Spot Cam Marketing Report
Our engineers have just completed work on a new hand-held video
camera called Spot Cam.  We are very excited about the sales
possibilities for this product.  
The technical innovations designed into the Spot Cam camera are
unparalleled in the industry.  The camera is light weight,
powerful, and easy to use.  
This report outlines the potential markets for Spot Cam, an
inexpensive program to test various advertising strategies, and
the action items for conducting the test program.  
Introduction
Target Markets
Broad Market
The largest market for Spot Cam is composed of current owners of
VCR equipment.  The convenience of Spot Cam should make it
desirable even if priced above most conventional cameras.
We plan to do some testing with this market in order to project
sales volume as a function of various price points.
ice points.
VCR Owners
Previous research has shown that stereo buffs are high
probability prospects for video equipment.  Therefore, this
market should be considered along with current VCR owners as our
broadest prospects.
We may want to consider an arrangement with other manufacturers
for a Spot Cam / VCR playback unit package to maximize our
prospects for first purchases by these prospective buyers.  Of
course we could also consider manufacturing a playback unit
ourselves, but this would cost us valuable time, and would
increase our risks considerably.
nsiderably.
Stereo Buffs
Special Vertical Markets
rkets
Television news teams, especially local news teams, stand out as
our largest vertical market.  Any campaign to this market should
stress the "scooping" leverage that a well-stocked news team
would have with Spot Cam.
Because of Spot Cam's ease of use, news-team members who do not
usually operate camera equipment could keep Spot Cam with them in
order to capture news where and when it happens.
 happens.
Television News Teams
Claims adjusters for insurance companies are often challenged
with documenting damages and injuries.  A static snapshot from a
polaroid still leaves questions in many cases.  "If the leg
injury hasn't healed, does the claimant still walk with a limp?"
Spot Cam can make the jobs of claims adjusters easier, with
faster, more decisive, more accurate insurance claims the result.
A few case studies gleaned from some early field testing should
go a long way in developing this market.
Claims Adjusters
sters
Law Enforcement Agencies are a smaller vertical market for Video
Design at this time.  Most of these government agencies are on
longer bid cycles compared to the pace of the rest of our
markets.
We can move more slowly on this one and still not lose any great
competitive advantage.  Let's not let it slip through our fingers
though.
though.
Law Enforcement Agencies
ncies
Potential Niches
iches
Private Investigators are a strong potential niche market.  Our
main challenge here is getting the word out.  Direct Mail may be
the way to go, or ads in publications read by private
investigators.  We'll have Ed look into this.
 into this.
Private Investigators
Military markets could mean very big sales for Video Design.  Pat
and Chris suggest we wait for the military to come to us -- once
we start advertising for our broad markets, we will probably be
approached to submit bids by various branches.
ious branches.
Military Markets
rkets
Research that requires (or that could gain substantially from)
video documentation of experiments will find Spot Cam especially
useful, but only if space constraints make a smaller camera
desirable.
Developing this market should be considered low priority since
the payoffs are questionable.
Research Groups
roups
Advertising Tests
Before going ahead full-force with a Spot Cam campaign, we can
test alternative positioning strategies with small samples of our
broadest target market.  We can have our ad agency generate some
sample copy for each approach, mock up some ads, and then bring
in some VCR owners to see the adds, and to see Spot Cam in
action.
We would like to keep our first round of testing very low cost.
We think the advantages of Spot Cam will bring us extremely
favorable results without an expensive testing effort.
The other advantage of a more limited testing effort: if we get a
strong green light, we can bring Spot Cam to market that more
quickly.  If there are indications that we still need to do more
positioning work, we still don't lose much time.  We can take the
testing feedback and should be able to make the appropriate
adjustments fairly quickly.
Our agency tells us we could probably initiate testing within the
next month if we get the appropriate buy-off this week.  Testing
could be completed and results compiled within three months after
testing begins.
A preliminary budget for the main testing effort is outlined
below.  We think this is a no-lose effort that can increase our
confidence in Spot Cam considerably.  Actually, all of us close
to Spot Cam are certain about its success.
Synopsis of Plan
 Plan
Testing Budget
udget
March
Total
Design
$450.00 
$350.00 
$100.00 
$900.00 
@sum(Jan.Design:March.Design)
sign)
Writing
$200.00 
$600.00 
$300.00 
$1,100.00 
@sum(Jan.Writing:March.Writing)
Testing
$275.00 
$450.00 
$550.00 
$1,275.00 
@sum(Jan.Testing:March.Testing)
ting)
******
@Budget Graph
Graph
              
@DrawGraph(Testing Budget.B2:Testing Budget.D4,#row,#BAR,,,)
Budget Graph
Graph
Action Items
Items
The first thing we have to do for this testing endeavor is
determine just what samples we want to test.  Pat and Chris are
ready to do this as soon as we get the OK.
et the OK.
Determine Test Markets
rkets
While our test markets are being arranged, we can iron out the
logistical phases of the test.  This will be fairly standard and
shouldn't pose any problems.  Ed will handle this.
 handle this.
Schedule Test Phases
Every thing needed to get the testing going will be able to begin
immediately once we get top management buyoff.  I'll submit this
report along with a finished proposal early next week.  Ed, Pat,
and Chris should have their pieces ready for execution a few days
later.
Submit Finished Proposal for Buy-Off