“Our case is the RYTEcase” YTEcase

Mission statement “To provide consumers with quality iPhone cases at a competitive price that is stylish and functional, backed by the best service in the industry”

Product  Why it’s such a great idea - RYTEcase offers iPhone cases that caters to people who want to personalize their iPhone with style and protection at the perfect balance of price and quality  Wow - Great quality product and service that is the best in the business  Excellent purchase experience  Unique – better selection of design, colour, quality and functionality than the low end cases yet at a lower price than the high end cases. Great buying experience. Great after service.

Product and Supplier  We provide cases for the iPhone 4/4S and 5  A wide variety of colour, design and functionality will be offered to cater to the various demands of the consumer  Packaged to emphasize quality  Our suppliers are Shenzhen Ketaili Technology Co. Ltd and aHappyDeal of China

Finance  Start up cost would be $75,000 - Legal ($2,500), accounting ($1,000), office/warehouse equipment ($20,000), telephone ($2,500), website ($5,000), travel ($12,000), inventory ($12,000), sales and marketing ($5,000), package design ($5,000), miscellaneous ($10,000)  Operational cost would be $12,500 per month (first 6 months) - Office/warehouse ($2,500), wages ($5,000), hydro ($1,000), telephone ($500), IT ($2,000), sales and marketing ($1,000), accounting ($500) Operational cost would be $ $16,200 per month (months 7-12) Office warehouse ($2,500), wages ($7,500), hydro ($1,200), telephone ($500), IT ($2,500), sales and marketing ($1,500), accounting ($500)

Finance (con’t) Operational cost would be $19,100 per month (months 13-36) Office warehouse ($2,500), wages ($10,000), hydro ($1,400), telephone ($700), IT ($2,500), sales and marketing ($1,500), accounting ($500)  Average cost per case sold would be $ case $2.15, packaging $0.45, shipping from manufacturer $0.20, duty $0.43, online payment/credit card fee $1.20, shipping to consumer $1.25 (within North America) Table Research shipping prices

Finance (con’t)  Average selling price is $22.00 per case  Average shipping charge is $2.00 per case (within North America)  Average total revenue per case is $24.00  Average cost per case is $5.68  Average profit is $18.32  Average operational break even is 683 cases per month (so have to sell 683 cases just to cover our costs every month – this does not include the start up cost) The amount needed to start this business should be between $112,500 - $150,000 which would cover the start up and operational costs for 3-6 month

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Advertising  We plan to advertise online through the use of SEO (search engine optimization --- COSTS partly shared with the IT and Sales and marketing budget) and social media such as Twitter, Facebook and Instagram. Why (large following, interactive, allows for sales and marketing efforts, large population of our target market/customers use social media)  We will also try to create partners to offer hyper links to our website to create more awareness of our website and products  We will hold online contests for free cases (using our website and the social media)  We believe after the first 6 months, “word of mouth” will start to increase and more people will know about our product  We will try to create contests through other media such as radio stations with free case giveaways

Shipping  Our product will be shipped from China to Vancouver by sea in a shared container.  Due to the light weight and compact size, shipping in from China should be relatively inexpensive in shared containers and in bulk purchases of a minimum of (cost just to bring a case into our warehouse in Vancouver is $3.23 if purchased in bulks of 1,000 cases at a time)  Due to the lightweight and compact size of the cases, shipping costs to the customer should be minimal  We will ship our orders out through a contracted company at a special corporate rate. Possible companies are Canada Post, FedEx, Purolator and DHL  The customer will be charged for shipping separately with a markup  WORK INTO FINANCE PAGE (? Shipping costs are in the finance page?)

Customer Payments  Customers would pay online at the time of purchase  Payments will be handled through a safe online processing company such as Visa Verisafe and Paypal  Payments would be received right away so there is no waiting period for payment  Details  Exactly how much Number here and in financials (customers will pay the price of the particular case they choose which would be $20-$30)  targeting 1,000 cases per month for first 6 months ** do financials avg profit from each case sold $18.32 x 1000 = $18,320 - $12,500 = $5,820 per month) targeting 1,500 cases per month from months 7-12 months ** $18.32 x 1500 = $27,480 - $16,200 = $11,280 per month

Customer Payments (con’t)  Targeting 2000 cases sold per month for months ** $18.32 x 2000 = $37,640 - $19,100 = $ 18,540 per month

Customer Service  We would include in each case shipment a thank you letter  Provide contact information for any questions and product care instructions  Each customer would have the choice to join our membership where they could win cases, information on new products and first chance to purchase new products before official launch dates  Our website would provide testimonials from customers  Pick ONE RYTEcase “Customer of the Week” and put that person online (with their permission) (showcase that persons phone model, case purchased and their comment, question or tip of the week)  Less wordy

Customer Service (con’t)  We would make any defective exchanges within 30 days as simple and pleasant as possible = pay for the shipping (back to the warehouse, shipping the new product to the customer) = include apology letter and a “special” accessory for that specific phone model

Target Market  Our product caters to males and females from the ages of about 12 to 60 year olds but the focus is towards 18 to 35 year olds  People with the last 3 generations of iPhone’s which currently is the 4, 4S and 5  Tech savvy (not afraid of new technology)  Internet user  Internet/online shopper  North American resident  User of social media such as Twitter and Facebook

Goals  To become one of the main online suppliers of iPhone cases  Measurable number of sales  Create awareness (For people to know our company and know that they can get high quality and durable iPhone cases at low prices  Number hits on website (target avg 0-6 months 10,000, 7-12 months 15,000 hits, months 20,000+hits)  So we get a good reputation and review  # like of FB

Competition  Our competition is society 6, Zazzle, and Case-Mate  We are better than our competition because we have a larger selection and better quality cases than the current low end cases and yet cheaper then the higher end cases  Excellent customer service  It will be convenient for the customers because it will have a fast finish( It wont take a long time to buy a case) - website will be simple, quick, clear and easy purchase experience online

Potential problems and solutions  Gaining customers  partner with more websites to add a hyperlink  Other means of advertising ie. Bestbuy, apple  Possibly sell through select retailers  Retaining customers  Build database of past customers  Follow up with customers  New products  Update website regularly  Our competition could under-sell  keep price competitive relative to quality  Keep low overhead

Growth  Get bigger  By building credibility through good products and service  Increased awareness  Increase IT requirements  Possibily move to larger warehouse if more inventory s required  Increase staffing  Better volume shipping rates  How to expand  Same as above???

Conclusion  Our product has great quality and service is the best in the business  Better selection of design, color, quality and functionality than lower end cases.