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Transcript of sOccketball
GO Impact Elizabeth Cole, Whitney Canion, David Roach, Jessica Alfaro Population: 196 million
Currency: 1 BRL (real)= .48 USD
GDP: $2.47 trillion
5th largest GDP by end of 2012
2014 FIFA World Cup attendees (approx. 3M)
2016 Summer Olympics attendess (approx. 9M) Invented by 4 Harvard undergraduates
Soccer is the most well known sport
25% of world population without electricity
Eco friendly portable generator sOccketball Soccer ball captures energy with every kick
For every 15 minutes of play, 3 hours of LED light
Ensures product life span of 3-15 years
95% recyclable materials sOccketball The mechanics are straightforward: When the sOccket rolls, a magnetic slug slides back and forth inside an inductive coil in the ball, generating power that is stored in a capacitor.
Weighs only 5 ounces more than a FIFA regulated soccer ball How It Works Coca Cola pays $90 million to have the “partner” title for World Cup and Olympics
Coca Cola is in over 200 countries
Coca Cola will put their logo on every ball for free advertising Partner Programs for FIFA World Cup and Olympics
FIFA & Coke websites
Word of Mouth Marketing Strategy Marketing Budget TOM's idea
If 480,000 spectators buy a ball for $50, then one ball will be given to charity. Therefore, 960,000 balls would be sold for a total revenue of $24,000,000. BOGO (Buy One Give One) Technical vs. Commercial Manufacturing the sOccketball will take place in China. The reason we chose to manufacture in China is because most of the parts to produce a sOccketball such as the magnetic strip, coil, and waterproof EVA foam, etc. are made in China and can be assembled at a low cost.
Shenzhen Hengcheng Logistics Co., contracted shipping company, will ship products from a port in Shenzhen, China.
The manufactured goods will be shipped over seas to a Coca-Cola Brazil warehouse in Rio de Janeiro. The plan is to rent a warehouse unit from Coca-Cola at a discounted fee in preparation for the upcoming events! Logistical Plan Port of Rio De Janiero Export from Shenzhen, China Delivery Time= 30 days Logistical Plan (cont.) As said before the, the shipment of the goods from China to Brazil will take an estimate of 30 days.
The imported goods will face a long line of cumulative taxes making the effective rate really high. A list of taxes to imported goods include: Import tax (II), Industrialized Products Tax (IPI), Social Integration Program (PIS), Social Security Contribution (COFINS), Merchandise and Services Tax (ICMS).
There is also custom clearance fees and charges, customs paperwork required to register and nationalize our products, local licensing and certification requirements and procedures to finalize business in Brazil. Logistical Plan (cont.) Cost Breakdown:
Cost to Make Product-
Transportation costs & taxes -
Warehouse & Employee Costs-
$5 (25%) Estimated Revenues - Each ball = .83 ft
- One 2 TEU container (40x8x10) would fit 2,928 sOccketballs
- 960,000/2,928 = 328 2 TEU containers
- We need 524,800 sq/ft. of warehousing (328 x 1,600 sq ft which = the sq footage of a 2 TEU container)
- Costs 33 cents/ ball to store Ramp Strategy Donate one sOccketball for every one bought
Provides electricity to families in developing countries
Increases families incomes due to savings on electricity
Creates a profit
Strengthens Coke’s image Impact 2014 June 12th- July 13th
12 Host cities
Stadium capacity= approx. 75,000
75,000 spectators* 64 matches= 4,800,000
4,800,000* 10%= 480,000
480,000* 2= 960,000 FIFA World Cup MARKET Warehousing Math QUESTIONS?