the “cup-anion” your shopping companion

The “Cup-Anion” Your shopping companion

Joanna Maciorowska

John Nycz

Aditi Shah

Ankit Shah

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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

Convenience Easy 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

Closed Open

Dual Cup Option

The Shopping Cart Cup Holder

Closed Open

Single Cup Option

The Shopping Cart Cup Holder

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

Concept Test ResultsPurchase Intension of Product Surveyors (n=50)

Not interested 7Slightly interested 12Moderately interested 20Very interested 8Extremely interested

Did not answer 3

Price $$ # of surveyors2 25 107 5

10 315 125 2

Purchase Intension

0

5

10

15

20

25

Notinterested

Slightlyinterested

Moderatelyinterested

Veryinterested

Extremelyinterested

Num

ber

of S

urve

yors

Surveyors (n=50)

Percieved Value

0

2

4

6

8

10

12

2 5 7 10 15 25

Price$$

# of

sur

veyo

rs

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 1st Year Target sales of…

First Year Unit Analysis

*Factoring in overhead

Per Unit Price $10 (Single)

$15 (Double)

Units Sold 175/month (Single)

175/month (Double)

Total Revenue* $11K (Single)

$16K (Double)

Outlook: Positive

5-Year Forecast

Year 1 Year 2 Year 3 Year 4 Year 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/A 1,050 (S)

1,050 (D)

1,575 (S)

1,575 (D)

4,725 (S)

4,725 (D)

550 (S)

550 (D)

% Unit increase

N/A 150% 150% 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/A 218% (S)

200% (D)

195% (S)

184% (D)

208% (S)

218% (D)

105% (S)

106% (D)

Let Us Illustrate…5-Year Revenue Forecast ($)

Let Us Illustrate…

Yearly Revenue Increase (%)

Tops Down Analysis

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!

Let’s begin shopping! Thank you