Marketing Plan

OtterBox 2020

"OtterBox zozo,

We've got your vision covered."

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OtterBox 2020

Table of Contents

Executive Summary. .....-............3 Current Market Situation.. ....... 5 SWOT Analysis.... .........7 Demographics and Psychographics......... ... ......... 9

Age

Ethnicity

Gonder

Profession

Education

Income

Lifesfyle & Hobbies

Trends

Status Soeking

Phone Usage

OurCustomerProfile... ........... 15 Unique Selling Point....... .....17 S.M.A.R.T Objectives. .......... 18 G.antt Chart/Budget..... ....:.:. ................ 19 AetionPlan.... ..............20

Selling Activities

Media Advertising Activities

Print Advertisement

Online Advertisement

Promotional Activities a Resources Consulted.. ...........25

OtterBox 2020

Executive Summary

In the phone case industry, there ire many phone cases that claim to be protective and

functional. However, there is one area in which these protective and functional phone cases are

lacking: vision. To satisfu this greatly unsatisfied consumer need, the Otterbox 2020 phone case

enters the market. The Otterbox2D2D does not only provide smartphones with the same

protective features and functionality as any other Otterbox model, but also offers a flip-over

screen that comes in a wide range of general prescription lenses. The Otterbox2020 also comes

in a variety of trendy pafferns, colors, and designs. Essentially, the Otterbox2020 phone case

looks good, while providing advanced protection and advanced functionality to those with

imperfect vision and who want to read text on their smartphones with ease.

Entering into the phone case market under the Otterbox brand and name provides the

Otterbox 2020 model with many strengths and opporhrnities. Namely, strong brand recognition,

a good portion of the market share, and the competitive advantage of being the first and only

phone case of its kind. This competitive advantage provides the Otterbox 2020 with its unique

selling point, which is that it has best adalted to the needs of low vision users, so they that may

conveniently and easily read text on their smartphone whilst having a stylish and protective

cover to prevent any cornmon potential damage.

Otterbox 2l2}'stargetmarket is woman between the ages of 45-55 who are experiencing

the low vision that comes with aging. They are Generation X, well educatbd, above average

income, and family oriented consumers. ihis niche targetmarket has been identified as including

consumers who are most willing and able to purchase, make use of, and spread the word about

the Otterbox2020 phone case.

OtterBox 2020

The Otterbox 2020 will be distributed in the Los Angeles county during the first fiscal

year at a mix of big box retailers and cell phone retailers. Otterbox 2020 phone cases will be in

Target Walmart, Costco, and Best Buy. The cell phone retailers will include Sprint" Verizon,

AT&T, and T-mobile- Test expansion to surrounding counties will occur in year one, and in the

coming years the product will be rolled out nationwide. Advertising will be done through print

and online strategies to reach the target markgt. Print advertisements will include holiday

advertisements in Walmart and Target as well as Black Friday coupons. Online advertising will

be done through Amazon display ads, Google ads, and Facebook ads.

OtterBox 2020

Current Market Situation

Otter Products LLC, more commonly known as the OtterBox company, is the leading

manufacturer and designer of the electronics accessory industry. The products are highly trusted

by consumers because of their drop proof, waterproof, and shockproof features. According to a

recent study conducted by The Statistics Portal, about 80% of smartphone users use protective

phone cases, andthe other20Yo do notuse any phone cases. ,

Do you use a protective case for your smartphone?

Below Statistics show number of reasons behind why those 20Yo strvey participants

chose not to use a phone case.

Ir ir

OfferBox 2020

Reasons For Not Using a Smartphone Case

a iPhone owners aAnd6;d own€rs

Cses add too rnuch bulk to the phone

I ilke the look/deslgn of my phone without a cur 24!a

l'm not worr'€d about dropping/damagiag my phone

CEses afe too exp€nsivr

Source: The NPD Group/Smartphone Case Segmentation Study

In addition to the aforementioned study, a research conducted by The NPD Group

showed that about 87% of iPhone users prefer a strong and protective case, while only 66Yo of

Android users feel the need to use a protective case for their phone. This result helps the

OtterBox company to narrow down target audience for the new product, OtterBox 2020,to

iPhone users who fit our customer profile. OtterBox 2020 isa flip phone case which has an

optical glass over the screen to correct nEsbyopia, a common aging phenomenon of

deteriorating eyesight. Currently, there is no existing product in the market that resolve the

inconvenience of needing reading glasses while using smartphones.

OtterBox 2020

SWOT Analysis

Strengths

o OtterBox already has a strong brand image and strong brand recognition within the phone

case industry. This gives OtterBox competitive brand equity.

Otterbox has a market share of 28% in the phone case industry.

The OtterBox2020 is a new and innovative phone case that does not currently have any

comparable competitors in the market. It focuses on a specific target market that can

utilize and enjoy the unique product on a daily basis.

OtterBox 2020 is a multipurpose phone case that not only provides the same protection as

other OfferBox phone case models, but also provides users with deteriorating vision to

easily and conveniently read their smartphones. Additionally, the optical screen can be

used a magniffing glass to quickly read other items like restaurant menus, newspapers,

magazines, and brochures.

The OtterBox 2020 provides an added convenience to the typical protective phone case.

Consumers who purchase the the btterBox 2020 willno longer have to take out their

reading glasses to see on their smartphones. The phone case will not only provide

protection from falls and scratches, but will also allow an easier smartphone experience.

OfferBox also provides a warranty on all "OtterBox products against defects in material

or workmanship for a period of one year from the original date of ilurchase of the product

by a consumer." Therefo.", "onrion"rs

have up to a year to ensufe that their product is in

good working condition and functions properly.

OtterBox 2020

Weaknesses

o Currently, OtterBox mainly focuses marketing efforts on men. This is shown through the

use of Peyton Manning, a famous NFL football player, as a spokesperson. OtterBox TV

and social media commercials involve Peyton Manning and the OtterBox mascot in

outdoor camping seffings. This does not appeal to OtterBox 2020's target market of

45-55 year old women.

o The optical glass cover of the OfferBox 2020 phone case could more easily break than

other screen protectors, rendering the feature useless. If this damage occurs during the

one year warranty, OtterBox could potentially be replacing a large volume of these phone

cases and incurring losses.

Opportunities

o Generation X (bom in 1965 to 1984) adapts to technology well and spends a si$nificant

amount of time on smartphones. Therefore, they will require accessories to go along with

their smartphone, including protective phone cases.

o There is currently no other protecfrve phone case that offers an optical glass cover.

OtterBox can patent this new phone case to initially prevent competitors from creating

the same type of phone case.

Threats

o With technology being more advanced than ever, more people are open to having

eyesight improvement surgeryuih u, intracor laser eye surgery.

o This type of phone case could possibly be replicated by competitors at a cheaper price

and distributed faster nationally.

Age

OfferBox 2020

Demographics & Psychographics

When reaching the age of 40, adults start having problems seeing clearly at a close

distance as the lens of the eye begins to get stiff and less able to focus. The eye's focusing ability

deteriorates as we progress in age. Presbyopia, the most common aging phenomenon between

ages 40 to 60, is not preventable but can be eorrected by wearing reading glasses, contacts, or

refractive surgery.

More than 2.9 million Americans age 40 and older have low vision. Low vision is

defined as best-corrected visual acurty worse than20l40, excluding those who are legally blind.

Nearly 4.2 million Americans age 40 and older are visually impaired, meaning they have

best-corrected visual acuity worse than20140 in their better-seeing eye. This number includes

both those with low vision and those who are legally blind. In2012, abott6IYo of the population

reported to wear glasses, contact lenses, or other reading or visual aids. This percentage steadily

rises each year. The use of visual aids grows rapidly as people get older, with the majority of

people in their forties always o. o""uriorlily wear glasses or contact lenses. The rate for people

in their fifties is more than90Yo and nearly all over-75s wear glasses.5TVo of people wear

glasses as opposed to the l2Yothatwear contacts and the9Yo that wear both.25Yo of contact lens

wearers are ages 45 and older. 54Vo of people who wear glasses use them more or less on a

full-time basis.

Because of this affliction, OtterBox 2020 istargeting consumers in the 45-55 age range.

Focus will be on the younger side of the age range because those consumers are more likely to be

regular users of smartphones, as opposed to those over age 55.

OtterBox 2020

l0

Ethnicity

Certain types of visual disturbances affect some races more frequently. Asian Americans

are more likely to be farsighted than Caucasians or African Americans. African Americans have

the lowest incidence of farsightedness. Eye problems, including the need for glasses, can also be

genetic and run in the family.

Gender

'Women's Eye Health Task Force reports that nearly two-thirds of all visually impaired

and blind people in the world are women. Generally, more women than men wear glasses or

contact lenses. Women are twice as likely to wear contact lenses than men are, and about

two-thirds of contact lens wearers are female. About 65% of women 18 and older wear

prescription glasses or contact lenses, compared to the 54Yo of men who do. Among the 35-49

year age bracket, there's a significantly higher proportion of women wearing glasses or contacts

than men.

Profession

OtterBox 2020 istargeting *o.kefr in the knowledge economy, since they are more

likely to have high income and be frequent users of smartphones.

o Historians - They research, analyze, interpre! and present the past by studying historical

documents and source.

o Librarian - Avid researchers who know how to leverage the many resources and

ref-erence materials that libraries have to oflbr.

o Editors - They plan, coordinate, or edit content of material for publication - and may

also review proposals and drafts for possible publication.

OtterBox 2020

11

o Lawyers - They represent clients in criminal and civil litigation and other legal

proceedings, draw up legal documents, or manage or advise clients on legal transactions.

They may specialize in a single area or may practice broadly in many areas of law.

o Translators - Translators convert written material from one language to another, doing

their best to ensure that the true intent ofthe original author carries over.

o Writers/bloggers - This group uses online platfoln extensively for journal writing and

information sharing.

o Doctors

o Researchers, Professors, Teachers, Educators

o Accountants and Finance professionals

o Salespeople - Spend much of their time travelling and on-the-go. This group relies on

their phones to stay constantly connected.

Education

The target market includes those in the college-educated population. Typically, coltege

graduates have higher-paying jobs anO ar;'fo"rsed more in the knowledge ecortomy rather than

in blue collar positions. Inthe 2015 census, neady I in 3 adults had a bachelor's degree or

higher. The difference between men (34Yo) and women (33%) degree attainment was negligible.

It can be predicted that professionals with degrees higher than a Bachelor's are more likely to

purchase an OfierBox 2020 product- 1.2%o of respondents in the 2015 census reported having

advanced degrees, which allows for a good portion of the population to target.

Income

OtterBox 2020

t2

Because the college-educated population is being targeted, the income of the target

market will be higher than the US average.ln2017, the average income of someone with a

Bachelor's degree was $59,124 per year or $1,137 per week. This is in contrast to the

high-school educated population making an average of $35,256 per year. The more specific

niche of advanced degree holders makes significantly higher than their bachelor's holding

counterparts. The average for someone with.a master's degree is $69,732 per year, and the

average for someone with a Doctorate is $84,396 per year. Entering into more metropolitan areas

first, these income numbers will most likely go up, since those in bigger cities generally make

more money due to the higher cost of living.

Lifestyle & Hobbies

Many consumers in the target market have jobs five days a week and then spend the rest

of their time and their weekends with their families or doing other activities. Family is very

important to this target market, as most are mothers or have close relationships to their siblings

and relatives.

In the target market, consumers' ti5bbi", consist of group-oriented activities they can do

with their friends or families. Women in the target market are involved in book clubs where they

meet up once a week to discuss the book they are reading. They are now starting to use

technology based items such as smartphones, tablets, and e-readers to read their books on. The

use of smartphones or tablets is increasing in everyday activities.

These women are also switching iom in-store shopping to online shopping, mainly on

computers, smartphones, and tablets. They frequent online stores, such as Amazon.com,

Target.com, HSN.com, and QVC.com. Women in the target market enjoy the convenience of

OtterBox 2020

13

online shopping, but are still wary of not being able to physically try clothing on or test out a

product.

Trends

Generation X includes those who were born between 1965 and 1984 and are

approximately 35-55 years old. Generation X (66 million) is smaller in population than baby

boomers (75 million) and millennials, but research revealed that this generation has more

spending power than any other generation. Generation X currently makes more money than

millennials, but they also have major financial commitments, meaning that they are value-driven,

practical budgeters and investors.

Those in Generation X may have grown up without the Internet, but they have quickly

adopted a digital lifestyle with a high penetration of smartphone, tablet, computer, and

Intemet-connected TV usage. At least one in four Gen Xers claim to be the first among their

friends to try new technologies, making them early adopters and prime targets for new

technology and products. Those with college degrees are well educated, highty motivaGd, and

very aware of their surroundings. This leiiis them to be more open to accepting social change, as

they are continuously doing research to stay informed.

As the generation between baby boomers and millennials, Gen Xers respond to both

digital advertising and traditional advertising. They respond to online advertising, email

marketing, consumer reviews, and social media. However, traditiona[ media still plays a huge

role in the Generation X lifestyle, as 487o listen to the radio and 62Yostill read the newspaper.

Their purchasing decisions are most influenced by family or friend recommendations, TV ads,

emails, online reviews, and direct mail.

OtterBox 2020

t4

Generation X is the most highly-educated generation, as 35% of them have a college

degree. 55% of startup founders are also Gen Xers.

Status seeking

Status seeking adults rely on items that will elevate their social status and purchase items

that are sleek and elegant in design. Targeting status seeking adults can generate more interest in

a specific product by telling their friends of similar age about it. People will choose options with

higher perceived status. In addition, paying attention to how much an individual values status it

can help determine buying behavior. Status seekers will take into account how much something

will influence their social status.

Phone usage

Phone usage among the older generation has increased greatly. Older adults have started

to use smartphones and tablets more, despite being later adopters to new technologies. Mobile

devices have become a common way for many adults to obtain and read their news. There has

been an increased growth in this especially among Americans ages 50 and older. This has caused

arecent sarge of Z4Yoand has increased &e amount of older adults who use their smartphone.

Popular online and digital activities among Generation X include social networking

(Facebook, Twitter, and YouTube), banking, shopping, and driline gaming. 8l% of Gen X is on

Facebook and 5.9 million have Snapchat accounts. However, they engage with their online

personzn less for selfie-centered promotion and more to keep track of the world and reach their

Millennial kids (on Snapchat). :i

OtterBox 2020

l5

Customer Profile

Based on the demographics and psychographics gathered to identiry Otterbox 2020's

target market, a specific customer profile,rcan also be created. The ideal customer profile would

be a woman who is between 48 and 52years old, has a preference for mobile online shopping,

and likes to stay connected on her smartphone through news apps, social media networking apps,

and email apps. She is an educated, working woman who only has free time on the weekends, in

which she would prefer to spend that time with her family. This would include her children, most

likely between the ages of 13 to 23 years pld, that keep her up to date on the latest smartphone

trends and apps that they believe would be useful for her lifestyle. Her children would also keep

her aware of the trendiest and most functional smartphone accessories, like phone cases and

headphones.

Gender Female

Age 45-55 years old

Geographic Middle class suburban/metropolitan areas, family communities in LA countlz, family communities in other California counties eventually

Psychographic Hobbies: bqok clubs, online,shopping, group exercise classes

Interests: social medi4 latest accessory trends, staying up-to-date on news and cuffent events

Values: trendiness, quality, convenience, practicality

Customer Needs/Wants r A convenient and practical way to read text on smartphones

o A durable phone case that protects smartphones from daily use and falls

o A phone case that has different designs and patterns that appeal to a wide range of women

OtterBox 2020

t6

The ideal customer would either discover Otterbox 2020 phone cases through targeted

online ads, a Costco trial booth during her bi-weekly grocery shopping trip, or through her

children. As someone who participates in a book club, she would spread the word about her new

Otterbox 2020 phone case to her group of friends. The Otterbox 2020 phone cases would be

spread throughout the communrty bV word of mouth, with targeted online ads, print ads, and

television ads as reinforcements. The customer would enjoy being a trendsetter in her friend

group, as well as the overall convenience and protectiveness ofher new phone case. The upscale

price of the Otterbox 2020 phone case would not deter her or her friends from purchasing the

produc! as their incomes are above average due to their higher education. They also vdlue

trendiness, practicality, convenience, and qualrty when it comes to purchasing new products.

OtterBox 2020

t7

Unique Selling Point

. The product is adapting to the needs of users with low vision so users are able to read

their smartphone easily and conveniently.

o It provides an ego boost for users since taking out glasses at a restaurant or public setting

would not be necessary-

o The OtterBox 2020 has the unique feafure of an optimal glass over fhe screen to correct

Presbyopia.

o The product provides protection from scratches and falls while providing an easier

smartphone experience for those who have low vision.

o OtterBox is a reputable brand that consumers tmst which gives OtterBox competitive

brand equrty.

r The product is innovative, multipurpose phone case that currently does not have any

comparable competitors in the market.

OtterBox 2020

18

SMART Objectives

lncorporate at 5006 of Target,

Walmart, Costoo, and

Best Buy locations in Los Angreles County

lnoorporate et 30% of aell phone retail

outlets {Verizon, Sprint, T-mobile,

AT&T) in Los Angelos County

Expand to an additionalS0

retail(rutlets in Oranp,

Riverside, and San Diego counties

Achieve sales of $1.7 million in ihe Southern

Califomia Area

The SMART objectives for Otterbox 2020 are for the first fiscal year of operations.

Otterbox 2020's main goals include expanding into new areas to reach the target market in

Southern California. Entering into 50%o of Targets, Costcos, and Best Buys, as well as 30% of

cell phone retail outlets in the Los Angeles count5i will allow Otterbox 2020 to be more readily

available to consumers. Expanding into 5O additional retail outlets in the Orange, Riverside, and

San Diego counties will further Otterbox 2020's reach to consumers outside of the Los Angeles

county area that fit into the target market. Mainly, Otterbox 2020's goal is to reach as many

consumers in the target market as possible within the first fiscal year of operations. Becoming

available in outlets where these consumers shopmost frequently is necessary to have any

implemented advertising be effective. If Otterbox2020 enters the projected amount of locations

and sells the projected amount of units per store per month included in the first two SMART

objectives, then $1.7 million worth of sales in the Southem Californiaareawill be achievable by

the end of the first fiscal year of operations.

OtterBox 2020

t9

Gantt ChartlBudget

Otter8ox 2020 Project

Selling ActMUes

Media Adrsrtising Activilisg

Pmmotonal Aclivifies

Sahs Repe Expsnd cell pttons rotaihr p(o6ance

30 second crynmerciel on Televlsion

Got daeoment iil chrisfuna ade twalmart,

OtterBox 2020

20

Action Plan

Selling Activities

Since OtterBox2020 has the backing of it's brand, OfferBox, the time to market will be

significantly shorter than if the product were on its own. With five sales reps in the field

distributing this product to the stores they service, it is expected to be in enough stores to create

$3.46 million in year one. As stated in the SMART objectives, at the end of year one, this

product will be n 50% of Big Box stores and30o/o of cell phone retail locations in Los Angeles

County in the first year. This test market will allow visibility into buying patterns, timing, and

quantlty per store so that in year 2 sales projections can be more accurate. In addition, the

product will be distributed more widely geographically after year l.

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By selling to stores like Target and Best Buy, sales reps are able to save valuable time.

Big Box stores like these generally have regional buyers, meaning the reps do not have to go to

every store to try to sell. Since OtterBox already distributes to all of the locations listed, the

product can be integrated into regular shipments easily. The most time-consuming activity for

representatives will be visiting locations to ensure the shelves of product are presented nicely and

to put up displays.

IL Medio Advertising Activilies

OtterBox 2020

21

A. Print Advertisement

According to WebpageFX, the average cost to advertise nationally in a magazine is

$250,000 per ad, and the cost to advertise nationally in a newspaper is $113,000 per ad. Since

there is not public data on costs to advertise in Walmart or Target catalogues, it is estimated that

each southern california regional ad will cost $30,000. Since ads will be run for both Black

Friday and the Christmas season at each of our big retailers (Target, Walmart, Best Buy), the

total print advertisement expenditure will be $180,000.

B. Online Advertisement

An effective way to introduce a product to consumers is by targeting them through

Facebook, Amazon, and Google ads. Using this marketing tactic is an easy and effective way to

inform thousands of consumers about a product. OtterBox will use these three sources weekly to

introduce OtterBox 2020.

Facebook and Amazon ads allows the company to set their own personal audience,

budget, and starUend time, which can be edited at any time- The first step to creating these types

of ads is deciding who will see the adverthements. They can select oomale", "female", or "both"

as well as choosing an age, ranging from 13 to 65+ years old. Once the gender and age is

identified, the company can set a location (anywhere around the world) they would like their ad

to be seen. After the target audience is chosen, the business can then make their own personal

budget and set their duration time. The budget is the total amount the company wishes to spend

daily and relies on the number of clicks the ad recieves, meaning each time a person clicks on the

ad a percentage gets taken out of the set budget. This means if a business would like to spend a

OtterBox 2020

22

for 3 days the company would pay about $16 every daytotal of $50 for their ad and have it run

until the ad ends.

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The pictures shown is OtterBox's Facebook and Amazon advertisement for a new

product being introduced called OfferBox 2020.Tlte Facebook ads are targeting women between

the ages of 45 and 55 living in Los Angeles County. OtterBox has decided to spend a little over

$10,000 each on these two types of advertisements by the end of the year. For Facebook,

OtterBox will spend $200 every week an*-will be charged an average of $28.57 every day for

these ads. Running these ads weekly for the entire year guarantees it will reach 2,300 to 7,2OO

consumers daily. Facebook and Amazonads can help target consumers and bring in more sales.

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OfferBox 2020

23

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The photo presented above shows the Google advertisement for OtterBox2020. This type

of ad will help spread awireness about OtterBox's newest product OtterBox 2020. Ottetbox is

planning to pay $10,000 for one year for search network ads, which cost an average of $l to $2

per click. This means advertisements for OtterBox2020 will appear on the top of Google's

search engine when someone sedtches a term that is related to one of OtterBox's set keywords in

the advertisement.

III. Promotional Activities

OtterBoxplans to hold a demonstration center at select Costco stores in the Los Angeles

area during year l. Costco's trial stations are outsourced and run by companies such as Club

Demonstration Services (CDS). CDS does both food and non-food demonstration centers. A

positive side of these demos being outsomced is that it reduces the cost to get materials and set

up the booth. Effective June 2018, CDS charges $179 for 6.5 hours plus $8.50 for the company's

supplies. For one weekend this would bring the cost to $375. Our intent is to set up trial stations

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OtterBox2020 24

for mroweekenrl puiods at diffenent Costco looations ftroughout the selffitod months of Janury;

April, May, August Novemher, andDecembar.

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OtterBox 2020

25

Resources Consulted

Amazon.com: Frequently Asked Questions about Sponsored Products and Headline Search Ads.

(n.d.). Retrieved May 29,2018, from https://services.amilzon.com/advertising/faq.html

AT&T Locations in Los Angeles County. (n.d.).Retrieved May 22,2018, from

http ://www. city-data. com/locationsiATT/L os-Angeles-County-CA-4.html

Becket, X. (2017, September 06). The Cost of Advertising Nationally Broken Down by Medium.

Retrieved INday 29,2018, from

hfips://www.webpagefr.com/blog/business-advice/the-cost-of-advertising-nationally-bro

ken-down-by-medium/

Buying Facebook ads. (n.d.). Retrieved May 29,2018, from

https : //www. facebook. com/business/learn/how-much-facebook-ads-cost

Costco Locations in Los Angeles County. (n.d.).Retrieved May 22,2018, from

http://www.city-data.com/locations/Costco/Los-Angeles-County-CA-2.html

Find a Sprint location near you. (n.d.). Retrieved May 22,2018, from

https ://storelocator.sprint.com/bchor/

Hanbury, M. (2018; March 24). People are obsessed with Costco's free samples - but it's actually

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