MN5212 Management of R&D and Innovation

M.A Prasad Chaminda 10/9004 J.K.L.A.S. Jayakody - 10/9010 R.N. Wickramasinghe - 10/9041

Legal Assessment Marketing Assessment

 Marketing Plan & Strategy

Team Assessment Technology Assessment Operational Assessment Financial Assessment Business Plan & Strategy

New product concept Patentable Use existing technologies Easy to copy Planned to get patent protection under the Intellectual Property Act Brand name and trade mark are important to introduce Planned to reserved copy rights of those

Marketing assessment
Marketing Attributes
Market Partners Market size Market growth Product attribute advantages Relative selling price Existing channels of distribution Segment clarity Trial-ability Market research-ability Market knowledge of team

Value/Level
several small average extensive low strong defined easy average average

Five forces analysis

Bargaining Power of suppliers - High *Many suppliers *Less volume New Entrants Low *Patent protected

Industry Rivals - Low * No competition

Substitutes Low *Unique application

Bargaining Power of buyers High *New product *High price

Situation Analysis
Strengths * No competition *Patent Protection Weaknesses *Less experience *Inability work with higher volumes

Opportunities *Growing Market *International market

Threats *Immune to inflation *Technology changes

Market Segment Market Demographics

 Current Stationary Bicycle users for workout  Gym operators and public gyms  Initially Western province and Kandy  Later Island wide and international market  Adult male/female  Recognize the need to have physical activity in their lives.  Have incorporated some sort of exercise program in their

Behavioral Factors

daily/ weekly routine for the last several years.  Are willing to utilize green energy for sustainable environment

Market Needs
 Customization  Convenience

Market Trends
 Increased usage of fitness machines  Fading enthusiasm  Lesser additional time for exercising  Trend towards green energy

Customer Acceptance
 Awareness Programs  Demonstrations for lead adaptors  Exhibitions

Keys to success
    

Marketing product to customers Recruitment of experienced managerial talent Dedication and hard work Raising productivity Lowering overall costs

Marketing Objectives
 Introduction of Green Shaper to the market and

reach 25% of target market within first year.  Continue to make Green Shaper s image as a excellent assistant for workout in long term

Market Positioning
 Most effective environment friendly body shaping

assistant

Marketing Mix
 Product customized, 3 year warranty, after sale      

services Price Discount through credit cards, Easy payments Place Initially at every main town in western province, Kandy Promotion - Printed material, Tele marketing, magazines/news , e mails, web site People Motivated management, employees, innovative culture Process customer oriented Physical Experience center, user guides, brochures

Sales Forecast

Marketing budget and Implementation plan

Start Date End Date Budget Responsibility 1/1/2011 7/1/2011 6/30/2011 12/31/2011 750,000.00 750,000.00 1,500,000.00 Manager -Marketing & Sales Manager -Marketing & Sales

Marketing Activity Advertising Advertising Campaign #1 Advertising Campaign #2 Total Advertising Budget PR Pamphlet Completion Total PR Budget Direct Marketing Marketing Plan Completion Total Direct Marketing Budget Web Development Website Completion Total Web Development Budget Total

1/1/2011

3/31/2011

100,000.00 100,000.00

Manager -Marketing & Sales

1/1/2011

2/28/2011

300,000.00 300,000.00

Manager -Marketing & Sales

1/1/2011

2/28/2011

100,000.00 100,000.00 2,000,000.00

Manager -Marketing & Sales

Contingency Plan
 Difficulties and Risks: Problems developing a sufficiently large customer base Significant economic downturns (high inflation)  Determining that the business can no longer

support itself  Need to liquidate equipment to cover liabilities

Assessment
Team Attributes Entrepreneurial experience Team skills and project requirements Team stability Timing for team External support Technical network Technical development support Business network Business development support Value/Level average average strong Good extensive extensive extensive average average

Assessment

Technology Attributes Performance advantage Cost advantage Technology platform Range of R&D group expertise Development strategy and roadmap Stage of development Technical feasibility issues Complexity of development

Value superior average extensive extensive developed Idea/Design clear low

Road Map
Green Shaper for Stationary Bicycle Green Shaper with high capacity energy storage Green Shaper for Treadmills Universal Green Shaper

2010 Q4

2011 Q2

2011 Q4

2012 Q2

Operational Attributes Critical components measurable Skills required to produce Systems required to produce Adequacy of supply base Sufficient quality exists in product Reliable processes established for production Scalability and time sufficiency Flexibility to product changes

Value/Level yes specialized standard strong high high less high

Financial Attributes Products short-run cash flow potential Products long-term cash flow potential Products overall risk level Overall financial value of product Access to financial markets and funding sources Knowledge of total business costs Knowledge of product demand elasticity Knowledge of major financial risks in product development and production

Value/Level low high average average limited known Partially known known

Start up
 Green Shaper Solutions Pvt. Ltd.  R&D, Marketing and After sale services  Manufacturing & distribution outsourced  Total funding requirement 5 million Rs.  3 million Equity and 2 Million Loan

Start-Up Funding and Balance Sheet Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Equity Liabilities Current Borrowing Long-term Liabilities Total Liabilities Equity Planned Investment Founders Total Planned Investment Loss at Start-up (Start-up Expenses) Total Equity Total Equity and Liabilities Total Funding

500,000.00 4,500,000.00 5,000,000.00 0.00 4,500,000.00 0.00 4,500,000.00 4,500,000.00

0.00 2,000,000.00 2,000,000.00

3,000,000.00 3,000,000.00 500,000.00 2,500,000.00 4,500,000.00 5,000,000.00

Break Even Analysis

 Selling Price 29979.00 Rs.  Profit Margin 10%  Break Even Units - 1502

Pay Back Period

 3 Years and 9 months

Profit Forecast

Organizational Structure

Test Marketing
 Identified Lead Adopters

Product Recall Strategy

 Customer database  Barcode

Partnerships
 Arpico/Abans/Tele Scene Marketing for

distribution

Thank You