With todays main competitors like Keurig and Tassimo, its a challenge for

KitchenAid to stay competitive and preventing itself from trailing behind. As

mentioned earlier (Assuming the design part is presented first), with our
revolutionary redesigned coffee maker, it would not only introduce new
modern technologies to the market, but it would also attract many more
consumers to choose KitchenAid over other companies, due to the available
options this CF offers. As a result of higher interests of this product, demand
increases, leading to a boost in sales for the company. Creating an
opportunity for KitchenAid to increase its market share of the coffee maker
by up to 10%. Thats an approximately $15million in revenue for this market.

Statistically, as you can

see on chart #1, in
2010, there was about
$1100Mil in sales, 75%
favoring the automatic drip design, so the decision to redesign the 12 cup
automatic drip was the correct path. Along with the factor that majority of
the consumers purchase the 12cup capacity. This newly redesigned coffee
maker would not only cost cheaper to manufacture, but increasing the profit
margin by up to 60%. This was due to the new material used. The cheaper
cost of manufacturing is resulted from replacing most of the Polypropylene
plastic used previously, with a green plastic called the Polylactide acid. This
greener plastic would not only be biodegradable, reducing the pollutions
caused by humans, but it would also be the factor for eliminating the
additional cost from the product.
The manufacturing process for this product would be completed in China, as
there are designated factories there that would complete this job for a very
inexpensive job. This is due the economic factors like, total labor costs, raw
materials, energy expenses, productivity growth, and current exchange
rates. With all these factors combined, additionally with the shipping costs,
13% HST and 9%FMN duty date, the total expenses spent is still 30%
cheaper than manufacturing the product in North America. This plan would
beneficial to generate the maximum revenue.

Advertisement- Online shopping.

In our modern society, online shopping has been increasingly popular and
product sales can be increased with this opportunity. A team with expertise
in marketing and Photoshop is hired to take and create outstanding images
of the product to give it its best spotlight. This is very important because
when consumers shop online on the internet, 80% follow their instincts and
focus on the elegancy of the advertised product. This is the number one
factor that attracts consumers online. rather than the text/description of the
products that the other 20% of the online consumers follow.
Slide 1:
Main competitors: Keurig and tassimo
Complete redesign, futuristic concepts of modern technology available today.
picture of the redesigned coffee maker

Slide 2:
Boost in sales due to high interest and demand of this newly redesigned
coffee maker.
The boost in sales = increase of market share of up to 10%.
Resulting in approximately 15million dollars of revenue for KitchenAid.

Slide 3:

$1100 million dollars spent on the U.S alone by consumers on purchasing

coffee makers.
75% favouring the automatic drip design

Slide4:

Automatic drip design with the 12 cup volume popularity.

Leading to the correct focus.

Slide 5:
Consists of new green materials used, called Polylactide. Replacing majority
of the polypropylene.
Raising the profit margin by up to 60%
Polylactide: cheaper to manufacture, biodegradable, decrease in pollution,
eliminating the EHF fee in some provinces.

Slide6:
Manufactured in China
- Designated factories --> inexpensive job
- Cheap labour cost
- Raw materials
- Energy expenses
- Productivity growth
 - Exchange rates
Additional costs:
- Shipping costs
- 13% HST
- 9%FMN
TOTAL COMBINED COSTS IS STILL 30% CHEAPER THAN MANUFACTURING IN
NORTH AMERICA!

Slide 7:
Growing Internet (what's that business term?) market.
Getting a piece of the market by:
- hiring a team with expertise in marketing and Photoshopping.
- Outstanding images of the coffee maker

In the online consumer world,

80% of them purchase products based on images representing the product
on an advertisement,
20% of the remaining focus on the text & description of the product.