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EVAP™ Launch Deck

EVAP™ Launch Deck. EVAP. James Marshall. Contents. Executive Summary Market Need - Pain Point Introducing EVAP Alternatives to EVAP Pain Point Solved Technology Inside Competitive Analysis Channel Strategy Channel Map Pricing Strategy

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EVAP™ Launch Deck

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  1. EVAP™ Launch Deck EVAP James Marshall

  2. Contents • Executive Summary • Market Need - Pain Point • Introducing EVAP • Alternatives to EVAP • Pain Point Solved • Technology Inside • Competitive Analysis • Channel Strategy • Channel Map • Pricing Strategy • Customer Value Proposition {Telco, Insurance & Mass} • Channel Pricing & Availability • Channel Marketing Options • Marketing Calendar • Marketing Assets • Messaging & Packaging

  3. Executive Summary

  4. Executive Summary • Current business situation • FY13 Launch Date 2-1/2 Q1- 2012 • 1H’13 Insurance Partnerships, T-2 Telco & BuyCell Placement, Distribution, Sell-in, Launch, Awareness, • Category External Drivers • Rapid Smartphone Adoption • Category Pillars • Mobile Phone Insurance Company Partnerships, (SquareTrade , Protect Cell, LSG, Assurian) • Placement + Distribution at Independent Telco’s then T-1 and T-2 Telco’s • Category Roadmap • CY13 EVAP: 2 NPD, 0 EOL • CY13 EVAP Bulk Pack Shipper for bulk Purchase/s. • Business Outlook FY2013 ($?, 50% GM) • Penetrate Consumer market = Independent Telco (US/EU), T1 and T-2 Telco, T1-Retail (US/EU/CA), E-tail, Global Expansion. • Partner with Third Party Mobile Insurance providers (SquareTrade, GWC, Protect Cell, (LSG EU Based) to achieve 1=1 Attach Rate.

  5. Market Need – Pain Point

  6. 5 Billion Smartphone users in the world, circa2015

  7. 81 percent of Smartphone users never turn off their devices . {According to recent study by LifestylesGroupin the UK}

  8. f f f v f f One Billion of us are connected Like never before f f f f f f f f f f f f

  9. {2out of3} People will get their handsets wet Study conducted by MSNBC

  10. 5 out of 10 Smartphone Accidents happen around the home {According to www.Squaretrade.com}

  11. 60 % Mobile Insurance Claims are due to water damage. Gartner Data

  12. Cost ofreplacing asmartphone 700 Dollars

  13. 5 billionSmartphoneusers in the world by 2015 81% of Smartphone owners never turn off their devices 1billion facebook users 2/3 of Smartphone users will get their devices wet 60 % of mobile insurance claims are based on water damage 5out of10 Smartphone Accidents happen at home 700 Dollars cost to replace a smartphone.

  14. We have a lot of smartphones, we are always connected, we have a habit of getting them wet, and, they cost a lot of money to replace!

  15. So what are people doing about it? Buy a new or used handset $250 - $700 Repair it $250 Go prepaid $100 Take out a new contract >$250 Reuse an old phone ;-( OR…

  16. Introducing EVAP

  17. Pain Point Solved Evap rescues your wet electronics before its too late. Usual Dry time 6-24 hours 10x Faster than Rice or other at-home-remedies. Increases your chances of successful recovery up to 700 times. Single Use Disposable Aluminumized/Mylar Pouch Neatly packed with 3 vacuum sealed healing kits stuffed with 20 Grams of Molecular Sieve each.

  18. EVAP NEW! K39723 EVAP : Bag + 2Tyvek wrapped Pouches containing 30 grams of Molecular Sieve APG • Value • Rescue your wet electronics before its too late! Once your item has been sealed in the EVAP bag, simply wait until the humidity indicator signals , I’m ready! • Features • Aluminized Mylar Bag – Allows the least amount of moisture. • In as little as 3 hours and No longer than 2 days (depending on how soaked your device was) it will come out of the bag EVAP’D. • 2- Vacuum Sealed Tyvek Pouches containing 30 Grams of Molecular Sieve – APG Grade 13X (High Grade) • Available Jan ’13

  19. Technology Inside

  20. APG • Grade think bath t0wel metaphor • Molecular Sieve • Silica 1st • Molecular Sieve • Mono- • Clay 3rd • Rice 2nd 4th Adsorbent Ranking 5th

  21. Competitive Analysis

  22. Channel Strategy

  23. Parallel Paths of Success Q1 ‘13 Launch EVAP and seek placement within Tier – 2 Telco & Independent Wireless Dealers while simultaneously establishing partnerships with Third Party Wireless Insurance Providers. This strategy will greatly enable the chances of EVAP becoming Category leader for wet electronic rescue kits. Press Announcement – CES Jan. 18, 2013 General Availability - February 1, 2013 How many headsets Where Next essential

  24. Channel Map

  25. Channel RoadMap

  26. Pricing Strategy

  27. Pricing Strategy Kensington are committed to creating this category,Zagg is our role model.Kensington are committed to making this a highly profitable category for channel partnersConsumer focus groups have given us a price positioning range of $19.99 to $29.99 for EVAP (source EVAP)Kensington are committed to delivering a strong Psychological ‘Value’ proposition for strategic insurance partners, $19.99 delivers that for them.

  28. Customer Value Proposition{Telco, Insurance & Mass}

  29. Combine all 3 value prop slides into one simple chart

  30. Value Prop : Insurance Compelling for Kensington 1-1 Hardware/Accessory attachment at P.O.S. Distribution Brand Recognition Compelling for InsuranceProviders Want EVAP because it solves the pain point of customer claims for damaged phones of which 60% are due to water damage Drive Demand and interest for their product or bundle. Bundled as part of customer reward or follow-up program Instant $20.00 value add on that Insurance companies use to incentivize their customers to renew service or lure new customers

  31. Value Prop : T-2 Telco & Co-ops • Compelling for Kensington • Using the install base of Buy-Sell Co-Op to secure the next level of placement, volume, while uncovering new revenue streams and brand awarenessamongst Tier – 2 Telco. • Gain traction for phase 2, Tier-1 Telco launch. • A)Leveraging the Tier-2 Telco and wireless BuySell Co-Op experiences to move up to the next install base in our “stepped strategy” penetrating Tier-1 Telco. • B) By working with Tier 2 Telco to provide the highest level of customer service and high-end wireless accessories. • Compelling for T-2 Telco & Co-ops • Adds value to the in-store customer experience and overall level of customer service. • Gets their customers back online cheaper and easier than ever before. • Customer data interruption is minimal and inexpensive compared to todays alternatives • Increased profits & margins • Backed 100% by a trusted brand and valued partner in Kensington. • Pure profit, EVAP does not replace the sale of any other P.O.P accessory sales. • Best Electronic Rescue Kit available today. • Reduce ARPU (Average Return Per Unit Sold) • EVAP is a product that yields very low returns due to its nature.

  32. Value Prop : Mass Compelling for Kensington Phase 3 of “stepped strategy” where volume, brand value & brand recognition have been validated through the earlier phases of the strategy where the customer bases were incrementally smaller. 2. Using this “step strategy” to conquer our next phase, Global Expansion. Compelling for Mass Consumers demand Hot ticket items. Thus Category Captains are highly coveted by mass-retailers. Margin % increase. Not selling the wrong product, just the wrong brand. At $ 20.00 I can guarantee a 60% margin increase.

  33. Channel Pricing & Availability

  34. Channel Pricing & Availability MSRP $19.99 KOB 1 $ Channel Margin = 50% KOB 2 $ Channel Margin = 40% Estimated GA 1st February

  35. Channel Marketing Options

  36. Channel Marketing OptionsEffective ways to reach out • WirelessDealer Magazine • Advertisements – Print, Web, E-mail. • Print Advertising • Placement between pages 2-50 • 2 Page-Ad Spread • 5 Email Marketing Campaigns • Prints priced from $850.00 for basic and scale up to 25 K for Cover Story. • Eblast Marketing Services • In between print Adds, the email blasts touches 45,000 independent wireless dealers • Eblasts priced to range from – 5 /$ 1,300.00 and scaling up to 25/$ 3,000.00. • RSE – Retail Search Engine • Advertisers can post company profiles and products inside the RSE, used by cellular, electronics and audio retailers to locate products and vendors.

  37. Marketing Calendar

  38. Marketing Calendar : Conventions and EXPO’s

  39. Marketing Calendar : Events 2013

  40. Marketing Assets

  41. Marketing Assets Independent Telco & Insurance Marketing Calendar • 4 Sided Spinner • Pre-loaded w/ iPhone 5 cases, S3 cases, Proximo and EVAP. • Designed with Independent Telco’s in mind. The 4 sided spinner brings much more than versatility. • Minimal footprint, will not impede where floor space can be extremly limited. Rotation adds to its versatility as it can be placed anywhere on a T-2 Telco sales floor while remaining in view, and accessible in corners, against walls or just in the middle. • Product Highlight Quick Fact Cards • For all T-2 Telco Sales Reps, who might have a tough time keeping products and their features in order or even mentioned. • Promote the Kensington Brand and individual product while empowering the sales rep to share the solutions offered by a particular Kensington product. The card also promotes higher conversion of sales when the product details are shared how intended. • Trio Sales Brochure • Spotlighting EVAP while highlighting the Value-Adds it present to all Partnered Wireless Insurance Providing…Facts, Features, EVAP specific Benefits, How To’s, and plenty of high quality product and lifestyle Imagery

  42. Messaging & Packaging

  43. How it works: Unzip vacuum sealed EVAP Bag Place Electronics inside EVAP Bag with all 3 Tyvek “Rescue Pouches” inside. Re-seal the bag vis-à-vis the zip. For best results allow 6-24 hours For soaked items allow up to 48 hours. 700% more effective than rice at removing water. Also great for preventing damage in areas of high humidity or close coastal proximity.

  44. Self-contained display shipper • Pre-display quantity - {PDQ} = 8 Per • Universal hang tab will accommodate EU and US Markets. • QR Code on Shipper Header • Its configured to stand alone, on a shelf or hang from peg. • 3 in 1. ½ the size @ 8 to 1 ratio with 60% Margin.

  45. Thank You Financial Analysis

  46. Wireless Carrier Insurance Channel Map : Wireless Insurance Providers Third Party Wireless Insurance Providers Asurian Provides 90% of wireless carrier insurance LSGLifestyles Group UK Global Warranty Squaretrade Verizon ProtectYouBubble {Assurant INC} T-Mobile WorthAveGroup At&t Sprint Ensquared GoCare Safewear ProtectCell Consumer Why they need it? The problem with the latest and greatest smartphones is that along with their bright screens and spectacular features comes a hefty retail price tag that averages $ 700

  47. Channel Map : Tier-2 Telco Wireless Resellers Stratagy for leverage: Develop geographic market closest to home, eventually expanding as we develop experience. Tier-2 Telco consists of these wireless channels. Tier – 1 Distributors {National} Tier – 2 Distributors {National & Regional Wireless Retailers or Distributors} Tier - 3 Distributors {Small independent Regional & Local Retailers BuyCell Co-Op {Group of organized independent Verizon Wireless resellers} • Strengths • Customer Service • # of locations • Weaknesses • Employee morale issues. • Communication/language issues between headquarters and Taiwan. • Version control issues among Caribou and MEDUSA product lines. • Opportunities • Expansion • Brand Value • More Efficient Supply Chain • Margin increases • Threats • Internal : Ability to attract and retain qualified employees, Access to capital, and full-fledged product road maps • External : Competition & Pricing

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