Download to read offline
![Market Testing
❧
❧ Face to Face Interviews
❧ Online Survey
❧ Main Purpose of Online Survey
Determine market need
Determine purchase intent and price?
Get Product feedback
❧ Target Segment: Coffee Shop Visitors
❧ Sample Size Planned – 1000 [Actual 17]
❧ Survey Link: http://www.instant.ly/s/td5Vr](https://image.slidesharecdn.com/brunch-a-go-goucbxnewproductdevelopmentfinal-141029114021-conversion-gate02/85/Brunch-a-go-go-UCBX-New-Product-Development-19-320.jpg)
More Related Content
![Non & alcoholic beverage [Fankfinn]](https://cdn.slidesharecdn.com/ss_thumbnails/nonalcoholicbeverage-120111005951-phpapp01-thumbnail.jpg?width=640&height=640&fit=bounds)
Similar to "Brunch a-go-go" UCBX New Product Development
"Brunch a-go-go" UCBX New Product Development
- 1. Brunch-a-go-go ❧ Adrink and food carrier for your go-go life UC Berkeley Extension - Spring 2014, New Product Development, Stephen Sorger
- 2. Process ❧ 1. Assemble Design Team 2. Identify Market Need 3. Define Product Spec. 4. Generate Product Concepts 5. Select Product Concepts 6. Design New Product 7. Protect Intel Property 8. Prototype and Test 9. Develop Econ Model 10. Launch
- 3. Team ❧ KyleGarton Project Manager Ziyue Zhang Industrial Designer & Engineer Hristina Bencheva Marketing and Finance Manager Robert McKee Legal Counsel Ashish Virmani Mfg Engineer & Technician Lead Project Coordination Schedule Budget Calculations Design parts Create ideas Aesthetics Human Factor User Interface Market Need Competition Launch Funding Costs Break-even Name URL Patent Competition Launch Manufacturability BOM Processes Prototype Market Testing
- 4. Market Need ❧ 54% of Americans over the age of 18 drink coffee every day Americans drink avg. 3.1 cups/ day 65% drink it with breakfast 30% drink it in b/w meals 19% of Starbucks sales are food items 52% take out and consume it off-premises The U.S. spends $40 billion on coffee each year and rising Source: Harvard School of Public Health http://www.hsph.harvard.edu/news/multimedia-article/ facts/ http://www.sbdcnet.org/small-business-research-reports/ coffee-shop-2012
- 5. Current Solutions ❧ ❧ Need 2 hands to carry ❧ Focused on holding multiple drinks but not food ❧ Are unstable ❧ Not reusable
- 6. Market Segments ❧ B2C ❧ Busy individuals (students, professionals, etc..) ❧ buy drink & food item (for breakfast/lunch) ❧ wish to consume offsite or deliver ❧ Individuals who need “giftbag” for branded mugs, cups etc. B2B ❧ Coffee shops & tea houses ❧ Restaurants offering breakfast and lunch ❧ Gift stores
- 7. Specifications - MarketComparison ❧ Metric Brunch a go-go Cup Tray Cup Carrier Bag Cup Capacity 1 4 2 or 4 N/A Designed to hold food Yes No No Yes Stability High Low Mid N/A Cost inexpensive inexpensive inexpensive inexpensive
- 8. ❧ ❧ Metrics Final Specifications Item Name Target Description 1 Load >2 Lbs Could lift big coffee (20oz/590ml) and food (2 lbs). 2 Depth 13<x<18 cm Deep enough to have cup in the bottom and food on the top. 3 Variability (Hole Size) 7<D<8 cm Make sure to meet all sizes cups’ bodies. Not too deep, not too shallow. 4 Stability -- Cup would sit in the hole stably on horizontal without any leaking. 5 Cost <10 Cents Unit cost should be less than 10 cents (per 100,000).
- 9. Concept Generation ❧ Methods: ❧ Brainstorming - discussed available solutions and their flaws ❧ User input - team members, friends, survey ❧ Competitive Study Design: ❧ Team members each created a design ❧ Decomposition & Combination of best features
- 10. Concepts ❧ Insight:stability is important Carrier Handle - Decomposition & Combination Carrier Base - Decomposition & Combination
- 11. Concept Selection ❧ Selection Criteria Capacity + 0 + + Stability - + - - Cost + 0 + - Ease of Mfg. + + + - Aesthetics 0 + 0 - Material 0 0 + - Total 2 3 2 -5 Ranking 2 1 2 4 Improvement Ideas: Nicer handle; increase structure rigidity for stability, reduce cost
- 12. Design ❧ ❧Schematic
- 13. ❧ ❧ BOM(per unit) Design Item Name Description 1 Body Hard paper (made by 7-layer soft paper), 0.5mm thickness, 41*41 cm 2 Handles Wrapping paper, 25*50 cm 3 Glue Safe, non-toxic, 2g 4 Print Customized Logo/print
- 14.
- 15. Design ❧ ❧Cost (per 100,000units) Item Name Description Price 1 BOM Material cost listed in BOM. $800 2 Fixed Cost Board cutter, paper folding, handle rolling, paint printing. All outsource. $1600 3 Assembly Cost Most of assembly work are done by machine. $200 4 Others Burden rate 10% for materials, 80% for labors. $320 Total $2,920
- 16. Intellectual Property ❧ Trademark Search Domain Search
- 17. Patent Strategy ❧ Patent Type: US Provisional ($130). A PCT application will be filed if market demand is proved in EU or China Class: 206 Special Receptacle or package Subclass: 194 With apertured receptacle retaining wall Inventor: Ziyue Zhang Patent Search: Patent 599579276 Food and Beverage Container ❧ holds multiple beverages side by side or one beverage and one snack item side by side. Patent Des. 397,911 Combined Beverage and Snack Holder ❧ A container that connects to a canned beverage to hold snacks, with a hole to allow a straw into the beverage Features: A carrier with a bottom panel with a perforated hole for holding a beverage container. Four side panels connected to form a container for food/snack items. Two handles attached to opposite side panels.
- 18.
- 19. Market Testing ❧ ❧ Face to Face Interviews ❧ Online Survey ❧ Main Purpose of Online Survey Determine market need Determine purchase intent and price? Get Product feedback ❧ Target Segment: Coffee Shop Visitors ❧ Sample Size Planned – 1000 [Actual 17] ❧ Survey Link: http://www.instant.ly/s/td5Vr
- 20.
- 21. Survey Results -Market Need ❧ 100% feel inconvenience 60% moderate to high 93% taking out keys, unlocking, 73% opening doors 53% carrying additional bag/talking on the phone Market need is evident.
- 22. Survey Results -Product Feedback ❧ 38% “definitely” willing to pay 56% “maybe” Willingness to pay for convenience is present. Product Sturdiness, Size, Spillage, Straw, Foldable, Reusable 69% 19% 6% Price target to be 10c or less
- 23. Economics – Cost& Revenue ❧ Costs - Outflows Costs (Start-up) Amount ($) Details Development $1000 Design, testing, refinement, labor-40h$24, Materials-$40 Ramp-Up $20,000 Preparing production systems, 1 million units Marketing & Support $5,000 Ad-$50, trade shows-$4,000 (4 shows), B2B sales- $950 Legal Fees $500 $325 for Trademark Filing $130 for Provisional patent app as a small entity status $45 to get the brunch-a-go-go.com url for 4 years Total Cost $26,500.00 Revenue - Inflows Revenue (per unit) Amount Sales Volume $16,000,000.00 Total volume for 3 years Unit Price $0.05 Per unit Unit Cost $0.03 Per unit Unit Contribution $0.02 Per unit
- 24. Economics - ProForma ❧ Category Year 1 Year 2 Year 3 Year 4 General Expenses Development ($1,000) - - - Ramp-Up ($10,000) ($10,000) - - Marketing & Support - ($5,000) ($5,000) ($5,000) Legal Fees (500) - - - Total ($11,500) ($15,000) ($5,000) ($5,000) Sales Revenue Quantity Sold - 1,000,000 5,000,000 10,000,000 Revenue - $50,000 $250,000 $500,000 Cost of Goods Sold - ($30,000) ($150,000) ($300,000) Contribution $20,000 $100,000 $200,000 Net Cash Flow ($11,500) $5,000 $95,000 $195,000 Annual NPV = (10,454.55) 4,132.23 71,374.91 133,187.62 Interest (hurdle) rate = 10% Total NPV(1+2+3+4)= 198,240.22 NPV>0 Go forward with project!
- 25. Economics – Break-Even ❧ ❧ Fixed Cost: $26,500 ❧ Price= $0.05 ❧Variable unit cost (VC)= $0.03 500,000 400,000 300,000 200,000 100,000 0 Break-Even Vol = Fixed Cost = 26,500 (Price – VC) ($0.05-$0.03) 0 2,000 4,000 6,000 8,000 10,000 Revenue, Total Cost, Variable Cost 1,325,000 units Sales Volume in units (mil) Thousands Revenue Total Cost Fixed Cost = $1,325,000 Units Break-Even after 1 year
- 26. Economics – What-ifAnalysis ❧ Scenario Summary (1) (2) (3) (4) (5) (6) Greatest negative impact Greatest positive impact Current Values: What Sales Volume NPV=0 Increase Sales 100% Unit price increase, sales volume increase & unit cost decrease have the greatest impact on NPV Decrease Unit Cost 1 cent to $0.02 Increase General Expenses 100% Increase Develop. time 1 year, file Patent App Increase Unit Price 100% to $0.10 Changing Cells: Sales Year 1 - - - Sales Year 2 1 ,000,000 - 2,000,000 Sales Year 3 5 ,000,000 (0) 1 0,000,000 Sales Year 4 10,000,000 2,197,825 2 0,000,000 Unit Cost $ 0.03 $ 0.02 Costs Year 1 $ (11,500) (23,000) Costs Year 2 $ (15,000) (30,000) Costs Year 3 $ (5,000) (10,000) Costs Year 4 $ (5,000) (10,000) Costs Year 5 N/A (21,000) Unit Price $ 0.05 $ 0.10 Result Cells: Total NPV 198,240.22 (0.00) 426,503.31 312,371.76 168,217.33 161,912.59 768,897.96 % change 115% 58% -15% -18% 288%
- 27. Launch – MarketingMix ❧ Brunch a go-go Product Price Place Promotion
- 28. Launch – Product ❧ ❧Value Proposition - easily and securely carry a beverage and snack item with one hand or finger ❧Positioning - Convenient, quick, safe, reusable ❧Tagline: “Brunch-a-go-go makes life easy!”
- 29. Launch – Price ❧ ❧Differential pricing ❧Wholesale for bulk orders - $0.05 ~ $0.30 ❧Retail: $0.1 ~ $0.8 depending on the channel Quantity Price Shipping Option B2C (gift shops) $0.8 Standard shipping. B2B Samples (<100) Free Standard shipping. 1k $0.3 Standard shipping. 10k $0.1 Free shipping. 100k $0.05 Customized Ask for a quote.
- 30. Launch – Place ❧ ❧Local coffee/tea shops & brunch restaurants near business offices and colleges ❧Mega chains - Starbucks/Peet’s/McDonald’ s, etc. ❧Craft & gift shops
- 31. Launch – Promotion ❧ ❧Industry events e.g. coffee expo, trade shows, festivals ❧Direct to corporate buyers, partnerships with food accessory suppliers, etc ❧Online: Website, Social media, Search Ads Flyer Ad Brunch-a-go-go Are you rushing in the morning and have no time for breakfast? Do you go to the local café and take out but don’t have three hands to do it all? Brunch-a-go-go is what you need. Order, carry, enjoy and do all with one hand! 800-333-3433
- 32. Launch – Promotion ❧ ❧Industry events e.g. coffee expo, trade shows, festivals ❧Direct to corporate buyers, partnerships with food accessory suppliers, etc ❧Online: Website, Social media, Search Ads Brunch-a-go-go Are you rushing in the morning a nd have no time for breakfa st ? Do you go to the local café and tak e out but don’t have three hands to do it all? Brunch-a-go-go is what you need. Order, carry, e njoy and do all with one hand! 80 0-333-3433
- 33. Thank you Q& A