Feasibility Stage Gate
1. Business model canvas
Business model Canvas is attached.
2. QFD
QFD is attached.
3. Value chain
Supermarket
s
Kiosks
Factory Distributor Parlors Consumers
Schools
Other sellers
4. Revised estimate of the size of this market
As it is known that Children are primary target market therefore, they would be considered as
primary market for this product. However, the child population is rapidly changing in the
United States. The number of children under 18 are high and average number of children is
1.9 owned by each family in United States (Statista, 2020). However, the total population
under 18 was recorded as 73,399,342 in 2018 Kids Count Data Center (2020).
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5. Assessment of product feasibility
– Results of prototype development and validation
This is examined from prototype development and validation that product is feasible and
resolve the problems of kids. However, many interviews have been conducted with the
parents and they showed huge interest in using this product. Product designers, engineers
and product managers are also included in the prototype development and validation
process. It helped to generate more data regarding the product feasibility.
– Test results, customer feedback
The text results and interviews conducted show that product is feasible to launch in this
market. The customer feedback has also been collected regarding the product. Customers
believe that product will resolve long lasting issue and will make their kid happy.
6. Preliminary product introduction plan
– What additional testing is necessary?
However, company has done enough research on the product before launching but it still
could test the actual product on minimum sample of 50 children. The actual test would
also increase the credibility of product while making the customers happy about new ice
cream brand in town.
– How will you get your first customers?
The sales strategy of Spirulina Soft Serve Ice Cream is broad, as it is not relying on single sales
channels to push its product in market. The company would utilize all the necessary channels
from social media to direct market in order to increase the brand awareness in the market.
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Moreover, it would also collaborate with schools, day care centers, parlors, and event
management companies in order to sell its product in the market. The company would promote
its product on each kids channel as well.
– What is your initial pricing strategy?
This has been decided by the management that penetrate marketing pricing strategy would be
utilized to enter in this market. The company would focus on lowering the price while
compensating on the profit margin. This aspect would help to attract maximum number of
customers and would play a critical role in order to get concentrated market share within short
period of time.
Feasibility Gate Review Deliverables
1. What will be the sources of your revenue?
The major source of revenue will be through sales of our products. However, we will also charge
to kiosks separately for selling our products. They would also play significant profit in our
revenue.
2. How will you price your products?
The company will utilize penetrate price strategy and charge low price on the products. It would
also help company to increase brand awareness and to capture market share. Company would
initially study the competitors and their pricing strategies before launching the product.
3. What sales channels are most appropriate?
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The management believes that supermarkets, educational institutes and baby day care centers are
our most appropriate sales channels that would contribute in the gross selling of our products.
Company has also plans to move towards the franchisees business after few years.
4. Create a (very) rough draft of a three-year sales forecast.
Sales Forecast in Million
14
12
12
10
8
8
6
5
4
0
1st Year 2nd Year 3rd Year
Sales Forecast
The above mentioned numbers are based on assumptions and market trends.
The management has estimated that startup cost of starting this business is approximately 7.5
Million. Moreover, it is decided that management would raise the investment through angel
investor and business plan would be presented on several incubators platform in order to raise
the investment for this business.
References
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Statista (2020). Average number of own children under 18 in families with children in the United
States from 1960 to 2019. Retrieved from https://www.statista.com/statistics/718084/average-
number-of-own-children-per-family/
Kids Count Data Center (2020). Child population by age group in the United States. Retrieved
from https://datacenter.kidscount.org/data/tables/101-child-population-by-age-group#detailed/1/
any/false/37,871,870,573,869,36,868,867,133,38/62,63,64,6,4693/419,420
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