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No Fly Zone Market Research Project


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No Fly Zone Market Research Project

  1. 1. EXAMINING THE MARKET: BED BUG PREVENTION Lisa Mijajlovic Jordan Necamp Francesca Verceles-Zara Laura Ward
  2. 2. Overview • • • • • • • • • Introduction to bed bugs Examination vs. Prevention Potential markets to enter Market category information The survey The competition Creative product idea Industrial work-wear Conclusion
  3. 3. An Introduction to Bed Bugs Bed bug infestation is on the rise. • Prior to 2000, 25% of U.S. based professional pest management companies have encountered a a bed bug infestation • Now 95% of these companies have encountered a a bed bug infestation in the past year • They are found in rural, urban, and suburban areas • They are THE most difficult pest to treat Why won’t they ever disappear? • They can lay one to five eggs a day and more than 500 in a lifetime • They can survive for several months without eating • They can live in temperatures from nearly freezing to 122 degrees Fahrenheit
  4. 4. Local Statistics
  5. 5. Extermination Market vs. Prevention Market Extermination • Revenues from bedbug extermination hit $258 million in 2009, up from $98 million 2006 • The NightWatch Bedbug monitor is supposed to identify bedbugs by mimicking a sleeping person by releasing heat and carbon dioxide that attracts the bugs. The cost: $422. • There are $30,000 portable insect inferno trailers for sale that fire up the heat to kill bugs in a couch or mattress. • In NYC, the approximate cost for extermination is $7,700 per room per year.
  6. 6. Extermination Market vs. Prevention Market Prevention • There are $160 FabricTech mattress covers and $30 luggage liners. • For $22, consumers can purchase “interceptors,” which are placed under a bed’s legs to trap the bugs on their way up to feed on human blood. • Treated Under Mattress Pads can kill present bed bugs and help prevent new infestations for as low as $24.99.
  7. 7. Potential Markets to Enter • Residential  Homes  Apartments  Dormitories • Movie Theaters • Airlines  Luggage/Travel Accessories • Hospitality (Hotels/Motels/etc.)
  8. 8. Market Category Information – Pest Control Financials Revenue: $11.4 billion Profit: $903.2 million Wages: 4.0 billion Annual Growth (07-12): 2.9% Projected A.G. (12-17): 5.5% Businesses: 21,708 Industry Structure Regulation Level: Heavy Industry Globalization: Low Technology Change: Medium Competition Level: High
  9. 9. Barriers to Entry • This industry has medium barriers to entry, and this is predicted to increase in the future • The concentration in this industry is low • There is a strong requirement for licensing products • Companies are still entering the industry due to the demand from residential and commercial customers that value pest-free environments
  10. 10. Why is this market lucrative? • As of now, the extermination market is larger than the actual prevention market. This puts No-Fly Zone at an advantage. • Companies are spending hundreds of thousands of dollars to exterminate bed bugs once they are already present. • Once consumers find out about these bed bugs at these companies, a negative reputation is formed. All of this can be avoided by No-Fly Zone entering the bed bug prevention market. • With a product to prevent the bed bugs, companies won’t ever have to worry about extermination costs.
  11. 11. We created a survey to find out more information about hotel goers and their experiences with bed bugs. Average income of respondents is shown
  12. 12. How often do our respondents stay at hotels/motels?
  13. 13. How much more money would our respondents pay to stay in a hotel room that was guaranteed to be bed bug free?
  14. 14. Major takeaways from our survey • 76% of respondents said that they would pay more money to stay in a hotel that uses bed bug prevention technology • While only 6% of respondents had experienced a problem with bed bugs at a hotel or motel, the entire 6% said that they would pay at least a 5-9% upcharge on their room if it were guaranteed to be bed bug free • All respondents who have an approximate average income of $200,000 or more would pay at least a 10-14% upcharge on their room if it were guaranteed to be bed bug free
  15. 15. The Competition Sweep™ Bed Bug Treated Under Mattress Pad • After coming in contact with the fabric for more than 24 hours, it will kill bed bugs that are already present and prevent new infestations • Good for 20 washes • $17.49 at Bed Bath and Beyond
  16. 16. The Competition 16-Ounce EcoBugFree® for Bed Bugs • Eco-friendly spray that eliminates bed bugs and their eggs on contact without oils, fragrances, or long lasting chemicals • Breaks down the chemistry of a bed bugs exoskeleton, unlike pesticides that are designed to kill by ingestion • Safe to spray on bedding, luggage, travel bags, furniture, and carpeting • $9.99 at Bed Bath and Beyond
  17. 17. The Competition Protect-A-Bed BugLock Bed Bug Protection Pack • Patented 3-sided zipper system for bed bug entry and is then escape proof. • Surface is lined with Miracle Membrane®, a technology that prevents bedbugs from biting through once they are trapped • 1 year guarantee • $80.99-$134.99
  18. 18. Creative Product Idea NFZ™ Standard Set – Consists of two pillowcases, a flat sheet, a fitted sheet, and a mattress encasement NFZ™ Upgraded Set – Consists of two pillowcases, a flat sheet, a fitted sheet, a mattress encasement, comforter set, curtains, and a chair cover • Will be sold in bulk orders to numerous hotel chains • Hotels can upcharge the cost of the room if the room features NFZ™ technology • Depending on the quality of the hotel, the room upcharge would range from 5% to 15%
  19. 19. Potential Customers
  20. 20. Price & Revenue Wholesale Standard Bed Set Pillows (2) Flat Sheet Fitted Sheet Mattress Encasement Size King 42x46 King 108x110 King 78x80x9 King 78x80x12 Price (Per Dozen) $58.84 $144.78 $135.66 $258.36 Grand Total $597.64 Wholesale Standard Bed Set with 10% Upcharge for NFZ Technology Pillows (2) Flat Sheet Fitted Sheet Mattress Encasement Size King 42x46 King 108x110 King 78x80x9 King 78x80x12 Price (Per Dozen) $64.72 $159.26 $149.23 $284.20 Grand Total $657.41 $657.41 - $597.64 = $59.77 Revenue per dozen sets sold
  21. 21. Recommendations • After collecting data through multiple outlets, our team would recommend that ITG should enter the bed bug prevention market • The demand for this kind of technology in the hospitality industry is extremely high • Both hotel-goers and hotel chains will benefit from the technology
  22. 22. INDUSTRIAL WORK-WEAR Exterminator Protection for the Bed Bug Market • The industrial work-wear market is divided into three groups: general work-wear, corporate work-wear, and uniforms. • Major players are Clintas Corporation, ARAMARK Corportation, Willamsons Dickies, Unifirst, and G&K Services. • The most lucrative market for NFZ to enter would be military uniforms - these men and women need to be protected when they are deployed in foreign countries.
  23. 23. Potential Opportunities • Although we believe that ITG should focus on the bed bug prevention market, there is an opportunity for new product development in the bed bug extermination market • A primary way of bed bug travel is via clothing. When exterminators are at work, they are in danger of bringing these pests home with them every night • Applying the NFZ™ technology to an exterminator’s uniform would provide these workers with an increased level of safety Rough sketch of the design
  24. 24. Sleep tight and don’t let the bed bugs bite with
  25. 25. References Hildreth, C., Burke, A., & Glass, R. (2009). Bed bugs. JAMA, 301(13), Retrieved from Florida bed bugs. (n.d.). Retrieved from Bed bugs:photos. (2007, August 07). Retrieved from Bernardeschi, C., Le Cleach, L., Delaunay, P., & Chosidow, O. (2013). Bed bug infestation. BMJ, Retrieved from Bed bug facts & statistics. (n.d.). Retrieved from Raleigh north carolina bed bug reports. (n.d.). Retrieved from Shaffer, J. (2013, January 20). Shaffer: Raleigh crawls to no.15 in bedbug rankings. News observer. Retrieved from Alsever, J. (2010). Bedbug invasion is turning into big business. NBC News, Retrieved from Wholesale linens supply. (n.d.). Retrieved from Us bed bugs. (n.d.). Retrieved from Bed bath & beyond. (n.d.). Retrieved from IBIS world Industry Report 56171. (n.d.).Pest Control Industry. Retrieved May 7, 2013, from Analysis of the North American Workwear and Uniforms Market 7554336. (n.d.) Market Research Reports and Industry Analysis. Retrieved May 6, 2013, from