Marketing Plan

Market Analysis

Past Performance - R Markets already existing for this product How product was sold into Care Homes Profitability and Pricing Care Home Competitors Rylan

Market Information Sources: Size: Location: Trends: # Houses built are expected to decrease to 215 475 in Canada in 2008, 194 100 in 2009 Large part of the housing market is in large urban centres Trends are the housing market is decreasing * Canada Mortgage and Housing corporation

Competition - R Major Competitors: Share of Market: Strengths and Weaknesses: features, quality, price, durability, service, selling terms, profitability, customer perception Competitive Advantage to Competitors Trends to reduce competition Barriers for competitive entry Rylan For saskatoon – look through electricians – home automation, alarms, security, sprinkler Technical Strength – super technical strength – we’re doing the engineering, so we can adapt Very easy and fast to customer’s needs. We are the OEM Location awareness of the system Good quality – Really customize what the customer needs – different needs – enclosures etc. we can adapt it if we were just an Electrical installer we would bel imited to suppliers strong because local Competitive Advantage – we’re going in with a hybrid approach – using suppliers to have product, but because we built stuff we have an edge to provide fully customized systems Exploring Patents on some technology

Customers - R Who will buy Rate of Sales Where and When sale will be made Factors influencing buying decisions- all the good things Buyer preferences and needs - mkt research Product meets those needs Influencers on the buyer’s decision – govt credits, Rylan Developers first year sales of 5% of housing starts – so approximatly 100 homes – 200 homes in 2nd year developer gives us the ability to take home automation to the next level and more than just inside home Key things, energy consumption, enviroment and saftey – developers of adult living communities would be very interested beause its similar to care homes that we are in all ready but we would have higher percentage of product penetration Lighting / energy consumption

Target Market Most attractive consumers Easiest and lowest cost to enter Weakest and most vulnerable to competition Advantage over competitors in these markets How much market share DP-W can capture Greatest Sales and profit potential Best niche for the company joren

Product/ Service Features - R Product Specifications Key Features of the product vs Competition How customers will perceive the product List of items consumers are asking for Decision: product matches these needs, therefore, keep the design Rylan How adaptable specific design Location – customizabliity

Opportunity Key aspects of the Market Opportunity Complete Sales Forecast of market share estimates for each target market Joren

Marketing Strategy

Sales and Profit Objectives - R “Our objective is to obtain a --% profit by selling xxx units of our new smart home package to house owners by the second year of operation”. Rylan – to ask Herb 40% - $2500 - they pay this – cost ~$1500 per home (gross)

Channels of Distribution Distribution method: Cost effective Technical and sales support Specific distributors that are good matches for our company and our product/service Joren

Pricing Strategy - R Competitor’s price Combination of price and volume to achieve profit objectives Different prices for different markets? Discount options Price maintenance Rylan Look at X10 for pricing or Leviton. Standard price unless customization – Flat rate for devloper – the device will be what They want to sell because they can charge the customer more, they can could double what the cost to them is. Weather we give a discount or not shouldn’t matter

Service Mix Dominate target market Advantages in price compared to Competition Restrictions in certain target markets or specific product services Joren

Selling and Advertising Objective: personal promotion Role of sales force Expansion of sales force Training and tools for sales force Use of media Sales force budget Joren

Marketing Plan Budget Cost of Marketing Plan on Pro-forma statement joren