Venture Concept No. 2

Brian Dusape
Pryor
7.26.2016

Venture Concept No. 2 – KAJUKO Coolers

Opportunity

There is an opportunity to tap into the Bluetooth technology market. This market is worth upwards of $500 billion. We’re living in a society that embraces, and sometimes obsesses over, technology. According to the Pew Research Center, 68% of American have smartphones and 45% have tablet computers. Ownership of digital devices has grown within the past two decades. In fact, the same research report found that cell phones are the most commonly owned devices.

To continue, with the innovation of Bluetooth technology, more customers are buying Bluetooth devices for their cell phones, entertainment systems, vehicles, and much more. Bluetooth allows for tech users to experience their modern technology without having to deal with power cords. 

Cords tangle up, and tech users want products that they can use wirelessly. The average home hardly uses its landline; owning a “home phone” is not largely considered a priority as it used to be in the 1990s and the early 2000s. Giant cable network companies such as Time Warner Cable and Bright House Networks are offering more wireless product packages to their customers.

People are accustomed to enjoying sounds while they are on the go, and many tech-savvy consumers are now buying Bluetooth speaker devices on the Internet.

Potential customers have adapted to the world’s new technological climate by Google searches and word-of-month. Potential customers, within a wide age range, consult all of the resources that they have on hand before spending their money.  

KAJUKO’s target customers are millennials, or young adults between the ages 18-25. Because KAJUKO has collected an extensive list of the consumer habits and lifestyle trends of this demographic, our research is the most important resource in this venture. The younger generation enjoys all the different ways that someone can feel in control of their life.

The people of this generation recognize great ideas. Millennials are constant seekers of "life hacks", or products and services that make living a lot easier (i.e. the worldwide popularity of customers buying hover boards).

What my customers all have in common: the rationale to buy new products and services and the technology to view the various platforms used for marketing and promotion. I am looking to extend product lines which appeal younger generations as well. 

Modern consumers search online for what is trending. Online consumers do their research on what they need to shop for and who to buy it from. Online consumers (just like every other customer) want quality products and services from brands that they can trust. To continue, an online customer usually purchases a product at a fair value after collecting input about products from Internet articles on blogs and talking with their peers.

With that being said, there is a big opportunity to reach a market of tech users who heavily rely on mobile devices, celebrate wireless technology, and love music. A company could attract these potential customers via blogging conventions and strategic marketing via smartphones. These customers are loyal to brands that utilize these channels.

Once more, the younger customers are the prime target for KAJUKO’s innovation. The best window of opportunity will remain open for the next 5-7 years. Some of the most tech-friendly cities: Seattle, Washington; Washington, D.C.; Boston, Massachusetts; Los Angeles, California; Denver, Colorado, San Diego, California; Houston, Texas; Philadelphia, Pennsylvania; Portland, Oregon; and Atlanta, Georgia.

Innovation

KAJUKO coolers are set to sell at $199.99.  Our model unit has Wi-Fi capabilities; Bluetooth technology; two large dual stereo speakers; a 5” x 4” LED touchscreen interface, four wheels (for easy transportation); four cup holders; a THERMOS cooler that can fit at least 28 regular-size canned beverages; one RCA connector port; and two auxiliary cord ports.

At the core level, customers need a product that can not only store their favorite drinks but also liven up the party with friends. At the tangible level, the product combines premium-quality insulation packing with modern technologies. Customers can purchase this product instead of having to buy its two separate components. At the augmented level, the product is offered with a 12-month manufacturer’s warranty.

KAJUKO has a goal of selling 200,000 units by the end of 2018. Units will be sold at large box department stores such as: HHGregg, Target, Best Buy, Wal-Mart, Home Depot, Lowe’s, and Kohl’s. It will also be sold in smaller electronic stores such as RadioShack.

As mentioned before, the company looks to employ unique strategies for marketing and promotion. We plan to offer the product with BOGO sales during the summer of 2017. We plan to offer a 10% discount when customers share the sale with their friends through Facebook and other social media sites such as Twitter, Instagram, and so on.

After testing the product with potential customers, we know that a sample of them are concerned about the durability of the product. Making sure that the Bluetooth cooler has a strong structure is a large concern – as well as making sure that it is waterproof. Because customers are worried about the unit failing on them after its purchase, we will offer free trial periods. The average free trial will be seven days after its delivery to the customer. Some customers would love to enjoy the product on a beach or in other remote areas; a few had a suggestion to create a unit that has solar panel technology to recharge the unit while it is outside.

Because KAJUKO aims to be a leader in the electronics industry, we want every product from the company to keep up with the updates to digital technology. KAJUKO plans to launch an app for the karaoke feature of the device. This will allow consumers to sift through different songs and playlists to sing with their friends. It will also have an option for customers to buy certain song packs that KAJUKO plans to organize with music directors and composers. Lastly, the app will be accessible for phones, laptops, and tablets. It will work in conjunction with the cooler device if it is connected to a television or a projector (with the HDMI port). 

VENTURE closing

In the next five years, I want to see the first model created. I just want to see it used for what it should be used for: a great time. As an entrepreneur, I want to be able to create products that innovate the way that we paint our lives. I hope to learn more about the tech retail industry so I can appropriately channel my ideas and innovations onto paper. It’s one thing to have the vision, but it’s another thing to have the ingredients to mold your ideas into existence. 

Feedback:  
Most of the feedback that I received was on the marketing and promotion of the products and services which I listed above. My interviews outlined my step-by-step plan to target Millennials, or young adults. One peer recommended not using the Internet as a brick-and-mortar for my future operations for the company. He argued that I should only go for it if the product is viral and is able to realistically survive off of its popularity. Others recommended not going ahead with promoting the product through magazines and catalogs; my peers (who are mostly Millennials) say that those media are outdated and would be ineffective in reaching out to my target demographic. What I've changed with my concept is the direction in which I plan to storm the market with the product. Ultimately, this will shift how KAJUKO takes off and how we can not only sell to Millennials but also to older customers, such as those who were born in the Baby Boomer generation.