Product Proposition
Currently King Living offers an outdoor range that has a small offering of sun loungers. David King has expressed interest in increasing this segment of outdoor living through the introduction of a Cabana.
The Cabana at this conceptual stage is to be semi modular, in the below options with the possibility of having side shade
· Double sun lounger
· Double sun lounger with shade
· Single sun lounger
· Single sun lounger with shade
Aesthetically the Cabana is to feature soft rounded profiles and forms, while utilising the existing recliner latch from the King Cove sun lounger. The cushions are to feature a drain through fabric on top of textilene sling which is novel and new to KING LIVING.
Range expansion of the Cabana is expected with a sofa configuration, the expansion will then continue with supporting outdoor furniture. The initial Cabana design is preferred to go to market for the Australian 2022/23 summer period with the aspiration of the Cabana to be manufactured in the new KING LIVING Thailand factory.
Range Gap
What gap in the range is this product addressing?
Requirements for Success
What is the target requirements to make this a successful project?
Requirements |
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Cabana with shading options and option to keep as a sun lounger |
Manufacturing Costs under XXXX |
Open design to add sofa option later |
Comfortable |
“Wow” factor, surprise and delight |
Easy/low maintenance |
Safe and stable in high winds (not blow away) |
Commercially viable |
Marketing able to market it without showroom |
Modular: Sun lounger > Cabana top shade > Cabana with side shade |
Add sofa option at a later date |
Aesthetically have soft curves (aluminum profile) |
Weather Resistant |
Use same reclining mechanism as King Cove |
Drain through cushions |
Removable shade and cushion covers |
Easily Assembled by 2 people |
Safe |
Key Risks & Considerations
What are the key risks involved in the project?
e.g. manufacturing risks, design complications, bottlenecks in the timeline, commercialization risks, brand discrepancies
Key Risks | Mitigation Plan (Concept refinement phas) |
|---|---|
Outdoor furniture safety compliance? | |
Shade sale high wind safety? | |
Climbable structure | |
Is there any regional safety requirements? | |
Is this item subject to any specific tariffs and/or duties? | |
UV degradation standards for the fabric | |
UV protection, is KING going to claim a UV protective rating for the shade? | |
Supply chain mostly external | |
Cast Aluminum joints (High CAPEX) | |
Market Size | |
Desired release date vs design & dev timeline | |
Texteline could be 6 months for supply | |
Thailand factory not ready | |
All new Thai suppliers (unknown relationships) | |
No showroom presence | |
Perceived quality with frame movement | |
Wind safety with moving parts |
Design, Develop & Test
What Must be Designed?
Cabana frame with modularity
Size and proportion
Integration of shade canopy
Hidden central legs (joins platforms)
Shading
Shade attachment hardware
Shading side adjustability mechanism
Packaging/Assembly
Design for assembly
Assembly instructions (large)
Weather guards
What must be Developed?
Iterative work, or some kind or scope of work that confirms that the design works
Cabana frame with modularity
Aluminum casting for joints
Aluminum profile
Joiner system
Textilene attachment method for sub frame
Sub structure (steel)
Integration of shade canopy
Shading
Shade roof
Shade attachment hardware
Shading side adjustability mechanism
Shading
Shade attachment hardware
Shading side adjustability mechanism
Cushioning and fabric
Cushion foam insert
Patterns for covers
Attachment for cover to subframe
Frame aesthetics
Feet and platform alignment knock-ins
What must be tested?
List parts/tests that may be completed. E.g., functional, process, material, compliance, or market testing.
Cabana frame with modularity
Aluminum casting for joints
Extruded aluminum profile
Joiner system
Textilene attachment mechanism for sub frame
Shading
Shade sale
Joiner system
Roller system
Cushioning and fabric
Drain through fabric
Manufacturing Scope
Procured Externally
Extruded aluminum
Casted aluminum joiner (Casting mold)
Reclining system (plastic molded)
Textilene (new material, external could be long lead time)
Shading fabric (new material)
Plastic knock-ins
Shading mechanism (all)
Manufactured In-house
Seating – cushioning
Seating - fabric
Sub frame (welding jigs to be commissioned)
Powder coating (powder coating line to be commissioned)
Packaging (packaging yet to be commissioned in Thailand)
Resourcing Estimates
Project Length | ||||||
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P I r n o t j e e n c s t i t y | Less than 3 months | 3 - 6 months | 6 - 9 months | 9 - 12 months | 12 months + | |
High Designer = 1.0 FTE + | Medium | High | Very High | Very High | Very High | |
High-Med Designer = 0.75 - 1.0 FTE | Medium | High | High | Very High | Very High | |
Med Designer = 0.75 - 0.5 FTE | Low | Medium | High | High | Very High | |
Med-Low Designer = 0.5 - 0.25 FTE | Low | Low | Medium | Medium | High | |
Low Designer = 0 - 0.25 FTE | Low | Low | Low | Low | Medium | |
Initial Concept Ideation & Sketches
Marketing 360
For marketing to complete
360 Marketing plan
Sustainability
•How is this product going to hint towards the sustainable future KING strives for?
Return on Investment
PROFIT & LOSS (By Year) | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Expected COGS (BOM cost) | $ 1,430.40 | $ 1,430.40 | $ 1,430.40 | $ 1,430.40 | $ 1,430.40 | $ 1,430.40 | $ 1,430.40 | $ 1,430.40 | $ 1,430.40 | $ 1,430.40 |
Expected Sales QTY | 0 | 400 | 420 | 441 | 463 | 486 |
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Exptected Logistical Costs | $ 299.25 | $ 299.25 | $ 299.25 | $ 299.25 | $ 299.25 | $ 299.25 | $ 299.25 | $ 299.25 | $ 299.25 | $ 299.25 |
Average Sale Price | $ 6,490.00 | $ 6,490.00 | $ 6,490.00 | $ 6,490.00 | $ 6,490.00 | $ 6,490.00 | $ 6,490.00 | $ 6,490.00 | $ 6,490.00 | $ 6,490.00 |
Product Margin | $ - | $ 1,904,140.00 | $ 1,999,347.00 | $ 2,099,314.35 | $ 2,204,280.07 | $ 2,314,494.07 | $ - | $ - | $ - | $ - |
Marketing Costs | $ 50,000.00 | $ 10,000.00 | $ 10,000.00 | $ 10,000.00 | $ 10,000.00 | $ 10,000.00 |
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Development Costs | $ 30,000.00 |
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CAPEX (Tooling & Machinery purchases) | $ 50,000.00 |
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Project Costs | $ 130,000.00 | $ 10,000.00 | $ 10,000.00 | $ 10,000.00 | $ 10,000.00 | $ 10,000.00 | $ - | $ - | $ - | $ - |
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Net Cash Flow | -$ 130,000.00 | $ 1,894,140.00 | $ 1,989,347.00 | $ 2,089,314.35 | $ 2,194,280.07 | $ 2,304,494.07 | $ - | $ - | $ - | $ - |
Cumulative Cash Flow | -$ 130,000.00 | $ 1,764,140.00 | $ 3,753,487.00 | $ 5,842,801.35 | $ 8,037,081.42 | $ 10,341,575 | $ 10,341,575 | $ 10,341,575 | $ 10,341,575 | $ 10,341,575 |
Discounted Cash Flow (NPV) | -$ 120,370.37 | $ 1,623,919.75 | $ 1,579,207.79 | $ 1,535,708.42 | $ 1,493,390.14 | $ 1,452,222 | 0 | 0 | 0 | 0 |
Cumulative Discounted Cash Flow | -$ 120,370.37 | $ 1,503,549.38 | $ 3,082,757.17 | $ 4,618,465.59 | $ 6,111,855.73 | $7,564,078 | $ 7,564,078 | $ 7,564,078 | $ 7,564,078 | $ 7,564,078 |