Presentation Link: https://docs.google.com/presentation/d/1sl9GNm_TF5ytfHAU3ex6qdxbw_IDUdd31wxCmUikkg8/edit?usp=sharing
Adaptive Tires Proposal
Brigitte Siguencia, Axel Corichi, Mahin Hassan, Pape Ba, Md Alam, Angel Acevedo Maceo, and Joseph McNally
The City College of New York
ENGL 21007
Professor Rodwell
April, 2024
Table of Contents:
- Introduction (Brigitte) ……………………………………………….…………… Page 3-4
- Technical Description (Mahin, Joseph, and Md) ………………………….………..…. 5-9
- Overview ………………………………………………………………………… 5
- Outer Tire Components ……………………………………………………….. 5-6
- Middle Layer Tire Components ……………………………………………….. 6-7
- Pressure System Control ………………………………………………………. 7-9
- Innovation Process (Axel, Pape, Angel, and Joseph) …….………………..……….. 10-24
- Financial Overview …………………………………………………………. 10-12
- Automotive Tire Market ……………………………………………………. 12-13
- Targeted Audience ……………………………..…………………………… 13-14
- Investment Proposal for Innovation ……………………………………………. 14
- Adaptive Tires Composition ………………………………………………… 15-16
- Cost …………………………………………………………………………. 16-22
- Start-up (3 months) and First-Year Estimated Operational Cost …… 16-18
- Labor Cost ……………………………………………………………… 18
- E-Commerce Website ………………………………………………. 18-20
- Overall Cost of Product …………………………………………….. 20-21
- Marketing/Branding ………………………………………………… 22-24
- Evaluation Technique ………………………………………………………. 24-25
- Task Schedule ……………………………………………………………… 25-26
- Summary (Angel) …………………………………………………….….….…………. 27
- Appendices (Brigitte) ……………………………………………….…….………… 28-29
- Appendix A …………………………………………………………………….. 28
- Appendix B …………………………………………………………………….. 29
- References (Brigitte) ………………………………………….……….……………. 30-34
Introduction
For many car users who experience many weather conditions throughout the year, tires are a tedious part to maintain as that is one of the more constant things you should monitor. Different tire pressures are needed for different factors such as the vehicle weight, the tire size and type, the terrains one will be driving through and the driving speeds the driver goes at. For example, softer terrains require lower pressures compared to rough terrains that require higher pressures to work more effectively. There are also the issues of the changes in pressure being affected by the weather, a 10° change in temperature can cause the tire to lose a pound of pressure. Proper tire pressure needs to be maintained. Tires also have a natural tendency to lose a pound of air pressure every month.
Adaptive Tires can create a solution for this difficulty presented to many drivers: a tire adjustable to different pressures that are needed. When the user needs to have higher pressure for different terrains or weathers, or simply tire pressure issues, the user can select the pressure needed. The tire has a built-in system that can release and take in air for the user’s needs. The user can adjust the pressure from their control system and the control system gives information to the tire’s pressure.
The tire would look like an ordinary tire from the outside but the inside of the tire is what makes the difference in our consumer’s daily use.
The pressure system implemented into our adaptive tires will differ immensely from regular/all-terrain tires which are currently the common tires in the market. All-terrain tires provide safe and efficient driving while on the road and off the road. These tires come in different sizes and require different levels of pressure due to the many terrains they can encounter. Proper pressure in the tires provides safety as the tires will not wear out and provide an adequate level of traction and friction. However, all of these elements only allow for one level of pressure to be inputted into the tires at a time, so the same amount of pressure won’t be as adequate going from dirt to rocky to snowy terrain. Our Adaptive Tires are the most efficient when taking this factor into account due to the different pressure settings that the tires can achieve and be manipulated by the driver themselves providing the best and safest driving experience.
Technical Description
Overview
Tires are complex assemblies of specialized components that are precisely engineered to provide the best performance, safety, and longevity in a wide range of driving circumstances. In this technical description, we delve into the complexities of tire production, breaking down the essential elements that make up these vital vehicle-road interfaces. In every component from the outermost tread patterns to the innermost or middle layers, we reveal the engineering wonders that allow tires to grip, roll, and withstand the rigors of various driving conditions.
Figure 1: Mock Design
Outer Tire Components
Figure 2: Outer Tire
Tread: Made of synthetic and natural rubber. The tire tread is the area of the tire that makes contact with the road. Provides traction and turning grip for the tire and is designed to resist wear, abrasion, and heat. It has an average tread depth of 8 to 9 millimeters (10/32nds to 11/32nds of an inch). It impairs your vehicle control, stability, and braking performance.
Belts: Rubber-coated layers of steel, fiberglass, rayon, and other materials are crisscrossed at angles between the tread and plies to hold them in place. Belts protect against punctures and help treads stay flat and in contact with the road. Belts reduce squirm to improve tread wear and resist damage from impacts and penetration. Their primary purpose is to provide stability and strength to the tread so that the tires will handle better and last longer.
Siping: Sipes are special treads within the tread. Siping is the process of cutting tiny slits across a tire’s surface to increase grip while driving in snowy, rainy, or icy weather. Siping can also assist in regulating tire heat when the road is overheated. Special slits within a tread block open as the tire rolls into the contact patch and then close, breaking water tension on the road surface and putting rubber in contact with the road
Shoulder: The shoulder on each tread is designed to protect the belt and carcass of the tire, and is where the tread and sidewall of the tire meet
Grooves: The spaces between two adjacent tread ribs are also called tread grooves. Their main objective is to displace water so that the tire and the road maintain contact
Middle Layer Tire Components
Figure 3: Middle Layer of Tire
Inner liner: This is the innermost layer of a tubeless tire, a rubber compound attached to the interior of the cord body to keep air under pressure. It has no cord reinforcement and operates as an inner tube.
Body Plies: The body plies are typically a sheet of polyester material topped with a bit of rubber. The body plies are integral to helping the tire bear weight and hold its shape. Body plies function as the structure of the tire and provide the strength to contain the inflation pressure.
Bead: A rubber-coated loop of high-strength steel cable serves as the bead. They’re made of copper, brass, or bronze-plated high-tensile steel wires wound into a rubber band. It offers the tire the strength it needs to be seated on the wheel rim and to withstand the forces exerted by tire mounting equipment when the tires are mounted on rims. In other words, the tire beads are there to prevent the tire from sliding out of place while it is in motion.
Sidewall: The sidewall provides lateral stability for the tire, protects the body, and helps keep the air from escaping. The sidewall of a tire is the region on the side of the tire between the bead and the tread. It serves as a protective coating for the cord body. The tire’s information is printed on the sidewall. This information covers tire size, load index, and speed rating. Sidewall rubber compositions are engineered to withstand damage from ozone, cuts, and snags.
Pressure System Control
The idea behind the Remote-Controlled Pressure System is to remotely control the inflation pressure of each tire for better performance on different surfaces or environments such as climates, terrains, rain, snow, etc. The remote control will communicate with sensors on each wheel to either tell the pump to inflate or the valve to deflate the tire. For example, for light off-roading on mainly hard-packed surfaces, a tire pressure of approximately 20-25 psi is needed. For more challenging terrains like deep sand or mud, dropping it further to 15-20 psi can increase traction. On particularly rugged terrains with rocks or sharp objects, 25-30 psi is recommended to prevent punctures.
Figure 4: Pressure System
Wheel Valve: Each wheel has a valve at its end. For dual wheels, the valves are normally simply linked to the outer wheel, allowing the pressure between the two tires to be balanced. The wheel valve’s duty includes isolating the tire from the system while not in use, which relieves pressure on the seal and extends its life. The wheel valve also allows for on-demand inflation and deflation of the tires.
Electronic Control Unit (ECU): The brains of the system are located in an electronic control unit placed behind the passenger seat. It interprets commands from the driver, keeps track of all system signals, and instructs the system to check tire pressure every ten minutes to ensure that the chosen pressure is being maintained. The pneumatic control unit receives signals from the ECU and uses them to directly operate the air system and wheel valves. Additionally, the pneumatic control unit has a sensor that sends tire pressure data to the ECU.
Operator control panel: Through an operator control panel, the driver can choose tire-pressure modes based on the situation at hand. Current tire pressures, selectable modes, and system status are shown on this dash-mounted panel. When the driver selects a tire pressure setting, signals from the control panel go to the electronic control unit, which then goes to the pneumatic control unit, which goes to the wheel valves.
Speed Sensors: Tire pressure should be increased while cars are traveling at high speeds (such as on a highway) to avoid damage. This is where the speed sensors come in, which transmit vehicle speed data to the electronic control unit. If the vehicle continues to travel at a greater speed for an extended period of time, the system automatically inflates the tires to the proper pressure for that speed.
In short, the pneumatic control unit receives instructions from the electronic control unit to check the tire’s current pressure and inflate or deflate it to the driver’s chosen pressure. When the system detects that inflation is required, it first makes sure that the brake pressure reserves are at the proper level. If they are, it opens the wheel valve slightly to permit inflation. The device gives the wheel valve a small suction if the tires are overinflated. The valve closes when the pneumatic control unit detects that the proper pressure has been reached. Unlike regular standard tires which require manual pressure checks and adjustments, our tire allows users to conveniently modify pressure settings wirelessly via a handheld controller. The incorporation of a pressure sensor within the tire structure is another unique feature. This sensor continuously checks the pressure in tires in real-time, giving drivers insightful information on all the tires’ statuses.
Innovation Process
Financial Overview
Projected sales and revenue gained for start-up and first year of operations
Cost and revenue per Unit
| Product | Manufacturing cost per Unit | Retail Price per Unit | Markup Equation: M(markup) =S(selling Price) -C(production cost)(See Appendix A) | Markup Rate of cost equation: R(rate)=M(markup) over C( production cost)(See Appendix A) |
| Adaptive Tire | $75.15 | $200 | $124.85 | 166.13% |
Figure 5a: Cost and Revenue per Unit
Cost and revenue per bundle (4 tires)
| Product | Manufacturing cost per Bundle | Retail Price per Bundle | Markup Equation: M(markup) =S(selling Price) -C(production cost)(See Appendix A) | Markup Rate of cost equation: R(rate)=M(markup) over C( production cost)(See Appendix A) |
| Adaptive Tires | $300.6 | $750 | 449.4 | 150% |
Figure 5b: Cost and revenue per bundle
Figure 5c: Global Tire Production, by Volume 2014-2024
The automotive tire industries and companies have historically benefitted from an extremely lucrative and profitable market. Attributed to various factors, such as the market’s continuously increasing demand, due to the various utilization of automotive tires ( longevity, essentiality to the movement of a vehicle, etc.), and technological advancement within the automotive tire( tread design, emerging materials) or mechanics where an automotive tire is essential components. Furthermore, the production and gross of this market have increasingly grown over time. For instance, the volume of tire production by million tonnes has increased from 2014 to 2024, from 15,850 to 22,750; experiencing again a 43% increase since then. (Figure 4c)
In relation to our innovation, the potential profit viability is extensive given the ever-expanding automotive tire market. Our innovation is poised to succeed within this competitive market because of our strategic production cost markup rates, pricing strategies, and innovative functionalities. With a Markup rate of 150% and 166%, our product guarantees great profit margins to potential investors. (Figures 4a and 4b) As production cost ensures that our selling price is substantially higher than our production cost. By aligning our selling price at 200, with the average market price of regular automotive tires, we maintain a competitive stance within our market because our products offer consumers a smart automotive tire at an affordable rate. Ensuring consumer demographics expand within our market and increase our product demand because of our product’s accessibility and features. Selling our product through our own e-commerce store and major automotive retail store.
Automotive Tire Market
Automotive tires have evolved to become a staple in contemporary society, establishing their presence and impact as a norm across various sets of industries and cultures. Providing users with a wide construct of utilizations and immense versatility. Due to their nature, the automotive tire market since its inception has been a profitable industry; experiencing constant growth throughout time due to the ever-growing demand for these essential products. For instance, the international automotive tire market was valued at USD 245.53 billion and exhibited a compound annual growth rate (see Appendix B) of 7.42% in 2022; estimated to reach USD 374.51 billion by 2028. In the United States of America, the domestic market was valued at USD 48.68 billion and displayed a 5.81% CAGR in 2022; the market is forecast/projected to grow to USD 67.51 billion by 2028. Though a profitable market, the automotive tire market is conglomerated controlled by 3 main powerhouses, which exhibit similar traits: long lineage, huge quantity of production facilities and labor force, and have established large-scale operations internationally. The three most renown and profitable corporations are: Bridgestone corporation( based in Japan ,Valued; USD29.54 billion dollars for the year 2021), Michelin Group( based in Germany, valued: USD 28.15 billion dollars for the year 2021), and Goodyear(Main competitor, based in United states of America , Valued: USD17.47 billion dollars for the year 2021)
Targeted Audience
Allocating and understanding the targeted audience is a crucial factor for the flourishing of a business. It enables entrepreneurs to pinpoint a specific tailored marketing strategy and improve product development, through effective communication and mutual understanding between the producers and the consumers, providing entrepreneurs with illustrations of their market sphere, while providing companies with a general understanding of the consumer’s wants and needs. Our product targets a wide range of audiences; the adaptive tires self-adjusting tire pressure and size capabilities, along with its tread design are designed to address specific consumer needs across various demographics. Vehicle owners residing in a seasonal environment, with a variety of weather conditions, such as snowy, arid, muddy, and rainy climates, tend to face driving performance and safety issues throughout the calendar year. Our innovation provides consumers with an enhancement in their driving experience; improving the driver handling and the vehicle traction across a variety of surfaces, thereby our innovation correlates to improving the driver’s safety and reducing the possible risk of accidents. Our innovative design as well, serves consumers who are physically impaired or face time constraints to replace their own tires with practical options to address this inconvenience, offering consumers a convenient product that limits and eliminates any need for manual tire adjustments or trips to the mechanic. Adaptive tire competencies to modify any terrain and durable composition extend our product’s life expectancy, in comparison to the average life expectancy of tires, which is 6 years or 50,000 miles. Eliminating the hassle of switching back and forth between seasonal tires; drivers tend to swap tires when temperatures either fall or rise from 45 degrees Fahrenheit. Businesses that manage fleet and commercial vehicle operations, such as transportation, delivery services, etc, are likely to demonstrate a keen interest in our product. Stemming from our products’ low maintenance downtime, enhancements in driving experience, and optimal performance across a variety of surfaces these businesses profit from safety, cost-effectiveness, and operational efficiency. Lastly, our product reaches the demographic of car owners who are seeking an optimal driving experience across a landscape of terrains, composed of eco-friendly materials. As previously aforementioned our product composition enables our innovation to perform highly across a diverse range of terrains, but will also be composed of natural rubbers and recyclable metals.
Investment Proposal for Innovation
Projected Cost, Sales, and Profit in Year One
| Quarters | Inventory Cost | Projected Sales | Profit |
| Launch (first three months) | $150,000 | $399,201 | $249,200.59 |
| Year one | $300,000 | $798,402 | $498,401.18 |
Figure 5d: Projected Cost, Sales, and Profit in Year One
We are seeking an investment of $535,000 in exchange for 15 percent of our company. This investment will fund and cover all of the operational and labor costs for the startup. ( Figure 5e). Due to our substantial profit margins and projected sales, our company offers strong equity value and return on investment. (figure 5d)
Adaptive Tires Composition
The adaptive pressure tires will be made up of several components similar to those of all-terrain tires with the additional materials required to implement the pressure system into them. One of the main components that make up a tire is the natural and synthetic tires that work to provide grip strength and durability.
The specific materials that will be used for the tires are going to be Natural rubber which allows all of the sensors to be protected and properly insulated, and for the tires to be usable in all of the different climates, butadiene rubber. This rubber can stay flexible even under very cold temperatures that regular tires wouldn’t withstand. This rubber also allows for the car to grip onto surfaces and protect the sensors that fill the tire with air.
The tire will consist of the first inner layer that connects to the wheel so the tire cannot get damaged. Then the second layer will be the air sensors and the air that inflates the tire. The last layer is the hard rubber that allows the tire to traverse different environments such as gravel roads, pavement, dirt, and snow. Lastly, the treads of the tire play a very important role in how the tire works and how effective the tire will actually be. The tread will allow the tire to sink into the surfaces and grip based on the direction and depth of the tread. These specific tires will have a deep tread and will face one direction allowing the tire to grip onto several different surfaces.
The adaptive pressure tires will utilize technology similar to the technology found in tire pressure monitoring systems or TPMS Sensors. These sensors function to monitor the air pressure in the tire so that it can detect when the pressure is too low or too high for adequate safe driving. Maintaining the right amount of pressure in the tires is significantly important so that a car can function efficiently and not burn more fuel than it has to by increasing rolling resistance due to under-inflated tires.
It is significant to understand the impact that different air pressures in tires have on the performance of a car depending on the kind of terrain in which it is being driven. The amount of air in the tires is measured in pounds per square inch(PSI), too much air in tires can lead to minimal contact between the threading on the tire and the road which can lead to safety issues like traction reduction and poor brake performance. Too little air can increase friction, also leading to safety issues like poor performance in the protection of the tire’s rims when in contact with obstacles while in motion. When it comes to off-terrain performance, tire pressure can vary immensely due to the different terrains that may be encountered along the way, so to provide the safest driving experience, the ability to switch air pressures in the tires would be the most efficient.
Cost
Start-up(3 months) and First Year Estimated Operational and Labor Cost
| Expenses | Start-up/Launch Expense Price Range (USD) | EstimatedExpenditure(USD) | Annual, Expense Price Range (USD) | Estimated Expenditure (USD) | First-Year Estimated Expenditure (USD) |
| Warehouse(Lease) | $4,000-$7,000 monthly | $21,000 | $50,000-$85,000 annually. | $85,000 | $85,00 |
| Equipment | $25,000-$100,000 | $75,000 | $5,000 – $10,000(Maintenance and Replacement) | $100,000 | $100,000 |
| Marketing | $112,000 | 333,360 | 333,360 | ||
| Staffing | Quantity: 14$40,000 – $60,000 | 175,000(58.333 per month) | Quantity 1440,000 – 60,000 | 700,000 | 700,000 |
| Licenses, Permits, Insurance | $50-$500 depending on location and business size | 500 | $4,000 annually | 4,000 | 4,500 |
| Launch and annual Inventory Cost | 100,000-150,00 | $150,000 | $250,000 – $350,00 | $300,000 | $300,000 |
| E-commerce Website | $52,000 | 102,500 | 102,500 | ||
| Total | $585,000 | $1,625,360 |
Figure 5e: Start-up (3 months) and First-Year Estimated Operational and Labor Cost
Labor Cost
The number of workers needed to manufacture tires can vary depending on the size and capacity of the tire manufacturing facility, in this case, we will have a small facility composed of 14 workers and several steps of production, the level of automation in the production process, and the specific tasks involved in tire production. ( Figure 4e)
1. Engineers and Designers: Responsible for tire design, and development.
2. Material handlers: Involved in sourcing, storing, and preparing raw materials for tire production.
3. Machine operators: Operate the machinery and equipment used in the tire manufacturing process, such as tire-building machines and curing presses.
4. Quality control inspectors: Ensure that tires meet the required standards for safety and performance through inspection and testing.
5. Maintenance technicians: Responsible for maintaining and repairing machinery and equipment to ensure smooth operation of the production process.
6. Data Analyst: Analyze and contextualize company data
The tires would be made in a very similar fashion to how every other tire is made, the only difference being the design and the sensors put into the tires and the dispensary to fill the tire with air. Most of the design work and physical labor would be done in factories and assembly lines. Without the use of a large warehouse for storage and big conveyor machines this product would not be possible to be made on a large scale.
E-commerce Website
| Expenses | The average price range for small to midsize businesses ( USD) | Launch( first three months)Estimated Expenditure ( USD) | First-YearEstimated Expenditures( USD) |
| Web design cost | $5,000- $15,000 | $7,500 | 10,000 |
| Back-end programming | 2,000- 25,000 | $10,000 | 15,000 |
| Data importation | 0-5,000 | 0 | 3,000 |
| content management system | 2,500 – 20,000 | 10,000 | 12,500 |
| 3rd party integration | 1,000-5,000 | 5,000 | 5,000 |
| website maintenance | 3,000-12,000 per year | 5,000 | 5,000 |
| SEO services | 12,000- 50,000 a year | 12,500(4,167 per month) | 50,000 per year |
| Website hosting: | 1,000- 6,000 per year | 2,000 | 2,000 |
| Total | 52,000 | 102,500 |
Figure 5f
For contemporary businesses, investing in a strong e-commerce website is an essential component and tool for modern businesses to flourish, enabling them to reach a vaster demographic than ever before. By investing 52,000 dollars into our e-commerce platform, we prioritize essential features, which significantly improve our company’s profitability. As an e-commerce website, it will provide our businesses and consumers with various benefits, such as marketing opportunities, and data insights regarding consumer purchase trends, feedback, and behavior, while enabling our company to reach a global consumer base through the ease of their website. Allocating most of the budget to features, third-party integration for paywalls, and login system. As well as our content management system, which enables our business to provide consumers with education and educate themselves regarding our product. Additionally, paying for a great SEO service will help promote websites by improving and optimizing the accessibility of our website through search engines. These investments on our e-commerce website are pivotal to business economic prosperity. (Figure 5f)
Overall Cost of Tire:
| Inputs | kg/tire | $/kg ( USD) | cost/tire( USD) |
| Natural Rubber compounds | 7.29 | $2.86 | $20.87 |
| Recycled Steel cord | 1.0 | $15.58 | $15.68 |
| Recycled Bead wire | 3.5 | $4.00 | $12.60 |
| Rayon Cord | 0.8 | $12.25 | $9.80 |
| Solvents | $9.90 | ||
| Energy | $6.30 | ||
| Total | 12.59 | $75.15 |
Figure 5g: Overall Cost of Tire
Regular tires cost around 100-300 dollars per tire and the cost usually comes out to be around $1000 for the entire installation process and tire cost combined. Snow tires cost less for the whole installation process and tire cost; it comes out to be around $850-$900. Our adaptive tires will cost a little bit more because of the greater utility and the convenience of not having to worry about tire pressure. Car tires usually weigh around 15 to 25 pounds and the rubber that our tires will be made out of is sold at a cost of around 2.86 cents per kilogram; with the added weight and cost of the sensors being around an extra 50 dollars per tire, this would bring our material cost to be around $75.15 per tire, with regular. Figure 5g
These costs do not include the time and money it costs to carve the treads into the tires and make sure they are designed properly for use. Tires are generally upsold at a 153% rate compared to the cost to make them, not including any installation fees that a mechanic would charge. Snow tires are sold at a similar price range but are less expensive to make which is sold at a 170% rate of the cost compared to the price to make without the installation process.
Marketing/Branding
Traditional Marketing Platforms, CPM (Cost per Mile[1,000] user)
| Traditional Marketing Platforms | The price range for a 30-second advertisement(USD | Desire Launch Ad reach: | Estimated Expenditure( USD) | First-year desired Ad reach | First-Year Estimated expenditure ( USD) |
| Television | $5-100 CPM | 1,000,000 | 10,000 | 3,000,000 | 30,000 |
| Radio | 10-$20 CPM | 3,000,000 | 30,000 | 9,000,000 | 90,000 |
| Total: | 4,000,000 | 40,000 | 12,000,000 | 120,000 |
Figure 5h: Traditional Marketing Platforms, CPM (Cost per Mile[1,000] user)
Social Media Platform Advertising CPM in 2024
| Social Media Platforms | 2024 CPM | Desire Launch Ad reach: | Estimated Expenditure | First-year desired Ad reach | First-Year Estimated expenditure |
| Meta ( Instagram and Facebook) | $6.63 | 1,000,000 | 6,630 | 3,000,000 | 19,890 |
| Youtube | $3.37 | 3,000,000 | 10,110 | 9,000,000 | 30,330 |
| TikTok | 2.53 | 5,000,000 | 12,650 | 15,000,000 | 37,950 |
| X/Twitter | $1.73 | 1,000,000 | 1.730 | 3,000,000 | 5190 |
| Total | 10,000,00 | 31,120 | 30,000,000 | 93,360 |
Figure 5i: Social Media Platform Advertising CPM in 2024
Affiliate Marketing and Content Creation Cost
| Expenses | Average Price Range(USD) | Launch estimates Expenditure (USD) | First-YearEstimated Expenditure (USD) |
| Affiliate Marketing | $5,000-$60,000+ | 20,000 | 60,000 |
| content creation cost | 1,000- 10000,000 | 20,000 | 60,000 |
| Total | 40,000 | 120,000 |
Figure 5j: Affiliate Marketing and Content Creation Cost
Marketing is a cornerstone action/process undertaken by companies that utilize a wide range of activities, such as; commercials, affiliate marketing, and persuasive rhetoric. It aims to persuade consumers to buy a specific product or to sell and distribute a company’s merchandise. When executed properly marketing provides an image to the company, which further helps drive a business’s revenue stream. Investing 112,000 into our marketing strategy is essential because it would provide a brand/face to our company and enable the rapid spread of information regarding our business to our targeted consumers. We desire to have an ad reach of 10,000,000 consumers across social media and traditional marketing platforms Distributing most of our budget into social media marketing platforms instead of traditional marketing platforms because of the platform’s large audience, cost-effectiveness, and great selective algorithms, particularly TikTok. Investing in these platforms will ensure our innovation reaches a large number of targeted consumers; potentially influxing our sales. (Figure 5h, 5i, 5j)
Evaluation Technique
In order to determine the efficiency and satisfactory performance of the adaptive tires, evaluating customer feedback is significant to gain an understanding of the excelling aspects as well as the flaws of our product. The most effective evaluation technique that will provide the most accurate and constructive form of feedback based on the product we are trying to sell is focus group discussions. In this form of evaluation, we will gather a group of individuals who have been using our adaptive tires to discuss their own experiences with the product. The main outcome of this evaluation will be the many aspects that the group will discuss regarding performance on regular roads/off-roads, sizing of the tires, the installation of the tires, pressure system response time, air pressure changing speed, and the cost of our tires. Utilizing this evaluation technique will allow us to get a closer insight into what customers truly believe about our product while also allowing them to discuss several good or bad assets with other experienced customers and discover the many things they may agree or disagree with. Obtaining this information will allow us to evaluate the feedback on each aspect of the adaptive tires since it will aid us in pinpointing the specific issues or areas of improvement that we must work on. Many customers may believe that one aspect of the adaptive tires works effectively while others may have poor experiences with it, so gaining this feedback can allow us to discover possible flaws in the flourishing aspects of our product, therefore leading us to create an even more evolved and revolutionized version of our product with the help of our customers.
Task Scheduler
Year 1:
Stage 1:Research and project development (Month 1-2)
Stage 1 will last approximately 2 months. During this time our team would conduct research regarding the automotive tire market and the functionalities of our innovation. Analyzing and contextualizing data and potential limitations within our innovation. Gathering industry trends and a deep understanding of our competitive landscape. We would also begin designing our innovation and researching cost-effective measures to approach during our project.
Stage 2: Prototype and testing (Months 3-7)
During stage 2, our team would invent various prototypes resembling our final product, in order to conduct various forms of testing on the prototype. For instance, we would use a wide range of evaluations, such as performance, and laboratory testing. This is important because it enables us to refine/fine-tune our design through the process of creating various iterations of our final product.
Stage 3: Production scaling (Month 7-9)
In stage 3, we would lease out a warehouse, buy equipment, and hire technicians to operate the Facility. While acquiring these assets, our team would produce a production plan and kickstart production domestically in the United States and create $100,000 worth of inventory.
Stage 4: Marketing (Months 9-12)
During stage 4, we implement the previously discussed market strategies to promote our target consumer base. Creating commercials to promptly and effectively promote our product. As well as affiliating our brand with popular figures or events(trade shows, racing) in the United States.
Year 2:
Stage 5: Launch (Month 13 -15)
In stage 5, We would launch our product in the United States. We would analyze and gather customer feedback, response, and sales metrics to fine-tune for future iterations.
Stage 6: Post Launch and expansion (Months 15- ongoing)
In stage 6, our team plans to come up with different iterations for the product based on customer feedback. We’ll be interested in a global expansion of our enterprise. Expanding our consumerism internationally, establishing a foothold in countries with a high automotive tire market, and sharing geographic terrain characteristics best suited for our innovation, such as The United Kingdom (7.2% CAGR forecast from 2023 to 2033 in the automotive tire market), or China (6.9 % CAGR forecast from 2023 to 2033 in the automotive tire market).
Summary
Our program for Adaptive Tires aims to revolutionize the driving experience for consumers. With a budget of 585,000, our company’s design provides consumers with an efficient solution for all-season driving; eliminating the need for seasonal tire changes, extending car life, enhancing vehicle performance, and reducing maintenance costs. Adaptive tires not only provide users with a hassle-free experience but also enhance consumer safety and driving experience all year long. Through the composition and integration of durable and flexible Natural rubbers with smart sensors and an air-advanced pressure system, dispersed throughout the tires, this system enables our innovation to automatically adjust the size of the Adaptive Tires based on real-time terrain conditions and features detected by the tires’ smart sensors. Our design is ideally targeted to consumers who reside in regions with seasonal terrains. Our Adaptive Tires design addresses consumers’ needs by providing consumers with a proposition that eliminates the hassle of tire changes and adapts to a variety of environments, terrains, and climates, optimizing users’ driving experience all year long. Our team of aspiring STEM majors from the City College of New York developed a pricing strategy that ensures the companies have high-cost markup rates: 150% and 166%.
Appendices
Appendix A
Figure 5a: Projected sales and revenue gained for start-up and first year of operations/Figure 5b: Cost and revenue per bundle
The equation for projected sales:
C = inventory cost
U = Manufacturing price
S = Selling profits
(C/U)S
The equation for Profits: P-C
P= Projected sells
C=inventory cost
The equation for markup:
Equation: M(markup) =S(selling Price) -C(production cost)
Markup Rate of cost equation: R(rate)=M(markup) over C( production cost)
Appendix B
Forecast CAGRs from 2023 to 2033
| The United Kingdom | 7.2% |
| India | 6.9% |
| The United States | 5.4% |
| China | 6.9% |
| Germany | 7.1% |
References
Baxter, E. (2024, February 20). How do tire pressure sensors work. HowStuffWorks. https://auto.howstuffworks.com/car-driving-safety/safety-regulatory-devices/tire-pressure-monitoring-systems.htm#:~:text=The%20various%20tire%20pressure%20monitoring%20systems%20%28or%20TPMS,ride%2C%20and%20they%27re%20more%20prone%20to%20possible%20blowouts
Classic Kia. (n.d) Classic Auto Body Shop’s guide to tires: anatomy of a tire, tire wear and maintenance, and choosing the right tire for your car. Classic Kia. https://www.classickiaonline.com/blogs/294/classic-kia/classic-auto-body-shops-guide-to-tires-anatomy-of-a-tire-tire-wear-and-maintenance-and-choosing-the-right-tire-for-your-car/#:~:text=Shoulder:%20The%20shoulder%20on%20each,stiffness%20of%20the%20tread%20area
Expert Market Research Team. United States tire market report and forecast 2024-2032. Expert Market Research. https://www.expertmarketresearch.com/reports/united-states-tire-market#:~:text=The%20United%20States%20tire%20market%20size%20was%20around,volume%20of%20nearly%20463.57%20million%20units%20by%202032
Eval Community Team. (n.d). Understanding Evaluation Methodologies: M&E Methods and Techniques for Assessing Performance and Impact. Eval Community. https://www.evalcommunity.com/career-center/evaluation-methodologies/
Garside. M. (2024, May 10). Rubber price monthly 2024. Statista. https://www.statista.com/statistics/727582/price-of-rubber-per-pound/
Goodyear. (n.d.). Winter Tires: When to Switch from Summer Tires. Goodyear Tires. https://www.goodyear.com/en_US/learn/tire-care-maintenance/when-to-put-on-winter-tires.html#:~:text=Generally%2C%20summer%20or%20all-season%20tires%20may%20start%20to,a%20winter%20tire%2C%20it%E2%80%99s%20time%20to%20change%20over
Gupta Media Team. (n.d.). Social media ads cost in 2024. Gupta Media. https://www.guptamedia.com/social-media-ads-cost
Kaitwade, N. (2023, October 23). Automotive Tire Market. Future Market Insights https://www.futuremarketinsights.com/reports/automotive-tires-market#:~:text=As%20of%202022%2C%20automotive%20tire%20sales%20were%20valued,tires%20for%20their%20sporty%20looks%20and%20improved%20performance
Karroll. D. (2023, October 7). Comparing Tire Materials: Rubber vs. Synthetic. Swanky Tires. https://www.swanky-tires.com/comparing-tire-materials#:~:text=Rubber%20tires%2C%20as%20mentioned%20earlier%2C%20have%20a%20reputation,not%20match%20rubber%20tires%20in%20terms%20of%20grip.
Karthik, A. (2024, April 19). Discounted shipping for individuals. ParcelPath. https://parcelpath.com/
Media Culture Team. (n.d). How much does it cost to make a commercial? Media culture. https://www.mediaculture.com/how-much-does-it-cost-to-make-a-commercial#:~:text=As%20an%20agency%2C%20we%20are,cost%20depends%20on%20multiple%20variables
Nice, K. (2024, May 9). Parts of a tire (And how they work). HowStuffWorks. https://auto.howstuffworks.com/tire.htm
Niknam, F. (2019, October 10). Tire Technology: The science & engineering behind making a tire. Tire Review Magazine. https://www.tirereview.com/tire-technology-the-science-engineering-behind-making-a-tire/#SnippetTab
Obringer, L. A. (2021, February 9). How self-inflating tires work. HowStuffWorks. https://auto.howstuffworks.com/self-inflating-tire2.htm
Otachl. E. (2024, March 20). How much does affiliate marketing services cost? Fiverr https://www.fiverr.com/resources/guides/business/affiliate-marketing-costs#:~:text=Below%20are%20average%20commission%20and%2For%20payout%20rates%20%28in,5%25-25%25%205%20Performance-based%20influencer%20compensation%3A%205%25%20to%2020%25
Partington. M. (2034, January 11). Scaling from 5 to 50 employees — your startup hiring roadmap. Sifted. https://sifted.eu/articles/scaling-to-50-employees-startups-hiring/Understanding Evaluation Methodologies: M&E Methods and Techniques for Assessing
Pemberton, K. (2023, November 5). From Black to Green: How Tires are Shifting to Eco-Friendly Materials — Green and Prosperous. Green and Prosperous. https://www.greenandprosperous.com/blog/how-tires-are-shifting-to-eco-friendly-materials#:~:text=Tires%20are%20made%20of%20synthetic%20rubber%2C%20which%20isn%E2%80%99t,version%20of%20the%20primary%20raw%20material%20they%20need
Precedence Research Team. (n.d) Automotive tire market to hit US$ 211.6 billion by 2032. Precedence Research. https://www.precedenceresearch.com/automotive-tire-market
Redding, C. (2023, November 15). Parts of a Tire: A complete guide. CarShtuff. https://www.carshtuff.com/post/parts-of-a-tire#spaninner-linerspan
Research and Markets Team. (n.d.). United States Tire Market Competition, Forecast and Opportunities, 2028. Research and Markets Ltd. https://www.researchandmarkets.com/report/united-states-automotive-tires-market#product–adaptive
Siler, S. (2019, February 25). What you should do when a Tire-Pressure light flashes. Car And Driver. https://www.caranddriver.com/features/a26513421/tire-pressure-light-what-it-means/
Siler, W., & Siler, W. (2022, October 6). Everything you need to know about All-Terrain Tires. Outside Online. https://www.outsideonline.com/outdoor-gear/cars-trucks/everything-you-need-know-about-all-terrain-tires/
Sheykin, H. (2023, August 19). Discover the true cost of launching a tire production business. Get insights on startup expenses, operation. Fin Models Lab. https://finmodelslab.com/blogs/startup-costs/tire-production-startup-costs
Staff, J. (2023, May 24). Your Ultimate Guide to Off-Roading Tire Pressure. JACO. https://jacosuperiorproducts.com/blogs/news/your-ultimate-guide-to-off-roading-tire-pressure#:~:text=Factors%20Affecting%20Ideal%20Off%2DRoad%20Tire%20Pressure&text=Terrain%3A%20Softer%20terrains%20like%20sand,against%20punctures%20and%20rim%20damage
Statista. (2023, December 8). Tire producers – based on global revenue 2021. Statista. https://www.statista.com/statistics/225677/revenue-of-the-leading-tire-producers-worldwide/
Tire Buyer Staff. (2023). How Much Do New Tires Cost. Tire Buyer. https://www.tirebuyer.com/education/how-much-do-new-tires-cost
Tire Review Magazine Team . (2019, August 16). Global Tire Production by volume in 2014-2024. Tire Review Magazine. https://www.tirereview.com/tire-manufacturing-trends-new-technologies-improve-efficiencies-amid-industry-evolution/screen-shot-2019-08-16-at-11-46-09-am/
Tv Scientific Team. (2024, January 31). Local Television ad rates. TvScientific. https://www.tvscientific.com/insight/local-television-ad-rates#:~:text=So%20what%20is%20the%20average,%24100%20for%20every%201000%20viewers
Valdes, R., & Valdes, R. (2023, September 25). Are winter tires worth the cost? Kelley Blue Book. https://www.kbb.com/car-advice/winter-tires-worth-cost/
Vandiver, W. (2023, April 1). When and how often to replace your tires. NerdWallet. https://www.nerdwallet.com/article/loans/auto-loans/when-to-replace-your-tireVoice123 Editorial Team. (2024, January 15). Radio advertising: how to make the best ads in 2024! VoiceTalks. https://voice123.com/blog/marketing-trends-tactics/radio-advertising/#:~:text=The%20average%20CPM%20for%20radio,ad%20length%2C%20and%20radio%20station
This entry is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International license.
