UNIVERSITY SAINT ESPRIT OF KASLIK

Faculty of Business Science

Marketing Research:
Hamster Shredder

Prepared by: AZOURI Marwan

Presented to: Dr. YAKHNI

KASLIK
2010
 1. Introduction:

In a changing market, staying competitive often requires the

development of new product. In a changing environment that we
are facing nowadays, companies are more drifting to go green
products.

That’s why I came with an idea, of franchising a new product that

is eco & energy efficient.

This product is called the Hamster Shredder.

2. What is a Hamster Shredder?

The hamster shredder is designed by ‘Tom Ballhatchet’, he is

probably so much a Hamster fan that he designed this cage that
come complete with a shredder machine equipped at the upper
part of the hamster steel cage.

Just like what the nature call, Hamster is especially love to play
with small size papers like the shredded document papers. Thus,
inspired the designer to fuse the two equipment up resulting in one
useful and fun to use office equipment.
 3. The 4 P’s:

Product:

The hamster shredder has a large range of varieties in terms of

size and design. The quality that is used for the shredder machine
is high quality with a low cost (made in china).

Price:

For the price as shown on the internet the whole package will cost
20 euros (25$), considering that we are going to ship it to
Lebanon, the net price will be no less than 27$ per piece. The
dealer in England told me that he could sell me at a price of 10
euros if I ship more than 100 piece of his product (13$). Shipped to
Lebanon this will cost me 15$, and with a gain margin of 2$ it will
cost me 17$ all cost included with the gain margin.

Place:

The product will arrive to my customers with the help of DHL.

Considering that le Veto is excited to get exclusivity. The product
will be stored at my place, for the first phase, if the product will
reach the expected boom; I will open my own store
(cost 0$ considering that I have a place already).

Promotion:

The promotion will be done by le Veto through out his clients, and
proper Public Relation. (If le Veto did not take the exclusivity
package). It will be channeled through Public relation, phone calls
and social networks.
 4. The Survey:

I’ve conducted I survey, for my new product, with all the pet stores
that are near my geographical area. This survey includes people
and pet shops.
 5. The result of the Survey:

The survey is done with the participation of 15 person including,

shop owners (pet shops).

What factors motivates you to buy my product?

13% Price
13%
67% 7%
Value

Brand Name

Energy
Efficient

Do you find that the price is right for such a product? (17$ this is
the price that my contact in England gave me, if I take more than
100 piece of his product.)

20%

Yes

80% No

6. The problem & the solution:

After reading the survey and studying the data, I found that the
main problem in my new product is the price, because the average
price of a cage for hamsters cost 10.000 LBP and the wood shreds
will cost on a yearly basis 30.000 LBP, if we are buying them from
a lumber mill, an overall cost of 40.000 LBP (26.66$). As the
Survey has shown, my entire potential customers have shown the
same negative result for the price. After this result I did a research
on how much will the cage cost me if I build it in Lebanon,
considering that in Lebanon the cost will be for sure less than in
the Europe countries.

After my research, I found out that the total cost of a hamster cage,
will cost me no more than 5 000 LBP (3.33$), VAT included, if I
ordered more than 60 cages.

After the research on the cost of the cage, I took me like 1 hour to
gather all the information about the cost of a little non-electric
shredding machine. The cost will be no more than 1.75$ all cost
included, the shipping and the taxes, because the non-electric
shredding machine in china cost no more than 0.65$. If I buy a big
quantity the cost will be reduced to 1.12$ / piece.

Taking into consideration that the total cost of the product will cost
me no more than 4.45$ (including the cage, and the shredding
machine), which mean 73.82% less than the price offered by my
contact in England (17$) for the 100 + package.

After this research I concluded, that I should produce this product

in Lebanon, which will cost me 73.82% less than buying it from
England and shipping it to Lebanon.