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…

The research result is a radically new product, based on an ecological technology, implying the gas-thermal-dynamic processing of the pressurized air in vortex field. Thus, the present Freon air-conditioning installations polluting the environment can be replaced.

The product is an invention, fact confirmed by the State Office for Inventions and Trademarks – OSIM Bucharest, which granted the patent RO 122506 B1/2009.

At the same time, the Gold medal was awarded for the product at the International Fair for Inventions, Scientific Research and New Technologies, INVENTICA 2009, Bucharest, Romania.

1b

What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …

The research result is a complex one, having many scientific, technical, economic and social objectives, in accordance with the strategies of European research programmes.

It achieves the connection with other interdisciplinary fields, making possible to take over conceptive or technological peak achievements, for carrying out new air conditioning equipment, for promoting efficient and clean energy technology and reducing the green house effect gases.

The research result promotes clean energy technologies, decrease of green house effect gases and consequently, a higher quality for environment, health, life.

1c

What is the Unique Sales Proposition of the potential product?


Detailed comment

The necessity to develop efficient and ecological technologies and products is justified by the need to limit drastically the gas emissions and to diminish the devastating consequences of climatic changes.

The Decision of European Parliament from 06.04.2005, Brussels, regarding the Framework Programme FP7, states that researches and demonstrations are needed for supplying the most cost- effective and ecological technologies, and that it is necessary to take measures allowing EU to reach its targets set by Kyoto protocol.

In this respect, promotion of a reversible (cold/heat) energy source assuring the protection of environment, life and health is the main directive

SECTION 2: The Market

2a What is the target market for the product?

National ¨

European ¨

Global ¨

Please describe the characteristics of your target market.


Select and comment

The research result addresses to a wide spectrum of consumers from the goods and services market: household consumers, public institutions, companies from different industry sectors (e.g. automotive industry, household appliances industry etc.)

The economic aspect consists in broadening the services offer, both at domestic level and at regional and European levels. The Romanian economic environment will benefit indirectly from the research result, by means of the innovative companies opened to the assimilation of new technologies and products. Under the circumstances of imposing, by world agreements for environment protection, the reduction of Freon air conditioning apparatus manufacturing, a prospect with huge economic benefit could be opened to the ecological air conditioning technology with pressurized air.

In the case of household consumers, the people with medium and high income, receptive to the new technologies, are taken into account. Having in view also the geographical distribution, the product is preponderantly intended for the city dwellers.

2b
Detailed comment

The companies which manufacture air conditioning installations are concerned with the pursuit and analysis of competitive companies, with a view to identifying the main elements characterizing the behavior in the consumption and purchase of main customer segments. One of the present trends in the company-customer relationship is the development of some long-term relations, aiming at customer loyalty.

Viewed in terms of environment requirements, market characteristics, consumer needs and wishes and taking into account the technical characteristics and performances of the product, the research result can be considered a basic product.

So, the product can be put into production by all the companies from the respective industry, and even in other activity fields.

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


Detailed comment


The product is the most important element of the marketing mix and the products are defined for fulfilling the needs and wishes of the consumers from the market; the product is considered from at least two perspectives: “what I sell” –representing the bidder’s point of view and “what I want” – representing the customer’s point of view.

In Romania, air conditioning installations which use non polluting coolants, such as compressed air, are not manufacturing yet. The Romanian market, like the world market, commercialize installations manufactured by companies as  Whirlpool, Sanyo, Vortex, White-Westinghouse, Romstal, etc. All these installations are achieved by cooling technology with Freon-type coolants, gases which pollute the environment.

Besides, these companies could be interested (as potential manufacturers) in the new product.

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)


Detailed comment

The project, which was the basis of the research result, develops a new and ecological technology where the refrigerating and thermal power in the installation is assured by means of some “pneumatic vortex generators” based on the effect of separating the energy of an incident flow of compressed air, in  a vortex field, into two flows: a cold one and a hot one (Ranque-Hilsch effect)

The gas thermal dynamic effect of  separating the energy of an incident flow of compressed air, in  a vortex field, into two flows (cold and hot) is extremely complex and not entirely elucidated; the description is done by using both well known physical-mathematical relations and many quantities and criteria derived as a result of experimental researches.

Consequently, the product is based on a new technology, the current stage of the product’s market life cycle being its implementation.

2e Strategic partnerships (existing or potential).
Detailed comment

Although there is a rather high competition on the market as regards the air conditioning installations, the product has a defined target group and brings the ecological feature which, in the context of European requirements, represents a need for the companies and industry sectors.

At present, there is no strategic partnership for promoting this new product on the market.

SECTION 3: The Competition

3a What is the competition within your target market?


Detailed comment

The target market is developed and activates many manufacturing companies in the field of air conditioning installations, which are achieved using a technology with Freon (Chlorofluorocarbon) type coolants.

The research result has appeared as a necessity with a view to drastically limiting the gas emissions and diminishing the devastating consequences of climatic changes.

The product is an ecological air conditioning installation based on an unconventional technology and represents an alternative for the present classical installations with Freon, which contribute to the environment pollution by destroying the stratospheric ozone layer and accelerating the green house effect .

3b What competitive advantages will the introduction of the new product ensure?

• lower prices based on lower production costs

• product differentiation (uniqueness of the product proposal)

Detailed comment

As regards the production costs, the new product imposes prices by 30-35% higher than the similar classical products.  .

Having in view the novelty and originality nature of the product, this represents an advantage against the other products, so the introduction of the new product will generate a competitive advantage based on product differentiation.

When a product is differentiated by a competitive advantage, the product is valorized by the consumers  as being a better one or as a different one against what the competitive companies offer, the costs are no more in the spotlight, and the value added by the product uniqueness allows setting a high price.

3c Potential products relate to the following price range:

• High price range

• Average price range

• Low price range


Detailed comment

The product falls into the class of average price products. At least in an initial phase of launching it into manufacturing, the production costs, which will be higher, should be taken into account. The additional costs related to research, designing, achievement and testing should be also taken into consideration.

After putting it into production, the decrease of the production costs as a consequence of the increase of sales is taken into account. The costs should be correlated also with the number of the products manufactured in a first period, number which will increase significantly in the next years.

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


Detailed comment

For promoting the product, an adequate strategy is necessary to be applied in the marketing field; in this respect, we recommend the attracting strategy focused directly on the final consumer and applied preponderantly to consumer goods, using widely the advertising.

The way of combining advertising with sales promotion could also assure the customer loyalty. The product life cycle modifies the place and role of the promotional tools. Thus, in the stage of entering a new product, it is necessary to send messages for making known the product characteristics, for informing the potential buyers; in the extension stage, the sales promotion is imposed.

Sales promotion is aimed at reaching some clear and concise goals, concretized in specific objectives determined by the conjectural situation on the market, too.

SECTION 4: Indicators

Estimated cost of the new products 600 euro/buc.
Expected market volume (potential / maximum number of users) 100000 buc.
Expected sales volume 2000 buc./an
Expected market share of the company (proportion between sales and total company sales in the relevant market) 6 %

KEYWORDS QUANTITATIVE ASSESSMENT (0-5).

Evaluarea cantitativă (0-5)

Please put X as appropriate. 1 2 3 4 5
Added-value potential


X
Size of future market demand


X
Competitive positioning of the product X

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