Your iPad Deserves Better (A New Product Design/Concept)

Your iPad Deserves Better
A New Product Design/Concept

This paper contains the group's first creative activity. It essentially shows the rationale and other details regarding the production and manufacturing of the team's new concept.

By: Jonee Bilasano, Yna Cruz, Marc Guisson, & Jaja Sahilan

Submitted to Professor Jorge Saguinsin

Entrepreneurship Class
Regis Program
AGSB, Rockwell Center
Makati City

Introduction

Since the launch of Apple iPad here in the Philippines last December 2010, there has been a huge growth of iPad users. However, although the iPad accessories market is quite healthy, the group has noticed a few gaps in the types of accessories available and the accessories that are demanded by the market. The group has then decided to further explore this gap to see where we can step in to capture this market potential.

Concept

The group looked at Apple iPad cases and bags currently available in the local Philippine market. Aside from that, they checked out stores that sold Apple accessories as well as online stores to see what form factors are usually sold in the Philippines. The group discovered that there was an abundant supply of pouches, hard cases and leather cases for the iPad, but they were unable to spot any carrying cases specially designed to enable the user to safely carry and store his/her iPad and its accessories in style.

After doing a few interviews with iPad owners, the group has discovered that since there is a definite shortage of iPad carrying cases, these owners would usually just look for bags which can more or less fit the iPad and whatever accessories they would want to carry with them. This is at the expense of the iPad's safety, since most if not all of these available bags have no safety padding built-in.

It is with this discovery that the group has then decided to create a stylish carrying case that is custom-fit to carry the iPad as well as its essential accessories. The carrying case the group conceptualized, as seen in Figure 2 below, is designed to carry the following items:

• iPad (original or version 2) with or without a hard case/smart cover
• iPhone or any other smartphone
• charger cable and charger brick
• earphones
• pen or stylus for iPad
• optional slot for keyboard,  notepad, etc.

Bill of Materials

To make one unit of the carrying case, the following materials are needed:

1. Main material: polyrubber or synthetic leather

Length (inch)	Width (inch)	Multiplier (units)	Area (sq. inch)
10	8	2	160
10	18	1	180
26	1	1	26
10	1	1	10
5	1	1	5
20	2	2	80
Total Area			461

2. Lining

Length (inch)	Width (inch)	Multiplier (units)	Area (sq. inch)
10	18	1	180
10	8	2	160
26	1	1	26
Total Area			366

3. Karton

Length (inch)	Width (inch)	Multiplier (units)	Area (sq. inch)
10	18	1	180
10	8	2	160
Total Area			340

4. Others: 2 pcs. hook & ring, 2 pcs. magnetic button, piping, thread

Cost of Goods Sold

The following are the direct variable costs attributed to the production of the product:

Option 1: Polyrubber

Item	Units	Unit Price (PHP)	Total Cost (PHP)
Polyrubber	461 sq. in.	0.05	23.05
Lining	366 sq. in.	0.03	10.98
Piping	1 pc.	10	10
Hook and ring	2 pcs.	10	20
magnetic button	2 pcs.	5	10
Foam	160 sq. in.	0.04	6.4
karton	340 sq. in.	0.005	1.7
Thread	1 pc.	2	2
labor	1	18	18
cutting	1	3	3
Total			105.13

Option 2: Synthetic Leather

Item	Units	Unit Price (PHP)	Total Cost (PHP)
Synthetic Leather	461 sq. in.	0.09	41.49
Lining	366 sq. in.	0.03	10.98
Piping	1 pc.	10	10
Hook and ring	2 pcs.	10	20
magnetic button	1 pcs.	5	5
Foam	160 sq. in.	0.04	6.4
karton	340 sq. in.	0.005	1.7
Thread	1 pc.	2	2
labor	1	18	18
cutting	1	3	3
Total			123.57

How to Produce the Product

The group will use a third-party manufacturer to produce the product. All aspects of the production, from cutting, sewing, and assembling, will be done by this third-party manufacturer.

Product Objective

1.      How does the product meet customer wants and needs?

The product meets the customer's wants and needs.

To start with, the immediate target market for this product is the Philippines' A and B segments. Those who have evident purchasing power belong to the A and B segments. They have money to burn so to speak.

The data above in fact is corroborated by a study conducted by Interbrand, a global branding consultancy firm. And this organization says:

Compared to other Asian nations, the Philippine luxury market is small, but influential. [Emphasis added] Dominant mall operators SM Prime Holdings and Ayala Malls are important players in high-end retail, as is Stores Specialists, which may not have its own complexes, but has partnered with over 50 international luxury brands, most of which have boutiques in Greenbelt and other prominent malls.

The posh Greenbelt in Manila's Makati business district is a picture of luxury, housing a rich portfolio of prestige luxury labels in its five complexes. Ayala Mall features sprawling gardens and water elements that connect the center's five buildings. Constructed most recently, Greenbelt 5 features limestone flooring, modern furniture and velvet drapes, which have undoubtedly set a high benchmark in what luxury retail means in the market

The Interbrand data actually confirms that the A and B segments are small, but they are also the richest people in the country. So even if their collective segment is small, still this is a viable target market which patronizes luxury products like Louis Vuitton and Hermes bags. Apple Inc. products also fall under the category of luxury or lifestyle brands.

As regards Apple Inc. products, there is an evident demand for this. A lot of consumers want these items. And one of the company's best sellers is the iPad. The graph below shows that sales of iPads have gone up while notebooks have gone down. This indicates that people are actually patronizing the iPad more.

Now, as regards people needing an IPad bag, one blogger said that:

With iPads being more popular and apps being more diverse, the iPad has almost become a desktop replacement for your everyday life.  I carry my iPad 3G around with me everywhere since I can easily access my company network and pull up any information that I need.  But I always have a bad feeling of carrying around a naked iPad and have been afraid that it might drop and get damaged. (Cheng, The Gadgeeter, 2010)

The opinion above is actually shared by others. Various forums discuss the plus and minuses of different IPad bags and cases.

2.      How does it defeat competition?

The competition in the iPad bag and cases industry is fierce. And this can be gleaned from a quick survey of the landscape via Porter's Five Forces Model.

The competition is fierce in the iPad bag/case industry. Thus anyone coming in must have a solid concept and viable value proposition.

In this case, the group's value proposition is to provide consumers with an iPad bag that feels like a Louis Vuitton but is as functional as a Pacsafe. With this as the value proposition, the group's product will be different from the 

pack. After all, it bridges the gap between bags that are functional but grotesque and stylish but useless.         

3.      How is it unique?

The bag is unique because it will be the first time that a bag which feels like a Louis Vuitton but is functional as a school bag will be introduced in the market. Moreover, it will not be exorbitantly priced. Pricing will be high but not insensitive.

Other brands only focus on functionality. And there are those that only offer style. The group therefore offers both style and utility at the same time. One is not sacrificed over the other.

Admittedly the target market is the A and B segment, still the group does not plan to bleed the consumers dry. The bag will be accordingly priced. 

COMMENTS BY PROF:

 Part of Good Product Design is:  Name and  Pricing and Positioning I am giving an interim grade of 3.0 The other group which gave a good name to their product did well..


In writing the bp, this portion is about the business concept