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

0

0.2

0.4

0.6

0.8

1

Importance of attributes

Perc

en

tag

e o

f R

esp

on

den

ts

Sound Quality

Price

Design

Brand

Portability

Favorite attributes of our product

0

0.1

0.2

0.3

0.4

0.5

1

Favorite attributes

0.36

0.45

0.4

0.2

Perc

en

tag

e o

f R

esp

on

den

ts

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.