procter & gamble developed convenience companions consumer robotics (‘bots)
DESCRIPTION
Procter & Gamble Developed CONVENIENCE COMPANIONS CONSUMER ROBOTICS (‘BOTS). MULTIPLE ‘BOTS FROM A COMMON ($30) TECHNOLOGY PLATFORM. SECURITY. CLEANING. Home Safety System ‘Bot. Patrols house while you sleep, work, or vacation No Installation - Works right out of the box Home safety - PowerPoint PPT PresentationTRANSCRIPT
Procter & Gamble DevelopedCONVENIENCE COMPANIONSCONSUMER ROBOTICS (‘BOTS)
MULTIPLE ‘BOTS FROM A COMMON ($30) TECHNOLOGY
PLATFORM
CLEANING
SECURITY
• Patrols house while you sleep, work, or vacation• No Installation - Works right out of the box• Home safety
– Temperature (risk of freezing pipes or fire)– Gas and water leaks (washing machine, roof, bath)– Smoke (listens for ceiling smoke alarms)
• Intruder deterrence & detection– Makes sounds to suggest home occupied– Motion sensors
• Uses cordless phone to call numbers you specify– Pager, cell phone, neighbor, relative
Home Safety System ‘Bot
Why Safety/Security • High-order need
– People will pay whatever it takes to feel safe
• “Home safety system” very appealing!– “Does everything I need”
• Intruder deterrence & detection plus leaks, fire
– Installation ease – just plug it in
• 52% purchase intent at “reasonable price”– Will improve; 37% fence sitters
• $353 mean “reasonable price”, $200 median
‘BOTS HAVE “WOW” ONE OF THE MOST LONG-DESIRED (BUT NEVER
AVAILABLE) PRODUCTS EVER TO COME TO MARKET - - LOWER INITIAL ADVERTISING COSTS
Sony sold out $100 million in a few hours by word of mouth
THE SWEET SPOT
Fun, Companion-
ship
Functional
Increasing Automation
Increasing Human Interaction
Clean Air bot
$30 MASS-PRODUCED ‘BOTS ARE ON-TRACK TO BE THE “MODEL T” OF THIS
CENTURY
$4,500 Dyson vacuum$140,000 Cyberguard $4999 ISR avatar
5X cost at $149.95 retail
$149.95 PROFIT STRUCTURE
$4.94
$11.45
$14.97
$44.70
$30.00 $42.94
Warranty/Returns
SGA
Sales & Merchandising
Trade Margin
Manufactured Cost
Profit
Profit
Trade Margin
Unit Mfg Cost
MULTIPLE SALES INTO A SINGLE HOME BY FUNCTION
CLEANING
SECURITY
CONTINUING SALES VIA PLANNED OBSOLESENCE AND UPGRADE
ACCESSORIES (PC model)
THE LATEST AND GREATEST
PAINFULLYOBSOLETE
FADING FAST
EXISTING MARKETS(INITIAL FOCUS)
• $640 MILLION sales of manual brooms, mops, and dusters;
• $5.1 BILLION U. S. market for residential security devices and services;
• $2.4 BILLION in North American sales of manual carpet cleaners
NEW-TO-THE-WORLD MARKETS(future development and patents)
• A remote PHYSICAL AMBASSADOR (projects your remote physical presence - - being in two places at once - an Avatar.)
• Remote INTELLIGENCE as a service (entities, security, companionship, elder care, pet monitoring, etc.)
INITIAL (target) OUTLETS• Specialty Catalogs e.g. Hammacher
• QVC
• PetSmart
• Tupperware Parties
• Corporate Holiday Gift Packs
• E-commerce (P&G I-ventures)
• Comdex, Consumer Electronics Show
SCALABLE REVENUES• SOFTWARE DOWNLOADS (new personalities
and functions)• ‘BOT RELATED SUPPORT SERVICES (e. g.
security monitoring, remote provision of intelligence)
• ‘BOT MAINTENANCE AND SERVICE CONTRACTS
• PURCHASE REBATES from service providers (MSN, ADT, ISP’s, Atlantic Bell)
“RAZOR AND BLADES” REVENUESAUTOMATED USE OF CONSUMABLES PROVIDES FOR REVENUES FROM SALES OF CONSUMABLES
AND C0-BRANDING
BATTERY PACKS
REVENUE FROM AGGRESSIVE PATENTING
• Exclusive Licenses to key Patents and Patents Pending (from P&G)
• “Frequent Filing” around early consumer experiences and marketing research
• Filing patents on new to the world Business Models (e. g. remotely provided intelligence.)
THE INVESTMENT OPPORTUNITY
• SIZE OF POTENTIAL MARKETS NOT CONSTRAINING
• $217 MILLION SALES IN 2004• PROFITABLE OPERATIONS
BEGINNING IN 2003.
MULTIPLE LIQUIDITY EVENTS • PRODUCTS TARGETED TO
STIMULATE FORTUNE 50 INVESTMENTS.
• DEVELOPING NEW, HIGH-VISIBILITY MARKETS TO STIMULATE IPO.
Annual Sales
0
50
100
150
200
250
2001 2002 2003 2004Millions
THE INVESTMENT$4.0 MILLION CAPITAL NEED
2001 $2.9 MILLION operating cost
2002 $1.1 MILLION operating cost
2003 $12.9 MILLION operating income
2004 $37.8 MILLION operating income
DISCUSSION
Segment ProfileFunctional Needs
• Needs More Time (automation)
• Gives a better result (always clean, fresh)
• Needs More Security
Aspirations• Stress Relief (save time, provide service,
pleasant experience ie. Aromatherapy)
• Companion/Amusement (sounds, movements, reactions, interactions or no interactions)
• Self / External Image (I’ve Got One!)
• Appearance (polarizing, distinctive, elegant, fun)
• Background Story
Initial Segments
• Professional women - - Women Entrepreneurs, Managers, Travelers
• Pet Owners
• Upscale Technophiles
• People buying Gifts for these Segments
• College Startup Gift Packs and Wedding Registries
Sample Media
• Working Woman Magazine
• Delta Airlines Sky Magazine
• Frequent Flyer Points Redemption / offers
• Internet Presence at Robotics Clubs, and iVillage.com
• Quality Value Channel (QVC)
REVENUE STREAMS • SALES OF ‘BOT UNITS
• HARDWARE ACCESSORIES (PC model)
• CO-BRANDING and PROMOTIONS of consumer goods
• SOFTWARE DOWNLOADS and SERVICES (SCALABLE)
• PROMOTIONS & PATENT LICENSING
Consumer Ranking of ‘Bot Benefits (n=454)
1. Device that mops floors while you sleep
2. Patrolling home security system
3. Moving air purification device*
4. Device that picks hair out of carpets & rugs*
5. Device that kills weeds & sows grass seed
*especially appealing to pet owners
Results of “Dusty’s” Initial Qualitative In-Home Testing
• Enthusiastic response
• Overwhelming agreement they would use product daily
– 2.5-3x normal consumption of consumables
• Belief that Dusty random pattern does cover floor
• Numerous improvement suggestions
Why Hard Surface Floor Cleaning • Unmet consumer need
– Saving even a few minutes is important
– Wet mopping is hated• Uses only quiet time she has
• Huge market opportunity– $400 million Swiffer, WetJet eventually bigger
– Bots’ automation 2.5-3x consumables usage
• Requires both robotic and cleaning competencies
MARKETING PLANS• Recruiting Marketing Officer likely with CEO • P&G Marketing and external specialists • Target Segments (Time Starved Women, Pet
Owners, Gift Buyers), Target Media• Use News (WOW), sampling, demonstration,
targeted advertising to generate WOM Buzz.• Marketing Alliance Options for revenue and
credibility
REVENUE FROM PROMOTIONAL DESIGNS AND SOFTWARE
HIGH VISIBILITY IS KEY TO ADVERTISNG