Venture Concept No. 1

My Venture Concept:

Opportunity:

• What is the need?
• The need is for a better litter box.

• Who has the need?
• My potential customers are cat owners.

• What is the nature of the need?
• The cat owners need an easier way to manage cat litter boxes.

 This opportunity has always been around, but forces that cause it to grow in size for two major reasons:

• The Baby Boomers are at or reaching retirement age.
• As they age, their capabilities of certain tasks decline.
•  The Millennials are reaching the time in their lives where they typically are starting a family.
• They possibly have young children running around and/or more than one type of pet living in their homes.

 My Market: 

• Demographically
• Baby Boomers - specifically the elderly who are cat owners.
• Millennials - parents of children under the age of 4; cat owners that also own a dog.

• Geographically
• Florida/Arizona - elderly retirees tend to reside here; a dog is typically too much work, but cats are just right for them.
• Suburbs - families with multiple pets and young children are typical finds in these regions.
• Cities - newly established families with infants and toddlers start out by living in these regions.

 My potential customers are currently satisfying their needs by:

• suffering through back pain while their litter box is on the floor
• placing the litter box on the counter

My potential customers are not loyal to what they use now; as a cat owner, I have no idea what brand the litter box I use now is. Cat owners are loyal to food and the brand of litter, not the box.

• How big is this opportunity?
• This opportunity is large because the market includes two major portions of the population, Baby Boomers and Millennials.

• How long will the "window of opportunity" be open?
• This "window" will be open for an infinite amount of time, or until another company takes on this opportunity. Cats have nine lives, they will be around for a long time.

Innovation: 

My innovation is The Purrfect Litter Box.

• What is it?
• It is an elevated litter box, standing approximately three feet above the ground. 

• What does it do?
• It provides a place for cats to defecate. 

•  How does it work?
• The cat will jump onto a shelf on the side and then to the top, in which is where the litter box is located.

The elevated part of The Purrfect Litter Box is one of the features, along with: 

• Mobility - the litter box is built into the top of a cart and is on wheels.
• Storage - the cart has two shelves that can be used as storage.
• Safety - all four wheels have locks.
• Easy Access - there is a carpeted and removable shelf on the side of the top shelf for the cat to jump on before jumping to the top of the cart.

  The Purrfect Litter Box

 

 

 

 The price, based upon materials and labor, will approximately be:

$69.99

 

 

Venture Concept:

 

 

 

 My innovation, The Purrfect Litter Box, will solve the opportunity that I have identified by:

• making it easier for the elderly to clean the litter box - no bending.
• preventing infants and toddlers from getting into the litter box.
• preventing dogs from getting into the litter box. 

 

• Why will customers buy my product?
• Elderly cat owners will want to prevent any further back pain that regular litter boxes cause.
• New parents want to make sure that their children are safe; including the prevention of exposure to cat litter and its contents.
• Cat owners that also own dogs are willing to buy new products to ensure that their dog will not get into the litter

Customers are willing to switch to my product because of the features it offers that their current litter box does not.

With great advertising, getting customers to switch will be easy; 

cat owners  do not have emotional connections or brand loyalty to their litter boxes.

 My Competitors:

• Brands include:
• Martha Stewart Pets
• Nature's Miracle
• etc.

•  Their possible weaknesses include:
• lack of significant innovation
• insignificant advertising

  

My Business Concept:

• The concept of my business is to distribute by selling online and in stores.
• I will form a contract with a pet store chain, such as Petsmart.
• The regular price will be $69.99, but I will offer promotions occasionally, such as 2 for $109.99. 
• The packaging will be vibrant and the product will need some minor assembly.
• My product will have online customer support, not face-to-face interactions.
• Headquarters (at first) : Gainesville, FL.

 

Organization of my Business: 

• My company, The Donnelly Clan Co., will be producing products, starting with The Purrfect Litter Box. 

• In the beginning, my business will produce the product in Astatula, FL.
• My brother will be head of production and has room to store the products.

• I will manage my own website in the beginning from my apartment in Gainesville, FL.

• My business will have only two employees at first - my brother and I.

• Once profits are coming in, I will expand. I will partner with a production company and they will create the product in bulk. 

• The product in bulk will ship to an office that I will rent in Gainesville, FL.

•   This office is for preparation for distribution and customer support. I will have 6 employees
• 3 - distribution to stores
• 1 - customer support
• 1 - website up-keep
• 1 - processing and handling

Additional Information:

My Unfair Advantage:

• I am majoring in advertising; my knowledge of marketing and advertising is how I can make my product different from competitors - better advertising and visual appeal.

My Next Venture:

• The next product I have in line is closely related to The Purrfect Litter Box. It is a litter box that has a hood over it. It will be easy access and comfortable for cats, as well. It can be stand alone, but it will also be able to fit perfectly in place of the litter box of my current product.

 What's Next for me?

• In five years, I see myself as an assistant creative executive for a major advertising agency in Boston, MA.
•  I plan to still be with my company, The Donnelly Clan Co., but not full-time.
• Producing new products from time to time.
• Headquarters: Gainesville, FL.

•  In ten years, I see myself as a creative executive - same company.
• I will continue to be a part of my company on the side.
• Consistently producing new products.
• Headquarters: Orlando, FL. 

Week 11 Reading Reflection

Week 11 Reading Reflection: You Need an Innovation Strategy

1) The part that stood out to me the most was the supply-push approach. Instead of solving a current market's problem, a person develops a product and by doing so, creates a brand new target audience. It stood out because in this class we did the opposite.

2) The most confusing thing I read was about radical innovation. I am still unclear on how this method is done. I have an unclear concept that it is within the same field but a different approach. I'm not sure.

3) Is there an extremely successful company that, despite the odds, uses only routine innovation? I want to know this because I am interested in if there is a company that can stick to routine innovations and succeed.

In your opinion, which approach is the most successful, relatively speaking (percentage of successes per their own category)? I want to know which approach to use more often.

4) I disagree with the author about architectural innovation. I do not believe that it is the hardest type. The idea is easy to come by because it is based on a simpler idea. The application process is as hard as radical innovation would be.

Amazon Whisperer

I will start out by acknowledging that many readers have not been following my blog. That is why I must introduce my product, The Purrfect Litter Box. I have a drawing of it below, but you are invited to read/follow my blog if you desire to know more.

Amazon Whisperer:

The Purrfect Litter Box has two revenue drivers.The first is quite obvious, the accumulated sales of the product. The second revenue driver is a partnership. My product would partner with a cat litter company, such as The Clorox Company, in which own Scoop Away. I predict that a partnership would have the Purrfect Litter Box to include Scoop Away in our advertisements; this product placement would be paid by The Clorox Company.

The next product in store for my upcoming company would be an accessory to The Purrfect Litter Box; it would be a covered litter box insert to replace the ordinary litter box. I believe that this is what my customers want next; customers will buy improvements to already owned products in order to make their life more convenient. If I make the product, my customers will come.

This new product will foster customer loyalty greatly. If they love the addition of a covered litter box, then they will keep an eye out for what else my company has to offer. After the covered litter box, I could potentially make cat toys or even cat food; loyal cat-owning customers stick with a certain brand like how they stick with which type of milk they drink. Why have regular milk if you are lactose intolerant? Like soy milk, my company is here to offer a solution to the problems our customers have.

On Amazon.com, I found the IRIS CLH Hooded Litter Box with Scoop and Cleaning Grate. This product, as shown below, is a covered litter box with a cleaning grate. It has a detachable hood and a small door for the cat to go through.

It is typical to find only the cons of the product when going through the critical reviews on Amazon. I will start by saying a couple positive features of this product. Customers seem to like the see-through feature of the hood; according to a vet technician, many hooded litter boxes fail due to dark covers. Also, many customers like the grated part of the litter box because it reduced the amount of litter tracking the cat did. Those were the only two benefits I could find. The most common problem that people mentioned was the hood. There are not any latches attaching the hood to the base; it is set into place but can be easily bumped out of place. Cats would kick it off or sometimes would knock it off when trying to go through the small door. This brings me to the next problem, the size; this litter box is extremely small, even for kittens. The small door and small base cause problems with the cats and owners. Some cats refused to go inside it. Another issue is the bottom of the litter box; there are two bumps at the end of the box and the bottom is not flat. This makes cleaning it hard for owners. Many cats tend to use the ends of the box rather than the middle and the bumps make it almost impossible to clean the entire litter box. The last complaint was about the handle on top of the lid. It is there to lift off the lid and only the lid. The lack of latches make carrying this litter box a pain.

I would keep the cleaning grate and the see-through part of the lid the same. Also, I would keep the same concept with the hood:
- two flaps (as shown in the picture)
- handle on top
- flap for a door
I would start by changing the size; the door will be larger - approximate measurements are unavailable right now. Also, I would make litter box larger, but still within the size limits of the original litter box of The Purrfect Litter Box. I would attach latches that secure the hood to the base; there would be three latches for each flap. Due to the latches, the handle can now lift the entire box rather than just the hood. Instead of having the bumps on the side, the entire bottom would be flat.

I think that this product will be great for The Purrfect Litter Box because it an upgrade to the original. I do not expect for all of my customers to buy the upgrade, but a great portion will. It is also a stand-alone product; it is perfect for all cat owners whether or not they want it elevated or not. The new product would expand my target audience and increase the exposure of my company.

I know that a reflection is not required, but this assignment has really inspired me. Even as a side project, creating products by seeing the customer complaints of other products is very fun and exciting. It made me realize I could make a line of products under a company name, The Donnelly Clan Co.

My Unfair Advantage

My 10 Resources and VRIN Analysis: The Purrfect Litter Box

1) Financial Capital - I have an uncle that is able to loan me a large amount of money to start up.
Valuable - Yes; he is capable of loaning me thousands of dollars.
Rare - Yes; not many entrepreneurs have family members that are so well-off that they can loan $10,000 in the drop of a dime.
Inimitable - No; family loans can be done.
Non-substitutable - No; I can get a loan from a bank.

2) Human Capital - I am able to see through the perspective of the customer.
V - Yes; I am attempting to sell a product and the customer's view of the product is very important.
R - No; many retail associates, like myself, can see through the eyes of a customer.
I - No; with practice, anyone can see through the perspective of the customer.
N - Yes; there is not a single thing that comes close to genuinely understanding customers.

3) Human Capital - I am an advertising major and can apply my knowledge to my product.
V - Yes; if I advertise without an agency, I can save money and get exactly what I want.
R - No; there are a lot of advertising majors in the world.
I - No; other entrepreneurs can be advertising majors.
N - Yes; no one can substitute a college degree for advertising with something different.

4) Capabilities - I can relate to customers and give them a genuine shopping experience.
V - Yes; the key to sales is to make a connection with the customer.
R - Yes; I feel that I have a charismatic personality and from that, deliver a genuine experience, in which is not very common.
I - No; there are other charismatic people in the world that can give a genuine shopping experience.
N - Yes; nothing beats a genuine shopping experience.

5) Social Capital - my brother is able to create the product.
V - Yes; I have the idea, but my brother is capable of bringing the design to life, in which is valuable.
R - No; many people know others that can build a product.
I - No; many people are able to build products.
N - No; although it is more expensive, a company can be hired to build the product.

6) Social Capital - My roommate is a reporter for TV-20 news in Gainesville.
V - Yes; although it won't be free, I will have connections to advertise for my product.
R - Yes; it is not everyday that someone has personal connections with a local celebrity.
I - No; it is possible for people to use personal connections to get their product on television.
N - No; other networks can be used to advertise.

7) Human Capital - I own a cat and she can be my test subject.
V - Yes; having a cat is quite critical for my product.
R - No; other people who create cat products typically have cats.
I - No; anyone can adopt a cat.
N - Yes; I would not use a dog to test out a cat litter box.

8) Social Capital - I have a Facebook account.
V - Yes; Facebook is where trends occur and where advertising is possible to do for free if it is your own page.
R - No; many companies use Facebook to advertise their products.
I - No; anyone can open a Facebook account.
N - No; companies can use other media, such as Twitter or Instagram.

9) Financial Capital - I have a part-time job at a retail store that provides a steady income.
V - Yes; some income is better than no income at all.
R - No; there are hundreds of thousands of other employees in the same company with similar incomes.
I - No; anyone with the right qualifications can work for the same company.
N - No; instead of the current place I work for, I could work for another retail store, like Kohl's.

10) Capabilities - I believe that I can act and could make my own advertisements for YouTube.
V - Yes; instead of hiring an actor, I can be in my own commercial for free.
R - Yes; major companies tend to hire actors rather than using themselves.
I - No; local companies tend to be in their own commercials.
N - No; instead of using YouTube, a company can pay to have their commercial on the television.

Top Resource: My capability to give customers a genuine shopping experience. Other than the fact that it qualified for 3 of the 4 categories of VRIN, this capability is something that I appreciate dearly. It helps me at work when talking to customers; also, this resource aids in making a sale, such as with The Purrfect Litter Box. Without charisma, this litter box will just collect dust in the garage. My charismatic personality will also persuade major store chains to put my product on their shelves.

Week 10 Reading Reflection

Chapter 11: Financial Preparation for Entrepreneurial Ventures

1) I would not call it surprising, but the most interesting thing in the reading was about break-even analysis. I was aware that a process like this existed, but I did not know the specifics. The margin approach is very algebraic and quite interesting to read about.

2) One part of the reading that was confusing to me was about pro forma statement. I was confused on how it would account for variable expenses.

3) Why are companies so eager to cut corners such as with the payback method? I ask the author this because I genuinely would like to know his opinion on the matter. With the net present value method, how is inflation accounted for if it is considered? I want to know this because it would be more accurate for this approach.

4) I disagree with the author about utilities cost. I do not believe that they are mixed variables. Just because a price is generally the same each time for certain things, such as water, does not make it a fixed cost. Utilities are completely variable.

Elevator Pitch No. 3

1) Elevator Pitch No. 3 Purrfect Litter Box

2) The feedback that was important was that I was told to incorporate a larger audience than just cat owners with toddlers. I was surprised to hear that someone thought the name for the product was perfect; I like the name, but it is slightly corny.

3) The feedback that I incorporated into my third elevator pitch was adding target audiences. In addition to parents of toddlers, I also mention benefits directed towards dog owners that also have cats, and elderly cat owners.

Week 9 Reading Reflection

Chapter 10: Marketing Challenges for Entrepreneurial Ventures

1) The most interesting part that I read was about online retail spending. It is estimated to be $248.7 billion by 2014; the book was written before that year.

2) One part of the book that was confusing was incorporated with the 4p's of marketing. The author mentions: From Product... to Cocreated, From Promotion... to Communities, etc. How one leads to the other is what I do not understand.

3) One question I have for the author is: Which primary data technique would you personally pick as most efficient? I ask this because I want to know the author's insight. I also would ask the author: Which of the primary data techniques would be your last choice? I ask this because I would like to know which technique to avoid if possible.

4) I disagree with the author when talking about the statement that many entrepreneurs know very little about their market. Did the author conduct months of research and ask thousands of entrepreneurs? I doubt it. Until the author can provide sufficient evidence, I disagree with the statement.

Idea Napkin No. 2

My Idea Napkin: The Purrfect Litter Box

1) My name is Kristine Donnelly and I would consider myself to be an innovator. I have more than three years of working in retail and due to this experience, I have great customer service skills; I understand what customers want. When I am not at work, I am in school as an advertising major. My main goal in life is to become and advertising executive for a major advertising agency in Boston, Ma. I also plan to manage my innovations, such as The Purrfect Litter Box, on the side. Innovating may be a hobby in my eyes, but I plan to take it more seriously than crocheting.

2) I am offering a new lease on life to cat owners with this product. The elevated feature of the litter box keeps the owners from bending over and getting on their hands and knees; this will prevent back pain for all ages. It also helps keep dogs and young children out of the litter box. In addition, the product is easily movable because it is on wheels (comes with locks).

3) The demographic of my customers includes three sections. The first section is the elderly who own cats; they are typically over 50-years-old, female, and possibly have arthritis-like pain. The second section includes people who own both cats and dogs; their ages are typically spread from mid-20s to the upper-40s. The third section of the demographics includes families with small children and at least one cat in the home; this age group is usually between mid-20s and mid-30s.

4) Why should customers care? I will show you, not just tell you, with three different stories.

            1. Jennifer is worried about her 70-year-old mother, Edna. Edna has arthritis and owns a cat, Belle. Jennifer is worried that Edna will bend down one day to clean the litter box, but not get back up. Jennifer comes across this new product, The Purrfect Litter Box. "Perfect!" screams Jennifer. Ten years down the line, Edna is still alive and bonds with Belle everyday; Jennifer is happy knowing that her mother is doing well.

            2. Bob lives alone in his apartment. He has one cat and one dog. His cat's name is Treble. His dog is a dachshund named Sparky. When Bob is working, Sparky likes to jump around in and eat out of Treble's litter box. Bob comes home from work to a sick dog and a messy apartment. Bob is driving to work the next day when he hears a commercial for The Purrfect Litter Box on the radio. He buys one on his way home and brings it back to his apartment. Sparky is disgruntled when Bob is at work because now he can't get into the litter box. He can't even push the cart around because the wheels are locked. Bob comes back to find Sparky playing with a chew toy, not cat feces. Sparky is happy to not be sick and finds the chew toy to be more entertaining. Bob is happy to see that Sparky is well and his apartment is not a disaster.

            3. Anne and Rob are new to parenting and live in a single-story home with their 9-month-old daughter, Jessica and their cat, Pepper. Pepper uses the litter box that is placed in the kitchen. Jessica is starting to walk and is getting fast. When Anne is at Work, Rob is home taking care of Jessica. Rob has a sneezing fit and next thing he knows, Jessica is nose deep in the litter box. Rob freaks out and takes Jessica straight to the hospital. She did not consume anything, luckily. On their way home, Rob stops at the store and picks up The Purrfect Litter Box. Anne comes home to an exhausted Rob, a sleeping Pepper, and a wide-awake Jessica. What is Jessica doing? She is trying to get into the litter box but can't; it is too high up for her.


5) What sets me apart from others is that I innovated on the cat litter box. I did not make it electronic like some, but simply taller. The issue with going on your knees to clean the litter box has been around for ages; unlike others, I decided to find a solution to this problem.


I believe that these elements fit well together. My experience in retail helps tremendously in understanding my customers. I offer a solution to an ongoing problem and can easily identify my target markets. Instead of telling why customers should care, I show them why; this strategy is creating a personal connection to my customers. As a person with great customer service skills, I know that making a personal connection is the key factor in getting your customer to buy the product. Also, my product is an innovation on the ordinary litter box; by making one major adjustment to it, I solve a problem for my potential customers.


Feedback memo:

Honestly, all my feedback was positive; there was not a single ounce of criticism. It made editing my Idea Napkin difficult; I did make some changes here and there, but nothing significant. Five main points that I took away from my feedback were:

1) I was told that my customer service and retail will help a lot with building my product.

2) I was told that I did a great job on describing "why customers should care" and the examples I provided give great insight.

3) Someone said that they really liked by approach and enthusiasm.

4) I was told that due to knowing what customers want, advertising is the best major for me.

5) I was told that with this product, I can provide a lot of people with a good solution to the problem that feline owners have.

I attempted to incorporate my feedback into this Idea Napkin. I kept my enthusiasm and approach; I used the same three scenarios for "why customers should care" with minor editing. My customer service skills are still in existence; also, advertising is still my major of choice. I added an extra piece in "what I am offering to customers"; I mentioned that instead of just dogs, both dogs and small children will not be able to get into The Purrfect Litter Box.