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 idea is definitely a cost reduction one. Compacting the virgin snow into sturdy snow bricks will lead to saved space while loading the trucks. As second these bricks could be used for a temporary barrier, built at the critical places along the roads and serving as a protection against new snow deposits, thus spearing additional clearing costs. Since the technology is a new idea the innovation potential could be related also as leading to a new product.

 

1b

What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
The possible end user of the equipment, related to the proposed innovation will benefit of lower costs for snow removal and transportation, compared to those of the conventional technology. The pressed snow bricks are easy to load, with correct geometrical shapes, allowing utilizing fully the dump trucks volume. Also using them as a temporary building material for dams, protection barriers, temporary walls, etc. spares significant amount of money for the corresponding conventional raw materials.

 

 

1c

What is the Unique Sales Proposition of the potential product?
Easy loading, easy transportation, maximum utilization of the dump truck payload, reasonable building material during the cold winter conditions – these are the unique qualities the user can benefit. And all this is achieved from virgin snow, a product usually creating problems with its transportation and disposal.

 

 

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 of the equipment for snow pressing is mainly in the countries with harsh winter conditions and heavy snows. The world global warming continuously increases the number of these countries. For example 2011 was a year with heavy snows and global winter problems even for southern European countries. Even in Bulgaria we had thick snow cover, especially in the northern part of the country. So such equipment will be extremely helpful during such weather conditions.

 

 

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 extensive search in the patent data bases does not reveal analogical technologies, so the product could be characterized as a leading one. Some elements of the idea are applied by a very limited number of companies. The intellectual property research has found two similar ideas for snow compacting, strictly in order of lowering volume of the transported snow. However none of the rivals’ proposal describes production of bricks or geometrical form out of virgin snow.

 

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 world demand for such specialized equipment is constantly high and even increasing. Due to the above-mentioned this system has strong marketing potential in its specific field. If the future manufacturer manages to keep the product in the mid to low price range this will increase the chances for successful marketing.

 

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. The benefits of this idea are unmistakable and highly attractive for the future end users. The global warming effects also increase the future possible demand of such products, even in countries, not accustomed to winter problems in the near past.

 

 

2e

Strategic partnerships (existing or potential).
There no existing partnership at the moment, however the perfect partnership could be with a well-known automotive manufacturer of specialized vehicles for direct implementation of the end system, based on the proposed idea. The grant of a license agreement is also a possibility, but the best result could be a strategic partnership or joint venture. The company could also seek contacts with a specialized manufacturer of such specific equipment, such as Bobcat, Henke, Kassbohrer, etc.

 

 

 

 

SECTION 3: The Competition

 

3a

What is the competition within your target market?
The main competitors are worldwide well known manufacturers of specialized equipment such as Kassbohrer, Blizzard, etc. They are situated in Europe and USA mainly. So the main field of competition will be the European market. Most of the leading brand maintain extremely high prices, since the production is specific and highly specialized, often tailor made. So there is a chance for reaching a decent piece of the market if the equipment, based on the proposed idea, could be offered at a low sale price.

 

 

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 main advantage is in significantly lowering the transportation, storage and disposal costs of the removed snow. The pressed snow brick are excellent temporary building material for creating protective barrier at certain places along the roads, rivers, etc.

 

 

 

 

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. The lower sale price will help broadening the market for the system. Possible manufacturing in Bulgaria or other countries with cheap labor costs will be an advantage in front of the rival companies, most of them situated in Western Europe and USA.

 

 

 

 

 

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 specialized snow clearing trucks for example of the large snow removing companies contractors. A contract for direct implementation of the ready, manufactured by the researcher or joint venture company, system with a specialized automobile manufacturer is also a possibility.

 

 

 

SECTION 4: Indicators

 

Estimated cost of the new products 4500 EUR
Expected market volume (potential / maximum number of users) 1500/ year
Expected sales volume 1M
Expected market share of the company (proportion between sales and total company sales in the relevant market) 5%

 

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