Marketing Project Presentation

1/18/2015

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United Green Technologies

Bryan Hall – Chief Executive Officer/President

Kristjan Archer – Vice-President of Customer Relations

Allison Caparros – Chief Operating Officer

Arthur Deakin – Vice-President of Research and Development

Ashley Knipp – Chief Creative Officer

Travis Wert – Chief Information Officer

Introduction

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Table of Contents

1. Introduction

2. Product Selection

3. Product Plan

4. Industry Overview

5. Target Niche Analysis

6. Pricing Plan

7. Distribution Plan

8. Promotion Plan

9. Next Steps and Summary

United Green Technologies

Manufacturer in Cincinnati, Ohio which specializes in sustainable technology

Recent performance and maturation has led UGT to point of insolvency

New product, UV Green will jump start sales growth

Target markets of Santa Barbara, CA; Evanston, IL; and Syracuse, NY

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

FY 2012 FY 2013 FY 2014 FY 2015

Recent Performance

Pro Forma Revenue Capture from UV

Green

Sales Figures and Performance: Historical and Projected

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About UV Green

Computer peripheral industry is mature and saturated with legacy products

UV Green utilizes laser technology to manipulate a pre-treated page

Completely safe and environmental effect of paper is negligible

Cost effective and eco-friendly because no ink is used

Compatible with battery (chargeable) and solar panel

Proprietary technology with seven patents

Characteristics Aesthetics

The Science behind UV Green

Focuses nitrogen TEA (Transversely Excited Atmospheric) laser on pretreated paper

Capsules in nanotubes release chemicals through the use of NanoLace® technology*

The capsules are sprayed onto the paper

Laser is focused with an optic fiber

TEA Laser

Citric Acid

*United Green Technologies consulted with Professor Kandel, Ph.D. and Professor Hildreth, Ph.D. from the University of Notre Dame and the product’s three inventors to develop NanoLace®

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Product Selection

Competitive Product Scorecard

Comparable company research demonstrates that UV Green has a differential advantage in the computer peripheral landscape.

Competitive Product Scorecard Products (see key below)

20 Characteristics A B C D E

1. High value in use/ low cost to make it. 6 7 5 6 10

2. Protection (patents, special knowledge, share). 6 1 4 6 10

3. Ease of use. 3 3 6 4 10

4. Differential advantage. 2 6 4 6 9

5. Rate of technological change. 4 5 3 5 9

6. Type and degree of competition. 5 4 4 4 8

7. Unique and trendy. 1 6 2 3 10

8. Shelf space at retail. 7 2 4 6 9

9. Prior use patterns. 4 2 4 7 8

10. Affordable. 3 4 3 3 9

11. Newness. 2 7 3 5 10

12. Divisibility. 4 5 3 4 9

13. Rate of use. 6 2 5 6 10

14. Durability. 4 3 3 5 10

15. Life Cycle. 2 4 3 5 10

16. Bankable. 3 4 4 7 10

17. Fundamental trends. 2 5 4 4 9

18. Size of market for like products. 5 3 5 6 8

19. Consumer purchase patterns. 3 7 5 5 9

20. Web friendly. 2 2 6 3 9

Total 74 82 80 100 186

Average 3.7 4.1 4 5 9.3

A: Xerox Phaser 3250

B: Mini Mobile Robotic Printer

C: Epson WorkForce All-in-One

D: Hewlett Packard Laser Jet

E: UV Green

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Utility Bundle Analysis

Comparative Utility Bundle

Xerox Phaser 3250

Mini Mobile Robotic Printer

Epson WorkForce All-in-One

Hewlett Packard Laser Jet

UV Green

1. Form 4 8 6 2 10 2. Time 5 6 8 5 8 3. Place 5 8 7 4 9 4. Possession 6 7 8 6 10 5. Image 1 7 3 7 9 6. Information 7 3 4 3 8

Score: 28 39 36 27 54

Average: 4.67 6.5 6 4.5 9

UV Green has an exceptional advantage in form and possession utility. Outperformance across categories leads UV Green to a score twice the

average of its peers.

Product Selection

Examined a compilation of 40 niche

products

Selected UV Green for marketing and

strategy design

Key Characteristics: portable, green*,

time and money saving

Given results from the competitive

scorecard, utility bundle analysis, and

research, UV Green is optimum choice

*Solar Panel

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Product Plan

Goals

Primary Goals

• $3.5 mm in web sales and $8.125 mm in retail stores.

• 7.3 units per store per day

• Achieve 40% recognition among target niche (CPAs) within the first year

Secondary Goals

• Three new patents per stage of evolution

• Maintain an average of 0.9 on the Product Scorecard

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Product Life Cycle

New Life Cycle Stage: UV Pure 3D ($700)

Eco-friendly 3D printer that uses only recycled materials

Maturation Stage: UV Gamma ($275)

Wireless booster and twice the printing speed as UV Green

Crash Stage: UV True ($250)

Made of recyclable materials and supports UGTrees

Competition and Retaliation Stage: UV Hue ($300)

Colored Printing

Introduction Stage: UV Green ($337.54)

Eco-friendly, green, inkless, portable

Maslow Utility for Future Products

As UV Green evolves, the future products fulfill even more of Maslow’s utility needs, further increasing the value of the product.

Maslow's Hierarchy UV Green UV Hue UV True UV Gamma UGT Laser 3D

1) Physiological X

2) Safety X X X

3) Love/Belonging X X X X X

4) Self Esteem X X X X X

5) Self Actualization X X X

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Industry Overview

Product Life Cycle

Competitors are in the maturation of their life cycle. UGT significant opportunity to attack their market share. UGT determined that Epson is

weakest in the peer group

12%

21%

4%

20% 3%

40%

Others

Canon

Roland

Epson

Ricoh

HP

Hewlett Packard strongest in Industry, Epson demonstrates

opportunity to Attack UV Green

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Industry Profile Pyramid

Research indicates that consumers are dissatisfied with Epson’s products, leaving room for United Green Technologies to take a

portion of Epson’s 20% market position.

Hewlett- Packard (40%)

Epson (20%), Dell (5%)

Xerox (3%), Mini Mobile Robotic Robotic Printer (<1%)

Clear market leader

Mature players with sizable market positions

Tangential role in market or momentum players

Trend Ratios and Momentum

UV Green will have tailwinds from social, political, economic, and tech trends.

Zerox Phaser 3250 Mini Mobile Robotic Printer Epson WorkForce All-in-One Hewlett Packard Laser Jet UV Green

1) Government Incentives for Green Technology - - - + +

2) Intellectual Property Protection - - + + +

3) Ink Disposal Legislation - - - - +

4) Legal Case Precedent - - - - +

Political Subtotal 0 0 1 2 4

Subtotal Average 0.00 0.00 0.25 0.50 1.00

5) Wireless Connectivity to Internet Platforms + - - - +

6) Cost Savings from Tech - - - - +

7) Solar Power/Light Refraction - - - - +

8) Lack of Change - - - - +

Technological Subtotal 1 0 0 0 4


9) Cost Conscious College Students - - - - +

10) Environmental Movement - - - + +

11) Millennials Opt for Convenience - - - - +

12) Patriotism: Made in USA - - - - +

13) Slimmer/Sleeker is Better - - - - +

Social Subtotal 0 0 0 1 4


14) Projected Industry Growth + + + + +

15) Increase in Ink Cost - - - - +

16) Economic Recovery + + + + +

17) Falling Price of Semi Conductors + + + + +

18) Rising Price of Oil - - - - +

19) Household Wealth + + + + +

20) Per Capital Disposable Income + + + + +

21) Economies of Scale + + + + -

Economic Subtotal 6 6 6 6 7


Total Trend Momentum Average 0.33 0.29 0.33 0.43 0.90

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Technology Stage Analysis

The technological landscape in the printer market is old and mature.

UV Green LaserJet Inkjet

Geographic Target Markets

With a target market in professional services, United Green Technologies sees significant potential on the east coast, west coast, and in the Midwest

% of Adults in Business Jobs (2013) % of Adults in Business Jobs (Projected 2018)

5 Year Transition

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Target Niche Analysis

Buyer Profile: Hobbies & Occupations

Middle to upper class

Young Adults 25-34

Professionals and students studying to move into respective professions: Millennials

PRIZM Analysis

Occ

up

atio

ns • Photographers

• Accounting

• Finance

• Research Industry

• Scholar

• Novelist

• Publisher

• Poet

• Advertising

• Architect

• Small offices

• Academic

• Secretary

Ho

bb

ies • Arts and Crafts

• Sustainability Clubs

• Publications Clubs

• PTA

• Pinterest Members

• Scrapbooking

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Why is UV Green bought over competitors?

Consumer problems Xerox

Phaser HP

LaserJet Epson

Workforce Mini

Mobile UV

Green

1) Initial setup 4 8 9 6 9

2) Printing capacity 6 5 9 4 8

3) Jamming Issues 5 7 5 9 9

4) Build quality 9 7 4 5 9

5) Network Capabilities 5 4 6 8 10

6) Breakdown of printer 4 6 5 4 8

7) Size of ink cartridge 8 8 4 2 10

8) Price of ink cartridge 8 3 4 2 10

9) ADF* tray setup 9 4 4 8 8

10) Operating life 4 8 7 3 9

11) Print speed 6 7 7 3 8

12) Hardware of printer 5 7 4 5 9

13) Software for printer 4 7 8 5 9 Software compatibility** 4 7 8 5 9

Average 5.8 6.3 6.0 4.9 8.9

Maslow’s Utility Bundle

Average Score

Physiological 9

Safety 9

Love/Belonging 9.3

Esteem 9.3

Self Actualization 9

Determination of Target Market

C

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1 Photographers 7 6 5 8 9 8 10 10 63 7.9

2 Business

Professionals 9 10 10 10 10 10 10 10 79 9.9

3 Writing

Process 10 10 10 9 9 10 10 9 77 9.6

4 Architect 8 8 9 7 8 9 10 7 66 8.3

5 Arts and

Crafts 10 7 9 10 10 9 9 10 74 9.3

6 Student Clubs 10 6 7 10 6 10 6 8 63 7.9

7 PTA 10 5 5 10 6 8 6 8 58 7.3

In a macro matrix, UGT compared 35 hobbies and occupations, narrowed to 19 with a score above 9.0

Created micro matrix with reselected criteria

Focused on most impactful categories with variance analysis

Top 3 most benefitted markets

Reveals that Business Professionals are UV Green’s target market

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Target Niche within Target Market

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Dif

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Div

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Mar

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Size

Co

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Ho

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TOTA

L

AV

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GE

1 Architects 6 6 5 8 9 8 10 8 60 7.5

2 CPAs 10 10 10 10 9 10 10 10 79 9.875

3 Market analysts 10 10 9 8 10 10 10 9 76 9.5

4 Financial advisors 10 8 9 10 9 8 10 9 73 9.125

5 General management 7 7 9 10 8 10 9 6 66 8.25

6 IT directors 7 6 7 10 6 8 10 6 60 7.5

United Green Technologies plans to target CPA’s because their professional aligns with UGT’s targeted 40 hrs. per week of use.

CPA Selection Explanation

UV Green effectively satisfies all the basic needs of consumers as seen by Maslow’s Utility Bundle.

UV Green eliminates the majority of consumer problems experienced with competitive products.

Target Niche: CPAs

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Pricing Plan

Goals

$8.125 mm in brick & mortar retail sales and $3.5 mm in online sales

Profit margin of 61.20%

0%

10%

20%

30%

40%

50%

60%

70%

Industry Gross Profit Marign Targeted Gross Profit Margin

Margin Profile

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Pricing Strategy

Price Based off relative strength of UV Green to comparable products universe

UV Green at $337.54 is priced at the top of the comparable products hierarchy

Utility Bundle Competitive Product

Scorecard Weighted Average

Xerox Phaser 4.67 3.7 4.19 Comp Ratio from Competitors

Mini Mobile 6.5 4.1 5.3 4.81

Epson Workforce 6 4 5

HP LaserJet 4.5 5 4.75 Multiple

UV Green 9 9.3 9.15 1.9x

Pricing determined by weighted average comparison between UV Green’s competitive product score/utility score and the peer group.

Push Strategy

5

4 5

Given the skim pricing strategy of UV Green, UGT will strategically place sales representatives to promote its product.

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Breakeven Analysis

Price Based off relative strength of UV Green to comparable products universe

UV Green at $337.54 is priced at the top of the comparable products hierarchy

Unit Price $337.54

% of COGS that are Fixed 55%

Units Sold per Day 94.37

Sales COGS Fixed Costs Units

Retail $8,125,000 $3,152,500 $1,733,875 5136.80

Online $3,500,000 $1,358,000 $746,900 2212.77

Total Units Sold 7349.57

Days to Breakeven 77.88

United Green Technologies expects to breakeven in a month and a half.

Price Optimization

Retail Sales Online Sales

Sales Face Value $8,125,000.00 $3,500,000.00

Real Sales Value $6,500,000.00 $3,500,000.00

Unit Price 337.54 337.54

Paper Selling Price *Ream 15 15

Cost to Acquire Paper *Ream 1 1

Consumer Ream Usage 9490 9490 Total Sales

Reams Bought per Year 18.98 18.98 $10,000,000.00

Profit on Reams per Customer $265.72 $265.72

% to Retailer 20% 0%

Units Sold (excluding paper sales) 24071.22 10369.14 Paper Usage (Day)

Units Sold (with paper sales) 12132.48 5801.81 26

United Green Technologies will benefit from a price skim strategy and cross selling the specialty paper along with the printer.

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Distribution Plan

Short Channel Design

Producer

Retailer

Consumer

Producer

Consumer

UGT intends to utilize a short channel to enhance the image of UV Green, strengthen customer service, improve quality control, and maintain

influences over our product prices.

WEB

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Channel Structure

Selective Coverage

$8.125 Million

California

$2,700,000

Santa Barbara

UC Santa Barbara

Apple Store

Campus Bookstore

Brookstone

Illinois

$2,700,000

Evanston

Northwestern

Apple Store

Campus Bookstore

Brookstone

New York

$2,700,000

Syracuse

Syracuse University

Apple Store

Campus Bookstore

Brookstone

= 7.33 Printers /day/store

Web Sales: 35% 28.4 printers/day

Distribution Centers

Two distribution centers

Youngstown, OH

Riverside, CA

With distribution centers in strategic locations, UGT will be able to successfully distribute its products.

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Promotion Plan

Key Computer Peripheral Buzzwords

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Strategies

SKIM strategy

PUSH strategy

Aggressive advertising strategy

High value in use

TV Space

Specialty Circulars

Trade Meeting

Online Ads

Social Media

Advertising

Communication Mix Goals

60,000 hits on UGT’s UV Green website in first 6 months

100 new followers per month on Twitter account

500 likes per month on UV Green Facebook page

Media Schedule

Pre Launch Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total

Word of Mouth 12.0 4.2 4.2 4.2 2.2 3.2 4.2 2.2 2.2 2.2 2.2 3.2 4.2 50.0 Publicity 8.0 4.5 4.5 4.5 2.5 3.5 4.5 2.5 2.5 2.5 2.5 3.5 4.5 50.0

Personal Selling 5.0 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 20.0 Advertising 20.0 9.8 9.8 9.8 7.8 8.8 9.8 7.8 7.8 7.8 7.8 8.8 9.8 125.0

Total by Stage 45.0 19.7 19.7 19.7 13.7 16.7 19.7 13.7 13.7 13.7 13.7 16.7 19.7 245.0

*In thousands

$245,000 in first year to advertising expenses

$20,000 to jump start efforts online and

Devote $12,000 in pre launch stage for sustainability contest

$8,000 in publicity expenses and exposure to targeted conferences (AICPA)

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Facebook Advertising

Twitter Advertising

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Website

United Green Technologies wishes to give a seamless, and user friendly social network and product sites for their consumers.

Advertisements

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Celebrity Endorsement

Adam Scott: Actor known for

his role as an accountant in

Parks and Recreation

Next Steps and Summary

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Summary

UV Green

Saves time, saves money, saves the environment

$337.54 per unit

Profit margin of 61.2%, Break even in 78 days with 65% of sales (40% markup) from retail and 35% of sales from the web

9 stores in 3 cities: Santa Barbara, CA, Evanston, IL, and Syracuse, NY.

2 midpoint distribution centers in Riverside, CA, and Youngstown, OH.

Strategies: Skim and Push (CPA’s target)

Upper range of price points and aggressive advertising Target market: Business professionals and students

Marketing Project Presentation

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