Micro Fridge

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 Group 5 Anuran Saha 13P010 Arjun Murthy 13P012 Biswadeep Das 13P015 Divya Yadav 13P020 Ishita Bhatia 13P024 Amol Parab 13P030

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Case microfridge - presentation

Transcript of Micro Fridge

Group 5

Anuran Saha 13P010Arjun Murthy 13P012Biswadeep Das 13P015Divya Yadav 13P020Ishita Bhatia 13P024Amol Parab 13P030

The StartBob Bennet Masters Degree in Engineering ManagementRestless in his present jobDesires to start his own companyHis forte - SalesA unique idea combination of microwave oven + refrigeratorIdea liked by the Housing Director of Boston UniversityAsks for royalty from GE for this idea. Later, rejects it

MicroFridge

MicrowaveFreezerRefrigeratorAbout the productCombination of refrigerator, freezer and microwave unitTargeted at home away from home segmentBenefitsWould help solve electricity problem in schoolEnergy efficientStudents could cook safelyStudents could purchase food from stores on campusParents concerns were addressedConvenient and easy to useVery useful for military bases and hotels/motels

The Survey5000$ spent on market surveyFindings College students unhappy with current single-door refrigerator modelsWanted a 2-door model with separate freezer compartmentWilling to pay for one (new model) in their room

Conclusion College students are most interestedAwarded a Patent

MicroFridge Inc.Co- Founded by Bennet in mid-198735,000$ - his initial investment (60% ownership)Raised another 1.2M $ in next 3 years

Japanese ForesightAfter initial rejection, Bennet approaches Japanese companiesSamyan shows interest in the product1987 - Work on 1st prototype starts 2nd Patent obtained giving equal rights to both partiesContract signedSamyan to supply all Microfridge units through July 1995Samyan cannot sell or license the manufacture of units to anyone else through July 19971988 - Samyan completes 1st PrototypeSamyan condition 100$/unit to be paid at time of order

MicroFridge ProductsUnder considerationCombination of TV/VCR/Stereo

Microfridge unit Microwave oven - 600W, 0.5 cubic foot storageRefrigerator - 2.1 cubic feet storage Freezer - 0.7 cubic feet storage Price 399$ MicroMart Dry good storage and display unitSide by side refrigerator/freezer MicroBar A modern design minibar for use in hotel roomsOnly refrigerator segmentMore energy efficientTarget MarketHome away from HomePotential market elderly assisted living apartments (over 1 M)

Military Bases200 military basesMilitarybarracks/ bachelors quarters - 280,000 rooms25% revenue shareMajor success factor Military sales coordinator

Colleges1877 schools with housing 1.25M dorm rooms1994- 55,000 rooms had their unit55% revenue shareRevenue Model (Sell or rent) :Campus wide InstallationCampus rental programCompany Rental Program

Hotel/MotelOver 3 M hotel/ motel roomsMany of them not having on-site restaurantsDifficult for guests to find food service away from hotel Revenue model with or without Microfridge in the room (3$ charge)Selling food through MicroMart unit at motel lobby

Sales and DistributionInitial Failure DistributorsReason unable to sell MicroFridge units through retailSuccess Direct Sales ForceSales Forecasting

Customer ServiceAimed to deliver 1st rate Customer serviceCustomer feedback every 6 monthsImmediate shipment of product within 48 hrs in case of repairs1 extra replacement unit given free for every 100 units ordered

CompetitionLimited degree of competition with retailers selling microwaves and refrigerators, and leasing companies15% of colleges on contract with leasing companiesAcquisition of Campus Equipment CompanyTo run midwestern leasing operations Got contracts with 16 large collegesEstablished relations with 39 schools

Options and DecisionsOptionsSet up new distribution channelStick with high priced Samyan

DecisionDaewoo (Korean Company) to supply microwave ovens at 83$Since Samyan did not accept delivery from them, Microfridge decided to use 4 regional warehousesSo, Daewoo microwave shipped to warehouse closest to customerSamyan microwaves (rented) Went to warehouseSamyan Microwave (Selling) went directly to costumer

Plan for the futureFocus on new products in home away from home categoryIncrease entry barriers in the marketIncrease sales rapidly

Growth so farFirst-mover advantage: Home away from home market-Technological leadership- preemption of assets- buyer switching costs

Strategic Acquisitions

ANSOFF MATRIX

Growth in the futureMore products to sell to home away from home marketInternal Corporate VenturingAutonomous Strategic BehaviorInduced Strategic Behavior-No direct reference to existing strategic concept -Radical innovations eg iPod-Implementation of objectives & measures within the strategic concept-Incremental innovations eg iPhone Four Models of Corporate Entrepreneurship Resource AuthorityOrganizational OwnershipDedicatedAd HocDiffusedFocusedAdvocate ModelSTRATEGIC GOALFUNCTIONINPUTSOUTPUTThank you