12. PDMI PROGRAMS
EXPLOREGROW
CONNECTED LIFE
EDLP BROADBAND
ERC REFURB
FUTURE AUTOMOTIVE
SITE EXPERIENCE
STRATEGY
KIDS DIGITAL – XO
TABLET PD
CONNECTED SERVICES
PERSISTENT PRESENCE
THROUGH STRAIGHT TALK
WALMART FIT
SUBSTANTIATION PROGRAM
13. PDMI CASE STUDIES - CONNECTED LIFE
KIDS DIGITAL: XO TABLET
BRIDGING THE EDUCATION GAP
14. • The Kindle isn’t a book. It’s
a bookstore.
• We are obligated to link
our credit cards to Apple.
• Selling an experience and a
window into a world of
content.
• Big screen, big capabilities,
big app store, big storage
• Big investment in design +
build quality.
• Big investment in
partnerships
• Specialized devices that are
designed for specific uses (like
watching movies and reading
books)
• Smaller function set, niche
markets.
• It does one thing really well.
• Develop tablets at a
compelling price, but
that offer all of the
high-end usability and
features that they offer
today,”
• Danger of falling into
differentiation on price
only. The price wars
begin.
go BIG go ( small ) go ¢heap
PDMI CASE STUDIES – KIDS DIGITAL STRATEGY
Q4 2011: The tablet market explodes. How do we get in the game?
15. "The razor toothed piranhas of the
genera serrasalmus and pygocentrus are
the most ferocious freshwater fish in the
world. In reality, they seldom attack a
human”
Elliot Nicholls, a 17-year-old from Dunedin, New
Zealand
has set a new record for speed texting without looking
at the screen - 45 seconds.
Digital Appendages
Kids lifestyle = digital devices
KGOY - Kids getting older younger
Ipads and smartphones are replacing
traditional toys
Amplified reality –
Physical and digital worlds converge
Digital dexterity
Their digital skills are shaping the
Future of technology
2.1.
3. 4.
PDMI CASE STUDIES – KIDS DIGITAL STRATEGY – MACRO TRENDS
16. Designed for an adult - made for a child
– kids and parent mode functionality.
Spill-proof and shock proof cover
included in the tablet (Yves Behar
design)
The only dual language tablet with
apps & content in English and Spanish
Special XO AppsStore: safe apps
environment curated by OLPC
100 free selected books available for
different target ages
Price $149 ($2 of every sale will be
donated to an educational charity)
Avg of 4.5 stars on Walmart + Amazon
Since the launch on July 16th 2013.
PDMI CASE STUDIES – PARTNERSHIP WITH OLPC – LAUNCH DATE 7.16.13
The tablet was the flagship retail merchandise strategy for OLPC.
17. PDMI CASE STUDIES - CONNECTED LIFE
PDMI: PRODUCT DEVELOPMENT + MERCHANDISE INNOVATION
CONNECTED LIFE.
18. Explosive growth from
10.2M automated homes in
2012 to 22M in 2013
Now is the time!
Consumers want a full
solution, connected
ecosystem
130M US Homes =
Significant Opportunity to
Walmart
High adoption of smart phones
with younger consumers. Appeal
to both home owners and
renters
Security Monitoring
Automation
Health &
Wellness
Entertainment
Energy
Management
Average number of
connected devices will jump
from 5 in 2012 to 15 in 2015
Source: CEA – Consumer perspective on home automation white paper
Smarthome Devices: Do-It-Yourself (DIY) Solutions Drive Adoption in 2013
PDMI CASE STUDIES - CONNECTED LIFE
22. SERVICES OVERVIEW
WIRELESS
MOBILE
MIFI HOME
PHONE
IN HOME
BROADBAND
ENTERTAINMENT
(CONTENT + GAMING)
STRAIGHT
TALK
FAMILY MOBILE
STRAIGHT TALK
MIFI
INTERNET
ON THE GO
BASIC TALK
JUNO HOME
BROADBAND
???
CURRENTPLANNEDFUTURE
23. 1/3
NUMBER OF US
HOUSEHOLDS
WITHOUT HIGH
SPEED BROADBAND
BARRIERS & PAINPOINTS
DEVICES ARE TOO
EXPENSIVE
SERVICE IS TOO
EXPENSIVE
NOT INTERESTED IN
LONG TERM
CONTRACTS
US Home
Broadband
market size100B
PDMI: PRODUCT DEVELOPMENT + MERCHANDISE INNOVATION
PDMI CASE STUDIES – PREPAID BROADBAND
25. PREPAID BROADBAND
Pricing $15/ 7 days or
$45/30 days
$90 / 10Gigs $50/5Gigs Hotspot + 7 Gigs =
$149
Each additional
Gig is $14
$60 / 10 Gigs $50 / 10Gigs
Non expiring or
monthly plans
Monthly Monthly Monthly Non expiring $10/10Gigs at
1.5Mbps 1
free Gig/month at
4g Speeds
Monthly
Speed 3Mb / 768 Kbps 4G / LTE 4G / LTE 4G / LTE 4G/LTE 4G/LTE
Hardware $69.95 $99 $150-170 Included in starter
kit price.
$99 $79
Comments Offering service to
those who are not
currently customers
or delinquent
customers who are
about to have their
service shut off.
Slowest service
among competition.
$36 one time
activation fee
Competes with
our Interent on
the go plan
$45/3Gigs
Additional
$4/month for
rollover data plan.
Prepaid set up as
recurring charges
until you cancel
your service. 10Gig
plan has slow
speed.
Best price per
Gig.
Available only at
Walmart
MARKET SIZE: $7 BILLION
5% MARKET SHARE IS A $490M OPPORTUNITY
26. PDMI CASE STUDIES – UPCOMING STRATEGIES – WALMART FIT
An additional Walmart Supercenter
per 100,000 residents increases
average BMI by 0.25 units and the
obesity rate by 2.4 percent.
What are strategies we can employ
to improve the lives of our customers
and help them live better?
Exercise for the audience –
Question 1. What are the annual online revenues of these companies?
Question 2. Which company earns 10.6B in annual revenue?
eCommerce and retail are engaged in a zero-sum game: one company's gain in eCommerce is another's lost retail sales. As such, the team refers to eCommerce in the context of "retail sales disruption."
The analysts made five conclusions:
1) Fulfillment infrastructure is critical. 2) Some categories (e.g. groceries, personal care products) are resistant to change. 3) Third-party marketplaces can prosper. For example, Amazon's third-party volumes are growing faster than its first-party business. 4) Mobile eCommerce is an untapped opportunity. 5) Big players (e.g. Walmart, Amazon) will get bigger thanks to footprint and scale.
The biggest dream for our customers is to provide a better life for their kids.
Toys are compliments with their virtual counterparts and vice versa
Other competitors – activision blizzard – toys for bob – multiplatform game that marries collectible toys with video games
Kids don’t want to play with toys anymore because they’d rather play games on an iPad or a smartphone.
Video games have benefits - Following instructions, Problem solving and logic Hand-eye coordination, fine motor and spatial skills, quick thinking, developing reading and math skills
2.8 Million XO laptops delivered
60 countries and 25 languages
Non-profit organization
MIT Media Lab
World recognized educators and engineers
The convergence of technology, pedagogy and design
Over 100% growth in automated homes! Significant future upside as 2013 only represents 17% household penetration.
½ the solution is in place with smartphones and wifi networks. Particularly important as the primary smartphone demographic is also the primary home buyer/renter demographic …
… the other half of the solution is a full, customizable and personalized connected ecosystem.
Connected products is potentially one of the biggest growth opportunities in electronics over the net 4-5 years.
Disruptive – Best priced program in the market
Exclusive – Only available at Walmart
Wow – No program offers more data for the price
Simple – Easy to set up. No contract. No commitment.
