NEW PRODUCT DEVELOPMENT FINAL PROJECT
Submitted by
TEAM G Quan Nguyen Matthew Rodgers Carlton Hadden Nazrul Islam Brijesh Uddarraju
Submitted to
Dr. Glenn Whichard
New Product Development
Team G: Outside the Box
1. Company introduction We are Outside the Box an outdoor adventure goods company. We are a public company and an industry leader in our specific markets. We are an established retail business with B&M stores. We are a flat-structured, and interconnected company with a culture that encourages new and innovative ideas. We align ourselves with our core values, and every member strives to pursue innovation. Our core values are at the central to our company’s flow. Being an “Outside the Box” company, many of these values are the energy that leads our company to be successful in our pursuits. Our company has five main divisions: Design with Matthew Rodgers as the manager, Marketing with Quan Nguyen as the manager, Operation with Mdnazrul Islam as the manager, Engineering Center with Brijesh Uddarraju as the manager and Innovation Center where we all work together with Carlton Hadden.
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New Product Development
Team G: Outside the Box
2. Problem and solution Outside the Box offers users a variety of experiences, journeys and adventures. Forget all the heavy lifting, struggling, bad spots, and uncertainty. We will put it all together! We offer guided tours, downloadable maps, unique product packages, and a knowledgeable community and staff to enhance the experience. We have a unique line of products and services. Whether they’re an avid enthusiast or a first-timer, we have a way to bring their adventure to fruition. Our storagerental system provides users with affordable options, as well as convenience. The users can also sign up to our online resources and find special deals, tours, promotions and incentives. After a lot of team brainstorming sessions we came up with a solution to address the logistical problem faced by many adventure lovers. Our latest addition to our line of products and services is the Kayak delivery service. This service is designed to help people that cannot or do not want to face the hassle of transporting their kayaks to their destination and back. Our service is aimed not only at these sect of potential clients, but also at people who do not already own a Kayak or any other adventure equipment but like adventure sports. We intend to offer a logistical solution to the problem and beyond like guided tours and a change to engage and share your adventures with fellow adventurers This is the first time we are using a web-based user interface to not only take orders but by also giving a chance to our clients to exchange their experiences and feedback and create a community.
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New Product Development
Team G: Outside the Box
3. Marketing a. Define the market In 2014, the U.S participants in Paddle sports are 21.7 million people, including 10 million of canoeing, 3.8 million of rafting, 2.8 million of stand-up paddling and kayaking takes the biggest proportion of 13 million people.
In 2014, kayakers made a total of 105.2 million annual outings and 8.1 outings in average. For the new product, we are going to launch in the future, we will be focusing on Florida market to compete with sporting goods retailers, online merchants sell kayaks and many independent kayak rental companies. They mainly use two distribution channels: stores and websites. So, we will take a closer look to those three markets. According to the competitive market analysis, we will be competing with 23 kayak dealers and sites in Florida. By 2016, Florida industry volume was about $10.7 million and in average, firm’s annual sales were $464,728. In the rental market, we will be competing with about 61 sport equipment rentals and sharing the $37 million market, firm’s annual sales was $609,452. 4
New Product Development
Team G: Outside the Box
The market is predicted to grow at the rate from 2.7% - 3% To compare the price, we will compare to rentals’ price with four rentals
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New Product Development
Team G: Outside the Box
b. Marketing plan
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New Product Development
Team G: Outside the Box
Knowing our customer segment is important for us to draw out our plan. So, look at the infographic, we will be focusing on people with middle and high income from 25-45+. So, we decided to have the plan to hit hard in that segment.
In store: using the space of OTB store, we will launch our posters, banners and also announce about our new service that we just launched. We will send out posters and banners to the smaller retailers that we are partnering with to spread the word. We will send out free trial for a group of certified customers that we pick
Email: OTB is the medium/large size company, we have been leading some of the markets related to outdoor activities. We have the email base from our old customers so we will use that to send our customers the information of the new service
On Line: we will focus on Facebook, Instagram, and Twitter to boost the speed. We will be posting contents like pictures, videos or articles to our existing accounts which already have lots of followers. We will also be posting contents to other groups of outdoor (kayaking, canoeing, paddling…) enthusiasts to reach out to many more potential customers. We will be using Google Ads and Facebook Ads as well to make sure we reach out to all of the customers who are looking for the convenient service for outdoor activities
Events: we will be sponsoring or creating some events to trigger the demand for the market that we will be focusing on .
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New Product Development
Team G: Outside the Box
4. Service Portfolio a. App Social Community Outside the Box App provides clients access to our social media platform and adventure based community. The user will be able to interact with other enthusiasts, post about their adventures, special promotions, and search for information that will educate the user, and enhance their experience. Tours/Offers Outside the Box will offer downloadable maps & quests, adventure destinations, and guided tours for its users. As discussed in our innovation section - these will be packaged offers that are bundled together to create an all-encompassing experience. We will also look to partner with affiliate companies that can provide added value to the users’ experience, and promote exclusive offers about our tours. Ad Revenue Outside the Box will generate Ad Revenue from affiliates who share a vested interest in our services, and can provide additional value to our clients. Perhaps after a long hike and kayaking adventure, our users will want to relax with a deep tissue massage. We will utilize data from our clients to find and suggest advertising that will benefit the user, and generate additional revenue.
b. User orders Buy The user will have the opportunity to purchase a kayak, or other equipment either in-store or online. The user can take advantage of our storage facility, and store their equipment until they
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New Product Development
Team G: Outside the Box
want to use it. The convenience of our delivery service will provide users the freedom to enjoy their outdoor experiences, without equipment filling up their garage. Rent (Company Inventory) The user will be able to rent a kayak or other equipment from OTB’s in-stock inventory. This inventory includes returned equipment, store displays, or unsold merchandise that Outside the Box will use as rental equipment, instead of a write off. It will allow OTB to generate revenue multiple times from a single asset, and also provide additional options for our consumers. Rent (From other members) Users can also make their equipment rentable while utilizing our storage & delivery service. We will offer the equipment owners an incentive (perhaps a percentage off their storage costs) if they decide to allow other users to rent the equipment. It essentially saves OTB cost in depreciated goods, and allows us to keep less inventory on hand.
c. Business Model Value Proposition Outside the Box provides storage, and delivery service system that caters to outdoor enthusiasts‌ We also provide empowerment coupled with unique products and services for an outdoor experience. We will provide these things through our service facilities, our social media systems, innovative thinking, and specialized products/services. Experience Outside the Box offers users a variety of experiences, journeys and adventures. Forget all the heavy lifting, struggling, bad spots, and uncertainty. OTB will put it all together! We offer
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New Product Development
Team G: Outside the Box
guided tours, downloadable maps, unique product packages, and a knowledgeable community and staff to enhance the experience. Empowerment OTB empowers our clients by giving them a voice, a choice and perspective. OTB has an adventure enthusiast based community that allows users to share experiences, tricks, secrets, ideas that will enhance their adventures. We also provide users the ability to choose the specific aspects of the adventure they wish to have, along with offers and affiliate products that allows users to tailor an experience for themselves. Education At OTB, our team strives for improvement. One of our core values is having an analytical nature. We will utilize our data systems, customer feedback and support, and our specialized knowledge to ensure that we provide BETTER information to our users. Products & Services OTB has a unique line of products and services. Whether they’re an avid enthusiast or a firsttimer, we have a way to bring their adventure to fruition. Our storage-rental system provides users with affordable options, as well as convenience. The users can also sign up to our online resources and find special deals, tours, promotions and incentives.
5. Operations a. Customer Support The customer will send their requirements through Apps. From App, the information will be sent to the company. This information could be different kind like if they want to buy the Kayak or rent the Kayak. This information from company will be sent to the Store and the product ready process is beginning from store. For buyers, the store will make sure the inventory is available for
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New Product Development
Team G: Outside the Box
sale. And for renters the store will start the process to send the kayak to the place that the customer need to be. The delivery guy will pick the kayak from store and will bring it to the location. Then the delivery guy will be locked it in a place at location with the safety lock and the passcode will be sent to the customer. The customer will unlock it from the safety lock by using the passcode and will enjoy their kayak. After they are done with their entertainment they will be responsible for putting it back in the same location they got it from and locked it the same way they unlocked it. b. Lock (mechanism) To deliver the kayak to the customer a lock will be needed. There are two or three lock design that we are working on and will be decided soon. c. Lean six Sigma To be a number one service provider in the market we will implement the lean six sigma process in our operation.
6. Innovation / Future Expansion a. Crates/Bundles Rooms to Go has shown that consumers like buying packages that have been preselected by experts/designers. OTB will bring this concept to sporting goods. OTB stores will have packages staged in each department (camping, team sports, kayaking, beach trips, etc.) Shoppers will have the option to 1) buy the package as is, 2) customize the package, or 3) buy the items a la carte.
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New Product Development
Team G: Outside the Box
OTB will also use the crate/bundle concept for rentals. For example, A family who is on vacation wants to have a beach day but they don’t have any gear. They can rent a Beach Day Crate from OTB that includes:
Canopy Tent
Chairs
Sand Castle Toys
Games
Towels
Cooler with drinks and ice
Blanket
The Beach Day Crate will be delivered right to the beach so the customer doesn’t have to haul the gear to and from their vehicle. At the end of the day, the customer simply loads the gear back into the crate and seals it. The contents of the crate will be cleaned/washed and repacked for the next customer. b. Drones As drone technology and regulations mature, Outside the Box (OTB) will us autonomous drones to deliver and pick-up kayaks. c. Business to Business Sales Other sporting goods stores OTB will enter reseller agreements with other sporting goods retailers. The other retailers will sign customers up for OTB’s kayak storage, pickup, and delivery service.
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New Product Development
Team G: Outside the Box
Hotels/Resorts Hotels/Resorts may not have kayak rentals for reasons like: Cost, staffing, liability, and storage space. OTB will partner with hotels/resorts to provide kayak rental to their guests with the hotel/resort getting a percentage of each sale. OTB can also offer guided kayak tours to hotel/resort guests Corporate Team Building Events Corporate team building events and picnics require activities to keep employees and their families busy. OTB will offer Team Building Crates with fun, challenging, and competitive outdoor games that will keep everyone entertained. d. Additional Product Lines Camping Beach Trips Sports Packages 1. Baseball/Softball 2. Volleyball 3. Football Corporate Events Lock (Intellectual Property) OTB will patent their lock mechanism Licensing / Franchising OTB may explore licensing their lock technology Once the business model is perfected, OTB will begin franchising throughout the U.S.
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New Product Development
Team G: Outside the Box
References https://www.zozi.com/advance/blog/activity-rental-industry-report http://wavewalk.com/blog/2008/01/15/canoe-and-kayak-market-trends-in-recent-years/ http://www.businesswire.com/news/home/20160826005023/en/Sports-Fishing-EquipmentMarket-Gain-Traction-2020 http://www.bizminer.com/reports/cma_report.php?id=1493242&zips=&cma_file=1&format=ht ml&pdf=1 http://www.bizminer.com/reports/cma_report.php?id=1493243&zips=&cma_file=1&format=ht ml&pdf=1 http://www.bizminer.com/reports/cma_report.php?id=1493106&zips=&cma_file=1&format=ht ml&pdf=1 https://www.gilldawg.com/kayaks/ http://www.windsongboatrentals.com/kayak-rates.html https://islandmarinerentals.com/kayak-rentals/ http://www.baybreezepaddleadventures.com/kayak-rentals http://www.americancanoe.org/?page=Statistics
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