Project Everest

Experiment Results

[Feb 19] Sales Agent System Experiment Results - Fuel Fiji

 

Experiment Design Post:

Sales Agent Experiment Design

Lean Phase:

Channels and Revenue Streams

Assumption:

Sales agents can order, purchase, and collect the Buka Dragon as a part of our autonomous business model.

Results:

Red Light

No sales agent MOUs were signed over the month of February. Although many locals showed interest in signing to be a sales agent it was difficult to finalise transactions between both parties due to time constraints and limited supply from manufacturers. Too much time was spent on establishing ways to meet potential sales agents and gather EOIs.

Validated Learning:

Although the metrics for this experiment were not met, it is important to note that sales agents are still a viable distribution stream as the experiment was conducted under unrealistic time restrictions. No sales agents were signed to sell the Buka Dragon or the Buka 4.0 and useful results were not obtained. Despite this outcome, many EOIs were collected during our market stall in Sigatoka and via emailing local tour companies.

A total of eight potential sales agents were obtained that the team were in contact with during the last week of project. Of these eight leads, four are still interested in a business relationship with Project Everest. Due to time constraints, it was difficult to arrange meeting times and have contracts signed as many of the interested parties were still contemplating business with PEV.

The assumption that sales agents can order, purchase, and collect the Buka Dragon autonomously still stands but a different approach to gaining these sales agents must take place. Our success metric was set too high for a two week period considering new relationships with stakeholders were still being solidified.

Next Move:  

Experiments conducted this month should be continued over July and Summer 2019/2020 as following.

It is suggested to continue working towards sales agents as a distribution channel as they are not only able to reach the target customer but also distribute the stoves while PEV are not in country. The stoves that are currently in stock should be pushed to be sold by sales agents as they can be distributed and begin to validate the autonomous system. Trying to sell the Buka Dragon should not be a priority, unless it is being supplied by a signed manufacturer (thereby being a first step into autonomous operation).

Running a market stall in the early stages of project (week 1) is highly recommend. The Sigatoka Market is busiest Fridays and Saturdays when people come from out of town and would be optimal to find new sales agents. No stoves should be sold at the market stall as it would invalidate the autonomous business model.

In addition, effort should be put into establishing new retailers to stock the stoves both in Sigatoka and Nadi to scale the product.

The February 2019 Fuel team identified a number of barriers preventing us from establishing effective distributors of the stove. This was found via empathising with potential distributors.

  • The retail price of the stove is set too high, thereby causing a cost barrier to low-income distributors
  • The ability to store stoves is another barrier as it is a cost to individuals
  • The effort involved in distributors clearing stock would discourage them from committing to making stove deposits.

In order to circumvent these barriers, July Fuel teams may find it interesting to investigate the viability of advertisement agents as opposed to sales agents. To differentiate from sales agents, their roles may look like the following:

  • Informing and promoting the stoves to new potential customers
  • Collecting customer contact details and informing PEV directly
  • Receiving a discount/commission every time the advertisement agent indirectly sells a stove
edited on 25th February 2019, 04:02 by Eliza Karlson

Haziq Ahmed 4 months ago

Status label added: Experiment Results

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