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Spread'em Inc. - Confidential1 EasySpread™ Butter Applicator Final Presentation PDT #4 December 2 nd, 2003 Final Presentation PDT #4 December 2 nd, 2003
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Spread'em Inc. - Confidential2 Presentation Overview 1.Introduction of Spread’em CE Team 2.Product Description 3.Pre-Production Cycle 4.Production Cycle 5.Marketing 6.Final Design 7.Material Selection 8.Manufacturing 9.Lessons Learned 10.Questions?
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Spread'em Inc. - Confidential3 Spead’em CE Team
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Spread'em Inc. - Confidential4 Organizational Chart
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Spread'em Inc. - Confidential5 Product Description
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Spread'em Inc. - Confidential6 Production Description EasySpread™ simplifies the storage and application of butter & other spreadable foods (peanut butter, cream cheese) It is also convenient, affordable, easy & fun device to apply butter without the need of a knife
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Spread'em Inc. - Confidential7 Pre-Production Cycle
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Spread'em Inc. - Confidential8 Identifying Customer Needs Based on interviews conducted, the most important customer needs are: Easy to useEasy to use PortablePortable DurableDurable SafeSafe Easy to CleanEasy to Clean
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Spread'em Inc. - Confidential9 Preliminary Concepts
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Spread'em Inc. - Confidential10 Issues Encountered Problem: Butter left outside all day – melt all over Must be microwavable Too complex Corrective Action: Design dispenser to be leak proof No metal parts Keep # of parts down
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Spread'em Inc. - Confidential11 Production Cycle Marketing Final Design Manufacturing Marketing Final Design Manufacturing
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Spread'em Inc. - Confidential12 MarketingMarketing
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Spread'em Inc. - Confidential13 Marketing Segmentation BasisImportanceNotes DemographicHigh Students / Young professionals 20 to 35 years old PsychographicHigh Time – constraint lifestyle BehavioralMedium Multiple benefits in a single product GeographicLow Montreal as a test market
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Spread'em Inc. - Confidential14 Target Markets Primary market: Students and young professionalsStudents and young professionals Secondary market: Parents with young childrenParents with young children Campers and outdoor loversCampers and outdoor lovers
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Spread'em Inc. - Confidential15 Market Size Step Down Population of Montreal: 3.55 million Population of 20-35 year-olds (21%): 745 500 Number of Households (2.5 people/house): 298 200 Potential Canadian market: 898 800
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Spread'em Inc. - Confidential16 Marketing Mix - Product Current Competitors: Competitors’ main weaknesses: Not spreadableNot spreadable Not portableNot portable Not convenientNot convenient EasySpread™ addresses all of the above issues!
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Spread'em Inc. - Confidential17 Pricing Strategy Penetration Pricing: - Low pricing initially to gain market shares Target Price Under 10$ Current Competitors: Butter Mate Pro US$10.49 Butter Spreader US$98.89 Ribbon Dispenser US$14.95-59.95
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Spread'em Inc. - Confidential18 Placement - Distribution Channels 1.Traditional Distribution Target Retailers: Wal-Mart, Zellers, Canadian Tire, Loblaws ManufacturerWholesaler RetailerConsumer
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Spread'em Inc. - Confidential19 2.Direct Distribution ManufacturerConsumer Through Internet and telemarketing 3.Joint Venture With Dairy Producer Manufacturer Dairy Producer WholesalerRetailerConsumer
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Spread'em Inc. - Confidential20 PromotionPromotion Ensure EasySpread™ is placed next to dairy section Main Focus: Create awareness of product Infomercials
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Spread'em Inc. - Confidential21 Advertise in magazines targeted to young adults such as Maxim, FHM Unlike your wife, it never stops spreading. EasySpread™ by Spread’em Inc. Advertise in magazines such as Camping Life to target secondary market
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Spread'em Inc. - Confidential22 Final Design
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Spread'em Inc. - Confidential23 Customer Needs Easy to use Portable Durable Safe Easy to Clean
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Spread'em Inc. - Confidential24 EasySpread™EasySpread™ Assembled Unassembled View Cap Grid Clear Round Body Guide Plate Screw Turning Dial Base
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Spread'em Inc. - Confidential25 Material Selection
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Spread'em Inc. - Confidential26 Plastic Characteristics Food Safe Approved by Canada’s Health Packaging and Food Branch as well as the United States’ Food and Drug Administration for food packaging applicationsApproved by Canada’s Health Packaging and Food Branch as well as the United States’ Food and Drug Administration for food packaging applications Low Cost Mouldable Durable Lightweight Microwavable Recyclable Transparent
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Spread'em Inc. - Confidential27 High Density Polyurethane HDPE meets all requirements Supplier Nova ChemicalsNova Chemicals Type of HDPE SCLAIR® 2712SCLAIR® 2712 Cost US $0.52 / lb.US $0.52 / lb. (HDPE) Plastic
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Spread'em Inc. - Confidential28 ManufacturingManufacturing
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Spread'em Inc. - Confidential29 ManufacturingManufacturing Adopted DFM to minimize manufacturing cost while ensuring high product quality Projected sales of 30 000 units first year Only 120 units to be produced per dayOnly 120 units to be produced per day To avoid high costs of buying tooling and machinery Outsource the manufacturing of parts to injection molding company HuskyOutsource the manufacturing of parts to injection molding company Husky Assemble the parts at our plantAssemble the parts at our plant
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Spread'em Inc. - Confidential30 Cost Analysis Unit Variable Cost – C$ 1.16 Selling Price – C$ 6.99 Break-Even Unit = $110 000 / ($6.99 – $1.16) = 18 867 units Projected sales of 30 000 units first year
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Spread'em Inc. - Confidential31 Lessons Learned
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Spread'em Inc. - Confidential32 Lessons Learned Concurrent Engineering is necessary to develop a successful product Communication is very important between team members Project Management is critical to deliver product on time Know your customer needs
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Spread'em Inc. - Confidential33 Questions?Questions?
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