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Strategic Business Proposal
for
For: Tile, Inc.
https://www.thetileapp.com
Prepared On: October 13, 2019
Prepared By: Grecia Rayme, Melissa St. Pierre, Christopher Griffin, Joseph De Pool
Instructor Name: Jennifer Marshall
Strategic Business Proposal Page 2 of 35
Introduction
Executive Summary
To the Tile Board of Directors:
Have you ever attended a music festival surrounded by thousands of people and all of a sudden you can’t
find your phone? At that moment your heart drops and you start panicking. Losing or getting your phone
stolen can be one of the most frustrating situations that can happen to anyone. Even with all the
accessible and inexpensive applications that allow you to track your mobile devices, it still does not
guarantee that your mobile device won’t go missing. What if there was a way to track your phone’s
location in a crowded scene even after it completely runs out of battery?
Tile has changed the game in technology for tracking items such as keys, wallets, and phones. We’re
proposing to innovate changes that will leave customers satisfied. The new innovative TileTach will
remove the limit zone range, and provide a higher security tracker for your iPhone. The TileTach works
through the use of a GPS module, which sends data through GSM to a cloud database to track the
location. iPhone users will no longer have to fear the thought of losing their device in large crowds.
Above all tracking apps available to download for the tracking of your phone, users will hop on the
bandwagon to purchase TileTach. Tile provides an excellent service to its customers worldwide and
ensures that misplaced items can be found. Moreover, TileTach will open the opportunity for new
partners such as Coachella, Lollapalooza, and many more music festivals. Let us keep track of your phone
while you enjoy life.
_______________________ _______________________ _______________________
Grecia Rayme Melissa St. Pierre Christopher Griffin
_______________________
Joseph De Pool
Strategic Business Proposal Page 3 of 35
1: Challenges & Solutions
Organizational Challenges
In 2012, Tile, Inc. launched its mobile tracking devices and services to customers. Tile’s mission is to
create “a world where everyone can find everything that matters” (About Tile, 2019). Tile proposed a
solution to people’s items that were being misplaced and lost. The development of this idea has been
successful, but there have also been some unfavorable flaws. Originally, Tile products did not guarantee
to its customers that the purchase of their product will last forever. Customers questioned if it was worth
purchasing a product that they would have to replace every year. As a result, Tile resolved that issue by
changing its products to come with replaceable batteries. The current design of the product to track
phones is a sticky pad, which can be easily removed. According to the article, “Tile is The Worst Tech
Stocking Stuffer,” because the products are “cheap chunks of frustrating plastic” (Weber, 2017). In 2018,
Simon Fleming-Wood, Chief Experience Officer at Tile “confirmed that while Tile saw year-over-year
growth last season, sales were lower than expected” (Newman, 2019).
We asked ourselves, how do we develop a design that customers will love, while the product is durable
with the assurance of keeping customer’s phones tracked at all times? According to a study done in 2016,
2,000 adults said that they “will typically misplace four items a month with keys, mobile phones, pens
and glasses” (Express, 2016). Some of these items that are misplaced are taken to music festivals on a
regular basis, mainly phones and keys. Festivals are usually crowded with thousands of people,
therefore, taking extra caution of your items is a must. However, sometimes these items are still
misplaced without notice, and could potentially be stolen by other bystanders.
Last year during the two weekends of Coachella, “nearly 200 people’s phones were stolen” (Bush, 2017).
With much research and the brainstorming of ideas, we can solve the problem that is currently keeping
customers away from purchasing Tile products and assist them in tracking their most valued
technological devices while offering a one of a kind experience to our customers.
Strategic Business Proposal Page 4 of 35
Proposed Solution
The solution to the design is to allow customers to track their lost and/or stolen phones through the use
of the product without having to worry about battery life and the pairing of Bluetooth. The new design
of the product can be inserted into the charging port of the phone to offer a more secure form of
tracking. The device will be called “TileTach” and will be secured with a locking mechanism. The
consumer will receive the key to unlock the TileTach when they purchase the product. The TileTach
works through the use of GPS module, which sends data through GSM to a cloud database to track the
location. During the first year of launch, the product will be offered to Apple users. Reviews from those
customers after the first year will determine whether the development for other devices will continue.
As a result, we will work on an expansion of TileTach to be compatible with other cellular devices.
As a result, the proposed solution will open up future opportunities to partner with different music
festivals to help prevent the loss of phones during those events. When consumers purchase their tickets
for those music festivals online, the option to purchase the TileTach to track their phones during the
duration of the festival will be offered. All TileTach products will have a one-year warranty. Booths will
be set up around the festival grounds to offer assistance to the festivalgoers that are looking for their
lost or stolen phones. By creating TileTach we would be giving the user more security with the lock only
being able to be opened by the key. The device can’t be removed without the key assuring the device
will be tracked for the duration of the TileTach battery. This will offer more protection from theft because
the thief is unable to remove the TileTach without the key and the phone can still be tracked even if the
phone is turned off.
2: Environmental Scanning
Internal Analysis
Company Overview
Tile, Inc. is a private company that was founded in 2012 by Mike Farley and Nick Evans. The company
was founded through a crowdfunding campaign. In 2017, Tile announced its back up partners with
Bessemer Venture Partners, GGV Capital, and Khosla Ventures (Perez, 2017). The first original Tile
product cost $25 for one and $70 for four, they are currently still available, but the price has increased
Strategic Business Proposal Page 5 of 35
to $30 and $100 respectively (Dunn, 2016). Being that Tile Slim is the first original product nothing has
changed about it. Its battery life lasts one year, and the design is made to stick on items such as wallets,
passports, and so on (About Tile, 2019). According to Tile, their “global community spans over 230
countries and territories and helps people find more than 3 million items every day” (Tile, 2019). All Tile
products come with a one-year warranty from the date of delivery of the product. Customer satisfaction
is guaranteed and if a customer did not get what they expected after they purchased a Tile product, they
have a 30-day policy return (Tile Products, 2019). Tile is one of the world’s best-selling Bluetooth trackers
and is available in big retailer stores such as Target and Best Buy (About Tile, 2019).
Financials Standings
Every metric from units sold to company revenue has been growing since its release. Their first $200,000
USD investment was acquired by Tandem Capital as seed money. By 2013, Tile started a crowdfunding
campaign using Selfstarter and raised over $2 million USD. As a result, this helped them achieve $200,000
presales with the capital. Their last investment was in August 2019 and Tile managed to raise $45 million
USD (Craft, 2019). Tile has also experienced exponential growth in the number of Tile Mate units sold.
In 2015, the company had a total of 2 million units sold and by 2017, it had sold 10 million units (Tweney,
2015). Today, Tile is reported to be worth 100 million USD.
Organizational Strengths
Tile, Inc. has several strengths in its organization. The company is known worldwide and has over 20
million customers spanning over 230 countries. Tile offers different levels of its products including the
Tile Pro, Mate, and Slim. Each product meets the needs of its customers. All Tile products purchased on
the Tile website are shipped free within the U.S., have a 30-day return guarantee, and a one-year
warranty. The Tile app allows users to track their connected items at all times. After Tile received many
negative reviews from customers regarding the battery life of its products, they changed its Tile Pro and
Tile Mate to have replaceable coin batteries (Lee, 2018). As a result, customers no longer had to purchase
a new Tile. Living in a world where people are always on the go and technology is vital, Tile makes
people’s lives easier.
Strategic Business Proposal Page 6 of 35
Organizational Weaknesses
The design of the Tile products has become a conversational topic being that it is made out of plastic.
People question whether the product is worth purchasing. The smaller the Tile, the more it costs and
the longer-range capacity it has to track your item. Only the Tile Pro and Tile Mate have a one-year
battery replacement, the Tile Slim does not. Tile also offers a trade-in program where customers can
trade in their Tile every year for a new one. However, customers complain that the purpose of the item
is to remind you of things you are missing, not for customers to remind themselves every year to trade
in their Tile product for a new one (Ion, 2015).
Customers
The targeted customers are males and females between the ages 21 to 30. They have an annual
household income of $60,000 and are in the workforce field. Also, they enjoy hanging out with friends,
attending music festivals and concerts, use their smartphones regularly, are interested in the newest
technology, and are active on social media platforms (See Appendix 1).
Collaborators
Tile recently has teamed up with Google to make it easier for users to locate their lost items using their
Android devices and others using Google Assistant (Perez, 2019). Tile has also recently partnered up with
Skullcandy and Sennheiser. Both audio headphone companies now have models that have Tile
integrated with them that allows users to keep track of their items. Tile is also partnered up with
KeySmart, Nomad, BLE, and Herschel (About Tile, 2019).
External Analysis
Competitors
Tile has many competitors due to its business sector being a relatively new one. However, Tile’s main
competitors are TrackR, Pebblebee, and Chipolo. TrackR has been in business since 2009 and entered
the market three years before Tile did. Tile offers water resistance, a loud beeping sound, a wider
Bluetooth rang, and lower purchase price. Even though the TrackR is outmatched by Tile, TrackR still
earns 33 million USD, which is more than Tile per year (TrackR-Owler Company Profile, 2019). Chipolo
had the loudest tracker on the market before the Tile Pro was released and also offered a water
Strategic Business Proposal Page 7 of 35
resistance product. However, Chipolo’s Plus model does not offer the battery to be replaceable like the
Tile Pro and Mate. To have a replaceable battery with Chipolo, you must buy the Classic version, which
has a substantially lower alert beep volume than its upgraded Plus version. Pebblebee is also a strong
competitor. Pebblebees’ most notable feature is that has one of the highest Bluetooth ranges in the
market. Pebblebee has a max range of 200 feet while Tile is 100 feet. Moreover, Pebblebee also has an
impressive 95-decibel alert volume. Tile earns about 8 million USD annually more than Pebblebee
(Michaels, 2019) (See Appendix 2).
Business Climate
Political and Regulatory
Tile, Inc. is not affected by the political and regulatory sphere. There are no current laws that affect the
development or release of TileTach.
Economic
The economic climate for Tile is great. Since their release, they have increased units sold, gained revenue,
and every round of funding has surpassed the last. Tile has also most recently seen a 160% growth in the
European market just last quarter (Lunden, 2019).
Social and Cultural
According to Tile, the makeup of their products is “80% of the US retail market” (Tile, 2019). Through
Tile’s website, people write their reviews whether they had a great experience with the Tile products or
not. Nowadays when people make a purchase they go based on the reviews. Moreover, Tile uses social
media platforms to interact with their customers. In 2017, Tile posted a video on YouTube, “tile |Lost
panda |together we find,” which has received over 7 million views, 49,000 likes, and over a thousand
comments (Tile, 2017). The storyline of the video showed a panda stuffed animal that gets lost by its
owner and is going through all these different scenes to find its way back home. At the end of the video,
the panda reunites with its owner. This video created an emotional appeal to the viewers, which is done
to persuade them to purchase a Tile product.
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Technological	
Tile’s partnership with BLE has them in the process of developing smaller chips to supply a wider range
of products. Tile currently is in plans to have smaller devices like earbuds already come integrated with
the Tile technology (Perez, 2019).
Business Opportunities
The phone loss epidemic is growing in the music festival sector. For example, in 2017 a man was caught
stealing 100 cellphones in his backpack while attending Coachella (Plaugic, 2017). While this man was
caught, not everyone was so lucky to catch the culprit that took their device. Setting up booths at music
festivals or immersing themselves with the music festival market would be a great opportunity for Tile
to not only solve such issues but also increase its popularity and partners.
Business Threats
The biggest threat and most recent threat to Tile is the Apple Tag. Apple now wants to step into the
personal tracker industry and create their tracker device (Tillman,2019). Considering that Apple is on top
of the development of technology, it would be no surprise if they find a way to make the Tag more
integrated with Apple devices. As a result, this could potentially persuade Apple customers to buy the
Tag instead of Tile products.
Strategic Business Proposal Page 9 of 35
3: Strategy Implementation: Operations, Marketing and
Legal
Operations Expense Assumptions
Organizational Chart
Tile is currently in the business industry developing tracking devices for items, therefore, the addon of
the TileTach will not have an impact on how the business is operating. According to the article, “The Best
Bluetooth Tracker,” Tile Pro is considered one of the best Bluetooth trackers for keeping tabs on your
most valuable items (Guy, 2019). The engineer department will take charge of developing the newest
innovative tracking device. The main responsibility of the engineering department is to ensure that the
design and hardware of the TileTach are operating at its highest level.
New Employees
According to Tile’s LinkedIn page, the company currently employs over 353 professionals (LinkedIn,
2019). Due to Tile having a big team of employees, it will only be necessary to hire a few of new
employees. Hiring a full-time Engineering Tech will be done to bring the TileTach idea to life. According
to Glassdoor, the average annual salary for an Engineering Technician is $47,916 (Engineering Tech
Salaries, 2019). In the first year, the total expense of salaries for employees is a total of $47,916.
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In the second year, the full-time Engineering Technician will continue working exclusively for TileTach
for an annual salary of $47,916. Also, a part-time Marketing Coordinator will be to take over the
marketing of Coachella. According to Glassdoor, the average annual salary for a part-time Marketing
Coordinator is $47,793 (Part-Time Marketing Coordinator, 2019). Also, 20 part-time tech interns will be
hired to help manage the booths at Coachella. Since Coachella starts at 11 am and finishes around 1 am,
10 interns will work the first seven hours in the morning and the other 10 will work the last seven, until
Coachella wraps for the day. The interns will earn an hourly wage of $15 for the six days the festival runs.
The total expenditure on salaries for part-time interns at Coachella is $12,600. The total expense of
salaries for the second year is $108,309.
In the third year, the full-time Engineering Technician will continue working exclusively for TileTach for
an annual salary of $47,916 and the part-time Marketing Coordinator will switch to a full-time position
for an increased annual salary of $56,000. With the assumption of increased sales, we will double the
number of employees for Coachella to 40 part-time tech interns. The total expenditure on salaries for
part-time interns is $25,200. Also, due to the new partnership with Lollapalooza, there will be hiring of
20 part-time tech interns who will work at the four-day festival and earn a $15 hourly wage. Due to the
festival starting at 11 am and finishing at 10 pm, we will use the same tactic that was implemented for
our first year with Coachella. The total expenditure on salaries for part-time interns at Lollapalooza is
$6,600. The total expense of salaries for the third year is $135,716.
Additional Operational Needs
No new location will be needed for the development of the TileTach because we plan on using Tile’s
headquarters, located in San Mateo, California. In order for our planning and development to run
smoothly, we will need to purchase additional equipment. Coachella and Lollapalooza provide their Wi-
Fi hotspots around the festival grounds, therefore, there is no need for Tile to provide its Wi-Fi. A
charging station will be required to charge the iPads to ensure that they are ready to be used by
festivalgoers. Moreover, additional computers, desks, and chairs will be needed to give the necessary
space for the new employees to conduct their research and development of TileTach. With Tile being a
manufacturer and a producer of tracking devices, additional equipment is not necessary. The equipment
that will be incorporated in the TileTach will be the attachment USB-C for the iPhone, the GPS GSM
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module, the special key that locks TileTach to iPhone, and the Arduino Software to code the module
(Arduino Software, 2019).
In the first year, computer desks and chairs will be a one-time purchase for the new Engineering
Technician and Marketing Coordinator. Two computer desks will be purchased from Amazon, a total of
$199.98 (Amazon, 2019). Along with the computer desks, two computer chairs purchased from Amazon
for a total of $79.98 (Amazon, 2019). Also, the two new employees will need a computer to work from.
Two all-in-one Dell-Inspiron desktop with all its necessary items and with a three-year Geek Squad
protection will be purchased for a total of $1,231.56 (Best Buy, 2019). The purchase of 50,000 USB-C for
$0.47 each is a total cost of $22,500 (2 in 1 Lightning Adapter Cable, 2019). The purchase of a 50,000
GPS GSM module for $7 each is a total cost of $350,000 (GPS Module, 2019). Lastly, the purchase of
50,000 flat keys for $0.19 each is a total cost of $9,500. The total expense for equipment in the first year
is $383,511.52.
In the second year, 20 tech interns will work part-time at Coachella for the six days of the festival. A tent
will be necessary to provide our tech service to TileTach customers. One event tent will be purchased on
Amazon for a total cost of $99.99 (Amazon, 2019). Two outdoor folding tables will also be purchased to
place the iPads that will be provided to TileTach customers, which will cost a total of $90.15 (Academy,
2019). A total of eight 128GB iPads will be provided at our tent during Coachella, costing a total of
$4,432.36 (Apple, 2019). The purchase of 148,500 USB-C is a total cost of $66,825. The purchase of
148,500 GPS GSM module is a total cost of $1,039,500. The purchase of 148,500 flat keys is a total cost
of $28,215. The total expense for equipment for year two is $1,139,162.50.
In year three, additional equipment will be purchased for Coachella and the addition of Lollapalooza.
Two additional event tents will be purchased, costing a total of $199.98. Two additional outdoor folding
tables will be purchased, totaling $180.30. An additional four 128GB iPads will be purchased, costing
$2,216.18. The purchase of 370,000 USB-C is a total cost of $166,500. The purchase of 370,000 GPS GSM
modules is a total cost of $2,590,000. The purchase of 370,000 flat keys is a total cost of $70,300. The
total expense for equipment for year three is $2,829,396.46.
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Marketing Strategy
The marketing of TileTach is an essential part of the proposal. Due to TileTach being a new product to
the market we will cater to customers in a popular distribution channel, which will require a structured
planning and execution for the service to be rewarding for customers.
Direct Marketing
Billboard:
According to the Arbitron National In-Car Study, “the average American spends over 18 hours per week
driving and 71% of consumers report looking at messages on billboards” (Commexis, 2016). To market
TileTach to Coachella fans we will design a billboard that will be displayed in one of the busiest highways
in the U.S., Interstate 405. The background of the billboard will display a crowd of people by the stage
at the Coachella festival and will focus on one festivalgoer. The sun is setting down and festival-goer
Kevin is all by himself standing far away from the crowd. Kevin has his face covered with his hands, which
demonstrates his frustration because he realized his phone is no longer in his pocket. The call to action
is, “Don’t be a Kevin! Use TileTach to easily track your lost phone at Coachella.” The call to action
ultimately will persuade viewers to purchase the TileTach when purchasing their Coachella tickets. The
billboard campaign will be displayed through January and February a day after Coachella announces its
lineup. Every year a new billboard design will be created specifically for the targeted music festival and
will be displayed for two months.
Flyers:
Marketing nowadays is mainly focused on social media; however, flyer distribution is still very effective.
According to the article, “5 Major Reasons Why Flyer Distribution is Still Effective,” using flyers for
advertisement is an “affordable manner of delivering your goods or services to your own potential
clients” (Manes, 2016). To reach festivalgoers who value a personal touch marketing campaign, we will
design a flyer that will be distributed in the busiest cities, such as The Grove LA and Santa Monica Pier.
The background of the flyers will be the same design Coachella uses for their posters every year for the
announcement of their lineup. The call to action is, “Coachella Is Here Don’t Lose Your iPhone This Year.”
The call to action ultimately will persuade viewers to purchase the TileTach when purchasing their
Coachella tickets. The flyers will be distributed for a week before Coachella tickets go on sale. Every year
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a new flyer design will be created specifically for the targeted music festival and will be distributed within
the span of seven days before tickets go on sale (See Appendix 3).
Online Advertising
Instagram:
According to the article, “Instagram Ads Strategy: 7 Effective Tactics to Maximize your ROI,” over 75% of
Instagram users “take action, such as visiting a website, after looking at a brand’s post” (AdEspresso,
2018). The use of Instagram for marketing is an outstanding opportunity for businesses. To reach new
customers, we will design a story Ad that will catch the viewers’ attention. The background of the Ad is
white, the main focus is on the iPhone, and a map that shows the location of John’s phone. Next to the
iPhone, the TileTach is displayed. The call to action is, “Lost your Phone? No worries, we got you
covered.” The call to action ultimately will persuade viewers to purchase the TileTach. The story Ad will
run on Instagram every other month, depending on many views the story ad receives. Every year a new
Instagram story Ad will be designed to market the TileTach (See Appendix 3).
Twitter:
One of the most used social media platforms by our target market is Twitter. Twitter users not only can
share what is going on within their day but also share pictures, videos, etc. According to the article, “6
Reasons Why You Should Use Twitter Ads Right Now,” Twitter will allow your business to get the “same
visibility you seek for a better return on your investment” (Kim, 2018). To target our market, we will
design a two-minute clip Ad. In the back a clip will showcase a fast mode clip of people walking around
at the Lollapalooza grounds and the main focus will be on the demonstration of the TileTach. The call to
action is, “Keep your phone save with TileTach.” The call to action ultimately will persuade viewers to
purchase the TileTach when purchasing their Lollapalooza tickets. The ad will run on Twitter for two
months after the lineup is announced. Every year a new Ad will be designed specifically for the targeted
music festival and will run for two months.
Marketing Expense Figures
Each marketing tactic for the proposal of TileTach was carefully measured to reach our target market.
The costs of each tactic are assumed based on research. In the first year, there will be no marketing
expenses due to the development of the TileTach.
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TileTach will launch in the second year with the partnership of the Coachella Music Valley and Arts
Festival. According to the article, “How Much Does Billboard Advertising Cost?” a billboard displayed in
busy cities like Los Angeles and Chicago costs anywhere between $2,000 to $15,000 a month (Queiroz,
2019). In the second year, a billboard targeted to Coachella fans will be displayed through January and
February, costing a total of $6,000. The distribution of 3,000 flyers for the marketing of TileTach to
Coachella fans will be distributed for two weeks before tickets go on sale, costing a total of $583
(NextDayFlyers, 2019). A total expense of $6,583 for direct marketing. Furthermore, online advertising
will also be used to market the TileTach. According to the article, “How Much Does It Cost to Advertise
on Instagram?” for an Instagram story Ad, it costs an average of $6.70 per thousand views (ThriveHive,
2019). For an estimate of 1 million views on our Instagram story Ad it will cost around $6,700. According
to the article, “How Does Twitter Ads Compare to Facebook and Instagram?” the average cost of Ads on
Twitter is anywhere between $9 to $11 per thousand views (Parsons, 2019). For an estimate of 350,000
views on our Twitter Ad it will cost around $3,150. A total expense of $9,850 for online advertising. The
total marketing expense for the second year is $16,433.	
In the third year, two billboards will be displayed through January and February for the marketing of
TileTach to Coachella fans, costing a total of $12,000. The distribution of flyers will be tripled to 9,000
and will be distributed in January, costing a total of $1,749. Moreover, with the new partnership of
Lollapalooza, a billboard will be displayed through February and March in the city of Chicago, a total cost
of $6,000. Also, the distribution of 3,000 flyers for the marketing of TileTach to Lollapalooza fans will be
distributed for two weeks before tickets go on sale, a total cost of $583. A total expense of $20,332 for
direct marketing. Furthermore, assuming that the partnership with Coachella the first year was success,
we will double our Instagram story Ad to an estimate of 2 million views, costing a total of $13,400. It will
cost a total of $6,300 for an estimate of 700,000 views on our Twitter Ad. Lastly, with the addition of
Lollapalooza, it will cost around $6,700 for an estimate of 1 million views on our Instagram story Ad and
$3,150 for an estimated 350,000 views on our Twitter Ad for marketing the TileTach to Lollapalooza fans.
A total expense of $29,550 for online advertising. The total marketing expense for the third year is
$49,882.
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Legal Factors
There are many risks that we will need to focus on throughout the creation of TileTach. Some of those
risks include privacy issues, data retention, use issues, and product liability issues.
Risks and Liabilities
Product liability issues include the risk of misuse, risk of product failures or inaccurate location or
navigation information, and the risks associated with inaccurate descriptions of the capabilities and
limitations of the TileTach (FindLaw Attorney Writers, 2019). To avoid being held liable for those issues,
we will hire a lawyer that will assist us in writing a legally binding disclaimer. According to the FindLaw
Attorney Writers “consumer expectations regarding GPS can be unrealistic” (2019). With that in mind,
we will carefully and accurately describe the capabilities of the TileTach regarding signal accuracy,
integrity, and availability.
	
We will also hire a lawyer to create a term of use and privacy policy that must be agreed to by any
customer purchasing the TileTach. These agreements will describe the information that our company is
collecting for future reports and will also explain to the customers any sharing of their information that
we as a company may decide on. These agreements will ensure that we have the customers’ consent
to use and distribute their information if we choose to do so.
Contracts
TileTach technology is being developed to assist customers in attending music festivals or other large
crowd events in which their cellular device may be lost or stolen. Contracts must be created between
Tile, Inc. and the music festival in which the TileTach will be used. These contracts will allow Tile to use
the music festivals name and/or logos for advertising and promoting purposes. The hired lawyer and/or
attorney will be responsible for creating these contracts.
Insurance
Since we plan to begin capitalizing on the audience of music festivals in the second and third year, we
will need to purchase general liability insurance.
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Intellectual Property
Tile, Inc. will need to secure the copyright for the name TileTach and will also need to file a trademark
for the idea created. Both of these can be done online for a fee and the hired lawyer will be responsible
for completing those tasks. We will also need to secure the rights to use the name and logo of any music
festival we are partnering with; those rights will be secured through the above-mentioned contracts.
Legal Factors Expense Figures
According to thervo.com, the National average hourly rate for an Attorney in 2019 is $225.00 (Average
Attorney Fees, 2019). We estimate that we will need an attorney who will work remotely from home
for 300 hours a year to aid us in creating contracts, disclaimers, and to file the copyright and trademark
applications online. The yearly expense for an attorney will be $67,500. Glassdoor list that a Tile
Accountant’s salary ranges from $31-$34 an hour (Tile Accountant Salaries, 2019). To figure expenses,
we calculated that we will use Tile’s accountant to work on the TileTach at a rate of $33 an hour. The
accountant will also work remotely from home for 500 hours during the first three years of the plan.
We anticipate a yearly cost of $16,500 to go towards the accountant. The average annual cost for
general liability insurance is $741.00 (General Liability Insurance Cost, 2019). The cost of an online
trademark application through the USPTO is $400 and will not need to be renewed for 10 years after
the filing date (Trademark Fee Information, 2019). The cost of an online filing of copyright is $55
(Copyright Fees, 2019).
	
In the first year, our expenses will include an attorney, an accountant, a trademark fee, and a copyright
filing fee. Based on the research we can assume that in the first year the total expense on legal factors
will be $84,455. In the second and third years, we will add general liability insurance and will not have
a trademark or copyright fee. The total expense on legal factors for years two and three is $84,471
each year.
Strategic Business Proposal Page 17 of
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4: Sales Projections
Sales Projections
Name of Sales Projection
The product we are creating for Tile is called the TileTach. This product will allow consumers to track
their iPhones without having to worry about battery life or having to connect to Bluetooth services. Using
a GPS module, data will be sent through GSM to a cloud database to track the location. The TileTach will
connect to the iPhone through the charging port and can only be disconnected using the key provided
to the user at purchase. During the second and third year of the launch of TileTach, it will only be
available to iPhone users. However, TileTach will be expanding to accommodate Android users during
the later years of production. The TileTach will only be sold online at first but is projected to expand to
retail stores such as Apple, Best Buy, and Target in the fourth year if the demand is high enough.
Unit Volume Explanation
No products will be sold in the first year due to the development of the TileTach and to allow time to
create marketing plans and to develop partnerships. During the second year, the TileTach will be sold to
those attending the Coachella Music festival. In 2018, there was an average of 99,000 attendees per day
during the six-day festival (GQ Staff, 2019). Therefore, there were about 594,000 people that attended
Coachella in 2018. We estimate that 25% of those attending the Coachella music festival will purchase a
TileTach. At the end of the second year, TileTach is projected to have a total of 148,500 units sold to
Coachella attendees.	
	
In the third year, TileTach will be introduced to our new music festival partner, Lollapalooza. According
to the article, “TOP 15: Music Festivals in the USA 2019,” Lollapalooza is considered the second most
popular music festival in the U.S. (Festicket Writers, 2019). This past year, Lollapalooza had an average
of 100,000 attendees per day during the four-day festival (Kot, 2019). Therefore, a total of 400,000
people attended Lollapalooza in 2019. Due to this being the first year of the partnership with
Lollapalooza, we estimate that 25% of those who attend Lollapalooza will purchase a TileTach, resulting
in a total of 100,000 units being sold. With this being the second year of our partnership with Coachella,
we estimate that 45% of the average 594,000 attendees will purchase a TileTach, resulting in 267,300
Strategic Business Proposal Page 18 of
35
units being sold through Coachella. At the end of the third year, TileTach is projected to have a total of
367,300 units sold to Coachella and Lollapalooza attendees. 	
Unit Price Explanation
The TileTach will be sold for $50 per unit. The price of the TileTach was determined by examining the
prices of current Tile technologies. The latest release from Tile is the Tile Pro, which costs $35 per unit
(Tile Products, 2019). The Tile Slim is $30 per unit and the Tile Mate is $20 per unit as well (Tile Products,
2019). Tile products increase in $5 and $10 increments. Tile will be able to easily justify the price of the
TileTach because it is offering a new and innovative technology that will effectively keep consumers'
phones safe.	
	
The TileTach price was also based on the prices of their competitors TrackR, Pebblebee, and Chipolo.
TrackR charges $29.99 for their single TrackR Pixel (Get Your TrackR Pixel, 2019). Pebblebee sells its
Finder 2.0 for $35 (Pebblebee 2.0, 2019). Lastly, Chipolo charges $25 for their Chipolo Plus (Chipolo
Products, 2019). While the price of the TileTach is higher than our competitors, Tile can charge more for
the TileTach because of how advanced the technology is.	
Unit Cost Explanation
We are estimating the unit cost for each TileTach in the second and third years will be $7.64. To create
the TileTach we will need to pay for the GPS GSM Module that will assist in tracking the customers'
phone, the lightning cable adapter that will be used to connect the TileTach to the iPhone, and the flat
key that secures the TileTach in place. The cost for a single lightning cable adapter is $0.45 (2 in 1
Lightning Adapter Cable, 2019). The cost of a single GPS GSM module is $7 (GPS GSM Module Price,
2019). The cost of a key is $0.19 (Zinc Alloy Safety Blank Key, 2019). Tile already has a manufacturing
agreement with the company Jabil, therefore, there will be no need to add a cost for manufacturing
(Chin Leong, 2015). Moreover, we will team with the engineers already employed by Tile to create the
device.
Sales Projection Figures
There will not be revenue for the first year since the product will still be in development. During the
second year, it is projected that 148,500 of the TileTach will be sold at $50 with a unit cost of $7.64,
Strategic Business Proposal Page 19 of
35
resulting in net sales of $7,425,000. In year three it is estimated that a total of 367,300 units will be sold
at $50 with a unit cost of $7.64 resulting in net sales of $18,365,00 (See Appendix 4).
5: Project Timeline
Our plan for development and taking the TileTach to market will take roughly a year to complete. We
will hire an Engineering Technician who will work on creating the TileTach that functions to the best of
its ability and serve the purpose of tracking phones. Meanwhile, another task will include hiring a
Marketing Coordinator. Once the TileTach has been tested and finalized, we will have our sales team
introduce the product to the Board of Directors of the Coachella Music Valley and Arts Festival. The
next step is the Marketing Coordinator will work on the promotion of the TileTach to Coachella fans
through the use of billboards, flyers, Instagram, and Twitter.
Negotiating the product with music festivals will be a priority. The first year is exclusively for the
development of the TileTach and negotiation with Coachella. In the second year, we aim to have a
successful sale with Coachella and partner with Lollapalooza for the following year. We will also work on
promotion and advertising to get more exposure. In the third year, TileTach will be sold to Coachella and
Lollapalooza attendees when they purchase their tickets online. Our goal is to make people’s lives easier
when it comes to locating their phone. We want to provide the best possible service to our users while
also offering the best customer service. Our team will include a handful of experienced technicians who
will work till the end to ensure the product works to its maximum capacity. TileTach’s innovative
technology is yet to be found in the market (See Appendix 6).
Pre-Launch and Year One
Date/Time-Frame Event/Milestone
October 25th, 2019 Proposal to Tile's Board of Directors
October 28th
, 2019-
November 28th, 2019 Additional employees hired
October 25th
, 2020 Finalize the TileTach
November 1st
, 2020 Negotiation with Coachella Music Valley and Arts Festival
December 31st
, 2020
Announcement of Coachella Music Valley and Arts Festival partnership to
start 2021
Strategic Business Proposal Page 20 of
35
Year Two
Date/Time-Frame Event/Milestone
January 1st, 2021-
February 1st
, 2021 Marketing TileTach for Coachella
June 7th, 2021 Negotiation with Lollapalooza
July 31st, 2021 Announcement of Lollapalooza partnership to start 2022
October 25th
, 2021 TileTach software update
December 31st, 2021 Expect a revenue of $7,425,000
Year Three
Date/Time-Frame Event/Milestone
January 1st, 2022 Development of TileTach for Android phones starts
January 10th
, 2022-
January 13th
, 2022 Negotiations with Apple, Best Buy, and Target partnership
February 1st
, 2022-
March 1st
, 2022 Marketing TileTach for Lollapalooza
November 1st
, 2022 Announcement of Apple, Best Buy, and Target partnership to start 2023
December 31st, 2022 Expect a revenue of $18,365,000
6: Future Plans
The long-term goal for TileTach is that ultimately everyone that attends large crowded events and fears
that their phone will get stolen and/or lost, will opt-in to purchasing a TileTach to easily track it down.
Within the first two years of releasing the product to the market, it will allow us to make any necessary
adjustments to the TileTach by hearing the customers' feedback, such as trouble with the battery,
lagging of the location, customer service, etc. For example, if there is an issue with the lagging of the
location, a solution to that problem would be to do a release on an update on the Tile app. In the
fourth year, the new TileTach will be launched and will be compatible with iPhone and Android users.
TileTach will also be available in retailers, such as Apple, Best Buy, and Target. In the following years,
we will introduce a TileTach phone case in a variety of colors, the product will protect the phone from
physical damage and theft. Technology is evolving faster than ever these days; therefore, it is
important to stay on top of our competitors as well. At the end of the day, our goal is to minimize the
Strategic Business Proposal Page 21 of
35
number of phones that get stolen and lost in large crowds while giving our customers the best
experience when using TileTach.
Strategic Business Proposal Page 22 of
35
7: Appendices and References
References
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Academy sports + outdoors 6 ft bifold table. (2019). Academy. Retrieved
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table#repChildCatid=3866002
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Arduino software. (2019). Arduino. Retrieved from https://www.arduino.cc/en/Main/Software
Are TrackR devices waterproof? (n.d.). TrackR Gizmo. Retrieved
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Average Attorney fees. (2019). Thervo. Retrieved from https://thervo.com/costs/attorney-fees
Blank Coachella background. (2015). Reddit. Retrieved from http://i.imgur.com/IQ0gN38.jpg
Bush, S. (2018, April 11). How to keep your phone from being stolen at Coachella and what to do if it is
taken. The Press- Enterprise. Retrieved from https://www.pe.com/2018/04/11/how-to-keep-
your-phone-from-being-stolen-at-coachella-and-what-to-do-if-it-is-taken/
Business flyers. (2019). NextDayFlyers. Retrieved from https://www.nextdayflyers.com/flyer-
printing/business-flyers.php
Chin Leong, K. (2015, May 6). Jabil- The manufacturing giant you’ve never heard of- steps out of the
shadows. Fast Company. Retrieved from https://www.fastcompany.com/3045936/jabil-circuit
Copyright Fees. (2018). Copyright.gov. Retrieved from https://www.copyright.gov/about/fees.html
Dell – Inspiron 21.5” touch-screen all-in-one. (2019). Best Buy. Retrieved from
https://www.bestbuy.com/cart
Do billboard ads work? In a nutshell, yes.... (2016, August 9). Commexis. Retrieved from
https://commexis.com/do-billboard-ads-work-in-a-nutshell-yes/
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Dunn, J. (2016, August 31). This company is trying to make sure you never lose anything again. Business
Insider. Retrieved from https://www.businessinsider.com/tile-slim-bluetooth-tracker-platform-
announcement-2016-8
Engineering Technician salaries. (2019). Glassdoor. Retrieved from
https://www.glassdoor.com/Salaries/engineering-technician-salary-SRCH_KO0,22.htm
Festicket Writers. (2019, September 19). TOP 15: Music festivals in the USA 2019. Festicket. Retrieved
from https://www.festicket.com/magazine/discover/top-festivals-usa/
FindLaw Attorney Writers. (2019). Legal issues for companies and agencies that use GPS-based
navigation and position technologies: Privacy issues. FindLaw. Retrieved from
https://corporate.findlaw.com/litigation-disputes/legal-issues-for-companies-and-agencies-
that-use-gps-based.html
General liability insurance cost. (2019). Insureon. Retrieved from https://www.insureon.com/small-
business-insurance/general-liability/cost
Get your TrackR Pixel. (2019). TrackR. Retrieved from https://www.thetrackr.com/get-trackr/
GQ Staff. (2019, April 10). Everything you need to know about Coachella 2019: Lineup, scheduling, and
things to do. GQ Australia. Retrieved from
https://www.gq.com.au/entertainment/music/everything-you-need-to-know-about-coachella-
2019/image-gallery/4b0df760309aa435fe8281acc1b88607
GPS module. (2019). Alibaba.com. Retrieved from https://bit.ly/2MbIOHi
Guy, N. (2019, October 8). The Best Bluetooth Tracker. The Wire Cutter. Retrieved from
https://thewirecutter.com/reviews/best-bluetooth-tracker/
How can I adjust the volume of Chipolo? (2018). Chipolo. Retrieved
from https://support.chipolo.net/hc/en-us/articles/208790789-How-can-I-adjust-the-VOLUME-
of-Chipolo-
How it works- Pebblebee. (2019). Pebblebee. Retrieved from https://pebblebee.com/pages/how-it-
works
How much does it cost to advertise on Instagram? (2019, February 24). ThriveHive. Retrieved from
https://thrivehive.com/how-much-does-it-cost-to-advertise-on-instagram/
Strategic Business Proposal Page 24 of
35
Instagram ads strategy: 7 effective tactics to maximize your ROI. (2018, June 14). AdEspresso. Retrieved
from https://adespresso.com/blog/instagram-ads-strategy-high-roi/
Ion, F. (2015, January 13). Tile review: Would you pay $25 a year to find your keys (maybe)? Green Bot.
Retrieved from https://www.greenbot.com/article/2867072/tile-review-would-you-pay-25-a-
year-to-find-your-keys-maybe.html
iPad 10.2-inch. (2019). Apple. Retrieved from https://www.apple.com/shop/buy-ipad/ipad-10-2
Kim, L. (2018, January 17). 6 reasons why you should use Twitter Ads right now. Medium. Retrieved
from https://medium.com/marketing-and-entrepreneurship/6-reasons-why-you-should-use-
twitter-ads-right-now-5a9dbee1d7d4
Kot, G. (2019, July 25). Lollapalooza is healthy, despite slow ticket sales this year and (the fest owners
hope) here to stay. Chicago Tribune. Retrieved from
https://www.chicagotribune.com/entertainment/lollapalooza/ct-ent-lollapalooza-2019-
20190724-c7hl3bcss5h5vjhzlya55me7wq-story.html
Lee, N. (2018, October 8). Tile's new Bluetooth trackers come with replaceable batteries. Engadget.
Retrieved from https://www.engadget.com/2018/10/02/tile-mate-pro-replaceable-batteries/
Lollapalooza logo. (2019). Lollapalooza. Retrieved from https://www.lollapalooza.com
Lunden, I. (2019, July 24). Tile finds another $45M to expand its item-tracking devices and platform.
Tech Crunch. Retrieved from https://techcrunch.com/2019/07/24/tile-finds-another-45m-for-
its-item-tracking-platform/
Manes, J. (2016, June 30). 5 major reasons why flyer distribution is still effective. Medium. Retrieved
from https://medium.com/@jamesmanes16/5-major-reasons-why-flyer-distribution-is-still-
effective-5fd0ab6bfaa0
Michaels, P. (2019, September 27). Best and worst wireless key finders 2019. Tom’s Guide. Retrieved
from https://www.tomsguide.com/us/best-key-finders,review-2657.html
Newman, J. (2019, January 3). How tracking startups TrackR and Tile lost (and found) their way. Fast
Company. Retrieved from https://www.fastcompany.com/90285686/how-tracking-startups-
trackr-and-tile-lost-and-found-their-way
Office chair. (2019). Amazon. Retrieved from https://amzn.to/2OIGoS3
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Parsons, J. (2016, May 12). How Does Twitter Ads Compare to Facebook and Instagram? Follows.com.
Retrieved from https://follows.com/blog/2016/05/twitter-ads-facebook-instagram
Part-time Marketing Coordinator salaries. (2019). Glassdoor. Retrieved from
https://www.glassdoor.com/Salaries/part-time-marketing-coordinator-salary-
SRCH_KO0,31.htm
Pebblebee Finder 2.0. (2019). Pebblebee. Retrieved from https://pebblebee.com/products/pebblebee-
finder-2
Perez, S. (2019, September 6). Tile teams up with Google to bring its lost item finding technology to
Google Assistant. Tech Crunch. Retrieved from https://techcrunch.com/2019/09/06/tile-teams-
up-with-google-to-bring-its-lost-item-finding-technology-to-google-assistant/
Perez, S. (2017, May 16). Lost item finder Tile grabs another $25 million in funding. TechCrunch.
Retrieved from https://techcrunch.com/2017/05/16/lost-item-finder-tile-grabs-another-25-
million-in-funding/
Plaugic, L. (2017, April 17). Coachella man caught stealing over 100 phones thanks to Find My iPhone.
The Verge. Retrieved from https://www.theverge.com/2017/4/17/15327670/coachella-phone-
thief-find-my-iphone
Queiroz, R. (2019, August 21). How much do billboards cost? Dash Two. Retrieved from
https://dashtwo.com/blog/how-much-does-billboard-advertising-cost/
Revealed: The most commonly lost items with keys, phones and glasses topping the list. (2016, June
21). Express. Retrieved from https://www.express.co.uk/news/uk/681961/Common-lost-items-
keys-phones-glasses-revealed-list
Rossignol, J. (2017, April 17). MacRumors. Retrieved from
https://www.macrumors.com/2019/04/17/apple-tile-like-item-tracker-rumor/
SIC Industry: 7372 prepackaged software. (2018). NAICS Association. Retrieved
from https://www.naics.com/sic-industry-description/?code=7372
Social networking platforms' user demographics update 2019. (2019, April 24). Marketing Charts.
Retrieved from https://www.marketingcharts.com/digital/social-media-108184
Tangkula 10’x30’ outdoor canopy tent. (2019). Amazon. Retrieved from https://amzn.to/2MuS5ZG
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Tillman, M. (2019, September 20). Apple Tags: Release date, rumors, leaks, and more. Pocket-lint.
Retrieved from https://www.pocket-lint.com/gadgets/news/apple/149277-apple-tracking-
device-everything-you-need-to-know
Tile. (2017, October 12). tile|Lost panda| together we find. [Video File]. YouTube. Retrieved from
https://www.youtube.com/watch?v=u-evd9B-ZKg
Tile Accountant salaries. (2019). Glassdoor. Retrieved from https://www.glassdoor.com/Salary/Tile-
Finance-and-Accounting-Salaries-EI_IE826775.0,4_DEPT1008.htm
Tile competitors, revenue and employees - Owler company profile. (2018). Owler. Retrieved
from https://www.owler.com/company/thetileapp
Tile Inc. (2019). Bloomberg. Retrieved from
https://www.bloomberg.com/profile/company/1004151D:US
Tile Mate trackers. (2019). Tile. Retrieved from https://www.thetileapp.com/en-us/store/tiles/mate
Tile logo. (2013). Wikimedia Commons. Retrieved from
https://commons.wikimedia.org/wiki/File:Tile_logo.png
Tile products. (2019). Tile. Retrieved from https://www.thetileapp.com/en-us/products
Tile stock price, funding rounds, valuation, and financials. (2016). Craft. Retrieved
from https://craft.co/tile-inc/metrics
TrackR features. (2019). TrackR. Retrieved from https://www.thetrackr.com/features/
Trademark Fee Information. (2019). USPTO. Retrieved from
https://www.uspto.gov/trademark/trademark-fee-information
Tweney, D. (2015, August 18). How Tile went from crowdfunding to 2M units sold in two years.
Venture Beat. Retrieved from https://venturebeat.com/2015/08/18/how-tile-went-from-
crowdfunding-to-2m-units-sold-in-two-years/
Weber, H. (2017, December 7). Tile is the worst tech stocking stuffer. Gizmodo. Retrieved from
https://gizmodo.com/tile-is-the-worst-tech-stocking-stuffer-1821046107
Zinc alloy safety blank key. (2019). Alibaba.com. Retrieved from https://bit.ly/2oCGobE
Strategic Business Proposal Page 27 of
35
Appendices
Appendix 1: Target Market
Strategic Business Proposal Page 28 of
35
Appendix 2: Competitive Matrix
Tile TrackR Pebblebee Chipolo
Competitive
Product/Service
Item tracker Item tracker Item tracker Item tracker
Water
Resistance
Yes Yes Yes Yes
Battery
Replacement
Yes Yes Rechargeable
battery
No
Alert Sound
Level
132 decibels 90 decibels 115 decibels 100 decibels
Strategic Business Proposal Page 29 of
35
Appendix 3: Marketing Campaign Sample
Strategic Business Proposal Page 30 of
35
Strategic Business Proposal Page 31 of
35
Appendix 4: Sales Projections
Tile
Year 1 Year 2 Year 3
TileTach
Unit Volume 0 148,500 367,300
Unit Price $0.00 $50.00 $50.00
Unit Cost $0.00 $7.64 $7.64
Total Net Sales 1 $0 $6,290,460 $15,558,828
Total Sales: $0 $6,290,460 $15,558,828
Strategic Business Proposal Page 32 of
35
Appendix 5: Expenses
Name of Company
Marketing Year 1 Year 2 Year 3
Annual
Expense
Annual
Expense
Annual
Expense
Direct Marketing One billboard ($6,000) for two
months and 3,000 flyers ($583)
for Coachella in year two. Two
billboards ($12,000) for two
months and 9,000 flyers
($1,749) for Coachella in year
three. In addition, one billboard
($6,000) for two months and
3,000 flyers ($583) for
Lollapalooza in year three.
$0 $6,583 $20,332
Online Advertising In year two, Instagram story Ad
($6,700) and Twitter Ad ($3,150)
for Coachella. In year three,
Instagram story Ad ($13,400)
and Twitter Ad ($6,300) for
Coachella. Also, Instagram story
Ad ($6,700) and Twitter Ad
($3,150) for Lollapalooza.
$0 $9,850 $29,550
TOTAL $0 $16,433 $49,882
Employees Year 1 Year 2 Year 3
Total
Wages Year
1
Total
Wages Year
2
Total
Wages Year
3
Engineering
Technician
One employee in all three years
– annual salary of $47,916.
$47,916 $47,916 $47,916
Marketing
Coordinator
One employee working part-
time in year 2 – annual salary of
$47,793. Same employee will
move to full-time in year 3 –
annual salary of $56,000
$0 $47,793 $56,000
Strategic Business Proposal Page 33 of
35
Tech Interns 20 interns for year two – hourly
wage of $15.
60 interns for year three –
hourly wage of $15.
$0 $12,600 $31,800
TOTAL $47,916 $108,309 $135,716
Equipment Year 1 Year 2 Year 3
Annual
Expense
Annual
Expense
Annual
Expense
Computers Two all-in-one Dell-Inspiron
desktop computers with
three-year Geek Squad
protection - $615.78 each
including protection (one-
time purchase).
$1,231.56 $0 $0
Office Furniture Folding Tables- $45 each
(Two in year two and an
additional two more in year
three).
Computer Desks- $99.99
each (Two in year one –
one-time purchase).
Computer Chairs- $39.99
each (Two in year one –
one-time purchase).
Tents- $99.99 each (One in
year two and an additional
two in year three).
$279.96 $190.14 $380.28
Software Arduino Software for
coding (free software).
$0 $0 $0
iPads 128GB iPads - $554.04 each
(Eight in year two and an
additional four in year
three).
$0 $4,432.36 $2,216.18
USB-C Adapters USB-C Adapters- $0.45
each (50,000 in year one,
148,500 in year two, and
370,000 in year three).
$22,500 $66,825 $166,500
Strategic Business Proposal Page 34 of
35
GPS GSM Module GPS GSM Module- $7 each
(50,000 in year one,
148,500 in year two, and
370,000 in year three).
$350,000 $1,039,500 $2,590,000
Flat Keys Flat Keys- $.19 each
(50,000 in year one,
148,500 in year two, and
370,000 in year three).
$9,500 $28,215 $70,300
TOTAL $383,511.52 $1,139,162.50 $2,829,396.46
Professional Services Year 1 Year 2 Year 3
Annual
Expense
Annual
Expense
Annual
Expense
Lawyer 300 hours a year for an
hourly wage of $225.
$67,500 $67,500 $67,500
Accountant 500 hours a year for an
hourly wage of $33.
$16,500 $16,500 $16,500
Insurance General Liability Insurance-
$741 a year
$0 $741 $741
Intellectual
Properties
Trademark application-
$400
Copyright filing- $55
$455 $0 $0
TOTAL $84,455 $84,741 $84,741
Strategic Business Proposal Page 35 of
35
Appendix 6: Timeline and Milestones

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Tile Business Proposal

  • 1. Strategic Business Proposal 1 of 35 Strategic Business Proposal for For: Tile, Inc. https://www.thetileapp.com Prepared On: October 13, 2019 Prepared By: Grecia Rayme, Melissa St. Pierre, Christopher Griffin, Joseph De Pool Instructor Name: Jennifer Marshall
  • 2. Strategic Business Proposal Page 2 of 35 Introduction Executive Summary To the Tile Board of Directors: Have you ever attended a music festival surrounded by thousands of people and all of a sudden you can’t find your phone? At that moment your heart drops and you start panicking. Losing or getting your phone stolen can be one of the most frustrating situations that can happen to anyone. Even with all the accessible and inexpensive applications that allow you to track your mobile devices, it still does not guarantee that your mobile device won’t go missing. What if there was a way to track your phone’s location in a crowded scene even after it completely runs out of battery? Tile has changed the game in technology for tracking items such as keys, wallets, and phones. We’re proposing to innovate changes that will leave customers satisfied. The new innovative TileTach will remove the limit zone range, and provide a higher security tracker for your iPhone. The TileTach works through the use of a GPS module, which sends data through GSM to a cloud database to track the location. iPhone users will no longer have to fear the thought of losing their device in large crowds. Above all tracking apps available to download for the tracking of your phone, users will hop on the bandwagon to purchase TileTach. Tile provides an excellent service to its customers worldwide and ensures that misplaced items can be found. Moreover, TileTach will open the opportunity for new partners such as Coachella, Lollapalooza, and many more music festivals. Let us keep track of your phone while you enjoy life. _______________________ _______________________ _______________________ Grecia Rayme Melissa St. Pierre Christopher Griffin _______________________ Joseph De Pool
  • 3. Strategic Business Proposal Page 3 of 35 1: Challenges & Solutions Organizational Challenges In 2012, Tile, Inc. launched its mobile tracking devices and services to customers. Tile’s mission is to create “a world where everyone can find everything that matters” (About Tile, 2019). Tile proposed a solution to people’s items that were being misplaced and lost. The development of this idea has been successful, but there have also been some unfavorable flaws. Originally, Tile products did not guarantee to its customers that the purchase of their product will last forever. Customers questioned if it was worth purchasing a product that they would have to replace every year. As a result, Tile resolved that issue by changing its products to come with replaceable batteries. The current design of the product to track phones is a sticky pad, which can be easily removed. According to the article, “Tile is The Worst Tech Stocking Stuffer,” because the products are “cheap chunks of frustrating plastic” (Weber, 2017). In 2018, Simon Fleming-Wood, Chief Experience Officer at Tile “confirmed that while Tile saw year-over-year growth last season, sales were lower than expected” (Newman, 2019). We asked ourselves, how do we develop a design that customers will love, while the product is durable with the assurance of keeping customer’s phones tracked at all times? According to a study done in 2016, 2,000 adults said that they “will typically misplace four items a month with keys, mobile phones, pens and glasses” (Express, 2016). Some of these items that are misplaced are taken to music festivals on a regular basis, mainly phones and keys. Festivals are usually crowded with thousands of people, therefore, taking extra caution of your items is a must. However, sometimes these items are still misplaced without notice, and could potentially be stolen by other bystanders. Last year during the two weekends of Coachella, “nearly 200 people’s phones were stolen” (Bush, 2017). With much research and the brainstorming of ideas, we can solve the problem that is currently keeping customers away from purchasing Tile products and assist them in tracking their most valued technological devices while offering a one of a kind experience to our customers.
  • 4. Strategic Business Proposal Page 4 of 35 Proposed Solution The solution to the design is to allow customers to track their lost and/or stolen phones through the use of the product without having to worry about battery life and the pairing of Bluetooth. The new design of the product can be inserted into the charging port of the phone to offer a more secure form of tracking. The device will be called “TileTach” and will be secured with a locking mechanism. The consumer will receive the key to unlock the TileTach when they purchase the product. The TileTach works through the use of GPS module, which sends data through GSM to a cloud database to track the location. During the first year of launch, the product will be offered to Apple users. Reviews from those customers after the first year will determine whether the development for other devices will continue. As a result, we will work on an expansion of TileTach to be compatible with other cellular devices. As a result, the proposed solution will open up future opportunities to partner with different music festivals to help prevent the loss of phones during those events. When consumers purchase their tickets for those music festivals online, the option to purchase the TileTach to track their phones during the duration of the festival will be offered. All TileTach products will have a one-year warranty. Booths will be set up around the festival grounds to offer assistance to the festivalgoers that are looking for their lost or stolen phones. By creating TileTach we would be giving the user more security with the lock only being able to be opened by the key. The device can’t be removed without the key assuring the device will be tracked for the duration of the TileTach battery. This will offer more protection from theft because the thief is unable to remove the TileTach without the key and the phone can still be tracked even if the phone is turned off. 2: Environmental Scanning Internal Analysis Company Overview Tile, Inc. is a private company that was founded in 2012 by Mike Farley and Nick Evans. The company was founded through a crowdfunding campaign. In 2017, Tile announced its back up partners with Bessemer Venture Partners, GGV Capital, and Khosla Ventures (Perez, 2017). The first original Tile product cost $25 for one and $70 for four, they are currently still available, but the price has increased
  • 5. Strategic Business Proposal Page 5 of 35 to $30 and $100 respectively (Dunn, 2016). Being that Tile Slim is the first original product nothing has changed about it. Its battery life lasts one year, and the design is made to stick on items such as wallets, passports, and so on (About Tile, 2019). According to Tile, their “global community spans over 230 countries and territories and helps people find more than 3 million items every day” (Tile, 2019). All Tile products come with a one-year warranty from the date of delivery of the product. Customer satisfaction is guaranteed and if a customer did not get what they expected after they purchased a Tile product, they have a 30-day policy return (Tile Products, 2019). Tile is one of the world’s best-selling Bluetooth trackers and is available in big retailer stores such as Target and Best Buy (About Tile, 2019). Financials Standings Every metric from units sold to company revenue has been growing since its release. Their first $200,000 USD investment was acquired by Tandem Capital as seed money. By 2013, Tile started a crowdfunding campaign using Selfstarter and raised over $2 million USD. As a result, this helped them achieve $200,000 presales with the capital. Their last investment was in August 2019 and Tile managed to raise $45 million USD (Craft, 2019). Tile has also experienced exponential growth in the number of Tile Mate units sold. In 2015, the company had a total of 2 million units sold and by 2017, it had sold 10 million units (Tweney, 2015). Today, Tile is reported to be worth 100 million USD. Organizational Strengths Tile, Inc. has several strengths in its organization. The company is known worldwide and has over 20 million customers spanning over 230 countries. Tile offers different levels of its products including the Tile Pro, Mate, and Slim. Each product meets the needs of its customers. All Tile products purchased on the Tile website are shipped free within the U.S., have a 30-day return guarantee, and a one-year warranty. The Tile app allows users to track their connected items at all times. After Tile received many negative reviews from customers regarding the battery life of its products, they changed its Tile Pro and Tile Mate to have replaceable coin batteries (Lee, 2018). As a result, customers no longer had to purchase a new Tile. Living in a world where people are always on the go and technology is vital, Tile makes people’s lives easier.
  • 6. Strategic Business Proposal Page 6 of 35 Organizational Weaknesses The design of the Tile products has become a conversational topic being that it is made out of plastic. People question whether the product is worth purchasing. The smaller the Tile, the more it costs and the longer-range capacity it has to track your item. Only the Tile Pro and Tile Mate have a one-year battery replacement, the Tile Slim does not. Tile also offers a trade-in program where customers can trade in their Tile every year for a new one. However, customers complain that the purpose of the item is to remind you of things you are missing, not for customers to remind themselves every year to trade in their Tile product for a new one (Ion, 2015). Customers The targeted customers are males and females between the ages 21 to 30. They have an annual household income of $60,000 and are in the workforce field. Also, they enjoy hanging out with friends, attending music festivals and concerts, use their smartphones regularly, are interested in the newest technology, and are active on social media platforms (See Appendix 1). Collaborators Tile recently has teamed up with Google to make it easier for users to locate their lost items using their Android devices and others using Google Assistant (Perez, 2019). Tile has also recently partnered up with Skullcandy and Sennheiser. Both audio headphone companies now have models that have Tile integrated with them that allows users to keep track of their items. Tile is also partnered up with KeySmart, Nomad, BLE, and Herschel (About Tile, 2019). External Analysis Competitors Tile has many competitors due to its business sector being a relatively new one. However, Tile’s main competitors are TrackR, Pebblebee, and Chipolo. TrackR has been in business since 2009 and entered the market three years before Tile did. Tile offers water resistance, a loud beeping sound, a wider Bluetooth rang, and lower purchase price. Even though the TrackR is outmatched by Tile, TrackR still earns 33 million USD, which is more than Tile per year (TrackR-Owler Company Profile, 2019). Chipolo had the loudest tracker on the market before the Tile Pro was released and also offered a water
  • 7. Strategic Business Proposal Page 7 of 35 resistance product. However, Chipolo’s Plus model does not offer the battery to be replaceable like the Tile Pro and Mate. To have a replaceable battery with Chipolo, you must buy the Classic version, which has a substantially lower alert beep volume than its upgraded Plus version. Pebblebee is also a strong competitor. Pebblebees’ most notable feature is that has one of the highest Bluetooth ranges in the market. Pebblebee has a max range of 200 feet while Tile is 100 feet. Moreover, Pebblebee also has an impressive 95-decibel alert volume. Tile earns about 8 million USD annually more than Pebblebee (Michaels, 2019) (See Appendix 2). Business Climate Political and Regulatory Tile, Inc. is not affected by the political and regulatory sphere. There are no current laws that affect the development or release of TileTach. Economic The economic climate for Tile is great. Since their release, they have increased units sold, gained revenue, and every round of funding has surpassed the last. Tile has also most recently seen a 160% growth in the European market just last quarter (Lunden, 2019). Social and Cultural According to Tile, the makeup of their products is “80% of the US retail market” (Tile, 2019). Through Tile’s website, people write their reviews whether they had a great experience with the Tile products or not. Nowadays when people make a purchase they go based on the reviews. Moreover, Tile uses social media platforms to interact with their customers. In 2017, Tile posted a video on YouTube, “tile |Lost panda |together we find,” which has received over 7 million views, 49,000 likes, and over a thousand comments (Tile, 2017). The storyline of the video showed a panda stuffed animal that gets lost by its owner and is going through all these different scenes to find its way back home. At the end of the video, the panda reunites with its owner. This video created an emotional appeal to the viewers, which is done to persuade them to purchase a Tile product.
  • 8. Strategic Business Proposal Page 8 of 35 Technological Tile’s partnership with BLE has them in the process of developing smaller chips to supply a wider range of products. Tile currently is in plans to have smaller devices like earbuds already come integrated with the Tile technology (Perez, 2019). Business Opportunities The phone loss epidemic is growing in the music festival sector. For example, in 2017 a man was caught stealing 100 cellphones in his backpack while attending Coachella (Plaugic, 2017). While this man was caught, not everyone was so lucky to catch the culprit that took their device. Setting up booths at music festivals or immersing themselves with the music festival market would be a great opportunity for Tile to not only solve such issues but also increase its popularity and partners. Business Threats The biggest threat and most recent threat to Tile is the Apple Tag. Apple now wants to step into the personal tracker industry and create their tracker device (Tillman,2019). Considering that Apple is on top of the development of technology, it would be no surprise if they find a way to make the Tag more integrated with Apple devices. As a result, this could potentially persuade Apple customers to buy the Tag instead of Tile products.
  • 9. Strategic Business Proposal Page 9 of 35 3: Strategy Implementation: Operations, Marketing and Legal Operations Expense Assumptions Organizational Chart Tile is currently in the business industry developing tracking devices for items, therefore, the addon of the TileTach will not have an impact on how the business is operating. According to the article, “The Best Bluetooth Tracker,” Tile Pro is considered one of the best Bluetooth trackers for keeping tabs on your most valuable items (Guy, 2019). The engineer department will take charge of developing the newest innovative tracking device. The main responsibility of the engineering department is to ensure that the design and hardware of the TileTach are operating at its highest level. New Employees According to Tile’s LinkedIn page, the company currently employs over 353 professionals (LinkedIn, 2019). Due to Tile having a big team of employees, it will only be necessary to hire a few of new employees. Hiring a full-time Engineering Tech will be done to bring the TileTach idea to life. According to Glassdoor, the average annual salary for an Engineering Technician is $47,916 (Engineering Tech Salaries, 2019). In the first year, the total expense of salaries for employees is a total of $47,916.
  • 10. Strategic Business Proposal Page 10 of 35 In the second year, the full-time Engineering Technician will continue working exclusively for TileTach for an annual salary of $47,916. Also, a part-time Marketing Coordinator will be to take over the marketing of Coachella. According to Glassdoor, the average annual salary for a part-time Marketing Coordinator is $47,793 (Part-Time Marketing Coordinator, 2019). Also, 20 part-time tech interns will be hired to help manage the booths at Coachella. Since Coachella starts at 11 am and finishes around 1 am, 10 interns will work the first seven hours in the morning and the other 10 will work the last seven, until Coachella wraps for the day. The interns will earn an hourly wage of $15 for the six days the festival runs. The total expenditure on salaries for part-time interns at Coachella is $12,600. The total expense of salaries for the second year is $108,309. In the third year, the full-time Engineering Technician will continue working exclusively for TileTach for an annual salary of $47,916 and the part-time Marketing Coordinator will switch to a full-time position for an increased annual salary of $56,000. With the assumption of increased sales, we will double the number of employees for Coachella to 40 part-time tech interns. The total expenditure on salaries for part-time interns is $25,200. Also, due to the new partnership with Lollapalooza, there will be hiring of 20 part-time tech interns who will work at the four-day festival and earn a $15 hourly wage. Due to the festival starting at 11 am and finishing at 10 pm, we will use the same tactic that was implemented for our first year with Coachella. The total expenditure on salaries for part-time interns at Lollapalooza is $6,600. The total expense of salaries for the third year is $135,716. Additional Operational Needs No new location will be needed for the development of the TileTach because we plan on using Tile’s headquarters, located in San Mateo, California. In order for our planning and development to run smoothly, we will need to purchase additional equipment. Coachella and Lollapalooza provide their Wi- Fi hotspots around the festival grounds, therefore, there is no need for Tile to provide its Wi-Fi. A charging station will be required to charge the iPads to ensure that they are ready to be used by festivalgoers. Moreover, additional computers, desks, and chairs will be needed to give the necessary space for the new employees to conduct their research and development of TileTach. With Tile being a manufacturer and a producer of tracking devices, additional equipment is not necessary. The equipment that will be incorporated in the TileTach will be the attachment USB-C for the iPhone, the GPS GSM
  • 11. Strategic Business Proposal Page 11 of 35 module, the special key that locks TileTach to iPhone, and the Arduino Software to code the module (Arduino Software, 2019). In the first year, computer desks and chairs will be a one-time purchase for the new Engineering Technician and Marketing Coordinator. Two computer desks will be purchased from Amazon, a total of $199.98 (Amazon, 2019). Along with the computer desks, two computer chairs purchased from Amazon for a total of $79.98 (Amazon, 2019). Also, the two new employees will need a computer to work from. Two all-in-one Dell-Inspiron desktop with all its necessary items and with a three-year Geek Squad protection will be purchased for a total of $1,231.56 (Best Buy, 2019). The purchase of 50,000 USB-C for $0.47 each is a total cost of $22,500 (2 in 1 Lightning Adapter Cable, 2019). The purchase of a 50,000 GPS GSM module for $7 each is a total cost of $350,000 (GPS Module, 2019). Lastly, the purchase of 50,000 flat keys for $0.19 each is a total cost of $9,500. The total expense for equipment in the first year is $383,511.52. In the second year, 20 tech interns will work part-time at Coachella for the six days of the festival. A tent will be necessary to provide our tech service to TileTach customers. One event tent will be purchased on Amazon for a total cost of $99.99 (Amazon, 2019). Two outdoor folding tables will also be purchased to place the iPads that will be provided to TileTach customers, which will cost a total of $90.15 (Academy, 2019). A total of eight 128GB iPads will be provided at our tent during Coachella, costing a total of $4,432.36 (Apple, 2019). The purchase of 148,500 USB-C is a total cost of $66,825. The purchase of 148,500 GPS GSM module is a total cost of $1,039,500. The purchase of 148,500 flat keys is a total cost of $28,215. The total expense for equipment for year two is $1,139,162.50. In year three, additional equipment will be purchased for Coachella and the addition of Lollapalooza. Two additional event tents will be purchased, costing a total of $199.98. Two additional outdoor folding tables will be purchased, totaling $180.30. An additional four 128GB iPads will be purchased, costing $2,216.18. The purchase of 370,000 USB-C is a total cost of $166,500. The purchase of 370,000 GPS GSM modules is a total cost of $2,590,000. The purchase of 370,000 flat keys is a total cost of $70,300. The total expense for equipment for year three is $2,829,396.46.
  • 12. Strategic Business Proposal Page 12 of 35 Marketing Strategy The marketing of TileTach is an essential part of the proposal. Due to TileTach being a new product to the market we will cater to customers in a popular distribution channel, which will require a structured planning and execution for the service to be rewarding for customers. Direct Marketing Billboard: According to the Arbitron National In-Car Study, “the average American spends over 18 hours per week driving and 71% of consumers report looking at messages on billboards” (Commexis, 2016). To market TileTach to Coachella fans we will design a billboard that will be displayed in one of the busiest highways in the U.S., Interstate 405. The background of the billboard will display a crowd of people by the stage at the Coachella festival and will focus on one festivalgoer. The sun is setting down and festival-goer Kevin is all by himself standing far away from the crowd. Kevin has his face covered with his hands, which demonstrates his frustration because he realized his phone is no longer in his pocket. The call to action is, “Don’t be a Kevin! Use TileTach to easily track your lost phone at Coachella.” The call to action ultimately will persuade viewers to purchase the TileTach when purchasing their Coachella tickets. The billboard campaign will be displayed through January and February a day after Coachella announces its lineup. Every year a new billboard design will be created specifically for the targeted music festival and will be displayed for two months. Flyers: Marketing nowadays is mainly focused on social media; however, flyer distribution is still very effective. According to the article, “5 Major Reasons Why Flyer Distribution is Still Effective,” using flyers for advertisement is an “affordable manner of delivering your goods or services to your own potential clients” (Manes, 2016). To reach festivalgoers who value a personal touch marketing campaign, we will design a flyer that will be distributed in the busiest cities, such as The Grove LA and Santa Monica Pier. The background of the flyers will be the same design Coachella uses for their posters every year for the announcement of their lineup. The call to action is, “Coachella Is Here Don’t Lose Your iPhone This Year.” The call to action ultimately will persuade viewers to purchase the TileTach when purchasing their Coachella tickets. The flyers will be distributed for a week before Coachella tickets go on sale. Every year
  • 13. Strategic Business Proposal Page 13 of 35 a new flyer design will be created specifically for the targeted music festival and will be distributed within the span of seven days before tickets go on sale (See Appendix 3). Online Advertising Instagram: According to the article, “Instagram Ads Strategy: 7 Effective Tactics to Maximize your ROI,” over 75% of Instagram users “take action, such as visiting a website, after looking at a brand’s post” (AdEspresso, 2018). The use of Instagram for marketing is an outstanding opportunity for businesses. To reach new customers, we will design a story Ad that will catch the viewers’ attention. The background of the Ad is white, the main focus is on the iPhone, and a map that shows the location of John’s phone. Next to the iPhone, the TileTach is displayed. The call to action is, “Lost your Phone? No worries, we got you covered.” The call to action ultimately will persuade viewers to purchase the TileTach. The story Ad will run on Instagram every other month, depending on many views the story ad receives. Every year a new Instagram story Ad will be designed to market the TileTach (See Appendix 3). Twitter: One of the most used social media platforms by our target market is Twitter. Twitter users not only can share what is going on within their day but also share pictures, videos, etc. According to the article, “6 Reasons Why You Should Use Twitter Ads Right Now,” Twitter will allow your business to get the “same visibility you seek for a better return on your investment” (Kim, 2018). To target our market, we will design a two-minute clip Ad. In the back a clip will showcase a fast mode clip of people walking around at the Lollapalooza grounds and the main focus will be on the demonstration of the TileTach. The call to action is, “Keep your phone save with TileTach.” The call to action ultimately will persuade viewers to purchase the TileTach when purchasing their Lollapalooza tickets. The ad will run on Twitter for two months after the lineup is announced. Every year a new Ad will be designed specifically for the targeted music festival and will run for two months. Marketing Expense Figures Each marketing tactic for the proposal of TileTach was carefully measured to reach our target market. The costs of each tactic are assumed based on research. In the first year, there will be no marketing expenses due to the development of the TileTach.
  • 14. Strategic Business Proposal Page 14 of 35 TileTach will launch in the second year with the partnership of the Coachella Music Valley and Arts Festival. According to the article, “How Much Does Billboard Advertising Cost?” a billboard displayed in busy cities like Los Angeles and Chicago costs anywhere between $2,000 to $15,000 a month (Queiroz, 2019). In the second year, a billboard targeted to Coachella fans will be displayed through January and February, costing a total of $6,000. The distribution of 3,000 flyers for the marketing of TileTach to Coachella fans will be distributed for two weeks before tickets go on sale, costing a total of $583 (NextDayFlyers, 2019). A total expense of $6,583 for direct marketing. Furthermore, online advertising will also be used to market the TileTach. According to the article, “How Much Does It Cost to Advertise on Instagram?” for an Instagram story Ad, it costs an average of $6.70 per thousand views (ThriveHive, 2019). For an estimate of 1 million views on our Instagram story Ad it will cost around $6,700. According to the article, “How Does Twitter Ads Compare to Facebook and Instagram?” the average cost of Ads on Twitter is anywhere between $9 to $11 per thousand views (Parsons, 2019). For an estimate of 350,000 views on our Twitter Ad it will cost around $3,150. A total expense of $9,850 for online advertising. The total marketing expense for the second year is $16,433. In the third year, two billboards will be displayed through January and February for the marketing of TileTach to Coachella fans, costing a total of $12,000. The distribution of flyers will be tripled to 9,000 and will be distributed in January, costing a total of $1,749. Moreover, with the new partnership of Lollapalooza, a billboard will be displayed through February and March in the city of Chicago, a total cost of $6,000. Also, the distribution of 3,000 flyers for the marketing of TileTach to Lollapalooza fans will be distributed for two weeks before tickets go on sale, a total cost of $583. A total expense of $20,332 for direct marketing. Furthermore, assuming that the partnership with Coachella the first year was success, we will double our Instagram story Ad to an estimate of 2 million views, costing a total of $13,400. It will cost a total of $6,300 for an estimate of 700,000 views on our Twitter Ad. Lastly, with the addition of Lollapalooza, it will cost around $6,700 for an estimate of 1 million views on our Instagram story Ad and $3,150 for an estimated 350,000 views on our Twitter Ad for marketing the TileTach to Lollapalooza fans. A total expense of $29,550 for online advertising. The total marketing expense for the third year is $49,882.
  • 15. Strategic Business Proposal Page 15 of 35 Legal Factors There are many risks that we will need to focus on throughout the creation of TileTach. Some of those risks include privacy issues, data retention, use issues, and product liability issues. Risks and Liabilities Product liability issues include the risk of misuse, risk of product failures or inaccurate location or navigation information, and the risks associated with inaccurate descriptions of the capabilities and limitations of the TileTach (FindLaw Attorney Writers, 2019). To avoid being held liable for those issues, we will hire a lawyer that will assist us in writing a legally binding disclaimer. According to the FindLaw Attorney Writers “consumer expectations regarding GPS can be unrealistic” (2019). With that in mind, we will carefully and accurately describe the capabilities of the TileTach regarding signal accuracy, integrity, and availability. We will also hire a lawyer to create a term of use and privacy policy that must be agreed to by any customer purchasing the TileTach. These agreements will describe the information that our company is collecting for future reports and will also explain to the customers any sharing of their information that we as a company may decide on. These agreements will ensure that we have the customers’ consent to use and distribute their information if we choose to do so. Contracts TileTach technology is being developed to assist customers in attending music festivals or other large crowd events in which their cellular device may be lost or stolen. Contracts must be created between Tile, Inc. and the music festival in which the TileTach will be used. These contracts will allow Tile to use the music festivals name and/or logos for advertising and promoting purposes. The hired lawyer and/or attorney will be responsible for creating these contracts. Insurance Since we plan to begin capitalizing on the audience of music festivals in the second and third year, we will need to purchase general liability insurance.
  • 16. Strategic Business Proposal Page 16 of 35 Intellectual Property Tile, Inc. will need to secure the copyright for the name TileTach and will also need to file a trademark for the idea created. Both of these can be done online for a fee and the hired lawyer will be responsible for completing those tasks. We will also need to secure the rights to use the name and logo of any music festival we are partnering with; those rights will be secured through the above-mentioned contracts. Legal Factors Expense Figures According to thervo.com, the National average hourly rate for an Attorney in 2019 is $225.00 (Average Attorney Fees, 2019). We estimate that we will need an attorney who will work remotely from home for 300 hours a year to aid us in creating contracts, disclaimers, and to file the copyright and trademark applications online. The yearly expense for an attorney will be $67,500. Glassdoor list that a Tile Accountant’s salary ranges from $31-$34 an hour (Tile Accountant Salaries, 2019). To figure expenses, we calculated that we will use Tile’s accountant to work on the TileTach at a rate of $33 an hour. The accountant will also work remotely from home for 500 hours during the first three years of the plan. We anticipate a yearly cost of $16,500 to go towards the accountant. The average annual cost for general liability insurance is $741.00 (General Liability Insurance Cost, 2019). The cost of an online trademark application through the USPTO is $400 and will not need to be renewed for 10 years after the filing date (Trademark Fee Information, 2019). The cost of an online filing of copyright is $55 (Copyright Fees, 2019). In the first year, our expenses will include an attorney, an accountant, a trademark fee, and a copyright filing fee. Based on the research we can assume that in the first year the total expense on legal factors will be $84,455. In the second and third years, we will add general liability insurance and will not have a trademark or copyright fee. The total expense on legal factors for years two and three is $84,471 each year.
  • 17. Strategic Business Proposal Page 17 of 35 4: Sales Projections Sales Projections Name of Sales Projection The product we are creating for Tile is called the TileTach. This product will allow consumers to track their iPhones without having to worry about battery life or having to connect to Bluetooth services. Using a GPS module, data will be sent through GSM to a cloud database to track the location. The TileTach will connect to the iPhone through the charging port and can only be disconnected using the key provided to the user at purchase. During the second and third year of the launch of TileTach, it will only be available to iPhone users. However, TileTach will be expanding to accommodate Android users during the later years of production. The TileTach will only be sold online at first but is projected to expand to retail stores such as Apple, Best Buy, and Target in the fourth year if the demand is high enough. Unit Volume Explanation No products will be sold in the first year due to the development of the TileTach and to allow time to create marketing plans and to develop partnerships. During the second year, the TileTach will be sold to those attending the Coachella Music festival. In 2018, there was an average of 99,000 attendees per day during the six-day festival (GQ Staff, 2019). Therefore, there were about 594,000 people that attended Coachella in 2018. We estimate that 25% of those attending the Coachella music festival will purchase a TileTach. At the end of the second year, TileTach is projected to have a total of 148,500 units sold to Coachella attendees. In the third year, TileTach will be introduced to our new music festival partner, Lollapalooza. According to the article, “TOP 15: Music Festivals in the USA 2019,” Lollapalooza is considered the second most popular music festival in the U.S. (Festicket Writers, 2019). This past year, Lollapalooza had an average of 100,000 attendees per day during the four-day festival (Kot, 2019). Therefore, a total of 400,000 people attended Lollapalooza in 2019. Due to this being the first year of the partnership with Lollapalooza, we estimate that 25% of those who attend Lollapalooza will purchase a TileTach, resulting in a total of 100,000 units being sold. With this being the second year of our partnership with Coachella, we estimate that 45% of the average 594,000 attendees will purchase a TileTach, resulting in 267,300
  • 18. Strategic Business Proposal Page 18 of 35 units being sold through Coachella. At the end of the third year, TileTach is projected to have a total of 367,300 units sold to Coachella and Lollapalooza attendees. Unit Price Explanation The TileTach will be sold for $50 per unit. The price of the TileTach was determined by examining the prices of current Tile technologies. The latest release from Tile is the Tile Pro, which costs $35 per unit (Tile Products, 2019). The Tile Slim is $30 per unit and the Tile Mate is $20 per unit as well (Tile Products, 2019). Tile products increase in $5 and $10 increments. Tile will be able to easily justify the price of the TileTach because it is offering a new and innovative technology that will effectively keep consumers' phones safe. The TileTach price was also based on the prices of their competitors TrackR, Pebblebee, and Chipolo. TrackR charges $29.99 for their single TrackR Pixel (Get Your TrackR Pixel, 2019). Pebblebee sells its Finder 2.0 for $35 (Pebblebee 2.0, 2019). Lastly, Chipolo charges $25 for their Chipolo Plus (Chipolo Products, 2019). While the price of the TileTach is higher than our competitors, Tile can charge more for the TileTach because of how advanced the technology is. Unit Cost Explanation We are estimating the unit cost for each TileTach in the second and third years will be $7.64. To create the TileTach we will need to pay for the GPS GSM Module that will assist in tracking the customers' phone, the lightning cable adapter that will be used to connect the TileTach to the iPhone, and the flat key that secures the TileTach in place. The cost for a single lightning cable adapter is $0.45 (2 in 1 Lightning Adapter Cable, 2019). The cost of a single GPS GSM module is $7 (GPS GSM Module Price, 2019). The cost of a key is $0.19 (Zinc Alloy Safety Blank Key, 2019). Tile already has a manufacturing agreement with the company Jabil, therefore, there will be no need to add a cost for manufacturing (Chin Leong, 2015). Moreover, we will team with the engineers already employed by Tile to create the device. Sales Projection Figures There will not be revenue for the first year since the product will still be in development. During the second year, it is projected that 148,500 of the TileTach will be sold at $50 with a unit cost of $7.64,
  • 19. Strategic Business Proposal Page 19 of 35 resulting in net sales of $7,425,000. In year three it is estimated that a total of 367,300 units will be sold at $50 with a unit cost of $7.64 resulting in net sales of $18,365,00 (See Appendix 4). 5: Project Timeline Our plan for development and taking the TileTach to market will take roughly a year to complete. We will hire an Engineering Technician who will work on creating the TileTach that functions to the best of its ability and serve the purpose of tracking phones. Meanwhile, another task will include hiring a Marketing Coordinator. Once the TileTach has been tested and finalized, we will have our sales team introduce the product to the Board of Directors of the Coachella Music Valley and Arts Festival. The next step is the Marketing Coordinator will work on the promotion of the TileTach to Coachella fans through the use of billboards, flyers, Instagram, and Twitter. Negotiating the product with music festivals will be a priority. The first year is exclusively for the development of the TileTach and negotiation with Coachella. In the second year, we aim to have a successful sale with Coachella and partner with Lollapalooza for the following year. We will also work on promotion and advertising to get more exposure. In the third year, TileTach will be sold to Coachella and Lollapalooza attendees when they purchase their tickets online. Our goal is to make people’s lives easier when it comes to locating their phone. We want to provide the best possible service to our users while also offering the best customer service. Our team will include a handful of experienced technicians who will work till the end to ensure the product works to its maximum capacity. TileTach’s innovative technology is yet to be found in the market (See Appendix 6). Pre-Launch and Year One Date/Time-Frame Event/Milestone October 25th, 2019 Proposal to Tile's Board of Directors October 28th , 2019- November 28th, 2019 Additional employees hired October 25th , 2020 Finalize the TileTach November 1st , 2020 Negotiation with Coachella Music Valley and Arts Festival December 31st , 2020 Announcement of Coachella Music Valley and Arts Festival partnership to start 2021
  • 20. Strategic Business Proposal Page 20 of 35 Year Two Date/Time-Frame Event/Milestone January 1st, 2021- February 1st , 2021 Marketing TileTach for Coachella June 7th, 2021 Negotiation with Lollapalooza July 31st, 2021 Announcement of Lollapalooza partnership to start 2022 October 25th , 2021 TileTach software update December 31st, 2021 Expect a revenue of $7,425,000 Year Three Date/Time-Frame Event/Milestone January 1st, 2022 Development of TileTach for Android phones starts January 10th , 2022- January 13th , 2022 Negotiations with Apple, Best Buy, and Target partnership February 1st , 2022- March 1st , 2022 Marketing TileTach for Lollapalooza November 1st , 2022 Announcement of Apple, Best Buy, and Target partnership to start 2023 December 31st, 2022 Expect a revenue of $18,365,000 6: Future Plans The long-term goal for TileTach is that ultimately everyone that attends large crowded events and fears that their phone will get stolen and/or lost, will opt-in to purchasing a TileTach to easily track it down. Within the first two years of releasing the product to the market, it will allow us to make any necessary adjustments to the TileTach by hearing the customers' feedback, such as trouble with the battery, lagging of the location, customer service, etc. For example, if there is an issue with the lagging of the location, a solution to that problem would be to do a release on an update on the Tile app. In the fourth year, the new TileTach will be launched and will be compatible with iPhone and Android users. TileTach will also be available in retailers, such as Apple, Best Buy, and Target. In the following years, we will introduce a TileTach phone case in a variety of colors, the product will protect the phone from physical damage and theft. Technology is evolving faster than ever these days; therefore, it is important to stay on top of our competitors as well. At the end of the day, our goal is to minimize the
  • 21. Strategic Business Proposal Page 21 of 35 number of phones that get stolen and lost in large crowds while giving our customers the best experience when using TileTach.
  • 22. Strategic Business Proposal Page 22 of 35 7: Appendices and References References 2 in 1 lighting adapter cable. (2019). Alibaba.com. Retrieved from https://bit.ly/2MAbRmO About Tile. (2019). Tile. Retrieved from https://www.thetileapp.com/en-us/about-tile Academy sports + outdoors 6 ft bifold table. (2019). Academy. Retrieved from https://www.academy.com/shop/pdp/academy-sports--outdoors-6-ft-bifold- table#repChildCatid=3866002 Age distribution of festival-goers in Europe 2016. (2016). Statista. Retrieved from https://www.statista.com/statistics/438157/age-distribution-of-festival-goers-in-europe/ Arduino software. (2019). Arduino. Retrieved from https://www.arduino.cc/en/Main/Software Are TrackR devices waterproof? (n.d.). TrackR Gizmo. Retrieved from https://www.trackr.co.th/faqs/are-trackr-devices-waterproof/ Average Attorney fees. (2019). Thervo. Retrieved from https://thervo.com/costs/attorney-fees Blank Coachella background. (2015). Reddit. Retrieved from http://i.imgur.com/IQ0gN38.jpg Bush, S. (2018, April 11). How to keep your phone from being stolen at Coachella and what to do if it is taken. The Press- Enterprise. Retrieved from https://www.pe.com/2018/04/11/how-to-keep- your-phone-from-being-stolen-at-coachella-and-what-to-do-if-it-is-taken/ Business flyers. (2019). NextDayFlyers. Retrieved from https://www.nextdayflyers.com/flyer- printing/business-flyers.php Chin Leong, K. (2015, May 6). Jabil- The manufacturing giant you’ve never heard of- steps out of the shadows. Fast Company. Retrieved from https://www.fastcompany.com/3045936/jabil-circuit Copyright Fees. (2018). Copyright.gov. Retrieved from https://www.copyright.gov/about/fees.html Dell – Inspiron 21.5” touch-screen all-in-one. (2019). Best Buy. Retrieved from https://www.bestbuy.com/cart Do billboard ads work? In a nutshell, yes.... (2016, August 9). Commexis. Retrieved from https://commexis.com/do-billboard-ads-work-in-a-nutshell-yes/
  • 23. Strategic Business Proposal Page 23 of 35 Dunn, J. (2016, August 31). This company is trying to make sure you never lose anything again. Business Insider. Retrieved from https://www.businessinsider.com/tile-slim-bluetooth-tracker-platform- announcement-2016-8 Engineering Technician salaries. (2019). Glassdoor. Retrieved from https://www.glassdoor.com/Salaries/engineering-technician-salary-SRCH_KO0,22.htm Festicket Writers. (2019, September 19). TOP 15: Music festivals in the USA 2019. Festicket. Retrieved from https://www.festicket.com/magazine/discover/top-festivals-usa/ FindLaw Attorney Writers. (2019). Legal issues for companies and agencies that use GPS-based navigation and position technologies: Privacy issues. FindLaw. Retrieved from https://corporate.findlaw.com/litigation-disputes/legal-issues-for-companies-and-agencies- that-use-gps-based.html General liability insurance cost. (2019). Insureon. Retrieved from https://www.insureon.com/small- business-insurance/general-liability/cost Get your TrackR Pixel. (2019). TrackR. Retrieved from https://www.thetrackr.com/get-trackr/ GQ Staff. (2019, April 10). Everything you need to know about Coachella 2019: Lineup, scheduling, and things to do. GQ Australia. Retrieved from https://www.gq.com.au/entertainment/music/everything-you-need-to-know-about-coachella- 2019/image-gallery/4b0df760309aa435fe8281acc1b88607 GPS module. (2019). Alibaba.com. Retrieved from https://bit.ly/2MbIOHi Guy, N. (2019, October 8). The Best Bluetooth Tracker. The Wire Cutter. Retrieved from https://thewirecutter.com/reviews/best-bluetooth-tracker/ How can I adjust the volume of Chipolo? (2018). Chipolo. Retrieved from https://support.chipolo.net/hc/en-us/articles/208790789-How-can-I-adjust-the-VOLUME- of-Chipolo- How it works- Pebblebee. (2019). Pebblebee. Retrieved from https://pebblebee.com/pages/how-it- works How much does it cost to advertise on Instagram? (2019, February 24). ThriveHive. Retrieved from https://thrivehive.com/how-much-does-it-cost-to-advertise-on-instagram/
  • 24. Strategic Business Proposal Page 24 of 35 Instagram ads strategy: 7 effective tactics to maximize your ROI. (2018, June 14). AdEspresso. Retrieved from https://adespresso.com/blog/instagram-ads-strategy-high-roi/ Ion, F. (2015, January 13). Tile review: Would you pay $25 a year to find your keys (maybe)? Green Bot. Retrieved from https://www.greenbot.com/article/2867072/tile-review-would-you-pay-25-a- year-to-find-your-keys-maybe.html iPad 10.2-inch. (2019). Apple. Retrieved from https://www.apple.com/shop/buy-ipad/ipad-10-2 Kim, L. (2018, January 17). 6 reasons why you should use Twitter Ads right now. Medium. Retrieved from https://medium.com/marketing-and-entrepreneurship/6-reasons-why-you-should-use- twitter-ads-right-now-5a9dbee1d7d4 Kot, G. (2019, July 25). Lollapalooza is healthy, despite slow ticket sales this year and (the fest owners hope) here to stay. Chicago Tribune. Retrieved from https://www.chicagotribune.com/entertainment/lollapalooza/ct-ent-lollapalooza-2019- 20190724-c7hl3bcss5h5vjhzlya55me7wq-story.html Lee, N. (2018, October 8). Tile's new Bluetooth trackers come with replaceable batteries. Engadget. Retrieved from https://www.engadget.com/2018/10/02/tile-mate-pro-replaceable-batteries/ Lollapalooza logo. (2019). Lollapalooza. Retrieved from https://www.lollapalooza.com Lunden, I. (2019, July 24). Tile finds another $45M to expand its item-tracking devices and platform. Tech Crunch. Retrieved from https://techcrunch.com/2019/07/24/tile-finds-another-45m-for- its-item-tracking-platform/ Manes, J. (2016, June 30). 5 major reasons why flyer distribution is still effective. Medium. Retrieved from https://medium.com/@jamesmanes16/5-major-reasons-why-flyer-distribution-is-still- effective-5fd0ab6bfaa0 Michaels, P. (2019, September 27). Best and worst wireless key finders 2019. Tom’s Guide. Retrieved from https://www.tomsguide.com/us/best-key-finders,review-2657.html Newman, J. (2019, January 3). How tracking startups TrackR and Tile lost (and found) their way. Fast Company. Retrieved from https://www.fastcompany.com/90285686/how-tracking-startups- trackr-and-tile-lost-and-found-their-way Office chair. (2019). Amazon. Retrieved from https://amzn.to/2OIGoS3
  • 25. Strategic Business Proposal Page 25 of 35 Parsons, J. (2016, May 12). How Does Twitter Ads Compare to Facebook and Instagram? Follows.com. Retrieved from https://follows.com/blog/2016/05/twitter-ads-facebook-instagram Part-time Marketing Coordinator salaries. (2019). Glassdoor. Retrieved from https://www.glassdoor.com/Salaries/part-time-marketing-coordinator-salary- SRCH_KO0,31.htm Pebblebee Finder 2.0. (2019). Pebblebee. Retrieved from https://pebblebee.com/products/pebblebee- finder-2 Perez, S. (2019, September 6). Tile teams up with Google to bring its lost item finding technology to Google Assistant. Tech Crunch. Retrieved from https://techcrunch.com/2019/09/06/tile-teams- up-with-google-to-bring-its-lost-item-finding-technology-to-google-assistant/ Perez, S. (2017, May 16). Lost item finder Tile grabs another $25 million in funding. TechCrunch. Retrieved from https://techcrunch.com/2017/05/16/lost-item-finder-tile-grabs-another-25- million-in-funding/ Plaugic, L. (2017, April 17). Coachella man caught stealing over 100 phones thanks to Find My iPhone. The Verge. Retrieved from https://www.theverge.com/2017/4/17/15327670/coachella-phone- thief-find-my-iphone Queiroz, R. (2019, August 21). How much do billboards cost? Dash Two. Retrieved from https://dashtwo.com/blog/how-much-does-billboard-advertising-cost/ Revealed: The most commonly lost items with keys, phones and glasses topping the list. (2016, June 21). Express. Retrieved from https://www.express.co.uk/news/uk/681961/Common-lost-items- keys-phones-glasses-revealed-list Rossignol, J. (2017, April 17). MacRumors. Retrieved from https://www.macrumors.com/2019/04/17/apple-tile-like-item-tracker-rumor/ SIC Industry: 7372 prepackaged software. (2018). NAICS Association. Retrieved from https://www.naics.com/sic-industry-description/?code=7372 Social networking platforms' user demographics update 2019. (2019, April 24). Marketing Charts. Retrieved from https://www.marketingcharts.com/digital/social-media-108184 Tangkula 10’x30’ outdoor canopy tent. (2019). Amazon. Retrieved from https://amzn.to/2MuS5ZG
  • 26. Strategic Business Proposal Page 26 of 35 Tillman, M. (2019, September 20). Apple Tags: Release date, rumors, leaks, and more. Pocket-lint. Retrieved from https://www.pocket-lint.com/gadgets/news/apple/149277-apple-tracking- device-everything-you-need-to-know Tile. (2017, October 12). tile|Lost panda| together we find. [Video File]. YouTube. Retrieved from https://www.youtube.com/watch?v=u-evd9B-ZKg Tile Accountant salaries. (2019). Glassdoor. Retrieved from https://www.glassdoor.com/Salary/Tile- Finance-and-Accounting-Salaries-EI_IE826775.0,4_DEPT1008.htm Tile competitors, revenue and employees - Owler company profile. (2018). Owler. Retrieved from https://www.owler.com/company/thetileapp Tile Inc. (2019). Bloomberg. Retrieved from https://www.bloomberg.com/profile/company/1004151D:US Tile Mate trackers. (2019). Tile. Retrieved from https://www.thetileapp.com/en-us/store/tiles/mate Tile logo. (2013). Wikimedia Commons. Retrieved from https://commons.wikimedia.org/wiki/File:Tile_logo.png Tile products. (2019). Tile. Retrieved from https://www.thetileapp.com/en-us/products Tile stock price, funding rounds, valuation, and financials. (2016). Craft. Retrieved from https://craft.co/tile-inc/metrics TrackR features. (2019). TrackR. Retrieved from https://www.thetrackr.com/features/ Trademark Fee Information. (2019). USPTO. Retrieved from https://www.uspto.gov/trademark/trademark-fee-information Tweney, D. (2015, August 18). How Tile went from crowdfunding to 2M units sold in two years. Venture Beat. Retrieved from https://venturebeat.com/2015/08/18/how-tile-went-from- crowdfunding-to-2m-units-sold-in-two-years/ Weber, H. (2017, December 7). Tile is the worst tech stocking stuffer. Gizmodo. Retrieved from https://gizmodo.com/tile-is-the-worst-tech-stocking-stuffer-1821046107 Zinc alloy safety blank key. (2019). Alibaba.com. Retrieved from https://bit.ly/2oCGobE
  • 27. Strategic Business Proposal Page 27 of 35 Appendices Appendix 1: Target Market
  • 28. Strategic Business Proposal Page 28 of 35 Appendix 2: Competitive Matrix Tile TrackR Pebblebee Chipolo Competitive Product/Service Item tracker Item tracker Item tracker Item tracker Water Resistance Yes Yes Yes Yes Battery Replacement Yes Yes Rechargeable battery No Alert Sound Level 132 decibels 90 decibels 115 decibels 100 decibels
  • 29. Strategic Business Proposal Page 29 of 35 Appendix 3: Marketing Campaign Sample
  • 31. Strategic Business Proposal Page 31 of 35 Appendix 4: Sales Projections Tile Year 1 Year 2 Year 3 TileTach Unit Volume 0 148,500 367,300 Unit Price $0.00 $50.00 $50.00 Unit Cost $0.00 $7.64 $7.64 Total Net Sales 1 $0 $6,290,460 $15,558,828 Total Sales: $0 $6,290,460 $15,558,828
  • 32. Strategic Business Proposal Page 32 of 35 Appendix 5: Expenses Name of Company Marketing Year 1 Year 2 Year 3 Annual Expense Annual Expense Annual Expense Direct Marketing One billboard ($6,000) for two months and 3,000 flyers ($583) for Coachella in year two. Two billboards ($12,000) for two months and 9,000 flyers ($1,749) for Coachella in year three. In addition, one billboard ($6,000) for two months and 3,000 flyers ($583) for Lollapalooza in year three. $0 $6,583 $20,332 Online Advertising In year two, Instagram story Ad ($6,700) and Twitter Ad ($3,150) for Coachella. In year three, Instagram story Ad ($13,400) and Twitter Ad ($6,300) for Coachella. Also, Instagram story Ad ($6,700) and Twitter Ad ($3,150) for Lollapalooza. $0 $9,850 $29,550 TOTAL $0 $16,433 $49,882 Employees Year 1 Year 2 Year 3 Total Wages Year 1 Total Wages Year 2 Total Wages Year 3 Engineering Technician One employee in all three years – annual salary of $47,916. $47,916 $47,916 $47,916 Marketing Coordinator One employee working part- time in year 2 – annual salary of $47,793. Same employee will move to full-time in year 3 – annual salary of $56,000 $0 $47,793 $56,000
  • 33. Strategic Business Proposal Page 33 of 35 Tech Interns 20 interns for year two – hourly wage of $15. 60 interns for year three – hourly wage of $15. $0 $12,600 $31,800 TOTAL $47,916 $108,309 $135,716 Equipment Year 1 Year 2 Year 3 Annual Expense Annual Expense Annual Expense Computers Two all-in-one Dell-Inspiron desktop computers with three-year Geek Squad protection - $615.78 each including protection (one- time purchase). $1,231.56 $0 $0 Office Furniture Folding Tables- $45 each (Two in year two and an additional two more in year three). Computer Desks- $99.99 each (Two in year one – one-time purchase). Computer Chairs- $39.99 each (Two in year one – one-time purchase). Tents- $99.99 each (One in year two and an additional two in year three). $279.96 $190.14 $380.28 Software Arduino Software for coding (free software). $0 $0 $0 iPads 128GB iPads - $554.04 each (Eight in year two and an additional four in year three). $0 $4,432.36 $2,216.18 USB-C Adapters USB-C Adapters- $0.45 each (50,000 in year one, 148,500 in year two, and 370,000 in year three). $22,500 $66,825 $166,500
  • 34. Strategic Business Proposal Page 34 of 35 GPS GSM Module GPS GSM Module- $7 each (50,000 in year one, 148,500 in year two, and 370,000 in year three). $350,000 $1,039,500 $2,590,000 Flat Keys Flat Keys- $.19 each (50,000 in year one, 148,500 in year two, and 370,000 in year three). $9,500 $28,215 $70,300 TOTAL $383,511.52 $1,139,162.50 $2,829,396.46 Professional Services Year 1 Year 2 Year 3 Annual Expense Annual Expense Annual Expense Lawyer 300 hours a year for an hourly wage of $225. $67,500 $67,500 $67,500 Accountant 500 hours a year for an hourly wage of $33. $16,500 $16,500 $16,500 Insurance General Liability Insurance- $741 a year $0 $741 $741 Intellectual Properties Trademark application- $400 Copyright filing- $55 $455 $0 $0 TOTAL $84,455 $84,741 $84,741
  • 35. Strategic Business Proposal Page 35 of 35 Appendix 6: Timeline and Milestones