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Find My Keys
GPS Tracking Technology
HDM Marketing
Marketing 3300.009
The University of Texas at Dallas
Developed By:
Jason Harris
Noe Munguia
Cheikhou Diallo

Table of Contents
Introduction...3
Product Description...3
Marketing Objectives....4
Market Research....4
Product Design...6
Pricing Strategy and Cost Structure...7
Channels of Distribution........8
Promotion Strategy9
Appendix..11

Find My Keys Marketing Report

Introduction
Its 7:45 in the morning, and you are running late to class. Somehow, you slept in longer
than usual and you are scrambling. Quickly, you grab your wallet, then your phone, maybe a cup
of coffee and start to head for the car. However, as you are searching your pockets, you realize
you cant find your keys. You ask yourself, Are they on the counter? No. Did I hang them up?
Nope. Maybe they are in stuck in the couch? Not there either! Today just isnt your day, and
even worse is that today is test day. Its all happened to us before, and in many instances at the
most inopportune times. This is where Find My Keys comes in.
Product Description
Find My Keys is a product and service that will help you track and locate your missing
keys. Using GPS technology, Find My Keys will always track your keys so whenever you cant
remember where you placed them the day prior, all you need to do is open the app on your
smartphone, press the locate me button, and in seconds it will show you on a map the general
vicinity your keys are in. So if you are worried someone may have found a way to steal your
keys, or that you left them in the door as you were unlocking your house, the app will give you
the peace of mind to know that they are either in your room or the bathroom across the hall. And
if that isnt enough for you, it will make a beeping noise to help you locate it. All that is needed
is for the consumer to come to our kiosk where we install the chip in their keys and, once
activated, the customer can locate their keys with the smartphone app.

Market Objectives

Our goal as a business is to use a penetration pricing strategy in order to generate enough
awareness among consumers in the market to purchase our services; our objective is to obtain
300 customers by the end of the first month. This number of clients would allow us to barely
break even because of all the high initial costs, but the low initial prices will allow us to get a
greater number of consumers or, early adopters, to purchase the product and subscribe to our
service. If we get the same rate of new customers, we are looking at a net profit of about
$125,000 at the end of the first year. Our target market is young adults from 18 to 29 years old;
according to our survey they were the most interested by our service. Due to the technological
nature of our service, our target market is the younger generation whom are familiar with the use
apps, a necessary skill for this service.
In addition, our service will help improve the quality of life by allowing people to save
money in case they lose their keys. Not only can our service help save money but it may also
bring peace of mind to the consumer; our subscribers will know that if they cant find their keys,
they can simply locate them by logging into the Find My Keys app. Being late for a meeting,
missing an appointment, or spending precious time searching for misplaced keys will be a thing
of the past with this service.
Market Research
When beginning the research experiment, of course we had three options from which to
choose, and we were drawn to either surveying 10 friends or conducting a focus group. After
some thinking, we landed on the survey as we believed that ten different people can give us a
wide array of data for us to analyze and extrapolate. The first two questions were demographic
based, and we felt that this was the best way to get an idea of what type of person or age group
would respond to our service and product. For example, if we felt that from the information we

gathered that females responded best and would be our main target, then our advertising would
be aimed towards the female market.
Next, we tried to get an idea of how many people would even find use in our service, and
luckily, 9 out of the 10 people surveyed had lost or misplaced their keys in the past. We then tried
to test the frequency of the surveyors on how often they misplaced their keys and once again our
results were positive. While none of the people we surveyed misplaced their keys on a weekly or
daily basis, 30% had misplaced them at least once a month. 50% misplaced theirs less than once
a month, which may sound discouraging, but because we had an option for those who have never
lost their keys, that means that the 50% have lost their keys before.
Furthermore, when the surveyors did misplace their keys, 40% of them took 10-30
minutes to find them. Now we dont know if the people who took our survey were
inconvenienced when they couldnt find their keys, but it can be inferred that they were on the
way somewhere or else they may not have noticed that they couldnt find their keys. With our
service, we can ensure that those people could find their keys quickly and save them precious
time so they may get to where they need to go.
Another key factor is saving our customers money. The goal is not only to help someone
find their lost or misplaced keys quickly, but to also help give our customers the ease of mind to
know that they wont have to replace their keys, which could definitely hurt their wallets. 30% of
our surveyors replacement keys could cost anywhere from $50-$199, and 10% stated that their
replacement would be $200 or more. We believe that with a competitive price, customers would
possibly save 50% or more by using our service to locate their keys as opposed to spending
hundreds of dollars to replace them. Even better, 100% of the surveyors were interested in our
service.

Now, in order to better serve our customers, we wanted to give pricing options. The ones
we settled on were a flat annual rate, a quarterly rate and a monthly rate. By essentially doing a
type of subscription service similar to OnStar or Sirius XM Radio, we needed to see what type of
pricing option we would promote the heaviest. We found that every one of our surveyors
preferred an annual rate the most out of our three pricing options. Because of this, we decided to
just go with the annual rate and not offer the other two pricing options. This would be good for
us as it would ensure that we would be receiving payment for the year as opposed to having to
estimate how much money we would be making from the monthly or quarterly subscribers as
well as being a great value to our customers.
We also asked our survey takers the most they would pay for the service to get a good
idea what price point we could charge to gain a profit and keep our consumers satisfied with the
price. Lastly, for possible future expansion we asked our survey takers on a scale of 1 to 10 how
interested they would be in us expanding our brand by adding other products to help locate
common misplaced items such as wallets or other important everyday items; 70% responded
with a 7 or higher interest. With this, we know the demand can be there and we just have to tap
into the right market to further maximize our profits.
Product Design
The product is composed of two parts: the chip and the receptor. The chip will be very
light and be three to four times smaller than a penny. It will be fixed to the item that will need to
be located. Due to its very small size, it will be very easy to be place the chip inside most recent
car keys. The whole process should not take more than 5 minutes. Regarding older keys which
cannot be opened, the chip will be fixed on the plastic portion of the keys.

The receptors will be placed in populated areas, depending on network coverage

availability. The customers will be able to locate whatever they want, simply by logging in the
Find My Key App with a personal username and password. By a process of triangulation with
the receptors, the app will be able to locate the lost item in seconds by showing the distance that
separates you from the item and which direction you should head to.
Pricing Strategy and Cost Structure
Although there are many costs associated with its distribution, our product is intended to
yield a high profit margin. Our purpose is to provide a valuable service and a high quality
product to our customers at an affordable price. We will implement a penetration pricing strategy
to gain market share and appeal to the mass market. The product will be priced at $34.99 for the
installation of the GPS tracker. Find My Keys will provide a subscription based app that is
used to track the location of keys or any other device in which the GPS may be installed. The
penetration pricing comes into play with the subscription fee; those who adopt our service in our
first month of operations will pay $19.99/year for the tracking service via the Find My Keys
app. These customers are guaranteed this annual rate for as long as they keep the service. Anyone
who subscribes after the first month of operations will pay an annual rate of $24.99. These prices
were determined in accordance to costs that need to be covered and the prices were set after a
consumer survey was issued.
Many costs are associated with this product; some of these costs include implementation,
fixed, and variable costs. The implementation cost, or sunk cost, is a $2,000 deposit for a kiosk
in a local mall. The rent for the location itself is estimated to be $900; this is a recurring monthly
cost. Another fixed cost for the first three months of operation will be advertising via roadside
billboards. We have scouted out three locations that would yield very high visibility to the public,

and each of these locations would cost $3,150 per month. The variable costs cover the labor
required to run the kiosk and the cost of the materials needed. The hours of operation are
estimated to be 11 a.m. 2 p.m. and 4 p.m. 8 p.m. for seven days of the week; these hours
minimize the cost of labor while being open to the public during peak times. The laborer
employed to run the kiosk will be paid $15 per hour. The final cost is the GPS trackers
themselves which will be acquired from a wholesaler at $2 per unit.
Our objective is to reach $125,000 in profits after our first year of operations. This will be
possible if we can average 300 new subscribers each month, meaning 3600 units must be sold for
the year. When a customer subscribes, the GPS will be installed for a one-time fee of $34.99 and
the new client will pay the subscription fee as well (fee is incurred annually). Figure 1-1 of the
appendix illustrates the relationship between the costs and benefits of our new product and
service, and also shows how our profit goal will be met.
Channels of Distribution
In order to distribute our product, which would just include the chip necessary to track
the keys, we would buy wholesale from S5, a wireless technology developer that makes the chips
for a very reasonable $2 per GPS unit. From there, we would rent out a small space in a mall
where we do business and operate. Here the customers could come and get the chips installed as
well meet the technicians face to face so they can answer any questions or address any concerns
they may have. Afterward, we show the customer how to use the app and ensure that the chip is
functional and working correctly.
As with any company, the possible issues that could arise could be that we get a bad
batch of chips or that some are faulty and dont perform up to par. The last thing we would want
is for our company to gain a bad reputation by selling a faulty product that doesnt work as

advertised. It is of the utmost importance that we make sure the chips are of the highest quality
because all it takes is a few unhappy customers to blast our name through various social
networks. Because our distribution lines are limited to a few stores, it should be easier to make
sure we have quality chips, and we will have a tighter control as opposed to having thousands of
stores countrywide.
Promotion Strategy
Because we are a start-up company, we would need to ensure that we are as efficient as
possible with how we spend our time and money marketing our product. Social media and its
ever-growing presence in todays market will be our main source of advertising not only because
word of mouth is a great marketing tool, but also because it will incur no cost to the company.
We would have a Facebook and Twitter page that would help us get our name out there, speak to
our customers, and find out how we can improve our service. We would utilize hashtags to get us
trending and see how people feel about our product and even offer limited discounts to early
adopters and people who share our service with their friends and followers.
In addition, we would allocate funds for billboards to advertise in two key areas: near our
store locations, which would be the malls and near car dealerships in middle to upper class areas.
The three we settled on were: a billboard located in the University and Highland Park area off of
I-75 near SMU, multiple high end car dealerships and would be seen by over 2 million people
per month, near Mesquite off of I-30 which is surrounded by a community college, multiple car
dealerships and the popular Town East Mall as well as being seen by almost 2 million
commuters, and lastly a billboard located in Addison off the Dallas North Tollway which would
be seen by about 3 million commuters and is surrounded by businesses such as Methodist
Hospital for Surgery and the Texas Spine Institute, meaning that we would at least be seen by

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doctors and nurses whom we would assume their salarys would be in the upper five or six figure
salary.
We thought about running commercials on channels that had our target market watching,
but in order to make some profit, we would probably hold off on the commercials until we have
established that we have a viable business that could sustain itself and net a profit. Lastly, we
would have a website where our customers could login and create their account so they can log
into the app on their phone to locate their keys when necessary. They can also find our locations,
store hours and set appointments to come in and get the service installed into their keys.

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Appendix

Figure 1-1