SleepDreams Ltd.

Proposal for BlanketChu

Bringing a new meta to the entire industry
Alvin L. & Crystal Y.

Introduction to the New Product

SleepDreams s brand new product, BlanketChu, is sure to give you a shock. This isn t just your regular blanket; SleepDreams takes everything very seriously, from quality of the fabric to its diverse practical uses. Firstly, it uses a heat pump cooling and heating system to that people being covered by it will feel comfortable at all times. The heat pump system of BlanketChu, is quite complex. To put it simply, BlanketChu uses a fluid to consistently move heat from one side of it to the other. In other words, one side of it will keep you warmed up during the chilly winters, while the other side will keep you nice and cozy under the blazing heat of a summer s day. For a more scientific approach to its mechanics, refer to the diagrams below:

The side with the red coils would be the side of the blanket one would want to be covered by during the cold winters and vice versa. The blanket basically has a system of tubes (as indicated by the red and blue lines) filled with Dimethyl ether, also known as DME. The process begins at the purplish red line, where the DME is in a liquid state. It passes through the expansion valve, which turns it to a gas. Due to the latent heat required to make a phase change, heat and energy is absorbed, making it nice and cool where the blue coils are situated. The ether, having absorbed a considerable amount of heat, goes through the heat compressor. The compressor increases the pressure of the gas thereby increasing its temperature (think of pumping air into a bicycle tire, it heats up). Included in the device containing the heat compressor, the condenser is put into use by turning the hot gas into a liquid form. Latent heat takes into effect yet again, this time, however, heat and energy is released. This makes the bottom side of the blanket (where the red coils are) warm. As it loses heat (from heating up its surroundings), it goes back to where it started: at the purplish red line.

Shall I Compare BlanketChu to Sunbeam Electric Blanket

Now you might possibly be wondering, how is BlanketChu any better than the Sunbeam Electric Blanket? If you are, don t, it s an insult to its engineer s and design crew, a few reasons include: the considerate distribution of heat, energy efficiency, effective use of solar panels and space saving aspects. Some of you may have already noticed, but the heat compressor is located where one s feet would be. This means that the region around one s feet and legs will be the warmest and will gradually get cooler as the fluid travels farther away from the compressor. Research proves that, due to blood circulation, ones feet tend to feel the coldest; therefore, by making the region around the feet the warmest, maximum comfort is established. It is also to note, if one were to flip the blanket over during a warm summer day, the coldest region would be the chest area also creating maximum comfort (because the feet are the coldest and needs less cooling). Another thing to look at is BlanketChu s energy efficiency. The Sunbeam Electric Blanket converts electricity directly into heat, making it only around 25% as effective as BlanketChu s moving of heat. BlanketChu only requires small amounts of energy to work the compressor to transport heat from the room to inside the blanket or heat from inside the blanket to outside the room. Furthermore, BlanketChu uses solar panels to provide some energy (AC current provides the rest through a plug). Solar panels were added after thorough research supporting the fact that most people put their beds beside windows where sunlight is easily accessible. This also gives people more incentive to make their beds, a good habit to have. Lastly, BlanketChu saves a LOT of space. At first, one may only think that it is around 200% space efficient because it can be used all year round, defeating the necessity of having one for fall and winter and another for spring and summer. However, this does not factor in the fact that destroys the need of having air conditioners and heaters, both which require a large amount of space. After hearing about all these design and engineering aspects, you may have some sublunary concerns, such as: HOW AM I GOING TO WASH IT!?!?

Sublunary Concerns
The answer is simple, BlanketChu has two main components, a cover component and the main component with all the cotton and mechanism sealed up with high quality fabric. The cover component is simply a sheet of fabric dyed with any choice of colors and pictures along with solar panels (refer to picture below). The cover portion protects the inner, main component from all types of filth. The cover is also made to be washable, allowing one to stay hygienic at all times. All you have to do is unbutton all the buttons along one of the edges and take out the main component, and give the cover a good wash (the solar panels still work after washing). Remember how there was a weird black circle in the previous diagram called the energy storage? Well, it is made to be attached between two buttons where the energy from the solar panels goes to. The buttons then transfer energy to the energy storages to provide the compressor some of the

Plug in the blanket if planning to have it turned on for long hours.

energy it needs, so remember to put it in back right!

What s in a BlanketChu
Please note, all the costs do not factor in shipping, and are reported in Canadian Dollars (CAD). The cost of the amount of materials listed make exactly 1 adult sized BlanketChu y Mulberry Silk from Silk Trading Company o 400,000 CYN for 1 ton o .: $22.4 CAD for 1 pound, $179.29 High quality fabric from Z-Tex King America Textile Inc. o $18 per yard = $96 Dimethyl Ether, o approx 750mL is needed Cost is $0.43/lb, density is 1.97 mg/cm-3 .: 750,000/226796 = $3.3 Heat Compressor and Condenser along with Expansion Valve set from Lenoxx Electronics o $65 in a set Plastic tubes from Markwise Plastics Inc o Costing roughly $2/yard, $6 in total Solar Panels from Zhejiang Sopray Solar Co. Ltd o $3 to provide 1 watt, $14 in total Energy storage and AC plug from California Independent System Operator Corporation o $8*3 = $24

y y

y y y y

Total cost: $381.59

Target Market
Our target market for BlanketChu is males and females around the age of 24-50 with relatively high income levels. The reason for our approach is due to the fact that the overhead for manufacturing BlanketChu is extremely expensive, consequently forcing us to only aim for the ones who have excess funds to spend on luxurious items. The income level and education degree we are looking at is around $40,000 CAD a year or more with a degree in University. We feel that people with a hobby or habit of sleeping in would benefit most, and would therefore want to purchase our product. Due to obvious reasons, we are aiming only for the parents of families for there is a very low likelihood of teenagers using their measly allowance and part-time job earnings to purchase things as expensive as BlanketChu. We conducted a survey, from which we concluded that people are most likely going to use BlanketChu when the temperature is either under 15 degrees Celsius or above 22 degrees. This makes a few geographic locations very suitable for the retailing of BlanketChu, including: Beijing, Hong Kong, Tokyo and Seoul. In Beijing, only a quarter of the year is spent above 15 degrees, meaning there is a great need for the warming component of BlanketChu. For Seoul, only a sixth of the year is spent comfortably above 15 degrees, we speculate that there would be a huge demand if BlanketChu were to be released there. Tokyo is really cold for 3 months of the year and really hot during the summer, meaning the space saving factor of BlanketChu becomes even more apparent in place like Tokyo. For Hong Kong, half of the time is spent above 22 degrees, meaning the need for BlanketChu s cooling component is great. It is also important to note that all the cities listed are considered metropolises, meaning that most of the people have considerable amounts of income.

Market Distribution Channel

Due to our target being people who live in metropolises, retail stores is our best bet to each the greatest amount of desired consumers. We plan to put our BlanketChu manufacturing facilities in Hong Kong, because it is well known for its top place in economic freedom and seemingly no restrictions. Furthermore, most of the target regions are situated East Asia, having our headquarters in Hong Kong will greatly decrease transportation time and fees. We believe that selling the product in retail stores is the most beneficial because shoppers can walk around and see our product at all times. We decided to directly send our product to retailers without having wholesalers as a medium because we figured it is hard for wholesalers to ship to all the different locations we want to see our product being sold at. Profit is also lost with such medium. A visual diagram of our plan is shown below.

Raw Materials from over the globe.

Manufactering Factories

Retailers who sell a variety of products

Price Setting
As mentioned earlier the overhead for the creation of BlanketChu is $381.59 only factoring the price of the raw materials. We plan to price it at around $499.99 CAD to $549.99, depending on location. This will give us a lot of revenue per purchase, decreasing the need to sell major quantities. Although it may seem like the demand will decrease greatly due to the price, studies have shown that this is not the case. By pricing BlanketChu at a higher price, it gives a more elegant and luxurious image to the product. Godiva is a perfect example of this mentality; many consumers buy Godiva chocolate for its brand, disregarding the price to quality ratio. The price also demonstrates that we value quality over anything else, from the highest quality silk to fabric, gathered from across the globe. Furthermore, high quality mulberry silk blankets cost around $400. Since BlanketChu offers much much more with its brilliant heat pump system, we believe charging only a measly extra $100 is more than generous. All in all, we do not want to price BlanketChu, a Sleepdreams product, at a low-price, and make the entire brand overlooked as a cheap and low-quality one.

Promotion Activities
Our logo for BlanketChu will be a cute little pillow like character with a face that winks at you. Our current version looks like: Needless to say, this product will be solely owned by the company SleepDreams Ltd. As

mentioned several times, the products name is BlanketChu. When saying the products name, it will sound something like blank-at-you. We believe that it will ultimately make it easier for consumers to remember the products name if it s something catchy like blink-at-you while being closely related to the actual product. Our slogan for our electrical, heat moving blanket is this product will give you a shock , playing with the word shock meaning both surprise and an electrical discharge. Our promotion activities will be seen on buses, trains, subways and billboards. Since our target locations are densely populated, the usage of public transportation is almost unavoidable for most. By having our product painted on vehicles such as buses, we can ensure that our product is known to the consumers. Advertising our product on television is also a plausible option, seeing as most of the population in our target locations possess television sets of some kind.

Promotion Piece
See attached enclosure of a sample flyer. Some persuasion techniques used in the flyer was having a dull background in contrast to the product in bright yellow. Another technique was having our mascot (the pillow), Pyonpyon, right in the middle of the flyer, attracting all attention and increasing the chances of a consumer remembering our product. Furthermore, we made our model in the flyer seem like he s sleeping peacefully despite having cold surges of snowy wind blown inside his room. From an artistic perspective, the darkness of the room is a metaphor for the sublunary world filled with moral decay. The wind being blown inside his room would represent chaos as sailors used to get stranded in sea due to storms and heavy wind. The fact that the youth is unconcerned is a symbol of faith towards god, and not fretting on the precipice of despair because of the blanket with bright colors. The bright colors, specifically yellow, represents the sun, the eye of heaven, and ultimately, divine guidance. In conclusion, it is telling people that BlanketChu is a lot like stars guiding your way home (symbolized by warmth felt due to blanket) after being thrown off track by storms.