Passenger Cars

SkunkWorks

Tina Krawczyk, Will Longhini,Rob McCabe, Casey Tibbetts & Karin Westrom

Agenda
Market Size & Growth Market Segmentation Positioning Tactics
Price Product Place Promotion

NHTSA

Market Size

200 million cars on the road today do not have TPMS standard

NHTSA 200 Million

Cars without TPMS Standard

Number of cars on the road without TPMS standard is decreasing and will continue to decrease.

TPMS Aftermarket Market Growth

Datamonitor

Market Segmentation
Male Married with children
Family oriented Protect family

Searching for best deals and looking to save money wherever possible

Geographics

Northeast (Mid(MidAtlantic) Harsh winter & snow

Geographics
Switching Tires Two times to create awareness Summer to winter, winter to summer

Target Audience
Woody
Male Used car owner 2006 Honda Odyssey Loving husband and father At least one kid is a new driver Watches Two Guys Garage on SPEED Network on Saturday mornings

Competition
Pressure Pro Dill Schrader SmarTire

Competition
Points of Parity
PSI monitoring System display RealReal-time Replaceable valves Battery life 5-7 years High quality, low cost Enhanced features
Temperature monitoring GPS integration 2-piece valve stem design 24/7 monitoring

Points of Difference

Positioning Map

Ease Of Use

Price

Positioning Statement
Orange Electronic provides an innovative and easy to use approach to TPMS - keeping families and new drivers safe, while providing consumers with the most value for their dollar.

Orange Electronic NA

RealReal-time is peace of mind.

PRICE

Price
P409: $140
Without GPS

P412: $300
With GPS

PRODUCT

Customer Reviews
I have found this to be the best of three different afterafter-market TPMS that Ive tried. S. Farrow I tried. (Amazon) Great product. Works 100% as advertised The sensors were installed when new tires were mounted. mounted. Car Tech BMW (Amazon) BMW Bought this to replace the 2002 system in my wifes wife car when we upgraded wheels recently Always know where you are and can keep your hard earned money in your pocket! Farmer (Amazon) pocket!

Package Design

Change current packaging Initial plate charge $1,500

New Package Design (Front)

New Package Design (Back)

Orange Electronic

PLACE

Mavis Tire
114 stores CT, MA, NY, PA All retail locations No commercial business

Mavis Tire Locations

Expansion Plans
Mavis Tire Year 1
Initial 114 locations

Costco - Years 2-5 2Increasing tire-service market tireshare Family shopping experience
416 US locations, 70 Canada locations 52 locations in the Northeast

Distribution Channel

PROMOTION

Promotion Plan
Retail store displays with OE TPMS pamphlets Retail store floor stickers Retail store employee buttons Syracuse Crunch Orange Electronic Family Nights

Promotion

Education

Need for Education

SkunkWorks

Need for Education

33,000 injuries and 600 fatalities are attributed to under-inflated tires each year under120 fatalities each year can be prevented with TPMS installed

More than half of all vehicles on the road have at least one under-inflated tire underOrange Electronic

Fuel Economy
5 million gallons of fuel a day wasted due to low tire pressure
2 billion gallons/year

UnderUnder-inflated tires increase rolling resistance Save fuel, save money

Orange Electronic

Vehicle Performance
Decrease in braking distance
6060-0mph, 35-0mph 35-

Less skidding and hydroplaning Increased handling and steering Survey 62% rated increased vehicle performance very important
Orange Electronic/SkunkWorks

Vehicle Safety

Reduces tire blowouts

Reduces damage to vehicle and personal injury

Orange Electronic

Convenience

Don Dont have to pull off valve caps

Better accuracy than traditional tire gauge

Orange Electronic

Cost
TPMS system will pay for itself in less than a year
Reduced tire wear, increase tire life Increased fuel economy Save over $200 annually

Orange Electronic

Peace of Mind
Knowing first-time drivers are better firstprotected on the road alone

One less thing to worry about while on a family road trip

Resonates with Woody

Promotion

Retail Store Displays

Education & Point of Purchase

Retail Store Displays

Continuing education
Walk in to store, see display Benefits Costs

Product easy to find

Consumers know Employees know

Retail Store Display Pricing

1 display per store

114 Mavis stores X $50 = $5,700

Promotion

Retail Store Floor Ads

Example Floor Ads

Floor Ads
Are you worried about your carbon footprint? Does your family s safety matter to you?

Do you want to save money at the gas pump?

Floor Ad Pricing
4 stickers per store

500 stickers = $1,600

$2.05+$.82 (colors) X 500 = $1,435+$164 = $1600

Promotion

Retail Store Employee Buttons

Employee Buttons

$.26 per button X 1000 buttons = $260

Promotion

AHL Hockey Family Nights

Syracuse Crunch

Other Potential Partners

Family Night Schedule

Saturday, November 20 7:30pm Saturday, December 18 7:30pm Sunday, January 16 4:00pm Friday, March 18 7:30pm

Family Night sponsored by

OE
Orange rally towels First 2,000 fans to enter arena OnOn-ice and JumboTron games Most orange pucks scored in 45 seconds orange OnOn-screen tire race Tire pressure trivia Zamboni advertisements

Tire Race Game Card

Rally Towel

Zamboni Advertisements

Family Night Costs

Orange rally towels - $8,000 Zamboni advertisements - $10,000 Paper costs - $8,000
Game cards (tire race color) Promo slips

Total Promotion Costs

5-Year Financials

Next Steps...
Geographic rollouts Increased promotional content Expand segmentation
Cars manufactured after 2008, with TPMS warning light installed

Passenger Cars
SkunkWorks