S NOOZ E AR S YSTEMS, LLC F EASIBILITY D ECISION : I NFEASIBLE Team Indigo

F OUNDING T EAM David Bui – Chief Executive Officer (CEO) Mustafa Younus – Chief Operating Officer (COO) Karla Alvarez – Market Research Analyst Joseph Nelson – Chief Technology Officer (CTO) Sarah O’Brien – Chief Financial Officer I (CFO) Lindsay Duggan – Chief Financial Officer II (CFO)

P RODUCT D EFINITION Alarm clock with wireless ear buds Ear foam for comfortable sleep Ear buds fit into ear canals for noise reduction, rubber molds for different size ears included Bluetooth technology iPod® Ready Ear bud rechargeable by docking into the SnoozeStation MSRP $120

B USINESS C ONCEPT Customer definition  Ages 16 – 34 Distribution alternatives and innovations Spinoffs/ Growth How are we going to make money?

F EASIBILITY A NALYSIS Product Concerns Flaws in design require redesign before prototype is built Royalties for prior patent and product integration Financial Concerns Low per-unit margin High capital requirements Buyer Concerns Lack of interest Product price is higher than what buyers are willing to pay

I NDUSTRY A NALYSIS NAICS/SIC code More weaknesses than strengths The industry is in a decline Major industry leaders overpower the market Porter’s 5 Forces and Pest Analysis show high barriers to entry R&D and investment funds are limited due to competitive advantages

M ARKET A NALYSIS Urban and College environments Secondary Research Market size projected at 1.2 million Target demographics between ages 16 – 34 represents 21% of the U.S. population Primary Research 50% say it’s a minor improvement 36% would pay $75 for SnoozEar Survey - product is not feasible, improvements are needed

P RODUCT A NALYSIS Design Flaws Physical (spatial) limitations System power Product Redesign May change cost feature May increase time to market

D EVELOPMENT T IMELINE

F INANCIAL A NALYSIS Manufacturing cost per unit - $59.95 Final retail price - $120 Royalty rate - 4.2% of revenues Break-even at 1,667 units Total cash needs - $373,225 Potential product improvement year 3 - price increase to $130 Change of price Decline of sales Unexpected demand

Q UESTIONS ?