promenaid a power grip solution - mbacasecomp.com · • helicopter parenting threats • growing...
TRANSCRIPT
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PromenAid
A Power Grip Solution GSB CONSULTING, GOODMAN SCHOOL OF BUSINESS
BROCK UNIVERSITY
BRADEN DAY, CARSON BENDER, PULKIT MODI, ASHWANI JANAGAM
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The Issue
How can PromenAid stimulate and manage growth?
Key Success Factors
1. Increased reach to influencers
2. Focused target market
3. Increased brand recognition and product awareness
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Recommendation
Attack and grow the residential market for the PromenAid handrail.
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The plan▪Upgrade IT infrastructure to support growth▪Purchase off the shelf software and hire an IT manager
▪Create targeted online ads to stakeholders of the user▪Reduce the stigma of owning a railing
▪Become a recommended product of recreational therapists ▪Promotional offers and direct marketing
▪Exploit the DIY ability of product▪Be able to sell the product off the shelf at retailers and online
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Current Situational Analysis
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Value Proposition▪ Patented design – ADA certified and code compliant
▪ ‘Do it yourself’ product – Easy to buy and install
▪ Innovative product features – Power grip and sexy design
▪ Well made product – durable and warrantied
▪ Focused market growth – General residential and specialty residential segments
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Differentiation MapSafety
Aesthetics
PromenAid Handrail
Wooden Handrail
Metal Handrails
Hybrid Handrails PromenAid handrail is very unique and is well differentiated from its competitors.
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Price-Value Curve
Price
Value
PromenAid Handrail
Wooden Handrail
Metal Handrails
Hybrid Handrails
PromenAid handrail is positioned well to focus on the DIY residential market.
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SWOTStrengths• Innovative Product• Attractive Product• Management Experience
Weaknesses• Lack of focus• Small product portfolio• Poor brand and product recognition
Opportunities• Ageing baby boomers • Helicopter parenting
Threats• Growing competition• New buildings coming with
preinstalled handrails
Key takeaway: accomadated the customers needs
Key takeaway: improving distribution channels
Key takeaway: targeted residential market
Key takeaway: expand into commercial markets in the future
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Alternative Analysis
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Alternatives
1. Focus on the residential market and the DIY ability of the product
2. Joint Venture with a contractor
3. Buy out competitors
4. Product expansion
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Alternative 2: Joint Venture with a contractor ▪ + Assured returns
▪ + Less volatile future
▪ - Less profit
▪ - Does not address the issue of brand awareness and product recognition
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Alternative 3: Buy out competitors▪ + Quick and assured results
▪ + Expansion of products and thus increased target population
▪ - No increase product awareness
▪ - Unsustainable growth
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Alternative 4: Product expansion▪ + Aligns well with owner’s core competency
▪ + Widens targeted market
▪ - Time and resource consumption
▪ - Lesser marketing resources per product
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Alternative 1: Focus on retail chain for residential market
▪Run advertisements on digital platforms for the stakeholders of user
▪Collaborate with independent hardware chains
▪Leverages the core competency of owners and existing product
▪Target market is 34 million private households
▪Favourable decision criteria (Affordability, Aesthetics, Ease of Installation)
Buy PromenAid Handrail for your mom at Home Hardware or at Amazon!
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Decision Matrix
AlternativesGrowth
Potential Product
Awareness Financial Impact Timeliness
Residential Market with Retail Chain
Joint Venture with a contractor
Buy out competitors
Product expansion
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Implementation
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Implementation
Digital marketing
2017 2018 2019 2020
Look at US markets
Home Hardware expansion
New hires
Develop IT infrastructure
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Implementation - Year 1▪50 Home Hardware retail locations
▪5000 occupational therapist’s recommendations
▪Hire an occupational therapist representative
▪Buy an off the shelf IT infrastructure
▪Hire an IT manager
▪Develop a digital marketing campaign▪ Focus on the stakeholder of the user
▪Hire a social media manager
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Implementation – Year 2▪150 Home Hardware retail locations
▪10000 occupational therapist’s recommendations
▪Use the data collected to focus the marketing campaign▪Evaluate on the basis of conversion rate
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Implementation – Year 3▪300 Home Hardware retail locations
▪25000 occupational therapist’s recommendations
▪Evaluate the success of Home Hardware and look into US expansion▪If store numbers have been met and sales are strong
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Implementation – Year 4▪550 Home Hardware retail locations
▪50000 occupational therapist’s recommendations
▪With continued expansion the IT infrastructure will need to grow as well
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Financial Analysis
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Projections
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16000
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2016 2017 2018 2019 2020
Rev
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's)
Year
Projections
Revenues Gross Profit
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Costs
Salaries $120,000New Hire Salaries $250,000IT Infrastructure $50,000Digital Marketing $250,000Direct Marketing $100,000Travel $25,000Total $795,000
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Risks and Mitigations
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Medium probability – Stigma preventing new sales
If the stigma of “being weak” because you have a handrail in your home is more difficult to overcome.
▪ Continue marketing focus on the stakeholders of the user, emphasising the dangers of falling
▪ Use advertising to emphasise that not falling is not weak
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Medium Probability – Can’t keep up with the demand
With successful implementation of the plan, sales are exponentially higher then what is expected.
▪ Increase production while maintaining product value
▪ Hire new FT employees to manage and eliminate the bottleneck
▪ Hold more inventory and increase safety stock reserves
▪ Customer retention for backorders
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Medium Risk – Direct competition A competitor releases a very similar product to the
PromenAid handrail.
▪ Increase marketing budget – focus on the benefits of the PromenAid handrail
▪ Ensure product does not violate current patent
▪ If possible, acquire the company
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Key Takeaways
16 Million in revenues by 2020
Focus on the residential market
Promote to the stakeholders of the user
Sell in independent hardware stores
Become a recommended product of recreational therapists
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Thank you