SENZ Umbrellas; Taking the World by Storm

MM 5014 MANAGEMENT OF INNOVATION, TECHNOLOGY AND ENTREPRENEURSHIP MBA YPG 52, Institute of Technology Bandung Name : Valdi Mughni Budiman Nrp : 291144408

SENZ Umbrellas : Taking the world by storm ---------------------------------------------------------------------------------------------------------------Case Background: This case describe the start-up business of SENZ Umbrellas, a Dutch company founded by three graduated of Delft University of Technology who aimed to introduce an asymmetrical, storm-proof umbrella onto a mass-market where product innovation was limited. It demonstrates the marketing challenges start-ups face in bringing an innovative consumer product to market, the case focuses on how to promote a new consumer product and create brand awareness when resources are limited. The learning point : 1. Strategy: They adopt 3 Strategic options; - Become a technology supplier by licensing or selling their patent to a company with strong connection to a particular industry, SENZ contacting to established umbrella brands and demonstrate their prototypes; - Adopt a white label strategy. Is a strategy that allow product produce by one company that is packaged and sold by other companies under varying brand names. The end product appears as though it’s being made by the marketer, when in reality it is being created by the manufacturing company. By doing this strategy, the manufacturer can focus on making the product or service and can doing cost saving because they wont worrying about marketing, that will be handled by the companies who sell their product; - Develop their own umbrella brands. 2. Internal Analysis - Price, Focus on: High-end umbrellas sold at 10 and above.  The high price would position the umbrellas as unique, high quality products.  The higher price was also necessary to cover production costs which would be higher than for standard umbrellas due to the model’s deviant shape.  High margins in order to penetrate the market and make use of its first mover advantage.  High margin to invest research to finance the development.

- Product, New design, aerodynamic principles, asymmetrically rounded, “stormproof” and virtually unbreakable, eye-savers, UV protection, 2 years storm warranty.

- Place, SENZ sells physically in 19 countries, SENZ wanted to work with relatively top-end retailers, We can buy an umbrella through SENZ Website. - Promotion, SENZ do not spend a lot of money in promotion. 3. Added Value of Umbrellas:  SENZ Umbrellas don’t break easily;  SENZ Umbrellas provide an improve view;  Eye-Savers;  New Design. Lesson Learned:  What is marketing (marketing definition, marketing process).  There are strong correlation that exist between marketing and entrepreneurship.

 Marketing in SMEs (Small Medium Enterprise), how it works, in which aspects and why is different from big firms marketing.  Strategies, method and tools available to entrepreneur.  Common approaches used by entrepreneurs during the company lifecycle.  How new technologies changed marketing channels and consequently have affected the way to do marketing.  Practical examples and case in order to help you figuring out how to do marketing.