Company Description

“Emotiv is a neuroengineering company that has brought to market an affordable,

consumer friendly, high-resolution, multichannel, wireless EEG system…Emotiv is

revolutionizing human-computer interactions by allowing computers to react to your moods

and deliberate commands in a more natural way” (Emotiv, 2013, para. 1). Four award-winning

scientists and executives founded Emotiv Systems, Inc. in 2003. This team included technology

entrepreneurs Tan Le and Nam Do, internationally recognized neuroscientist Professor Allan

Snyder, and chip-design pioneer Neil Weste. “These founders all shared the same inspiring

vision: to introduce the immediacy of thought to the human-machine dialogue. Together they

have developed a technology that utterly transforms the way we interact with computers”

(VBProfiles, 2013, Overview). In 2009 the company launched the Emotiv EPOC, the world’s first

consumer neuroheadset primarily designed for use in the electronic gaming industry. Although

Emotiv’s initial launch picked up steam in the gaming industry, the company recognized the

potential of applying this technology across a variety of industries.

The medical research field is one of the most life changing spaces for the Emotiv

technology. Tan Le, Emotiv President, along with Dr. Geoff Mackellar, CEO of Emotiv Research,

share a vision of driving innovation in the medical industry. They believe the key to developing

meaningful applications is keeping their product affordable and highly available.

Enter Emotiv Lifesciences

Tan Le and Dr. Geoff Mackellar founded Emotiv Lifesciences in 2011. “Emotiv

Lifesciences is a bioinformatics company offering a unique platform for crowd-sourced brain

research. Emotiv leverages cloud computing, big data and mobile technology to offer valuable

personal insights and accelerate brain research globally” (Du, K., 2013, p. 2). The company’s

mission is to foster a global community of brain research via electroencephalography (EEG).

“Geoff co-founded Emotiv Lifesciences with Tan as a means to propel the research effort and

investigate future clinical and quantified-self applications of consumer-grade EEG systems… his

greatest ambition is to get the Emotiv Insight out into the world” (Le, T., 2013, para. 5-6).

Product Description

As previously mentioned, Emotiv pioneered the market of low cost EEG devices for

consumer use with the EPOC device. Emotiv Lifesciences is introducing the Emotiv Insight, the

second-generation EEG headset. The Insight “is a sleek, 5 channel, wireless headset that records

your brainwaves and translates them into meaningful data you can understand. Designed for

everyday use, Insight has advanced electronics that are fully optimized to produce clean, robust

signals anytime, anywhere” (Emotiv Lifesciences, 2013).

One of the most notable improvements over the first generation EPOC model is the use of dry

hydrophilic polymer sensors designed to absorb moisture in the surrounding environment. The

setup is quicker and more convenient since the user does not have to prepare the surface of

the scalp and is no longer required to apply saline gel to each of the 14 sensors. This feature

was added specifically to promote more frequent use of the product versus the nuisance of

adding saline gel before each use. The product design phase involved extensive modifications to

deliver a device that is lighter, comfortable, as well as visually appealing.

Emotiv Insight Key Highlights

• Wireless headset that measures and converts brainwaves into computing commands

that can be used to control objects, improve performance, or understand your brain more

• Faster, next-generation brain scanner that collects real-time data on the wearer's

thoughts and feelings and delivers it directly to a computer, phone, or other device through

Android, iOS, OSX, Linux, and Windows platforms

• Deciphers basic mental commands such as levitate, push, pull, rotate and hard to

visualize commands such as disappear

• Measures and tracks your Attention, Focus, Engagement, Interest, Excitement, Affinity,

Relaxation and Stress levels

History About the Product

The founders of Emotiv Systems, Inc. envisioned the EPOC Neuroheadset in 2003. The

device was made available for commercial use in 2009. The conception of the Emotiv Insight

resulted from a substantial amount of meaninful feedback from consumers, researchers, and

developers. “The purpose behind the Insight and EPOC headsets is quite simple… the

company’s long term aim is to take a clinical system (the EEG) from the lab into the real world

and to democratize brain research” (StoriesByWilliams, 2013).

• Brain-computer interfaces (BCIs) utilize psycho-physiological measurement techniques

to record brain activity and translate it into actions through a computer system. This allows the

user to interact with a system through mental actions alone, circumventing traditional control

paradigms such as physical manipulation or verbal commands

• The Insight is the second evolution in a line of headsets that when worn, track and

monitor the brain’s activity, translating the brain’s record to an ever-useful, app-friendly report,

engineered to “optimize brain fitness and performance.”

Situation Analysis

In order to effectively manage the Emotiv Insight, the product launch and marketing plan, it is

essential to understand the product itself and the current environment the product will be launching in.

The situation analysis will have to be periodically re performed to keep a firm grasp on the current

environment and to be prepared for market shifts that can impact the Marketing plan and product

launch capabilities.

SWOT analysis

In taking advantage of the increased attention on brain related injuries and disorders, Emotiv

Insight can build upon key strengths, including the exclusive 5 EEG sensors and 2 reference sensors,

award winning pre-cursor product, compatibility with major mobile and desktop operating systems,

among others.

To build and maintain a strong product, however, Emotiv must not lose sight of several

weaknesses and threats that have the potential to impact Emotiv’s bottom line or derail the product

before it ever gets off the ground; among them being heavy regulation, limited resources, and increasing

competition in the space. Table X summarizes these strengths, weaknesses, opportunities and threats.

Table X (if there are other tables, Shaun, adjust the naming convention to make sense chronologically)

Strengths

Revolutionizes the way we interact with computers

Wide range of uses; from gaming to interactive television, everyday computer interactions,

hands-free control system, smart adaptive environments, art, accessibility design, market

research, psychology, medicine, robotics, automotive, transport safety, defense and security.

Applicable to wide range of consumer markets; children, adults, individuals with medical

complications

Fully compatible with all popular mobile and desktop operating systems to access and monitor

data

Offers low cost research

First product offering, Emoti EPOC, is an award winning technology; currently used by

developers and researchers in more than 100 countries worldwide

Only brainwear on the market to offer 5 EEG sensors and 2 reference sensors, which provides

useful coverage of key sites around the cerebral cortex: frontal cortex (executive functions),

parieto-temporal (auditory, spatial/co-ordination), and occipital (visual). This spatial resolution is

crucial to getting EEG data that will allow you to receive more in depth information on your

brain activity.

Dry sensors that do not require any conductive gel or saline solution to operate

Weaknesses

It’s a developing technology that isn’t fully matured

Requires a headset for use

Limited resources to start up production

Limited marketing strategy while developing the brand/functionality

Currently pending regulatory approvals to ship worldwide

Opportunities

Expansion opportunities in medical research to build upon reputation in the medical community

which offers potential for grants to offset production/research costs

Develop physician relationships to gain access to their practice

Increased focus on brain related injuries in sports

Increased focus on brain related injuries/disorders among veterans

Threats

Medical industry is heavily regulated

Pharmaceutical companies could block any new technologies perceived to reduce their

treatment market share

Competitors; Neurosky Mindwave Mobile, InteraXon Muse have similar product offerings

Increased attractiveness of this segment due to the increased focus on brain related

injuries/disorders

Misuse of the technology potentially exposes Emotiv Insight to legal or reputational risk

Putting thoughts/brain function into action can have unintended consequences that have a

potential to interfere with Intellectual Property, decency, privacy laws

Market overview

• Citizen Scientists, Quantified Selfers, and basically everyone interested in their own

brain and improving their performance

• Mind controlled prosthetics - “Millions of people worldwide suffer from sensory and

motor deficits caused by spinal cord injuries. Researchers are working to develop tools to help

restore their mobility and sense of touch by connecting their brains with assistive devices”

(Peter, 2013, p. 1).

• The Emotiv Insight has huge market potential for many reasons: it is safe for children,

adults, and those with medical complications; it’s applicable to virtually every consumer

industry, the Emotiv Insight is fully-compatible with all popular mobile and desktop operating

systems

Core Business/Service of the firm

Emotiv Lifesciences produces relatively low-cost, portable, high-resolution

electroencephalogram headsets that that allows users to better understand and interpret the

signals from our brain. The Emotiv Insight measures and collects real-time data on the

participant’s thoughts, feelings and facial expressions that is wirelessly transferred to a

computer, phone, or other device through Android, iOS, OSX, Linux, and Windows platforms.

Emotiv Lifesciences’ goal is to deliver groundbreaking EEG technology into the hands of many

for the purpose of stimulating worldwide brain research of everyday living.

Emotiv Lifesciences is pursuing the dream of widespread brain function screening to

catch early signs of autism, epilepsy, learning disabilities, ADHD and other conditions… Le's

vision is the potential to implement inexpensive cognitive and neurological monitoring for

developmental disorders” (Saxton Speakers Bureau, 2013).

Competitive Analysis

NeuroSky, Inc. – The leader in Brain-Computer Interface (BCI) technologies for consumer

product application. Founded in 2004 and headquartered in San Jose, Calif., NeuroSky works

with industry partners, developers and with academic and research institutions, to provide

innovative products and solutions across a wide range of areas.

InteraXon – Has years of experience creating and implementing brainwave-controlled

computing technology and applications as well as an ongoing awareness of state-of-the-art

advances in the field. The company’s product, Muse, measures your brainwaves in real-time. It

sends those brainwaves to your smart phone or tablet showing you how well your brain is

performing; and also translates your brainwaves into instructions to interact with content on

your iOS or Android device.

Competitive Strategy

Emotiv Insight

InteraXon-Muse

NueroSky, Inc-MindWave

Mobile

The major competitive advantage that Emotiv Insight will emphasize is that it is the only

brain wear on the market to offer 5 EEG sensors and 2 reference , which provides useful

coverage of key sites around the cerebral cortex: frontal cortex (executive functions), parietal-

temporal (auditory, spatial/co-ordination), and occipital (visual).

This spatial resolution is crucial in getting EEG data that will allow you to receive more in

depth information on your brain activity. The headset has greater spatial ability, and measures

readings from a greater area of the skull, while still being affordable as compared to full medical

brain computer interface setups.

A particular characteristic that stands out with Emotiv is the company’s reputation with

encouraging third-party development and research. This allows developers to unleash their full

spectrum a creativity and thought into a world of undiscovered game-changing applications.

Emotiv continues to build upon its success by producing affordable devices that measure raw

EEG data at a reasonable level of accuracy. Medical-grade EEG studies that produce comparable

results are unrealistic for worldwide studies as they can cost from $3,000 to as much as

$50,000.

The price point of the Emotiv Insight devices allows researchers to purchase several

units for their case studies.This advantage will generate an increased amount of visibility, not

only for its product differentiation, but also for its capability to allow individuals to conduct low-

cost research.

Main Goals for Emotiv Insight

Emotiv Insights main goals are to: 1.) Increase exposure; 2.) Increase traffic; 3.) Gain

marketplace intelligence; 4.) Develop loyal customers; 5.) Improve Sales; 6.) Create new

partnerships; 7.) Reduce marketing expenses

Marketing Objectives/Competitive Strategy for Emotiv Insight

Establishing Strategic Alliances-To promote a new way that will allow individuals to

optimize their brain fitness & performance, as well as measure their own cognitive

health & wellbeing, through strategic alliances with hospitals, rehabilitation centers, and

organizations.

Develop a Strong Marketing Strategy-To create advertising strategies that positions

ourselves to be viewed as leading innovators who provide clinical product solutions to

help businesses manage the complications of disease.

Establishing Value Proposition-To be able to effectively use the devices therapeutic

system offering as the way to gain entrance into the market and build our products

awareness.

Developing Principal Goal-To achieve $5 million in revenue by year three.

Promotion Strategies

Develop a product awareness campaign by partnering with a third party that specializes

in public relations and industry media. (Will develop direct mail information, product

brochures, product training video and guide, webinar etc.)

Develop physician’s relationships to gain unique access to sell to the organizations

where they have privileges. In addition to the business/physician relationship, the

physician may be asked to develop a Board (may consist of one doctor, etc.) that

sponsors luncheons, and information sessions.

Target Market Segments

By pursuing an aggressive product awareness campaign, Emotiv Insight will become the

leading brain wear technology that has a therapeutic offering.

Emotiv Insights Target Market Segments

Rehabilitation Centers

Disabled Individuals

Hospitals

Individuals with Mental

Disorders

Marketing Strategy

One important element in building Emotiv Insights revenue is by conducting a market

analysis and analyzing the trends of the direct competitors. Once this is done, Emotiv Insight

players will need apply the information to their current objectives. This will allow them to gain a

competitive advantage that will increase their revenue. In addition, Emotiv Insight players will

need to establish “who” the product is and what consumers it will attract. This can be done by

using three elements that include: Branding, Positioning, and Awareness.

Branding- Branding is essential for Emotiv Insights success. Emotiv Insight can brand

itself as the next generation wearable device that can be used as a therapeutic offering.

Rehabilitation CentersBuild relationships with

Accelerated rehabilitations centers who will use Emotiv Insight as a

treatment technique for individuals seeking treatment in an inpatient

and outpatient basis

HospitalsBuild business relationships with

hospitals that will allow physicians to use Emotiv Insight as a therapeutic offering to their

head and trauma patients

Disabled IndividualsWork to form partnerships with

organizations such as The American Association of People with Disabilities (AAPD) to offer Emotiv Insight as a part of their

Telecommunications and Technology Policy Initiative

(TTPI)

Individuals with Mental Disorders

Target organizations that treat military personnel who suffer from post traumatic disorder

Positioning- Positioning is essential for Emotiv Insight because it helps guide the

marketing strategy in deciding the brands essence. The result of positioning shows why

the target audience should buy the product. One component of Emotiv Insights strategy

is to strategically position the product in a market that has a need for rehabilitating

devices.

Awareness-Emotiv Insight can capitalize on their strength of being a device that has a

therapeutic offering. Through the product awareness campaign, aggressive advertising,

and a strong market presence, Emotiv Insight will gain solid awareness to the market

that aims to restore mental health that has been lost by traumatic injury or disease.

Product/Service Strategies

Emotiv Insights sales representatives will target specific market areas that will include

local & national hospitals and rehabilitation centers, organizations for disabled

individuals, and organizations that have programs designed to treat individuals with

post traumatic disorder.

Design a Webinar that provides in depth product information as well as an intensive

training session that is required to be completed before the use of the device.

Develop a relationship with a foreign market to distribute and manufacturer products.

Financial plan for EMOTIV INSIGHT

Breakeven Analysis

It is calculated that the fixed costs are incurred for a plant that has a capacity of 2,000 units.

In that case, the total fixed costs are ($55 * 2000 = $110,000). The calculations for the

breakeven point has been broke out for the product in terms of units as well as sales.

Fixed Costs: $55 per unit for 2000 units capacity = $110,000 Variable Costs: $25 per unit Selling Price: $300 per Unit Breakeven in terms of units = $110,000 / ($300-$25)

= 400 units Breakeven in terms of sales = $110,000 / (($300-$25)/$300)

= $120,000

As you can see based on the chart Emotiv will have to sell 400 units in order to break

even. Also, Emotiv’s sales need to at least be $120,000 in order to cover all of our costs. In

addition, in order for the product to turn a profit, it will need to sell more than 400 units, or

have sales of more than $120,000.

50100

150200

250300

350400

450500

550600

650700

750800

850900

9501000

-$150,000.00

-$100,000.00

-$50,000.00

$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

Breakeven analysis

Profi

t

Number of units

Advertising costs

Budget allocation has to be done according to various parameters:

How far would we like our reach to be?

Return expected from the promotion?

The product is targeted at a large variety of customers for which it needs a wide reach

through its promotions. The best suited investment for this purpose is investment in print

advertisements in medical magazines, targeted promotional material for health offices, and

medical supply trade shows. This will be followed by Television advertisement, internet

advertisements, and an aggressive social media campaign.

We expect proportion to be as follows:

40%

30%

20%

10%

Advertisement budget

TV advertisementInternet campaignsHealth care professional's advertisement materialOther pomotional material

Operating and Non-operating costs

We segregate the costs of the operations which include the manufacturing of the

product, and non-operating which include other expenses such as promotional and sales,

administrative, market research, product research and development.

The idea behind this plan is to identify possible costs and accordingly allocate budgets

for each category of expense. This will enable the company to manage and control the costs

and thereby improve profitability.

Operating expenses

Labor $150,000

Supervisors $50,000

Materials $130,000

Overheads $110,000

Non-operating expenses

Advertising $20,000

Promotions $20,000

Field Sales $10,000

Marketing management $15,000

Product management $10,000

Marketing research $25,000

Product development $50,000

Testing $35,000

General and administrative $30,000

Total $655,000

Sales forecast

Based on the market research and the macroeconomic trend analysis, we have

identified the sales forecast as follows. This also includes possible competitor events and other

planned and known variations that could occur in the span of next three years. Because of

greater incidence of brain related disorder, we expect the sales to increase in the coming two

years. However, because of increased attractiveness of this segment, we have factored in some

expected competitor events which could affect sales.

Year 1 Units Price Sales Year 2 Units Price Sales

Jan 500

$300

$150,000 Jan

1,300

$300

$390,000

Feb 700

$300

$210,000 Feb

1,500

$300

$450,000

Mar 800

$300

$240,000 Mar

1,200

$300

$360,000

Apr 900

$300

$270,000 Apr

1,300

$300

$390,000

May 1,000

$300

$300,000 May

1,400

$300

$420,000

Jun 600

$300

$180,000 Jun

1,600

$300

$480,000

Jul 500

$300

$150,000 Jul

1,200

$300

$360,000

Aug 1,000

$300

$300,000 Aug

1,300

$300

$390,000

Sep 500

$300

$150,000 Sep

1,200

$300

$360,000

Oct 500

$300

$150,000 Oct

1,000

$300

$300,000

Nov 1,000

$300

$300,000 Nov

2,000

$300

$600,000

Dec 1,000

$300

$300,000 Dec

1,100

$300

$330,000

Year 3 Units Price Sales

Jan 1,400

$300 $420,000

Feb 1,900

$300 $570,000

Mar 2,000

$300 $600,000

Apr 1,800

$300 $540,000

May 1,900

$300 $570,000

Jun 2,000

$300 $600,000

Jul 1,400

$300 $420,000

Aug $450,000

1,500 $300

Sep 1,500

$300 $450,000

Oct 1,400

$300 $420,000

Nov 2,000

$300 $600,000

Dec 1,400

$300 $420,000

20x3 20x4 20x5$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

-

5,000

10,000

15,000

20,000

25,000

$2,700,000.00

$4,830,000.00

$6,060,000.00

Sales Units

3 Years Sales Forecast

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -

1,000

2,000

3,000

4,000

5,000

6,000

20x3 20x4 20x5

3 Years Monthly Sales Volume Forecast

Web Strategy/Social Media

Outsource design and development, content creation and analytics.

Objectiveso Increase exposureo Increase traffico Gain marketplace intelligenceo Develop loyal customerso Improve Saleso Create new partnershipso Reduce marketing expenses

Resourceso Tedo Facebooko Twittero LinkedIno Blogso YouTubeo Podcastingo Search Engine Optimization

Critical Risks/Evaluation

Emotiv Insight believes the best target market to launch its product is rehabilitation centers,

hospitals, organization for mental disabilities, and disabled veterans diagnosed with Post Traumatic

Stress Disorder. However, it is imperative that the following risks are understood and monitored to

ensure a successful launch.

1. Small target market may not be successful enough to fully launch the product worldwide. The

target market, if successful, can create a strong reputation and profit margin for the Emotiv Insight that

can then be leveraged to expand the product and the brand into a larger market.

2. Unsuccessful product launch due to failed marketing plan implementation. In order to mitigate

this risk, Emotiv Insight will periodically gauge the effectiveness of the marketing plan by monitoring the

key metrics; Budget, Performance toward meeting marketing plan objectives, Return on marketing

investment dollars (ROI), monthly profit and loss results, etc.

3. Heavy regulation in the healthcare industry can cause significant impact to the bottom line. A

portion of product development dollars will have to be allotted to ensure compliance with applicable

regulations. Currently, Emotiv Insight has not been approved to launch globally, and for the strategic

company goals, this will need to be accomplished.

The key to the success of Emotiv Insight is the agility to adapt and adjust to meet the company’s

goals. In order to adjust, Emotiv Insight has the following contingency plan if these risks are realized;

Adjust target market to the “healthy lifestyle” market. It does not have the same potential to build the

strong product reputation from the medical community but there is less cost associated due to decrease

in regulatory (non-discretionary) product spend and the market size is significantly larger so there is

more ‘bang for the buck’.