Mid Term Unfront Analysis
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Transcript of Mid Term Unfront Analysis
DIY Cardboard Speaker
UPFRONT ANALYSIS
XUYAN YAN
Finalized new product Idea
The DIY Cardboard Speaker is a fully functional speaker contains a high quality cardboard template and electronic components. It is light weighted and collapsible. It is sold with different sizes and designs. This DIY product offers 3 levels of difficulty to different age group. Consumers can purchase extra cardboard template to change the surface of the speaker. This speaker is a USB powered product, no battery needed. It can be connected to any PC and MP3 player.
Industry Trend
In general, the market demand of speakers are increasing.
"As digital technology has taken over, home and automobile solutions are increasingly expanding MP3 player accessory sales(includes headphone, speakers) ...the MP3 speaker dock sales will nearly double between 2006 and 2008"
(Mintel: MP3 Players and Accessories, June 2008)
Industry Trend Design has become the new point of
difference.
"Trends among speakers have been toward stylization that encourages upgrades even if current speakers are effective."
(Home Audio,Mintel)
Industry Trend The "Green" trend.
Nowadays, the environmentally friendly products are getting popular. More and more consumers adopt the notion of buying green.
Industry Trend Portability is a new trend for most technology products.
Target Audience Trends
Children love electronics and entertainment technologies.
More and more parents are prepared to provide younger children with the gadgets available on store shelves.
Industry Analysis"The electronics industry is in the growth stage of its life cycle " (Global Consumer Electronic Manufacturing, IBISWorld, Oct 2009)
Industry AnalysisAccording to IBISWorld report, the "speakers
(include loud speakers and commercial sound equipment) accounted for 42.2% of the market share in the audio and video equipment category"
Industry Analysis
"This industry is expected to grow in the 5 years through 2014, at a real average rate of 1.7% annually..."
(Audio & Video Equipment Manufacturing in the US, Aug 2009)
Purchase interests - High
Market structure Chart
Perceptual Maps
Perceptual Maps
Perceptual Maps
CONCEPT BOARD
Concept Board - Original oneFeedback
- product description is not very clear
- It is not appealing
- Confused by images
- Cant tell the quality
- not very believable
Concept Board - Revised one
Competitive Strategies
Product + Various Designs + Green factor + DIY fun + Portable
Competitive Strategies
Price"price is a major
competitive factor in this industry" (Audio & Video Equipment Manufacturing in the US)
According to our research, our product is considered as very reasonable or cheap comparing to other brand
Marketing research
Important attributes of a general speaker
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Importance of attributes
Perc
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tag
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f R
esp
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Sound Quality
Price
Design
Brand
Portability
Favorite attributes of our product
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Favorite attributes
0.36
0.45
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0.2
Perc
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esp
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Portability
Design
fun of DIY
Green
Believability of Sound Quality
Somewhat Believable
Not very Believable
Somewhat Believable
Not very Believable
64% of the interviewees would not believe the sound quality of the speaker would satisfy their need.
Believability of Cardboard Quality
Somewhat Believable
Not very Believable
half of the interviewees would not believe the cardboard would satisfy their needs.
Preferred adaptionInterviewees were asked which of the change will be more appealing to them.
32%
15%
28%
20%
5%
Improve the sound quality
Improve the cardboard quality
Provide more design
Decrease the price
Others
Purchase preference
Buy for themselves
Buy for others as a gift
Would not buy anyway
25% would buy for themselves65% would buy for others as a gift
Reposition
After the market research, it is found out that we should switch the target audience to children aged 8 to 16. (and people who love paper craft in later stage) .As those groups would care less about the sound quality but more about the DIY fun and the designs.
Improvement
Product
Improve the cardboard quality. We would provide a return police to consumer to reduce the risk which they concerned a lot.
Develop more designs to target audience
Improvement
Price
Decrease the price. 20% of interviewees would be willing to buy it if they are offered a 5 dollar coupon.
Quantitative ResultAdjusted the value according to the research of product improvement.
13%
55%
17%
10%
5%
Definitely would buy
Probably would buy
May or May not buy
Probably would not buy
Definitely would not buy
Volume forcast
Target Audience : 50MM
Industry Rule of Thumb: 80% "Definite" actually buy, 30% "probables" buyAdjust Trail: (80%)*(13%)+(30%)*(55%) =26.9%
$6 MM Advertising =30% awareness50% ACV((26.9%) (30%)(50%))=4%
Trial : (50MM)(4%)(1)=2MM
Product line
Key features Fun designPortable and collapsibleFun of DIYReasonably pricedEnvironmentally friendly
The speaker will be sold in 3 sizes and 3 model lines.48% interviewees prefer the small size, 36% like the medium size.Depends on the sale, we might only provide 2 size at the beginning stage.
3 Models:retro model line ( 37% favored)cartoon model line (28% favored)in-season fashionable/trendy model (20%)
Brand ,Name, Package
We are doing an extension line of a existing brand called "Princeton Japan " with some adaption on its original products. It is called "DIY cardboard speaker" , which gives a brief idea about what this product is. According to our research, people who love DIY product tends to be more interested in our product. Most people would consider buying it as a gift to other people. We repositioned our target audience to the household with kid aged 8 to 18 and people who love craft /gadget. It is positioned as a gift from parents to their kids or a gift for a friend (according to our research) Therefore package will designed more like a "gift"-like product.
Brand positioning statement
To parents of young boys and girls, our speaker is a fun designed DIY product that will be a great gift to your child who can make his or her own gadget with it, which is good because he or she will gain great fun and improve his or her creativity.
Brand positioning statement
To people who love craft, our speaker is a fun designed craft product that will allow you choose the design and level of difficulty to make your very own cool speaker, which is good because you will gain great fun making it and adding it to your collection.
Brand positioning
Pricing Recommendation
According to our product feature and research about the potential consumers and our competitor brands, the price for the small size will be $20, medium size will be $25, the large size will be $30.
Distribution
As the brand position of our product, the massive retailers (e.g., Wal-Mart, Target, K-mart) and Catalog/Internet retailers(Crutchfiled, Amazon.com) will be our major distribution channel. It is believed that companies can gain sales and a competitive advantage through effective distribution networks. The massive retailer is likely the place family do the shopping. The Internet retailers are a popular and relative cheap channel that we can reach our target audience.