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…
The innovation potential of the product could, under a number of assumptions, be considered as one replacing an existing product. Actually, in contrast to the general light emitting art products based on phosphor paintings or on organic LED, the present product is claimed to be unique by combining optic fibers with paper and LED. Yet, it can be assessed neither as a technology-driven nor as a market-driven innovation but simply as a variety, replacement, alternative to the other products having a similar, though not identical, effect and outlook.

 

 

1b

What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
The added value for the en-user is the specific effect and aesthetic outlook that the product has. The novelty for the user is the combination of optic fibers with paper, which creates a different image and visual perception compared to a phosphorous analogue for instance. Apart from the optic fibers incorporated into the paper, the remaining is simply a matter of design.

As additional added value to the end user of the product could be considered the following eco, environment-friendly features:

-          the product is made of recycled paper

-          the light comes from LED, which is also an energy-efficient source of light.

 

 

1c

What is the Unique Sales Proposition of the potential product?
The product holds two unique features:

-          on the one hand, one and the same picture has two totally different outlooks – one outlook in daylight, and a completely different outlook at night.

-          Besides the aesthetic perception, the product also has a very practical application – it may serve as an additional weak light at nighttime, i.e. in dark rooms. It is a highly energy efficient source of soft light in the dark, and is at the same very aesthetic.

 

 

 

 

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 product has good potential to target the European market. This is due mainly to combining aesthetic benefits of the product along with practical application – the soft light it provides a room with when dark. As this combination would better be perceived and recognized on the European market rather than on the national one, the product is deemed to have better sales on the EU 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 key product on the market. Though in its development stage, it has proven its potential. The market does not offer any other analogues similar to the present R&D result. The market offers pictures and wall papers that emit light mainly on the grounds of phosphorous paints and/or organic LEDs. It offers no product where the light emission is based on incorporating optic fibers into the paper, moreover recycled paper.

 

 

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

Having I mind that the product would be a new one for the market, a key product, it would respond to a hidden demand on the market. The market of such products would have to be developed by promoting the advantages of this product in comparison to the ones based on phosphorous light for instance, and one of the strongest advantages of the product it the different outlook it has during day and at night.

 

 

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’s market life cycle is in its very initial stage – it has to be implemented in production. One of the key specifics of the production of this product is that it would be tailored to the client’s demand on a case-by-case basis. The decoration it provides at present could either be used as a picture in a frame, or as a cover of a bigger service upon individual order, individual elaboration. At present the product is not ready to be sold as wallpaper roll-ups for instance – they would have to be tailor-made in line with the requirements of each client.

 

 

2e

Strategic partnerships (existing or potential).
Partnership could be sought with regards to industrial design – to see where and how this technology could be implemented in industrial production. The technology has the potential to be applied in a variety of products – framed pictures, decoration layers of large size, may be in a form resembling wallpapers, etc. Thus many new products could be developed on the basis of this technology of combining optic fibres with paper and decoration prints.

Partnership could also be sought with a market specialist – to assess which products woud have higest sales potential. Industrial designers could then be assigned with the  task to develop one or more categories of these products.

Designa dn archtectural studios would also be interested in this product and their strategic partnership could likewise be taken into consideration.

 

 

 

SECTION 3: The Competition

 

3a

What is the competition within your target market?
If taken the wide market of interior decorations, the competition is quite strong. If talking about the product and its uniqueness, the competition would well be overcome by promoting the products advantages and benefits in comparison to other decorative products. Due to the fact that this is an art product and its perception is highly subjective, the competition may prove to be strong or not that strong depending on the efficiency and adequacy of the marketing and promotion tools to be used.

 

 

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)

Product differentiation is the one to draw the attention of the end-user. The product holds two unique features:

-          on the one hand, one and the same picture has two totally different outlooks – one outlook in daylight, and a completely different outlook at night.

-          Besides the aesthetic perception, the product also has a very practical application – it may serve as an additional weak light at nighttime, i.e. in dark rooms. It is a highly energy efficient source of soft light in the dark, and is at the same very aesthetic.

 

 

3c

Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

The product is expected to fall in the average price range. The main material of the product is recycled paper. The components that form the cost of the product, are the optic fibers and the LEDs. The novelty the researcher has developed is the way in which the optic fibers are integrated into a three-layer paper, applying no glue at all.

 

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 will be sold on the free market, it will be marketed on the principle of free negotiation.

 

 

 

 

 

SECTION 4: Indicators

 

Estimated cost of the new products At this stage – N/A
Expected market volume (potential / maximum number of users) N/A
Expected sales volume N/A
Expected market share of the company (proportion between sales and total company sales in the relevant market) N/A

 

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