2. The Problem

5. What You Will Learn Market Research Design Marketing Financials
Conclusion .

7. What have been your problems when using crutches?

8. Which terrains were difficult to maneuver on crutches?
Stairs
Slippery
Surfaces
Hills
Uneven
Surfaces

9. Would it be useful to have crutches that can stand alone?

10. “I’m on crutches now. I hate it! Stairs are the worst.”
Open-Ended Responses
“I wish crutches were more comfortable and easy to store places when I am sitting. I used to hate when they would fall over. I had a difficult time picking them back up.”
“I’m on crutches now. I hate it! Stairs are the worst.”

11. Professional Insight

12. Orthosport Physical Therapy
Alice Kahl
Physical Therapist
“I hear a lot of complaints about crutches. The main advice I give my patients is that they need to use crutches until they can walk well, even if they don’t want to.”

13. HEALTH & WELLNESS CENTER
Thomas J. Novak, DO

Associate Director

Physician
“If the size is correct and technique is fine there is typically minimal discomfort with underarm crutches, but this is not the case in practice.”

14. Lehigh Sports Medicine
“Rubbing in the armpits, hard on the wrists, slippery with wet surfaces are the most common complaints.” “ Stand alone crutches would be very beneficial with a campus like Lehigh or for someone who is on the crutches for a longer period of time”
Emily Dunn MS, LAT, ATC
Asst. Athletic Trainer

15. St. Luke’s Physical Therapy
“I teach my patients that the proper way to go down stairs is to hold both crutches in one hand and hold the railing with the other hand.”
Timothy W. Miller
MSPT, DPT, SCS, CSCS

16. Customer Needs
Mobility
Underarm Comfort
Ease of Use

17. Who does this problem affect?
2 million per year
Femoral Fractures
50,000
Tibial Fractures
490,000
Knee Replacements
600,000
ACL Tears
300,000
Ankle Fractures
560,000

18. Current Solutions Standard underarm cushioning Single rubber foot
Standard Aluminum Crutches
$20
Standard underarm cushioning
Single rubber foot

19. Current Solutions Underarm Comfort Mobility Ease of Use
Standard Aluminum Crutches
$20
Underarm Comfort
Mobility
Ease of Use

20. Current Solutions Underarm grip Shock-absorbing spring In-Motion Pro
$120
Underarm grip
Shock-absorbing spring

21. Current Solutions ✓ Underarm Comfort Mobility Ease of Use
In-Motion Pro
$120
Underarm Comfort ✓
Mobility
Ease of Use

22. Current Solutions Forearm grip Standard base
Lofstrand Forearm Crutches
$155
Forearm grip
Standard base

23. Current Solutions ✓ Underarm Comfort Mobility Ease of Use
Lofstrand Forearm Crutches
$155 ✓
Underarm Comfort
Mobility
Ease of Use

24. ✓ Underarm Comfort Mobility Ease of Use Medline Millennial
Thomas Fetterman
Underarm Comfort ✓
Mobility
Ease of Use

25. Current Crutch Market Millenial ($120) Mobilegs ($130)
Trekker Gait ($45)
Sherman Oaks ($100)
Charron ($40)
LemonAid ($80)
Medline ($15)
Invacare ($55)
Graham- Field ($25)

26. Current Crutch Market Market Gap . Millenial ($120) Mobilegs ($130)
Trekker Gait ($45)
Sherman Oaks ($100)
Charron ($40)
LemonAid ($80)
Medline ($15)
Invacare ($55)
Graham- Field ($25) .

27. Market Research
Design
Marketing
Financials
Conclusion .

28. Mission Statement
Our mission is to provide the long-term crutch user with a crutch that can stand alone, provide increased mobility and ease of use, and offer a comfortable solution to the inconvenience of injury.

29. Inspirational Design
Forearm grip

30. Inspirational Design
Spring Component

31. Inspirational Design
Free-standing capability

32. Customer Needs X Spring Tripod Nonslip Base Forearm Grip
Underarm Comfort X
Easy to Use and Store
Mobility

33. Reverse Engineering Post-packaging Crutch
Removing the spring component

34. All of the components together
Reverse Engineering
All of the components together
Observing logistics

35. Final Design .

36. Final Design

37. ✓ Underarm Comfort Mobility Ease of Use Medline Millennial
Thomas Fetterman
Comfort Crutch
Underarm Comfort ✓
Mobility
Ease of Use

38. Bill of Materials Total =$8.65 Component Material Company Price .
Spring
Steel
Fox Valley Spring Co.
$0.23
Spring stopper
Plastic
Ningbo Plastic Co.
$0.10
Tripod Foot
Rubber
Chang Long Rubber Products
$0.30
Primary Shaft
Aluminum
Ryerson
$1.97
Arm Cuff
$0.50
Padding
Foam
Shenzhen Rubber Products
Screws
Metal
Grand Industries Co.
Washers
$0.04
Handles
Thinktop Rubber Products
Connector
Velcro
BuyHookandLoop Co.
$0.40
Total =$8.65 .

39. Manufacturing $18.13 per crutch Pottstown, PA Tubing Willow Grove, PA
Machined Parts
$18.13 per crutch

40. Bubble tubing- $.48 per pair
Packaging
Boxes- $1.89 per pair
32 pairs per box
$2.37
per pair
Bubble tubing- $.48 per pair
120 pairs per roll

41. Total Cost per Unit $42 Materials: $8.76 $27.50 Assembly $3.30
Manufacture
$27.50
Assembly
$3.30
Packaging
$2.37
$42 .

42. Market Research
Design
Marketing
Financials
Conclusion

43. Pricing Strategy $130 Millenial ($120) Mobilegs ($130)
Trekker Gait ($45)
Sherman Oaks ($100)
Charron ($40)
LemonAid ($80)
Medline ($15)
Invacare ($55)
Graham- Field ($25)

44. Pricing Strategy Profit per Unit $43 Selling Price to DME’s
Cost of Goods Sold
$42
Selling Price to DME’s
$85
Retail Price
$130
Profit per Unit
$43 .

45. Distribution Channels
Comfort Crutch

46. Distribution Channels
DME’s
Comfort Crutch
Website

47. Distribution Channels
Hospitals
DME’s
Physical Therapists
Comfort Crutch
Website

48. Distribution Channels
Hospitals
DME’s
Physical Therapists
Comfort Crutch
Target Customer
Website

49. Magazine Advertisements
1/3 Page black&white
Total Ratebase: 21 million
$370,000 per Year

50. Trade Shows 25,000+ Attendees Cost: $10,000
74% of attendees planning to purchase physical therapy products in the coming year
83% plan to use information they learn to make their purchasing decisions
June 26th – June 29th, 2013
Salt Lake City, UT
25,000+ Attendees
Cost:
$10,000

51. 70+ Leading Contractors & Suppliers
Trade Shows
Face-to-face with leading contract service and technology suppliers
Premier event for orthopaedic innovators and leaders from device manufacturers
June 5th – June 6th, 2013
Winona Lake, IN
70+ Leading Contractors & Suppliers
Cost:
$10,000

52. Website Design

53. $25,000

55. $25,000 $25,000 Comfort Crutch www.comfortcrutch.com/
Forearm grip, shock absorbing spring, free-standing tripod base
$25,000

56. Market Research
Design
Marketing
Financials
Conclusion .
Kris Datta

57. Fixed Costs Developmental Costs Design: $20,000 Prototyping: $5,000
Market Research: $10,000
Market Testing: $20,000
Total: $55,000

58. Fixed Costs Ramp-Up Costs Website Design: $10,000 Trade Shows: $10,000
Final Testing: $20,000
Total: $50,000

59. Fixed Costs Marketing and Support Magazine Ads: $370,000
Sales Management: $135,000
Customer Support: $50,000
Website Management: $40,000
Google Adwords: $25,000
Facebook Advertising: $25,000
Trade Shows: $20,000
Total: $665,000

60. Fixed Costs + Developmental Costs - $55,000 + Ramp-Up Costs - $50,000
+ Marketing and Support - $655,000
Total Fixed Costs - $760,000

61. Production Costs
Quarter 3 155,000 units $6,500,000 Quarter 6 170,000 units $7,200,000 Quarter 9 185,000 units $7,800,000

62. Sales Estimations

63. Cumulative Cash Flow
Noah Robb

64. Cumulative Cash Flow Breakeven: Quarter 6 155,000 units produced
Noah Robb

65. Cumulative Cash Flow Breakeven: Quarter 6 155,000 units produced
Noah Robb

66. Investment
Development + Ramp-Up + Marketing and Support + Production $7,000,000

67. Important Numbers
Net Present Value: $50,300,000 Return on Investment: 727% Internal Rate of Return: 151%

68. Sensitivity Analysis

69. Market Research
Design
Marketing
Financials
Conclusion

70. Summary Longer term crutch users Customer Needs Target Customer
Underarm Comfort
Mobility
Ease of Use
Customer Needs
Solution

71. Benefits Willing to use crutches for full recovery time
Back on the field faster

72. Return on Investment: 727%
Summary
Net Present Value: $50,300,000
Return on Investment: 727%
Investment: $7,000,000
Noah Robb

73. Thank You! Professor Pat J. Costa
Alice Kahl, Orthosport Physical Therapy
Thomas J. Novak, Lehigh Health and Wellness Center
Emily Dunn, Lehigh Sports Medicine
Timothy W. Miller, St. Luke’s Physical Therapy
Janet Hughes, Lehigh Business Librarian

74. Hyperlinks Market Research Transition Competitive Landscape Design
Final Design
Total Cost Per Unit
Bill of Materials
Marketing Transition
Pricing Strategy
Financials Transition
Cash Flow Analysis