EZ-Clean Hydro Bottle -- Venture Concept
Opportunity
My product is an environmentally friendly water bottle with a larger mouth. The opportunity that relates to this product is anyone that has a problem washing their water bottle because the mouth of it is too small to fit either of their hand into it. Another sub-segment of customers would be people searching for a durable, sustainable, and eco-friendly alternative to traditional plastic water bottles. The nature of his need is that it is realized whenever people are washing their bottles, however, there is currently no readily available alternative for the water bottles they already use. The forces in the environment that create this opportunity is basically a lack of action by water bottle companies; no leading water bottle company has created a product specifically designed to be easier to wash. There really is not much of a limit geographically to the customer base because where you live doesn't affect whether you use a water bottle or not; at least, it shouldn't. Demographically, I would like this product to be affordable enough for anyone to be able to purchase one, but currently making new plastic is cheaper than recycling and removing harsh chemicals is even more expensive, so this product might end up singling out the middle and upper class. Another demographic that will be more affected is the environmentally active/sustainable group because of this water bottle's qualities, including being recycled and BPA-free. Customers are currently satisfying this need by either disregarding the issue or coming up with their own solution. Many customers I interviewed said they would create a device/tool to reach inside and clean the inside of the bottle. They said they would consider buying a bottle that solved that issue if it was functional and reasonably affordable. This opportunity is fairly large because everyone needs to drink water and many people (this number is rising as society is ever more progressive) use water bottles to decrease the use of plastic. I don't see this opportunity going away soon, unless another big-name brand, such as Nalgene, created a similar product.
Innovation
My innovation is a water bottle that has a large mouth (one that the average-sized hand could fit inside). This product not only solves the issue of washing a bottle that has a small mouth, which by conducting more than several interviews I have confirmed is a relevant issue, but it also is durable, sustainable, and adaptable. The bottle would come with a limited lifetime warranty so anyone could replace the bottle if it's damaged. It is also made from recycled plastics and is BPA (bisphenol A) free, making sure to reduce waste on land and at sea. Lastly, the bottle will come in three sizes, 24 oz, 32 oz, and 48 oz so that people can purchase whichever size suits their needs. Someone that's going to be working in the yard all day might want a 48 oz. so they don't have to go inside to fill up, while someone that's just taking their bottle to work likely will buy a 24 or 32 oz. bottle. For this bottle to be realistic and functional the mouth has to be big enough to fit a balled-up hand into it and also easy to drink from. To make sure that's possible I would widen the mouth to a larger circle (instead of having the lid be a smaller diameter than the body of the bottle, which is typical). This would allow an average hand to fit inside and be able to move about and clean while also still providing easy-drinking capabilities, including still being able to fit it in an average cupholder. This image should make that easier to visualize.
Now I will break down the pricing. Each water bottle will come with a water bottle (made up of the body and the lid) and a small card that incentivizes them purchaser/recipient to buy more products. The card will advocate 25% of the proceeds on their next purchased item will go to the wildlife/environmental/sustainability charity of their choice. Each size of the water bottle will be priced differently. The 24 oz. bottle will cost $10, the 32 oz.will cost $15 and the 48 oz. will cost $25. The pricing is a little higher than I would like to see, but as I said earlier, using recycled plastics and making the bottle BPA-free is more expensive than using new plastic that has all of the typical chemicals. As far as the research backing these numbers goes, I did my best to provide an estimate. It would probably be impossible to get accurate production costs from a manufacturer for my intents so I had to base the price on industry prices. The company with water bottles most similar to mine is Nalgene. I just added some to their prices because my production costs will be higher than theirs due to diseconomies of scale. Also, my water bottles are made from more expensive materials so that factor into a higher production cost.
Venture Concept
My water bottle will solve all of the issues water bottle users have with washing their own bottles in addition to providing added value, such as being environmentally friendly, durable, and adaptable to any situation. Customers will buy this innovation because they will no longer have to be frustrated while cleaning their bottle and they'll be able to keep their bottle cleaner. Customers would switch to this new product if they use water bottles often enough to be consistently faced with the issue of not being able to fit their hand into their bottle to effectively clean it. It might be hard for them to switch if they have brand loyalty to big-name brands such as Nalgene or Hydroflask, but if the person values quality over status then they would probably make the switch. Two large competitors that I immediately think of are Nalgene and Hydroflask. Hydroflask mostly makes metal bottles, which are outside of the scope of my opportunity, so I won't focus on them. Nalgene is a very large and well-established company so it's hard for me to think of a disadvantage for them. The packaging isn't a problem because I will sell my water bottles without a package. They will simply have a removable label that can be printed out and applied to them. I would have to work with distributors to have my products in grocery stores, gas stations, sports stores, etc. because the variety of people that use water bottles is extensive.
Secret Sauce
My most important resource is going to be my passion for this product's growth and mission. I believe that you can't fake passion and if you have a passion that you truly believe in then you'll always stay committed and true to your intended purpose. For more detail, you can reference my previous blog post.
What's Next For the Venture?
The next opportunity I would tackle is determining the bottom line for my product and really crunching the numbers behind the production, distribution, advertising, etc. of my water bottle. This is super helpful because it will allow me to think creatively as well as analytically about my product to forecast if it makes financial sense.
What's Next For Me?
Assuming I launched this goal, I would want my product to be dispersed throughout the Southeast at least within five years. Within ten years I could make it up the coast into the Northeast and potentially into some Western states including California. This might be a little aggressive but I think if I'm ever going to compete with top water bottle companies then I need to focus on aggressive growth.
Feedback
People that commented seemed to generally like the detail that I put into describing my product and its market. They mentioned the "Opportunity" section as well as the "Secret Sauce" sections. One person particularly likes my idea of attaching a discount card to each water bottle that encourages them to buy another water bottle and donate to an environmental charity at the same time. I'm glad I got feedback on this idea because it was a new idea and I wasn't sure if it would be effective. As far as the more constructive feedback goes, there were a few things. They said my water bottle should be able to fit in cupholders. This is a very relevant point and also something I've heard from interviews before. They also said my design should have a name, which was confusing because the name is clearly at the top of the page. Lastly, they wanted to see how I decided to use the specific prices I chose for my water bottles.
What I Changed
First addressing the concern about my water bottle fitting in cupholders. The EZ-Clean Hydro Bottle will definitely be able to fit into cupholders. I'm only modifying the shape of the top of the bottle, specifically, I'm widening the diameter of the mouth, not the entire water bottle. So, the bottom of the bottle will remain unchanged and it will be able to fit in any average cupholder. I've included a picture so hopefully, that's easier to visualize.
Next, there was a concern that my prices weren't backed by production costs or economies of scale. Production costs are very hard to accurately guess because you can't just go out and ask Nalgene what their production costs are or any other manufacturer unless you're seriously considering producing something. So, I did my best to base my prices on the prices on Nalgene bottles with some adjustments. I obviously won't be able to achieve the same economies of scale as giant companies such as Nalgene so my prices will naturally be higher. Also, I'll be using recycled and environmentally-friendly material to produce the bottles, so that raises the price. I just did my best guess of what I could make the price by adding some to the prices of similarly-sized Nalgene bottles.
Opportunity
My product is an environmentally friendly water bottle with a larger mouth. The opportunity that relates to this product is anyone that has a problem washing their water bottle because the mouth of it is too small to fit either of their hand into it. Another sub-segment of customers would be people searching for a durable, sustainable, and eco-friendly alternative to traditional plastic water bottles. The nature of his need is that it is realized whenever people are washing their bottles, however, there is currently no readily available alternative for the water bottles they already use. The forces in the environment that create this opportunity is basically a lack of action by water bottle companies; no leading water bottle company has created a product specifically designed to be easier to wash. There really is not much of a limit geographically to the customer base because where you live doesn't affect whether you use a water bottle or not; at least, it shouldn't. Demographically, I would like this product to be affordable enough for anyone to be able to purchase one, but currently making new plastic is cheaper than recycling and removing harsh chemicals is even more expensive, so this product might end up singling out the middle and upper class. Another demographic that will be more affected is the environmentally active/sustainable group because of this water bottle's qualities, including being recycled and BPA-free. Customers are currently satisfying this need by either disregarding the issue or coming up with their own solution. Many customers I interviewed said they would create a device/tool to reach inside and clean the inside of the bottle. They said they would consider buying a bottle that solved that issue if it was functional and reasonably affordable. This opportunity is fairly large because everyone needs to drink water and many people (this number is rising as society is ever more progressive) use water bottles to decrease the use of plastic. I don't see this opportunity going away soon, unless another big-name brand, such as Nalgene, created a similar product.
Innovation
My innovation is a water bottle that has a large mouth (one that the average-sized hand could fit inside). This product not only solves the issue of washing a bottle that has a small mouth, which by conducting more than several interviews I have confirmed is a relevant issue, but it also is durable, sustainable, and adaptable. The bottle would come with a limited lifetime warranty so anyone could replace the bottle if it's damaged. It is also made from recycled plastics and is BPA (bisphenol A) free, making sure to reduce waste on land and at sea. Lastly, the bottle will come in three sizes, 24 oz, 32 oz, and 48 oz so that people can purchase whichever size suits their needs. Someone that's going to be working in the yard all day might want a 48 oz. so they don't have to go inside to fill up, while someone that's just taking their bottle to work likely will buy a 24 or 32 oz. bottle. For this bottle to be realistic and functional the mouth has to be big enough to fit a balled-up hand into it and also easy to drink from. To make sure that's possible I would widen the mouth to a larger circle (instead of having the lid be a smaller diameter than the body of the bottle, which is typical). This would allow an average hand to fit inside and be able to move about and clean while also still providing easy-drinking capabilities, including still being able to fit it in an average cupholder. This image should make that easier to visualize.
Now I will break down the pricing. Each water bottle will come with a water bottle (made up of the body and the lid) and a small card that incentivizes them purchaser/recipient to buy more products. The card will advocate 25% of the proceeds on their next purchased item will go to the wildlife/environmental/sustainability charity of their choice. Each size of the water bottle will be priced differently. The 24 oz. bottle will cost $10, the 32 oz.will cost $15 and the 48 oz. will cost $25. The pricing is a little higher than I would like to see, but as I said earlier, using recycled plastics and making the bottle BPA-free is more expensive than using new plastic that has all of the typical chemicals. As far as the research backing these numbers goes, I did my best to provide an estimate. It would probably be impossible to get accurate production costs from a manufacturer for my intents so I had to base the price on industry prices. The company with water bottles most similar to mine is Nalgene. I just added some to their prices because my production costs will be higher than theirs due to diseconomies of scale. Also, my water bottles are made from more expensive materials so that factor into a higher production cost.Venture Concept
My water bottle will solve all of the issues water bottle users have with washing their own bottles in addition to providing added value, such as being environmentally friendly, durable, and adaptable to any situation. Customers will buy this innovation because they will no longer have to be frustrated while cleaning their bottle and they'll be able to keep their bottle cleaner. Customers would switch to this new product if they use water bottles often enough to be consistently faced with the issue of not being able to fit their hand into their bottle to effectively clean it. It might be hard for them to switch if they have brand loyalty to big-name brands such as Nalgene or Hydroflask, but if the person values quality over status then they would probably make the switch. Two large competitors that I immediately think of are Nalgene and Hydroflask. Hydroflask mostly makes metal bottles, which are outside of the scope of my opportunity, so I won't focus on them. Nalgene is a very large and well-established company so it's hard for me to think of a disadvantage for them. The packaging isn't a problem because I will sell my water bottles without a package. They will simply have a removable label that can be printed out and applied to them. I would have to work with distributors to have my products in grocery stores, gas stations, sports stores, etc. because the variety of people that use water bottles is extensive.
Secret Sauce
My most important resource is going to be my passion for this product's growth and mission. I believe that you can't fake passion and if you have a passion that you truly believe in then you'll always stay committed and true to your intended purpose. For more detail, you can reference my previous blog post.
What's Next For the Venture?
The next opportunity I would tackle is determining the bottom line for my product and really crunching the numbers behind the production, distribution, advertising, etc. of my water bottle. This is super helpful because it will allow me to think creatively as well as analytically about my product to forecast if it makes financial sense.
What's Next For Me?
Assuming I launched this goal, I would want my product to be dispersed throughout the Southeast at least within five years. Within ten years I could make it up the coast into the Northeast and potentially into some Western states including California. This might be a little aggressive but I think if I'm ever going to compete with top water bottle companies then I need to focus on aggressive growth.
Feedback
People that commented seemed to generally like the detail that I put into describing my product and its market. They mentioned the "Opportunity" section as well as the "Secret Sauce" sections. One person particularly likes my idea of attaching a discount card to each water bottle that encourages them to buy another water bottle and donate to an environmental charity at the same time. I'm glad I got feedback on this idea because it was a new idea and I wasn't sure if it would be effective. As far as the more constructive feedback goes, there were a few things. They said my water bottle should be able to fit in cupholders. This is a very relevant point and also something I've heard from interviews before. They also said my design should have a name, which was confusing because the name is clearly at the top of the page. Lastly, they wanted to see how I decided to use the specific prices I chose for my water bottles.
What I Changed
First addressing the concern about my water bottle fitting in cupholders. The EZ-Clean Hydro Bottle will definitely be able to fit into cupholders. I'm only modifying the shape of the top of the bottle, specifically, I'm widening the diameter of the mouth, not the entire water bottle. So, the bottom of the bottle will remain unchanged and it will be able to fit in any average cupholder. I've included a picture so hopefully, that's easier to visualize.
Next, there was a concern that my prices weren't backed by production costs or economies of scale. Production costs are very hard to accurately guess because you can't just go out and ask Nalgene what their production costs are or any other manufacturer unless you're seriously considering producing something. So, I did my best to base my prices on the prices on Nalgene bottles with some adjustments. I obviously won't be able to achieve the same economies of scale as giant companies such as Nalgene so my prices will naturally be higher. Also, I'll be using recycled and environmentally-friendly material to produce the bottles, so that raises the price. I just did my best guess of what I could make the price by adding some to the prices of similarly-sized Nalgene bottles.
Hi Jordan,
ReplyDeleteGreat job on your second venture concept. I definitley agree that your first venture concept was very well thought out, but its great that you took into consideration some changed. I like the visual you included and I think it very clearly displays your intentions with the product. Even though your pricing may not be spot on, I can see your thought process behind it, and I think that gives you a pretty good gauge of production costs and pricing.
Great job,
Holly Dixon
Hello Jordan! You did a great job fixing all the suggestions you received last time. I think all of them were good points to add to your product, so I am happy that you listened and adjusted. I think that allowing the water bottles to fit in cup holders is a major plus for consumers including myself.
ReplyDeleteHey Jordan,
ReplyDeleteThis was a very meaningful and helpful contribution to your previous venture concept and is a very good conclusion for your product. It has been exciting to watch your idea evolve over the semester and with all your edits from your last venture concept, you have really fleshed out the ideas as much as it could be. Good job.