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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 partworths@gmail.com 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!