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Portable Housing - Tech Commercialization
1. Author: Akanksha Pathak,
Sushant Patil, Andy Khalid, Adam
Lawrence, Micayla Ray
MaysBusinessSchool - Texas
A&M University
Cocoon Rover â A Portable Pod for the
Homeless
Technology Commercialization
MGMT 632
2. 1 | Page
Table of Contents
Technology Description 2
Potential Benefits & Drawbacks 2
Advantages 2
Disadvantages 2
Potential Commercial Markets 3
Market Interest 5
Intellectual Property Status 6
Competing Technologies and Competitors 8
Competing Technologies 8
Competitors and Substitutes 9
Potential Barriers to Market Entry 11
Recommendations 12
Full Interview Summaries 12
Works Cited 16
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Technology Description
Anyone who has been in an urban area has seen the staggering number of homeless individuals
who reside in these areas. Often, these individuals do not have adequate shelter or a way to store
and transport their personal belongings. The Cocoon Rover is a transportable storage unit, capable
of being deployed into sleeping quarters, that was designed with the intention of aiding homeless
individuals. The Cocoon Rover features a lockable storage compartment to store personal
possessions. The homeless population is particularly vulnerable to losing possessions or having
them stolen, as they rarely have a safe place to store their items. This lockable storage compartment
would give the homeless population a way to ensure the safety of their belongings and decrease
the possibility their belongings are stolen. The Cocoon Rover is designed with an expanding
internal compartment that allows an individual to use the device for sleeping. There is also a hard
shell on the outside to provide weather-proof protection from any inclement conditions. In order
to move the Cocoon Rover from place to place as needed, there is a handle that allows it to be
pushed like a shopping cart, as well as an alternative option that allows it to be towed behind a
bicycle. Although the Cocoon Rover was created with the intention of protecting the homeless, it
could also be used for various outdoor activities, such as camping.
Potential Benefits & Drawbacks
Like any technology, the Cocoon Rover has both pros and cons.
Advantages
â Ability to protect individuals from inclement weather
â Security and theft protection
â Expandable sleeping area
â Ease of movement in urban environments
â A socially acceptable appearance that prevents cities from looking trashy
â Limits the number of shopping carts stolen from local businesses by homeless people for
shelter purposes
â Can also be used for outdoor activities (hiking, camping, etc.)
Disadvantages
â Lack of intellectual property rights
â No patent
â Expensive to build (upwards of $3,500)
â Inability to secure funds from manufacturers and other organizations
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Potential Commercial Markets
When we started our research, we surmised that the communities likely to have a homeless
population requiring shelter were the major commercial markets for the Cocoon Rover, so we
started by interviewing leaders of homeless shelters in these communities. Upon further analysis,
however, we later realized that another commercial market opportunity lies with shed
manufacturers. This is due to the fact that shed manufacturers have relatively versatile resources
in the form of materials, skilled labor, and managerial knowhow that could more easily make the
Cocoon Rover a viable reality. However, only if these manufacturers feel confident about the
design and intellectual property would they be likely to license the intellectual property to start
producing Cocoons. After conducting several interviews, however, it became readily apparent that
shed manufacturers were not very likely to produce the Cocoon because there is no patent on the
device. Ultimately, these were the potential commercial markets we identified for the Cocoon:
1. Shed Manufacturer in South Africa â Gratefully, we had the opportunity to speak with
Mr. Louw Bekker, the CEO of the Canvas and Tent Group in Johannesburg Area, South
Africa. His main motive is to find new and unique products that not only keep them in
touch with nature but also allow for a comfortable stay. Though his target was not serving
the homeless community, because comfort is one major aspect in his mind, he took some
interest in it after we emphasized the large available market for this sector. He thought
that this was something he could look into for using the design, but due to the cost
involved, he thought it was a good idea to serve the market available in Africa rather than
in the US. He believed that before taking on the Cocoon Rover project, he would have to
find a potential customer base in Africa because he was not quite confident that there
would be current market demand for this type of device in that part of the world currently.
2. Tent Manufacturer in Kenya â We then connected with Jonas Grey, the global manager
of the manufacturing tent company Zhuhai Lijing Tents from China. He said that
manufacturing the Cocoon and shipping to the U.S. would not be a problem for him, as
he does this with many other products that he currently manufactures. Although he is fond
of his current business manufacturing tents, he would be willing to contact Raul Morichi,
the inventor of the Cocoon Rover, and discuss a potential deal - even though the Cocoon
does not currently have a patent. He indicated that some of his current customers deal
with homelessness in their areas and that the Cocoon would be popular amongst them for
solving this issue.
3. Gooseneck Trailer Manufacturing - CEO and founder David Carralla expressed that
trailer manufacturers such as himself would be the most likely candidate to produce
something made out of aluminum, galvanized steel, plywood, and special low-density
polystyrene. However, he also indicated that he would be very unlikely to produce the
Cocoon without an existing patent to protect his manufacturing operations if he paid to
license to the design from the inventor. With that said, we discovered that the Cocoon
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does not have a finalized patent or even a patent that is currently pending; the inventor of
the Cocoon, Raul Morichi, told us this himself. According to Raul Morichiâs IndieGogo
page, where the Cocoon was originally posted, he expects the entire device to be
manufactured for not more than $900 (Isotta Como). David Carralla indicated to our team
that the $900 cost figure thrown out by the inventor was ridiculous, and that based on his
own estimates that the Cocoon would not cost less than $3500 to produce. David also
indicated to us that even if there was a patent for the Cocoon, he would only be willing to
pay a maximum 5% ongoing royalty fee for the remaining useful life of the hypothetical
patent, and a one-time $50,000 licensing fee to use the IP contained in the patent. In
producing other similar devices, David mentioned that he would normally be willing to
pay as much as $300,000 in licensing fees. However, in case of Cocoon Rover, he believes
that there is little to no marketable potential. As such, he wonât bid too high for this
product.
Homelessness is actually highest in cities such as San Francisco and Los Angeles, where the
weather is not a central issue for the homeless population. The Cocoon Rover might increase the
severity of homelessness in these cities by occupying more space than before and might reduce
the incentive for the homeless to break out of the cycle of homelessness.
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Market Interest
It was important for us to know the market interest of our product that would help us decide and
also pitch into the manufacturers to show the customer base out in the market. We, therefore, had
a conversation with multiple homeless shelter advocates. Below were some of the market interest
according to our interviews and research:
1. Seva, a community for homeless people in India â There are some NGO communities
that want to provide a solution for the homeless, especially those in the lower class section
of the society. Seva made it clear that construction laborers make up the majority of this
demographic. These NGOs search for prospective ways to help people find a temporary
home, and Seva indicated that the Cocoon Rover could provide a more robust solution for
these NGOs. We communicated with the chief marketing executive of Seva, Dr. Ganesh
Prasad, to understand his opinion about the product. He liked the idea but indicated that
cost was one of the Cocoonâs main issues. He said if a manufacturer could sell to him at
a low price range (which was around 5000 to 10000 rupees = approximately 70 to 140
dollars) he could buy it and help people with it.
2. Recreation Centers â We interviewed the manager of Texas A&M Universityâs
Recreation Center, Ms. Sarah A. Schneider, to see if this product could be useful to
recreation centers. We found that if manufacturers can sell it to recreation centers at a low
price, the recreation centers would be sure to buy them. Though this was not the primary
market for our research, she said that there is definitely a market for it in the sports
community considering cost is the major factor. She then gave me the contact information
of âThe Tent Co.â company at Houston.
3. The Tent Co. Manufacturer in Houston â We were able to connect with Mr. Walberto
Vasquez, the owner of the company. We outlined the design and the various advantages
of our portable shelter product. He liked our product, but he said that there are similar
and cheaper products available in the market. According to Mr. Vasquez, Cocoon Rover
might have a market in the recreation industry, but it would not be pragmatic to expect
that the manufacturers would license the IP from a hypothetical patent unless the cost to
do so was extremely low. The fact that the Cocoon Rover does not have a patent further
added to Walbertoâs case against the device. He also suggested that these kinds of ideas
generally work when the designer is the same as the manufacturer for his company - that
was the basis of how he actually started his own firm.
4. Twin City Mission Bridge Homeless Shelter â Jennifer Young, the director of Twin
City Mission Bridge Homeless Shelter in Bryan, Texas, shed much light on the viability
of the Cocoon Rover. She was hopeful that the Cocoon Rover may be able to improve
some homeless individualsâ lives but expressed skepticism that Twin City would have the
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funding to purchase Cocoons for every homeless person in the Bryan/College Station
area. Although we initially believed that it would be simple for homeless shelters to
distribute the Cocoons, we quickly realized that this was not the case. Jennifer indicated
to us that both Twin City and most other homeless shelters throughout America do not
have the labor force to physically distribute the Cocoons, even if they purchased them.
Instead, she indicated that a U.S. Department of Housing and Urban Development
(HUD)-sponsored âcontinuum of careâ set up between homeless shelters, food pantries,
and volunteers in homeless meccas through the U.S. would be the most viable candidate
for distributing the Cocoons. Due to the fact that Jennifer runs a homeless shelter, she
believes that homeless shelters are still the best form of shelter for homeless individuals.
The only scenario she could envision that would make the Cocoon superior to a homeless
shelter entailed: when homeless individuals choose not to go to a homeless shelter - which
happens frequently according to Jennifer, when homeless individuals are not aware of
homeless shelters in their area, and when the homeless individuals are in a place such as
Austin, Texas, where many homeless shelters are overflowing. Perhaps the most
devastating detail Jennifer provided us with for the purposes of commercializing the
Cocoon was that Twin City does not have an outreach team - as is the case for many
homeless shelters, especially in rural areas where homelessness is most prevalent.
Intellectual Property Status
We reached out to inventor Raul Morichi and inquired about the patent status of Cocoon. He stated
that he has not received any patent or filed any IP for this technology. He said he doesnât have the
necessary funds to file for IP. He mentioned that he received some support from the City of Milan
and The Rotary Club but needs more interest and support to explore the patent option. A challenge
with this regard is the ineffectiveness of the design patents as with a small modification it could
be used by someone else, or a new patent could be filed for the same. Therefore, now, patenting
this technology does not seem to be feasible.
Development Status of Technology
The cocoon rover is a push vehicle for homeless people. It looks like an expandable cart as shown
in the figure below. There is a retractable part that comes out of the cart and makes space sleeping
place for the person using it.
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Cocoon rover has insulation lamination inside of the cart to control to keep the cart warm enough
for its user. Furthermore, Thanks to the technological protection of the shell, the occupant will be
safe in case of illness and secure in case of offense due to social intolerance. An advanced
prototype of cocoon rover will contain a âblack boxâ with GPS, call buttons and status sensors,
sensitive to risk conditions, in continuous 3G connection with a central station which can activate
the local police for immediate help. Below is a picture featuring the first prototype for Cocoon
Rover:
Inventor, Raul Morichi, has developed a fully functional prototype of Cocoon Rover. He has made
a video on the functionality of the Cocoon Rover and shared it on the Cocoonâs Indiegogo page.
So, we reached out to inventor Raul Morichi and inquired about the patent status of Cocoon Rover.
He mentioned that he has not received any patent or filed any IP for this. He said he doesnât have
the necessary funds to register for IP. He also mentioned that although he received some support
from the City of Milan and The Rotary Club, more interest and help is required to explore the
patent option.
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Competing Technologies and Competitors
There have been various designs in the market that have been utilized by various industries and
manufacturers that serve the purpose to provide cheap and portable housing for homeless people.
Some of these interesting technologies, along with our prime competitors, are listed below:
Competing Technologies
There are several technologies available in the market. Although all of the competing
technologies provide some kind of shelter or containment from the elements, the Cocoon does so
with superior efficiency. Some of these competing technologies are listed below, along with the
Cocoon Rover itself:
Competing
Technologies
Pros Cons How are we
different?
Cocoon Rover The Cocoon Rover is
lightweight because of its
reliance on aluminum for its
exterior. The device is easy
to use and has a parking
brake that allows the device
to be used on both level and
inclined surfaces.
The Cocoon Rover
does not work well for
tall individuals
because they will not
be able to extend their
legs fully in the
compartment. The
aluminum exterior
may not insulate heat
as well as other
materials that could be
used for the exterior.
The Cocoon Rover
already has
endorsements from
the Municipality of
Milan, SocietĂ
Umanitaria - which
is a humanitarian
organization in
Milan, Italy, and
the Chamber of
Commerce of
Milan. Therefore, if
the Cocoon was to
be commercialized
initially in the U.S.,
it would at least be
equally
commercialized in
Milan. However,
the lack of potential
commercial
markets and market
interest indicates it
would not be
commercialized in
either market.
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Mobile
Homeless
Shelter by Paul
Elkin
Targeted for a transient
audience who wants portable
and watertight housing. It is
a compact version of RV and
contains fold-away furniture,
a mattress, a toilet, and even
a kitchen.
It is very large in size
and not foldable, so it
can be carried for only
a very short distance.
If adopted by
industries, it would
involve a high cost.
It can be
manufactured at a
very low cost with
minimal raw
material required
and can be carried
from one place to
another easily on a
bicycle.
WheelLY
Recycled
Homeless
Shelter by Zo-
Loft
Architecture &
Design
It is a safe storage space for
oneâs belongings during the
day, and expands into a tent
at night. The rolling design
enables it to hold up to 250
pounds of personal items,
and the push-handle also
functions as a brake.
It is very difficult to
carry from one place
to another and the
wheel is very heavy.
Its design is not
attractive and targeted
for only temporary
accommodation
Our design is very
easy to be attached
to basic vehicles
like bicycle and can
be carried from one
place to another. It
is light in weight
and comfortable to
sleep
Cardborigami:
Folding
Portable
Homeless
Shelter
It is created from recycled
cardboard and it starts out as
a flat package and expands
into a sort of paper tent. The
material was chosen because
it is inexpensive,
lightweight, sustainable and
naturally insulated.
It is not wind or water
resistant and is not
ideal for sleeping. It is
a shelter but has no
base, so it does not act
a home, but rather
only as a temporary
shelter
Our product not
only act as a home
but also as a
temporary shelter
that could be easily
opened and closed.
It is also both wind
and water resistant
Sleepbox by
Arch Group
It is a compact space
designed to take naps but is
being envisioned as a unit
that could be rented for a
period of time between
fifteen minutes and a few
hours, with bedding that
would be automatically
changed between users;
It is not portable and is
very costly. Also it
would occupy larger
space. It is not
designed for one
person but rather just a
place to sleep. So it
does not act as a
home.
Our product is
portable and
comparatively
inexpensive. It is
designed in a way
that it can act as a
home for an
individual for a
long period of time
Competitors and Substitutes
There are various options available to building houses for homeless people. Most of the time,
homeless people use trashed materials to build a bare minimum shelter for themselves. So our
competitors are both the commercially established and newly designed products that could be
used to create houses. We have listed the Cocoon Roverâs main competitors as shown in the
table:
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Competitors
and
Substitutes
What do they do? Price How are we different?
Cocoon Rover The Cocoon Rover is a
portable pod designed
to shelter the homeless
from the elements with
a design consisting of
an aluminum frame, an
inner surface of coated
galvanized steel, and
pneumatic wheels that
can easily overcome
curbs and other
obstacles.
The inventor of the
Cocoon, Raul
Morichi, indicates
on the Cocoonâs
IndieGogo page
that the device will
not cost more than
$900 to produce if
at least more than
30-35 are made.
However, the
owner of
Gooseneck
Manufacturing
indicated a price
point of roughly
$3500 based on the
large reliance on
galvanized steel,
EPDM jacket, and
low-density
polystyrene which
are all expensive
materials at their
current going rates.
Unfortunately, there is much
more ambiguity on price for
the Cocoon Rover, especially
because it does not have a
patent outlining the exact
cost of each and every
material needed to produce
the Cocoon. The Cocoon
Rover can only have one
person in it at a time, which
may not work for a group of
homeless individuals that
live together. On the other
hand, the Cocoon Rover
shelters homeless individuals
from the elements in a far
superior manner to our
competitors when one takes
into account the portability
of the Cocoon.
Sheltersuit
(Substitute)
It is a warm,
waterproof jacket with
a zipper on the bottom
that can attach a
second piece at night to
transform into a
sleeping bag. An
oversized hood helps
shade streetlights when
someone tries to sleep,
and a built-in scarf
adds warmth.
The price hasnât
yet been set as the
company doesnât
make profits, but
the cost, including
the cost of
donating a regular
Sheltersuit, could
be around $370 to
$425.
Our product provides enough
space not just for sleeping
but also for keeping peopleâs
belongings. Cocoon Rover is
more than just a sleeping
bag, it acts a house for
people who do not have them
that can be easily carried
from one place to another
China Portable
Housing
(Substitute)
They provide easy to
ship prefabricated
modular houses. They
can be easily set up and
The starting range
is 1100$ and the
price increases
depending on the
We provide temporary
accommodations that is
useful for people who
frequently have a need to
move from one place to
12. 11 | Page
act like permanent
houses
type and size of the
model
another as they do not own a
particular land
Pallet shelters
(Competitor)
They provide
rectangular structures
that are covered from
floor to ceiling with a
fiberglass material and
aluminum framing.
Costs between
$3,500 and $7,500
per house
depending on their
size and additions
We provide a portable
accommodation
DIY Shelter
(Competitor)
It is targeted for
Haitians and helps to
build a shelter known
as a Hexayurt that can
last three years and
possibly even
withstand a hurricane
Cost 100$ per unit Our product can also last
long and is also portable and
compact. It can be easily
attached to a bicycle or
folded and kept in a vehicle,
so easy to take it anywhere
unlike the DIY Shelter
Potential Barriers to Market Entry
â Litigation: A significant barrier towards market entry will be the various kinds of litigation
that Cocoon Rover will have to fight. As per most community guidelines, there are laws in
place that prevent camping, or temporary housing on streets and other prominent areas in
a city. The city of San Francisco has a law similar to this one. There are organizations like
the National Law Center for Homelessness and Poverty that make sure such laws are
scrapped. However, an array of rules can still be used against temporary homeless shelters.
Laws that challenge camping/sleeping in public, loitering, vagrancy, homeless
encampments can prove to be barriers to our product. As the Cocoon can lead to a
community of homeless people, such laws can be used to prevent the product from reaching
its full potential.
â Price: Price is a significant driver for Cocoon. Since the target customer base is
organizations that help homeless and poor people, price can prove to be a make or break
factor. As per current design, a manufacturing expert suggested that he could produce a
metal/steel version of the Cocoon for $2500-$3500or a model with lamination as insulation
for $1500-$2000. He indicated that prices go lower if multiple units are being purchased.
However, for us to sell Cocoon Rover orders of great magnitude, we will have to introduce
the product in the market and hope it gains traction among the NGOs that help homeless
people. With the initial price so high, introducing Cocoon Rover to the market will be a
challenge.
â The abundance of cheap alternatives: Over the years, a lot of products have been
developed to help homeless and poor people. Consequently, multiple products in the
market offer the same functionality of a Cocoon Rover for less than half of its price. Some
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such examples include the Sheltersuit, China Portable Housing, and the DIY Shelter.
Although these products do not offer everything Cocoon Rover does, they have a
considerable price advantage over Cocoon Rover. As such, to bring Cocoon Rover to a
market already flooded with cheap alternatives is going to be a challenge for anyone.
Recommendations
Based on our market research, there is a demand for products that could help provide comfort to
poor and homeless people. However, the cost of the Cocoon Rover is a significant driver here.
Cocoon Roverâs manufacturing and distribution costs will be several times that of its closest
competitors. We recommend that more work should be done towards reducing the cost factor for
now. Obtaining a utility patent on the Cocoon would be the only way that the device could even
be remotely commercialized, because a utility patent would at least preserve the functionality of
the Cocoon, making it less likely for others to copy the device. Otherwise, the Cocoonâs current
state of limbo will remain, with the device having neither a patent nor manufacturers willing to
produce the product due to zero intellectual property protection. With that being said, we
recommend that the Cocoon Rover not be commercialized.
Full Interview Summaries
Interview with San Francisco-based homeless advocate Phil O.
We showed him the Cocoonâs design and he said it is an interesting solution, but he has come
across similar products in the past. He appreciated the frame made up of thermally insulated
material and mobile nature of Cocoon. He thought it would be warmer in winter times and would
enable homeless to move from a crowded place to a quieter place.
He said his organization partnered with San Francisco city government to study the feasibility of
a similar project. He mentioned that the product cost about $1500 per product and it was proposed
by a Bay area-based Startup. They concluded from their research that in addition to safety
regulations required for homeless and public in the crowded areas, the adoption success rate will
be lower in the longer run. That could also create other problems and/or potential litigations for
the city government. He said the city mayor was also interested in making a tent city in a remote
hill area that once used to be a schoolâs location, but it was turned down by the city council. He
mentioned that any startup working in this space should work with advocates and city council to
come up with safe, compliant and affordable solution. An entrepreneur should conduct his research
by talking to people from different sectors in the market to make a product and then approach
relevant stakeholders for approvals.
14. 13 | Page
Interview with Pete B., manufacturing manager, of a mobile home company
Watching the Cocoon design video, Mr. Pete, the manufacturing manager in a mobile home
company estimated that he can make those designs. He believed that he might even create an
improved version of Cocoon without the need for any licensing or royalty. He said that in order to
make a cocoon rover and setup the assembly lines along with workers, he would need confirmed
purchase orders not less than 1000 units. He said he can work with the inventor of Cocoon on
developing a prototype and sharing the costs but for bigger orders he would need confirmed orders
to pay for his capital expense and reduce incremental costs. He estimated costs for the two
following scenarios (minimum 1000 units in each case):
1) $2500-$3500 for a metal/steel Cocoon
2) $1500 - $2000 for insulates laminates
He wanted at least a 25% profit margin. He said the cost could be reduced by up to $200 a piece
for a hybrid design (steel base and lower cost laminate top) and if the purchase order is of at least
20,000 units.
Interview with Mr. Louw Bekkerâ CEO of Canvas and Tent Group in Johannesburg
Area, South Africa
Mr. Bekker said that he has always been passionate about new unique products that can keep one
in touch with nature, but also allow for a comfortable stay. His objective is to lead their company
to success while looking after the environment and providing quality products at an affordable
price. He said that homeless people were never his target customers. Though it would be a good
way to work towards a social cause, his concern was about the cost involved. He wanted to deal
with the African market instead of the US, it was important to first find that whether there was an
available market in Africa too. If yes, he said he would want to think about it though patenting
and using this product in the current scenario was not an idea that he wanted to pursue.
Interview with Mr. Jonas Grey â global manager of the manufacturing tent company
Zhuhai Lijing Tents, China
Jonas Grey is the global manager for Zhuahi Lijing Tent Co. Ltd. which is a leading Chinese tent
manufacturing and trading company dealing in manufacturing, developing, designing and selling
aluminum structure tent system, marquee and shelter. It uses German technology to manufacture
large scale aluminous rolls berg tents. Mr. Grey said that they manufacture different types of tents
including Pagoda Tent, Gazebo Tent, and Canopy Tent, membrane Structure Tent, Polygon Tent,
Party Tent, Outdoor Tent, Warehouse Tent and Marquees. They have been exporting tents to the
different regions of the world. Since they have been recognized for the good quality and
competitive prices of different varieties of tents of they do not want to risk the reputation by
15. 14 | Page
starting to manufacture an untested new product. Though if cocoon rover proves to be a very cost-
effective technology, Mr. Grey might decide to reconsider his thoughts about using it.
Interview with Dr. Ganesh Prasad â Chief marketing executive of an NGO Seva, India
Dr. Ganesh Prasad was an Ayurveda doctor but his love to help the people in need made him quit
his previous job and help the homeless people. He has been serving people for 24 years now. His
community, Seva, is trying to make constant efforts to help the homeless people. Though he found
the idea interesting, he believed it was not a product meant for India, because of the bad road
conditions and varying weather. He said if the cost is affordable and is available to be sold by any
closely located manufacturer, he would want to try it to decide whether it is serving the purpose.
Interview with Ms. Sarah A. Schneider â Manager of Texas A&M Universityâs Recreation
Center
Former Manager of the Texas A&M University Recreation Center, Ms. Sarah Schneider, said that
they are in constant search of cheap, durable and portable tents. She said that this product could be
very useful to students who go biking long distances. She thought that little modification to the
design can make it even more useful to serve other purposes. According to her, it is the material
that would be used to hold this design which would be of prime importance. It needs to be durable
and light, but usually such materials incur high cost. Unless it is locally manufactured, it would be
difficult to manage cost structure. She then connected me to the Owner of the Tent Co. Company
who she thought might help me with a better insight for the same.
Interview with Walberto Vasquez â Owner of Tent Co. Company
Mr. Vasquez, Owner of Tent Co. Company, said that his companyâs products range from frame
tents to clearspan (structure) tents and everything that is essential in making your event perfect.
When I showcased our product, he said that it was an interesting design but there are similar
products and design available in the market that serves the same purpose. It not only needs to be
cost effective, but also needs to be durable. Even for homeless people, the communities would
want to buy good quality product which may sustain them for a few years. He said that such unique
designs are generally good at an individual level, but it is difficult to find manufacturers who will
pay to use them. That was one of his struggles and that is when they decided to open a
manufacturing unit. Although he said that the design was nice, he did not seem very enthusiastic
about buying, manufacturing or selling it.
Interview with Jennifer Young - Director of Twin City MissionBridge Homeless Shelter
In interviewing Jennifer Young, director of Twin City Mission Bridge Homeless Shelter, she told
us that it would be very unlikely for Twin City to have the funds, labor force, means, or motivation
to purchase and distribute the Cocoon Rover themselves. She stated that Twin City is not allocated
16. 15 | Page
a very large budget, and that there is no room for items such as portable pods for the homeless -
especially when Twin City is already providing shelter for the homeless. In the event that a
homeless individual does not want to go to a homeless shelter, Jennifer indicated that the U.S.
Department of Housing and Urban Development (HUD) requires a âcontinuum of careâ to be
formed by the community to satisfy these types of community needs. A continuum of care is
essentially a coalition formed by anyone in a particular local area that wants to end homeless, and
forms a cause to do so. Usually, homeless shelters, food pantries, volunteers, and mental
institutions come together to form a continuum of care. Jennifer made it clear to us that while Twin
City does venture out to rural areas and count the homeless as part of its operations, a continuum
of care can make this process a whole lot easier. She said that while Twin City would be a very
unlikely candidate to purchase Cocoon Rovers, for the reasons stated above, that a community of
care would be more likely to purchase them, if at all. Jennifer stated that cities with overcrowded
homeless shelters such as Austin, Los Angeles, and San Francisco would benefit most from the
Cocoon Rover pods. In addition, she expressed optimism that Cocoon Rovers could prevent future
homeless deaths in cities such as Chicago where temperatures can reach -40 degrees below zero
during the winter months - conditions that kill dozens of homeless individuals annually in this city.
Interview with David Carralla, owner and CEO of Gooseneck Trailer Manufacturing
David Carralla is the founder, owner, and CEO of Gooseneck Trailer Manufacturing. He has all
the parts, labor, and knowhow to produce trailers that ranchers can use for their farm animals and
equipment. However, he stated that he sometimes does special projects, and that the Cocoon Rover
would be a special project that he definitely has the capability to produce. With that said, however,
he made it abundantly clear that he would only be willing to produce the Cocoon Rover if the
device had a patent that could guarantee the IP was safe after licensing. We contacted Raul
Morichi, the inventor of the Cocoon Rover, who told us he did not have an approved patent or a
patent pending on the Cocoon Rover. This reason alone led David to express extreme skepticism
at taking on the Cocoon Rover for production. Without a patent to protect David if he licensed the
IP from Raul Morichi, he would only be willing to pay an ongoing royalty fee of 5% per year and
a one-time licensing fee at a maximum of $50,000. If Raul Morichi eventually obtained a patent
on the Cocoon Rover, David stated he would be willing to pay the 5% royalty fee for only the
duration of existing life of the patent.
Interview with Raul Morichi, inventor of the Cocoon Rover
The first question we asked Raul Morichi, inventor of the Cocoon Rover, is whether or not he had
a patent on the Cocoon; he immediately told us no. We then asked if he had a patent pending on
the Cocoon Rover, and he also told us no. Later in our interview, he further elaborated as to why
this was the case:
18. 17 | Page
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