marketing

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Jim Gerwitz

Katelyn Dennee

Anthony Siracuse

Peter Gebura

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Table of Contents

Page

1. Executive Summary ………………………………………………………………. 3

2. Company Description …………………………………………………………….. 3

3. Strategic Focus and Plan………………………………………………………… 3

● Mission Statement………………………………………………………… 3

● Goals ……………………………………………………………………….. 3

● Core Competency and Sustainable Competitive Advantage ……….... 4

4. Situation Analysis………………………………………………………………….. 4

● SWOT Analysis……………………………………………………………. 4

● Industry Analysis …………………………………………………………... 6

● Competitor Analysis ………………………………………………………. 7

● Company Analysis ………………………………………………………... 8

● Customer Analysis ………………………………………………………... 8

5. Market-Product Focus…………………………………………………………….. 9

● Marketing and Product Objectives …………………………………….... 9

● Target Markets……………………………………………………………... 9

● Points of Difference……………………………………………………….. 10

● Positioning …………………………………………………………………. 11

6. Marketing Program…………………………………………………………………. 11

● Product …………………………………………………………………….... 11

● Price ………………………………………………………………………… 12

● Promotion…………………………………………………………………… 12

● Place/ Distribution………………………………………………………….. 13

7. Financial Data ……………………………………………………………………… 14

8. Organization……………………………………………………………………….... 14

9. Implementation Plan ……………………………………………………………..... 15

10. Evaluation and Control ………………………………………………………….... 17

11. Appendices

● Appendix A: Coupon …………………………………………………….... 19

● Appendix B: Advertisement ………………………………………………. 20

● Appendix C: Facebook Page …………………………………………….. 21

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1) Executive Summary

J-KAP® Electronics, Inc. is preparing to launch ERing™, a new electronic ring in

the wearable technology market. Smartphones and wearable technology have quickly

become second nature for many Americans and people throughout the world. Although

this market has grown exponentially the past few years, there is still untapped potential.

Many of the current devices are loaded with unnecessary features, resulting in

complicated products and inflated prices. ERing™ is user-friendly and provides one of

the most essential and basic human needs - safety. The sleek, simple design of

ERing™ appeals to our target market of seniors and college women by being

fashionable, while still providing security. The wearable technology market is projected

to be worth $34 billion by 2020, making it an opportune time to enter this market.

2) Company Description

J-KAP® Electronics, Inc. is an American electronics company that was

established in 1983. For the majority of our company’s history, the focus has been on

television and satellite systems, primarily residential Dish Network and Direct-TV

satellite installations. In these 30+ years, we have built a strong customer base in the

Western NY area. Circa 2004, J-KAP® acquired a storefront in Williamsville, NY, and a

warehouse in Varysburg, NY shortly thereafter. The warehouse is at roughly 30%

capacity, storing satellite equipment. The storefront has untapped potential, as it

currently is just used to solicit satellite installations to walk-in customers. There is plenty

of room for other products to be sold in this shop.

J-KAP® was recently handed down to us by the Gerwitz family, and we are

looking to diversify and move into different markets. The satellite business has been

profitable and steady, but not explosive. We are excited at the growth potential that

ERing™ can bring to our company.

3) Strategic Focus and Plan

a. Mission Statement

To provide customers a low cost, efficient means of contacting emergency contacts in a

pinch.

b. Goals

Non-Financial Goals:

-Be the leading wearable technology brand in 5 years.

-Release a new line of colors within 6 months.

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-Introduce new ring band materials by 1 year.

-Have our rings sold in major electronics stores in 2 years.

-Create a system within 3 years to allow customers to customize their ring.

-Implement biometric security within 3 years.

Financial Goals:

-Breakeven by 1 year.

-By one year, have a 4% profit growth rate, and increase by another 4% each

year.

-By 5 years, have 50% of J-KAP® sales be generated from ERing™.

c. Core Competency and Sustainable Competitive Advantage

Our core competency is customer service. We are a home-grown, all American

business who has an established track record in making customers happy. This is why

our customers are so loyal, and why we have excelled in a low-growth industry for many

years. Our customer service is a cut above the rest. We have a tried and tested training

program that equips our representatives with a unique skillset to handle virtually all

customer needs.

4) Situation Analysis

a. SWOT Analysis

The following is a brief description of the operating environment for ERing™.

Strengths Weaknesses

Internal

forces - Stable, established company - Excellent customer support

representatives and training program - Strong management framework - Established business reputation,

credit - Operations are 100% domestic - Quality product, simple and intuitive - Established relationships with

reputable suppliers - Existing warehouse and storefront - Have existing revenue to invest from

other operations - Already have plans and designs for

future products

- New to the wearable technology

market - No manufacturing facility - High cost of hiring and training

new employees - High cost of marketing a new

product

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External

Forces Opportunities Threats

- Large established customer base - Untapped niche market - Market is rapidly growing - Technology is rapidly growing – our

product can evolve accordingly - Provide product to a growing senior

population

- Other wearable electronic rings

or watches could implement this

functionality - The elderly target market could

be resistant to new technology - Not a recognized brand in the

wearable technology market - Must comply to FCC regulations - Must keep current and evolve

with rapidly changing technology - Must maintain compatibility with

numerous, evolving operating

systems.

Strengths

J-KAP® Electronics, Inc. is a well-established company with a stable customer

base and strong management background. With the passing down of management, the

effective framework of the past remains with the company; the new owners can

continue to provide the same excellent service to our customers. Being a top priority for

J-KAP®, delivering excellent customer satisfaction can be guaranteed through our

exceptional customer support representatives and in-depth training program. We have

built a dependable business and reputation in our field, and have the means to continue

to grow with the development of new products. All operations are domestic to ensure

that we are creating quality products and maintaining solid relationships with reputable

suppliers. With our existing warehouse and storefront, we are already well equipped to

handle the inventory and selling of new products, alongside our current operations. Our

existing revenue will help us in capital investment into our company’s new products,

providing secure and continual growth.

Weaknesses

Being new to the wearable technology market, ERing™ will have a low relative

market share and be in a fast-growing market, making it a “question mark” brand.

Furthermore, we will need to procure a manufacturer to fabricate our ERing™ to our

specifications, as we do not own a manufacturing facility. We also must hire and train

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new employees to provide customer support for this product. Finally, the high capital

investment for promotional advertising and marketing of an innovation is another

weakness that we must focus to overcome.

Opportunities

As a company that has been in business for over 30 years, we have established

a sizable customer base. These customers now become potential customers for our

new product, carrying with them their trust in our name. While there are plenty of

wearables in the market, there are none that currently satisfy the needs that our product

can. This is an untapped market with great potential. The wearable technology market is

experiencing a rapid growth period, with CCS Insight predicting a 64% increase in

monetary value by 2019. Consumers are becoming increasingly aware of what

wearables can offer them, and we can use this momentum to gain traction for our

company.

As a highly technological product, there will be constant hardware updates to the

components we use, along with new potential advancements we can implement into our

product. As technology evolves, so will our product, improving over time. With relatively

frequent hardware refreshes, customers will have incentive to upgrade their devices.

ERing™ could provide necessary emergency services to a growing senior population,

people 65 and older. The Baby Boomers are entering their 70s, and are only going to

get older. This target market segment is huge – according to census.gov, the 65 and

older population of the United States accounts for over 13% of the total population

today, will grow to over 20% by 2030, and will hold steadily through 2050.

Threats

Technology is constantly changing and evolving. A portion of our target market,

the elderly, may be resistant to adopting new technology, namely our own product or

technologies that are used in conjunction with our product, like smart phones. Related

to this evolution of technology, we must be able to maintain compatibility with operating

systems as they evolve and as new ones are introduced. It is crucial that we stay

current and relevant. As a new player in the wearable technology market, we will need

to build a reputation. We will also need to make sure to comply with FCC and all other

regulations that will be imposed upon us.

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b. Industry Analysis

In a time of continual growth in the electronics and wearable technology market,

it is key to make a product different from the rest. A vast majority of the US population is

at least familiar with wearable technology, while 20% of Americans actually own at least

one wearable device (according to a 2015 study conducted by Forrester.com). This kind

of status in society can be either helpful or hurtful to a company looking to grow in the

technology industry. According to Statista.com, of the 56 million units of wearable

technology sold in 2015, only five million units were in the “other” category (not watches,

wristbands, or glasses). Forbes has projected that the wearable technology market will

be worth $34 billion by 2020, making this an ideal time to enter this market. Our

ERing™ is the perfect device to outshine the competition by being different from the

rest, while still providing a want and filling a need for the consumer. ERing™ is

equipped with state of the art technology – providing the user with a fashionable, yet

dependable user friendly device, which can assist in emergencies and unwanted

situations. With a simple press of a discrete button, ERing™ can dial any phone number

necessary to help the user escape trouble, or even provide a way out of undesirable

conversation.

For our senior customers, ERing™ can be useful to replace the larger Life Alert

device, which has been known to create unnecessary emergency calls due to its large

button. ERing™ provides the same emergency care and service, but with a more

practical implementation. The smaller discrete button on each ERing™ is less likely to

be accidentally pressed, which will reduce the number of mistaken 911 calls while still

providing users a safe way of alerting that they are in need of assistance.

ERing™ is less bulky and technical looking than other wearables. This gives the

impression that it is simply a ring, rather than an innovative piece of technology. The

simplicity of our design and purpose is unintimidating - unlike other devices in this

market. We did not create our product to “do it all” like other devices, but rather to be

easy to use and assist the wearer. It has a simple design and a simple purpose, but can

go a long way in satisfying consumer needs.

c. Competitor Analysis

Wearable technology has been gaining popularity for the past several years. With

the technology exponentially expanding, consumers constantly demand innovations that

will simplify their lives. There are multiple types of wearable technology, such as

watches, armbands, headphones, and rings. Many of these wearables are integrated

with pedometers, heart rate monitors, LCD displays, activity trackers, or social media.

While these wearables attempt to meet several needs of consumers, our ERing™

satisfies one of the most basic and essential human needs – safety.

Wearable fitness trackers and smartwatches have become mainstream products,

while smart rings are just emerging. Many of our competitors have marketed their

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products on websites such as Kickstarter and Indiegogo, in attempts to publicize their

prototypes. Some of our direct competitors are Neyya, Mota, Logbar, Ringly, and Fin.

Examples of our indirect competitors that produce other forms of wearable technology

are Fitbit, Jawbone, Garmin, Apple, Samsung, and Nike. Finally, safety subscription

services such as Life Alert will be competition, although ERing™ retails at a fraction of

the price. At $29.99, consumers receive the full benefits of ERing™, comparable to a

single month’s subscription of Life Alert. Our product has no recurring costs, making the

one-time purchase more appealing to consumers.

d. Company Analysis

Our strengths allow us to position ourselves as an all-American company. Having

been domestically owned and operated for over 30 years, we have a high appeal to an

aging population that appreciates American values. Our product design, being simple

and intuitive, would also be attractive to this population – as a large number of seniors

struggle with technology. “No bells and whistles”. This factors into another relevant

strength, our focus on domestic customer support. We can guarantee that customers

will be able to connect with an American representative who will go the extra mile to

ensure satisfaction. We will be able to achieve these marketing goals using revenue

gained from our other operations as funding.

e. Customer Analysis

Our target market is comprised of female young adults from the ages of

seventeen to twenty-five, as well as elderly persons who either live alone or just want

peace of mind. The female young adults, whether they be college students, new to

driving, or new to being on their own, want to know they are safe and have a way to

remove themselves from unwanted situations. They may find themselves confronted

with uncomfortable conversations, unwanted attention, or far worse circumstances.

Being able to discretely remedy these situations with a phone call to themselves, the

authorities, or anyone they choose would be extremely valuable to them. Their interest

in accessories also makes them a valuable segment.

The elderly population segment will also greatly benefit from our product. For

those who live alone, injuries and medical emergencies are always a looming threat.

While most people have phones, they may not be able to reach them. Having our

product on their finger at all times means they can always contact help when they need

to. Since the product can only be used deliberately, no accidental calls will occur. For

those who do not live at home alone, it will still provide peace of mind. Because of the

low price of our product, we will target people of specific socio-economic status; it is

economically feasible for anyone to purchase it.

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5) Market-Product Focus

a. Marketing and Product Objectives

Our objective is to offer cutting edge, intuitive wearable technology at a

reasonable price. We aim to gain a significant portion of the wearable technology

market share, specifically that of young females and the elderly population. In 5 years,

we aim to have captured a majority of the market share in these target markets.

b. Target Markets

We will place most of our focus on two target markets: the elderly and young

females from the ages of seventeen to twenty-five. We selected these markets because

we feel they both have similar needs that would be fulfilled by our product. The biggest

need addressed is security and safety.

Independent elderly people often wish to maintain their sense of independence;

that is, they don’t want to be taken away from their own homes and lives. There are

services available that make this possible for many, but they often have pricy monthly

fees and contracts associated with them. Our product offers a vastly less expensive

alternative.The only requirement is that the user must have a smartphone and cellular

service. If an elderly user finds themselves in an emergency, they need only depress

the button on their ERing™. Emergency services will be contacted and the phone will

be set to speaker phone. Since ERing™ is also waterproof, they do not need to take it

off in the shower. They can feel secure at home without needing to eat away at their

retirement savings.

Young females, roughly college-aged, also require similar assurance in regards

to safety and security. They will find themselves walking back to their dorms,

apartments, or cars late at night. They may also end up at parties in places they are not

familiar with. If they find themselves alone and receive attention that makes them

uncomfortable, they can call themselves discreetly by using two presses of the

recessed button. This gives them a reason to leave a conversation. If they are walking

somewhere alone and feel that they are being followed, they can do the same. They

can also call 911 if need be.

Because of the modern, minimalistic design of ERing™, it doubles as the perfect

accessory. With plans to increase the number of available colors in the future, users will

have many options and can even purchase multiple devices to accessorize with their

outfits. It is a low cost, functional, subtle yet stylish piece of wearable technology. This is

where most wearable technology is lacking.

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c. Points of Difference

The wearable technology industry is rapidly growing. There are many products in

this category that boast a multitude of functionality and uses. Where these products

seem to fall short is their undefined focus due to their aforementioned breadth of

purpose.

ERing™ has a far more narrow focus and purpose. Because of its simplicity we

are able to keep it light, watertight, economical, and energy efficient. The ring is only

meant to provide a means for which to discreetly make phone calls without touching

one’s mobile phone. Other products in this category, referred to as “smart rings,” offer

essentially the same functionality as smart watches, but on an almost illegible, tiny

display. Changing one’s music, responding to texts, answering phone calls, reading

emails - these tasks are hardly feasible with a smart ring. Giving the consumers a clear

demonstrated use of our product makes it far more attractive. This ring is not a novelty

product that will lose its appeal quickly, because ERing™ offers true utility in a modern,

sleek package. This is not true of the other smart rings are currently struggling to

penetrate the wearable technology market.

Because of ERing’s™ energy efficient design, it only requires the use of a small

button-cell lithium-ion battery for operation. These batteries last for years in small

devices such as this. This means that consumers won’t need to charge the ring; they

will simply need to replace the battery after a few years. Most smart rings require the

user to charge monthly.

In addition to the simplicity of the design providing an energy efficient alternative

to consumers, it also provides a far more durable alternative. Smart rings have curved

displays, normally encased in glass atop a metal frame. If dropped, they risk shattering;

if smacked against a hard surface, they also risk breaking and cutting the user’s fingers

and/or hand. Our product presents no such risks because it is constructed out of an

extremely durable acrylic resin. The O-ring around the base of the recessed button also

ensures that the ring is waterproof. Consumers can be confident their rings will not harm

them or malfunction due to exposure to moisture.

Lastly, there is no monthly subscription fee or need to add the device to a cellular

plan. Because ERing™ interacts with consumers’ smartphones via Bluetooth, there is

no need to add additional costs to their monthly cell phone bills. Unlike products such as

Life Alert, there is no monthly subscription fee for the service. This makes ERing™ a

one-time purchase, without any additional fees associated with its ownership.

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d. Positioning

To young females and elderly persons in need of a sense of security and

independence, ERing™ is a simple and reliable means by which they can discretely and

effectively contact any person, authorities, or emergency services in times of need or

distress.

6) Marketing Program

In order to achieve a successful marketing program, we need to identify a proper

marketing mix of Product, Price, Promotion, and Place.

a. Product

ERing™ will be primarily constructed out of acrylic resin, in basic neutral colors.

Inside the acrylic band will be the electronic components, containing a Bluetooth chip

and a removable lithium-ion battery. The recessed button and housing will be

constructed out of acrylic, with a copper conductor. There will be a rubber O-ring under

the button, preventing water from entering into the ring, making ERing™ waterproof.

The Bluetooth chip will be able to connect to any device with a Bluetooth 3.0

sensor - that is, any smartphone. We are in the final stages of developing the ERing™

Companion App, which will be released for free on Android, iOS, and Windows

application stores. This companion app will allow users to pair with multiple ERings™,

as well as specify which phone numbers they want their ring to be able to call. There will

be up to five programmable numbers, activated by pressing the recessed button in

various ways. Button press options are as follows: single press, double press, triple

press, short hold (3 seconds), and long hold (7 seconds).

ERing™ will be shipped in sleek, modern, minimalistic packaging. The box will be

a solid pastel color, reflecting the color of the included ERing™, with our logo on the

front and around the sides. The cardboard will be made from recycled materials; this will

both reduce our costs and allow us to position ourselves as an eco-friendly brand.

We will provide a 1 year limited warranty to our customers, providing protection

against manufacturing defects or hardware failure. This warranty does not cover

accidental damage, theft, or the battery. If a customer has a warranty claim, they can

contact our US based customer support center, and send in their ERing™ to our repair

center to be either fixed or replaced. We will also offer a 30 day return period, for a full

refund.

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b. Price

ERing™ will retail at $29.99, with $3.95 shipping to the Continental US and

variable international shipping. If you purchase more than one ERing™, shipping is free.

We will also offer a 5% in-store discount for senior citizens and military. This doubles as

a strategy to increase store traffic, and as an attempt to increase other electronic sales

as well. We accept PayPal and every major credit card, as well as cash in-store. We do

not offer a structured payment plan; the full amount is due up-front.

We have used cost-based pricing approach to price ERing™. We have a contract

in the works to purchase 30,000 rings for $240,000 from a third party manufacturer,

Cooper & Stevenson. That price will also include, as a term of the contract, shipping

from their Columbus, OH factory to our Varysburg, NY warehouse. This works out to $8

per unit as our fixed cost. We have also estimated a $7 variable cost per unit in

overhead. As a result, our total unit cost is $15 for each ERing™. We then applied a

50% markup to come to our retail price of $29.99.

A 50% markup may seem high, but we believe it is more than justified. We are

still offering customers the best price on the market, when compared to our main

competitor. Life Alert costs $29.95 per month for their service, and this is on top of an

installation fee ranging from $95 - $115. Our ERing™, which functionally provides the

same service to the customer, would more than pay for itself in the first month. With a

50% markup, we will be on a fast track to achieving profitability. To create buying

urgency and increase sales, we are applying a promotional pricing strategy by offering a

limited-time 5% discount coupon.

ERing™ provides a simple yet essential resource at a reasonable, affordable

price. Equipped with high quality materials and innovative technology, our ring is a

simpler alternative to other wearables on the market. We believe our target customers

will be more than willing to pay a one time fee of $29.99 for such an essential product.

c. Promotion

We plan to advertise and promote through both digital and print mediums.

Existing J-KAP® customers will be the first to hear about ERing™, and will be e-mailed

a 5% off coupon. We will also run this 5% off coupon later on in Reader’s Digest and

The Buffalo News (see Appendix A).

We will employ selective targeting for our elderly target market through several

mediums. With the right investments, we will be able to run regular daytime

advertisements on Fox News, PBS, TCM, and NPR. We will highlight the benefits and

simplicity of the ring, making it a reliable replacement for products like Life Alert, as well

as the absence of monthly subscription fees that those services are associated with.

When compared to Life Alert, the ring will pay for itself in the first month of ownership.

For the younger female demographic, we will employ self selection by promoting

ourselves through social media, specifically Facebook (see Appendix C). We believe

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that hiring student promoters would be a valuable investment. These “Street Teams” will

receive a free ERing™ and T-Shirt in exchange for posting flyers around campus and

sharing our social media posts. These flyers, as shown in the appendix, will highlight the

attractive minimalist design of the ring, the compatibility with mainstream mobile phone

operating systems, the free app download that accompanies the purchase of the ring,

as well as practical examples of its simplistic, functional utility. The flyer is sleek, warm,

and modern in appearance. This appeals to the younger female audience’s sense of

fashion and style.

The flyer also promotes that the device is waterproof. This is an increasing trend

in the wearable technology industry and, while not necessarily expected, is a feature

most young consumers desire. Since our target female demographic are mostly college

students, they may not have large amounts of discretionary income. This makes the

waterproof feature more appealing, as it adds a layer of security because they will not

have to purchase another due to failure caused by spills.

At the very bottom of the flyer (see Appendix B) there are Facebook Share logos,

asking the reader to find us on Facebook and share our page. We also have our

Facebook web address link included in the flyer. The 5% off coupon and flyer will spark

the curiosity of potential customers into viewing our page. There they can read more

about the product and navigate to our J-KAP® online store to purchase a ring. We also

plan to use Facebook’s digital promotion and advertising analytics tools to schedule

posts and updates during high volume times, where our ads will reach the most viewers.

d. Place/ Distribution

Initially, ERing™ will only be available to purchase from two sources: Our J-

KAP® online store, and our J-KAP® Electronics storefront in Williamsville, NY.

As previously stated, Cooper & Stevenson will cover the transportation cost of

our first 30,000 units to our Varysburg, NY warehouse. As of now, we only need to be

concerned with transportation from our Varysburg warehouse to the Williamsville

storefront. These locations are less than an hour apart, close enough in proximity that

we do not need to pay to outsource shipping.

For the time being, we are working with a vertical marketing system, selling

straight to the consumer. We already have the facilities necessary to operate without

any intermediaries, so we will not incur any of the associated costs, such as

wholesalers and inventory management. For our first two years, we predict that the

majority of our sales will be generated through our J-KAP® online store. Our product will

be available to anybody with internet access, serviced through UPS. The $3.95

domestic shipping fee and variable international shipping fees will more than cover that

cost of transportation.

As stated in our non-financial goals, we aim to have our product carried in major

electronics stores in two years. This includes retailers such as Best Buy, Target, and

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Wal-Mart. At this time, we predict that we will be operating in a more stable

environment, with enough profit built up to employ wholesalers and intermediaries

required to move into these locations.

7) Financial Data

Our forecasted Income Statement predicts that we will break even between

10,440 and 11,168 units sold, depending on how many units of our product sell at full

price or at a 5% discount. After this point, our profit will be reinvested into the company

for further expansion and product development, giving our customers more selection

and adding value to our product. With a total cost of $450,000 ($240,000 in fixed costs

and $210,000 in variable costs), we will earn in the range of $404,700 - $449,700 profit

from the first 30,000 units. We expect sales to increase in upcoming years due to

product awareness and product line extensions.

Break-Even Point: Quantity

Break-Even Point = [Fixed Cost / (Price - Unit Variable Cost)]

Break-Even PointAt Full Price = [$240,000 / ($29.99 - $7.00)] = 10,440 units

Break-Even PointAt Discounted Price = [$240,000 / $28.49 - $7.00)] = 11,168 units

Break-Even Point: Revenue

Break-Even PointAt Full Price = 10,440 units x $29.99/unit = $313,095.60

Break-Even PointAt Discounted Price = 11,168 units x $28.49/unit = $318,176.32

8) Organization

J-KAP® Electronics, Inc. is a privately held, close corporation owned by our

President/CEO Jim Gerwitz and the Gerwitz family. Our organization structure

resembles that of a functional structure. Our CFO, COO, and CIO report directly to our

CEO, with other department reporting to them. Our Chief Operations Officer, aside from

the outlined roles, is also in charge of managing our inventory levels.

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9) Implementation Plan

The following lays out the implementation plan for the first six months of our 2016

product initiative.

Early May: Build awareness through email coupon promotion

To introduce our new product, we will first focus on current J-KAP® customers.

By sending them information about the features and benefits of the ring, as well as a

coupon and a “thank you” for their support, we will generate curiosity and enthusiasm.

Since these are already pleased consumers, they will likely trust our commitment to

customer satisfaction and assume a certain standard of quality from the product.

Additional information, as they will be told, will follow in weeks to come. This initial spark

in interest is valuable. The email “teaser” and coupon will accomplish this.

Late May: Dispatch street teams

Shortly after the emails to current customers are sent out and buzz is generated,

we will focus on engaging the younger female audience by hiring street team members

and supplying them with flyers to hang at college campuses and public bulletin boards.

These street team members will also talk to people at the locations at which they are

hanging these flyers. They will encourage people to check out our Facebook page and

explain the benefits and features of ERing™, as well as mentioning the promotions and

discounts associated with helping to spread the word.

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Early June: Begin television and radio advertisement

Following the success of our previous implementations, we will begin booking

time slots during daytime television and radio shows for advertisements that

demonstrate the design, function, and features of ERing™ in a manner that will appeal

to the elderly. We will explain how it is a perfect replacement for the many expensive

services they may already subscribe to. We will highlight their potential savings and

reinforce the quality of our product. We will also stress our commitment to keeping the

production, sales, and service entirely US-based.

Late June: Open storefront and online store

Now that awareness has been built up and buzz has been generated, we will

begin taking orders online and open our storefront for business. Our online store will be

modern and sleek, optimized for both for desktop and mobile OS’s. There will be an

online chat service available to connect our customer service representatives with those

who have questions or concerns. Our storefront will have a minimalistic and modern

styling with an open and spacious layout. Customers will be able to interact with

displays that showcase the ring’s features and functions. The three original colors will

be on display and demos will be available for sizing and fit. The coupons we have rolled

out so far will be accepted at both the storefront and online store.

July: Begin magazine and newspaper coupon rollout

Similar to the first implementation, we will offer the 5% off coupon once again.

This time it will be placed in the Buffalo News and various magazines for self selection.

This will reinforce and build curiosity fostered previously, while the discount will give

more potential customers incentive to try ERing™. This will help us reach a market we

had not specifically targeted previously.

August: Implement social media surveys to gain feedback

In order to receive valuable feedback that will help us make changes and catch a

glimpse into the actual perception of our product, we will roll out short surveys on social

media platforms. In this survey we will address any problems or concerns with the rings,

suggestions, complaints, and criticisms: both positive and negative. This will also be our

opportunity to ask which new colors customers would like to see in the near future,

pending the initial success of our product, for a line extension of ERing™.

October: Introduce new line of ring colors

After reviewing the satisfaction surveys, we will develop new rings with all new

vibrant colors, making sure to address any issues and complaints mentioned in the

surveys. Some of these new colors will be taken directly from the surveys; other colors

will be predetermined by us. Introducing these new colors will invoke new interest and

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life in our product. Many happy customers will likely purchase multiple rings to

accessorize and enjoy the newest model with any updated features.

10) Evaluation and Control

As an established company, J-KAP® Electronics, Inc. already has a solid loyal

customer base to introduce our new ERing™ to. However, with any new product comes

struggles to overcome. Our main concerns that will be addressed are as follows:

1. Inability to reach the sales numbers that we are striving for and need for our

ERing™ to be a sustainable product in the wearable technology market.

2. Difficulty reaching our target markets and making a strong impression on them to

want to purchase our product.

3. Customer dissatisfaction with the quality of our product.

With extraordinary customer service as our top priority, it is necessary for J-KAP®

Electronics, Inc. to be proactive in addressing any issues that may arise with our

company, products and customers. Therefore, our solutions to the above concerns,

should they arise, are as follows:

1. To avoid earning a low profit for our ERing™ sales, we will implement an

aggressive marketing plan using the aforementioned coupons, advertising, and

social media promotions. This plan is meant to create a vast awareness to not

only our current J-KAP® Electronics, Inc. customers, but also a larger consumer

pool with our new target markets. Building awareness and showing consumers

the utility and resourcefulness of our product will make them all the more eager

to want to purchase one. Simply making everyone aware of our product with the

outlined promotional plan will allow us to reach the sales we need in order to be

profitable with our new product venture.

2. With our target markets being elderly people and young females, it may be

difficult to reach out to them to leave a lasting impression of the usefulness of our

product. Along with our marketing plan and promotions, establishing a physical

presence to demonstrate the ease and efficiency of our ERing™ will give our

customers the extra push to fully understand why they should purchase one.

Visiting assisted living facilities and college campuses will allow us to show our

customers exactly how our product works and why it will be useful for them. We

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will reduce any problems in reaching our target markets by implementing a mix of

demonstrations and promotions, instead of solely advertisements and coupons.

3. Though we stand by the quality of our product, including its materials and

innovative technology, some customers may find it to be below their

expectations. To combat this, if it proves to be a persistent issue for our product,

we will make every effort to move up the release date for our second line of

colors and materials. Our exceptional representatives in our customer service

department will be fully equipped with the proper training to address any

problems that customers may have with our product. If these problems involve

any manufacturing defects or hardware failure, we will supply the customer with

the proper refund or exchange (as outlined by our limited warranty).

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Appendix A

This coupon will be emailed to all of our current J-KAP® Electronics, Inc. customers and

will soon be printed in Reader’s Digest and The Buffalo News.

Appendix B

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This advertisement will be printed on our flyers to be shared around college campuses

and other populated areas where our Street Teams will be present. We will also display

it on social media platforms to reach a larger audience.

Appendix C

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This is a screenshot of our Facebook page, captured on April 27, 2016.

https://www.facebook.com/ering16