Developing Countries
- Reduces over-crowding on roadways as is often seen in many developing countries
- Volume can meet high consumer demand for solution
- More eco-friendly than automobiles, pollution is not a concern with Segway
- Potential solution for personal transportation needs in developing countries
- where to find the material & energy resources to meet the demand for automobiles, roads, and vehicle storage
- "most people in the developing world can't afford cars, and if they could, it a complete disaster"
How is it Innovative?
- First of its kind design
- A clean, green machine (no gas, battery charging)
What is a Segway?
- Dean Kamen-inventor and founder of DEKA
- Manufactured in February of 2001
- Battery operated scooter-like personal transporter
- Body weight and movement assumes control through a gyro-stabilized balancing system
- Time Efficient - Travel short or moderate distances in less time than walking
- Multi-purpose use - Can navigate through various terrains
- User-friendly
- Energy efficient, pro-green, and fun
Made to Specification
Critical Issues
- Could not etch an identity between cars and bicycles, additional cost of adding Segway lanes to streets
- No prior market data and defined target market
- Lack of regulation and state legislation
- Made to handle harder terrains at higher speeds
- Equipped with remote-technology in order to gather surveillance data, environmental analysis, etc.
Do you think Kamen should move forward with the Segway HT?
- Can be specifically customized in an MTO- Pull method for markets such as the military and handicapped consumers
- Segway was a product, not a solution - too disruptive and a high risk of failure
- Unreasonably high expectations were set
- Begin by specifically targeting Made-to-specification markets and Commercial/Industrial markets
- Transition into selling to regular consumer markets
Commercial Uses
- Police and tour operators
- Low purchase and maintenance cost compared to motor vehicle
- Ergonomic benefits for workers who carry load over distance
- Benefit for the people who have to carry more in the day like: supplies in industrial plan, parcel, mail etc.
What should Kamen's priorities be over the next 12 months?
Personal Mobility
Consumer Research
Next Steps
Promotional Plan
Action Plan
- Need to bring in Voice of the Customer early
- Consumer Research- surveys and interviews
- Convenience and efficiency for consumers traveling local distances
- Reduce transportation costs and serve as a more energy-efficient alternative
- This market was targeted because there was a visible need for consumers, primarily in urban city locations, to have an easy-to-use form of transportation between using a car and walking that didn’t get in the way of general pedestrian traffic.
- Work on establishing proper regulations so that Segway’s use and purpose is properly identified besides “a luxury toy”
- Offer a 10 year warranty
- Online tutorial provided
- Work with local authorities in a controlled test market to establish proper regulation
- Use these results to build foundations
- Focused groups: Get customer feedback through focused groups and conduct tests in order to get a better understanding of customers needs
Pricing Strategy
- Use results to build the foundation for a general regulation to be passed in terms of using the Segway
- Look into offering free training videos along with product or online
- Work with suppliers through methods such as reverse auctioning in order to have parts supplied and manufactured for less cost
Targeted Markets
- Work on a procurement strategy with suppliers and manufacturers to lower the cost so it is more accessible to regular consumers when they become a more intensive target market
- Look into substitute components in order to produce the product for less money to be able to sell it to consumers for less money
- Conduct primary research such as surveys and interviews in major urban areas and cities in order to determine what percentage of people walk medium-to-long distances that Segway would be applicable for
- Work with local authorities in a controlled test market to establish proper regulations and collect consumer data based on feedback
Agenda
- What is Segway?
- How is it Innovative?
- Targeted Markets
- Critical Issues
- Should Kamen Move Forward?
- 12 Month Scope
Segway Human Transporter
Parth Patel, Hector Mendoza, Urmi Karambelkar, Bansri Shah, Fariha Chowdhury, Eeshanee Dixit
Based on Jim Harvey's speech structures