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Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - IDEA.k (Industrial Design Easy Assembly Kit)

Teaser

Summary

\"IDEA.k is a strategic project designed to allow us to regain market share in the economy packaging machine market and increase brand recognition. Redesigning our simpler machines as \"\"flat-pack\"\" assembly kits has several advantages enabling us, a European company, to compete with low-cost, extra-EU manufacturers that dominate the budget packaging machine market and begin to threaten the premium segment. The major advantage is that final assembly will be done by distributors, thereby converting the cost of this work, and its contribution to the final price, to lower, local rates in target markets. The kit is cheaper to produce than our conventional economy units and is lighter, reducing the transportation costs and carbon footprint. These savings allow us to maintain a competitive price compared to low-cost, non-EU manufacturers. With this new business model, distributors also benefit, not only in the margin they can charge on the finished machine and their assembly work, but also developing a profitable service relationship with the final customer. While the unskilled assembly work will be moving outside Europe, the higher-added-value, skilled manufacturing work will stay in the EU with Mac Due. Although we will be targeting the price-sensitive, economy segment of the market with IDEA.k, we expect the reputation of EU manufacturers for producing high-quality, premium machines will work in our favour, and that IDEA.k will create brand awareness for Mac Due, so that IDEA.k customers will, in the future, come to us for premium solutions as their businesses grow.\"

Work performed

During this feasibility study we have studies the technical feasibility and commercial viability, including all the associated risks. This report contains a detailed market study and stakeholder analysis, culminating in the definition of our commercial strategy. A freedom to operate analysis has revealed no particular intellectual property barriers for the exploitation of IDEA.k. Finally, concluding that our project is feasible and can have an important impact for our company, we have developed a preliminary work plan for the Phase 2 proposal we plan to prepare.

Final results

The lower cost structure of extra-EU manufacturers has heavily eroded market share in the markets for low-cost goods it almost every area. Their success in this area has allowed them to turn their attention to the rest of the market as well. With IDEA.k, Mac Due is an EU manufacturer and employer actively working to redress this situation.