OLYMPUS

Where dreams come alive, put on suits, and get money.

The Business Plan: Olympus – aIRa

Mission: Our mission is to combine the business intelligence and multiple market influence of Ingersoll Rand to address the problems in the fashion industry. Our goal is to change the fashion industry campus wide and nation wide by allowing our clientele to wear their favorite clothing items year round through the use of clothing technology.

Business Description: Our particular business venture has been crafted through a challenge proposed by Ingersoll Rand to Olympus. Our challenge was to create a product by enhancing one of Ingersoll’s many products—while providing our own creative take. Our innovation solves problems that we have identified through our time at Howard University and most specific in the fashion industry.

Company Background: Ingersoll Rand Inc. (NYSE: IR) was incorporated in 1905, in its legal headquarters in Dublin, Ireland, by founder Simon Ingersoll. Ingersoll Then merged Ingersoll-Sergeant Drill Company and Rand Drill Company. From its administrative headquarters in North Carolina and under the leadership of CEO Michael Lamach, IR focuses on two segments- climate and industrial. The global company provides comprehensive services, effective solutions and innovative products “advancing the quality of life.” Revenue is primarily earned through the design, manufacture and sales of their products. Their diverse range of businesses include Club Car- golf-cars, utility, transportation and rough terrain vehicles, Ingersoll Rand- compressed air systems, Thermo King- temperature control systems for vehicles and Trane- residential and commercial energy-efficient heating, ventilation and air-conditioning systems. With its diverse family of brands and industry-leading products and services, IR aims to provide the world with better quality and comfortable air, fresh food and perishables, efficient energy solutions and productive business practices.

Team Olympus, formally known as Team 1C, is a team sponsored by Ingersoll Rand through Howard University School of Business 21 CAP. The basis of this partnership was to foster professional guidance and business experience within our team. Through that initiative, this business venture was born: aIRa.

Products/Services: aIRa is the future of staying comfortable and stylish in all weather. It is the innovation that many in the clothing industry have tried to create but come up short. AIRa is simply a nanotechnology that can be applied to any fabric to fit each buyer’s individual needs. It is the nanotechnology that has been placed into the fabric that makes it special. The nanotechnology allows the person wearing it to get cool when it’s hot outside and get warm when it is cool outside. It’s a personal air-conditioner when it’s hot and a personal heater when it’s cold. Once you put the aIRa clothing on, it takes a few minutes to monitor your resting body temperature. After that, it will adjust itself depending on the temperature around you to keep your body at the resting temperature. It take homeostasis to a whole different level and if that isn’t enough it is weatherproof. So any and all weather will not affect the way the one wearing clothing with the nanotechnology will feel.

The Business Plan: Olympus – aIRa

Markets: The very first industry aIRa will be targeting is Healthcare. Healthcare is used throughout all different socioeconomic levels so aIRa won’t just reach one specific class of individuals. The Healthcare industry is continuously searching for the best, most innovative technology that can advance their services to their costumes while simultaneously creating revenue and/or saving them money. aIRa will be put to use in specifically hospitals. Instead of having to cool one room or heat another, a patient’s gown or bed sheets would do the heating and warming for that specific individual.

A large number of students shop online or buy their Howard merchandise from the bookstore. Making our product available at both of these places and promoting our brand name there will be paramount for our business plan. Students will be able to purchase Howard clothing with aIRa technology with their Bison Bucks. The Bison Weekly Newsletter and official Howard Facebook page are great platforms for advertising our products because it would efficiently spread the word about our offers and new products. To begin our brand and product, we plan to have a fashion flash mob in the yard. To fully promote our look we will have an influential person as our brand ambassador. With these marketing strategies, not only will our image as a brand with innovative technology be reflected, but also the trendy aspect of our products will reach our target market.

Distribution Channels: Main avenues that will receive our product include but are not limited to:

Healthcare centers and Hospitals Howard University Book Store Other local retail shops

The Business Plan: Olympus – aIRa

Marketing InitiativesThis Artificial Intelligence Reasoning Application (aIRa) is a very unique product due to

its combination of nanotechnology and fashion. The Artificial Intelligence Reasoning Application is the first ever article of clothing that uses technology that allows the fabric to adapt its temperature to meet the wearer’s needs. In this digital age, new and innovative ideas are key for companies to achieve product differentiation, which in turn, drives sales because it becomes more attractive to consumers. The technology can be applied to any fabric so, the directions aIRa can go are virtually endless.

The very first industry aIRa will be targeting is Healthcare. aIRa will be perfect for Healthcare and Healthcare will be perfect for aIRa. Healthcare is used throughout all different socioeconomic levels so aIRa won’t just reach one specific class of individuals. The Healthcare industry is continuously searching for the best, most innovative technology that can advance their services to their costumes while simultaneously creating revenue and/or saving them money. aIRa will be put to use in specifically hospitals. One of many reasons why health care requires large amounts of monetary resources is because reasonably priced services consume large amount of energy. In this case, the use of aIRa will help to keep certain patients in various sectors of the hospital at a preferred temperature, thereby conserving energy and pleasing the patient. Instead of having to cool one room or heat another, a patient’s gown or bed sheets would do the heating and warming for that specific individual. Healthcare is on one of the many uses that aIRa can be applied to. After aIRa succeeds in one industry it can be adapted to any industry.

A large number of students shop online or buy their Howard merchandise from the bookstore. Making our product available at both of these places and promoting our brand name there will be paramount for our business plan. Students will be able to purchase Howard clothing with aIRa technology with their Bison Bucks. The Bison Weekly Newsletter and official Howard Facebook page are a great platform for advertising our products because it would efficiently spread the word about our offers and new products. A social media marketing team will be set up to promote the product cost-efficiently. They will be in charge of advertising, promoting, blogging and branding in social media. For example, they will be featuring Howard students who wear our products on Instagram, holding giveaways and converting the feedback customers contribute on social media into meaningful marketing strategies. Print, television and radio are also important to market latest campaigns and create long-term brand value. Even simple and cost-efficient efforts such as obtaining permission to talk about our brand for the first five-minutes of class would be advantageous. Later in our business plan, we can think of loyalty cards…after six purchases, 15% off on the seventh one. But for the first glimpse of our brand, we could have a fashion flash mob in the yard. And possibly have an influential person as our brand ambassador. With these marketing strategies, not only will our image as a brand with innovative technology be reflected, but also the trendy aspect of our products will reach our target market.

The Business Plan: Olympus – aIRa

SWOT Analysis

Strengths Weaknesses

Innovative idea in wearables industry Affordable Energy and product efficiency

The complex technology that we are creating

The price that will be presented to consumers

Opportunities Threats

Can be advanced to check for symptoms of temperature related sicknesses

Expandable to Many Markets Can be produced in large quantities

for significant brands or events

Wearables are a big upcoming industry Testing required for safety Small wearable technology startups

like TempDrop, etc.

The wearables technology revolution is here. People can now monitor health, set daily goals, track fitness results, and capture videos practically anywhere. aIRa introduces an entirely new dimension to the wearable industry, temperature control. Although the technology required to make aIRa compact and comfortable while also effective is not readily available, that creates an opportunity for IR to be a trailblazer in the industry.

aIRa has the ability to be applied throughout all areas within any industry. Once the technology behind aIRa is created its adaptability gives it the ability to consistently be developed and innovated to remain on top of any competing product. Although the Healthcare Industry is our first target market, this product is suitable for various markets such as the Athletic Apparel industry. It can be sold to name brands like Nike, NorthFace, and Patagonia.

Body temperature is one of the most reliable and easy to recognize signs that a person’s body is not well. Using the temperature control feature of aIRa, we can advance to a monitoring system which will be able to recognize irregularities and provide warnings. The vast technology company startups in the wearables industry may prove to be a threat to aIRa, however Ingersoll Rand’s brand recognition will be an advantage in that area. Also there may be testing required to ensure safety of the technology and to dissociate it with any carcinogens, etc.

The Business Plan: Olympus – aIRa

Product/InnovativeVery soon the world will be asking, what is aIRa? So what is aIRa? aIRa is the future of

staying comfortable and stylish in all weather. It is the innovation that many in the clothing industry have tried to create but come up short. aIRa is simply a nanotechnology that can be applied to any fabric to fit each buyer’s individual needs. It is the nanotechnology that has been placed into the fabric that makes it special. The nanotechnology allows the person wearing it to get cool when it’s hot outside and get warm when it is cool outside. It’s a personal air-conditioner when it’s hot and a personal heater when it’s cold. Once you put the aIRa clothing on, it takes a few minutes to monitor your resting body temperature. After that, it will adjust itself depending on the temperature around you to keep your body at the resting temperature. It take homeostasis to a whole different level and if that isn’t enough it is weatherproof. So any and all weather will not affect the way the one wearing clothing with the nanotechnology will feel.

We know what aIRa is and what is does but, what does it look like? Well the World is full of unique diverse people, so we decided to offer a product that mirrors the attributes of our customers? Our product allows our customers to enjoy flexibility in their clothing choices by using Nano technology. This Technology eliminates the need for those seasonal wardrobe changes. Suddenly, the same hat that was worn in the depths of your winter months to keep ones ears warm can be warm in the peak of the summer to keep one cool. No longer will anyone be forced to hide their favorite graphic tees with large bulky coats. Those same tee shirts will suffice in the winter time with this Nano technology. Fashion will change completely with Nano technology. Jackets in the summer will no longer be taboo. For those who love seasonal clothing like Ugg Boots or Basketball shorts, no longer will you need to put them away as the weather changes. aIRa offered in a variety of products. aIRa is available in suits, shirts, pants, shorts, socks, dresses, skirts, and jackets.

Why does any of this matter? We have seasonal clothing for a reason, we wear jackets in the winter and shorts in the summer. This is true but are we really comfortable when it is 15 and below or if its 85 degrees with a humidity over 50 percent? No we are not, the seasonal clothing tries its best to make the person wearing the clothing comfortable but 100 percent of the time. Well not anymore thanks to aIRa seasonal clothes can not only compete with mother nature but beat her with ease. If this isn’t enough to prove why this technology matters, think about that awkward kid who’s body just doesn’t look right in summer clothes. With aIRa that sad kid can now look their best and feel their best year round. aIRa does more than just react to the outside environment, it helps the person wearing it maintain their resting body temperatures. So those high stress situations that raise body temperatures like a first date or a job interview one can utter the phrase, “I aint sweating it” and stay cool. AIRa is the future of comfortable and fashionable clothing, so either get on board or get left behind.

The Business Plan: Olympus – aIRa

Here, we can view an example of exactly what aIRa can do for you:

Financials for Product

The Business Plan: Olympus – aIRa

NarrativeThe costs and revenues associated with a product are two of the most important factors

when deciding its viability, and in order to compute the costs and revenues that will result from the production and sale of aIRa many assumptions are needed. The first being that fifty workers, skilled and unskilled, will be required to produce aIRa; thirty-five of said workers being unskilled and the remaining fifteen, skilled. The hourly wages are all set at the national average for their respective positions as reported by the United States Bureau of Labor Statistics, which will be detailed in the following table. For calculation, employees working on this team will work the standard eight-hour day. Once these employees are in place it is assumed that they will each produce fourteen units per day, meaning 500 units per day collectively. The cost of equipment associated with the production of aIRa must also be included, and it is established as $70 per unit. Finally, since aIRa’s primary function is to be utilized within clothing, a contract with a clothing manufacturer is necessary. Waterproof jackets are used as the basis for this calculation because it is a middle ground between the less expensive t-shirts and more costly blazers, for example. It will cost $9 per jacket, so producing 500 aIRa jackets per day will require $4,500 per day to be paid to a clothing manufacturer. Using the aforementioned assumptions, approximate costs are able to be calculated.

Table of Costs

Labor

Number of Workers Hourly Wage* Hours/Day Cost/Day

Unskilled 35 $13.50 8 $3,780.00

Skilled

Marketing 3 $21.30 8 $511.20

Supply Chain 4 $28.00 8 $896.00

Information Systems 3 $29.00 8 $696.00

Tech-Nano and Chem. 5 $32.00 8 $1,280.00

Total $7,163.20

Production

Cost/Unit Number of Units Cost/Day

Filtration Equipment $70.00 500 $3,500.00

Clothing Manufacturer $9.00 500 $4,500.00

Total $8,000.00

Grand Total Cost $46,663.20

(This was pasted from the original window, here’s a link so you can see what it looks like without the wonky formatting: https://docs.google.com/spreadsheets/d/1GsUj2Y0PkogFGE1WP_ymNRJIYVjugRmY9oD6uZ7ILIw/edit?usp=sharing)

The Business Plan: Olympus – aIRa

Financial StatementTo ensure the success of a product, an income statement must be created to outline the

gross revenue and total expenses to calculate the net profit and see if there is any growth profitably at all. When considering Team Olympus’, aIRa, the fixed factors must be stated such as the estimated units produced per day of 500, the unit price to produce each unit set at $79.00, and lastly the sale price of $135.00 per unit. The details of how the fixed factors were calculated is explained in the Table of Cost section above.

The financial information such as cost, revenue, and profit were derived from very simple functions after computing the necessary expenditures. Beginning with the cost function, one must first look at how much it cost to produce one unit being (x). The main components of the aIRa clothing is the filtration system, that will allow the heating and cooling to take place, and the actual jacket from a manufacturer.

According to the Table of Cost, the filter is $70.00 per unit and the waterproof garment is $9.00 from the manufacturer when bought in bulk of 20 items or more which totals $79.00 per unit hence $79x. Then in a cost function the fixed costs, in this case being labor, must be added on which is $7,163.20. Therefore, the cost function is $79x + $7,163.20 = C(x). Next, compute the revenue function which is simply the sale price multiplied by one unit of (x). The sale price was was derived from a function calculating optimal price and determined $135.00 per unit would be the most effective. Therefore the revenue function is simply $135x = R(x). Lastly, the profit is revenue minus the expenses which gives a function of $56x - $7,163.20 = P(x) which means that when set equal to zero, the break even point is 128 units must be sold to truly make a profit.

A generalized financial Income Statement of just the sales from the product and the expenditures from the Table of Costs was generated to present the monetary values of the expenses, revenue, and profit per day, week, month, and year of the production and sale of aIRa.

The Business Plan: Olympus – aIRa

Type: Generalized Income Statement

General Income Statement

Ingersoll Rand Team Olympus

aIRa

Daily Weekly Monthly Annually

Revenue

aIRa Jackets $67,500.00 $472,500.00 $1,890,000.00 $22,680,000.00

Expenses

Labor

Unskilled Workers $3,780.00 $26,460.00 $105,840.00 $1,270,080.00

Skilled Workers $3,383.20 $23,682.40 $94,729.60 $1,136,755.20

Production

Filtration System $35,000.00 $245,000.00 $980,000.00 $11,760,000.00

Clothing Manufacturer $4,500 $31,500.00 $126,000.00 $1,512,000.00

Total Expense $46,663.20 $326,642.40 $1,306,569.60 $15,678,835.20

Net Profit $20,836.80 $145,857.60 $583,430.40 $7,001,164.80

The Business Plan: Olympus – aIRa

Financials for MarketingaIRa’s marketing strategy is broken into two separate entities as there are two separate

markets we are trying to reach- hospitals and Howard University students.For the hospitals, our money will be spent on commercials, posters and a traveling

consultant who will set up meetings with hospital personnel to sell them the best fabric which would be in the blankets and curtains- aIRa technology. So, just for the commercials we will spend about $15-$25 for a Cable spot- this is with networks such as CNN, ESPN, Nickelodeon, TNT, VH1 and BET. We want to use these Cable spots because these are the channels people are watching as over half of American homes subscribe to Cable. Thinking that we will have about 5 commercials a day for about a month’s time, we will spend $750 on cable commercials during prime time. We will want a number of different posters for both our hospital campaign and our push at Howard, so we will need two different designs (one for the blankets and curtains for the hospitals, and one with clothing for Howard) on a few different sizes. For the hospital, we will want about six posters and for Howard we will want about 20 this is to just start us off. We will want five 18” x 24”, one 22” x 28” posters for the hospital, and 16 18” x 24”, three 22” x 24” and one 24” x 36” poster for Howard University:

Features Includes full-color printing, lamination and mounting at a package price Choice of matte or gloss lamination

This will cost $161.94 for the hospital and $560.80 for Howard, adding up to $722.74 before tax. The projected tax is $57.82, so the full price would be $780.56. The traveling consultant will be $639/ wk for 4 weeks, equaling $2556 a month for their wages.

Now, on to our marketing plan for Howard University. Besides the posters which have already been equated for, we will be using social media to advertise to the students and utilizing volunteers for the flash mob on the yard. So social media will essentially be free, but the photo shoots needed for the photos on our page will cost. First, we will need mock-ups of all the designs so that will cost about $9 a jacket and we will need 50 jackets so that’s $450 (these same jackets will be given to the flashmob volunteers to wear and an incentive for them to have). Then, we will need a photographer (Howard University student) which is about $50 an hour and we would probably need about 2 hours time so that’s a $100. We will provide water and bagels on set during the photo shoot. We will buy the water ($20), but will get bagels for free from Panera by donation. Therefore, we will spend an additional $570 onto the $560.80.

All in all, we have a relatively inexpensive marketing plan with our total for both initiatives rounding off to $390.56.

Sizes & Pricing: 18" x 24" - $39.99  $23.99 22" x 28" - $69.99  $41.99 24" x 36" - $84.99  $50.99 36" x 48" - $129.99 $77.99

The Business Plan: Olympus – aIRa

Example: A Marketing Breakdown Sheet

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Men & Women waterproof windproof hiking jacket camping jacket new style fashion     coats quick-drying windbreak jackets man 15Colors. (n.d.). Retrieved from     Aliexpress website: http://www.aliexpress.com/item/     Brand-men-waterproof-windproof-hiking-camping-suit-jacket-New-style-fashion-coats     -quick-drying-active-Jacket/1569652635.html

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