Smart Shopper – Home Appliance Alert AgendaIntroduction (Hypothesis & Original Model)Test MethodTest ResultsConclusionsOpportunity Modifications
Smart Shopper – Home Appliance AlertBusiness Opportunity HypothesisFor shoppers to purchase home applianceswho dont have time to read newspaper flyers every week,the "Smart Shopper Home Appliance Alert" is a servicethat reviews weekly flyers from local stores andsends you information about appliance salesand promotions.
Smart Shopper – Home Appliance Alert Original ModelTarget Location: Calgary, AB, CanadaDemographics: Males and Females, 20-34Target 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 subscriptionTarget Revenue = $10 x 4 (quarters in a year) x 1,000 (customers) = $40,000 annual salesExpandable Canadian market based on success in Calgary
Smart Shopper – Home Appliance Alert Test MethodTested hypothesis with 14 peopleUsed in-person interviews and online surveyQuestions divided in the following categories:1) Current Shopping Behavior2) Shopping Problems3) Solution Value4) Product Definition5) Market Potential
Smart Shopper – Home Appliance Alert Test ResultsCurrent 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 highShopping 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 moreProduct DefinitionThe service must deliver information using the following technologies in prioritized order:1) Web, 2) Smart-phone, 3) Tablet and 4) EmailMarket Potential85% of the respondents would be interested in an appliance sale price alerting service
Smart Shopper – Home Appliance Alert ConclusionsCollected data aligns with the initial hypothesesSome people would even pay as high as 10%-20% of received savingsNot all respondents would pay for the service, but a significant portion (40%)would pay $5 or moreTherefore, we will pursue this opportunity in the next phase of the course!!!!
Smart Shopper – Home Appliance Alert Opportunity ModificationsModifications required based on feedback & further research:1) Broaden Market: From Calgary to All of Canada2) Lowered Service Price: From $10 to $5 for three month subscription3) Partner with Retailers: Offer retailers access to highly motivated appliance shoppers for a price
Smart Shopper – Home Appliance AlertModified Business IdeaTarget Location: CanadaDemographics: Males and Females, 20-34Target 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 subscriptionTarget Revenue = $5 x 4 (quarters in a year) x 1,000 (customers) = $315,000 annual salesTarget Calgary for minimal viable product testing
Smart Shopper – Home Appliance AlertBackup – Survey Questions/Results1.Where do you usually get price information for your shopping? Flyers and paper ads 50.0% Checking prices online 66.7% Friends and relatives 33.3% At the store 16.7%2. What type of products do you usually check in the flyers? Groceries and other weekly shopping 66.7% Hardware/Outdoor activities 66.7% Home appliances 16.7%3. How do you receive flyers now? In the mailbox 92.3% Electronic communication (Email/Web site etc.) 69.2% When you visit a store 15.4% Mobile Phone 0.0% Other forms 7.7%
Smart Shopper – Home Appliance Alert Backup – Survey Questions/Results4.At present, how would you rate the experience of finding the product of your choice from the flyers? Very convenient 30.8% Somewhat convenient 7.7% Difficult 38.5% Very Inconvenient 23.1%5. How often do you use websites to look for sales at your local stores? Very often 41.7% Only for costly items 25.0% I only check prices at stores 8.3% I never look for sales or promotions 25.0%6. If it was possible to summarize price information from all relevant flyers and provide you withsale prices for products of your choice, how would such a service improve your shoppingexperience? Very improved 69.2% Somewhat improved 7.7% Remain the same 15.4% Not Sure 7.7%
Smart Shopper – Home Appliance Alert Backup – Survey Questions/Results7.If such a service could save you $100 by identifying a product and store, how much would you pay for such a service? less than $5 61.5% $5-10 30.8% $10-$20 7.7% $20-$25 0.0% more than $25 0.0%8. What is the most suitable technology platform for you to use such a service? Web 61.5% Smart phone 46.2% Tablet 30.8% Conventional SMS [Phone text] 0.0% Email 23.1% None 0.0%9. When was the last time you purchased a home appliance? less than 1 year ago 46.2% in the last 2-3 years 15.4% in the last 4-5 years 0.0% 6+ years ago 38.5% never 0.0%
Smart Shopper – Home Appliance AlertBackup – Survey Questions/Results10.If a service was available to help you find sale price information for home appliances, how likely would you use it? Very likely 38.5% Likely 46.2% Not Likely 7.7% Not Interested At All 7.7% It depends on the cost of the service 0.0%