Hypothesis LEP session 7 TransMenu

Lean Entrepreneurship Project
FreshEntrepreneurs2014
World Menu
Session 7
Pauline von Nostitz 152113321
Pedro Mariz 152113366
Maria Murasheva 159114599

Hypothesis
Component: Customer Segment
Hypothesis Restaurants, hotels and cafés face the problem of
language barrier with their customers.
Test Conduct 24 interviews with restaurants, which are
located within touristic areas and offer medium to
high priced food & beverage.
Validation If a minimum of 65% of participated restaurants
confirm language barrier problems.
Result 75% (18/24) of participants confirmed they are
experiencing language barrier problems and
therefore the hypothesis can be considered as
valid.
26.09.14 FreshEntrepreneurs2014
2

Hypothesis
Component: Value Proposition
Hypothesis The maintenance & updating of menus is a time-consuming,
labour intensive task Restaurants,
hotels and cafés would prefer to outsource.
Test Conduct 24 interviews with restaurants, which
are located within touristic areas and offer
medium to high priced food & beverage.
Validation If a minimum of 65% of participated restaurants
confirm language barrier problems.
Result 75% (18/24) of participants confirmed they are
experiencing language barrier problems and
valid.
26.09.14 FreshEntrepreneurs2014 3

Component: Channels
Hypothesis
Hypothesis Service can be offered directly (no intermediaries)
to clients through a website as nowadays people
accept online services easily.
Test Creation of two different landing pages with a call
for action (enter email address) and sending it to
numerous restaurants / post it on blogs (scoop.it,
Quora, Hacker News).
Validation Achieve a conversion rate of 10-20%.
Result A conversion rate of 12,3% was reached and
valid.

Landing Pages I

Landing Page II

Creating traffic - Scoop.it
http://www.scoop.it/t/transmen

Creating traffic - Quora

Creating traffic - Hacker News
https://news.ycombinator.com/user?i
d=Transmenu

Channels – Rank & Select

Component: Channels
Hypothesis
Hypothesis Direct E-Mail Marketing as the main channel.
Test Creating of Email introducing TransMenu including
a link to one of the landing pages and sending it to
13 restaurants (most popular ones in Lisbon
according to Trip Advisor).
Result A conversion rate of 23% (3/13) was reached and
valid.

Direct E-Mail Marketing

Component: Channels
Hypothesis
Hypothesis Social Media as complementary marketing
channel.
Test Post link to landing page onto Facebook pages of
restaurants. Send private message to restaurants
containing information about TransMenu.
Result A conversion rate of 12% (6/50) was reached and
valid.

Social Media I

Social Media II

Hypothesis
Component: Customer Relationships
Hypothesis The best way World Menus can offer its service is
through web based personal assistance (no
establishments of physical offices).
located within touristic areas and offer medium to high
priced food & beverage.
Validation If survey results show at least 65% of restaurant
owners would accept a web based service offering.
Result 91% (22/24) participants confirmed they would accept
a web based offering of the service and therefore the
hypothesis can be considered as valid .

Hypothesis
Component: Revenue Streams
Hypothesis Restaurants will be willing to pay a fixed “menu” price
for each translation language.
owners would accept a fixed price per language.
Result 70% (17/24) of participants confirmed they would be
willing to pay fixed “menu” price for each translation
language and therefore the hypothesis can be
considered as valid.

Hypothesis
Hypothesis Restaurants will be willing to pay a monthly
maintenance / change fee.
owners would accept a fixed monthly maintenance
fee.
Result Only 42% (10/24) participants stated they would be
willing to pay monthly maintenance / change fee and
therefore the hypothesis can NOT be considered as
valid.

Hypothesis - Pivoted
Hypothesis Restaurants will be willing to pay a quarterly
maintenance / change fee.
Test Conduct 5 follow-up interviews with restaurants,
which are located within touristic areas and offer
medium to high priced food & beverage.
owners would accept a fixed monthly maintenance
fee.
Result 80 % (4/5) participants stated they would be willing to
pay quarterly maintenance / change fee and therefore
the hypothesis can be considered as valid.

Hypothesis
Component: Key Partnerships
Hypothesis World Menu will enter long-term partnerships with
translation agencies, which entail the intellectual
property and resources to offer its service in a cost
efficient way.
Test Schedule telephone interviews with three translation
agencies gathering information about their offers and
ask them about their willingness to work with
TransMenu.
Validation If at least 2 agencies (66%) can be found which offer
service at reasonable price and are willing to work
with TransMenu.
Result Translation agencies charge on average 0.10-0.16
Cents per word. All three agencies would generally be
willing to enter long-term partnership with TransMenu
offering service at slightly lower price due to quantity
discounts.

Translation agencies - Contacts
• http://www.alphatrad.pt/
• http://www.apportugal.com/
• http://www.multilingues.eu/

Hypothesis
Component: Key Partnerships
Hypothesis World Menu will enter long-term partnerships with
printing agencies, which entail the required machinery
and design knowledge to offer its service in a cost
efficient way.
Test Schedule telephone interviews with three printing
companies gathering information about their offers
and ask them about their willingness to work with
TransMenu.
Validation If at least 2 companies (66%) can be found which offer
service at reasonable price and are willing to work
with TransMenu.
Result Printing companies charge on average between 1-5
Euros per Menu depending on menu style & design.
Two out of three companies would generally be willing
to enter long-term partnership with TransMenu
offering service at slightly lower price due to quantity
discounts.

Printing agencies - Contacts
• http://www.lojadasementas.pt/
• http://acertodigital.com/menuementa.html
• http://milideiasdesign.wordpress.com/2014/0
2/03/ementas-de-cortica-para-restaurante/

Interviews – Findings
0 5 10 15 20 25
No
Yes
Serving foreign clients

25
20
15
10
5
0
Yes No

16
14
12
10
8
6
4
2
0
Weekly number of serving foreign clients
0 1-3 5-9 10-15 16 or
more
Weekly number of serving
foreign clients

25
20
15
10
5
0
Offering Physical Menus (Non-Portuguese)
Yes No
Offering Physical Menus
(Non-Portuguese)
Other languages
offered: English,
Russian

Current Translation Method (Non-Portuguese Menus)
0 2 4 6 8 10
Translation Smartphone
Internet
App
Friend (charge)
Friend (no charge)
Internal Employee
Translation Agency
Current Translation
Method (Non-Portuguese
Menus)

16
14
12
10
8
6
4
2
0
Adjustment Physical Menu in case of seasonal / weekly
menu changes (Non-Portuguese)
Yes No
Adjustment Physical
Menu in case of seasonal /
weekly menu changes
(Non-Portuguese)
Small changes are
translated by employees
directly, more significant
changes are incorporated
into menu

• Advantages of current translation method:
– Internal Employee: Saves time, money, no dealing with third /
external company, „high quality“ as work for boss
– Translation Agency: High quality, convenience of outsourcing
– Friends: Low to no charge, “high quality” as work for a friend
– Internet: Wide range of languages, speed, no costs
– App: Simple usage, wide range of apps

• Disadvantages of current translation method:
– Internal Employee: “Misuse” of employees, source of errors
– Translation Agency: High costs, inconvenience of outsourcing
– Friends: Source of errors, difficult to mix friends & business
– Internet: Source of errors, different translations offered
– App: Source of errors, some costly, enduring process typing in
words / phrases

20
18
16
14
12
10
8
6
4
2
0
Complains about Language Barriers (Employees /
Customers)
Yes No
Complains about
Language Barriers
(Employees / Customers)

20
18
16
14
12
10
8
6
4
2
0
Serving foreign clients - time consuming task
Yes No
Serving foreign clients -
time consuming task

Language Barriers - Consequences
0 5 10 15 20 25
Increased wages for
multilingual employees
Loss of potenatial business
due to translation errors
Waste of money Translating
menus
Waste of time Translating
menus
Unmotivated Employees
Unsatisfied Customers
Language Barriers -
Consequences

7
6
5
4
3
2
1
0
Best Solution to Language Problem
Best Solution to Language
Problem

13.5
13
12.5
12
11.5
11
10.5
10
Familarity QR-codes
Yes No
Familarity QR-codes

16
14
12
10
8
6
4
2
0
Willingness to use QR-codes in own restaurant
Yes No
Willingness to use QR-codes
in own restaurant
However, concerns
were raised  Next
slide!

Usage of QR-Codes (Concerns)
0 5 10 15 20
Confusion of
employees
Confusion of
customers
Lack of personal
touch
Usage of QR-Codes
(Concerns)

18
16
14
12
10
8
6
4
2
0
Willigness pay fix price per language
Yes No
Willigness pay fix
price per language

Willigness to pay - price range
0 5 10 15
16 Euros or more
11-15 Euros
6-10 Euros
1-5 Euros
Willigness to pay -
price range

12
10
8
6
4
2
0
Willigness to pay monthly Maintenance
Fee
Yes No
Willigness to pay
monthly
Maintenance Fee

Amount monthly Maintenance Fee
0 5 10 15 20
12 Euro or more
8-11 Euro
4-7 Euro
1-3 Euro
Amount monthly
Maintenance Fee

TransMenu - Main Problem Solution to
0 5 10 15
Increased wages for
multilingual employees
Loss of potential business due
to translation errors
Waste of money translating
menus
Waste of time translating
menus
Unmotivated Employees
Unsatisfied Customers
TransMenu - Main
Problem Solution
to

Hypothesis LEP session 7 TransMenu

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