20,000
Field Sales $10,000
Marketing management $15,000
Product management $10,000
Marketing research $25,000
Product development $50,000
Testing $35,000
General and administrative $30,000
Total $655,000
Sales forecast
Based on the market research and the macroeconomic trend analysis, we have
identified the sales forecast as follows. This also includes possible competitor events and other
planned and known variations that could occur in the span of next three years. Because of
greater incidence of brain related disorder, we expect the sales to increase in the coming two
years. However, because of increased attractiveness of this segment, we have factored in some
expected competitor events which could affect sales.
Year 1 Units Price Sales Year 2 Units Price Sales
Jan 500
$300
$150,000 Jan
1,300
$300
$390,000
Feb 700
$300
$210,000 Feb
1,500
$300
$450,000
Mar 800
$300
$240,000 Mar
1,200
$300
$360,000
Apr 900
$300
$270,000 Apr
1,300
$300
$390,000
May 1,000
$300
$300,000 May
1,400
$300
$420,000
Jun 600
$300
$180,000 Jun
1,600
$300
$480,000
Jul 500
$300
$150,000 Jul
1,200
$300
$360,000
Aug 1,000
$300
$300,000 Aug
1,300
$300
$390,000
Sep 500
$300
$150,000 Sep
1,200
$300
$360,000
Oct 500
$300
$150,000 Oct
1,000
$300
$300,000
Nov 1,000
$300
$300,000 Nov
2,000
$300
$600,000
Dec 1,000
$300
$300,000 Dec
1,100
$300
$330,000
Year 3 Units Price Sales
Jan 1,400
$300 $420,000
Feb 1,900
$300 $570,000
Mar 2,000
$300 $600,000
Apr 1,800
$300 $540,000
May 1,900
$300 $570,000
Jun 2,000
$300 $600,000
Jul 1,400
$300 $420,000
Aug $450,000
1,500 $300
Sep 1,500
$300 $450,000
Oct 1,400
$300 $420,000
Nov 2,000
$300 $600,000
Dec 1,400
$300 $420,000
20x3 20x4 20x5$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
-
5,000
10,000
15,000
20,000
25,000
$2,700,000.00
$4,830,000.00
$6,060,000.00
Sales Units
3 Years Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -
1,000
2,000
3,000
4,000
5,000
6,000
20x3 20x4 20x5
3 Years Monthly Sales Volume Forecast
Web Strategy/Social Media
Outsource design and development, content creation and analytics.
Objectiveso Increase exposureo Increase traffico Gain marketplace intelligenceo Develop loyal customerso Improve Saleso Create new partnershipso Reduce marketing expenses
Resourceso Tedo Facebooko Twittero LinkedIno Blogso YouTubeo Podcastingo Search Engine Optimization
Critical Risks/Evaluation
Emotiv Insight believes the best target market to launch its product is rehabilitation centers,
hospitals, organization for mental disabilities, and disabled veterans diagnosed with Post Traumatic
Stress Disorder. However, it is imperative that the following risks are understood and monitored to
ensure a successful launch.
1. Small target market may not be successful enough to fully launch the product worldwide. The
target market, if successful, can create a strong reputation and profit margin for the Emotiv Insight that
can then be leveraged to expand the product and the brand into a larger market.
2. Unsuccessful product launch due to failed marketing plan implementation. In order to mitigate
this risk, Emotiv Insight will periodically gauge the effectiveness of the marketing plan by monitoring the
key metrics; Budget, Performance toward meeting marketing plan objectives, Return on marketing
investment dollars (ROI), monthly profit and loss results, etc.
3. Heavy regulation in the healthcare industry can cause significant impact to the bottom line. A
portion of product development dollars will have to be allotted to ensure compliance with applicable
regulations. Currently, Emotiv Insight has not been approved to launch globally, and for the strategic
company goals, this will need to be accomplished.
The key to the success of Emotiv Insight is the agility to adapt and adjust to meet the company’s
goals. In order to adjust, Emotiv Insight has the following contingency plan if these risks are realized;
Adjust target market to the “healthy lifestyle” market. It does not have the same potential to build the
strong product reputation from the medical community but there is less cost associated due to decrease
in regulatory (non-discretionary) product spend and the market size is significantly larger so there is
more ‘bang for the buck’.