LYCOMING COLLEGE

Table of Contents

Executive Summary 3

Company Description 6

Industry Analysis 9

Market Analysis 13

Marketing Plan 19

Management Team and Company Structure 24

Business Plan

Castle Phone Case

Connor McNiff, Matthew McGinley, Kabongo Bukasa, Justin Miller

Operations Plan 33

Financial Projections 40

Appendices

Appendix A 45

Appendix B 46

Appendix C 53

Appendix D 56

Appendix E 59

Executive Summary

IntroductionThe Computer and Peripheral Equipment Manufacturing Industry is currently in the maturing phase. Any growth is being pushed by improving current products in the industry or creating a brand new innovative product. The challenges that the industry faces is that there is always a need for constant technological innovation with the risk of short product life-cycles. The decline in growth in 2009 was due to a decline in the overall economy, and many products are becoming outdated. Cell Phone cases fortunately are not being outdated and are growing in the industry. A gap in the industry is the combination of technology and personalization to a well-protected case.

Company DescriptionPicTech is proposing to operate a 1,800 square foot building in King of Prussia, Pa. Our location is a suburb of Philadelphia which makes is an ideal spot to start a successful cell phone case company. Our Castle case combines long sought after benefits of cellphone cases that consumers

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have previously been forced to choose one or the other. We will offer a well-protected case which can also be personalized with any image, picture or logo that the user wants, this combination is not on the market right now. Our case will be manufactured in China and ship directly to the distributors in the Philadelphia area that have agreed to sell our product. PicTech will face the challenge of getting our brand name out to the consumers and converting consumers from our competitors like Otterbox which is known for protective cases. However by offering the ability to personalize protective cases PicTech will stand out against competitors.

Industry AnalysisPicTech will compete in the Computer and Peripheral Equipment Manufacturing Industry. This industry is in the maturing phase of its growth cycle. Slowing growth is due to many products in the industry are becoming outdated and combined with newer technology.

The industry is a fragmented industry where startups have low barriers of entry but growing into a large company is challenging due to large capital companies that have been established over the years. Success factors include having an innovative product with a reasonable price.

Market AnalysisPicTech will sell their Castle phone cases in Philadelphia County where there are 4,091 male and female college students who are not price sensitive.

PicTech’s sales goals are as follows:

Projected IncomeYear Units Sold Price Sales

2015 4,259 $50 $212,9502016 5,866 $50 $293,3002017 11,799 $50 $589,950

Our product will have a modest start up as it will take some time for consumers to hear about our new innovative product. While we will not have a large number of sales during this time, we will still have some from college students who pride themselves on having the newest technology. As more and more students hear about our product from friend’s sales will rise. Our sales will continue to rise on constant bases. We believe that our biggest sales month will be from December to January when consumers will purchase this product as a gift or purchase the case themselves for a new phone they received for the holiday season.

Marketing PlanThe overall marketing strategy objective of PicTech is to make our target market of 18-24 year old college students who attend one of the 50+ Philadelphia area colleges aware of our product. These college students have a social and active lifestyle and like to personalize their products with images that reflect that. Our promotional plan with be focused on mediums that college students find interesting and not annoying. We understand the growing importance that social media is having on young adults decision making and plan to use that to our advantage. We want our customers to understand that our product solves the fundamental problem of being forced to purchase a new case when you are bored with your phone case design.

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Product Differentiation Only cell phone case that uses an LCD screen and Bluetooth technology. Ability to change the image on one case instead of buying a new case. Only case to focus on protection and individual personalization

The company’s promotional activities will include advertising, personal selling, sales incentives and public relations. In addition there will be a strong focus on social media. By having a presence on sites such as Facebook, Twitter, LinkedIn and Snapchat we will be able to reach a large percentage of our target market where they already are.

Management Team and Company Structure PicTech is led by the cofounders; Connor McNiff, Matthew McGinley, Kabongo Bukasa, and Justin Miller. All four members of the management team are 22 years old and attended Lycoming College. Connor received a degree in Business Administration with a concentration in Marketing. Matthew successfully pursued a degree in Accounting and Business Administration concentrated on Finance. Kabongo obtained a degree in Business Administration with a concentration in International Business. Lastly Justin Miller gained a Business Administration degree with a concentration in Marketing. Each team member has gained experience from various business projects done at Lycoming College, internships and jobs performed in the past.

Operations and Development PlanPicTech will rent the 1,800 square foot building in King of Prussia if the funding for the company comes through. To manufacture the product, PicTech has chosen Shenzhen TVC-Mall Co. LTD. Shenzhen is known for and specializes in making cell phone accessories and parts and has a good relationship with other companies in the United States. After they are manufactured PicTech will sell their Castle Phone cases through distributors located in Philadelphia County.

Financial Projections PicTech’s business plan includes three years of projected income statements, balance sheets, and cash flow statements. The company expects an operating loss for the first two years, which will grow into a reasonable income in the year 2017 of $73.052.

Funding Sought PicTech will be seeking $80,000 in investment capital.

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Company Description

Introduction

PicTech is creating a brand new cell phone case that will combine the benefits of a fully protective case with a LCD screen that allows users to select any image, picture or logo they want and use it on the back of their phone using Bluetooth technology. If the user wants to change the image again they have the freedom to do this using their current case. Our new innovative product eliminates the need to purchase a new case for any personalization that you

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want to add to your case. Equally important is that customers gain this personalization ability combined with extensive protection that can be compared with OtterBox’s technology.

PicTech cofounders are Connor McNiff, Matt McGinley, Kabongo Bukasa, and Justin Miller. All four cofounders are current seniors at Lycoming College in Williamsport, PA graduating with a variety of business degrees. As recent college graduates PicTech’s cofounders will be able to easily relate and communicate appropriately with the target market.

Company History

Connor McNiff, a cofounder of PicTech was admiring a friend’s cell phone case that displayed team photo in 2013. After talking more with his friend admitted that he had three other cases with different pictures that he interchanged. After that talk with his friend Connor immediately began wondering how he could solve the problem of having to use multiple cases for multiple images. After a year of research a product was developed and in January of 2014 PicTech’s Castle phone case was incorporated into the market.

Mission Statement

Our goal is to provide a protective case that permits each customer to individually personalize his or her case any way they desire with an innovative LCD screen. We will strive to show we value our customers, employees, and the community as a whole that we are located in.

Tagline

PicTech’s tagline for their Castle phone cases will be “Give your phone its Castle”. This will reinforce our product’s name as well as well as highlight the protective benefit.

Product and Services

PicTech has created a new innovative cell phone case that combines two features of a case that up until now consumers had to choose one or the other. 90% of Americans own a cell phone and they need a Castle cell phone case to protect it. A Castle phone case provides customers with a protective outside covering which 58% percent of consumers asked selected as the number one feature they look for when purchasing a case. In addition users are able to personalize their case by displaying any image, logo or other picture they want on a LCD screen on the back of the case. Any time the user wants to change to a different image they are easily able to change it using Bluetooth technology. This is completely unique to a Castle phone case. Our customers use one cell phone case to display as many images as they want instead of being forced to purchase multiple cases. With over 97% of Americans owning cell phones1 there is a large market for our product.

Current Status

1 "Increasingly Plugged in Cell Phone Users Spell Opportunity." Home Textiles Today, 2010.

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Completed MilestonesJanuary, 2014

- Completed first screen assessment- Organized concept statement after doing research

February, 2014- Gathered feedback about concept statement from professionals in the industry- Wrote company description- Created a consumer survey- Sent survey to individuals in the target market- Created an analysis report detailing the responses from the consumer survey- Conducted industry and market analysis- Developed a marketing plan for the product

March, 2014- Organized a management plan for the company- Developed an operations plan- Developed future projected financial statements for the company

April, 2014- Completed executive summary- Created a draft of the completed business plan- Presented complete business plan to a staff of experts

Milestones to Be CompletedMay, 2014

- Find an investor willing to help the company- Contact manufacturer to discuss design idea

June – October, 2014- Meet with manufacturer in China- Test sample product- Contact and meet with distributors to sell product

November - December, 2014- Begin implementing marketing plan- Lease out office building for management team

January, 2015- Open management office- Product at manufacturing facility will begin

Funding Sought

PicTech will be seeking an $80,000 investment for a 20% stake in the company.

Legal Status and Ownership

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Pictech will operate as a Limited Liability Corporation in the state of Pennsylvania. It is currently owned by a marketing professional, financial professional, and two management professionals. A more detailed schedule of ownership can be found in “Company Structure” section of the business plan.

Industry AnalysisIndustry Definition

PicTech will compete in the “Computer & Peripheral Equipment Manufacturing” industry. This industry comprises of products such as, printers, monitors, keyboards, mice, and other electronic accessories. Top companies in the industry through sales are Samsung Electronics Co, Apple Inc., Hewlett-Packard Company, International Business Machines Corporation and Hitachi, Ltd. The largest segment of the industry is comprised up of computers.

Industry Size (Global Revenues) (values in $ billions)

Year 2006 2007 2008 2009 2010Value 486.3 513.7 540.1 534.4 590.7Growth 5.6% 5.1% (1.1%) 10.5%

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Industry Size (United States) (values in $ billions)

Year 2005 2006 2007 2008 2009Value 50.1 53.5 57.3 59.7 63.3Growth 6.8% 7.0% 4.2% 6.0%

Industry Forecast

2

Industry Summary

The Computer and Peripheral Equipment Manufacturing industry is currently in the maturing phase. Any growth is being pushed by improving current products in the industry or creating a brand new innovative product. The challenges that the industry faces is that there is always a need for constant technological innovation with the risk of short product life-cycles. The decline in growth in 2009 was due to a decline in the overall economy, and many products are becoming outdated.

Industry Characteristics

Industry Structure

The computer peripheral equipment manufacturing industry is a fragmented industry. There is a wide variety of products due to rapid changes in technology. Barriers to entry are fairly low in

2 "Computer Peripheral Equipment Manufacturing." Hoovers. Accessed January 28, 2014

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the industry as a small scale business with one product but as a whole the industry is dominated by a few large competitors.

Global Market – The data presented shows a decline in consumer spending due to lowering costs but revenue is expected to rise 3.4% due to stronger exchange rates.

Impact of new technology – Technology is always changing and improving which helps the market expand further. According to the EPA the average life of a cell phone is 18 months. 3 With changes in consumer taste companies must try to constantly improve products to keep up with demand.

Buyer Power – The industry is driven by the consumer. Changes in style, quality, and product specification put brand loyalty at a low level. This factor makes price sensitivity high with many products of similar kinds. Brand awareness is geared more to the manufacturer of the product rather than the retailer.

Nature of Participants

The industry consists of many firms that range from large companies that are easily recognized offering a wide variety of products to companies that are not easily recognizable who offer more centralized products.. The most popular companies in the industry are Samsung Electronics Co., Apple Inc., and Hewlett-Packard.

Segmentation

The industry is split up into three main product segments.

Product % of MarketComputers 43.3Peripherals and Devices 39.2Storage Devices 17.6

3 "Life of a Cell Phone." EPA.Gov. Accessed February 4, 2014. http://www.epa.gov/osw/education/pdfs/life-cell.pdf.

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4

Industry Ratios

Inventory Turnover

Inventory Turnover 4.59Total Assets to Sales 82.0%EDITDA to Sales 5.1%Quick Ratio 1.22Current Ratio 1.93

Balance Sheet Ratios

Cash 15.4%Accounts Receivable 24.5%Inventory 18.4%Total Current Assets 64.6%Property, Plant & Equipment 9.1%Other Non-Current Assets 26.4%Total Assets 100%

42011.”Computer Storage & Peripherals Industry Profile: Global.” Computer Storage & Peripherals Industry Profile: Global 1. Business Source Premier. EBSCOhost

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Accounts Payable 16.7%Total Current Liabilities 33.5%Total Long Term Liabilities 18.4%Net Worth 48.1%

Key Success Factors

Innovative Technology. It is vital that any new product in the industry must be eye catching to consumer.

Price. The level at what products are priced compared to competitors is an important factor in the industry. Many products in the market are similar, so pricing that appeals to the consumer and beats the competition in important to be successful due to price being elastic.

Industry Trends

Favorable

The growth of mobile phones and portable computers creates new windows for peripheral equipment manufactures. Products include 3D printing as well as non-desktop PCs.

Electronics are now becoming a necessity rather than a luxury to users.5

The growth of wireless technology has added to consumers’ expectations of about mobility. Our product takes a photo frame sitting at home and puts it in the hands of the consumer.

Unfavorable

Need for constant technological innovation. High risk in products having a short life-cycle.6

Price per product has been decreasing over time due to advancements in technology. This has also affected the total market growth.7

Marketing Analysis

Market Segmentation

5 "The Transformation of Manufacturing: Weekend Reading - Deloitte Risk & Compliance - WSJ." Wall Street Journal. Accessed February 06, 2014. http://deloitte.wsj.com/riskandcompliance/2013/12/20/the-transformation-of-manufacturing-weekend-reading/?KEYWORDS=smartphone+trends.6 Rampell, Catherine. "Luxury, or Necessity?" Economix Luxury or Necessity Comments. February 9, 2009. Accessed January 07, 2014. http://economix.blogs.nytimes.com/2009/02/09/luxury-or-necessity/?_php=true&_type=blogs&_r=0.7 Smith, Gavin. "Computer Peripheral Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated." PRWeb. December 16, 2013. Accessed April 07, 2014. http://www.prweb.com/releases/2013/12/prweb11422153.htm.

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The most common way to segment the industry is by computers, peripherals and devices and storage devices as shown below. 8

Target Market Selection

8 011. “Computer & Storage & Peripherals Industry Profile: Global.” Computer Storage & Peripherals Industry Profile Business Source Premier EBSCOhost

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Our Castle case designed by PicTech will target men and woman who range in age from eighteen to twenty-four. Geographically they will live in the suburban Philadelphia area. These individuals we selected will be college aged and attend one of the many Universities that are located in the Philadelphia area. As college student these individuals are often concerned with personalization and innovation.

Industry Analysis – The research and data provide sufficient evidence that young adults are interested in technology and have a desire to personalize their products that they purchase.

Additional Evidence – According to a recent study by BigResearch nine out of ten Americans have cell phone, this figure combined with our own survey of our target market that showed a majority use a cell phone case for their phone leads us to believe our product will be successful.9

Personalization – Our target market age group is increasingly concerned with the ability to personalize the products they purchase to fit the lifestyle they live.10

Trendy – Cell phones are becoming more than just a means for communication and now turning into a fashion accessory.

Target Market Size1) Geographic: For Philadelphia County the total population is 1,526,0062) Demographic:

a. Age- The total population for people aged 18-24 year olds in Philadelphia is 197,961. This information comes directly from the United States Census

b. Education – 55.1% of those aged 18-24 in Philadelphia have at least some college completed. With 42% still enrolled and 13.1% having a bachelors degree or higher.11 55.1% of 197,961 is 109,077

3) Behaviorala. Price Sensitivity – Of the 109,077 students who are that of our age group and are

enrolled in college we will begin by targeting 27,270 students. This is based on the figure from our consumer survey which showed that roughly twenty-five percent of the participants have paid over forty dollars for a cell phone case. This figure is a conservative number that we believe that we can exceed.

4) Determine total size in dollars 100(Price of our Product) * 27,270 students (target market size)

5) Total Size in Dollars for Next Three Years – We believe we will get 15% of the market the first year and believe we will have a. Our fifteen percent figure is based on research shows OtterBox currently has a 23% percent share in the market, which we believe conservatively we will start at fifteen percent in our geographic area.12 27,270 x 15% equals 4,091. We believe we will have a 30% growth rate the next two years. We believe

9 "Increasingly Plugged in Cell Phone Users Spell Opportunity." Home Textiles Today, 2010.10 Davie, Ronald "Mobile Phone Ownership and Usage among Pre-adolescents Telematics and Informatics" 2004

11 United States. Census Bureau. Accessed April 04, 2013. http://factfinder2.census.gov/faces/nav/jsf/pages/community_facts.xhtml.12 Cleveland, Donna. "Otterbox Acquires LifeProof." IPhone Life Magazine. N.p., 22 May 2013.

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this is a reasonable growth rate given the uniqueness of our product. In addition our first sales will not be too high to start so any growth will be a dramatic percent change.

a. 2015 – $1,363,500b. 2016 – $1,568,025c. 2017 – $1,772,550

Buyer Behavior The following factors effects Castle’s target markets buying decisions:

Cost – Cost is extremely important to consumers when purchasing a product like a cell phone case. When asked to rate each characteristic based upon importance cost was ranked third most important. Twenty-three percent of the participants answered that cost was the most important factor when purchasing a case. Additionally almost Thirty percent of the students listed it as the second most important characteristic. This information leads us to believe that we must have a fair price in order to attract customers, however price is not the most important factor that consumers consider when purchasing. Therefore our higher price will not lose us potential consumers. This is reflected in a study done by the NPD group which found that there was a 32% increase in mobile phone accessories as consumers are willing to spend more to protect their Smartphone’s.

Style - Style was shown to be the second most important factor overall when considering purchasing a cell phone case. This characteristic received nineteen percent of the first place ratings as well as thirty percent of the second place ratings. A survey done by the NPD group said 49% of those asked find style, the color and aesthetics, of the case as the most important attribute for a mobile phone case.13

Personalization – Similar to style personalization was selected as the least important when selected a product. Only eight percent of the participants surveyed listed personalization as the most important with sixty percent of the participants actually listing it as least important. We believe that this has a great deal to do with the fact that there is currently no phone on the market that offers this technology therefore there is a knowledge gap. In addition we believe that adding the ability to personalize a durable case will give us a competitive advantage over our competitors. In addition to our survey personalization was also listed as one of the five important things to look for when purchasing a cell phone case in an article on Ebay.

Durability - Durability was the characteristic that was selected as the most important characteristic that was desired when purchasing a cell phone case. Fifty-eight percent of the participants selected durability as the number one important characteristic they look for. Additionally only four percent of the participants selected durability as the least important. 14 Our protect will be one of the toughest cases on the market which is proven to be valuable to the consumer as it was the number feature to look for in both our survey as well as Ebay’s article on choosing a cell phone case. 15

13 "The NPD Group: Mobile Phone Cases." The NPD Group: Mobile Phone Cases Lead 32 Percent Increase in Mobile Phone Accessories Sales. NPD, 21 Aug. 2012.14 Connor McNiff, “Consumer survey PicTech” 25, January, 201415 "5 Features to Look for in a Cell Phone Case." Http://www.ebay.com/gds. EBAY, 20 Aug. 2013.

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Competitor Analysis

Direct Competitors There are currently no cell phone case companies that offer a digital screen on the back of their cases. However many cell phone case companies are offering the ability to customize the cases they offer with either a graphic, logo or image. For example online companies like Vista print and Kodak allow customers to print any picture a customer wants on a cell phone case. Customers can choose a cheaper plastic case or a harder rubber and more expensive case. In addition companies like OtterBox and Lifeproof stays away from personalization and instead focuses on protection by offering more expensive sturdy cases. All four of these companies have only been able to meet one of the customers’ needs either protection or personalization. Castle will succeed by offering a sturdy case that has the ability to be personalized with any image, logo or graphic, which college-aged students in Philadelphia will find value in. As a result Castle will become an established name in the industry giving us a competitive advantage.

Indirect Competitors One main feature that a cell phone case provides is protection to the phone. Therefore there are many indirect competitors for our company to consider. For example woman’s accessories, products such as wallets and purses that offers a built in area for your cell phone offer. Some customers believe that this will offer enough protection and eliminates the need for a case. Other indirect competitors are companies who offer clips or other devices to hold your phone when you are not using it. Companies like Amzer, offer Cell Phone Lanyards to provide a hands free cell phone holder.16

Future Competitors We are introducing technology to a product in a new innovative way. Any time that a new product or new innovation to a product is introduced there will be competitors who try to make your product irrelevant and gain your customers. As mentioned in the California Management Review one way to deal with new competitors is by building barriers that make it hard for them to become relevant. Established cell phone case companies like OtterBox could copy our technology and implement it onto their cases. Thus we would no longer be able to say that our product is unique. It is because of this threat that we believe first mover advantage will be critical in building our brand recognition.17

Estimate of Annual Sales and Market ShareStep 1; Number of Customers:

16 "Amzer." Http://www.amzer.com/Amzer-Detachable-Cell-Phone-Neck-Lanyard-Black-P84868.htm. Amzer17 Aaker, D. A. (2012). Win the Brand Relevance Battle and then Build Competitor Barriers. California Management Review, 54(2), 43-57

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Castle will have 4,091 customers (27,270 x 15% equals 4,091). These calculations are based off research and believed to be a reasonable estimation.Step 2: Annual sales Our case will be sold for $100 dollars at retailers, which was based on the costs that it takes to make the product as well as the other cases in the industry. While there are many cheaper options they will not have the features that our product has. We our selling our product wholesale and therefore will make only $50 off each one sold after all costs are accounted for. That multiplied by our target market equals $204,550

Cell Phone Case Sales ProjectionOur product will have a modest start up as it will take some time for consumers to hear about our new innovative product. While we will not have a large number of sales during this time, we will still have some from college students who pride themselves on having the newest technology. As more and more students hear about our product from friend’s sales will rise. Our sales will continue to rise on constant bases. We believe that our biggest sales month will be from December to January when consumers will purchase this product as a gift or purchase the case themselves for a new phone they received for the holiday season.

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2015 Projected Monthly Sales Cases SoldJanuary -

February -

March 168

April 269

May 279

June 265

July 330

August 356

September 403

October 506

November 702

December 813

Total 4,259

Projected IncomeYear Units Sold Price Sales

2015 4,259 $50 $212,9502016 5,866 $50 $293,3002017 11,799 $50 $589,950

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Marketing Plan

Overall Marketing StrategyThe overall marketing strategy objective of PicTech is to make our target market of eighteen to twenty-four year old college students who attend one of the 50+ Philadelphia area colleges of our product. These college students have a social and active lifestyle and like to personalize their products with images that reflect that. Our promotional plan with be focused on mediums that college students find interesting and not annoying. We understand the growing importance that social media is having on young adults decision making and plan to use that to our advantage. We want our customers to understand that our product solves the fundamental problem of being forced to purchase a new case when you are bored with your phone case design.

Our marketing strategy is designed to get our brand name and product out to as many 18 to 24 year olds as quickly as possible. This will require a lot of marketing techniques that will involve all our employees. We will have to market our product in a way that explains the benefits and the rationale behind our higher price. We firmly believe that once a customer buys a Castle phone case they will be “walking advertisers” and it will result in their friends becoming customers as well.

Our goal as a company is to gain a substantial share in the industry. Currently there are competitors who are well recognizable names in the industry that we believe we can overtake. Our tagline “Give your phone its castle” will appear on all our marketing materials to reinforce both our name as well as the benefits of our product. We understand the importance of trends with this age group and know that new technology products our introduced every day.

PositioningOur product’s positioning strategy will involve repositioning the competition. This strategy is executed by introducing a direct attack on a competitor’s strength that may put its products in a less favorable light or even force the competitor to change its positioning strategy.18 Our product is offering a solution to consumer’s problems that our competitors do not offer. Our ability to highlight that our competitor’s strength is only one of our multiple strengths will cause potential consumers to choose our product. Our product offers the ability to personalize a cell phone case multiple times, which is an unmet need in the market.

18 Ferrell, O.C. Marketing Strategy. 5th ed. Mason: South-Western, 2011. Print.

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Product Differentiation Only cell phone case that uses an LCD screen and Bluetooth technology. Ability to change the image on one case instead of buying a new case. Only case to focus on protection and individual personalization.

Product Attribute MapThe chart shown below is a visual explanation of Castle’s positioning strategy and differentiation as they relate to our competitors. As listed there two important features of a cell phone case, they are protection and personalization. As shown below Castle is the only cell phone case that ranks high in first, the ability to offer protection that consumers believe to be necessary for everyday life. Additionally Castle ranks high in the second feature of the ability to be personalized to a customer’s lifestyle choice as the choices change. While some company cases may be higher in protection guarantees our product will offer the protection that customers demand with the added advantage of personalization that no other competitor offers.

High

Low

Low High

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Castle

Amzer

OtterBox

Protection

Personalization

LifeProof

Vistaprint

Kodak

Pricing Our product’s price was determined by cost-based pricing. This pricing is established by adding a markup percentage to a product’s cost. We chose this pricing strategy because we want our customers to know that they are getting their money’s worth. As a company we want to make a profit to be successful but we also want our customers to know they are getting a quality price. Our pricing breakdown is listed below.

$16 – Cost of Production$50 – Wholesale price $100 – Retail Price

Promotional ActivitiesOur promotional plan will be include the following activities to reach our target market audience in a variety of mediums.

Advertising: Castle is a new product that consumers must be made aware of as soon as it comes to market. Our advertising will include print and broadcast media. We will distribute flyers explaining the benefits and other valuable information around college campus to get our products name to our target market. We will also purchase ad space in the newspapers of local colleges. We will purchase ad space throughout the year in The Triangle which is an independent paper at Drexel University. We will be sure to put ads in their special edition issue which their website says is a great opportunity for advertisers to reach more of the Drexel community than a regular issue.19 One unique advertising campaign for us will be to offer 5-10 students at the eight closet colleges to our location free cell phone case to be “walking advertisements” for us.

Personal Selling: In order to gain a presence in the industry we will attend trade shows that our competitors are attending. This allows us to maintain with the current trends and be available for potential consumers. We will explain the benefits of our product and how it is better than any product that is available. These trade shows will give our product the exposure that is needed to gain the market share we need. Both business professionals as well as members of our target market will be able to experience our unique product. To start we will attend regional mobile phone conventions like those held in Boston and Trenton. However as we gain market share and brand recognition we will be able to attend the MobileCON event in Las Vegas which will put us right side by side with our competitor’s and leaders in the market.

19 "About." The Triangle. Drexel University, n.d. Web.

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Sales Incentives: Our product will require sales incentives to grab the attention of our target market as it is in the beginning stage of the life cycle. We will offer discounts to students who show their school Identification and provide a school email when purchasing the case. We will in turn use the email to keep in contact with our consumers and keep them aware of our products.Public Relations: Our public relations section will include news releases that will be submitted to newspapers that our target market will see. We will also release brochures that undergrad students can pick up for free that explain our product. In addition we will connect with local colleges and offer our cases as prizes for giveaways at sporting events. One example will be we will provide ten cases as prizes for giveaways at Temple and Drexel’s homecoming events. Both of the school’s homecoming events are attended by a majority of students and alumni, which will provide us with free advertisement and get our product out to students to tell their friends about. Our company, PicTech understands how beneficial having a positive image in the mind of consumers is. To increase positive image we will donate to a no texting while driving campaign. This is an increasing problem with the members of our target market. A portion of the money we receive from every phone purchase will go to the campaign. We will also actively promote the dangers of texting while driving.

Social Media: Social media will be a crucial component of our marketing campaign. A study by the Journal of advertising research showed that social media played many important rolls in purchasing decisions, including about 20% who said that social media “introduced me to a brand or product that I didn’t know about”.20 We believe that a successful social media campaign will inform and ultimately persuade our target market to purchase our product.

Facebook- Our Facebook page will inform our customers about our company and they can learn about our product. We will offer contests and giveaways to create a buzz for our page and product. One contest will be to see the craziest picture that people use on the back of their phone. The pictures will be judged by likes and participants must like the page to like a photo.

LinkedIn: We will use LinkedIn to connect with colleges in the area and promote our company to our target market. Undergraduates are being encouraged to create and maintain LinkedIn accounts so this is a valuable website for us to connect with.

Twitter: We will use Twitter to keep our consumers up to date with information about our company and product. Similar to Facebook we will use our twitter to connect directly with consumers. Users of our product can tweet pictures or questions to our account and we will respond directly the best that we can. We will address any concerns or problems with the product to keep our positive image.

Snapchat: We will use Snapchat as a way to spread our brand name and get ourselves in the minds of students. Before we officially launch our product we will set up a Snapchat and along with other social media platforms have people Snapchat pictures that they wish they could display on their case. We will offer the two best pictures we receive one of the first cases that we produce. We will then tweet and post some of the pictures we

20 Powers, Todd, and Dorothy Advincula. ""Digital and Social Media In the Purchase Decision Process: A Special Report from the Advertising Research Foundation." Journal Of Advertising Research 52, no. 4 (2012): 479-89

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receive to get our name out there. We can then send Snapchats to all of the followers we gained. An article published by a Senior Social Media Specialist at the University of Michigan found that almost half of college-age students said they would open a Snap from a brand they’d never heard of, and 73% said they would open a brand from a brand they did know.21 If done right Snapchat can be used as an interactive and unique marketing tool

Annual Marketing Budget

Item Budget

Promotional Flyers (5,000)22 $11,250

Convention Booth (display materials)23 $600

Newspaper Ads24 $250

Website25 $2000

Contest Giveaways $640

Product handouts $2000

No Texting Campaign $10,000

Total $26,740

21 Frazier, Hillary. "Is Snapchat For Your Brand?" World's Largest Professional Network. LinkedIN, 28 Mar. 2014. Web22 "OfficeMax Copyandprint." Posters. 2013. . http://www.staples.com/sbd/content/copyandprint/posters.html.23 "What Is the Average Cost to Attend a Trade Show, Convention or Conference?" Www.findthebest.com. February 2011.http://trade-shows.findthebest.com/24 "About." The Triangle. Drexel University, n.d. Web25 "How Much Should A Small Business Website Cost in 2014?" The Executionists. 20 Mar. 2014.

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Management Plan

Introduction

PicTech’s management philosophy revolves around working hard, playing Hard and self-expression. Many say it. We live it. PicTech shares the hard-working, entrepreneurial spirit of their founder and their focus on innovation and we put it to use all day, every day. We make it fun to passionately pursue our vision of "what's next." Our commitments to customers, to one another and to our community are unmatched, so we don't settle for good. We seek greatness. As a company, PicTech will select employees based on their qualifications for the job and their commitment to creating new innovations in the consumer the computer and other peripheral equipment manufacturing industry.

Management Team

Connor McNiff, Marketing and CEO, Age 22CEO of the company responsible for marketing, sales, and properly advertising for the company. Connor received a Bachelor of Arts Degree in Business Administration with a concentration in Marketing. While at Lycoming College, Connor served as a leader at the Lycoming Recreation center as well as a member of the Men’s Soccer team. He further learned leadership skills by serving as captain of the team his senior year. The experiences at Lycoming have taught him the value of teamwork and the benefits a good leader can bring. Connor was able to gain marketing experience by working with class members and staff from the Williamsport Home to create a Marketing plan for a new physical rehabilitation center. Connor is an avid cell phone user and has a problem himself buying too many cases as he gets tired of one case. He is a firm believer that with the company’s members and proper marketing this company will set a new standard in the industry.

Matthew McGinley, Cofounder and CFO, Age 22 Responsible for the financial management of the company including. Other duties include raising capital for the company. Matt received a Bachelor of Arts Degree in Accounting as well as Business Administration with a concentration in Finance. While at Lycoming College, Matt was an active member of the Accounting Society as well as a four year member of the football team. These experiences taught him how to be a team member on and off the field. Matt gained experience with managing and handling money through working as an intern at the Williamsport Area School District tax off. He also learned how to control a staff through being a manager for the Tri-Valley Community Pool. He was responsible for preparing and handling budgets to estimate costs, and improving the accuracy of budget forecasts for the facility. Matt firmly

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believes in the company product and that the members of the company have all the tools to make the company.

Justin Miller, Cofounder and COO, Age 22Responsible for managing the company's day-to-day operations and reporting them to the chief executive officer. His duties also include organization of strategic imperatives, history, and culture, as well as the strengths and weaknesses of the executive director. Justin received his Bachelor of Arts Degree in Business Administration with concentrations in Marketing from Lycoming College. He took advantage of many opportunities at Lycoming College which he believes will help him in contributing to the company’s future success. Justin’s 4 years as a men’s varsity basketball player helped him to learn to work with teams, and his one year of captainship taught him how to be a leader. Justin also worked as a marketing intern for the Lycoming College Athletic Department, which helped him adapt to the industry. For this job, he was responsible for marketing the varsity sports on campus, in charge of game day halftime promotions, and was tasked with organizing a fundraiser. Justin has a passion for success and believes that the company could be an industry leader.

Kabongo Bukasa, Cofounder and CCO, Age 22Responsible for customer service, communicating with company employees and taking charge of customer experience metrics. Kabongo received his Bachelor of Arts in Business Administration with concentration in International Business from Lycoming College. He is able to speak four different languages including French. He was able to achieve teamwork experience from playing football and working on group projects assigned in his business courses. While at Lycoming College he had the opportunity to intern at Allstate insurance. At his internship Kabongo was responsible for maintaining customer records, using automated systems, answering customers' questions about products, prices, availability, or credit terms, using complex software to find customer information. Kabongo has a passion in sales, helping consumer to purchase the newest product that best identify their identity in the industry.

Skill Profile and Gaps in Management TeamThe following skill profile depicts the most important skills required at the top management team level of the company and where the gaps exist.

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Fin

ance

Mar

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Sal

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Ope

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HR

Adv

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sing

Cus

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Acc

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Web

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Res

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Connor McNiff   x          xMatt McGinley x           x  Kabongo Bukasa

    x  x    

Justin Miller      x   x  Gap 1 0

X = Position Filled, O = Position Vacant

Summary: One significant gap exists in the management team: the Webmaster. This position will be recruited and filled once the company has become stable and started to generate profits. Currently, the company is receiving help from a friend who is skilled in creating web pages. In addition Justin Miller and Kabongo Bukasa are actively learning the skills needed to fill the Webmaster position until the company establishes itself and is able to hire someone for the position.

Ownership and Compensation

Name Position Base Salary Percent OwnedPersonal

Investment

Connor McNiff Cofounder and CEO $40,000 20% $45,000

Matt McGinley Cofounder and CFO $40,000 20% $45,000

Kabongo Bukasa Cofounder and CCO $40,000 20% $45,000

Justin Miller Cofounder and COO $40,000 20% $45,000

Options Pool     20%  

Totals $160,000 100% $180,000

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Keeping with the incubator management type, PicTech determined the base salary pay for each employee to be equal, because each employee invested an equal amount of startup equity in the company. PicTech wants to set the precedent early that individual employees’ growth comes first, so each of PicTech’s original four employees, Connor McNiff CEO, Matt McGinley CFO, Kabongo Bukasa CCO, and Justin Miller COO, each had the opportunity to increase their investment, thus increasing their compensation, but choose to remain equals, despite varying demands and difficulties of jobs. The percentage of the company owned is still directly related the personal investment each person made.

LLC OfficersPicTech is a limited liability company that has four officers in charge of efficiently running the daily operations of the business. These officers are Connor McNiff, Matt McGinley, Kabongo Bukasa and Justin Miller

Other ProfessionalsPicTech relies on the advice, counsel, and encouragement of professionals in our community on an as-needed basis. None of our professional advisors are paid a regular retainer.

Other ProfessionalsJon Muskin, BS, MD, JD, LLM (Tax)26

Attorney, Jon Muskin, is a partner in the Muskin & Farmer LLC intellectual property law firm. Mr. Muskin is a well-known attorney in Philadelphia, Pennsylvania with over fifteen years of experience.

United States Liability Insurance Group27

An insurance group in Wayne, Pennsylvania. The company focuses on underwriting insurance for small businesses and select group of specialty products. USLI is also an A++ rated company.

PicTech Organizational ChartThe senior staff reports to CEO Connor McNiff as shown below. Finance & Accounting, ran by CFO, Matt McGinley, Human Resources and Customer Service, ran by CCO Kabongo Bukasa, and Advertising and Research and Development, ran by COO Justin Miller, and Senior Vice President positions. Webmaster is Vice President position. Each VP will be responsible for their respective employees.

261 “Jon Muskin, BS, JD, MD, LLM (Tax).” Jon Muskin. 2014. Accessed March 2014.http://www.patentstrademarks.com/attorneys/jon-muskin272 United States Liability Insurance Group. "Small Business and Specialty Insurance USLI." Small Business and Specialty Insurance USLI. 2013. Accessed March 2013. http://www.usli.com/.

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Position Descriptions

Finance & Accounting Position

Job Overview:Examine, analyze, and interpret accounting records to prepare financial statements, give advice, or audit and evaluate statements prepared by others. Install or advise on systems of recording costs or other financial and budgetary data.

Tasks: Assist, prepare and/or review Federal, state and local income/franchise tax returns and

estimated quarterly payments. Assist, prepare and/or review all aspects of state and local tax compliance: monthly sales

and use tax, excise taxes, business licenses and personal property tax filings; assist with audits.

Coordinate tax accounting matters with other departments, locations and business units. Respond to Federal and state notices and audit requests.

Demonstrate knowledge & proficiency in current federal, state and local tax laws, regulations and rulings.

Responsibility for coordinating compliance.

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Coordinate insurance coverage, claims and ensure Pictech is properly insured in all areas.

Prepare marketing development funds accruals and reconciliations. Prepare journal entries and assist in monthly close process. Support general accounting needs. Participate in special projects as required.

Qualifications:

Minimum Experience and Education Requirements: Bachelor’s degree in Accounting or FinanceBusiness background with previous experience in the field

Minimum Skills, Knowledge, and Ability Requirements: Mathematics/Reasoning- the ability to choose the right mathematical methods or

formulas to solve problems Oral Comprehension - The ability to listen to and understand information and ideas

presented through spoken words and sentences. Written Comprehension - The ability to read and understand information and ideas

presented in writing. Number Facility - The ability to add, subtract, multiply, or divide quickly and correctly. Deductive Reasoning - The ability to apply general rules to specific problems to produce

answers that make sense. Near Vision - The ability to see details at close range (within a few feet of the observer). Oral Expression - The ability to communicate information and ideas in speaking so others

will understand.

Marketing & Sales Position

Job Overview:Research market conditions on all levels from local to the national level. Gather information to determine the potential sale of our product. While also focusing on competitor’s products including: the distribution outlets, price, number of products sold and marketing techniques used. Create marketing campaigns to ensure the success of the product.

Tasks: Constantly gather marketing research to stay consistent with the ever-changing market

need. Data gathered must be primary and secondary, gathered through questionnaires; phone calls and trade show events.

Prepare presentations to potential clients, internal departments, and field sales associates.

Plan and carry out trade show activities including the development of marketing and merchandising opportunities and the creation of company materials.

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Provide support to Directors and team members, as needed. Actively participate in all interdepartmental communications and activities. Responsible for creating and maintain social media outlets on an ongoing basics Develop advertising materials such as flyers and commercials as well as selecting the

most effective media outlet to use

Qualifications:

Minimum Experience and Education Requirements: Bachelor’s degree in Marketing or SalesBusiness background with previous experience in the field

Minimum Skills, Knowledge, and Ability Requirements: Ability to communicate effectively both orally and in writing Good project management skills Strong interpersonal, teamwork, and leadership skills Good analytical, conceptual and problem solving skills to evaluate business problems

and apply knowledge to identify appropriate solutions Must be self-motivated, flexible, accountable and can effectively handle multiple tasks

at one time Excellent organizational and time-management skills

Management Position

Job Overview:Prepare procedural manuals to allow for management to operate in an efficient and effective manner. Accomplish departmental objectives; conduct work simplification and measurement studies and evaluate all department activities.

Tasks: Analyze data gathered and develop solutions or alternative methods of proceeding. Approve changes of forms and reports. Develop and implement records management program for filing, protection, and retrieval

of records, and assure compliance with program. Gather and organize information on problems or procedures. Design and successfully run studies for possible work place changes. Prepare recommendations for implementation of new systems, procedures, or

organizational changes. Gather feedback from personnel concerned to ensure newly implemented systems or

procedures have success. Plan study of work problems and procedures, such as organizational change,

communications, information flow, integrated production methods, inventory control, or cost analysis.

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Review forms and reports and discuss with management and users about format, distribution, and purpose, and to identify problems and improvements.

Qualifications:

Minimum Experience and Education Requirements: Bachelor’s degree in Management Business background with previous experience in the field

Minimum Skills, Knowledge, and Ability Requirements: Customer and Personal Service - Knowledge of principles and processes for providing

customer and personal services. Administration and Management - Knowledge of business and management principles

involved in strategic planning, resource allocation, human resources modeling, leadership technique, production methods, and coordination of people and resources.

Personnel and Human Resources - Knowledge of principles and procedures for personnel recruitment, selection, training, compensation and benefits, labor relations and negotiation, and personnel information systems.

Chief Operation Officer Position

Job Overview: Provides the leadership, management and vision necessary to ensure that the company has the proper operational controls, administrative and reporting procedures, and people systems in place to effectively grow the organization and to ensure financial strength and operating efficiency.

Tasks: Provide day-to-day leadership and management to a service organization that mirrors the

adopted mission and core values of the company. Bottom Line: Build a beautiful company.

Responsible for driving the company to achieve and surpass sales, profitability, cash flow and business goals and objectives.

Responsible for the measurement and effectiveness of all processes internal and external. Provides timely, accurate and complete reports on the operating condition of the company.

Collaborate with the management team to develop and implement plans for the operational infrastructure of systems, processes, and personnel designed to accommodate the rapid growth objectives of our organization.

Assist, as required, in raising additional capital at appropriate valuations to enable the Company to meet sales, growth, and market share objectives.

Motivate and lead a high performance management team; attract, recruit and retain required members of the executive team not currently in place.

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Spearhead the development, communication and implementation of effective growth strategies and processes.

Qualifications:

Minimum Experience and Education Requirements: Bachelor’s degree in Management Business background with previous leadership experience

Minimum Skills, Knowledge, and Ability Requirements: Excellent personnel skills, with an ability to partner with a dynamic leadership team. Skills should include organizational development, personnel management, budget and

resource development, and strategic planning. Flexible and able to multi-task; can work within an ambiguous, fast-moving environment,

while also driving toward clarity and solutions; demonstrated resourcefulness in setting priorities and guiding investment in people and systems.

Corporate Culture

Castle case is all about self-expression and individuality. PicTech Company strives to be creative, innovative in the industry, and aims to promote self-fulfillment of the employees. That is why at PicTech we strongly believe in creating an Incubator management style for our company. An incubator management style means that our company is personal and egalitarian. We value all our employees equally and expect everyone at every level of management to be able to give and take leadership direction, regardless of perceived status. Our philosophy is that the organization comes second to individual fulfillment of employees. This is because we believe that employee success leads to company success. PicTech Company CEO Connor McNiff makes it his sole duty to make sure all of PicTech employees and affiliate businesses feel like they are on equal standing. In doing so, McNiff creates relationships, partnerships, and friendships that last a lifetime   All of these company attributes creates a culture of expression among our employees that we hope they pass on to our customers. These great company attributes also create a calming effect among the employees that starts at the top, and works its way down, maximizing the amount of work that gets done and puts us in a great position for success.

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Operations Plan

IntroductionPicTech will design a durable cell phone case that uses Bluetooth technology to allow users to display any image, graphic or picture they desire to be displayed on an LED screen on the back of their case.

General Approach to Operations Creating a product that is unlike any competitor’s product is a unique situation. Adding an LED screen to a cell phone case that must also be durable enough to drop means, adding more technology to an accessory for a product that is the most technological item most customers will ever hold. However we firmly believe that this product will be in high demand and have created a unique competitive advantage over our competitors. We understand that our operation plans and procedures must reflect services that will allow for communication and other needed services to our target market.

A big challenge that will face our company will be to instill our company and product into the minds of our consumers. Our product is one that consumers may not yet know that they need. To solve this problem our company will have to operate with a focus on marketing and promotion as well as customer service. Our goal must be first to reach and attract our target market, then we must build and sustain the relationship. This will require support from both the back stage as well as front stage operational personnel.

Back Stage (Behind the Scenes Operations Activities) Human Resources- Will be a crucial member of our company at our office. Human

resources will have many tasks that will ultimately keep the office running as efficiently as possible. One of the most important jobs of human resources will be to keep track and record all of the important files in our company. These files will include information on our personnel in the company as well as information on the companies who will sell our product. As a small startup company we cannot afford a lawsuit against us. This position will be in responsible for keeping records to avoid any trouble that may occur. Human resources will be responsible for the hiring process when additional employees are added.

Financials- Our company will have multiple financial duties that will need to be accomplished daily. These duties will include looking at the external economic trends in our industry, keeping track of the financial records, and meeting our financial goals.

Advertising- Our advertising and promotion strategy is crucial for our company to be able to sell our product. Our company will need to create an eye-catching advertising campaign that shows the benefit of our product over our competitors. Advertising will be done on social media, newspaper and other print advertisements, brochures and “walking advertisements”. In addition our promotions will be another way to increase our brand

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name. Promotions and promotional events must be arranged in a way that always represents our company in a positive way.

Research and Development – Companies like ours that deal in technological items must continue to pursue innovation in our product and our product line to stay viable in our customers mind. This includes expanding from just cell phone cases to possibly tablet cases like the IPad. Our company must always be researching the industry and what is going on externally to be able to be able to innovate or develop new products for our company. The best way to understand what it is customers want for us to develop will be to get their direct feedback. We will frequently send out surveys that asks our customers how our product is working and what they are looking for that is not being offered. We will provide a discount for their next purchase to provide an incentive for a response. It will be the job of R&D to incorporate these responses into our new products.

Public Relation – Contact with our no texting foundation that will choose will be imperative to make sure that each decision they make is consistent with our beliefs. In addition our company must deal with the press that we receive both good and bad to allow for successful growth.

Manufacturing Responsibility- PicTech will be in continuous contact with our manufacturer to make sure standards are met and the best product is being produced.

Front Stage (What Consumers See and Experience) Customer Service – PicTech will provide a telephone number that will be listed on the

website and all of our social media pages for consumers to call for any questions or comments about the product.

Social Media – Our Company understands that social media will be a vital tool for communication with our target market. It will be imperative for our office to stay updated with what our consumers are saying about our product on social media sites. This position will work with our customer service position to solve problems with consumers as they arrive. In addition we will use social media to proactively search for new consumers, which will require creative ideas.

Promotional Tools – Other promotional tools will be used to spread our companies name out to the public. The product will be displayed at various trade shows and cell phone conventions.

Distribution – Our Company will be in contact with all of our distributors. This employee will be in charge of contracts with current distributors as well as actively searching for new locations where our product will sell successfully. This will require multiple phone calls as well as face-to-face meetings to make sure the product is being presented correctly to our standards.

Training Programs – Sales representatives at our distribution centers must be trained on all the features of our products to explain the benefits to our customers. Training programs will be administered by an individual from our company to make sure consistent standards are set for each of our distributers.

Inventory PicTech will not have inventory of our Castle phone cases as all sales will be done through a distributor.

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Hours of Operations PicTech will be open with a staffed office building every Monday thru Friday from 9am to 5pm. Our management positions will be expected to work from 9am-5pm completing their duties. Additional hours may be required to attend promotional events, or sales calls and meetings. In addition we will also employ a customer service hotline staffed with an employee to assist with any problems that may arise with the product. This position will work the same 9am-5pm hourly schedules from Monday thru Friday as well as 12pm-5pm on Saturday.

Operations Flow Diagram

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Our operations flow is shown above explaining the steps taken to produce each Castle phone case. PicTech will design the protective case with the LCD screen on the back. After that the design will be sent to our manufacturer Shenzen in China. Shenzen will create the product set but our design and standards. From there Shenzen will ship the products directly to the retailers who agreed to sell the case. Upon purchase the case will be assembled and used by the customers.

Business Location PicTech will operate from a single building at 520 Freedom Business Drive in King Of Prussia, PA. This location is right outside the University heavy Philadelphia area. Approximately 90 colleges and universities in Greater Philadelphia provide higher education for roughly 368,000 full and part-time students.28 This provides us with a variety of potential consumers.

Advantages of Location

Ideal Community – King of Prussia is a historic city that is experiencing continued growth. The King of Prussia mall, which is the largest mall in terms of size and space, is located here. This brings numerous tourists and shoppers to the aware every year.

Suburb of Philadelphia – Our location is less than thirty minutes from the City of Philadelphia. This allows our company to enjoy the benefits of a city life with a variety of customers but be able to run our operations in a nice community setting.

Ideal Transportation – Due to the popularity of the mall our company will have easy access to many transportation services. Currently four major highways meet in the center of King of Prussia. In addition there is easy access to trains and buses both for our use and for customers to travel on.

Proximity to Universities – Our location is within driving distance of over fifty plus Colleges and Universities. This will provide us with easy access to a large potential market.

Established Business District – The King of Prussia area has long established itself as a place for business. There are over one hundred stores to shop in the area, which draws potential consumers to the area. Multiple stores are technology stores that our product could move into as the company grows. 29

Facilities and Equipment

Office

PicTech will have an office building located at 630 Freedom Business Center Drive King of Prussia, PA 19406. The office is in a prime location as PicTech plans to sell its products in this

28 "Welcome to Greater Philadelphia." Colleges & Universities -Web.29 "Information for King of Prussia, PA & Surrounding Areas. Featuring Information about Shopping, the Mall, Dining, Entertainment, Visiting or Moving to King of Prussia, Pennsylvania." Information for King of Prussia, PA & Surrounding Areas. Featuring Information about Shopping, the Mall, Dining, Entertainment, Visiting or Moving to King of Prussia, Pennsylvania.

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area. . The office will be 1800 sq. feet which will be large enough to accompany the PicTech startup business. Accommodations include a receptionist, conference rooms, and continuous IT maintenance and support. 30

Manufacturer

PicTech has decided to use Shenzhen TVC-Mall Co. Ltd to manufacture the company’s products. The company is located at Rm 1108-1110, A tower, Shenfang Building, Huaqiangbei Rd, Futian District, Shenzhen, China 518031. They specialize in making cell phone accessories and parts.

Why the Manufacturer was Chosen

The objective of PicTech was to find a manufacturer who could produce our cell phone case at the highest quality and for the price that the company was comfortable with in our to reach their target market.

Order Quantity. Shenzhen TVC-Mall Co. Ltd is able to produce up to 12,000 products per month. This quantity allows PicTech to grow at its own pace while having high confidence that the manufacturer will always be able to keep up with demand.

Expertize. Shenzhen has the experience and knowledge to produce cell phone products at a high quality while meeting deadlines. With these characteristics PicTech believes that the manufacturer will be able to handle any orders.

Main Market. Shenzhen main market in North America where they conduct 25% of business which gives them plenty of experience in this market.

Price. The price to manufacture with Shenzen was very reasonable compared to other manufactures in the industry.

Research & Development. Shenzhen includes a team of 20 engineers that are available for research and development which will help improve PicTech technology in an industry that relies heavily on technology advancements. 31

DistributionPicTech will begin selling cellphone cases in the universities book stores and local Verizon stores. Some of the Verizon stores in Philadelphia, Pennsylvania have agreed to work with PicTech on a trial basis to sell the cases and see how well the product will do on the shelves. PicTech will focus on distribution where it is most visible to the target market.

Development Status and Tasks

30 "King of Prussia Executive Suites." Craigslist. February 3, 2014. Accessed April 07, 2014. http://philadelphia.craigslist.org/off/4384228281.html.31 "Shenzhen TVC-MALL Co., Ltd." Alibaba. Accessed April 07, 2014. http://tvcmall.en.alibaba.com/contactinfo.html.

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TimelineIf funding is obtained, PicTech will launch on January 1, 2015. The following milestones have been completed and remain to be completed to open the office and allow Shenzhen TVC-Mall Co. LTD to start production.

Completed MilestonesJanuary, 2014

- Completed first screen assessment- Organized concept statement after doing research

February, 2014- Gathered feedback about concept statement from professionals in the industry- Wrote company description- Created a consumer survey- Sent survey to individuals in the target market- Created an analysis report detailing the responses from the consumer survey- Conducted industry and market analysis- Developed a marketing plan for the product

March, 2014- Organized a management plan for the company- Developed an operations plan- Develop future projected financial statements for the company

April, 2014- Complete executive summary- Create a draft of the completed business plan- Present complete business plan to a staff of experts

Milestones to Be Completed

May, 2014- Find an investor willing to help the company- Contact manufacturer to discuss design idea

June – October, 2014- Meet with manufacturer in China- Test sample product- Contact and meet with distributors to sell product

November - December, 2014- Begin implementing marketing plan- Lease out office building for management team

January- 2015- Open management office- Product at manufacturing facility will begin

Challenges and RisksThe following changes and risks are associated with PicTech televisions:

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Not exceeding Budget – Since we are only in the startup stages of our company, we are presented with a challenge of spending money. We cannot stray away from our budgeted plan in order to keep our business running.

Software Glitches – Any type of technology that is put into technology always has the chance for glitches to operation. Our company will work hard to keep these unforeseeable breakdowns from even happening.

New Phone Designs – Cell phones change shapes and size every year so one case may not fit new types of phones. Our department will work hard with our manufacturer to ensure that our design is always up to date with the current popular types of phones.

PicTech is confident that its product and company has the abilities to keep these issues at a minimum and solve any problems that arise quickly and efficiency.

CostsDesigned and Development Budge

The budget associated to bring PicTech to its opening date is as follows:

Items

Office and Computer Equipment $10,000Sales and Marketing Materials $26,740Patent Cost32 $7,000Trademark Cost $225Total $43,965

Intellectual Property

Utility Patent – PicTech has filed for a patent for its cell phone case that includes an LCD screen.

Trademarks – All of PicTech’s distinctive logos, and taglines, have been trademarked.

32 "File Online." File Online. Accessed January 10, 2014. http://www.uspto.gov/patents/process/file/.

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Financial Projections

Source and Uses of Funds

SourcesManagement Team Investment $ 180,000 Total Funds Committed $ 180,000 Total Funds Required $ 211,057 Total Funds Needed from an Equity Investor

$ 31,057

CostsAttorney Fees $ 5,000 Office Equipment $ 10,000 Marketing $ 26,740 Office Lease $ 7,092 Supplies $ 5,000 Patent $ 7,000 Trademark $ 225 Cash to Cover First Year Loss $ 150,000 Total Costs $ 211,057

Assumptions

Income Statements

1. Sales forecasts are based on the analysis in the “market analysis” of our plan. Sales are expected to increase by % over the next three years.

2. Cost of Goods Sold: 32.47% which his based upon the industry average.3. Compensation of the management team is described in “Ownership & Compensation”

section of our plan. 4. Employee benefits are estimated at 26% of salary.5. Marketing expenses are based on the marketing budget section of the plan.6. Payroll taxes are 9% of wages.7. Depreciation is computed on a straight-line basis. Useful life of the equipment is 10

years. 8. Supplies include pencil, pens, business cards, etc.

Balance Sheet

1. Depreciable equipment is office items.

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2. Patents are amortized over three years.

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January February March April May June July August September October November December TotalsUnit Sales 168$ 269$ 279$ 265$ 330$ 356$ 403$ 506$ 702$ 813$ 4091Wholesale Price 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$

Gross Sales -$ -$ 8,400$ 13,450$ 13,950$ 13,250$ 16,500$ 17,800$ 20,150$ 25,300$ 35,100$ 40,650$ 204,550$ Returns and Allowances -$ -$ 84$ 135$ 140$ 133$ 165$ 178$ 202$ 253$ 351$ 407$ 2,046$ Cost of Goods Sold -$ -$ 2,727$ 4,367$ 4,530$ 4,302$ 5,358$ 5,780$ 6,543$ 8,215$ 11,397$ 13,199$ 66,417$

Gross Profit -$ -$ 5,589$ 8,948$ 9,281$ 8,815$ 10,977$ 11,842$ 13,406$ 16,832$ 23,352$ 27,044$ 136,087$

Expenses - General & Administrative Salary Expense 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 135,000$ Payroll Taxes 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 12,150$ Employee Benefits 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 11,700$ Rent Expense 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 7,092$ Insurance Expense 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 1,200$ Amortization Expense 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 2,333$ Depreciation 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 1,000$ Marketing 2,228$ 2,228$ 1,965$ 1,987$ 1,325$ 2,228$ 2,960$ 3,008$ 3,199$ 5,611$ 26,740$ Supplies 1,000$ 247$ 269$ 269$ 302$ 301$ 417$ 428$ 417$ 489$ 462$ 400$ 5,000$ Organizational Cost 7,225$ 7,225$ Legal Expenses 5,000$ 5,000$ Total Expenses 27,431$ 14,453$ 16,704$ 16,704$ 16,473$ 16,494$ 15,948$ 16,863$ 17,583$ 17,703$ 17,867$ 20,217$ 214,441$ Net Income (27,431)$ (14,453)$ (11,115)$ (7,755)$ (7,192)$ (7,679)$ (4,970)$ (5,020)$ (4,177)$ (871)$ 5,485$ 6,827$ (78,354)$

Income Statement PicTech

Year Ended 2015

January February March April May June July August September October November December TotalsUnit Sales 645$ 632$ 534$ 426$ 405$ 368$ 361$ 301$ 330$ 404$ 652$ 808$ 5,866$ Wholesale Price 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$

Gross Sales 32,250$ 31,600$ 26,700$ 21,300$ 20,250$ 18,400$ 18,050$ 15,050$ 16,500$ 20,200$ 32,600$ 40,400$ 293,300$ Returns and Allowances 323$ 316$ 267$ 213$ 203$ 184$ 181$ 151$ 165$ 202$ 326$ 404$ 2,933$ Cost of Goods Sold 10,472$ 10,261$ 8,669$ 6,916$ 6,575$ 5,974$ 5,861$ 4,887$ 5,358$ 6,559$ 10,585$ 13,118$ 95,235$

Gross Profit 21,456$ 21,023$ 17,764$ 14,171$ 13,472$ 12,242$ 12,009$ 10,013$ 10,977$ 13,439$ 21,689$ 26,878$ 195,132$

Expenses - General & Administrative Salary Expese 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 135,000$ Payroll Taxes 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 12,150$ Employee Benefits 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 11,700$ Rent Expense 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 7,092$ Insurance Expense 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 1,200$ Amortization Expense 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 2,333$ Depreciation 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 1,000$ Marketing 3,001$ 2,202$ 2,001$ 2,001$ 1,355$ 1,221$ 1,322$ 1,320$ 1,369$ 2,350$ 3,100$ 5,498$ 26,740$ Supplies 400$ 468$ 423$ 489$ 400$ 396$ 344$ 216$ 300$ 489$ 516$ 559$ 5,000$ Total Expenses 17,607$ 16,876$ 16,630$ 16,696$ 15,961$ 15,823$ 15,872$ 15,742$ 15,875$ 17,045$ 17,822$ 20,263$ 202,215$ Net Income 3,849$ 4,147$ 1,133$ (2,525)$ (2,489)$ (3,582)$ (3,864)$ (5,730)$ (4,898)$ (3,606)$ 3,867$ 6,615$ (7,083)$

Income Statement PicTech

Year Ended 2016

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January February March April May June July August September October November December TotalsUnit Sales 650 545 523 532 512 503 625 658 705 833 936 1253 7,625$ Wholesale Price 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$

Gross Sales 32,500$ 27,250$ 26,150$ 26,600$ 25,600$ 25,150$ 31,250$ 32,900$ 35,250$ 41,650$ 46,800$ 62,650$ 413,750$ Returns and Allowances 325$ 273$ 262$ 266$ 256$ 252$ 313$ 329$ 353$ 417$ 468$ 627$ 4,138$ Cost of Goods Sold 10,553$ 8,848$ 8,491$ 8,637$ 8,312$ 8,166$ 10,147$ 10,683$ 11,446$ 13,524$ 15,196$ 20,342$ 134,345$

Gross Profit 21,622$ 18,129$ 17,398$ 17,697$ 17,032$ 16,732$ 20,791$ 21,888$ 23,452$ 27,710$ 31,136$ 41,681$ 275,268$

Expenses - General & Administrative Salary Expese 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 11,250$ 135,000$ Payroll Taxes 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 1,013$ 12,150$ Employee Benefits 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 975$ 11,700$ Rent Expense 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 591$ 7,092$ Insurance Expense 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 100$ 1,200$ Amortization Expense 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 2,333$ Depreciation 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 1,000$ Marketing 2,228$ 2,001$ 1,990$ 1,804$ 1,700$ 1,036$ 1,456$ 1,468$ 1,579$ 2,369$ 3,106$ 6,003$ 26,740$ Supplies 423$ 401$ 328$ 369$ 417$ 403$ 402$ 401$ 417$ 402$ 489$ 549$ 5,000$ Total Expenses 16,858$ 16,608$ 16,524$ 16,379$ 16,323$ 15,645$ 16,064$ 16,075$ 16,202$ 16,977$ 17,801$ 20,758$ 202,216$ Net Income 4,765$ 1,521$ 873$ 1,318$ 709$ 1,087$ 4,726$ 5,813$ 7,250$ 10,732$ 13,335$ 20,923$ 73,052$

Year Ended 2017

PicTechIncome Statement

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12/1/2015 12/31/2015 12/31/2016 12/31/2017Assets:Currest Assets

Cash 225,000$ 127,755$ 124,005$ 200,391$ Other Currest Assets 5,000$ 5,000$ 5,000$ Total Current Assets 225,000$ 132,755$ 129,005$ 205,391$

Fixed AssetsEquipment 10,000$ 10,000$ 10,000$

Less Accum Depre (1,000)$ (2,000)$ (3,000)$ Intangible Assets

Patents 7,000$ 7,000$ 7,000$ Less Amortization (2,333)$ (4,667)$ (7,000)$

Trademarks 225$ 225$ 225$ Total Noncurrent Assets -$ 13,892$ 10,558$ 7,225$

Total Assets 225,000$ 146,646$ 139,564$ 212,616$

LiabilitiesShareholders EquityContributed Capital 225,000$ 225,000$ 225,000$ 225,000$ Retained Earnings (78,354)$ (85,436)$ (12,384)$

Total Liabilites and SHE 225,000$ 146,646$ 139,564$ 212,616$

PicTech Balance Sheet

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January February March April May June July August September October November DecemberCash Balance Beginning of Month 212,775$ 175,622$ 161,446$ 150,609$ 143,131$ 136,217$ 128,815$ 124,123$ 119,380$ 115,481$ 114,887$ 120,650$

Cash Flow From Operating ActivitiesNet Income (27,431)$ (14,453)$ (11,115)$ (7,755)$ (7,192)$ (7,679)$ (4,970)$ (5,020)$ (4,177)$ (871)$ 5,485$ 6,827$ Additions

Increase in Amortization 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ Depreciation 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ Investing ActivitiesEquipment 10,000$ Cash Flow From FinancingCash Balance 175,622$ 161,446$ 150,609$ 143,131$ 136,217$ 128,815$ 124,123$ 119,380$ 115,481$ 114,887$ 120,650$ 127,755$

Year Ended 2015Statement of Cash Flows

PicTech

January February March April May June July August September October November DecemberCash Balance Beginning of Month 127,755$ 131,881$ 136,306$ 137,717$ 135,470$ 133,258$ 129,954$ 126,369$ 120,917$ 116,297$ 112,968$ 117,113$

Cash Flow From Operating ActivitiesNet Income 3,849$ 4,147$ 1,133$ (2,525)$ (2,489)$ (3,582)$ (3,864)$ (5,730)$ (4,898)$ (3,606)$ 3,867$ 6,615$ Additions Increase in Expenses 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ Depreciation 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ Cash Flow From FinancingCash Balance 131,881$ 136,306$ 137,717$ 135,470$ 133,258$ 129,954$ 126,369$ 120,917$ 116,297$ 112,968$ 117,113$ 124,005$

Year Ended 2016

January February March April May June July August September October November DecemberCash Balance Beginning of Month 124,005$ 129,048$ 130,847$ 131,998$ 133,593$ 134,580$ 135,945$ 140,949$ 147,040$ 154,567$ 165,577$ 179,190$

Cash Flow From Operating ActivitiesNet Income 4,765$ 1,521$ 873$ 1,318$ 709$ 1,087$ 4,726$ 5,813$ 7,250$ 10,732$ 13,335$ 20,923$ Additions Increase in Expenses 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ 194$ Depreciation 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ 83$ Cash Flow From FinancingCash Balance 129,048$ 130,847$ 131,998$ 133,593$ 134,580$ 135,945$ 140,949$ 147,040$ 154,567$ 165,577$ 179,190$ 200,391$

Statement of Cash FlowPicTech

Year Ended 2017

Appendix A

PicTech Concept Statement: New Product Castle Case

Product

Castle is a cellphone case that will transform the exterior look of any smartphone. This case features an LCD screen that will allow the user to display any photo desired which can reflect their personality, lifestyle, and interests while protecting the phone. The case uses Bluetooth technology making the process simplistic, fast, and fun for the user to change the image.

Target Market

PicTech will be targeting 18-24 year old consumers to sell our product to. Our location in Philadelphia, Pennsylvania is home to 50 plus colleges and universities that will provide PicTech with plenty of potential consumers in the desired age range. Despite the electronics accessories industry traveling on a decline, due to outdated products such as computer keyboards and mice, the target industry of mobile phones continues to perform well. Castle is an innovative product that can take advantage of this decline. A study found that 9 out of 10 people currently use a cellphone. On top of that our research found that in 2012 teenagers who are now aging into our target market spent $4.8 billion on technology related items. We believe that our company will be able to take advantage of this statistic for years to come. Current manufacturers of cellphone cases are not able to keep up with our target markets latest desire for the new trend and growing interest in self-expression and personalization which is why Castle is the perfect product for this task.

How PicTech Will Be Positioned Relative to Competitors

Castle will be the only cellphone case available that not only offers protection for a cellphone but also offers the freedom to change the style of the cellphone case. Its quality of protection will be equal to the main competitor of Otterbox, but our product will have the ability to be personalized at will. Our focus is to cater to the ever changing taste of young adults by offering a product that can be personalized by the consumer.

Management

PicTech is led by its cofounders, Kabongo Bukasa, Matthew McGinley, Connor McNiff, and Justin Miller. Bukasa and Miller will lead the management team with their degrees in Business Administration: Management. McGinley will lead the accounting department with a degree in Accounting and Business Administration: Finance. McNiff will head the marketing team with a degree in Business Administration: Marketing.

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Appendix B

First Screen

Part 1: Strength of the Business IdeaFor each item, circle the most appropriate answer and make note of the (-1), (0), or (+1) score.

Low Potential (-1) Moderate Potential (0)

High Potential (+1)

1. Extent to which the idea: Takes advantage of

an environmental trend

Solves a problem Addresses and

unfilled gap in the marketplace

Weak Moderate Strong

2. Timeliness of entry to market

Not timely Moderately timely Very timely

3. Extent to which the idea “adds value” for its buyer or end user

Low Medium High

4. Extent to which the customer is satisfied by competing products that are already available

Very satisfied Moderately satisfied

Not very satisfied or ambivalent

5. Degree to which the idea requires customers to change their basic practices or behaviors

Substantial changes required

Moderate changes required

Small to no changes required

Our product idea is fully taking advantage of an environmental trend. Nine out of ten Americans currently own a cell phone this provides us with plenty of potential customers.33 We also understand that many young adults have the desire to express themselves and personalize products that they own. Our phone case will allow them to do this but give them the option to change the image or graphic whenever they want. This solves the problem of forcing consumers to buy a new case when they want a change.

As mentioned above our entry to the market is perfect with nine out of ten Americans owning a phone. Potential competitors may have struggled in the past when the number owning a phone was lower. It is our belief that with such a high number of potential consumers combined with the technology that is

33 "Increasingly Plugged in Cell Phone Users Spell Opportunity." Home Textiles Today, 2010.

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available our case will be welcomed by our target market. The wireless telecommunications industry is steady and expected to increase in the future which will help our company grow.

Young adults today more than ever have the desire to bring their own style to products that they own. Mobile phones and their accessories are seen as way more than just a form of communication. One article we found through our research describes cell phones as “trendy and talks about the importance of identity.34 Our product will allow the consumers to change the image that is displayed to match their current style and even beliefs. This benefit is not offered by any competing product.

Our belief is that customer will have to change their behavior in a small way. But the change will only be in the added benefit that our product brings them. The protection that they receive from the case will bring no added change in behavior. Similarly there will be no change in how the consumer carries or uses the phone once it is in the case. The only change is that our product offers them the ability to sync their pictures through Bluetooth to be displayed on the back of the case.

Part 2: Industry-Related Issues

Low Potential (-1) Moderate Potential (0) High Potential (+1)1. Number of competitors

Many Few None

2. Stage of industry life cycle

Maturity phase or decline phase

Growth phase Emergence phase

3. Growth rate of industry

Little or no growth Moderate growth Strong growth

4. Importance of industry’s products and/or services to customers

“Ambivalent’ “Would like to have” “Must have”

5. Industry operating margins

Low Moderate High

The number of competitors in our industry is very low. As for our product design we are the only ones in the industry that would currently offer this type of product. Our competitors however would be the typical phone case manufacturers especially Calypso and Otterbox who is the leader in that market.

The stage of this specific industry is in a decline phase. This industry however is very broad when it comes to the products that are manufactured. These products range from keyboards to many other devices that are made inside of computers. Our target industry however is expected to grow by 8.1% by the year 2017 and this industry is currently worth $185.6 billion.35

34 Susan Davis WebMD. "When Is Your Child Ready to Have Their Own Cell Phone." WebMD.35 "Computer Peripheral Equipment Manufacturing." Hoovers. Accessed January 28, 2014.

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The telecommunication industry is very important to customers. Who doesn’t have own a cell phone that we know of? Today 9 out of 10 people currently own a cell phone and trends in smartphones and other gadgets there always seems to be a must have product.

Part 3: Target Market and Customer-Related Issues

Low Potential (-1) Moderate Potential (0)

High Potential (+)

1. Identification of target market for the proposed new venture

Difficult to identify May be able to identify

Identified

2. Ability to create “barriers to entry” for potential competitors

Unable to create May or may not be able to create

Can create

3. Purchasing power of customers

Low Moderate High

4. Ease of making customers aware of the new product or service

Low Moderate High

5. Growth potential of target market

Low Moderate High

Please explain how you reached the above conclusions. Do not forget to include citations.

Our target market will be consumers between the age of 18 and 24. We chose this group, as they are the average age of college students. We believe that our product will reach other groups but want to focus on this age group. Our research has shown that today, nine out of ten Americans has a cell phone. Which means our target market will need cases for their phones. According to the census data there are over one million people between 18 and 25 who live in Philadelphia36, which is geographically where we will be located. This location is based on the fact that there are 50 plus colleges in the area that we will market our product to. These college students are interested in self-expression and personalization. One article we found in our research explains that young adults today are more in-tune with their “own style” that in any previous generation.37 This is a feature that our product will offer our target market that no other product does.

Our company is a bringing a brand new twist to a product that millions use every day. We believe that since we are the first to offer a digital frame on the back of a camera we will gain a

36 "American FactFinder - Results  ." American FactFinder - Results  . Accessed January 25, 2014. 37 Davie, Ronald. "Mobile Phone Ownership and Usage among Pre-adolescents." ScienceDirect. November 2004

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first-mover advantage and technological leadership. We will gain a significant competitive advantage by instilling our name in consumer’s minds.

In 2012 teenagers and young adults spent $4.8 billion on technology related items.38 In addition to this recent census data has determined that 71% of the nations 19.7 million college students were doing working in some industry in 2011.39 This research proves that our target market is willing to buy technology products and have the capital to purchase them.

Our target market is young adults who are ever increasingly communicating via social networking sites. We will use this to our advantage. A study by the Journal of advertising research showed that social media played many important rolls in purchasing decisions, including about 20 % who said that social media “introduced me to a brand or product that I didn’t know about”.40 We believe that a successful social media campaign will inform and ultimately persuade our target market to purchase our product.

The fact that nine out of ten Americans own a cell phone really excites us and allows us to believe that we can expand our target market in the future to include older Americans as well. Our research shows that women in particular have an interest in technology as well, last year spending $54 billion on technology. 41

Part 4: Founder - (or Founders-) Related Issues

Low Potential (-1)

Moderate Potential (0) High Potential (-1)

1. Founder or founders experience in the industry

No experience Moderate experience Experienced

2. Founder or founders skills as they relate to the proposed new venture’s product or service

No skills Moderate skills Skilled

3. Extent of the founder or founders professional and social networks in the relevant industry

None Moderate Extensive

4. Extent to which the proposed new venture meets the founder or

Weak Moderate Strong

38 "Increasingly Plugged in Cell Phone Users Spell Opportunity." Home Textiles Today, 2010.39 "The Employment Situation - December 2013." Bureau Of Labor Statistics U.S. Department of Labor.40 Hanley, Michael, and Michael Becker. ""CELL PHONE USAGE AND ADVERTISING ACCEPTANCE AMONG COLLEGE STUDENTS: A FOUR-YEAR ANALYSIS."" 41 Lefebvre, Craig. "The New Technology: The Consumer as Participant Rather than Target Audience."

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founders goals and aspirations

5. Likelihood that a team can be put together to launch and grow the new venture

Unlikely Moderate likely Very likely

Although we are not true experts in the creation of cell phone cases, we are very experienced in cell phones case usage and know the importance of protecting and authenticating ones’ cell phone.

Today people are using cell phones at extremely young ages. In fact, learning how to use a cell phone is as common as learning how to ride a bike. Cell phones are as personal to an individual today as owning a bike was to an individual in the past. We as a team have the skills and the experience to understand the importance of having a personalized case as we all own cell phone cases at a young age.

We are very knowledgeable with the importance of our product in today’s society. A cell phone represents an important part of identifying who the person is and allowing a person to express them through our product.

Our goals are to allow the owners of a cell phone to change the appearance and express their identity through our phone case with relative ease based upon their taste and personal preference, and to help our customers protect one of their most valued assets. In doing this we believe our idea will be profitably down the road which is the main reason why all of us are in business.

We believe that it is very likely to create a team that will be able to launch and grow in the venture of a personalized cell case. All of our team members were a part of a collegiate sports program so we all value the concept of teamwork. We have the young minds and drive to see our business goals through into the future.

Part 5: Financial Issues

Low Potential (-1) Moderate Potential (0) High Potential (+)1. Initial capital investment

High Moderate Low

2. Number of revenue One Two or three More than three

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drivers (ways in which the company makes money)3. Time to break even More than two years One to two years Less than one year4. Financial performance of similar businesses

Weak Modest Strong

5. Ability to fund initial product (or service) development and/or initial startup expenses from personal funds or via bootstrapping

Low Moderate High

Our product figures to range in the $60 selling price area at the current moment. These estimations are based off of how a similar larger product sells for (Kodak Digital Photo frame) and cost per parts of the IPhone. Our product is not estimated in the hundreds of dollars or down in single digits so that’s why we believe it is moderate initial capital investment.

Our main revenue driver would be from sales of online customers. From selling our product online we would hope to gain recognition and be able to sell in Wireless phone carrier stores such as At&t, Verizon, T-Mobile, etc. We believe our time to break even would be in 1-2 years. Otterbox who is powerhouse in the cell phone case market took over 10 years till they were well known. 42 They also started their business in 1998 when not many people at all owned cell phones. With mostly everyone today owning a cell phone we believe our product will be able to turn heads fairly quickly but understand that good things do take some time and experience.

The main performer similar to our business is Otterbox. They have annual sales around $340 million43 which gives us high optimism towards our product being successful.

Overall Potential

Score (-5 to +1) Overall Potential of the business Idea Based on Each Part

Suggestions for Improving the Potential

Part 1: Strength of Business Idea

High Potential Moderate Potential Low Potential

42 "Our Story." Otterbox. Accessed January 30, 2014. http://www.otterbox.com/our-story/our-story43 "Hoover's." Otter Products, LLC. Accessed February 1, 2014.

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Part 2: Industry - Related Issues

High Potential Moderate Potential Low Potential

Target industry has high potential.

Part 3: Target Market and Customer-Related Issues

High Potential Moderate Potential Low Potential

Part 4: Founder- (or Founders-) Related Issues

High Potential Moderate Potential Low Potential

Part 5: Financial Issues High Potential Moderate Potential Low Potential

Overall Assessment High Potential Moderate Potential Low Potential

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Appendix C

Kimberlee Josephson: Lycoming College – Advisor for Business Plan

What do you like about the product? Creative, unique, leverages existing technology. Customization is attractive for the target market.

What don't you like about the product and what changes would you make if any? Actually I’m not a huge fan of the name. It reminds me of the tv show of the same title

(although I have never watched Castle). Also, it’s just not that rugged sounding and somewhat archaic.o This is just my personal opinion though. I’m not your target market so my opinion

may be irrelevant. Another word though that came to mind which means essentially the same thing is “Citadel” (means a fortress protecting a town or city – which is somewhat more applicable to your case since it is protecting “your own little world” rather than a castle which pertains more to housing nobility)

I’m still not sure how you will compete with competitors… particularly “new entrants to the market” – what if Otterbox offered the same feature?

Do you think the product is feasible? I do think it’s feasible, I actually could see it in the marketplace. Concerned with how this product is charged and how long it lasts. If I have an image

featured on it – will it last all day?

Other CommentsAlso concerned with how you guarantee the product – what is your warranty policy?

Emmanuel Brown: Best Buy - Manager

What do you like about the product?• Love the idea around having a case that a customer can personalize and your target range of 18-

25.• Cases protection is going to be equal to otter box.• Location of where the product will be launched.

 What don't you like about the product and what changes would you make if any?

• Bluetooth could cause a problem with phones battery life. " Is the Case also going to include a charging option like a mophie case?"

• Even though I liked the idea of having a case as good as otter box. I'm worried about what the size and weight of the case would be.

• What is the price range for this product ? Customers love buying new cases but this idea

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technology wise would seem to put the cost over what your target range could afford enough to drive the desired units.

Do you think the product is feasible? Love the idea in general but with the current technology available I'm not sure if it is feasible. The product seems like it would not be cost effective for retailers or the average consumer.

Ted Stout: Radioshack – Store Manager

What do you like about the product?

LCD cover Bluetooth Protection

What don't you like about the product and what changes would you make if any? Led back screen

Design it for all ages Heavy duty waterproof construction similar to the Otterbox Armour

Do you think the product is feasible? Yes the product is feasible

Other Comments Offer it in different colors

Jake Muller: Verizon - Store Employee

What do you like about the product?

Target market age is the perfect age. Over 80% of Verizon customer have smart phones. Bluetooth technology. Every company is going blue tooth it makes everything easy to use

to hook up devices. Personalizing products gives the customers feeling like they are special and would be

most likely repeating customers. What don't you like about the product and what changes would you make if any?

Otterbox prices are between $49.99-129.99. Having a LCD screen on the back of the phone going to be more then these prices.

There are hundreds of companies that make cases. It’s different how is the LCD screen protected.

(Time is money) how fast if they want to personalize it do they have to go online and get it done. Customer always wants the product now.

Only having 1 product. Need to have different products even though you are personalizing the case can go so far. Like Otterbox they have different stylescommuter, defender, preserver, armor, etc.

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 Do you think the product is feasible?

Not detailed enough. How does a LCD device protect a screen or the phone. Cell phones are becoming the most broken devices out there.

Other Comments Product is fast with bluetooth and creating a product with personality, lifestyle, and interests is what customers want.

Emily Wheeland Lycoming ’13: AT&T – Store Clerk

What do you like about the product?

I like how you can change the style of your case at anytime. Transferring your pictures from your phone to the case would be really easy since your

target market would know this technology.

What do you not like about the product and what changes would you make if any?

The product seems like it would have to be bulky It may be hard to get customers away from competitors like Otterbox

Do you think the product is feasible?I believe this product is feasible.

Other comments.This is a really cool idea, I would buy one if it ever becomes a real product.

 

Appendix D

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PicTech Survey *1. Which category below includes your age?

17 or younger

18-25

26-40

41 or older

*

2. Which type of Cell Phone do you have?

Apple IPhone

Samsung Galaxy

Non-Smartphone

Other Smartphone

3. Do you currently use a cell phone case?

Yes

No

4. How often do you change your case over a 2 year span?

none 1-2 times

3-5 times

6-10 times

10+ times

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5. Where do you usually purchase your cell phone cases?

Cell phone Store (Verizon, AT&T, T-Mobile etc)

Electronic Retailer (Bestbuy, Walmart, Target, etc)

Online

Mall Kiosks

Other (please specify)

6. What is the most you ever paid for a phone case?

$1-10 $11-25 $25-40 $41-55 Over $55

7. Rate the following characteristics in order of importance with 1 being the least and 4 the most important.1 2 3 4

Style Style 1 Style 2 Style 3 Style 4

Durability Durability 1

Durability 2

Durability 3

Durability 4

Cost Cost 1 Cost 2 Cost 3 Cost 4

Personalization Personalization 1

Personalization 2

Personalization 3

Personalization 4

8. If there were a cell phone case that could upload and display any image that you desired what would you choose to display?

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Photo from phone library

Online photo

Other picture

Logo

Other

9. How important is having the newest technology when it comes to cell phones?

Very Important

Somewhat Important

Not Important

Not Sure

*

10. How likely would you be to purchase a cell phone case that has the technology to change the image on the case at any time?

Very likely

Somewhat likely

Not Sure

Unlikely

Never

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Appendix E

Consumer Survey Analysis Report

1) What category below includes your age?

100% of the respondents selected 18-25 as their age range

2) Which type of Cell Phone do you have?

The majority of our respondents selected that they have an Apple IPhone with 92.1%. Both the Samsung Galaxy and the option Other Smartphone received 3.85% each.

3) Do you currently use a Cell Phone Case?

88.46% of those who took our survey responded yes to this question while 11.54% selected no

4) How often do you change your case over a 2 year span?

11.54% answered none to this question, a majority at 50% selected 1-2 times. The second highest at 30.77% said they changed their case 3-5 times in that time period. Both 6-10 times and 10+ times were selected 3.85% times each.

5) Where do you usually purchase your cell phone cases?

Online was the number one answer for this question receiving 38.46% of the respondent votes. Next both cell phone stores and electronic retailers received 23.08% of the votes. Lastly other was selected with 15.38% of the vote.

6) What is the most you ever paid for a phone case?

The $1-10 range received 19.23% of the votes, next the $11-25 range received 26.92% of the votes. The number one answer was $25-40 which was selected 30.77% of the time. Finally the $41-55 and over $55 ranges were elected 7.69% and 15.38% of the time respectively.

7) Rate the following characteristics in order of importance with 1 being the least and 4 the most important.

The most important characteristic selected was durability followed by style. After that was cost then personalization.

8) If there were a cell phone case that could display any image that you desired what would you choose to display?

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The number one answer selected by far was a photo from phone library which was selected 65.38% of the time. Next was an online photo at 15.38% of the time. Followed by a logo at 11.54% and other picture and other each receiving 3.85% of the votes

9) How important is having the newest technology when it comes to cell phones?

Somewhat important was the highest answer selected here at 57.69%. Followed by Not Important at 34.62% and Very important at 7.69%.

10) How likely would you be to purchase a cell phone case that has the technology to change the image on the case at any time?

50% of the respondents said that would be somewhat likely, followed be 23.08% who said they are not sure. 19.23% selected they are very likely to purchase such a case. Unlikely and never were selected 3.85% of the time each.

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