Olsen Red Plastic Koozie

Desc:

IW#

Patent#

REDPLASTICKOOZIE

PRCAPR-12

PatentPending

Red Plastic Koozie™

Discreetly Keeps Canned

Beverages Cold

Red Plastic Koozie

DISCREETLY KEEPS CANNED BEVERAGES COLD

By Innovators Warehouse, [email protected]

www.RedPlasticKoozie.com | www.innovatorswarehouse.com/redplastickoozie

Red Plastic Koozie

Table of Contents

Introduction 4

Product Design 5

Competitive Landscape 5

Industry Overview 5

Target Market 6

Financial Analysis 8

Contact and Licensing Information 15

RED PLASTIC KOOZIE | Prospectus

IntroductionInnovators Warehouse, along with inventor, Scott Olson, introduces the Red Plastic Koozie, a patent-pending invention available for licensing opportunities. Taller than traditional koozies, this proprietary design looks like a plastic cup, yet completely covers and insulates an entire 12 oz. can. As a result, drinks stay cooler, hands stay warmer and the label on the can is hidden from view.

Tailgaters and others at large public venues will be particularly pleased with this design, as it re-duces the chance that they will be questioned by authorities about what they are drinking, regard-less of how responsible their behavior may be. While the Red Plastic Koozie cannot evade open container laws entirely, it will make it easier for law enforcement to move on to those that they are obligated to cite; the obvious offenders, who are drinking out of beer cans with labels that are peaking over short koozies.

Though laws and penalties vary by state, possessing an open alcohol container in public is illegal for the vast majority of the country, leaving a large market of potential users who will appreciate its practical functionality. Furthermore, given its ideal surface area for imprinting logos and messages, the Red Plastic Koozie has tremendous potential in the promotional products industry. In addition, as it eliminates the need for the ubiquitous plastic cups found at outdoor events, the Red Plastic Koozie is an environmentally conscious solution for partiers nationwide.

Surprisingly, there is currently no product available in the marketplace with the same unique pro-motional appeal and functionality as the Red Plastic Koozie. Not only does this product provide a utilitarian means of holding a beverage can while drawing attention away from authorities, it pro-vides a novel promotional opportunity that brings with it a great deal of potential revenue. Though the original design is intended as a recognizable Red Plastic Koozie, many variations are possible as the product line expands, including color and imprint customization. This flexibility in design provides sports teams at various levels a unique means of generating ticket sales and team spirit.

Beyond sports teams, the customizability of this product makes it ideal for promoting a vast array of products and events. As enthusiastic consumers generate excitement about the Red Plastic Koozie, sponsors of the related promotion will reap the rewards that result from increased product sales and/or game attendance, making it a highly sought after promotional product; ensuring a tremendous return on investment for those with ownership rights to its patent.

www.InnovatorsWarehouse.com4


Product DesignConstructed from plastic and/or foam that is typical in can koozie production, the Red Plastic Koozie is designed to look on the outside like a conventional plastic cup, with a tapered profile and ridges around the top rim area. Only upon closer inspection does it become obvious that the design is a result of the merger of the plastic cup and the koozie, making it an insulated container that looks like a cup, but securely holds a beverage can, while concealing the can’s label.

As shown here, a large percentage area of the Red Plastic Koozie is imprintable, giving marketers a healthy return for their clients’ promotional investment.

It is important to note that while these are the basic parameters outlined in the patent application, certain design modifications may be made without compromising the integrity of the patent.

Competitive LandscapeAside from the standard koozies and disposable plastic cups available in the marketplace, the Red Plastic Koozie has no direct competitor in the United States with the same unique characteristics. Given its large imprint area and appeal as a unique promotional product, the Red Plastic Koozie is well positioned for success in a healthy industry.

Industry OverviewValued at $16.5 billion in 2010, the promotional products industry remains healthy and is in fact showing signs of recovery from the recent economic downturn, according to the Promotional Products Association International (PPAI). The Association’s assessment found that distributors sold $921 million MORE promotional products in 2010 than in the previous year, a 5.9 percent increase (http://pubs.ppai.org).Specific to the Red Plastic Koozie, drink containers are among the most popular promotional products available in the industry. For example, the imprint on a 12 oz. stadium cup gets about 198 impressions per month, according to a 2010 survey by the Advertising

5

Specialty Institute (ASI), making it an easy sell for companies seeking a low cost per impression advertising vehicle. Clearly in this same category is the Red Plastic Koozie, a novel alternative to the staid stadium cups. ASI distributors will push the exciting new design of the Red Plastic Koozie to end users through tailored marketing campaigns that capitalize on its novel design in an otherwise lackluster product category.

One particular trend in the promotion products industry that will have a tremendous impact the success of the Red Plastic Koozie is the shift to imprinting of Quick Response (QR) codes, to supplement simple logo and slogan imprints. The hottest trend in mobile advertising, QR codes allows consumers to instantly access product information simply by scanning the QR with a smart phone to get discounts, videos and website links on their screens. QR codes can be printed in black and white or color.

As QRs require a 1-inch by 1-inch imprint area, the Red Plastic Koozie is among the select few promotional products ideal for imprinting. Once in place, the codes can be used to educate, enter-tain, engage and reward consumers with compelling on-line material, greatly enhancing the pro-motional value of the Red Plastic Koozie.

Target MarketGiven its broad appeal as a means to keep canned drinks cool, the Red Plastic Koozie’s target market includes all households in the U.S., of which there are 114 million, according the latest available census data. Specific markets within that universe are those segments that are geared around tailgating and other outdoor celebrations where consumers are prone to drinking canned beer.Though laws and penalties vary by state, possessing an open alcohol container in public is illegal for the vast majority of the country. The few exemptions that exist are in the following regions: the historic district of Savannah Georgia, the Power and Lights District in Kansas City, the Strip in Las Vegas, the French Quarter of New Orleans, and Butte, Montana.

As a promotional product, the obvious introductory markets include collegiate and professional sports teams, broken down as follows:

College Football 629 teamsMajor League Baseball 30 teams (29 American, 1 Canadian)National Football League 32 teamsNational Hockey League 30 teams (27 American, 3 Canadian)Major League Soccer 18 teams



In addition to the professional sports industry, the Red Plastic Koozie may be sold as a promotional product across various industries and product lines and will largely be distributed to the consumer market through the venues at which sports teams compete and entertainers perform. According to information provided by World Stadiums, there are 1,816 stadiums in the U.S., defined as any indoor or outdoor venue with between 3,000 and 250,000 seats. The breakdown by state is as follows:

State and number of venues with at least 3,000 seats:

Alabama 48Alaska 13Arizona 35Arkansas 31California 101Colorado 33Connecticut 26Delaware 15District of Columbia 9Florida 76Georgia 41Hawaii 11Idaho 15Illinois 54Iowa 31Kansas 22Kentucky 28Louisiana 28Maine 10Maryland 40Massachusetts 33Michigan 54Minnesota 35Mississippi 26

Missouri 37Montana 13Nebraska 20Nevada 21New Hampshire 14New Jersey 29New Mexico 18New York 79North Carolina 53North Dakota 14Ohio 68Oklahoma 29Oregon 30Pennsylvania 56Rhode Island 10South Carolina 36South Dakota 13Tennessee 47Texas 159Utah 28Vermont 45Washington 38West Virginia 23Wisconsin 42Wyoming 6

7

Financial AnalysisAlthough the Red Plastic Koozie will be distributed to end users primarily throughconventional direct-to-consumer sales, it’s important to also consider thesignificant potential revenue associated with promotional sales. Both scenariosare outlined below.

CONSUMER SALESAs it remains in the prototype phase, exact production costs for the Red Plastic Koozie are yet to be determined. However, using very conservative cost estimates based on industry averages, the following assumptions are presented to provide a broad picture of the product’s potential.

Assuming a production cost of $.30 and sales price point of $5 (no imprint) for each Red Plastic Koozie, first year sales would exceed one million units, assuming that just one-half of one percent of the households in the U.S. purchases an average of two Red Plastic Koozies.

While the TOTAL market universe is a vast 151 million fans, the introductory market for the Red Plastic Koozie includes only those games for which a giveaway is offered. A conservative sales forecast across all sports can be expected to look like the following:

League # of teamsApprox. # of

home games / season per team

Per Game Attendance

Average

Total Market Universe per

season

Division 1 College Football 120 7 46,704 39 million

MLB 30 81 33,253 80 million

NFL 32 8 67,000 17 million

NHL 30 20 16,000 9.6 million

MLS 18 17 16,677 5.1 million

TOTAL 151 million

League2/3 of teams participating in giveaway promotion

# of games offering

giveaway

# of Red Plastic Koozies given away per game

Total Promotional Unit

Sales Year 1

Division 1 College Football 80 2 10,000 1,600,000

MLB 20 3 10,000 600,000

NFL 22 1 10,000 220,000

NHL 20 2 10,000 400,000

MLS 12 2 10,000 240,000

TOTAL 3.06 million



It is important to note that this conservative estimate represents the introductory effort for the first season that the Red Plastic Koozie is made available in the promotional products industry. This particular financial model assumes that 2/3 of the teams will give away a Red Plastic Koozie to the first 10,000 fans to attend specific games (only 1 to 3 games per season). Sales will rise exponentially as one or more of these factors increase.

Furthermore, this model reflects sales ONLY to the sports markets for game giveaways and does not include other types of sports promotions, or sales to other buyers, such as corporations, non-profit entities and others.

CONSUMER SALESAs it remains in the prototype phase, exact production costs for the Red Plastic Koozie are yet to be determined. However, using very conservative cost estimates based on industry averages, the following assumptions are presented to provide a broad picture of the product’s potential.

Assuming a production cost of $.33 and sales price point below $2 (no imprint) for each Red Plastic Koozie, first year sales would exceed one million units, assuming that just one-half of one percent of the households in the U.S. purchases an average of two Red Plastic Koozies.

ASSUMPTIONS: All U.S. Households $0.30 Estimated production cost 8.3 Estimated manufacturer’s mark-up to wholesale $2.50 Wholesale price (rounded) 2.0 Mark-up to retail $5.00 Suggested retail price (rounded) 114,000,000 TOTAL Target Market: (U.S. Households) 0.50% First year market share (innovators) .75% 2nd year market share 1.00% 3rd year market share 2 Number of Red Plastic Koozies purchased per buyer 1,140,000 First year sales 1,710,000 2nd year sales 2,280,000 3rd year sales

NOTE: Decreased production costs based on volume are not reflected in projections.

After subtracting very conservative cost estimates to manufacture The Red Plastic Koozie, the investor is still looking at a return of $5 million+

after 3 years.

Generally, the cost of the Red Plastic Koozie as a promotional product will becovered by a sponsoring company that will take advantage of the uniquemarketing value of such a novel product, to reap the financial rewards from theincreased sales that result from the promotion; all while getting the product intohands of consumers.

REVENUES Year 1 Year 2 Year 3

Total revenue to manufacturer $2,850 $4,275 $5,700

Cost of sales $342 $513 $684Gross profit to manufacturer $2,508 $3,762 $5,016

Gross profit percent 88% 88% 88%

Total revenue to retailer $5,700 $8,550 $11,400

Cost of Sales $2,850 $4,275 $5,700

Gross profit to retailer $2,850 $4,275 $5,700

Gross profit percent 50% 50% 50%

FINANCIAL SUMMARY (Amounts in $000s)

PROMOTIONAL SALES



Using data provided by each of the leagues, ESPN and the NCAA, a simple computation that considers the number of home games and average attendance per game results in the potential market universe for each league, as outlined the chart below:

It is important to note that promotional consideration will largely be limited to outside venue events, particularly at the collegiate level. That said, even a very small percentage of the fan base outlined above will generate significant incremental sales:

Total Market Universe: 551 million fans per season.5 % market penetration: 2.7 million units1 percent market penetration: 5.5 million units

While the TOTAL market universe is a vast 551 million fans, the introductory promotional market for the Red Plastic Koozie can quickly exceed 5 million units; even at just one percent market penetration.

It is important to note that this conservative estimate represents the introductory effort for the first season that the Red Plastic Koozie is made available in the promotional products industry. Furthermore, this model reflects sales ONLY to the sports markets for promotional giveaways and does not include other types of sports promotions, or sales to other buyers, such as corporations, non-profit entities and others.

Clearly, the broad appeal of the Red Plastic Koozie across multiple industries and categories decreases the risks and barriers to market, while increasing the potential for its success. As this unique product takes its place at the forefront of successful promotional products, and evolves over the next several years with advanced customization, the owners and / or licensors with the rights to the Red Plastic Koozie can expect tremendous success for years to come.

League# of teams Approx. # of

home games / season per

team

Per Game Attendance

Average

Total Market Universe per

season

College Football 629 7 62,838 440 milliona

MLB 30 81 33,253 80 million

NFL 32 8 67,000 17 million

NHL 30 20 16,000 9.6 million

MLS 18 17 16,667 5.1 million

TOTAL 551 million



Notes



Commercial success only occurs when a well thought out plan is executed precisely. I am not saying that speed bumps don’t suddenly appear from time to time on the road to commercial success, they occur a lot. The successful business person finds a way to smooth them out or detours around them without losing too much momentum.

– Kenny Durham, Innovators Warehouse

Contact & Licensing Information

877.509.7642

931 SW LeMans Ln

Lee’s Summit MO 64082

[email protected]

WAREHOUSEALL ACCESS PASS

InnovatorsWarehouse.com

W.ID#iwcrew@

W.ID#

WAREHOUSE TEAM

877.509.7642

931 SW LeMans LnLee’s Summit MO 64082

[email protected]

InnovatorsWarehouse.com

iwcrew@

Inno

vato

rsW

areh

ous

e.co

m

15

www.InnovatorsWarehouse.com

INNOVATORSW

AREHOUSE

.COM

Documents

Olsen Red Plastic Koozie