Introducing the Soccket Soccer Ball into the Peruvian Market

1. Introducing the Soccket Soccer Ball into the Peruvian Market Will Kauffman Sara Nienhaus Heather Gray http://www.soccket.com/

2. The Product • Soccket Soccer Ball. • Soccer Ball that stores energy and generates electricity for powering LED lights and batteries. • 15 Minutes of play time = 3 hrs of LED lighting power. • Currently in use in rural parts of African countries which have no electricity.

3. Product Evaluation • Relative Advantage: Allows access to power to those who previously had none. • Compatibility: Much of the Peruvian population already plays soccer, thus making it easy to integrate into the local market. • Complexity: Very easy to use; cheap, clean, sustainable energy • Trialability: Not much opportunity to try first due to lack of current global product integration • Observability: Product currently only in African countries, but the benefits can be easily observed and quantified.

4. Potential Problems • Cost: The technology is still in beta testing, but eventually should be relatively cheap to produce. • Donation Programs can be used to help begin market integration—buy one, give one. • Retailing Strategies  dedicated exclusive store vs. adding product to existing sports retail location • Ball Quality  need to make sure it is up to the standards of the consumer

5. The Market: Geography and Demographics • 25% of the TOTAL population and 70% of rural population do not have access to electricity in Peru • Those living in the most rural areas of the Andean Highlands may never have access to reliable electricity due to high infrastructure costs and difficult accessibility. • Most people in this area make < $300/month

6. The Market: Consumer Buying Habits • Ball Sports Equipment led the sports equipment market in 2008 with 27.3% market share. • Day to Day shopping • Market a variety of colors and sizes to appeal to many segments  national colors, club team colors, etc. • Peruvians resistant to change—Current heavy use of soccer balls allows for a smooth transition • Packaging—use packages as well as the product, so the way it is packaged is important (bio-degradable package)

7. The Market: Distribution • More focus on sales to urban areas with more disposable income, and donations to rural areas. • Sell both regular and Soccket soccer balls—purchase of either onesendSoccket ball to rural family • Use popularity of Soccer in Peru to help boost initial sales—shopping habits

8. The Market: Distribution • Local Retailing: Sell product to local retailers in urban areas like Lima • Create a donation program to allow distribution to rural, poor areas that do not have access. • Online Retailing: Create our own website to avoid middlemen and reduce initial costs; once product sales increase, possibly team up with large online retailers like Amazon

9. The Market: Advertising and Promotion • Run local ads in newspapers and on television to help people understand the need for electricity in those rural areas • Open a Soccket kiosk around popular soccer destinations to promote product and give demonstrations • Create a website to help increase awareness of product to both Peruvians and others globally • Peru is highest in Latin America internet use because they have cheap, public facilities

10. The Market: Pricing Strategy • Difficult to predict entry price point because the technology is just being introduced into the consumer market • Need to cover production and distribution costs  work with corporate sponsors affiliated with soccer to gain funding—FIFA, National and Club teams. • Haggling is common in Peru  experiment with various price points to determine a suitable entry price point (work with local retailers)

11. Market Size • 62% of Population lives in the Highlands • Subsistence Farming and Mining are economic base—can use Soccket Soccer ball to charge batteries for mining lights, etc. • Market size has potential for expansion due to global interest via online distribution channels • Goal: To have at least 30% of rural population using Soccket Soccer ball by 2020

12. Government Participation • Work with various agencies to help promote donation program  WHO, World Bank, NGOs and other foreign aid agencies • Work with Peruvian Government to determine the best way to import  tariffs, distribution channels, etc.

13. Problems and Opportunities • Problems • Revenue  plan to donate many, need low overhead and outside funding • Availability  product is just being introduced into the consumer market • Opportunities • First Mover Advantage  corner market • Potential for use as a substitute for regular soccer balls • Large market size • Clean, sustainable energy  could be the forefront of a larger movement

14. Sources • http://www.globalgiving.org/projects/electricity-for-rural-peru/ • http://www.worldsalaries.org/peru.shtml • http://www.jstor.org/stable/1249090?seq=5