2011 Integrated Product Development Web Trade Show
Eco-friendly Mini-business  

This year's challenge: Develop a profitable and eco-friendly mini-business for Cass Community Social Services (CCSS), an inner city agency dedicated to providing employment and job training to the Detroit community. Each student team has designed a product that
(a) Uses input material that would otherwise enter the waste stream and
(b) Can be manufactured with affordable capital equipment and entry level job skills.

Lumiere Lamps team photo
Lumiere Lamps

Motor City Coolers team photo
Motor City Coolers

Motor City Strides team photo
Motor City Strides

The Hope Garden team photo
The Hope Garden

Treads team photo
Treads

Wine Bar team photo
Wine Bar

View pictures of 2011 On-Campus Trade Show

Read "Student Created Mini Businesses Focus on Jobs and the Planet"

Past IPD Tradeshows

Integrated Product Development Results for 2011

2011 design challenge: 
An eco-friendly mini-business for Cass Community Social Services in Detroit

Voting results:
Web Market Share

Treads 24.4%
Hope Garden 19.8%
Lumiere 19.1%
Wine Bar 15.8%
MCC 12.3%
Strides 8.7%

From the very first day of voting Treads, Hope Garden and Lumiere were the top three teams, and Motor City Coolers maintained a steady share in the 10% - 12 % range.  Strides and Treads were in direct competition, with the inevitable result of dividing the market.  Strides might have done exceptionally well but for the presence of a direct competitor in their niche. 

Trade Show Market Share

Lumiere 33.8%
Hope Garden 22.3%
Treads 18.0%
MCC 10.1%
Wine Bar 9.7%
Strides 6.1%

Lumiere was a favorite, and the top three products retained their position. 

IPD uses a weighted average of web and physical show market shares to compute profits with the physical show twice as important. At an assumed market potential of 10,000 units per year for all products, the annual profitability and 5-year net present value for each team is as follows:

Final Profit Rankings

Product Fixed Cost Annual profit 5-Year NPV
MC Coolers 4,197.44 13,254.04 $46,045.80
MC Strides 57,606.80 11,218.90 $(15,078.36)
Treads 53,825.35 35,880.00 $82,188.06
Hope Garden 23,944.00 52,592.57 $175,423.23
Wine Bar 3,472.00 36,264.85 $134,000.30
Lumiere 22,965.20 78,418.32 $274,301.91

By combining low fixed costs, high margins, and a strong trade show market share, Lumiere was the most profitable team. Teams with high fixed costs and low margins had to garner high market share (unit sales) to be profitable. For example, Treads and Strides went head to head in the sandal market, and Treads won that battle, leaving Strides in the red. MC Coolers seemed throughout this competition to have a loyal 10% or so of the market; folks who simply liked the idea of a tire-cooler. This, and low start-up costs, allowed them to parlay this into a profitable venture.

Cass Community Social Services

CCSS staff members were active in each of the three IPD design reviews during the semester, and attended the physical trade show.  They suggested to the faculty that they want to move ahead with at least one and maybe more of these businesses!  That is the best possible outcome for our class objectives. 

All teams contributed ideas that the CCSS staff found intriguing, and they may combine some. For example, they may use Treads molding technology with Strides blue-jeans straps, because jeans are easier for Cass to collect.  Several mentioned rethinking what can be done with pallet wood.  Staff members liked the craft aspects of working with paper and glass.  There is work yet to be done to make these business plans reality, but we look forward to working with CCSS to take the next steps.

Congratulations to all student teams!

 

2011 IPD Product Web Sites
Click on each product below to view the design team's web site.
(from within each site, return to this page by clicking on the "IPD Home" icon)

team1
team2
team3
The Hope Garden
$39
Treads
$30
Motor City Strides
$25
team4
team5
team6
Wine Bar
$50
Motor City Coolers
$4499
Lumiere Lamps
$35

 

For more information about the IPD trade shows or course, please contact Tauber at (734) 647-0308
or email tauber.info@umich.edu.