Potential market


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 is partly market-driven innovation, due to the high demand for such products, but with its significant aid in production cost reduction, prolonged service life, it is also a cost reduction product. Among the main advantages is also the simple implementation with simple substitution of the regular clutch module, 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. It is also a direct replacement of existing product, helping to gain all advantages of the complicated and costly semi-automatic transmission at very low price for the customer.


1b What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
The automatic and semi-automatic transmissions, used nowadays, are highly engineered, costly and extremely complicated units, incorporating many fields of the science and techniques, such as mechanics of the fluids, high stage metalworking and very sophisticated electronics and programming.

On the contrary – the proposed substitute, the automatic clutch, is a completely mechanical design. This means more reliability, significant reduction of the raw materials, needed for manufacturing, thus noticeable decrease in the environmental footprint.

The end user will get an excellent analogue of the semi-automatic transmission and will also enjoy prolonged service intervals. Compared to the competing technology of the automatic gearbox, the automatic clutch will do the same job, but at a fraction of the cost.


1c What is the Unique Sales Proposition of the potential product?
The automatic clutch system is an excellent substitution to the complicated, heavy and costly standard automatic gearbox. This makes the module a unique proposal for those, who want to drive an automobile, having all the advantages of a semi-automatic gearbox, at a tiny fraction of the costs.

The proposed technical decision means direct profit for the potential user as well as the manufacturer of the system. The unique simple mechanical construction leads to very acceptable market price, help lowering the production costs of the manufacturing, reducing the environmental footprint. The unique point is mainly getting all the advantages of semi-automatic transmission without having to pay a lot of money for this. The unit is very attractive and helpful for disabled people satisfying the need of specially equipped automobiles.



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 is mainly focused at the national market to European. The acceptable price of the product plus easy implementation without major changes in the production batch line and the direct benefits for the user makes it an excellent choice for building in. The product is an excellent advantage to disabled people, allowing easy and highly cost effective modification even in already serving vehicles.

Due to the product’s low cost, it is extremely suitable for Bulgaria and other countries with low purchasing power. The easiness of implementation and the advantages of this unit could help promoting the automatic clutch to the European market.




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 could be characterized as a leading one, since the search has not revealed analogical designs. In fact, the utility model, used by this automatic clutch is unique and differs greatly from the models of the competitors. The intellectual property research held revealed several companies in Europe, manufacturing similar products, offered at the market at much higher prices than the NITI company module. Having in mind the possible high demand for such products, the competition influence could be considered as low. And the excellent price for implementation makes the development potential strong.


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 proposed technical decision will serve already existing marketing demand. The huge worldwide needs for lowering the consumption of fossil fuels, reduction of the environmental footprint of the manufacturers and limitation of the raw materials, used for manufacturing of the goods, have already traced the demand for implementation of the automatic clutches. Due to the above-mentioned this system has strong marketing potential in numerous fields – automotive, trucking, i. e. the innovation could be implemented on any batch production transport vehicle (cars, buses, trucks, fork lifting machines and many other).

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 current stage of the product’s market life cycle could be named as “Growth”. The product could spread easily within the industry, especially when matching specific criteria and technical needs of the different automotive manufacturers.  The direct benefits of the technical decision are also highly attractive for the manufacturer to boost the implementation in the automobiles. The recovery of the world industry is marked by increased demand of automobiles and related products and this is the great opportunity for the company to take part in this recovery and successfully start implementation of the product.


2e Strategic partnerships (existing or potential).
There no existing partnership at the moment, however initial partnership could be found in the face of the emerging automobile production in Bulgaria – The Chinese “Great Wall” company. The automatic clutch could be implemented, without any major amendments, in the new automobiles as a substitute to the standard one.  Further a big European automobile manufacturer could be interested in granting of a license agreement, 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 competitors with similar technical decisions are mainly well known large automobile manufacturers, such as Scania, Honda, MAN, etc. However their prototypes are complicated and expensive, electro-mechanical types. They have numerous patents, but are no match to the price range of the automatic clutch of NITI95. In the mid and low price segment the search has not revealed matches.  Also practically every type of technical decision, researched by the abovementioned leading manufacturers, is a specific one, aimed to serve particular, already existing needs of each company, i. e. further improvement of their transmissions and clutches.  The versatility and low cost of the NITI95 model is a significant advantage for entering the market.


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 proposed system could significantly lower the production costs, while the simplified design will lead to easier production and implementation. The unique technical decision allows this automatic clutch to simplify extremely the way turning an automobile from usual to a semi-automatic transmission one. An all this made at very acceptable price with virtually no modification to the overall scheme and construction of the car.  The proposed decision is quite different from analogical modules, achieving better characteristics than those of the competitors at significantly lower cost.


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 mid to low end of the price range. It will lower the production costs due to the lowered amount of materials for manufacturing, simplified design, thus lowering the labor costs. The implementation of the system is quite simple and the cost, compared to the standard automatic gearboxes prices, is excellent. All advantages of the automatic gearbox gained at a small fraction of its cost. This will directly lead to all benefits for the end user, making the product highly attractable for implementation.



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 products will be marketed to markets, operating on the principle of free negotiation between agents on the market. There is a good possibility for direct marketing of lots of the product, negotiating modification of the existing automobile fleets of the large companies – such as service and utility providing, postal, courier, transport and shipping. And interesting possibility for development is also a direct contact with a big taxi company for modification of their fleet. Also the main goal for long term development – implementation of large quantities in the production line of a strategic partner – automobile manufacturer.





SECTION 4: Indicators


Estimated cost of the new products  
Expected market volume (potential / maximum number of users) 20K-100K nationally
Expected sales volume Min. 3000
Expected market share of the company (proportion between sales and total company sales in the relevant market) 10-15%


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