Ripe & Ready KitchenAid Appliance - Open Journal of Business and Management

OJBM > Vol.8 No.1, January 2020

Ripe & Ready KitchenAid Appliance ()

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Download as PDF (Size: 2098KB) PP. 114-134

DOI: 10.4236/ojbm.2020.81008 620 Downloads 1,644 Views

Author(s)

Rasha Ali Mueed Alshehre

Affiliation(s)

University of Colorado Boulder, Boulder, USA.

ABSTRACT

Time and time again, people have expressed their frustrations regarding spoiled produce. Most claimed that they did not realize the food had passed its ripest stage or that it would expire before they had the chance to consume it. From there, I identified an opportunity to solve the lack of knowledge consumers have regarding the ripeness of their fruits and vegetables. The target market is identified as health-conscious young professionals living in the US, between the ages of 25 and 34. There are over 41 million men and women in this age group (US Census Bureau). Most are single purchasers in such a way that a lot of what they spend goes to their own food consumption. Those with at least a bachelor’s degree have an average salary of $51,000 and will have more discretionary income than other possible market segments REF _Ref27118197 \r \h [1]. I developed a countertop kitchen appliance and formed a brand alliance with KitchenAid to solve the need for food waste reduction. Appliances seamlessly fit in with consumers’ usage of produce, which predominantly occurs in the kitchen. Using ethylene detecting sensors in a device with similar dimensions as a blender, consumers will be able to figure out the stage of ripeness of their fruits and vegetables. Not only will our product tell consumers when produce is ripe or not, but it also includes a feature that indicates how many days are left until something is ready to eat. The product only works for fruits and vegetables that release ethylene gas because that is what the sensors detect and use to inform the consumer. Forecast sales within the first-year total 806,907 units at a retail price of $249.99. My net income in the first year will be $15,445,454.87. With an initial investment of $24,350,000 due to fixed costs and a large advertising budget, the forecasted payback period is 1.57 years. After a year and a half, it will contribute to KitchenAid’s net income, increasing the appeal of the product.

KEYWORDS

KitchenAid, Appliance

Share and Cite:

Alshehre, R. (2020) Ripe & Ready KitchenAid Appliance. Open Journal of Business and Management, 8, 114-134. doi: 10.4236/ojbm.2020.81008.

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