Terracog - Letter of Transmittal

LETTER OF TRANSMITTAL

6th November, 2011

To

Dr. Narendran,

Director,

Indian Medicine College,

Chennai,

Tamil Nadu.

Subject: Decision report on the approach to be adopted by Indian Medicine (Siddha) College (IMC) towards patenting and commercialising Dr. Ramkumar's formulation.

Dear Sir,

With reference to your request for a report on the prospects of filing for a patent of the herbo-mineral medicine and using it for commercial benefits, I am attaching an analysis of the current situation, the options available, the evaluation criteria used, the recommended decision and subsequent action plan.

I recommend IMC to file a patent and thereafter enter into an agreement with an entrepreneur and earn royalty on the sales of the formulation.

Yours sincerely,

Gudakesh

NEMI

EXECUTIVE SUMMARY

TerraCog,Inc. which is facing the threat of dwindling sales, has decided to incorporate satellite imagery into its existing GPS platform by launching Aerial. However, the decision has met with a roadblock on account of the pricing. On one hand, the Production and Design & Development departments have expressed their inability to bring down the price below $475. On the other hand, Sales department has refused to go into the market with a price tag over $425.

The evaluation of options is based on the impact of decision on the profitability, market share and the brand equity of TerraCog. It is recommended that TerraCog launches Aerial at a price of $425.

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Table of Contents

EXECUTIVE SUMMARY--------------------------------------------------------------------------- 3

SITUATION ANALYSIS---------------------------------------------------------------------------- 5

THE PROBLEM --------------------------------------------------------------------------------------- 6

OPTIONS------------------------------------------------------------------------------------------------ 6

CRITERIA FOR EVALUATION-------------------------------------------------------------------- 7

EVALUATION OF OPTIONS---------------------------------------------------------------------- 7-8

RECOMMENDATION-------------------------------------------------------------------------------- 9

ACTION PLAN----------------------------------------------------------------------------------------- 9

SITUATION ANALYSIS

TerraCog is a successful company specializing in Global Positioning System (GPS) and fishing sonar equipments. It is known for its skill at translating retailer and user feedback into products which outmatch and outperform its competitors. GPS products offered by TerraCog are lauded for their durability and value-added features.

In 2006, Posthaste, a competitor unvelied a GPS product called 'BirdsI' which incorporated satellite imagery into display. BirdsI had a visual appeal to the customers and has shown impressive sales figures in the past year. Consequently, customers and retailers have been demanding a similar product from TerraCog. Initially TerraCog didn't feel real threat from BirdsI assuming that it was a non-essential fad. However, the escalating sales of BirdsI made them rethink on their passive strategy. Finally in response to BirdsI, TerraCog decided to launch a product called Aerial by the holiday season of 2008.

In order to keep costs