Final Report – Market Research

OEM/Other Consumer Electronics Manufacturers using Photo-Voltaic Materials & Products for Solar Power Applications

Prepared for

Energy Conversion Devices

February 15, 2004

CONTENTS:

1. Executive Summary

2. Project Activity

3. Proposal/Plan

4. Appendix

The average US family spends $2000 a year on related products, software and services. Consumers will snap up $101 billion worth of our products this year - a five percent increase over last year.

- Gary Shapiro, President CES, January 2004

Executive Summary

Work on this study as proposed was suspended at the request of ECD pending the allocation of resources to other projects. The data collected was primarily qualitative and limited in scope to the beginning of the first phase of the initial proposal.

From an abbreviated schedule of research and basic market contacts, it was possible to verify that there is in fact some immediate demand for the flexible Uni-solar PV material from OEM’s of solar power devices.

We learned that within ECD’s current production capacity, potential order quantities of 200,000 – 500,000 units (on a graduated scale – most would start modestly under 50,000 for testing) were possible within some pricing constraints from solar device OEM’s currently buying rigid/glass PV. Also, that distributors of solar devices would expect new accessories at this point-in-time priced in the range of $14 or less, so OEM partners would seek pricing from ECD less than $5 per unit in 2004.

The potential size of the market for an ECD PV product among the consumer electronics portable appliance manufacturers requires more study; however, as for potential market share, the competition is extremely limited, and there is positive brand recognition associated with the Uni-Solar and Ovonics names.

The target audience was more clearly defined as the PV purchasing managers or buyers, engineers and product designers who are currently using or would consider using PV in their products. We identified the media to reach them, including the networks of communications within their professional associations.

Ovonics is formulating a media relations management strategy across the spectrum of industries that will include all of Ovonics/ECD products and technologies. Ultimately, this strategy will impact the question of branding PV products for the consumer electronics manufacturing industry as Ovonics or ECD or Uni-Solar, etc.

To restart this project at some point in the future and continue through to the end of the first phase, ECD will have to repeat some of the same inquiries at that time to determine the most effective go-to-market strategy, analyze the new data, costs and variables in the market and decide to proceed or terminate this initiative

Project Activities

MEETINGS

Client Meetings: 1/8/04, 1/9/04

IDSA Executive Director: 1/14/04

Sony Electronics PR Manager: 1/15/04

Client Telephone Meetings: 1/13/04, 1/16/04, 1/26/04, 1/29/04, 2/5/04, 2/6/04

TASKS

1. Attended Industry Trade Show – Consumer Electronics Show, January 8-11 2004 Las Vegas
2. Gathered competitive qualitative data and sales communications, strategic alliance data and information on other portable electronic devices markets for ECD/Ovonics products
3. Developed contacts through conference speaker dialogue opportunities
4. Completed "Phase 0" objective: Market intelligence
5. Competition and market demand at CES from exhibitors and speakers validated business plan assumptions
6. Analyzed competitive qualitative data and sales communications, strategic alliance data and information on other portable electronic devices markets for ECD/Ovonics products business plan revision
7. Inquired about Industrial Design association conference speaking and exhibiting opportunity
8. Investigated current contacts for soft-soundings with Sony Product Managers, US Designers, etc.
9. Prepared PowerPoint presentation of competitive intelligence analysis
10. Researched quantitative data and secondary source market reports from photo-voltaic materials industry
11. Prepared first draft of competitive positioning: Opportunity, barriers, milestones, brand differentiation
12. Researched New York TMA Toy Fair trade show exhibitors listing and conferences schedule
13. Researched Industrial Design association promotions and conferences - costs and schedules
14. Researched third-party consumer electronics industry study (Forrester/Jupiter/Maritz) availability
15. Contacted additional relevant professional associations and media listing services for Electronic Engineers, Product Managers, etc.
16. Prepared second draft of competitive positioning: Opportunity, barriers, milestones, brand differentiation
17. Contacted selected New York TMA Toy Fair trade show exhibitors re: Product/Program Managers meetings
18. Contacted Industrial Design association Executive Director re: conference panel participation
19. Researched PDMA, EEA, IEA, and MPA professional associations for promotions and conferences
20. Planned for Michigan facilities tour and project stakeholders meeting & presentation
21. Discussed revision of project plan, suspension of project activities, and preparation of project final report
22. Revised project plan: Suspended project activities, and prepared project final report
23. Catalogued market information, contact database, communications and speaking opportunities
24. Contacted PDMA, EEA, IEA, MPA, TMA, etc. RE: Future opportunities for PV advocacy, suspended contact
25. Discussed Ovonics/ECD Communications and Public Relations integration with Richard Thompson
26. Prepared files and research materials, notes and contact logs for archive/storage

Proposal / Project Plan

ECD Ovonics has identified an opportunity to build and market portable solar chargers to manufacturers of portable electronic devices particularly the “Gameboy”, “MP3 players” and other consumer portable products.

ECD Ovonics is now charged with developing a detailed business plan to validate the feasibility of the market and execute a comprehensive go-to-market strategy.

The scope of this proposal is to validate the product opportunity and upon validation, develop and execute a detailed go-to-market strategy. The proposal entails five steps that are broken into the following three phases:

I. Phase One

1) Research – Validate the business plan, determine the most effective go-to-market strategy, analyze the data, costs and variables and decide to proceed or terminate initiative.

II. Phase Two

2) Branding – Produce and test Business to Business brand marketing materials and sales communications for portable consumer electronic appliance and device manufacturers. Release coincident with product availability.

3) Launch – Conduct marketing and media relations to launch product/brand; arrange initial sales meetings; arrange trade shows, conference speaking opportunities, media story interviews and product placements.

4) Direct Marketing – Conduct direct mail marketing campaign to top 20% sales prospects; pitch editorial stories to top 20% industry media.

III. Phase Three

5. Analysis – Analyze ROI results and apply lessons to process and materials. Expand marketing reach to government GSA suppliers and sports/fashion apparel industry.

Phase I - Research

· Focus Groups to validate:

- Product Testing

- Business Plan assumptions – Competition, Pricing, Demand

· Soft-sounding – Discreet interviews with stakeholders:

- Industry Analysts, Trade Media, Business Media, B2B Prospects

· Competitive Analysis and Positioning – Strategic Marketing Plan Development

- ROI: Opportunity, Barriers, Milestones, Brand Differentiation

- Competitive Market and Business Development Intelligence

· Attend Industry Trade Shows – Consumer Electronics Show, January 8-11 2004 Las Vegas and TMA Toy Fair, February 15-18 2004 New York

- Gather competitive qualitative data and sales communication

- Gather strategic alliance data; other portable electronic devices

- Guerilla market contacts through conference speaker opportunities

• Third party consumer electronics industry study (Forrester/Jupiter/Maritz)

- Consumer demand for alternative power supplies

- Traditional battery charger/adapter statistics; historic adoption rates

- Volume & Usage rankings of portable electronic devices

- Other validation of plan (Environmental Group Affinity Purchase

• Legal QA Process (Prior to Branding & Sales Communications)

- Patent/Trademark

- State law re: blocking view through vehicle window

- Process for legal review of sales communications materials

- Warranty Terms – Exposure to sunlight, heat, and use of third party products

Appendix:

- Phase 1 Report

- Media Planning

Phase 1 Consumer Electronics Solar Material Market Report
Including CES 2004

ECD PV Products

•Solar Panel PV Material

•Manufactured Devices

•Gameboy Charger/Power Supply

Additional Product Ideas

Integrate any low-power appliance: Battery Charger, LED Lights, Radio, MP3 player & headphones, etc…with:

•Gameboy/PDA Utility Belt: Solar flaps, docking port

•Hat: Baseball Cap or Hardhat - Solar Top/Brim

•Shirt/Jacket/Pants: Solar “Charging Pocket”

•Backpack/Luggage/Camera Bag: Solar flaps (foldout/hide option)

•Shoes: Solar Top (LED heels/soles)

•PowerCube – Alternative Power Generator & Batter Charging Station

•Plug-in power adapter for Gameboy, PDA, etc.

•Solar, Springwound, Motion, Windmill, AC Convert

•Tanning Timer

•Simple alarm clock interface, automatically beeps every 15 minutes exposed to sun

•Goggles – Ski or Swim

•“Defroster” function defogs lenses

Additional Product Ideas

•Tent/Temp Housing Material (Integrated or cover)

•Child’s Toys Alt. Power: Furby, MicroRacers

•Child’s Playhouse Roof:

•Powering clocks, lights, etc. inside

•Signs: LED/other low-power light at night

•Path & Landscape lighting/control power

•Garden Fountain Pumps and Animations

•Animated Desk Sculpture

Market Research

Existing Products

•ICP Solar Technologies - http://www.icpglobal.com

•iSun Portable Solar Charger

•Coleman Exponent FLEX 5 Solar Charger

•BatterySaver SE Battery Charger

•PowerFLEX Flexible Solar Panels

•SolarVerter has a family of solar panels. All panels have a built-in current blocking diode installed to prevent the battery discharging through the panel at night.

Existing Markets

•Raw Solar Panel Material Buyers:

•OEMs/Suppliers

•Solar Battery Chargers

•Solar Powered Devices

•Consumer Hobbyist Distributors

•Radio Shack

•Internet

Existing Markets

•Manufactured Solar Unit Distributors:

•OEMs/Suppliers

•CE Portable Audio/Video, Handheld Games, PDAs, GPSs, etc.

•CE Accessories Distribution Channels

•Solar Battery Chargers

•Consumer

•Wal-Mart, Target, Kmart, etc.

Competition for Devices Market*

•ICP Solar

•www.icpsolar.com

•Smart Solar

•www.smartsolar.co.uk

•Go Power! Electric

•www.gpelectric.com

•Global Marketing Technologies

•www.gmtems.com

•Brunton

* Also prospective Buyers of solar material

Battery Charger OEMs*

•AccuPower

•www.accupower-usa.com

•AA Portable Power Corp

•www.aaportablepower.com

•Amstron Power Solutions

•www.amstron.com

•GN National Electric

•www.gn-battery-depot.com

•Radio Shack

* Also prospect Buyers of solar charging devices

MP3 Device OEMs

•SONY

•Panasonic

•Apple

•Samsung

•Perstel

•iAudio CoWon Systems

•Sorell

•AMAC

Case/Equipment Carrier OEMs

•Targa

•Pataco GmbH

•Ape Case Norazza

Developers

•Lind Electronics

» www.lindelectronics.com

•IDO Imaginative Design Operation

» www.ido.com

•InDesign

» www.indesign-llc.com

•Pacific Technology Intl

» www.ptico.com

•Design Tech International

» www.designtech-intl.com

•Wany Robotics

» www.wanyrobotics.com

Strategic Partnerships

•Alternative Power Generator OEMs

•Clockwork (crank & spring)

•Kinetic Motion Capture (shaking tube)

•Windmill

•Traditional Power Generator OEMs

•Gas & Hybrid Generators

Communications

Target Audience

•Solar PV Material Buyers

•Product Designers

•Engineers

•Product Managers

Trade Shows & Conferences

•Toy Fair – February 2004 – New York

•CEBIT 2004 – March 2004 – Hannover

•Taitronics Spring – April 2004 – Taipei

•Electronics Fair – April 2004 – Hong Kong

•E3 – June 2004 – Los Angeles

•IFA 2005 – Sept. 2005 – Berlin

Professional Organizations

•IDSA – www.isda.org

•Industrial Design Society of America

•27 Chapters, 5 District Conferences, 2 National Conferences

•APDF - Association of Professional Design Firms

•Electronic Product Developers Association

•Consumer Electronics Engineers Association

IDSA

•Newsletter - Design Perspectives

•Quarterly Magazine - Innovation

•Trade Show/Conference

•# members US & Intl

Media read by Designers

•Business Week

•Wired

•Fast Company

•MIT Media Forum

•Popular Science

•Electronics Monthly

•Automotive Week

•Road & Track

Environmental Issues

•Panasonic Factor X – Sustainable lifestyle

•www.matsushita.co.jp/environment/factor_x

•US Environmental Protection Agency

•Energy STAR Label

•International Association of Electronics Recyclers

•Rechargeable Battery Recycling Corporation

Media Planning

MEDIA WISH LIST TO TARGET PRODUCT ENGINEERS, DESIGNERS, MANUFACTURERS (the original qualitative suggestions from Consumer Electronics Show - Industrial Designers):

- Business Week

- Wired

- Fast Company

- Popular Science

- Electronics Monthly

- Automotive Week

- Road & Track

TRADE PUBLICATIONS:

- Electronic News - Jonathan Cassell, Editor-in-Chief

- Industry Standard - Vince Bielski, Senior Editor

- Mobile Computing & Communications - Tim Bajarin, Contributing Editor

- The Washington Post - Peter Goodman, Staff Writer, Technology

- Wired - Ted Greenwald or Jeffrey O'Brien, Senior Editors

- Wireless Design & Development - Kim Stokes, Executive Editor

- Wireless Week - Monica Alleven, Editor

BUSINESS MEDIA:

- Bloomberg Business News Radio - Paul Lin, Computers/Hi Tech Reporter

- Bloomberg Television - Lisa Gianni, Computers/Hi Tech Reporter

- Business Week - Tim Mullaney, Department Editor

- CNET.com - Steve Fox, Editor-in-Chief

- CNN - Marsha Walton Producer, Science & Technology

- Consumer Reports - David Heim, Computers/Hi Tech Managing Editor

- Dow Jones News Service - Peter Loftus, Technology Business Reporter

- Fast Company - Heath Row

- Fortune - David Kirkpatrick, Senior Editor

- Los Angeles Times - Russ Stanton Computers & Technology Editor

- The Orange County Register - Kate Lee Butler, Technology Editor

- National Public Radio - Les Cook, Business News Editor

- New York Times - John Haskins, Deputy Technology Editor

- San Francisco Chronicle - Marcus Chan, Computers & Technology Editor

- Seattle Times - Mark Watanabe, Technology Editor

- The San Diego Union-Tribune - Suzanne Choney, Technology Editor

- USA Today Geri Tucker Technology Business Editor

- Wall Street Journal - Walter Mossberg, Columnist, Personal Technology