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8/2/2019 Swisse Insulin Mini-fridge
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Template for Team Project Presentation
Please prepare a presentation for about 10-12 minutes,based on the following slides.
Your presentation must be sent to [email protected] by 6am on Tuesday, November 9. You should also include(a) Segmentation data (i.e. the Basis and Descriptor datathat you collected and used for Cluster/Discriminant
Analysis, and (b) Partworths data (i.e. the estimatedpartworths for each respondent after you completedConjoint Analysis).
DO NOT DELETE
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Swisse™ Insulin mini-fridge
Shanawaz JanmohamedSeungwoo Peak
Ravi Yalamanchili
Entrepreneurial Decision Making
Section B Group 10
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Swisse™ Insulin mini-fridge
Core Benefit Proposition
Compact, lightweight and portable Swisse™ insulin mini-fridge Allows chronic diabetics to store insulin at cool and safe temperatures while at
work and on travel (away from home)
Provides immediate access to insulin when needed
Reduces privacy issues as there is no longer a need to place the insulin in a‘shared’ refrigerator at work
With a portable universal recharger and longer lasting battery, the mini-fridgecan be charged during travel and less frequently
Broad Target Market Diabetics living in urban areas with middle to high income
Approximate Price Mini-fridge with five cartridge storage capacity with longer lasting battery
retails at Rs 4000
Mini-fridge with three cartridge storage capacity retails at Rs 2500
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India
Urban
Diabetics
Type I
Income
Low
Middle
High
Type II
Income
Low
Middle
High
Rural
Diabetics
Type I
Income
Low
Middle
High
Type II
Income
Low
Middle
High
Market Potential Estimation – Chain Ratio Method
Country: INDIA
Population 1,170,000,000
Urban 30.00%
Rural 70.00%
Urban Pop. 351,000,000
Rural Pop. 819,000,000
Current Diabetic Pop 83,070,000
Urban (12% of urban pop) 42,120,000
Rural (5% of rural pop) 40,950,000
Type I Diabetes Pop. 33,228,000
Urban 16,848,000
Rural 16,380,000
Type II Diabetes Pop. 49,842,000
Urban 25,272,000
Rural 24,570,000
Market Potential
Urban Type I Pop 16,848,000
Middle Class (45%) 7,581,600
Rich (30%) 5,054,400
Market Potential: Urban Type I Diabetic Population (Mi 12,636,000
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Price Point – Price Sensitivity Meter Value based price for insulin
mini-fridge was estimatedusing price sensitivity meter
Customers were asked fourquestions relating to twodifferent bundles
However, this method mightunderestimate the price asrespondents have no‘reference’ point to relate to
Optimal Price
Base Product Rs 2500
Premium Product Rs 4000
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Selection of Segmentation Questions
B a s i s Q u e s t i o n s
D e
s c r i p t i v e Q u e s
t i o n s
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Cluster Analysis Results
Surveyed 30 target customers using questionnaire consisting of key basis and descriptorvariables
Cluster and Discriminant analysis was undertaken for various key variables
Name: Privacy Seekers
Age: Mid to Late 30's
Income: Rs 45,000 - 59,999
Travel: 6-10 Times per Year
Storage: Fridge
Segment 1
Name: Convenience Seekers
Age: Mid 40's to Early 50's
Income: Rs 60,000 - 79,999
Travel: 1-5 Times per Year
Storage: Cooler
Segment 2
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Attributes and Levels Used for Conjoint Analysis
Attributes and levels for each attribute
Number of cartridges – 3, 4, 5 cartridges in a single unit
Size of mini-fridge – size of a 10 rupee note, 100 rupee note, 500 rupee note Battery capacity – 12 hours, 24 hours
Number of Cartridges Size Battery Capacity
3 Size of a 10 Rupee Note 12hrs
4 Size of a 100 Rupee Note 24hrs
5 Size of a 500 Rupee Note -
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Results of Conjoint Analysis - Partworths of Respondents
Respondents' Preference Partworths
Respondents' preference partworths. The most preferred profiles sum up to 100, the least preferred to 0.
Respondents /
Attributes and Levels
3 4 510 Rupee
Note
100
Rupee
Note
500
Rupee
Note
12hrs 24hrs
Respondent 1 80 0 10 0 11 11 9 0
Respondent 2 46 58 0 31 0 38 4 0
Respondent 3 31 18 0 55 1 0 0 14
Respondent 4 41 36 0 9 0 30 0 29
Respondent 5 28 41 0 51 54 0 5 0
Respondent 6 44 31 0 0 36 27 20 0
Respondent 7 43 30 0 21 0 32 25 0
Respondent 8 25 41 0 0 57 45 2 0
Respondent 9 0 0 12 0 38 11 50 0
Respondent 10 48 49 0 18 20 0 31 0
Respondent 11 41 13 0 43 42 0 16 0
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Preference Analysis - Preference Shares of 3 “bundles”
Attributes / Bundles Bundle 1 Bundle 2 Bundle 3 Bundle 4 Bundle 5 Bundle 6 Bundle 7 Bundle 8 Bundle 9
Number of Cartridges 3 3 3 4 4 4 5 5 5
Size10 Rupee
Note
100Rupee
Note
500Rupee
Note
10 Rupee
Note
100Rupee
Note
500Rupee
Note
10 Rupee
Note
100Rupee
Note
500Rupee
Note
Battery Capacity 12hrs 24hrs 12hrs 24hrs 12hrs 12hrs 12hrs 12hrs 24hrs
Bundle 3 Mini-Fridge 43.33%
Bundle 5 Mini-Fridge Deluxe 26.67%
Bundle 7 Mini-Fridge Traveller 30.00%
Preference Share using Max Utility Rule
Product Names
Mini-
Fridge
Mini-
Fridge
Deluxe
Mini-
Fridge
Traveller
Mini-
Fridge
Mini-
Fridge
Deluxe
Mini-
Fridge
Traveller
Respondents / Ratings Bundle 3 Bundle 5 Bundle 7 Max Max MaxRespondent 1 87 13 33 1
Respondent 2 58 35 18 1
Respondent 3 47 2 90 1
Respondent 4 78 33 6 1
Respondent 5 32 95 69 1
Respondent 6 88 60 11 1
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Market Penetration – Bass Model Forecast
Variables Description Value
p the coefficient of innovation 0.055
q the coefficient of imitation 0.244
N market potential for new product 12,636,000
n(t) number of adopters (unit sales) at any given time t
N(t) cumulative adopters (cumulative unit sales) up to time t
Item p-value q-value
Medical:
Ultrasound Imaging 0.000 0.000
CT Scanners (50-99) 0.036 0.375
CT Scanners (100+) 0.028 0.292Electrical Appliances:
Microwave Oven 0.002 0.357
Refrigerator 0.017 0.188
Consumer Electronics:
CD Player 0.157 0.000
Calculator 0.145 0.495
Average Values: 0.055 0.244
p and q Value Assumptions
Period n(t) N(t) Available Customers (N-N(t))
1 694,980 - 12,636,000
2 816,911 694,980 11,941,020
3 936,398 1,511,891 11,124,109
4 1,041,679 2,448,289 10,187,711
5 1,119,031 3,489,968 9,146,032
6 1,155,465 4,608,999 8,027,001
7 1,142,366 5,764,463 6,871,537
8 1,078,758 6,906,829 5,729,171
9 972,451 7,985,587 4,650,413
10 838,125 8,958,038 3,677,962
11 693,069 9,796,163 2,839,837
12 552,637 10,489,232 2,146,768
13 427,375 11,041,869 1,594,131
14 322,422 11,469,244 1,166,756
15 238,577 11,791,666 844,334
16 173,953 12,030,243 605,757
17 125,449 12,204,196 431,804
18 89,745 12,329,646 306,354
19 63,830 12,419,391 216,609
20 45,209 12,483,220 152,780
Rate of market penetration for insulin mini-fridge was calculated using estimate of market potential and‘p’ and ‘q’ of an analogous product that has product that has been previously estimated
From this model, it can be seen that peak sales in six years
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Conclusion
Market potential for Swisse™ Insulin mini-fridge in India
estimated to be approximately 12 million customers Base product, featuring 3 cartridges, 12 hour battery and
size of a 500 rupee note, to be retailed at Rs 2500 andtargeted towards privacy seekers
Premium product, featuring 5 cartridges, 24 hour battery
and size of a 10 rupee note, to be retailed at Rs 4000 andtargeted at convenience seekers
However, base product preferred by more than 44% of respondents, higher than any other combination andhence, will be released to the market prior to premiumproduct
We estimate six years to reach peak sales of 1.16 millionunits at any given time
…and become crorepatis!