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• Peace of Mind Technologies (POM) is an exciting start-up company in the newly

emerging field of Personal Tracking Devices; respected industry analysts predict this
will become a LE 15 Million market within the next three years.
• Products and Services
POM will develop and distribute miniaturized Personal Locator Devices (or Personal Tracking
Devices). Initially, the manufacturing of our devices will be subcontracted, while we develop
the supporting software and systems internally, although we plan to manufacture our
products in-house in future years. Our products are also distinct in that they are small and
fully programmable. Our systems can be customized by the end user for his or her unique,
individual applications or different from those required in business applications.
• Market
Our primary target markets include, but are not limited to, the family consumer, kids with
special needs and Alzheimer patients. Because of our unique proprietary programming
capabilities for each individual unit, we have already received indications of interest from
several of these target markets.
• We predict our systems will also appeal strongly to families concerned about the safety of
their loved ones. Sadly, child abduction is on the rise globally and Egypt especially. At the
other end of the age spectrum, there are thousands Alzheimer patients in wander away from
their homes at some point, unaware of their surroundings. We believe our devices will
greatly reduce these figures in both cases, while potentially saving lives.
• The combined number of "potential" customers for our products is well over; we will focus
on a more realistic and attainable three-year sales goal, which will generate many millions of
pounds in sales revenues.
• By focusing on our strengths, our key customers, and our customers' needs, POM
Technologies will increase sales to several millions of pounds within two years, while also
improving the gross margin on sales, cash management and working capital.
• Parents seeking Safety

• Parents with special needs kids

• Modern/Lifestyle parenthood
POM Technology is a small monitoring
tool that can be placed in your child's
pocket, backpack or jacket and uses
satellite technology to continuously
know the location of the child.

We will have two lines of products:


• Class A and it is sold by 700 LE
• Class B and it is sold by 350 LE
• AMBER Alert (America’s Missing Broadcast
Emergency Response) originating in the United
States in 1996.
• in May 2003, Amber Alert GPS launched a new
version of the Company’s highly-successful
Amber Alert GPS device, along with a new companion Smartphone app
to allow parents to easily know their child’s location.
• The price for Amber Alert GPS Child Locator Tracking Device starts from
130$.
• its high-quality, easy-to-use GPS tracker with plenty of features and a
web-based service.
• By April 2, 2014 Amber Alert have helped rescue and safely return 688
children.
Direct VS
Indirect
Channels of
Distribution
Reasons For Choosing Direct Channels
• Less complicated
• Less expensive
• build customer relationships
• Eliminates cost of “middle man”
• Allows for market research

Reasons For Choosing Indirect Channels

• Form Utility
• Time Utility
• Place Utility
• Information Utility
• Possession Utility
• Service Utility
 POM technology is extremely small monitoring tool that can be
placed in your child's pocket, backpack or jacket.
 POM technology uses satellite technology to continuously know the
location of your child.
 POP: it would work in the same way that GPS works for
 your car.
 POD:
 a- it takes far less battery power
 b- It’s not giving directions; rather, a personal GPS tracking
device occasionally transmits data to let a third party know
where the device is located.
There are three different ways you can track your child:-

 Location: A small device shares your child’s location with you


at all times
 Alerts: If your child travels outside of a predetermined area,
you receive an alert.
 Alarm: So if your child is in danger, they can hold down a
button for three or four seconds to alert you.
 Obtain peace of mind

 Child abductions

 Wandering children

 Child behavior problems.

 Support kids with special needs

 Modern / lifestyle parenthood


 Focus on target marketing to increase market penetration and
domination.

 Establish brand awareness for the tracking device.


Assuming we have two lines of products:
o Class A will be sold with 700 LE

We will be using Product-Quality Leadership pricing strategy.

o Class B will be sold 350 LE

We will be using Market penetration strategy pricing strategy.


 Should keep an eye on the form
competition.
 Exert much effort to ensure that no
health harm issues would harm the
children.
 To assess other aspects of product
design, such as product packaging or
names.
 link in with other aspects of marketing.
For example, it can help you assess how
much consumers are willing to pay for
new product features.
S W

SWOT
Analysis
O T
SWOT Analysis

Strengths

• Product quality…
• Health issues.
• Product material.
• Signal quality.
• Product details match customers’
preferences.

S W

O T
SWOT Analysis

W eaknesses

• Product is new, so can’t build


on competitor reputation.
• Company is new, so can’t build
on company reputation.

S W

O T
SWOT Analysis

O pportunities

• Current weak security status.


• Entering different segments...
• Alzheimer.
• Elderly.
• Pets.
• Judicial system.
• Military.
• Political.
• Businesses. S W

O T
SWOT Analysis

T hreats

• Fear of health harm.


• Emerging of new competitors.

S W

O T
• Loyalty Programs.

• Referral Program.

• Recycling Program.

• Beyond (Partnering) Program.

• CSR Program
 As a start-up company in an emerging and changing industry, we
have intentionally designed a conservative plan, looking to
ensure the achievement of our corporate goals along with a
solid ROI to our partners.

 We will of course revise our financial plan throughout the first


year based on actual figures in sales, Importing costs,
technological advances, personnel, office space, marketing
costs, and so on
• As per our estimations that will be describe later, the company will
need 750,000 LE as operation cost per month on the first year,
break-even point will be reached after 8 months, so for a steady
start up , we will need to have 10 months cover (750,000LE) , plus
the direct cost of sales or the product cost for the projected
quantity that we are expecting to sell which is around 600,000
(exactly 608,000 LE)

• Total Start up Summery will be 1,358,000 LE


• Form Break-even calculations, optimal requirement start-up cash is
450,000 LE
Our plan's success is also predicated on the following assumptions:
 Securing seed money with investors/ partner who will bring
added value to POM Technology.
 The acceptance of our device by the public, the business sector
and the military.
 Staying ahead of technological advances in this field, and
reacting to these changes in a timely and efficient manner.
 Managing the start-up of our firm with minimal personnel until
steady growth necessitates hiring additional department
management and support staff.
Our plan's success is also predicated on the following assumptions:
 Partnering with one of the current mobile operators quickly in
order to penetrate and dominate market share, make use of the
common technology infra-structure they have.
 Success in marketing our products for brand awareness and
positioning.
 The Profit and Loss table, below, shows our projected sales, cost of
sales, and operating expenses for the first three years, of particular
note are the high Sales and Marketing expenses; our market
research indicates these approximate spending levels will be
necessary for launching such a new and unique product
successfully.
 All costs associated with import and distributing the physical
products can be found under cost of sales in the Sales Forecast
table
 We anticipate that sales will begin to generate a stable profit for
POM Technology from second year of operation
Projected Profit and Loss Assumptions
• Projected Sales Targets are according to the Following ;
– Year One 3000 Unites , Year Two 6000 Unites , Year Three 10000
Unites
• As we have two line of produces , all calculations are based on
selling Product class A , but in case when selling product line class B
, quantity of sales have to be duplicated to achieved the needed
targets
• Product Class A Cost 320LE , and Product Class B Cost 160LE
• Product Class A Price 700 LE , and Product Class B Cost 350LE
• Annual increase for both cost of product , and selling price by 10%
Profit and Loss Year 1 Year 2 Year 3
Quantity (Both Class A and B) 3000 6000 10000
Sales EGP 2,100,000 EGP 4,620,000 EGP 8,400,000
Direct Cost of Sales EGP 960,000 EGP 2,112,000 EGP 3,840,000
Other Costs of Goods EGP 0 EGP 0 EGP 0
Total Cost of Sales EGP 960,000 EGP 2,112,000 EGP 3,840,000
Gross Margin EGP 1,140,000 EGP 2,508,000 EGP 4,560,000
Gross Margin % 54.29% 54.29% 54.29%

Expenses
Payroll EGP 200,000 EGP 400,000 EGP 755,000
Sales and Marketing and Other Expenses EGP 190,000 EGP 200,000 EGP 250,000
Advertising & Marketing Collateral EGP 295,000 EGP 350,000 EGP 430,000
Rent EGP 122,800 EGP 126,000 EGP 130,000
Telephone EGP 10,000 EGP 10,000 EGP 16,000
Utilities EGP 14,400 EGP 18,000 EGP 20,000
Insurance EGP 6,000 EGP 8,000 EGP 9,000
Company Vehicles and related expenses EGP 16,800 EGP 18,000 EGP 20,000
Trade Shows & Events EGP 45,000 EGP 0 EGP 0
Total Operating Expenses EGP 900,000 EGP 1,130,000 EGP 1,630,000

Total Cost of Sales EGP 960,000 EGP 2,112,000 EGP 3,840,000


Total Operating Expenses EGP 900,000 EGP 1,130,000 EGP 1,630,000
Profit Before Interest and Taxes EGP 240,000 EGP 1,378,000 EGP 2,930,000

Earnings before interest, taxes,


EGP 240,000 EGP 1,378,000 EGP 2,930,000
depreciation and amortization (EBITDA)
Interest Expense EGP 0 EGP 0 EGP 0
Taxes Incurred EGP 60,000 EGP 344,500 EGP 732,500

Net Profit EGP 180,000 EGP 1,033,500 EGP 2,197,500


Net Profit/Sales 8.57% 22.37% 26.16%
Profit and Loss
EGP 12,000,000

EGP 10,000,000
EGP 2,197,500

EGP 8,000,000

EGP 6,000,000
EGP 1,033,500

EGP 4,000,000 EGP 8,400,000

EGP 180,000 EGP 4,620,000


EGP 2,000,000

EGP 2,100,000

EGP 0
Year 1 Year 2 Year 3
Net Profit EGP 180,000 EGP 1,033,500 EGP 2,197,500
Sales EGP 2,100,000 EGP 4,620,000 EGP 8,400,000
Net Profit/Sales
30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
Year 1 Year 2 Year 3
Net Profit/Sales 8.57% 22.37% 26.16%
Net Profit
EGP 2,500,000

EGP 2,000,000

EGP 1,500,000

EGP 1,000,000

EGP 500,000

EGP 0
Year 1 Year 2 Year 3
Net Profit EGP 180,000 EGP 1,033,500 EGP 2,197,500
Important Figures
Sales EGP 2,100,000 EGP 4,620,000 EGP 8,400,000

Gross Margin EGP 1,140,000 EGP 2,508,000 EGP 4,560,000


Total Operating
EGP 900,000 EGP 1,130,000 EGP 1,630,000
Expenses
EBITDA (Earnings before
EGP 240,000 EGP 1,378,000 EGP 2,930,000
interest, taxes,….)
Net Profit EGP 180,000 EGP 1,033,500 EGP 2,197,500

Net Profit/Sales 8.57% 22.37% 26.16%


• For our break-even analysis, we assume per month running costs
which include our full payroll, rent, utilities, and an estimation of
other running costs. Payroll alone, at our present run rate, is only
about EGP 75,000 per month for the first year,

• Below Estimations for breakeven analyses show that over the first
year, we will operate with negative profits and no revenue for the
first 10 months, before we reach breakeven (2450 Device)
Month Operation Quantity Monthly Total
Direct Cost of Sales Total Profit
Number Cost Sold Revenue Revenue

Month 1 75,000 0 0 0 0 -75,000

Month 2 150,000 0 0 0 0 -150,000

Month 3 225,000 0 0 0 0 -225,000

Month 4 300,000 0 0 0 0 -300,000

Month 5 375,000 0 0 0 0 -375,000

Month 6 450,000 300 96000 210,000 210,000 -336,000

Month 7 525,000 300 192000 210,000 420,000 -297,000

Month 8 600,000 400 320000 280,000 700,000 -220,000

Month 9 675,000 400 448000 280,000 980,000 -143,000

Month 10 750,000 500 608000 350,000 1,330,000 -28,000

Month 11 825,000 550 784000 385,000 1,715,000 106,000

Month 12 900,000 550 960000 385,000 2,100,000 240,000


Break-even Analysis
300,000

200,000

100,000

-100,000

-200,000

-300,000

-400,000

-500,000
1'st Month 2'nd Month 3'rd Month 4'th Month 5'th Month 6'th Month 7'th Month 8'th Month 9'th Month 10'th Month 11'th Month 12'th Month
Total Profit -75,000 -150,000 -225,000 -300,000 -375,000 -336,000 -297,000 -220,000 -143,000 -28,000 106,000 240,000
• Based on taking average numbers for the profit and Loss tables, we
can find the below graph and table for showing the fill profit trend
over three years of operations
Month Total Quantity Direct Cost of Month Total
Total Profit
Number Cost Sold Sales Revenue Revenue
Month 1 75,000 0 0 0 0 -75,000
Month 2 150,000 0 0 0 0 -150,000
Month 3 225,000 0 0 0 0 -225,000
Month 4 300,000 0 0 0 0 -300,000
Month 5 375,000 0 0 0 0 -375,000
Month 6 450,000 300 96,000 210,000 210,000 -336,000
Month 7 525,000 300 192,000 210,000 420,000 -297,000
Month 8 600,000 400 320,000 280,000 700,000 -220,000
Month 9 675,000 400 448,000 280,000 980,000 -143,000
Month 10 750,000 500 608,000 350,000 1,330,000 -28,000
Month 11 825,000 550 784,000 385,000 1,715,000 106,000
Month 12 900,000 550 960,000 385,000 2,100,000 240,000
Month 13 994,166 500 1,136,000 385,000 2,485,000 354,834
Month 14 1,088,332 500 1,312,000 385,000 2,870,000 469,668
Month 15 1,182,498 500 1,488,000 385,000 3,255,000 584,502
Month 16 1,276,664 500 1,664,000 385,000 3,640,000 699,336
Month 17 1,370,830 500 1,840,000 385,000 4,025,000 814,170
Month 18 1,464,996 500 2,016,000 385,000 4,410,000 929,004
Month 19 1,559,162 550 2,209,600 423,500 4,833,500 1,064,738
Month 20 1,653,328 550 2,403,200 423,500 5,257,000 1,200,472
Month 21 1,747,494 500 2,579,200 385,000 5,642,000 1,315,306
Month 22 1,841,660 500 2,755,200 385,000 6,027,000 1,430,140
Month 23 1,935,826 500 2,931,200 385,000 6,412,000 1,544,974
Month 24 2,030,000 400 3,072,000 308,000 6,720,000 1,618,000
Month 25 2,165,833 800 3,379,200 672,000 7,392,000 1,846,967
Month 26 2,301,666 800 3,686,400 672,000 8,064,000 2,075,934
Month 27 2,437,499 800 3,993,600 672,000 8,736,000 2,304,901
Month 28 2,573,332 800 4,300,800 672,000 9,408,000 2,533,868
Month 29 2,709,165 900 4,646,400 756,000 10,164,000 2,808,435
Month 30 2,844,998 900 4,992,000 756,000 10,920,000 3,083,002
Month 31 2,980,831 900 5,337,600 756,000 11,676,000 3,357,569
Month 32 3,116,664 900 5,683,200 756,000 12,432,000 3,632,136
Month 33 3,252,497 800 5,990,400 672,000 13,104,000 3,861,103
Month 34 3,388,330 700 6,259,200 588,000 13,692,000 4,044,470
Month 35 3,524,163 800 6,566,400 672,000 14,364,000 4,273,437
Month 36 3,660,000 900 6,912,000 756,000 15,120,000 4,548,000
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000

-1,000,000
Y1 M1
Y1 M2
Y1 M3
Y1 M4
Y1 M5
Y1 M6
Y1 M7
Y1 M8
Y1 M9
Y1 M10
Y1 M11
Y1 M12
Y2 M1
Y2 M2
Y2 M3
Y2 M4
Y2 M5
Y2 M6

Total Profit
Y2 M7
Y2 M8
Y2 M9
Y2 M10
Y2 M11
Y2 M12
Y3 M1
Y3 M2
Y3 M3
Y3 M4
Y3 M5
Y3 M6
Profit Before Interest (EBITDA) , Three Years Full Trend

Y3 M7
Y3 M8
Y3 M9
Y3 M10
Y3 M11
Y3 M12
All of the above steps are created as a marketing plan based on marketing
research and analysis; we might face a deviation of what we did plan verses
what we will achieve.
Hence, we will use three ways in order to monitor ongoing results, investigate
any deviation from plans, and take corrective steps as needed. We will use
budgets, schedules, and marketing metrics for monitoring and evaluating
results as follow:
Budget
We will compare planned expenditures with actual expenditures on quarterly
basis and monitor the sales revenue in monthly basis
Schedules
To see when tasks were supposed to be completed and when they actually
were done.
Marketing metrics
Through tracking the actual outcomes of marketing programs; to see whether
the company is moving forward toward its objectives or not and the customer
stratification feedback will be the reference.

Contingency plan
Based on the results we will get we will be ready to adjust the marketing plan
and prepare for a contingency plan.
Difficulties and risks
o Problems generating visibility a function of being star-up organization
o An entry into the market by already established competitors
Worst-Case Risks
o Determining that the business cannot support itself on an ongoing
basis
o Having to liquidate equipment or intellectual capital to cover liabilities