Situation AnalysisYou have not had a chance to charge your phone, but you grab it and try and make a call anyway and…the battery dies!How many times has YOUR phone died when you NEEDED it the most?

Situation AnalysisThe market has requested a self-sufficient energy pack which would make the mobile phone truly mobile.Motorola and Freeplay have cooperated to introduce the FreeCharge, enabling phones to be powered anywhere, anytime.

Situation AnalysisDesigned for people on the move who want to stay in touch:Business tripsCar tripsThe outdoorsHikingBoatingFishingCamping

Situation AnalysisEssential tool in emergency situations:

Emergency callsLast minute plans

Situation AnalysisMobile phones are consistently chosen as the product to be powered by a self-sufficient generator 2 out of 3 cell phone users would be interested in buying a self-sufficient phone chargerInterest is great among heavy users1 out of 3 mobile phone users worry about their mobile phone running out of battery when they are in a place they cannot recharge it

Situation AnalysisFreeplay conducted 20 focus groups in the USA, Germany, UK, and South Africa to understand customer reactions to mobile phone chargersRevealed:Frustration exists with battery performanceDemand exists in both developed and developing countries

Situation AnalysisThe FreeCharge is the world’s only self-sufficient energy pack for mobile phonesFor under a minute of winding, the FreeCharge provides energy for a 3-4 minute phone call or for several hours of standbyFreeCharge is to provide assured contact, safety, and convenience.

Marketing Mix: ProductThe Motorola Freecharge- the size of a sunglass case with a fold-out handle, can be cranked before or during cellular phone conversation- 11.5 ounce, only twice the size of the average cell phone- consists of a small generator unit which can be connected to your phone via plug-in module

Marketing Mix: Product- 45 seconds of winding will allow 4-6 minutes of talk time and SEVERAL hours of standby time- the more you wind the more power you put into the unit- equipped with LED change input indicator, which tells you how fast to wind and if energy is left in the unit- built to fit into the palm of you hand and be large enough to comfortably energize the unit through a robust winding handle

Add that up and here is what you get:

Freeplay Energy GroupFounded in 1994 and headquartered in LondonLeading developer of self-sufficient energy technologyIncorporates multiple energy sources, including solar panels, rechargeable batteries and patented wind-up capabilitiesWorking to distribute its products worldwide by joining with companies such as Motorola.Since 1995, has distributed over 2.5 million radios and flashlights using the Freeplay technology

Marketing Mix: PricePrice is consistent with consumer expectations, based on market research (Heavy Users, New Jersey, September

2000) 2/3 of these people said they would

“definitely buy” at $79.95 Prices mentioned by target consumer

groups ranged from $49.95 to $125.00 Suggested retail price is $65.00

Where and When?Expected to Arrive in stores this month, April 2002Expected in UK in June

Target MarketDesigned for busy people on the go who want to stay in touch on business trips, car trips, in the outdoors, hiking, boating, fishing, camping, or wherever users are without electricity but are willing to crank

Target MarketOutdoor enthusiasts (recreational market) – do not always have easy access to electricity. Independence from batteries gives them the added safety and convenience of knowing that they can keep in touch at all times. There are 189 million outdoor enthusiasts in the USA aloneEmergency concerned households – believe mobile phones are necessary safety devices in weather and other emergencies, but are concerned about battery failure

Target MarketFrequent travelers – are often frustrated by an inability to use their chargers in foreign countries and by shortage of available time at stationary electrical outletsDeveloping markets – offer opportunity where electricity availability lags behind mobile phone penetration

Target Market Today more than 110 million people are cell phone subscribersScarborough's market trending data shows that in 1999, slightly less than half (48 percent) of American adults owned a cell phone. In 2000, more than half (55 percent) of U.S adults owned a cell phone and in the latest 2001 study, cell phone penetration numbers are up to 62 percent

Unique Selling Proposition

What makes Motorola’s FreeCharge differentfrom the competition?

Unique Selling PropositionIt is the only cell phone charger that does not need an external energy source to recharge and store energy

Unique Selling Proposition

What the competitors are offering

Nokia

Benefits: Small, Light-weight, and slim

                              

 

BPS-1

Unique Selling Proposition

Panasonic

EB-BSD75EB-BSD35

EB-BSD93

Benefits: extended talk and standby time, super slim,

Unique Selling Proposition

Ericsson

BUS -11

Benefits: extended use, ultra slim, compact, use with laptop,high capacity, travel chargers

  BDA-10

CTR-10 (travel)

Unique Selling Proposition

Unique Selling Proposition

All competitor’s products require an external energy source!!

Motorola’s CompetitionNokia is the #1 manufacturer of cell phonesMotorola is #2Nokia has 40% more market share than MotorolaHowever, Nokia does not currently offer a product equivalent to the FreeCharge

FreeCharge CompetitorsAladdin Power Portable generator Needs no external

power source Charge with

squeeze of hand 1.6 watts/90

cranks a minute $59.95

                  

        

FreeCharge CompetitorsElectric Fuel: Instant Power

Lightweight, disposable battery Charges cell battery 3 times Connects to phone through

Smart Cord Only buy Smart Cord once, but

must buy replacement batteries Once opened, good for 2-3

months $14.95 with $9.95 replacements

                         

SWOT AnalysisHighlighting Advantages and Disadvantages, in order to maximize Strengths and Opportunities, and to minimize Threats and Weaknesses. All focused on helping a manager strategize.

STRENGTHSMotorola and Freeplay brand namesUncharted market, with little competitionFree Charge only works with Motorola products (Boasts their Sales)Fits in the palm of a hand, which is much smaller than a usual transformer(semi-conductor)Two Batteries (Internal and External), so there is always a supplemental energy source. (Physical crank and regular battery support)Top prize in Las Vegas, as the 2002 Consumer Electronics Show Innovation Award winner.

WEAKNESSESWeight and Size – (11.05 ounces = 2 times the weight of a normal cell phone)Only accessible in Motorola Phones (Until July)Cost – Up to an additional 80 dollars Cranking is physical, but the trend of the world is toward less physical labor.Inconvenient – Not for lugging around as a side hip pocket accessory.

Con’t WEAKNESSESMotorola Sales 2000 = 10.1 billion 2001 = 7.3 billion 2002 = ?

Net loss in 2001 of 1.2 billionMotorola Stock trend is on a decline (As seen to the left)

OPPORTUNITIESSale Trends of Communication Equipment

July and August = 6 billion a month

After 9-11 drop to approx. 3.6 billion a month

Slowly the trend is coming back, and its predicted that growth will continue and increase to about 15% more in July/August 2002.

With more Cell phone use, comes more possible need for Free Charge.

Con’t OPPORTUNITIESMarket – Hiking, outdoors, tirps, and people on the go. More of a “nice to have kind of accessory”

Europe is less focused on convenience, and they are more accustomed to wireless. Hence, they can’t risk having no energy

Africa – 20 to 30% electrification. Service providers need a supply of energy and

capability for connectionHence, Opportunity in Foreign Markets

THREATS“Six minutes of talk time is more of an oops, I ran out of time accessory.’ I don’t think it will replace the generic charger on the market.” stated Keither Nowak, Nokia.Hence, threat any enhanced battery that can last longer than the average battery. It threatens the physical necessity of

FreeCharge

Con’t THREATSGas power Motorola, NEC, and

Sony Charged for a month Only a little larger,

and heavier than the normal battery

Estimate that 200 million will be in use by 2010.

Solar Power 2 hours of solar

charging equates 18 minutes of talk time.

Sunpower Systems

Spectron – type of battery

Thank You…We will be happy to answer any questions.