Henkel Innovation Challenge 2008

Antonio Marella, Henry Sichel, Simone Prada

Antonio Marella, Henry Sichel, Simone Prada

2050…2050…

Antonio Marella, Henry Sichel, Simone Prada

……is this the future?is this the future?

NO!NO!

Low environmental impactLow environmental impact Low water consumptionLow water consumption Use of alternative energiesUse of alternative energies Strong incentives to the searchStrong incentives to the search

Probable directions:Probable directions:

Antonio Marella, Henry Sichel, Simone Prada

THIS is the future!THIS is the future!

What will life be What will life be like in 2050?like in 2050?

Antonio Marella, Henry Sichel, Simone Prada

Life will be more and Life will be more and more stressfulmore stressful

Free-time will represent a Free-time will represent a primary needprimary need

Antonio Marella, Henry Sichel, Simone Prada

Need to reduce time devoted to Need to reduce time devoted to doing houseworkdoing housework

Antonio Marella, Henry Sichel, Simone Prada

MISSION:MISSION:

To satisfy the needs To satisfy the needs of of thosethose doing the doing the

housework housework

Antonio Marella, Henry Sichel, Simone Prada

There won’t be new There won’t be new needs…needs…

Antonio Marella, Henry Sichel, Simone Prada

…simply, will change how to satisfy them

Antonio Marella, Henry Sichel, Simone Prada

1950 2000 2050

Antonio Marella, Henry Sichel, Simone Prada

Houses will be probablyHouses will be probably

managed by software devised managed by software devised to help consumers carry out to help consumers carry out

their daily routine.their daily routine.

Antonio Marella, Henry Sichel, Simone Prada

““Think about the tip of a needle. It’s a minute area. Think about the tip of a needle. It’s a minute area. Entering the nanotechnologies world, we will Entering the nanotechnologies world, we will

understand there is enough space to write there understand there is enough space to write there all twenty-four British Enciclopedia.”all twenty-four British Enciclopedia.”

Richard Feynman Richard Feynman

Nobel Prize in Physics 1965Nobel Prize in Physics 1965

Antonio Marella, Henry Sichel, Simone Prada

The World is walking in one The World is walking in one direction only…direction only…

USA: 2.7 bll€

Nanotechnologies R&D Nanotechnologies R&D investmentsinvestments

UE: 1.5 bll€ China: 1.1 bll€ Japan: 0.8 bll€

Antonio Marella, Henry Sichel, Simone Prada

THE THE IDEAIDEA

Antonio Marella, Henry Sichel, Simone Prada

We believe nanites represent the best We believe nanites represent the best carrier to allow a direct application of carrier to allow a direct application of

chemical reagents on interested chemical reagents on interested molecules, in order to erase impurities molecules, in order to erase impurities from any kind of surfaces, clothes or from any kind of surfaces, clothes or

materials.materials.

Nanites will be driven by domestic Nanites will be driven by domestic software and activated through a software and activated through a

consumer simple motion.consumer simple motion.

Antonio Marella, Henry Sichel, Simone Prada

Antonio Marella, Henry Sichel, Simone Prada

PRATICAL APPLICATIONSPRATICAL APPLICATIONS

FloorsFloors sterilization can be activated in sterilization can be activated in any moment with a click;any moment with a click;

Consumer can get an automated cleaning Consumer can get an automated cleaning putting to place flat and then pushing a putting to place flat and then pushing a

button;button;

Consumer can activate furnaces and Consumer can activate furnaces and ledges cleaning process by a simple ledges cleaning process by a simple

motion.motion.

User can initialize the clothes cleaning User can initialize the clothes cleaning directly directly inside closets andinside closets and drawers;drawers;

Antonio Marella, Henry Sichel, Simone Prada

Antonio Marella, Henry Sichel, Simone Prada

1950 2000 2050

Antonio Marella, Henry Sichel, Simone Prada

Why should Henkel develop Why should Henkel develop

nanotechnologiesnanotechnologies??

Know-how;Know-how;

Proper mentality for this Proper mentality for this challenge.challenge.

Strengths

Weaknesses

Opportunities

Threats

● ● No water consumptionNo water consumption

● ● Low energy consumptionLow energy consumption

● ● No residueNo residue

● ● Full-automatized processFull-automatized process

● ● High initial production costsHigh initial production costs

● ● Long R&D programLong R&D program

● ● Utilization of public findingUtilization of public finding

● ● Positive technological Positive technological consequencesconsequences

● ● Sector leadershipSector leadership

● ● Risk of becoming just a Risk of becoming just a follower of market leaders follower of market leaders

How can Henkel convert its weaknesses in strengths?

By immediately starting a nanotechnological research program which will gradually be absorbed into Henkel organization (“Henkel-Tech” project);

Joining relevant economies of scale.

Antonio Marella, Henry Sichel, Simone Prada

Strengths

Weaknesses

Opportunities

Threats

● ● No water consumptionNo water consumption

● ● Low energy consumptionLow energy consumption

● ● No residueNo residue

● ● Full-automatized processFull-automatized process

● ● High initial production costsHigh initial production costs

● ● Long R&D programLong R&D program

● ● Utilization of public findingUtilization of public finding

● ● Positive technological Positive technological consequencesconsequences

● ● Sector leadershipSector leadership

● ● Risk of becoming just a Risk of becoming just a follower of market leaders follower of market leaders

ProductProduct

Antonio Marella, Henry Sichel, Simone Prada

Antonio Marella, Henry Sichel, Simone Prada

ProductProduct

Henkel-TechHenkel-Tech

ProjectProject

ReagentsReagentsProductProduct

Output 2050Output 2050

ProductProduct

Antonio Marella, Henry Sichel, Simone Prada

ProductProduct

““Beehive”Beehive”

SoftwareSoftware

““Bee-driver”Bee-driver”

NanitesNanites

““Bees”Bees”

Henkel-Tech technology that allows interaction between

reagents and interested molecules

It “teaches” domestic software how to use Bees and contains Henkel

know-how to permit better applications

ProductProduct

Antonio Marella, Henry Sichel, Simone Prada

ReagentsReagents

DifferentiationDifferentiation

HoneyHoney

AmbrosiaAmbrosia NectarNectar

WaxWax

KitchenKitchenBathrooBathroo

mmClothesClothes

FloorsFloors

ProductProduct

Antonio Marella, Henry Sichel, Simone Prada

Installation kit and and Installation kit and and Bees recharge system Bees recharge system

(like USB)(like USB)

PackagingPackaging

BeehiveBeehive(Bees + Bee-driver)(Bees + Bee-driver)

ProductProduct

Antonio Marella, Henry Sichel, Simone Prada

Disposable vials in Disposable vials in biodegradable materialsbiodegradable materials

PackagingPackaging

ReagentsReagents

Antonio Marella, Henry Sichel, Simone Prada

PricePrice

PricePrice

Antonio Marella, Henry Sichel, Simone Prada

BeehivBeehivee

PricingPricing

Step 1Step 1:: skimming strategy, according to high production costs;skimming strategy, according to high production costs;

Economies Economies of scaleof scale

Step 2Step 2:: expansion strategy, capillary distribution, price reduction.expansion strategy, capillary distribution, price reduction.

price comparable to current top class price comparable to current top class appliances oneappliances one

OBJECTIVE:OBJECTIVE:

PricePrice

Antonio Marella, Henry Sichel, Simone Prada

PricingPricing

ReagentReagentss

Low unitary price comparable to current detergents oneLow unitary price comparable to current detergents one

Differentiation strategy:Differentiation strategy:

Segmentation variables:Segmentation variables: kind of surfaces and materials, reagents kind of surfaces and materials, reagents cleaning capacity, versatility;cleaning capacity, versatility;

AdvertisingAdvertising

Antonio Marella, Henry Sichel, Simone Prada

PromotionPromotion

Antonio Marella, Henry Sichel, Simone Prada

AdvertisinAdvertisingg

Step 0Step 0:: viral marketing based strategy, vaporware and rumors viral marketing based strategy, vaporware and rumors;

BeehiveBeehive

Step 1Step 1:: Placement:Placement: to control the market top segment, heavy advertising to control the market top segment, heavy advertising campaign (most wanted campaign (most wanted ChristmasChristmas present 2050);present 2050);

Media:Media: traditional and innovative channels, as virtual realities, traditional and innovative channels, as virtual realities, dedicated to upper-classes;dedicated to upper-classes;

OBJECTIVE:OBJECTIVE: The product must become a The product must become a status symbolstatus symbol

PromotionPromotion

Antonio Marella, Henry Sichel, Simone Prada

Step 2Step 2:: Placement:Placement: heavy spreading of the product on the market, heavy spreading of the product on the market, exploiting lower classes imitation effect and economies of scale exploiting lower classes imitation effect and economies of scale consequences;consequences;

Media:Media: mass traditional and innovative channels, massive presence mass traditional and innovative channels, massive presence on entertainment media.on entertainment media.

PromozionePromozione

Antonio Marella, Henry Sichel, Simone Prada

ReagentsReagents

Initial drawing from Beehive advertising; strong fidelization campain Initial drawing from Beehive advertising; strong fidelization campain during the second step to defeat followers imitation strategies.during the second step to defeat followers imitation strategies.

DistributionDistribution

Antonio Marella, Henry Sichel, Simone Prada

Distribution Distribution

Antonio Marella, Henry Sichel, Simone Prada

Step 1Step 1:: pull strategy, according to interest generated by viral pull strategy, according to interest generated by viral marketing, especially by e-commerce and virtual channels; marketing, especially by e-commerce and virtual channels;

Step 2Step 2:: exclusive distribution by specialized owned or franchising exclusive distribution by specialized owned or franchising shops (like Apple Stores);shops (like Apple Stores);

Step 3Step 3: : push distribution, spreading through organized distribution push distribution, spreading through organized distribution (white-appliances distribution model).(white-appliances distribution model).

Distribution Distribution StrategyStrategy

BeehiveBeehive

DistributionDistribution

Antonio Marella, Henry Sichel, Simone Prada

Step 1Step 1:: high unitary-value client, sales based on the same starting high unitary-value client, sales based on the same starting channels of the Beehive (e-commerce, virtual channels);channels of the Beehive (e-commerce, virtual channels);

Step 2Step 2:: initial distribution (P.O.P., Alixir-Barilla model) through initial distribution (P.O.P., Alixir-Barilla model) through organized distribution, paying attention to the possibility of developing organized distribution, paying attention to the possibility of developing a vast market based on online-sales;a vast market based on online-sales;

Step 3Step 3: : mass diffusion using organized distribution and web focalizing mass diffusion using organized distribution and web focalizing on fidelity strategies to opposite competitors.on fidelity strategies to opposite competitors.

ReagentsReagents

Distribution Distribution StrategyStrategy

Antonio Marella, Henry Sichel, Simone Prada

Let us talk about Let us talk about Henkel’s profits…Henkel’s profits…

•Beehive:Beehive: high unitary price,low turnover;high unitary price,low turnover;

•Reagents:Reagents: low unitary price,high turnover (regular cash low unitary price,high turnover (regular cash flow);flow);

•Software:Software: periodical fee updates;periodical fee updates;

•Brevets:Brevets: useuse licences could be sold to interested licences could be sold to interested subjects.subjects.