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Human Capable Inc. is the producers of Norm Glasses products. The feature of these glasses is somehow very different from common or regular glasses. Norm glasses are embedded with special features within their frames. As the frames are inserted with CPU. Memory, cameral. Audio and display system, speakers as well as microphones. With the use of high technology, the introduction to such glasses has created magic in this product line.
The glasses produced are to enter in a new digital world. This is involved in the advanced technology that is adopted by every age group.
Human Capable has introduced with a Kickstarter campaign in the period of 30 days that have a purpose of increasing funds to $15,000. However, this has crossed within some hour. The campaign has raised almost more than 740%. The recent plan of norm glasses is for the manufacturers to suggest the retail price of $449. This is possible due to the people standard of living is high. The people are more interested in this high technology and have the capability to adopt such advanced products. Further, Norm glasses can have an option to increase their funds through advertisement on online and social media, magazines and reading materials. In the campaign, it has introduced with lower prices products.
With crossing the increasing fund to $500,000, it has planned to upgrade with the photochromic lenses if supported by these glasses. This additional cost has invested in this production. It has not the full possibility for its success. If this will not succeed in creating such then the whole, the cost will go in a loss.
However, the budget will increase ongoing for the third phase as it includes the developers from the third party as well as for its plan for shipping. Until 2020, it will increase its funds through some strategy that binds their additional investment with having a fixed rent production and distribution house, some insurances. Further, with the social media funding, it can raise funds to millions as all the age group of person is engaged within it. Campaigns, offers or discounts on products will increase its market capability and can raise funds for its product.
The price of smart eyeglasses are more than the regular glasses as it consists of various functions. Models like display or that includes advanced technology is much high cost price that starts generally from 500-1500$. The cost incurred by the company in the production of such type of glasses needs higher funds. A predictive budget and break even analysis for producing and increasing their estimated funds is shown below.
The organization has assumed to product 1600 pieces in a year that costs to the consumer for purchasing it will be $599. Then,
|
Cost |
Rent |
25,000 |
Insurance |
20,000 |
Salary/Wages |
200,000 |
Equipment |
1,00,000 |
Fixed Labour cost |
60,000 |
Total Fixed Cost |
405,000 |
Let, Variable cost per unit = 300
Further, Norm glasses can increase their funds through promotional activities.
(Promotional Funding)
15% in Magazine Advertisements
27% through Social media
34% in Crowdfunding campaign
24% in Sponsorship
Kickstarter 2019. Norm Glasses: Lightweight, normal looking AR Smart Glasses. online Kickstarter. Available at: https://www.kickstarter.com/projects/1082773153/norm-glasses/description Accessed 1 Oct. 2019.
Cravens, D.W. and Piercy, N., 2006. Strategic marketing (Vol. 6). New York: McGraw-Hill.
Basch, C.A., Bruesewitz, B.J., Siegel, K. and Faith, P., Visa International Service Association, 2000. Financial risk prediction systems and methods therefor. U.S. Patent 6,119,103.
Anderson, J.C. and Narus, J.A., 1991. Partnering as a focused market strategy. California Management Review, 33(3), pp.95-113.
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