“A product that will keep you warm anywhere anytime” Product & service Innovation Prof. Sung Joo Bae Product development process Product Innovation process Market Prediction • • • • • Market research Customer research Competitors Technological trend Market Practicality Product development Marketization • Market Segmentation • Market positioning and strategies through 4Ps Problem Identification: Ways people keep warmth Idea: Ways that can allow people to feel warm outside Air Heaters Problem: they make the skin too dry Ideas: -Making a heater that combines the humidifier -Detects the humidity of the room Hand warmers -Electrically heated -Hearted through natural energy e.g. Solar panels A pocket warmer -A separate material that fits in to the original pocket and heats up the pocket Heating clothing -Designed as a sweater or a scarf to make it more user-friendly Feet warmers -Making electrical heating attached to the shoes (redesigning the functionality of the shoes) -Having a separate part that warms the feet that can be taking off as well as freely be attacked to any shoes -Using the space that has cushioning on the shoes, put technologies that produces heat according to ones movement Direction of the Product PRODUCT Technology Driven design User Driven design Perceived customer needs • Customer’s need for products that warms their body has already been perceived • Companies have been already trying to fulfill this needs Subconscious customer needs • So it is important to have short product developmental period in order to produce the product as fast as possible • Also it is about “differentiating” from other products that may produce body warming products Market research: existing products Product Description Price (won) Chemical hand warmer Reacts to oxygen by pressing a button inside the product OR by shaking the product it produces heat through chemical reactions 500~2000 Oil type hand heater oil that is used for hand lighters are used to refill the device and then turned in to heat when needed) Electrical hand heaters Can be recharged and used later by turning on the switch. 14,000~25,000 20,000~70,000 Market research: existing products Product Description Price (won) Biker’s hand heater It is connected to the battery of the motor cycle to produce heat. It usually cannot be separated from the power supply but some products can be separated by using Lithium ion batteries. 10,0000~35,0000 Electrically heated slippers When plugged on the electricity the product heats up the bottom part of the feet 10,000~40,000 Understanding needs: Survey QUESTIONS 1. What part of your hands and feet do feel the most heat loss? Hand: Fingers Palm Back of the hand Feet: Toes Back of the foot Sole 2. Do you use a heat warmer of some sort during the winter? Yes no 3. What are the problems with existing heating products? (chemical hand warmers, electrically charged warmers etc.) • Flexibility • Portability • Convince (re-chargeability or physical movement ) • Not enough heat • Does not look good Hand: Feet: (38) (23) Fingers Palm (19) Back of the hand Toes (43) Back of the foot (19) Sole (18) Yes (32) no (48) • Flexibility (9) • Portability (23) • Convince (re-chargeability or physical movement) (27) • Not enough heat (21) • Does not look good Market survey What do customers want ? New Product Available Products • Not very portable (aesthetically not appealing ) • Not convenient (not for every use) • Not much flexibility • Maximum flexibility with the product • Portable outside aesthetically & functionally • Convenience by allowing more movement and a more convenient product usage (more fit for everyday usage) Product concept Product Concept Warms the hands and feet with below features • Portability/ convenience • Aesthetically appealing products • Flexibility • Adaptability to different environment and usage of hands and feet • Easy to use products Idea sketching no.1 1. 2. Idea sketching no.2 4. 3. Idea sketching no.3 5. 6. Idea sketching no.4 7. Idea sketching no.4 Self-supplying footsole Idea: re-charging product through a material that heats by the reaction of the physical movement of The feet How it could work: use dynamo to generate electricity by the up and down ward moving of the hee. The electrical product generates 4.8 AV Voltage Problems: - Dynamo is fragile and needs enough space - There is no heat generated when not moving so the person have to continue to move to generate heat. Designs & Functionality detachable For flexibility and adaptability for different environments make the heating patches detachable so that the user can heat up different parts of the hand Designs & Functionality • Heating panel and the shoe material should be able to be separated for wash • Also this will allow to make supplementary products for further profit Stage 2: Research & analysis Anatomy of the Hand & Feet Anatomy of the Hand & Feet: Observation and Research Observation -Uses top of the finger for to touch the screens eg. Smart phones -People usually have the hand warmers on the palm rather than on the back of the hand -Also rubbing the palm makes better blood circulation and heat from friction -people feel the need for the palm to be warm as well Research -Has low blood circulation -Fingers are constantly bended -According to the infra-red observation it is the warmest part of the hand -Most heat but at the same time most sensitive -Most bended part of the hand Analysis of materials Valuation Criteria Safety Definition High/ Low Melting point Stretchiness The flexibility of the fabric Cost Cost of the fabric Heat Technological Advancement To produce heat Thickness How thick a single layer of fabric is Washable Easy to wash Analysis of materials Materials Polyester ES (electro spinging) Carbon Fiber Nylon Spandex Safety Stretchiness Cost Heat Thickness Washable 16 17 12 18 15 Analysis of materials Materials Neoprene Ventile PCM Micro Fiber Nitrile rubber Para-aramid 15 14 17 Safety Stretchiness Cost Heat Thickness Washable 11 13 18 Analysis of materials Materials PCM Nylon Safety Stretchiness Cost Heat Thickness Washable 18 18 Analysis of batteries Lithium Ion Lithium Polymer NiCd NiMH battery 8 6 Thickness Fast-charge time Energy density Cost 8 12 Batteries Lithium Ion Battery Lithium Polymer Battery Lithium polymer chemistry differentiates itself from Lithium Ion in the type of electrolyte used (a plasticlike film that does not conduct electricity but allows ion exchange - electrically charged atoms or groups of atoms). The dry polymer design offers simplifications with respect to fabrication, ruggedness, safety and thinprofile geometry. Cell thickness measures as little as one millimeter (0.039 inches). Can be formed and shaped in any way imagined. Improved safety - more resistant to overcharge; less chance for electrolyte leakage Stage3: Prototyping & Validations Experimentation: Action 1. Understanding the materials Experimentation Experimentation • No wires • Placed at the important areas • Top of the sole, Fabric on top. Experimentation Experimentation Experimentation Experimentation Removeable Battery Experimentation Found new materials during our experimentation and replaced the original wiring system to this! Thus the design became more suitable to our original targeted function! •Low price •Thin as paper (aesthetical purpose) •Well functions with heat Experimentation 2. Experimenting with wires and heat Heating wires for electrically heated seating cushion Material that is known to help maximize heat Wire positioning Warmth comfort concentrated on the toes On the top of the feet Bottom of the feet Along the toes The heat from the bottom warms up the whole feet more efficiently Final Design Inside Layer Outer Layer-supplementary product Final Design Customization by allowing to cut the material 240 Detached 235 230 Heating material Stage5: Business Model & Market Position Market Position H Complex products with clearly defined market requirements Complex products with difficult to define market requirements Simple products with clearly defined market requirements Simple produces with difficult to define market requirements Structural Complexity L L H Functional Complexity Market Position H Structural Complexity Simple products with clearly defined market requirements L L H Functional Complexity Market Position Market Segmentation 15-24 Professional-use 25-34 45-54 55-64 65+ A B C Basic-use D Sports wear Basic use Targeted on younger female customers with low price and characterized product designs General use •Targeted on younger female customers who are fashion conscious and wants to use the product in everyday use. •Thus the product targets to customers who has buying power to not only buy the heating products but the supplementary products. •Professionals or highly equipped customers are targeted with high price and high functionality •Also designed to be more targeted on male than female customers. Marketing Mix Lithium polymers=2000-3000won PCM capsule materials = 8,800-13,200won/m2 Heat layers= 2500-3000won Material cost (feet)=800-1200won Electrical circuits=300-500won 1. Online Price per unit 2. Offline Foot wear: 5,600won Hand gloves: approx. 13,600won (+production, promotion, distribution cost) Having a booth where people can come and experience the product first hand before purchase Price • • SNS channels Youtube (a commercialized video that shows how to use the product for the customer to understand how the product works) Promotion Marketing Mix Product 1. 2. place Hand warmer gloves: With a thin layer that warms the gloves there will be a complementary product that is fashionable to wear on top of the first layer. (small, medium, large) Feet heaters: the size will be able to be customized for the customers to an limited extent. Because of the different kinds of shoes that the product will be used it is important that the product can be used in any shoes. 1. Online • • Facebook page (SNS channels) Online stores connected to larger online retail stores such as Gmarket or Auction. 2. Offline Multi-shop stores pop-up stores/ temporary stores Thank you!