Hypothesis for World Menus' BM

1. Lean Entrepreneurship Project
FreshEntrepreneurs2014
TransMenu
Session 5
Pauline von Nostitz 152113321
Pedro Mariz 152113366
Maria Murasheva 159114599
Alicja Sadlo 159114503

2. Lessons Learnt – Session 4 I
• Business Idea 2.0: Use P -> S -> M approach
– Experiments needed to validate solution (e.g.
Survey, Landing Page, A/B-Testing etc.)
• Market Segmentation
– First Decision: B2C or B2B?
– Apply corresponding segmentation criteria
• Market Sizing
– Two approaches:
Top- Down vs. Bottom-Up
TAM
SAM
SOM
Size of
Market
26.09.14 FreshEntrepreneurs2014 2

3. TransMenu- Competitors
Restaurant / Coffee / Hotel
human staff
e.g. Multilanguage hotel employees
Translation
agencies
Indirect
Competitor
e.g. http://www.alsintl.com
4 main
competitors
Direct
Competitor
Established companies offering
similar service
e.g. www.menumultitool.com/
www.openmenu.com
Direct
Competitor
Translation Apps / dictionaries
e.g. Waygo,
Menu Translate, World Lens
26.09.14 FreshEntrepreneurs2014 3

4. TransMenu- Competitors SWOT
STRENGHTS
- Established IP / Customer
Base
- Free versions available
- Human Factor
- First-mover advantage
WEAKNESSES
- High possibility of
translation errors
- Translations not context-specific
enough
- Single restaurants not
attractive clients  high
fees
OPPORTUNITIES
- Lack of integrated service
- Lack of service linked to
QR-codes
THREATS
- Globalization:
Multilingual world citizens
- Many substitutes
- Clients must be ready to
adapt technology
- Difficulty on getting
funds
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5. Key Market – Segmentation Criteria
TransMenu
Industry
Products / Services
Customer Base
Early Adopter /
Follower
Risk Aversion
Hospitality
Offering Food &
Beverage of any type
International Clients
Early Adopter
Low
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6. TAM, SAM, SOM I
TAM = Total Available /
Addressable market
SAM = Segmented
Addressable market
SOM = Share
of market
Hospitality Industry EU:
1.7 Mio. Enterprises1 / 9.5
Mio. Employees
Major Employee of young
people: 50% of workforce
< 35 years
Predominantly: Small -
medium sized businesses:
99% < 50 employees / 92%
< 10 employees
EU largest tourism
destination: 50% market
share / 475 million
international arrivals
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1 http://www.hotrec.eu/about-us/facts-figures.
aspx
International Clients:
50%  850.000
20%  340.000
Early Adopters:
40%  340.000
20%  68.000
Low Risk Aversion:
20%  68.000
10% 6.800
Number of
Employees:
4
Effective offering
of service + 300 / -
80 people /
months or 3.600 /
960 year
68.000/3.600 =
5.3%
14%
Average %