#MarketValidation

[earlblog]

Presenting Rider Validation and Marketplace Fees"

Hello, entrepreneurs and people from the Philippines! Despite discovering that I posted a blog entry, I'm happy to be back in touch with you after a month. I'm here to discuss the most recent developments on our recently formed business idea with you, as I'm sure you've been waiting for updates.

Our aim with this validation is to secure agreement from our main partners regarding the commission percentage for our startup business and to validate our other key partner, the motorcycle riders. Our team suggests a 10% commission for both shop owners and riders for every order, distributed on a weekly basis. This is intended to ensure that our riders' earnings are fair, especially considering our startup status. Additionally, we propose setting a daily quota of at least 10 orders to maintain efficiency.

During our validation process, we returned stores that we had already vetted in February to negotiate a 10% commission per order for our company. Sungkab, a karenderia, offers a 5-10% variable fee depending on order size and price, with a minimum compensation of 120 pesos for each order. However, Kobi Kopi agreed to the 10% commission unconditionally.

We also interviewed motorcycle riders, our primary partners, and proposed a 10% commission for every order, five days a week, with a daily quota of ten orders. They accepted the terms and then inquired about exceeding the quota, to which we informed them that more deliveries would result in larger rewards. We suggested giving them a part of the delivery fee as well. The riders advocated being alerted of orders that they could potentially agree on.

Our validation documentation is shown in the photographs above. INSIGHTS: Our objective of recommending a 10% commission to our major partners was achieved. Implementing a quota ensures increased earnings for store owners alongside the commission, while riders benefit from meeting or surpassing daily targets. To enhance communication and decision-making, we'll improve our company's communication system. That's all for today's blog post. Stay safe, EarlBlog readers!

[phonemantra-blog]

Weeva, an innovative SaaS platform, has achieved a significant milestone by attaining GSTC-Recognized Standard status from the Global Sustainable Tourism Council® (GSTC®). This recognition solidifies Weeva's commitment to promoting sustainable practices within the tourism industry and marks a crucial step towards driving positive change for both people and the planet. What is Weeva? Weeva is an award-winning platform that empowers tourism businesses to embrace measurable and holistic sustainability practices. Through its comprehensive suite of digital tools, educational resources, and analytics, Weeva enables accommodation providers to monitor, manage, and improve their sustainability efforts across various parameters. Key Features of Weeva Weeva focuses on 18 parameters spanning Conservation, Culture, Community, and Commerce, allowing businesses to adopt a well-rounded approach to sustainability. By offering robust monitoring and reporting capabilities, Weeva helps organizations enhance operational efficiency and build resilience while driving positive impact. GSTC-Recognized Standard Status The GSTC-Recognized status signifies that Weeva's Sustainability Management Standard has undergone rigorous evaluation by GSTC technical experts and the Assurance Panel. It confirms that the standard aligns with the GSTC Criteria for sustainable tourism, encompassing Sustainable Management, Socioeconomic, Cultural, and Environmental principles. Market Validation With only a select number of destination standards, tour operator standards, hotel standards, and systems achieving GSTC-Recognized status, Weeva stands out as a leader in sustainable tourism. This recognition provides market proof of Weeva's adherence to international norms and standards, bolstering its credibility within the industry. Congratulations from Weeva Julie Cheetham, Managing Director and Co-founder of Weeva expresses excitement over achieving GSTC recognition, highlighting the team's dedication to meeting the highest standards of sustainability. Weeva's commitment to continuous improvement and best practices underscores its leadership in the field. Endorsement from GSTC Randy Durband, CEO of GSTC, commends Weeva for embracing the Four Pillars of the GSTC Criteria and adopting a holistic perspective on sustainability. By prioritizing environmental, social, and cultural dimensions, Weeva sets a benchmark for effective management and continual progress in sustainable tourism. Scope and Validity Weeva's standard applies to hotels and other accommodation providers globally, with its GSTC Recognition valid until any changes in the standard or the GSTC Industry Criteria. This ensures ongoing compliance with international best practices and standards of sustainability. FAQs: Q: What does GSTC-Recognized Standard status mean for Weeva? A: GSTC recognition validates that Weeva's Sustainability Management Standard meets international criteria for sustainable tourism, enhancing its credibility and market reputation. Q: How does Weeva help tourism businesses improve sustainability? A: Weeva provides a comprehensive suite of tools and resources for monitoring, managing, and improving sustainability across various parameters, empowering businesses to drive positive environmental and social impact. Q: What sets Weeva apart from other sustainability platforms? A: Weeva's holistic approach to sustainability, robust monitoring capabilities, and alignment with international standards, such as the GSTC Criteria, distinguish it as a leader in the field of sustainable tourism management.

[macelbacs]

Hi! It's me again. Last week, we were tasked to perform market validation for our customers and future business partners. 1. Hypothesis Definition The customers will be happy with the ease of the delivery service because they will receive their groceries in the comfort of their own homes. As for the business partners, the proposed business conditions are favorable to them because of the following reasons: 1. For the establishment/s who will be our main supplier for the groceries, it means more income for them since they are sure that we will purchase goods from them. 2. For the delivery manpower (CMU Students who wish to work), it is favorable for them since it will mean additional allowance for their expenses here at Central Mindanao University. 2. Hypothesis Testing For the last week, I asked two customers, one student who wants to be a delivery rider, and one supplier from outside CMU (refer to the attached picture). Customer 1: "Ganahan ko sa concept kay dili na bitaw hassle na magpalit pa ug ginagmay sa market tas magbalik balik pa. Ma plan napud nako ahead of time akong lutuon sa akong meals since makapalit man ko ug pang one week na budget kay ideliver na man siya." Customer 2: "Convenient siya for me as someone na hectic kaayo ang schedule kay dili nako mabalaka na mahutdan ko ug groceries sa boarding house. Unta apilan sad ug food and medicine if ever para isahan rasad nag palit tanan hehe." Delivery Rider: "Actually nice siya na concept kay makatabang siya sa students na gusto mag part time while ga skwela. I suggest lang na makahimo namo ug guidelines sa kung unsa ang requirement para ma hire ninyo, ang share per delivery, ug lain na mga butang na need ninyo sad iconsider para sa safety sa rider pero overall nice jud ang concept unta mahimo ninyo ni kay dako ni nga tabang sa uban." Supplier: "Okay lang ginahatod man ka namo sa CMU kada monday dalahon nalang nato ang stocks. Sa presyo, lower than SRP nako ihatag since direct man ta sa distributors mas gamay lang akong patong since in bulk man sad ninyo paliton. Pagsaba lang daan unsa na stocks imong kuhaon para mapalit sad sa distributors inig schedule nila. Okay rasad kay sure na nga naay mahalin sa stocks haha strictly cash sa imoha hahaha. Mayra sad nga nakahuna huna ka ana. Ayaw lang kalimot mag inventory para dili ka malugi haha." In summary, our hypothesis was accepted and it was deemed favorable for all parties involved.

3. Team Decision 1. Craft a partnership contract with the suppliers as a form of agreement to purchase goods in bulk lower than SRP. 2. Craft guidelines on how delivery riders will be paid and their benefits as business partners. 3. Look for more suppliers outside CMU for lower prices. 4. Take advantage of close connections in purchasing goods at supplier prices (family businesses). 5. Take into account buyers' suggestions like including pasabuy on food deliveries and other necessities aside from groceries. 4. Team's Options 1. Purchase groceries in bulk from CMU Market Pros: Accessible, Close to Campus Cons: Higher prices since they already bought it from somewhere else 2. Purchase groceries in bulk from close connections Pros: Lower than SRP since we will be given a special price, easy negotiations and agreements Con: A bit far from CMU 5. Lessons During our market validation, I have learned that starting a business is more than just thinking about the money that we will be using for the startup. There are a lot of things to consider aside from the capital fund for the business. Market Validation is very important in creating an insight on how people will react to your business. It will also give you an idea on how your business will impact other people's lives, it's impact to the current market, and the ways that you can do to sustain the business. I have also learned that being in the business world is more than just finding customers. As a businesswoman, I also need to form partnerships with suppliers and gain their trust that I can also help their business thrive while taking care of mine. What a long blog entry for this week haha. That's all guys! I hope you also learned something form reading my blog. See you in my next blog! Byeee!

[backershub]

Leveraging Crowdfunding for Market Validation

[aybaaan]

On the Journey to Pitch

During the course of this week, we engaged in a wide range of activities and discussions. However, there was a specific requirement that we needed to fulfill in order to continue with our pitching. Our task was to develop a product or service that not only benefits people but also allows us to generate income. As a group, we initially brainstormed and compiled a list of potential product or service ideas. The compilation consists of various ideas, including a food delivery app that provides access to all the food stalls on campus, an application that offers information about nearby boarding houses near CMU, an automatic traffic light sensor, an electric cup that adjusts its temperature according to the owner's preference, and a booking application that facilitates the transportation services such as motorelas or motorcycles for students and faculty members, where drivers can accept bookings through the app.

After carefully evaluating and assessing our ideas, we determined that our primary focus should be on creating a product that can make a significant impact on society. Ultimately, we selected a booking application called "PASAKAY," which combines the functionality of both motorelas and motorcycles. The intended users or target market for this app include motorela and motorcycle drivers, students, faculty members, staff, and residents in the Musuan area. Through the application, students, faculty, and staff will be able to conveniently book their transportation, while drivers can accept these bookings directly within the app. We opted for this particular application because, as CMU students, we have personally observed transportation issues on campus. While not everyone may have noticed it, we have observed that students residing in certain areas of Musuan face difficulties in accessing transportation. Additionally, there is limited vehicle availability for certain colleges within CMU, resulting in long waiting times for students. Consequently, some students are left with no alternative but to walk due to the lack of transportation options. That is the reason why we are actively promoting and supporting the development of this application.

During our venture proposal, the most significant recommendation put forth by our group was the importance of conducting market validation and considering the cost of developing the application. Therefore, this week, our focus is on carrying out the market validation process. As part of this, we have formulated a null hypothesis which is as follows:

No1: The motorela and motorcycle drivers are not in favor of the proposed application

No2: The students are reluctant to download and utilize the application due to its high cost

As part of our market validation process, we conducted interviews with students, motorcycle, and motorela drivers. Before proceeding with the interviews, we obtained their consent and asked if they were willing to answer our questions. We inquired about their possession of a gadget and their willingness to use the proposed application. Their feedback regarding the application was predominantly positive, which served as an encouragement for us to further promote its development.

Additionally, we received valuable input during these interviews. One important aspect we addressed was the exclusion of illegal transport vehicles from using the application. This issue has arisen among our own CMU motorela and motorcycle drivers due to the emergence of unauthorized transportation services. Therefore, in creating this application, we emphasize the principles of fairness and enhanced safety in transportation services.

After completing the market validation process, our team reached the conclusion that we had to “reject the null hypothesis”. The motorela and motorcycle drivers showed great enthusiasm for the proposed application. They expressed their satisfaction and appreciation, as they saw it as an opportunity to enhance their services and keep up with the advancements in technology. Additionally, students demonstrated a willingness to download and use the application, recognizing its potential to provide faster and safer transportation within the campus premises.

During this week, our team made some minor revisions to our revenue plans. Initially, we had considered implementing a commission structure of 10-15% on the total fare and incorporating advertising services. However, upon further reflection, we decided to revise this approach. We realized that including commissions would not take effect in getting a lot of users and having an ads from the start would add to the initial costs of developing our application. As newcomers to the market, it might not be feasible to attract businesses for advertising right away, as they are likely to observe our performance first. Additionally, considering the high cost of application development, we intend to collaborate with IT students and developers to reduce expenses and ensure easier maintenance of our application in the long run.

Throughout our journey this week, I have gained valuable insights. One of the key lessons I learned is the significance of evaluating various factors and conducting market validation prior to developing a product or service. This process allows us to truly understand the challenges faced by our target market, enabling us to develop effective solutions that address their needs.

[kentjasserdurias]

Compare prices with ComPrice

Kent Jasser L. Durias

Following the completion of our idea with our start-up, the team completed a series of activities to ensure that the market will patronize and use our application. The team has encountered challenges as we validate our market, but we believe that we have done enough interaction with the target market to ensure that we can do the necessary things, such as doing surveys and interviews, sending emails to some local retailers, and developing our prototype.

For the surveys and interviews, we asked several respondents and allowed them to answer a series of questions about whether they have felt the effects of rising commodity prices and whether they are willing to make more informed decisions. Fortunately for us, the majority of respondents have had this experience. Commodity prices are simply too high for them to bear. After reviewing the responses, the team determined that we could create a premium product.

Furthermore, the group issued a letter of request to all small, medium, and large businesses in Bukidnon. We tried to email them to see if they would be willing to provide some information regarding the prices of their items; while we did not obtain any responses from large corporations, we did receive favorable responses from a handful of stores we contacted.

Another project we completed was the digital prototype; it was difficult, time consuming, and a little stressful, but it was a worthwhile experience. We were able to put our editing talents to the test while also showcasing our creativity in developing the prototype. It was quite rewarding, and I had a lot of fun doing it.

In conclusion, the market has a wide range of needs from which we might draw inspiration. However whether the market is willing to utilize the solution we made for them, is up to the hands of the entrepreneurs to work hard and earn the validation of the market. Overall it was a great experience for me and observation about the market never stops.

[jushkabalagulan]

BLOG # 2: Market Validation and Customer Empathy Map

Hello there!  In this blog I will discuss to you my learning’s about Market Validation and Customer Empathy Map.

What is MARKET VALIDATION ?

It is the process of determining whether your product is of interest to a given market. Put simply it’s finding potential customers, ensuring there’s enough of them to sustain a business, and getting specific feedback on the product or service you want to offer.

Any entrepreneur you talk to will tell you that it is important to validate your business idea before actually starting a business. Validating your business idea can enable you to reasonably predict whether people will buy your product or service, and whether your business will be profitable.

It has been discussed that Market Validation is one of the most important things you can do for your business – whether you’re a startup or launching a new product. This is also crucial in every business because it helps you identify an existing problem that you would want to address and provide a solution, as well as possible competition. It’s important to validate your idea early in the entrepreneurial process to ensure you don’t waste time and resources creating a product that isn’t a good fit.

EVERY CUSTOMER COUNTS! 

OBSERVATION with curiosity & empathy Solicit information through: 

1. ASK – Open Ended Questions 

2. SEEING/SHADOWING – watching people & processes 

3. ENGAGING – participate in communication activities to uncover new patterns of behavior

VALIDATE BEFORE YOU BUILD!

By going through the process of validating your business idea, you can gain a deeper understanding of how your product does or doesn’t meet your target customers’ pain points. The insights you gain can help you create an offering that not only addresses your market segment’s needs, but earns you your first paying customers.

If you want to create a memorable experience for your customers you need to dig a little deeper into who your customer is and what they want. You need to get into your customers head and consider who they are influenced by, what their pain points are, and their goals and challenges. One of the most popular ways to extrapolate this information and begin improving your customers experience is by using a Customer Empathy Map.

What is CUSTOMER EMPATHY MAP ?

It is a tool used when collecting data about customers to better understand your target customer base. They allow you to visualize customer needs, condense customer data into a clear, simple chart, and help you see what customers want — not what you think they want. 

When we look at empathy from a marketing perspective, we’re talking about putting ourselves into our customers shoes, to be able to understand their needs and wants better. And thus, deliver a product or service that not only meets but exceeds their expectations!  At its core, innovation is about solving someone’s problem. To do it right, you need to understand the person and their job to be done better than they understand it themselves. You need to know their motivations, frustrations and inspirations. This ability to understand your customers needs better than they understand themselves

In this lesson, an empathy map is a simple, easy-to-digest visual that captures knowledge about a user’s behaviors and attitudes. It is a useful tool to helps teams better understand their users.

ELEMENTS & STEPS :

The representation of the user is often a large empty head. Around the user, the sheet is divided into sections or quadrants. Each section is labeled with a category that explores the user’s external, observable world, and internal mindset: what the user is doing, seeing, hearing, thinking, and feeling (including pains and gains).

Step 1: Establish Focus and Goals

Who is the person for the map?

What is the desired outcome?

Step 2: Capture the Outside World

What does she SEE?

What does she DO and SAY?

What does she HEAR?

Step 3: Explore Inside the Mind

What does she THINK and FEEL?

PAINS and GAINS 

Step 4: Summarize and Share

Tips for an Effective Empathy Mapping Session

Don’t get hung up on what goes where.

Only explore what matters about the user’s perceptions related to the project goal.

Adapt the map for your situation and needs.

I learned that by understanding what your customers think, feel, say and do you can develop rich insight which helps you to identify genuine issues, problems or concerns that your customer may have right now. In turn, this equips you to create solutions that are aimed at truly enhancing your customer experience. Empathy mapping digs deep into the mind of your customer, it will help you to clearly identify their evolved wants and needs and theme key positive and negative areas for your specific focus.

[janmarielduayao]

Market Validation

WEEK 3

During the interview phase, the interviewees reveal their disagreement, concerns and even additional information that we didn't think beforehand when choosing these ideas since we are still students and our knowledge and experience are lacking. The opinions from professionals are a great help for us to narrow our options and decide which among the ideas is worth pursuing that is which one in marketable and at the same time, practical.

I think the hardest challenge in this phase is gaining the trust of the potential customers. Since these ideas are fresh and new to the market, they are still doubtful about the success of each idea which is normal on their part. I can see why start up has a lot of revisions before the success of a product/service. I realize that a successful business is not all about the underlying idea of product/service whether it has the best idea or not but the suitability of the product/service to the market.

The market is always the mold when designing new product/service.

Images: CTTO

| Jan Mariel J. Duayao | BSCE 3B | ES 302 |

[magayonprincess]

So far, the group had already settled with a solution that interests the target market more, which is the mobile application tentatively entitled, “Sundo: Reserbarela & Habal-habol”. However, there is still a need to consult the target market and explore the advantages and disadvantages of the solution further. This market validation has been undertaken in order to see if:

GENERAL HYPOTHESIS

The target market is in need of a solution for tardiness to classes, work, appointments, etc. and is knowledgeable of mobile applications for public transport rides. 

A total of ten (10) respondents who are included in the target market were interviewed and results show as follows;

When asked first about their familiarity to any application used for booking transport rides, 80% answered Grab. Consequently, the respondents’ positive perceptions of the usage of these apps would likely indicate if they think that these mobile apps are of good use. In this case, 70% responded that these apps provided convenience. To look for opportunities, follow-up questions were asked of their perception about the usage of transport systems. As shown above, it seemed like 60% choose a commonly-used transport vehicle and 80% see that the use of these vehicles is a hassle due to being crowded - which indicates an opportunity to offer solutions.

The respondents were also asked of particular questions about the current transport systems and booking applications in order to know what they can say about each one. 70% expressed positive perceptions about the transport system, as opposed to the negative results when asked about their perception to its usage. Surprisingly, the respondents also considered the perspectives of drivers as medium- to low-income earners. This finding had the group thinking of having the application as a two-way service, which benefits both the driver and the passenger. However, they also expressed negative ideas about their transport experience (60%), supported by their claim of having difficulties (60%). Since the preceding data show that there is a problem with their ways of transportation, they were also asked of what they can say about booking apps. As supported by the data in the previous item (for their observations), more than half (60%) expressed positive ideas about booking apps.

For us to see what ways of transportation the respondents prefer, they were asked of specific questions regarding the transportation vehicle that they use, or if they prefer walking instead. There were actually two other responses namely, bus and taxi. However, these were omitted from the graph above as they prove no relevance to the group’s proposed solution. As shown, 90% use motorela while 50% use habal-habal, which validates the group’s initial hypothesis that these transport vehicles are necessary to be included in the application. On the other hand, 70% prefer walking as a mode of transportation either due to the difficulties that they see in the transport systems, or the benefits that it may bring.

Relatively, specific influencing factors related to the choice of transport system, awareness to existing transport booking apps, and potential competitors were assessed. 80% of the respondents heard of booking apps in the Philippines, as supported by the result in the first item above. Meanwhile, 100% heard of no booking apps in Bukidnon, which indicates the likelihood of the group being the first and only startup to touch the concept of booking transport vehicles in the region. Three influencing factors were initially determined; Allowance, Comfortability, and Friends. Out of 10 respondents, 40% had an average of 30-40Php allowance for travel within the university. This data could help in setting the pricing for the fare, which the group aims to be affordable (for the passenger), and profitable (for the driver and the team) at the same time. Furthermore, 60% say that they are uncomfortable upon riding the motorela/habal-habal and 80% experienced difficulties together with their friends upon transport. Hence, the team suggests that the vehicles to be used should cater the needs of a single (in terms of comfortability) and a group of passengers. As discussed in the previous blog entry, it is wise for the app to include a “barkada ride” feature since riding as a group of friends would influence the transport experience.

After assessing the external environment, it is vital to look at the minds of the target market as well. Deep down their hypothalamus, this aspect aims to cultivate negative feelings from the respondents in order to strengthen the initial hypothesis about having problems with transport systems and the need for a solution. Pre-determined problems, as discussed in the previous blog, were used during questioning. 90% expressed negative feelings such as frustrations, dissatisfaction, and etc. about the “Campus Tour” and 80% had negative feelings about being rejected of the destination (as supported by respondent #4 in the previous blog). Moreover, 90% shared negative feelings about coming late to classes, work, appointments, etc. This problem, being late, serves as the umbrella problem that our solution tries to solve. Hence, it is beneficial for the project to have almost 100% of the respondents to have negative thoughts and feelings about this concern. Importantly, 70% had negative feelings about having a tight space upon riding the motorela, which suggests necessary adjustments with the current system of forcing passengers despite the lack of space.

Of course, if a person has frustrations, he/she should also have mechanisms to cope with these negative feelings. The respondents were assessed of their strengths when faced with a certain problem, to bring out possible sub-solutions to be added with the benefits and features of the proposed application. When asked of the respondents’ reaction and move during a campus tour, 60% prefer to stay put and be patient despite the consequences. Furthermore, 60% prefer to run when the motorela plans to make the vehicle full before departure and 100% choose to walk or run at times when transport vehicles are inaccessible. Based on these findings, the application could provide convenience to conserve time and effort of both the passenger, upon walking/running, and the driver, upon gathering passengers.

THE BOTTOMLINE

Tentatively entitled as “Sundo: Reserbarela and Habal-habol”, the project aims to provide a convenient solution to the previously-verified umbrella problem of the target market which is being late to classes, work, appointments, etc. through offering a mobile application for booking transport vehicles. In view of this, the two main paths to take that depend on this market validation are to either continue with the solution, or come up with another idea. Due to confining results that align with and favor the hypothesis and goal, the team has come to a conclusion of pushing through with the development of the proposed mobile application, as supported by the interest of the target market with existing concepts of booking apps such as Grab and Angkas, and the presence of alarming concerns and difficulties of the current transport system in the university that need to be solved.

CULTIVATED INSIGHTS

Compared to the previous data gathering, having the empathy map as a guide for the interviews paved the way for a more systematic, holistic, and in-depth approach to market validation. As I was interviewing, the perspectives of the respondents regarding different aspects seemed to be threads in a cloth that confine each other and align with desired responses that validate the need to propose a solution. Indeed, considering and personally seeing the target market’s external environment as well as their minds are helpful since both the team and the target market work together to address the pre-determined, and now fully-verified umbrella problem.

For documentation purposes, the screenshots of conversations/interviews with the respondents can be viewed here:

Group 2 - Documentation (Screenshots)

[surveycircle]

Participants needed for online survey! Topic: "Validating an idea for a startup platform for entrepreneurs" https://t.co/ySe7qZ5bhk via @SurveyCircle#MarketResearch #startup #PaidSurveys #MarketValidation #entrepreneurship #survey #surveycircle pic.twitter.com/VS0mJ28yB3

— Daily Research @SurveyCircle (@daily_research) June 6, 2020

[gabetheory]

Everpurse Shadow Testing

Shadow testing is when you sell a product offering to your customers before it actually exists. Product pre-orders are a common example. Kickstarter is shadow testing on a grand scale.

The primary benefit to shadow testing is to gauge demand and help mitigate the biggest risk of any product or service: not having a viable market.

Everpurse makes good use of shadow testing here since it gives the company a nice, clean way to test different clutch colors and materials before placing larger orders with their vendors.

As a younger company, cash flow is always an issue. In the event an offering underperforms, they can simply refund their customers and offer another incentive for the inconvenience (e.g. $10 credit) in order to stay focused on more profitable products.

Discount merchants like Gilt or JackThreads do it all the time. JT just cancelled a sweater I wanted and gave me a $10 credit.

I could talk more about that, but I think that's a customer experience post.