Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A...
-
Upload
arthur-robinson -
Category
Documents
-
view
219 -
download
0
Transcript of Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A...
![Page 1: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/1.jpg)
Slingbox
INNOVATIVE NEW PRODUCT
Lindell Chew
![Page 2: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/2.jpg)
General Business Purpose
• What is Sling Media, Inc
• A digital lifestyle products company creating a family of consumer electronics products that are a natural extension of today’s digital way of life
• The first member of the Sling Media family is the award-winning Slingbox™ .
![Page 3: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/3.jpg)
Products
• What is Slingbox- • A groundbreaking piece of hardwired ingenuity
that will literally transform the way you watch television, for only $249.99
• It allows consumers to access their living room television experience at any time, from any location.
• Uses a variety of different displays including laptops and desktop PCs, handheld computers and smartphones
• Slingbox Intro Video
![Page 4: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/4.jpg)
Price
• $250.00• No additional monthly or service fees• Value Pricing -not too high but still suggests
quality -because consumer takes a risk
with an unknown brand it needs to be priced to reflect value
![Page 5: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/5.jpg)
Distribution
• Selective• Available at home website, Comp
USA, and Best Buy.• Not exclusive so that product
would be available at stores our target market shops at.
• Not intensive to reflect higher quality.
![Page 6: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/6.jpg)
Existing Competition
• No direct competition • Indirect competition at the product
category, generic and budget competition level – Hotel Movies and Television– Streaming Online Video– DVD’s– MLB TV
![Page 7: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/7.jpg)
Threat of New Entrants
• Many companies with technological know-how with large R&D budgets could easily enter the market pending progressive growth
• Companies with a computer-based platform (Microsoft, Dell, Hewlett Packard)
• Companies with a television-based platform (Sony, Hitachi, Samsung)
![Page 8: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/8.jpg)
Problems & Opportunities
• Opportunities – First to Market – Market Share Supremacy
– Partnership with Texas Instruments and Microsoft Window digital media
– Internet and cable use (Requirements) are at an all time high and continue to grow
![Page 9: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/9.jpg)
Problems & Opportunities
• Problems
– Set up/Technology my discourage customers especially older population
– Power house, entering the market and
![Page 10: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/10.jpg)
Target Market (size)- 3.5 Million
• Cross section of people with cable/satellite TV and high speed internet
• Affluent, tech savvy business travelers
• Age 25 to 55
• 30 top urban cities
![Page 11: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/11.jpg)
Promotional Mix
Promotions Subtotal--$4,375,000• 10% of Net Sales
Revenue
Promotional Mix
Sales Promotion10%Internet
10%
Public Relations 20% Advertising
60%
![Page 12: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/12.jpg)
Promotional Percentages
Advertising• 60% of Promotional
Budget• $2,625,000• Highest percentage
Need to create market awareness
Need to create positive image for new product
Public Relations• 20% of Promotional
Budget• $875,000• Large portion of $
goes to pay staff or P.R. firmResponsible for
maintaining a positive image towards Slingbox
![Page 13: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/13.jpg)
Promotional Percentages Cont...
Internet• 10% of Promotional
Budget• $437,500• Small Percentage:
+ It’s Cheap
+ Lot of “Bang for your Buck”
-- Can be too Intrusive
Sales Promotion• 10% of Promotional
Budget• $437,500• Small Percentage:
+ Can persuade consumers to buy
-- Can be harmful to image
![Page 14: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/14.jpg)
Advertising Example
SkyMall - Catalog• Cost: $92,600• 4% of Advertising Budget• Reach: 155,000 passengers per quarter• Positive Attributes:
Captivated audienceAverage passenger spends 15 to 30 browsing the
catalog Best possible way to target business travelers
![Page 15: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/15.jpg)
Advertising Example
Business Travelers News – National Magazine• Cost: $404,260/year for 29 issues
½ page tabloid spread ads
• 15% of Advertising Budget• Reach: 54,800 subscribers
Pass along value/word of mouth would account for a much higher number being reached.
• Positive Attributes:Focused directly on corporate business travelers
![Page 16: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/16.jpg)
Public Relations
• Budget – $875,000
• Must be of interest to the audience of the medium chosen
• Conduits with similar Reader Profiles to Slingbox’s target market
• Press releases to mediums advertising in as well, like BTN
• Examples of outlets to release information to:
![Page 17: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/17.jpg)
The Wall Street Journal
• U.S. Circulation – 1,826, 493
• Average age – 50
• Graduated college or more – 76%
• Average household income - $192,324
![Page 18: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/18.jpg)
Fortune Magazine
• 830,000 copies circulated monthly
• 83% graduated from college
• Median household income is $165,200
• 88% traveled by commercial airline in the last year
• 91% have a home computer
• 85% are employed in the business, industry or the profession
![Page 19: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/19.jpg)
Internet Activities
• Links to Slingbox’s website or Banners ads on TiVo's website Cross promotion effort
• Banner ads on Business Travelers News Online, Skyscraper - $1,840 Monthly
• Travelocity
![Page 20: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/20.jpg)
Sales Objectives
• It is projected that in its first year of business Slingbox will sell to five percent of its total target market.
• Therefore sales in its first year will total 175,000 units with sales of $43,750,000 in 2006.
• Project a slight increase in sales in following years
![Page 21: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/21.jpg)
3 Year Projected Income Statement
2006 2007 2008
Revenue:
Net Sales Revenue $ 43,750,000 $ 44,187,500 $ 44,629,375
Expenses:
Cost of Goods Sold 30,625,000 30,047,500 29,009,094
Advertising 2,625,000 2,386,125 2,142,210
Public Relations 875,000 795,375 714,070
Personal Selling 437,500 397,688 357,035
Sales Promotion 437,500 39,688 357,035
Promotions Subtotal 4,375,000 3,976,875 3,570,350
General & Administrative 1,312,500 1,325,625 1,338,881
Testing/Evaluation 218,750 220,938 223,147
Total Expenses $ 36,531,250 $ 35,570,937 $ 34,141,471
Taxable Income 7,218,750 8,616,562 10,487,904
Less: Taxes (34%) 2,454,375 2,929,631 3,565,887
Net Income $ 4,764,375 $ 5,686,931 $ 6,922,017
![Page 22: Slingbox INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family.](https://reader036.fdocuments.us/reader036/viewer/2022062516/56649e355503460f94b23e6e/html5/thumbnails/22.jpg)
NPV, Payback Period and IRR
• NPV - $1,459,619.57
• IRR – 27.96
• Payback Period – 2.19 years, initial invest of 10.5 million in venture capital secured to launch product