Product & service Innovation Prof. Sung Joo Bae

1. “A product that will keep you warm anywhere anytime” Product & service Innovation Prof. Sung JooBae

2. Product development process

3. Product Innovation process Market Prediction Product development Marketization • Market research • Customer research • Competitors • Technological trend • Market Practicality • Market Segmentation • Market positioning and strategies through 4Ps

4. Problem Identification: Ways people keep warmth

5. Idea: Ways that can allow people to feel warm outside • Air Heaters • Problem: they make the skin too dry • Ideas: • Making a heater that combines the humidifier • Detects the humidity of the room • A pocket warmer • A separate material that fits in to the original pocket and heats up • the pocket Heating clothing -Designed as a sweater or a scarf to make it more user-friendly • Hand warmers • Electrically heated • Hearted through natural energy • e.g. Solar panels • Feet warmers • Making electrical heating attached to the shoes (redesigning the functionality of the shoes) • Having a separate part that warms the feet • that can be taking off as well as freely be • attacked to any shoes • Using the space that has cushioning on the • shoes, put technologies that produces heat • according to ones movement

6. Direction of the Product PRODUCT Technology Driven design User Driven design Subconscious customer needs Perceived customer needs • So it is important to have short product developmental period in order to produce the product as fast as possible • Also it is about “differentiating” from other products that may produce body warming products • Customer’s need for products that warms their body has already been perceived • Companies have been already trying to fulfill this needs

7. Market research: existing products

8. Market research: existing products

9. Understanding needs: Survey • QUESTIONS • What part of your hands and feet do feel the most heat loss? • Hand: Fingers Palm Back of the hand • Feet: Toes Sole Back of the foot • 2. Do you use a heat warmer of some sort during the winter? • Yes no • 3. What are the problems with existing heating products? (chemical hand warmers, electrically charged warmers etc.) • Flexibility • Portability • Convince (re-chargeability or physical movement ) • Not enough heat • Does not look good • Hand: Fingers Palm Back of the hand • Feet: Toes Sole Back of the foot • Yes no • (32) (48) • Flexibility (9) • Portability (23) • Convince (re-chargeability or physical movement) (27) • Not enough heat (21) • Does not look good (38) (23) (19) (43) (18) (19)

10. Market survey What do customers want ? • New Product • Maximum flexibility with the product • Portable outside aesthetically & functionally • Convenience by allowing more movement and a more convenient product usage (more fit for everyday usage) • Available Products • Not very portable (aesthetically not appealing ) • Not convenient (not for every use) • Not much flexibility

11. Product concept Product Concept • Warms the hands and feet with below features • Portability/ convenience • Aesthetically appealing products • Flexibility • Adaptability to different environment and usage of hands and feet • Easy to use products

12. Idea sketching no.1 1. 2.

13. Idea sketching no.2 4. 3.

14. Idea sketching no.3 5. 6.

15. Idea sketching no.4 7.

16. Idea sketching no.4 Self-supplying footsole Idea: re-charging product through a material that heats by the reaction of the physical movement of The feet How it could work: use dynamo to generate electricity by the up and down ward moving of the hee. The electrical product generates 4.8 AV Voltage Problems: - Dynamo is fragile and needs enough space - There is no heat generated when not moving so the person have to continue to move to generate heat.

17. Designs & Functionality detachable For flexibility and adaptability for different environments make the heating patches detachable so that the user can heat up different parts of the hand

18. Designs & Functionality • Heating panel and the shoe material should be able to be separated for wash • Also this will allow to make supplementary products for further profit

19. Stage 2: Research & analysis

20. Anatomy of the Hand & Feet

21. Anatomy of the Hand & Feet: Observation and Research Observation Research -Uses top of the finger for to touch the screens eg. Smart phones -Has low blood circulation -Fingers are constantly bended -According to the infra-red observation it is the warmest part of the hand -Most heat but at the same timemost sensitive -Most bended part of the hand -People usually have the hand warmers on the palm rather than on the back of the hand -Also rubbing the palm makes better blood circulation and heat from friction -people feel the need for the palm to be warm as well

22. Analysis of materials Valuation Criteria Safety Stretchiness Cost Heat Thickness Definition High/ Low Melting point The flexibility of the fabric Cost of the fabric How thick a single layer of fabric is Technological Advancement To produce heat Washable Easy to wash

23. Analysis of materials Materials • ES • (electro spinging) Polyester • Carbon Fiber Nylon Spandex Safety Stretchiness Cost Heat Thickness Washable 16 17 12 18 15

24. Analysis of materials Materials Micro Fiber • Nitrile rubber Para-aramid Neoprene • Ventile PCM Safety Stretchiness Cost Heat Thickness Washable 11 13 18 15 14 17

25. Analysis of materials Materials PCM Nylon Safety Stretchiness Cost Heat Thickness Washable 18 18

26. Analysis of batteries • Lithium Ion • Lithium Polymer NiCd NiMH battery Thickness Fast-charge time Energy density Cost • 8 • 12 • 8 • 6

27. Batteries Lithium Polymer Battery Lithium Ion Battery • Lithium polymer chemistry differentiates itself from Lithium Ion in the type of electrolyte used (a plastic-like film that does not conduct electricity but allows ion exchange - electrically charged atoms or groups of atoms). • The dry polymer design offers simplifications with respect to fabrication, ruggedness, safety and thin-profile geometry. • Cell thickness measures as little as one millimeter (0.039 inches). • Can be formed and shaped in any way imagined. • Improved safety - more resistant to overcharge; less chance for electrolyte leakage

28. Stage3: Prototyping & Validations

29. Experimentation: Action 1. Understanding the materials

30. Experimentation

31. Experimentation • No wires • Placed at the important areas • Top of the sole, Fabric on top.

32. Experimentation

33. Experimentation

34. Experimentation

35. Experimentation Removeable Battery

36. Experimentation Found new materials during our experimentation and replaced the original wiring system to this! Thus the design became more suitable to our original targeted function! • Low price • Thin as paper (aesthetical purpose) • Well functions with heat

37. Experimentation 2. Experimenting with wires and heat Heating wires for electrically heated seating cushion Material that is known to help maximize heat The heat from the bottom warms up the whole feet more efficiently

38. Final Design Inside Layer Outer Layer-supplementary product

39. Final Design Customization by allowing to cut the material Detached 240 235 230 Heating material

40. Stage5: Business Model & Market Position

41. Market Position H Complex products with difficult to define market requirements Complex products with clearly defined market requirements Structural Complexity Simple produces with difficult to define market requirements Simple products with clearly defined market requirements L L H Functional Complexity

42. Market Position H Structural Complexity Simple products with clearly defined market requirements L L H Functional Complexity

43. Market Position Market Segmentation Professional-use Basic-use • Sports wear • Professionals or highly equipped customers are targeted with high price and high functionality • Alsodesigned to be more targeted on male than female customers. Basic use Targeted on younger female customers with low price and characterized product designs • General use • Targeted on younger female customers who are fashion conscious and wants to use the product in everyday use. • Thus the product targets to customers who has buying power to not only buy the heating products but the supplementary products.

44. Marketing Mix • 1. Online • SNS channels • Youtube (a commercialized video that shows how to use the product for the customer to understand how the product works) • 2. Offline • Having a booth where people can come and experience the product first hand before purchase Lithium polymers=2000-3000won PCM capsule materials = 8,800-13,200won/m2 Heat layers= 2500-3000won Material cost (feet)=800-1200won Electrical circuits=300-500won Price per unit Foot wear: 5,600won Hand gloves: approx. 13,600won (+production, promotion, distribution cost) Price Promotion Marketing Mix Product place Hand warmer gloves: With a thin layer that warms the gloves there will be a complementary product that is fashionable to wear on top of the first layer. (small, medium, large) Feet heaters: the size will be able to be customized for the customers to an limited extent. Because of the different kinds of shoes that the product will be used it is important that the product can be used in any shoes. • 1. Online • Facebook page (SNS channels) • Online stores connected to larger online retail stores such as Gmarket or Auction. • 2. Offline • Multi-shop stores • pop-up stores/ temporary stores

45. Thank you!