Question.2209 - Consider some of the products you currently own. Are there any that you wish had additional features or improved functionality? What if that one product would just do [fill in the blank]! Alternatively, perhaps you've thought of an entirely new product idea. One that, to the best of your knowledge, is not currently available but is technically feasible. One that would fulfill an unmet need or, moreover, create a need. Your task for this assignment is to identify an entirely new or improvement to an existing product. Don't rely on your instructor for ideas! We want you to engage your creative problem solving abilities--a process known as "ideation" in marketing. The product idea you select will be used for all three parts of the final marketing plan to be developed and submitted as part of the course requirements. For Part 1, you must develop a market opportunity analysis. This should include the following: • Need, real or perceived, your product idea will fulfill or create. • Rationale for the need, including supporting secondary (Internet-based) research--note this should not just be based on personal opinion. You must support your rationale with verifiable facts and as much data as possible. I will be looking for a thorough, well-vetted, rationale. • Business case for your product idea. This should include an estimate of market potential in terms of sales revenue and/or units to be sold, a pro forma (projected) profit and loss statement 5 years into the future, and an estimate of start-up as well as ongoing production and marketing expenses. • Technical limitations. If your product idea is not technically feasible, you don't have a product. You have a fantasy. Your product idea must be realistically feasible using existing technology, or technology which is currently in development and has been proven to work. The body of this paper should be at least 10 to 12 pages, double-spaced, using APA format. It should be submitted with a cover page, table of contents, references page, and appendices as needed (none of which are included in the 10 to 12 page minimum). The font should be standard 12-point, and margins should be one inch. It must be supported with outside research citing a minimum of six different sources. Only one of these sources can be the Marketing Strategy & Analysis with a Biblical Perspective textbook.
Answer Below:
This market opportunity analysis intends to propose a new product in the market. The product idea is a Personalized Nutrition Assistant, which is termed as SmartNutriChef. It is a smart kitchen device, which incorporates Artificial Intelligence (AI) system and has been designed to assist users in making personalized as well as informed nutritional choices. This device will have several features including nutritional analysis on a real-time basis. This will be done with the help of sensors and cameras that can identify varied kinds of foods and provide all the necessary information regarding the same, such as calories, vitamins, macronutrients, and minerals, among others. After a thorough analysis, SmartNutriChef can provide personalized meal recommendations to the users who can then set their dietary goals and get suggestions based on their needs, preferences, and ingredients available. Not only this but the proposed product will also be able to provide cooking guidance or assistance to the users by giving step-by-step instructions based on the cooking skills as well as the dietary preferences of the users. Apart from this, pantry management, health tracking integration, meal shopping and planning lists, gesture and voice control, and continuous learning are also some of the features of the product. Specifically, the concerned device will be able to keep track of the user's pantry, including the available ingredients and their expiry dates. This will enable the users to manage their pantry and make use of the ingredients that are on the verge of expiration, thereby reducing food waste. With the help of the health-tracking integration feature, the product can synchronize with other health-tracking devices and applications so that health needs can be evaluated and progress can be monitored. Accordingly, the diet plan of the users can be adjusted. Another key feature of the product would be the shopping and meal planning list. With the help of SmartNutriChef, users can be able to plan their meals for several weeks according to their health requirements and preferences alongside generating an entire shopping list. Besides, the device also can provide healthier options for meals, thereby enhancing the health and well-being of the users. Along with all these features, the device can be controlled through gestures as well as voice commands due to the incorporation of AI and other latest technologies. This further enhances the level of convenience in preparing the meals. Lastly, the AI system will take information from the user and learn about their preferences as well as health requirements through continuous interactions, which will further enable the device to provide more accurate and real-time suggestions alongside adopting the changing needs of the users. Considering this new product, this analysis will provide details about the need for the product idea and the rationale behind it. Thereafter, the business case for the product will be created, which will include a projected profit and loss statement, estimates, and expenses. Besides, the possible technical limitations of the product idea will also be discussed in this analysis so that its technical feasibility can be understood. Needs that The Product Idea will Fulfil The product idea i.e. SmartNutriChef has been taken into consideration because it will address one of the major problems that are being faced in this modern world. With the increase in health issues, people are becoming more health conscious. As per the report presented by Lomte (2023), several global health challenges have been faced by people in today's scenario and those involve mental health crises, poor health systems, issues in food safety, and malnutrition. Additionally, the increasing prevalence of infectious diseases, climate change, environmental pollution, diabetes, and cancer are also some alarming health concerns (Lomte, 2023). As a result, more individuals around the world are focusing on their nutritional intake and hence, it has been reported that consumers' behaviors and attitudes have shifted towards attaining better health and overall well-being i.e. both mental and physical health, especially after the Covid-19 pandemic (DSM, 2023). However, many people are found to struggle while maintaining a healthy diet in their daily lives as they crave unhealthy food, do not get accurate nutritional information, and disregard health repercussions (Stevens, n.d.). As per the recent report of Sayer (2023), there are several applications and tools available today that can address this issue, including nutrition apps such as Noom, exercise apps such as Future, and meal delivery apps (such as Trifecta). Some of the other best health applications that are available in the recent context encompass Headspace, Talkspace, Sleep Cycle, Fooducate, and Caliber, which offer assistance for maintaining both the mental and physical well-being of the users. Among them, real-time assistance is provided only by Future. This app particularly focuses on exercise has several membership plans and does not have any free trials. It is best for those people who seek to acquire virtual personal training from professional coaches. This app also provides users with FaceTime and strategy call facilities so that their goals and progress can be discussed. It enables the coaches to provide real-time assistance on their training plans every week depending on their requirements and preferences, thereby making use of cutting-edge technology, such as biometrics to offer individualized experiences (Sayer, 2023). Herein, it needs to be noted that technological advancements have been made in this aspect. Companies are increasingly experimenting with AI and other latest technologies for availing personalized applications, thereby encouraging healthy eating, such as DayTwo (Ravindran, 2023). However, these apps often require manual input of the information and may not provide real-time assistance to the users. Besides, some of them might intend to sell unnecessary supplements and may not provide accurate information as they claim. For instance, some apps claim to measure stress levels and heart rates through sensors present below their phones’ cameras while some claim to measure blood pressure through cameras or screens (Holman, 2016). However, Holman (2016) reported that when these apps were tested they presented varying results, which made them unreliable for the users. Thus, the proposed product (SmartNutriChef) will address health-related problems and fulfill the needs of the people who are health conscious and require real-time assistance for their meal preparation, and dietary choices along with other related facilities. The Rationale for the Need The rationale for the need for people to require real-time assistance for their food and health choices is the increasing health hazards and ailments throughout the world. In 2021, more than 1.5 million young adults and adolescents lost their lives, which accounts for about 4,500 individuals daily even though young adolescents are considered to have the lowest risk of facing life-threatening events amongst all ages. Some of the key health issues faced by these individuals are accidents, mental health problems, and communicable diseases such as HIV and Tuberculosis. Other key causes of such kinds of deaths and health deterioration in the world have been reported to be malnutrition, overweight, and lack of physical activity (WHO, 2023). These health problems have become an alarming concern for the human race, especially after the outbreak of the pandemic. Specifically, it has been reported that with the deterioration of the mental health of individuals particularly after the pandemic, suicides have been found to increase among children and adolescents. For instance, "In a recent study in the U.S.…. suicide cases among adolescents increased after the pandemic [4]. A total of 5 out of 14 states had an increased number of suicide cases among adolescents after the pandemic, while the number of general suicide cases increased only in Oklahoma” (Jo et al., 2023, p. 22). These public health concerns have not only raised the mortality rate throughout the world but also have posed long-term effects. People with mental disorders such as comorbid depression and anxiety are found to have poor physical and psychological health alongside deteriorating their social relationships. All these altogether are found to impact the overall quality of life (QOL) (McCloughen, Foster, Huws?Thomas, & Delgado, 2012). This and several other factors have encouraged numerous people to become health conscious in today’s scenario. The study also shows that younger generations are becoming more health-conscious than their older counterparts. All this is because after the pandemic people have realized how health and wellbeing are important and why health problems are alarmingly increasing in this modern world. They have now become aware of the importance of physical fitness and the benefits that can be attained by maintaining healthy food-consuming habits (Texas Health Resources, 2023). They have also understood that physical health correlates with the mental health of an individual. In this regard, it has been found in the study of Mahindra, Patil, and Agrawal (2023) that regular physical activities can reduce the prevalence or consequences of chronic diseases, by about 20 to 30 percent. Consequently, improved physical health is found to weaken psychotic symptoms alongside treating medical comorbidities related to mental disorders (Mahindru et al., 2023). This is the prime reason why SmartNutriChef has been proposed it can help individuals to make healthier eating choices conveniently and in an informed manner. Besides, the product can also help individuals to reduce food waste, plan meals, and cook easily. Thus, this device not only provides nutritional information and helps individuals make informed choices but also monitors their progress through lists and diet charts. Herein, it also needs to be noted that the product idea has been developed majorly based on biblical perspectives so that competitive advantage can be attained among other companies who have been offering similar products in the market. As per the Holy Bible, certain food items are prohibited from being consumed even though there are no such strict rules on customs and dietary items. For instance, things that are smothered, offered meat, and blood are restricted from being consumed. On the other hand, some foods are considered to be healthiest in today's scenario, which are found to be allowed in the Bible such as olives, herbs, olive oil, grapes, honey, goat milk, lamb, and raw pomegranates, among others. Varied parts of the scripture also account for several supernatural or unusual foods that are now being increasingly included in a healthy diet and grocery list (Christopher, Chickering, and Geesey, 2021; Fairchild, 2020). For instance, drinks (wine), seeds (including cilantro seeds), grains (bread, barley, corn, etc.), clean animal meats (such as sheep, lamb, and goat), spices (Anise, garlic, salt, mustard, mint, etc.), dairy (milk, curd, cheese), nuts and fruits (apples, dates, almonds, pistachio), fish (Red Snapper, Tuna, Cod, and Salmon among others), legumes and vegetables (such as cucumber, gourds, onions, leeks, beans, and lentils), and fowls (i.e. dove, quail, and partridge, etc.). Nevertheless, there are only certain fishes that can be eaten as per the Bible. Particularly, according to Leviticus 11:9, people can eat only those kinds of seafood that have scales and fins, and hence, shellfish can be considered to be prohibited (Christopher, Chickering, and Geesey, 2021; Fairchild, 2020). All these will be carefully considered by the proposed device and only then appropriate suggestions will be provided to the users. Thus, it can be said that the need for the concerned product holds a biblical rationale. Business Case for the Product Idea All the above information indicates that the device has huge market potential, especially among health-conscious people such as young generations throughout the world. Thus, it can be analyzed that demand among this demographic would be high as compared to other age groups. Analyzing the competitors in the market, the device can have a competitive advantage as its ideation has a biblical perspective and hence, most people would like to purchase the device. With this unique feature, the product can have a niche market. With regular upgradation of the device and software within it, growth prospects of the market can be ensured. Herein, it needs to be mentioned that about $25000 would be required for prototype development. Besides, the software can cost about $30,000 and its maintenance cost would be around $320,000 per year. Additionally, manpower is an essential part of the product development and continuous success of the idea. Considering all these aspects, the projected profit and loss statement of the product has been illustrated in the below table. From the concerned table, it has been evident that the estimated sales revenue for the next five years in total is $11,30,000. With the estimation of probable expenses and income, the minimum budget required for initiating the product idea is $4,40,500.Herein, additional costs may be incurred at any point in time. Thus, the initial capital that would be sought for the start-up of the product is about $5,00,000. The minimum cost estimate for marketing and advertising expenses in the first year i.e. 2024 would be $10,000. Besides, the minimum production expense of the product in the same year would amount to $55,500. Therefore, deriving understanding from the profit and loss statement, loss may be incurred for the first 3 years and only thereafter i.e. from 2027, profit will be attained. However, by reducing cost the threshold can be met sooner. Projected Profit and Loss Statement PARTICULARS AMOUNT ($) 2024 2025 2026 2027 2028 TOTAL Income Sales 80,000 1,00,000 1,50,000 3,00,000 5,00,000 11,30,000 Subscription income 10000 20000 50000 100000 90000 Total Income 90,000 1,20,000 2,00,000 4,00,000 5,90,000 14,00,000 Expenses Advertising and Marketing expenses 10,000 500 500 500 500 Prototype Development 25000 Software Cost 30,000 Maintenance 3,20,000 3,20,000 3,20,000 3,20,000 3,20,000 Annual Salary and Compensations 50,000 50,000 50,000 50,000 50,000 Rent and Other expenses 5,000 25,000 25,000 25,000 25,000 Cost of Goods Sold 500 500 500 500 500 Total Expenses 4,40,500 3,96,000 3,96,000 3,96,000 3,96,000 20,24,500 Profit/Loss 3,50,500 2,76,000 1,96,000 4,000 1,94,000 Table 1: Pro Forma Profit and Loss Statement for 5 years Technical Limitations The creation of such a device with an integrated AI system can face some technological challenges. There may be a possibility that the device may provide some inaccurate nutritional analysis. Apart from data privacy concerns, inaccurate information provided by the device or the application can lead to wrong diagnoses and misleading suggestions. This can be quite harmful for people having serious health concerns as it can delay correct diagnosis and related treatment (Durning, 2023). Therefore, it is quite imperative to consider the effectiveness of the proposed device so that no such issues arise in the future. Challenges can also be evident while identifying food items. It is because people might require professional medical guidance concerning their daily food intake but they can over-rely on the technology of the proposed device (Durning, 2023). This can also adversely impact the overall well-being of the users. Irrespective of these possible challenges and limitations of the product, it can be said that SmartNutriChef is technically feasible. The main reason for stating this is that AI has been providing a huge opportunity for the healthcare sector across the world to mitigate human errors. It is also being considered for assisting medical staff and professionals along with providing 27*7 services to patients and alike (IBM, 2023). This shows that technological advancements can improve the performance and accuracy of the proposed device i.e. SmartNutriChef, thereby eliminating the above-mentioned limitations. As per the report of Intellipaat Software Solutions Pvt. Ltd. (2023), the global market concerning AI in the healthcare sector is expected to increase to about 8 billion USD by 2026. This shows that the proposed device has a great prospect of improving the overall health and well-being of the public. However, for this computer vision should be enhanced along with sensor technology and machine learning so that the device can generate accurate as well as real-time information. Besides, continuous upgradation and improvements in the system are also equally imperative for the users to get better services. Alongside developing the system with the latest technologies, advice from professional health specialists can also be sought so that the device can be made with great precision. This proves that the device is possible to be developed and launched for the betterment of humankind. Conclusion Deriving insights from the market opportunity analysis conducted in this paper, it can be concluded that the product idea of SmartNutriChef is quite feasible and has a huge market opportunity due to the continuous development of AI within the global healthcare industry. This ideation of this device has been suggested to address the health issues and increasing public health concerns around the globe. More and more people are growing health conscious day-by-day and hence, there is a huge opportunity for the idea to be successful. Besides, there is a serious need for tracking and providing real-time information and meal plans for health-conscious individuals so that healthy lifestyles can be encouraged and public health concerns can be reduced in the future. All these features can be offered by the product, which will create a competitive advantage in the global market. However, there may be certain technical difficulties that may arise but they can be controlled with prompt decisions along with continuous development and learning with the help of AI and other latest technological adoptions. Thus, the product is believed to attain success in the market, as it would largely support addressing the problems of health-conscious people while supporting the investors to get a good return on investment. It would benefit the community in the long term in the development of a healthy society. References Christopher, D.A., Chickering, L.C., and Geesey, J. (2021). Marketing strategy and analysis from a biblical perspective. US: Kendall Hunt Publishing Company. DSM. (2023). Health-conscious consumers are looking to enjoy it all. Retrieved from https://www.dsm.com/food-beverage/en_US/insights/insights/consumer-insights/health-conscious-consumers-are-looking-to-enjoy-it-all.html# Durning, M.V. (2023). Part 2, The cons: The rising influence of health & wellness apps. Retrieved from https://decipheryourhealth.com/part-2-the-cons-the-rising-influence-of-health-wellness-apps/ Fairchild, M. (2020). All the foods of the bible. Retrieved from https://www.learnreligions.com/foods-of-the-bible-700172#:~:text=Along%20with%20bread%2C%20fish%2C%20meat,portion%20of%20the%20biblical%20diet. Holman, T. (2016). The pros and cons of mobile health apps. Retrieved from https://www.dignityhealth.org/articles/the-pros-and-cons-of-mobile-health-apps IBM. (2023). The benefits of AI in healthcare. Retrieved from https://www.ibm.com/blog/the-benefits-of-ai-in-healthcare/ Intellipaat Software Solutions Pvt. Ltd. (2023). Artificial intelligence in healthcare - AI applications and uses. Retrieved from https://intellipaat.com/blog/artificial-intelligence-in-healthcare/ Jo, E., Seo, K., Nam, B., Shin, D., Kim, S., Jeong, Y., ... & Kim, Y. (2023). Deterioration of mental health in children and adolescents during the COVID-19 pandemic. Journal of the Korean Academy of Child and Adolescent Psychiatry, 34(1), 21-29, doi: 10.5765/jkacap.220041. Lomte, T.S. (2023). What are the top 10 public health challenges in 2023? Retrieved from https://www.news-medical.net/news/20230503/What-are-the-top-10-public-health-challenges-in-2023.aspx#:~:text=Infectious%20diseases%2C%20malnutrition%2C%20and%20food%20safety&text=Malnutrition%20affects%20around%2029%25%20of,of%20awareness%20of%20healthy%20diets. Mahindru A, Patil P, &Agrawal V. (2023). Role of physical activity on mental health and well-being: A Review. Cureus, 15(1), e33475. doi: 10.7759/cureus.33475. McCloughen, A., Foster, K., Huws?Thomas, M., & Delgado, C. (2012). Physical health and wellbeing of emerging and young adults with mental illness: An integrative review of international literature. International journal of mental health nursing, 21(3), 274-288, doi: 10.1111/j.1447-0349.2011.00796.x. Ravindran, S. (2023). Here come the artificial intelligence nutritionists. Retrieved from https://www.nytimes.com/2022/03/14/well/eat/ai-diet-personalized.html Sayer, A. (2023). The best health apps for your wellbeing (2023). Retrieved from https://www.si.com/showcase/health/best-health-apps Stevens, A. (n.d.). Why is it so difficult to maintain a healthy diet. Retrieved from https://www.mmsoulfoodcafe.com/why-is-it-so-difficult-to-maintain-a-healthy-diet/ Texas Health Resources. (2023). Study shows younger generations are more health-conscious than previous generations. Retrieved from https://www.texashealth.org/areyouawellbeing/Health-and-Well-Being/Study-Shows-Younger-Generations-Are-More-Health-Conscious-Than-Previous-Generations#:~:text=The%20reason%20for%20this%20trend,smoking%2C%20drug%20and%20alcohol%20use. WHO. (2023). Adolescent and young adult health. Retrieved from https://www.who.int/news-room/fact-sheets/detail/adolescents-health-risks-and-solutionsMore Articles From Marketing
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