How to validate your product idea, creating value for customers
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The document outlines a workshop for women entrepreneurs focused on validating product ideas and creating strong value propositions. It emphasizes the importance of understanding core competencies, market trends, and customer needs while analyzing competitors to articulate a distinct value proposition. Examples of successful implementations, such as Nike+ and the Soul Santhe flea market, illustrate how effective value propositions can enhance customer engagement and business success.
How to validate your product idea, creating value for customers
- 1. HOW TO VALIDATE YOUR PRODUCT IDEA, CREATING VALUE FOR YOUR CUSTOMERS Smitha Hemmigae (smitha.hemmigae@gmail.com) Building a Better Market and Managing Finance A One Day Workshop For Women Entrepreneurs Mount Carmel College, Bangalore
- 2. Agenda Nine basic building blocks Product development stack Value proposition Key elements to create a strong value proposition Apply in real life scenarios Nike+ Soul Santhe Sparsha Technologies
- 3. Nine basic building blocks
- 5. Value proposition The best entrepreneurs don’t care about “ideas. And neither do their customers” They only care about Value A value proposition is generally a clear and succinct statement (e.g., 2-4 sentences) that outlines to potential clients and stakeholders a company's (or individual's or group's) unique value-creating features A value proposition is a clear statement of the tangible results a customer gets from using your products or services A value proposition is an offer to some entity or target in which they (the possessor) get more than they give up (merit or utility), as perceived by them A value proposition is the basic reasoning for why people should consider your product or service Describes what you do in terms of tangible business results. It draws interest and shares a success story within a few words
- 6. A Value Prop statement must contain Describe "What" we provide Answer "So what?" Quantify "How much" Provide Proof
- 7. Key elements to create a strong value proposition (1/1) Start with core competencies: what are you really good at? Look at trends in the industry Are things changing? Can you take advantage of a trend and grab an exciting position in the market? Study your customers Who are your top customers? What problems do you solve for them? What problems do they want solved? Is there a new trend in any of your key customer segments? Turn core competencies into values Ask yourself why someone should buy from you instead of a competitor. Using the language of your customers, refine your core competencies as values. If your answer is “best selection”, “best customer service” or “fast shipping” your potential success may be limited. These qualities do not make a business unique
- 8. Key elements to create a strong value proposition (2/2) Study the competition Choose 3 or 4 competitors and study how they market their company and products What is their value proposition? Can they defend it? Map their core competencies versus yours Build a value chain Articulate the value proposition (in one sentence) Test the final value proposition with customers to see whether it resonates
- 9. Nike+ All humans competitive in nature; Need to be fit Nike understands their target audience is always changing and evolving due to constant market changes, driven primarily by technology and the Internet In response to their changing environment, Nike created a special group dedicated to designing technology products The group’s mission was to find ways to connect and engage with consumers Nike+ Co-creates a community of runners Introduced a sensor in the shoe which record the distance a person has run Cashed in on the iPod and smartphone wave and connection between music and running - as a smart shoe, they realized, wasn't enough—you needed a device to save the data Both companies saw profit potential if they could develop the system together, so the Nike and Apple teams each took on different parts of the project. Apple refined the sensor that Nike had prototyped, making it smaller and more durable. Nike focused on the shoes and the interface for the Web and the iPod. It created a simple system based around the idea of setting goals After each run, one can sync their iPod to the Nike+ Web site and get a visual representation of the workout—a single green line Also expanded it other devices like Nike+ stopwatch GPS, Fuelband, Kinect training, etc Nike has enhanced and expanded their brand using Nike Plus to provide a platform to engage consumers in a manner that is relevant, but still reinforces the core identity of Nike products Also has a social media platform created to unite the runner community and also has provisions for sharing results and challenging runners to beat their best times
- 10. Nike+
- 11. Nike’s results
- 12. Soul Santhe Asha Rao, 58, may have witnessed a few defeats, but her passion for fabric and arts ensured that she constantly strived to regenerate her idea She wanted to showcase upcoming artists and designers; The idea of organising a flea market came up Initial success when started in 1997; but had to shut the venture in 1999 Started 2 fashion studios in Bangalore - Studio Kahawa and Studio Sattva Though she wanted to expand the studios' space, high rentals deterred her, as returns were not proportional to the amount of work Her reward: the success of her venture Soul Sante, a flea market that is held in Bangalore five times a year started in 2010, after shutting both the fashion studios Designers can hire stalls for Rs 5,000 a day and were provided basic infrastructure like tables and electricity The entry ticket for visitors is fixed at Rs 49, and this includes access to food courts as well as live music More than 17,000 people turn up for soul santhe
- 13. Sparsha Technologies VIRTUAL ELECTRONICS WORKBENCH ON CLOUD COLLEGE LICENSE MODEL SINGLE LICENSE MODEL
- 14. This means… A STUDENT CAN SAVE THEIR CIRCUITS ON THE CLOUD FROM DAY 1 AND RETRIEVE AND REFER TO THE CIRCUITS WHENEVER THEY WANT. THEY CREATE A DIGITAL PORTFOLIO. CAN ACCESS FROM HOME, DORM, LIBRARY,
- 15. Benefits Student • Get familiar with industry simulations to acquire real skills • Maintain digital portfolio of circuits on the cloud • Get confident on industry Test and measurement devices • More employable Teacher • Use for assignments and reduce time spent on logistics • User searchable circuit repository to show live circuits working in classroom • Increase retention and learning in class by 40% College • Provide simulation access to each and every student at a cost lower than few licenses of traditional simulation tool • Increase Audit points for Accreditation • Increase employability
Editor's Notes
- #10: http://www.slideshare.net/EnterpriseCoCreation/nike-8829199