AiFrau and Co.

Choiids Product Proposal Shark Tank

2013

Table of Contents 1. Statement of Need 2. Project Description 3. Budget/Expenses Selling Price Estimated Cost to Make Product or Provide Service Partnership Target Market Evidence of Successful Endeavors Thus Far Percentage of equity and Ask Amount

Statement of Need

In a society that is becoming increasingly dependent on technology, humanity relies on consistency, as well as simplicity. The average computer, however, has made this concept nearly impossible to implement. Intricate designs, malfunctioning systems, with over 100 drivers which one must install establish computers as an entity that is beloved yet hated. Computers, the alleged latest technology, are already beginning to seem obsolete in comparison to Choiids. In order to accompany the needs of society, it is crucial that a product like Choiids be introduced. Choiids assist with educating individuals on technology as well as supplementing them with daily mundane actions, like housecleaning. Individuals are therefore exposed to the power of technology as well as given more time to perform activities they enjoy. Computers also provide vast amount of information over the Internet, making users prone to viruses and other forms of malware-software that can manipulate a users identity, etc. Choiids, however, upon performing a routine update on the personal computer, smartphone, or tablet, ensure that anti-virus software is installed in order to prevent any damages. a. Note: As the number of computers and usage of Internet in the United States increases, there is a very likely chance that there are many users who have difficulty with their computer- therefore prompting the need for technical assistance (Source: U.S. Census

Bureau)

b. Note: These results were compiled as of 2011. Courtesy of McAfee.

c. Note: Due to a rising demand for computer science jobs, knowledge concerning technology has become essential for success in nearly every career. Choiids provide these advantageous skills to children and young adults everywhere to ensure personal achievement.

Product Description Choiids are intuitive technology developed in the past 6 years to address the functionality of the computer. These components assist immensely aiding the average individual-they fix malfunctions with complex technological devices, educate young and old on basic computer functions, as well as assisting with everyday chores. Choiids are resourceful devices that help accomplish the needs of society. They are the state-of-the-heart innovation of the century that greatly surpasses the average computer on the current market. From vacuuming to encrypting codes, they are capable of fulfilling virtually every need of a typical individual. Choiids operate solely on solar power-albeit there is a battery option if desired. They measure 22 cm tall, 6 cm long and 4 cm wide. For the last three years, Choiids has been one of the most prominent sources of innovation, considering its short marketing period. Equipped with the latest in software and hardware manufactured by Hockotech, Choiids access the Internet in order to perform updates, play music, watch videos, etc. Choiids also assist with technological issues. For example, many elderly persons across the world have difficulty operating complex devices such as computers, tablets, etc. Choiids contain a button designed specifically for technological help. If one simply presses the button, and tells the Choiid what the problem is, the Choiid will recognize the question through vocal identification and then will search its database for operations on how to fix computer issues or assist with performing basic computer functions. After searching its database, the Choiid will physically demonstrate how to operate a particular button, software or operating system. If there is problem

with the technology (virus, file corruption), then the Choiid will plug its external drive (included in basic Choiid bundle) into the computer to determine how to resolve the issue. Choiids have also been considered ideal products for the classroom. It has been able to educate nearly 3,000,000 children across the world. Choiids contain an automated voice which therein allows it to speak to users and explain ambiguous concepts. For instance, if a child were to ask a Choiid how to create a Microsoft Powerpoint presentation, the Choiid would reply in its automated voice, describing a step-by-step process, and if the child needed further clarification, it would physically move the mouse in order to open the software. This reduces the stress and tension placed on teachers, for teachers do not have to assist a class of 30 children or more at the same time. Choiids are versatile devices, therefore, they have specialized training and software designed to assist students in all subject courses, including math, science, English, and social studies. These robotic devices also offer courses in AP, honors, and SAT Prep. Choiids have already proved to be a fundamental source of education, supporting millions with technology.

a.

100% 80% 60% 40% 20% 0% 2011 2012

Percentage of schools with SAT scores above global average

Schools with Choiids Schools without Choiids

b.

Budget/Expenses

Selling Price

a. Choiids are currently selling at $615.00 per prototype. Compared with other types of technology on the market (tablets, personal computers, cellular devices) Choiids fall in the appropriate range for advanced technology. Laptops, for example, sold at Best Buy, according to the first 150 computers listed on the website are sold at a rough average of $734. 13. The average for the 64 initial listings for laptops on the Walmart website is approximately $461.86. Estimated Costs a. $45.28=total production costs. $118.20 for importation and exportation duties. Cost to ship one product from Warszawa, Poland (Plant location) to Charlotte, NC, United States (Location of Distribution Company) through UPS services: $190.93. Annual cost to produce and ship: $354.41. b. Expected profit from one Choiid (excluding advertising cost): $260.59 Importing and Exporting Costs c. Importation Rate for United States (classified under Electrical Machines and Apparatus having individual functions, not specified or

included elsewhere in this chapter; heading 8543): 2.6 % of total selling price = $15.60 d. Exportation Rate for Poland: 17.1 % of total selling price (note: product listed under the category of miscellaneous manufactured goods) =$102.6. Advertisement Costs e. Premium membership with Qwaya, which publishes advertisements via Facebook. $149 for one month, with an annual total of $1,788 for one year. This premium membership allows Aifrau and Co. to use successful ad templates, a campaign organizer, excel export (for graphs and statistics for use in ad), an add scheduler, etc. AiFrau was granted unlimited ads on Facebook for the premium membership. Partnership a. Hockotech

b. c. Wireless card, Bluetooth, (size of a chapstick stick), connect simply to server. Amooglux- $50.00 per month. Contains Amazon, Netflix,

Hulu, Google, and Hockotech. Producing and supplying internal structure as well as portions of the external structure (main shape and figure of Choiid). d. Approximately $40.00 (for companies, Hockotech generally offers a $10.00 discount price with a royalty; therefore AiFrau and Co. opted for a more expensive option in order to reduce corporate sharing costs.) a. For internal structure includes: Micro-processing chip, hard drive, RAM, motherboard, 2 ports (usb, and charger port), peripheral card, anti-virus software. b. For external structure: Basic metals such as Fibrecore. e. For the decoration and the textiles needed to make the product appealing, we have a. Poland- Textiles, wearing apparel, and leather sector. $5.28 per hour as of 2012. * Annual output rate grew rapidly from 2008-2011. Compensation costs include direct pay, social insurance expenditures, and labor-related taxes. Assuming that the worker could produce a decorative set for the Choiid in 60 minutes, the average production cost for one Choiid would be $45.28. AiFrau and Co. choose Poland due to its high GDP growth rate in recent years as well as its large labor force. b. * Results updated as of August 9th, 2013

Target Market c. Geared towards members of the middle-class. Due to their affordable price (the average middle class family has at least one computer that costs $500 or more) Choiids, according to recent surveys, have appealed to all genders and to citizens of nearly all ages. However, elderly persons and the younger generation (Generation Y) appear to have a slightly higher satisfaction rate. According to recent surveys and polls taken, it appears that elderly persons (Veterans) enjoy that Choiids allow them to keep in contact with family members, teach them new skills to improve memory, etc. Moreover, the younger generation (Generation Y) opts for Choiids due to their ability to gather information rapidly as well as assist them with business endeavors. Below are the maps and results from 2011. d. Note: From 2012-2013, more than 80% of American families owned technological devices. As the typical computer generally ranges from $400-$700 dollars, and many Americans, according to this graph own more than one technological device per household, it is evident that Choiids are in the appropriate

price range for a majority of families in America.

98% 96% 94% 92% 90% 88% 86% 84% 82% 80% 78% 2011 2012

Percentage of Satisfication Rates for Choiids (calculated from 20112012) Global Average

Veterans (born 1922-1945) Generation Y (born 1981-2000) Generation X (born 1965-1980) Baby Boomers (born 19461964)

Evidence of Successful Endeavors

-Its widespread popularity across European as well as American countries has established an innovative phenomenon as deemed by Time magazine. -Endorsements from Hilary Hahn, Indra Nooyi, Pope Francis, Barack Obama, Angela Merkel.

Percentage of Equity and Ask Amount a. 20% equity for approximately $250,000 USD. b. According to previous results from Shark Tank, this is approximately the average percentage of equity asked by retailers. Please consult the chart below for further detail. This chart is courtesy of tv.quotes.net. a. Please note the highlighted portions. Our percentage of equity as well as ask amount falls in the appropriate range for entrepreneur valuations.

c. Additionally, below are the typical results from the Shark Tank dealings.

a. Please note highlighted portions.