Microfridge: the Concept"

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  • Topic: Marketing, Price, Microwave oven
  • Pages : 3 (827 words )
  • Download(s) : 350
  • Published : March 11, 2008
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"MicroFridge: The Concept"

User benefit statement
Using a MicroFridge, a unit of refrigerator, freezer and 500-watt microwave oven, the customers who have limited electronic power and small space in their accommodations, will enjoy more safe, compact, and convenient cooking in their place. •Safety: Newly developed electronic circuitry will pull approximately a half of amps of current of using hot plate with refrigerator which has high risk of getting fire. •Compact: only weighing 87 pounds and under 4 feet in height.

Target market
The potential target is who provides or stay at limited electronic power and space as accommodation. However, from the strategic view point, to establish track record and brand efficiently, our first direct target is dormitory market. After establishing the brand and reliability, we might expand other market collaborating with distributors and manufactures as next step.

•College students (Direct beneficiary):
Students usually use hot plate which easily gets fire in their dormitory. We assume the reason they don't use microwave oven is that microwave oven is expensive, and take place with refrigerator. •College administrators (Indirect beneficiary)

Administrators want to avoid the fire which is caused by hot plate.
•Motel manager (Indirect beneficiary)
Managers want to increase their guests. MicroFridge provides the value added service which meets the guest's needs for cooking in motel and might increase the guest.

•Countries, such as Japan, Korea, Hong Kong, which has limited space for accommodation.

Cost oriented approach
Break-even point in wholesale price will be US$ 309: landed price US$ 263 * 15% margin which will cover initial cost (tooling US$170,000, administration US$300,000, and legal cost US$60,000), when we assume we can sell 11,435 units. In other words, we should assume how many...
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