1. Lit Motors + A New Power

2. 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

3. 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

4. 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