MBA 6307 - High Tech Marketing Marketing the $100 Laptop January 16, 2010

1. Marketing the $100 Laptop BRINGING TECHNOLOGY TO THE MASSES High-Tech Marketing MBA 6307 Paulina Baytler Chris Filly Christopher Serio

3. MIT Media Lab – The $100 Laptop

4. Expose children in developing nations to technology. One laptop per child.

5. Idea Launch – 2003

6. Non-Profit OLPC (One-Laptop Per Child) – 2005

7. Target Market – “The Next Billion”

8. Developing Economies – BRIC

9. Benchmark

11. Is Five-Million a Realistic Benchmark

12. Is a Kid-Centric Model the correct model

13. Large players competing fiercely

14. This became a race to penetrate these emerging markets.

16. Creating an inexpensive laptop that works

17. Design and concept challenges

19. Access to open R&D

20. Multiple competing issues (health, crime, etc…)

21. Budget restrictionsCreated for children, but marketed to Gov. Lack of classrooms, teachers, and textbooks The majority of children are not in school

24. Designed with children in mind

27. Porter’s 5 Force Analysis

30. Wireless-centric vs. PC-centricSupplier Power Threat of Substitute

35. Touch screen with integrated keyboard

40. Touch screen with integrated keyboard

46. Recommendations We recommend that OLPC lowers their benchmark and order requirements This will allow them to prove the benefits of their solution  make larger sales Need to move faster against aggressive competitors This may allow them to focus on smaller emerging markets other than BRIC More in line with their original vision

47. Action Plan Determine the lowest order amount possible without HUGE increases in price Identify new potential markets that can afford lower purchase requirements Conduct research proving effectiveness of the OLPC solution (and deficiency of competitors) Build a stronger case for multi-million unit sales

48. Conclusion