New Product Marketing Plan

Lead into Gold Marketing

May 12, 2015

Authored by: Tamara Pukowiec
Smart Laser Pen Marketing Plan Laser Tech, Inc.

Executive Summary

Laser Tech, Inc. is the current leading manufacturers of technology based home use products.

The latest innovative brand development is going to change the way people think of and

approach tattoo removal. The marketing plan will ensure that the consumers will be approached

with well-developed information and data about the Smart laser Pen© and as well as ample

opportunity through a wide array of retail sales offerings.

The American public has developed an open minded approach to tattooing. That being said,

mistakes and changes in standards change in a person’s life making yesterday’s choice,

tomorrows regret and careers choices change or become affected by lifestyle choices and past

actions. Studies have shown that most tattoo removals are performed on people in their 30’s and

40’s showing for some, that what was attractive in your 20’s is not so attractive in your 30’s.

With 45 million American currently having one tattoo or more, this is where we find the

opportunity to present a solution to unwanted body art.

Representing the latest, innovative laser technology, Laser Tech has developed a new home

device that solves a problem for many. With the Smart Laser Pen© you get a simple to use,

economic, do it yourself tattoo removal method that links to your smartphone via USB cable and

calibrates based on your skin tone and ink color using the camera function. This device uses

intelligent software and innovative technology that allows the average person the ability to

operate with ease. There is a large, untapped market that is waiting for this solution. The only

prior offerings were inpatient laser surgery or ineffective creams that amounted to little or no
Smart Laser Pen Marketing Plan Laser Tech, Inc.

results. This marketing strategy will seek out the wide audience and deliver a long awaiting

solution.

1 in 5 Americans currently have 1 or more tattoos; this is roughly 45 million adults. Revenue for

tattoo removals has advanced 440 percent to an estimated $75.5 million in the last decade. 98

percent of this market has been creating profits for inpatient laser surgery. Spending on tattoo

removals will continue to grow and is expected to hit $83.2 million in 2018. With revenue for the

industry overall was an estimated $3.4 billion in 2014, an annualized growth rate of just 2.9

percent, Laser Tech has a large untapped market to target with the only competitor offering

effective treatment that is painful, inconvenient and expensive. The latest innovation is here and

ready to be presented to the waiting market.

The marketing plan is simple, but effective. The want is there, the market is just waiting for the

introduction. This kind of product is a solution based product. Much of the target marketing is

already active in seeking out the solution; they just need the education and information on how to

find it and where to purchase it! The basic advertising through print, internet and social media, is

all the Smart Laser Pen© needs to saturation and upsurge to its potential.

Our marketing team uses all available data to pinpoint who our target is and where we need to

advertise to get their attention. By targeting the right magazines, websites and social media that

the appropriate audience is currently engaged with, Laser Tech will reach its audience with great

efficacy.
Smart Laser Pen Marketing Plan Laser Tech, Inc.

Company Analysis

Laser Tech, Inc. was founded in 2005 by Kevin Ogilvie and Bill Leeb. Kevin is a 2001 Harvard

alumni and Bill a former Silicon Valley CEO for Foresite Industries, a leading software

development firm. The two professionals met while at Forsite, where Kevin took his first career

step in the new product research and development department. There they became fast friends

and decided to use their skills and start their own tech company; Laser Tech, Inc.

Laser Tech started out developing software and equipment for medical surgical devices, paving

the way for minimally invasive robotic surgeries that allows doctors to take surgery beyond the

limits of the human hand. With the help of these devices a surgeon’s hand movements are

translated into smaller, more precise movements with the help of tiny robotic instruments. These

advanced medical achievements lead Laser Tech to developing technological advancements for

the home user market with products such as the Zero Acne© treatment device and the Frea©

home hair removal laser device. These advancements have placed the company in the Forbes

most innovative companies list of 2012, 2013 and 2014 and lead to their latest device the Smart

Laser Pen© tattoo removal device.

Laser Tech is transforming the home user market with these new developments and going far

beyond what they ever imagined possible. Their medical devices are used in advanced surgical

hospitals worldwide and their new home use devices are sold through most major retailers in the

U.S and Canada and have been most recently released in major European & Asian markets.
Smart Laser Pen Marketing Plan Laser Tech, Inc.

With the increased demand, Laser Tech has had to increase production and hire 50 new

employees on the production side as well as increasing sales and management staff to a total of

215 total employees at its headquarters in Seattle, Washington, where they have been since their

2005 inception. The original line of medical devices were developed and manufactured on site

and sold and shipped worldwide. The newest home market devices were manufactured and

shipped from Vancouver, Canada to retailers in the U.S in Canada and more recently Europe and

Asia.

Laser Tech’s goal is to be the leading producer of surgical and home care devices. Laser Tech

wants be the leading force in innovative surgical robotics that help and heal in the medical

industry as well as give retail consumers technology once seen as futuristic and unaffordable. In

addition, Laser Tech promises to keep designing safe, reliable products that innovate and

empower no matter how big or small the objective.

Marketing Definition, Potential and demand

Laser Tech currently runs two separate marketing divisions; the surgical division and the home

implement division. The surgical equipment market will continue to grow largely in part to

increased surgical interventions needed to treat growing medical conditions such as obesity,

heart diseases and cancer. Increasing demand for cosmetic surgery also increases the need for

specialized surgical equipment, with a 5.1 million rise in cosmetic procedures in the US in the

past 10 years. It has enabled Laser Tech to expand into a new market.
Smart Laser Pen Marketing Plan Laser Tech, Inc.

The household marketing division has had success marketing the Zero Acne© treatment device

and the Frea© home hair removal laser device. With the high quality, innovative, and unique

qualities of Laser Tech’s devices, their following among consumers between the ages of 18 and

40 has increased at a fast pace. Sales have tripled in the last year alone and Laser Tech has had to

expand its manufacturing capabilities and employee base to handle the increase in demand. Laser

Tech expects its new technology; the Smart Laser Pen© tattoo removal device to open to record

sales.

The Smart Laser Pen© is an innovative new technology that pairs smart phone technology with

home tattoo removal. It is a pen-like laser device that connects to a user’s smart phone through a

USB cord, which is operated through smartphone software. The customer uses the smart phone

camera to calibrate the laser, based on skin tone and tattoo color readings. The customer may

then use the pen laser to treat the tattooed areas. The kit comes with enough laser refill kits to

treat an area of approximately 4 inches by 4 inches, depending on saturation and tattoo color.

Refill kits may be purchased to complete larger or more stubborn areas.

The marketing strategy for the Smart Laser Pen© will be similar to the Zero Acne© treatment

device and the Frea© home hair removal laser device, focusing on consumers between the ages

of 18 and 40 of both sexes. Studies show that 1 in 5 (21 percent) adults in the United States have

at least one tattoo and that about 36 percent of Americans age 18 to 29 have at least one tattoo. In

a study by the American Society for Aesthetic Plastic Surgery (ASAPS’s), tattoo removal

numbers are increasing, the number of tattoo removal procedures in the U.S. reached 45,224 in

2013 compared to 40,801 procedures in 2011. The amount of money paid for tattoo removal

treatments is also increasing, doubling from year 2011 to year 2013. In 2013, the national

average for tattoo removal procedures was approximately $1000. Traditional inpatient tattoo
Smart Laser Pen Marketing Plan Laser Tech, Inc.

removal is expensive and painful and spending on tattoo removal is still growing and expected to

hit $92.2 million in 2019 and Revenue for tattoo removals has surged 550 percent to an

estimated $80.5 million over the last decade, in fact, tattoo removal is rumored to become the

next billion dollar industry.

With the steady increase in numbers, that looks to only grow as tattooing becomes even more

typical, the demand for cheaper and easier alternatives will only continue to build. In a 2014

Mondale Center survey of 700 patients in North America, they were asked to state their main

reason for seeking out removal treatment. The leading answers for removal reason were

“Employment Reasons” which accounted for a massive 40 percent of all submissions, followed

by “Name of Ex-Partner/Spouse” (18 percent), “Change in Beliefs” (16 percent), “Other” (15

percent), and ‘Unhappy/Don’t Like it’ (11 percent). This data suggests that job seekers are

having difficulties because of tattoos and are seeking laser treatments to erase the problem. In

fact, piercings, bad breath and tattoos are the top three issues when it comes to getting hired or

getting a promotion. The outlook on removal grows as people tend to experience tattoo

remorse.

Customer Analysis

The customer analysis for the marketing of the Smart Laser Pen© points to the 20-40 age range

of consumers of either sex, although the female segment does outpace the male as they

accounted for 32,888 (72.7 percent) of procedures.

Smart Laser Pen Marketing Plan Laser Tech, Inc.

Tattoo Removal Demographics

Women
Men

According to secondary data, middle aged Americans have been driving up the numbers for

tattoo removal. Tattooed adults from the ages of 35 to 50 accounted for 19,046 of tattoo

removals preformed in 2013. From the ASAPS’s Cosmetic Surgery National Data Bank history,

individuals over the age of 65 are starting to pull up in number for tattoo removal with 424

procedures being attributed to this group and looks to only increase in number.

Our sample survey done through current patients, of 5 major centers for plastic surgery in the

United States, contained a pool of 5,000 women and 5,000 men. Our data shows that consumers

are interesting in easier and less expensive methods and goes on to show that 4 out of 5

individuals would prefer a low cost method that could be done in their own home. Data also

collected from the positive responses, showed that the majority (75 percent) of this population

were women in the 25-45 age groups that lived in predominately warm climates.
Smart Laser Pen Marketing Plan Laser Tech, Inc.

Geographical data
1600
1400
1200
1000
800
600
400 Geographical data
200
0

There were also no compelling income equalities between sex, age groups or geographical data

and is not believed to be a persuasive factor.

Through secondary data obtained through Harris Poll, the increase can certainly be seen, as more

Americans seek out tattoos as compiled in this eight year survey.

Harris Poll Data

Base: 2,016 adults surveyed online

2003 2008 2012
between January 16 and 23, 2012
% % %
All adults 16 14 21
Region
East 14 12 21
Midwest 14 10 21
South 15 13 18
Smart Laser Pen Marketing Plan Laser Tech, Inc.

West 20 20 26
Age
18-24 13 9 22
25-29 36 32 30
30-39 28 25 38
40-49 14 12 27
50-64 10 8 11
65+ 7 9 5
Sex
Male 16 15 19
Female 15 13 23

Race/Ethnicity
White 16 15 20
Black 14 7 21
Hispanic 18 15 30
Politics
Republican 14 13 17
Democrat 18 15 27
Independent 12 13 21

Competitor Analysis

Currently our retail competition is very weak. The tattoo removal market mainly consists of

creams and abrasives that have minimal results and most of are painful and ineffective.

Of the creams currently available on the market, a 2 month supply of Tats Be Gone is

approximately $125 and Tattoo-R-OFF runs about $116.95. The consumer satisfaction is very

low in this category and would not be considered adequate competition. Most of these products
Smart Laser Pen Marketing Plan Laser Tech, Inc.

have no marketing and are sold exclusively though online proprietary web sites and have no in

store presence. The Smart Laser Pen© will be offered at all major retailers in store and online.

The more costly, but effective method, would be professional inpatient lasering. With

professional removal, depending on the tattoo, a person may need anywhere from 1-10 sessions,

each costing in the range of $250-$850 per session. A large, professional tattoo could cost

thousands of dollars to remove. It works by targeting the ink with pulses of highly concentrated

light that break the ink into tiny fragments, which are then cleared away the patient’s immune

system. This is a similar method to the Smart Laser Pen©, but using a more primitive laser

technology. This would also be our closest competition, but puts Laser Tech with the advantage

of convenience, price and latest technology.

The initial difference would be the trust angle that a doctor could infer. Our method will be

stressed as new and groundbreaking, a doctor need not be consulted any longer. This gives us an

edge over any current competition, as there are no comparative options. Laser Tech will come in

with a low cost, convenient option, bolstered by a strong reputation in the home health device

market. The marketing will be key to educating prospective customers.

Swot Analysis
Smart Laser Pen Marketing Plan Laser Tech, Inc.

The current marketing atmosphere for Laser Tech represents vast opportunities. It also holds

some challenges that Laser Tech believes it can reach comfortably as represented in the

following SWOT analysis below.

The SWOT analysis presents an outline of the company’s current position in the marketplace.

Over the last 5 years, Laser Tech has gained a lot of ground, while continuing to develop new

technology and products, however, as Laser Tech has expanded its original robotic devices and

expanded into the home device market, Laser Tech must keep ready with the marketing of each

segment of the company to play each segments unique strengths. As Laser Tech goes further

into this new market, we will need to track our competition and continue to develop new and

innovative technology to stay as front runners of the market.

The diagram below illustrates a SWOT analysis of the company conducted by marketers to focus

on Laser Tech’s strengths, weaknesses, opportunities, and threats.

Strengths Weaknesses

 Strong technological  Lack of consumer knowledge

background
 Managing two separate
 Low cost to consumer marketing departments

 Previous marketing successes  New target market

 Reputation and connections  Young technology

Smart Laser Pen Marketing Plan Laser Tech, Inc.

Opportunities Threats
 Current customers are more  Closest competition comes
likely to consider new products doctor recommended

 No close competitors  Copycat competition

 New Innovative technology  Consumer impression of

industry standards
 Large target market
 Rapid changes in technology

Product Strategy

Laser Tech’s current objectives for the Smart Laser Pen© is to become the first affordable

method of home tattoo removal in the world. Laser Tech wants the brand to become synonymous

with being a leading developer of new, innovative technologies.

Laser tech has become a leading in the medical robotics industry and more recently in the home

device technology market. The previous products in that line have cemented the Laser Tech

name as a brand with a great reputation for innovative ideas. They have developed reliable
Smart Laser Pen Marketing Plan Laser Tech, Inc.

products with low failure rate in consumer reviews. The introduction of the Smart Laser Pen©

will follow the same route, in line with the reliability and top rated reviews of past products.

The Laser Tech brand has always offered a 60 day money back guarantee to consumers to ensure

and create a worry free buying experience. Satisfaction is always at the forefront of the Laser

Tech brand and will always honor that promise as customer service is key to a great relationship

with consumers.

Laser Tech will focus on reinforcing the brands achievements in technology, to relate to

consumers that the brand has the background experience and know how to produce ground

breaking products that are far above any competition. The emphasis should be on the standards

Laser Tech has set and the benefits consumers will be purchasing with the brands products.

As a brand offering a new, innovative technology, it is imperative that Laser Tech invests in

clear easy to understand educative advertising. Bold print headlines stating “Tattoos don’t have

to last forever...with the Smart Laser Pen©” The goal is to get the message across without a lot

of technical details that is over involved. The customer should get the idea immediately. The

advertisement should focus on a before and after to solidify the achievements offered.

Price Strategy

Laser Tech looks to aim towards a midpoint pricing structure. With the average tattoo removal

treatment costing approximately $200 and lasting about 15 minutes, the average number of

treatments needed at 7 (for a tattoo of with the measurements of approximately 4 inches by 4

inches), the traditional method ultimately runs at approximately $800 an hour or $1,400 total on
Smart Laser Pen Marketing Plan Laser Tech, Inc.

average. The Smart Laser Pen© brand will be priced with competition in mind. The Smart Laser

Pen© cuts those costs down to approximately $250 for a comparative tattoo removal. This puts

Laser Tech at an advantage over the competition.

The costs to Laser Tech are minimal as the materials are inexpensive and the smartphone

technology will be downloaded online. The main costs are for the laser pen; this includes the cost

of labor and materials, freight costs, administrative costs, selling costs. In a break even scenario

we examine Laser Tech’s breakeven pricing scenario;

Monthly Fixed Costs

 $15,000

Variable Costs

 Smart Laser Pen© $10

 One Laser refill kit $5

Total= $300.00

Total Costs for quantity of Smart Laser Pens© sold

200 15,000+ (200x15)= $18,000

400 15,000+ (400x15)= $21,000

600 15,000+ (600x15)= $24,000

1,200 15,000+ (1,200x15)= $33,000

Breakeven Scenario

Number of units sold

Price 200 400 600 1,200
Smart Laser Pen Marketing Plan Laser Tech, Inc.

100 $ 20,000 40,000 60,000 120,000

200 40,000 80,000 120,000 240,000

250 50,000 100,000 150,000 300,000

Fixed $ $18,000 $21,000 $ 24,000 $33,000

Income-Total Cost

200 400 600 1,200

$100 $2,000 $19,000 $36,000 $87,000 =All Profitable Situations

$200 $22,000 $59,000 $96,000 $207,000

$250 $32,000 $79,000 $126,000 $267,000

The profitability goes far beyond a breakeven scenario, but in regards to the Smart Laser Pen©

the pricing is a result of technology, not manufacturing costs. Given the pricing of the inpatient

tattoo removal method, the Smart Laser Pen© pricing is on the modest side. The technology and

the convenience are the selling points that enable the incredible return of investment. This

breakdown does not include further cartridge sales based on tattoo sizes beyond the average 4

inches by 4 inches. Laser Tech has chosen a pricing point based on competition and technology,

not purely profit projections. This newly developed technology can command and maintain the

pricing structure.

Place (Distribution Strategy)

Smart Laser Pen Marketing Plan Laser Tech, Inc.

The Smart Laser Pen© has a wide distribution channel and will be sold at all major retailers

online and brick and mortar, in the United States and Canada and then, starting in May 2016,

Europe and Asia. Laser Tech has the advantage of having previous devices already in the market

chain and will not need to find fresh retail leads as the retailers already have contract in place to

sell Laser Tech products.

The Smart Laser Pen© is currently manufactured in the company owned facility in Vancouver,

British Columbia, Canada, where all Laser Tech products are manufactured. The products are

hand packaged into small 3 inch by 6 inch recycled cardboard boxes; all boxed in large shipping

containers and then transported via a trucking service to the warehouses of the major retailers

Laser Tech are contracted with.

The retailers Laser Tech works with are given a 50:50 profit split. The goal is to sell in a large

quantity. The retailers buy the Smart Laser Pen© at a price of $250 and mark the product up to

$275 putting the profit for each at $117.50. As Laser Tech relies on the retailers to push the

product, it makes better business sense to share the profits with the retailers and gives Laser Tech

the advantage over would be competition and ensure that retailers make larger bulk purchases

and devote better product placement and shelf space. Laser Tech has also negotiated with

retailers to offer more initial couponing and discounting in the first 3 months of product release,

enabling hesitant consumers more attractive enticements to purchase.

Laser tech’s generous profit sharing attitude with retailers enables the retailers to take more

control and interest in selling the product and a more willing attitude towards product education

to further enhance sales to consumers.

Smart Laser Pen Marketing Plan Laser Tech, Inc.

Promotion (Communication Strategy)

Laser Tech connects with their customers and distributers about its products in a variety of ways.

Current information about Laser Tech, the company as well as its product, is always marketed

and available through paid advertising, direct mailings, and through the internet. Laser Tech’s

marketing department also maintains Facebook, Twitter and Instagram sites as a part of their

ongoing social media campaign.

Laser Tech’s promotional efforts also seek to differentiate its products from those of its

competitors. They maintain and cultivate retailer relationships to ensure that their products are

properly displayed and recommended. Laser Tech conducts training sessions and provides

detailed product information to guarantee proper training to retail sales departments.

A release strategy will focus on discounts and sales promotions to start building interest and

enticing consumer participation to push sales. The product promotion will begin with major

marketing in women’s beauty and various health magazines focused on both genders. There will

also be an advertising focus through various online retailers and information based websites that

cater towards our primary target consumer audience.

Laser Tech will also focus on many nontraditional marketing methods through social media and

special events and contests. During the next year, the company plans to engage in the following

marketing efforts:

 Create a new Facebook and Istagram account focusing on the product benefits and

technology, while maintaining and develop a brand following.

Smart Laser Pen Marketing Plan Laser Tech, Inc.

 Promoting giveaways in women’s beauty magazines to drum up interest and educate and

promote to potential consumers.

 Attend various conventions geared towards of targeted segments to promote the Smart

Laser Pen©. Establishing a product booth to highlight the advantages of removal for

correction or change to current tattoo artwork. Giving product demos and giving away

materials to attendees.

 Hold an ugly tattoo contest through social media, selecting a winner to undergo their

tattoo removal by means of the Smart Laser Pen© to publicize and document via

Instagram.

The budget will be nominal approaching 1.5 million in the first year and evening out to

approximately 750,000 for the next two year. Most of the advertising efforts require little as they

will be done through social media and through consumer education via retailers and online. The

most significant expenditures will be magazine advertising, which will require 60 percent of the

advertising budget, as it will be responsible for making a more visually stunning representation.

Product demos will be available online with a website based video and linked via sponsors and

participating retailers.

Implementation and Control

Smart Laser Pen Marketing Plan Laser Tech, Inc.

Since its inception, Laser Tech has consistently experienced a steady increase in sales since the

release of their first home product, the Zero Acne© treatment device. Figure A shows the sales

for the first 3 years of release, as well as the sales tracking of the Frea© home hair removal laser

device and the projected earnings of the newest product, the Smart Laser Pen© .

4.5

3.5

2.5 Zero Acne©

Frea©
2
Smart Laser Pen©
1.5

0.5

0
Year 1 Year 2 Year 3

Figure A (shown with yearly sales in the millions)

As clearly shown, the Smart Laser Pen© is projected to nearly hit the 3 year sales high of the

most successful product in the Laser Tech product line. Following the timeline and marketing

strategies of past products to follow the 3 year peak product lifecycle. Laser Tech intends to

spend the bulk of major advertising efforts in this time cycle.

The timeline for the marketing of the Smart Laser Pen© will begin with the print advertising,

expanding the communications to go out to the audiences of each segment’s magazines and

associated online sites during this market introduction phase.

Smart Laser Pen Marketing Plan Laser Tech, Inc.

The implementation of each of these tasks will be monitored closely and evaluated for their

performance by the marketing department. Prior study groups have helped test the advertising

effectiveness for maximum results and biweekly meetings will be used to give status reports and

hold internal department discussions to help track and control the advertising efforts. The first

six months will be focusing on these advertising efforts via print.

In cooperation with the print advertising will be the social media section of the marketing

department, responsible for running and maintaining the brands online following. The social

media marketing will be tasked with keeping consumers connected with the brand by running

scheduled contests, events and consumer directed interactions. There will be weekly updates on

statistics pertaining to “likes”, followers and consumer participations. The marketing department

will be tasked with addressing any complaints and questions in a timely manner to keep

customer service satisfaction high. This side of marketing is valuable and important as it

represents the brand image and what Laser Tech looks like to prospective consumers.

As Laser Tech heads into the market growth portion, advertising will have saturated the

consumer segments and the advertising will focus more on the qualities and benefits of Smart

Laser Pen©, emphasizing the economic benefits to consumers by comparison to the only real

competition, inpatient laser removal by a doctor. This emphasis helps drive home the major

consumer benefits. Laser Tech will focus on how safe and effective their device is and how easy

and low-cost it is to its main competition.

As the Smart Laser Pen© reaches the maturation phase and moving towards a decline, the

advertising emphasis will be doubled, to improve any lagging sales. Laser Tech is certain with

the technology and reputation advantage, that competition will be fierce, but inadequate. The
Smart Laser Pen Marketing Plan Laser Tech, Inc.

previous Laser Tech prior product lines still outsell upstart competition 2 to 1 as a result of smart

marketing and superior reputation.