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Memorandum

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Submitted By ipek91
Words 1720
Pages 7
Memorandum

To: Adrian Lewis
From: Student Group
Subject: New product, “iFridge”
Date: 27.02.2014

To respond to your request here is our proposal for the new innovation of The X Company. We are pleased to present you The iFridge. The iFridge is a high technology product that aims to ease the daily life in kitchen. It is basically a fridge with a touchscreen at first sight. But it’s software, lights, properties of the touchscreen and integrated voice activation makes it a lot more than just a fridge with a computer.

The iFridge’s main goal is to design a worry-free and cost efficient kitchen life. With The iFridge you will no longer have to think of what should you buy while shopping, or what to cook when you get home. Even when you are picking something from the fridge you will not think where did you put is last time. With The iFridge you don’t have to think of mundane things like groceries or cooking anymore. The iFridge thinks about the mundane things for you and leaves more time for your creative thoughts.

Features

The iFridge consists exterior cabinet and three doors, inner cabinet, insulation inserted between them, cooling system, refrigerant and fixtures. The cabinet and doors are made of aluminum and steel. At front door, iFridge has ice maker and an iPad but these do not narrow the interior part of the fridge. Height and width of the fridge is pretty much standard but unlike the other fridges, iFridge has 25% more shelf place. Shelves are made of unbreakable glass and are also removable to make the cleaning process easier.

The touch screen uses traditional yet specially developed IOS software for iFridge. The screen is almost the same size as an iPad (which is 9.5 inches high and 7.31 inches wide). There are three different color options for the frame of the touch screen; red, black and silver. Also, it comes with a built in screen protector to prevent scratches, fingerprints and smudges.

The iFridge has a state of the art speech recognition software which will provide voice activation. The software is installed in the iPad and can be activated at all times. Software includes different language options, continuous speech and hands free features.

The lighting system is mounted to the top of each rack and also the inside of the door. So every section of products are lighted separately. This system has standard sockets therefore; in such a case about deformation, it is easy to change the light and having the same quality back.

Functions

Software and applications

The main functions of the iFridge is based on its apps. Two apps that are specially designed for the iFridge by company developers makes it “The Fridge from the Future”. Other apps that are designed by third party developers can be found in the App Store.

Stock app keeps record of the products inside the fridge in coordination with the voice activation system. All the user has to do is to say what they are putting in the fridge out loud and the Stock app will automatically record it inside the stocks. It will notify the user when a product is about to run out or about to expire, since it can also record when the expiration date is. Even if a product doesn’t have an expiration date, Stock app goes through the internet and calculates the average expiration date of that product and warns the user when the product is about to expire. Also with the help of the cloud system the stocks are accessible from you iPhone. This helps you to pick up groceries without the doubt of forgetting something.

The iCook app is a simple app that can be very helpful in everyday kitchen life. It simply checks the Stock app and tells the user what can they cook with that specific ingredients. The user can even select the range of the menu. The iFridge can suggest only entry, only main course, only dessert or all together.

Voice activation

Speech recognition software recognizes voices anywhere in the kitchen so that people do not need to go nearby the product to use the voice activation feature. Different than other products, this software has “hands free” option to start and resume the speech without touching any button. Also continuous speech function makes it easy to speak continuously without pausing between words. Different language options include 50 different languages which will provide our product a wide marketing range, including Europe and Asia. This feature also may be updated with new languages spoken in possible markets. Ease of using the software will provide time saving which is the most important concern of people nowadays.

Touch screen

iFridge uses the latest technology to prevent any damage that can be caused by the motion in other sensitive touchscreens. With its multi-layered structure and liquid resistive touch technology, it is as sturdy as it is convenient. The touch screen has one button; which is the same as the iPad’s home button, for controlling and navigating through applications. The lack of sleep button will be hard to get used to for sure but the users will promptly get used to the double click the home button in order to go to sleep concept.

Lightening

This smart refrigerator has a unique aim which is to make life easier for users. While reaching this aim, the environment and being eco-friendly should also be considered. So our company tried to do the best both for the people and for the environment. The new feature that we’ve improved is the lighting system. The functioning process of the system is quite simple. For instance if you want to make an omelet and you need 3 eggs, the only thing that you should do is; using the voice activation feature and indicate that you need 3 eggs from the fridge to the system. When you open the fridge only that rack which stocks the eggs will be lit. Therefore, it will be easy to find what you are looking for and also the electricity won’t be wasted by lightening unnecessary shelves.

Benefits for the company

* Provides profit * Reputation both in kitchen appliances and technology sectors * Provides leading role in smart appliances sector

Benefits for the users

* Makes life easier * Saves energy * Helps saving time
Benefits for the manufacturer

* Increases manufacturer’s reputation * Gives the advantage of being the leading manufacturer of this innovative product * Offers the manufacturer to be one step ahead from the other competitors

Overcoming challenges

There are 2 challenges that we can face, but we think both are manageable:

Competing Undertaking

Since similar products to this product is produced by other companies, entering this market will be a challenge for our company. Target consumers are not accustomed to this kind of products and introducing our smart fridge to the market may cost us more than our pre-calculations because of the possible advertisement costs. However, our product has new functions like lighting system and the touchscreen technology. So the reliability of Apple and the ecofriendly system that we have added to the product will make it easier to convince the consumer to purchase our smart fridge.

Issue of Price

Price issue is the other challenge that we may face with. Some consumers may found this price higher. However, this product is not a regular fridge; the price will be higher than others. The functions and the technology which is used in our product are different than other our competitors. Also fridges are long term use products. So, if customers consider these details, the price will be acceptable for them.

Cost Analysis

To estimate the cost we have examined the financial reports of potential producers; such as LG, Bosch and Samsung. According to our market research, estimated cost of our product is shown below:

Manufacturing | Costs | | Refrigerator | 1900$ | Price: 3700$ | Ipad | 490$ | Total cost : 2440$ | Lightings | 50$ | Profit/product: 1260$ |

Comparing to other refrigerators’ prices, our price seems to be above the market standart but our advanced technology will distinguish our product from market. Because we integrate kitchen appliances with advanced technology, we will present our customers not only a refrigerator, but we will offer them a life changing technological experience. On the other hand, the average lifetime of refrigerators varies between 10 – 18 years. Average lifetime of our product will also be around 14 years. Because customers will use this appliance for long years they will want to buy the best refrigerator in market. Therefore, high price will not be a challenge for us.

Market analysis

When we consider the relatively new smart fridge market we see that there are two main competitors that we may face; Samsung and LG. LG is a firm that the regular household technology consumers rely on but the technology consumers are doubtful of, so we estimate that people will select Apple over LG quite easily.

Our main challenge here will be Samsung, it is a fact that they sold more smart phones than Apple in the last quarter of 2013 but this does not change that our fridge software is more reliable and flawless.

If we focus on the software in the advertisements the Samsung challenge will be an easy one to beat, because our fridge software is a state of the art the consumers should make the right decision if only we act as smart as our fridge.

Conclusion

iFridge provides easiness in the kitchen and makes it a fun experience for everyone in the household; to both store and cook food. Especially for the people who have a shortage of time, The iFridge is a perfect alternative with its unique and improved features.
We take the latest technology and combine it with the popular “smart” products concept to satisfy the consumers who want innovative solutions in their daily life. iFridge; with every one of its special features, deserves the name “The Fridge from the Future”. It is obvious that iFridge has the potential to create a whole new understanding in the fridge sector. It aims to lead the fridge sector with its brand new smart fridge technology. We think that we have considered all possible challenges and are waiting for your approval. Please contact with us and share your ideas about our new product proposal.

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