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Product and Brand Development Kenji Huang


Victory is Yours


“I worked with Kenji on a 2 month project for a class in Service and Product Development. Kenji was inspirational not only in generation of product concepts but also in their execution. His commitment to quality and attention to detail came out in everything he did. His enthusiasm, drive and team-working skills were tested working with five demanding MBA students but Kenji managed to not only direct us subtly but also keep us together as a team. I believe Kenji will be an asset to any team he joins.� Victory is Yours

- Beril Tari Anavi, MBA Candidate, INSEAD


Introduction This project was a collaboration between 5 MBA students and a designer. It took place at INSEAD in Fontainebleau, France in a 4 month program that included 2 periods. During this time, the designers were tasked to lead their group through the design process. They also had the opportunity to learn the business aspects of product development and entrepreneurship from the other courses taken at INSEAD.


Development Timeline

Team

Designer

MBA Candidates

First 2 months

Team Members Project Scope Brainstorming Market Research Concept Generation Prototyping

Gabriele Filkauskas Lizzie Goodburn Kenji Huang Remington Ong Jennifer Smith Beril Anavi Tari


Next 2 months

Concept Refinement Brand Development Business Planning Venture Pitch


Part

Part

1 2

Venture Pitch Mission Opportunity Identification Product Offering User Scenario Market Opportunity Operations Brand Strategy Financials Barriers to Entry Management Team

Process Research Brainstorming Conception Selection Prototyping Form Refinement Logo


Part

1


“

Design the best human centered sporting goods solutions

The goal of the venture is quite simple and straightforward. Votre aims to produce the best products that will improve the fitness experience with a human centered approach to drive our innovations.

Venture Mission

�


“

Our first product will focus on the gym users. In terms of health and wellness, we chose the gym environment because our research suggests the gym offers many opportunities for improvement in the user experience, and our desire to make a big impact.

Product Scope

�


Opportunity Identification Customer Research


hygiene

Opportunity Identification Gym Environment

convenience


Validation Lead User Interview Consumer Survey Urban Lifestyle Trend Customer Journey Observational Research


hygiene

There is a need for proper access to hygiene in health clubs. Most people like to present themselves positively and showering after working out is important, especially if they are planing to go to another engagement.

Opportunity Identification Hygiene at the Gym


Graph provided by study conducted by the London School of Economics Source (http://www.urban-age.net/cities/istanbul/data/2009/)

Opportunity Identification Hygiene at the Gym


Urban Lifestyle

DATE DINNER

HOME

GYM

HOME

WORK

skip

The young professional urbanites are busy people. Many prefer not to waste time having to go home after the gym before going on to their next engagement.


Convenience

Opportunity Identification Convenience


Customer Journey


“I forget things about 3 days out of 7” “Travel sizes are so expensive” - Professional Athlete Interviewed

Interviewing our lead users, they expressed the many functional needs that are currently unmet regarding hygiene and primarily showering at the gym.

Opportunity Identification User Needs Research


User Survey

Survey of 40 Men and Women 25 - 35 years old

I dislike the Products Provided I forget my Products I sacrifice my Routine My bag is Bulky or Heavy My toiletries are Disorganized My Products Leak

0% (Survey conducted on SurveyMonkey.com)

10%

20%

30%

40%

50%

60%


User Scenario with Associated Pain Points Using lead user interviews, surveys, & observational research, four main stages of the user journey were identified with the pain points associated with each stage. A successful product would have to address these issues.

Opportunity Identification User Needs Research


User Pain Points

1

2

3

4 At Home

Home to Gym

Gym to Shower

In the Shower

Forgetting items Leakage Many bulky items in bag

Many items to carry Difficult to find in bag

Slippery bottles Difficult to identify contents Need to reach or place on floor

Items are wet Refilling difficult Can’t see remaining contents


Product Offering Winning Features


1

Home to Gym Semi-transparent shower module prevents forgetfulness

2

Leakages are contained to sides No more bulky bottles

Product Offering Features

(Earlier Prototype Depicted)

Gym to Shower Single unit to carry to shower Addresses Portability


3

In the Shower Module unzips and turns into a shower dispenser Hangs from the shower spout Customized storage in lower section

4

At Home Transparent container shows how much product is left Easily refillable


User Scenario A Votre World


External Shower Module means you will never forget to bring your toiletries again.

User Scenario: What does a Votre World look like? Product Solution / Added Value


Shower Module unzips and becomes a dispenser that can be hung on the shower spout. No more reaching for the shampoo on the floor.

Easy dry mesh means the shower module drys fast and continues to ventilate


Market Opportunity Trends & Growth Potential


45,500,000 Gym members in the US - or -

1 in 7 Americans

(Source: The International Health, Racquet & Sportsclub Association, 2009)

Market Size

Gym Users & Industry Revenues


In 2008

$ 66.3 Billion US sporting goods market (1) - and -

$ 52.1 Billion US toiletries and cosmetic industry (2)

(Source: 1. Sporting Goods Manufacturers Association, 2008 & 2. Euromonitor, 2008)


Growth in 24 Hour Fitness Clubs 450 440 430 420

Number of Health Clubs

410 400 390 380 370 360 350 340 330 320 310 300 2003

Market Trends

2004

Health Club Growth and Media Interest

2005

2006

2007

2008

Year


Growth in Fitness Media Interest


Operations Execution Plan


Phase 1

HQ in San Francisco Bootstrapping: home office

IP Protection File Patent/Copyright

Manufacturing, Sales, and Distribution Form Partnerships with manufacturer Launch product in month 5 at trade shows Focus in CA where gym user penetration is highest at 18% Secure purchase orders Partner with small business distributor, Door to Door

Operations Milestones


Phase 2

Develop Product Extensions Back pack version of current gym bag offering Horizontal Products Extensions: Tennis, Basketball, etc.

Marketing Campaign (Stage 1) Strategic low cost advertising Fitness Blogs Web ads Product trials by lead users: Trainers, Athletes

Partnerships Pursue Fitness Club partnerships: LA Athletic Cub


Branding Strategy

Victory through Differentiation


An integral part of the Votre company is its brand identity. Votre is uniquely positioned in the high end gym market away from its competitors in the sporting goods industry. Branding provides one aspect of Votre’s defensible position.

Brand Strategy Positioning


Positioning

Target Segment Image conscious gym user who want prestige Avid gym user who want performance

High End Product New essential features (interest) High quality / Status (loyalty) Balance of fresh and understated styling

Bread winner vs. Rebel Image Bread winner image differentiate from competitors Reflect more sophisticated tastes of segment


Image conscious gym user who wants prestige

Brand Strategy

Customer Segment Mood Boards


Avid gym user who wants performance


Du

tre Vo g, ba m GO OI Gy g, Ba a m er Pu ck , Lo at rc a m we Pu Po p, i Gr ike re l, N Co ffe

M VI

Locker Bag, OIGO

Powercat, Puma shoulder strap shoe compartment waterproof

ventilated drying design Core Grip, Puma

IV M Duffel, Nike

toiletries compartment toiletries integration modular compartments adjustable size

Brand Strategy Product Differentiation


Less Gym Oriented More Gym Oriented

Less Shower Focused

More Shower Focused


Form Language

Sophisticated Quality Performance

Brand Strategy Product Differentiation


Horizontal Product Extensions

Research & Development


Locker Bag, OIGO

Votre Pricing Cost estimate

$60.50

Margins (50%)

$30.45

Wholesale Price

$99.95

RRP (25% Retail Margin)

$125.00

$70.00 Powercat, Puma

$65.00 Core Grip, Puma

$46.00 IV M Duffel, Nike

$40.00

Brand Strategy Pricing & Promotion


Promotion GQ Magazine Sample Ad


Financials

Projections & Funding


Target Market Share for Year 3 In our financial projection, we aim conservatively to capture 1.1% of the 45.5 Million US gym user market with our product and a future possibility of expanding internationally.

Financials Market Share


Total Users 45,500,000 US Gym Users 30%

Target Segment Middle to High End Users

13,650,000 US Gym Users 1.1% by Year 3

155,000

US Gym Users

Target Market Share


Financial Projections With 1.1% of the market, we expect to have 12 million dollars in revenue from our first product by year 3. With a discount rate of 40%, short term growth rate of 8%, and long term of 3%, our initial firm valuation is $4.1 million.

Financials Projections


Revenues

Month 12 Expect to capture 0.02% of the market $ 293,000

Month 36 Expect to capture 1.1% of the market $ 12,000,000 For calculations including assumptions made refer to Votre Business Plan


Fund Raising To enable Votre to quickly capture the market and establish our brand, we are seeking funding of one million dollars. The funds will allow our company to make strategic hires, provide initial production run costs, and implement our marketing strategy.

Financials Securing Funds


Seed Funding Execution Plan, Phase 1 $ 50,000

1st Round Funding Execution Plan, Phase 2 $ 1,000,000


Barriers to Entry Votre’s Defensible Position


Defensible Position Votre’s position is defensible in 3 ways: branding, IP protection, and cross industry nature.

Barriers to Entry 3 Factors


IP Protection Patents provide some protection Company asset

Branding

Branding Niche market segment under radar Create brand loyalty

Cross Industry Product

IP Protection

Cross Industry Difficult for established companies to gain expertise in both sporting goods or the toiletries industry Large competitors lack agility


Management Team Roles & Experiences


Consultants Jennifer Smith

Remington Ong

Business Development

I-Banking Analyst

Lizzie Goodburn Capital Markets Lawyer

Management Team Votre is led by a team of diverse people with a variety of complementary professional experiences. Along with the core team, Votre also has access to consultants and an advisory board with expertise in the field of soft goods.

Team

Experience


Beril Anavi Tari (Operations, Sales/Marketing) Beril is an experienced project manager and has international experience in advertising sales, retail banking (customer service management) and IT project management. She is a graduate of Columbia University with Magna Cum Laude Honors. She completed her MBA at INSEAD and speaks English and Turkish fluently

Gabriele Filkauskas (Finance) 5 years of international experience in asset management. In her last position, as a Director of Atlas One Financial Group, she was responsible for the development of investment structures, funds’ due diligence, and investments’ execution. Gabriele graduated with honors from INSPER/IBMEC - São Paulo, Brazil with a bachelor in Business Administration and an MBA from INSEAD

Kenji Huang (Design, Branding) 4 years experience in consumer and lifestyle products. Focused on human centric design, he has experience working for Black and Decker, Restoration Hardware and short term projects with State Farm Insurance and Avery Dennisen. Kenji’s education includes: Product Design from Art Center College of Design; a double engineering degree from UC Berkeley and selected to participate in the MBA Design Exchange program at INSEAD.


On the last day at INSEAD, the designers presented their continued work: a development from the original work of the designer & MBA team. Here are some of the comments from thar Votre Presentation.

Pitch Reviews


“Great improvement on design. Love it! Do it! Very articulate.” “Great presentation. Fun! Energetic. Good user research. Great branding.” “Loved humor, barriers to entry. Answered questions well. EXCELLENT” “Good start , good opportunity ID. Concept thru the impact of prototype. Great form language. Barriers to entry discussion was great. Great presentation” “Spot on the target market. SOLD!!!” “Great upgrade from the initial SPSD concept!!! Great presentation.” “Great confident and convincing presentation. Good pace, spoke with authority. Hit critical key points re: NBV issues. Good connection with audience until the end.” “Excellent pitch- Verbal and visual.”


Part

2


Process Remington shared with us his soap in a bag, his current method of carrying his toiletries. Gabriele and the rest of the group were disgusted.

Toiletry Research


Process What we have to read? Our course reading materials (the first of two) was quite intimidating at first.

Our First Day


Mind Mapping


Process Brainstorming


Chosen Direction

Concept Selection


Process

Form Development

Our team went forward with the bag concept because we saw the highest potential of an integrated product solution.


Functional Model: Seeing how we could make the modular system work.

(Right: We decided to dress the part in gym wear for our presentation)

Prototyping


Process


Form Refinement


Process


Running up Votre Gym Bag Looked Too Mascline

Form Refinement


Process


Logo Concepts


Process

V

V

VOTRE

VOTRE

The end logo was chosen because it was both modern and classic. The crest and the theme of battle was adopted in our brand identity as a means of expressing our emotional benefits of protection and pride.


Fin


Process

Votre - Gym Bag  

INSEAD Project

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