S NOOZ E AR S YSTEMS, LLC F EASIBILITY D ECISION : I NFEASIBLE Team Indigo.
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SNOOZEAR SYSTEMS, LLC FEASIBILITY DECISION: INFEASIBLE Team Indigo
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Transcript of S NOOZ E AR S YSTEMS, LLC F EASIBILITY D ECISION : I NFEASIBLE Team Indigo.
SNOOZEAR SYSTEMS, LLCFEASIBILITY DECISION: INFEASIBLETeam Indigo
FOUNDING TEAM
David Bui – Chief Executive Officer (CEO)
Mustafa Younus – Chief Operating Officer (COO)
Karla Alvarez – Market Research Analyst Joseph Nelson – Chief Technology
Officer (CTO) Sarah O’Brien – Chief Financial Officer I
(CFO) Lindsay Duggan – Chief Financial
Officer II (CFO)
PRODUCT DEFINITION
Alarm clock with wireless ear budsEar foam for comfortable sleepEar buds fit into ear canals for noise
reduction, rubber molds for different size ears included
Bluetooth technology iPod® ReadyEar bud rechargeable by docking
into the SnoozeStationMSRP $120
BUSINESS CONCEPT
Customer definition Ages 16 – 34Distribution alternatives and
innovationsSpinoffs/ GrowthHow are we going to make money?
FEASIBILITY ANALYSIS Product Concerns
Flaws in design require redesign before prototype is built
Royalties for prior patent and product integration
Financial ConcernsLow per-unit marginHigh capital requirements
Buyer ConcernsLack of interestProduct price is higher than what buyers are
willing to pay
INDUSTRY ANALYSIS
NAICS/SIC codeMore weaknesses than strengths
The industry is in a declineMajor industry leaders overpower
the marketPorter’s 5 Forces and Pest
Analysis show high barriers to entry
R&D and investment funds are limited due to competitive advantages
MARKET ANALYSIS
Urban and College environments Secondary Research
Market size projected at 1.2 millionTarget demographics between ages
16 – 34 represents 21% of the U.S. population
Primary Research50% say it’s a minor improvement36% would pay $75 for SnoozEar
Survey - product is not feasible, improvements are needed
PRODUCT ANALYSIS
Design FlawsPhysical
(spatial) limitations
System powerProduct Redesign
May change cost feature
May increase time to market
DEVELOPMENT TIMELINE
FINANCIAL ANALYSIS
Manufacturing cost per unit - $59.95Final retail price - $120Royalty rate - 4.2% of revenuesBreak-even at 1,667 unitsTotal cash needs - $373,225Potential product improvement year 3
- price increase to $130Change of priceDecline of salesUnexpected demand
QUESTIONS?
