Will KauffmanSara NienhausHeather Gray
Introducing the Soccket Soccer Ball into the
Peruvian Market
http://www.soccket.com/
Soccket Soccer Ball.Soccer Ball that
stores energy and generates electricity for powering LED lights and batteries.
15 Minutes of play time = 3 hrs of LED lighting power.
Currently in use in rural parts of African countries which have no electricity.
The Product
Relative Advantage: Allows access to power to those who previously had none.
Compatibility: Much of the Peruvian population already plays soccer, thus making it easy to integrate into the local market.
Complexity: Very easy to use; cheap, clean, sustainable energy
Trialability: Not much opportunity to try first due to lack of current global product integration
Observability: Product currently only in African countries, but the benefits can be easily observed and quantified.
Product Evaluation
Cost: The technology is still in beta testing, but eventually should be relatively cheap to produce.
Donation Programs can be used to help begin market integration—buy one, give one.
Retailing Strategies dedicated exclusive store vs. adding product to existing sports retail location
Ball Quality need to make sure it is up to the standards of the consumer
Potential Problems
25% of the TOTAL population and 70% of rural population do not have access to electricity in Peru
Those living in the most rural areas of the Andean Highlands may never have access to reliable electricity due to high infrastructure costs and difficult accessibility.
Most people in this area make < $300/month
The Market: Geography and Demographics
Ball Sports Equipment led the sports equipment market in 2008 with 27.3% market share.
Day to Day shopping Market a variety of colors and
sizes to appeal to many segments national colors, club team colors, etc.
Peruvians resistant to change—Current heavy use of soccer balls allows for a smooth transition
Packaging—use packages as well as the product, so the way it is packaged is important (bio-degradable package)
The Market: Consumer Buying Habits
More focus on sales to urban areas with more disposable income, and donations to rural areas.
Sell both regular and Soccket soccer balls—purchase of either onesend Soccket ball to rural family
Use popularity of Soccer in Peru to help boost initial sales—shopping habits
The Market: Distribution
Local Retailing: Sell product to local retailers in urban areas like LimaCreate a donation program to allow
distribution to rural, poor areas that do not have access.
Online Retailing: Create our own website to avoid middlemen and reduce initial costs; once product sales increase, possibly team up with large online retailers like Amazon
The Market: Distribution
Run local ads in newspapers and on television to help people understand the need for electricity in those rural areas
Open a Soccket kiosk around popular soccer destinations to promote product and give demonstrations
Create a website to help increase awareness of product to both Peruvians and others globallyPeru is highest in Latin America internet use
because they have cheap, public facilities
The Market: Advertising and Promotion
Difficult to predict entry price point because the technology is just being introduced into the consumer market
Need to cover production and distribution costs work with corporate sponsors affiliated with soccer to gain funding—FIFA, National and Club teams.
Haggling is common in Peru experiment with various price points to determine a suitable entry price point (work with local retailers)
The Market: Pricing Strategy
62% of Population lives in the HighlandsSubsistence Farming and Mining are
economic base—can use Soccket Soccer ball to charge batteries for mining lights, etc.
Market size has potential for expansion due to global interest via online distribution channels
Goal: To have at least 30% of rural population using Soccket Soccer ball by 2020
Market Size
Work with various agencies to help promote donation program WHO, World Bank, NGOs and other foreign aid agencies
Work with Peruvian Government to determine the best way to import tariffs, distribution channels, etc.
Government Participation
Problems and OpportunitiesProblems
Revenue plan to donate many, need low overhead and outside funding
Availability product is just being introduced into the consumer market
OpportunitiesFirst Mover
Advantage corner market
Potential for use as a substitute for regular soccer balls
Large market sizeClean, sustainable
energy could be the forefront of a larger movement
http://www.globalgiving.org/projects/electricity-for-rural-peru/
http://www.worldsalaries.org/peru.shtmlhttp://www.jstor.org/stable/1249090?seq=5
Sources
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