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Group Members
Mubashar Asad Muhammad Ali Bhatti Iqra Maqbool Butt

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Introduction
Smart Energy Solution has been formed with
the express purpose of manufacturing the kinetic energy charger for all sorts of hand held devices in Pakistan.

SES has obtained an exclusive

manufacturing contract from nPower PEG regarding their innovative Kinetic Energy charger for hand-held electronics.

The office would be located in Lahore (on

Mall Road)

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Mission Statement

SESs mission is to offer the finest, most

innovative charging device to the Pakistani market. We exist to ensure all of our customers expectations are exceeded by making them as mobile as ever. We aim to become the premier and most profitable charging device manufacturer by giving the consumers a charging experience that enables them to enjoy the hi-tech gadgets to their fullest while conserving the environment too.

Vision Statement

To change the way the Pakistanis view alternative energy sources by giving individuals the ability to create personal green energy.

Goals & Objectives

Marketing Objectives:
Generate a 20% increase of repeat customers each year. Generate brand awareness through cost effective advertising. Being trend setters as opposed to being trend followers. Remaining the sole manufacturer of kinetic chargers and thus safeguarding our market share.

Financial Objectives:
Achieve a double digit growth rate for the first five years Reach profitability by the end of year one.

Keys to Success

Provide value to customers with the best,

most innovative product.

Develop strong relationships with suppliers

through timely payments and distributors through timely delivery.

Employ strict financial controls to ensure

profitability.

Industry Analysis
Market Research
severe energy crisis environmentalist pressure groups

Market trends and Opportunity/ Market

needs
Primary research Questionnaire Secondary research Websites and journals

General Market trend

IFE & EFE Analysis

Strengths
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Weight

Rating
4 5 4 3 4 5 2 4 2 2 5 5

Weighted Score
0.36 0.4 0.15 0.24 0.3 0.04 0.2 0.24 0.04 0.1 0.35 0.4

The first ever company to introduce and provide a charger using 0.09 kinetic energy in Pakistan. High utility of our product for our target market segment i.e. 0.1 families/individuals on recreational trips. Compliance with the RoHS and Energy Star 5.0. and certified by the 0.05 (EPEAT) . The kinetic charger being only nine inches long and weighing nine oz is 0.06 highly portable. Compatibility with all kinds of hand held/portable electronic gadgets. 0.06 High scalability both in terms of size and power. Efficient business partner management. Effective customer management: Few threats of technical flaws to arise ensures ease of use. 0.02 0.05 0.06 0.02

No significant maintenance costs of our product therefore purchasing 0.05 might be a one off expense. Using muscle power or kinetic energy is by far the most reliable source 0.07 than wind or solar energy. Intellectual property rights/patents to deter potential competitors from 0.08 importing our product.

Weaknesses
1. 2. High price since it is imported.

Weight 0.07

Rating 4 4

Weighted Score 0.28 0.28

Reliance on imports makes susceptible to all sorts of 0.07 unforeseen events at the suppliers end. Only charges one device at one time and the recharging speed 0.06 and power generation is also less. Only a niche market targeted thus foregoing potential 0.02 revenues and profits from other segments. Numerous other chargers using kinetic energy in the 0.03 international market, monopoly can be breached. In case of malfunction repair cost would be high since the 0.02 spare parts would have to be imported. High cost structure prohibits adoption of effective mediums of 0.02 advertising.

3.

0.18

4.

0.08

5.

0.12

6.

0.04

7.

0.06

Total Weighted Score Rating Scale: 5: Outstanding; 4: Good; 3:Average;2: Below Average; 1:Poor

3.82

Opportunities
1. 2.

Weight

Rating

Weighted Score 0.06

Scope of operations can be extended all over Pakistan even by 0.06 focusing on the current market segment. Other market segments can be profitably catered for due to 0.04 the increased projected usage of communication devices.

0.08

3.

Energy crisis in Pakistan would make usage of renewable 0.15 kinetic energy feasible and always in demand. Scope to undertake manufacturing in Pakistan to increase 0.08 cost competitiveness. Product aimed at impulsive and price insensitive rich people 0.09 thus profitability is secure. Awareness amongst consumers regarding energy conservation 0.06 will ensure naturally extended product and industry life cycles. A lot of scope of diversification in the product itself. 0.06

0.6

4.

0.16

5.

0.18

6.

0.18

7.

0.18

Threats
1. 2.

Weight

Rating

Weighted Score 0.3

Vulnerability to changes in government regulations on 0.1 international trade. Incidence of progressive taxes that reduce the real disposable 0.08 incomes of rich people, can adversely affect the demand and profits. Volatile political and economic condition effects recreational 0.15 activities thus intensifies the need to explore other market segments.

0.24

3.

0.6

4.

Close substitutes in the form of low cost wind and solar 0.05 powered chargers are internationally available hence tough global competition.
Unanticipated appreciation of the domestic currency would 0.08 drastically affect profits since the import bill would increase.

0.2

5.

0.32

Total Weighted Score Rating Scale: 5: Outstanding; 4: Good; 3:Average;2: Below Average; 1:Poor

3.1

Interpretation
Since the total weighted score is above 2.75 it
can be safely concluded that that the company can cope well with internal factors i.e. strengths and weaknesses.

The total weighted score is above 2.75, hence it

can be deduced that the company can cope well with external challenges and factors.

Competitors Portfolio
Competitor Analysis
No potential competitor yet yoyo chargers and the foot embedded chargers. Thermal chargers.

Creating a sustainable Competitive

Advantage.
Our product and its features After sales services durability and compatibility.

Porters Five Forces Model Threats to Competitive Advantage

Low Medium High

Threat of substitutes Threat of new entrants Rivalry among existing firms Bargaining power of suppliers Bargaining power of customers

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Marketing Plan

Target Market
As per the results of our survey, we discovered
that amongst the travelling class the recreationalists and the business travelers are the ones who have suffered the most due to the energy crisis.
tourism 11% education 13% other 9% recreation 37%

business 30%

Market Segmentation & Positioning

Segmentation
We have segmented the markets on the following bases:

Geographic Segmentation
Lahore

Demographic Segmentation
Income

Psychographic Segmentation
Recreation Activities

Behavioral segmentation
User status and buyer readiness and stage

Positioning:
We at SES have decided to position our product based primarily on its functional benefits e.g. its compatibility, portability, ease of use and durability which in turn enhances the mobility of our target market i.e. the recreationalists

Product

Core Product

Actual Product

Augmented Product

Product
Core Product
These are going to be SESs main benefits or core offerings of our product. In this case our core benefits are the content itself. We are providing mobility, and at the same time conserving the non renewable energy sources as well as reducing the need to consume electricity to some extent at least.

Product Specifications
OuterCasing: Titanium Color: Green,anodizedfinish Size: 9" tall, Top & Bottom Cylinders: 1'" diameter, Center Cylinder: 1.5" diameter Weight: 11oz. Energy Storage Capacity: 1000mAh lithium Polymer battery Voltage: 5V DC, 500mA output range Watts: 2.5 Watts Operating Temperature: -30 C to 60 C (-22 to 140 F)

Product
Actual Product
Tangible aspects of a product, such as the brand name, features, quality level, design.

Compatibility
Charge Smart is compatible with over 3,000 hand-held electronic devices including cell phones, Mp3 players, gaming devices, GPS, Apple devices such as iPods and iPhones, Blackberry Devices, LG Devices, Samsung Devices, Motorola Devices etc. It is compatible with 90% of chargeable hand-held devices.

Ease of use Durability and Storage Capacity Portability Environment friendly features

Augmented Product
Warranty, After Sales Service and Help line.

Price
Price is the value placed on goods and
services. Price is the amount of money and / or goods needed to acquire some combination of another and its accompanying services

Pricing Objectives:
The objectives of SES for pricing its product are as follows: Maximum Profit Oriented Maximum Market Skimming

Pricing Structure
VARIABLE COST per unit
Cost of import of parts per unit Manufacturing Cost Transportation Duty of cost (@20%) Packaging Promotion Distribution Retailer commission (@10%) Charity After sale service Total cost per unit Contribution per unit Sale price

Cost
350 RS 200 RS 40 RS 150 RS 25 RS 135 RS 15 RS 160 RS 10 RS 15 RS 1100 RS 400 RS Shibu lijack 1600 RS

Price
Demand Estimation:
A market survey was conducted using a comprehensive questionnaire in order to estimate the demand for our product.

Competitors cost analysis:

Since we are the first movers, direct competition does not exist and exclusive manufacturing rights would also prevent competition from a firm producing a similar product. Other form of kinetic energy chargers such as yo-yo chargers, are not available in Pakistan a yet. However, the solar and thermal chargers represent a distant threat and the solar chargers are available at half the price of our product since they are not being imported, whereas thermal chargers too are not yet available in Pakistan.

Cost Estimation , Pricing method and Final Price:

Since we have adopted the bottom up approach to determine the price of our product, the costs need to be worked backwards once the reference prices have been ascertained through the survey. The cost determination as well as the final price per charger is shown in the Appendices is as follows. Since the reference price was more than 800, we decided to adopt Price Skimming by charging a price that is double the reference price ,i.e. Rs. 1600 and worked out the costs backward after considerable research. Since ours is an imported spare parts manufactured product this price might increase or decrease subject to changes in the exchange rates and import duties.

Promotion
The promotions aspect of the marketing mix covers
all types of marketing communications.SES is focusing on Push Promotional Strategies by relying mostly on our sales force to create consumer demand.

Advertising
Print media /Online magazines Website Development

Marketing Force
Word of Mouth Marketing Awareness Building through Public Relations strategy

Placement
Place in the marketing mix, is not just about the physical
location or distribution points for products. Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical and facilitating functions.

We would be placing our office or outlet on the Mall Road in

the Alfalah Building. Our office would serve as the show room for our product, as well as to carry out the operations of the business. We will also rent a warehouse as a temporary storage facility near Alfalah Building, with success in the business; we would rent a separate storage facility in the future).

Distribution
Direct Personal selling:
The representatives of our marketing force would not only place brochures and fliers at the designated travel agencies, they would also contact retailers in big departmental stores such as Hyperstar, Alfateh etc. where travelling gear is available and where our target market is likely to shop for their trips. Those representatives will take orders as well as deliver the product directly to the potential customers. We would of course pay the fore mentioned companies a pre- decided @ 10% of the selling price i.e. 1600 for stocking our product. In the second year of operation companys expanded marketing force will also visit all the mobile, digital cameras etc selling markets such as Hafiz Centre on Main Boulevard, Hall Road Market on Main Mall Road and Abid Market on Mazzang Road and distribute our fliers/ brochures as well as take orders and deliver the product. Since we are going to develop a website for our company, we also intend to provide mail order services for the convenience of consumers.

Distribution
As we are targeting travelers (recreational, tourists & business
persons), SES Inc product will also be available at the retail shops of Highways and Motorways at a pre decided commission of @ 10% of the selling price i.e. 1600 . We at SES are going to employ the following distribution channels.

People
Internal
SESs staff need to focus customers , when having a physical presence in the outlet, or when answering phones or dealing with customer from the office. The staff needs to understand and respond to customer expectation.

External
Customer judge product and service quality on four dimension tangibles, responsiveness, assurance, empathy.

Physical evidence
The physical appearance of the Smart Charger
is for the customer to know how the product is going to benefit them and how they are going to use it to get that benefit.

The products packaging and than its structure

will also give them tangible experience to our product.

The availability of our product at various places

and our office is also the biggest physical evidence for the customers.

Process
Customer satisfaction is one of the most
important roles of marketing. Survey needs to be carried out to see how and how far customer are travelling to get those facilities, to determine the catchment area.

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Review and Control

Controls
The following areas will be monitored to gauge performance
Revenue: monthly and annual. Expenses: monthly and annual.

Repeat business.
Customer satisfaction

Departmental Hierarchy
Since our business is in the initiation stage so at
this point we are not hiring a lot of staff, the three of us partners would be handling the key business functions of SES. But with the success of the business we would increase the staff members.

 Finance Department (Muhammad Ali Bhatti)

Financial database and Import officer Accountant

Human Resource Department

(Mubashar Asad)

Operations Department Marketing Department (Iqra Maqbool Butt)

Advertising Manager Public Relations Manager Computer worker

Contingency Plan
Difficulties and risks faced by SES:
Future regulatory challenges such as unprecedented increase in the import duty. Depreciation of Pakistani Rupee in terms of U.S. Dollar that would make the imports expensive.

Delay in the shipment and arrival of the parts.

Worst case risks that all businesses face may

include:
Determining that the business cannot support itself on an ongoing basis. Have to liquidate equipment to cover liabilities.

 SES intends to maintain a strict check on profitability by

keeping the marketing, personnel and operations budget under tight scrutiny.

Moreover, SES seeks to maintain sufficiently high amount of

stock to cope with a unexpected shortage or delay.

The storage of the stock would not be an additional burden

since the outlet at Mall Road is serving the purpose of an office, showroom as well as storage area at present, so a separate warehouse need not be rented for that.

A far as the risk of liquidation is concerned, SES intends to

keep a strict check on the payment period and credit sales to avoid the likelihood of bad debts and hence liquidity problems.

Product Mechanism
Industrial designer has designed a way hikers can charge their
gadgets with a more reliable source of renewable energy i.e. kinetic energy. The charger is designed to harvest the vibrating shock forces which are put into action when an object is in a state of motion. It would work even if placed in a moving car or through the forces concentrated at the knee during the heel strike phase of walking.

The device embodies the concept of a linear inertial generator that

employs Michael Faradays law of induction.

This charger has a simple mechanism: a high grade neodymium

magnet (NdFeB) is suspended within a magnetic field that is produced by two repelling magnets at the opposing ends of the generator module. When the generator module is subjected to a shock force the NdFeB magnet bounces within a tube.

Product Mechanism
A current is induced within a compact coil of cooper
wire positioned around the tube, thus creating electrical energy.

Kinetic Energy Generation: Output varies widely by

user, activity, and the device being charged. For example

1 minute of walking provides approximately 1

minute of listening time on an iPod Nano

26 minutes of walking provides approximately 13

minutes of talk time on an iPhone 3

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