The document proposes an expansion of the product line for a fictional company called Therma that currently produces a self-regulating thermos bottle. The expansion considers developing portable food and beverage containers, portable non-food containers, portable shelters, and providing Therma's temperature control technology and services to other manufacturers. Two potential new products are then detailed - the Therma Lunch Tote, a larger insulated bag, and the Therma Industrial Food Container, a large display container for mobile food stands. Both aim to maintain Therma's temperature control functionality while expanding into new markets.
2. The Challenge
■ Take a fictional company with one product, in this case a thermos bottle that
regulates itself to hot or cold, depending on the setting, and propose an expansion
strategy.
■ The challenge is to develop a portfolio of products and then detail two of them
■ Challenge accepted!
■ Read On…
3. The Current Product:Therma ® liquid
container
■ TheTherma® liquid carrier is an innovative design which has a cooling system and a heating system
incorporated to permit liquids to stay at the desired temperature.One qt to one gallon sizes are
available. Multicolored wraparound outside protectors can be bought according to the owner’s
fashion tastes to individualize the carrier. AThermameter® strip lines the inside of the container,
connected to the temperature control mechanism and temperature setting gauge on the bottom.
Current temperature readouts are possible via an LED screen in the top of the carrier; desired
temperatures are set via a knob at the bottom, although future models plan to incorporate an LED
based screen control at the top.
■ The cooling system is based on the principle of gas expansion which creates cooling. Working on a
consumable gas cartridge (non toxic gas) the control mechanism releases a tiny amount of gas into
the tubes that line the inside of the carrier. Upon expanding, a cooling effect is created. Once used,
the gas is expended into the outside and it is harmless.
■ Heating is done by electrical strips or coils inside the carrier. A rechargeable battery in the bottom of
the unit powers the cables to heat the liquid once it falls below the target temperature.
■ These functional items are important because they are the technical levers upon which a new product
can be developed.
4. Therma ® liquid carrier
Overall concept existing design
Screw on top for individual drinking or pouring/filling w/o top
Flat top and sides have solar cells for energy generation
Main receptacle for holding contents; could be in 1 qt-1 gallon sizes
Screw on base for thermal control and power unit
Temperature reading LED screen
5. Therma ® liquid carrier
Existing Main Receptacle Design
Main receptacle for holding contents; can be in 1 qt-1 gallon sizes
Insulation inside
External multi-color cover
Like cell phone protectors
(Can be accessorized and sold separately)
Hollow rods for
Cooling tubes or Heating
Strips from
Thermal Control Unit
Liquid
Content
CROSS SECTION
VERTICAL SECTION
Thermometer Strip in wall “Thermameter”
Screw on
for top
a
b
a
b
Screw in
for bottom
Connector Plate for
gas tubes (cooling)
and electrical strips
(heating) – connects
to bottom
Cooling/Heating
Elements inside
6. Therma ® liquid carrier
Thermal Control Unit
Main receptacle for holding contents; comes in 1 qt to 1 gallon sizes
Screw on
Into main unit
a
VERTICAL SECTION
PLAN BLOW UP (High Level)
Connector Plate for gas
tubes (cooling) and
electrical strips
(heating) – connects to
top
Rechargeable battery
for heating,
recharging cord plugs
into base
Consumible gas
canister for cooling
(similar to B-B guns)
Cooling and
heating
connections
Temperature control
chip (and valve)
Control knob is below
Control coupling and
power harness
Gas and electrical
raceway
Temp control knob into temp control chip
7. Current company capabilities based on current product,
value chain and Go-To-Market proposition
R&D Suppliers and
Manufacturing
Inbound
Logistics
Distributio
n
Sales and
Marketin
g
Target
Markets
Financial
and
Corporate
In House Capabilities in
product design
and minituarization
of temperature
systems, energy
management,
temperature
controls and
electronics are our
key capabilities
Component
suppliers are
managed in
house
Quality
Assurance is
done in house
Overall
coordination
for shipping
to US is
done in
house
Therma
manages and
coordinates
Logistics,
Product
Stocking and
delivery to
clients
Therma
has sales
force to
handle key
accounts
and
manage
distributors
Marketing
and
promotions
are
handled in
house for
the entire
value chain
Key target
market
defined as
young,
female, with a
positive self
image,
interested in
physical well
being and self
growth
Male and older
markets are
being
considered for
growth and
development
Financial
strength and
internal
processes and
controls to
fund design
teams, R&D
efforts,
production
tooling and
S&M
investment
8. Current company capabilities… (2)
R&D Suppliers and
Manufacturing
Inbound
Logistics
Distributio
n
Sales and
Marketin
g
Target
Markets
Financial
and
Corporate
Outsourced Insulation and
materials
development
outsourced to
various suppliers
Manufacturing,
tooling design
and final
process and
assembly is
outsourced to
Mexico
Transport to
Therma
warehouse is
handled by
third parties
Transport to
clients done
by third
parties
Non key
accounts
are
handled by
distributors
under
Therma
review
Surveys,
product
tracking and
market
research are
outsourced via
one supplier
Therma
outsources
Administratio
n and Human
Resources via
a third party
9. Our understanding of capabilities
included analyzing product features
Feature Core Capabilities Leverage Points Leverage Areas to explore
Liquid
receptacle per
se. as a product
Economic
manufacturing
Quality Control
Logistics
infrastructure
Manufacturing
design and
process
abilities
.
Quality
Assurance
points, specs
and process
Product
throughput
capabilities
through
pipeline
What other products can be designed and manufactured using
our capabilities? For containing Hot and Cold temperatures in
Liquid and Solid foods.
In what other products or product lines are our Quality
Assurance process and capabilities of value?
What other products, products types or lines of products can be
sent through my logistics value chain?
What products/types of products are manufactured or
distributed where my logistics value chain has touch points, ie.
China, Mexico, EastAsia.?
10. Our understanding of capabilities (2)
Feature Core Capabilities Leverage Points Leverage Areas to explore
Temperature
controls and
energy
management
Strong R&D
capabilities in this
area
Insulation material
capability (outsourced)
Ability to maintain
temperature (hot/cold)
Energy management
to enable dynamic
temperature controls
Ability to set
and control
temperatures
within a
container
Control
mechanism
Efficient
energy
conversion
Other need areas where ability to set and control
temperatures within space and weight restrictions
is important
Areas where energy is scarce or must be self-
generated or self-contained
Attractive and
functional product
design
Durable, leakproof and
breakproof materials
and composition
(outsourced)
Light and
transportable products
Goods that are
fashionable and
attractive to users
Ability to
provide impact
resistance and
durability
Ability to be
carried
Attractive to
youth and
style centered
consumers
Needs of those with active lifestyle
Socialization and Individual needs
Filling niches where style and functionality are
values (Airstream Camper)
11. Our understanding of capabilities also
extended to non product related areas
Feature Core Capabilities Leverage Points Leverage Areas to explore
Distributio
n footprint
/ Sales
channels
Sales through yoga salons, gyms and exercise
locales, especially national chains as Key
Accounts.
Non Key Accounts managed by six regional
distributors
Ability to expand this into broader
channels
Online sales, broad market
penetration; Home Shopping
Clubs
Branding/
Image/
Sales and
Marketing
Ability to create passion and fidelity among
core group of customers
Target market skews young, female and with
strong sense of design accompanied by
functionality
Nevertheless, there is penetration and market
awareness among other groups as well
Ability to expand communication
skills into a broader audience
Grow the passion into new
audiences
Have message expand
universally
Financial
capability
to Go to
Market
Financial strength to fund design teams, R&D
efforts, production tooling and S&M
investment
Product expansion has capabilities
and clear tracks, but needs to justify
investments vs risks
Understand where key
cost/benefit ratios lie in
determining which of the
capabilities to leverage for
expansion
12. Evaluation of current capabilities
showed potential, but many gaps
■ R&D strength, focused on minituarization of cooling
and heating systems, controls and energy
management is the Company’s key asset
■ Sales and Marketing capabilities were also strong,
although limited to one product
■ The Company is well funded and administered, able
to support growth programs
■ Supply and Manufacturing and Inbound Logistics
were outsourced, not a key leverage item
■ Distribution strength could potentially be an asset,
but the limited distribution in place made that only a
potential future asset
■ A Key Challenge is to expand beyond current client
base of young, femaleYoga enthusiasts and grow
into a broader public base
13. Our value chain extension analysis forms goalposts for
product expansion
Capability Close Extension
Capability
Medium Extension
Capability
Remote Extension
Capability
■ R&D (temperature
maintenance and
energy
management)
Into similar food and
beverage container
products
Into non food and
beverage containers
Other non container
areas
■ Suppliers and
Manufacturing
Into food and
beverage containers
Into non food and
beverage containers
Other non container
areas
■ Inbound Logistics Products sourced
from Mexico
Products sourced from
other emerging
markets
Products sourced globally
■ Distribution Distribution through
other related
distribution channels
(food and beverage)
North and South
American Distribution
Distribution through
non related distribution
channels (non food and
beverage)
Global Distribution
Other distribution
opportunities
14. Our value chain extension… (2)
Capability Close Extension
Capability
Medium Extension
Capability
Remote Extension
Capability
■ Sales and Marketing S&M of new products
into current channels
S&M into related
distribution channels
Develop North and
South American
markets
Develop global markets
and S&M capabilities into
other markets
■ Target Markets Current base is young,
female; expand into
male and older
markets
Other markets more
encompassing in terms
of age and lifestyle
keeping core
temperature
preservation value
Expanding into B2B from
B2C market
■ Financial and
Corporate
Support expansion
into F&B markets
Support expansion into
Non F&B markets
Support expansion into
B2B markets
15. We can summarize the expansion potential and usefulness of capabilities
Current situation Close Extension Medium Extension Remote Extension
Beverage container Food and Beverage
Containers in different sizes
and for different uses
Non Food and Beverage
Containers
Apply technology to B2B
areas as well as B2C
Value chain Factor Usefulness per Stage
■ R&D (temperature
maintenance and
energy management)
Directly useful to a great
extent
Useful, but needs
strengthening
Needs exploration as to
usefulness
■ Suppliers and
Manufacturing
Starting point only Slightly useful Not Useful
■ Inbound Logistics Starting point only Slightly useful Not Useful
■ Distribution Needs strengthening Not useful Not Useful
■ Sales and Marketing Directly useful to a
moderate extent
Useful, but needs
strengthening
Needs exploration as to
usefulness
■ Target Markets Starting point only Slightly useful Not Useful
■ Financial and Corporate Useful Useful Useful
16. Current Product
“Therma-Tron” ®
1Qt- 1 Gal thermal bottle
Potential Products
Portable Food and
Beverage
Containers
Therma Lunch
Tote
(1 gal size)
Therma Picnic
Basket
(2-4 gal size)
Therma Party
Carrier
(5-10 gal size)
Therma Portable
Industrial Food
Container
(3’x 5’x3’)
Portable Containers
(Non Food and
Beverages)
Therma Small
Medical
Products
Containers
(eliminating Dry
Ice)
Therma Medium
Industrial
Products
Containers
(maintaining
quality in
shipment)
Therma Large Products Containers
(improving quality in shipment and
storage in areas where power is
uncertain)
Could have military uses in frontline
zones w/o power supply or in disaster
zones.
Portable Shelters
andTents (Non Food
and Beverages)
Therma Pet
House
(Dog or Cat)
Therma Sleeping
Bag
(1-2 people)
ThermaTent
(2-4 people)
Therma Hut
(4-6 people)
ThermaTechnology
and Business
Solutions and
Services
(for other Mfg’s)
Therma
Tempera-ture
and Energy
Controls
Therma Consumer
Packaging,
Branding and
Design
Therma Solar and
Micro Energy
Therma Insulation
and Materials
(with partners)
SMALL - MEDIUM - LARGE
Product Line
Expansion Ideas
17. Discussion of the ideas proposed
These are quick hits from existing
technology. Require larger scale and
slightly different functions.
Industrial food container would be
for outdoor events and functions
where food and beverages are sold
Moving into non F&B business may
present challenges as Medical and
Industrial requirements may differ
from F&B
Moving into Shelters is a leap in
scale. Micro electronics R&D
capabilities could be an advantage
to leverage
Finally, Therma may be able to enter
the B2B sector by selling its
expertise to other firms in different
areas
(5’x4’x’ 3)
18. Team Lambda formed a group of three professionals
with complementary skills to develop a few of the ideas
further into prototypes
Team Member
■ Lin Giralt, M.Arch/MBA, Program
Manager,Costing and Feasibility
■ Marcella Fuller, M.Eng., Engineering
andTechnical Designer
■ Bucky Breuer, M.F.A., Product and
Industrial Designer
Work path followed
■ Evaluated design proposals in terms
of cost and market requirements
■ Developed technical specs and
manufacturing feasibility
■ Designed product and integrated
components
19. The work was done in one week
1 2 3 4 5 6 7
Selection of
alternatives from
initial Menu
Initial Specs vs
Customer Needs
Strawman design
1
Evaluation of
Strawman
Modifications
into Second
Design Proposal
Engineering and
Tech Design
Product and
Assembly Design
Final Design
Cost Evaluation
Final Evaluation
20. The worksteps were intense, exhaustive
and exhausting!
Steps included
Selection of alternatives from initial Menu Preparation of initial menu of options from brainstorming session by all participants
Initial Specs vs Customer Needs Development of market needs from market research and team discussions; Comparison of available
consumer options
Strawman design 1 Marcella and Bucky prepare a strawman each contributing their skill set; Lin does fieldwork and cost
research
Evaluation of Strawman Team evaluates various initial ideas; Best features are kept, others are dropped
Modifications into Second Design Proposal Marcella and Bucky prepare specs for second design
Engineering andTech Design Marcella does detailed design from second proposal
Product andAssembly Design Bucky does product design in more detail
Final Design Both integrate their designs infor a Final Design
Cost Evaluation Lin uses the cost evaluation information to cost out design and compare to alternatives in the market
Final Evaluation Team gathers with selected buyers representing allies in the industry to get feedback and suggestions
21. Therma LunchTote
• Has similar functionality from current product
• Has adjustable interior partition to separate hot/cold
sections (if wanted)
• Power supply at bottom, clip on instead of screw on
• LED temperature indicator on top
• Temperature controls on top
• Color personalization via wraparound protector for
midsection
• Larger surface permits better use of solar panels for energy
as well as rechargeable battery
• Current competitor retail prices range from USD 20-50;
• Estimated manufacturing cost at USD 6-15
• Our Manufacturing cost = USD 20
• Estimated sales price = USD 55
• Comes with internal food trays and sealed off bins
• Additional food trays can be sold separately
• Packs 1 Qt Bottle Unit directly
22. Therma Industrial Food Container
• Has similar functionality from current product (see AppendixA)
• Has see through top to permit display of food items below; part
of top hinges away to access food, remaining part is fixed for
controls and LED’s
• Great for outside food courts and mobile food and beverage
stands
• May also be used in beaches and countryside where power
supply is uncertain
• Power supply at bottom, clip on latches instead of screw on
• LED temperature indicator on top
• Temperature controls on top
• Midsection may have advertisement or product information
• Larger surface permits better use of solar panels for energy as
well as rechargeable battery
• Current competitor retail prices range from USD 1000-3000;
• Estimated manufacturing cost at USD 600-1750
• Our Manufacturing cost = USD 1500
• Estimated sales price = USD 3500
Your Organic
Foodies Here
5 feet
3 feet
4 feet
23. In conclusion, both products passed the Final
Evaluation, although the LunchTote scored
higher
Concept LunchTote Industrial Food Container
Design 5 5
Functionality 5 5
Cost/Benefit 5 5
Market Attractiveness 5 4
Buildability 4 5
Fit with current capabilities 5 4
Overall Evaluation 5 4.5
5=High;
1=Low