CASE STUDY 3.

2 : EMBRACE INFANT WARMER

3-38. What target market does Embrace seek to serve and how attractive is
that market?

Target market refers to a group of potential customers to whom a company wants to

sell its products and services. According to the case study, the target market that
Embrace wants to serve is mothers whose having premature babies in rural area of
developing countries, for instance India and Nepal. Embrace’s target market also
includes private clinics. NGO’s and governments in those type of countries. This
market is very attractive because 80 percent of the premature babies born in the
developing world are born in rural villages. Embrace’s product is very cost effective
and this can help the government to prevent the babies death.

3-39. What example of primary research that Embrace’s founders completed

appear in the case?

One of the primary research appear in the case is when Linus Liang went for a trip to
Nepal to study about incubators in developing countries and saw many of them are
empty. He learned that the premature babies that mostly were born in rural villages
were never brought to a hospital and placed in an incubator. The babies are often
taken home before they were ready to leave due to family needs back at the village.

3-40. What actions did Embrace’s founders take to solicit feedback from
prospective customers and what did they learn from these efforts?

The action taken by the Embrace’s founders are they took the prototype to India to
test and collect feedback from customers. Some of the things that they have learned
from this action is they found out that Indian women believe that Western medicine is
very powerful, so they will reduce the recommended dosages. Also, they put an OK
and Not OK switch on the device so that the mothers will keep the device at ideal
temperature. Lastly, from talking to the potential customers, they found out that the
villagers asked for a different pricing options such renting the device.

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 3-41. If you were asked to conduct a financial feasibility analysis for Embrace,
what issues would you consider to complete this analysis and why are those
important?

If I were asked to conduct a financial feasibility analysis for Embrace, the issues that
I would consider is the overall financial attractiveness and the market itself. The
opportunities might seem convincing, but the business Embrace ventured in
potentially requires high amount of capital but relatively low return on the long term,
plus the new additional product that they want to try may not affordable for their
potential customers. They have to specifically assumed the risks in launching the
business and maybe expand their target market. This is important for them to
generate funds and to sustain the growth of the business.

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