Professional Documents
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Student’s Name:
Course Code:
Professor’s Name:
Date:
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Contents
1. Our Product XXL...................................................................................................................................3
1.2 XXL Mission......................................................................................................................................4
1.3 Purpose of XXL.................................................................................................................................5
2. Detailed Written Description of the Product...........................................................................................5
2.1 Why your product or service is innovative/ different?.......................................................................6
2.2 Why your product or service is innovative/ different from the Rest?................................................7
3. Service Offering Solutions:...................................................................................................................7
4. Value Proportion..................................................................................................................................8
5. Key Activities........................................................................................................................................9
6. Key Partners and Resources...............................................................................................................10
7. Customer Relationship and Customer Segment................................................................................11
8. Channels and Revenue Streams.........................................................................................................12
9. Market Analysis.....................................................................................................................................13
9.1 SWOT Analysis.................................................................................................................................13
9.2 Target Analysis.................................................................................................................................14
10. Cost Structure and Financial Projections.......................................................................................14
10.1 The necessary Requirements.........................................................................................................15
10.2 Expected Revenue.........................................................................................................................15
11. Key Risks........................................................................................................................................17
11.1 Technical Dependability.................................................................................................................17
11.2 Market Acceptance........................................................................................................................17
12. Conclusion.....................................................................................................................................18
13. References.....................................................................................................................................19
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focuses on enhancement to ensure that the management of food is done in the most efficient way.
XXL is a smart refrigerator that are connected to cloud, controlled via remote and connected to
smartphone. The product is unique compare to the convectional refrigerators due to the
incorporation of the AI features that could be applicable for energy efficiency. The product
gadgets to offer benefits to its users. The refrigerator offers a innovative, connected refrigeration
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solution by leveraging cutting edge technology and intuitive design that enhances convenience,
household. Through leveraging the cutting-edge technology, the purpose of XXL targets
convenience, efficiency and optimum sustainability in the long run. For example, the XXL offers
mobile app connectivity, leading to convenience and control over functions. Secondly, the
product fosters energy efficiency through saving electricity cost by a continuous monitoring of
technology to enhance the quality of life for the target customers. The Smart Refrigerator
features an intelligent food management system which identifies the content of the refrigerator
and offer a real-time freshness information and hence empower the users to effectively manage
food material. At the same time, the Smart refrigerators aims at reducing food waste,
contributing to long-term development of the immediate environment. In this case, the product is
not only beneficial to the individuals but also creates value for the immediate society.
The major beneficial functions of the smart refrigerator are that it offers a remote-control
functionality through mobile phones and other smart devices. The function allows users of the
product to monitor and regulate the temperature of the product in the refrigerator, receive
notification of the changes in the temperature and access real time saving features. Also, the
product allows for flexibility and autonomy in the management of the daily lives. Additionally,
the integration of the voice interaction technology in the refrigerator is a game changer as it
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simplifies user experience and hence enable various operations to work via the voice command
technology. Thus, the interaction with the refrigerator is more convenient and user friendly for
refrigerators is energy efficiency feature, connectivity function, and Innovative features. The
energy efficiency is one of the reasons why the Smart refrigerator is efficient to use in the long
run. In this case, the technology in the smart refrigerator optimizes the refrigeration system with
intelligence control to reduce energy consumption. Some of the benefits of the use of the
refrigerator is that it promotes the economical and affordable use of the clean energy. In the long
run, the technology aims at reducing the cost of energy that people use in their homes. Secondly,
the connectivity function allows the refrigerator to interact it other smart devices in the house,
leading to a comprehensive home management system and the enhancement of the overall life
experience for those wish to improve their household item (Stasha, 2021). In particular,
innovative features such as visual recognition technology, voice control, and artificial
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intelligence offers a real time ingratiated, personalized recipe recommendation to users and the
2.2 Why your product or service is innovative/ different from the Rest?
The traditional refrigerators offered supportive framework for food storage and management.
In this case, the device only served the purpose of ensuring that food do not get spoilt. On the
other hand, the XXL Refrigerator is fitted with additional features that ensure efficiency in
storage and energy cost reduction. The smart refrigerator utilizes voice control and artificial
intelligence technologies, allowing users in the modern homes to manage food, search for
recipes. Also, XXL assists in performance of other tasks using voice, and thus improves the user
experience. Secondly, the voice-activated features require connection via applications via Wi-Fi.
Additionally, technology disruption has offered solution for the various problems in the modern
homes. For instance, the LG InstaView refrigerator with voice recognition won the Best
Innovation Award of the CES 2021 Innovation Award, due to the company’s effort in making the
kitchen more efficient and convenient for the product users (Canada, 2020).
machines, dish washers and refrigerators accounts for the household items that consume most
energy in homes. The study found out that the refrigerators are the king in power consumption
when it comes to the household items. A refrigerator consumer more than 30% of the electricity
used in appliances since it is the only appliances in homes that works for 24 hours in day. Also, it
important to note that refrigerators use more than 300 to 800W in a day(Marsh,2023). While
studies have been established to identify and solve, he causative agent for high energy
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consumption in homes and the key focus is directed to renewable energy and reduce of energy
wastage in homes.
The solution that Smart refrigerator offers aligns with the ability to revolutionalise food
management in the household, empower the appliance users to maintain a convenient and
efficient control as well as contribution to energy efficiencies and energy control. The
combination of advanced technology with practical functionality makes the appliances beneficial
and offers a comprehensive solution for moder living (Marsh,2023). As a result, the appliances
4. Value Proportion
A refrigerator is necessary in every household and hence the necessity to depend on the
individual needs and preferences. Central to the use of the Smart Refrigerator is the appliance
facility to utilize Internet connectivity, enable users to monitor the performance of the
refrigerator remotely and control various aspect of the appliances remotely. Some of the reason
why the value proportion for the Smart Refrigerator is different is due to the following reason:
The Smart Refrigerators are beneficial appliances as they offer benefits of reducing food
waste and energy consumption. The improvement of efficiency has a direct relationship
with the size of the power bill and hence lead to a cost savings in the aspect of energy
use.
The product enhances convenience and connectivity through remote monitoring and
control, leading to effective tracking of the food items through a dedicated application.
The product has potential for Market growth and consumer demand, with the anticipation
of significant growth in demand for the given appliances. The global smart home market
depicted a significant growth at a compound annual rate of 6.9% from 2024 to 2030 and
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is projected to grow beyond $5.18 billion by 2030 from $3.25 billion in the year 2023
((NMSC), 2023).
5. Key Activities
The Key Activities are the important business activities that the business organization need to
undertake for the purpose of executing its business model (Otola , 2020). The activities entail
the ventures business undertake to ensure that there is delivery of value proportion to its
customers in the long run. In XXL Refrigerator, the key activities involve the various
technological innovation, market expansion and consumer engagement practices that ensure
Customer Service
Inventory Management
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suppliers and cooperative entails that can be helpful in the realization of the business model. The
main business partners include technology companies that offer devices to be fit in the
refrigerators, distributors, suppliers and vendors. The possible distributors of the products
include Home Depot, Best Buy, Direct Buy Among others. On the other hand, the major
competitors for the XXL Business Group are LG Electronics, Samsung Electronics Co. Ltd, and
Panasonic Corporation which have constantly focused on establishing innovative products in the
long run.
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allows business to tailor their products or services as well as marketing efforts with the objective
of meeting specific needs of particular segments. In the Smart refrigerator segment, the customer
relationships entail the practice of customer acquisition, customer retention and maintaining
customer loyalty. The main target for Smart refrigerator is the individuals within the ages of 25
and 41 years who resides in the urban areas in Canada. The customers in the particular segment
are grouped as millennials in the Toronto City. The prospects are middle and lower upper class
First Segment Toronto City, Urban Millennials between the Middle class,
compose of Single
Parent families or
children with
household income of
A$40000-A$100000.
Second Segment Toronto City, Urban The segment consists The segment
individuals have
Postgraduate education
income level of
A$60,000-A$120,000
Third Segment Toronto City, Urban The target audience in Middle class,
A$100,000
practice of setting good and services. The revenue streams are categorized based on pricing
mechanism as well as the key channels through a business can generate significant earnings. The
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company can generate earnings from the sale of products, Data Monetization, Online Sales. On
the other hand, the distribution channels for the XXL refrigeration products include offline sales
9. Market Analysis
9.1 SWOT Analysis
Strength: Opportunity:
conservation.
growth
Weakness: Threats:
that a business aim to reach with their unique product or services . The first and second segment
are the targeted customers for XXL product. The shared similarities between the two groups of
prospective buyers are that they are millennials and hence suited for the home improvement
technology.
operations. In this smart refrigerator production, the company my focus on the manufacturing
cost, research and development cost, cost associated with technological integration, operational
costs, marketing and advertisement among others. The initial requirements for the business is
$30,000,000 and will entail a funding model of a debt of $20,345,000 and capital requirements
of $9,655,000.
Capital
Owner 5155
Investors 4500
TotalCapital 9655
Total Funding 30000
Share
1 2000 5% $10,000,000
2 4000 8% $20,000,000
The cost of each unit of refrigerator will be $5000 which amounts to $10 million in the
first year, $20 million in the second year and $25 million in the third year of operations. The first
goal is to launch a marketing campaign about XXL Refrigerator product in the initial month of
the product introduction into the market. The performance measures entail execution of the plane
marketing executions and use customer surveys to determine if the product can command a high
volume of sales in the market. The second goal is to capture 5% of the market share in the first
year and 8% in the subsequent year and 12.5% in the third year.
Net Income'000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Year 1 Year 2 Year 3
The company is projected to have a significant rise in the net income from year 1 to year
3. With the knowledge of the product in the market, the millennials who are the targeted buyers
are more likely to increase the purchase of XXL refrigerator due to the increase in the prevalent
expectation of convenience due to the technology. The Smart product will generate $4.525
Total Assets
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
Year 1 Year 2 Year 3
management of food. However, the new product has a possible danger of Technical
risk. A smart refrigerator features a wide range of technology such as sensor and internet that
ensures that the owners are connected using WIFI and smartphones. It is necessary for technical
system of the smart refrigerators to be highly reliable to ensure that the food management errors
are corrected and avoid the loss of data due to failures in technical aspects. Any technical hitch in
the refrigerator system may result in malfunctioning and function disruptions. Additionally, food
note that the new technology and functions may be unknown to consumers which may affect the
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sales of the product. If the consumers are not offered detailed manuals about the user interface
and interaction design, the unfamiliarity with the new design could deter the acceptance of the
product in the market. If XXL is not accepted in the market, the company may encounter low
12. Conclusion
The rise in technology advancements has facilitated the increase in the need for more
sophisticated technology needs in various areas. On the other hand, refrigerators have been
important part of households in Canada. As a result, XXL Refrigerator offers unique solution to
the challenges when it comes to food storage and management. The refrigerator is different from
edge technology and intuitive design that enhances convenience, efficiency and sustainability in
storage and management of food. The targeted market is millennials and individuals with a
modest income and desire to improve their home technology. The products projected to increase
13. References
(NMSC), N. M. S. C. (2023). Smart furniture market by product type (Smart Tables & Desks,
Smart Stools & benches, Smart Chairs, and Smart Beds), by end use (residential and
analysis and industry forecast, 2024–2030. Smart Furniture Market Size and Share |
instaview-refrigerators-demonstrate-hygiene-innovation-at-ces-2021-894633966.html
Marsh, J. (2023 December 17th). How many watts does a refrigerator use? Energy Use.
https://www.energysage.com/electricity/house-watts/how-many-watts-does-a-
refrigerator-use/
Otola, I. (2020). An insight into the key resources in business models: What we can learn from
18810.
Stasha, S. (2021). An in-depth view into smart home statistics. Retrieved from
https://policyadvice.net/insurance/insights/smart-home-statistics/#:~:text=The%20Most
%20Intriguing%20Smart%20Home%20Industry%20Stats%20and%20Facts&text=By
%202027%2C%20the%20IoT%20market,been%20shipped%20worldwide%20by
%202018
home/canada?currency=CAD&fbclid=IwAR3n1GmrAqi7X-
WbcXSNg9TLCsBehBB0XJ3yD5BFX-BSguVgEll-IJ8_F_o
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Weinstein, A. (2014). Target market selection in B2B technology markets. Journal of Marketing
Analytics, 2, 59-69.