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Ethical shopper
1. ES
Ethical Shopper
Stanford Venture Lab 2012
technology entrepreneurship
2. Description
We connect consumers with this relevant information
through an intuitive and powerful mobile app that can
scan barcodes and return a headline score across a
range of important factors such a
sustainability, community/workers rights and animal
rights etc.
We also provide useful and relevant product and
services recommendations based on tracked user ID
behavior (what did they scan, what did they
purchase, where, when etc).
5. We need an App that tells you
the truth – in plain language
6. Assumptions
Smartphone penetration will continue to increase
rapidly, and so will consumers' willingness to use
smartphone apps to improve their lives.
Consumers' willingness to use smartphone apps to
improve their lives will also increase.
7. Validation
The business concept for Ethical Shopper was
assessed qualitatively with potential users of the app.
Following this, a quantitative survey was published
online, with 61 responses received.
Generally there appears to be a considerable level of
support for the Ethical Shopper app amongst potential
users.
The survey findings are detailed on Slides 10-23.
8. Summary of findings
Smartphone usage in New Zealand is increasing rapidly. Apple is
the leading platform at present, with Android catching up fast.
Only 3 in 10 of smartphone users currently use their phone while
shopping to check ethical / sustainability criteria of products.
However, a majority of survey respondents say ethical /
sustainability considerations affect their purchase decisions.
Accordingly, an app which allows consumers to check ethical /
sustainability criteria of products during their shopping in an easy
and time-effective way will be attractive.
The app can be supported through targeted advertising using an
ad mediation service.
9. Will people use an app to help
make ethical purchases?
Our research has shown that currently, fewer people
than popular hype may suggest are using mobile
phones to research products prior to purchasing
decisions.
This may be due to the apps that are available do not
meet the needs of the consumer as our research
indicates that people will use an app like our ethical
shopper app, in-store to assist them to make an ethical
purchase.
10. Total Market Size
There are 3 major MNO (mobile network operators) that service the NZ
market, penetration of mobile phones is currently at 120% (4.6 million
handsets) and growing consistently.
Smartphone penetration is at 17% and estimated to grow to 60% (Gartner) by
the end of 2013. This is due to the large number of New Zealanders that are
currently on pre-paid accounts that buy the phone out right, and the operators
now bringing in low cost Android devices.
17% equates to approximately 750,000 devices of which 73% are Apple
devices and most on plan (24 months). If Smartphone penetration grows at the
predicted rate, the total addressable market in 2013 with be in excess of 2.5
million handsets.
Predicted Revenues for New Zealand :The total addressable Smartphone
market is 750,000 users therefore total ad network revenues year 17.5 x
12,240 = $91,800
The market will grow to 2.5 million in 2013 year 225 - 7.5 (they already have it
or have tried it) x 12,240 =$214,200
11. Target market
New Zealand is a small market and will be used a launch pad and test
centre for products but the target markets will be Australia and the UK.
Australia ranks as the world's leading Smartphone market by
penetration, with 37% of mobile users using a Smartphone in Sept
2011, projected to grow to 50% by end 2011 (source: Google) and
perhaps 75% by end 2013.
Consumer attitudes towards conscious consumption in both Australia and
New Zealand are similar with strong growth reported.
The demographic in both countries is the same:
•Middle to high income
•Well educated
•28 - 48 age group
•Both male and female
12. Develop in the cloud
An essential learning that we made is that to New
Zealand market is sufficiently large to cover the costs of
developing the application and social web site,
expansion to Australia is required within the first two
years to ensure the viability of this venture.
The New Zealand market is not large enough to justify
the expense of infrastructure ownership. The cloud
provides a reliable and scalable environment that is
accessible to all our target markets.
13. Develop in html5
The New Zealand Smartphone market is currently
dominated by the iPhone which has 72% of market share
(Gartner).
This share is rapidly being eroded by Android, this largely
to do with the New Zealand mobile network operators
bringing in a greater variety of Android devices at a lower
price point.
Given that users have more and more choice of
handsets, supporting different OSs we have made a
decision to build our app in html5 to decrease HR capital
to support multiple handset platforms.
14. Reports
Individual reports have been prepared on:
1. Potential size of the Ethical Shopper opportunity, with
a focus on the New Zealand market which is proposed
for the early release of the app.
2. More detailed findings of the consumer survey.
15. Appendix: The survey
This document captures the graphical output of the
ethical shopper survey http://goo.gl/CHc2r that was
created to validate the hypothesis:
There are a growing number of consumers who wish to
make a conscious choice to support ethical traders.
These consumers are always ‘connected’ with their
access to Smart phones, so they will use a simple app in-
store to assist them to make the right choice for their
budget and cause.
16. Do you own a Smartphone? If so, what
platform does it run on?
30
27
25
20
18
15
12
10
5
2 2
0
Apple Android Windows Phone Blackberry I do not own a smartphone
17. If you did own a Smartphone, do you use
your Smartphone to research products
whilst out shopping?
18
16
14
12
Number of responses
10
8
6
4
2
0
No, never Every
shopping trip
19. How important would ethical/sustainable
credentials be for you versus the price of
an item?
16
14
14
13
12
Number of responses
10
10
8
7
6
6
4
4
3
2
2
1 1
0
20. How easy do you feel it is to get
clear, concise information on a product to
assess its green/ethical credentials?
16
14
12
Number of responses
10
8
6
4
2
0
Impossible, unclear Extremely easy, clear
21. How confident are you that the information
provided on packaging, labeling, etc. is
accurate and true?
14
12
10
Number of responses
8
6
4
2
0
Not confident Very
at all confident
22. If you did have a Smartphone, if you had access to an app
that would allow you to quickly and easily (under 30
seconds) scan a barcode to get independent information
on a products green credentials, how likely would you be
to use it when making purchasing decisions
14
12
10
Number of responses
8
6
4
2
0
Never Always
23. If you had access to an app that would recommend a top
selection of products within specific groups (e.g. the
most green washing up powders, free range eggs), how
likely to would you be to use it when making purchasing
decisions?
16
14
12
Number of responses
10
8
6
4
2
0
Never Always
24. If you did have a Smartphone, if you had access to an app
that would allow you to rate and share recommendations
or reviews on green products, how likely would you be to
use this feature?
12
10
8
Number of responses
6
4
2
0
Never Always
25. How likely would you be to use such community
generated reviews to make your own purchasing
decisions?
16
14
12
Number of responses
10
8
6
4
2
0
Very unlikely Very likely
26. How interested would you be to receive specific
brand/product promotions and discounts for items you
regularly purchased or identified as a preference?
14
12
10
Number of responses
8
6
4
2
0
Not Very
interested at interested
all
28. Are you the shopper for the household?
5%
Always or mostly do the
shopping for you or your
household
33% Sometimes do the
shopping for you or your
household
62% Rarely do the shopping
for you or your household