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Agenda

Introduction (Hypothesis & Original Model)

Test Method

Test Results

Conclusions

Opportunity Modifications

Smart Shopper – Home Appliance Alert

Business Opportunity Hypothesis

For shoppers to purchase home appliances who don't have time to read newspaper flyers every week, the "Smart Shopper Home Appliance Alert" is a service that reviews weekly flyers from local stores and sends you information about appliance sales and promotions.


Original Model

Target Location: Calgary, AB, Canada

Demographics: Males and Females, 20-34

Target Population: 261,265 (Statistics Canada)

Estimated target population looking for appliances: 20,000 (7.7% or Total target population)

Estimated customers: 1,000 (5% of appliance shoppers aged 20-34 in Calgary)

Pricing of service: $10 for 3 month subscription

Target Revenue = $10 x 4 (quarters in a year) x 1,000 (customers) = $40,000 annual sales

Expandable Canadian market based on success in Calgary


Test Method

Tested hypothesis with 14 people

Used in-person interviews and online survey

Questions divided in the following categories: 1) Current Shopping Behavior2) Shopping Problems 3) Solution Value4) Product Definition5) Market Potential


Test Results

Current Shopping Behavior● Shoppers use a combination of online and offline methods to collect price information● As expected for appliance shopping, only 16.7% use flyers to shop for appliances● Shoppers are willing to search harder when the value of the product purchase is high

Shopping ProblemsMore than 60% of people are unsatisfied with the way they receive price information in flyers today.

Solution Value40% of the people would pay at least $5 for an appliance price alerting service that saved them $100 or more

Product DefinitionThe service must deliver information using the following technologies in prioritized order: 1) Web, 2) Smart-phone, 3) Tablet and 4) Email

Market Potential 85% of the respondents would be interested in an appliance sale price alerting service


Conclusions

Collected data aligns with the initial hypotheses

Some people would even pay as high as 10%-20% of received savings

Not all respondents would pay for the service, but a significant portion (40%) would pay $5 or more

Therefore, we will pursue this opportunity in the next phase of the course!!!!


Opportunity Modifications

Modifications required based on feedback & further research:

1) Broaden Market: From Calgary to All of Canada

2) Lowered Service Price: From $10 to $5 for three month subscription

3) Partner with Retailers: Offer retailers access to highly motivated appliance shoppers for a price


Modified Business Idea

Target Location: Canada

Demographics: Males and Females, 20-34

Target Population: 6.3 Million (Statistics Canada)

Estimated target population looking for appliances: 315,000 (5% of total population)

Estimated customers: 15,750 (5% of appliance shoppers aged 20-34 in Canada)

Pricing of service: $5 for 3 month subscription

Target Revenue = $5 x 4 (quarters in a year) x 1,000 (customers) = $315,000 annual sales

Target Calgary for minimal viable product testing


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