THE LEAN EXPLORERS 21.11.13 Session 9. Presenting the: The TempBox

By: Manuel Holousch, Charlotte Manojlovic, Erick Tavares and Martine Ulvin

Hypothesis forms revenue streams

Hypotesis tested by 21.11.13

Customer segments - Interviews Value propostition Attributes and price- survey, landingpage, interviews, fakesale Channels - Survey, InterviewsRevenue streams - Transactions, advertisement & intermediaries Cost structure - Data collection

Component: Revenue Streams Code: RS02

Hypothesis Costumers are willing to pay 30 Euros. Customers show interest in the product priced at 30 Euros.

Test Survey, Interview

Additional: Fake Sale, Landing Page,

Validation > 75% of people who are interesting in buying it would be willing to pay 30 Euros for it.

Result From our survey we have that 37/ 39 think our TempBox should be more expensive than a similar box without the heating benefit. Survey: Price average = 26 € % over 30 € = 36 %

www.fabricadestartups.comCopyright Fábrica de Startups, S.A.

Hypothesis Form Lean Explorers Version 2.0

Component: Revenue Streams Code: RS01

Hypothesis Other companies would be willing to sell related products on our site?

Test Contact potential companies whether they are interested or not.

Validation More than 50% interested

Result Still to be tested

www.fabricadestartups.comCopyright Fábrica de Startups, S.A.

Hypothesis Form Lean ExplorersVersion 2.0

Component: Revenue Streams Code: RS03

Hypothesis

If there is enough traffic on our page we could earn money by advertising related products

Test Empirical Data Collection / Existing Data

Validation

Result Still to be tested

www.fabricadestartups.comCopyright Fábrica de Startups, S.A.

Hypothesis Form Lean ExplorersVersion 2.0

Testing tools: Internet – social media

Presented last week:

- Facebook - Blog- Landing page

New adds this week:

- Linked In - Twitter- Continue testing by Landing pages - Fakesale- Web page

Testing tools: Interviews and surveys

Presented previously

- Interviews

New adds this week

- Surveys

Testing tools: Minimun Viable Product

- Prototype in 3 D - Use of the Foodskin picture

MVP 3: Prototype 3D design

Costing the TempBox Tempbox 1000 units

Box 1.65Heating Mat 6.98Silicone Top 1.64AC adaptor 2.35Insulator 0.17car charger 0.83Total 13.62

Pre shipping Total in euros 10.03794

Shipping costs air rate 2.3fuel tax 1.25anti theft insurance 0.15carrier 0.025document validation 0.055delivery 0.03075with vatAMS 0.0055

After Shipping Total in dollars 17.43625Total in euros 12.85

Pricing the TempBox:

CostSelling price to distribution

Manu-facturer margin

Distributor sells

Distrib-utor margin

Public pricing

Retailer margin

Public pricing with vat

cost euros/ unit 12.85 18.36 30.00% 22.95 0.20 35.30 0.35 43.42

Without Distributor

Price inc. VAT 22.58

• Minimum Price = Direct costs (12.85) + Retailer Margin (30%) + VAT (23%)=

22.58• Must consider advertising, warehousing, selling costs etc.• Aim: 30% manufacturer margin• Price based on substitutes and considering survey responses and landing pages = 29.99 € *•First production limited, if go via retailer: will face working capital problems as requires high scale financing.•Begin on-line, if establish a Best Seller will expand to retail

*Price Protection Clause (not legal, retailers require it in contracts)

The Business Model 2.0

Hypothesis validation results:

2 surveys:

https://www.surveymonkey.com/s/6KV5R7W

https://www.surveymonkey.com/s/27XNW6Y

Hypothesis Testing Validation Results

Many workers & student face a lack of food choice

Survey >75% agreewe have 72% agreed for the moment.

the tempbox is a convenient product

SurveyConcluded from other questions

Validated from other questions

People on the go appreciate the ability to bring their own food

Survey >60% agreelast slide of this presentation

Heatability influence buy decision

Survey >70% agree>80% = more than expected

Price the customer is willing to pay

Survey (open question)

25/35 euros

From the average: 25,3€

1/3 evaluate it > 25 euros. Almost 3/4 evaluate it <=25 euros

People are likely to buy the product

Survey, Interviews

40% very likely

25% mod likely

Pos interviews

Other hypothesis tested

1. Heatability influences the purchase decision

2. Style influences the purchase decision

3. Multi-Plugability the purchase decision

ResultsWhich of the following features of this product makes you want to purchase it?

Last hypothesis we tested:

People on the go appreciate the ability to bring their own food

Survey

>60% agree BUT we expected too much to validate this assumption.

validated

Results:

60% students, 40% professionals answered the survey

Both when people are AT their work place, or On the go, ‘bringing food from home is the second most chosen answer.

Business Model Canvas 2.0

Main changes to the B.M. 2.0Price from 35€ to 29.99€Multi-plug ability not as important as heat ability and

design (Multiplug = Hetable)Differentiated product Have do add reliability and safety Easy to cleanChannels: Added eBayActivities: Added social media and blogRevenue streams:

+ Advertisement and intermediaries- Retail and distributors (for now)

To do next:

Develop more tests with the prototype Based on survey/interview results:- Reliability: Durability & safety - Warrantee

Testing our revenue hypothesis