choque, devadas, hebbar, jha,mignogna roomba
Post on 14-Sep-2014
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Strategic Management Technology & InnovationInnovationStrategic Management
Technology & InnovationInnovation
Dante Choque ·Thulasi Devadas · Akhil Hebbar · Rakesh Jha · Guilio Mignogna
Roomba in IndiaRoomba in India
Industrial, Science, Technology
• Advancements in Science and Technology brought by Industrial Revolution in 1800s
• Manufacturing led to pollution, dirt and soot
• Louis Pasteur discovery• Infectious diseases are caused by germs
• Focus shifted to hygiene and cleanliness
Industrial Pollution->Germ Theory-> Technological Innovation!!
Industrial Pollution->Germ Theory-> Technological Innovation!!
Birth of the Vacuum Cleaner
Motor operated ->Wet dry -> Deep cleanser -> hard floor
Carpet Cleaner-> vacuum cleaner
No motor, fan operated
1860
1901, engine operated
1900-2000
After 1901..Suction concept led to vacuum cleaner invention
2002- Meet the Roomba!
• Powerful suction and rotating brush • Schedules time, location for cleaning• Returns automatically to the home base for
charging• Keeps out of certain areas• Directs it from one room to another• Keeps away from unnecessary tangles
A robotic vacuum cleaner- Making a difference in anyone’s life!
Presentation Video
Revolutionary ProductManual Operated Roomba
Low Power Consumption
Storable
Large Dust bag
Cleans under furniture
Scheduler
Automatically recharges
Need for the product
Growing Middle class market• GDP growing at a rate of 7.9% per annum
Rising Inflation - @ 7.5%• Increasing cost of domestic help
Fast city life• Average Indian works > 60 hrs/week
Safety concerns for working parents and senior citizens
• Increasing crimes by people hired for domestic help
Roomba works best on tiled floors• Suits Indian floors
Other Substitutes
Maids- domestic help
Manual Operated vacuum cleaners
• Hardly used in the houses
• Views it as a space consuming, unnecessary product
Use of mops, brushes and brooms
Impacts on the Society
Market dominted by a single company- Eureka forbes with 70% market share•2.5m satisfied customers •Manual operated vacuum cleaners
Increases competition•Other companies compete for market share
Drives Innovation
Impact on the society … contd
Facilitate the lives of families•Resolves health problems•More time spent with the family
Storage Space• Space utilization in the small city appartments
Decreases the dependability on the maids for domestic help
Live the change…
BeforeBefore
AfterAfter
Roomba
Stakeholders and Society
Stakeholder Analysis
Power
Interest in Outcome
Keep SatisfiedSocietyPress
Competition
MonitorMaids
Keep InformedSubstitute products
companies
Manage CloselyCustomersRetailers
Government IP lawsShareholders
Low
High
Low High
Barriers to Business – PESTEL Analysis
Porters Five ForcesPorters Five Forces
Entry Barriers - HIGHProprietary product differencesBrand identity of Local players is highSwitching costs are lowCapital requirementsLimited access to distributionNo Absolute cost advantagesProprietary low-cost product designGovernment policy – High import duties.High degree of retaliation
Buyer Power - HIGHBuyers have high Bargaining LeverageBuyer concentrated in urban areasBuyer volume is lowLow Buyer switching costsMany Substitute products availableHighly Price Sensitivity BuyersLow Brand identityBuyer not very profitable Decision makers are housewives
Rivalry - MEDIUMSlow Industry growthIntermittent overcapacity Low degree of Product differences.Few firms with high Brand identity.Switching costs are relatively low.Diversity of competitors – Both local and International
Supplier Power - MediumLow Differentiation of inputsHigh switching costs Presence of substitute inputLow Supplier concentration Volume is important.
Substitution Threat - HIGHLow priced better substitutesHigh Buyer propensity tosubstitute
IMPLEMENTATIONSTRATEGIES
Target Market
Nuclear Family (double income)• Lives in smaller city apartments
Working mother in the cities• India is a male-dominated society.• Women are more career oriented.
Yuppies (Young Urban professionals)Retired Senior Citizens living alone
ImplementationProduct design changes• Indian floors are not carpeted
Product Distribution• Introduce in Self operating stores and larger retails• Online selling• Direct Marketing
Customer Service• Door to door demonstration• Online help
Implementation
Branding and MARCOM Strategy• Brand endorsements by celebrities• Flyers, door to door campaign• Educating the consumers about the benefits through
in store demonstration• Sponsoring all-women events.• Internet Advertising • Billboards• Television Advertising
QUESTIONS
Characteristics of Indian society