Blog Assignment 6: Preliminary Idea Evaluation

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MARKETABLE:

To identify top 5 ideas for holiday decorations of the 10 that I had from last week, I run a survey on umn.qualtrics.com. I tried to keep it as simple as possible, but still get what I need from it, the survey asked only 3 questions:
1. Please choose the ideas for Christmas decorations that you can see yourself using: (I offer images of the 10 ideas with a short title here)
2. Please indicate how much money (USD) you would be willing to pay for the ornaments below;

And I added one more question to make sure participants have a chance to build on my ideas if they want to:
3. Would you like to add any comments / suggestions for improvement for some of the ideas above?

25 people participated in the survey, which gave me enough information to choose the top 5 ideas. Here they are:
1. The terrarium idea got 14 votes with an average of $ 14.3 that people would be willing to pay for it;
2. Collapsible ornament got 13 votes, with an average price for an item $ 5.2;
3. Fillable ornament received 12 votes, average price -- $ 6.6;
4. Projected ornaments got 10 votes, average price -- $ 34.2;
5. Decorative booze bottle got 10 votes, average price -- $ 9.5;

NOVEL:

A) Benchmark
For the 5 ideas I created a 2x2 matrices trying to find out a white spot of latent possibilities.

1. The terrarium ornament 2x2 matrix revealed 2 opportunities for a product: a high-end terrarium without a kit, and a low-end terrarium with a kit. Another observation that might be an opportunity for a product is that all of the terrariums out there are clear colorless glass. I think adding some color might make their designs more compelling. The terrariums themselves can be made out of color glass, or a color LED light can be integrated into it. Personally, I like the last idea most.

3_terrarium_2x2.png

2. I didn't find any collapsible ornaments on the Amazon, so I provide here a collection of goods from Amazon that have collapsible elements of some kind, which I can use later as an inspiration.

5_collapsible.png

3. For the fillable ornament idea I chose the following parameters for comparison: high-end vs. low-end, and 1-piece vs. 2-piece. As seen on the image below, I found the white spot of a 2-piece high-end fillable ornament in the top right corner (where the question mark on green background is). And I pasted the image of a 2-piece terrarium there to show how it might look. It only needs a loop to be added at the top.

1_fillable.png

4. For the projected ornament idea the 2x2 matrix identified 2 opportunities: high-end with transcendental ornament and low-end with non-abstract visuals (for example, candles, snow flakes, ornaments, etc.)

2_projection.png

5. The decorative bottle 2x2 matrix showed that neither in high-end nor low-end products that are currently on market, there is a combination of features of being edible (and/or drinkable) and a Christmas tree decoration at the same time. So it might be a good opportunity for a product.

4_booze.png

B) Below are the 5 patents that I found making my preliminary patent search on these 5 ideas:

1. Fillable

2. Collapsible

3. Terrarium

Collapsible terrarium

(Diamond) terrarium

4. Projection ornament

5. Booze bottle

FEASIBLE:

The biggest concern for the terrarium is how to integrate a LED light (and a battery) into a 1-piece glass structure.
Estimation:
LED light with a battery = $0.5 (similar to this)
glass terrarium = $1
labor = $1
manufacturing cost = $2

For the collapsible ornament, the biggest concern would be a price range, because the surveyed people on the average are ready to pay only $5.2 for an item, which is about the price range for a regular ornament that you can buy separately without a set, and which as a rule are easier to manufacture and assemble. The following calculations are made for a collapsible ornament similar to the pet travel bowl:
materials = $0.1 (rubber costs 253 cents per kilogram, and 1 ornament weights no more than 40 grams);
I assume that metallic part on top of the ornament will cost about the same = $0.1
labor = $0.2
manufacturing cost = $0.4

The 2-piece fillable ornament is a relatively simple design, so there should be no major problems with manufacturing. One of the concerns that I might have about it is to choose the right price point, so that it is not extremely expensive, but still is a bit luxurious and desirable, as consumers tend to find a product desirable because it has a high price.
glass terrarium = $1.5
plastic bottom material = $0.2
labor = $1.7
manufacturing cost = $3.4

For the projection of ornaments idea, the hardest part for me would be the use of technologies.
The manufacturing cost estimation here is really rough. I need to project ornaments to the surface of a Christmas tree, which is not flat, so I will need at least 2 sources of light (that make the projection). Lets take the cheapest light projector on my 2x2 matrix which is $6.99, and calculate its manufacturing cost: $6.99/5=$1.4. So, the manufacturing cost for my projected ornaments is $1.4*2=$2.8.

For the booze bottle idea, the main concern will be the weight of the bottle. It might be too heavy to be ganged on a Christmas tree branch because of the liquid inside and the glass the bottle made of.
Each 50ml bottle costs $1-5 depending on the beverage type. Lets approximate it to $3 per one bottle on the average. Lets assume that additional elements: wrapping foil, loop and a hook on top of the screw lid will cost $0.5. So, materials total is $3.5, and together with labor cost it will result in $7 of manufacturing cost.

1 Comment

Hi Masha,

You have done a wonderful job with your blogpost! I am very appreciative of your research and presentation. It is great that you had 25 people take your survey. As they say, a bigger sample is always better. I like how you have provided a thorough account of the entire process. In particular, the content pertaining to your survey questions and feasibility was well articulated.

The images in your 2 x 2 matrices and text look great. I however felt that providing horizontal and vertical lines could have visually spaced them out and demarcated the quadrants better. Also, perhaps you could have provided your idea sketch somewhere, so as to put it in perspective with the rest of the products.

~Harini~

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This page contains a single entry by Masha published on December 3, 2013 11:46 PM.

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