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    WEEK3 6Bb - Product Viability and Profitability

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    chelsiedumali
    The document discusses factors to consider when analyzing the viability and profitability of a product idea. It recommends determining the minimum viable product (MVP) - the earliest version of a product that allows collecting validated learning from customers with minimal effort. A 6-step framework helps determine feasibility: defining customers, needs, value proposition, MVP features, building a prototype, and getting feedback. Key considerations for analysis include practicality, obstacles, support needs, shipping costs, product fragility, number of stock keeping units, product lifespan, seasonality, competition, and personal passion for the product.

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    WEEK3 6Bb - Product Viability and Profitability

    Uploaded by

    chelsiedumali
    7 views20 pages
    The document discusses factors to consider when analyzing the viability and profitability of a product idea. It recommends determining the minimum viable product (MVP) - the earliest version of a product that allows collecting validated learning from customers with minimal effort. A 6-step framework helps determine feasibility: defining customers, needs, value proposition, MVP features, building a prototype, and getting feedback. Key considerations for analysis include practicality, obstacles, support needs, shipping costs, product fragility, number of stock keeping units, product lifespan, seasonality, competition, and personal passion for the product.

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    WEEK3-6Bb_Product-Viability-and-Profitability

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    The document discusses factors to consider when analyzing the viability and profitability of a product idea. It recommends determining the minimum viable product (MVP) - the earliest version of a product that allows collecting validated learning from customers with minimal effort. A 6-step framework helps determine feasibility: defining customers, needs, value proposition, MVP features, building a prototype, and getting feedback. Key considerations for analysis include practicality, obstacles, support needs, shipping costs, product fragility, number of stock keeping units, product lifespan, seasonality, competition, and personal passion for the product.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    7 views20 pages

    WEEK3 6Bb - Product Viability and Profitability

    Uploaded by

    chelsiedumali
    The document discusses factors to consider when analyzing the viability and profitability of a product idea. It recommends determining the minimum viable product (MVP) - the earliest version of a product that allows collecting validated learning from customers with minimal effort. A 6-step framework helps determine feasibility: defining customers, needs, value proposition, MVP features, building a prototype, and getting feedback. Key considerations for analysis include practicality, obstacles, support needs, shipping costs, product fragility, number of stock keeping units, product lifespan, seasonality, competition, and personal passion for the product.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 20

    PRODUCT VIABILITY AND

    PROFITABILITY
    LEAN STARTUP METHODOLOGY, FASTSPRING.COM AND
    BIGCOMMERCE
    WHAT IS MINIMUM VIABLE PRODUCT (MVP)

    “THE VERSION OF A NEW PRODUCT WHICH


    ALLOWS TO COLLECT THE MAXIMUM AMOUNT
    OF VALIDATED LEARNING ABOUT CUSTOMERS
    WITH THE LEAST EFFORT”.
    • BY EXPOSING THE EARLIEST FORM OF A
    PRODUCT IDEA TO CONSUMERS YOU CAN
    MAXIMIZE YOUR LEARNINGS OF THE
    PRODUCT AND ITS POTENTIAL WITHOUT
    INVESTING YOUR MAXIMUM TIME AND
    EFFORT. AS A RESULT, MINIMUM VIABLE
    PRODUCTS ARE CONSIDERED A RISK
    REDUCTION TOOL.
    • WHILE A MINIMUM VIABLE PRODUCT IS DESIGNED
    TO TAKE LITTLE TIME AND EFFORT TO CREATE IT,
    ULTIMATELY ITS FEATURES SHOULD REFLECT THE
    DEMANDS OF THE PRODUCT AND MARKET.
    6 STEP FRAMEWORK WILL HELP YOU DETERMINE THE FEASIBILITY
    OF YOUR IDEA.

    • STEP #1: DETERMINE YOUR TARGET CUSTOMER


    • STEP #2: UNDERSTANDING THE NEEDS OF YOUR CUSTOMERS
    • STEP #3: DEFINE YOUR VALUE PROPOSITION
    • STEP #4: OFFER UP A CORE SET OF FEATURES FOR YOUR
    MINIMUM VIABLE PRODUCT (MVP)
    • STEP #5: BUILD THE MVP PROTOTYPE
    • STEP #6: GET YOUR MVP IN FRONT OF CUSTOMERS
    THINGS TO CONSIDER DURING A PRODUCT
    VIABILITY ANALYSIS

    • IS THE IDEA PRACTICAL?


    • WHAT OBSTACLES LIE AHEAD?
    • WILL IT NEED SUPPORT SERVICES OF SOME KIND TO
    ENSURE CUSTOMER SATISFACTION?
    1. PRODUCT SIZE AND WEIGHT.

    • THE SIZE AND WEIGHT OF YOUR PRODUCT


    WILL HAVE AN IMPACT ON HOW MUCH YOU
    SELL.
    THINK YOU CAN PASS THE COST OF SHIPPING ON TO YOUR
    CUSTOMERS?

    • SHIPPING COST IS A TOP REASON FOR


    CART ABANDONMENT.
    • ONLINE RETAILERS THAT OFFER FREE
    SHIPPING HAVE INCREASED CONVERSION, AND
    FREE SHIPPING IS NOW EVEN CONSIDERED THE
    NORM BY MANY IN THE INDUSTRY
    2. PRODUCT FRAGILITY.

    • FRAGILE PRODUCTS NEED EXTRA ATTENTION WHEN


    SHIPPING TO ENSURE THEY ARRIVE IN PERFECT
    CONDITION.
    • TYPICALLY, DURABLE PRODUCTS COST LESS TO SHIP AND
    LIGHTEN YOUR CUSTOMER SERVICE .
    • THEY ALSO USUALLY COST LESS TO STORE.
    THE DRYER TEST

    I always tell first time entrepreneurs to test


    out their shipping by putting their most
    fragile product in a box and packaging it
    correctly. Mindy Regnell, Product Marketing
    Specialist, BigCommerce.
    3.
    STOCK KEEPING UNIT

    • A SKU, STOCK KEEPING UNIT, TYPICALLY


    REFERS TO COLOR, SIZE AND OTHER
    VARIATIONS OF A SINGLE PRODUCT.
    • IN GENERAL, THE MORE SKUS YOU HAVE, THE
    MORE ATTENTION, TIME AND MONEY YOU
    WILL NEED TO SPEND .
    • DON’T LET SKUS
    DISCOURAGE YOU, BUT
    DO BE AWARE OF THE
    ADDITIONAL COSTS AND
    REPARATIONS FOR
    PRODUCT MIX UPS
    DURING FULFILLMENT.
    • ALSO BE AWARE THAT
    THERE ARE PLENTY OF
    TOOLS AND RESOURCES
    TO HELP YOU WITH
    INVENTORY MANAGEME
    NT
    TO STREAMLINE THIS
    4. LIFESPAN.
    • HAVING A CONSUMABLE OR DISPOSABLE
    PRODUCT IS GREAT FROM A BUSINESS
    PERSPECTIVE, BECAUSE IT PROVIDES YOU A
    BETTER OPPORTUNITY TO EARN CONSUMER
    TRUST AND BUILD YOUR BUSINESS OFF OF REPEAT
    SALES.
    IS THERE A DOWNSIDE OF PURSUING
    PERISHABLE PRODUCTS?
    • THERE ARE MANY
    SUCCESSFUL BUSINESSES
    OUT THERE THAT SELL
    PERISHABLE PRODUCT.
    5. CONSIDER SEASONALITY.
    SEASONALITY MEANS
    THERE ARE DIFFERENT LEVELS OF DEMAND
    FOR A PRODUCT THROUGHOUT THE YEAR.
    • HOW ABOUT HOLIDAY DECORATIONS IN THE
    SUMMER?
    6. CONSIDER COMPETITION.
    • IF YOUR ITEMS ARE SOLD LOCALLY AND READILY
    AVAILABLE IN MAJOR RETAIL STORES LIKE , SM
    SUPERMARKET OR OTHER ONLINE OUTLETS,
    YOUR E COMMERCE JOURNEY JUST BECAME AN
    UP HILL.
    7. CONSIDER YOURSELF.
    • ON TOP OF CHOOSING A PRODUCT THAT’S VIABLE
    IN THE MARKET, YOU SHOULD SELECT ONE THAT
    YOU ACTUALLY ENJOY YOURSELF.
    BE PASSIONATE, FIND YOURSELF A NICHE AND START
    SELLING TO OTHER PASSIONATE PEOPLE JUST LIKE YOU.
    ANSWER THE FOLLOWING :

    • 1.M
    • 2. V
    • 3. P
    • 4- 10. 7 THINGS TO CONSIDER IN PRODUCT VIABILITY ANALYSIS
    • 11 - 16 6 WAYS ON HOW TO DO MARKET ANALYSIS

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