Presentation on theme: "The “Cup-Anion” Your shopping companion Joanna Maciorowska John Nycz Aditi Shah Ankit Shah."— Presentation transcript:
The “Cup-Anion” Your shopping companion Joanna Maciorowska John Nycz Aditi Shah Ankit Shah
What we will cover… Our Goal Customer Requirements Meeting The Customers Needs Gap Map The “Cup-anion” – Product Introduction Market Research Plan & Test Results Concept Test & Results Financial Analysis Top Down Analysis The Future
What we seek to accomplish… To not let the act shopping get in the way of enjoying your favorite beverage…
Customer Requirements Durability –Plastic that will last Versatility –Multiple uses –Multiple colors –Multiple sizes Convenience –Easy to store Easy to use Customer Satisfaction Durability Versatility ConvenienceEasy to use
Meeting the Needs Our product designed to satisfy these 5 innate needs… Physiological Safety Love/Belonging Esteem Text Self-Actualization
Meeting the Needs: Physiological The most fundamental & most obvious Basics for survival –People need to drink to survive!! Physiological
Meeting the Needs: Safety Personal Security –This is their product to own –No dependency on retailer to provide for them Financial Security –Won’t break the bank Safety Safety net against accidents –No threat of spills –Will always be there for them when they need it
Meeting the Needs: Love & Belonging Friendship Family Acceptance –Being part of a “community” Love/Belonging
Meeting the Needs: Esteem The desire to be accepted and valued by others Seek fame or glory –We’re not saving the world here –But the eyes of interested, curious, jealous onlookers make them the talk of the store Esteem When they shop, they are trendsetters!
Meeting the Needs: Self-Actualization Realizing the customer’s full potential Become what one is capable to become Providing them the sense of… –Independence –Self-Empowerment –Pride –Being the best shopper without compromising who they are! Text Self-Actualization
What’s out there? Name: “The Shopping Cart Cup Holder” Metal –Very industrial feel Lacks Flexibility –One use for one cart –One color….Aluminum Lacks Convenience –Small but awkward Easily forgettable –Blends in with cart
What’s out there? Name: “Safe Strap Sip-n-Clip” “Industrial” feel –Found on retail site (under Janitorial) One color….Orange Lacks Convenience & Versatility –Small but awkward –Difficult to store Difficult to use –Watch out for fingers!
What’s out there? Name: NO NAME! “Utilitarian” feel –Found on retail site –Not for consumers Various slots –Unnecessary! Lacks Convenience –Difficult to carry –Difficult to store –One cup capacity –Cup must not have handles Difficult to use –Watch out for fingers!
Gap Map Opportunity Area: Versatile & Stylish Versatile Not Versatile StylishNot Stylish Shopping Cart Cup Holder Safe Strap Clip-n-Sip No Name – provided by retailer The “Cup-anion”
The Shopping Cart Cup Holder ClosedOpen Dual Cup Option
The Shopping Cart Cup Holder ClosedOpen Single Cup Option
Market Research Plan Survey Hand-Outs Random Sample –Primarily work Associates Sample size: 50 Survey consisted of 20 questions –Seeking interest (for dual & single options) –Demographics
Market Research Test Results Of the 50 26 Female / 24 Male
Market Research Test Results Target Market –Very Interested (8 of 50; or 16%) Married Female Primary Shoppers 25+ –Moderately Interested (9 of 50; or 18%) Female Primary Shoppers 25+ Both combined provide 34% –This is our focus! Other findings: –Children (Yes/No) Not a factor –Men 2 Very Interested, 3 Moderately Interested
Market Research Test Results Next Question…Single or Double? –Very Interested (of the 8) 5 prefer the double 2 prefer the single 1 prefers both –Moderately Interested (of the 9) 3 prefer the double 4 prefer the single 2 prefers both Result: More interest for the Dual “Cup-anion”
Market Research Test Results Next Question…Price? –Very Interested (of the 8) $8.80 for the single $12.42 for the double –Moderately Interested (of the 9) $12.92 for the single $17.14 for the double Result: $5 price difference between single & double “Cup-anion”
Market Research Test Results Final Pricing: –Single “Cup-anion” $10 per unit –Dual “Cup-anion” $15 per unit
Market Research Test Results Distribution Channels… –Retail: 38 –Internet: 30 –Mail Order Catalog: 20 –Direct Mail: 6 –Classifieds: 3 –Telemarketer: 2 The “winner”
Market Research Test Results Product Name Choices (from the survey) –“Fold-n-Store Cup Secure” –“Cup-n-Cart” –“Cart Cup Caddy” –“Sip & Shop” –“Cargo Cup Express” –“Beverage Buddy”
Market Research Test Results The right name… The “Cup-anion” It’s not just a piece of plastic, it’s your travelling companion!
Concept Test Concept testing was performed using conjoint analysis that helps determine the need level, perceived value of the product, Purchase intention and purchasing frequency. Data was gathered by running a Randomized survey within different demos
Forecast Assumptions Target Market: –Married/Single/or Divorced Female Primary Shoppers aged 25+ Cost: –Plastic costs $1-2 per pound –2 employees @ $7.25/hour –Each can assemble 50/day –Each week will result in 350 “Cup-anions” 175 ‘single’ units & 175 ‘dual’ units Total Cost per unit (incl Labor) = $5-7.50
Forecast Assumptions Assuming 50% of original purchasers will repeat purchase either due to… –Item malfunction/breaking –Gift idea –In market for other option (single/double) Anticipated 1 st Year Target sales of…
First Year Unit Analysis *Factoring in overhead Per Unit Price$10 (Single) $15 (Double) Units Sold175/month (Single) 175/month (Double) Total Revenue*$11K (Single) $16K (Double) Outlook: Positive
5-Year Forecast Year 1Year 2Year 3Year 4Year 5 Per Unit Price $10 (S) $15 (D) $12.50 (S) $17.50 (D) $15 (S) $20 (D) $15 (S) $20 (D) $15 (S) $20 (D) Units Sold (per year) 2,100 (S) 2,100 (D) 3,150 (S) 3,150 (D) 4,725 (S) 4,725 (D) 9,450 (S) 9,450 (D) 10,000 (S) 10,000 (D) Unit increase from prior year N/A1,050 (S) 1,050 (D) 1,575 (S) 1,575 (D) 4,725 (S) 4,725 (D) 550 (S) 550 (D) % Unit increase N/A150% 200%106% Total Revenue $11K (S) $16K (D) $24K (S) $32K (D) $47K (S) $59K (D) $95K (S) $118K (D) $100K (S) $125K (D) Revenue increase from Prior Year N/A $13K (S) $16K (D) $23K (S) $27K (D) $48K (S) $59K (D) $5K (S) $7K (D) % Revenue Increase N/A218% (S) 200% (D) 195% (S) 184% (D) 208% (S) 218% (D) 105% (S) 106% (D)
The Future… Other distribution channels –Retailers Continue focus on B2C…but lay groundwork for B2B –Bulk purchase by grocery stores for all carts Plan model redesign by Year 5 –Re-”excite” the brand Offer new colors –The “Cup-anion” of your choice!