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SolarCell: Solar Powered Mobile PhonesTeam Five: Chris BeltranMessaline ClementMireya GamaCody PrueBusiness MarketingBUS 306-02, Fall 2013Presented to Professor DavisTable of Contents: Executive Summary……………………………………………………………………….5Market Analysis…………………………………………………………………...………6Situation Analysis…………………………………………………………………6Market Summary………………………………………………………………….6Target Market……………………………………………………………………………..7Geographics……………………………………………………………………….7Demographics……………………………………………………………………..8Behavioral Factors/Psychographics ……………………………………………...9The Market…………………………………………………………………………….….9Market Needs……………………………………………………………………..9Market Trends………………………………………………………………...….10Market Growth………………………………………………………………...…10SWOT Analysis………………………………………………………………………….11Competition……………………………………………………………………………...12The Product: A Solar Powered Mobile Phone…………………………………………...13Product Offering…………………………………………………………………13Keys to Success………………………………………………………………….15Critical Issues………………………………………………………………….....16Marketing Strategy……………………………………………………………………….16Value Proposition………………………………………………………………...16Mission………………………………………………………………………...…16Marketing Objectives…………………………………………………………….16Financial Objectives……………………………………………………………...17Target Markets………………………………………………………………...…17Positioning……………………………………………………………………….17Strategies…………………………………………………………………..…….19Marketing Mix…………………………………………………………………...20Pricing……………………………………………………………………20Distribution………………………………………………………………20Marketing Communications……………………………………………..21Marketing Research…………………………………………………………..….21Financials…………………………………………………………………………….…..23Break- even Analysis………………………………………………………….....23Sales Forecast………………………………………………………………..…..25Expense Forecast………………………………………………………….……..25Controls………………………………………………………………………….…….…25Implementation…………………………………………………………………………..26Marketing the Organization……………………………………………………………...26Contingency Planning……………………………………………………………………26References……………………………………………………………………………......28List of Tables and Figures: Figure 1: Demographics………………………………………………………………......8Figure 2: SWOT Analysis……………………………………………………….……….11Figure 3: Positioning……………………………….………………………………….…18Figure 4: Channel Distribution…………………………………………………………..20Figure 5: Marketing Research……………………………………………………………22Figure 6: Battery Life & Sun Exposure………………………………………………….23Table 1: Break- Even Analysis………………………………………………………….23Figure 7: Break- Even Graph…………………………………………………………….24Table 2: Sales Forecast…………………………………………………………………..25Table 3: Expense Forecast……………………………………………………………….25Executive Summary Solar Cell company has created a mobile phone with a sleek design to install a solar panel screen onto the front or back of the phone that will charge the phone when it runs low on battery. Implementing solar panels to fit on small screens would allow cell phone users to charge their phones through the source of light. Having to constantly charge a dying cell phone is a common issue that people struggle with. The target market for this product can range from environmentally friendly people, to the younger generation of people that rely or depend on their cell phones, to the tourists and travelers in which the usage of cell phones is essential and necessary. The target market we believe will be the first to become our customers is the younger generation of cell phone users. Cell phones are the most quickly adopted consumer technology in the history of the world. That is why younger adults (aged 18 to 29) are significantly more likely than those in other age groups to engage in all of the mobile data usage. Current trends that exist today are the increase in cell phone use along with a growing environmental awareness. It is always a problem and inconvenience carrying more chargers for electronic devices (camera, cellphone, computer) when travelling, especially when all electronic systems are not the same around the world, and people traveling need different converters.Marketing Analysis: Situation AnalysisAlong with call quality, a cell phone's battery life is one of the most important considerations when choosing a handset. It is a huge burden to have a cell phone die in the middle of an important call. And it is no fun either to have little power when there’s not a charger or outlet anywhere near. While manufacturers make lots of promises about a phone's battery life, they do not always hold true to producing long battery life spans. The best solution should be to find a way to produce electricity in a friendly manner, especially for small electronic devices and at the same time be accessible everywhere. The introduction of solar powered cell phones will eliminate these issues while contributing to the growth of green energy. Solar cell phones have the ability to completely revolutionize the way we communicate with each other. Market SummaryCurrent trends are the increase in cell phone use along with a growing environmental awareness. It is always a problem and inconvenience carrying more chargers for electronic devices (camera, cellphone, and computer) when travelling. This is true especially when all electronic systems are not the same around the world, and people traveling need different converters. In order to solve this issue, our team has formulated a new product that will eliminate the use of chargers to make charging more convenient to cell phone users in an environmental friendly way. The target market for this product can range from environmentally friendly people, to the younger generation of people that rely or depend on their cell phones, to the tourists and travelers in which the usage of cell phones is essential and necessary. This would appeal to environmentally friendly people because eliminating the use of chargers would be saving and conserving energy. Target Market:Geographic’sWorld Region: North AmericanCountry Region: PacificCity Size: 500,000 – 1,000,000Density: Urban, SuburbanClimate: NorthernThe geographic factors chosen to represent our product effectively would be primarily in an urban setting such as San Francisco. The reason is that the city is densely populated by a multi-cultural melting pot of ethnicities and professions. To further elaborate, San Francisco (S.F.) has a population of 825,863 and is considered urban (“San Francisco-California”.2013). According to California Demographics by Cubit, San Francisco “Is the 13th most populated county in the state of California out of 58 counties”. In addition to its population S.F. retains a fairly high median income per household of about $71,304(“Demographics Summary”, Para.2).It is true that solar panels work better when the sun shines but we have to mention and make people understand that solar panels work even without a bright sun (Candy Colored Solar Panels”.2010). Solar cells are able to catch solar beams through clouds and are able to convert the rays into electrical energy even when there are overcast weather conditions.Solar mobile phones can be very useful for charging phones in developing countries and places where the electric grid is unreliable or power supply is unpredictable. Many experts have suggested that solar powered cell phones will be most successful in developing countries, where the electricity grid is not nearly as reliable (“Solar Cell Phones”, N.d). Many of these cell phones come with a very reasonable price tag which makes them more affordable for people living in less developed countries that live on very minimal wages. They will be able to charge their phones without the need to travel to a village and pay someone to use their power outlet.?Demographics The most important demographic criteria we have researched are the age, income, occupation, and education. These areas all seem to correlate and show that average age of the residents are between the ages of 20-35 years old. California’s overall median age is 45.6 years(City-Data. 2012). The reason why this is relevant is because it shows that our target market will be willing open to trying a product that is innovative and different. The income portion of the demographics suggests our audience is able to afford our product instead of a cheaper alternative phone. In addition, occupations regarded as technical, managerial, and students are substantially relevant since they occupy the greatest percentage of residences in San Francisco(City-Data. 2012)Figure 1AgeSexFamily SizeLife Cycle20-34yrsMale and FemaleW/o childrenYoung Single W/o childrenIncomeOccupationGeneration30-60k AnnuallyProfessional, Technical, and ManagersGen X and MillenialsThe above figure shows a breakdown of San Francisco’s average resident with based on age, sex, family size, life cycle, income, occupation, and generation. All of these factors are important because it shows that the average residents’ tastes can be catered to, based on all of the factors listed above. Behavior Factors/ Psychographics The current lifestyles and personalities targeted are those achievers that are ambitious and outgoing in their endeavors. The company’s intentions are to raise the interest of people who are willing to use sustainable technology for everyday use. The product will provide a convenience benefit by having the option to use conventional charging or the alternative of solar power charging. With the two previous options stated, it can be concluded that the versatility and perceived value has the ability to gain mass appeal of the market. The attitudes that SolarCell wants to encourage are positive, sustainable, and enthusiastic solutions for all mobile users.The Market Market Needs In today’s world, cell phones play a major role in our everyday lives. Cell phones are becoming more popular day by day as people become more dependent on technology. The site How Stuff Works indicates that Cellphones are taking over the phone market, while landlines are becoming obsolete. With everyone always being on his or her cell phone, it calls for a more efficient charging mechanism. This is where our idea comes into play; we are introducing the first cell phone with a solar panel on the front screen and back panel. The front screen is one that you can see through, which will charge your phone about 40% of the way and the back panel would be a full solar panel so that it could get the full charge. This solar panel cell phone concept would help out a lot. With everyone being on their phone from when they wake up till when they go to sleep they can charge it wherever whenever they would like. With people always being on the go whether it is from class to work to even traveling, their phones can be constantly charging. This would take over the cell phone world once other technology companies begin to see how effective solar panels are. This solar panel will be convenient and save people money and time by eliminating the need to purchase multiple chargers. As the cell phone market evolves and more consumers rely on texting and phone applications, it is important to understand phone trends to maintain a competitive advantage. Solar cell phones will allow brands to capitalize on the demand for portable, hi-tech and easy to use communication technologies to pave the way for a faster and more profitable future.Market Trends Market trends are something that catches everyone’s eyes; they are the beginning of something new. Social factors are starting to change in today’s world. People are starting to become more advanced with technology. From every generation, people are starting to catch on to the new and updated technology. Each generation is adapting to this change and it is becoming the norm to constantly be connected through social networking, email, and even video conferencing. According to Transaction World, as the cell phone market increases, more consumers rely on texting and phone applications. Our society is constantly looking for fast and efficient ways to communicate. Discounted smartphone devices and affordable wireless plans have made ownership of some kind of mobile phone a near necessity. Once one person sees another use something new, it stirs the curiosity and influences others to do research and even make a purchase. According to Solar Energy for Homes, “Cellphones account for a large portion of the huge increase in electricity consumption that has occurred in the last decade”. A solar mobile phone will help slow down the increase. With people becoming more “green” and aware of their impact on the environment, this solar device will be a major improvement in the cellphone market. As consumers become responsible for the environment they are seeking out new methods and ideas to power their electronics and that includes the ultimate must have gadget, the solar cell phone.Market GrowthMarket growth is an increase in the demand for a certain product over time. This is a process that can take off slowly or can catch on very fast. We believe that this solar charger market will grow and take off at a fast pace. Since the cell phone industry is one of the fastest growing in the world. According to the newest data issued by Chetan Sharma Consulting, the global mobile industry is now the most “vibrant” and “fastest growing industry” on the planet. Smartphones demand is increasing because they are simple to use, affordable to some people, and save time. The major complaint from consumers is how quickly the battery drains from a day’s usage, which is exactly why this solar panel cell phone will work well. The product will need to be pitched to all of the major cellphone companies, as well as keeping the consumers well informed of this new technology. First thing we should do to promote the product is showing how it works inside and out, displaying each detailed aspect of the product. Once the product is promoted enough, it could be something that begins to take over the cell phone world. This is what everyone has been waiting for. Solar cell phones have the ability to completely revolutionize the way we communicate with each other worldwide.SWOT Analysis Product easy to useEco-friendlyEasy to carry (included in your phone)Easy to make work (solar beams)Allow customers to save money (less electricity to pay)Long-term customer relationshipLong lifespan (30 years)Not yet profitable (raw materials are expensive)Need to achieve economies of scaleNo product awareness yetFragile Current green/sustainable trend The environment concerns people Demand for electricity will increaseFierce competition due to this current trendDiscovery of a better alternative to solar panelsIf phone manufacturer do not want to collaboratePeople have to realize that solar panels work without sunS W ANALYSISO TProduct easy to useEco-friendlyEasy to carry (included in your phone)Easy to make work (solar beams)Allow customers to save money (less electricity to pay)Long-term customer relationshipLong lifespan (30 years)Not yet profitable (raw materials are expensive)Need to achieve economies of scaleNo product awareness yetFragile Current green/sustainable trend The environment concerns people Demand for electricity will increaseFierce competition due to this current trendDiscovery of a better alternative to solar panelsIf phone manufacturer do not want to collaboratePeople have to realize that solar panels work without sunS W ANALYSISO TFigure 2The current opportunities regarding the growing environment awareness led us to create a product with lots of strengths in order to create a competitive advantage. Thus our product is easy to use, easy to understand, and easy to carry among others. But there are also weaknesses that we have to think about and that we have to tackle as soon as possible. We also have to be careful about external threats, the biggest one comes from the competition because given the fact that our product is innovative (and will be profitable soon), and other companies are likely to produce similar products in near petition We can find many competitors in the current market due to the trendy expansion of sustainable energies. But we cannot find a company that offers exactly the same product as the one we are marketing. The following companies are companies that offer product with the same goal but with another overall shape.Everbright Solar Inc. is an American high-quality solar panels manufacturer. Panels are made in the U.S., which is a big advantage for this company. Indeed, in people’s mind, a product made in their country automatically means a good-quality product. Most of the components come from the U.S. and final assembly lines are based in Fremont (California). They sell their products mainly online through their website and take part in some exhibitions. They have different types of solar panels for different uses but the one that competes with our product is a miniature solar panel with two jack plugs. The voltage is nevertheless low (1V to 3V), panels are very small and prices as well ($18). This company is successful mainly thanks to solar panels for houses. Another strong point is the customable size of their solar panels given the need of the customers. They have over 20,000 customers since 2004. They try to build long-term relationship with their customers by offering a good return policy; customers can return back your solar panel two weeks after reception. Everbright Solar Inc. is our main competitor. Earthtechproducts is another competitor. They only sell online. They also offer different sizes of solar panels with different voltages. The competing product is a full equipment (12V) to charge any electronic devices with solar technology. The solar panel’s shape looks like a flip phone with solar cells on each side. That way, solar cells are protected when the flip is closed. A good point for this product is that lots of charging tips are included for the latest phone brand and a rugged and durable travel case as well. They offer five different colors for the case. They also ship for free and worldwide. The main problem with this product is the price: $199. People are more concerned by the environment but are they also still have some financial issues due to struggling economy.EnerPlex is a company that has two main products: portable solar panels and solar panels included in phone cases. They sell online but they also have a main retailer: Fry’s. Solar panels included are 5V. The phone case is an innovative product that should work well; maybe the price can be an obstacle, $70. The technology used is very good because given features. This phone case is hardly bigger than other regular phone cases. Those phone cases are only available for iPhones and Samsung Galaxy SIII. This is a good product because it fulfills two different customers’ needs: the need to have your phone protected and the need to always have enough charge to still use your phone.The Product: A Solar Powered Mobile PhoneProduct Offering The target of our product is so to have a way of charging our phone without using an electric regular plug. So we are using the in-technology of solar panels. We want to include solar panel on the back of a cellphone. But it is not something we add in the back of a cellphone; the solar panel will be part of the phone. The sunbeams will get in touch with the solar cells of the solar panels and the energy produced will be converting into electricity in order to charge the phone. The solar cells have to be very thin and light. The size (length and width) will depend on which phone the customer uses. Indeed, every phone on the market do not have the same back size, that is why we want to make different sizes of solar panel (large product line) to fit phones. From the beginning, we will start with most popular phones, like iPhones or Samsung ones. How does a solar panel work? There are two types of solar panels and the type we are using is the photovoltaic. The principle is simple; the solar cell has two layers of silicon. The layer that will be in touch with solar beams is a mix of silicon and phosphorous, and given the fact that phosphorous contains more electrons than silicon has, this layer is charged negatively. The layer non in touch with sunbeams is a mix of silicon and boron and given the fact that boron has more protons than silicon has, this layer is positively charged. Solar beams contain photons and when a photon gets in touch with the negatively charged layer of silicon the energy produced causes the break between an electron and an atom of silicon. Positive atoms will so automatically go to the other layer (the positively charged one) and the negative ones will automatically go to the layer negatively charged. An electric potential difference follows—this is electricity. We can also find different types of photovoltaic cells:The single crystalline ones that have a good yield (from 15% to 22%) but cost a lot.The polycrystalline ones which have less efficient yield (from 10% to 15%) but cost less.The amorphous ones, cost and yield (from 5% to 10%) are low.A yield of 10% means that if 1000W from sun beans touches the cells, 100W of electricity is produced.For our product we are using the amorphous ones because we don’t need a very good yield and for economic reason as well. Indeed, the charger of a cellphone only requires 5 watts when charging. After trying different yield of solar cells we found out that the best choice is to take a panel of 6V. To justify our choice we are going to use a physics formula: P=V*I with P power in watts, V voltage in volts, and I intensity (or current) in amperes. So when the solar irradiation is maximum (that means 1000W/m? = 10A), the yield would be P=6*10=60W (6%). Using a 6V cells means that even if the solar radiation is minimum you can charge your phone anyway. Given the fact that we only need 5W we have to put a small resistance in the circuit to avoid issues in the electric circuit.The product will be first made in China because of lower costs, especially labor cost. Once profitable, the product will be made in the United - States. In order to create long-relationship with customers we are offering a warranty of two years. A two-year warranty seems to be the best because according to a MobileFuture’s research, people change their phones on average every two years. The target is to make customers confident about our product.Keys to Success Cell phones account for a large portion of the huge increase in electricity consumption that has occurred in the last decade. Solar mobile phones can help to slow this increase. This technology has the ability to completely change the way people in these developing countries communicate with one another. These developments will further increase the global cell phone usage, and make cell phones even more accessible to poorer people all around the world. In fact, the majority of solar phones that have been developed have been marketed almost solely in places like Asia, Africa, and Latin America.?In the past few years, the majority of the world’s leading cell phone manufacturers have developed and launched solar powered mobile phones in India. The erratic power supply in many places in India, especially in rural areas, has led to this country being one of the major testing grounds for new solar phones. With proper positioning and pricing, solar-powered cellphones could reach about two billion people across the globe that has no access to electricity. A key appeal of solar-powered cell phones is the growing consumer demand for environmentally sustainable mobile phone devices. Annual sales of greener phones could grow to 105 million handsets by 2014. Also, solar power is an infinite resource. Solar power will continue to advance in efficiency and effectiveness; therefore it is worth the investment because it will continue to improve over time. Critical Issues Cell phone manufacturing to each particular cell phone type could be a potential problem because it would be difficult for every specific phone to adapt to the solar panel installation. In order for this to be a success for all types of cellular devices, we would need to work closely with cell phone manufactures so that it can be available to everyone. Also, deciding where to place the solar panel on the either side of the phone presents a problem. Placing solar cells on the front of the phone is difficult because today phone fronts are virtually display. In order to make this work, the solar cells themselves must be produced by transparent material that only absorbs infrared and ultraviolet light. By placing the solar cells on the back of the phone, people would be inclined to put their phones face down, which can lead to missing important alerts, or potentially harm or scratch the screen. Marketing StrategyValue PropositionCreating a strong value proposition means to be better than competitors and as a consequence being more successful. The SolarCell is a very innovative product that will deliver values for customers. The product is convenient, easy to use, and it meets a lack in the current market. Indeed, it will make the life of our customers easier by not having to worry about their cellphone’s battery. Mission SolarCell aims to develop smartphones that recharge themselves powered by solar and artificial light. Marketing Objectives In our marketing plan we would set out to achieve a solar cell phone that no one has made yet. We are looking to create something that will catch the eyes of everyone around us. For this to happen we will need to promote our product and get it out there for everyone to see. It is important to inform and display that it is an environmental friendly product, recyclable, reusable, and has a convenience charging method. By doing all of this it would show all potential customers how great of a product it is. First things first, by having a unique product that is the only one around we would have to start out at a higher price than average until we get a competitor to join the market. This is a product that could top the charts in the cell phone market. Everyone now a day is trying to go green and by eliminating chargers it’s not just going green but its also saving a lot of hassle on people. Say if your stuck somewhere with no outlets to charge you just turn on your solar panel and get an instant charge. This solar panel will save energy so that when its time to be used you have it.Financial ObjectivesWe would like to reach the break-even point within the first year of activity. In order to do so, our company must sell 1,304 units at a price of $268 each. The revenue that needs to be achieved to break-even is $349, 460. Given our analysis of the break-even point (see graph below), we must generate profits after selling 1,304 products. Target Markets We are introducing a solar powered cell phone called “SolarCell”. We are targeting it to the ages of 16 to 40 years old. In this market it puts it in a wide range because the younger generation is trying to keep up with the modern technologies. Think about it, most of all things that come out we want but we only get a handful of them. We are trying to attract a wide range of people but without making this product something special and at a low price then there is no market for us. That is why we made a phone that no one else has made yet. This cell phone is powered by mini solar panels that will charge your phone for you without even plugging it in. This is something that not only younger generations would be interested in; it is something that everyone would be interested in. We chose this product because it is something that we ourselves are interested in. If this product took off at the right time or even if other companies such as Apple and Blackberry started to use it there would be a ton of profit on both ends.PositioningThe goal of proper product positioning in any market is to keep the product on top of your customers’ mind when they’re considering a purchase. To be successful in proper product positioning one must achieve three objectives:? Differentiate Your product from the competition’s? Address Important customer buying criteria? Articulate Key product (or company) characteristicsExtensive research of the competition is crucial in determining where the product stands and how the message is directed towards the market. Failure to proactively address product positioning is unlikely to end well. With or without proper input, customers will position the product probably based on information from the competitors, which will not flatter the least bit.SolarCell has strongly set the bar on innovation with the implication of solar technology that is integrated into the phones hardware. The company understands the issues regarding sustainability, which is why it has brought a product that is useful on the go and is able to bring alternative power to the table. The figure below shows a list of the competition and where they stand with they’re products as compared to SolarCells. SolarCell has made it clear that they want functionality as well as ingenious design when it comes to the product.SolarCellSamsung CrestSharp Solar HybridPhone ImageCharges from Front and BackYesNo(back only)No(Flip front only)Visually AppealingYesNoYesCharge Time(Per 30 minute charge)10 minutes of extra talk time.5 minutes of extra talk time2 minutes of extra talk timePrice$268$60$179Water ProofNoNoYesFigure 3 Each product has its advantages and disadvantages. For instance, Samsung and Sharp Solar can only charge through either the front or the back of the device. As far as visual design appeal Sharp and SolarCell have established some fashion appeal unlike the Samsung Crest. Charge time per 30 minutes is where SolarCell wins hands down, due to the fact it can provide the user a total of 10 minutes of extra talk time as compared to its competitors. Pricing of the product was determined based off the fact of extra talk time abilities, versatility of charging, and design. Crest on the other hand was initially geared toward the economical shopper in mind since the price was made much lower of the two. Overall, the advantages of SolarCell’s position has led the company to believe that it is a key competitor in the market and has the potential to be a leader in the solar mobile phone movement. StrategiesThe marketing strategy of SolarCell is focused on the ease of the final consumer’s buying process. The first target market consists of people aged 20-35 with mid-to-high incomes and an interest to try new innovations. This group is interested in the contributing to the green energy movement. Since this product offers solar power to charge a cell phone, this will eliminate the use of chargers and the risk of a dead phone. It will create a great convenience to everyday cell phone users that will no longer have to worry about carrying a charger and the security of having a complete battery life all the time. The target market could potentially broaden across the globe to underdeveloped areas such as millions of people in Africa and Asia, with no connection to electricity grids or unreliable and expensive power access. These little solar-powered gadgets are proving to be revolutionary and will provide the future of cell phones to the billions of people with no access to electricity at all. Marketing MixPricing: Our company choose to use the cost-based pricing strategy that consists of first designing the product, then determining the costs, and finally setting the price based on costs. After understanding the different costs that will apply to our product, and in order to achieve a markup of 10%, the price of our product will be of $268 for the first year. The unit price will decrease because the variable costs will decrease. Indeed, the turnover of technology products including cellphones is fast, so we can forecast a decrease in the cellphones we buy originally. Our price for the second year will be $202. Finally for the third year of activity, still because of the fast turnover, new cellphones will be released and the price is likely to be higher so our variable costs will increase and so our price of $324.Distribution: We decided not to make the product ourselves but to subcontract to another company. This company will make the solar panels in a country where sales force is cheap. The solar panels will then be sent to cellphones brand in order for their employees to install the solar panel on the back of the phone. We decided to do so because in their workshop they have the material required to this task. We will distribute our product through our website. We decided not to open a store, or a physical area to display the product in order to avoid extra costs that will automatically increase the final priceChannel distribution Figure 4CommunicationIn order to avoid extra charges from rent and utilities, we’ll only sell our product through our website. In consequence a big part of our marketing communication will be done through the Internet. We’ll have two objectives: being present on social media, such as Facebook (our first targeting social media) and also being on the first page of google research. That will have a certain cost. We’ll also participate in different event to promote our innovative product. After deep research, we found very interesting forum and event taking place in the San Francisco area, that can help us raising the brand awareness. Indeed, there are multiple forum concerning high-tech products or innovative products. Those forums will help us being known and therefore raising our sales. In order to inform and keep attention of people attending those forums, printed ads will be available. The print ads will supply all the information needed for the customers such as how it works, the multiple benefits offered, the warranty, the price, and also information about our company (contacts for example). Marketing ResearchSolarCells’ research discovered that out of 50 the participants surveyed, 33 would be inclined to buy a mobile device that would receive a supplemental charge of solar power. Of those 50 participants, 14 would be somewhat interested in the product and remaining three would not. The below figure shows each participant rated from very likely to not likely. In addition we have calculated the percentage of desirability by dividing the total number of people by the final score. This calculation is able to show us an overall percentage of the surveyors that placed an interest in a solar power alternative. This is most likely due to the fact that the majority of the group places a high-perceived value on sustainability.Inclination to Purchase Solar Powered DeviceVery LikelySomewhat LikelyNot Likely3314366%28%.06%Figure 5Out of the people surveyed SolarCell has concluded that the majority of the target market would be inclined to purchase the product. Out of the 50 people surveyed, 66% we’re able to see the use of the product and would most likely make the purchase. This would lead SolarCell to a higher rate of success towards buying than a person who is unlikely at .06%. The participants who were somewhat likely have the potential to be persuaded since they display signs of interest. In this case it can be for the better since there was an initial display of interest yet need to be persuaded by added value. A portion of the survey was designed to determine the amount of sun exposure each participant was exposed to. In addition we were able to tally how many hours a day their mobile devices lasted on a single charge. The figure below is a representation of the battery life till next charge and sun exposure per day in hours. What this chart shows is that a majority of mobile electronic users are in direct sunlight most of the day. With that much exposure it would add to the life of the battery and further use of the device for a longer period of time. This would set an advantage over the competition by adding value since it is versatile in all area of everyday life.Battery Life till Next Charge2-5 hours6-10 hours10-15 hours1628 6Sun Exposure in Hours Per Day1-3 hours3-6 hours6-9 hoursSun up to Sun Down1220180Figure 6FinancialsBreak-even AnalysisThe break-even point is when the company doesn’t make any profits.First we had to determine our costs, variable ones and fixed ones.Variable costs per unitCellphone price$ 200.00Solar panel manufacturing$ 10.00Solar panel raw materials$ 2.00Wages of people installing$ 0.40Fixed costs per yearWages (2) $ 62,500.00 Marketing expenses $ 10,000.00 The first tab is what the second one is based on.Timeunits startunits incrementunit priceunit variable costtotal fixed costsQuarter0150 $ 268.00 $ 212.40 $ 72,500.00 Units Sales Variable costsCMTotal costsNet income0 $ - $ - $ - $ 72,500 $ (72,500.00)150 $ 40,200 $ 31,860 $ 8,340 $ 104,360 $ (64,160.00)300 $ 80,400 $ 63,720 $ 16,680 $ 136,220 $ (55,820.00)450 $ 120,600 $ 95,580 $ 25,020 $ 168,080 $ (47,480.00)600 $ 160,800 $ 127,440 $ 33,360 $ 199,940 $ (39,140.00)750 $ 201,000 $ 159,300 $ 41,700 $ 231,800 $ (30,800.00)900 $ 241,200 $ 191,160 $ 50,040 $ 263,660 $ (22,460.00)1050 $ 281,400 $ 223,020 $ 58,380 $ 295,520 $ (14,120.00)1200 $ 321,600 $ 254,880 $ 66,720 $ 327,380 $ (5,780.00)1350 $ 361,800 $ 286,740 $ 75,060 $ 359,240 $ 2,560 1500 $ 402,000 $ 318,600 $ 83,400 $ 391,100 $ 10,900 1650 $ 442,200 $ 350,460 $ 91,740 $ 422,960 $ 19,240 1800 $ 482,400 $ 382,320 $ 100,080 $ 454,820 $ 27,580 1950 $ 522,600 $ 414,180 $ 108,420 $ 486,680 $ 35,920 2100 $ 562,800 $ 446,040 $ 116,760 $ 518,540 $ 44,260 Table 1So finally, we get this break-even graphBreak-even units1304Break-even revenue $ 349,460 Sales Forecast For the first year, we plan to sell ten units per day. For the second year, as the price will be lower, more customers will be attracted to our product. Furthermore, our brand awareness will be also higher resulting in more sales. So we plan to sell 15 units a day. For the third year, we plan to sell ten units a day again. Indeed, the price sensitivity is high and given that our price will be higher, fewer people are expected to buy the SolarCell.YearsQuartersBeginningUnits soldRevenue1st year1st quarterJuly 1, 2014657 $ 176,114.29 ?2nd quarterOctober 1, 2014657 $ 176,114.29 ?3rd quarterJanuary 1, 2015643 $ 172,285.71 ?4th quarterApril 1, 2015650 $ 174,200.00 2nd year?July 1, 20153921 $ 792,128.57 3rd year?July 1, 20162607 $ 844,714.29 Table 2Expense Forecast Our marketing expenses are only fixed costs. So this is our expected marketing expense.Google ad cost $ 4,500.00 Social media cost $ 4,500.00 Forums/Events $ - Print ads $ 1,000.00 Wage (1 person) $ 31,250.00 ??Total per year $ 41,250.00 Total per quarter $ 10,312.50 Table 3Controls Controls are what we measure to discover the success of our product. We have to sell the phones in a fashionable and reasonable way. Once the phone starts getting its name out there then the product will be on the up rise. After you get phone sold then you have to focus strongly on the accessories that will work for it. Once everything starting going in the right direction then that’s when our customers will be satisfied. Passing out surveys to the customers will give a rating of what we need to improve on if needed. These surveys would include overall customer satisfaction, agreement that the phones are user friendly, good for the environment and cost friendly. In the end it would still need to be promoted to top other retailers. It would need to be advertised everywhere for everyone to see.Implementation Marketing activities play a major role in the company’s magnitude of success. Strategic planning and timely implementation need to occur in order to properly manage the release of the solar cell. Change is what will help improve the company or fix anything that is going on. This can occur to anything within the company. Development is organizational, and it’s something we keep all employees close on. You have to share information with them so that they feel in with everything going on. Having all these priorities helps with everything in the company like due dates, financial data, and as well as the workers’ needs. This helps the company to move forward. First would be source out and brainstorm the products needed to make the product. When that is complete you start looking for your loyal employees. The process takes of after your first few steps. You’re always thinking of new ideas for everything in the company. We will need to branch out and find another company to make the panels for the phone. After we get them up and running we need to make a website for use to sell the product on. These are two of the major process for the company.Marketing OrganizationOur company is composed of two people that are working closely together. Our company is not pretending to be a multinational firm with lots of employees, this is more a friend-run company. Two good friends set up this project, one is dealing with the marketing part and the other is dealing with the financial part. Both of them are responsible for finding customers.Contingency PlanningSolarCell could possibly be faced with uncontrollable factors that could possibly harm the outcome of the product. One possible factor could be technology changes. This rapid technological development is not something that should be a surprise to anyone. We consistently see new technology come out with a better version right on its tail. Consumers shouldn’t expect technologies to last very long in today’s constantly advancing environment. Also, cultural changes could arise and effect the way consumer’s views our product. Current trends could change the way the consumers taste in the model of cell phones. And furthermore, natural resources or materials could pose a threat to the success of the company as well. With sunlight being a natural resource, it is limited to the locations in which it is present. It could occur in small sporadic areas and it is vital to the phone that it receives the right amount of sunlight in order to work successfully. References:"San Francisco, California (CA) profile: population, maps, real estate, averages, homes,statistics, relocation, travel, jobs, hospitals, schools, crime, moving, houses,news." Stats about all US cities - real estate, relocation info, crime, house prices,cost of living, races, home value estimator, recent sales, income, photos, schools,maps, weather, neighborhoods, and more. N.p., n.d. Web. 15 Oct. 2013. "San Francisco County Demographics - Census Data for San Francisco County, CA."California Demographics - Get Current Census Data for California. N.p., n.d.Web. 15 Oct. 2013. HYPERLINK "The Most Current, Easy-To-Consume San Francisco County Demographics AvailableINSTANTLY, In One Place. (n.d.). San Francisco County Demographics.Retrieved December 5, 2013, from " The Most Current, Easy-To-Consume San Francisco County Demographics AvailableINSTANTLY, In One Place. (n.d.). San Francisco County Demographics.Retrieved December 5, 2013, from Solar Panels Don't Need Direct Sun. (2010, August 28). NationalGeographic. Retrieved December 5, 2013, from Cell Phones Change the Way the World Communicates. (n.d.). Solar Cell PhonesChange the Way the World Communicates. Retrieved December 5, 2013, from, S. (2009, June 11). Samsung Crest E1107 Solar Cellphone: Sun-Powered, DirtCheap At $59. Gizmodo. Retrieved December 8, 2013, from, S. (2010, February 27). Sharp announces SOLAR HYBRID SH6230C andSH6228C with Memory LCD, fun in the sun mobiles. New Launches. RetrievedDecember 8, 2013, from ................
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