Electric Foxy:

Elements Marketing Plan

Chevara Naidoo, Tracy Commander, Taryn Burks & Kenny Chen

December 2014

Agenda

• Introduction

• Situation Analysis

• Marketing Objectives

• Marketing Strategy

• Action Plans

• Financial Projections

• Implementation Controls

• Q&A

Introduction

• The Elements bracelet is a mood and mental wellbeing tracking device that encourages a healthy state of mind within chaotic lifestyles

• Elements is a new experience that understands and learns about your environment and how these changes make an impact on one’s state of mind

• March 20, 2015, Electric Foxy’s Elements bracelet will be launched into the increasingly competitive yet new world of wearable technology

• Electric Foxy faces the challenge of launching an unknown brand (product-brand and mother-brand) into a new and growing market

• Elements will officially be the first Electric Foxy product sent to market, which poses an incredible opportunity to establish the overall brand as a fierce competitor within the wearable jewelry category

• The Elements brand was selected as the flagship product because of the fact that the bracelet’s design and functionality delivers a benefit unlike any other wearable jewelry product to date

Agenda

• Introduction

• Situation Analysis

• Marketing Objectives

• Marketing Strategy

• Action Plans

• Financial Projections

• Implementation Controls

• Q&A

Key Issues

• Electric Foxy has yet to enter the market. Other brands have already taken products

to market, getting a head start on capturing market share.

• High-profile fashion designers are entering the wearable tech space. Electric Foxy will

have to compete with brands that have consumer recognition and established

distribution/retail capabilities.

• Customers may have difficulty seeing the value of wearable technology when they

already have similar functions, such as email notifications, on their mobile devices.

• Customers may be open to wearable tech, but confused by how products work,

discouraging them from buying. Education, such as the ability to try in store/trained

salespeople, and ease of use will be crucial to capture these customers.

Macro Environment

• Economic

– The U.S. is slowly emerging from a recession and consumers are once again starting to spend their money less frugally. As of August 2014, real disposable income across the US increased by 0.3 percent, which is a clear sign that consumers are starting to spend again.

• Legal

– Although the wearable technology sector is fairly new, there have been a number of legal issues facing the category. Intellectual property becomes a challenge as the category becomes more competitive.

• Technological

– It is changing the way consumers communicate from a way that simply started out with bands that monitor health, to chips that can be embedded into clothing or human skin. The category is developing at a rapid rate and response time in this category is critical for those within it to remain competitive and relevant.

• Demographic

– According to Nielsen, Millennials are one of the largest generational groups in the U.S. and are also the majority owners of wearables.

Category Trends

Technology Gadget To Fashionable Items:

• Fashion brands are starting to respond as well. Ralph Lauren unveiled their high-tech t-shirt for

athletes at the US Open in 2014. This growing trend is one of ‘form meets function’ to create

products that are aesthetically pleasing materials enhanced by technology.

Bringing People Closer Together:

• The wearable technology category is growing in a direction that provides a more emotional

benefit than a functional one. Wearable tech is minimizing the gap between loved ones through

a series of innovative products such as a ‘hug-simulating jacket.’ The T.Jacket is a jacket

designed for kids that parents can control on their mobile devices.

Personal Data Analytics:

• Personal data analytics is a new concept in this sector and encompasses the mining of data that

is demographic, transactional, behavioral and medical. The company Mimo has designed a

onesie that visualizes a baby’s vitals on a coffee mug for close monitoring.

Wearables In The Workforce:

• Companies are starting to incorporate wearable devices into their businesses to better serve

customers’ and employees’ needs. This depicts the broad usage of wearables and how they

can optimize the way a business operates.

Consumer Insights

• 48% of current wearable owners are 18 to 34 years old

• Most popular wearable tech: Fitness bands, at 61%

• 53% want wearables that look more like jewelry

Demographics

Men and Women

18+

College and Non-College

Educated

Median HHI $35K to $100K Psychographics

Information Focused

Health Conscious

Socially Connected

Distribution Insights

• Current Distribution is Non-Existent – Products still prototypes

• Fitness Band Competitors (Indirect) Sell Through Own Websites, Other Online

Retailer, and Brick & Mortar Retailers

• Tech Jewelry Competitors (Direct) Take Pre-Orders or Sell Through Own Sites

• Success for Electric Foxy: Enter These and Other Distribution Channels to

Steal Share

+ = =

Financial Condition

• Wearable tech market expected to grow from $14 billion in 2014 to over $70

billion in 2024

• EF currently with no sales (prototypes only)

• EF spending money on producing product, research, and marketing

We must capitalize on current market conditions

• Appropriate Marketing

• Correct Positioning

Competitor Analysis

Brand MEMI CUFF Tory Burch

for Fitbit

Ringly MICA by

Intel &

Opening

Ceremony

Key Product iPhone

compatible

bracelet

A line of jewelry

wearables for all

day

Smartphone

compatible

bracelet

Smartphone

compatible ring

Smartphone

compatible

bracelet

Image

Description Notification Notification

Activity

Tracker

Notification

Activity

Tracker

Notification

Notification

Activity

Tracker

Price $150 Basic $49

Premium $99

Style pack $199

$195 $148-$180 Estimated $500-

$1000

Differentiator Made for

women by

women

Smart Safe

Jewelry

Fashion meets

technology

Stay connected

in style

First luxury

smart bracelet

Competitor Analysis

Brand MEMI CUFF Tory Burch

for Fitbit

Ringly MICA by

Intel &

Opening

Ceremony

Brand

personality

Chic

Professional

Mature

Professional

Edgy

High fashion

Professional

Young

Chic

Fun

Edgy

Fashion

forward Young

Availability Out on pre-

order,

Expected

delivery Spring

2015

Out on pre-

order,

Expected

delivery March

2015

Available Now Out on pre-

order, Expected

delivery Early

2015

Available in

Barneys and

Opening

Ceremony

Stores by

Holiday 2014

Key

marketing

activities

Social media

presence

PR coverage

Social media

presence

PR coverage

Social media

presence

PR coverage

Social media

presence

PR coverage

Social media

presence

PR coverage

SWOT

Strengths Opportunities

• Fashionable pieces that women find

beautiful

• Unique product features

• Monitors environmental effects

• Tracks trends and patterns to help

maintain mental health

• Increased focus on preventive care

expands health/fitness market

• Higher profile wearables, such as

Apple Watch, could lead consumers to

adopt Electric Foxy products

• Retail partnerships with fashion and

athletic apparel retailers

Weakness Threats

• Customers may not understand how

the product works

• Lack of enhanced experience

• Other wearables offer more flexibility in

how they’re worn

• Other wearables are already available

on the market

• Fashion designers, e.g. Tory Burch,

are starting to develop wearables

Agenda

• Introduction

• Situation Analysis

• Marketing Objectives

• Marketing Strategy

• Action Plans

• Financial Projections

• Implementation Controls

• Q&A

Marketing Objectives

1. Build brand awareness from 0% unaided to 15% unaided among our target market by

the end of the fiscal year.

2. Secure retail distribution with 42 retailers and specialty stores (brick and mortar and

online) in key geographic markets, ex. New York and Los Angeles by the end of the

fiscal year.

3. Successfully launch the Elements product by selling approximately 10,500 units by

the end of the fiscal year.

4. Attain 0.1% market share of the entire wearable tech market by the end of the fiscal

year.

Agenda

• Introduction

• Situation Analysis

• Marketing Objectives

• Marketing Strategy

• Action Plans

• Financial Projections

• Implementation Controls

• Q&A

Segmentation

“Socially Connected”

-Desire to constantly be “in-the-know”

“Always Athletic”

-Desire to monitor and improve progress

“Health Aware Couch

Potatoes” -Desire to become more active without

having to go to the gym

“Holistic Health

Conscious” -Want to monitor overall

wellbeing

-Desire a healthy body and mind

Target Market: “Holistic Health Conscious”

Needs

Beautiful

Simple

Meaningful

Demographics

Millennial Women

Median HHI above $75K

Located in Major Metropolitan

Areas

Psychographics

Fashionable

Busy Lifestyle

Health Conscious

Fashion First, Technology Second

Positioning

In order to successfully launch Elements into the wearables market, we need to determine how we are

going to position the product uniquely against our competitors

Socially

connected

‘My’ wellbeing

Self-expression

(internal

benefit)

Trend setting

style (external

benefit) Positioning opportunity

for Elements

Positioning opportunity –

but not relevant to

Elements

Distribution

• High-End Fashion Retailers

– Bloomingdales, Barneys, Bergdorf Goodman, Neiman Marcus, Nordstrom, and Saks Fifth Avenue

• Athletic Specialty Stores

– Lululemon, Athleta, and Sweaty Betty

• Online Retailers

– Nancy Rose Performance, Yoga Smoga, Zobha, and Vickerey

• Electric Foxy Website

Product

• Keep Track of Environmental Elements

• Get Suggestions on What Affects You

• See Trends and Get Predictions

• Set Goals For a Healthy State of Mind

• Stay in Your Healthy Zone

Pricing

• $175 Direct-to-Consumer

• $115 to Retailers

• Priced Based On:

– Costs to Manufacture

– Other Similar Products like MEMI and Tory Burch for Fitbit

Agenda

• Introduction

• Situation Analysis

• Marketing Objectives

• Marketing Strategy

• Action Plans

• Financial Projections

• Implementation Controls

• Q&A

Tactic 1: Events - New York Fashion Week 2015 S/S

• Description:

- Collaborate with Calvin Klein in their 2015 spring summer fashion show in New York

- Models wear Elements on the runway, screen reflects models’ mood fluctuations on the screen

- #MyCalvinElements will be promoted on social media

• Creative: Publicity and grab instant attention

• Location & Timing: Mercedez-Benz Lincoln Center, February 15th

• Cost: $60,000

#MyCalvinElements

Tactic 2: Events – Launch Event in Calvin Klein Flagship Store

• Description:

- Models showcasing Elements in the store

- Invite celebrities and press to attend the

press event

- Samples will be provided for try on

• Creative: Publicity for launch of the

product, celebrity endorsement increases

the awareness of Elements - try on

product

Location & Timing: Calvin Klein

Flagship Store at Madison Avenue, New

York

Cost: $24,000

Tactic 3: OOH

• Description: Sequence Advertising

• Creative: First ad grabs attention, second ad elicits emotion and call to action

• Location & Timing

– January: ALL Locations

– April: SoHo & LA

– July: 5th Avenue & OC

• Cost: $184,000

“Am I Fashionable or Am I Fit?”

“Elements Lets Me Be Both.”

Tactic 4: OOH

• Description: Seasonal Advertising, leveraging outdoor media

• Creative: Showing how Elements can provide information on how the environment

affects your mood

• Location & Timing: One month of each season in all major locations

• Cost: $432,000

“Am I Fashionable or

Am I Fit?”

Conquer the

Winter with

Elements

EF

Tactic 5: Experiential

• Description:

– Portable 'booth' that creates visuals and colors to stimulate and affect peoples’ mood states

– The essence of the mood chamber is to be more of a pop-up style experience so creative

would not necessarily be briefed, but a supplier who can create and develop this type of

device

• Creative: Spark interest and curiosity

• Location & Timing: Pre- and post-launch once a week at a key location, February

2015 onwards. The chamber can be used at the product launch to get people to

engage more with the bracelet and the brand.

• Cost: $30,750

Tactic 6: Promotions (in-store/online)

• Description: – Pre-Order Promotion: Customers can place orders prior to the product launch between January 1 and March

20, 2015 on the Electric Foxy website.

– In-Store Demonstrations: Pop-up boutiques with targeted retailers.10 pop-ups In New York and Los Angeles

throughout the year-long campaign. Opportunity to build awareness and secure retail distribution

partnerships.

• Creative: Customers experience and test the product in person

• Location & Timing: Select retail locations in New York and Los Angeles – First quarter: January 25, February 8, March 22

– Second quarter: April 5, June 28

– Third quarter: July 26, September 20

– Fourth quarter: October 25, November 22, December 13

• Cost: $70,000

Tactic 7: Trade Shows

• Description: Five technology conferences and fashion tradeshows – Increase awareness among industry insiders

– Attract buyers from target retailers

– Secure additional investments

• Creative: Industry leaders, buyers, and investors view and test the product

• Location & Timing: – International Consumer Electronics Show: January 6-9, 2015 Las Vegas

– JA New York: January 18-20, 2015 New York City

– COEUR: March 16-18, 2015 Los Angeles

– Smart Fabrics + Wearable Technology Conference: May 11-13, 2015 San Francisco

– Wearable Tech Expo: June 2-4, 2015 New York City

• Cost: $62,250

Tactic 8: Social Media

• Description:

– Mood Portraits on Pinterest • Mood of Seasons: Boards update according to users’ mood and seasonal changes

– Twitter Hashtags • Tweets containing health and wellness tips using seasonal hashtags, e.g. #ElementsWinterMoods

– YouTube/Web Videos • Promote mood enhancement/relaxation techniques that can be monitored by the bracelet

– Exclusive Content • Weekly product news, tips, and updates sent to an exclusive member list

– Social Media & Tradeshows • Blog posts and live tweeting to share interesting discoveries or industry thought leadership

– Social Media & Pop-Up Stores • Boutique announcements; new followers on Twitter will enter a drawing for a free bracelet

• Creative: Engaging content that encourages purchases and turns customers into

brand ambassadors

• Location & Timing: Throughout the year

• Cost: $98,050

Tactic 9: Programmatic Ad Buying

• Description: Set parameters to target only desired consumers

• Timing & Impressions

– Jan to Apr: 50,000/day

– May to Oct: 25,000/day

– Nov & Dec: 37,500/day

• Cost: $12,890

Media Plan

Marketing Budget

QUARTER Q1 Q2 Q3 Q4 ANNUAL

Advertising

Media (Total) $200,000 $155,000 $153,000 $108,000 $616,000

TOTAL ADVERTISING $200,000 $155,000 $153,000 $108,000 $616,000

Web Marketing

Website/e-Commerce site $7,500 $7,500 $7,500 $7,500 $30,000

Programmatic Ad Buys $4,500 $3,033 $2,300 $3,057 $12,890

TOTAL WEB MARKETING $12,000 $10,533 $9,800 $10,557 $42,890

Public Relations

PR Firm (includes social media) $85,960 $79,820 $79,820 $79,820 $325,420

Programs (mood chamber, fashion show

and launch) $113,750 $113,750

TOTAL PUBLIC RELATIONS $199,710 $79,820 $79,820 $79,820 $439,170

Promotion

In-Store Demonstrations $28,000 $14,000 $14,000 $21,000 $77,000

TOTAL PROMOTION $28,000 $14,000 $14,000 $21,000 $77,000

Trade Marketing

Trade Shows $37,750 $24,500 $62,250

TOTAL TRADE MARKETING $37,750 $24,500 $- $- $62,250

Market Research $300 $5,000 $5,300

TOTAL MARKET RESEARCH $300 $5,000 $- $- $5,300

TOTAL MARKETING SPEND $477,760 $288,853 $256,620 $219,377 $1,242,610

Key

Primary

Secondary

Agenda

• Introduction

• Situation Analysis

• Marketing Objectives

• Marketing Strategy

• Action Plans

• Financial Projections

• Implementation Controls

• Q&A

P&L Analysis

Agenda

• Introduction

• Situation Analysis

• Marketing Objectives

• Marketing Strategy

• Action Plans

• Financial Projections

• Implementation Controls

• Q&A

Implementation Control Chart

Activity Milestones Approach

Awareness Achieve 4% unaided awareness by

end of Q1, and 7% unaided

awareness by Q2

Conduct on going online surveys (end of each quarter)

Q2 focus groups with target market

Implement in-store surveys by Q3

Monitor social media ‘mentions’ and analytics(Alexa) on an

ongoing basis

Distribution Achieve retail distribution of 21

stores by end of Q2

Trade analysis –identify any challenges/opportunities

Conduct distribution survey to examine relationship between

Electric Foxy, Elements and retailer

Sales Achieve 1,500 unit sales by end of

Q1

Achieve 2,500 unit sales by end of

Q2

Achieve 3,000 unit sales by end of

Q3

Achieve 3,500 unit sales by end of

Q4

Examine sales data

Launch (presale

target)

Sell 500 units prior to March launch

date

Examine sales data

Monitor Twitter page and website traffic – increase in

followers by 5% due to marketing efforts will show gaining

popularity and interest in the product

Agenda

• Introduction

• Situation Analysis

• Marketing Objectives

• Marketing Strategy

• Action Plans

• Financial Projections

• Implementation Controls

• Q&A

Thank You!