This document summarizes lessons learned from a lean entrepreneurship project session. It discusses approaches to validating a business idea like using customer problems/needs to define the product and running experiments. It also covers market segmentation criteria for deciding between business-to-business or business-to-consumer, and analyzing competitors using a SWOT analysis. Specific competitors for a company called TransMenu are listed and analyzed. The document ends by estimating potential market sizes using total addressable market, segmented addressable market, and share of market calculations for TransMenu's hospitality industry focus.

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
– Which problems / needs can product solve / fulfil?
– Experiments needed to validate solution (e.g.
Survey, Landing Page, A/B-Testing etc.)
• Market Segmentation
– First Decision: B2C or B2B?
– Apply corresponding (B2C / B2B) segmentation
criteria (Demographics, psychological, profile etc.)
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3. Lessons Learnt – Session 4 II
• Market Sizing
– Two approaches: Top- Down vs. Bottom-Up to
develop
TAM
SAM
SOM
Size of
Market
• Competitor Positioning:
- SWOT- Analysis
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4. 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
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5. 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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6. 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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7. 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 %

8. TAM, SAM, SOM II
TAM:
1.7 Mio. EU
Hospitality
Enterprises
SAM:
68.000 / 6.800
SOM::
9,65% /
2.280
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