Tuesday, April 8, 2014

Convenient Cabins . A research in New Product Management


Convenient Cabins 
By Tony Habib



1.0 Introduction

            The United Arab Emirates is considered one of the most desirable places on Earth for sand-dune surfing and desert sports and activities. Most of the residents of the country and the adjacent ones, being citizens or expatriates, are enjoying this fact of having such adventurous outings near them. So many products were developed to facilitate these activities and make it easier and hassle-free; Water containers with small pumps for hand-washing, Ice-bags for keeping food frozen and beverages cold, disposable grills with easy-inflammable charcoal, etc.

            One of the most things that annoy these people is the need of a clean and accessible toilet, especially if they are going to stay more than one day in the trip.




2.0 PIC

2.1 Focus

             The number of off-road lovers and outdoor activities seekers are growing fast. Emerging from a market need, we believe that providing a solution for the toilet problem will be a pure success. Introducing this solution to the market will surely take the form of a product, and at the same time this market is greatly expandable. After proving success in the local market and making the required fine tuned to it, it can be mass-produced to supply a wider market.



2.2 Goals-Objectives

            Our goals from initiating this project will be:

1) To cover the expenses of the project of the first six months, and by the end of the first year to get profit from sales.

2) To refine the product and having it as a platform for other new products for off-road users.

3) To expand our market to the near countries then to the whole world.



2.3 Specific guidelines

            Our product will be first-to-market, so it has to have a very high degree of innovation. This innovation doesn’t have to use completely new technologies or totally innovated items, rather than that; the innovation can be in how to combine well-known, well-developed and available items together.

Another thing that has to be taken into consideration is that the municipal authorities have patrols covering everywhere even in the desert to fine people who throw garbage or left a place unclean. So our product has to overcome this problem especially that there are no bins in the desert; people are expected to carry their trash bags in their cars with them till reaching the first gas station where bins are available.

3.0 The concept

            Driven from a pure users need and developed for their benefits, the concept is simply: “a mobile toilet cabin”. The toilet seat is based simply on the beach chair folding technique, combined with the opening of an airplane toilet seat. So it can be folded easily to a small size to be easily carried on.

From the technology of diapers using superabsorbent polymers, the product will be supplied with disposable black square-ish plastic bag that is padded with the same absorbent material. This bag will have an elastic band along the edge to wrap the toilet seat easily so it keeps more hygienic standard. The cabin as well will have a small disposal machine (like the ones made for diapers) that will seal the plastic bag after use, shrink it, and wrap it again in another plastic bag to keep contained odor and bacteria.




The cabin itself will use the outdoor tent cloth and zipper, and will have a cubic rectangle shape with more space inside from the front than from the back of the toilet.

The cabin frame will be attached to the toilet seat folding system and will follow the same folding technique. Another idea is to use the expandable stick technique used in crutches to make the height of the cabin. After folding the whole system all together, it can be conveniently places into a bag made from the same cloth type of the cabin, to be easier to carry.





So, the consumer will buy the “cabin” itself for the first time, and then will buy the disposable toilet bags for the ongoing usage. Meaning that once a “cabin” is bought, we expect a demand on the “bags” to come after.



4.0 Market study

4.1 Target market

            Our target market is divided into three categories: off-roaders, fishing/swimming lovers and picnic lovers. Their demography is as follow:



4.1.1 Off-roaders (main focus, around 60% of our target)

- Single Emiratis, males only, aged 18-40 (40% of off-roaders)

- Single expats, males and females, aged 25-59 (30% of off-roaders)

- Young couples and newly married expats aged 25-40 (20% of off-roaders)

- They love staying in the desert for overnights; they are well equipped, their cars are loaded with up-lifts especially made for sand.

- They buy their goods from specialized stores; they love to look professional.

- Median income for expats 240,000DHS per annum, and for Emiratis 600,000DHS per annum.



4.1.2 Fishing/swimming lovers (secondary focus, around 30% of our target)

- Expats: young couples and families with one or two children (60%)

- Emiratis: families with up to three children + maids (20%)

- Singles, mostly males (20%)

- They are very picky and high when it comes to hygienic issues.

- They buy their stuff from common multi-stores; they are more practical and seeking easy solutions.

- Same median income as previous.



4.1.3 Picnic lovers (secondary focus, around 10% of our target)

- Expats: young couples and families with one or two children (70%)

- Emiratis: families with up to three children + maids (30%)

- They are mainly BBQing and play outdoor games; they are looking mainly for convenience and ease.

- Same median income as previous.



4.2 Expected buyers

            Our target market covers around 90% of active residents of the country, who are aged 15-59yrs. The UAE population is now almost 8,2millions, with a percentage of 82% in the above mentioned age range. Our target market consists of families and couples as well as singles (who are mostly expats), which cuts another 34% of buyers (couples will buy only one piece). The preliminary calculation of expected buyers is:

8,200,000 x (82/100) x (90/100) x (66/100) = 3,99million.





5.0 The protocol

            5.1 Target market: Primary Off-roaders and secondary other outdoor activities lovers.

            5.2 Product positioning: An easy to carry, easy to use and highly hygienic toilet cabin made for outdoor use.

            5.3 Product Attribute: mentioned in 3.0

            5.4 Competition: none.

            5.5 Augmentation dimensions: Warranty, offers for toilet bags packages, online ordering.

            5.6 Timing: First, if expansion plan (international sales) approved it has to be carried in the second year not farther.

            5.7 Marketing requirements: • Launching has to be at the end of summer, almost the first of October (that’s when all outdoor events and activities are most desired) • Launching announcement must be made mainly in off-road specialized stores, then in common multi-stores (eg. Carrefour). • In the first six months we need to sponsor six to eight different outdoor activities. • Sales force for bags is needed.

            5.8 Financial requirements: Break-even is expected by the end of the sixth month.

            5.9 Production requirements: • Inventory of “cabins” must be ready to cover at least 15% of the target market by the time of launching, and 30% of “bags” supply. •Hinges, zippers, wildings, plastic and cloth must all meet the quality standards.

            5.10 Regulatory requirements: none

            5.11 Corporate strategy requirements: As our first product we aim to establish it as a must-have in every home, so our brand is well-known when we launch the next new product.

            5.12 Potholes: • Getting fast market demand. • The need for many demonstrations so people will know how to use the system. • The relative light weight of the cabin when the desert gets windy.





6.0 A-T-A-R study

• Potential target market: 3,99million

• % of people we think can be aware of the product’s existence: 90%

• % of customers likely will try it during the first six months: 45%

• % of customers that will buy another cabin as a gift, or for big groups, etc.: 10%

• Revenue per device, after promotion discounts: 180AED.

• Unit cost at the intended volume of launching: 100AED.



Profit forecast  = 3,99million x .90 x .45 x .10 x (180-100)

                        = 12,927,600AED




7.0 References



(1) Crawford C. M. and Di Benedetto, A. (2008) New Porducts Managements, 9th edition, IrwinMcGraw Hill.


(2) http://en.wikipedia.org/wiki/Superabsorbent_polymer



(3) http://www.uaeinteract.com/docs/Population_leaps_to_8.19_million/41204.htm



(4) http://www.learningcurve.com/product/detail/Y7010A2?locale=en_US

By Tony Habib 

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