OP P OR TUNI TY ANAL YSI S

ACTI VI TY 2 P ACK E T

NAME:_____________________________________________________________________

EXPERT GROUP (CIRCLE ONE):

DEMAND INNOVATION

FEASIBILITY EXTERNAL INFLUENCES

CONTENTS:

Opportunity Analysis Definition Sheet...………………………………………………………………..........2

Consultant Brief………………………….………………………………………………………………………4
Notes on Video………………....………………….……………………………………………………………5
Expert Group Note-Taking Sheet…......……………..……………………………………………………….6
Expert Group Info Sheet – Demand.…………….……………………………………………………………7
Expert Group Info Sheet – Innovation...……….…………..…………………………………………………9
Expert Group Info Sheet – Feasibility...……….…………………………………………………………….11
Expert Group Info Sheet – External Influences.………………….…………………………………………13
Present Your Findings...……………….………………………………………………………………………15
 OP P OR TUNI TY ANAL YSI S DE F I NI TI ONS

DEMAND
There is demand for a product if there are people who are willing and able to buy it. This means
they need or want the product and they will pay for it.
It is not enough that people like it - they actually have to buy it. For example, many of us want a
new Ferrari but most of us don't have enough money to actually buy it. So that doesn’t count as
demand! Also, we may claim to love the idea of a product (a healthy salad) but when we go to
the store we buy an alternative (a bagel) that we find better (tastier).

INNOVATION
Innovation involves taking inventions and turning them into a product that can be sold to
customers. Innovation is sometimes confused with invention, which is creating something brand
new, creating new things for an existing product, or finding a new way (process) to make things.
The microprocessor was a great invention but by itself is was just another piece on the circuit
board. The multiple ways it has been used to create hundreds of thousands of products is where
innovation comes in!
The best innovations can radically change the way things are made and consumed. Think of the
digital camera. Digital technology already existed but engineers at Kodak used it to make the
first digital camera where you could view pictures on the display, store them, and upload them
to a computer. It was the start of a completely new way to take, store, edit, and print photos
and completely revolutionized the photography and film industries.

FEASIBILITY
Feasibility is all about deciding if making and selling a new product idea is really possible
(feasible), given the technology and resources available to the entrepreneurs.
To make this decision, entrepreneurs need to understand what is needed to make the product
(money, technology, equipment, skills, staffing) on a large enough scale that makes it possible
to earn a profit. They also need to know if it is possible to get this final product to the customers
so that it can be easily purchased. This often involves finding ways to make sure the right
stores/outlets are willing to carry the product. If customers can’t buy it easily they will use
alternatives!

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EXTERNAL INFLUENCES
Entrepreneurs do not develop new product ideas without thinking about the world around
them. They act upon and react to changes in the wider world. These changes in the wider world
(business environment) are known as external influences. External influences change over time,
and trends or patterns can be identified in these changes. Entrepreneurs look for these trends to
spot new opportunities for products and services. For example, in recent years, people have
become more concerned about their health. This has opened up opportunities for a wide range
of health-related products like vitamins and fitness tracking devices.
The main external influences to consider are known as STEP:
• Social Changes – how consumers, households and communities behave
• Technological – changes in production processes and product innovation
• Economic – changes in income levels, taxes, and availability of finance
• Political & Legal—changes in government policy and laws
In more recent years many entrepreneurs have started to consider:
• Ethical – changes in what society regards as morally right or wrong
• Environmental - changes in how we use resources and their impact on our
environment

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 CONSUL TANT B R I E F

You are a team of expert entrepreneurial consultants. Entrepreneurs and businesses hire you to
help them make important decisions about their product ideas.

Skipping Rocks Lab, in London, UK has been working on solving a global problem - the problem of
plastic use and waste. They have focused their efforts on developing an alternative to plastic
water bottles and have now developed a “water orb.” The water orb, called Ooho, is a fully
biodegradable packaging made out of seaweed. After having carried out extensive research, making
many prototypes, and doing some customer testing, they are now deciding whether to launch the
water orb for sale. Also, if they do launch it, they want to know how they can make it a success.

They have asked your team to carry out an Opportunity Analysis and to advise them on whether the

Opportunity analysis is the process of deciding (based on a number of different

factors) whether an idea represents a real market opportunity. A favorable
opportunity analysis may lead to the product or service being launched for sale.

A market opportunity is one that:

• Can realistically be turned into a product or service (technology and resources
exist or can be obtained)
• Meets the needs of a group of customers who will be willing to buy the product
• Can be priced so that it that generates sufficient income and profit for to be
attractive to the entrepreneur and any investors.

Ooho should be launched, and if so, what they should do next.

1. Rodrigo Garcia Gonzalez, one of the entrepreneurs who developed the Ooho, has put together a
presentation for you so you can learn more about the problem of plastic bottles and the Ooho.
As you watch the presentation, complete the Video Presentation questions on the Note-Taking
Matrix.
2. Break out into your expert groups to consider each of the different parts that make up
Opportunity Analysis (these are Demand, Innovation, Feasibility, and External Influences). Make
notes to bring back to your consultant team.
3. Share your expert findings with the rest of your consultant team.
4. As a team, look at all the information and analysis you have gathered. Make a decision as to
whether the Ooho is a market opportunity or not.
5. Use the Present Your Findings Guide to help you create a report for Skipping Rocks Labs.

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 E XP E R T GR OUP I NF O SHE E T – DE MAND
You are a group of experts working to advise entrepreneurs on the likely demand for their product
ideas. Today you will focus on whether the Ooho Water Orb will have enough demand to make it
successful.

DEMAND
There is demand for a product if there are people who are willing and able to buy it. This means
they need or want the product and they will pay for it.

It is not enough that people like it - they actually have to buy it. For example, many of us want a
new Ferrari but most of us don't have enough money to actually buy it. So that doesn’t count as
demand! Also, we may claim to love the idea of a product (a healthy salad) but when we go to
the store we buy an alternative (a bagel) that we find better (tastier)! Will people really buy the
Ooho instead of bottled water?

DEMAND FOR BOTTLED WATER IS RISING

“Sales revenues for the U.S. bottled water market in 2016 were nearly $16 billion, a 7.4%
increase over the previous year.”
http://www.bottledwater.org/economics/bottled-water-market

“Americans now drink astonishing amounts of bottled water: In 2015, we bought the equivalent
of 1.7 billion half-liter bottles of water every week. That’s more than five bottles of water for
every man, woman, and child in the country every single week. A typical family of four is going
through one of those shrink-wrapped 24-packs of bottled water each week.”
(http://news.nationalgeographic.com/2016/04/160420-bottled-water-sales-record-high-despite-
environmental-opposition/)

“There are many attributes that contribute to bottled water’s undeniable appeal to U.S.
consumers,” said Chris Hogan, IBWA vice president of communications. “Among them are
bottled water’s healthfulness, convenience, reliability, and safety.”
http://www.bottledwater.org/economics/bottled-water-market

“Unlike bottles, single-gulp water (the Ooho) is not something most of us need or would even
find a way to use on a daily basis.”
http://bgr.com/2017/04/13/ooho-water-balls/

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In your group, discuss the questions below to help you decide if there is likely to be enough demand
for the Ooho to make it a success. Make notes of your answers on the Opportunity Analysis Expert
Group Notes sheet so you can share with your consultant team.

1) If the Ooho is launched, who do you think the customers would be? Try to describe/create a
picture of these different groups of customers by thinking about:
I. How old would they be?
II. What is their lifestyle like - what type of job, how much income?
III. What interests or hobbies do they have?
IV. Where would they live?

2) Would the people you have described be willing to pay for the Ooho? If so how much do you
think they would they pay?

3) At the moment, Skipping Rock’s Lab is focusing specifically on the Ooho being a replacement for
the small, single-serve bottles of water (8-16oz) people buy when they are on the go.
I. Who do you think the customers are for these single serve bottles of water?
II. Why do you think people buy these small bottles of water?
III. Would the current customers for these bottles of water switch to the Ooho if it was launched?
Why?

4) Is there anything that Skipping Rocks Labs could do to get people to buy the Ooho rather than
buy plastic bottles of water? Could they actively create demand for the Ooho?

DECISION POINT:
Look back on your answers to the questions. As a team of experts, weighing up the evidence you
have do you think that the Ooho will have enough demand to make it a successful product? Give
reasons for your decision.

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E XP E R T GR OUP I NF O SHE E T - I NNOVATI ON
You are a group of experts working to advise entrepreneurs on innovation and change. Today you
will focus on deciding whether the Ooho Water Orb is a real innovation in the water industry— one
that could change the way people consume water and the way producers make and sell water.

INNOVATION
Innovation involves taking inventions and turning them into a product that can be sold to
customers. It is sometimes confused with invention, which is creating something new, creating new
things or finding a new way (process) to make things. The microprocessor was a great invention
but by itself is was just another piece on the circuit board. The multiple ways it has been used to
create hundreds of thousands of products is where innovation comes in!

The best innovations can radically change the way both consumers and producers do things. Think
of the digital camera. Digital technology existed but engineers at Kodak used it to make the first
digital camera where you could view pictures on the display, store them, and upload them to a
computer. It was the start of a completely new way to take, store, edit, and print photos and
completely revolutionized the photographic industry!

The Ooho - Innovation?

Skipping Rock’s Lab are using a known processing technique for seaweed and trying to turn it into
a product that meets customer needs while reducing plastic waste. It is natural, biodegradable,
edible, and flavorless.

“If the bubble biodegrades in 4-6 weeks, the shelf life seems minimal.”
http://www.designboom.com/technology/skipping-rocks-lab-ooho-edible-water-bottle-04-12-2017/

“Skipping Rocks Lab’s current mission to make Ooho a staple of festivals, marathons, and other
outdoor events is a great start, since those are situations in which single serving beverages without
waste are well suited, but the wider goal of becoming ‘the global solution to water and drinks on-
the-go’ is really an impossible task.”
http://bgr.com/2017/04/13/ooho-water-balls/

“In the future, the orb could hold a range of different liquid products, including soft drinks, juice,
alcohol, and even makeup.” http://anonhq.com/squishy-water-orb-100-per-cent-biodegradable-edible/

“It can be used for other things such as supplying astronauts with a new form of consuming
nutrients while in space as the nutrients would be contained within the edible bottle eliminating
the need for trash removal of their food containers”
https://www.designboom.com/technology/skipping-rocks-lab-ooho-edible-water-bottle-04-12-2017/

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In your group, discuss the following questions to help you decide if the Ooho is likely to be a
successful innovation in the market for packaged water? Make notes of your answers on the Expert
Group Note Taking sheet so you can share with your consultant team.

1) What makes the Ooho Water Orb unique? Can you describe what is new and different about the
Ooho compared to the alternatives (plastic bottles/refillable containers)?

2) Are any of these unique qualities likely to be attractive to potential customers? If so which ones?
How can Skipping Rocks Lab emphasize these qualities?

3) Do you see any problems with the design of the Ooho or the way it is made that are likely to stop
customers from buying it? Can you give reasons?

4) Do you think Skipping Rock’s Lab can overcome these problems? What do they need to do?

5) Do you think there are other potential products or innovations that the Ooho materials and
process could be used for? If yes, describe them.

DECISION POINT:
Look back on your answers to the questions. As a team of experts, weighing the evidence you have,
do you think that the Ooho represents a true innovation in the market for packaged water?

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 E XP E R T GR OUP I NF O SHE E T - F E ASI B I L I TY
You are a group of experts working to advise entrepreneurs on the feasibility of their product ideas.
Today you will focus on deciding whether Skipping Rocks Labs has the right resources to produce
and sell the Ooho in a big enough quantity to be profitable.

FEASIBILITY
Feasibility is all about deciding if making and selling a new product idea is really possible
(feasible), given the technology and resources available to the entrepreneurs.

To make this decision, entrepreneurs need to understand what is needed to make the product
(finance, technology, equipment, skills staffing) on a large enough scale that makes it possible to
earn a profit. They also need to know if it is possible to get this final product to the customers -
so that customers can purchase it with ease. This often involves finding ways to make sure the
right stores/outlets are willing to carry the product. If customers can’t buy it easily they will use
alternatives!

For the Ooho you need to decide if Skipping Rocks Lab really has the resources and capacity to
make the Ooho on a large scale, and if it is possible for them to find ways to get it to the
customers that would want to buy it.

Is the Ooho Feasible?

Skipping Rocks Lab’s aims to sell Ooho at festivals, marathons, and other outdoor events where
single serving beverages without waste would work well. http://bgr.com/2017/04/13/ooho-water-balls/

“If the bubble biodegrades in 4-6 weeks, the shelf life seems minimal. By the time the product is
produced, transported to stores, and sold to the consumer, the bubble seems like it would be
near the end of its life.” http://www.designboom.com/technology/skipping-rocks-lab-ooho-edible-water-
bottle-04-12-2017/

“They’re developing the technology so edible water can be made on the spot so you could walk
into a place such as … Starbucks, pick up something to eat and grab an Ooho, too.”
http://www.independent.co.uk/life-style/food-and-drink/edible-water-eating-ooho-skipping-rocks-lab-no-
packaging-plastic-pollution-world-h20-a7682711.html

“’We’re actually talking to some of these chains to provide the technology so they can produce
Ooho and sell them as they would fruit. And that’s really where we see a lot of potential in the
next few years.’” http://www.independent.co.uk/life-style/food-and-drink/edible-water-eating-ooho-skipping-
rocks-lab-no-packaging-plastic-pollution-world-h20-a7682711.html

The technology and machinery to manufacture the Ooho on a large scale is currently being
developed.
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1) What resources (finance, equipment, skills) are needed to make the Ooho ready for sale?

2) Do you think Skipping Rocks Labs can get these resources to make the Ooho? How easy is it
likely to be?

3) Skipping Rocks Labs is in the process of developing the machinery to manufacture the Ooho on a
larger scale. How important is it that this is developed before the launch of the Ooho?

To be successful, Skipping Rocks Lab will need to distribute the Ooho to places where customers will
want to buy it.
4) Potentially the Ooho could be sold in shops and cafes alongside bottled water.
a. Would the shop/cafe owners find Ooho attractive enough to put it on their shelves?
b. What could Skipping Rocks Labs do to get shops/cafes to stock the Ooho?

5. Another option is for Skipping Rocks Labs to sell the Ooho at music festivals and sporting events.
i. Would the organizers of such events be likely to want to sell the Ooho?
ii. What would be the benefits and drawbacks of selling at these events?

DECISION POINT:
Look back on your answers to the questions. As a team of experts, weighing up the evidence you
have do you think that Skipping Rocks Lab will be able to make the Ooho and get it to the right
places for it to be sold so that it can be successful?

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EXPERT GROUP INFO SHEET – EXTERNAL INFLUENCES

EXTERNAL INFLUENCES
Entrepreneurs do not develop new product ideas without thinking about the world around
them. They act upon and react to changes in the wider world. These changes in the wider world
(business environment) are known as external influences. External influences change overtime,
and trends or patterns in these changes can be identified. Entrepreneurs look for these trends to
spot new opportunities for products and services. For example, in recent years, people have
become more concerned about their health. This has opened up opportunities for a wide range
of health-related products like vitamins, and fitness tracking devices.

The main external influences to consider are known as STEP

• Social Changes – how consumers, households and communities behave
• Technological – changes in production processes and product innovation
• Economic – changes in income levels, taxes, and availability of finance
• Political & Legal – changes in government policy and laws
In more recent years many entrepreneurs have started to consider two other major influences:
• Ethical – changes in what society regards as morally right or wrong
• Environmental - changes in how we use resources and their impact on our
environment

External Influences and Trends Affecting the Ooho!

“’There are many attributes that contribute to bottled water’s undeniable appeal to U.S.
consumers,’” said Chris Hogan, IBWA vice president of communications. “’Among them are
bottled water’s healthfulness, convenience, reliability, and safety.’”
http://www.bottledwater.org/economics/bottled-water-market

“Within the food and beverage industry, 39% of consumers said the environment has high
influence on the beverage brand they buy. Two-thirds said they bought environmental
products—even if they cost more. As concern for the environment continues to influence buying
behavior, it will increasingly drive change within corporate America.”
http://www.huffingtonpost.com/brian-kennell/environmental-concern-emp_b_8105580.html

“The United States and many other countries such as Australia are seeing increasing pressure for
legislation to ban single use plastic water bottles. Concord, MA and San Francisco, CA have
already banned single-serve bottled water sales on municipal property. Eighteen National Parks
in the US have also enacted bans, as have an increasing numbers of college campuses.”

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You are a group of experts working to advise entrepreneurs on the external influences that are likely
to affect the success of their ideas. Today you will focus on deciding whether external influences and
their likely changes over the next few years will be favorable for the Ooho.

1. Sales of bottled water have increased significantly over the last 10 years. This has mainly been
due to trends towards healthier lifestyles. In what ways could a trend toward healthy lifestyles
benefit the Ooho?

2. There is increasing evidence that consumers are becoming more environmentally aware. How will
this affect potential sales of the Ooho? Are there any ways you think Skipping Rocks Labs can
make sure they benefit from this trend?

3. How do you think the companies that produce bottled water will respond to consumer concerns
about the environment? How could this affect the Ooho?

4. How will banning sales of bottled water impact on the Ooho? Do you think people will switch to
buying the Ooho?

DECISION POINT:
Look back on your answers to the questions. As a team of experts, weighing up the evidence you
have do you think that Skipping Rocks Lab meets the environmental and worldwide needs and
trends so that it can be successful?

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 P R E SE NT YOUR F I NDI NGS
You will provide a short report on your Opportunity Analysis findings to the founders of Skipping
Rock Labs. This report will include your decision, the reasons for your decision, and your
recommendations for what to do next.

REPORT FORMAT
Guidance on Report Content:
The Decision
Suggested approaches (feel free to use your own wording and a different answer)
• Yes, the Ooho represents a market opportunity and can be launched soon.
• The Ooho is not yet a market opportunity but can be launched in the future.
• The Ooho is unlikely to ever be a market opportunity and should not be pursued.

Explanation (reasons for your decision)

Using the notes from your consultant team’s discussion of the expert findings, explain why you have
come to your decision. Try to highlight the pieces of information or analysis that are most significant.
Below are suggested phrases. Add to and adapt these to include your most important points.

• The main advantage of the Ooho is … in addition …. It does have some problems to
overcome such as …. These should be improved before launch.

• While the Ooho is good because … the problems of … make it difficult to turn into a product
that people will buy. It is not likely to be a success.

Recommendations (next steps)

Explain to Skipping Rocks Labs what they should do over the next year. What are the next steps for
Skipping Rocks Labs and the Ooho?

• We recommend that over the next year Skipping Rocks Labs ….

• The most important next step for Skipping Rocks Labs is … followed by ….

Think about making recommendations for the company in several of these areas:
• Is there further research/information they should find out?
• Are there any changes/adaptions to the Ooho that should be explored?
• Is there any consumer testing to be done? If so, which types of people/groups should they
get feedback from? How?
• Are there any ways in which they can make the launch of the Ooho successful?
• What advertising and promotion might they use?
• Which types of customers should they target with the Ooho?
• Where should they sell the Ooho?

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• What other product developments can they investigate? If you think the Ooho is unlikely to
be successful, could they do something different with the technology they have developed?
Are there different products that could be made?

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