Tuesday, October 20, 2009

Project Progress and Positioning Update: Skiing Locator

Cua, Evans, Kiepfer, Peltier, Vigrass, Zhou

Process Screening and Concept Evaluation
Our initial category was temporary workspaces. However, we struggled to find concrete unmet needs where we could agree on a solution. Of the few solutions that we were excited about (one of which was a laptop screen with better in-sunlight performance), the barriers to their adoption were more due to technological viability than an unaddressed need. Finally, for the table idea we presented in class, there was a disconnect between the end-user and the customer which we were unable to resolve.

We physically met and brainstormed new categories, and one of them bubbled to the top: how to find friends where there is no clear or good cell phone reception. We had all experienced this need at one point or another and the market had no obvious solutions. We decided that this unmet need was a prime target for our project. To further our initial idea into product concepts, we played an email game of ping pong, which was effective since we were in different places and could respond asynchronously to everyone else’s ideas (Screenshots in Exhibit 1). It was here, along with our brainstorming session in class, that we formed some great leads toward viable product ideas.

Needs identification
Problem identification: “How can I find my friends on the ski slopes after I lose them skiing?”

The underlying needs expressed in this problem span multiple levels of Maslow’s hierarchy:
· Safety needs: Skiing in a group is safer than being alone on the mountain
· Belonging needs: I feel a sense of belonging and acceptance with my group of friends on the slopes
· Esteem needs: I gain respect from others, self-respect and confidence when skiing with my friends

Ethnographic research interviews we conducted indicate that this need is not sufficiently met by current products
· “My cell phone doesn’t always work on the slopes so I don’t get people’s text messages on time”
· “I hate taking off my gloves on the chairlift to text someone – my fingers get so cold!”
· “I can’t even see the screen on my iPhone in the sunlight”
· “My battery dies really quickly in the cold”

We also conducted limited observational research; we observed that about 30% of people entering a bar spent a great deal of time looking for their friends/group.

Market analysis and identification
· Primary (and initial) market: Social skiers and snowboarders in the US. Both specialty retail and rental channels.
· Secondary markets: people who want to find each other in other cell phone-unfriendly situations (e.g. bars, clubs, festivals/outdoor events, hiking, airport, international destinations)
· Tertiary markets (not person-to-person but person-to-object): lost handbags, lost keys, find car in parking lot, etc.

Upon launch our primary target market is the avid social skier. We identified the need to be the strongest in this market and social skiers are used to purchasing equipment to find each other (walkie-talkies).

According to the Kottke National End of Season Survey, in 2009, the total number of skier visits in the US ski industry was 57.4 million, down slightly from 60.5 million in 2008[1]. In addition, the SIA Retail Audit report estimates the US market for ski/snow apparel and equipment was estimated at $1.7 billion (35% for apparel, 31% for equipment, and 34% for accessories)[2]. In a separate report, IBISWorld estimates total industry revenue in 2009 at $2.5 billion[3]. Half of the $2.5 billion was allocated to the use of recreational facilities while approximately 5.6% is allocated to rental and leasing of goods and equipment[4]. We are eager to grow the $530 million skiing equipment market with our new product.

Our preliminary market research is presented in Exhibit 2. Further research is required to determine the size of our specific market: the number of social skiers in the US (estimated at 20 million people). Further research will also go toward finding revenue figures for the most comparable market: walkie-talkies.

The Product
The product will be a small device that will indicate the distance to and direction of your friends. It will require your friends to also carry the device in order for your device to be able to locate them.

The need for this product is easily identifiable and current. It will be less functional than walkie-talkies and cell phones in terms of real-time communication. We anticipate being able to sell the product for a relatively low price point. Therefore we anticipate that this product will be disruptive to the mobile communications market.

Positioning statement: [Product Z] is the ideal accessory for avid social skiers because it helps you find your friends when cell phone service is questionable and walkie-talkies don’t suffice.
[1] Kottke National End of Season Survey (National Ski Areas Association, 2009).
[2] SIA Retail Audit, 2009.
[3] “Ski Resorts in the US,” IbisWorld 31 Dec. 2008.
[4] “Ski Resorts in the US,” IbisWorld 31 Dec. 2008.

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