BUSINESS CONCEPT

MOBILE QUIT SMOKING APPLICATION

BIRTH OF THE IDEA

• September 2008 researching the market for a cigarette case with a time lock we found several digital versions, the most advanced does not lock the cigarettes but simply tracks the usage profile and then begins a gradual reduction, signalling time for a cigarette by ‘buzzing and flashing’ also showing time since last and to next cigarette.

WHY BUY ANOTHER PRODUCT WHEN YOU ALREADY CARRY A PHONE?

• A mobile phone could easily incorporate this technology . We see far bigger potential for market share and penetration for a mobile application compared to the ‘smart cigarette case’ for USD150.

• public health benefit = suitable for attracting government and health industry support for development and promotion = early cash flow.

FOUR UNIQUE SELLING PROPOSITIONS

• The first mobile phone quit smoking application (we think…???)

• User friendly – only reminds the smoker, gradual wean off, allows them to physically smoke (as opposed to chewing nicotine gum) which is half of the addiction.

• Customizable – easy to add or improve product features such as encouragement messages, progress tracking reports etc

• Discreet – can remain completely inconspicuous, known only to the user.

PRICING?

• PAY BY: SUBCRIPTION / DOWNLOAD / OTHER? • Fee billed to the consumers mobile phone• WHAT PRICE

• ANY POSSIBILITY FOR MARKETING SPONSORSHIP ETC?

OUR TEAM

• Strengths • Relevant experience in:

– Java Programming and mobile application development– Electronics engineering – Business development – Passion for the venture

• Weaknesses

– Lack of marketing and industry experience (quit products)– Lack of financial background– Lack of network

OUR GOALSWe view this as a project with a defined time frame and specific goals for our team. GOAL 1: CREATE A TREND IN AN UNCONTESTED MARKET SPACEStart a trend by creating an uncontested market space (blue ocean strategy), that is, there are currently no quit or reduce smoking mobile phone applications.GOAL 2: GAIN EXPERIENCEAs individuals we see this project as a way to gain valuable experience in the following areas, market research, mobile service development and marketing, intellectual property, distribution and business administration. GOAL 3: PROTECT OUR (LONG) TAILWe would like to limit competition in this new market space by patenting the application so that we can lengthen our product life cycle in order to follow the decline of cigarettes, and increase in quit products, into other countries in the word that are not yet showing signs of slowing smoking.If successful we would like to business to become an ongoing revenue stream.

CONCLUSION• • ECONOMIES OF SCALE? YES: • as a mobile application there are definite economies of scale beyond fixed development cost.• • PROFITABILITY? UNCERTAIN: • how do we price and sell the product, what is our profit potential.• • ATTRACTIVE INTERNATIONALLY? YES:• although demand would have to be determined by market research. If it works in one country it is likely

to work in other countries.• • HIGH GROWTH POTENTIAL? UNCERTAIN: • Needs consumer market research.• HOWEVER: vast number of smokers, many of whom want to give up or cut down and are not using the

available (non tobacco) products out there such as nicotine gum. Also the similar program based on a cigarette box has clinically proven results regarding effectiveness.

• • OTHER SUCCESS FACTORS: • Strategic alliances with the right players. • Good project management. • Good team with realistic expectations.