the “cup-anion” your shopping companion
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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 - PowerPoint PPT PresentationTRANSCRIPT
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