Product & service Inno-vationProf. Sung Joo Bae

“A product that will keep you warm any-where anytime”

Concept

Re-search

Analyze

Proto-type

Valida-tion

Business model

Product development process

Product Innovation process

Market Prediction

Product de-velopment

Marketiza-tion

• Market re-search

• Customer re-search

• Competitors • Technological

trend• Market Practi-

cality

• Market Segmenta-tion

• Market positioning and strategies through 4Ps

Problem Identification: Ways people keep warmth

Air HeatersProblem: they make the skin too dryIdeas: -Making a heater that combines the humidifier-Detects the humidity of the room

Hand warmers-Electrically heated -Hearted through natural en-ergy 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

A pocket warmer-A separate material that fits in to the original pocket and heats up the pocket

Idea: Ways that can allow people to feel warm outside

Heating clothing -Designed as a sweater or a scarf to make it more user-friendly

Direction of the Product

Technology Driven design

User Driven design

Perceived cus-tomer needs

Subconscious customer

needs

PRODUCT

• Customer’s need for prod-ucts that warms their body has already been perceived

• Companies have been al-ready trying to fulfill this needs

• So it is important to have short product developmen-tal period in order to pro-duce the product as fast as possible

• Also it is about “differentiat-ing” from other products that may produce body warming products

Product Description Price (won)

Chemical hand warmer Reacts to oxygen by press-ing a button inside the prod-uct OR by shaking the prod-uct it produces heat through chemical reactions

500~2000

Oil type hand heater oil that is used for hand lighters are used to refill the device and then turned in to heat when needed)

14,000~25,000

Electrical hand heaters Can be recharged and used later by turning on the switch.

20,000~70,000

Market research: existing products

Product Description Price (won)

Biker’s hand heater It is connected to the bat-

tery of the motor cycle to produce heat. It usually cannot be separated from the power supply but some products can be separated by using Lithium ion batteries.

10,0000~35,0000

Electrically heated slippers When plugged on the elec-tricity the product heats up the bottom part of the feet

10,000~40,000

Market research: existing products

Understanding needs: Survey QUESTIONS1. 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 exist-ing 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)

Market survey

What do customers want ?

Available Products• Not very portable (aes-

thetically not appealing )

• Not convenient (not for every use)

• Not much flexibility

New Product

• Maximum flexibility with the product

• Portable outside aesthetically & functionally

• Convenience by allowing more movement and a more conve-nient product usage (more fit for everyday usage)

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

Product Concept

Idea sketching no.1

1.

2.

Idea sketching no.2

3.

4.

Idea sketching no.3

5.

6.

Idea sketching no.4

7.

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 VoltageProblems: - 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.

Idea sketching no.4

Designs & Functionality

detach-able

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

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

Stage 2: Research & analysis

Anatomy of the Hand & Feet

Anatomy of the Hand & Feet: Observation and Research

-According to the infra-red observation it is the warm-est part of the hand -Most heat but at the same time most 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 cir-culation and heat from friction-people feel the need for the palm to be warm as well

-Has low blood circulation-Fingers are constantly bended

Re-searchObserva-tion

-Uses top of the fin-ger for to touch the screenseg. Smart phones

Valuation Criteria

Definition

Safety

High/ LowMelting point

Stretchiness

The flexibility of the fabric

Cost

Cost of the fabric

Heat

TechnologicalAdvancementTo produce heat

Thickness

How thick a single layer of fabric is

Washable

Easy to wash

Analysis of materials

Materials

Polyester ES

(electro spinging) Carbon Fiber Nylon Spandex

Cost

Safety

Stretchiness

Heat

Thickness

Washable

Analysis of materials

16 17 12 18 15

Materials

Neoprene Ventile

Cost

Safety

Stretchiness

Heat

Thickness

Washable

PCM

Analysis of materials

11 13 18 15 14 17

Micro Fiber Nitrile rubberPara-aramid

Materials

Cost

Safety

Stretchiness

Heat

Thickness

Washable

PCM

Analysis of materials

18 18

Nylon

NiCdLithium Ion Lithium Polymer

Analysis of batteries

Thickness

Fast-charge time

Energy density

NiMH battery

Cost

8 6 8 12

Batteries

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

Lithium Polymer Battery

Stage3: Prototyping & Validations

Experimentation: Action

1. Understanding the materials

Experimentation

• No wires• Placed at the important

areas• Top of the sole, Fabric on

top.

Experimentation

Experimentation

Experimentation

Experimentation

Removeable Battery

Experimentation

Experimentation

Found new materials during our experimentation and re-placed the original wiring system to this! Thus the design became more suitable to our original targeted function!

•Low price •Thin as paper (aesthetical pur-pose)•Well functions with heat

Experimentation

2. Experimenting with wires and heat

Wire positioning Warmth comfort

concentrated on the toesOn the top of the feet

Bottom of the feet

Along the toes

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

Final Design

Inside Layer

Outer Layer-supplementary product

Final Design

Heating material

DetachedCustomization by allowing to cut the material 240235230

Stage5: Business Model & Market Position

Simple produces with difficult to define market requirements

Complex products with difficult to define market requirements

Complex products with clearly defined market requirements

Simple products with clearly defined market require-ments

HL

H

L

Structural Complex-

ity

Functional Complexity

Market Position

Simple products with clearly defined market require-ments

HL

H

L

Structural Complex-

ity

Functional Complexity

Market Position

Market PositionMarket Segmen-

tation

15-24 25-34 45-54 55-64 65+ABCD

Sports wear •Professionals or highly equipped customers are targeted with high price and high func-tionality•Also designed to be more targeted on male than female cus-tomers.

Basic use Targeted on younger female customers with low price and charac-terized product de-signs

General use•Targeted on younger fe-male customers who are fashion conscious and wants to use the product in everyday use.•Thus the product targets to customers who has buy-ing power to not only buy the heating products but the supplementary prod-ucts.

Professional-use

Basic-use

Marketing Mix

Price

place

Promo-tion

ProductMarketing

Mix

1. 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. (s-mall, medium, large)

2. 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.

Lithium polymers=2000-3000wonPCM capsule materials = 8,800-13,200won/m2Heat layers= 2500-3000wonMaterial cost (feet)=800-1200wonElectrical circuits=300-500won

Price per unitFoot wear: 5,600wonHand gloves: approx. 13,600won (+production, promotion, distri-bution cost)

1. Online• Facebook page (SNS channels)• Online stores connected to

larger online retail stores such as Gmarket or Auction.

2. OfflineMulti-shop storespop-up stores/ temporary stores

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. OfflineHaving a booth where people can come and experience the product first hand before purchase

Thank you!