Potential market

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…
As a market-driven innovation the emergency mobile phone charger has already secured its place in the market grid.  The ability of the electromechanical construction to charge enough energy for a brief emergency call just by pressing a button makes it an excellent choice for critical situations, for use in the mountains and other distant regions. The simple design provides reliability and remarkable working characteristics in any environmental conditions and in wide temperature range. All this is achieved at an acceptable price for the end user.

 

 

 

1b What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
The product provides remarkable added value to the end-users. The buyer will get an emergency device, assuring his connection to the world, “no matter what happens” – lack of power supply, missing power supply, harsh climatic conditions, etc. All this incorporated in a small “cell phone size” box, lightweight, easy to use, environmentally friendly manufactured and at very decent price. In certain conditions this could be crucial for surviving. The charger could be also used for supplying power for different small electronic devices – for example a small radio receiver.  Due to its specific design the unit could be used even as a training device (expander) during the producing of charging power.

The most valuable point of the charging device is to be available in any moment and to be used even 1000 times, thus continuously supplying power day after day. The last feature reveals the “eco friendly difference” between this product and the similar, but disposable rivals.

The end user will benefit from the cheap and simple use of the product, suitable for persons of any age.

1c What is the Unique Sales Proposition of the potential product?
The great difference between the proposed charges and the rest of the competition is in its ability to supply continuous, high quality power even in extreme climatic conditions and temperatures from -25 to +55 Degrees Centigrade. The unique point of the model is the possibility to charge enough power for a short SOS call just by simple pressing of a button. The feature is very helpful in critical situations where time is of the essence. Thus, combined with products’ “multiuse” ability provides excellent starting point for developing an increasing market and stable demand.

As second, to be mentioned is the attractive price, suitable for users even in countries with low consumption power.

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.

For the first stages of development the efforts could be focused at gaining share of the national market. However the marketing is not limited nationwide. The reliable electromechanical construction at acceptable price makes the product an excellent choice. With significantly growing market of the cell phones, selling tenths of million units per year worldwide, the need of emergency cell chargers is growing every day. There are numerous similar rival charging devices nowadays, so winning a decent market share will not be easy. The Bulgarian national market is mainly focused on the minimum sale price of each product offered, due to the low buying power of the average user. The price of the proposed charger is quite acceptable and the development of the national market will depend on the correct marketing strategy. The expected end users of the device vary from individuals to organizations, dealing with extreme or accidental situations – such as electricity providers, servicemen, organizations and structures for protection of the citizens in case of disasters, industrial accidents, etc.

The implementations of the unit are numerous and diverse.

 

 

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

Many similar products exist on the market. The companies manufacturers vary from the cheapest Chinese brands to world famous multinational corporations such as Philips, Energizer, Varta, etc.  The technology used by the proposed product is widely used in the industry, however the technical decision is different from those of the rivals. The advantages of this phone charges is in its acceptable price and the helpful function of “one button charge”.

 

 

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

Emergency cell phone power supplies are becoming very popular last years. And the demand for such products will rise from day to day. Buying millions of cell phones per year worldwide the customer will need dependable “close at hand” emergency source of power for his communications.

After some modifications and further research the proposed product could be suitable also for charging small electronic equipment, such as radios, mp3 player, iPod devices, various USB charged electronics.

The future boost in use of small electronic devices of any kind guarantees the development and broadening of the market of the emergency power suppliers/chargers.

 

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 product is in the second stage – growth, spreading widely at the market, since the demand for emergency phone chargers grows from day to day. With the help of correct marketing strategy and with broadening of the implementation, the product can count on a decent share of the market.

2e Strategic partnerships (existing or potential).
The future company will need a potential strategic partner for investing in manufacturing equipment, necessary for starting a small sized production – up to 20,000 pcs per year for the beginning. This could be a strategic investor or a similar company, interested in the know-how and the product itself. Since the initial investment is not so big, the future charger manufacturing company could seek a kind of grant or other type of EC financing to start.

 

SECTION 3: The Competition

3a What is the competition within your target market?
There are different types of emergency phone charges known at the world market. Basically they could be divided in three major groups – hand-wound chargers, solar powered chargers and other chargers. The hand-wound might be small, reusable, and environmentally friendly, but you never got a decent cell phone charge from the device. Tough to crank; several minutes of cranking gives only a few minutes of phone life; won’t work on a completely dead phone battery. The proposed unit is also of electromechanical type, though similar to the hand-wound, but with different movement.  And it missies the bad points of the mechanical types – the efforts for charging are little, charges efficiently and quickly. The solar powered ones have a compact design; delivers ample charging time; internal battery can be charged from the sun. High functioning, the solar charger kit is great for power in a sunny day. They are also relatively big, would not fit in a pocket. The most impressive representative of the other type is the CPS Cellboost – light, with dimensions just like a petrol cigarette lighter, it delivers more than an hour of talk time; can make calls while the device is attached to your phone. And the selling price is around 10 USD – extremely attractive. The bad point for it is that once used, it can not be recharged, doesn’t have battery gauge to control the remaining charge.  However very few of the devices can operate in such temperature range from -25 up to +55 Degrees Centigrade.

 

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)

The new product uses a well known technology, but in different way. The main advantages of the product or the low production costs (which makes the product eco-friendly) and the wise technical decision for a brief charge of a power, enough for a short SOS call with a simple push of a button. So the product’s main advantages could be seen in its differentiation.

 

 

3c Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

Due to the high amount of types and varieties of emergency phone chargers, offered at the market, and the low cost of the product, this emergency device could be related to the low price range. The main goal of the manufacturer will be to gain enough market share and to manufacture/sell larger number of chargers. As second – the diversifications of the possible implementations of the charger could lead to a significant growth in the production.

 

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

Potential product could be marketed either to the regulated or free negotiation markets. The device could be very interesting as equipment for the service and emergency squads of the big companies – heat suppliers, electrical power suppliers, telecommunication and wood industry, etc. Every situation can turn into an emergency one – so this emergency unit could be useful literally everywhere. Because of its relatively low price it would be available to all the people interested and not excluding individuals.

 

SECTION 4: Indicators

 

Estimated cost of the new products Up to 28 EUR/pc.
Expected market volume (potential / maximum number of users) 100 000 pcs/year
Expected sales volume Up to € 1,65 mill annually
Expected market share of the company (proportion between sales and total company sales in the relevant market) 15-20%

 

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