Microfridge: The Concept
1. Problem Analysis
Mr. Robert the facing the following challenges while launching his product:
● Administrators were not convinced to provide Microfridge in the dorms for the college
students.
- Not convinced such demands from students (Rejected the survey)
a. Standee at the university campus
b. Live polls to create credible survey reports.
- Students can go off meal plans.
a. Serving ready-to-eat meals from the college cafeteria and stores. (Generates revenue
for college)
- The concern of fire and safety
a. Safety and fire certification to improve credibility.
b. 90% of students already use hotplates hence this is a safe alternative.
- Focus on computers.
- Did not want to trust a new company.
a. Articles on reputed tech and business magazines/columns.
b. Media presence.
● Funds were not provided by the venture investors.
- Due to lack of experience
a.
- Due to low innovation level
- Preference for distributors than keep house accounts.
- The business had relatively low margins and high cash flow risks.
● Difficulty in creating a market for the product.
- Limited target segment.
- Lack of marketing and advertising strategies.
● Sustainability of the product
- Competition from established companies
- The product could be easily imitated.
- Concern regarding revenue generated.
2. Root Cause Analysis Opportunities
1)
2.1 Swot Analysis
Strengths
Power consumption
Safety
Compact
No Alternative
Patentable product
Weakness
Uncertainty in Durability
Vulnerable to competition
Lack of Experience
Opportunities
Threat
2.2 Porter’s Five forces
3. Alternatives
4. Recommendations
1. Newspaper/Magazine Articles:
The protagonist faced friction from Universities
In order to increase product credibility, dedicated articles in newspaper columns or
magazines can be published. This would lead to familiarity of the
Microfridge: The Concept
Identified Problem:
As per the case, Mr. Robert Bennett faces three primary concerns: a) Identifying target
segment, b) Addressing customer concerns and queries, and c) Sustaining his business idea
against a competitive environment.
Symptoms:
● University authorities are not convinced by his idea and are doubtful of the
credibility of the survey.
● Investors are doubtful of the market due to Mr Bennett’s inexperience.
● There is no robust business strategy to sustain his business in the long run.
Product SWOT Analysis:
Strength
● Low and controlled power consumption
● Safe to use
● Utility and compact nature has demand in students (As per survey)
● First of its kind
Weakness
● Durability concern
● Lack of Experience
● Low innovation level
Opportunity
● Expansion of market
● Possible innovation
Threat
● Competition from existing big brands
● Low margins and High Cash flow risk in the business venture
Recommended Solutions:
Establishing Credibility & Securing Against Competitors
● Though Microfridge is the first of its kind, its design can easily get replicated by
big organizations. In order to secure his idea of the power switch, Mr. Bennett should
apply for a patent.
● An additional certification from the US Fire Administration (Fire & Safety
Department) will back his claims of ‘Higher Security and Lower Power Consumption’
against conventional appliances.
● Furthermore, an article in the local newspaper or a tech magazine would increase
the credibility and visibility of his product among the general public with little to no
technical knowledge.
Identifying Target Segment
● The current segment under consideration covers a narrow market covering only
university dorms and motels. To expand this segment, Mr. Bennett can also focus on
corporate offices, maritime industry and studio apartments to widen the reach of
Microfridge.
● By taking the suggested segments under consideration, product innovation in the
future can also reach a larger audience.
Addressing Concerns
● A standee can be set up at the University premise to record student responses
bringing into perspective product demand. This will also add credibility to the
conducted survey.
● Previously procured certification from an authorised body will help establish
reliability of product as well as bolster its claims.
Establishing Sustainable Business Roadmap
● Due to low margins and high cash flow risks, distribution channels will be
preferred to keep house records, thus reducing cash flow risk.
● Constant customer feedback surveys to understand changing needs of customers
and accordingly develop the product to meet customer needs.
Mr. Robert the facing the following challenges while launching his product:
● Administrators were not convinced to provide Microfridge in the dorms for the college
students.
- Not convinced such demands from students (Rejected the survey)
c. Standee at the university campus
d. Live polls to create credible survey reports.
- Students can go off meal plans.
b. Serving ready-to-eat meals from the college cafeteria and stores. (Generates revenue
for college)
- The concern of fire and safety
c. Safety and fire certification to improve credibility.
d. 90% of students already use hotplates hence this is a safe alternative.
- Focus on computers.
- Did not want to trust a new company.
c. Articles on reputed tech and business magazines/columns.
d. Media presence.
● Funds were not provided by the venture investors.
- Due to lack of experience
b.
- Due to low innovation level
- Preference for distributors than keeping house accounts.
- The business had relatively low margins and high cash flow risks.
● Difficulty in creating a market for the product.
- Limited target segment.
- Lack of marketing and advertising strategies.
● Sustainability of the product
- Competition from established companies
- The product could be easily imitated.
- Concern regarding revenue generated.
5. Root Cause Analysis
5.1 Swot Analysis
Strengths
Power consumption
Safety
Compact
No Alternative
Weakness
Uncertainty in Durability
Vulnerable to competition
Lack of Experience
Opportunities
Threat
5.2 Porter’s Five forces
6. Alternatives
7. Recommendations
