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Heated Steering Wheel Cover

Heated Steering Wheel Cover. Mark Allers, President Keith McDermott, VP Technology Craig Kronenthal, VP Human Resources Divesh Patel, VP Finance Olivier Demange, VP Marketing Donald Yeh, VP International Marketing. Board of Advisors.

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Heated Steering Wheel Cover

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  1. Heated Steering Wheel Cover Mark Allers, President Keith McDermott, VP Technology Craig Kronenthal, VP Human Resources Divesh Patel, VP Finance Olivier Demange, VP Marketing Donald Yeh, VP International Marketing

  2. Board of Advisors • David Friedmon: Director, Television Bureau of Advertising • Mark Hallyburton: Director of Technology and Marketing, SMI Sales • Larry Thompson: Thompson Development • Michael Kay: Principal, Armstrong Group • James Kronenthal: CEO Magna-Kron Corporation

  3. Technology • 12 volt car adaptor going through a disjoint connection. • Cover is heated by fiber elements found in electric blankets. • Fiber is covered by synthetic leather.

  4. Patents • Patent numbers 4,549,069 and 5,294,775 deal with heated steering wheel covers. • Neither will require us to purchase the rights (King & Spalding, LLP). • The disjoint connection and the fiber heating system makes our idea unique.

  5. Manufacturer Info. • Imetec (England/Germany) • $17/unit, 2 months for initial batch, turnaround 2-3 weeks/10,000 units • Yung Tien Industrial Co., Ltd. (Taiwan) • $15/unit, 2 months for initial batch, turnaround 2-4 weeks/10,000 units • Sports Leisure International (Maine, US) • $16/unit, 2 months for initial batch, turnaround 3-4 weeks/10,000 units

  6. FINANCE • $300,000 initial seed investment • Operate as Corporation • 25% Equity to President 15% Equity to other 5 Partners • Majority expenses from Marketing ($8000/market) • Sell Product for $30 • Expect profit within 1st year • Projected to breakeven within 4 months

  7. FINANCEYear 1 • Fixed Costs: Marketing: $40,000 Salaries: $20,000 Patent: $10,000 Accounting: $5,000 Rent: $0 Total: $75,000 • Variable Cost: Manufacturing: $15/unit 5% accounted for unpaid/damaged units • Breakeven Analysis: 30(x) = 15(x) + 75,000 + 0.05(30)(x) x = 5556 units

  8. 4 ‘P’s of Marketing • Product  Need: The next step in cold morning comfort • Price: $ 49.95 • Promotion • Place: channel of distribution

  9. TARGET MARKETS 1st year target

  10. FIRST YEAR MARKET • Response rate to TV ads for products around $50 on local cable channels: • “prime-time”: 10-30%  otherwise: 1-5%

  11. SALES FORECAST

  12. Profitability Forecast

  13. Why We’ll Succeed • Thompson Development, Seed Capital • 6-8 Week Delivery Standard • SMI Sales, Partnership, Warehousing and Distribution • Outsource Manufacturing • SMI Sales, Internet Search Optimization

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