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Slingbox

Slingbox. INNOVATIVE NEW PRODUCT Lindell Chew. General Business Purpose. What is Sling Media, Inc A digital lifestyle products company creating a family of consumer electronics products that are a natural extension of today’s digital way of life

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Slingbox

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  1. Slingbox INNOVATIVE NEW PRODUCT Lindell Chew

  2. General Business Purpose • What is Sling Media, Inc • A digital lifestyle products company creating a family of consumer electronics products that are a natural extension of today’s digital way of life • The first member of the Sling Media family is the award-winning Slingbox™ .

  3. Products • What is Slingbox- • A groundbreaking piece of hardwired ingenuity that will literally transform the way you watch television, for only $249.99 • It allows consumers to access their living room television experience at any time, from any location. • Uses a variety of different displays including laptops and desktop PCs, handheld computers and smartphones • Slingbox Intro Video

  4. Price • $250.00 • No additional monthly or service fees • Value Pricing -not too high but still suggests quality -because consumer takes a risk with an unknown brand it needs to be priced to reflect value

  5. Distribution • Selective • Available at home website, Comp USA, and Best Buy. • Not exclusive so that product would be available at stores our target market shops at. • Not intensive to reflect higher quality.

  6. Existing Competition • No direct competition • Indirect competition at the product category, generic and budget competition level • Hotel Movies and Television • Streaming Online Video • DVD’s • MLB TV

  7. Threat of New Entrants • Many companies with technological know-how with large R&D budgets could easily enter the market pending progressive growth • Companies with a computer-based platform (Microsoft, Dell, Hewlett Packard) • Companies with a television-based platform (Sony, Hitachi, Samsung)

  8. Problems & Opportunities • Opportunities • First to Market – Market Share Supremacy • Partnership with Texas Instruments and Microsoft Window digital media • Internet and cable use (Requirements) are at an all time high and continue to grow

  9. Problems & Opportunities • Problems • Set up/Technology my discourage customers especially older population • Power house, entering the market and

  10. Target Market (size)- 3.5 Million • Cross section of people with cable/satellite TV and high speed internet • Affluent, tech savvy business travelers • Age 25 to 55 • 30 top urban cities

  11. Promotional Mix • Promotions Subtotal--$4,375,000 • 10% of Net Sales Revenue

  12. Advertising 60% of Promotional Budget $2,625,000 Highest percentage Need to create market awareness Need to create positive image for new product Public Relations 20% of Promotional Budget $875,000 Large portion of $ goes to pay staff or P.R. firm Responsible for maintaining a positive image towards Slingbox Promotional Percentages

  13. Internet 10% of Promotional Budget $437,500 Small Percentage: + It’s Cheap + Lot of “Bang for your Buck” -- Can be too Intrusive Sales Promotion 10% of Promotional Budget $437,500 Small Percentage: + Can persuade consumers to buy -- Can be harmful to image Promotional Percentages Cont...

  14. Advertising Example • SkyMall - Catalog • Cost: $92,600 • 4% of Advertising Budget • Reach: 155,000 passengers per quarter • Positive Attributes: • Captivated audience • Average passenger spends 15 to 30 browsing the catalog • Best possible way to target business travelers

  15. Advertising Example • Business Travelers News – National Magazine • Cost: $404,260/year for 29 issues • ½ page tabloid spread ads • 15% of Advertising Budget • Reach: 54,800 subscribers • Pass along value/word of mouth would account for a much higher number being reached. • Positive Attributes: • Focused directly on corporate business travelers

  16. Public Relations • Budget – $875,000 • Must be of interest to the audience of the medium chosen • Conduits with similar Reader Profiles to Slingbox’s target market • Press releases to mediums advertising in as well, like BTN • Examples of outlets to release information to:

  17. The Wall Street Journal • U.S. Circulation – 1,826, 493 • Average age – 50 • Graduated college or more – 76% • Average household income - $192,324

  18. Fortune Magazine • 830,000 copies circulated monthly • 83% graduated from college • Median household income is $165,200 • 88% traveled by commercial airline in the last year • 91% have a home computer • 85% are employed in the business, industry or the profession

  19. Internet Activities • Links to Slingbox’s website or Banners ads on TiVo's website Cross promotion effort • Banner ads on Business Travelers News Online, Skyscraper - $1,840 Monthly • Travelocity

  20. Sales Objectives • It is projected that in its first year of business Slingbox will sell to five percent of its total target market. • Therefore sales in its first year will total 175,000 units with sales of $43,750,000 in 2006. • Project a slight increase in sales in following years

  21. 3 Year Projected Income Statement

  22. NPV, Payback Period and IRR • NPV - $1,459,619.57 • IRR – 27.96 • Payback Period – 2.19 years, initial invest of 10.5 million in venture capital secured to launch product

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