Presentation on theme: "PROJECT OF BUSINESS, ENTREPRENEURSHIP AND MANAGEMENT ON DEVELOPING AN INNOVATIVE BUSINESS IDEA PRESENTED BY STUDENTS OF B.A. ECONOMICS(H) I YEAR SECTION-"— Presentation transcript:
PROJECT OF BUSINESS, ENTREPRENEURSHIP AND MANAGEMENT ON DEVELOPING AN INNOVATIVE BUSINESS IDEA PRESENTED BY STUDENTS OF B.A. ECONOMICS(H) I YEAR SECTION- 1 HANS RAJ COLLEGE FACULTY - MRS. MEGHNA MALHOTRA
CONSUMER ELECTRONICS Blue Ear Made by-Pranav, Nevin,Akshat, Payal, Anushree Richa and Nitin
INDUSTRY INTRODUCTION CONSUMER ELECTRONICS REFERS TO ANY DEVICE CONTAINING AN ELECTRONIC CIRCUIT BOARD THAT IS INTENDED FOR EVERYDAY USE BY INDIVIDUALS. THIS ENCOMPASSES A MASSIVE CATEGORY OF ELECTRONICS THAT INCLUDES TELEVISIONS, CAMERAS, DIGITAL CAMERAS, PDAS, CALCULATORS, VCRS, DVDS, CLOCKS, AUDIO DEVICES, HEADPHONES, CAMCORDERS, AND MANY OTHER HOME PRODUCTS. OUR SPECIALISATION IS AUDIO DEVICES, NAMELY BLUETOOTH- EQUIPPED HEARING AIDS.
WHAT IS A HEARING AID ? A HEARING AID IS A HIGHLY SOPHISTICATED COMMUNICATION DEVICE. THERE ARE MANY DIFFERENT TYPES OF HEARING AIDS, JUST AS THERE ARE MANY FORMS OF HEARING LOSS BUT THEY SHARE FIVE BASIC COMPONENTS. ALL OF THEM WORK ON AMPLIFYING SOUNDS TO ENHANCE PARTICULAR HEARING RANGE PROBLEMS.
WHAT IS THE CURRENT TECHNOLOGY? HEARING AID TECHNOLOGY IS BECOMING MORE SOPHISTICATED EVERY DAY. TODAY’S DIGITAL HEARING INSTRUMENTS AMPLIFY SOFT SOUNDS TO MAKE THEM AUDIBLE JUST LIKE HEARING AIDS OF THE PAST BUT THEY ARE ABLE TO PROVIDE MANY ADVANTAGES OVER PAST HEARING AIDS. THESE IMPROVEMENTS INCLUDE FEATURES THAT PROTECT YOUR EARS TO ENSURE THAT SUDDEN LOUD SOUNDS LIKE A DOOR SLAMMING ARE NOT TOO LOUD, SOUND CLASSIFIERS THAT WILL AUTOMATICALLY ADJUST THE CHARACTERISTICS OF THE HEARING AID BASED ON THE SOUNDS AROUND YOU AND EVEN FEATURES THAT ALLOW YOU TO WIRELESSLY TALK ON YOUR MOBILE PHONE AND HAVE THE SOUND AMPLIFIED TO MEET YOUR LISTENING NEEDS. HEARING INSTRUMENTS ARE AMAZING LITTLE DEVICES THAT CAN CHANGE YOUR WORLD.
INDIAN MARKET STATISTICS HEARING LOSS IS THE THIRD LEADING CHRONIC DISABILITY FOLLOWING ARTHRITIS AND HYPERTENSION. 9 OUT OF EVERY 10 CHILDREN WHO ARE BORN DEAF ARE BORN TO PARENTS WHO CAN HEAR. PROFOUND HEARING DISABILITY IN INDIA IS ABOUT ONE MILLION 1.2 MILLION PEOPLE WITH SEVERE HEARING DISABILITY. 0.9 MILLION PEOPLE WITH MODERATE HEARING DISABILITY AND 7.1 MILLION PEOPLE WITH VERY MILD HEARING DISABILITY.
MARKET POTENTIAL HEARING AID LIFE EXPECTANCY IS OF 5 YEARS INNOVATION OF OUR PRODUCT WILL PROVIDE A ONE- TIME PRODUCT WHICH WILL ADJUST TO ANY DETERIORATION IN HEARING LOSS. A CONSUMER FRIENDLY PRODUCT WHICH CAN BE REGULATED THROUGH THE MOBILE IT IS CONNECTED.
TARGET MARKET TREND “ DIRECT CORRELATION BETWEEN AGE AND INCREASING NEED FOR HEAR IMPAIRMENTS”
MARKET RESEARCH DEMOGRAPHICS: ABOUT 10 PERCENT OF POPULATION SUFFERING FROM HEARING IMPAIRMENTS. ONLY 1 OUT 5 PEOPLE WHO COULD BENEFIT WEAR HEARING AID. 80 PERCENT OF HEARING LOSSES CAN BE CORRECTED.
MARKET RESEARCH CONT. ECONOMIC: 200 CRORE MARKET COVERED UNDER MEDICAL INSURANCE. HEARING AID MARKET PENETRATION HAS HISTORICALLY BEEN LOW
MARKET RESEARCH CONT. SOCIAL INCREASING AWARENESS AND EDUCATION AMONG URBAN INDIANS, AWARENESS IS SLOWLY PERCOLATING AND PEOPLE ARE GETTING THEMSELVES DIAGNOSED. CULTURAL NORMS ARE CHANGING TO ACCEPT DEVICES IN EAR.
OUR PRODUCT BLUE EAR’S TYMPSYNC USES BLUETOOTH TECHNOLOGY AS A SUPPLEMENT INPUT SOURCE TEMPORARILY OVERRIDING HEARING AIDS MICROPHONE ALLOWING THE HEAR AID TO TO “HEAR “ A SIGNAL FROM BLUETOOTH DEVICE, SUCH AS CELL PHONE AND MP3 PLAYER, WHICH THEN IS AMPLIFIED ACCORDINGLY TO HEARING AID WEARER’ CUSTOMIZED VOLUME ENHANCEMENT PROGRAM
VISION WE SEEK TO OFFER A SOLUTION WHICH CONNECTS THE HEARING IMPAIRED WITH THE MODERN TECHNOLOGY IN HANDS FREE, HEARING AND FRIENDLY ENVIRONMENT. OUR AIM IS TO MAXIMIZE CUSTOMER SATISFACTION LEAST POSSIBLE COST SO AS TO UPLIFT THE DISADVANTAGED CLASS. The vision of Blue Ear Company is crystal clear.It is to become the number one brand that gives that god did not, the power to hear. MISSION MISSION
VALUE VALUE We believe that our promise is our innovative product.We have concern for our customers, employees and community and will honor our relationships with those who let us be part of this world through operating fiscally responsible and providing the product at a reasonable price. Our value is to conduct our business with the highest standards, adherence to law and “doing what’s right”. We employ the highest ethical standards, demonstrating honesty any fairness in every action we take. “We Listen So That You Can Hear” TAGLINE
FINANCIAL PLAN EVEN THOUGH CONSUMERS CAN PAY THOUSANDS DOLLARS FOR A SINGLE HEARING AID, A CBC NEWS INVESTIGATION HAS FOUND THAT THE ACTUAL COST OF MAKING A HEARING AID AVERAGES AROUND $150. IT CAN ACTUALLY GO ALL THE WAY DOWN TO THE TENS OF DOLLARS BUT AVERAGE IS $ 150. Cost structure
THE MANUFACTURER SELLS THE HEARING AID FOR $400 TO $600 TO A RETAILER OR AUDIOLOGIST, WHO THEN SELLS THE DEVICE FOR ABOUT $2,000. THUS THE FINAL PRICE PAID BY CUSTOMER IS VERY HUGE. SO IF COMPANIES SELL 1000 HEARING AID, THE DIFFERENCE BETWEEN ACTUAL COST AND PRICE PAID BY CONSUMERS IS HUGE. FOR EXAMPLE LET US ASSUME A HEARING IS SOLD FOR $1000.( AVERAGE PRICE OF HEARING AID SOLD BY SIEMENS ). Cost of 1000 hearing aids – ($150 +$100 +$300)*1000 =$550,000 Price Paid by customers for 1000 hearing aids – $1000 *1000=$1,000,000
IT'S IMPORTANT TO UNDERSTAND WHY HEARING AIDS COST SO MUCH TODAY: AUDIOLOGISTS CONTROL THE VAST MAJORITY OF SALES IN THE INDIA HEARING AID MARKET. WHILE AUDIOLOGISTS PROVIDE VALUABLE SERVICES, THEY VIEW THE SALE OF HEARING AID DEVICES AS AN OPPORTUNITY TO GENERATE PROFITS BY CHARGING EXORBITANT MARKUPS OF 3 TO 5 TIMES OR EVEN MORE. THESE MARKUPS ARE THE ONLY REASON HEARING AIDS COST SO MUCH RETAILERS/AUDIOLOGISTS ACCOUNT FOR UP TO 70 PERCENT OF THE FINAL PRICE OF A HEARING AID, BECAUSE THEY FACTOR IN A BUNDLE OF ADDITIONAL EXPENSIVE SERVICES.
WHAT WE PLAN TO DO ? =IPAD COST STRUCTURE Audiologists mark up hearing aids an additional 3-5 times at sale. We will think different of retail –breaking away from traditions and also cut out the middlemen and sell our hearing aids through a online portal for people who have excess to internet We follow the ipad cost structure, keeping the production cost 55 percent of total cost and market, r & d and dispensing take up 45 percent of cost. assuming our production cost to be $175 ( for including bluetooth, spice generation chipset etc ), our total cost will of the product will be =$318 ( 200/.55). Hence if we mark our product 30 percent above cost, the price of our product will be $ 413 and if we mark up by 40%, the price will be $445 and so on.
The Ipad cost structure not only helps to fix the production cost but also helps us to keep our other cost in control i.e retail, marketing etc. This helps us to keep the price of our product low and at the same maintain efficiency. This cost structure was one of main reason for the success of Apple. We prioritize affordability and accessibility. Today many Indians who would benefit from hearing aids choose not to purchase. when asked why, the most commonly cited reason is high cost. among the 25% who do use hearing aids, the high cost of replacement is a constant frustration and therefore we will offer a discount ( various slabs depending upon number of times the consumer has purchased the product) to repeat purchasers which all boost our customer loyalty.
Cost of 1000 hearing aids – ($318 ) ( variable)*1000= $318,000 Revenue earned on 1000 hearing aids =( $463*1000)= $463,000 We expect to sell 2500- hearing aids in first year Hence our profit equals nearly 46 percent ( with huge revenue) which is a huge thing for new start up. With time as demand increases, the avg production cost is expected to come down further and revenue and profit will keep on increasing. To Simply state things, financial position will be as shown in the below table
Different Methodology Not trying to make money Most firms see themselves in business to make money. That’s “the bottom line”—the primary goal of management by contrast, our goal is to delight its customer ‘making money is the result of the firm’s actions, not the goal.’ This will in turn increase our sales.‘making money is the result of the firm’s actions, not the goal Don’t try to sell We wont teach our employees to sell but rather help customers solve their problem. We will never try to close on a sale but rather help customers find their pain points. Think different about retail Extra-wide front doors, floor-to-ceiling windows, open air skylights and glass stairs give people a sense of freedom and feel less like they are in a retail outlet -- and more like they are in a museum. provide a first-class retail experience that delights shoppers and visitors alike and makes them feel part of the community -- sales happen as a result of this focus on improving people's lives.
WHY WOULD CONSUMERS BUY IT? MEDICAL NEED INNOVATIVE BLUETOOTH TECHNOLOGY SPICE GENERATION CHIPSET SMALLER SIZE FASTER PROCESSION POWER RECHARGEABLE BATTERY
SCOPE OF CONSUMER CONT. GOOD WARRANTY PERIOD 30 DAY TRIAL PERIOD REASONABLY PRICED COMPETITORS PRODUCT BULKY,DIFFICULT TO USE WANT TO ENJOY CONNECTING TO ELECTRONIC DEVICES WITHOUT PROHIBITIVE ADD ONS.
OUR SOURCES OF FINANCE To start our plan, we would need a initial capital of about $450,000 to meet our expenses which we plan to raise in the form of venture capital.
THE INFLUENCERS FAMILY, FRIENDS, RELATIVES EAR, NOSE AND THROAT PHYSICIAN (ENT) AUDIOLOGIST FACTORS IMPACTING CHOICE OF DISPENSING PRACTICE
MARKETING STRATEGY USING THE UNDEVELOPED NETWORK OF AUDIOLOGIST TO PROMOTE OUR PRODUCT. TEEING UP 400 CLINICS AROUND THE COUNTRY IN TO INCREASE OUR PRESENCE. CONDUCTING WORKSHOPS WITH ENT SPECIALISTS AND AUDIOLOGISTS TO EDUCATE THEM ABOUT OUR PRODUCTS AND ITS USES.
Main Focus Is Penetration Rather Than Advertising. Conducting Free Screenings For Traffic Police, Senior Citizens And Factory Workers In India Additionally Under Our Unique Initiative Called 'Hear The World' Which Will Be A Nonprofit Foundation We Are Planning To Bring Topics Of Hearing To The Public Agenda And Start A Social Dialogue -: This Will Include Organizing Free Camps In Schools For Awareness And Providing Free Hearing Workshops In Government Bodies Like Railways, Fire Fighters, Construction Workers Etc.
COMPETITORS ANALYSIS WHO ARE THE COMPETITORS? DIRECT COMPETITORS: SIEMENS ELKON WIDEX INDIRECT COMPETITORS: INNOVATIVE POWERHOUSES WHO INCORPORATE HEARING AID FUSER FRIENDLY TECHNOLOGIES.
SWOT ANALYSIS OF COMPETITORS STRENGTHS: STRONG FINANCIAL RESOURCES AGED RELATIONSHIP WITH ENT COMMUNITY ESTABLISHED BRAND NAME FINANCIAL STRENGTH TO TACKLE RECESSION IN MARKET OPPORTUNITY: AN AGING POPULATION PREVALENT NOISE POLLUTION GREATER PREVALENCE IN URBAN AND SUBURBAN REGIONS LACK OF PRACTICALITY IN COMPETITORS PRODUCT
HOW TO KEEP OUT COMPETITORS? PATENTING THE MINIATURIZING OF BLUETOOTH COMPONENT. INVESTING IN RESEARCH AND DEVELOPMENT REGULAR IMPROVEMENTS IN PRODUCT ADAPT NEW TECHNOLOGY BEFORE COMPETITION HIRING PROFESSIONALS WITH VALUABLE SKILLS RESPOND TO CUSTOMER NEEDS FOCUSING ON MARKET SEGMENTATION