Potential market

PART B: valorisation plan

SECTION I: The product

 

1a

The innovation potential of this product is related to:

 

  • Technology-driven innovation (under the influence of the development of science – the market is not ready for the product)
  • Market-driven innovation (as a result of market surveys, the market expects the product)
  • Replacement of existing product
  • Product related to cost reduction
  • Radical new product
  • Other, what…
This R&D result could be nested in most of the segments – partly market-driven innovation, due to the high demand for such products. Also it is a replacement of an existing product to some extent. It will also help in cost reduction with its support to the automobile electrical system, thus reducing the load and exploitation of costly car modules, such as generators and car batteries. Among the main advantages is also the simple implementation without simple substitution of the regular tires, when supplied to new cars – fitting in the existing batch line without modifications in the production lines of the automotive manufacturers, allowing spearing time and money for the application of the innovation.

 

1b

What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
This proposal will improve the technical characteristics of the automobile. It will be a cost-effective solution; will help to expensive car modules in the electric system. Constant additional charging of the battery will extend its life and will prolong the service intervals.

And postponing the battery exchanges will lead to direct impact on lowering the environmental footprint of the car battery industry, which is one of the pollution leading industries nowadays.

The complication and relatively high price of the piezo tires can lead to a negative impact on the customer.

 

 

1c

What is the Unique Sales Proposition of the potential product?
The unique side of the product is in its “green” effect in the global automobile market. Hundreds of millions of cars are travelling in the whole world and every owner could be attracted by giving his own small share in the battle against exaggerated raw material consumption and pollution.  Although the idea itself is very attractive and relatively simple the implementation in practice is a costly and tough task to do.

 

 

 

 

SECTION 2: The Market

 

 

2a

What is the target market for the product?

National Õ

European Õ

Global ¨

Please describe the characteristics of your target market.

The target could be mainly focused at the European market. Due to the product’s high cost it is suitable for European countries, having high living standards and for those with traditions in the green thinking and ecology.

 

 

2b

How the product is characterized from the following options? Number of companies producing similar products in the field.

• Base – applied by all companies in the industry

• Leading – applied by a single or limited number of competitive companies

• Key –at a development stage, but has already proven its potential

The product, the idea actually, is implemented by a limited number of companies. In fact they are using the piezo crystals as a sensor with multiple functions – tire pressure control, temperature control, motion sensor, pressure sensitive device, etc.  None of the revealed implementations uses the crystals as an energy source. The intellectual property research has found numerous similar and analogical products in Europe and USA.

 

2c

What type of market demand will be satisfied?

• Existing demand – the market is already developed

• hidden (latent) demand – the market has yet to be developed

The market is not yet ready for such implementation of the piezo crystals. The total produced power by each tire could be far beyond its industrial implementation, making the demand narrow.

The high cost of the piezo tire will also have its negative impact at the total demands.

 

2d

What is the current stage of the product’s market life cycle?

• Implementation, implementation in production (leading to a radically new product offers)

• Growth (rapid spread within the industry or outside it)

• maturity (parameters of the technical characteristics of manufactured products reached their maximum, higher-grade products can be manufactured on the basis of technological substitution)

If the idea comes to a realization, its implementation in a working product will lead to a radically new product. While serving the same needs as the standard pneumatic tire, the piezo one will be able to generate some electricity.

 

 

2e

Strategic partnerships (existing or potential).
There no existing partnership at the moment, however the perfect partnership could be with a well-known automobile tire manufacturer for direct implementation in its production line. The grant of a license agreement is also a possibility, but the best result could be a strategic partnership or joint venture.

 

 

 

 

SECTION 3: The Competition

 

3a

What is the competition within your target market?
The researches proposing similar technical decisions are mainly employees of the big tire manufacturers and related research lab teams. However none of the competitors claims to use the piezo crystals, incorporated in a tire, as a power source.

For example the proposal of a German research team is to use several piezo crystals, built in the tire internal wall, as sensors – for controlling the tire pressure and motion generally.

There are also several patents and utility models, issued by USPTO, for American inventors, who basically use the same piezo technology, but with some variations in the piezo crystals positions, implementation and data control.

 

 

3b

What competitive advantages will the introduction of the new product ensue?

• lower prices based on lower production costs

• product differentiation (uniqueness of the product proposal)

If industrially reasonable, this product will be a unique proposal for the eco thinking people. Though with much higher price, compared to the usual car tire, the piezo tire will allow each user to make his contribution against the environmental pollution and for the green energy.

 

 

 

3c

Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

The potential product could be positioned in the high end of the price range. The production costs will be significantly higher due to the more complicated manufacturing and implementation of numerous piezo crystals, wires and controllers, thus also leading to increased labor/engineering costs.

 

 

 

3d

Potential products will be marketed:

• To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)

• To markets operating on the principle of free negotiation between agents on the market

The potential product could be marketed in the specific “eco” markets, stimulated by European and governmental laws for ecology and green energy production. Due its much higher price and limited effect as a alternative power source the marketing to the free markets and to direct users will be impossible or at least obstructed.

So the large scale implementation is not the goal for it.

 

 

 

 

SECTION 4: Indicators

 

Estimated cost of the new products 500 EUR
Expected market volume (potential / maximum number of users) 50 000 – 500 000
Expected sales volume 50 000
Expected market share of the company (proportion between sales and total company sales in the relevant market) 1%

 

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