Phree - the World’s First Smartpen

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Portability: Equil smartpen 2 requires an external sensor to be attached to a paper or a note pad for the pen to function (exhibit 2). Livescribe 3 smartpen requires a special dot paper (Exhibit 2), which needs to be purchased and the pen can only function using the dot paper. Both these devices need some kind of extra unit to be made available for it to be used. Phree on the other hand does not require any attachment expect the pen itself. This is a very strong point that adds value to Phrees ease of use.

Input device: Both Equil smartpen 2 and Livescribe 3 smart pen are designed as regular ballpoint pens that require timely ink cartridge replacement. This limits them from being a touch screen input device like stylus. Phree comes with a rubberized cap that double as a stylus. This is another unique feature that differentiates Phree from other digital pens. Even though Phree doesn’t have ink, you can see what you’re drawing or writing in real time on your phone, tablet, or PC screen. It’s almost like writing on paper but better.

OTM Technologies

Phree

LiveScribe

SmartPen 3

EQUIL

Smartpen 2

Software (Inner Technology)

3D laser Interferometer

Infared Camera

Built in Digtizer

Infrared & Ultrasound algorithms

Technology used to transfer notes

Bluetooth

Bluetooth

Bluetooth

Realtime transfer of notes

✔

✔

✔

External purpose built material

ANY surface or material

Livescribe dot paper

External Sensor attatched to any paper

Software used to manage notes

EverNote,OneNote,Viber, Office,telephony app

Livescribe+ app

Equil note

Ink Cartridges

✔

✔

Used as a mouse pointer/stylus

✔

COMMERCIALIZATION CHALLANGES

(Wikipedia, 2016)

[pic 1]DEMAND FORECAST

Phree’s first of its kind technology in the digital pen market makes it a disruptive technology. Phree’s ability to be extremely portable and its ‘make your world a canvas’ tagline will lead to its greater market penetration. The demand for high tech devices is that serves multiple purpose is reaching new heights. Phree’s idea of being a device, which can perform as something more than a digital pen can reach market segments whose needs are not being met by existing digital pens.

Since Phree is a digital pen claiming to make note taking more efficient and easy, its target market would comprise of students and professionals. Also, since Phree is falls under premium price range, we assume that the students should at least be going to college and be financially viable. Exhibit 4 shows the enrollment data. We will consider that the market size under the student segment to be approx11M. Under the professional segment, we estimate the market size to be 52M.Therefore our estimated market size combining both our target markets in 63M.

[pic 2]Like every new technology, we can divide Phree user’s into different segments of technology adoption. Since the concept of digital pen’s is already known to people, we expect Phree to attract more of early and late majority which comprise of 33% and 32% of the market share. Understanding these segments will be of great importance to Phree. This will help tailor their marketing campaigns and product placements.

(Profile, 2011)

SCALING AND MANUFACTURING CHALLANGES

The laser in the sensor used in Phree is the same kind of laser that’s used in optical mouse. Since there are already established tech companies that carry out the production of these sensors, it will not be that difficult to produce these sensors in large scale. But one of the issues that will have to be dealt with caution is the facts that since it’s a patented technology, OTM technology may have to deal with some legal process, which might take up time.

ADVERTISING AND MARKETING CHANNELS

Exhibit 5 and 6 shows information on how important social media has become in todays life. Phree should focus extensively on digital marketing to up their product visibility. Below are some of the digital marketing channels that Phree could benefit from.

Content Marketing:

With the digital era, digital marketing is become more and more effective. Phree should focus extensively in content marketing. Since there are similar products in the market doing well, it should be able to differentiate itself in the market by leveraging its unique features that the competitor products do not offer.

Social Media Marketing:

Phree’s marketing department should come up with videos ads demonstrating how the product works, maybe a YouTube channel is worth the investment. They should also collect interesting user testimonials on how phree has had a positive impact on their work and life and share it across their social media channels. If you give people interesting stories or visuals that they can connect to, they will be compelled to talk about it and share it with their friends.

In –person events:

Since bulk of the Phree users would be college students and active professionals, it should conduct product demonstrations at colleges, universities, Best Buy, Bookstores and even try to contact big corporate