Modu: Optimizing The Product Line

By : Group 1

Introduction
Israeli entrepreneur, Dov Moran started MODU in 2007 with a vision to create the first modular phone Morans greatest invention was the USB flash drive which he sold to SanDisk for nearly $1.6 billion Moran envisioned the creation of a mobile device that was a small, trendy, with latest feature that could be

slipped into a variety of enclosures, or jackets that

would provide added functions

Concept Development
Customized phones Combination of Modu and jackets helped in continuous innovation of new style & functionality to market Display & Development of jacket were issues 8 jackets were developed Only 3 of them could be brought 3 kinds of flexibility:
Functionality Aesthetics Protection form obsolescence

Question 1: Which of the potential targets would we select and why? What information is important for our targeting decisions?

Market Segments
The Young Professional
Buying product more for brand than its features Rational in some of preferences

The Fashionable Youth

Fashion trendsetter & tastemaker, highly influential Like to design her phone

The Gadget Geek

To be the first person to use the newly launched device Liked to spend income for purchasing new gadgets

The Potential Target

We would select The Youth Professional They give high priority to their after work social life Brand oriented

Emailing, texting, talking, contact information

Comparison
160 140

Price Cost Profit/unit

120

100

80

60

40

20

Road W

Pwned

Contact

Libris

X1

Silver

Basix

Volt

Question 2: What is the total market opportunity of different jackets Modu has developed ?

Market Opportunity
30%

Road Warrior Pwned Contact

25%

20%

Libris
X1

15%

10%

Silverlake Basix Volt

5%

0%
Libris Silver Road W Contact X1 Pwned Volt Basix

Young Professional

Fashionable Youth

Gadget Geek

Question 3: What is the impact of cannibalization on Modu decision on which jackets to produce?

Impact Of Cannibalization
Cannibalization Comparision
60% 50%

40%

30%

20%

10%

0% Road W Pwned Contact Libris X1 Silver Basix Volt

Libris

X1

Silver