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ENT600 CaseStudy1 PDF
ENT600 CaseStudy1 PDF
ENT600 CaseStudy1 PDF
NewAir
SEMESTER : 7
ACKNOWLEDGEMENT
In performing our assignment, we had to take the help and guideline of some respected persons,
who deserve our greatest gratitude. The completion of this assignment gives us much pleasure.
We would like to show our gratitude Dr. Mohd Ali Bahari Bin Abdul Kadir, ENT 600 Lecturer, UiTM
Shah Alam for giving us a good guideline for assignment throughout numerous consultations. We
would also like to expand our deepest gratitude to all those who have directly and indirectly guided
us in writing this assignment.
Many people, especially our classmates and team members itself, have made valuable comment
suggestions on this proposal which gave us an inspiration to improve our assignment. We thank all
the people for their help directly and indirectly to complete our assignment.
TABLE OF CONTENT
ACKNOWLEDGEMENT .................................................................................................................. 2
LIST OF FIGURES ......................................................................................................................... 4
LIST OF TABLES ............................................................................................................................ 5
EXECUTIVE SUMMARY ................................................................................................................ 6
1. INTRODUCTION ..................................................................................................................... 7
1.1. Background and motivation behind the study .................................................................... 7
1.2. Purpose of the study ......................................................................................................... 7
1.3. Business Problem ............................................................................................................. 8
1.4. Informational Background and Supporting Theory ............................................................ 8
2. COMPANY INFORMATION ..................................................................................................... 9
2.1 Background ........................................................................................................................... 9
2.2 Products/Services................................................................................................................ 10
2.3 Technology .......................................................................................................................... 12
2.4 Business, marketing, operational strategy ........................................................................... 14
3. COMPANY ANALYSIS .......................................................................................................... 15
3.1. SWOT Analysis ............................................................................................................... 15
3.2. Consumer Trend Canvas ................................................................................................ 16
4. FINDINGS AND DISCUSSION .............................................................................................. 17
5. CONCLUSION ....................................................................................................................... 19
6. RECOMMENDATION AND IMPROVEMENT ........................................................................ 20
6.1. Customer service system ................................................................................................ 20
6.2. Price of the product ......................................................................................................... 20
6.3. Target audience .............................................................................................................. 20
6.4. Product Innovation .......................................................................................................... 20
7. REFERENCES ...................................................................................................................... 21
LIST OF FIGURES
LIST OF TABLES
EXECUTIVE SUMMARY
This is an attempt to know how the theories can be applied to practical situation. As a student in
UiTM Shah Alam, it is a part of study for everyone to undergo a case study project. So, for this
purpose, we got the opportunity to research a company which manufactured the same product that
we want to develop, which is NewAir ice maker company, currently based in California.
In the first part of the project report, the general information of the company has been collected.
Information is gathered through the primary and secondary source as well.
In the second part of the report, contains the specialized subject study. Objective of the project is
to work on the background, organizational structure, products and services that NewAir provides.
Next, we study about the technology of NewAir ice maker, which is basically a normal technology
used by the refrigerator in freezer section, as well as business, marketing and its operational
strategy used by the company to promote their products which we find quite interesting. Lastly, we
research about the company financial achievements regarding how they manage their financial as
well as achievements gain from the financial management.
Goals indicate what a business unit wants to achieve. Strategy is an action plan for getting the
goals. Every business must design a strategy for achieving its goals, consisting of a marketing
strategy, and an effective management.
In this case study, we analysed the strength, weaknesses, opportunities and threats of this
company in real business world by using SWOT analysis. Thus, from the needs and demands from
the existing consumers of this company, we analysed and find a solution to overcome and to fulfil
their needs in Consumer Trend Canvas (CTC) analysis, making it as our innovation to be
continued in new Product Development task.
1. INTRODUCTION
‘’Either wright something worth reading or do something worth writing.’’ – Benjamin Franklin1
1
Ismail ab.Wahad, Zanariah Zainal Abidin, Hardy Loh Rahim(2017)"Fundamentals of Technology Entrpreneurship",
Global Mediastreet Sdn Bhd, pages xiii
2. COMPANY INFORMATION
The company NewAir is a manufacturer of luxery compact home appliances.
2.1 Background
Founded in 2002
Family Owned
o Luke Peters – founder and CEO
California Based
o 6600 Katella Ave, Cypress
o +1 657-2574349
Over 60 employees
100.000 sqm distribution centre
Sister Brand: luma comfort
2.2 Products/Services
NewAir’s products are:
o Ice Makers
o Wine & Beverage Coolers
o Portable Air-Conditioners
o Evaporative Coolers
o Water Dispensers
o Cigar Coolers
o Dehumidifiers
o Heaters
o Fans
NewAir AI-100BK
Model: AI-100BK
Product Type: 28-Pound Portable Ice Maker in Black
Product Dimensions: 14.50"L x 11.75"W x 15.00"H
Product Weight: 24.30 lbs.
Prize: $189.95
3
www.newair.com/ice-makers/
4
www.newair.com/ice-makers/
NewAir ClearIce40
Model: ClearIce40
Product Type: 40 Pound Clear Portable Ice Maker
Product Dimensions: 14.76"L x 11.30"W x 14.06"H
Product Weight: 23.15 lbs.
Prize: $249.95
NewAir AI-215SS
Model: AI-215SS
Product Type: Portable Ice Maker - 50 Lbs. Daily
Capacity
Product Dimensions: 14.25"L x 16.88"W x 16.75"H
Product Weight: 37.60 lbs.
Prize: $279.95
Figure 5: NewAir Al-215SS6
5
www.newair.com/ice-makers/
6
www.newair.com/ice-makers/
7
www.newair.com/ice-makers/
2.3 Technology
The process of ice making by using ice makers is pretty much the same with the process done by
common refrigerators. Clear ice makers, for example, do not freeze whole pockets of water at a
time like refrigerator ice makers do. Instead, they lay down thin layers of water, freezing from the
inside out so that there are no microscopic cracks from escaping particles and the ice stays clear.
A portable icemaker works a little differently compared to commercial ice makers. A portable ice
maker freezes the water directly instead of filling an ice mold with water and then putting the ice
mold into a freezer. Thus it takes much less time to complete a batch of ice.
1) Water is added manually into the unit’s water reservoir, up to the fill line.
2) The water is pumped in the bottom via a hole of the reservoir through a water filter and up
to an ice tray at the top of the unit. Any overflow spills back into the reservoir.
3) When the refrigeration cycle begins, the 1/2-inch prongs on the heat exchanger are lowered
into the water of the ice tray. Ice begins to form on the submerged spikes in a matter of
minutes.
4) The size of the ice cubes depend on how long the prongs are left in the water. A longer
cycle means thicker pieces of ice. Small ice usually takes about 6 minutes, while large ice is
about twice that, though freezing times can be affected by the ambient temperature and
how long the unit has been running.
5) When the ice has reached the proper size, the ice tray empties any remaining water back
into the water reservoir. At the same time, the heat exchanger reverses itself and the spikes
start to heat up just enough so that the ice pieces slide off the prongs and tumble into the
ice bin that’s above the water reservoir.
6) A second sensor on storage basket monitors the amount of stored ice, and shuts off the
system if it gets too full.
Refrigeration Cycle
The vapor-compression refrigeration cycle used in a Newair’s portable ice maker is the same that
is used in an air conditioner, refrigerator or freezer. In a freezer or refrigerator, the cold air
produced by the evaporator is collected in the unit’s insulated interior. In an air conditioner, the cold
air is distributed throughout the room by means of a fan. In a portable ice maker, however, the cold
produced by the evaporator is concentrated in the prongs attached to the evaporator, so that ice
forms on them when they are immersed in fresh water.
This process is based on the scientific principle of thermodynamics, which explains the transfer of
heat during evaporation. When a coolant, like refrigerant, transforms from a liquid into a gas, it is
able to absorb the surrounding heat during the transformation. The coolant then releases that heat
when it changes back into a liquid. The coolant that being used in Newair’s portable ice maker is
R134a Refrigerant. R134a is also known as Tetrafluoroethane (CF3CH2F).
A refrigeration system has four main components that facilitate the transfer of heat via the coolant.
These components are:
Compressor: Compresses the coolant, turning it into a hot, high pressure gas
Condenser: A set of coiled pipes on (or near) the exterior of the unit that dissipate heat as the
coolant transforms into high water pressure
Expansion Water Valve: Also known as an inlet valve. It releases the pressure on the coolant,
turning it into vapor again and lowering the temperature of the coolant
Evaporator: Another set of heat-exchanging pipes on the interior of the unit that make the interior
of the unit cold
Amazon BestBuy
Target Walmart
Wayfair
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3. COMPANY ANALYSIS
3.1. SWOT Analysis
POSITIVE NEGATIVE
STRENGTHS WEAKNESSES
INTERNAL FACTORS
OPPORTUNITIES THREATS
EXTERNAL FACTORS
16
Ice Maker including
waterfilter system
powered by solar
Reliable cheap portable energy
device that makes ice
Portable filter maschine Young Familys
Solar powerd
Ice cube maker Party lovers
Clean ice cubes made of
Solar powered travellers
clean water
Leisure time + wherever
they are
Enjoying cold drinks and
feeling comfortable in hot
weather conditions
CASE STUDY(ENT600)
Although NewAir created a huge brand within the last sixteen years, it has still difficulties to spread
their products all over the world. The lack of marketing expertise and the failure of using the
complete potential of the internet market lead to limited access for customers who do not live in the
United States of America. As a result, many potential customers are not addressed by the products
of NewAir. This applied modern marketing strategy is called e-business and is in our days one of
the most important purchasing channels. Moreover, e-commerce which is a part of the e-business
focuses on the online buying and selling actions.9
The high prizes of their products are probably related to the high-quality standards but also to their
market leadership. This fact is responsible for a relatively limited costumer group of the upper-class
society. In general, market development strategies enable the growth of purchasing area in order
to involves a broader range of customers. Potential customers may come from geographically
different markets and from different demographical or psychically segments. Companies applying
these techniques need to come out of the comfort of their existing market and need create the
basics for future customers, which may lead to more independence.10
Based on the findings of our study, we can say that this company might face some problems in the
future regarding the competitiveness of the product and their customer service. They should do
some changes in their customer service system and top up their ice maker technology.
There is a lot of complaints regarding the product based on the feedback of the customers. Most of
the customers said that this company’s ice maker is overly expensive and does not last longer than
8 Ismail ab.Wahad, Zanariah Zainal Abidin, Hardy Loh Rahim(2017)"Fundamentals of Technology Entrpreneurship",
Global Mediastreet Sdn Bhd, pages 11,15,22,23
9 Ismail ab.Wahad, Zanariah Zainal Abidin, Hardy Loh Rahim(2017)"Fundamentals of Technology Entrpreneurship",
one year. A cheap product with short lifetime or an expensive product with high quality and longer
lifetime is far more preferable over a product with a high price that doesn’t have a long lifetime.
In order for them to compete well in the industry of ice makers, they should come up with new
ideas. For example, they should implement solar power instead of just using electrical power at
home for the ice maker. Here is the situation: Summer comes, and people never have enough ice
for the coolers for all the outdoor activities. Going up to the farm on weekends, fishing, boating,
going to the beach, picnicking and so on. They would always have to go to the supermarket or mini
market for ice, which gets very inconvenient over time. Yes, they have an icemaker in the kitchen,
but is it not portable enough to be used for outdoor activities. Also, keeping lots of ice in the other
freezer hogs, requires too much space and it does not remain frozen long enough before it starts to
melt. In the conjunction, customer service is arguably the most important thing for your business.
To get decent and great customer service can overcome poor marketing, but it is incredibly difficult
and expensive to replace poor customer service with even the most exceptional delightful
marketing.
These are some points of the complaints and feedbacks from the customers regarding the
customer service of the company which is usually considered universally unacceptable:
Poor customer service can lead to a loss of customers and damage the company’s reputation and
ultimately affect the company’s business. Hence, they should overcome this situation effectively.
There are some limitations that we faced during conducting this study. First, this company is based
in California, which is physically unreachable regarding a current visit and we couldn’t obtain
information about the company by hand. Next, there is only a few websites that cover the
information about the company and their ice makers. Thus, the information we get was limited. We
tried to contact the company but did not receive a reply in time. Lastly, the time, given for the
completion of this study is limited.
5. CONCLUSION
As previously mentioned, NewAir has managed it to perform a transition from a small family startup
into a quite large business, providing plenty of products on the market, which are known for their
supposedly high quality along with skyrocketing prices and a well-paying customer base.
These last three listed points are the exact reason for change and make innovational revision of
the current product a necessity in terms of intelligently establishing new markets for this brand by
providing products not just for high paying upper-class society members, but for all different kinds
of people.
To achieve a wider range of customers, various steps of change are to be made with the aim to
innovate the company’s product, dominate new markets, and increase sales throughout the globe.
This vision statement is attempted to make it a reality by implementing the idea of producing a
smaller, portable ice maker which will be supplied with solar energy as a renewable power source,
so that the product will enter a whole different market in terms of families, young people, wildlife
enthusiasts and many more taking it out into nature to enjoy ice wherever they need it, whenever
they need it. Also, there will be a filter module applied to this concept for the customers to be able
to use any water source available.
Still some of these corrections, general changes and innovations have to be made under the
assumption of a few confidential aspects, which the company did not reveal to us in time before the
completion of this document.
7. REFERENCES
http://www.newair.com/ (Status: 07/04/2018)