Wire-FreeA3TM Consulting Stephen Adams

Mohib AhmadTara ArmatasKeron TwumMatt Muller

Wire-Free

Executive Summary

“Wire-Free” Concept Advanced Technology Ease-of-Use for Consumers No Wires. Period. Allows Users a Choice

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New Product Development Increased Use of Wireless Technology Competition Already In Market Concept Offers Practical Options Viable Option for

First Time Buyers Innovators Early Adopters Older and Younger Generations Alike

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New Product Development Competitive Advantage #3, #4, #5 in the Market Complete Manufacturing – All In One Established Product offering

Sleek Design Brilliant Picture Simplicity Reliability

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Situation Analysis Industry/Category Analysis Sales Analysis Competitor Analysis Customer Analysis Planning Assumptions Forecasting

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Industry/Category Analysis Market for wireless home networking

equipment was estimated at $1.7 billion in 2004

Up from $427 million in 2002 Market is expected to grow to 32

million households in 2009 Opportunity for us as consumers are

increasingly adopting Wi-Fi devices

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Sales Analysis Product marketed towards innovators

(1%) and early adopters (2-3 %) Opinion-makers would help diffuse the

message across aiding the accompanying ad campaign

Garner around 0.3% share of Consumer Home Electronics market

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Competitor Analysis #1 and #2 would pour money into

R&D to have similar value additions in their products

Having deep pockets, they can afford it However being market leaders, they

would be compelled to develop a better product than ours

To nullify any potential edge, A3TM needs to keep innovating the product

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Customer Analysis B2B focus Customer(s) would have a value-added

product and an opportunity to increase market share

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Planning Assumptions HDTV would become the first choice of

consumers buying a new TV (low) The wireless market would grow to 24

million households by 2007 (low) The sales would be innovation-driven

(medium) Bass model can forecast sales

effectively for our product (medium)

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Forecasting According to ATAR, the market share is

for the first year would be 1.5% (1%) 360,000+ (320,000+) households by

2007

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Corporate Objectives Overall Marketing Objectives

Market Acceptance Program Objectives

Pricing Advertising/Promotion Sales Distribution Product

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Marketing Strategy Targets

Customer Targets Competitor Targets

Core Strategy Strategic Alternatives Considered

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Integrated Marketing Plan Our Core Strategy

Offer manufacturers the full triad of quality, cost, and speed

Sales Pre-launch and pre-announcement

period International CES

Trade shows and conferences

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Trade Shows and Conferences CARTS USA

March 26-29, 2007 Albuquerque, NM Sponsored by the Electronic Components, Assemblies & Materials

Association (ECA) is annual forum for information on new components, improved applications, and solutions to current problems.

EDS - ELECTRONIC DISTRIBUTION SHOW AND CONFERENCE

May 15 - 17, 2007 Las Vegas, Nevada, USA Paris and Bally's Hotels Where electronic component manufacturers, distributors and

representatives forge relationships and accelerate business.

ELECTRONIC COMPONENTS AND TECHNOLOGY CONFERENCE

May 29-June 1, 2007 Reno, Nevada, USA, ECTC is the premier international packaging, components, and

microelectronic systems technology conference.

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Trade Shows and Conferences ELECTRONIC ENTERTAINMENT EXPO

(E3) July 11-13, 2007 Santa Monica, California. The Annual trade show for the computer and video games

industry presented by the Entertainment Software Association.

HDTV CONFERENCE 2007 August 15-16, 2007 Beverly Hills, California This event provides an ideal forum for a wide range of important trends,

challenges and opportunities currently facing, TV manufacturers, DVD player manufacturers, retailers, broadcast and cable/satellite networks, Set top box manufacturers, TV and DVD supply chain members.

CARTS ASIA TAIWAN October 9 - 13, 2007 Taipei, Taiwan TIATRONICS Autumn, Asia's largest professional electronics exhibition, is

the hottest venue for buyers and suppliers to meet and strike deals, sponsored by the Electronic Components, Assemblies & Materials Association (ECA).

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Brand / Brand Management HDTV “Wire-Free” logo

Intel’s “Intel Inside”

Product packaging Silver & Black Specifications and instructions Intuitive and simple

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Market Research/Customer Management

Web Presence & Advertisement The flash videos, will emphasize the

benefits of HD wireless over standard televisions

uncluttered wall versus a messy clutter wall the website will display positive sales and

revenues of our original clients Launch

Merchandise in the hands of the customer to observe the interaction and reaction, just as TiVo

How to improve the firmware applications and the manufacturer

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Market Research/Customer Management

Tracking System Client problems and issues in order to

continually improve on the quality and functionality of our product.

Tech support personnel will have access to the data in order to diagnose and fix problems.

Design and installation engineers will also use the database to configure products and record best practices for later use in firmware and software updates to manufacturers.

Database Market research data on our client’s sales and

profitability for later use in the firm’s marketing campaign.

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Financials

ATAR Model predicts a 1.52% market share

Assuming a 1.00% market share

2007 2008 2009Projected Total

Revenue8,166,667 12,055,556 16,305,556

0.50% 40,833 60,278 81,528 8,766,667$

If A3TM Captures… 1.00% 81,667 120,556 163,056 17,533,333$ 1.50% 122,500 180,833 244,583 26,300,000$

Production Estimates of HDTV's

Sales Estimates

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Financials

2007 2008 2009Revenue: Licensing Fees 1,960,000$ 5,786,667$ 7,826,667$

Expenses: Software Development 2,280,000$ 1,450,000$ 850,000$ Salaries and Wages 600,000 630,000 661,500 Marketing 80,000 80,000 80,000 Building Rent 17,500 17,500 17,500 Depreciation and Amortization 147,000 247,000 537,000 Total Expenses 3,124,500 2,424,500 2,146,000

Net Income (Loss) (1,164,500)$ 3,362,167$ 5,680,667$

Income Statement

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Financials

$3 million in startup capital

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4

Beginning Cash Balance $ - $ 1,671,500 $ 184,000 $ 856,500 $ 1,489,000 $ 2,035,667 $ 2,442,333 $ 3,614,000 $ 4,745,667 $ 6,094,458 $ 7,313,250 $ 8,997,042

Add: Cash Receipts

Cash from customers - - 980,000 980,000 1,446,667 1,446,667 1,446,667 1,446,667 1,956,667 1,956,667 1,956,667 1,956,667

Cash from investors 3,000,000 - - - - - - - - - - -

Total receipts 3,000,000 - 980,000 980,000 1,446,667 1,446,667 1,446,667 1,446,667 1,956,667 1,956,667 1,956,667 1,956,667

Total available cash 3,000,000 1,671,500 1,164,000 1,836,500 2,935,667 3,482,333 3,889,000 5,060,667 6,702,333 8,051,125 9,269,917 10,953,708

Less: Cash Disbursements

Software development 1,140,000 1,140,000 - - 725,000 725,000 - - 425,000 425,000 - -

Equipment 21,000 - - - - - - - - - - -

Building rent 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500

Capital expenditure: software development - 140,000 140,000 140,000 100,000 100,000 100,000 90,000 90,000 90,000

Salaries and wages 150,000 150,000 150,000 150,000 157,500 157,500 157,500 157,500 165,375 165,375 165,375 165,375

Marketing - 40,000 - 40,000 - 40,000 - 40,000 - 40,000 - 40,000

Total disbursements 1,328,500 1,487,500 307,500 347,500 900,000 1,040,000 275,000 315,000 607,875 737,875 272,875 312,875

Ending Cash Balance $ 1,671,500 $ 184,000 $ 856,500 $ 1,489,000 $ 2,035,667 $ 2,442,333 $ 3,614,000 $ 4,745,667 $ 6,094,458 $ 7,313,250 $ 8,997,042 $ 10,640,833

Year 1 Year 2 Year 3

Cash Budget

Questions?