Situation Analysis

You have not had a chance to charge

your phone, but you grab it and try and
make a call anyway andthe battery
dies!
How many times has YOUR phone died
when you NEEDED it the most?
Situation Analysis
The market has requested a self-
sufficient energy pack which would
make the mobile phone truly mobile.
Motorola and Freeplay have cooperated
to introduce the FreeCharge, enabling
phones to be powered anywhere,
anytime.
Situation Analysis
Designed for people on the move who want
to stay in touch:
Business trips
Car trips
The outdoors
Hiking
Boating
Fishing
Camping

Situation Analysis
Essential tool in emergency situations:

Emergency calls
Last minute plans
Situation Analysis
Mobile phones are consistently chosen as the
product to be powered by a self-sufficient
generator
2 out of 3 cell phone users would be
interested in buying a self-sufficient phone
charger
Interest is great among heavy users
1 out of 3 mobile phone users worry about
their mobile phone running out of battery
when they are in a place they cannot
recharge it
Situation Analysis
Freeplay conducted 20 focus groups in the
USA, Germany, UK, and South Africa to
understand customer reactions to mobile
phone chargers
Revealed:
Frustration exists with battery performance
Demand exists in both developed and
developing countries
Situation Analysis
The FreeCharge is the worlds only self-
sufficient energy pack for mobile phones
For under a minute of winding, the
FreeCharge provides energy for a 3-4 minute
phone call or for several hours of standby
FreeCharge is to provide assured contact,
safety, and convenience.
Marketing Mix: Product
The Motorola Freecharge
- the size of a sunglass case with a fold-out
handle, can be cranked before or during
cellular phone conversation
- 11.5 ounce, only twice the size of the
average cell phone
- consists of a small generator unit which can
be connected to your phone via plug-in
module
Marketing Mix: Product
- 45 seconds of winding will allow 4-6
minutes of talk time and SEVERAL hours of
standby time
- the more you wind the more power you put
into the unit
- equipped with LED change input indicator,
which tells you how fast to wind and if energy
is left in the unit
- built to fit into the palm of you hand and be
large enough to comfortably energize the unit
through a robust winding handle
Add that up and here is what you
get:
Freeplay Energy Group
Founded in 1994 and headquartered in London
Leading developer of self-sufficient energy
technology
Incorporates multiple energy sources, including
solar panels, rechargeable batteries and patented
wind-up capabilities
Working to distribute its products worldwide by
joining with companies such as Motorola.
Since 1995, has distributed over 2.5 million
radios and flashlights using the Freeplay
technology

Marketing Mix: Price
Price is consistent with consumer
expectations, based on market research
(Heavy Users, New Jersey, September
2000)
2/3 of these people said they would
definitely buy at $79.95
Prices mentioned by target consumer
groups ranged from $49.95 to $125.00
Suggested retail price is $65.00

Where and When?
Expected to Arrive in stores this month,
April 2002
Expected in UK in June
Target Market
Designed for busy people on the go
who want to stay in touch on business
trips, car trips, in the outdoors, hiking,
boating, fishing, camping, or wherever
users are without electricity but are
willing to crank
Target Market
Outdoor enthusiasts (recreational market)
do not always have easy access to electricity.
Independence from batteries gives them the
added safety and convenience of knowing
that they can keep in touch at all times.
There are 189 million outdoor enthusiasts in
the USA alone
Emergency concerned households believe
mobile phones are necessary safety devices
in weather and other emergencies, but are
concerned about battery failure
Target Market
Frequent travelers are often
frustrated by an inability to use their
chargers in foreign countries and by
shortage of available time at stationary
electrical outlets
Developing markets offer opportunity
where electricity availability lags behind
mobile phone penetration
Target Market
Today more than 110 million people are cell
phone subscribers
Scarborough's market trending data shows
that in 1999, slightly less than half (48
percent) of American adults owned a cell
phone. In 2000, more than half (55 percent)
of U.S adults owned a cell phone and in the
latest 2001 study, cell phone penetration
numbers are up to 62 percent

Unique Selling Proposition
What makes Motorolas FreeCharge different
from the competition?
Unique Selling Proposition
It is the only cell
phone charger that
does not need an
external energy
source to recharge
and store energy
Unique Selling Proposition
What the competitors are offering
Nokia
Benefits: Small, Light-weight,
and slim




BPS-1
Unique Selling Proposition
Panasonic
EB-BSD75

EB-BSD35

EB-BSD93

Benefits: extended talk and standby time, super slim,
Unique Selling Proposition
Ericsson
BUS -11
Benefits: extended use, ultra slim, compact, use with laptop,
high capacity, travel chargers


BDA-10
CTR-10 (travel)
Unique Selling Proposition
Unique Selling Proposition
All competitors products require an
external energy source!!
Motorolas Competition
Nokia is the #1 manufacturer of cell
phones
Motorola is #2
Nokia has 40% more market share than
Motorola
However, Nokia does not currently offer
a product equivalent to the FreeCharge
FreeCharge Competitors
Aladdin Power
Portable generator
Needs no external
power source
Charge with squeeze
of hand
1.6 watts/90 cranks
a minute
$59.95



FreeCharge Competitors
Electric Fuel: Instant Power
Lightweight, disposable battery
Charges cell battery 3 times
Connects to phone through Smart
Cord
Only buy Smart Cord once, but
must buy replacement batteries
Once opened, good for 2-3 months
$14.95 with $9.95 replacements

SWOT Analysis
Highlighting Advantages and
Disadvantages, in order to
maximize Strengths and
Opportunities, and to minimize
Threats and Weaknesses. All
focused on helping a manager
strategize.
STRENGTHS
Motorola and Freeplay brand names
Uncharted market, with little competition
Free Charge only works with Motorola products
(Boasts their Sales)
Fits in the palm of a hand, which is much smaller
than a usual transformer(semi-conductor)
Two Batteries (Internal and External), so there is
always a supplemental energy source. (Physical
crank and regular battery support)
Top prize in Las Vegas, as the 2002 Consumer
Electronics Show Innovation Award winner.

WEAKNESSES

Weight and Size (11.05 ounces = 2 times
the weight of a normal cell phone)
Only accessible in Motorola Phones (Until
July)
Cost Up to an additional 80 dollars
Cranking is physical, but the trend of the
world is toward less physical labor.
Inconvenient Not for lugging around as a
side hip pocket accessory.

Cont WEAKNESSES
Motorola Sales
2000 = 10.1 billion
2001 = 7.3 billion
2002 = ?
Net loss in 2001 of
1.2 billion
Motorola Stock trend
is on a decline
(As seen to the left)


OPPORTUNITIES
Sale Trends of Communication
Equipment
July and August = 6 billion a month
After 9-11 drop to approx. 3.6
billion a month
Slowly the trend is coming back,
and its predicted that growth will
continue and increase to about 15%
more in July/August 2002.
With more Cell phone use, comes
more possible need for Free Charge.
Cont OPPORTUNITIES
Market Hiking, outdoors, tirps, and people
on the go.
More of a nice to have kind of accessory
Europe is less focused on convenience, and
they are more accustomed to wireless.
Hence, they cant risk having no energy
Africa 20 to 30% electrification.
Service providers need a supply of energy and
capability for connection
Hence, Opportunity in Foreign Markets
THREATS
Six minutes of talk time is more of an oops, I
ran out of time accessory. I dont think it will
replace the generic charger on the market.
stated Keither Nowak, Nokia.
Hence, threat any enhanced battery that
can last longer than the average battery.
It threatens the physical necessity of FreeCharge

Cont THREATS
Gas power
Motorola, NEC, and
Sony
Charged for a month
Only a little larger,
and heavier than the
normal battery
Estimate that 200
million will be in use
by 2010.
Solar Power
2 hours of solar
charging equates 18
minutes of talk time.
Sunpower Systems
Spectron type of
battery
Thank You
We will be happy to
answer any
questions.