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PG RISE, LANCASTER ENTERPRISE CENTRE Directional Air Flow Sampler Market Analysis Report By PG RISE Group 3 Team: Chiemela Victor Amaechi, Jack Baker, Victory Damisa, Laura Hanks, Maja Lakner, Shaimaa Zaher El Naggar Principal Investigators (Inventors): Professor Roger Timmis & Professor Kevin Jones Submitted to Lancaster University Enterprise Centre, for the PG RISE’s Reflection on Employability Event On 22 nd April, 2016

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Page 1: PG-Rise-3-Report_Directional-Air-Flow-Sampler-Final (2)

PG RISE, LANCASTER ENTERPRISE CENTRE

Directional Air Flow Sampler

Market Analysis Report

By PG RISE Group 3 Team: Chiemela Victor Amaechi, Jack Baker, Victory Damisa, Laura Hanks, Maja Lakner, Shaimaa Zaher El Naggar

Principal Investigators (Inventors): Professor Roger Timmis & Professor Kevin Jones

Submitted to Lancaster University Enterprise Centre, for the

PG RISE’s Reflection on Employability Event On 22nd April, 2016

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Participants

Project Co-ordinator: Chris Lowerson

Group 3 Mentor: Dan Knowles

Project Investigators: Professor Roger Timmis & Professor Kevin Jones

Team Members: Chiemela Victor Amaechi, Jack Baker, Victory Damisa, Laura Hanks,

Maja Lakner, Shaimaa Zaher El Naggar

Executive Summary

This report provides recommendations based on market analysis conducted on the Directional Passive

Air-quality Sampler (DPAS), invented at Lancaster University, protected by Patent US8413527. The

device measures the flux of a particular air pollutant. The market analysis deployed qualitative and

quantitative methods such as interview and questionnaire (please see

https://www.surveymonkey.co.uk/r/VLLC78J and Appendix 1). The results suggest the following

recommendations:

The most attainable market for DPAS seems to be dust flux monitoring, though there are a

number of direct competitors in this area.

The product should be priced in the region of £250-£400.

In order for the product to be competitive, another unique selling point (USP) may have to be

developed for the DPAS.

Environmental consultancies may be a good client to initially target.

The device is considerably larger than its competitors, so would need a modification to reduce

its size and weight.

Introduction

In this report we provide findings from market analysis conducted on the Directional Passive Air-

quality Sampler (DPAS), invented by Professor Roger Timmis and Professor Kevin Jones from

Lancaster University. The DPAS is a directional fluid sampler, which measures the flux of a particular

air pollutant. The device has no electrical parts, so is robust; it provides a measure of the directional

component of the flux, which allows the location of pollution sources to be detected; and it is small

enough that planning permission is not required to install the device. A diagram of the device is given

in Figure Figure 1. For more information on the device, we refer the reader to Patent US8413527.

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There is no end to the range of different pollutants which can cause environmental problems. In problem

situations, or even just as a routine operation, it is normal to sample air-borne pollutants to ensure that

safe levels are not exceeded, or in some instances collect evidence for cases of enforcement. Current

devices are either a) very simple sample collectors, while are cost effective and can be fixed on site

where a sample is needed, provides no directional resolution information and limited data; b) complex

and costly specialised units which require specialised protective housing, electricity, and vandal-

protection, training, equipment calibration and maintenance etc.

In this report we begin by outlining key competitors to the product, including their business models,

prices, size and client base. We then outline current markets and clients for air samplers. Finally we

combine both these things to identify particular gaps in the market. With this in place we make our final

recommendations to the reader.

Group 3 Project Task

Two of Lancaster University researchers have come up with an innovative and effective solution in the

form of a directional fluid sampler which has several advantages over the current technology available.

This new device provides an opportunity to collect directional fluid-flow using only a small, passive

device, which does not require electrical power, or any specialised housing, and opens up the potential

for many more sites to be deployed within for pollutant monitoring.

It was the task of this PG RISE team to typically find where this Directional Passive Air-quality Sampler

can be implemented, deployed and efficiently used. It was also to investigate the possibilities for

Figure 1: The Directional Passive Air-quality Sampler.

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commercialising such a method, including identifying the types of organisations that would be

interested in using and funding the new technology (Appendix 2).

Group 3 Activity Log

During the period of this PG Rise project, we had various activities which include the following:

Mid-term Presentation 2nd March, 2016.

Weekly team Meetings.

Emails, Facebook and Google Drive Updates.

Preparation for both mid-term and final presentations.

Using Linkedin to network, with Dan Knowles.

Received trainings and presentations and live entrepreneurship experiences.

Skills on Writing Research Reports and Proposals, and other team meetings.

Preparation for Final Presentation and Report due on 22nd April, 2016.

Workshops and Trainings

We had some workshops, trainings and presentations during this project, which include:

Introduction to PG Rise, Entrepreneurship and

Team Work Training (21st Jan.-22nd Jan., 2016).

Meet the Principal Investigators (PI), on 27th

Jan., 2016.

Discussion Panel & Entrepreneurship

Experiences form Mentors, on 10th Feb., 2016.

Value Proposition Canvas and Business Model,

by Simon Harrison, on 15th March, 2016 .

Intellectual Property & Copyright, by Wesley

Randle on 18th Feb., 2016.

Use of Fiverr and Google Adwords on 9th March, 2016.

Presentation skills, by Stuart Nolan, on 24th Feb., 2016.

Feedback for Presentation on 2nd March, 2016.

Figure 2: Group picture at Clitheroe training.

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Competitors

In this section we provide an analysis of the key competitors to DPAS. We outline their business models,

prices, sizes and client base.

The main USPs of DPAS suggested in the patent were that the device can measure a directional

component as well as the flux of a pollutant; that it has no electronic parts, so is robust; that it’s small

enough to be setup without planning permission being required.

The main competitors suggested in the brief were:

Diffusion tubes: a sampler which measures only the flux of one pollutant and not a directional

component.

Electronic samplers: a sampler which measures the amount of many pollutants and provides a

directional component, but it is bulky, has running costs and generally needs planning

permission.

We suggest when specifically looking at dust, there are other competitors which sit much closer to the

product than this. There are some devices which measure dust flux or deposition as well as a directional

component, these are outlined in Table 1. In the proceeding sections we give an outline of each

company, its business model and key clients.

Table 1: Direct competitors in the dust flux market.

Name Price URL

Frisbee directional gauge £310 Frisbee directional gauge

Dustscan DS100/DS100-D £285/£380 Dustscan

Dustscan

Dustscan is a small company (1-10 employees) which provides low cost directional dust monitoring

equipment. Along with this they provide a consultancy service. The dust samples produced by the

equipment are analysed in a lab. While originally designed for the quarrying sector, their key

consultancy work also spans the landfill/waste and construction/demolition sectors [1].

Frisbee gauge

The Frisbee gauge is owned by Ian Hanby, who provides a variety of equipment for measuring dust

flux. It appears to be a very small company of 1 employee, and does not offer a consultancy service [2].

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Diffusion tubes

While the equipment above focusses on dust, diffusion tubes are able to measure a variety of pollutants

including: NO2, NO, NH3, BTX, SO2, O3, H2S and acid gases. The price of a diffusion tube is about £6,

so the tube is very cost effective. In the UK and other countries, diffusion tubes are manufactured by

Gradko International Ltd (10-50 employees). Mainly their customers are in the public sector:

environmental consultancies, government agencies, local authorities and educational institutes. A major

market for Gradko seems to be with government agencies, who use the product to measure underlying

NO2 levels in their jurisdiction. The key environmental arm of Gradko provides products to monitor

indoor and outdoor air pollution, as well as soil contamination. Another key service it provides is

laboratory analysis [3].

From speaking to a number of employees in the environmental agency, electronic samplers are seen as

less of a competitor than the other devices. The other devices are often seen as more of a ‘rough and

ready’ device, either to check if more sophisticated analysis is needed or to just measure background

flux to keep costs down. We were advised that the DPAS probably wants to stay competitive with these

devices since it is not able to measure molar quantities.

Markets

This section outlines where the key markets for this type of product are, and uses this and the

competitors section to identify market gaps.

Current key markets Figure Figure 3 shows a breakdown of the air pollution monitoring market by different style of product.

In the market for equipment that measures pollutant flux, there’s quite a division between non-electronic

devices used to sample dust flux and devices used to sample other air pollutants. There seems to be

much higher demand for dust flux monitoring from the private sector than other air pollutants.

Figure 3: Breakdown of key markets in air pollution monitoring.

Air pollution monitors

Samplers

Dust monitoring (directional component)

Construction, quarries, waste management, environmental consultancies, government

Other air pollutants (no directional component)

Government, environmental consultancies, educational institutes

Electronic samplers

All pollutants

Industrial processes, meteorological systems, government

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One of the largest markets for diffusion tubes is in environmental monitoring by governments. The

government particularly recommends diffusion tubes for monitoring ambient NO2 levels (for example

from traffic emissions). So adding a directional component to this measurement may not add much

value. The cheap price of diffusion tubes means that its unlikely DPAS will manage to stay competitive

in this market.

Dust flux monitoring equipment seems to mainly be provided by the consultancy Dustscan Ltd. They

appear to have majority market share in this area. Other services which work in this area, serving the

private sector, are environmental consultancies. The nature of this market is much more suited to the

design of DPAS. But the presence of competitors with similar USPs will make entering the market

challenging.

Market Gaps

By analysing current competitors, along with other market areas we came up with a number of gaps in

the market for DPAS.

Simpler dust flux analysis

Currently dust samples need to be sent to a lab to be analysed. However dust flux devices are used

considerably in the private sector where efficiency and cost is an issue. Computational image analysis

is now at a stage where flux analysis could be performed by simply taking an image of the sample on a

smartphone and analysed by a mobile app. Coupling the DPAS sampler with easier flux analysis may

win over clients needing dust flux monitoring. If measurements for NO2 could be performed using a

flux measurement then this idea could be extended to sampling from other air pollutants.

Environmental consultancies

Currently one of the key players in dust flux monitoring is produced by a company which also offers

consultancy services (Dustscan Ltd). Environmental consultancies will likely be put off buying products

from a direct competitor, but are key players in dust flux monitoring according to an employee of the

Environmental Agency. So this could be a good client for DPAS to target initially. But Dustscan Ltd

seems to hold a majority over the rest of the market. Since DPAS has similar USPs to Dustscan we feel

it will be challenging to break into the rest of the market.

Directional sampling of alternative air pollutants

This is one quite clear gap, we could not find a product on the market which provides directional

sampling for air pollutants which are not dust. However the market of such a product is questionable.

Probably the largest client for the diffusion tube is government agencies/authorities so that they can

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monitor the ambient flux of NO2. Adding a directional component to this probably adds limited value.

Also the price of a diffusion tube is so cheap that DPAS is unlikely to be able to compete.

Air pollution monitoring for developing countries

If put into production, this product should be much cheaper than automatic monitors. So the product

may be of use in developing countries where they cannot afford automatic monitors. We found little

information on anything being done in this space.

Value Proposition Canvas

Just as a canvas helps an artist to design, draw, test and build his idea into a reality art work or picture,

both the value proposition canvas and the business model canvas help us to design, test and build the

value proposition for the Directional Air-flow Sampler in a more structured way. This was not done

extensively, as most of us are not business management students. In other to achieve fit, we design the

product to achieve fitness and satisfaction for the customer, which the inventors have already done.

Next we identified the customers who use the product and some potential ones. As shown on the value

proposition canvas below, we analysed the product as follows:

Products and Services: Directional Air-flow Sampler, Consultancy Service, Laboratory Service,

Academia, Social Media App.

Gain Creators: Can be advertised through social media, Provides Air Quality Data, Nice

invention, Incentive Policy, Promo sales, TV Adverts, Online Adverts, Get Ratings, Sell on

Amazon, Sell on Ebay, Make Youtube Video of Product, Fiverr, Linkedin and Google Adwords.

Pain Relievers: Online Profile and reviews, Contact Number and address, Product photo for

marketing, Product patent and existing use, laboratory service, few feedbacks from our surveys

than expected, Surveys for them are prepared and online, Questionnaires are available.

Gains: Use of social media app, publishing adds, regular proposals to city councils, additional

revenue, know user’s opinions, research awareness, innovative awareness, experience in

market research, price comparison, price comparison.

Pains: Limited niche areas, electronic competitive ones, getting feedback, saving production

cost, safety issues and vandalism, managing production, managing competition, managing the

testing of samples.

Customer Jobs: Academia, Standardisation, City Councils, Manufacturing, Construction,

Offshore and Met offices.

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Figure 4: Value Proposition Canvas for Directional Air-flow sampler.

Business Model Canvas

For the Business model Canvas for the Directional Air-flow Sampler, it is also done in a structured way.

Using the model by Strategyzer, we were able to identify the following:

Key partners: Lancaster University, Environmental Agencies, Other Partners, BSI, Standards

Bodies, British Assessment, Construction, City Councils, Academia, Offshore and Met Offices,

Development agencies, developing nations.

Key Activities: Identifying sites and Customers, testing the samples, interpreting the results.

Key Resources: Patent Office, Laboratories, Universities, Research Institutes, Environmental

Agencies, brand name.

Value Proposition: Shark shaped and environmental /eco-friendly Directional Passive Air-

quality sampler; requires no power to run, light materials were used and lovely design.

Customer Relationships: Surveys, Questionnaires, feedbacks, direct 1-on-1, emails, webinars,

profitable contracts, available spare parts and good customer service.

Customer Segments: Environmental, Construction, Consultancy, Laboratories, Academia.

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Cost Structure: Cost of testing, Manufacturing, branding, lovely shark shape (design).

Revenue Streams: Revenue from hire, Transactional sales, Sales from online marketing,

Upfront investments.

Figure 5: Business Model Canvas for Directional Air-flow Sampler.

Challenges

After this investigation, we had some challenges on the market research of the product:

Lack of response from the companies contacted, and City Councils, except for a few.

From the response received, we had challenge x-raying the use in developing countries, as they

will benefit greatly from this invention, but we had less time to narrow it down as the few

responses we received also came in late after some reminder emails.

Funding a Consultancy Service for the product will be a challenge but will help to make the

invention more deployable, such as in offshore uses (on ships), and for met offices.

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Recommendations

After this investigation, we have come up with the following recommendations for the product:

The most attainable market for DPAS seems to be dust flux monitoring, though there are a

number of direct competitors in this area. We say this because we believe the directional

component is less important when sampling other air pollutants, and because diffusion samplers

are very cheap.

In order to keep the product competitive in the dust flux market, the product should be priced

in the region of £250-£400.

In order to enter the market, DPAS will probably have to develop another USP over current

products. One idea we had was that dust sample analysis could be performed using a mobile

app. That way the flux can be measured instantly and in a more cost effective manner. We

believe the technology is already well developed to do this (image analysis, computer vision).

Environmental consultancies may be a good client to initially target, since they are competing

with the major manufacturer of dust flux samplers, who operates a consultancy service.

The device is considerably larger than its competitors, so would need a modification to reduce

its size and weight.

More research can be encouraged in collaboration with Environmental and Engineering

Departments to get more academic value of the device, such as the “Development and

Applications of Novel Directional Passive Air Samplers and Techniques- PhD Research, by Lin

Chun, 2011, Lancaster University LEC”. In addition, it could be in form of seminar papers for

undergraduate and post graduate students.

Bibliography

[1] Dustscan Ltd, 2016. [Online]. Available: http://www.dustscan.co.uk/.

[2] I. Hanby, Ian Hanby, 2016. [Online]. Available: http://www.hanby.co.uk/index.html.

[3] Gradko International Ltd, 2016. [Online]. Available: http://www.gradko.com/.

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Appendix 1: Questionnaire Format

Developing an Air Quality Measuring Device

1. Is your organisation concerned about air pollution?

2. Are you using any devices which measure air pollution at the moment?

No

Yes (please specify product)

3. What are you using the product for?

4. What are the best and worst features of the product?

Best

Worst

5. If not, does our product better suit your needs?

Yes

No

6. What additional features would improve your current product?

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7. What would you say is a reasonable price range for our product?

£0-£50

£50-£100

£100-£200

£200-£300

£300-£500

More than £500

8. Can you think of other organisations that may be interested in the product? Please state the

name below.

9. Would you like to be kept up to date if the product should become commercialised?

No

Yes (please provide an email address or phone number)

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Appendix 2: Contacts List

Organisation Department Date Contacted Format

Lancaster City

Council

Environmental

Health

29/02/2016 [email protected]

01524 582935

Liverpool City

Council

Environmental

Health

29/02/2016 https://www.liverpool.gov.uk/contact-

us/general-enquiries/environmental-health/

Hamilton

Construction

29/02/2016 [email protected]

01772 713198

British Assessment

Bureau

ISO 14001 29/02/2016 [email protected]

0800 404 7007, 01732 220 400

Simmons

Construction

29/02/2016 [email protected]

01253 866 100

Melrose

Construction

29/02/2016 [email protected]

01253 798081

Orell Group 29/02/2016 [email protected]

01254 457022; 07980 687302

Rosslee 29/02/2016 [email protected]

01254 393225

BSI Group 29/02/2016 [email protected]

+44 345 086 9001

QSL 29/02/2016 [email protected]

01905670303

Preston City

Council

29/02/2016 Email

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Manchester City

Council

29/02/2016 Email

Wade 01254820330

Pinington 01524 599 770

Barnfield 01282 442300.

NQA 08700 135145

SMAS (safety

management)

01752 697370

Croatian meteo

centre. Sektor za

meteorološka

istraživanja;

Načelnica sektora:

dr. sc. Branka

Ivančan – Picek

[email protected]

01 45 65 704

South Lakeland

Council

[email protected]

01539 733 333

Blackpool City

Council

[email protected]

01253 477477

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Appendix 3: Business model canvas

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Appendix 4: Pictures of Events