TO: ALL Executive
FROM: Jim Hailson
DATE: March 20, 2017
SUBJECT: Home Automation Technology Proposal
As we continue to move our business forward and advance our innovation efforts while striving to gain traction into the technology world, there is an idea that I would like to share with you that I believe could change the dynamics of our business. I have come up with the idea that I would like to propose that could move our company forward in that direction. Technology and home automation have become the forefront of today’s innovations, and I believe the time has right for us to step into that space.
The time is now upon us; I am proposing an idea for our company to invest our capital, and research in the design and manufacture of an automated leaf, and lawn bagging system that is controlledby your mobile device or tablet, and utilizes wireless, Bluetooth or cellular data. Most people that take care of lawns have to mow, rake leaves or both, and most countries around the globe experience Autumn which give us leaves that will fall to the ground. This is a lawn machine that is completely automated, and does all of the work for you; a “set it and forget it,” so to speak. Not only will this product automatically pick up the leaves, but it will also bag them as well. There is no product on the market that will do this. I believe it is time for our company to begin to focusing our innovative strategies in the direction of home automation technology. Investing in technology will position us to be more competitive within the technology market. Home technology has entered into millions of homes, not only here in the Unites States, but across the globe (Montgomery, 2014).
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“ The Smart Home global automation market had a value of 4.4 billion US dollars in 2013. Transparency Market Research predicts that will grow to 21 billion US dollars in 2020. Further, revenue of the Smart Homes market worldwide is forecast to increase from 20.38 billion US dollars in 2014 to 58.58 billion US dollars in 2020. ” According to Smart Home Market Size — Trends and Projections (2016), (para. 9).
Those statistics are astounding, and If we put in the investment and marketing, we can become part of it. After all, many countries experience autumn. We can market this to the major home improvement stores and offer three different version at different price ranges and it could be determined by physical size, battery power, and blower size and the stores would have it as part of their on-line websites for purchasing. Globally we can market to majoronline stores such as Amazon. Consumers continue to purchase ‘”smart” devices, including appliances, such as refrigerators that have live video that shows you what’s inside, so you can see if you need something while you are out shopping; televisions that stream wireless video; home automation that allows you to set your coffee maker or your thermostat; you can change your heat or air conditioning before you get home and home security (Juang et al., 2013). All of these can be controlled through your smartphone or tablet. Automation technology is becoming a bigger part of our lives. Imagine having our own mobile app on millions of smartphones and tablets which then would allow us to push advertisements for other products we may develop and sell.
None of us want to spend time raking and bagging leaves on the weekends, or every time you mow the lawn, and you have to go back to pick up the clippings. Think about if you could have a device that did all of this for you. It is all about freeing up your time, and time is what we all want more of; time to spend with family, and time to create a happy and stress-free life. Think about having to wake up on a Saturday or Sunday morning, and knowing you have to spend the day raking leaves, putting them on a tarp and dragging them across the lawn, only to empty them into a big pile, which hasto be picked up and bagged eventually. With the Leaf Grabber, the image is only having to go to the shed, grab the Leaf Grabber and spending only a few minutes setting it up on your phone and then watching it go along, doing all of the work for you. If our company invested in this product and technology, it could open doors to a host of new ideas. In my research, I have not been able to come across any automated outside yard tools, specifically tools that allow a homeowner to automate lawn maintenance, like raking and bagging leaves, as well as picking up grass clippings. This is a tool that can be used for three seasons, spring, summer and autumn. Most of us already have to do this, why not make it easy.
Leaf bagger is a volutionary product that is in line with the esteemed brand reputation of our company as it lifts the bar for quality and innovation in our company. I recommend that the company enters into a deal with Engineer Stephen McGregor who has to develop ‘Leaf Grabber’ an automated Lawn maintenance machine that is capable to raking and bagging leaves just by the press of an activation button in a Bluetooth enabled application that is installed in handsets and computer. The deal as already negotiated assures Eng McGregor a 25% loyalty on profit made from sales of lawn butler. I recommend that the company immediately initiate the patent process to protect our investment from intellectual theft.
Based on estimates, it will cost an average of$126 to produce a unit of leaf grabber in the USA, and a low of $76 to produce it in Vietnam. My view is that the management to should facilitate a deal to outsource manufacturing service from Viet Corp in Vietnam. This will enable the company to trim down on cost and eventually enable leaf bagger retail at a fair and competitive price of $350 for the monster version, $300 for the handy man version and $250 for the salvation version. I understand the sensitivity of my proposal to shifting a vital component of our operation overseas. This is a tough decision of necessity for our business survival as we cannot remain competitive when our fierce rivals like Roper Corp outsourcing their manufacturing service so as to enjoy cheaper manufacturing cost in East Asian countries.
I request the management to approve the brand promotion budget. With the availability of these funds, the marketing team will be able to engage in a brand promotion campaign that will not only create awareness of our iconic brand back to our esteemed ages but will also increase loyalty among our customers and improve sales. Through brand promotion, the ground will be laid to facilitate a receptive introduction of leaf grabber by the end of summer before the beginning of spring.
Digital marketing has posed a significant potential as a marketing platform for companies keen to growth in sales. An e-trade platform like Amazon had an estimate of $ 107 billion net sales in 2015. Such platform if tapped into will guarantee the company great digital presence that will boost sales and ensure a groundbreaking entry for leaf grabber. I request that the top management considers the gold mine that this platforms are and facilitate the digital team and the marketing team with the require resources based on the budget estimates tabled during the budget process. Sales in digital platform currently account for 15% of total company sales. If the planned digital campaign is successful, digital sales are poised to rise to 45% of the total company sales. An aggressive digital campaign, especially on social media, will attract the much necessary awareness of leaf bagger with the focus being on the targeted young generation who are the anticipated potential customer. This is due to the stereotype perception that most of these millennium generations detest manual labor.
Availability of a product that meets consumer needs and desire at the convenient time and place is the benchmark for business success. A convenient, dependable, far-reaching distribution network is the hallmarkof business growth. I wish to draw the management’s attention to the impending contract will wall mart to stock and distribute our products. I humbly request the management to iron out issues that Wal-Martteam pinpointed out as being contretemps.
Juang, J., Huang, Y.-C., & International Conference on Intelligent Technologies and Engineering Systems. (2013). Intelligent technologies and engineering systems . New York, NY: Springer.
Montgomery, L. (2014). Home Automation: A Complete Guide to Buying, Owning and Enjoying a Home Automation System . Cork: BookBaby.