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Situation Analysis

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  1. Situation Analysis • You have not had a chance to charge your phone, but you grab it and try and make a call anyway and…the battery dies! • How many times has YOUR phone died when you NEEDED it the most?

  2. Situation Analysis • The market has requested a self-sufficient energy pack which would make the mobile phone truly mobile. • Motorola and Freeplay have cooperated to introduce the FreeCharge, enabling phones to be powered anywhere, anytime.

  3. Situation Analysis • Designed for people on the move who want to stay in touch: • Business trips • Car trips • The outdoors • Hiking • Boating • Fishing • Camping

  4. Situation Analysis • Essential tool in emergency situations: • Emergency calls • Last minute plans

  5. Situation Analysis • Mobile phones are consistently chosen as the product to be powered by a self-sufficient generator • 2 out of 3 cell phone users would be interested in buying a self-sufficient phone charger • Interest is great among heavy users • 1 out of 3 mobile phone users worry about their mobile phone running out of battery when they are in a place they cannot recharge it

  6. Situation Analysis • Freeplay conducted 20 focus groups in the USA, Germany, UK, and South Africa to understand customer reactions to mobile phone chargers • Revealed: • Frustration exists with battery performance • Demand exists in both developed and developing countries

  7. Situation Analysis • The FreeCharge is the world’s only self-sufficient energy pack for mobile phones • For under a minute of winding, the FreeCharge provides energy for a 3-4 minute phone call or for several hours of standby • FreeCharge is to provide assured contact, safety, and convenience.

  8. Marketing Mix: Product • The Motorola Freecharge - the size of a sunglass case with a fold-out handle, can be cranked before or during cellular phone conversation - 11.5 ounce, only twice the size of the average cell phone - consists of a small generator unit which can be connected to your phone via plug-in module

  9. Marketing Mix: Product - 45 seconds of winding will allow 4-6 minutes of talk time and SEVERAL hours of standby time - the more you wind the more power you put into the unit - equipped with LED change input indicator, which tells you how fast to wind and if energy is left in the unit - built to fit into the palm of you hand and be large enough to comfortably energize the unit through a robust winding handle

  10. Add that up and here is what you get:

  11. Freeplay Energy Group • Founded in 1994 and headquartered in London • Leading developer of self-sufficient energy technology • Incorporates multiple energy sources, including solar panels, rechargeable batteries and patented wind-up capabilities • Working to distribute its products worldwide by joining with companies such as Motorola. • Since 1995, has distributed over 2.5 million radios and flashlights using the Freeplay technology

  12. Marketing Mix: Price • Price is consistent with consumer expectations, based on market research • (Heavy Users, New Jersey, September 2000) • 2/3 of these people said they would “definitely buy” at $79.95 • Prices mentioned by target consumer groups ranged from $49.95 to $125.00 • Suggested retail price is $65.00

  13. Where and When? • Expected to Arrive in stores this month, April 2002 • Expected in UK in June

  14. Target Market • Designed for busy people on the go who want to stay in touch on business trips, car trips, in the outdoors, hiking, boating, fishing, camping, or wherever users are without electricity but are willing to crank

  15. Target Market • Outdoor enthusiasts (recreational market) – do not always have easy access to electricity. Independence from batteries gives them the added safety and convenience of knowing that they can keep in touch at all times. There are 189 million outdoor enthusiasts in the USA alone • Emergency concerned households – believe mobile phones are necessary safety devices in weather and other emergencies, but are concerned about battery failure

  16. Target Market • Frequent travelers – are often frustrated by an inability to use their chargers in foreign countries and by shortage of available time at stationary electrical outlets • Developing markets – offer opportunity where electricity availability lags behind mobile phone penetration

  17. Target Market • Today more than 110 million people are cell phone subscribers • Scarborough's market trending data shows that in 1999, slightly less than half (48 percent) of American adults owned a cell phone. In 2000, more than half (55 percent) of U.S adults owned a cell phone and in the latest 2001 study, cell phone penetration numbers are up to 62 percent

  18. Unique Selling Proposition What makes Motorola’s FreeCharge different from the competition?

  19. Unique Selling Proposition • It is the only cell phone charger that does not need an external energy source to recharge and store energy

  20. Unique Selling Proposition What the competitors are offering

  21. Unique Selling Proposition Nokia BPS-1 • Benefits: Small, Light-weight, and slim

  22. Panasonic Unique Selling Proposition EB-BSD35 EB-BSD75 EB-BSD93 Benefits: extended talk and standby time, super slim,

  23. CTR-10 (travel) Ericsson Unique Selling Proposition BUS -11 BDA-10 Benefits: extended use, ultra slim, compact, use with laptop, high capacity, travel chargers

  24. Unique Selling Proposition All competitor’s products require an external energy source!!

  25. Motorola’s Competition • Nokia is the #1 manufacturer of cell phones • Motorola is #2 • Nokia has 40% more market share than Motorola • However, Nokia does not currently offer a product equivalent to the FreeCharge

  26. FreeCharge Competitors • Aladdin Power • Portable generator • Needs no external power source • Charge with squeeze of hand • 1.6 watts/90 cranks a minute • $59.95

  27. FreeCharge Competitors • Electric Fuel: Instant Power • Lightweight, disposable battery • Charges cell battery 3 times • Connects to phone through Smart Cord • Only buy Smart Cord once, but must buy replacement batteries • Once opened, good for 2-3 months • $14.95 with $9.95 replacements

  28. SWOT Analysis Highlighting Advantages and Disadvantages, in order to maximize Strengths and Opportunities, and to minimize Threats and Weaknesses. All focused on helping a manager strategize.

  29. STRENGTHS • Motorola and Freeplay brand names • Uncharted market, with little competition • Free Charge only works with Motorola products (Boasts their Sales) • Fits in the palm of a hand, which is much smaller than a usual transformer(semi-conductor) • Two Batteries (Internal and External), so there is always a supplemental energy source. (Physical crank and regular battery support) • Top prize in Las Vegas, as the 2002 Consumer Electronics Show Innovation Award winner.

  30. WEAKNESSES • Weight and Size – (11.05 ounces = 2 times the weight of a normal cell phone) • Only accessible in Motorola Phones (Until July) • Cost – Up to an additional 80 dollars • Cranking is physical, but the trend of the world is toward less physical labor. • Inconvenient – Not for lugging around as a side hip pocket accessory.

  31. Con’t WEAKNESSES • Motorola Sales • 2000 = 10.1 billion • 2001 = 7.3 billion • 2002 = ? • Net loss in 2001 of 1.2 billion • Motorola Stock trend is on a decline • (As seen to the left)

  32. OPPORTUNITIES • Sale Trends of Communication Equipment • July and August = 6 billion a month • After 9-11 drop to approx. 3.6 billion a month • Slowly the trend is coming back, and its predicted that growth will continue and increase to about 15% more in July/August 2002. • With more Cell phone use, comes more possible need for Free Charge.

  33. Con’t OPPORTUNITIES • Market – Hiking, outdoors, tirps, and people on the go. • More of a “nice to have kind of accessory” • Europe is less focused on convenience, and they are more accustomed to wireless. • Hence, they can’t risk having no energy • Africa – 20 to 30% electrification. • Service providers need a supply of energy and capability for connection • Hence, Opportunity in Foreign Markets

  34. THREATS • “Six minutes of talk time is more of an oops, I ran out of time accessory.’ I don’t think it will replace the generic charger on the market.” stated Keither Nowak, Nokia. • Hence, threat  any enhanced battery that can last longer than the average battery. • It threatens the physical necessity of FreeCharge

  35. Gas power Motorola, NEC, and Sony Charged for a month Only a little larger, and heavier than the normal battery Estimate that 200 million will be in use by 2010. Solar Power 2 hours of solar charging equates 18 minutes of talk time. Sunpower Systems Spectron – type of battery Con’t THREATS

  36. Thank You… • We will be happy to answer any questions.