Dave A Day in the Life Innovation Final

Dave: A Day in the Life

Innovation Final Presentation Jennifer Parker / Matt Latham / Elisabeth Sell

What are hemorrhoids anyway? Definition: -Swollen veins in the anal canal Causes: -Too much pressure Symptoms: -Rectal bleeding, itching, pain, lumps

The Problem The Pain Point Figuratively… Hemorrhoids are embarrassing and nobody wants to talk about them. Literally… They are also physically painful, especially when sitting.

Physical & Psychological Pain

Industry Outlook Product Market Share Pads 8% Other 21% Suppositories 19% Creams 52%

Sample of Over the Counter Products Product Name Product Type Price ($) Preparation H Cream 11. 49 Tucks Pad 7. 99 Metamucil Fiber 16. 49 Balneol Cleansing lotion 15. 18 Hem. Away Seat 59. 95 Sitz Bath Portable bath 10. 99 Rubber Inflatable Cushion Hemspray Cushion 15. 99 Spray 6. 99 Cryo. STAT Coldpack 12. 99 Tucks Suppository 14. 99 Preparation H Wipes 13. 49 Common Features Temporary Relief of Pain and Itching Quick Relief Shrinks Hemorrhoids Protects area

Product Offerings Traditional Alternative

As-Is Strategy Canvas 6 5 4 Cream Pad/Wipes 3 Donut Cushion Suppositories 2 1 0 Pain Relief Protection Side Effects Price Portability Ease of Use Length of Use

Donuts Do you eat them?

Industry Anal-ysis: Hemorrhoid Pillows Manufacturer Body Sport Duro-med Rose K-2 Softeze Carex Product Donut cushion Cushion type Molded foam Cover type Poly/cotton Size 18” round Colors/patterns Blue cover Molded foam and convoluted foam Not given 16 and 18” round Plaid, navy, white $13. 00 covers Donut cushion Ring cushion Hard foam Not given Navy blue cover $20. 70 High density molded foam Convoluted foam Inflatable ring Not given Black cover $22. 99 Not given 16. 25 x 13 $32. 69 None Not given Plaid with tote bag Red rubber Donut cushion Price $15. 75 $13. 22

Porter’s Five Forces (Red Ocean) Threat of entry of new competitors: Intensity of competitive rivalry: Threat of substitutes: Bargaining power of customers: Bargaining power of suppliers: high low high medium

Demographics Major findings of adults who have purchased a hemorrhoid treatment in the past 6 months: 8. 7% of adults Increased likelihood of purchase with increasing age The South has the greatest likelihood of purchasing by a wide margin Those now married constitute 61. 1% of the market Linear correlation between having a lower household income and having a higher likelihood to buy Tend to be heavy TV watchers and light internet users Obesity and poor diets are correlated with having hemorrhoids

Demographics (cont. ) Major findings from looking across frequency usage: 2. 6% are heavy users (5+ uses in the past 30 days) 2. 1% are medium users (2 -4 uses in the past 30 days) 4. 1% are light users (0 -1 use in the past 30 days) Highly educated people tend to be heavy users rather than medium or light People age 65+ are far more likely to be heavy users Men are more likely to be heavy users

Bob’s Solution Turn hemorrhoids into a funny subject instead of an embarrassing one Make a product that is discrete and inclusive Joining the “Dave’s Donut Club” Design a product that is more effective Market a product that is branded and differentiated

Donut Strategy Canvas 6 Pillow and Analogous Products with Dave's Donuts 5 4 Tush Cush 3 Meditation cushions Jay wheelchair pillows 2 Monkey Butt Typical donut pillow 1 Dave's Donuts dy Bo n en ev Pr nf or co of e Us tio in m m hu ia nt re ffe di d an Br g or d te ice Pr ive ct Ef fe co ity al Qu Qu al ity m ns t at ru er ct io ia l n s 0

Indirect Competition: Anal-ogous Products

Anal-ogous Approaches: Humor with Hemorrhoid Products

Anal-ogous Approaches Preparation H

“Pain in the Butt” comedy show “Not everything has to be viewed through this veil of shame. ”

Enzyte & Smilin’ Bob Success: Upon TV advertising: 26, 000 calls in 2001 7. 8 million in 2004 “Iconic” status: 20 facebook pages created not by company Youtube: 128, 352 views for “Santa Bob” ad Featured on Comedy Central in 2008

Product Anal-ysis: SWOT Strengths • Excellent product design • Positive brand Image • Bob’s existing network can open doors Opportunities Weaknesses • Possible high manufacturing costs • Little variety in color and size upon launch • Growing senior population • International expansion • Memorable jingle • Lower-cost manufacturers Threats • Getting ripped off by a copycat

Crossing the Chasm Targeting the Point of Attack High-risk, low-data decision Still undecided Your ideas?

Beachhead: Snowbirds

Assemble the Invasion Force: The Whole Product Solution Warranty Size Options Unwrapping Experience Dave’s Donut Customer Service Travel Bag Color Options Natural Fiber Options

Defining the Battle Positioning Statement: For Snowbird hemorrhoid sufferers who are dissatisfied with creams, suppositories, and wipes, our product is a donut cushion that not only provides relief, but lessens symptoms. Unlike existing donuts, we have assembled a variety of personalizing options for a donut with added comfort, discretion and class.

Launch the Invasion! Product Price Place Promotion

THEME

Product: Design Cotton Batting Difficult to find Difficult to work with Inner Donut Cover Outer Donut Cover

Product Original Launch Colors: • Navy Blue • Maroon • Grey Future Options: • Logo fabric • Patterned fabric

Packaging Everything to reflect quality High class packaging Tissue paper printed with logo

Price Dave’s Donuts: $39. 95 - $49. 95 Current Donut Pillows: $10. 00 - $25. 00 Anal-ogous Products: Dreamtime Pillow $49. 99

Promotion: videos CEO Queen

Distribution: Website

Promotion: Online #1 Option: SEO Facebook Ads Banner Ads The Virtual Tourist Social Media

Promotion: Traditional Radio: NPR, The Prairie Home Companion Print Advertising: Skymall

Promotion: Word of Mouth Bob’s Story

4 P’s : Stare at The Purple Cow “The key to success is to find a way to stand out--to be the purple cow in a field of monochrome Holsteins. ” - Seth Godin

They’re Everywhere!

Covering your Ass: Flanker Brand Easy to bypass the patent with slight design modifications Fanny Friends: the low-cost alternative to Dave’s Donuts Prevents other companies from stealing market share and profits

Dave’s Day in the Life (after)