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copyright Š spring 2014 moveo and innovationspace all rights reserved illustrations by moveo
arizona state university presents a final innovationspace and moveo proposal for disney consumer products
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d ran b e th a ll a b o u t
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fin
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product func ti o n
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m in a
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icr
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‘‘
‘‘
Play is often talked about as if it were a relief from serious learning. But for children, play is serious learning. Play is really the work of childhood. Mr. Fred Rogers
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the undertaking
the problem
11
12
the solution As children spend more and more time with computers, game consoles, mobile phones, and other electronic devices, they tend to spend less time outdoors in physical activity. The idea is not to force children to give up these electronic devices they like and are at ease with, but incorporate more activity with them for healthier lifestyles.
What we resolved to accomplish was getting children to be more active, explore their surroundings beyond digital devices, and encourage them to use their imaginations more. So, through months of research, assessments, and processes, our team has come to understand what kind of impact ‘digital addition’ has on our younger generations. From this understanding we have come up with a solution to incorporate physical activity into this electronic fixation that is sweeping through the world’s children. And that solution has come to be known as miGO.
13
14
‘‘
‘‘
We must take adventures in order to know where we belong.
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product debut
product benchmarking form
color
type
fitbit
simple colorful geometric
utilitarian modern
fuel band
technologic futuristic
minimal round
USB wristband
zamzee
plain colorful
intuitive uninspiring
USB clip
ibitz
boring colorful
noninteractive bulbous
wireless pedometer clip
jawbone
sleek detailed
textured modern
wireless wristband
wireless wristband
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personality
materials
details
helpful lifestyle rewards
latex-free plastic elastomer
OLED display, companion app, touch sensor, soft touch adjustable band
serious fitness goals competitive
thermotplastic elastomer polypropylene
Light bar, scrolling words, activity measurement, fuelpoints, Bluetooth 4.0, comprehensive app
silly playful games
injection molded polypropolene
USB stick, single switch, tri-axis accelerometer, 2 week battery life intensity and duration of activity
family pedometer games
thermotplastic elastomer polypropylene
Bluetooth 4.0, set goals and rewards, water-resistant, durable clip for hip and shoe, stores 30 days of activity
lifestyle social artistic
hypoallergenic thermoplastic polyurethane
single button interface, vibrating motor, dual multicolor LED lights, wireless bluetooth
20
design language Translucent Lighting See-through visuals Diffused light Futuristic interface Analogous color
21
22
Dynamic layering Overlapping forms Sweeping curves Dynamic from static Variable Chamfers
23
24
Textural geometry Repeating patterns Perforated planes Optical movement Organized visuals
25
product design Introducing a revolutionary new toy that offers children an experience that is both physical and digital turning playtime into something unique, fun, adventurous, motivating, entertaining, healthy, inspiring, active, innovative and magical. Pave the way for....
27
speaker for auditory commands
4-way ring button allows for easy navigation of menus and interaction
magnet clip to attach to clothing or toys
micro USB for charging and computer connectivity
LED display and color selection
28
29
exploded view
31
4-way button
LCD screen
micro-USB plug
silicon band
polypropolene housing
magnet battery
multiple ways to be worn
connect it to disney toys
33
buzz lightyear
ironman
star wars
princess
...and roleplay as your favorite characters
Beco with
come one h the Force
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36
‘‘
‘‘
Children see magic because they look for it. Christopher Moore
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all about the brand
brand benchmarking form
typgraphic treatment
family friendly, crosses a broad spectrum of ages
clear, objective, modern, universal, “less is more� minimalist
kid oriented and family friendly, has a youthfulness
the whimsical letterform conveys a lighthearted mood
striking colors, oriented towards young adults
the message comes across as enthusiastic, friendly and confident
playful typeface, feels less youthful than geopalz
expressive typeface displaying creativity, happiness, and cuddly
busy, childish, has a specific audience
heavy type, lots of personality, best used in small doses
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personality and character kid friendly, physical activity, bringing gaming outdoors, fitness goals
silly, playful, unique, kid friendly, physical activity, rewards
silly, playful, educationally minded
family friendly, pedometer, games, rewards kid friendly, specific market, gaming inspired
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brand inspiration
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brand guidelines brand attributes
adventurous inspiring quest driven instructive grow–with–me magical making connections exploration spark creativity free play engage & innovate imagination
the logo
the logo with tagline
you GO we GO
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logo clear space logomark logotype
Blue indicates CLEAR SPACE. The blue area must be kept free of other elements. Grey padding indicates a safe zone. Magenta indicates type element alignment and boundaries. The minimum required clear space is defined by the measurement of the circle (‘head’) of the logomark equal to the height of the logomark head, the width is equal to the height.
smallest reduced size
inspired typeface
48mm
you GO we GO
31mm
7.4mm
11.5m m
14mm
bubbleboddy light 1234567890!@#$%^&*()<>-=+ ABCDEFGHIJKLMNOPQRSTUVZXY adbcdefghijklmnopqrstuvwxy
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color specifications main colors pantone black
secondary colors C13 M10 Y10 K0
C0 M0 Y0 K40
C68 M45 Y0 K0
C38 M0 Y4 K0
C59 M77 Y0 K0
C80 M0 Y100 K24
C2 M10 Y82 K0
C39 M0 Y100 K0
C54 M0 Y48 K0
C74 M8 Y47 K6
C3 M0 Y0 K100 #000000
pantone 2728C C94 M78 Y0 K0 #2150A3
pantone P14-8C C80 M0 Y100 K24 #008F3C
pantone white C0 M0 Y0 K0 #FFFFFF
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correct color usage
logo abuse
logotype
do not change logomark location
do not stretch or distort
logomark
do not alter the size of the logomark
do not change typecase or colors
Consumer Research Market Research Product Opportunity Gaps found
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Early Product Development
1
1M DEFINE
3
4M 1M Create the Team Seek Investment/Funding Define the Problem
2
DESIGN
ASSESS
>1M Data Validation Model Validation
4
TEST
>1M
timeline implementation
Present to Investor for feedback
Billboard to Build Product Buzz Advertisement in Magazine Product Placement on Disney Channel Social Media launch
Conduct customer reviews and beta testing Product launch test nationally Product launch test internationally
12M 6M
8
EVALUATE
6
TRIALS
7
SUPPORT
12M
5
Find vendors for manufacturing Find vendors for packaging Quality checks of prototype MODEL
2M
Refine Sketches Sub Models Building Block Models Prototype
9
LAUNCH
3M Tradshow Presentation Retail Implementation
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‘‘
‘‘
Play is the highest form of research. Albert Einstein
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product function
device can lead child on an interactive story
function tree
device tracks childâ&#x20AC;&#x2122;s lever of activity wearable activity monitor
data storage
device communication with app
user input
lights
audio
comparison of activity to childâ&#x20AC;&#x2122;s stats
proper movement detection (protect from hostile user)
detect acceleration
store relevant storylines
store activity
store audio
activity uploaded
new stories downloaded
story completion uploaded
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morphological chart Product Subfunction User Input Lights Audio Comparison of Childâ&#x20AC;&#x2122;s Activity Proper Movement Detect Activity Store Relevant Storylines Store Activity Activity Uploaded Store Audio New Stories Downloaded Story Progress
Solution 1
Solution 2
Solution 3
Solution 4
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specification sheet demand/wish
requirement
responsibility
source
d
Accessory that tracks activity
engineering
team
d
e-ink black & white display
engineering
team
w
contains story, toy-box, tracking modes
engineering
team
d
geometry wearable clip with 1.54â&#x20AC;? diameter face
industrial design
standard
d
safety complies to all safety reqâ&#x20AC;&#x2122;s for toys through European Standard
team
EN-71
d
water resistant up to 5 ATM
industrial design
standard
d
cost $80
business
standard
d
materials plastic
industrial design
standard
d
memory stores 30+ hours of running data
engineering
standard
d
battery 3 wks 1hr/day workout (avg use)
engineering
standard
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product architecture
2
3 1
5 4
6
1 e-ink display
4 speaker
2 processor
5 accelerometer
3 bluetooth
6 lithium ion battery
The advantage of this layout is that the processor and screen are close enough to each other to be connected so that our â&#x20AC;&#x153;folding-inâ&#x20AC;? design can be accomplished. This is similar to the flip phone design. However, in our case the screen will face the outside and the inside will be the magnets to clip the device to peripherals.
bill of materials
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Component
Material
Size
Manufacturing Process
Circuit Board
Various
1.24” area
Various
E-Ink Display
Mixed
1.54” diameter
Various
Housing
Plastic
.015 lbs
Various
Lithium Ion Battery
Various
.01 lb
Various
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‘‘
‘‘
Play is our brain’s favorite way of learning. Diane Ackerman
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financials
business model canvas
key partnerships
key activities
distributors
marketing
suppliers
r&d
manufacturers
storyline development legal distribution sales
key resources disney brand IP employees disney storylines agreements cost structure r&d
salary & wages
marketing
legal
storyline development
manufacturing
distribution
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value propositions
customer relationships
customer segments
miGO accessories
personal service
children
miGO
automated
parents
miGO products
supplier
retailers
channels disney store disney website app store third party retailers online retailers revenue streams licensing product sales
business model summaries
Due to the small size, the chances of loss are likely. Additionally, miGO will allow a user to fully customize its outward appearance through attachments. miGO offers a base product and wearable items based on the Disney characters such as necklaces, bracelets, toy objects, etc. . . All of miGO’s wearables will be available
parents & children miGO is a wearable device that incorporates physical activity with a reward system. The problem that
through third-party retailers and the Disney store. The Disney character-based toys, items, and attachments allow the product to “grow” with the user as he or she ages.
miGO addresses is that children are spending more and
retailers
more time on digital devices, relying primarily on the
miGO offers third-party retailers an additional revenue
virtual world for fun and entertainment. miGO builds on
stream which will increase customer acquisition and
this by integrating a fitness monitor into toy and
profit by providing desirable consumer products that will
wearable accessories to unlock storylines and challenges
attract customers. The retailer-benefit that miGO and
as a means to children to engage in imaginary play
its accessories offer includes increased net income to
and physical activity.
further company growth and company operations. Additionally, miGO gives the retailer the opportunity to
The user-benefit that miGO offers is that it serves as
associate utilize the strength of the Disney brand to
a companion, encourages exercise, and promotes
increase the level of the retailer’s brand equity.
physical fitness as a means of entertainment and selfachievement. Currently, the Nintendo Fit Meter,
channels
Zamzee Activity Meter, Geopalz Kids Digital Tri-Axis
miGO’s channels of distribution include: the Disney
Motivational Pedometer, and iBitz Kids Activity
websites, The Disney Store, and third-party retailers (brick
Tracker offer achievement ratings based on physical
and mortar & online), which are the most appropriate
exertion which are tied to avatars, video game
and cost-efficient channels of distribution for this type of
achievement, or some other form of rewards. However,
product. The methods of communication that these
none of these options maximize the potential of
different channels can use to properly communicate miGO’s
incorporating Disney characters, storylines, or place
value propositions are Disney Stores (Personal assistance
emphasis on imaginary play.
demonstrations, similar to the manner in which Apple representatives demonstrate company products in Apple
Although, all of the competitors’ products are wearable,
stores), Disney Websites (Video demonstrations and
neither of the options allow for integration with other
customer testimonials), Third-party Online Retailers: Video
wearable items such as necklaces, bracelets, and other toys.
demonstrations and customer testimonials. along with
Third-party Brick & Mortar Retailers (In-store self-service
This sort of customer help can be established through
demonstration end-caps, similar to how customers are able
phone services, online chat, and a FAQ’s section via
to play the X-Box and Playstation in retailers like Wal-Mart,
the Disney website. The level of help should be determined
Target, and Best Buy).
based on how complex the consumer feels the issue is. In modern day, consumers expect these types of
Product awareness will be developed through online,
after-sales services. The relationship between Disney
television, and print advertising, along with promotions,
and retailers will remain that of a supplier-buyer
word of mouth marketing, and social media. Video
relationship. This type of relationship will be a personal
demonstrations will be posted on YouTube. Customer
selling type of relationship and can be established
Evaluations can be accomplished through detailing
through contracts or agreements to ensure loyalty.
product benefits and specifications online and on miGO’s
Additionally, loyalty to be developed through on-time
packaging, in addition to user testimonials. Delivery can
shipments, volume discounts, and on-time payment
be accomplished through point-of-sale purchases through
discounts. Given that this is a two-way relationship, both
The Disney Store, third-party brick-and-mortar retailers,
parties will be required to hold up their end of the
and the app stores. If purchased through Disney’s
agreement to ensure continued business and a mutually
websites or third-party e-commerce, the product will be
beneficial relationship.
delivered through Fed Ex, UPS, or The U.S. Postal Service, which the customer will be required to pay for
revenue streams
shipping. After-Sales Services will be conducted through
miGO’s revenue streams include direct or third-party retail
The Disney Stores, customer service helplines, and a
for the base product, wearable items, and attachments.
Frequently Asked Questions section on Disney’s websites.
To help customers afford the miGO, Disney will use the “razor blade” revenue model in that it will charge a price
customer relationships
just above cost for the base product, and will make up
The relationship that miGO will establish with consumers
the profits by selling the attachments and wearable items
is a personal assistance relationship given that sales
at prices with high mark-ups. This will allow customers
will be accomplished through personal selling, and also
of all income segments to purchase, and will also provide
automated via online stores. However, the customer
Disney with steady streams of revenue as the user continues
service helplines that will be offered allow Disney to develop
to age by purchasing new wearables that properly project
a personal relationship with the consumers of this product.
the user’s self-image. The key resources that will be needed
This is the most optimal type of relationship in that it
in order to deliver miGO to customers include: The Disney
promotes brand loyalty. When consumers establish personal
brand and the desirability of its products to jumpstart initial
relationships brands, they feel attached and are less likely
sales, and their Intellectual Property such as characters
to switch to a competitor.
and stories for design and development.
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revenue streams continued...
key partnerships
Legal Agreements with material suppliers, manufacturers,
Distributors: Key in delivering miGO into the hands of
and distributors, Disney Employees to push miGO through
consumers through economies of scale, and allowing such
the design and development stages, to legal agreements
cost savings to trickle down to the consumer level.
with suppliers and manufacturers, to strong sales teams for
Suppliers: Key in sourcing materials for miGO through
obtaining sales from retailers and consumers, to marketing
economies of scale, and allowing such cost savings to trickle
departments creating a demand for miGO, and Distribution
down to the consumer level.
& Logistics Networks for providing channels which miGO
Manufacturers: Key for manufacturing miGO product
can be distributed from its raw materials stage all the way
limit labor and remanufacturing costs, and allowing such
to within the hands of the consumer.
cost savings to trickle down to the consumer level.
key activities
key competitors
The key activities to deliver miGO to customers include
Zamzee
but are not limited to: Storyline Development (Development
Targeting similar target market with similar value
of the storylines for miGOâ&#x20AC;&#x2122;s activities), Product Design
proposition and similar pricing ($29.95) in similar markets
and Development (Key for designing and developing
(U.S.). Current product: Zamzee Activity Meter. Channels
a product that the user would find attractive and would
currently include online retail, primarily Amazon.com, and
want to wear around or play with), Legal (Key for ensuring
they recently launched the Zamzee Activity Meter 11/2013.
that all regulations and specification requirements are adhered to for all regulatory agencies. Also, critical for
Geopalz
establishing trademark and other intellectual
Startup founded in 2008, in Boulder, Colorado.
property. Critical for establishing agreements among
Currently part of a Nike+ Accelerator, Targeting similar
suppliers, manufacturers, and distributors), Distribution
customer segment with similar value proposition
(Critical for delivering the product from raw materials
at a similar price ($24.99 - $34.99) in a similar market
form through the supply channels into the hands of
(U.S.) Current Products: Geopalz Kids Digital
the customer through the various direct and indirect retail
Tri-Axis Motivational Pedometer, iBitz Kids Activity
channels), Sales (Significant in allowing consumers to
Tracker. Current channels include some Best Buy
purchase Disney products through multiple third-party
and Target stores, Amazon.com, and the Apple App
retail outlets), and Marketing (Key for providing consumers
Store. Recently launched LockerBotâ&#x201E;˘ Parental
with awareness and understanding of miGOâ&#x20AC;&#x2122;s value
Control Application for Samsung and Kindle Tablets
propositions and channels through which it is available).
on January 6, 2014.
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key competitors continued...
sustainable strategy
Nintendo
The continued approach to seeking ways to minimize waste
Large multinational consumer electronics company,
through turning waste into raw materials or by utilizing
founded in 1889, in Japan, similar in size. Nintendo operates
plentiful and renewable or recycled resources as a means
on a global scale, is a video game industry leader, offering
to continue business. Responsibilities are seeking ways to
a similar product, at a low price ($19.99) to a much
leave little to no foot print in terms of waste, to use little
broader target segment. Nintendo’s product array is vast
to no natural resources so that all elements of life on earth
an numerous, some of which include: the Nintendo,
may enjoy what the world has to offer, to recycle previous
Super Nintendo, Nintendo 64, Nintendo Wii, Nintendo Wii U,
materials at little to no cost, which can be remanufactured
various toy characters and more specifically, the
as new products.
Nintendo Wii Fit Meter. The channels that Nintendo uses
Disney’s Code of Conduct is to disclose relevant citizenship
include online, primary and secondary brick and mortar re-
information in a timely manner, Integrate citizenship into the
tailers.Nintendo launched the Wii Fit Meter 1/2014.
day-to-day decision making of leadership, engage with our stakeholders on a regular basis, integrate citizenship into
cost structure The cost structure of developing miGO from start to finish will consist of main variable costs. The key costs include but are not limited to: Product Design & Development – Cost of technological research, sourcing materials, and other resources to design and test miGO prototype, along with developing finished product for manufacturing. Manufacturing – Costs required to develop miGO at mass quantities through Disney approved manufacturers. Salaries & Wages – Salaries and wages of human resources required to engineer, develop, and get miGO into the hands of consumers. Legal – Costs required for certifying that all product specifications meet regulatory requirements and further establishing intellectual property. Marketing – Costs required to create awareness of miGO product and to generate consumer demand through a pull strategy.
the responsibilities of every Disney employee, and respect human rights within our operations Source: http://thewaltdisneycompany.com/citizenship/ethical-conduct
Disney’s Goals are to achieve zero net direct greenhouse gas emissions, reduce indirect greenhouse gas emissions from electricity consumption, send zero waste to landfills, have a net positive impact on ecosystems, minimize water use, and minimize product footprint Source: http://thewaltdisneycompany.com/citizenship/environmental-stewardship
goals Annual Revenue Goal
$
3,000,000
Retail Price
$
9.99
75,000
$
19.99
WalMart
3,290
Walmart
53%
Units Per Master Carton
2
$
59.99
Target
1,790
Target
29%
Cartons Per Store
2
Toys R Us
872
Toys R Us
14%
Units Per Store
4
Disney
214
Disney
3%
Total
100%
Annual Units Goal
Sales Rate Per Week Price
Stores Nationwide
Total
1
Weekly Revenue Per Store
Walmart
Target
Toys R Us
Percent of Stores Nationwide
6166
Total Weekly Revenue 26 Week Revenue 52 Week Revenue
$
9.99
$
9.99
$ 32,867.10
$
17,882.10
$
8,711.28
$
59,460.48
$
1,545,972.48
$
$
19.99
$
19.99
$ 65,767.10
$
35,782.10
$
17,431.28
$
118,980.48
$
3,093,492.48
$
6,186,984.96
$
59.99
$
59.99
$ 197,367.10
$ 107,382.10
$
52,311.28
$
357,060.48
$
9,283,572.48
$
18,567,144.96
Annual Units
Weekly Units # of Walmarts
% of Walmarts
# of Targets
% of Targets
$
9.99
$
3,000,000.00
300,300
5,775
3,081
94%
1,676
94%
817
94%
200
94%
$
19.99
$
3,000,000.00
150,075
2,886
1,540
47%
838
47%
408
47%
100
47%
$
59.99
$
3,000,000.00
50,008
962
513
16%
279
16%
136
16%
33
16%
% of Walmarts
# of Targets
% of Targets
$
9.99
$
749,250.00
75,000
1,442
770
23%
419
23%
204
23%
50
23%
$
19.99
$
1,499,250.00
75,000
1,442
770
23%
419
23%
204
23%
50
23%
$
59.99
$
4,499,250.00
75,000
1,442
770
23%
419
23%
204
23%
50
23%
Price
Revenue Goal
Price
Total Revenue
Unit Goal
Weekly Units # of Walmarts
startup Activity
Cost
Source
Device Development
$ 100,000.00
http://www.titoma.net/How%20Much%20Will%20It%20Cost%20to%20Have%20a% 20New%20Electronic%20Product%20Developed%20in%20Asia.htm
Wearables Development
$
35,000.00
http://www.titoma.net/How%20Much%20Will%20It%20Cost%20to%20Have%20a% 20New%20Electronic%20Product%20Developed%20in%20Asia.htm
$
10,000.00
http://www.ipwatchdog.com/2011/01/28/the-cost-of-obtaining-patent/id=14668/
Basic Filing Fee (Utility)
$
280.00
http://www.uspto.gov/web/offices/ac/qs/ope/fee010114.htm
Basic Filing Fee (Design)
$
280.00
http://www.uspto.gov/web/offices/ac/qs/ope/fee010114.htm
Search Fee (Utility)
$
600.00
http://www.uspto.gov/web/offices/ac/qs/ope/fee010114.htm
Search Fee (Design)
$
120.00
http://www.uspto.gov/web/offices/ac/qs/ope/fee010114.htm
Examination Fee (Utility)
$
720.00
http://www.uspto.gov/web/offices/ac/qs/ope/fee010114.htm
Examination Fee (Design)
$
460.00
http://www.uspto.gov/web/offices/ac/qs/ope/fee010114.htm
Issue Fee (Utility)
$
960.00
http://www.uspto.gov/web/offices/ac/qs/ope/fee010114.htm
Issue Fee (Design)
$
960.00
http://www.uspto.gov/web/offices/ac/qs/ope/fee010114.htm
Processing Fees
$
280.00
http://www.uspto.gov/web/offices/ac/qs/ope/fee010114.htm
Patent Filing Total
$
4,660.00
Legal Attorney Fees Patent Filing:
Development Costs
$ 154,320.00
3,091,944.96
# of Toys R Us % of Toys R Us # of Disney Stores % of Disney Stores
# of Toys R Us % of Toys R Us # of Disney Stores % of Disney Stores
operating costs Cost Manufacturing
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Source
$
19.32
Transportation
$
35.00
http://www.alibaba.com/showroom/shipping-rates-from-china-to-usa.html
Distribution
$
110.00
http://images.fedex.com/us/services/pdf/Fees_Shipping_Information.pdf
Marketing
$ 100,000.00
Nov-14
Dec-14
Manufacturing
$
119,127.12
$ 125,083.48
$
131,337.65
$ 137,904.53
$ 144,799.76
$
152,039.75
$
159,641.73
Packaging
$
29,591.87
$
31,071.46
$
32,625.03
$
34,256.29
$
35,969.10
$
37,767.55
$
39,655.93
Transportation
$
17,984.17
$
18,883.38
$
19,827.54
$
20,818.92
$
21,859.87
$
22,952.86
$
24,100.50
Distribution
$
6,280.19
$
6,594.19
$
6,923.90
$
7,270.10
$
7,633.60
$
8,015.28
$
8,416.05
Marketing
$ 100,000.00
$ 90,000.00
$
81,000.00
$
72,900.00
$
65,610.00
$
59,049.00
$
53,144.10
Total
$ 272,983.34
$
271,632.51
$
271,714.13
$ 273,149.84
Jun-15
Jul-15
167,623.82
$
176,005.01
$
184,805.26
$ 194,045.53
$ 203,747.80
$
$
41,638.73
$
43,720.67
$
45,906.70
$
48,202.03
$
50,612.14
$
25,305.53
$
26,570.80
$
27,899.35
$
29,294.31
$
30,759.03
$
8,836.85
$
9,278.69
$
9,742.63
$
10,229.76
$
$
47,829.69
$
43,046.72
$
38,742.05
$
34,867.84
$
Packaging
8%
http://www.southfieldpackaging.com/index.php/news/6.html
Aug-14
Sep-14
Mar-15 $
$ 291,234.62
Oct-14
Apr-15
$ 298,621.90
May-15
$ 307,095.98
$ 316,639.48
Jan-15
$ 275,872.33
Feb-15
$ 279,824.45
$ 284,958.32
Aug-15
FY 15
213,935.19
$
2,110,096.63
$
53,142.74
$
524,160.24
$
32,296.98
$
318,553.24
10,741.25
$
11,278.31
$
111,240.81
31,381.06
$
28,242.95
$
745,813.42
$ 327,241.27
$ 338,896.18
$ 3,809,864.33
cash flow Aug-14
Sep-14
Revenue
$ 508,540.85
$ 485,443.01
Operating Costs
$ (272,983.34) $ (271,632.51) $
Start-Up Costs Net Cash
$ (154,320.00) $ $
81,237.51
$
213,810.51
Mar-15
Apr-15
$ 650,540.07
$ 683,067.07
Oct-14 $
$
Nov-14
509,715.16
$
Jan-15
561,960.97
Feb-15
$ 590,059.02
-
$ $
May-15
262,051.09
$
Jun-15
717,220.42
$
753,081.44
-
$ 286,088.64
$ $
310,234.57
Jul-15
Aug-15
$ 790,735.52
$ 830,272.29
$ (291,234.62) $ (298,621.90) $ (307,095.98) $ (316,639.48) $ (327,241.27) $ (338,896.18) $
-
$ 359,305.45
$ $
384,445.17
$ $
$
619,561.97
(271,714.13) $ (273,149.84) $ (275,872.33) $ (279,824.45) $ (284,958.32)
$ 238,001.03
$
Dec-14
$ 535,200.92
410,124.44
$ $
436,441.97
$
-
$ 463,494.24
$ $
491,376.12
$ $
334,603.65
FY 15 Gross CM $
8,235,398.72
$ (3,809,864.33) $
(154,320.00)
$
4,271,214.39
Annual Unit Goal
miGO BOM Cost
$
19.32
Units Per Master Carton
100,000 2
Low End BOM Cost
$
1.50
WalMart
3,290
Walmart
53%
Cartons Per Store
2
High End BOM Cost
$
2.50
Target
1,790
Target
29%
Units Per Store
4
$
9.99
Toys R Us
872
Toys R Us
14%
$
19.99
Disney
214
Disney
3%
$
59.99
Total
6,166
Total
Sales Rate Per Week
Retail Price
1
Growth Rate
5%
Stores Nationwide
Percent of Stores Nationwide
100%
Revenue Price
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Low End Accessory
$
46,198.76
$
32,339.13
$
33,956.08
$
35,653.89
$
37,436.58
$
39,308.41
$
41,273.83
High End Accessory
$
92,443.76
$
64,710.63
$
67,946.16
$
71,343.47
$
74,910.64
$
78,656.17
$
82,588.98
5/2/14
$ 369,898.34
$
388,393.26
$ 407,812.92
$
428,203.57
$
449,613.74
$
472,094.43
$
495,699.15
Assumptions:
Assuming an initial product launch at 25% of the stores nationwide with a weekly units sold rate of 4 units per store for each type of product. Also assuming a 2:1:1 ratio for miGO device to high and low end accessories, and an overall monthly increase in revenue of 5%.
Quarterly Revenue Price
FY 16 Q1
FY 16 Q2
FY 16 Q3
FY 16 Q4
FY 16 TOTAL
FY17 Q1
FY17 Q2
Low End Accessory
$ 196,330.66
$
206,147.20
$ 216,454.56
$
227,277.29
$ 846,209.70
$
238,641.15
$
250,573.21
High End Accessory
$ 392,857.86
$
412,500.75
$
433,125.79
$ 454,782.08
$ 1,693,266.46
$
477,521.18
$
501,397.24
$ 2,293,201.03
$
2,407,861.08
$ 2,528,254.14
$ 2,654,666.85
$ 9,883,983.10
$ 2,787,400.19
$ 2,926,770.20
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
miGO Device BOM Cost Price
Aug-14
Sep-14
Low End Accessory
$
6,936.75
$
4,855.73
$
5,098.51
$
5,353.44
$
5,621.11
$
5,902.16
$
6,197.27
High End Accessory
$
11,561.25
$
8,092.88
$
8,497.52
$
8,922.39
$
9,368.51
$
9,836.94
$
10,328.79
miGO Device
$
119,127.12
$
125,083.48
$
131,337.65
$
137,904.53
$
144,799.76
$
152,039.75
$
159,641.73
Gross Contribution Margin Price
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Low End Accessory
$
39,262.01
$
27,483.40
$
28,857.57
$
30,300.45
$
31,815.47
$
33,406.25
$
35,076.56
High End Accessory
$
80,882.51
$
56,617.75
$
59,448.64
$
62,421.07
$
65,542.13
$
68,819.23
$
72,260.19
miGO Device
$
250,771.22
$
263,309.78
$ 290,299.03
$
304,813.99
$ 320,054.68
$
336,057.42
$ 276,475.27
sales forecast Mar-15
75
Apr-15
May-15
Jun-15
FY 15 Units Avg. Weekly Rate
$
560,944.75
56,151
1,080
0.18
$ 100,387.42
$ 105,406.80
$
110,677.13
$
1,122,451.02
56,151
1,080
0.18
$ 602,525.42
$ 632,651.69
$ 664,284.27
$ 6,552,002.95
109,218
2,100
0.34
Jun-15
Jul-15
Aug-15
FY 15 COGS
45,504.40
$
47,779.62
$
$
86,718.43
$
91,054.35
$
95,607.07
$
520,484.11
$ 546,508.32
$
573,833.73
50,168.60
$
FY 17 TOTAL
263,101.87
$ 276,256.96
$
1,028,573.18
$ 526,467.10
$ 552,790.45
$
2,058,175.97
$ 3,073,108.71
$ 3,226,764.14
$ 12,014,043.24
Mar-15
Apr-15
May-15
FY 15 Units
$
6,507.14
$
6,832.49
$
7,174.12
$
7,532.82
$
7,909.46
$
8,304.94
$
84,225.94
56,151
$
10,845.23
$
11,387.49
$
11,956.86
$
12,554.71
$
13,182.44
$
13,841.56
$
140,376.57
56,151
$
167,623.82
$
176,005.01
$
184,805.26
$ 194,045.53
$ 203,747.80
$
213,935.19
$ 2,110,096.63
109,218
Jun-15
Jul-15
Mar-15
Apr-15
May-15
Aug-15
FY 15 Gross CM
$
36,830.39
$
38,671.91
$
40,605.50
$
42,635.78
$
44,767.57
$
47,005.95
$
476,718.82
$
75,873.20
$
79,666.86
$
83,650.21
$
87,832.72
$
92,224.35
$
96,835.57
$
982,074.45
$ 370,503.30
$
389,028.47
$ 352,860.29
Weekly Rate Per Store
55,310.88
$
$
FY 15 Revenue
$
43,337.53
FY17 Q4
Aug-15
52,677.03
$
FY17 Q3
Jul-15
$ 408,479.89
$ 428,903.89
$ 450,349.08
$ 4,441,906.32
reasonable and justifiable social and environmental claims society
Fair Labor – miGO and its accessories will be developed in accordance with Disney’s current Citizenship practices and Code of Conduct, which promote ethical and sustainable business practices from its employees, as well as its suppliers. By upholding Disney’s Code of Conduct and Citizenship practices, Disney’s social equity will remain intact which will be crucial in promoting the miGO products and strengthening the Disney brand.
Community Health – Through social media and other
Design for Environment
related digital marketing campaigns, miGO will
Low Impact – As can be seen in the Okala Impact
promote community health improvement by encouraging
Factor Assessment, miGO will have a substantially less
its users to challenge their friends and families to
impact on the environment and its resources than
achieve various goals, or benchmarks, set by the user.
that of its competitors. Additionally, the miGO team will
For example, a campaign such as this would work as
continue to research and develop innovate procurement
follows: miGO users to invite their families and friends to
methods, materials, and manufacturing methods to
partake on a challenge and promote this challenge via
continue to decrease the level of impact that miGO has
a social media platform with the user who has the
on the environment throughout the entire production
most originating shares winning a family trip to Disneyland.
process. One simple manner in which miGO accomplishes this is by using a rechargeable battery which eliminates
Affordability – The fact that all families are not equal
the need for the use of disposable batteries. Also,
in terms of income has been taken into account. That is
the screen used by the miGO device uses less power and
why miGO will offer a variety of wearables and
ultimately lesser resources than that of its competitors.
accessories, in addition to allowing the miGO device to operate as a standalone product. These wearables
Safety Compliance & Regulations – To ensure the safety of
will be offered at a range of prices depending on the
miGO’s materials, it will be developed in accordance to the
quality and sophistication of the wearable to
ASTM F 963-11, ASTM F 963-07 1, Consumer Product Safety
provide families of all income levels the opportunity to
Act of 2008, FCC Rules and Regulations 47 C.F.R. 1.1307(b),
enjoy the benefits that miGO offers. Additionally,
1.1310, 2.1091, 2.1093, and will undergo thirdparty testing to
donation programs will be conducted through schools,
certify miGO’s compliance. Adhering to these regulatory
Boys and Girls Clubs, and other organizations that
requirements will make certain that miGO is safe for children
promote activity and learning among children.
and adults to use in the manner that it was designed for.
Again, these efforts will be crucial in maintaining the equity of the Disney brand, as well as strengthening the miGO brand. Sustainable & Non-Toxic Materials â&#x20AC;&#x201C; Continuous research into sustainable material alternatives will be sought after in an effort to provide new and innovative creation methods. An example of this occurring is by deriving amino acids from mollusks and barnacles to create glue for product assembly as opposed to using the safe but chemically derived glue that is currently on the market. To foster this sustainable innovation, the miGO development team will continue to look to nature to illicit ways that miGO can be developed using safe and natural alternatives. Even Lower Impact â&#x20AC;&#x201C; As previously mentioned the miGO team will continue to develop new methods at reducing the impact that the production and transportation of the miGO products has on the environment. In addition to continuous research into material sourcing options and ways to reduce the supply chain, the miGO team will regularly research methods to recycle waste and develop symbiotic relationships. One simple example of this is the reuse, rather than the recycling of boxes. Instead of bailing, transporting, and recycling boxes, which takes considerable amounts of resources, boxes will simply be broken down and transported to companies that provide home or office moving services. Companies such as U-Haul, Budget, and Penske will be able to provide these reused boxes to their customers, free of charge, to dramatically decrease the environmental impact that recycling has on the environment; and to increase their level of brand equity. This will also provide free advertising for miGO and Disney.
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‘‘
‘‘
The Earth has music for those who listen. Shakespeare
81
biomimicry
biomimicry solutions from: business how does nature promote feedback and in turn how can we influence consumer behavior to increase purchases?
pathogenic bacteria in chronic wounds communicate using signaling molecules.
honeybees collaborate when foraging, selecting a new hive through knowledge sharing.
To encourage communication among consumers
#disneymiGO, which will be displayed on the
regarding miGO, various social media pages
packaging, and splash screen along with a QR code.
will be developed to include but not limited to:
Incorporating social media in this apparent and easily
Facebook, MySpace, Tumblr, Instagram, and Pinterest.
available will remind users to discuss their product
Additionally, users will be encouraged to post
with other consumers, similar to the way various
related content using the hashtag
organisms share
implementation:
#disneymiGO
recent findings.
information about
engineering
83
how does nature recycle?
how does nature store energy?
lyosomes
tammar wallaby
They are organelles that subside in a cell and break
The wallaby uses the elasticity of tendons to store
down components that are nolonger good, and use the
energy, resulting from a hopping motion that includes
same sub-components to rebuild new components.
kinetic and potential energy, and releases 90% of
The app will have updates to enhance the use of the
that stored energy to produce the next hop. We could
product with time using internal programming. These
develop a digital converter to collect potential
updates will translate to improvements in the device
energy from a spring, inside the device, in such a way
itself with auto-sync, which translates to increase in
that rigorous movement from the user will provide
lifespan of product without using new resources. Also,
energy to the spring. Therefore, the device would cut
thru the app new storylines are downloadable, and
back on energy consumed, as it would kick into
uploaded stats/progress can be viewed.
gear from kinetic energy, to stop using the battery and only use the spring.
implementation:
biomimicry solutions from: industrial design how does nature use waste as a raw material?
barnacles
implementation
During the manufacturing and assembly of the
One of the places we looked to nature
product, many different types of construction
for a solution was barnacles. They are able to
techniques are utilized. For simplicity purposes in
secrete a glue like substance that is able to at-
toys, the best way to keep two pieces together is
tach itself in a very strong, natural way.
adhesives. These enable less parts, as well as remove small screws which could potentially pose a safety
Using this amino-acid adhesive technique in
hazard. There are many examples of adhesives in
our manufacturing and assembly will not only
nature, and looking to natures solutions often
make our product stand out in itâ&#x20AC;&#x2122;s construction,
will solve problems of our own. In this case, finding
but also in our sustainability and end of life
an adhesive which will be non-toxic is important.
environmental awareness.
how does nature provide for longevity of use?
85
One of the ways nature does this is by adapting to itâ&#x20AC;&#x2122;s environment. For example, hermit crabs go from smaller shells to larger shells as they grow. When they are finished with one, they are able to find and occupy another. With MiGo, we are able to also use this idea, by using modular peripheral parts. Along with the standard device, we will design parts that are meant to be upgraded as the child ages. This way, the â&#x20AC;&#x153;Grow With Meâ&#x20AC;? element of the An interesting facet about designing toys is the
Disney brand is preserved. The base device can be
changing demographic- as kids age, their interests
connected to the other gaming products, adding
shift rapidly. Therefore, products often have a very
a new element of the storyline and brand new activity
high turnover rate. Once we realized our product
events. As the child grows and their interests change
needed to be adaptable for many different age
(i.e. from buzz lightyear to iron man) they are still
groups, we decided to turn to nature for solutions.
able to have fun with the MiGo product.
implementation:
buzz lightyear cuff: ages 6-10
star wars light saber: ages 8-12
iron man power source: ages 10-16
biomimicry solutions from: visual communication design how does nature employ multi-functional design? flower sandwich With a flair for the colorful, Osmia avosetta bees makes a â&#x20AC;&#x2DC;petal sandwichâ&#x20AC;&#x2122; out of two layers of flower petals inside a small burrow it digs in the ground, cementing them together with clay or mud. Then it caps the chamber with a mud plug, which seals the humidity inside and letting the outside harden. Itâ&#x20AC;&#x2122;s the perfect environment for the egg. This same process could in turn by utilized when designing for the packaging of our miGO device. Local materials that can lay flat when coming from the supplier for low cost shipping rates and then a package that when implemented into carrying the product would maintain humidity levels in any temperature as well as be structurally sound to keep the product safe while it is in transit.
implementation ideas
How does nature create color and how can we make packaging colorful and appealing?
87
We can implement this into the packaging of the miGO device with ChromaFlair colors that contain unique, multi-layer flakes that give paints, coatings, plastics, textiles and packaging the ability to change color when viewed from different angles. Each flake, created using a revolutionary thin-film technology, exhibits a wide range of hues depending on the angle at which it is viewed and the angle of incidence of light, giving a dramatic color shift that is even achievable in low-light environments. It is manufactured by the The structural color of the morpho butterfly employs
deposition of ultra-thin layered structures similar to
the scales on their wings are made of many layers
those sometimes found in nature, such as soap
of proteins that refract light in different ways, and the
bubbles, butterfly wings, or sea shells. Precisely
color we see often is due entirely to the play of light
controlling the thickness of the multi-layers in the
and structure rather than the presence of pigments.
flake structure produces different colors.
implementation examples:
88
‘‘
‘‘
Play builds the kind of free and easy, try it out, do it yourself character that our future needs James L. Hymes Jr.
91
culmination
92
presented for DCP Disney Consumer Products (DCP) is the business segment of The Walt Disney Company and its affiliates that extends the Disney brand to merchandise ranging from apparel, toys, home dĂŠcor, books and magazines to foods and beverages, stationery, electronics and fine art.
Today Disney Consumer Products aims to help equip busy parents and families with the tools they need to incorporate more healthy habits into a busy schedule. The healthy habits that miGO focuses on is incorporating a more active lifestyle into an electronic dependent nation of youngsters. A reliance on screen time is a phenomenom that doesnâ&#x20AC;&#x2122;t yet have concrete evidence on itâ&#x20AC;&#x2122;s effects. But the goal of DCP, as well as ours, is to not force children to give up the electronic devices they like and are at ease with, but incorporate more activity with them for help with leading a healthier lifestyle.
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brought to you by
moveo, \â&#x20AC;&#x2122;moh-vay-ohâ&#x20AC;&#x2122;\, in latin it means to move, stir, set in motion, inspire, produce, and excite. This concept imitates the very core of our multidisciplinary team and brings us together with a mutual goal; to create a product that inspires and excites.
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jordan balint
zelda gonzalez
business marketing management entrepreneurship
electrical engineering
ray florant
jessica true
industrial design
visual communication design
96
a final word It has been moveoâ&#x20AC;&#x2122;s focus to discover, and explore all of the potential product possibilities that could result from integrating one, or more of, the following variables: less screen time, physical-digital integration, physical activity, and creativity. moveo has since narrowed the vast array of ideas down to one final product; and we are excited to present the migo device as our final solution that certainly integrates each of those five variables.
97
miGO Your sidekick to a lifetime of adventure and fun
98
you GO. we GO. miGO