1. Group 8 Marketing Plan
Fly-U
For Princess in you
Chao-Hui Yin
Yu-Jou Tsai
Yu-Fan Huang
Yiwen Shao
Ming Chang
Chaitanya Reddy
Adwait Joshi

2. Traditional Umbrella
● Umbrella was invented in 11th century BC in China
● For 3000 years, the design has remained unchanged
● Typical design - a folding canopy supported by metal ribs,
which is mounted on a wooden, metal or plastic pole,
designed to protect a person against rain or sunlight.

3. p Durability p Convenience
p one at a
time
p Safety
p Puddle p View
obstruction
Drawbacks and Consumer needs

4. Fly-U
● Unique and innovative design for a new type of
umbrella

5. Product Description
● Uses uses air and airflow as the canopy
● Floats in the air by itself and follows the user
● LED lights on the top
▪ Air-fan on top to isolate rain
▪ Sensors to locate the user
▪ Safe Design

6. About Us: Assumptions
p We are Start-up Company and our product Fly-U is
crowd-funded with an initial investment of $10,000
p We are looking for further investments to begin mass
production, operate physical stores and run some
heavy promotions to increase our brand awareness.
p We are planning to launch Fly-U in October, 2015 (Q4)
nationwide in US and sell our product primarily
through online channels for the first year.

7. Market Trends
Demand for more and more customized umbrellas

8. Market Trends
p More than 2 umbrellas in countries with over 150
days of rainfall
p Folding umbrella is most used
p 20% of Americans and British don’t use umbrella

9. Market size and Market growth
p The annual retail market in the United States alone is
$348 million—about 33 million umbrellas.
p In 2013, China was the main global supplier of
umbrellas with a 92% share of global exports.
However, the fastest growing suppliers from 2007 to
2013 were Belgium (+37% per year) and Germany
(+23% per year). Global Imports
0%
30%
60%
90%
120%
0
650
1300
1950
2600
2009 2010 2011 2012 2013
Import USD Import % to previous year
97%95%
115%116%
87%
232724082544
2208
189587%
116% 115%
95% 97%

10. Competition
The biggest competitor for Fly-U is the traditional
umbrella
p Cheaper
p Lighter
p Familiar to people
p Also protects from sunlight
p No problem of battery life
p Easy and fast for mass production

11. SWOT Analysis
· Key patents and technology
advantage
· Creative and practical product
designers
· Good quality, fashionable product
· First mover advantage
· High costs of R&D and
manufacturing
· Difficult to scale-up
Low/No brand awareness
· First mover disadvantage
· Huge market with large volume
of mature customers
Ø Primary market of Women in US
- $235 million/year
Ø Potential segments such as
men, kids, youth, sports, etc.
· Long introduction time
· Saturated market
· Difficult to change the
convention/trend
S W
O T

12. Target markets
✓ High income household mothers
✓ Young ladies
✓ Middle aged men
Annual Sales Value in the US
(in million)
32%
68%
Women's Umbrella Other Umbrella

13. Product Life Cycle & Positioning
● Our company - introduction level
● Whole market - maturity level.
● Positioning as High-End Product
Fly-U
Umbrella

14. Marketing Program: Product

15. Marketing Program
Price
• Perceived-value pricing to maximize profit
• $100 small, $120 medium, $150 sport (Include 12 months guarantee)
• $10-20 top decorator.
Place
• United States
• Online stores for the first year

16. Promotion
• Launch and presell medium size Fly-
U as a Christmas gift for 100 dollars.
• Promotional videos - social media
• Web and print advertisements
• Free trial for famous bloggers
Customer Service
• 12 months warranty
• Extend 6 more months if finished
survey
Marketing Program

17. Marketing Budget
Marketing Expense Budget 2015* 2016 2017 2018
Social media $6,000 $16,000 $10,000 $10,000
Celebrity endorsement 6,000 12,000 12,000 12,000
Web advertisements 6,000 12,000 12,000 12,000
Website Implementation 12,000 3,000 3,000 3,000
$30,000 $43,000 37,000 37,000

18. Sales Forecast
p According to target customer structure, estimated
sales proportion is:
● Small($100) 35% Medium($120) 50% Sport($150) 15%
p First 5 Quarters Sales Units Forecast
Estimated units of first 5 Quarter
Small Medium Sport Total
2015Q4 175 250 75 500
2016Q1
(115%)
201 288 86 575
2016Q2
(98%)
197 282 85 564
2016Q3
(95%)
187 268 80 535
2016Q4
(118%)
221 316 95 632

19. Expense Forecast
Profit Forecast and Expense Budget
2015* 2016 2017 2018
Revenue $58,750 $270,897 $303,405 $354,984
Other Revenue (Funding) 100,000 0 0 0
Fixed cost (R&D) 6,000 6,000 6,000 6,000
Variable cost 32,250 167,149 187,207 219,033
Gross Profit $120,500 $97,748 $110,198 $129,951
Gross Profit Margin 205.11% 36.08% 36.32% 36.61%
Sales and Marketing
Expense 30,000 43,000 37,000 37,000
% of Sales 51.06% 15.87% 12.19% 10.42%
Operating Income $90,500 $54,748 $73,198 $92,951
Operating Margin 154.04% 20.21% 24.13% 26.18%
*2015 only has Q4

20. Break-Even Analysis
The break-even analysis indicates that $10,662 (91
units) will be required in monthly sales revenue to
reach the break-even point, 2016.
Break-Even Analysis:
Monthly Units Break-Even 91
Monthly Sales Break-Even $ 10,662
Assumptions:
Average Per-Unit Revenue $ 118
Average Per-Unit Variable Cost $ 73
Estimated Fixed Cost $ 4,083

21. Limitations
● Patent and Copyright.
● Expensive Technology – wide adoption can’t be
expected.
● Difficult to change consumers’ behavior as they’ve
been use to the traditional umbrella for ages.
● Quality Control.

22. Contingency Planning
● Plan A: We are going to monitor four Cities- Seattle, Washington,
New York and Newark to see which one is the bestseller. Then,
we will open our first physical store within these cities after first
year. Also if funded, we’ll increase promotion expenses and
programs, to increase our brand awareness.
● Plan B: Sell it to a big company and keep further development
of more unhandled products.
Annual precipitation of rain/snowfall by City
Day City Inches Millimetres
122/66.4 New York, NY 49.9/123.8 1268/314.5c
149/3 Seattle, WA 37.7/5 958/12.7c
114/8.1 Washington,
DC
39.7/14.5 1009/36.8c
122/14.5 Newark,NJ 46.3/28.6 1175/72.6c
*c for Centimeters