The end user of our Guardian Alert® Doppler Awareness System product is
the safety conscious vehicle owner or operator seeking to minimize the risk
of loss associated with backing accidents. Users of backing awareness sensing
products, may purchase the product as a factory installed option from the vehicle
manufacturer, purchase the product after-market or directly from distributor
for installation in commercial or fleet vehicles, or purchase as an after-market
consumer add-on to their vehicle.
Accordingly, the target market for our Guardian Alert® Doppler Awareness
System product can be identified as follows:
· Manufacturers of vehicles, including cars, sport utility vehicles,
light trucks, heavy vehicles and equipment, and original equipment suppliers
to these manufacturers.
· Owners of commercial fleet vehicles and government departments and
agencies using fleet vehicles.
· Consumer outlets of after-market automotive accessories, including
dealerships, automotive service shops and automotive retailers, direct sales
via the Internet and infomercials.
The North American automotive manufacturers segment has been growing consistently
for the last several years beginning with the emergence of the minivan as a
force in the market and continuing with the more recent trend towards sport
utility vehicles. We believe this segment and the large luxury sedan segment
provide the best markets for our products. Our primary efforts will initially
be focused on the mid to higher end of this market that is expected to be less
price sensitive and more interested in new technologies. We are actively marketing
to decision makers in the original equipment market through manufacturers. Our
marketing emphasis has, however, been to the higher margin market including
dealerships and consumer outlets. Dealerships provide an opportunity to add
our product to a vehicle after it leaves the manufacturer, but before it is
sold.
The 200 million vehicles currently on US roads also provide a number of opportunities
for marketing our backing awareness products. There are also eight million large
trucks owned by commercial enterprises and approximately 4.5 million fleet vehicles
on dealership service plans, which provide a significant point of sale opportunity.
Millions of vehicles each year are repaired at collision centers, which could
offer the product in conjunction with the repair of a rear bumper. Additionally,
most new car warranties require regular oil changes, which are often performed
at dealerships. These visits will provide additional point of sale opportunities
for dealerships that are already stocked with Guardian Alert® Doppler Awareness
Systems.
Our product can result in economic benefit as well as improved vehicle safety
to fleet operators and consumers in these markets. Based on our research and
experience in the fleet market tells us that fleet operators and risk managers
place a greater emphasis on statistical economic analysis than consumers. Equipping
fleets of vehicles requires a significant capital expenditure that needs to
be evaluated relative to the fleet owner's other needs and limited capital.
We believe that consumers weigh cost, safety benefit to persons and property
and aesthetic appeal in making a decision to purchase a backing awareness product.
We believe that the products ease of demonstration and high degree of functionality
can provide a consumer with an appreciation of the benefits in protection of
property and person. We estimate the cost of a system installed on a consumer
vehicle would generally range from $300 to $700, which we believe would appeal
to most new-vehicle buyers that are interested in the safety and protection
aspect of the product. In perspective, the cost of the product is less than
typical insurance deductibles and therefore avoiding one incident would allow
the product to pay for itself. In addition to actual repair cost, Guardian Alert
® Doppler Awareness System purchasers also receive the benefit of saving
the considerable time and inconvenience of having their vehicle repaired and
processing insurance claims. Our product can also be installed beneath the plastic
skin of a bumper, thereby not altering the appearance of the vehicle.
The potential market for ScopeOut® is owners or operators of cars, vans,
SUV’s and trucks worldwide. There are over 200 million vehicles on the
road at any given time, and 16 to 18 million new vehicles being built and sold
each year. In combination with our Guardian Alert®, we have the only “Surround
Safety System” that addresses all the blind spots encountered around the
rear of most vehicles at a cost that permits us to set price points that are
affordable for most consumers.
There are a number of ways to market this product, either individually, or
as a combination.
Marketing outlets include, but are not limited to, the following:
New and used auto dealers
AAA Insurance
AARP
Mass merchandisers
Drugstore chains
Insurance companies
Rental car companies
Electronics stores
Supermarket chains
Independent auto aftermarket stores
OEM market
Internet and infomercials
QVC and HSN