The average person in the United Kingdom is exposed to video camera surveillance an estimated 250 times per day, and the use of hidden video cameras is rapidly increasing in all other countries. The mass availability of inexpensive miniature video cameras has led to their use in a multitude of public and private uses, usually without the knowledge of the filmed subjects. In addition, ordinary people can no longer be guaranteed that recorded video will not be misused, as a number of well-publicised court cases have demonstrated. Furthermore, the Internet is full of sexually explicit material that has been secretly filmed by spy video cameras.
As a result, people can no longer be certain that their actions are not being recorded for the purposes of others. This has created a market for a product that can restore a degree of privacy.
DiscovaCam is a new project being capitalised to develop, promote, sell and build the DiscovaCam camera detection equipment. The company's product is one of the first devices capable of rapidly detecting the presence of hidden video cameras. This device is simple and quick to use, and is suitable for operation by the average person. Its small size, similar to a large wallet or calculator, allows discrete use in lifts, corridors, rooms and areas that may have been wired for hidden surveillance by other people. The inexpensive retail price is targeted to appeal to the mass market.
There is estimated that there will be a market potential of 50,000,000 units over five years. Sales through a well recognised agent to the security industry is expected to exceed 150,000 units annually. In addition, it is planned to promote the product through an Internet-based direct sales group specialising in new-technology products. This group of 38,000 entrepreneurs provides a world-wide sales network capable of selling in excess of ten million units annually. Sales are anticipated to grow from an initial 25,000 units per month to 100,000 units per month within six months and to 1,000,000 units per month within two years.
It is estimated that the business will rapidly grow, as Internet-based news releases and marketing spreads the news into the traditional print and broadcast media and into the mass market. The unique marketing proposition of the DiscovaCam product, and the increasing concern by people throughout the world, will create a rapidly increasing potential market, and hence a strong market-pull for the product through the e-commerce channel.
In addition, there appears to be no current competitor in this market niche. However, considering the lucrative market niche, it is expected that cloned units will appear after six months. By the time competition arrives, DiscovaCam's brand will be sufficiently established to maintain market leadership, while simultaneously defending intellectual property.
This strategy is based upon maximising the group's capability, through flexible penetration of the world's markets. The DiscovaCam corporate group is being structured into a functional form to maximise this flexibility, including the outsourcing of functions as appropriate. The group is a vertically integrated organisation, consisting of:
The DiscovaCam group will be capitalised during 2000, to enable the completion of pre-production prototypes, the establishment of the e-commerce channel and to begin limited production. It is planned to ship the first products to the sales channel within three months of capitalisation and to achieve positive cash-flow within four months.
A full realisation of the strategic plan will result in NZ$42.5 million net profit over the first five years, a 2125% return on investment.
© Development Systems Ltd., 2000, 2001