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PHASE 2
By
Ray Ablao, Paul Gabriel, Phillip Lam, Elliot Mar, and Ariana
Wong
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Athos
Athos is in a thriving industry where the explosion of the Internet of Things
converges with smart fitness wearables. In this space, Athos has distinguished themselves
well ahead of competitors by providing the most innovative and advanced smart wearable
garment that monitors a user’s biometric signals and then converts them into powerful
insights through a mobile app. There were many considerations when brainstorming for the
next iteration of the product, since space allowed for much freedom in design and
innovation. The use of the Product Attribute List gave much insight into our current
product characteristics (Exhibit A). The Competitive Product Analysisgave our team the
ability to compare our product’s attributes against leading rivals (Exhibit B). Lastly, the
Utility Map gave us the ability to view the competitive landscape at a macro-level, providing
us the perspective of our competitive advantages and disadvantages throughout the entire
Buyer Experience (Exhibit C). The application of these three models contributed to and
drove the ideation of new concepts.
Concept Generation/Evaluation
The 3 Concepts that the team generated from the ideation stage were: Athos as a
Platform, Athos APEX, and Athos ACTIVE. Athos Platform utilizes the Addition Method,
expanding the product as a software platform. Features in this concept would be providing
an open API, Android Operating System Support, as well as Software Development Kits for
both the iOS and Android platform. Athos APEX also incorporates the Addition strategy,
extending the coverage of the current shirt and shorts to an entire bodysuit. This allows the
garment to run more sensors and provides the ability to measure the muscle activity of abs,
forearms, and calves in addition to the existing muscle groups. The last concept, Athos
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ACTIVE, uses the Subtraction Method, which reduces the amount of sensors and fabric in
the form of a sleeveless shirt. The criteria that these concepts are judged against are: Time to
Market, Market Penetration, and Risk. Applications of evaluation and screening tools will be
used to select the best product that satisfies the criterion.
The first tool, the Product Radar Chart, exposes the concept feasibility and their
potential risks (Exhibit D1, D2). The Athos Platform concept provides high value in the
areas of Strategic Value, Competitive Sustainability, and Innovation. This concept is crucial
to the company’s future success as Athos has platform-providence. However, the
investments in developing the systems and services to support a platform greatly increases
the company’s Time to Market, Operational Risk, Technical Risk, and Investment Intensity.
The Athos Apex plays upon the company’s Core Competencies and has very low Technical
Risk. The long sleeves, extension of the lower garment, and addition of sensors will not have
much effect to the firm’s current operation and production, but the Customer Value for this
concept isn’t as compelling as the others, due to the price sensitivity of our customer base.
The Athos ACTIVE generates the most Customer and Strategic Value and has the least
amount of Operational and Technical Risks. Leveraging their existing Core Competencies,
Athos can offer a product that has fewer features, the same functionality, and a decreased
price all while reducing the Time to Market and development costs.
In order to evaluate how our 3 product concepts stacked up against each other, we
did multiple RWW tests to vet those ideas (Exhibits F1, F2, F3). We put our products
through the RWW framework and found that addition and subtraction were equally viable
for our target market segments over a software platform given our capabilities. Due to the
price sensitivity of our customers, we opted to go with subtraction. This RWW gave us a
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failure percentage range that allowed us to calculate what our ECV would be given our
success/failure percentage.
We conducted an NPVR analysis using data from a market research report from
Kalorama for the subtraction product in 2 relevant segments; injury
prevention/rehabilitation, and lifestyle/fitness (ExhibitsE1, E2). The injury
prevention/rehab market gave us an NPVR of $3.6B for lifestyle/fitness and $497M for
injury prevention/rehab, prior to risk analysis. We deemed our presence in injury
prevention/rehabilitation to be more substantial, since our current partnerships with
professional sports teams would accurately illustratethat point. The more difficult market to
crack would be the lifestyle/fitness segment, which we addressed by giving an R rating of
72% as opposed to the injury prevention market R of 86%. The risk ratings we thought
accurately reflected the amount of risk that would be present when moving into these
adjacent markets. After NPVR, the injury prevention/rehab segment was valued at $2.6B,
and the lifestyle/fitness segment was valued at $427M for the years 2016-2020.
Given all of these factors, we put our expected commercial value range at $1.8B-
$2.2B for 2016-2020 given a 10% discount rate (Exhibit F4). Each market segment had a
different assumed market penetration percentage to reflect the difficulty of breaking into
each segment. We also assumed that the percentage of each segment would remain the same
in the overall market as the market grew, since there was no data or trend analysis. One
factor that was not taken into account was price sensitivity amongst the three products, as
we assumed that Athos as a company would be able to penetrate the market with any
product they chose given their capabilities. When selecting amongst the three concepts, our
chosen concept itself will have to either be the market leader (~40%) by 2020 in our target
market or pull in $1B in revenue (NPV, non-risk adjusted, non-ECV, single year) by 2020
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given a 10% discount rate in order to be viable. The concept will also need to retain the
same functionality as the current product offering. Out of our three concepts, Athos
ACTIVE best meets the criterion.
Voice of the Customer
The unmet need being addressed by our new product concept is workout
performance metrics by means of a smart garment and phone app all at an affordable price
point. In order to confirm this need, we will conduct 30 one on one interviews for around
45 minutes each in 1 hr. intervals. Our decision is backed up by a study by Griffin and
Hauser, which revealed that this quantity of interviews paired with this specific time length
generated 100% of all needs (Katz). Individual interviews would be the most insightful at
this point in the “Idea Generation” stage as it allows each participant to go off on tangents
and generate a broad list of detailed needs (Katz). In determining which consumers to
include in our study, we will choose interviewees based on whether or not they have an
influence in the decision making process of purchasing the product and whether they come
into contact with the product. Therefore, we will include elite and average athletes, any
retailer/distributor that may be interested in selling the product, and users of competing
products (i.e. Fitbit, Hexoskin, etc). The interviews willbe conducted in a combination of
on-site facilities (i.e. athletic facility)and at a central location (i.e. market research facility).
On-site will allow for observation of the customer actually using the product and will
provide more insight as it pertains to their needs. All interviews will be tape-recorded and
performed face-to-face as to be able to read any facial cues and better understand any
functional usability issues that the user might be facing.
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Our interview guide or VOC questionnaire will allow us to gauge what the needs are
and hone in on those more pertinent needs (Exhibit G). Our VOC questionnaire is focused
on encouraging the participants to share their stories and experiences with the product
(Katz). When necessary, interviewers will ask open-ended, indirect questions in conjunction
with relevant questions on the VOC questionnaire to entice users to go in depth.
After compiling all the respondent’s transcripts, a team of Athos employees from
different functions will extract the needs statements. Shortly thereafter, we will create an
affinity diagram and find customers to aid in the diagramming process so that the needs will
be sorted in a manner consistent with the way a customer uses the product (Katz). Then, a
focus group would be conducted with the affinity diagram participants so they have the
opportunity to vocalize how they organized the needs in that specific manner. Lastly, we will
create a survey so that consumers can rate each need based on importance and satisfaction.
This will allow us to gauge any potential areas of improvement. This market research strategy
will allow us to generate a comprehensive, prioritized list of the customers wants and needs.
Athos ACTIVE
Athos’s mission statement is simply, “To help people train more effectively to reach
their fitness goals”. The current version of the Athos garment offers industry leading smart
performance apparel that monitors a user’s biosignals and presents the data in a meaningful
way. From a competitive standpoint, our Competitive Product Analysis highlights that Athos
is the technology leader in the smart wearable space (Exhibit B). Being the only company in
the entire industry that offers EMG sensors that measures muscle exertion and utilization,
the Athos product retails for $549, a whopping 37.5% more than the next highest priced
competitive product. The current flagship Athos is targeted at a more hardcore audience,
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given its features and price point. Athos’s new product will deliver the same cutting-edge
technology, but packaged with less sensors and at a lower price. Athos is on course in
helping the world train more effectively. The introduction of ACTIVE will allow Athos to
tap into the $2.8 billion market in North America alone (Exhibit E2), allowing Athos to
increase brand awareness.
Based on the Utility Map, Athos has proficiency in the Six Utilities Levers
throughout the Six Stages of the Buyer Experience when compared to leading competitors
(Exhibit C). The company offered a sleek website that had intuitive user interface, an iOS
app that was leaps and bounds better than competition, and utilizes the EMG technology
that not only increases user productivity but also helps decrease the risk of muscle injury.
The only area of improvement for the Athos garment was at the convergence of
Maintenance/Post Purchase Stage and the Simplicity Lever. The Athos shirt and shorts were
hand-wash only, whereas competing garments in this space were machine washable. Athos’s
new product will be redesigned to be machine-washable, ensuring that their product is
superior than competitors in every way, shape, and form.
Applying the Total Product Concept, Athos’s new product line is aligned with the
firm’s Core Product. Utilizing the same great technology found in their flagship line, this
new product simply extends the company’s reach to untapped market segments. The Actual
Product is a sleeveless shirt and short garment set that is lighter, machine washable, while
sporting less sensors. Other services that augment this product are warranty, free-delivery,
customer support, self-service support, and iOS app updates with new features and bug
fixes. Details of the execution of the Athos ACTIVE could be found in the Product
Protocol Exhibit I.
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Concept Testing
In order to gain an accurate assessment of our new concept, we have created a
survey that gauges customer feelings towards pricing, purchasing intentions, and product
diagnostics (Exhibit M). It will allow us to evaluate any product weaknessesthat can be fixed
before the product is launched. Our concept is outlined in the survey; with the new product
being comprised of 6 EMG and 2 HR sensors in the upper body and 8 EMG and 0 HR
sensors in the lower body.
Similar to our market research strategy, we will include a random sample of current
customers of the product, customers of competing products, and in general anyone looking
for a healthy lifestyle. Our concept testing survey will be sent via the Internet or mail, as it is
not necessary to be face to face with a participant. We will also post our survey on Amazon
Mechanical Turk and charge $0.25 per survey to maximize the number of responses attained.
In addition to our survey, we will conduct a choice-based conjoint analysis (Exhibit
H), which will provide us with insights as to how our customers evaluate the product based
on prices and the different muscle groups tracked. Since the current product already has very
few features (i.e. apparel, app, core), we decided that the number of sensors would be the
only attribute that can be altered that would make a difference to the consumer. The
functionalities of the app should remain the same since the products main differentiators are
provided to the customer by the app. The conjoint analysis focuses on those muscle groups
that are most utilized by an average athlete (i.e. runners, triathletes).
Once we have received a substantial quantityof completed surveys including
conjoint analysis surveys, we will analyzethe data compiled by Qualtrics. For instance, we
will compile the responses regarding purchase intent in order to determine what percentage
of customers are most likely to purchase. Our concept testing survey including our conjoint
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analysis questionnaire will reveal customers reactions to the new concept as well as the best
combination of attributes and price.
Product Roadmap
The current target market is aimed at professional athletes or semi professional
extreme sports athlete. At this time, our estimations (Exhibit E2) show our total available
market growing from $3B this year to over $5B in 2020, in North America for injury rehab
and lifestyle fitness segments together. With Athos’s biggest partnership currently being the
Golden State Warriors, selling to the public is something that comes second as a priority as
product development continues to evolve. At this time, the product is available to the public
for purchase through the website, but is not actively marketed by the company with any
substantial investment. As the product roadmap continues to be developed, we see that there
will be two channels that Athos will sell to, with an emphasis on their largest growth market,
the amateur athlete.
Moving into the new go to market strategy, the focus will be in the main consumer
channel of amateur athletes and general health consumers. While Athos must work to get
more penetration with other sports professionals, any new customers or partners that they
find here will be agreed upon as a marketing strategy that they can use to address the larger
pool or the total market. As Athos continues to develop its platform, this type of offering to
professional sports teams can change, especially when they’veachieved a reputation for
product differentiation. The ultimate goal of selling these partnerships into this channel
would be to become the gold standard of professional training wearable technology. In the
long term, gyms and personal trainers as clients would help strengthen the brand image,
Athos’s reputation, and increase brand awareness.
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The main growth area would be with casual to avid athletes who are looking for
more than what they are currently getting with other wearable devices like FitBitand
Jawbone. The offering can start off in a more focused segment, but the idea of building a
platform of products based on the same technology (the sensors) creates a long-term
roadmap for the company to build upon. Ultimately, the plan would be to develop specific
products for marathoners, swimmers, cyclists, and strength trainers, providing each slightly
different but highly relevant data and analytics that the respective users would find useful
and valuable. The benefits that customers would be looking for here would be to get more
analytics around specific performance or progress on projects they are working on. For
example, marathoners would want to track their long distance endurance by getting readings
on muscle utilization in their legs. This type of data is not something that an average amateur
athlete would find useful but would have no way of getting today, and this is the value that
we would be able to push with an entire product line moving into the future. By marketing a
product that is addressing the price sensitivity of the market while capitalizing on new
technology that isn’t available elsewhere, we feel that this would give us the capital we’d need
to continue to develop our product roadmap.
As mentioned, the product roadmap would focus on the core technology first.
Developing a platform that centers around two pieces of technology, sensors and software
systems needed to deliver a robust and user-friendly experience. Most of the upfront R&D
will be on the sensor technology. Then, as we continue to improve our performance, we will
conduct market research to personalize the data and develop the software and application
for it as well. Within the first two years, we’ll be able to focus on building out sport specific
apparel that leverages the power of this platform.
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This project has a 3-month roadmap consisting of designing, testing, and
manufacturing for the first, second, and third month, respectively. A project team of 7
people: 1 PM, 4 engineers, 2 marketers is the resource requirement to bring this project to
fruition. A long-term goal of Athos is to develop a technology platform that consists of an
open API and SDKs to sync other wearable devices to the Athos app. In addition they
should begin developing the app to be compatible with Android devices.
Portfolio, Project, and Platform Planning
The overall strategy for Athos is to be the industry leader by means of penetrating
the global market and strengthening their brand equity. The current product portfolio is
comprised of 1 product line with some product depth: wearable shirts and pants for men
and women, each available in 6 different sizes and the Athos Core. Since Athos currently has
1 million orders on backfill, we believethe next product line will outperform the existing one
mainly because it targets a much larger audience.
To avoid betting all our chips on a single product line, we believe diversifying and
adding to the product mix with a new platform is the answer to mitigate risk. To start we
derived objectives that the new platform must meet in order to have a healthy ROI (Exhibit
K). These objectives align with Athos’s overall strategy, the voice of the customer, and
considers industry trends and risks. The wearable industry has been experiencing steady
growth and will continue to do so as more people become health conscious. This is an
opportunity for Athos to reach a new larger market by providing a solution to an unmet
need.
Value proposition
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For individuals who are seeking or maintaining a healthy lifestyle, ACTIVE provides
users with muscle activity metrics that can be used to increase workout performance and
accelerate recovery. Unlike its competitors, ACTIVE is a lightweight, comfortable and
machine washable garment equipped with cutting edge technology to help you get the most
out of your workout.
The ACTIVE platform essentially uses the same Athos core technology with
additional features such as machine washable and lightweight material. The key differentiator
for the ACTIVE platform and the current product offering is the ACTIVE line will use 38%
less sensors, and therefore, will be offered at a lower price point, 27% less.
After one quarter of ACTIVE being on the market, the portfolio should be assessed
for success and sustainability. Revenueand operating income will be the metric to measure
success and customer feedback will be used to help develop future products. Using the
Merwyn Translation Journal and Feature Benefit chart, we conclude that introducing a more
affordable, lightweight, machine washable garment will meet the needs of active individuals
who will now be able and willing to purchase (Exhibit L). As a result, the addition of the
ACTIVE product line will enhance the performance of Athos’s product portfolio by
reducing risk and facilitating the overall strategy.
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APPENDIX
Exhibit A: Product Attribute List
Athos Core:
● Battery life (10 hr)
● Battery Charge Time
● Impact Resistant
● Water Resistant
Athos App:
● Compatible with iOS
● Only in English
Garment:
● Compression fit
● Ergonomics/Fit
● Comfort
● Style
● Stretchability (4-way stretch)
● Sun Blocking (UPF 50)
● Biomonitoring
● Sweat wicking
● Machine Washable
● Core weighs less than 2g
● Color (Black)
● Impact Protection
● Odor Resistance
● Drying (Machine Dry or Hang Dry?)
● Quick Drying
● Durability (Snagging, easy to tear)
● Water Resistant
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Exhibit B: Competitive Product Analysis
Metrics Competitive Product Analysis
Athos OMSignal Hexoskin UA HealthBox
Price $549 for full body suit + 1
core
$199 for shirt, box, and app $399 for shirt+ 1core $400 for entire healthBox
Product
Package
Shirt, Shorts, and 1EMG
core, mobile app
One shirt, one box, and
mobile app
Shirts (Men’s, Women’s,
Junior’s)
Scale, WristWearable, and
HeartMonitor
Product Claims Improves muscle
asymmetry, balance,
allows athletes to tailor
workoutto suitfitness
goals, prevents injury
Comfortable wearable to
improve fitness through
tracking heart rate, cadence,
distance, and caloric burn
Measures heartrate,
variability, breathing rate,
breathing volume, activity,
and sleep
Allows you to stay healthy,
and live longer.
Target
Consumer
All Athletes concerned
aboutfitness
Fitness enthusiast, and
Runners
Athletes, Health Researchers,
Space Researchers
All people concerned about
health
Brand
Positioning
Fitness and Training Fitness and Training Health and Fitness Health and Fitness
Hardware
Features (what
it measures)
EMG-Measuresmuscle
exertion/utilization by
region, heartrate,
respiration rate, calories
burned, motion,
breathing patterns
Measures vO2, heartrate,
breathing rate, breathing
volume and balance, activity
intensity, calories
ECG-measures heartrate,
respiration rate, VO2 Max,
activity (steps, cadence,
acceleration), calories, sleep
patterns
Measures heartrate, REM
cycle (sleep), steps
# of sensors Shirt- 12 EMG (muscle),
2 heartrate, 2 breathing
Shorts- 8 EMG, 4 heart
rate
Movementsensor, heartrate
sensor, breathing sensor,GPS
3 ECG “cardiac” sensors, 2
breathing sensors, 1
movementsensor
UA Scale: 4, 396 lbs max
UA HeartRate: 1 on skin
UA Band: 1on skin
Fabric Specs UPF 50, compression fit,
4-way stretch weave, flat
stream construction,
warp knit
Machine washable Italian fabric, UV protection,
machine- washable,
lightweight, anti-odor, water
resistant
N/A
Mobile Platform Yes (iOS) iOS Android, iOS Android, iOS
Desktop Web
Platform
No No Yes Yes (MyFitnessPal)
SDK (Software
Development
Kit)
No In Development Yes (iOS/Android) Yes (iOS/Android)
Open API No In Development Yes Yes
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Product Line
Length
1, can be split(justshirt,
or justpants)
1 1 1, 3 if scale, wristband and
heart monitor are counted as
separate
Battery Life 10 hours (Core) 14-16 hours or one full day 14 hours UA Band: 110 mAh (up to 5
days)
UA Scale: 4 x AA
UA HeartRate: 220 mAh (up
to 365 hours)
Citation (“Best Fitness Tracker”) “Under Armour
HealthBox Fitness
Tracking System”
Exhibit C: Buyer Utility Map
Exhibit D1: Product Radar Chart
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Exhibit D2: Product Radar Table
Attribute Concept 1: Athos Platform Concept 2: Athos
Apex
Concept 3: Athos
Active
Customer Value 6 5 8
Strategic Value 8 4 9
Competitive
Sustainability
8 6 7
Innovation 9 5 5
Core Competency 4 10 10
Time to Market 2 7 8
Investment Intensity 10 4 3
Operational Risk 8 3 2
Marketing Risk 3 3 3
Technical Risk 10 2 1
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Exhibit E1: NPVR (inj/rehab segment)
Exhibit E2: NPVR (lifestyle fitness segment)
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Exhibit F1: RWW (subtraction)
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19
Exhibit F2: RWW (addition)
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Exhibit F3: RWW (platform)
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Exhibit F4: ECV (subtraction, addition, platform)
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Exhibit G: VOC Questionnaire
VOC Questionnaire (i.e. Interview Guide)
My name is (name of interviewer) and I’m a part of the Athos team located in Redwood City. First, I want
to thank you for your participation in this study.
Let me start off by explaining our goal in conducting this interview. My team and I are working on creating
a new smart fitness wearable (i.e. fitbit, nike fuel band, etc). We will start off with a series of one-on-one
interviews, each lasting around 45 minutes. Our aim is to learn about your experiences with smart fitness
wearables that you have previously seen or owned. We want to hear about your likes, dislikes, wants, needs
and any improvements that would make the product better and your life easier.
I have created an outline of topics I would like to cover, but feel free to talk about anything that comes to
mind that you think is important to discuss. There are no right or wrong answers.
Any questions before we begin?
1. First tell me a little bit about yourself-- What do you like to do for fun (i.e. hobbies)?
2. Now, tell me about your hobbies, more specifically any fitness-oriented activities you participate in.
3. Tell me about any smart fitness products you use in conjunction with your workout.
4. What does the product look or feel like? What features does it have?
5. What do you like about it and what do you dislike about it? Why?
6. How does it compare to other products you have seen on the market? What makes it better or
worse?
7. Tell me about the best experience you ever had with this smart fitness product, one that helped
you improve your workout. Now tell me about the worse experience you ever had with a fitness
product, one that made your workout experience worse.
8. What are some things you do while working out that this smart fitness product enhances or makes
more difficult? Why is that?
9. What are some of the things that make one smart fitness product more effective than others?
More functional/user-friendly? More insightful? More aesthetically pleasing? More complicated?
Better quality? Is there anything else that would make this smart fitness product more desirable
than another?
10. If you could change one or two things about your smart fitness product, what would they be?
Why would that be better?
11. Is there anything else you would like to share about smart fitness products or is there anything you
thought I was going to ask you about but I didn’t?
Thanks!
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Exhibit H: Conjoint Analysis
Conjoint Analysis
If you were in the market for smart fitness apparel and these were your only alternatives, which would you pick?
(HR- measures heart rate, EMG-measuresmuscle activity)
With this quantity of upper
body sensors...
12 EMG
(Pectoralis Major,
Latissimus Dorsi, Trapezius,
Back Deltoids, Biceps,
triceps)
2HR
6 EMG
(Pectoralis Major,
Latissimus Dorsi,
Trapezius)
2HR
6 EMG
(Pectoralis Major,
Latissimus Dorsi,
Trapezius)
2HR
With this quantity of lower
body sensors...
8 EMG
(Glutes, Hamstring,
Inside/Outside Quadriceps)
HR
8 EMG
(Glutes, Hamstring
Complex, Inside/Outside
Quadriceps)
0 HR
6 EMG
(Glutes, Hamstring
Complex, Quadriceps)
0HR
With this price... $499 $399 $349
Exhibit I: Product Protocol
Target Market Athos’s target market are athletes in the Lifestyle and Fitness
Industry. This our new product, we are reaching out to more
casual or amatuer athletes with a product that the same cutting
edge technology but at a lower price point.
Product Positioning Athos offers high-end smart wearable garment while adapting
industry leading sensor technology (EMG) to help all users be
effective and reach their fitness goals.
Product Attributes The product will provide measurements of the following muscle
groups (pecs, lats, etc..) through EMG technology and must
retail for $400.
The new garments will be machine washable, and lighter weight
than the flagship model with less sensors and textile.
Competitive Comparison Competitors that are making smart wearable garments are
OMSignal and Hexoskin, indirect are UAHealthBox, FitBit,
Jawbone (Exhibit B)
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Augmentation Dimensions The garment will come with a 90 days warranty for both the
sleeveless top and bottom. We will be offering 1 year warranty
on the hardware, which is comprised of the Core, charging
cradle, and USB cable. Customer service support will be offered
via email, while the Self-serve Support will be a web-based
service that will cover Technical/Troubleshooting guides of the
garment, core and app, as well as Frequently Asked Questions.
Athos will continue to uphold quality and usability by releasing
iOS app updates on a monthly cadence with new features and
bug fixes.
Timing Development of the Athos ACTIVE garment will start
immediately will take 3 months to complete. The first batch
should be ready by August 2016 which will benefit from the
Sport Apparel Seasonality of high sales during the months of
September - January. (Exhibt J)
Marketing Requirements The announcement will be made at mobile technology and
fitness conventions such as AppsWorld, Mobile World
Congress, & FitExpo.
● On the Social front, we will focus on the main social
networking platforms of Facebook, Twitter, Pinterest,
and Instagram. We will leverage “Influencers” to use,
review, and champion our products. This byproduct of
this are web blogs, vlogs, tweets, pins and shares.
● Digital Ads will work with technology and fitness
content sites such as Engadget, Re/code, Techcrunch,
Gizmodo, Fit Bottomed Girls, and Nerd Fitness to
release press articles and review articles. Pre-release
products will be sent to these companies for exclusive
review. This will also be accompanied by both mobile
and desktop ads.
● Traditional Print Ads will work with fitness and
technology magazines to showcase our product.
Financial Requirements Development should not cost more than $185,00. Breakeven
point will be accomplished during 3rd quarter of releasing the
product.
Production Requirements ● After the announcement of the go live date, supply rate
should meet the demand rate.
● Garment must pass Quality Standards, without
exceptions
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Regulatory Requirements Regulations will be derived from many sources and will vary
depending on localities and states.
Corporate Strategy
Requirements
We are seeking market penetration of the “Amatuer” market
segment of the Lifestyle and Fitness Industry & sustain our
reputation as the innovation leader in the space.
Potholes The project have potential potholes.
● Risk of low adoption rate
● Risk of manufacturing shortage or surplus
● Risk of not accomplishing break-even point
Exhibit J: Sports Apparel Sales -Market Realist
Exhibit K- Objectives
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Objectives
Leverage current technology
Offer an affordable product
Diversify Risk
Target new market
Strong Marketing Penetration
Increase brand awareness
Exhibit L- Merwyn Translation Journal and Feature Benefit Card
Merwyn Translation Journal
Question Answer
In one sentence what is your innovation? Athos has created affordable lightweight smart
garments that is machine washable that the
consumer market can confidently buy and use.
Technically, what is most exciting about your
innovation?
The garment still captures valuable and usable data
with less sensors
Technically, what is novel and not obvious about
your innovation? For the first time ever it is now
possible to…
To track the behavior of muscle activity during
exercise for specific muscle groups. In addition, a
smart garment with embedded sensors is not
machine washable.
What product/service does your innovation enable
that wasnʼt possible before?
Gives insight into how effective exercises are being
performed by using EMG technology.
What does your innovation enable that will most
frustrate the competition?
The technology is patented by Athos and the
effectiveness of the product with Elite/Professional
athletes.
What are you most proud of? / What have you
spent the most time on?
Reaching economy of scope by reducing
manufacturing cost while producing a high demand
product.
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If appropriate, describe how your innovation
enables GREEN ECONOMY
opportunities? - sustainability, efficiency, recycle,
reuse, etc.
● Makes workouts more efficient
● Garment is machine washable
What is most unique about my innovation is… Provides reliable data with fewer sensors.
Other things that are unique about my innovation
include…
● Machine washable
● Less garment
Why Should I (the customer) care? ● Proven to work
● Affordable
The most exciting overt benefit of my
innovation is…
● Affordable
Final Decision Maker who will find this
benefit most valuable is...
(customer, consumer, buyer)
● Consumer
● Channel Partners
Who would care the most about this overt
benefit…
● Consumer
Obvious Product or Service Name &
Descriptor:
● Fitbit- skin irritation
● UA healthbox - end-to-end
● OMsignal - slow innovation
● Hexoskin- hr monitors
● Jawbone- slow mover
In ONE sentence what does your innovation
provide that is unique versus other options on
the market today?
ACTIVE uses cutting edge technology to help track
muscle activity
Feature Benefit Card
28
Feature F(x) Benefit
Less sensors but same
technology
Machine washable
Less garment/Light weight
Provides accurate readings with
less sensors
Product is affordable and
competitively priced

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Athos Product Concept Generation

  • 1. PHASE 2 By Ray Ablao, Paul Gabriel, Phillip Lam, Elliot Mar, and Ariana Wong
  • 2. 1 Athos Athos is in a thriving industry where the explosion of the Internet of Things converges with smart fitness wearables. In this space, Athos has distinguished themselves well ahead of competitors by providing the most innovative and advanced smart wearable garment that monitors a user’s biometric signals and then converts them into powerful insights through a mobile app. There were many considerations when brainstorming for the next iteration of the product, since space allowed for much freedom in design and innovation. The use of the Product Attribute List gave much insight into our current product characteristics (Exhibit A). The Competitive Product Analysisgave our team the ability to compare our product’s attributes against leading rivals (Exhibit B). Lastly, the Utility Map gave us the ability to view the competitive landscape at a macro-level, providing us the perspective of our competitive advantages and disadvantages throughout the entire Buyer Experience (Exhibit C). The application of these three models contributed to and drove the ideation of new concepts. Concept Generation/Evaluation The 3 Concepts that the team generated from the ideation stage were: Athos as a Platform, Athos APEX, and Athos ACTIVE. Athos Platform utilizes the Addition Method, expanding the product as a software platform. Features in this concept would be providing an open API, Android Operating System Support, as well as Software Development Kits for both the iOS and Android platform. Athos APEX also incorporates the Addition strategy, extending the coverage of the current shirt and shorts to an entire bodysuit. This allows the garment to run more sensors and provides the ability to measure the muscle activity of abs, forearms, and calves in addition to the existing muscle groups. The last concept, Athos
  • 3. 2 ACTIVE, uses the Subtraction Method, which reduces the amount of sensors and fabric in the form of a sleeveless shirt. The criteria that these concepts are judged against are: Time to Market, Market Penetration, and Risk. Applications of evaluation and screening tools will be used to select the best product that satisfies the criterion. The first tool, the Product Radar Chart, exposes the concept feasibility and their potential risks (Exhibit D1, D2). The Athos Platform concept provides high value in the areas of Strategic Value, Competitive Sustainability, and Innovation. This concept is crucial to the company’s future success as Athos has platform-providence. However, the investments in developing the systems and services to support a platform greatly increases the company’s Time to Market, Operational Risk, Technical Risk, and Investment Intensity. The Athos Apex plays upon the company’s Core Competencies and has very low Technical Risk. The long sleeves, extension of the lower garment, and addition of sensors will not have much effect to the firm’s current operation and production, but the Customer Value for this concept isn’t as compelling as the others, due to the price sensitivity of our customer base. The Athos ACTIVE generates the most Customer and Strategic Value and has the least amount of Operational and Technical Risks. Leveraging their existing Core Competencies, Athos can offer a product that has fewer features, the same functionality, and a decreased price all while reducing the Time to Market and development costs. In order to evaluate how our 3 product concepts stacked up against each other, we did multiple RWW tests to vet those ideas (Exhibits F1, F2, F3). We put our products through the RWW framework and found that addition and subtraction were equally viable for our target market segments over a software platform given our capabilities. Due to the price sensitivity of our customers, we opted to go with subtraction. This RWW gave us a
  • 4. 3 failure percentage range that allowed us to calculate what our ECV would be given our success/failure percentage. We conducted an NPVR analysis using data from a market research report from Kalorama for the subtraction product in 2 relevant segments; injury prevention/rehabilitation, and lifestyle/fitness (ExhibitsE1, E2). The injury prevention/rehab market gave us an NPVR of $3.6B for lifestyle/fitness and $497M for injury prevention/rehab, prior to risk analysis. We deemed our presence in injury prevention/rehabilitation to be more substantial, since our current partnerships with professional sports teams would accurately illustratethat point. The more difficult market to crack would be the lifestyle/fitness segment, which we addressed by giving an R rating of 72% as opposed to the injury prevention market R of 86%. The risk ratings we thought accurately reflected the amount of risk that would be present when moving into these adjacent markets. After NPVR, the injury prevention/rehab segment was valued at $2.6B, and the lifestyle/fitness segment was valued at $427M for the years 2016-2020. Given all of these factors, we put our expected commercial value range at $1.8B- $2.2B for 2016-2020 given a 10% discount rate (Exhibit F4). Each market segment had a different assumed market penetration percentage to reflect the difficulty of breaking into each segment. We also assumed that the percentage of each segment would remain the same in the overall market as the market grew, since there was no data or trend analysis. One factor that was not taken into account was price sensitivity amongst the three products, as we assumed that Athos as a company would be able to penetrate the market with any product they chose given their capabilities. When selecting amongst the three concepts, our chosen concept itself will have to either be the market leader (~40%) by 2020 in our target market or pull in $1B in revenue (NPV, non-risk adjusted, non-ECV, single year) by 2020
  • 5. 4 given a 10% discount rate in order to be viable. The concept will also need to retain the same functionality as the current product offering. Out of our three concepts, Athos ACTIVE best meets the criterion. Voice of the Customer The unmet need being addressed by our new product concept is workout performance metrics by means of a smart garment and phone app all at an affordable price point. In order to confirm this need, we will conduct 30 one on one interviews for around 45 minutes each in 1 hr. intervals. Our decision is backed up by a study by Griffin and Hauser, which revealed that this quantity of interviews paired with this specific time length generated 100% of all needs (Katz). Individual interviews would be the most insightful at this point in the “Idea Generation” stage as it allows each participant to go off on tangents and generate a broad list of detailed needs (Katz). In determining which consumers to include in our study, we will choose interviewees based on whether or not they have an influence in the decision making process of purchasing the product and whether they come into contact with the product. Therefore, we will include elite and average athletes, any retailer/distributor that may be interested in selling the product, and users of competing products (i.e. Fitbit, Hexoskin, etc). The interviews willbe conducted in a combination of on-site facilities (i.e. athletic facility)and at a central location (i.e. market research facility). On-site will allow for observation of the customer actually using the product and will provide more insight as it pertains to their needs. All interviews will be tape-recorded and performed face-to-face as to be able to read any facial cues and better understand any functional usability issues that the user might be facing.
  • 6. 5 Our interview guide or VOC questionnaire will allow us to gauge what the needs are and hone in on those more pertinent needs (Exhibit G). Our VOC questionnaire is focused on encouraging the participants to share their stories and experiences with the product (Katz). When necessary, interviewers will ask open-ended, indirect questions in conjunction with relevant questions on the VOC questionnaire to entice users to go in depth. After compiling all the respondent’s transcripts, a team of Athos employees from different functions will extract the needs statements. Shortly thereafter, we will create an affinity diagram and find customers to aid in the diagramming process so that the needs will be sorted in a manner consistent with the way a customer uses the product (Katz). Then, a focus group would be conducted with the affinity diagram participants so they have the opportunity to vocalize how they organized the needs in that specific manner. Lastly, we will create a survey so that consumers can rate each need based on importance and satisfaction. This will allow us to gauge any potential areas of improvement. This market research strategy will allow us to generate a comprehensive, prioritized list of the customers wants and needs. Athos ACTIVE Athos’s mission statement is simply, “To help people train more effectively to reach their fitness goals”. The current version of the Athos garment offers industry leading smart performance apparel that monitors a user’s biosignals and presents the data in a meaningful way. From a competitive standpoint, our Competitive Product Analysis highlights that Athos is the technology leader in the smart wearable space (Exhibit B). Being the only company in the entire industry that offers EMG sensors that measures muscle exertion and utilization, the Athos product retails for $549, a whopping 37.5% more than the next highest priced competitive product. The current flagship Athos is targeted at a more hardcore audience,
  • 7. 6 given its features and price point. Athos’s new product will deliver the same cutting-edge technology, but packaged with less sensors and at a lower price. Athos is on course in helping the world train more effectively. The introduction of ACTIVE will allow Athos to tap into the $2.8 billion market in North America alone (Exhibit E2), allowing Athos to increase brand awareness. Based on the Utility Map, Athos has proficiency in the Six Utilities Levers throughout the Six Stages of the Buyer Experience when compared to leading competitors (Exhibit C). The company offered a sleek website that had intuitive user interface, an iOS app that was leaps and bounds better than competition, and utilizes the EMG technology that not only increases user productivity but also helps decrease the risk of muscle injury. The only area of improvement for the Athos garment was at the convergence of Maintenance/Post Purchase Stage and the Simplicity Lever. The Athos shirt and shorts were hand-wash only, whereas competing garments in this space were machine washable. Athos’s new product will be redesigned to be machine-washable, ensuring that their product is superior than competitors in every way, shape, and form. Applying the Total Product Concept, Athos’s new product line is aligned with the firm’s Core Product. Utilizing the same great technology found in their flagship line, this new product simply extends the company’s reach to untapped market segments. The Actual Product is a sleeveless shirt and short garment set that is lighter, machine washable, while sporting less sensors. Other services that augment this product are warranty, free-delivery, customer support, self-service support, and iOS app updates with new features and bug fixes. Details of the execution of the Athos ACTIVE could be found in the Product Protocol Exhibit I.
  • 8. 7 Concept Testing In order to gain an accurate assessment of our new concept, we have created a survey that gauges customer feelings towards pricing, purchasing intentions, and product diagnostics (Exhibit M). It will allow us to evaluate any product weaknessesthat can be fixed before the product is launched. Our concept is outlined in the survey; with the new product being comprised of 6 EMG and 2 HR sensors in the upper body and 8 EMG and 0 HR sensors in the lower body. Similar to our market research strategy, we will include a random sample of current customers of the product, customers of competing products, and in general anyone looking for a healthy lifestyle. Our concept testing survey will be sent via the Internet or mail, as it is not necessary to be face to face with a participant. We will also post our survey on Amazon Mechanical Turk and charge $0.25 per survey to maximize the number of responses attained. In addition to our survey, we will conduct a choice-based conjoint analysis (Exhibit H), which will provide us with insights as to how our customers evaluate the product based on prices and the different muscle groups tracked. Since the current product already has very few features (i.e. apparel, app, core), we decided that the number of sensors would be the only attribute that can be altered that would make a difference to the consumer. The functionalities of the app should remain the same since the products main differentiators are provided to the customer by the app. The conjoint analysis focuses on those muscle groups that are most utilized by an average athlete (i.e. runners, triathletes). Once we have received a substantial quantityof completed surveys including conjoint analysis surveys, we will analyzethe data compiled by Qualtrics. For instance, we will compile the responses regarding purchase intent in order to determine what percentage of customers are most likely to purchase. Our concept testing survey including our conjoint
  • 9. 8 analysis questionnaire will reveal customers reactions to the new concept as well as the best combination of attributes and price. Product Roadmap The current target market is aimed at professional athletes or semi professional extreme sports athlete. At this time, our estimations (Exhibit E2) show our total available market growing from $3B this year to over $5B in 2020, in North America for injury rehab and lifestyle fitness segments together. With Athos’s biggest partnership currently being the Golden State Warriors, selling to the public is something that comes second as a priority as product development continues to evolve. At this time, the product is available to the public for purchase through the website, but is not actively marketed by the company with any substantial investment. As the product roadmap continues to be developed, we see that there will be two channels that Athos will sell to, with an emphasis on their largest growth market, the amateur athlete. Moving into the new go to market strategy, the focus will be in the main consumer channel of amateur athletes and general health consumers. While Athos must work to get more penetration with other sports professionals, any new customers or partners that they find here will be agreed upon as a marketing strategy that they can use to address the larger pool or the total market. As Athos continues to develop its platform, this type of offering to professional sports teams can change, especially when they’veachieved a reputation for product differentiation. The ultimate goal of selling these partnerships into this channel would be to become the gold standard of professional training wearable technology. In the long term, gyms and personal trainers as clients would help strengthen the brand image, Athos’s reputation, and increase brand awareness.
  • 10. 9 The main growth area would be with casual to avid athletes who are looking for more than what they are currently getting with other wearable devices like FitBitand Jawbone. The offering can start off in a more focused segment, but the idea of building a platform of products based on the same technology (the sensors) creates a long-term roadmap for the company to build upon. Ultimately, the plan would be to develop specific products for marathoners, swimmers, cyclists, and strength trainers, providing each slightly different but highly relevant data and analytics that the respective users would find useful and valuable. The benefits that customers would be looking for here would be to get more analytics around specific performance or progress on projects they are working on. For example, marathoners would want to track their long distance endurance by getting readings on muscle utilization in their legs. This type of data is not something that an average amateur athlete would find useful but would have no way of getting today, and this is the value that we would be able to push with an entire product line moving into the future. By marketing a product that is addressing the price sensitivity of the market while capitalizing on new technology that isn’t available elsewhere, we feel that this would give us the capital we’d need to continue to develop our product roadmap. As mentioned, the product roadmap would focus on the core technology first. Developing a platform that centers around two pieces of technology, sensors and software systems needed to deliver a robust and user-friendly experience. Most of the upfront R&D will be on the sensor technology. Then, as we continue to improve our performance, we will conduct market research to personalize the data and develop the software and application for it as well. Within the first two years, we’ll be able to focus on building out sport specific apparel that leverages the power of this platform.
  • 11. 10 This project has a 3-month roadmap consisting of designing, testing, and manufacturing for the first, second, and third month, respectively. A project team of 7 people: 1 PM, 4 engineers, 2 marketers is the resource requirement to bring this project to fruition. A long-term goal of Athos is to develop a technology platform that consists of an open API and SDKs to sync other wearable devices to the Athos app. In addition they should begin developing the app to be compatible with Android devices. Portfolio, Project, and Platform Planning The overall strategy for Athos is to be the industry leader by means of penetrating the global market and strengthening their brand equity. The current product portfolio is comprised of 1 product line with some product depth: wearable shirts and pants for men and women, each available in 6 different sizes and the Athos Core. Since Athos currently has 1 million orders on backfill, we believethe next product line will outperform the existing one mainly because it targets a much larger audience. To avoid betting all our chips on a single product line, we believe diversifying and adding to the product mix with a new platform is the answer to mitigate risk. To start we derived objectives that the new platform must meet in order to have a healthy ROI (Exhibit K). These objectives align with Athos’s overall strategy, the voice of the customer, and considers industry trends and risks. The wearable industry has been experiencing steady growth and will continue to do so as more people become health conscious. This is an opportunity for Athos to reach a new larger market by providing a solution to an unmet need. Value proposition
  • 12. 11 For individuals who are seeking or maintaining a healthy lifestyle, ACTIVE provides users with muscle activity metrics that can be used to increase workout performance and accelerate recovery. Unlike its competitors, ACTIVE is a lightweight, comfortable and machine washable garment equipped with cutting edge technology to help you get the most out of your workout. The ACTIVE platform essentially uses the same Athos core technology with additional features such as machine washable and lightweight material. The key differentiator for the ACTIVE platform and the current product offering is the ACTIVE line will use 38% less sensors, and therefore, will be offered at a lower price point, 27% less. After one quarter of ACTIVE being on the market, the portfolio should be assessed for success and sustainability. Revenueand operating income will be the metric to measure success and customer feedback will be used to help develop future products. Using the Merwyn Translation Journal and Feature Benefit chart, we conclude that introducing a more affordable, lightweight, machine washable garment will meet the needs of active individuals who will now be able and willing to purchase (Exhibit L). As a result, the addition of the ACTIVE product line will enhance the performance of Athos’s product portfolio by reducing risk and facilitating the overall strategy.
  • 13. 12 APPENDIX Exhibit A: Product Attribute List Athos Core: ● Battery life (10 hr) ● Battery Charge Time ● Impact Resistant ● Water Resistant Athos App: ● Compatible with iOS ● Only in English Garment: ● Compression fit ● Ergonomics/Fit ● Comfort ● Style ● Stretchability (4-way stretch) ● Sun Blocking (UPF 50) ● Biomonitoring ● Sweat wicking ● Machine Washable ● Core weighs less than 2g ● Color (Black) ● Impact Protection ● Odor Resistance ● Drying (Machine Dry or Hang Dry?) ● Quick Drying ● Durability (Snagging, easy to tear) ● Water Resistant
  • 14. 13 Exhibit B: Competitive Product Analysis Metrics Competitive Product Analysis Athos OMSignal Hexoskin UA HealthBox Price $549 for full body suit + 1 core $199 for shirt, box, and app $399 for shirt+ 1core $400 for entire healthBox Product Package Shirt, Shorts, and 1EMG core, mobile app One shirt, one box, and mobile app Shirts (Men’s, Women’s, Junior’s) Scale, WristWearable, and HeartMonitor Product Claims Improves muscle asymmetry, balance, allows athletes to tailor workoutto suitfitness goals, prevents injury Comfortable wearable to improve fitness through tracking heart rate, cadence, distance, and caloric burn Measures heartrate, variability, breathing rate, breathing volume, activity, and sleep Allows you to stay healthy, and live longer. Target Consumer All Athletes concerned aboutfitness Fitness enthusiast, and Runners Athletes, Health Researchers, Space Researchers All people concerned about health Brand Positioning Fitness and Training Fitness and Training Health and Fitness Health and Fitness Hardware Features (what it measures) EMG-Measuresmuscle exertion/utilization by region, heartrate, respiration rate, calories burned, motion, breathing patterns Measures vO2, heartrate, breathing rate, breathing volume and balance, activity intensity, calories ECG-measures heartrate, respiration rate, VO2 Max, activity (steps, cadence, acceleration), calories, sleep patterns Measures heartrate, REM cycle (sleep), steps # of sensors Shirt- 12 EMG (muscle), 2 heartrate, 2 breathing Shorts- 8 EMG, 4 heart rate Movementsensor, heartrate sensor, breathing sensor,GPS 3 ECG “cardiac” sensors, 2 breathing sensors, 1 movementsensor UA Scale: 4, 396 lbs max UA HeartRate: 1 on skin UA Band: 1on skin Fabric Specs UPF 50, compression fit, 4-way stretch weave, flat stream construction, warp knit Machine washable Italian fabric, UV protection, machine- washable, lightweight, anti-odor, water resistant N/A Mobile Platform Yes (iOS) iOS Android, iOS Android, iOS Desktop Web Platform No No Yes Yes (MyFitnessPal) SDK (Software Development Kit) No In Development Yes (iOS/Android) Yes (iOS/Android) Open API No In Development Yes Yes
  • 15. 14 Product Line Length 1, can be split(justshirt, or justpants) 1 1 1, 3 if scale, wristband and heart monitor are counted as separate Battery Life 10 hours (Core) 14-16 hours or one full day 14 hours UA Band: 110 mAh (up to 5 days) UA Scale: 4 x AA UA HeartRate: 220 mAh (up to 365 hours) Citation (“Best Fitness Tracker”) “Under Armour HealthBox Fitness Tracking System” Exhibit C: Buyer Utility Map Exhibit D1: Product Radar Chart
  • 16. 15 Exhibit D2: Product Radar Table Attribute Concept 1: Athos Platform Concept 2: Athos Apex Concept 3: Athos Active Customer Value 6 5 8 Strategic Value 8 4 9 Competitive Sustainability 8 6 7 Innovation 9 5 5 Core Competency 4 10 10 Time to Market 2 7 8 Investment Intensity 10 4 3 Operational Risk 8 3 2 Marketing Risk 3 3 3 Technical Risk 10 2 1
  • 17. 16 Exhibit E1: NPVR (inj/rehab segment) Exhibit E2: NPVR (lifestyle fitness segment)
  • 18. 17 Exhibit F1: RWW (subtraction)
  • 19. 18
  • 20. 19 Exhibit F2: RWW (addition)
  • 21. 20 Exhibit F3: RWW (platform)
  • 22. 21 Exhibit F4: ECV (subtraction, addition, platform)
  • 23. 22 Exhibit G: VOC Questionnaire VOC Questionnaire (i.e. Interview Guide) My name is (name of interviewer) and I’m a part of the Athos team located in Redwood City. First, I want to thank you for your participation in this study. Let me start off by explaining our goal in conducting this interview. My team and I are working on creating a new smart fitness wearable (i.e. fitbit, nike fuel band, etc). We will start off with a series of one-on-one interviews, each lasting around 45 minutes. Our aim is to learn about your experiences with smart fitness wearables that you have previously seen or owned. We want to hear about your likes, dislikes, wants, needs and any improvements that would make the product better and your life easier. I have created an outline of topics I would like to cover, but feel free to talk about anything that comes to mind that you think is important to discuss. There are no right or wrong answers. Any questions before we begin? 1. First tell me a little bit about yourself-- What do you like to do for fun (i.e. hobbies)? 2. Now, tell me about your hobbies, more specifically any fitness-oriented activities you participate in. 3. Tell me about any smart fitness products you use in conjunction with your workout. 4. What does the product look or feel like? What features does it have? 5. What do you like about it and what do you dislike about it? Why? 6. How does it compare to other products you have seen on the market? What makes it better or worse? 7. Tell me about the best experience you ever had with this smart fitness product, one that helped you improve your workout. Now tell me about the worse experience you ever had with a fitness product, one that made your workout experience worse. 8. What are some things you do while working out that this smart fitness product enhances or makes more difficult? Why is that? 9. What are some of the things that make one smart fitness product more effective than others? More functional/user-friendly? More insightful? More aesthetically pleasing? More complicated? Better quality? Is there anything else that would make this smart fitness product more desirable than another? 10. If you could change one or two things about your smart fitness product, what would they be? Why would that be better? 11. Is there anything else you would like to share about smart fitness products or is there anything you thought I was going to ask you about but I didn’t? Thanks!
  • 24. 23 Exhibit H: Conjoint Analysis Conjoint Analysis If you were in the market for smart fitness apparel and these were your only alternatives, which would you pick? (HR- measures heart rate, EMG-measuresmuscle activity) With this quantity of upper body sensors... 12 EMG (Pectoralis Major, Latissimus Dorsi, Trapezius, Back Deltoids, Biceps, triceps) 2HR 6 EMG (Pectoralis Major, Latissimus Dorsi, Trapezius) 2HR 6 EMG (Pectoralis Major, Latissimus Dorsi, Trapezius) 2HR With this quantity of lower body sensors... 8 EMG (Glutes, Hamstring, Inside/Outside Quadriceps) HR 8 EMG (Glutes, Hamstring Complex, Inside/Outside Quadriceps) 0 HR 6 EMG (Glutes, Hamstring Complex, Quadriceps) 0HR With this price... $499 $399 $349 Exhibit I: Product Protocol Target Market Athos’s target market are athletes in the Lifestyle and Fitness Industry. This our new product, we are reaching out to more casual or amatuer athletes with a product that the same cutting edge technology but at a lower price point. Product Positioning Athos offers high-end smart wearable garment while adapting industry leading sensor technology (EMG) to help all users be effective and reach their fitness goals. Product Attributes The product will provide measurements of the following muscle groups (pecs, lats, etc..) through EMG technology and must retail for $400. The new garments will be machine washable, and lighter weight than the flagship model with less sensors and textile. Competitive Comparison Competitors that are making smart wearable garments are OMSignal and Hexoskin, indirect are UAHealthBox, FitBit, Jawbone (Exhibit B)
  • 25. 24 Augmentation Dimensions The garment will come with a 90 days warranty for both the sleeveless top and bottom. We will be offering 1 year warranty on the hardware, which is comprised of the Core, charging cradle, and USB cable. Customer service support will be offered via email, while the Self-serve Support will be a web-based service that will cover Technical/Troubleshooting guides of the garment, core and app, as well as Frequently Asked Questions. Athos will continue to uphold quality and usability by releasing iOS app updates on a monthly cadence with new features and bug fixes. Timing Development of the Athos ACTIVE garment will start immediately will take 3 months to complete. The first batch should be ready by August 2016 which will benefit from the Sport Apparel Seasonality of high sales during the months of September - January. (Exhibt J) Marketing Requirements The announcement will be made at mobile technology and fitness conventions such as AppsWorld, Mobile World Congress, & FitExpo. ● On the Social front, we will focus on the main social networking platforms of Facebook, Twitter, Pinterest, and Instagram. We will leverage “Influencers” to use, review, and champion our products. This byproduct of this are web blogs, vlogs, tweets, pins and shares. ● Digital Ads will work with technology and fitness content sites such as Engadget, Re/code, Techcrunch, Gizmodo, Fit Bottomed Girls, and Nerd Fitness to release press articles and review articles. Pre-release products will be sent to these companies for exclusive review. This will also be accompanied by both mobile and desktop ads. ● Traditional Print Ads will work with fitness and technology magazines to showcase our product. Financial Requirements Development should not cost more than $185,00. Breakeven point will be accomplished during 3rd quarter of releasing the product. Production Requirements ● After the announcement of the go live date, supply rate should meet the demand rate. ● Garment must pass Quality Standards, without exceptions
  • 26. 25 Regulatory Requirements Regulations will be derived from many sources and will vary depending on localities and states. Corporate Strategy Requirements We are seeking market penetration of the “Amatuer” market segment of the Lifestyle and Fitness Industry & sustain our reputation as the innovation leader in the space. Potholes The project have potential potholes. ● Risk of low adoption rate ● Risk of manufacturing shortage or surplus ● Risk of not accomplishing break-even point Exhibit J: Sports Apparel Sales -Market Realist Exhibit K- Objectives
  • 27. 26 Objectives Leverage current technology Offer an affordable product Diversify Risk Target new market Strong Marketing Penetration Increase brand awareness Exhibit L- Merwyn Translation Journal and Feature Benefit Card Merwyn Translation Journal Question Answer In one sentence what is your innovation? Athos has created affordable lightweight smart garments that is machine washable that the consumer market can confidently buy and use. Technically, what is most exciting about your innovation? The garment still captures valuable and usable data with less sensors Technically, what is novel and not obvious about your innovation? For the first time ever it is now possible to… To track the behavior of muscle activity during exercise for specific muscle groups. In addition, a smart garment with embedded sensors is not machine washable. What product/service does your innovation enable that wasnʼt possible before? Gives insight into how effective exercises are being performed by using EMG technology. What does your innovation enable that will most frustrate the competition? The technology is patented by Athos and the effectiveness of the product with Elite/Professional athletes. What are you most proud of? / What have you spent the most time on? Reaching economy of scope by reducing manufacturing cost while producing a high demand product.
  • 28. 27 If appropriate, describe how your innovation enables GREEN ECONOMY opportunities? - sustainability, efficiency, recycle, reuse, etc. ● Makes workouts more efficient ● Garment is machine washable What is most unique about my innovation is… Provides reliable data with fewer sensors. Other things that are unique about my innovation include… ● Machine washable ● Less garment Why Should I (the customer) care? ● Proven to work ● Affordable The most exciting overt benefit of my innovation is… ● Affordable Final Decision Maker who will find this benefit most valuable is... (customer, consumer, buyer) ● Consumer ● Channel Partners Who would care the most about this overt benefit… ● Consumer Obvious Product or Service Name & Descriptor: ● Fitbit- skin irritation ● UA healthbox - end-to-end ● OMsignal - slow innovation ● Hexoskin- hr monitors ● Jawbone- slow mover In ONE sentence what does your innovation provide that is unique versus other options on the market today? ACTIVE uses cutting edge technology to help track muscle activity Feature Benefit Card
  • 29. 28 Feature F(x) Benefit Less sensors but same technology Machine washable Less garment/Light weight Provides accurate readings with less sensors Product is affordable and competitively priced