Venture Concept Number 2

For those who do not own a luxury vehicle, their car seats may provide inadequate comfort on long journeys.  Indeed, the people I interviewed who did not own a luxury car almost all affirmed my belief that this opportunity exists.  Since the majority of road users do not own luxury vehicles that offer more comfort on long drives, I think that the size of the potential market is large.  The only question is, out of all the people whose vehicles lack comfort, how many of them are dissatisfied enough to seek out a solution to the problem?  Out of the customers I interviewed, many of them did say they would be interested in my product, but none of them were currently using a competitor’s product to solve the problem.  With this in mind, I think my opportunity is medium-sized; I would not call it big or small.  My potential market consists of middle-class Americans throughout the country who travel long distances regularly and own a non-luxurious vehicle.  This opportunity has been around for a long time, and the “window of opportunity” likely won’t be closing within the next ten years.  Eventually though, if car ownership declines and autonomous ride-sharing services become popular, the size of my market would decline, so I would want to exploit the opportunity before then.  People who are currently satisfying this need are using cushions and padded seat covers to improve comfort, and unless their current solution breaks or they get a new car, I don’t think they would be likely to replace it with my product.

            My padded seat covers that I am offering to solve this problem are incrementally innovative.  There are plenty of padded cushions and seat covers on the market already, but the majority of them are not very good-looking.  My padded seat covers will be designed to look as great as they feel and offer a level of customizability unmatched by competitors.  Each seat cover will have its bottom stuffed with plush memory foam to provide the extra comfort and support needed to make long trips enjoyable.  Customers can choose one or two different materials for the outer layer, and options include vegan imitation leather, durable cloth, alcantara, and premium full-grain leather.  Customers can choose from four standard colors which are saddle brown, black, grey, and white.  At an added cost, customers can choose a premium or custom color, specify contrast stitching, choose stitching patterns, or select bi-color layouts for their seat covers.  The seat covers are sold for a vehicle’s two front seats as standard, but the back seats can also be done for an additional cost, which varies depending on the amount and size of back seats to cover.  Each customer submits their vehicle’s make, model, and year so that we can obtain the correct dimensions to make their seat covers fit the vehicle.  The standard price of two front-seat covers is $100 for either imitation leather or cloth material.  Choosing alcantara adds $40, and premium full-grain leather adds $400.  Having a combination of alcantara and full-grain leather is $300 extra, while a combination of alcantara and imitation leather is $30 extra, and a combination of imitation leather and cloth adds no extra cost.  Choosing a premium color adds $20, a custom color adds $50, and choosing a two-color layout adds $50.  A stitching pattern adds $25-$150 depending on its complexity while getting the stitching in a contrasting color adds $25.

            People will buy this product because it is priced competitively relative to other premium padded seat covers on the market, but it offers a level of personalization that my competitors do not.  In America especially, many individuals crave the ability to be unique and express themselves, hence why products like custom t-shirts and phone cases have enjoyed so much success.  I think it will be hard to get people who already have padded seat covers to switch to my product, as long as they are satisfied with the ones they own.  I would mainly focus my marketing efforts on getting people who don’t already have padded seat covers to buy mine since they are high-quality, comfortable, stylish, and customizable.  My primary competitor is Rixxu, who also makes very nice-looking, high quality, padded seat covers.  Their weaknesses include poor installation instructions, lack of social media presence, and the use of “universal fit,” which means that for some cars, the covers do not fit well.  Packaging, distribution, and business location will play a minor role because my business will sell all my products online.  My price point is very important because it keeps my business competitive with rivals.  Customer support and customer experience are vital and will be my venture’s “secret sauce,” along with the customizability that I am offering.    I noticed reviews of competitors complain about the lack of post-purchase support.  Each customer will have access to live chat where a real person can rapidly respond to their concerns.  Additionally, customers will receive email notifications regarding the status of their order, including photos of their covers once they are produced.  Customers will also be able to interact directly with the company via our social media pages.  Another big advantage that I have, compared to other startups, is that I have a very good relationship with my former boss, Peter, who is a very successful entrepreneur.  He's very good and growing businesses as well as buying, selling, and merging them.  His guidance and support would be extremely helpful to successfully launching and growing my business.  Once my company has grown, I would probably have around 50-100 employees including accountants, human resources, customer service, equipment operators, operations managers, stockers, quality control, designers, information technology, marketing, and salespeople.  The next thing for my venture would be to produce other custom interior components, like steering wheels, carpets, floor mats, and headliners.  After launching successfully, I would like to have grown this venture to the point where I am profiting at least $200K per year and selling nationwide after 5 years.  It would be nice to eventually sell the company for at least $10 million, and then I would like to invest that money and live off some of that passive income while working a fun job like being an instructor at the Porsche Experience Center.  I would like to make my first million within the next ten years, and if this venture is successful, it could help me achieve that.

2) The feedback from my first venture concept emphasized the importance of pricing my product right.  They said that my estimates look good, but if I use more of my resources from my previous assignment (My Venture's Unfair Advantage), then I could make even more.  They also liked that I had goals and that they seemed realistic.  From my What's Next assignment, the feedback I got was very positive.  They liked that I had goals for the future, and they thought it could be very successful if my first product succeeds and my company continues to grow.  They also thought that good companies would invest with me because of the problems my product solves.

3) The main thing I changed from my first venture concept is that I placed greater emphasis on my Venture's Unfair Advantage.  The feedback on my post referred to that assignment, and I realized that I should have emphasized my unfair advantage as part of my "secret sauce" in my venture concept.  So in my final paragraph, I added my relationship with my former boss as part of what gives my company a competitive advantage, and I explained how it'll help me succeed.  I also just re-read the whole thing and changed the wording of a few sentences to make it nicer to read.

Here is a picture of a nice set of padded seat covers made by Rixxu, my primary competitor.