Triple H Industries, LLC presents:

‘Home Drone 360°’

VAIDEHI PATEL

ALEJANDRO MOLINA

ALVARO MOLINA

HORACE HEAD

JOSHUA LAMBERT

MKG 540

DR. GRESHAM

18 MARCH 2016

JACKSONVILLE

UNIVERSITY

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Executive Summary

Triple H Industries has created a new technological breakthrough in home security, the Home

Drone 360°. This aerial security platform poise’s itself to redefine security systems becoming the

next leader in autonomous security that provides safety and 360 degrees of protection. This product

was created to help solve current personal security issues for low cost, easy use and with minimal

upkeep. It can help detour and even respond to a security threat faster than any current technology

on the market. The Home Drone 360° autonomous security system is a small lightweight tracking

system that includes an integrated infrared & night vison camera that connects with Wi-Fi and

GPS. The GPS smart alert communicates with the security’s users and even notify emergency

services if needed. Here at Triple H Industries we go through great extents in providing a personal

autonomous home security drone that will dominate and take over a majority of the market within

2 years. Currently, this product is a first of its kind and no other current competitor can provide

what we’ve produced. We strife to produce low cost surveillance drones while maintaining an

efficient production line allowing our brand to expand and grow into the future.

“It’s like having an extra set of eyes and ears when you’re away”.

HOME DRONE 360°

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Table of Contents

The Market Need ............................................................................................................................ 3

Situation/Environmental Analysis .................................................................................................. 5

Marketing Objectives ...................................................................................................................... 6

Marketing Strategy.......................................................................................................................... 7

Marketing Tactics .......................................................................... Error! Bookmark not defined.

Evaluation and Control ................................................................................................................. 13

Attachment 1: Basic Data Document ............................................................................................ 13

Attachment 2: Prototype Concepts ............................................................................................... 14

Attachment 3: Five Year Pro Forma ............................................................................................. 19

Attachment 4: Market Segmentation .......................................................................................... 130

Attachment 5: Buy – Sell Box ..................................................... Error! Bookmark not defined.1

Attachment 6: Financials ............................................................................................................. 22

Attachment 7: Critical path launch ............................................................................................... 23

Attachment 8: Focus Group .......................................................................................................... 24

Attachment 9: Consumer F.A.B.................................................................................................... 26

Attachment 10: Contingency Plan ................................................................................................ 27

Attachment 11: Interviews……………………….…………………………………………..28-29

References ..................................................................................................................................... 30

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THE MARKET NEED

According to FBI.gov (2015), nearly 2 million domiciles in the United States are burglarized every

year. This includes forcible entry, unlawful entry and attempted forcible entry which occurs at an

astonishing rate of 4 times per minute. In an increasingly insecure world, most Americans are

doing everything they can to protect their families, themselves and their property. In the past,

security guards, home security systems, fenced in property, weapons, lights and man’s best friend

have been the existing deterrent for most criminals. Even after having all of these security measures

this old way of thinking gives your home a 1% chance of still becoming a statistic.

As technology continuously improves and time progresses, existing preventions are becoming

easier to defeat and are highly expensive to maintain. In our fast paced society, the need for

information and technology has become increasingly imperative. The safety of our families and

everything we love unfortunately depend upon it. Just think everything you’ve worked so hard for

can instantly be taken away without notice or disregard. Wouldn’t it be comforting to know that

when you’re away from home that your loved ones and possessions were taken care of 360

degrees? Everything that’s currently on the market doesn’t give you complete 360 degrees of home

security coverage.

What if I told you that there is a new way to approach these security issues and relieve your

concerns so you can put your fears to rest? Our new innovative product can do just that.

Currently on the market there are many ways to protect your home. Most however are insufficient

and allow very little control over preventing a potential break-in or crime in or around your home.

By combining the existing technology of home security imbedded with aerial drones we can help

reduce and even detour the most skilled criminals. Home Drone 360 will provide the comfort and

the safety that all of our families need and deserve in this unpredictable and increasingly volatile

world.

This innovative technology will make home security a worry of the past. Home Drone 360° will

provide an effective product that will satisfy even the most un-savvy tech users. This system

utilizes night vision, infrared tracking system, Wi-Fi, audio, video and camera system to track and

secure your home. The user can program fail safes and specific procedures that the drone follows

to include: who to notify in an emergency. This drone has the ability to communicate with

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emergency services or any of its authorized user. In the event of emergency, the system is designed

to link all authorized user’s smartphones, personal computers and tablets to alert them of a

developing security situation at home. This will give the user the ability to program any number

into its memory.

This product affords you and your family the strategic advantage to easily monitor, track and

instantly respond to a threat or potential security breach with a tap on your cell phone. Home Drone

360 also allows for the most popular current home security companies like ADT, Safe touch and

Brinks users to incorporate this technology saving you time and money. For the most part, it will

eliminate the need for expensive security cameras, cumbersome wires, bright lights, fences and

even man’s best friend if you’re a cat lover. This product offers the ability to protect the home

when you’re not available. It’s like having an extra set of eyes and ears when you’re away. This

product offers so much assurance, flexibility and safety that you’ll never again come home

wondering if the safety of your domicile has been compromised. We provide to you the new age

wave of security; Home Drone 360, because we’ve got your security covered 360 degrees. See

attachment one for visuals and specifications.

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SITUATION/ ENVIRONMENTAL ANALYSIS

The primary target audience will be home owners looking to find better ways to keep their families

safe from burglars. Families spend around $600 to $1,200 annually. This business is growing

rapidly because home security systems are up to 300% more likely to be broken into (Safeguard

the World, 2010). It’s expected to grow to $34.46 billion market for next year (Williams, 2013).

Right now there are 123 million houses in America and only 20 % of the houses have security

systems. It’s expected to raise up to 64% in the next five years. For our competition, they will be

only the security companies that are already established with security cameras. The advantage

that we have, it’s because right now there is not a company that have drone security systems. We

will try to create partnerships with all security companies in the market to promote our product.

All of our drones have to be registered in the FAA registration system (FAA, 2016). Below is a

list of all the rules that we need to follow.

o Fly below 400 feet and remain clear of surrounding obstacles

o Keep the aircraft within visual line of sight at all times

o Remain well clear of and do not interfere with manned aircraft operations

o Don't fly within 5 miles of an airport unless you contact the airport and the control

tower before flying

o Don't fly near people or stadiums

o Don't fly an aircraft that weighs more than 55 pounds

According the National Associations of Realtors, our biggest target by age will be Generation

Y that has the largest share of home buyers at 32% that is larger than all baby boomers

combined (National association of Realtors, 2015). The younger boomers comprise 16% and

older boomers comprise 15%. The generation X consists 27% of recent buyers and lastly silent

generation is the smallest at a 10%. Moreover, while the demographics of recent buyers fall

mostly in the expected range, income peaks for ages 35 to 59, and the prevalence of children

in the home peaks for buyers 35 to 49.

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MARKETING OBJECTIVES

Sales

Year 1: We expect year one unit sales to be 100,000 units (no less than 90,000), equating

to year one sales of $4.8 million.

Year 2: Based on our projections of a growth rate of 22%, unit sales will increase to

121,500; resulting in a revenue of $5,832,000.

Year 3: We expect unit sales to increase no less than 22% to 147,623; resulting in revenue

of $7,085,880.

Market Share

Year 1: We will have 100% of the market share due to being original producers/inventors

of this product.

Year 2: Due to the prevalence of drones in the market place, we estimate our market share

will fall to 90%.

Year 3: We are predicting rise in competition, there home drone “clones”, so we are

assuming market share will fall to 80%, a level it will stay close to until year five.

For additional information on margins (gross, operating, and profit), reductions in expenses, and

earnings, see Attachment 3.

Other performance measures:

Year 1: Be featured in magazine

Year 2: Be featured on “Must Have Items of 2016”

Year 3: Spread into other industries particularly: prisons, daycares, realtors because of their

abundance all throughout the country (See Attachment 4).

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MARKETING STRATEGY

Product

The Home Drone 360 is a quadcopter (four motors and propellers), featuring a top of the line 4K

camera, a gyroscope to determine orientation and an accelerometer to determine speed. The drone

will be made of a hard compound plastic making it weatherproof, fire resistant, and rust proof. The

housing unit that it docks in while in standby or charging mode will be made of sheet metal, wood

and decorative laminate to include solar panels that will keep the drone continuously charged

around the clock.

All packages will have included in the original container package a user manual, FAA Drone

Registration form, Exemption 333 form, and a sheet listing regulations concerning drones such as

“Altering HD 360 is strictly prohibited”

All drones come with a 1 year limited warranty

Price

We determined that the total cost of producing each drone will be $16; with direct materials costing

$6.00, direct labor costing $5, which leaves $5 for overhead.

The product will be marked up 100%, then be sold to distributors for $48.00. The distributor is

expected to mark the price up 25% to $60 then sell to retailers. Retailers are expected to mark the

price up 100% to $119.99 which be the end user cost (See Attachment 5).

We are considering two volume pricing options, the all unit’s model and incremental model. The

all units model is a model that reduces the cost for the buyer every time the reach a certain tier.

For example, a buyer that orders 500 units will pay $47.60 per unit; a buyer that orders 501-999

units will pay $47.50 and so on. The incremental model applies discounts only to units ordered

above a certain level. For example, the first 500 units will cost $47.60; 501-999 units will cost

$47.50 and so on. If someone orders 600 units they will pay $47.60 for 500 units and $47.50 for

100 units (See attachment 6).

The credit terms we will offer distributors is 2/15 net 45. This means that distributors who pay off

their credit within 15 days will be able to reduce their bill by 2%. If they elect not to pay within

ten days they will have 30 more days to pay their entire bill; a total financing period of 45 days.

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The most common terms offered are 2/10 net 30, so these terms will encourage distributors to do

business with us.

Promotion

Proper timing can be the difference between successful or failed advertising campaign. We believe

the ideal time for the initial product release and the yearly concentrated marketing campaign is in

the spring (See Attachment 7). During the summer months families are away from home traveling

substantially more than any other time of the year. Publicizing our product during this time will

result in tremendous growth opportunities.

Home Drone 360 will eventually be promoted mainly by retailers who will utilize their

various promotion techniques to reach potential customers. However, while in the

inception stage our marketing department has formulated several strategic approaches that

would increase both exposure and acceptance of the Home Drone 360:

o Target families with children. Emphasize that peace of mind will result in increased

focus and productivity in other areas and in their career due to having one less thing

to worry about.

o Feature police and fire personnel in commercials endorsing the product.

o Coordinate with home insurance companies to offer exclusive discounts to clients

that own a Home Drone 360°.

Place

A focus group held at Jacksonville University found that potential users would like to see this

product offered on Amazon.com, as well as at Costco’s, Best Buy, and Walmart (See Attachment

8). We plan to take their advice and reach out to the aforementioned retailers via our B2B sales

team, in order to take advantage of their established market share and brand equity. We will

emphasize to these retailers that this is an opportunity to take advantage of a technological

breakthrough that will boost revenue.. We will also emphasize that due to the fact that the Home

Drone 360° is a durable, weather-proof product, transporting and storing it should not pose a

problem or require special considerations like most products.

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Physical Layout

We will make arrangements with retailers in order to have the drone displayed at the main entrance

area during our yearly promotional campaign. The promotional event will feature:

Drones of all shapes, sizes, and colors in displays, actively running and in packaging

material.

An active Q & A learning booth.

Video screens and TV’s in the electronic section continuously replaying footage showing

drones “in action”.

People

In order for the Home Drone 360° to be successful, there must be knowledgeable staff available

to provide customer service and assist with any issue that may arise. We plan to hire and train sales

representatives, technicians, and regulation experts to meet customer needs.

Staff training will be made available to sales representatives employed by the retailers to ensure

they are familiar with the features, advantages, and benefits of Home Drone 360°. Technicians

will be made available to provide step by step set up, repair, troubleshooting advice. In regions

that the Home Drone 360 has saturated, we plan to open a local office/facility so that technicians

will be on call as well. Lastly, we will employ regulation experts whom will serve as a

knowledgeable resource on federal, state, and local laws concerning drones.

The HD360 will be made available to all employees who are affiliated with us for 50% off the

wholesale price because our goal is 100% ownership by employees. We intend to build employee

commitment and motivation; and so that our staff are able to relate to customers better due to

having direct personal experience with HD360.

Process

Manufacturer

o Once we receive the Federal Aviation Administration’s (FAA) Special

Airworthiness Standards by passing a series of test to ensure public safety we will

begin to mass produce HD360. Since we will be working with large well

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established companies, we will not need a fleet of commercial trucks to deliver our

product.

Retailer

o The product will come with a 6’ tall by 8’ wide metal floor display for the entry

way to each retailer. However, this product will have strict positioning guidelines

to prevent product lockout.

Customers

o The only task customers must complete after purchasing the Home Drone 360° is

to go on the FAA’s website and complete an Unmanned Aircraft Systems

Registration or mail the one in that’s provided in packaging. Federal law requires

that all aircraft in national airspace must be registered.

Positioning

Our goal is to be known as a corporation that’s trusted by Americans to safeguard their most

valuable, irreplaceable asset, their families. We plan for the Home Drone 360° to eventually be a

much needed addition to any residential or commercial property that needs to be safe and secured.

In addition, we would like to be able to eventually state that prisons, daycares, and the majority of

families in America to name a few, trust us to provide safety and security.

The first step we are going to take to position ourselves in the security market is to add a unique

characteristic to the HD 360. An intertwining “SS” will be imprinted on every drone, which stands

for safety and security. This symbol will be trademarked and strategically marketed in order to

positon ourselves and separate us from competition in order to establish us as a well-known

company with brand equity.

It will be marketed as a smart device that is autonomous, intelligent, lightweight drone that

preforms numerous security functions simultaneously and in real-time. This new security platform

will allow property owners to forget about potential security threats so they can spend their time

focusing on more important matters. This product is a new “one of a kind” drone that is the world’s

first private autonomous security drone on the market.

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MARKETING TACTICS

We would begin by with tapping into social media where our product can reach more customers

through likes, suggestions or even through product forums. We can take help of Facebook, Twitter,

Pinterest, Instagram, and Linked-In to name a few.

It is important to generate sales in retail stores. During this phase, efforts will be focused to give

our retailers/customers best practices for sales in their individual stores like Best-Buy, Walmart,

Costco, and ADT. Efforts will also be focused on our online retailer Amazon.

Blogs are helpful sources of letting people know about the product and its features, advantages

and benefits. (See Attachment 9)

Uploading and creating videos on YouTube about the product and its usage will promote the

product and help it advertise it to the focused group of customers.

Conducting webinars and teleseminars, live events are a great way to connect with and give your

audience a taste of what it is like to work with them and present the product to them in a new way.

Website serves many purposes like allowing people to learn more about the product, selling our

products and services, helps us to build our list and acts as a marketing hub for our content.

Print marketing pieces & direct mail is a great ways for us to stand out and get noticed. For

example, creating a flier or postcard for networking events you are attending or sending something

to your list via mail announcing an upcoming event will help us promote and advertise the product.

Attractive Packaging is another way of impressing the customer to buy our product. Moreover,

providing irresistible free offers to the customer will attract more customers and increase the sales

of the product.

Our Home Drone 360 is a security driven product which will help the customers to prepare in

advance for the safety of their house.

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EVALUATION AND CONTROL

The Triple H industries will have by-weekly conferences to analyze the products and

prioritize the next stages of the company.

Meeting are via Skype or in person.

Customer service centers

Survey Cards will be sent to assure full customer satisfaction.

Meetings will be made to have any necessary adjustments.

Studies of the product will be made to ensure that the next version meets all our customers’

needs and wants.

(See Attachment 10)

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ATTACHMENT # 1 BASIC DATA DOCUMENT / SPEC SHEET

Field-tested and situation-proven, HHH INDUSTRIES LLC, a small security drone that has set

the highest standards in immediate aerial security monitoring, gathered by you.

Intuitive touchscreen interface

Minimal user training

No launch required

Reliable flight performance even in the most extreme weather and adverse

conditions.

The Home Drone 360° introduces a new airframe and integrated home security system, based on

thousands of hours of testing and successful security missions around the United States. Designed

to meet all government and FAA regulations/specifications, HHH INDUSTRIESTM extends industry-

leading performance and security capabilities.

THE NEW BENCHMARK IN HOME

SECURITY. PERFORMANCE,

RELIABILITY AND EASE-OF-USE.

HOME DRONE 360° / HHH INDUSTRIES LLC

Intuitive interface and autonomous

capabilities – no joystick required.

Home interface: Touchscreen programming,

navigation and camera control.

Dynamic flight plans and programs including

follow me protection or Auto Grid mapping

modes to protect homes autonomously.

Rugged, reliable and capable – dependable

in extreme conditions

Up to 1-hour flight time.

10 min recharge time.

High wind tolerance up to 55 mph.

Ruggedized and weather sealed.

Environmental temperature range -22° to

132°F.

Pre-assembled and collapsible.

Folding design protects payload & battery

for powered standby.

Payload, battery, arms, and legs are easily

replaced in the field without tools.

Bluetooth and Wi-Fi enabled to control from

home base or smart phone devices such

android and apple OS.

Interactive imbedded security device

enabling open contact to local or state

emergency responders.

Advanced optics and networking – smart

imagery and seamless integration.

Stabilized, simultaneously – streaming quad

- Infrared-night vision EO: 1080i60 HD

.565 video, 30MP still images.

Low-latency all digital network – 256bit AES

encrypted streaming video to multiple

devices, embedded geotags and metadata,

Beyond line-of-sight range 3.3 mi integrated

capability extensible beyond 3.3 mi.

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ATTACHMENT # 2 ENGINEERING DRAWINGS / HOME DRONE CONCEPT # 2

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ATTACHMENT # 2 ENGINEERING DRAWINGS / HOME DRONE CONCEPT # 2

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ATTACHMENT 2: ENGINEERING DRAWINGS / HOME APPLICATION

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ATTACHMENT 2: ENGINEERING DRAWINGS / NEST

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ATTACHMENT 2: PACKAGING CONCEPT

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ATTACHMENT 3: FIVE YEAR PRO-FORMA

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ATTACHMENT 4: MARKET SEGMENTATION BOX

We segmented the market into 8 possible separate markets in a 2 x 2 x 2 market

Segmentation cube based on nativity, age and household income.

Group Name:

1) North American Private & Commercial Sectors

2) Evasive & Non-Evasive Applications

3) Store & Online Retailers

List of Market Segments:

1) Private Sector, Non-Evasive Application, Store Retailer

2) Private Sector, Non-Evasive Application, Online Retailer

3) Private Sector, Evasive Application, Store Retailer

4) Private Sector, Evasive Application, Online Retailer

5) Commercial Sector, Non-Evasive Application, Store Retailer

6) Commercial Sector, Non-Evasive Application, Online Retailer

7) Commercial Sector, Evasive Application, Store Retailer

8) Commercial Sector, Evasive Application, Online Retailer

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ATTACHMENT 5: BUY – SELL BOX

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ATTACHMENT 6: FINANCIALS

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ATTACHMENT 7: CRITICAL PATH TO LAUNCH

FEASIBILITY STUDY, FOCUS GROUPS, SIURVEYS , AND

INTERVIEWS

3-6 MONTHS

DESIGN PROTOTYPES

1-3 MONTHS

MEET FEDERAL AVIATION ADMINISTRATION AIRWORTHINESS

STANDARDS

1-3 MONTHS

OBTAIN FUNING THEN MASS PRODUCE

3-5 MONTHS

aDVERTISING CAMPAIGN AND LAUNCH IN THE SPRING

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ATTACHMENT 8: FOCUS GROUP

In Jacksonville University Davis College of Business class room 270 Marketing 534 a focus group

was held involving various MBA students and the professor acting as the moderator. The focus

group consisted of students from United States and international students. The information

gathered in this classroom was if they would like the idea of having a home drone security system

in their house.

The information provided was in a group discussion. The moderator asked the questions and the

students responded with questions or comments about the home drone security system.

The discussion to help us to gather information about the drone:

1. To understand what will make people want to purchase a home drone security

2. To understand their needs when it comes to security in their house

3. To understand their major concerns of having a home drone security

4. To understand where will they want to buy it, warranty, updates, and overall system of the

drone

Participant Demographics

24 participants took part in this focus group:

Both men and women

Ages from 22- 35

Countries from United States, Colombia, India, and Saudi Arabia.

All MBA Students

Only a few married with families

Outcome 1: To understand what will make people want to purchase a home drone security

1. 45% of the focus group said they will use it.

2. They will be interested to purchase a home drone security if:

a. If it will replace current home security systems

b. The price of the drone to be a good price

i. Some said $250 and one person said $799

c. What kind of permits you will need and how to register it.

Outcome 2: To understand their needs when it comes to security in their house

1. Most of the focus group participants want the drone to be able to contact the police and

firemen.

2. To be able to live streaming and recording by connecting to a smart phone or IPad.

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3. The drone to have an alarm and speaker to be able to talk

Outcome 3: To understand their major concerns of having a home drone security

1. 80% of the focus group worries about privacy concern

a. Someone hacking the drone

b. Neighbors spying on your property

c. The drone going over people property

d. Having insurance for the drone

e. Malfunction and hit somebody was brought up by one student.

Outcome 4: To understand where will they want to buy it and how maintain it.

1. To be able to buy it on Amazon, Costco, and Walmart.

2. Rechargeable batteries preferred

3. 100% preferred to owning it than renting it

4. Most of have updates

5. About 50% want some type of training to be able to use the drone for its fullest potential.

6. Have a company to maintain the drone.

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ATTACHMENT 9: FAB

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ATTACHMENT 10: CONTINGENCY PLAN

Drones can invariably fly into unusual situations, whether its swarms of bees, bird attacks,

lightning strikes, or signal jammers, they will need to alert operators of problems as soon as they

arise.

Sales of drones is increasing nowadays so it will soon become the largest new market for insurance

companies.

Every drone that falls within certain classification guidelines will need to be licensed and insured,

so as avoid the contingencies.

Drones need registration and pilot licensing for which the instructions are provided with the

product.

Every drone will have to deal with extreme weather at one time or another. Any condition ranging

from wind, to rain, snow, hail, extreme heat or extreme cold, will need a contingency plan for both

the retrieval and safety so our Home Drone 360 will provide a nest for the drones to keep it safe

from all the weather conditions.

Privacy means different things to different people, but flying drones with cameras, scanners, and

sensors give nefarious people far more capabilities than ever before. Privacy rule for our drone is

quiet safe and it does not disturb anyone’s privacy.

Home Drone 360 is a noise proof device which will not disturb anyone in the surrounding.

To overcome these Contingencies, we will

Provide the guide book which will make the customers work easy

The Drone would be a weather proof

Implement online videos to demonstrate setup process of the Drones.

Immediate replacement of defective product when technical support is unable to fix the problem

We will request feedbacks from the customers and take their suggestions and try to implement it

if possible

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ATTACHMENT 11: INTERVIEWS

We conducted 100 interviews with families with and without children on having a home drone

security system. The interviews were conducted through Facebook and phone calls. We

explained the idea and we received positive response from the majority of the families. We

interviewed from young families all the way to old ones.

Main 3 positive commentaries:

1. Being able to see all angles of the house.

2. When there is movement around the house the drone will go directly to the specific

place.

3. Scare off thieves when they see the presence of the drone.

Main 3 concerns:

1. Privacy

2. Durability of the drone

3. Maintenance

Below are our results.

The chart above shows that 63 families out of the 100 that want a drone and like

the idea.

63%

37%

100 Families

Total Y

Total N

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Of the 63 families, 70% of them that said yes have children in the home. Families

that have kids gave the most positive feedback to the home drone security. The

main concern communicated was that most families wanted this product for two

main reasons. One is the ability to keep an eye on their children while away from

home. Two is the ability to incorporate this technology while it providing extra

benefits.

70%

30%

Families that said Yes

With kids No kids

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REFERENCES

Home Security Statistics. (2010). Retrieved from

http://www.safeguardtheworld.com/statistics.html

Model Aircraft Operations. (2016, February 10). Retrieved from

https://www.faa.gov/uas/model_aircraft/

NAR Research: Home Buyer and Seller Generational Trends | realtor.org. (2015, March

11). Retrieved from http://www.realtor.org/reports/home-buyer-and-seller-generational-trends

Williams, G. (2013, September 9). The Cost of Keeping Your Home Safe - US News.

Retrieved from http://money.usnews.com/money/personal-finance/articles/2013/09/09/the-cost-

of-keeping-your-home-safe