Project Everest

Experiment Results

[Experiment Results]: Channels - Sales Agents (Promotion) - Fuel Timor Leste December 2019

Reference to Experiment Post: [Proposed Experiment]: Channels - Sales Agents (Promotion) - Fuel Timor Leste December 2019

This experiment focused on validating:

Experiment post: https://projecteverest.crowdicity.com/post/2113170

Lean Phase: Channels

Testing multiple potential distribution channels:

  1. Restaurants [Complete]

  2. Kiosks

  3. Hardware Stores [Complete]

  4. Supermarkets [Partially Complete]

  5. Misc. Goods

  6. Markets

  7. Face-to-face

Assumption:

Hardware stores, supermarkets and kiosks are a viable distribution channel for the Seguru Stove.

Results

Channel 1: HARDWARE STORES

Vinod Patel

  • 0 Stoves were sold.
  • Interest: On average there were 3 people interested in the stove per month.
  • The biggest barrier was the high price point.
  • A red light has been met with 0 stoves sold and 0 stoves ordered, with insufficient EOI’s gained from customers.

Mira-Mar

  • 0 stoves were sold.
  • Unable to identify the volume of interest generated due to language barrier.
  • Of those that did show interest, the biggest barrier to purchasing was the high price and one customer mentioned that they could make the stove themselves. 
  • A red light has been met with 0 stoves being sold, 0 more were ordered and insufficient EOI’s gained from customers. 

 Validated Learning:

The results disproved the assumption that hardware stores are viable distribution channels for the Seguru stove. 

After revisiting the stores that were stocking our stove from July 2019, Vinod Patel and Mira-Mar, 0 customers purchased the stoves. Reasons for lack of sales included the price and the customers not seeing the worth in the stove. After revisiting the stores, it seemed like they were not appropriate stores to sell through as the stove seemed out of place amongst the other products such as high-tech gas and electric cook tops. Based on the decision that these stores are not viable channels, PEV have removed the stoves from these stores. Further, we could not locate Sorti-Foun store (based on the address provided: the store appears to be closed down. Sorti-Foun is currently stocking one stove and their number appears to have been disconnected when PEV attempted multiple times to contact them.

 

Quantitatively: From the 3 hardware stores that we visited stocking a total of 6 stoves, we sold 0 stoves since July, and could not find 1 store. 

Qualitatively: The workers of the hardware stores had sufficient knowledge of the stove, Mira-Mar’s stove also included a brochure and other information about the stove in Tetun and the stove was placed in a good location in both Vinod Patel and Mira-Mar stores. The primary obstacles to selling the stove included the foot traffic not being high, the population of customers were not our target market as Vinod Patel customers were primarily middle to upper class people who were looking for gas or electric stoves and the Mira-Mar customers were not looking for stoves as the store did not stock them. Of the customers who did show interest since July, the primary objection to purchasing the stove was the price tag as people did not see the stove as being worth the price. Based on the poor viability of the hardware stores being a channel we took away the stoves. The results from Sorti Foun hardware stove are still unknown.

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Channel 2: SUPERMARKETS

Mimi Store 

  • 0 Stoves were sold
  • Unable to identify interest gained due to language barrier
  • Of those that did show interest, the biggest barrier to purchasing was the price.
  • A red light has been met with 0 stoves being sold, 0 more were ordered and insufficient EOI’s gained from customers. 

Validated Learning:

The results disproved the assumption that a supermarket is a viable distribution channel for the Seguru Stove.

There was only 1 supermarket that was stocking the stove under the promotional model. This stove had a brochure attached to it that was in Tetun. Despite this the stove was not sold and little interest was received for the stove. 

Quantitatively: Of the 1 stove stocked at supermarket 0 stoves were sold

Qualitatively: The owners of the supermarket understood the benefits of the stove and were willing to help. Despite this the stove gathered little interest. The primary objection and barrier to purchase being the high price point. There were many, better alternatives being sold for less for example gas stoves for being sold for less than the $75 price point of our stove.

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Channel 3: KIOSKS

Unable to verify channel and get results as primary contact is out of Dili. Will update in future when contact is made.

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Sales Agents Validated Learning

These channels are currently at a red light for distribution of the stove, however future development of channels and other stores can be optimised. As other channels such as separate EOI and marketing channels are developed and explored it would be a good idea to revisit stores as a channel. The use of brochures and posters in stores as channels could also optimise their ability to generate sales, particularly if the brochures outlined success stories of the stove and reviews from EOI’s. Certain channels, such as individual sales agents, can be optimised in their ability to generate sales through the use of mobile videos of the stove in use. This proved to be a useful tool when trekkers approached EOI’s in December, enabling the customer to physically see how the stove works and create more trust in the product.

 

Next Move:

The next experiment to be conducted will focus on identifying new, unexplored channels and validating their viability to distribute the stove.

 

edited on 12th December 2019, 05:12 by DYLAN KAPADIA

Lily Partridge 1 month ago

Status label added: Experiment Results

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Lily Partridge 1 month ago

This validated learning is really clear and makes a lot of sense. Would love to see how these channels can be optimised to better suit other stages of the supply chain/ sales pipeline. For example, we have barely explored separate EOI and marketing channels and I think that this could be revisited as we build and and validate other sections of the pipeline.

I imagine that this could be done in a quite lean way, including just the use of brochures/posters, but this should also be validated at a range of other outlets and tracked throughout, as well as compared to F2F sales agents.

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DYLAN KAPADIA 1 month ago

Post has been Updated with a "Sales Agents Validated Learning" section at the end containing the mentioned points

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Cris Birzer 1 month ago

I'm coming into this a little bit late, but has anyone considered just setting up a bunch of stoves on the side of the road and making (for example) pancakes which you then give away? People come for the free pancakes, but then will see the stoves work, see the (hopefully) lack of smoke, and therefore see the benefit in the stove. Pancakes are cheap and easy, but not necessarily boring.

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