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XXL Refrigerator Product

Student’s Name:

Course Code:

Professor’s Name:

Date:
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XXL Refrigerator Product

Contents
1. Our Product XXL...................................................................................................................................3
1.2 XXL Mission......................................................................................................................................4
1.3 Purpose of XXL.................................................................................................................................5
2. Detailed Written Description of the Product...........................................................................................5
2.1 Why your product or service is innovative/ different?.......................................................................6
2.2 Why your product or service is innovative/ different from the Rest?................................................7
3. Service Offering Solutions:...................................................................................................................7
4. Value Proportion..................................................................................................................................8
5. Key Activities........................................................................................................................................9
6. Key Partners and Resources...............................................................................................................10
7. Customer Relationship and Customer Segment................................................................................11
8. Channels and Revenue Streams.........................................................................................................12
9. Market Analysis.....................................................................................................................................13
9.1 SWOT Analysis.................................................................................................................................13
9.2 Target Analysis.................................................................................................................................14
10. Cost Structure and Financial Projections.......................................................................................14
10.1 The necessary Requirements.........................................................................................................15
10.2 Expected Revenue.........................................................................................................................15
11. Key Risks........................................................................................................................................17
11.1 Technical Dependability.................................................................................................................17
11.2 Market Acceptance........................................................................................................................17
12. Conclusion.....................................................................................................................................18
13. References.....................................................................................................................................19
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1. Our Product XXL

In the place of technological revolution, the household appliances are part of the gadgets that

focuses on enhancement to ensure that the management of food is done in the most efficient way.

XXL is a smart refrigerator that are connected to cloud, controlled via remote and connected to

smartphone. The product is unique compare to the convectional refrigerators due to the

incorporation of the AI features that could be applicable for energy efficiency. The product

focuses on revolutionizing the household industry to enhance features in all aspect.

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1.2 XXL Mission

XXL, a Smart Refrigerator is a kitchen appliance that connect to internet and other technological

gadgets to offer benefits to its users. The refrigerator offers a innovative, connected refrigeration
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solution by leveraging cutting edge technology and intuitive design that enhances convenience,

efficiency and sustainability in storage and management of food.

1.3 Purpose of XXL

The purpose of XXL is to offer an innovative and connected refrigeration solution in the modern

household. Through leveraging the cutting-edge technology, the purpose of XXL targets

convenience, efficiency and optimum sustainability in the long run. For example, the XXL offers

mobile app connectivity, leading to convenience and control over functions. Secondly, the

product fosters energy efficiency through saving electricity cost by a continuous monitoring of

issues and temperature adjustments.

2. Detailed Written Description of the Product

The project is a Smart Refrigerator which is a cutting-edged appliance that incorporate

technology to enhance the quality of life for the target customers. The Smart Refrigerator

features an intelligent food management system which identifies the content of the refrigerator

and offer a real-time freshness information and hence empower the users to effectively manage

food material. At the same time, the Smart refrigerators aims at reducing food waste,

contributing to long-term development of the immediate environment. In this case, the product is

not only beneficial to the individuals but also creates value for the immediate society.

The major beneficial functions of the smart refrigerator are that it offers a remote-control

functionality through mobile phones and other smart devices. The function allows users of the

product to monitor and regulate the temperature of the product in the refrigerator, receive

notification of the changes in the temperature and access real time saving features. Also, the

product allows for flexibility and autonomy in the management of the daily lives. Additionally,

the integration of the voice interaction technology in the refrigerator is a game changer as it
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simplifies user experience and hence enable various operations to work via the voice command

technology. Thus, the interaction with the refrigerator is more convenient and user friendly for

individuals who are not Techsavy.

2.1 Why your product or service is innovative/ different?

The key features if the refrigerator that makes it a unique when compared to the convectional

refrigerators is energy efficiency feature, connectivity function, and Innovative features. The

energy efficiency is one of the reasons why the Smart refrigerator is efficient to use in the long

run. In this case, the technology in the smart refrigerator optimizes the refrigeration system with

intelligence control to reduce energy consumption. Some of the benefits of the use of the

refrigerator is that it promotes the economical and affordable use of the clean energy. In the long

run, the technology aims at reducing the cost of energy that people use in their homes. Secondly,

the connectivity function allows the refrigerator to interact it other smart devices in the house,

leading to a comprehensive home management system and the enhancement of the overall life

experience for those wish to improve their household item (Stasha, 2021). In particular,

innovative features such as visual recognition technology, voice control, and artificial
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intelligence offers a real time ingratiated, personalized recipe recommendation to users and the

remote voice control.

2.2 Why your product or service is innovative/ different from the Rest?
The traditional refrigerators offered supportive framework for food storage and management.

In this case, the device only served the purpose of ensuring that food do not get spoilt. On the

other hand, the XXL Refrigerator is fitted with additional features that ensure efficiency in

storage and energy cost reduction. The smart refrigerator utilizes voice control and artificial

intelligence technologies, allowing users in the modern homes to manage food, search for

recipes. Also, XXL assists in performance of other tasks using voice, and thus improves the user

experience. Secondly, the voice-activated features require connection via applications via Wi-Fi.

Additionally, technology disruption has offered solution for the various problems in the modern

homes. For instance, the LG InstaView refrigerator with voice recognition won the Best

Innovation Award of the CES 2021 Innovation Award, due to the company’s effort in making the

kitchen more efficient and convenient for the product users (Canada, 2020).

3. Service Offering Solutions:

Smart Refrigerator is made to ensure not only convenience in homes but also energy use

efficiency. Study findings published in the energysavingtrust.org.uk suggest that washing

machines, dish washers and refrigerators accounts for the household items that consume most

energy in homes. The study found out that the refrigerators are the king in power consumption

when it comes to the household items. A refrigerator consumer more than 30% of the electricity

used in appliances since it is the only appliances in homes that works for 24 hours in day. Also, it

important to note that refrigerators use more than 300 to 800W in a day(Marsh,2023). While

studies have been established to identify and solve, he causative agent for high energy
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consumption in homes and the key focus is directed to renewable energy and reduce of energy

wastage in homes.

The solution that Smart refrigerator offers aligns with the ability to revolutionalise food

management in the household, empower the appliance users to maintain a convenient and

efficient control as well as contribution to energy efficiencies and energy control. The

combination of advanced technology with practical functionality makes the appliances beneficial

and offers a comprehensive solution for moder living (Marsh,2023). As a result, the appliances

address user needs and a more sustainable and convenient lifestyle.

4. Value Proportion
A refrigerator is necessary in every household and hence the necessity to depend on the

individual needs and preferences. Central to the use of the Smart Refrigerator is the appliance

facility to utilize Internet connectivity, enable users to monitor the performance of the

refrigerator remotely and control various aspect of the appliances remotely. Some of the reason

why the value proportion for the Smart Refrigerator is different is due to the following reason:

 The Smart Refrigerators are beneficial appliances as they offer benefits of reducing food

waste and energy consumption. The improvement of efficiency has a direct relationship

with the size of the power bill and hence lead to a cost savings in the aspect of energy

use.

 The product enhances convenience and connectivity through remote monitoring and

control, leading to effective tracking of the food items through a dedicated application.

 The product has potential for Market growth and consumer demand, with the anticipation

of significant growth in demand for the given appliances. The global smart home market

depicted a significant growth at a compound annual rate of 6.9% from 2024 to 2030 and
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is projected to grow beyond $5.18 billion by 2030 from $3.25 billion in the year 2023

((NMSC), 2023).

5. Key Activities
The Key Activities are the important business activities that the business organization need to

undertake for the purpose of executing its business model (Otola , 2020). The activities entail

the ventures business undertake to ensure that there is delivery of value proportion to its

customers in the long run. In XXL Refrigerator, the key activities involve the various

technological innovation, market expansion and consumer engagement practices that ensure

business run smoothly.

 The company invested heavily in research and development activities to focus on

technically advanced refrigerators offering proper storage and connectivity to customers.

 Consumer engagement though proper market promotion techniques

 Customer Service

 Inventory Management
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Figure 1:Business Model Canvas

6. Key Partners and Resources

The key partners for the business entail all the network of business partnership, including the

suppliers and cooperative entails that can be helpful in the realization of the business model. The

main business partners include technology companies that offer devices to be fit in the

refrigerators, distributors, suppliers and vendors. The possible distributors of the products

include Home Depot, Best Buy, Direct Buy Among others. On the other hand, the major

competitors for the XXL Business Group are LG Electronics, Samsung Electronics Co. Ltd, and

Panasonic Corporation which have constantly focused on establishing innovative products in the

long run.
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7. Customer Relationship and Customer Segment

Customer segment is the people or business that pay to purchase XXL product. This process

allows business to tailor their products or services as well as marketing efforts with the objective

of meeting specific needs of particular segments. In the Smart refrigerator segment, the customer

relationships entail the practice of customer acquisition, customer retention and maintaining

customer loyalty. The main target for Smart refrigerator is the individuals within the ages of 25

and 41 years who resides in the urban areas in Canada. The customers in the particular segment

are grouped as millennials in the Toronto City. The prospects are middle and lower upper class

categories and hence young couples with young families.

Geographic Demographics Psychographics

First Segment Toronto City, Urban Millennials between the Middle class,

ages of 25 and 29. They lower upper

compose of Single

Parent families or

single adults, young

couples with young

children with

household income of

A$40000-A$100000.

Second Segment Toronto City, Urban The segment consists The segment

of millennials between consists of middle-

ages 29 and 40 who are class residents,

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either single parents or upper middle class

young couples with and upper class

young children. The

individuals have

Postgraduate education

level with household

income level of

A$60,000-A$120,000

Third Segment Toronto City, Urban The target audience in Middle class,

this segment is working class,

Generation X with upper middle,

individuals aged 41 -56 upper.

years. The middle aged

and older couples are

small business owners,

and couples with grown

children. The segment

earnings is more than

A$100,000

8. Channels and Revenue Streams

The revenue streams refer to the various sources that the business use to earn money from the

practice of setting good and services. The revenue streams are categorized based on pricing

mechanism as well as the key channels through a business can generate significant earnings. The
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company can generate earnings from the sale of products, Data Monetization, Online Sales. On

the other hand, the distribution channels for the XXL refrigeration products include offline sales

using Brick-and -mortar stores and online retailers.

9. Market Analysis
9.1 SWOT Analysis
Strength: Opportunity:

 The smart Refrigerator have advance  There is an opportunity for Market

features such as internal cameras, growth with broader consumer

remote monitoring and connectivity demographic

and hence a competitive edge in the  The on-going technological

market advancement offers opportunities for

 The appliance is designed to enhance more attractive refrigerator features.

energy efficiency through energy

conservation.

 There is an anticipation for market

growth

Weakness: Threats:

 Smart Refrigerators are more costly  XXL market faces threat of

than the convectional refrigerators. competition from cheaper and

 Product separation where the smart affordable alternatives

refrigerators lack differentiation,  Economic factors in Canada such as

leading to challenges in market declining market share and income

positioning and market segmentation. among consumers

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9.2 Target Analysis

According to the definition by Weinstein (2014). target market is a group of potential customers

that a business aim to reach with their unique product or services . The first and second segment

are the targeted customers for XXL product. The shared similarities between the two groups of

prospective buyers are that they are millennials and hence suited for the home improvement

technology.

10.Cost Structure and Financial Projections

The cost structure of the business entails the various expenses that the company incurs in its

operations. In this smart refrigerator production, the company my focus on the manufacturing

cost, research and development cost, cost associated with technological integration, operational

costs, marketing and advertisement among others. The initial requirements for the business is

$30,000,000 and will entail a funding model of a debt of $20,345,000 and capital requirements

of $9,655,000.

Start Up Expenses '000

Manufacturing Cost $1,000
Research and
Development $250
Technological Integration $5,000
Payroll $1,500
Marketing and
Advertisement $200
Operational Expenses: $1,000
Other $25
Total Startup Expenses $8,975
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10.1 The necessary Requirements

Start Up Assets '000
Cash Required 1230
Start Up Inventory 1900
Account Receivable 234
Other Current Assets 60
Longterm Assets 24925
Total Assets 28349

Total Requirement 30,000

Start up Fuding Model

Account Payable 5000
Notes Payable 2000
Other Current 0
Longterm Liabilities 13345
Total Liabilities 20345

Capital
Owner 5155
Investors 4500
TotalCapital 9655
Total Funding 30000

10.2 Expected Revenue

Year Units Sold Percentage Market Revenue

Share

1 2000 5% $10,000,000

2 4000 8% $20,000,000

3 5000 12.5% $25,000,000

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The cost of each unit of refrigerator will be $5000 which amounts to $10 million in the

first year, $20 million in the second year and $25 million in the third year of operations. The first

goal is to launch a marketing campaign about XXL Refrigerator product in the initial month of

the product introduction into the market. The performance measures entail execution of the plane

marketing executions and use customer surveys to determine if the product can command a high

volume of sales in the market. The second goal is to capture 5% of the market share in the first

year and 8% in the subsequent year and 12.5% in the third year.

Net Income'000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Year 1 Year 2 Year 3

The company is projected to have a significant rise in the net income from year 1 to year

3. With the knowledge of the product in the market, the millennials who are the targeted buyers

are more likely to increase the purchase of XXL refrigerator due to the increase in the prevalent

expectation of convenience due to the technology. The Smart product will generate $4.525

million in year 1, $24 million in year 2, and 27.5 million in year 3.

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Total Assets
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
Year 1 Year 2 Year 3

11. Key Risks

The product works well, given the beneficial aspect of the appliance on the storage and

management of food. However, the new product has a possible danger of Technical

Dependability and Market Acceptability.

11.1 Technical Dependability

When it comes to products such as smart refrigerator, technical reliability can pose a significant

risk. A smart refrigerator features a wide range of technology such as sensor and internet that

ensures that the owners are connected using WIFI and smartphones. It is necessary for technical

system of the smart refrigerators to be highly reliable to ensure that the food management errors

are corrected and avoid the loss of data due to failures in technical aspects. Any technical hitch in

the refrigerator system may result in malfunctioning and function disruptions. Additionally, food

management errors may exist if the remote monitoring system fails.

11.2 Market Acceptance

The Market acceptance is critical for the success of sales for XXL products. It is important to

note that the new technology and functions may be unknown to consumers which may affect the
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sales of the product. If the consumers are not offered detailed manuals about the user interface

and interaction design, the unfamiliarity with the new design could deter the acceptance of the

product in the market. If XXL is not accepted in the market, the company may encounter low

sales and failure of the product.

12. Conclusion
The rise in technology advancements has facilitated the increase in the need for more

sophisticated technology needs in various areas. On the other hand, refrigerators have been

important part of households in Canada. As a result, XXL Refrigerator offers unique solution to

the challenges when it comes to food storage and management. The refrigerator is different from

other brands as it offers an innovative, connected refrigeration solution by leveraging cutting

edge technology and intuitive design that enhances convenience, efficiency and sustainability in

storage and management of food. The targeted market is millennials and individuals with a

modest income and desire to improve their home technology. The products projected to increase

its sales in three years with proper funding model.

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13. References
(NMSC), N. M. S. C. (2023). Smart furniture market by product type (Smart Tables & Desks,

Smart Stools & benches, Smart Chairs, and Smart Beds), by end use (residential and

commercial), and by distribution channel (online and offline) – global opportunity

analysis and industry forecast, 2024–2030. Smart Furniture Market Size and Share |

Statistics - 2030. https://www.nextmsc.com/report/smart-furniture-market

Canada, L. E. (2020, December 29). New LG InstaView refrigerators demonstrate Hygiene

Innovation at CES 2021. Cision Canada. https://www.newswire.ca/news-releases/new-lg-

instaview-refrigerators-demonstrate-hygiene-innovation-at-ces-2021-894633966.html

Marsh, J. (2023 December 17th). How many watts does a refrigerator use? Energy Use.

https://www.energysage.com/electricity/house-watts/how-many-watts-does-a-

refrigerator-use/

Otola, I. (2020). An insight into the key resources in business models: What we can learn from

high-growth enterprises. Education Excellence and Innovation Management: A, 18799-

18810.

Stasha, S. (2021). An in-depth view into smart home statistics. Retrieved from

https://policyadvice.net/insurance/insights/smart-home-statistics/#:~:text=The%20Most

%20Intriguing%20Smart%20Home%20Industry%20Stats%20and%20Facts&text=By

%202027%2C%20the%20IoT%20market,been%20shipped%20worldwide%20by

%202018

Statistica, (2021). Smart Home. Retrieved fromhttps://www.statista.com/outlook/dmo/smart-

home/canada?currency=CAD&fbclid=IwAR3n1GmrAqi7X-

WbcXSNg9TLCsBehBB0XJ3yD5BFX-BSguVgEll-IJ8_F_o
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Weinstein, A. (2014). Target market selection in B2B technology markets. Journal of Marketing

Analytics, 2, 59-69.