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…
 

Product related to cost reduction.

Even though the product has significant innovation in the composition of the fire retardant the market has similar products on the market. The R&D result proposed by Interiorprotect is cheaper than the other similar products on the market and has very good technical parametres.

 

 

 

 

1b What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
The product of Interiorprotect has:

-        good quality, and

-        better technical characteristics.

On the one hand it is easy for application, is less energy consuming, and has a better level of penetration than its analogues, and is cheaper. On the other hand its application leads to increased safety in comparison with the other similar chemical fire retardants and thus it ensures better prevention and safety with regards to fire and inflammability.

 

 

1c What is the Unique Sales Proposition of the potential product?
Unlike many similar products, SCE-96 is suitable for both hydrophilic and hydrophobic materials and surfaces, which proves that the product has a very wide area of application and can be applied to a wide variety of materials.

Another advantage of the product is the level / depth of penetration into the material treated. By the traditional application methods – spraying or immersion, this product achieves as good level of penetration as if applied under high pressure. This leads to energy savings.

Third, it has very high capillary activity, i.e. the speed of penetration into the material is very high. In practical terms, one spraying or immersion is enough to achieve the complete impact / fire retardance sought.

 

SECTION 2: The Market

 

2a What is the target market for the product?

National ¨

European ¨

Global ¨

Please describe the characteristics of your target market.

The target market is global though at present the company operates mainly on the local market.

The INTERIORPROTECT Ltd. patented flame retardants, manufactured under the CSE-96 trade mark, are applied to flammable polymers like textiles, wood, paper, corrugated board, leather, penopolystyrene, penopolyurethane and items made of them to achieve fire safety:

-        in public and office buildings, theatres and TV studios, furniture of houses, hotels, restaurants, and

-        means of transportation like airplanes, ships, motor vehicles, trains.

In the developed countries the requirements for protection against fire are growing higher and higher and the use of such fire retardants becomes more and more obligatory, i.e. a regulated requirement.

 

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

 

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

 

In a global scale there are leading companies producing similar products, mainly in Germany and the 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

There is existing demand for such products as the market for this type of products is already developed. This market will continue to grow as many more countries introduce obligatory requirements for treatment of many more materials and surfaces with fire retardants.

 

 

 

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)

The market life cycle could be assessed as both mature and one in growth, as this market is subject to constantly increasing regulatory requirements. The product is currently sold on the local market (the Bulgarian market) but is intended to go on international markets as one having competitive advantages to other similar products.

 

 

 

2e Strategic partnerships (existing or potential).
At present no partnership is needed for the development and production of the product. For the set up of own production site investment and financing is sought from bank credits or from EU-funded programmes.

However, strategic partnership would be sought for going on international markets. The type of partnership would be determined by the conditions on the target markets and the existing potential partners on these markets, e.g. sales representatives, or marketing and distribution companies on the particular market, or partnership with local entrepreneurs, etc.

 

SECTION 3: The Competition

3a What is the competition within your target market?
As the target market would be the global  market, only few leading companies produce and offer similar products. These are primarily big industrial companies for production of chemicals. Such producers in the USA are “No Burn” and “Flame Stop”. In Germany the leading company in this field are “Boehme” as well as “Hoechst”.

 

 

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)

Lower prices based on lower production costs.

Preliminary estimations show that the product has 5 times lower price than that of similar products on the markets abroad.

This is due to the availability of the chemical components on the local market.

 

3c Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

Low price range.

As mentioned above, the price is 5 times lower than that of the leading products of similar type on the international markets. So there is potential to offer Interiorprotect’s product on the market at much lower prices compared to the competitive products even though not 5 times less.

 

 

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 product is sold on the free market. This market is constantly growing as many more countries increase their regulations and requirements with regards to increased obligatory fire resistance of a wide range of materials and surfaces.

 

 

 

 

SECTION 4: Indicators

 

Estimated cost of the new products EUR 5000/tone
Expected market volume (potential / maximum number of users) 10000 local market
Expected sales volume EUR 250 000/local
Expected market share of the company (proportion between sales and total company sales in the relevant market) 80 %

 

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