EXAMINING THE MARKET:

BED BUG PREVENTION

Lisa Mijajlovic

Jordan Necamp

Francesca Verceles-Zara

Laura Ward

Overview

• Introduction to bed

bugs

• Examination vs.

Prevention

• Potential markets to

enter

• Market category

information

• The survey

• The competition

• Creative product idea

• Industrial work-wear

• Conclusion

An

Introduction

to Bed BugsBed bug infestation is on the rise.

• Prior to 2000, 25% of U.S. based professional pest

management companies have encountered a a bed

bug infestation

• Now 95% of these companies have encountered a

a bed bug infestation in the past year

• They are found in rural, urban, and suburban areas

• They are THE most difficult pest to treat

Why won’t they ever disappear?

• They can lay one to five eggs a day and more than

500 in a lifetime

• They can survive for several months without eating

• They can live in temperatures from nearly freezing

to 122 degrees Fahrenheit

Local Statistics

Extermination Market vs. Prevention Market

• Revenues from bedbug extermination hit

$258 million in 2009, up from $98 million 2006

• The NightWatch Bedbug monitor is supposed

to identify bedbugs by mimicking a sleeping

person by releasing heat and carbon dioxide

that attracts the bugs. The cost: $422.

• There are $30,000 portable insect inferno

trailers for sale that fire up the heat to kill bugs

in a couch or mattress.

• In NYC, the approximate cost for extermination

is $7,700 per room per year.

Extermination

Prevention

Extermination Market vs. Prevention Market

• There are $160 FabricTech

mattress covers and $30 luggage

liners.

• For $22, consumers can purchase

“interceptors,” which are placed

under a bed’s legs to trap the bugs

on their way up to feed on human

blood.

• Treated Under Mattress Pads can

kill present bed bugs and help

prevent new infestations for as low

as $24.99.

Potential Markets to Enter

• Residential

Homes

Apartments

Dormitories

• Movie Theaters

• Airlines

Luggage/Travel Accessories

• Hospitality (Hotels/Motels/etc.)

Market Category Information – Pest Control

Financials

Revenue: $11.4 billion

Profit: $903.2 million

Wages: 4.0 billion

Annual Growth (07-12): 2.9%

Projected A.G. (12-17): 5.5%

Businesses: 21,708

Industry Structure

Regulation Level: Heavy

Industry Globalization: Low

Technology Change: Medium

Competition Level: High

Barriers to Entry

• This industry has medium barriers to entry, and this is predicted to

increase in the future

• The concentration in this industry is low

• There is a strong requirement for licensing products

• Companies are still entering the industry due to the demand from

residential and commercial customers that value pest-free

environments

Why is this market lucrative?• Once consumers find

out about these bed

bugs at these

companies, a negative

reputation is formed.

All of this can be

avoided by No-Fly Zone

entering the bed bug

prevention market.

• With a product to

prevent the bed

bugs, companies

won’t ever have to

worry about

extermination costs.

• As of now, the

extermination market is

larger than the actual

prevention market. This

puts No-Fly Zone at an

advantage.

• Companies are

spending hundreds

of thousands of

dollars to

exterminate bed

bugs once they are

already present.

We created a survey to find out more information about

hotel goers and their experiences with bed bugs.

Average income of

respondents is

shown

How often do our respondents stay at hotels/motels?

How much more money would our respondents pay to

stay in a hotel room that was guaranteed to be bed bug

free?

Major takeaways from our survey

• While only 6% of respondents had

experienced a problem with bed bugs at a

hotel or motel, the entire 6% said that they

would pay at least a 5-9% upcharge on

their room if it were guaranteed to be bed

bug free

• All respondents who have an approximate

average income of $200,000 or more

would pay at least a 10-14% upcharge on

their room if it were guaranteed to be bed

bug free

• 76% of respondents said that they would pay more money to stay

in a hotel that uses bed bug prevention technology

The Competition

Sweep™ Bed Bug Treated

Under Mattress Pad

• After coming in contact with

the fabric for more than 24

hours, it will kill bed bugs that

are already present and

prevent new infestations

• Good for 20 washes

• $17.49 at Bed Bath and

Beyond

The Competition

16-Ounce EcoBugFree® for Bed Bugs

• Eco-friendly spray that eliminates bed bugs and their eggs on contact without oils, fragrances, or long lasting chemicals

• Breaks down the chemistry of a bed bugs exoskeleton, unlike pesticides that are designed to kill by ingestion

• Safe to spray on bedding, luggage, travel bags, furniture, and carpeting

• $9.99 at Bed Bath and Beyond

The Competition

Protect-A-Bed BugLock Bed

Bug Protection Pack

• Patented 3-sided zipper system

for bed bug entry and is then

escape proof.

• Surface is lined with Miracle

Membrane®, a technology that

prevents bedbugs from biting

through once they are trapped

• 1 year guarantee

• $80.99-$134.99

Creative Product Idea

NFZ™ Standard Set – Consists of two pillowcases, a flat

sheet, a fitted sheet, and a mattress encasement

NFZ™ Upgraded Set – Consists of two pillowcases, a flat

sheet, a fitted sheet, a mattress encasement, comforter set,

curtains, and a chair cover

• Will be sold in bulk orders to numerous hotel chains

• Hotels can upcharge the cost of the room if the room features NFZ™

technology

• Depending on the quality of the hotel, the room upcharge would range

from 5% to 15%

Potential Customers

Price & Revenue

Pillows (2) Flat Sheet Fitted Sheet Mattress

Encasement

Size King 42x46 King 108x110 King 78x80x9 King 78x80x12

Price (Per

Dozen)

$58.84 $144.78 $135.66 $258.36

Grand Total $597.64

Wholesale Standard Bed Set

Pillows (2) Flat Sheet Fitted Sheet Mattress

Encasement

Size King 42x46 King 108x110 King 78x80x9 King 78x80x12

Price (Per

Dozen)

$64.72 $159.26 $149.23 $284.20

Grand Total $657.41

Wholesale Standard Bed Set with 10% Upcharge for NFZ Technology

$657.41 - $597.64 = $59.77 Revenue per dozen sets sold

Recommendations

• After collecting data through multiple outlets, our team

would recommend that ITG should enter the bed bug

prevention market

• The demand for this kind of technology in the hospitality

industry is extremely high

• Both hotel-goers and hotel chains will benefit from the

technology

INDUSTRIAL WORK-WEARExterminator Protection for

the Bed Bug Market

• The industrial work-wear market is divided

into three groups: general work-wear,

corporate work-wear, and uniforms.

• Major players are Clintas Corporation,

ARAMARK Corportation, Willamsons

Dickies, Unifirst, and G&K Services.

• The most lucrative market for NFZ to enter

would be military uniforms - these men and

women need to be protected when they are

deployed in foreign countries.

Potential Opportunities

Rough sketch of the design

• Although we believe that ITG should

focus on the bed bug prevention

market, there is an opportunity for new

product development in the bed bug

extermination market

• A primary way of bed bug travel is via

clothing. When exterminators are at

work, they are in danger of bringing

these pests home with them every night

• Applying the NFZ™ technology to an

exterminator’s uniform would provide

these workers with an increased level of

safety

Sleep tight and

don’t let the bed

bugs bite with

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