MARKETING

PLAN BRIEF
REMechanics
Bliss 182

Submitted By:
Zaina Aitbenbella, Harris Enerson,
Jamie Kalff, Andres Morales,
Hillary Ravick, Christine Singh

TABLE OF CONTENTS
EXECUTIVE SUMMARY
SITUATION ANALYSIS
MISSION STATEMENT
COMPANY DESCRIPTION
PRODUCT CATEGORY
CONSUMER RESEARCH
COMPETITIVE RESEARCH
S.W.O.T. ANALYSIS
PROBLEM ANALYSIS
MARKET ANALYSIS
COMPETITIVE ANALYSIS

MARKETING OBJECTIVES
DIFFERENTIAL ADVANTAGE
POSITIONING
COMPETITIVE ADVANTAGE

MARKETING STRATEGIES
TARGETING
PRODUCT
PRICE
INCOME (P&L) STATEMENT
PLACE
PROMOTION

EVALUATION CONROL & UPDATE

PERFORMANCE STANDARDS & ACCEPTABLE DEVIATIONS
CONTINGENCY PLANS

WORKS CITED
CONTRIBUTION PERCENTAGES

2-3
4-18
4
4
5
9
12
13
14
16
18
20
21-22
21
21
23-33
23
26
28
30
32
33
36
36
36
37-38
39

Executive Summary
Finally, a sleeping pod as unique and conscious as the people who sleep in it!
REMechanics Corporation is introducing the new cutting-edge sleep experience: the Bliss 182.
This new version of a sleeping pod uses a fun, contemporary and highly innovative approach to
easing the lives of everyday college students and university staff around the country. This new
company is offering top of line sleeping pods equipped with multiple attachments and
accessories. The armrests are equipped with electrical outlets while the head-rest has Beats
speakers conveniently located near your ears. Bliss 182s transformative experience gives
college students both a private and relaxing place to unwind and remove themselves from the
hustle and bustle that surrounds them. It provides students with a locked cubby for their personal
belongings as well as a privacy shade to give the users a time away from the rest of the world.
In conjunction with the Bliss 182, REMechanics is providing its customers with the
Bliss Bonus Membership. With the download of our app, customers will be issued a QR code
for payment at the pods and will be better able to keep track of their profile, reserve a sleeping
pod and time, see their suggested sleep patterns, and connect on social media.
Health professionals recommend an average of 7 to 8 hours to sleep per night for college
age individuals. However, according to our research done on college campuses, students on
average are achieving around 6 hours of sleep per night. There is evidence that inadequate sleep
results in undue stress, anxiety, depression, low academic performance, among many other daily
health challenges. That is why REMechanics created the Bliss 182, it will provide students with
the space and time to achieve the recommended sleep during their day. We found college
students to have an average of 2 to 3 hour breaks some days in between classes. It is also

recommended that naps not exceed 90 minutes. The often prominent day time breaks are the
optimal time for students to maximize their time and take a quick but useful nap.
Our competitors consist of a couple small companies that sell their sleeping pods directly
to customers for a large sum of money. MetroNaps is one example. However, REMechanics will
be distributing the Bliss 182 a different way. The pod will be leased by universities for a price
just above the cost of manufacturing and then time spent on the pod will be rented by the
students in 20 minute increments. A portion of those nap profits will go to the university its
located at and the rest will go to REMechanics.
The Bliss 182 promises an optimal, revitalizing experience that will inevitably create
customer satisfaction and loyalty.

Situation Analysis
Mission Statement:
To provide a unique and premier revitalizing experience to improve the performance
level of everyday university goers.

Company Description:
At REMechanics Corporation, we pride ourselves on a fresh and highly innovative
approach to easing the lives of everyday college students and university staff around the country.
We offer top of line sleeping pods equipped with multiple attachments and accessories. We
promise an optimal revitalizing experience that will inevitably create customer loyalty. Our
highly motivated team is devoted to achieving brand awareness, providing customer satisfaction,
and implementing business tactics in order to establish continuing growth in our company.

Product Category
Product Quality:
The Bliss 182 has a sleek design making optimal use of space allotted. The titanium casing
allows for a much lighter ergonomic piece as opposed to other cumbersome sleeping
chambers. While the Bliss 182 is lightweight, it is also able to block distracting sights and
peripheral sounds with its noise cancelling shell that lowers over the top of the sleeping
pod. The sleeping pod is not completely enclosed for added comfort for all users including those
who may have a touch of claustrophobia. Overall, Bliss 182 users will take part in an immersive,
rejuvenating experience that will leave them well rested and energized.

Product Uses:
Studies have shown that taking a brief nap during the day improves alertness, learning,
creativity, cognitive functioning and mood, in addition to reducing stress and significantly
reducing the risk of heart disease. By providing a dedicated space for rejuvenation, the Bliss 182
allows users to boost their productivity while also helping them to maintain a healthy
lifestyle. The Blink 182 consists of a base model which includes several sleep conducing
functions. Offering students napping facilities can thus have a great effect on students overall
well-being and their academic results.
A selection of evidence
Perception & alertness:
Amin et al. (2012) argue that a short, mid-day nap is associated with improved alertness
and cognitive functioning, leading to a 30% reduction in attention failures, an 8%
reduction in hit reaction time, a 50% reduction in omission errors, and a 22% reduction in
commission errors

Mednick et al. (2002) find that daytime napping stops or even reverses the process of
deterioration in visual perception, thus helping individuals cope with information
overload

Rosekind et al. (1994) conclude that planned napping prevents detonation of vigilance
performance (measured as the number of reaction lapses) and leads to 54% fewer brain
and eye movement micro events which is indicative of increased physiological alertness

Learning & Cognition

Lahl et al. (2008) demonstrate that even an ultra-short period of sleep is sufficient to
enhance memory processing, as memory retention with a short nap was measured 18%
higher than that without the nap, while a longer nap enhanced memory retention by 34%
relative to that without the nap

Roltson et al. (2007) show that college students taking regular naps demonstrated higher
cognitive scores and lower stress levels when compared to the control group

General Health

Roberts (2013) find that self-reported scores of impulsivity of behavior significantly

decreased after a 60-minute nap occurring in the afternoon

Maisharah, Noor and Hafzan (2011) show that napping and sleeping were reported as
the most effective ways to cope with stress as perceived by the subject

Naska et al. (2007) argue that systematic midday napping is associated with a 37% lower
risk of dying from a coronary heart disease, while even occasional napping reduces the
risk by 12%

Product Price and Packaging:

The Bliss 182 will be leased to colleges and universities, starting out with four universities
for the pilot testing (Pace University, New York University, Hunter College and Baruch College)
at $7,800 for the first year, which is $200 less than what our competitor offers. If they wish to
renew the lease, it will be $7,500 for every year after the first. You might be asking yourself why
any institution would want to pay such a high price to have a machine that would end up making
us money in the long run. The answer to that is simple, the college or university will receive a
30% cut of the fees that we receive from students. We anticipate that the number of
universities/colleges who lease our product will double within the first two years.

Product Features:
The Bliss 182 is equipped with high quality vegan leather, stainless steel titanium, and a
memory foam headrest to maximize comfort. We want to reassure that when customers invest
their time and money into our product, they are getting an optimized experience. The pod is
equipped with noise cancelling technology by the partial enclosure for privacy and the Beats
speakers in the headrest. The pod itself is properly angled to enhance an amazing relaxing
position with the comfortable elongated footrest and slanted back and head rest.
On the back of the Bliss 182 there is a locked compartment for the student to place and
store their personal belongings to ensure their safety while they take their much deserved nap.
Napping can be a difficult process, you must know how much time you have to know how long
it will take you to wake up and when to set your alarm for. The Bliss 182 has a built in alarm
clock that will play music, gradually increasing to awaken your senses with an array of colorful

lights to slowly remove the darkness. With all of these high end features, there is no doubt that
every customer will have a fulfilling and wonderful revitalizing experience.

Consumer Research
Who takes naps? We believe college students are the most likely suspects. For the most
part, their schedules vary at odd times of the day, in the evening, perhaps on the weekend, and all
with a lot of hour long breaks spread throughout those days. Here at REMechanics, we know that
creating a class schedule is a taunting and stressful task for all college students. They want to get
the best teachers and the best time of day that also makes sure they graduate on time. However,
that can lead to a lot of scattered downtime throughout their days.
We wanted to know what they did with that time so we administered an online survey
targeting college students that examined their sleeping habits, average daily schedules, and what
they do with the free time they have on campus.
The survey comprised of 66 participants, 33% male and 67% female, consisting of 70%
full time undergraduate students and 9% full time graduate students. Of the participants included
based on their academic demographics, 34% of participants live in their campus residence hall
and 66% commute. When asked about their sleeping habits 44% said they get an average of less
than 5 hours of sleep a night, and 49% said they get an average of between 5 and 7 hours. The
recommended number of sleep per night is 8 hours, which only 12% of students seem to be able
to receive on average. In the same participant pool, 81% of students either said yes or
occasionally when asked if they take naps during the week. However, 86% of the participants
said there was no space on campus they felt comfortable taking a nap or resting in between
classes.
When it came to their daily schedules we found that 50% of participants had an average
of less than an hour break in between classes, 38% had 1 to 2 hour breaks, and 12% had 3 to 4
hour breaks. And the majority at 35% had their longest daily break between classes as more than

10

5 hours. During those breaks 62% of participants said they study and do homework, 10% hang
out with friends, and 18% take naps or rest. (See appendix).
At REMechanics we are interested in the cost they would be willing to spend if provided
with such a space as was noted seemed to be lacking. 88% of participants said if there was a
comfortable and relaxing place on campus specifically designated to napping or resting, they
would use it. 51% of the students said they would spend less than $5, 33% said they would spend
between $5 and $10, and 16% said they would spend $10-$20. 35% of students said their naps
are less than an hour, 53% said they are between 1 and 2 hours, and 12% said they are more than
2 hours. So the prices they are willing to pay are dependent upon the amount of time on average
any given nap takes. It is also interesting to note that 52% of students go to campus on average 5
days a week.

70%
60%

Sleeping PaVerns of 18-24 year olds

50%
40%
30%
20%
10%
0%

Females 18-24

Males 18-24

Using data provide by Simmons One View (above graph), we examined the sleeping
habits of females and males ages 18-24 during each hour of the day. We found the times the

11

highest percentage of that demographic is sleeping is between the hours of 10:00 pm and 9:00
am. However, the percentage of the people that sleep during those hours never rises above 60%.
That means there is 40% of our target audience that dont appear to be sleeping the
recommended 8 hours. This data is positively associated with the data we collected ourselves,
cumulating in the results that the student population, on average, is lacking in terms of their
quantity and quality of sleep.
The Centers for Disease Control and Prevention reported on how self-reported sleeprelated difficulties of adults can be a public health epidemic. The highest problems reported
associated with sleep issues is concentrating on things and remembering things- both large
components of a students every-day life. 74,571 adult respondents in 12 states, 35.3% reported
<7 hours of sleep during a typical 24-hour period, 48.0% reported snoring, 37.9% reported
unintentionally falling asleep during the day at least once in the preceding month, and 4.7%
reported nodding off or falling asleep while driving at least once in the preceding month.
(Insufficient Sleep is a Public Health Epidemic, 2011)

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Competitive Research
With the REMechanics Bliss 182 we intend to reach a target audience of both male and
female 18-24 year-olds. There is only one known competitor in the market and that is
Metronaps EnergyPod (patent pending). While the Bliss 182 can be compared to the
EnergyPod, the Bliss 182 is unique in its own way. The REMechanics competitor encourages
power napping for work professionals instead of fully restoring sleep and providing a better life
balance to a younger demographic. According to research our targeted demographic 40% of our
target audience does not get the widely recommended 8 hours of sleep per night and oftentimes
suffer from extreme fatigue.
Metronaps brand image is one that is futuristic but professional. It seeks to reach
business professionals to optimize their workday through brief naps. The Metronaps EnergyPod
offers several add-on features including LED lights, privacy visor, and storage bins. Metronaps
focuses on the older demographics insufficient sleep and workaholism (Bruce 2015). This
company also heavily relies on word-of-mouth marketing, and only uses promotional content
once their pieces have been installed. According to the 2013 census, there are over 30 million
businesses in the United States. Of those 30 million, Metronaps occupies 0.0003% of those
businesses, and charges over $12,000 per pod installation. Metronaps also has nap salons.
These are business spaces that contain clusters of their sleeping chairs and charge up to one
dollar per minute of rest. These activations are not as popular as their personalized installations
in larger businesses across the country.

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SWOT Analysis
Strengths
1. Very few commercial competitors.
2. Futuristic and innovative design is enticing to students.
3. Allows the much needed space for power naps for the every busy student body
4. Supports a healthy lifestyle and fosters healthy habits
5. Safe and relaxing environment for students specifically designed for their needs
Weakness
1. High cost of production
2. Could be narrowed toward commuter students
3. The relative newness of the product could make consumers apprehensive, little
awareness of the company
4. Cost of upkeep and electricity costs/usage
5. Proper usage of space for intended purposes
Opportunity
1. Give college students a new trend in their daily routine that can be spread across to
other universities
2. Develop continued relationships with universities to foster continued patronage
3. Expand to corporate offices to build off Googles successful and well perceived rest
area idea
4. Develop higher and lower ends of the same product to expand into different markets
Threats
1. Current economy doesnt provide a lot of room for luxury items
2. The budget cuts for public universities could inhibit their ability to go above and beyond
for their students
3. Similar products create competition

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Analysis of SWOT Information

Problem Analysis
Although we see a very strong room for profit margin, there is still a high cost associated
with developing and manufacturing REMechanics state of the art sleeping pods. We expect the
cost of creating one pod, at this time, will be around $1,500. That cost includes shipping,
packaging in addition to the manufacturing. At first glance, the universities that we will be
marketing to will most likely shy away from buying several of them because of that cost. We
expect to sell between 3 and 5 to our pilot campuses. This high cost of production will take a
little longer to make up for with small beginning lease agreements. In order to turn a substantial
profit, there will have to be more universities.
An additional problem our company may face is our target market of college students
being narrowed too much into the commuter students. Commuter students make up over 87% of
university students nationwide, including full and part time students. (Pace University, 2014)
That comprises all students not living in campus sponsored housing. Although those students
make up a large percentage of students in metropolitan areas, that target would decrease in the
more suburban campuses with less off campus living options. This limits our target market to the
students who are unable to just take an elevator up a few floors to their own bed.
In addition to the cost, we also realize that consumers are apprehensive about purchasing
or partnering with a new brand. It can be a risky endeavor for one main reason- there is no brand
awareness. Without brand awareness there must be a certain level of trust in the company from
the consumer end. If the universities were to partner with us, how would they know the people
they would be turning around and selling to (the students) would purchase time for a nap on one
of our pods? Our goal is to convince those universities of three things- why sleeping pods would

15

be beneficial to students, why we believe they would use them, and why our sleeping pods are
better in quality and cost than our competitors. However we have an advantage over the
competitors, their brand awareness is virtually non-existent. So if we bring REMechanics to the
attention of universities, we have that advantage already.
The cost of the upkeep and maintenance will be a factor universities consider when
deciding whether to partner with us or not. They need to look at the cost of the increase in
electricity, increase in cleaning staff, and the cost of maintenance if theres a malfunction in the
pods. Although we will provide proper installation, maintenance, and warranties, the day to day
upkeep will be a cost taken on by the school budget. These pods will require one electrical outlet,
although they will only be turned on when in use, there will be a minor cost of electricity to run
them. However, in the grand scheme of lighting and maintaining an entire campus, we dont
anticipate that cost to be of concern to the colleges.
Finally, an issue we may also run into is proper usage of sleeping pods for sleeping
purposes. Since we are marketing toward college students, we are aware their cleanliness and
respect for university property can be lacking at times. We know there is a risk involved with
damage to the pods, however they will be in a somewhat public space, so proper usage of those
pods will be visible and monitored. It is also a high likelihood that students will attempt to get
around paying for their time and not respecting others time when they have reserved a spot in a
pod.

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Target Market Analysis

Our companys goal is to provide a comfortable and rejuvenating space for college
students to relax in between classes, take a nap during those five hour breaks, and remove
themselves from the stress that can be brought upon by being in and around campus. These pods
provide a place for students who are tired of strained necks from sleeping in the library chairs
and desks, or trying to rest on one of the couches without the fear of personal belongings being
stolen while asleep. In addition to providing that space, REMechanics will enhance student
awareness of the importance of sleep, what stress can do to your body and mind, and how sleep
can be relieve some daily stressors.
According to (Brown, et al., 2002) only 11 percent of students in their study met the
criteria for good sleep quality. They reiterated the commonly known result of college lifeincrease in stress levels. This study was done using 100 undergraduate students who reported on
the top five stressors of college students. The five most frequently stressors were, in order:
change in sleeping habits (89%), vacations/breaks (82%), changes in eating habits (74%), new
responsibilities (73%), and increased class workload (73%). Number one was change in
sleeping habits. There is a big change from high school to college when it comes to the average
amount of sleep hours each night, and when those occur. In addition to getting used to those
changes in sleeping habits, there is also a change in sleeping patterns during midterms and finals
when there is more school work that needs to be completed in a shorter amount of time (when
not properly prepared.)
We conducted our own online survey of 66 participants, 79% of which are full time
students on their sleep and nap habits, surrounding their campus life. They revealed that when
given the choice, that 37% of students nap once or twice on campus. This could result in

17

inconsistent or non-loyal consumers. The students that use it could only use it once or twice on a
particularly stressful week or as a novelty. Because its a new and exciting product, we expect
most students to use it once just to see what it does and how it feels. However, repeat and
consistent customers could be rare.
Many college students are now faced with paying their own tuition due to their parents
financial woes after the drop in the economy and loss of jobs. That combined with the tuition
increase, financial stress has been increasing in students. The number of students electing to live
at home and go to a nearby university and thus increasing to save money on room and board.
However, the distance between home and school is still great enough that those students dont
have the ability to take a quick nap in their dorm rooms in between classes.
Stress levels are continuing to rise in college students, it coincides with the increases in
costs, the difficulty of the job market after graduation- these all result in pressures from many
areas to do well in school and pile things on your plate. As a company that believes in the wellbeing of students and the importance of a healthy mind and spirit, these sleep pods will target
those students who want that extra breather in the middle of a day. A time to remove technology,
lectures, class notes, and everything that compiles the running To-Do List in every students
mind.

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Competitive Analysis:
With the REMchanics Bliss 182 sleeping pod we intend to reach a target audience of both
male and female 18-24 year-olds. There are very few competitors in the market. The two largest
are Metronaps EnergyPod (patent pending) and Yelo nap shop. While the Bliss 182 can be
compared to the EnergyPod and the nap shop, the Bliss 182 is unique in its own way. The
REMechanics competitors encourage power napping for work professionals instead of fully
restoring sleep and providing a better life balance to a younger demographic. According to
research our targeted demographic 40% of our target audience does not get the widely
recommended 8 hours of sleep per night and oftentimes suffer from extreme fatigue.
Metronaps brand image is one that is futuristic but professional. It seeks to reach
business professionals to optimize their workday through brief naps. The Metronaps EnergyPod
offers several add-on features including LED lights, privacy visor, and storage bins. Metronaps
focuses on the older demographics insufficient sleep and workaholism (Bruce 2015). This
company also heavily relies on word-of-mouth marketing, and only uses promotional content
once their pieces have been installed. According to the 2013 census, there are over 30 million
businesses in the United States. Of those 30 million, Metronaps occupies 0.0003% of those
businesses, and charges over $12,000 per pod installation. Metronaps also has nap
salons. These are business spaces that contain clusters of their sleeping chairs and charge up to
one dollar per minute of rest. These activations are not as popular as their personalized
installations in larger businesses across the country.
Yelo, a shop conducive for napping, opened in 2007. The experience is similar to the one
the Metronaps EnergyPod offers, but the shop has mood lit rooms for individuals to slumber
instead of pods. The rooms are equipped with comfortable chairs, dim lighting, and soothing

19

music. Yelo charges fifteen dollars for a twenty minute nap and twenty-eight dollars for a forty
minute nap. Unlike the Bliss 182, naps at Yelo are not permitted to exceed forty minutes. Yelo
has been welcomed widely among business professionals. In its first year, their napping saloon
booked revenue of $400,000 and revenue has grown an average of 23% each month
(Crapanzano, 2008).

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Marketing Objectives
The Bliss 182 has the potential to become the go to product when a student or
university employee wants to rest or take a quick nap to revitalize. With our target audience
including ages 18 to 24, our millennial image promotes REMechanics as the leading company in
providing unsurpassed on-the-go sleep relaxation for university goers.

Increase equity by receiving funds from a private equity firm

Projected sales ($14,100 per number of units sold- projected 20 first year)

Increase sales (begin with 4 schools and expand our market by doubling product
outreach)

Create brand awareness

o Expand on Social media platforms by 10,000 followers in 3 years

Return on investments
o We expect an ROI of 20%

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Positioning and Competitive Advantage

Positioning Statement:
For people ages 17 to 25, the Bliss 182 is the leading and preeminent sleeping place
available inside universities because of its numerous health benefits and exponential increase in
productivity.
Tag Line:
Bliss 182:
Revitalize, Energize, Maximize.
Our tag line links the Bliss 182 with the main benefits of the products and an
improvement after the usage of our services. The consumers who use the Bliss 182 are most
likely to feel Revitalized, Energized, and will Maximize their level of performance in the
subsequent tasks.

Competitive Advantage
Are naps more effective then caffeine? Dr. Sara C. Mednick would say they are due to
side effects caffeine can cause. Sleep deprivation is a leading health concern for young adults,
especially when talking about college age students. Caffeine can decrease memory
performance. So you may feel more wired, but you are also prone to making more mistakes.
Sleep issues and deprivation is a large problem in adolescents and college students. Dr. Medick
believes that daytime naps can be a way to help sleep deprivation and the subsequent health and
mental related issues that develop from that. It has been proven that sleep can help reduce stress.
And in college kids, change in sleeping habits is one of the top five sources of stress in a study
done using the Student Stress Survey (SSS; Ross, Niebling, Heckert; 2008).

22

College students are noted for obtaining insufficient sleep during the week and for
sleeping long hours during the weekend. (Brown et al, 2002). This can lead to poor academic
and work performance in addition to abnormal sleepiness during the school week. According to
this study only 11% of students who were surveyed met their criteria for good sleep quality. It
was also noted that students who varied their average sleep schedule by 2 hours when usually
obtaining 8 hours can experience attention, concentration, reasoning, and psychomotor
difficulties, in addition to increased anxiety and depression.
REMechanics sleeping pod will be college students way around the inevitable sleeping
problem that appears to be getting gradually worse as the universities work load is increasing.
Our mission is to provide a space for students to make up the sleep they often dont receive
during the evening.

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Marketing Strategies
Targeting: Identify and Analyze Target Market
As stated in an article by Brown Universitys Health Education department, college
students are among the most sleep-deprived people in the country. This comes at no surprise with
all the late nights and all-nighters that college students spend finishing up last minute papers and
studying for exams. What this sleep deprivation leads to is the diminishing ability to perform
cognitive functions such as thinking, learning and remembering, which are three of them most
important functions utilized by students. The Bliss 182 is designed to alleviate some of that sleep
deprivation, or just simply allow students to engage in and maximize the potentials of a power
nap.
By targeting both higher-learning educational institutions and student bodies alike, we
hope that our product will help put an end to sleepiness and improve the quality of students
cognitive skills and overall wellbeing.
Universities and Colleges:
Our first targets are universities and colleges; after all, they are the ones who will allow us
to use their premises to operate our Bliss 182 pods. One of the main goals of any college or
university is to produce students who are well equipped to take on the roles of productive adults
in society. Our mission at REMechanics would be to align ourselves with the particular goals of
any given university or college, and show them what a great asset our product would be in
helping them attain those goals. For example, Pace Universitys goal is to provide students the
opportunity to lift their lives and prospects. Our objective is to create thinking professionals who
are highly sought after as innovators and successful leaders, and who will positively impact
twenty-first century society. Since sleep is one of the most important factors in a students

24

ability to think, reason and problem solve, convincing them, or any university, that the Bliss 182
is an important resource in helping students attain those goals is almost too easy a task. By
stressing our product, and including the right price, we should find no trouble in getting colleges
and universities to lease our product.
The Student Body:
After colleges and universities carry our product on their campuses, we will also take on
the responsibility of making sure that students feel enticed to use, and continue using the Bliss
182. Even though our product is designed to be used by the entire student body, and even
university faculty if they wish, our biggest target would be the commuter student. Over 87% of
college students nationwide commute to campus, from either theyre apartment or family home.
What this means to us is that these students are farther away from campus, so their ability to take
naps between classes is limited. The Bliss 182 would provide somewhere safe and private for
these students to revitalize, energize and maximize. Our target market would be profiled by age,
geographic location, and the behavioral segmentation of benefits sought.
Age:
Since the main users of our product would be college students, age is one of the most
important target markets that well be focusing on. This age range is between 18 and 24 years
old, since this is the age of the majority of students who are enrolled in universities and colleges.
Geographic Location:
The geographic locations that wed be focusing our marketing on would be the areas in
which there are major universities and colleges. Our target market would not include areas such
as small towns that are situated a substantial distance away from major higher-learning
educational institutions, but at the same time, would include towns in which there are a great

25

number of college students living. In essence, these would be college towns and large
metropolis areas, such as New York City.
Benefits Sought:
The primary benefit of the Bliss 182 is providing a place where students can get the most
out of a much needed power nap. A private place where there are no distractions, so that a 30 or
40-minute nap can be all a student needs to continue and maximize his or her productivity
throughout the rest of the day. Our main target market in this instance will be the students who
seek this benefit from our product. We will also target the students who just wish to find a quiet,
secluded spot where they can really concentrate on studying or mentally preparing for an exam
or presentation that is not far in the future. It is rare to find such spots on a college campus,
because even in the quietest of places there can be distractions.

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Marketing Mix Strategies

Product:
We are REMechanics Corporation. We are offering a new product that has a broad
opportunity to grow and profit from an unexplored market place. We have created a sleeping pod
that will increase the productivity and performance level of students as well as other users. The
pod is known as Bliss 182. It was designed to achieve the maximum point of relaxation and
speed up the sleeping process for our customers. Its made for naps during the small breaks our
customers have throughout their daily routine.
The Bliss 182 stands for 1 pod, with 8 features, for you 2 get sleep. The eight features
are Beats speakers, electrical outlets, a comfortable headrest, locked cubby, peaceful alarm
clock, privacy screen, fan, and colorful soothing lights.
The pod was created using a lightweight design out of titanium, which offers long lasting
durability. The chairs cushion is made with the finest and premium leather, making it easy to
clean and offers the utmost support to users with a relaxing and comfortable memory foam
interior padding throughout the cushion and headrest. The Bliss 182 is adjustable for any height
and body type. The pod has integrated in the sides of the headrest a pair of built-in speakers from
Beats Co. The top and side of the pod rotates up and down as a door that creates a privacy
screen to allow maximum peace and noise cancelling from the rest of the campus. On the side of
arm rest is a three pong electrical outlet for the students to recharge their phones and computers
while theyre on campus all day. There is also a locked cubby on the side of the pod where the
students can place their belongings they dont need during their rest time and they can be in a
safe place free from theft.

27

The Bliss 182 protects its sleepers from distractions that lie outside of the pod. It also has
an integrated a fan system that allows the person a fresh air experience. The Bliss 182 is
equipped with a command control located in the side of the chair to set the waking alarm, play
music through the speakers, set their ideal light settings, and control the Fan inside the pod.
On the side of the pod, before the user is allowed to get inside, a screen will direct the
student through the payment on their app. The students must download the app and create a
profile and attach their credit card to it. They will then choose the amount of time they want to
nap for, and it will give them a QR code and the pod number to go to. The Bliss 182 has a QR
scanner on the side, they will place their phone underneath, scan, and the pod will turn on and
open, allowing the student to get inside and the time will start from then on.

28

Price
Pricing Schedule:
Time spent in the Bliss 182

Incremental Cost

Total Cost

10 minutes

$5.00

$5.00

20 minutes

+$4.75

$9.75

30 minutes

+$4.50

$14.25

45 minutes

+$4.25

$18.50

60minutes

+$4.00

$22.50

1 hour 15 minutes

+$3.75

$26.25

1 hour 30 minutes

+$3.50

$29.75

1 hour 45 minutes

+$4.50

$34.25

2 hours

+$4.50

$38.75

Every additional 15 min.

+$4.50

We plan to lease our machines to colleges and universities, starting out with four (Pace
University, New York University, Hunter College and Baruch College) at $7,800 for the first
year, which is $200 less than what our competitor offers. If they wish to renew the lease, it will
be $7,500 for every year after the first. You might be asking yourself why any institution would
want to pay such a high price to have a machine that would end up making us money in the long
run. The answer to that is simple, the college or university will receive a 30% cut of the fees that
we receive from students .We anticipate that the number of universities/colleges who lease our
product will double within the first two years.

29

In the way we set up our pricing table, there is a minimum naptime of 10 minutes with a
base cost of $5 and a $0.25 incremental reduction in cost for every time interval that follows, all
the way to the 90-minute mark. After 90 minutes, the standard cost becomes an additional $4.50,
which is still less than the base cost, but non-inclusive of the incremental discount.
We want to encourage naps of about 90 minutes, because human sleep occurs in periods of
90 minutes, and after that time, the body enters REM (rapid eye movement) sleep. This means
that the maximum time for an effective nap is 90 minutes, because waking up from a nap longer
than that time can cause disorientation.
Explanation of cost:
Unlike MetroNaps, we would be manufacturing our product in overseas, in China. This would
allow us to have a significantly lower manufacturing expense, which in turn would lead to a
higher net profit. We estimate the cost to manufacture our product in China to be around $1500
per unit (FOB). This figure is based on research of the cost to manufacture similar high-tech
resting chairs (e.g. massage chairs) in overseas markets. Since we are manufacturing in a
different country, we would also have to consider the shipping cost per unit, from any given port
in China, to the United States. Based on research of commercial shipping costs of large items
with similar weight and dimensions as our product, the estimated rate is between $10 and $100
per cubic meter. Once packaged, the dimensions of the Bliss 182 would be about 4 feet wide, 5
feet tall, and 6.5 feet long. Converted to meters, the size is about 3.42 cubic meters. This size,
times the researched rate of shipping, gives us an estimated shipping cost that is between $34 and
$342 per unit. Considering the highest possible shipping cost ($342), and the cost of
manufacturing the product ($1500), the total cost to produce and ship the Bliss 182 is estimated
to be about $1842.

30

The costs presented in our Income (P&L) Statement below are estimated at their maximum
amount (marked with an *), so there is a great chance that our expenses will be lower than what
we estimated.
Our revenue was estimated based on an average naptime of 90 minutes ($29.75), times about
5 times per day per machine, times 5 days, which is about $150 per week. This is what we
estimate the average revenue from machine usage will be for about 37 weeks out of the year
($5550 per machine), with the other 15 weeks (including summer months and holidays) earning
about $50, which will be about $750 per machine. These figures calculated together and
multiplied by 20 machines gives us a total estimate of revenues from usage of about $126,000.

31

Budget Estimation (first three years)

Amt. to be
Marketing Aspect

Invested

Product

$162,000

(Development, Production, &

Warranty/Mainten.)
Promotion

$360,000

Place

$1,413,360

(Shipping & Distribution, Storage,

Installation, etc)
TOTAL

$1,935,360

Budget Alloca-on
8%

19%
Product
PromoXon
Place
73%

32

Based on our calculations above, we will be requiring an investment of about 2 million

dollars to get our product up and running during the first three years. At the end of our third year,
where we should have a positive net income, we will begin the process of paying our investor.
With an estimated return of about $2,400,000, our investor can expect a return on investment of
about 20%.

Place
REMechanics initial launch will target local schools in the New York metropolitan area
and strategize to double expansion in a three-year term. The first four target schools will be Pace
University, Hunter College, New York University and Baruch College. The parts of the pods will
be manufactured in China. In order to make as much profit as possible, we want to keep our
production costs low. A shipment of 20 pods will cost around $6840. Once the parts are
produced, we are going to ship them to our warehouse/headquarters in New York where they are
going to be assembled. Since we are targeting schools in the New York City area first, our costs
for delivering the product to the schools will not be high. We plan on selling our product to a few
schools within Manhattan and spreading outward throughout the Tri-State area after the first year
of our pilot of the Bliss 182.

33

Promotion
In order to bump up sales and maintain that momentum, REM believes in promoting the
Bliss 182 efficiently and effectively. Introducing our product with a high-pitched market
penetration including advanced public relations, robust advertising and continuously building
brand awareness, will set up a foundation for success. Not only will we be able to develop a
personal feel to our customers, but also we will be able to obtain feedback, which will help
improve our product and services.
Social Media:
In todays society, Social Media has become one of the leading sources of product and
brand promotions. This vital marketing tactic increases the target outreach that companies try so
hard to influence. With the utilization of Facebook, Twitter, Instagram, Youtube, and our own
website, REMechanics will introduce the Bliss 182 in a fast, groundbreaking and eye-catching
technique. With our target audience being the millennials who are the majority of the socialites,
our company is at a strong advantage. Hitting media sites with a rapid penetration will
effectively create brand awareness and inevitably cause an upsurge in sales and craft customer
loyalty. Having a social media presence opens the lines of communication between your brand
and the consumer.
Manipulating the latest trend in social media will allow users to have a more interactive
and intimate experience. Tackling this with the popular use of hash-tags will endorse the Bliss
182 and build a perceptible experience. Users who take a photo of themselves using the Bliss
182 or creating conversation, with the hash-tag, #BlissSleep will have a chance to be featured on
one of our social media platforms and will be entered for a chance to win exclusive napping
minutes.

34

The Bliss Bonus:

REMechanics will introduce the Bliss Bonus membership. With this in effect, users
will feel important and more crucially, exclusive. When you first purchase a nap with Bliss
182, you will receive the Bliss Bonus Membership. With each individual having his or her
own user profile, REMechanics is able to keep track of every napper, and continue to deliver an
elite experience.
The Bliss Bonus membership card offers a wide array of benefits. Every time a
customer purchases a sleep interval, he or she will be granted a REM Reward. This point
system will give the sleeper an incentive to continue using the Bliss 182. For every 100 REM
Reward points, every customer obtains a 10-minute credit onto his or her membership card and
every minute equates to a half point.
In addition, each cardholder will receive a personalized pin number that he or she can
issue to their friends and family. With that pin, every time a new user registers under their use,
the cardholder receives a free 10-minute nap, with a limit of five recommendations a month.
Using the Bliss Bonus membership data, REM will hold a monthly contest that will
recognize the users with both the Longest Nap and Most Napping Minutes Purchased. The
winner, or winners, will win a fun prize, courtesy of REMechanics.
Mobile Connectivity:
There are over 7 billion people on Earth, and of those 7 billion, 4 billion own cell phones.
This network is something that simply cannot go unused. Introducing our Bliss mobile
application, users will be able to connect all of their social media accounts, reserve a time to take
a relaxing nap, and connect with REMechanics. For students, an App is the most convenient way
to tackle customer outreach.

35

Event Planning:
In order to help promote our product, we are going to throw a promotional party after our
first launch. Promotional parties or event parties are a great way to get curious customers
engaged with our product and have a great time using it. Studies show that a great amount of
customers who go to event parties and are engaged in a product end up purchasing or using the
products.
When guests arrive, they will have the option to write their email down at the door to
receive future exclusive offers. This will help us get the word out to already interested
consumers. The event will include free trials on our new Bliss 182 product, free give-a-ways
such as ear buds with our brand name on it to use during a nap. Customizable ear buds are going
to cost $595 for 500 ear buds. In addition, there will be ways that people who participate in
promoting our product will be rewarded with free nap points on a Bliss Bonus Card. Guests that
take pictures and upload them on their social media accounts with the hash tag #Bliss2015,
follow REMechanics on Twitter and Instagram, and will then be put in a raffle to have a chance
to earn free points. Overall, this is going to be a very effective way of getting our brand name out
into the public in a fun and interactive manner.

36

Evaluation- Control & Update

Performance Standards and Acceptable Deviation
We plan to lease five pods to each of our four target pilot campuses in New York City in
the first year. Total sales in one year is expected to be $282,000. The acceptable deviation is
approximately 15%, meaning that we would lease out three less pods and those subsequent rental
fees. Therefore, our total sales range from $239,000 to $324,300.

Contingency Plan
REMechanics will monitor performance of the Bliss 182, monthly by onsite reviews and
performance quality testing by trained staff. Financial audits will be done monthly for the first
fiscal year and quarterly following that by our manager that will report on the ROI and sales
reports per university. In the case the pods are not leased and accepted among college students as
expected, we plan to sell each manufactured pod for three times the manufacturing cost to make
up for production and marketing costs.

37

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38

Shipping Company Ocean Freight Rates Shenzhen/ningbo/shanghai/guangzhou,China To Usa Buy Ocean Freight Rates China To Usa Product on Alibaba.com. (n.d.). Retrieved April
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39

Contribution Percentages
The following team members contributed to this project in the following percentages:

Zaina Aitbenbella 16.67%

Harris Enerson -16.67%
Jamie Kalff- 16.67%
Andres Morales- 16.67%
Hillary Ravick 16.67%
Christine Singh 16.67%