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…
Note: Select and explain for one of above options or (in case of non relevance) define another. We try to identify why this potential product constitutes an innovation offer
 

The innovation potential of this product is related both to technology-driven and market-driven innovation.

 

On one side, Innov@ctors staff has developed know how and research experience in security systems within the Dynamic Systems Laboratory (Department of Electrical, Management and Mechanical Engineering of the University of Udine).

 

On the other side, the need for car’s safety is rising. After the introduction of electronic systems like stability control system, electronic brake-force distribution, side curtain airbags, etc., the R&D result is a kind of recorder, sometimes referred to as “black box”, useful in order to record information like the speed of the car, whether the driver was applying the brakes and other facts that can be downloaded and analyzed.

 

 

 

 

 

1b

What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
Note: Select and explain for one of above options or (in case of non relevance) define another. We try to identify what new this potential product constitutes in accordance to the existing market status.
 

The added value for the end-user are better technical characteristics of the product.

More in detail, Virtual Watchdog provides more advanced functionalities than the competitors systems.

 

 

 

 

1c

What is the Unique Sales Proposition of the potential product?
Note: What makes your product unique in marketing terms? This helps your prospects to understand why they should buy from you rather than other existing product options.
 

An innovative safety system for cars. The device, a kind of “black box”, like those on airplanes, records events from five to 30 seconds before a crash, and soon afterward.

It notes audio, video and GPS data. Information like the speed and the position of the car are memorized in a flash memory and could be read exclusively by authorized authorities.

 

 

 

 

 


SECTION 2: The Market

 

 

2a

What is the target market for the product?

National ¨

European ¨

Global þ

Please describe the characteristics of your target market.

Note: Define the market range, the size of the target market (if possible) in terms of maximum product units
 

The product is targeted for a global market.

The system can be used within any kind of vehicles: cars, trucks, special vehicles, …

In this sense, the system is directed to corporate and rental fleets (with specific reference to the luxury cars segment), CIT sector or vans for valuable goods transport, machinery and special vehicles and logistics operators in general.

 

 

 

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

Note:
 

The product can be considered as “leading”.

Other companies produce this kind of system, but with less functionalities. Some existing products on the market allow to detect only the position of the vehicle, as the offer of Viasat, and Movitrack Octotelematics. There are other companies such as GE Security and Videotecnologie realizing video application systems mainly oriented to the field of public transport (taxis, buses, subways, train stations, etc..).

 

 

 

 

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

Note:
The product satisfies an existing demand of security.

With the increasing number of vehicles on the road, as well as increasing traffic congestion, traffic accidents is also increasing. However, after a traffic accident, often the responsible party is hard to say.

The event data recorder (EDR), as the black box is officially called, is slowly gaining an important role in investigation of car accidents. Despite the fact that some people have expressed concerns about privacy issues, car black boxes are not helpful for car accident investigators and insurance companies only. By recording the events and actions of the driver including speed, braking, turning, etc. seconds before the collision, the car black box will help both the police and insurance companies in reconstruction of the events before the accident but it will also bring a number of benefits for the car’s owner. Civil groups that are concerned about these black boxes incriminating the driver are of course right but imagine that you were involved in an accident that was not caused by you on an isolated road without any witnesses present.

 

 

 

 

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)

Note: At this point we refer to the life cycle of the market related to the product. I.e. a product based on a new technology area (e.g. solar energy cars) is considered to be in the first phase of the life cycle when e.g. a typical TV set is in the maturity phase
The current stage of the product’s market life cycle is Growth.

The event data recorders are already installed in cars although many people are unaware of having such device installed. The first one was installed already in 1996, while as much as 70% to 85% of new cars come with installed car black boxes. These are not visible because they are under the seat or dashboard and activate about 5 seconds before the senses trigger activation of the airbags. Car black boxes were originally created to determine the cause of airbags’ activation but they collect several data of the driver’s actions including the speed which has made them very useful for reconstruction of accidents.

Video data event recorder is a special type of car black boxes, which are used by the drivers voluntarily. These are installed on the windshield and feature a camera as well as a GPS unit and collects the performance data such as accelerating, braking and turning. The data is stored automatically to a secure digital (SD) card similar to those that are used in digital cameras and can be reviewed on a computer. This type of car black boxes is even more accurate than those that are currently being installed in vehicles because it also records the time, location and direction of the driving as well as the driver’s view which makes it very helpful for a number of hard-to-prove situations.

 

 

2e

Strategic partnerships (existing or potential).
Note:
 

At the moment there are not existing partnerships for the system’s development.

A partnership with a car manufacturer should be useful for the integration of Virtual Watchdog in the cars.

 

 

SECTION 3: The Competition

 

3a

What is the competition within your target market?
Note: Refer to other companies producing the same product
There is a number of companies that develop video data recorders, but a limited number of them produce a system with the same features of Virtual Watchdog.

Some examples are:

  • GE Security: The GE Security MVS-4-GPS is designed specifically for todays tough and demanding transport surveillance requirements. This ruggedised recorder can stream near real time video from a moving vehicle, be it a bus, train, car etc directly to a control room or even to GPRS equipped PDA’s or mobile telephones out in the field. Built in GPS (Global Positioning System) receiver gives the controller real time co-ordinates on a moving map so the exact vehicles location can be monitored at all times.

 

  • Movitrack: offers telematics solutions to protect vehicles from theft and ensure the safety of occupants. Automatic reporting of incidents and georeferenced technology will make the medical and technical emergency services more efficient and effective. In collaboration with car manufacturers, Movitrack revolutionizes the roadside assistance services, resolving the problem through remote diagnostics which enables roadside assistance on the spot instead of the traditional recovery to a garage.

 

  • ViaSat: is Europe’s leader in mobile phone / GPS telematics systems installed on board vehicles for protection against theft, providing technical and medical assistance, as well as protection against acts of aggression (carjacking).

 

 

 

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)

Note:
The introduction of this system in the market will ensue lower prices and a product differentiation.

 

 

3c

Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

Note:
 

The potential price policy is low price.

 

 

 

 

 

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

Note:
 

The product will been marketed to free markets.

 

 

 

 

 

SECTION 4: Indicators

 

Estimated cost of the new products 1.340 €
Expected market volume (potential / maximum number of users) 700/2.400.000
Expected sales volume 1.400.000 for car virtual watchdog in the first 3 years
Expected market share of the company (proportion between sales and total company sales in the relevant market) 50%

 

KEYWORDS QUANTITATIVE ASSESSMENT (0-5).

Please encircle as appropriate.

 

 

Added-value potential 1 2 X3 4 5
Size of future market demand 1 2 X3 4 5
Competitive positioning of the product 1 X2 3 4 5

 

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