Blue Ear - Hans Raj College

Report
PROJECT OF BUSINESS, ENTREPRENEURSHIP AND
MANAGEMENT ON DEVELOPING AN INNOVATIVE
BUSINESS IDEA
PRESENTED BY STUDENTS OF
B.A. ECONOMICS(H) I YEAR SECTION-1
HANS RAJ COLLEGE
FACULTY - MRS. MEGHNA MALHOTRA
CONSUMER
ELECTRONICS
Blue Ear
Made by-Pranav , Nevin
,Akshat , Payal , Anushree
Richa and Nitin
INDUSTRY INTRODUCTION


CONSUMER ELECTRONICS REFERS TO ANY DEVICE CONTAINING AN
ELECTRONIC CIRCUIT BOARD THAT IS INTENDED FOR EVERYDAY USE BY
INDIVIDUALS. THIS ENCOMPASSES A MASSIVE CATEGORY OF
ELECTRONICS THAT INCLUDES TELEVISIONS, CAMERAS, DIGITAL
CAMERAS, PDAS, CALCULATORS, VCRS, DVDS, CLOCKS, AUDIO DEVICES,
HEADPHONES, CAMCORDERS, AND MANY OTHER HOME PRODUCTS.
OUR SPECIALISATION IS AUDIO DEVICES, NAMELY BLUETOOTHEQUIPPED HEARING AIDS.
WHAT IS A
HEARING AID ?
A HEARING AID IS A HIGHLY
SOPHISTICATED
COMMUNICATION DEVICE.
THERE ARE MANY
DIFFERENT TYPES OF
HEARING AIDS, JUST AS
THERE ARE MANY FORMS OF
HEARING LOSS BUT THEY
SHARE FIVE BASIC
COMPONENTS. ALL OF THEM
WORK ON AMPLIFYING
SOUNDS TO ENHANCE
PARTICULAR HEARING
RANGE PROBLEMS.
WHAT IS THE CURRENT
TECHNOLOGY?
•
HEARING AID TECHNOLOGY IS BECOMING MORE SOPHISTICATED
EVERY DAY. TODAY’S DIGITAL HEARING INSTRUMENTS AMPLIFY SOFT
SOUNDS TO MAKE THEM AUDIBLE JUST LIKE HEARING AIDS OF THE
PAST BUT THEY ARE ABLE TO PROVIDE MANY ADVANTAGES OVER PAST
HEARING AIDS. THESE IMPROVEMENTS INCLUDE FEATURES THAT
PROTECT YOUR EARS TO ENSURE THAT SUDDEN LOUD SOUNDS LIKE A
DOOR SLAMMING ARE NOT TOO LOUD, SOUND CLASSIFIERS THAT WILL
AUTOMATICALLY ADJUST THE CHARACTERISTICS OF THE HEARING AID
BASED ON THE SOUNDS AROUND YOU AND EVEN FEATURES THAT
ALLOW YOU TO WIRELESSLY TALK ON YOUR MOBILE PHONE AND HAVE
THE SOUND AMPLIFIED TO MEET YOUR LISTENING NEEDS.
•
HEARING INSTRUMENTS ARE AMAZING LITTLE DEVICES THAT CAN
CHANGE YOUR WORLD.
INDIAN MARKET STATISTICS
• HEARING LOSS IS THE THIRD LEADING CHRONIC DISABILITY
FOLLOWING ARTHRITIS AND HYPERTENSION.
• 9 OUT OF EVERY 10 CHILDREN WHO ARE BORN DEAF ARE BORN TO
PARENTS WHO CAN HEAR.
• PROFOUND HEARING DISABILITY IN INDIA IS ABOUT ONE MILLION
• 1.2 MILLION PEOPLE WITH SEVERE HEARING DISABILITY.
• 0.9 MILLION PEOPLE WITH MODERATE HEARING DISABILITY AND
7.1 MILLION PEOPLE WITH VERY MILD HEARING DISABILITY.
MARKET POTENTIAL
• HEARING AID LIFE EXPECTANCY IS OF 5 YEARS
• INNOVATION OF OUR PRODUCT WILL PROVIDE A ONETIME PRODUCT WHICH WILL ADJUST TO ANY
DETERIORATION IN HEARING LOSS.
• A CONSUMER FRIENDLY PRODUCT WHICH CAN BE
REGULATED THROUGH THE MOBILE IT IS CONNECTED.
TARGET MARKET TREND
“DIRECT CORRELATION BETWEEN AGE AND
INCREASING NEED FOR HEAR IMPAIRMENTS”
MARKET RESEARCH
DEMOGRAPHICS:
• ABOUT 10 PERCENT OF POPULATION SUFFERING
FROM HEARING IMPAIRMENTS.
• ONLY 1 OUT 5 PEOPLE WHO COULD BENEFIT WEAR
HEARING AID.
• 80 PERCENT OF HEARING LOSSES CAN BE
CORRECTED.
MARKET RESEARCH CONT.
ECONOMIC:
• 200 CRORE MARKET
• COVERED UNDER MEDICAL INSURANCE.
• HEARING AID MARKET PENETRATION HAS
HISTORICALLY BEEN LOW
MARKET RESEARCH CONT.
SOCIAL
•
INCREASING AWARENESS AND EDUCATION AMONG
URBAN INDIANS, AWARENESS IS SLOWLY PERCOLATING
AND PEOPLE ARE GETTING THEMSELVES DIAGNOSED.
• CULTURAL NORMS ARE CHANGING TO ACCEPT DEVICES
IN EAR.
OUR PRODUCT
BLUE EAR’S TYMPSYNC USES
BLUETOOTH TECHNOLOGY AS A
SUPPLEMENT INPUT SOURCE
TEMPORARILY OVERRIDING
HEARING AIDS MICROPHONE
ALLOWING THE HEAR AID TO TO
“HEAR “ A SIGNAL FROM
BLUETOOTH DEVICE , SUCH AS CELL
PHONE AND MP3 PLAYER , WHICH
THEN IS AMPLIFIED ACCORDINGLY
TO HEARING AID WEARER’
CUSTOMIZED VOLUME
ENHANCEMENT PROGRAM
BRAND IMAGE
BRAND PERSONALITY :
• INNOVATIVE
• FEASIBLE
UNIQUE
• RELIABLE
CONSUMER
FRIENDLY
• FUTURISTIC
•
•
LOGO
VISION
The vision of Blue Ear Company is crystal clear .It
is to become the number one brand that gives that
god did not, the power to hear.
MISSION
WE SEEK TO OFFER A SOLUTION WHICH CONNECTS THE
HEARING IMPAIRED WITH THE MODERN TECHNOLOGY IN
HANDS FREE, HEARING AND FRIENDLY ENVIRONMENT .
OUR AIM IS TO MAXIMIZE CUSTOMER SATISFACTION LEAST
POSSIBLE COST SO AS TO UPLIFT THE DISADVANTAGED CLASS.
VALUE
We believe that our promise is our innovative product .We have
concern for our customers, employees and community and will
honor our relationships with those who let us be part of this
world through operating fiscally responsible and providing the
product at a reasonable price. Our value is to conduct our
business with the highest standards, adherence to law and
“doing what’s right”. We employ the highest ethical standards,
demonstrating honesty any fairness in every action we take.
TAGLINE
“We Listen So That You Can Hear”
Cost structure
FINANCIAL PLAN
• EVEN THOUGH CONSUMERS CAN PAY THOUSANDS DOLLARS FOR A SINGLE
HEARING AID, A CBC NEWS INVESTIGATION HAS FOUND THAT THE ACTUAL
COST OF MAKING A HEARING AID AVERAGES AROUND $150 .
• IT CAN ACTUALLY GO ALL THE WAY DOWN TO THE TENS OF DOLLARS BUT
AVERAGE IS $ 150.
• THE MANUFACTURER SELLS THE HEARING AID FOR $400 TO $600 TO A RETAILER
OR AUDIOLOGIST, WHO THEN SELLS THE DEVICE FOR ABOUT $2,000.
• THUS THE FINAL PRICE PAID BY CUSTOMER IS VERY HUGE.
• SO IF COMPANIES SELL 1000 HEARING AID, THE DIFFERENCE BETWEEN ACTUAL
COST AND PRICE PAID BY CONSUMERS IS HUGE. FOR EXAMPLE LET US ASSUME A
HEARING IS SOLD FOR $1000.( AVERAGE PRICE OF HEARING AID SOLD BY
SIEMENS ).
Cost of 1000 hearing aids – Price Paid by customers for
($150 +$100 +$300)*1000 1000 hearing aids –
=$550,000
$1000 *1000=$1,000,000
• IT'S IMPORTANT TO UNDERSTAND WHY HEARING AIDS COST SO MUCH TODAY:
• AUDIOLOGISTS CONTROL THE VAST MAJORITY OF SALES IN THE INDIA HEARING AID MARKET.
WHILE AUDIOLOGISTS PROVIDE VALUABLE SERVICES, THEY VIEW THE SALE OF HEARING AID
DEVICES AS AN OPPORTUNITY TO GENERATE PROFITS BY CHARGING EXORBITANT MARKUPS OF
3 TO 5 TIMES OR EVEN MORE. THESE MARKUPS ARE THE ONLY REASON HEARING AIDS COST SO
MUCH RETAILERS/AUDIOLOGISTS ACCOUNT FOR UP TO 70 PERCENT OF THE FINAL PRICE OF A
HEARING AID, BECAUSE THEY FACTOR IN A BUNDLE OF ADDITIONAL EXPENSIVE SERVICES.
WHAT WE PLAN TO DO ? =IPAD COST STRUCTURE
• Audiologists mark up hearing aids an additional 3-5 times at sale.
• We will think different of retail –breaking away from traditions and also cut out
the middlemen and sell our hearing aids through a online portal for people who
have excess to internet
• We follow the ipad cost structure , keeping the production cost 55 percent of
total cost and market , r & d and dispensing take up 45 percent of cost .
assuming our production cost to be $175 ( for including bluetooth , spice
generation chipset etc ), our total cost will of the product will be =$318 (
200/.55) .
• Hence if we mark our product 30 percent above cost, the price of our product
will be $ 413 and if we mark up by 40% , the price will be $445 and so on.
• The Ipad cost structure not only helps to fix the production cost but also helps us
to keep our other cost in control i.e retail , marketing etc. This helps us to keep
the price of our product low and at the same maintain efficiency. This cost
structure was one of main reason for the success of Apple .
• We prioritize affordability and accessibility.
• Today many Indians who would benefit from hearing aids choose not to purchase.
when asked why, the most commonly cited reason is high cost. among the 25%
who do use hearing aids, the high cost of replacement is a constant frustration
and therefore we will offer a discount ( various slabs depending upon number of
times the consumer has purchased the product) to repeat purchasers which all
boost our customer loyalty .
To Simply state things , financial position will be as shown in the below
table
Cost of 1000 hearing aids –
Revenue earned on 1000 hearing aids
($318 ) ( variable)*1000=
=( $463*1000)= $463,000
$318,000
• We expect to sell 2500- hearing aids in first year
• Hence our profit equals nearly 46 percent ( with huge revenue)
which is a huge thing for new start up .
• With time as demand increases , the avg production cost is
expected to come down further and revenue and profit will keep on
increasing .
Different Methodology
• Not trying to make money
Most firms see themselves in business to make money. That’s “the bottom line”—the primary goal of
management by contrast, our goal is to delight its customer ‘making money is the result of the firm’s
actions, not the goal.’ This will in turn increase our sales.
• Don’t try to sell
We wont teach our employees to sell but rather help customers solve their problem . We will never try to
close on a sale but rather help customers find their pain points .
• Think different about retail
Extra-wide front doors, floor-to-ceiling windows, open air skylights and glass stairs give people a
sense of freedom and feel less like they are in a retail outlet -- and more like they are in a
museum. provide a first-class retail experience that delights shoppers and visitors alike and makes
them feel part of the community -- sales happen as a result of this focus on improving people's
lives.
WHY WOULD CONSUMERS BUY IT?
•
•
•
•
•
•
MEDICAL NEED
INNOVATIVE BLUETOOTH TECHNOLOGY
SPICE GENERATION CHIPSET
SMALLER SIZE
FASTER PROCESSION POWER
RECHARGEABLE BATTERY
SCOPE OF CONSUMER CONT.
•
•
•
•
•
GOOD WARRANTY PERIOD
30 DAY TRIAL PERIOD
REASONABLY PRICED
COMPETITORS PRODUCT BULKY ,DIFFICULT TO USE
WANT TO ENJOY CONNECTING TO ELECTRONIC DEVICES
WITHOUT PROHIBITIVE ADD ONS.
OUR SOURCES OF FINANCE
To start our plan ,
we would need a
initial capital of
about $450,000 to
meet our expenses
which we plan to
raise in the form of
venture capital .
THE INFLUENCERS
•
•
•
FAMILY , FRIENDS , RELATIVES
EAR, NOSE AND THROAT PHYSICIAN (ENT)
AUDIOLOGIST
FACTORS IMPACTING CHOICE OF DISPENSING PRACTICE
Professional staff
77
Convenient location
64
Convenient hours
63
Price
63
Free hrg screening
59
Range of hearing aids
52
Physician referral
51
Live demonstration
50
Insurance coverage
46
Previous purchase
41
Friend recommended
31
0
10
20
30
40
50
60
% highly important
70
80
90
100
MARKETING STRATEGY
•
•
•
USING THE UNDEVELOPED NETWORK OF AUDIOLOGIST TO PROMOTE
OUR PRODUCT.
TEEING UP 400 CLINICS AROUND THE COUNTRY IN TO INCREASE OUR
PRESENCE.
CONDUCTING WORKSHOPS WITH ENT SPECIALISTS AND
AUDIOLOGISTS TO EDUCATE THEM ABOUT OUR PRODUCTS AND ITS
USES.
•
•
•
•
Main Focus Is Penetration Rather Than Advertising.
Conducting Free Screenings For Traffic Police, Senior Citizens And
Factory Workers In India
Additionally Under Our Unique Initiative Called 'Hear The World'
Which Will Be A Nonprofit Foundation We Are Planning To Bring Topics
Of Hearing To The Public Agenda And Start A Social Dialogue -:
This Will Include Organizing Free Camps In Schools For Awareness And
Providing Free Hearing Workshops In Government Bodies Like Railways,
Fire Fighters, Construction Workers Etc.
COMPETITORS ANALYSIS
WHO ARE THE COMPETITORS?
DIRECT COMPETITORS:
• SIEMENS
• ELKON
• WIDEX
INDIRECT COMPETITORS:
• INNOVATIVE POWERHOUSES WHO INCORPORATE HEARING AID
FUSER FRIENDLY TECHNOLOGIES.
SWOT ANALYSIS OF COMPETITORS
STRENGTHS:
•
•
•
•
STRONG FINANCIAL RESOURCES
AGED RELATIONSHIP WITH ENT COMMUNITY
ESTABLISHED BRAND NAME
FINANCIAL STRENGTH TO TACKLE RECESSION IN MARKET
OPPORTUNITY:
•
•
•
•
AN AGING POPULATION
PREVALENT NOISE POLLUTION
GREATER PREVALENCE IN URBAN AND SUBURBAN REGIONS
LACK OF PRACTICALITY IN COMPETITORS PRODUCT
HOW TO KEEP OUT COMPETITORS?
• PATENTING THE MINIATURIZING OF BLUETOOTH COMPONENT .
• INVESTING IN RESEARCH AND DEVELOPMENT
• REGULAR IMPROVEMENTS IN PRODUCT
• ADAPT NEW TECHNOLOGY BEFORE COMPETITION
• HIRING PROFESSIONALS WITH VALUABLE SKILLS
• RESPOND TO CUSTOMER NEEDS
• FOCUSING ON MARKET SEGMENTATION
THANK YOU
FOR
WATCHING

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