Product to be sold/service being provided:

Our company ABX will be introducing to the market a new feature that makes grocery shopping much easier for the consumer. Our artificial intelligence fridge Smart Fridge will provide you with a shopping list as you consume products out of your fridge. Our fridge will connect to an app on your phone that will actively be updated as items in your fridge require repurchasing.

Strategy:

ABX is entering into a market with high levels of competition and availabilities for substitution (exhibit 1). Fridges are no longer what they use to be 20 years ago, over the last few years we have seen an increase of technology being incorporated within fridges being offered on the market for example LG and Samsung incorporating tablets within their fridge doors. But what ABX is offering is something we have yet to see on the market, which is a fridge that utilizes artificial intelligence to keep track of when items are running low and creates a grocery list for you which can be seen from anywhere with the use of our app.

This will help ABX stand out in the market amongst well established household named brands as they are providing consumers a product that they need (a fridge) but also a unique service alongside their product, being that ABXs consumers will no longer be required to create their own grocery lists as their smart fridge will do it for them.

Target Market, Size of Market and Market Share:

Target Market:

Our target market will be young adults to families 20-50 years old. We believe consumers within this age range live a busy life; whether thats being in university, having young families or being in the working world these types of consumers are always seeking for ways to make their day-to-day lives more efficient.

Market Share: Per IBIS World, the industry average for market share is 28%. As we are a new company entering a competitive market, we will set our market share at 25% for the first year.

Size of Market:

Currently there is 215 million refrigerators sold each year, per Statista.

Competitors:

Per Exhibit 1- Porters Five Forces, ABX is entering into a market with high level of competition. There are refrigerators brands that have become household names like Samsung, KitchenAid, and LG many of which who have started to incorporate technology within their products. As per a recent Reader Digest article, Samsung is deemed to be the leading seller of smart refrigerator, offering their customers technology features through their fridge doors.

The Value of our Product:

Do you ever wonder if you are ever running low on groceries and have to search through the fridge to see what requires re-stocking and then proceed to make yourself a list? Or do you ever get to the grocery store and forget what you need to buy?

Well with the new technology provided in ABXs Smart Fridge, this is no longer a problem, as the fridge will detect when items are low and create a shopping list that can be linked directly to the app on your phone. ABXs smart fridge is helping grocery shopping become hassle free by making your grocery list for you.

Based on the information above, please provide a detailed :

1. Cost of Capital & Capital Budgeting analysis, and

2. Breakeven Analysis, Payback Period, and ROI Analysis, and

3. Sensitivity Analysis, and

Provide possible alternatives and recommendations: