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Product Development Final Presentation
- 1. My Kitchen By: Alexandra,Maren, Shuang, Maximilian, Alexander Makes your dreams affordable
- 2. Recap Problems identified: ● Hardto visualize the finished kitchen ● Time-consuming process ● Expensive ● Lack of market overview ● Problems related to size and fit in consumer's home Solutions provided: ● We provide VR to help you visualize ● You don’t need to leave your home ● Save 30% of the purchase price ● We’re the total solution provider ● We do the heavy lifting, you just have to choose (The traditional kitchen shopping process) “It’s very time consuming and it often looks old-fashioned. Also, the prices are intransparent and the quality of the articles is hard to distinguish,” Sebastian Eberhardt
- 3. Why a NewProduct? Hard to visualize the finished kitchen Not everyone can visualize how the kitchen will look like. Too many different products in the kitchen furniture stores. The visual effects of different combinations can vary greatly.
- 4. Simple 4-Step Process Ineed a new kitchen! Prospective buyer needs a new kitchen - stylish, convenient, and affordable are the criterias. 1 Our consultant visits the client and discusses the cabinetry, layout, styles, and materials. The kitchen space is also scanned. 2 A VR model of your kitchen is created in our offices. Then, the consultant visits the client and delivers VR goggles and sets them up. 3 The client selects the dream kitchen and professional kitchen installers will come to their home to assemble it. 4 This looks incredible! New kitchen - easy and affordable Save up to 30% of the price
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- 6. Target Customer Identification 6 Yuppies& Middle Agers (25-55Y) New Technologies Shopping online 01 Buying Power Motivation 02 04 03 More motivation to buy a new house or redecorate a house. Acceptance of new technologies Having enough buying power Get used to shopping online ● 25-35 years ● Single ● Low-high income ● Cooking with friends ● First own kitchen ● 35-55 years ● Family ● Children ● Own house or apartment ● Long-term oriented
- 7. Size of TotalMarket Sources: US Census, Joint Center for Housing Studies at Harvard University 128 m 202 m Digital buyer penetration US Population Segmentation 100 m 22% 78% 22% 39% 61% 28 m 22 million major home renovations 2 million kitchens remodeled 25-55y Others Offline Online
- 8. Rate of Adoption Thespeed of technological adoption is rising: ● In the age of the internet, newly commercialized technologies get adopted by consumers at a faster rate than ever before. ● Ideas and products can spread so fast because of how easily accessible and affordable new technology has become. ● According to YouGov.com VR adoption has grown to 11% among all US adults (November 2018; up from 7% in August 2017). ● Start off in the Early Adopters segment within our first quarter and move into the Early Majority for several years to come. Graph:https://www.interaction-design.org/literature/article/understandi ng-early-adopters-and-customer-adoption-patterns
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- 10. Competitor Analysis -VR Kitchen retailers IKEA ● The IKEA virtual reality experience was released on gaming platform Steam in April 2016 for the HTC Vive (VR google) ● You need to have your own goggles or try it in store ● You can walk around and do basic tasks in ONE pre-designed kitchen! ● It’s more of game than a real solution Toll Brothers ● Only for home buyers in Colorado ● Toll Brothers offers luxury kitchens ● The Kitchen 360 application uses fully immersive, dynamic virtual reality technology to add new dimension to the home buying experience ● Targets luxury buyers https://youtu.be/1S0GO5kbMYo https://youtu.be/4AUR4mRaR2w
- 11. What makes usdifferent ● Our kitchen consultants come to your home! No need to travel to a retail store ● You don’t need to own a VR goggle - we’ll provide you with everything you need ● We allow you to fully customize your kitchen - no run of the mill products ● Looking to get the most for your money? No worries, you’ll save up to 30% of the retail price of traditional retailers with us ● We start in Florida but soon available across the entire United States We provide everything the competitors do and more!
- 12. ● The forecastshows a substantial increase in sales personnel as it is one of the main revenue drivers. ● Due to the theory of the learning curve, sales staff increases his effectiveness and efficiency ● After underpricing competitors by on average 30% in the first year, we assume to realize higher prices in the following years. 20-24% margin. Revenue forecast for the next 3 years 1 2 3 1 2 3 146% 139% CAGR
- 13. Cost forecast forthe next 3 years 1 ● The underlying cost increases in accordance to the revenue growth ● Marketing costs mainly consist of online marketing and promotional offers ● After the development phase, the website needs to be maintained 1 2 2 3 3 First profitable month: September 2021
- 14. Prototype Process ● Weutilized the Marston Librarians to learn about the different VR equipment we could and should us. ● Since the software is already established, we explored SimLab’s software options.
- 15. Prototype Decisions ● Afterlengthy discussion and collaboration with Mr. Putnam, we decided that using Google Cardboard and/or Marston’s more developed VR model would be the best fit to test our idea through a MVP *picture from SimLab
- 16. Alpha Testing ● Consultingwith Engineering Librarian Samuel Putnam ● Internal meeting ● Test several different headsets ● Discussed the nuances of the different headsets and how it would apply to our new model Images captured from: https://guides.uflib.ufl.edu/msltech/made
- 17. Beta Testing ● Testedour prototype with several people ● Goal: see potential customer's initial reaction to the VR experience ● Overall positive feedback from customers It (the VR experience) is very convenient. It seems like it is cost-saving because it is easier to test out several kitchens fully installed. My only concern is that this process can make people dizzy“ “
- 18. Final recommendation We recommendto move forward with this business model
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- 21. Target Segment According tothe US Census Bureau, the age bracket between 25 and 55 years consist of 128,333,356 people. Given that the average digital buyer penetration is 78% our target market consists of 100,100,018 potential customers ranging between 25-55 years in age. According to a report by the Joint Center for Housing Studies at Harvard University, 22 million homeowners undertook at least one major home improvement project in the US in 2017. Of those major home improvements, roughly 2 million were kitchens being remodeled in 2017, costing on average 140 % more than 1995. Hence, there is huge market potential for affordable kitchens. Sources: US Census, Joint Center for Housing Studies at Harvard University
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- 25. Assumptions for ourforecast model (1/2)
- 26. Assumptions for ourforecast model (2/2)
- 27. Works Cited Office space:8300 square feet in Gainesville https://www.loopnet.com/Listing/3515-NW-98th-St-Gainesville-FL/6509715/ Shipping cost for a 10x10 feet kitchen shipping crate https://kitchencabinetkings.com/10-by-10-shipping-rates.html Cost per kitchen on average: $ 16,600 USD https://homeguide.com/costs/kitchen-remodel-cost Average retail margins: 30-50% for furniture https://www.allianceexperts.com/en/knowledge/what-is-a-reasonable-margin-for-your-distributor/
- 28. Works Cited Cont. SimLabsoftware: https://www.simlab-soft.com/technologies/simlab-showroom.aspx Smart kitchen market revenue worldwide from 2017 to 2027 (in billion U.S. dollars) https://www.statista.com/statistics/1015395/worldwide-smart-kitchen-market-revenue/ Market value of consumer appliances in the United States from 2015 to 2020 (in million U.S. dollars)* https://www.statista.com/statistics/491261/consumer-appliances-united-states-market-value/ US Census Bureau population numbers: https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_17_1YR_S020 1&prodType=table Competitors https://www.thespruce.com/kitchen-cabinet-manufacturers-and-retailers-1822065