Microfridge

Group 3

Syed Ali

Austin Opfer

Yi Ding

Qian Huang

MicroFridge: The Concept

I. Key/Major Problem

A. The lack of quality and reliability of the product

II. Evidence/Support of Marketing Issue

A. Lack of experience within the industry

• The reliability of the product is uncertain.

• The switching device idea has never been used before so possible customers are not sure how reliable the device will be when implemented.

B. Product can be easily imitated

C. No more college meal plans

If invested in dormitories, colleges fear that many students will get rid of their meal plans.

D. Safety Issues

• College authorities are reluctant to install the new product in dormitories due to the hazard and safety standards that colleges have in place.

E. Lack of support from companies

• Companies like General Electric, Amana and other big domestic appliance manufacturers refuse to support this idea because they think it owns just a small market prospect and is worth little investment.

• Companies believe it is a business with inherently low margins and relatively high cash flow risks.

• Risk is greater than the return.

III. Recommendations

A. Focus on college dormitories as target market/trial process

• With 90% of students surveyed at Massachusetts in favor of adding just $50 to dorm rates per year in order to have a MicroFridge, this is a major market for the product.

• Use a trial process

• By implementing this product in dorms for a trial period (say a year), it would help persuade administration that this is sustainable for the future.

• By persuading administration and being successful, not only will quality and reliability of the product increase (due to perception), but opportunities will significantly arise elsewhere and price will positively be affected.

IV. Financial Analysis

A. Estimation of a dormitory that holds 2,000 students

At $75 of increased dorm rates:

2,000 x $75 per year = $150,000 in increased revenue per year

At $50 of...