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Final Chuta Corp Diesel Flex

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Final Chuta Corp Diesel Flex

  1. 1. Mr. G(Garel) IDC4UI-01 Chris Cootauco, Fiona Chu, Jeff Miu
  2. 2. The Company Name and Brand  Company Name: Chuta-Corp  Type of Business: Partnership  Brand: Diesel  Past Products: Diesel-Copter
  3. 3. Diesel-Copter  A battery operated back-pack and a helicopter hat that enables the user to fly 25 cm above the ground  No requirements in order to fly it (license, intelligence, physical capability)  Controllable with neck movements and head direction
  4. 4. Diesel-Copter  Light, portable and enjoyable for kids  A new innovation (Fresh on the Market)  Affordable and environmentally friendly
  5. 5. Diesel-Copter - Ancillary
  6. 6. FMD - Face-Mounted Display  A head mounted visor and it comes with gloves and several external sensor accessories  This enables the user to experience a virtual type of experience and participate in various activities within ones home  The technology is too costly in order to manufacture it to sold cheaply
  7. 7. Diesel-Flex  A portable innovative work out machine  Improves physical health by making exercise more fun  Has a variety of different exercises and activities: Punching, kicking, push ups, lifting weights, step machine, yoga stretches, etc.  Available for purchase with ancillary products
  8. 8. Which Product was Chosen and Why? Diesel-Flex  Improve the lives of others - innovative technology  A different prospective on training and working out  Increase reflexes’, endurance, speed and strength  Helps warm up – sports/mornings  Lose unwanted weight  A healthier life guarantees a longer one  One product provides a multi-purpose use  Entertaining recreation
  9. 9. Demographics  A survey was held among 60 participants  10 from each age group  Family, friends, relatives
  10. 10. Demographics Disposable Income (Monthly) 9 8 7 Gate Keeper 6 Under $50 Quantity 5 $50~$199 4 $200~$499 3 $500~$999 2 Above $1000 1 0 10~15 16~20 21~25 26~30 31~35 36~40 Age Group
  11. 11. Demographics Hours of Exercise per Week 10 9 8 7 0-1h 6 2-3h 5 4-5h 4 3 6h + 2 1 0 10~15 16~20 21~25 26~30 31~35 36~40 Age Group
  12. 12. Demographics Becoming Fit Working Alone or With Others 18% 20% Yes No Alone With Others 80% 82%
  13. 13. Demographics Most Effective Forms of Advertisements Newspapers 7 6 Billboard 5 Internet 4 Votes 3 Television 2 Radio 1 Magazine 0 10~15 16~20 21~25 26~30 31~35 36~40 Age Group
  14. 14. Target Market  High Schools and University/College facilities  Appeals to young adults and to middle-aged adults  Those who yearn for a healthier life-style and are interested in improving themselves through an entertaining way  Benefit people who are active and constantly play sports to keep them top in their game
  15. 15. Identifying - Core Product
  16. 16. Identifying - Core Product Reflex Punching and Kicking  Increase reflex  Test/measure: strength, speed, and reaction of your punches and kicks  LED lights blink to determine which box to punch  Scoreboard
  17. 17. Identifying - Core Product Stretching Wall  A panel of light-activated instructions show stretches  Sensors capture motion  Ensure correct form  Sensors are able to track progress and amount of flexibility  First set of cards comes with the core product
  18. 18. Identifying - Core Product Floor-Linings  Corrects the form of push-ups – Chest connect to sensor – beeping noise
  19. 19. Packaging  Product is made of plastic Inflate/Deflate – sensors are safely inserted already  Set up: Plug and Inflate  Packaging is the motorized air pump (2 in 1)  Dimension: 0.5m x 0.25m x 0.25m
  20. 20. Identifying – Ancillary Product  Different sets - different target markets  Becomes more difficult with each work-out routine - own pace  Beginner set included with core product, higher difficulties must be purchased - ancillary
  21. 21. Identifying – Ancillary Product
  22. 22. Identifying – Ancillary Product
  23. 23. Budgeting Budget Breakdown 1% 20% Production 43% Advertisement Savings Warranty 36%  Production including back-up plan ~$150,000  Advertising ~$125,000  Saving/Investment for future products ~$70,000  Warranty: 1 year (expect 3% return) ~$5,000
  24. 24. Budgeting – Production  Production Cost (without incentives):  Expect 1612 to be produced in a year ($150,000/$93)
  25. 25. Budgeting - Advertisement  Newspapers/Flyers – for decline  Magazines - constant replay value  Billboard - 1 full year – constantly reminding  Radio and T.V. Ads – especially for first release  Word-of-mouth and website
  26. 26. Promotion Plan *MAKE OUR PRODUCT SPECIAL*  Limited Addition – Silver – 200 Only  Limited addition over, other colors of Diesel- Flex, includes: blue, black, white, and green  Advertisements – Funny Ads.  Coupons if business starts to decline  Release Date: In December – Near Christmas (high demand)
  27. 27. Product Life Cycle
  28. 28. Product Life Cycle/Pricing Plan Introduction  Law of demand/supply is implemented, demand is high and supply is low (during festive holidays)  Mostly focusing on advertisement and informing consumers about the new product (TV, Radio)  Focus on limited edition promotion, raise hype for consumers  Prestige Pricing based on consumers perception  $449.99
  29. 29. Product Life Cycle/Pricing Plan Growth  Mainly backed with ancillary products  Price increase due to high demand  Strong ads help keep customer loyalty  Magazine ads to inform consumers – ads will be placed in sporting magazines  Start using billboard ads  $499.99
  30. 30. Product Life Cycle/Pricing Plan Mature  Sales start to slow down  Target Pricing are implemented – price that target market will pay  Coupon promotion is used to keep sales healthy  $359.99
  31. 31. Product Life Cycle/Pricing Plan Decline:  Sales are at a low  Must get rid of inventory  Lowest sale price  Coupons on newspapers/flyers  Bundle pricing with ancillary products  $299.99
  32. 32. Future Endeavors, the VS. Diesel- Flex  An improvement on the Diesel-Flex  Focuses on a competitive 1 on 1 workout  Twice the size of the regular Diesel-Flex
  33. 33. Potential Competitors  Other Gyms  Home-gym equipments (Bowflex)  Innovative Health-lifestyle interactive systems ( Wii, Wii-fit)
  34. 34. Point of Difference  Available with many ancillary products  Fun, entertaining way of exercise  New, never before done  Improves oneself through fun activities  Inflate and deflate whenever – very simple
  35. 35. Safety Hazards  Do not disassemble delicate machinery  Follow instructions properly  Risk transference – warning label that warns the user to use at own risk and that the company in no way responsible for any accidents  Risk Avoidance – Only ones who are able to use the product may do so (ages 10+)
  36. 36. Channel of Distribution  Stores such as Canadian Tire, Sportscheck  A mixture of indirect and direct distribution will help properly deliver our products right to the consumers  Two main distribution channels used is directly to the consumer and to retailers  Direct – internet – rely a lot on the website (cheaper, less transportation costs)  Indirect – retailers – larger availability to consumers
  37. 37. Spokesperson  The puppy Bulldog known as Diesel  He is cute and very approachable towards children  An example of a dog spokesperson; Taco- Bell Chihuahua
  38. 38. Logo/Symbol  An attractive logo helps attract consumers  A memorable picture such as this one helps reminds customers about the Diesel- Flex  The logo shows the product alongside with the mascot
  39. 39. Slogan – “Break the lazy hex with Diesel-Flex”  Rhymes  Easy to remember  Catchy with a punch  Original  Relevant to product  Grabs the consumers attention and persuades them to purchase

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