Essay:

Essay details:

  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

Text preview of this essay:

This page is a preview - download the full version of this essay above.

Introduction

Body protection is a priority while doing extreme sports in our society. That is why one year and a half ago, the start-up In&motion started to develop a connected ski air bag vest targeting the professional skiers. The prototype is being tested by almost forty professional skiers and more precisely ski-cross skiers involved in the World Cup process during the ski season 2015/2016. The main purpose of this airbag vest is to protect primary areas of the body which precisely are the spine, the chest and abdomen, the neck and the hips. As we are all aware the new technologies are more and more surrounding us and can be used to create a new type of protection. For that specific reason In&motion decided to put the technology in the service of a defined extreme user with this airbag that has the capacity to analyses the position of the user and is collecting the balance data of the user while the product being used. This airbag in addition to the technology of detection of loss of balance is only being developed for the professional skiers and will be proposed for other extreme sports players. A secondary market can be targeted in the future with this product and a few adaptation of the technology. Indeed, the health care industry could use this product to prevent the bones fracture of elderly people who loose their balance, have their bones that become weaker and break more easily, but at the mean time they still want to stay home even if risks exist.

1.  The Connected Health Care Vest

The Connected Health Care Vest is a derivate product of the initial Smart ski air bag vest of In&motion (Inemotion.com, 2016). This vest combines an airbag connected to a box also included in the vest that detects the loose of balance that will activate the airbag if needed. The real technology in this new product is condense in the box that have the ability to detect, thanks to a specific algorithm, an unavoidable loss of balance and inflates in less than 100 milliseconds so the user got his most sensitive body areas protected before the impact with the ground. In addition to the physical product, the box is constantly connected via Wi-fi or the Internet to an application that collects data and can alert the support person, a family member or the medical team, that the user has felt. In addition, the airbag, with its small compressed gas cartridges that can be changed when it has inflated the airbag, is reusable.

The three technologies of the Connected Health Care Vest are the detection, the protection and the analysis and are summarized in the chart below.

Detection Protection Analysis

With 1000 analysis per second, the system measures every movement to detect a loss of balance of the patient. The protection happens before the patient has any impact with  the ground thanks to the inflation of the airbag in less than 100 milliseconds The data of the patient are collected, analysed and sent to the medical team who is taking care of the patient. With those information, the medical team will have the possibilities to understand the reasons why the patient has a loose of balance or falls.

The benefits of the Connected Health Care Vest for the users that might suffer or not of loss of balance will be the protection of specific areas of their body such as the neck and spine, the chest and abdomen and even the hips. It will also be a solution to reassure the user I his daily life, and at the mean time their families, and give him more autonomy in his displacement and allowing a remote medical monitoring for the medical team who is taking care of the user.

The company In&motion, based in Annecy in France, started to develop, with the sponsorship of the International Ski Federation, this technology for the professional skiers as target market is going to be launched next year. Yet the Smart ski airbag vest is being tested since the beginning of the ski season 2015/2016, forty professional skiers from seven different nations are testing the prototype. So the market covered is the ski industry for professionals and probably in the near future the non professional skiers as the company launch the product for the general public. The co-founders of In&motion also would like to target other extreme sports such as cycling or BMX. In&motion should use the technology they developed and adapt it for the health care industry as it is one of the market that is still growing within the prolonged recession (http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Life-Sciences-Health-Care/gx-lshc-2015-health-care-outlook-global.pdf, 2016).

2.  The elderly health care industry

Population ageing is an important preoccupation in our societies and it is becoming a serious public health problem for the governments and organisations. In fact, according to studies, one elderly person (which means more than 65 years old and living home) out of three falls down in a year (http://www.who.int/ageing/projects/EMRO.pdf, 2016). Those events are frequent and is also the first cause of mortality from traumatism for that same population. At the mean time, studies show that nearly 90 percent of the elderly people over 65 years old zany to stay in their home as long as possible and 80 percent believe their current residence is where they will always live (http://assets.aarp.org/rgcenter/ppi/liv-com/ib190.pdf, 2016).

In the United States of America, each year 2,5 million older people are treated in emergency departments for fall injuries and 700,000 suffer from head injury or hip fracture. In addition, more than 95% of hip fractures are caused buy falling and falls are the first cause of traumatic brain injuries. Despite the physical impact on elderly people, the fall injuries have a direct medical cost that almost reach $34billion per year (Cdc.gov, 2016).

Some falls do not cause any injuries but others do. Both can affect the life of the elderly person who might have difficulties to do their everyday activities, live on their own or simply become afraid of the next fall and its issues if they did not get injured after their first fall. Then the person, because of fear, are less active therefore become physically weaker and increase their risks of falling.

3.   The consumer’s profile

The final consumer profile of the physical part of the Connected Health Care Vest, based on an American study made in 2014, can be represented with the detailed identity card below.

Elderly person using the Connected Health Care Vest are women and men who are aged of 65 years old and over. In 2014, their life expectancy after reaching 65 years old was additional 19.3 years on average, 20.5 years for women and 17.9 for men. In the American population there is about 28% of noninstitutionalised older person who live alone with 70% of women and 30% of men of those 28%. The population over 65 years old is projected to more than double in 2040, which means the number of elderly person living alone will increase if the statistics are right. Moreover, the elderly person wearing the Connected Health Care Vest is suffering of a loose of balance that can be due to their difficulties with walking and balance, the use of some medicines, vision problems or obstacles. And those falls can cause severe injuries such as hips fractures or neck and brain injuries. The elderly person users of the Connected Health Care Vest should be the ones who either wish to continue to live alone in their house without a daily medical assistance even if they suffer of loose of balance or elderly persons who, for instance, love to walk but need to protect themselves in case of fall to prevent any injury (http://www.aoa.acl.gov/aging_statistics/profile/2014/docs/2014-Profile.pdf, 2016).

The users of the data and the alarm of the Connected Health Care Vest will be the support person declared when the elderly person will receive the vest or even the medical team who follows the user. Data will be useful to analyse the frequency and moment of loss of balance and could help to prevent the falls or to diagnose any disease. On the other hand, the alarm alerts the family or medical member that the elderly person felt and so they will be able to act the faster they can to assist the person in need.  

Several users will directly or indirectly use the Connected Health Care Vest and be the final costumers of In&motion as the company will will be a B2B2C economic actor.

4.   Target market and distribution

As a B2B2C economic actor, In&motion will have as final target market will be the costumers that are the elderly people suffering of loose of balance with the age and their business market target will be the existing companies who sell clothes or protections to elderly people. With a business to business to costumer plan, the company In&motion will have partnerships with existing companies and will include their technology in existing products. The final consumers will not have to change their habits regarding the brands they buy. Moreover, as one of the main aim of the Connected Health Care Vest is prevention, In&motion will target health care companies who have the CE accreditation and the ones who have the accreditations of the governmental health organisations.

Regarding the distribution, the Connected Health Care Vest will be distributed through an Internet web site to business partners in the health care industry who will then include the In&motion product in their own products. With this approach, the business costumers will become the distributor of the brand association and so will be more implicated when selling the final product. The web site will be an internet sales platform where the Connected Health Care Vest will be available to order. Despite the existence of the internet sales platform, In&motion will hire sales representatives who will have the responsibility to represent the company to potential clients and will have the possibilities to carry out demonstration of the product to show its real technological capacities and advantages.  

5.  Financials

In&motion is the only one on the market to offer this type of product. Indeed, it has the monopoly of the market and so they can choose the selling price of their products.

According to the company, the Smart Ski Airbag Vest cost €1.200 and it is expected to be sold €600 for the next season to the general public. So In&motion will send the Connected Airbag to business partners around €300 as most of the vest seen on the elderly market cost around €200 and so the final product should cost approximatively €500.

The half of the financial benefits of the Smart Ski Airbag Vest will be re-invested in the company so the Connected Health Care Vest can be developed and launched within one year. Regarding the costs, to produce one unit, the fixed cost and the variable ones have to be considered.

If the revenue is €200, the variable cost per unit sold is €25, the fixed costs are €9000 and if there are 500 units that are sold during the first year, the breakeven will be fixed at 52 units. Moreover, the profit will be positive with €78,500 (Appendix 1).

 

6.  The Business Model Canvas

Key Partners

The Key partners will be the providers of the products needed to manufacture the Connected Health Care airbag. The business partners who will include the airbag in their product dedicated to elderly people will also be key partners as their brand will be associated. Key Activities

The Connected Health Care Vest require a team dedicated to the development of the specific elderly algorithm for the airbag inflation. An app developer will create the application that is going to be used by medical teams. Value Proposition

The value proposition of the Connected Health Care Vest are the detection, the protection and the possible analysis thanks to the data recorded and visible with the application.

The final product will protect the sensitive body areas of elderly people. Customer Relationships

To get costumers, In&motion will show them how the Connected Health Care vest works and what are the benefits of it. Then, In&motion will try to get their product a governmental Health Accreditation. Customer Segments

The creating value are for elderly people who suffer from loss of balance, due to their growing age, and to the ones who want to stay in their current habitation without any help from medical persons in their everyday life.

Key Resources

The actual team of In&motion will need to be completed with two sales representatives for the Health part of the company. Channels

The product will be available thanks to a B2B2C process using an Internet platform for the orders.

Cost Structure

The most important costs inherent will be the manufacturing of the connected airbag and the stock. The most expensive activities will be the marketing of the product as it is a new technology and so In&motion have to convince new business costumers, final costumers and also the institution who will give advice to elderly people to use the final product. Revenue Streams

As there are no such products on the market, final costumers might be willing to pay around €500 especially if it is recommended by their doctors. Moreover, the children of the elderly might have an influence on the purchasing of this specific product as they want their parents to feel comfortable in their current habitation.

Conclusion

The Connected Health Care vest will be the secondary market of In&motion who already developed the product for extreme sports players. Moving to the Heath Care industry will extend the costumer target of the company while using the same but adapted technology as the extreme sports users. To conclude this product will satisfy an existing need form the elderly people but also the heath care industry as the elderly population is growing fast and so is the number of their issues.

...(download the rest of the essay above)

About this essay:

This essay was submitted to us by a student in order to help you with your studies.

If you use part of this page in your own work, you need to provide a citation, as follows:

Essay Sauce, . Available from:< https://www.essaysauce.com/essays/marketing/2016-3-3-1457018820.php > [Accessed 22.10.19].