Ravi Yalamanchili | Seungwoo Peak | Shanawaz Janmohamed |
61119031 | 61119036 | 61119007 |
1. Product Concept– Core Benefit Proposition
This compact, lightweight and portable “Swisse™ mini-fridge” allows chronic diabetics to store insulin at cool and safe temperatures while at work and on travel, providing immediate access to insulin when needed. It also reduces privacy issues as there is no longer a need to place the insulin in a ‘shared’ refrigerator at work. With portable universal recharger and longer lasting battery, the mini-fridge can be charged on travel and less frequently.
2. Target Market
The total market potential will be 12,636,000.
<Market potential result and assumptions>
5. Segmentation Analysis
To identify the segments in the market, we have conducted a survey. The survey has following questions.
1. Do you actively seek-out new innovations related to insulin administration?
2. How often do you require the administration of insulin?
3. I tend to plan my daily activities around insulin administration…
4. How important is it for you to have immediate access to insulin?
5. How important is it for you to maintain your privacy regarding your need for insulin administration?
6. If a portable mini-fridge was available to carry my insulin, I would find it beneficial
7. If a portable mini-fridge was available to carry my insulin, I would be willing to adopt it
All of the answers were scaled in five points. The survey was given out to 30 people who have diabetics. Given that the product concept is new to the market, we assumed that the clusters in the market will not be many. We conducted the segmentation using three clusters. The result, however, showed that there were two significant segments. Therefore, we conducted the segmentation using two clusters.
To match the segmentation result to descriptor variables, we used the descriptor data from the survey. The questions to identify the descriptors are the following.
8. Please provide your age:
9. Please indicate your highest level of education:
10. Please indicate your annual income level before tax(US $):
11. Please provide your gender:
12. Please indicate how often you travel (work related and/or personal):
13. Please indicate how you currently store your insulin vile:
These are the results for descriptor analysis.
There were significant differences in age, income level, and travel frequency between the segments. Using the both results from segmentation and descriptor analysis, we came up with two segments with their name and descriptors. The first segment tends to have slightly lower income level than the other segment. On the other hand, people on the first segment travel a lot compared to the second segment, and thus portability was important. The first segment was predicted be more cautious about their privacy regarding the disease. We have named the segment ‘Privacy Seekers’. The second segment travelled less and was older than the ‘privacy seekers’. The segment was predicted to seek more convenience in using the product. We have named them ‘Convenience Seekers’.
<Segmentation final result>
6. Conjoint Analysis
To identify the benefits customers perceived in comparable terms, we have conducted conjoint analysis. We have excluded price as one of the attribute, due to the lack of reference price among customers. Following bundles were given to the sample group to get the data for conjoint analysis.