Lit Motors + A New Power

Qualitative Analysis Lit Motors The C5 Go to Market Plan Customer Value Proposition Bringing a safer ‘motorcycle’ to the market that won’t fall over during a collision and has the benefits of both a motorcycle and a car Environmentally friendly Easy Parking Shorter commuting time Safer A step away from the masculine motorbike Target audience of income over $100,000 Business professional who want to be safe and professional while enjoying the benefits of a bike Young Urban professional China + India would not be early adopters, but UK, Germany, Netherlands would be Technology + Operations Management Other companies have perfected the technology, so Lit Motors limits the risk it carries Very lean startup Go to Market Plan No experienced business development professionals Competition from: Motorcycles, Ultra-small cars + Enclosed two/three wheelers Profit Formula Sales will result in a loss for the first year Once scaled, there will be a profit for Lit Motors The C5 Customer Value Proposition Smaller vehicle Single passenger As young as 14 can drive it No helmet or insurance required Environmentally friendly Competitive price Cheaper to operate Technology + Operations Management Outsourced servicing and repairs to Hoover to reduce costs for Sinclair All research done in house Small but very advanced team who have a track record together Go to Market Plan Mail ordering Spending 3 million pounds on bringing the C5 to market Profit Formula No financial projections Assuming there will be high demand 399 Pounds

Quantitative Analysis Lit Motors Created the prototype body to gauge customer response for $120,000 Assuming sales are going to be instantly met Retail Price of $12,000 Cost of $6,000 per unit at high volume Lack of experience in this area Would require 38 vendors to break even Spending money on trying to build up a culture of acceptance for the C-1 Trying not to be ‘Geeky’ Trying to take on all responsibilities, rather than allowing them to focus in on being very good in one area Looking to have 30/40 of their team to be engineers They are too focused on the product that there is too small of a sales + marketing team Small market research, not demonstrating that they are actually in demand Are planning on doing a large scale market survey Conversion rates from the market survey to paying the deposit was low Relying on a high viral coefficient Tries to reduce customer acquisition costs Is very ambitious and needs to look at scalability Estimating the C-1 to be a multi-billion dollar business The C5 Has put in 8.4 million Pounds of his own money, showing belief and commitment to the product Asking for 3 million Pounds in return for an finalized equity stake This will go to extensive marketing Investors are only dealing with him, but his say will be final Proven successful entrepreneur Lots of outsourcing for production Strategic Alliance with the Hoover Corporation already secured for production of the C5 400 engineers nationwide to service the C5’s 300 Battery centers through the Comet Stores group and select Woolworths United Parcels handling shipping No market research Forecasted low customer acquisition costs This all depends on how quickly the new market picks up on this product that is quite futuristic Competitive price

Recommendations Lit Motors The C5 Raise another round of capital Conduct extensive market research to find out if there is any demand for their product Expand the marketing team The current ratio of engineers to administrative is too high, there need to be more people making business decisions Run the Cargo Scooter and C-1 as separate businesses Pursue this venture, but first do mass market research to find where demand accurately fits the market There is not much flexibility in the business so getting it right is important otherwise all the money and time invested will go to waste The C5 Stop marketing the C5 as a vehicle for 14 year olds Those who are able to afford it will not want 14 year olds running up and down the street on them Start off smaller and test the product on the road to see if it works rather than just testing it on a track I would not pursue this product These has been no market research and Sinclair should have tested the product on the roads before launching There is also too much dependence on outsourcing. If one business folds then the entire business could collapse