The document discusses a proposed online service called "Home Appliance Alert" that would review weekly flyer deals from local stores and notify subscribers about appliance sales and promotions. It provides an overview of the target market size and demographics in Canada, and estimates that 15,750 potential customers could be reached. Early customer development experiments through surveys and online classified ads showed some support for the value proposition but failed to generate any customers. The conclusions recommend not proceeding with the business yet and conducting more customer experiments to better validate the concept before fully launching the product.
1. Home Appliance Alerts
Product Description & Market Size
Product Development
Customer Development Experiments
Conclusions
2. Smart Shopper – Home Appliance Alert
Product Description
For Canadian shoppers looking for home appliances
who don't have time to read newspaper flyers every week,
the "Home Appliance Alert" service is an online service
that reviews weekly flyers from local stores and
sends you information about appliance sales and promotions.
It saves you time!
It saves you money!
It removes the hassle of watching out for home appliance deals!
Let the “Home Appliance Alert” service start working for you today!
3. Smart Shopper – Home Appliance Alert
OAP 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
OAP Results: 6 out of 16 people would pay $5 or more for a
home appliance flyer alert service
4. Smart Shopper – Home Appliance Alert
Product Development
Built standalone WordPress website (see following screenshots)
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8. Smart Shopper – Home Appliance Alert
Customer Development Experiments
Channels: Survey Monkey, Kijiji, Craig's List, UsedOttawa.com
a) Survey Monkey: Home Appliance Shopping Experience
http://www.surveymonkey.com/s/YHV8Z3B
- 9 Responses
- 78% Planned purchases [value proposition support]
- 22% Used weekly flyers [weak value proposition support]
- 88.9% Believe price is imporant [value proposition support]
- Gained better understanding of home appliance purchase behaviour
b) Online Classified ads: Kijiji, Craig's List, UsedOttawa.com
- 57 Views
- 0 Responses
9. Smart Shopper – Home Appliance Alert
Conclusions: Do Not Proceed!
1) Value Proposition
- Survey evidence of support, but more proof required
2) Customers
- No customers yet; continue customer development experiments
3) Channels
- Web Channels working, but need to move in-person engagement
4) Key Resources:
- Team started at four and ended up with two active; Must revisit
- Strong working relationship is developing (Canada & Australia)
“Get Out Of The Building!” - More Experiments!
10. Smart Shopper – Home Appliance Alert
Backup – Survey Questions
(9 Responses)
1. Why did you purchase your last home appliance?
16.7% Moved into new home
33.3% Replaced last appliance because it broke
0% Replaced last appliance because it was not energy efficient
50% Replaced last appliance because it was too old
Other (please specify) 1)Kitchen Renovations, 2) Needed extra one, 3) Did not have one
2. Was your last home appliance purchase a planned event or was it an emergency replacement?
77.8% Planned
22.2% Emergency Replacement
3. What research did you do before purchasing your last home appliance?
11.1% Read Consumer Reports
0% Friends & Family
33.3% Online search (e.g. Google)
55.6% Visited local stores and talked to sales people
22.2% Looked at weekly flyers
0% Used Government Resources (eg. Energuide Canada)
11.1% None, did not do any research
Other (please specify)
11. Smart Shopper – Home Appliance Alert
Backup – Survey Questions/Results
4. If you researched your purchase online, where do you get your information?
40% Google 0% YouTube
0% Bing 60% Retailer Website
0% Yahoo 40% Manufacturer Website
0% Facebook 20% Shopping Deals Website
0% Twitter Other (please specify)
0% Blogs consumersearch.com
0% Kijiji
5. What factors do you feel are most important for your home appliance purchase?
88.9% Price
11.1% Financing
22.2% Clearance and/or Special Deals
44.4% Physical Size (i.e. fits into existing space)
55.6% Brand
66.7% Quality
77.8% Product Features
11.1% Product/Retailer Warranties
44.4% Delivery, Installation & Disposal Costs
Other (please specify)
12. Smart Shopper – Home Appliance Alert
Backup – Survey Questions/Results
6. Did you need help from others to support your last home appliance purchase?
55.6% Yes, for delivery
55.6% Yes, for installation
66.7% Yes, for disposal of old appliance
22.2% No
7. If yes in previous question, who helped you?
12.5% Unpaid, Friends and Family
12.5% Unpaid, Retailer
75% Paid, Retailer
0% Paid, Third party service person (e.g. moving/disposal comapny, plumber, electrician, etc.)
0% Other (please specify)
8. For Canadian home appliance shoppers, from which retailers would you consider purchasing a home appliance?
50% Future Shop 25% Local Home Appliance Store
50% Home Depot 33% Other (please specify)
0% Leon's Corbeil (local Ottawa retailer)
0% Lowes
62.5% Sears
12.5% The Brick
12.5% Not Applicable
13. Smart Shopper – Home Appliance Alert
Backup – Survey Questions/Results
9. Do you need a home appliance now or will you need one in the next three months?
0% Yes
100% No
10. If yes in the previous question, are you interested in paying $5 to receive assistance on your purchase?
14.3% Yes - Please send an email to dbmackey@modshopper.com
28.6% No
57.1% Not Applicable
14. Smart Shopper – Home Appliance Alert
Backup – Classified Ads
Home Appliance Shopping Service
Are you tired of searching Kijiji and flyers looking for the best deal on your new home appliance?
If yes, I can help. I'd love to save you time and money by becoming your personal home appliance
shopping assistant.
The cost is only a small fee of $4.99. I promise to give you your money back if you're not satisfied
with my service.
Let me help you find the right appliance at the right price. Please contact me to get started today
Kijiji Views = 38
UsedOttawa.com Views = 19
Craig's List = ?? (no on-site tracking metrics)
Total Responses =0