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

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

Situation Analysis Designed for people on the move who want to stay in touch: Business trips Car trips The outdoors Hiking Boating Fishing Camping

Situation Analysis Essential tool in emergency situations: Emergency calls Last minute plans

Situation Analysis Mobile phones are consistently chosen as the product to be powered by a self-sufficient generator 2 out of 3 cell phone users would be interested in buying a self-sufficient phone charger Interest is great among heavy users 1 out of 3 mobile phone users worry about their mobile phone running out of battery when they are in a place they cannot recharge it

Situation Analysis Freeplay conducted 20 focus groups in the USA, Germany, UK, and South Africa to understand customer reactions to mobile phone chargers Revealed: Frustration exists with battery performance Demand exists in both developed and developing countries

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

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

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

Add that up and here is what you get:

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

Marketing Mix: Price Price is consistent with consumer expectations, based on market research (Heavy Users, New Jersey, September 2000) 2/3 of these people said they would “definitely buy” at $79.95 Prices mentioned by target consumer groups ranged from $49.95 to $125.00 Suggested retail price is $65.00

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

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

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

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

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

Unique Selling Proposition What makes Motorola’s FreeCharge different from the competition?

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

Unique Selling Proposition What the competitors are offering

Unique Selling Proposition Nokia                                 BPS-1 Benefits: Small, Light-weight, and slim

Unique Selling Proposition Panasonic EB-BSD35 EB-BSD75 EB-BSD93 Benefits: extended talk and standby time, super slim,

Unique Selling Proposition Ericsson BUS -11   BDA-10 CTR-10 (travel) Benefits: extended use, ultra slim, compact, use with laptop, high capacity, travel chargers

Unique Selling Proposition All competitor’s products require an external energy source!!

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

FreeCharge Competitors Aladdin Power Portable generator Needs no external power source Charge with squeeze of hand 1.6 watts/90 cranks a minute $59.95                           

FreeCharge Competitors Electric Fuel: Instant Power Lightweight, disposable battery Charges cell battery 3 times Connects to phone through Smart Cord Only buy Smart Cord once, but must buy replacement batteries Once opened, good for 2-3 months $14.95 with $9.95 replacements                          

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

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

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

Con’t WEAKNESSES Motorola Sales Net loss in 2001 of 1.2 billion 2002 = ? Net loss in 2001 of 1.2 billion Motorola Stock trend is on a decline (As seen to the left)

OPPORTUNITIES Sale Trends of Communication Equipment July and August = 6 billion a month After 9-11 drop to approx. 3.6 billion a month Slowly the trend is coming back, and its predicted that growth will continue and increase to about 15% more in July/August 2002. With more Cell phone use, comes more possible need for Free Charge.

Con’t OPPORTUNITIES Market – Hiking, outdoors, tirps, and people on the go. More of a “nice to have kind of accessory” Europe is less focused on convenience, and they are more accustomed to wireless. Hence, they can’t risk having no energy Africa – 20 to 30% electrification. Service providers need a supply of energy and capability for connection Hence, Opportunity in Foreign Markets

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

Con’t THREATS Gas power Solar Power Motorola, NEC, and Sony Charged for a month Only a little larger, and heavier than the normal battery Estimate that 200 million will be in use by 2010. Solar Power 2 hours of solar charging equates 18 minutes of talk time. Sunpower Systems Spectron – type of battery

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