Question

As a successful entrepreneur in marketing, you are seeking an opportunity to invest in a startup business that may involve the sports industry. You just heard about a new patented product that you feel may be the opportunity you have been seeking. The product (The unique seat) was developed by Shirley and Addison Hayden after they had spend many years dragging chairs and blankets to sporting events and to the beach. The light backpack fits comfortably on the back and contains two seats, a pillow, and blanket. The pieces, held together with Velcro, easily detach from each other and the seats can be set up on a bleacher seat, on the grass, or at the beach. The seats have side connecting straps, a safety strap to connect to a bleacher seat, and can hold up to 300lbs. There are also pockets in the side of the seats to keep hands warm at a late season sporting event. The product sells for $59.49 but costs remain high because of the low production and lack of volume savings. The company is looking for investors to help with marketing and sales.

1.Would you consider investing in this company? Why or why not?

2. What are the potential markets for this product? Which market or markets provide the best opportunity?

3. What would be the major competition for this product?

Answer 1

Case analysis

• Investment opportunity in new start-up in sports industry
• Product is new and patented and as a successful entrepreneur, lots of scope is seen.
• Product developed by Shirley and Addison Hayden is a unique seat.
• Selling price: $59.49. high costs because of low production and lack of volume savings.
• Product features: light back pack, contains two seats, a pillow and blanket, easily detachable as Velcro holds them together and can be setup on bleacher seat, grass and beach. Safety straps and connecting straps are available and holds up-to 300 lbs. side pockets to keep hands warm for late sessions.

Answers

1. Yes, I would consider in investing in this company. As the product is patented and has large scope makes it a good opportunity. With funds proper manufacturing would reduce the cost making the selling price low and increase profits. And number of sporting events happening provides ample scope for the product as it is comforting for the spectators.

2. Potential markets for this product are sporting events having large crowds as viewers, beaching events, camping and trekking individuals, hotels with swimming pools, even common households with swimming pools and garden.

The two markets that provide ample opportunity are beach sporting events and households where they would like to have such a comforting and to the go product.

3. The major competition can be beach benches, sleeping bags as these are the ones used as substitutes for the product.

if you like the answer, please give up-vote. this will be encouraging for me, Thank you.