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Oyster Key Fobs and Commemorative Cards

Oyster Key Fobs and Commemorative Cards

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Oyster Key Fobs and Commemorative Cards

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  1. OysterKey Fobs and Commemorative Cards

  2. Work required • Prepare and present detailed business model and project plan, for: • Oyster card key fobs • Commemorative Oyster cards

  3. Key Fob Concept There are at least 3 essential items people carry every day: • Keys • Wallet • Mobile phone In a world of disposable, designer fashion, functional items have become highly customisable and self-expressive “As the explosion of the mobile phone ring tone market proves, consumers are very interested in customizing the routine aspects of their daily lives” Steve Turner is the Marketing Manager, Texas Instruments RFid Systems

  4. Oyster wallets In addition, many people carry their Oyster card in a separate wallet that can be highly customised Top level research suggests that women are more likely to carry a plastic Oystercard holder because they feel more vulnerable and don’t want their wallet to be on display as they leave a station – by contrast, keys are often carried as a means of defence. Men on the other hand, are more likely to keep their Oyster card in their wallet, as they don’t want another thing to carry.

  5. Contactless Key Fobs It is easier to reach into your pockets and grab your keys than to grab one of your many smart cards from your wallet….while you may forget your mobile phone when you leave home in the morning, you probably wouldn't get too far without your keys. .. For many users a key fob is a visible and proudly displayed token of their membership or affiliation with a club, company or organization Andreas Lübeck, Business Development Manager Secure ID, ACG Identification Technologies Many retail card issuers are moving toward a Key Fob and moving away from fighting for wallet share. ExxonMobil has issued more than 7.5 million SpeedPass tokens worldwide

  6. The Oyster key fob • Carry your Oyster card on your keyring • Offers tourists a souvenir as an Oyster card • Express your personality • Safer and quicker than taking out your wallet • Harder to lose and makes keys harder to lose • Collectible • Helps you travel all the way home

  7. Concept Development Pay as you go card only, no photocards. Can be registered and value can be transferred Product Details Revenue per sale: £1 oysterisation 20% distributor margin (£0.38) 8% royalty (£0.12) @ 60% of current sales: £1.8M @ 5% of current sales: £150k Retail price: £4.99 to compete with: £3.00 for an Oyster card £3.50 for a LU key ring Cost to design, manufacture , package and deliver: £1.50 Pricing Revenue Distribution & Marketing Poster marketing Existing Oyster distribution network Currently responsible for 40,000 cards sold per week 10% retailer margin available as opposed to current 2%

  8. Product Concepts

  9. Sales Forecast Currently 40,000 cards are issued per week through the agent network. Estimated sales of key rings will vary depending on: • Increased retailer margin • Distribution • Marketing and communications • Manufacturing quality Worst case scenario, 5% of current sales* Revenue = £150,000 £12,000 Oyster royalty** £38,000 Oyster margin £100,000 oysterisation fee Best case scenario, sales are 60% of current sales* Revenue = £1.8M £144,000 Oyster royalty** £458,000 Oyster margin £1.2M Oysterisation fee *Excludes effect of Olympics license ** This may be lower if a shared royalty is required with TFL

  10. Critical Success Factors • Product quality, functionality and reliability • Product design • Point of sales materials • Launch marketing support • Depth of distribution • Flow of additional designs • Incorporation of additional technology into key ring • Balance reader • LEDS that flash with current

  11. About the manufacturer • Lewis Kennedy Partnership • Manufacturers of badges, key rings, children’s toys since 1991. • Manufacture over 20M pieces a year using a variety of materials for clients including Unilever, Comic Relief, Sainsburys, Asda, M&S, Tesco and Barclays • £7M turnover

  12. Next steps • Review distribution model and price point with retail contacts • Create test products • Gain approval from TFL / Other stakeholders • Negotiate manufacturer contract • Negotiate for rights to roundel, Olympics and other partner brands • Create marketing plan for launch • Launch • Roll out new designs