Leak detectors -- Technological innovations, Temperature detectors -- Technological innovations, Technology -- Marketing
We are pleased to present the strategic marketing plan for the Lyric WiFi Water Leak and Freeze Detector, manufactured by Honeywell, Inc. Honeywell is a $38.6B global company that provides value-added products and market changing innovations. Our extensive intellectual property portfolio generates competitive advantages for us and our customers. Our key product groups include Aerospace, Automation & Control Solutions (where the Lyric family resides; ACS) and Performance Materials and Technologies. Honeywell is well positioned for supporting the introduction and growth of the Leak Detector, with $40B in annual company sales, and a 50% increase in earnings per share over the past five years.
The Leak Detector is an early warning system that notifies customers on their connected devices when a leak is detected or the temperature drops below a temperature of their choice. By catching a leak early, customers can avoid expensive repairs and disruptions to their lives.
We are realistically optimistic about the revenue and profit potential of the Leak Detector. It sits in the Internet of Things (IoT) market, which is projected to grow at a compound annual rate of 67% over the next 5 years to a whopping $792.34 billion. In 2016 connected home device sales within this market will be approximately $61 billion. Our target market (Service Obtainable Market) consists of homeowners under the age of 40 who live in houses with WiFI, have hard to reach places in their primary or secondary homes, are motivated to prevent water leaks (largely based on past experiences with leaks), have recently acquired houses or are renovating their existing houses, and have an affinity for relatively new technology. We estimate by the end of year 3, we can capture 50% of this market and sell 4.5M Leak Detector units annually, generating $320M in total annual sales and annual profits of $63M. We are also optimistic because the Leak Detector is a strong competitor, due to the strength of the Lyric and Honeywell brands, and its wifi capabilities.
In the next three years, we will cross the chasm from early adopters to the early majority by enhancing the development of our product (e.g. connecting better to an ecosystem), innovating in our manufacturing to reduce the unit price, and by distributing through the right channels (directly to customers, popular online retailers, home improvement retailers, and influencers, such as insurance companies, plumbers and major appliance retailers).
Chabuel, Cyrille; Davis, Chris; Penumarti, Anjana; Tripathy, Sudipta; and VanDerSchaaf, Hans, "Honeywell Lyric WiFi Water Leak and Freeze Detector" (2016). Engineering and Technology Management Student Projects. 113.