Den Defense

Guarding your most prized possession.

Todays Team
Cofounders: Josh Elkin Vin Fodera Melissa Guida Olivia Green

Company Summary

Den Defense is a online retail business that sells protective, attractive, and customized cell phone cases. Today, we will outline our companys mission and aspirations. Discuss our various marketing and organizational strategies. Demonstrate our vast target market and its potential.

Inform investors on the minimal risks involved in investing in Den Defense.

Company Description

Den Defense, established in October of 2013, as an exclusive distributor of customized cell phone cases based on our customers request. Den Defenses legal entity is a Partnership between our 4 co-founders. In time, we aim to eventually become the number one cell phone case company in America.

Mission Statement
Den Defenses mission is to allow our customers to be creative with a valuable device that they carry around every day! We yearn for our customers to show their hobbies, interests and imagination through a customized cell phone case. Our product line is designed to meet the requests of individuality from our customers. Den Defense employees will meet every expectation to create a fashionable, quality made case. Our customers will enjoy expressing themselves through Den Defense.

Economic Conditions

Unemployment is declining and consumers have a new confidence in the economy. Rasmussen Consumer Index puts consumer confidence at 114.0 as of Wednesday, November 27th. The next Head of the Federal Reserve, Janet Yellen, is believed to continue to keep interest rates low. This policy will keep investment up.

Industry Analysis

According to Apple, 50 million iPhones were sold December 2012. It is estimated that 70% of iPhone users own a case.

Stores were sold out in November due to Black Friday deals. More phones are sold in December than any other month of the year due to the holiday seasons and sales. The end of the year is when most cell phone cases sell.
Studies showed that 89% of people from ages 18-65 own some kind cell phone. Therefore, most will need a case for it. for style and protection. From 2010 to 2012 studies show that smart phones had gross margins of 49-58%, this translated into revenues of more than $33 billion.

Competition

Our largest competitors will be OtterBox, Skin It, and Kraken A.M.S. OtterBox had $347.5M in revenues in 2011. Otterbox currently has 363 employees and has experienced a 3,312% growth over the past three years Our competitors have various Series of products, however they fail to emphasize customer customization.

Choose Your Method of Defense

Den Defense offers a wide selection of products to our customers.
These options include:
Gel Heavy Duty Water proof Skin After customers select the style of case they want, theyre then prompted to create and or input any design or picture of their choice.

Benefits

Its human nature to show off ones prized and unique possessions. Cell phones are one such item that gets a lot of use from its owner and is frequently out in the public. Owning a cell phone with style allows customers to express themselves and their personality to the world without saying a word. Custom cases are also conversation starters and a great holiday gift!

Operations

Our phone cases are created with a special screen printing machine.

Our head of technology is familiar with the creation process and is able to input any designs that our customers want with a special computer program.
This program is also able to differentiate which phone the image is being printed on to and can adjust size proportions of designs accordingly.

Production

Depending on the material in which ones case is made from, our machinery adjusts the design process accordingly. Our machines have the capability to print a design on to a skin as well as creating a hard cover gel case through a molding process. The equipment is small, yet efficient enough to be run out of our home and portable to any schools campus.

Methods and Costs of Production

It costs approximately $1500 to purchase a new printing machine with the necessary programs and materials to run it properly.

Skins cost very little to produce; they cost around $1.10 to complete, including the estimated cost of ink and sticker on which it is being printed on. However, we charge our customers $8.99 for the skin and a $1.00 surcharge for placing the skin on to their phone correctly. Included in our $1.00 surcharge is the guarantee to replace said skin if our employee doesnt put it on straight or it falls off within 30 days.

Methods and Costs of Production

Another production example is our Heavy Duty cases. We have pre-made molds for iPhones, Galaxy S4s, and the other various phones.

These molds cost $2.00 to create and have a life of 3 full months before they have to be replaced Our special printer jets spray a gel evenly into the mold and once hardened (a 3 minute process in a cooled environment) the case is ready for use.
The special gel costs $19.00 per phone to produce. We charge $49.99 for this style of case (with one design of choice included)

Tasteful vs. Bland

Den Defense: OtterBox:

Licensing

Due to various copyrights, customers will have to get written permission from the copyright holders for us to print their logo. Our goal is to agree to contracts with Colleges, High Schools, and professional leagues (NFL, NHL, MLB, etc) for use of their likeness. It will be a constant 3% of revenue per case created with a specific likeness on it.

Market Segmentation

Den Defense markets our products to College and High School students along with the respective faculty. Our products appeal to those with a desire to express themselves. We also will serve any customer we receive from word of mouth.

Target Market

Students in College and High School within the ages of 14 to 21. Faculty members at the schools. Any individual that has a desire for a customized cell phone case.

Pricing Strategies
Penetration Pricing Competitive Pricing
Den Defense WaterProof Case- $59.99 $49.99 LifeProof Case- $79.99 Den Defense Heavy Duty CaseOtterBox

Defender $49.99

Product Placement

Den Defense anticipates sales to come from online and from kiosks strategically placed on school campus on certain days of the year. The times in which we will be on school grounds are one full week before the Holidays and other school vacations.

Product Placement
Source of Sales Sales Projections Percentage of Total Projected Sales
66.7% 33.3% 100%

Online Sales Campus Sales Total

$ 100,000 $ 50,000 $ 150,000

*Note that because our expenses are minimal, we anticipate most of our sales to be pure profit.

Promotion

Website Emails Social Networking Promotional newsletters Word of mouth

The Importance of a Website

The Head of Technology has created an easy to use website for our consumers. Our website is clearly labeled and directs customers to the design creation screen after answering a few simple multiple choice questions. o Some of these questions include: What phone do you have? What type of material do you want to be used on your case? Do you want to import your own images?

Maintaining our Customer Base

We want to retain all of our customers. Or at the very least, gather as much information about them as possible.

One method we use is forcing our customers to make an account with us for their order to process. We collect their personal information and interests from their profiles. (Also beneficial for our market research)
To make the customers psychologically feel good about creating an account, they will receive free shipping on their next order.

Building our Customer Base

When a customer completes his or her design and is on the payment screen, we offer them a unique discount: If they email 3 of their friends Den Defenses advertisement (which is found on the same screen), we will give them a 10% discount on their current order and a 5% additional discount on the next 3 orders they make.

Our goal is to promote Den Defense as a friendly, caring company.

We want to spread awareness about our company through word of mouth and there is no better way to do this other than amazing customer service.

SWOT Analysis
Strengths:
-Den Defense offers one of a kind phone cases. -Our prices are competitive with competitors. -Exceptional customer service. -We offer a 100% product guarantee if it is non-satisfactory.

Weaknesses:
-We are not yet an established firm with much business experience. -Inexperienced employees. -Limited funds for advertising. -Not a great amount of face to face sale interaction with our customers. -We will have to negotiate licensing fees with companies for the use of their logo.

Opportunities
-There is potential growth in online retail spending. -89% of people from ages 18-65 own a cell phone. Most of those people will need a cell phone case-large market potential. -There is potential that the families of college students/faculty would also be interested in Den Defense. -Our product allows us to build relationships with other colleges and Alumni. When word spreads among campus we will become highly popular.

Threats:
-Potential failure of technology, pertaining to our website like computer viruses or hackings. -Other established companies copying our ideas and products. -It is possible that another start up could have a similar business model to us