Montana Vehicle Emergency Kit

1. Montana Vehicle Emergency Kit Montana Safety Equipment

2. LEFT OUT IN THE STORM? Be prepared and protect those you love with a Made in Montana Roadside Emergency kit, brought to you by Montana Safety Equipment.

3. Objectives • Increase public safety awareness. • Provide a “made in Montana” emergency roadside kit for Montana drivers. • Get MSE’s emergency kit into 1% of all lone commuter vehicles in Montana. • Kits for 5% of teen drivers. • Kit costs about $56 and can sell for $60, leading to profits of $27,200 (minus advertising expenditures).

4. Target Market • Montana drivers • 973,000 vehicles, 562,000 drivers • Lone commuters • 86% of Montanans drive to work alone. • Parents of teen drivers • 7% of drivers are 16-20 years old. • At the greatest risk for single vehicle accident.

5. Strengths & Weaknesses • Strengths • Common product customized with Made in Montana concept and products. • Contains Montana specific items (for Montana climate). • Creates a sense of safety for consumer. • Weaknesses • Primarily a seasonal product. • Establishing a new company.

6. Opportunities & Threats • Opportunities • Montana population growth (increase from 935,000 in 2004 to 962,000 in 2010) • Timing coincides with increasing promotion of road emergency survival tips. • Can easily modify kit for sale in other states with similar climates. • Threats • Large number of competitors. • Typically a one-time purchase, not a rebuy item.

7. Product Life Cycle • Product market in market maturity stage. • Focus for MSE’s kit is differentiation – Montana Made – in order to capture market share.

8. Contents of MSE kit • Tri-fold shovel • Emergency survival blanket • Three emergency candles • Water proof matches • Kinetic flashlight (shake to charge) • Signal mirror • Whistle • Multi-tool (with screwdrivers, pliers) • Band-Aids • Gauze • Gloves • Three sets of hand-warmers • Jumper cables • Three road flares

9. Target Audience • Working professionals with teenage children. • Commuters who predominantly travel solo. • Approximate age 25-55. • Concerned with safety of self and/or family members. • Wishing to support local “Made-in-Montana” company and products.

10. Purchasing Process • Government’s increasing push for safety awareness and road hazard survival leads more consumers to be interested in this product category. • Purchase typically not an impulse decision. • Parents make purchase for teenage children seeking to ensure survival in case of accidents and for “peace-of-mind”. • Commuters purchase for themselves, or for fellow commuters, also for “peace-of-mind”. • Purchase Made in Montana product, even though cost is slightly higher than market, to support local business. • MSE product available at www.MadeinMontanausa.com, Buffallo Chips, and the Made in Montana store in Helena, as well as local stores carrying “Made in Montana” products throughout Montana.

11. Competitors • asAsseenOnTV.Com • 150 pc emergency kit for 29.95 + 10.95 s & h • (lesser quality) • AccessConnect.Com • 11 pc emergency kit for 29.95 + s & h • (lesser quality) • AAA • 39 piece kit retail for 29.95 + s& h • Red-e vehicle kit • 80 piece kit $259.95 + s& h • (more supplies for survival)

12. Competitor Analysis Comprehensive Kit Low Price High Price Economy Kit

13. Market Dimensions • Market potential is 973,000 vehicles, 562,000 drivers. • Current target of 1% of commuters is approximately 4800* drivers. • Current target of 5% of teenage drivers is approximately 2000** drivers. • Estimated population growth leads to an estimated increase in drivers from 562,000 to at least 579,000 by 2010 (estimating 60% of Montana’s drive). *(562,000 drivers * 86%lone commuters*1%=4833 drivers) **(562,000 drivers * 7%teen drivers * 5%=1967 drivers)

14. Consumers Will: • Become interested or aware of the problem • Use psychological influence of maintaining a state of readiness in case of emergency. • Use social influence regarding safety of loved ones. • Emphasize the winter season as hazardous and the time to purchase is NOW! • Recall and gather info re possible solutions • Emphasis on the comprehensive nature of our product, able to meet the challenges of Montana winter storms—no need to purchase other products, all in one inclusive. • Evaluate alternative solutions – perhaps try some out • Must continue to emphasize the LOCAL attributes of our product. • Decide on appropriate solution • Emphasis on product satisfaction will be so high, they will want all family and friends to carry the same equipment - peace of mind. • Evaluate the decision

15. Strategy Considerations: Product • MSE’s kit is a specialty product that will be treated as a Homogenous Shopping product. • Market is in maturity stage. • Customer service must be kept at very high level. • MSE guarantees kit for 3 years. • MSE supports “Made in Montana”. • MSE can personalize kits for low cost. • Embroidery services available from Montana Correctional Enterprises. • Cultural Sensitivity • Product supports current trend towards emergency safety and survival.

16. Strategy Considerations: Place • Market exposure required is at least 50% of all teen drivers, parents of teen drivers and commuters. • Direct channel distribution • Web-site based order and customer service available. • Direct access • Also linked through Made in Montana web-site. • Indirect channel distribution • Retail sales through stores that carry Made in Montana goods. • School fundraiser option.

17. Strategy Considerations: Promotion • Emphasize safety and peace-of-mind. • Remind consumers of hazards of winter driving in Montana. • Rapidly changing weather means severe winter storms with little or no warning. • Extreme cold, wind, and ice conditions lead to increased accidents. • Remind consumers of the importance of being prepared for emergencies. • Emphasize “Made in Montana” • Encourage consumers to be prepared and to support local businesses.

18. Strategy Considerations: Promotional Blend • Advertising • Through Made in Montana web-site. • Print media in the local newspaper. • MSE business cards with company contact information and web-link. • Personal Selling • Through direct contact with consumers. • Through school fundraiser promotion. • Sales Promotion • Discount on multiple kit purchase. • Fundraiser Options • Schools: 25% of profits returned to schools. • Charity: 25% of profits returned to charity. • Both options include school logo/charity logo embroidery.

19. Strategy Considerations: Price • Demand is relatively inelastic. • Specialty item with few substitutes. • Low mark-up due to primarily direct channel sales. • Customer value impact through promotion • School and charity purchases for “good cause”. • Made in Montana purchases for supporting local business. • List price adjustments for quantity order passed on to consumer.

20. Special Implementation Problems to be Overcome • Company size. • High time investment by all parties to facilitate sales and customer service. • Contact with schools and school organizations with fundraising option. • Contact with local charity organizations and businesses with charity fundraising option. • Regular contact with local “Made in Montana” retailers. • Financial considerations • Small business loans available. • Limited individual resources.

21. Sources • Drivehomesafe.com/just_4_u_teens.htm • www.stats.indiana.edu/state_projections_2010.xls • Quickfacts.census.gov/qfd/states/30000.html • www.mdt.mt.gov • www.knowthis.com • www.AsSeenOnTV.com • www.aaa.com • www.accessconnect.com • www.madeinmontanausa.com