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1 SolarCell: Solar Powered Mobile Phones

SolarCell: Solar Powered Mobile


Phones
Team Five: Chris Beltran
Messaline Clement
Mireya Gama
Cody Prue

Business Marketing
BUS 306-02, Fall 2013
Presented to Professor Davis
2 SolarCell: Solar Powered Mobile Phones

Table of Contents:
Executive Summary.5
Market Analysis...6
Situation Analysis6
Market Summary.6
Target Market..7
Geographics.7
Demographics..8
Behavioral Factors/Psychographics ...9
The Market..9
Market Needs..9
Market Trends....10
Market Growth...10
SWOT Analysis.11
Competition...12
The Product: A Solar Powered Mobile Phone...13
Product Offering13
Keys to Success.15
Critical Issues.....16
Marketing Strategy.16
Value Proposition...16
Mission...16
Marketing Objectives.16
Financial Objectives...17
Target Markets...17
Positioning.17
Strategies...19
Marketing Mix...20
Pricing20
Distribution20
Marketing Communications..21
3 SolarCell: Solar Powered Mobile Phones

Marketing Research...21
Financials...23
Break- even Analysis.....23
Sales Forecast....25
Expense Forecast...25
Controls..25
Implementation..26
Marketing the Organization...26
Contingency Planning26
References......28

List of Tables and Figures:


4 SolarCell: Solar Powered Mobile Phones

Figure 1: Demographics......8
Figure 2: SWOT Analysis..11
Figure 3: Positioning..18
Figure 4: Channel Distribution..20
Figure 5: Marketing Research22
Figure 6: Battery Life & Sun Exposure.23
Table 1: Break- Even Analysis.23
Figure 7: Break- Even Graph.24
Table 2: Sales Forecast..25
Table 3: Expense Forecast.25
5 SolarCell: Solar Powered Mobile Phones

Executive Summary
Solar Cell company has created a mobile phone with a sleek design to install a
solar panel screen onto the front or back of the phone that will charge the phone when it
runs low on battery. Implementing solar panels to fit on small screens would allow cell
phone users to charge their phones through the source of light. Having to constantly
charge a dying cell phone is a common issue that people struggle with.
The target market for this product can range from environmentally friendly
people, to the younger generation of people that rely or depend on their cell phones, to
the tourists and travelers in which the usage of cell phones is essential and necessary.
The target market we believe will be the first to become our customers is the younger
generation of cell phone users. Cell phones are the most quickly adopted consumer
technology in the history of the world. That is why younger adults (aged 18 to 29) are
significantly more likely than those in other age groups to engage in all of the mobile data
usage.
Current trends that exist today are the increase in cell phone use along with a
growing environmental awareness. It is always a problem and inconvenience carrying
more chargers for electronic devices (camera, cellphone, computer) when travelling,
especially when all electronic systems are not the same around the world, and people
traveling need different converters.
6 SolarCell: Solar Powered Mobile Phones

Marketing Analysis:

Situation Analysis
Along with call quality, a cell phone's battery life is one of the most important
considerations when choosing a handset. It is a huge burden to have a cell phone die in
the middle of an important call. And it is no fun either to have little power when theres
not a charger or outlet anywhere near. While manufacturers make lots of promises about
a phone's battery life, they do not always hold true to producing long battery life spans.
The best solution should be to find a way to produce electricity in a friendly manner,
especially for small electronic devices and at the same time be accessible everywhere.
The introduction of solar powered cell phones will eliminate these issues while
contributing to the growth of green energy. Solar cell phones have the ability to
completely revolutionize the way we communicate with each other.

Market Summary
Current trends are the increase in cell phone use along with a growing
environmental awareness. It is always a problem and inconvenience carrying more
chargers for electronic devices (camera, cellphone, and computer) when travelling. This
is true especially when all electronic systems are not the same around the world, and
people traveling need different converters. In order to solve this issue, our team has
formulated a new product that will eliminate the use of chargers to make charging more
convenient to cell phone users in an environmental friendly way. The target market for
this product can range from environmentally friendly people, to the younger generation
of people that rely or depend on their cell phones, to the tourists and travelers in which
the usage of cell phones is essential and necessary. This would appeal to environmentally
friendly people because eliminating the use of chargers would be saving and conserving
energy.
7 SolarCell: Solar Powered Mobile Phones

Target Market:

Geographics

World Region: North American


Country Region: Pacific
City Size: 500,000 1,000,000
Density: Urban, Suburban

Climate: Northern
The geographic factors chosen to represent our product effectively would be
primarily in an urban setting such as San Francisco. The reason is that the city is densely
populated by a multi-cultural melting pot of ethnicities and professions. To further
elaborate, San Francisco (S.F.) has a population of 825,863 and is considered urban (San
Francisco-California.2013). According to California Demographics by Cubit, San
Francisco Is the 13th most populated county in the state of California out of 58
counties. In addition to its population S.F. retains a fairly high median income per
household of about $71,304(Demographics Summary, Para.2).
It is true that solar panels work better when the sun shines but we have to mention
and make people understand that solar panels work even without a bright sun (Candy
Colored Solar Panels.2010). Solar cells are able to catch solar beams through clouds and
are able to convert the rays into electrical energy even when there are overcast weather
conditions.
Solar mobile phones can be very useful for charging phones in developing
countries and places where the electric grid is unreliable or power supply is
unpredictable. Many experts have suggested that solar powered cell phones will be most
successful in developing countries, where the electricity grid is not nearly as reliable
(Solar Cell Phones, N.d). Many of these cell phones come with a very reasonable price
tag which makes them more affordable for people living in less developed countries that
live on very minimal wages. They will be able to charge their phones without the need to
travel to a village and pay someone to use their power outlet.
8 SolarCell: Solar Powered Mobile Phones

Demographics
The most important demographic criteria we have researched are the age, income,
occupation, and education. These areas all seem to correlate and show that average age of
the residents are between the ages of 20-35 years old. Californias overall median age is
45.6 years(City-Data. 2012). The reason why this is relevant is because it shows that our
target market will be willing open to trying a product that is innovative and different. The
income portion of the demographics suggests our audience is able to afford our product
instead of a cheaper alternative phone. In addition, occupations regarded as technical,
managerial, and students are substantially relevant since they occupy the greatest
percentage of residences in San Francisco(City-Data. 2012)

Figure 1
Age Sex Family Size Life Cycle

20-34yrs Male and W/o children Young Single W/o


Female children

Income Occupation Generation

30-60k Professional, Gen X and


Annually Technical, and Millenials
Managers

The above figure shows a breakdown of San Franciscos average resident with
based on age, sex, family size, life cycle, income, occupation, and generation. All of
these factors are important because it shows that the average residents tastes can be
catered to, based on all of the factors listed above.
9 SolarCell: Solar Powered Mobile Phones

Behavior Factors/ Psychographics


The current lifestyles and personalities targeted are those achievers that are
ambitious and outgoing in their endeavors. The companys intentions are to raise the
interest of people who are willing to use sustainable technology for everyday use. The
product will provide a convenience benefit by having the option to use conventional
charging or the alternative of solar power charging. With the two previous options stated,
it can be concluded that the versatility and perceived value has the ability to gain mass
appeal of the market. The attitudes that SolarCell wants to encourage are positive,
sustainable, and enthusiastic solutions for all mobile users.

The Market

Market Needs
In todays world, cell phones play a major role in our everyday lives. Cell phones
are becoming more popular day by day as people become more dependent on technology.
The site How Stuff Works indicates that Cellphones are taking over the phone market,
while landlines are becoming obsolete. With everyone always being on his or her cell
phone, it calls for a more efficient charging mechanism. This is where our idea comes
into play; we are introducing the first cell phone with a solar panel on the front screen
and back panel. The front screen is one that you can see through, which will charge your
phone about 40% of the way and the back panel would be a full solar panel so that it
could get the full charge. This solar panel cell phone concept would help out a lot. With
everyone being on their phone from when they wake up till when they go to sleep they
can charge it wherever whenever they would like. With people always being on the go
whether it is from class to work to even traveling, their phones can be constantly
charging. This would take over the cell phone world once other technology companies
begin to see how effective solar panels are. This solar panel will be convenient and save
people money and time by eliminating the need to purchase multiple chargers.
As the cell phone market evolves and more consumers rely on texting and phone
applications, it is important to understand phone trends to maintain a competitive
advantage. Solar cell phones will allow brands to capitalize on the demand for portable,
10 SolarCell: Solar Powered Mobile Phones

hi-tech and easy to use communication technologies to pave the way for a faster and
more profitable future.

Market Trends
Market trends are something that catches everyones eyes; they are the beginning
of something new. Social factors are starting to change in todays world. People are
starting to become more advanced with technology. From every generation, people are
starting to catch on to the new and updated technology. Each generation is adapting to
this change and it is becoming the norm to constantly be connected through social
networking, email, and even video conferencing. According to Transaction World, as the
cell phone market increases, more consumers rely on texting and phone applications. Our
society is constantly looking for fast and efficient ways to communicate. Discounted
smartphone devices and affordable wireless plans have made ownership of some kind of
mobile phone a near necessity. Once one person sees another use something new, it stirs
the curiosity and influences others to do research and even make a purchase.
According to Solar Energy for Homes, Cellphones account for a large portion of
the huge increase in electricity consumption that has occurred in the last decade. A solar
mobile phone will help slow down the increase. With people becoming more green and
aware of their impact on the environment, this solar device will be a major improvement
in the cellphone market. As consumers become responsible for the environment they are
seeking out new methods and ideas to power their electronics and that includes the
ultimate must have gadget, the solar cell phone.

Market Growth
Market growth is an increase in the demand for a certain product over time. This
is a process that can take off slowly or can catch on very fast. We believe that this solar
charger market will grow and take off at a fast pace. Since the cell phone industry is one
of the fastest growing in the world. According to the newest data issued by Chetan
Sharma Consulting, the global mobile industry is now the most vibrant and fastest
growing industry on the planet. Smartphones demand is increasing because they are
simple to use, affordable to some people, and save time. The major complaint from
11 SolarCell: Solar Powered Mobile Phones

consumers is how quickly the battery drains from a days usage, which is exactly why
this solar panel cell phone will work well. The product will need to be pitched to all of
the major cellphone companies, as well as keeping the consumers well informed of this
new technology. First thing we should do to promote the product is showing how it works
inside and out, displaying each detailed aspect of the product. Once the product is
promoted enough, it could be something that begins to take over the cell phone world.
This is what everyone has been waiting for. Solar cell phones have the ability to
completely revolutionize the way we communicate with each other worldwide.

SWOT Analysis

Product easy to use Not yet profitable (raw materials are


Eco-friendly expensive)
Easy to carry (included in your phone) Need to achieve economies of scale
Easy to make work (solar beams) No product awareness yet
Allow customers to save money (less Fragile
electricity to pay)
Long-term customer relationship
Long lifespan (30 years) S W
ANALYSIS
O T

Fierce competition due to this current


trend
Current green/sustainable trend Discovery of a better alternative to solar
The environment concerns people panels
Demand for electricity will increase If phone manufacturer do not want to
collaborate
People have to realize that solar panels
work without sun

Figure 2
The current opportunities regarding the growing environment awareness led us to
create a product with lots of strengths in order to create a competitive advantage. Thus
our product is easy to use, easy to understand, and easy to carry among others. But there
12 SolarCell: Solar Powered Mobile Phones

are also weaknesses that we have to think about and that we have to tackle as soon as
possible. We also have to be careful about external threats, the biggest one comes from
the competition because given the fact that our product is innovative (and will be
profitable soon), and other companies are likely to produce similar products in near
future.

Competition

We can find many competitors in the current market due to the trendy expansion
of sustainable energies. But we cannot find a company that offers exactly the same
product as the one we are marketing. The following companies are companies that offer
product with the same goal but with another overall shape.
Everbright Solar Inc. is an American high-quality solar panels manufacturer.
Panels are made in the U.S., which is a big advantage for this company. Indeed, in
peoples mind, a product made in their country automatically means a good-quality
product. Most of the components come from the U.S. and final assembly lines are based
in Fremont (California). They sell their products mainly online through their website and
take part in some exhibitions. They have different types of solar panels for different uses
but the one that competes with our product is a miniature solar panel with two jack plugs.
The voltage is nevertheless low (1V to 3V), panels are very small and prices as well
($18). This company is successful mainly thanks to solar panels for houses. Another
strong point is the customable size of their solar panels given the need of the customers.
They have over 20,000 customers since 2004. They try to build long-term relationship
with their customers by offering a good return policy; customers can return back your
solar panel two weeks after reception. Everbright Solar Inc. is our main competitor.

Earthtechproducts is another competitor. They only sell online. They also offer
different sizes of solar panels with different voltages. The competing product is a full
equipment (12V) to charge any electronic devices with solar technology. The solar
panels shape looks like a flip phone with solar cells on each side. That way, solar cells
are protected when the flip is closed. A good point for this product is that lots of charging
13 SolarCell: Solar Powered Mobile Phones

tips are included for the latest phone brand and a rugged and durable travel case as well.
They offer five different colors for the case. They also ship for free and worldwide. The
main problem with this product is the price: $199. People are more concerned by the
environment but are they also still have some financial issues due to struggling economy.

EnerPlex is a company that has two main products: portable solar panels and solar
panels included in phone cases. They sell online but they also have a main retailer: Frys.
Solar panels included are 5V. The phone case is an innovative product that should work
well; maybe the price can be an obstacle, $70. The technology used is very good because
given features. This phone case is hardly bigger than other regular phone cases. Those
phone cases are only available for iPhones and Samsung Galaxy SIII. This is a good
product because it fulfills two different customers needs: the need to have your phone
protected and the need to always have enough charge to still use your phone.

The Product: A Solar Powered Mobile Phone

Product Offering
The target of our product is so to have a way of charging our phone without using
an electric regular plug. So we are using the in-technology of solar panels. We want to
include solar panel on the back of a cellphone. But it is not something we add in the back
of a cellphone; the solar panel will be part of the phone. The sunbeams will get in touch
with the solar cells of the solar panels and the energy produced will be converting into
electricity in order to charge the phone.
The solar cells have to be very thin and light. The size (length and width) will
depend on which phone the customer uses. Indeed, every phone on the market do not
have the same back size, that is why we want to make different sizes of solar panel (large
product line) to fit phones. From the beginning, we will start with most popular phones,
like iPhones or Samsung ones.
How does a solar panel work? There are two types of solar panels and the type we
are using is the photovoltaic. The principle is simple; the solar cell has two layers of
silicon. The layer that will be in touch with solar beams is a mix of silicon and
14 SolarCell: Solar Powered Mobile Phones

phosphorous, and given the fact that phosphorous contains more electrons than silicon
has, this layer is charged negatively. The layer non in touch with sunbeams is a mix of
silicon and boron and given the fact that boron has more protons than silicon has, this
layer is positively charged. Solar beams contain photons and when a photon gets in touch
with the negatively charged layer of silicon the energy produced causes the break
between an electron and an atom of silicon. Positive atoms will so automatically go to the
other layer (the positively charged one) and the negative ones will automatically go to the
layer negatively charged. An electric potential difference followsthis is electricity.

We can also find different types of photovoltaic cells:


The single crystalline ones that have a good yield (from 15% to 22%) but cost a
lot.
The polycrystalline ones which have less efficient yield (from 10% to 15%) but
cost less.
The amorphous ones, cost and yield (from 5% to 10%) are low.

A yield of 10% means that if 1000W from sun beans touches the cells, 100W of
electricity is produced.
For our product we are using the amorphous ones because we dont need a very
good yield and for economic reason as well. Indeed, the charger of a cellphone only
requires 5 watts when charging. After trying different yield of solar cells we found out
that the best choice is to take a panel of 6V. To justify our choice we are going to use a
physics formula: P=V*I with P power in watts, V voltage in volts, and I intensity (or
current) in amperes. So when the solar irradiation is maximum (that means 1000W/m =
10A), the yield would be P=6*10=60W (6%). Using a 6V cells means that even if the
solar radiation is minimum you can charge your phone anyway. Given the fact that we
only need 5W we have to put a small resistance in the circuit to avoid issues in the
electric circuit.

The product will be first made in China because of lower costs, especially labor
cost. Once profitable, the product will be made in the United - States. In order to create
long-relationship with customers we are offering a warranty of two years. A two-year
15 SolarCell: Solar Powered Mobile Phones

warranty seems to be the best because according to a MobileFutures research, people


change their phones on average every two years. The target is to make customers
confident about our product.

Keys to Success
Cell phones account for a large portion of the huge increase in electricity
consumption that has occurred in the last decade. Solar mobile phones can help to slow
this increase. This technology has the ability to completely change the way people in
these developing countries communicate with one another. These developments will
further increase the global cell phone usage, and make cell phones even more accessible
to poorer people all around the world. In fact, the majority of solar phones that have been
developed have been marketed almost solely in places like Asia, Africa, and Latin
America. In the past few years, the majority of the worlds leading cell phone
manufacturers have developed and launched solar powered mobile phones in India. The
erratic power supply in many places in India, especially in rural areas, has led to this
country being one of the major testing grounds for new solar phones. With proper
positioning and pricing, solar-powered cellphones could reach about two billion people
across the globe that has no access to electricity. A key appeal of solar-powered cell
phones is the growing consumer demand for environmentally sustainable mobile phone
devices. Annual sales of greener phones could grow to 105 million handsets by 2014.
Also, solar power is an infinite resource. Solar power will continue to advance in
efficiency and effectiveness; therefore it is worth the investment because it will continue
to improve over time.

Critical Issues
Cell phone manufacturing to each particular cell phone type could be a potential
problem because it would be difficult for every specific phone to adapt to the solar panel
installation. In order for this to be a success for all types of cellular devices, we would
need to work closely with cell phone manufactures so that it can be available to everyone.
Also, deciding where to place the solar panel on the either side of the phone presents a
problem. Placing solar cells on the front of the phone is difficult because today phone
fronts are virtually display. In order to make this work, the solar cells themselves must be
16 SolarCell: Solar Powered Mobile Phones

produced by transparent material that only absorbs infrared and ultraviolet light. By
placing the solar cells on the back of the phone, people would be inclined to put their
phones face down, which can lead to missing important alerts, or potentially harm or
scratch the screen.

Marketing Strategy
Value Proposition

Creating a strong value proposition means to be better than competitors and as a


consequence being more successful. The SolarCell is a very innovative product that will
deliver values for customers. The product is convenient, easy to use, and it meets a lack
in the current market. Indeed, it will make the life of our customers easier by not having
to worry about their cellphones battery.

Mission

SolarCell aims to develop smartphones that recharge themselves powered by solar


and artificial light.

Marketing Objectives

In our marketing plan we would set out to achieve a solar cell phone that no one
has made yet. We are looking to create something that will catch the eyes of everyone
around us. For this to happen we will need to promote our product and get it out there for
everyone to see. It is important to inform and display that it is an environmental friendly
product, recyclable, reusable, and has a convenience charging method. By doing all of
this it would show all potential customers how great of a product it is. First things first,
by having a unique product that is the only one around we would have to start out at a
higher price than average until we get a competitor to join the market. This is a product
that could top the charts in the cell phone market. Everyone now a day is trying to go
green and by eliminating chargers its not just going green but its also saving a lot of
hassle on people. Say if your stuck somewhere with no outlets to charge you just turn on
17 SolarCell: Solar Powered Mobile Phones

your solar panel and get an instant charge. This solar panel will save energy so that when
its time to be used you have it.

Financial Objectives
We would like to reach the break-even point within the first year of activity. In
order to do so, our company must sell 1,304 units at a price of $268 each. The revenue
that needs to be achieved to break-even is $349, 460. Given our analysis of the break-
even point (see graph below), we must generate profits after selling 1,304 products.

Target Markets

We are introducing a solar powered cell phone called SolarCell. We are


targeting it to the ages of 16 to 40 years old. In this market it puts it in a wide range
because the younger generation is trying to keep up with the modern technologies. Think
about it, most of all things that come out we want but we only get a handful of them. We
are trying to attract a wide range of people but without making this product something
special and at a low price then there is no market for us. That is why we made a phone
that no one else has made yet. This cell phone is powered by mini solar panels that will
charge your phone for you without even plugging it in. This is something that not only
younger generations would be interested in; it is something that everyone would be
interested in. We chose this product because it is something that we ourselves are
interested in. If this product took off at the right time or even if other companies such as
Apple and Blackberry started to use it there would be a ton of profit on both ends.

Positioning

The goal of proper product positioning in any market is to keep the product on top
of your customers mind when theyre considering a purchase. To be successful in proper
product positioning one must achieve three objectives:

Differentiate
Your product from the competitions
Address
18 SolarCell: Solar Powered Mobile Phones

Important customer buying criteria


Articulate
Key product (or company) characteristics

Extensive research of the competition is crucial in determining where the product


stands and how the message is directed towards the market. Failure to proactively address
product positioning is unlikely to end well. With or without proper input, customers will
position the product probably based on information from the competitors, which will not
flatter the least bit.
SolarCell has strongly set the bar on innovation with the implication of solar
technology that is integrated into the phones hardware. The company understands the
issues regarding sustainability, which is why it has brought a product that is useful on the
go and is able to bring alternative power to the table. The figure below shows a list of the
competition and where they stand with theyre products as compared to SolarCells.
SolarCell has made it clear that they want functionality as well as ingenious design when
it comes to the product.

SolarCell Samsung Crest Sharp Solar


Hybrid

Phone
Image

Charges Yes No(back only) No(Flip front


from only)
Front and
Back
Visually Yes No Yes
Appealing
Charge 10 minutes of extra talk 5 minutes of extra 2 minutes of extra
Time time. talk time talk time
(Per 30
minute
charge)
Price $268 $60 $179
19 SolarCell: Solar Powered Mobile Phones

Water No No Yes
Proof

Figure 3

Each product has its advantages and disadvantages. For instance, Samsung and
Sharp Solar can only charge through either the front or the back of the device. As far as
visual design appeal Sharp and SolarCell have established some fashion appeal unlike the
Samsung Crest. Charge time per 30 minutes is where SolarCell wins hands down, due to
the fact it can provide the user a total of 10 minutes of extra talk time as compared to its
competitors. Pricing of the product was determined based off the fact of extra talk time
abilities, versatility of charging, and design. Crest on the other hand was initially geared
toward the economical shopper in mind since the price was made much lower of the two.
Overall, the advantages of SolarCells position has led the company to believe that it is a
key competitor in the market and has the potential to be a leader in the solar mobile
phone movement.

Strategies

The marketing strategy of SolarCell is focused on the ease of the final consumers
buying process. The first target market consists of people aged 20-35 with mid-to-high
incomes and an interest to try new innovations. This group is interested in the
contributing to the green energy movement. Since this product offers solar power to
charge a cell phone, this will eliminate the use of chargers and the risk of a dead phone. It
will create a great convenience to everyday cell phone users that will no longer have to
worry about carrying a charger and the security of having a complete battery life all the
time. The target market could potentially broaden across the globe to underdeveloped
areas such as millions of people in Africa and Asia, with no connection to electricity
grids or unreliable and expensive power access. These little solar-powered gadgets are
proving to be revolutionary and will provide the future of cell phones to the billions of
people with no access to electricity at all.

Marketing Mix
20 SolarCell: Solar Powered Mobile Phones

Pricing: Our company choose to use the cost-based pricing strategy that consists of first
designing the product, then determining the costs, and finally setting the price based on
costs. After understanding the different costs that will apply to our product, and in order
to achieve a markup of 10%, the price of our product will be of $268 for the first year.
The unit price will decrease because the variable costs will decrease. Indeed, the turnover
of technology products including cellphones is fast, so we can forecast a decrease in the
cellphones we buy originally. Our price for the second year will be $202. Finally for the
third year of activity, still because of the fast turnover, new cellphones will be released
and the price is likely to be higher so our variable costs will increase and so our price of
$324.
Distribution: We decided not to make the product ourselves but to subcontract to
another company. This company will make the solar panels in a country where sales
force is cheap. The solar panels will then be sent to cellphones brand in order for their
employees to install the solar panel on the back of the phone. We decided to do so
because in their workshop they have the material required to this task.
We will distribute our product through our website. We decided not to open a store, or a
physical area to display the product in order to avoid extra costs that will automatically
increase the final price

Channel distribution

Figure 4

Communication
In order to avoid extra charges from rent and utilities, well only sell our product
through our website. In consequence a big part of our marketing communication will be
21 SolarCell: Solar Powered Mobile Phones

done through the Internet. Well have two objectives: being present on social media, such
as Facebook (our first targeting social media) and also being on the first page of google
research. That will have a certain cost.
Well also participate in different event to promote our innovative product. After
deep research, we found very interesting forum and event taking place in the San
Francisco area, that can help us raising the brand awareness. Indeed, there are multiple
forum concerning high-tech products or innovative products. Those forums will help us
being known and therefore raising our sales. In order to inform and keep attention of
people attending those forums, printed ads will be available. The print ads will supply all
the information needed for the customers such as how it works, the multiple benefits
offered, the warranty, the price, and also information about our company (contacts for
example).

Marketing Research

SolarCells research discovered that out of 50 the participants surveyed, 33 would


be inclined to buy a mobile device that would receive a supplemental charge of solar
power. Of those 50 participants, 14 would be somewhat interested in the product and
remaining three would not. The below figure shows each participant rated from very
likely to not likely. In addition we have calculated the percentage of desirability by
dividing the total number of people by the final score. This calculation is able to show us
an overall percentage of the surveyors that placed an interest in a solar power alternative.
This is most likely due to the fact that the majority of the group places a high-perceived
value on sustainability.

Inclination to Purchase Solar Powered Device

Very Likely Somewhat Likely Not Likely


22 SolarCell: Solar Powered Mobile Phones

33 14 3

66% 28% .06%

Figure 5
Out of the people surveyed SolarCell has concluded that the majority of the target
market would be inclined to purchase the product. Out of the 50 people surveyed, 66%
were able to see the use of the product and would most likely make the purchase. This
would lead SolarCell to a higher rate of success towards buying than a person who is
unlikely at .06%. The participants who were somewhat likely have the potential to be
persuaded since they display signs of interest. In this case it can be for the better since
there was an initial display of interest yet need to be persuaded by added value.
A portion of the survey was designed to determine the amount of sun exposure
each participant was exposed to. In addition we were able to tally how many hours a day
their mobile devices lasted on a single charge. The figure below is a representation of the
battery life till next charge and sun exposure per day in hours. What this chart shows is
that a majority of mobile electronic users are in direct sunlight most of the day. With that
much exposure it would add to the life of the battery and further use of the device for a
longer period of time. This would set an advantage over the competition by adding value
since it is versatile in all area of everyday life.

Battery Life till Next Charge

2-5 hours 6-10 hours 10-15 hours

16 28 6
Sun Exposure in Hours Per Day
23 SolarCell: Solar Powered Mobile Phones

1-3 hours 3-6 hours 6-9 hours Sun up to


Sun Down

12 20 18 0
Figure 6

Financials
Break-even Analysis

The break-even point is when the company doesnt make any profits.
First we had to determine our costs, variable ones and fixed ones.

Variable costs per unit


Cellphone price $ 200.00 Fixed costs per year
Solar panel manufacturing $ 10.00 Wages (2) $ 62,500.00
Solar panel raw materials $ 2.00 Marketing expenses $ 10,000.00
Wages of people installing $ 0.40

The first tab is what the second one is based on.

total fixed
Time units start units increment unit price unit variable cost
costs
Quarter 0 150 $ 268.00 $ 212.40 $ 72,500.00

Units Sales Variable costs CM Total costs Net income


0 $ - $ - $ - $ 72,500 $ (72,500.00)
150 $ 40,200 $ 31,860 $ 8,340 $ 104,360 $ (64,160.00)
300 $ 80,400 $ 63,720 $ 16,680 $ 136,220 $ (55,820.00)
450 $ 120,600 $ 95,580 $ 25,020 $ 168,080 $ (47,480.00)
600 $ 160,800 $ 127,440 $ 33,360 $ 199,940 $ (39,140.00)
750 $ 201,000 $ 159,300 $ 41,700 $ 231,800 $ (30,800.00)
900 $ 241,200 $ 191,160 $ 50,040 $ 263,660 $ (22,460.00)
1050 $ 281,400 $ 223,020 $ 58,380 $ 295,520 $ (14,120.00)
1200 $ 321,600 $ 254,880 $ 66,720 $ 327,380 $ (5,780.00)
1350 $ 361,800 $ 286,740 $ 75,060 $ 359,240 $ 2,560
1500 $ 402,000 $ 318,600 $ 83,400 $ 391,100 $ 10,900
1650 $ 442,200 $ 350,460 $ 91,740 $ 422,960 $ 19,240
1800 $ 482,400 $ 382,320 $ 100,080 $ 454,820 $ 27,580
24 SolarCell: Solar Powered Mobile Phones

1950 $ 522,600 $ 414,180 $ 108,420 $ 486,680 $ 35,920


2100 $ 562,800 $ 446,040 $ 116,760 $ 518,540 $ 44,260

Table 1

So finally, we get this break-even graph

Breack-even graph
$600,000
$500,000
$400,000
Sales
$300,000
Fixed costs
$200,000
Total costs
$100,000 Break-even
$0
0 500 1000 1500 2000
Units sold

Break-even units 1304


Break-even revenue $ 349,460

Sales Forecast
For the first year, we plan to sell ten units per day. For the second year, as the
price will be lower, more customers will be attracted to our product. Furthermore, our
brand awareness will be also higher resulting in more sales. So we plan to sell 15 units a
day.
For the third year, we plan to sell ten units a day again. Indeed, the price
sensitivity is high and given that our price will be higher, fewer people are expected to
buy the SolarCell.

Years Quarters Beginning Units sold Revenue


25 SolarCell: Solar Powered Mobile Phones

1st year 1st quarter July 1, 2014 657 $ 176,114.29


nd
2 quarter October 1, 2014 657 $ 176,114.29
rd
3 quarter January 1, 2015 643 $ 172,285.71
4th quarter April 1, 2015 650 $ 174,200.00
2nd year July 1, 2015 3921 $ 792,128.57
3rd year July 1, 2016 2607 $ 844,714.29

Table 2

Expense Forecast

Our marketing expenses are only fixed costs. So this is our expected marketing expense.

Google ad cost $ 4,500.00


Social media cost $ 4,500.00
Forums/Events $ -
Print ads $ 1,000.00
Wage (1 person) $ 31,250.00

Total per year $ 41,250.00


Total per quarter $ 10,312.50
Table 3

Controls

Controls are what we measure to discover the success of our product. We have to
sell the phones in a fashionable and reasonable way. Once the phone starts getting its
name out there then the product will be on the up rise. After you get phone sold then you
have to focus strongly on the accessories that will work for it. Once everything starting
going in the right direction then thats when our customers will be satisfied. Passing out
surveys to the customers will give a rating of what we need to improve on if needed.
These surveys would include overall customer satisfaction, agreement that the phones are
user friendly, good for the environment and cost friendly. In the end it would still need to
be promoted to top other retailers. It would need to be advertised everywhere for
everyone to see.

Implementation
26 SolarCell: Solar Powered Mobile Phones

Marketing activities play a major role in the companys magnitude of success.


Strategic planning and timely implementation need to occur in order to properly manage
the release of the solar cell. Change is what will help improve the company or fix
anything that is going on. This can occur to anything within the company. Development
is organizational, and its something we keep all employees close on. You have to share
information with them so that they feel in with everything going on. Having all these
priorities helps with everything in the company like due dates, financial data, and as well
as the workers needs. This helps the company to move forward.
First would be source out and brainstorm the products needed to make the
product. When that is complete you start looking for your loyal employees. The process
takes of after your first few steps. Youre always thinking of new ideas for everything in
the company. We will need to branch out and find another company to make the panels
for the phone. After we get them up and running we need to make a website for use to
sell the product on. These are two of the major process for the company.

Marketing Organization
Our company is composed of two people that are working closely together. Our
company is not pretending to be a multinational firm with lots of employees, this is more
a friend-run company. Two good friends set up this project, one is dealing with the
marketing part and the other is dealing with the financial part. Both of them are
responsible for finding customers.

Contingency Planning

SolarCell could possibly be faced with uncontrollable factors that could possibly
harm the outcome of the product. One possible factor could be technology changes. This
rapid technological development is not something that should be a surprise to anyone. We
consistently see new technology come out with a better version right on its tail.
Consumers shouldnt expect technologies to last very long in todays constantly
advancing environment. Also, cultural changes could arise and effect the way
consumers views our product. Current trends could change the way the consumers taste
27 SolarCell: Solar Powered Mobile Phones

in the model of cell phones. And furthermore, natural resources or materials could pose a
threat to the success of the company as well. With sunlight being a natural resource, it is
limited to the locations in which it is present. It could occur in small sporadic areas and it
is vital to the phone that it receives the right amount of sunlight in order to work
successfully.

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28 SolarCell: Solar Powered Mobile Phones

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