Project Everest

[Proposed Experiment]: Fuel Fiji Jan 2019 - Distribution Channels: Retailers

Lean Phase: Channels and Key Activities

 

Assumption: Having retailers sell the Buka Stove is a viable distribution channel

  1. Retailers will allow us to sell our product in their store

  2. There is at least one of our customer segments that visit retailers

  3. There is at least one of our customer segments who will buy the Buka Stove from retailers

  4. Stove supply will be available for Feb

 

Time Box: Feb - end of July

 

Key Metrics:

  1. Number of stoves shelved by early Feb

  2. Number of stoves sold by end of July

  3. Number of retailers willing to work together with us to sell the stoves

 

Success Criteria

Green Light Point –

  • 50-100% stoves sold by end of July

  • 3 stoves contracted to be shelved for Feb through Shop 2 Save

  • Find 4 additional retailers willing to stock the Buka stove

Green Light Proceed:  

Solidify the distribution channel by setting up an autonomous ordering and delivery system.

 

Orange Light Point -

  • 25-49% stoves sold by end of July

  • 2 stoves shelved at Shop 2 Save

  • Find 1-3 additional retailers willing to stock the Buka stove

Orange Light optimise:  

Review and repeat experiment. Look at the results of first experiment for areas of improvement, redesign experiment implementation (e.g. more marketing, change marketing strategy, change price point, etc.). Look into the retailer as an area of improvement (Does enough of our customer segment go there? Do they mark up the price too much? ect?), compare retailers, look for other possibilities. Implement redesigned experiment, noting effects of changes, and possible changes for future. Review and repeat.

 

Red Light Point –

  • < 25% stoves sold by end of July

  • < 2 shelved at Shop 2 Save

  • 0 additional retailers willing to stock the Buka stove

 

Red Light Failure:

Remove the stoves from Red Light retailers and move on to repeating this test with other retailers. Review data gathered to improve retailer distribution channel. Review data to see if it can be used to improve other distribution channels

 

Method:

  1. Contact December PEV Fuel Distribution Team - Carissa Long for background information regarding progress

  2. Contact SoCon Team regarding optional microfinance loans for consumers in retail stores

  3. Contact existing December retailers to arrange meetings to discuss the number of Buka Stoves to be shelved and the terms of agreement - Homemaker, Bargain Box and Kasabias will be the first point of contact

  4. Meet with retailers and explain the MOU and the terms of the MOU

  • Demonstrate the functions and benefits of the Buka Stove

  1. Establish at least 3 new retailers

  • Find contact details or go into the retail store in Sigatoka if details cannot be found

  • Arrange first meeting to pitch the Buka Stove and explain EOI and MOU including terms of MOU - bring along with SoCon Team to discuss repayment/loan options to new retailers

  1. For February Fuel Team to complete: Advertising this distribution channel through pamphlets, posters and Facebook

  • Contact existing January retailers to confirm shelving of stoves when supply is available

  • Create a Facebook post to advertise the locations where the Buka Stoves will be sold

  • Contact Shop2Save and determine other retail stores who are willing to advertise the pamphlet and/or poster

  • Design a pamphlet template to be altered depending on the type of distribution - retailers in Sigatoka and bus drivers/ companies driving through Queenstown in Sigatoka to be more tailored

  • Monitor sales when supply is in throughout February

  • Handover to July Team to finalise experiment results

Fiona Aaron Jan 8, 2019

I think in assessing whether retailers are a viable method for stove distribution it's important to get an understanding of what our pricing model looks like so we know how low/high we can go in giving the retailers a cut. This is a crucial part of determining if its a good way to sell our product. If all the other assumptions are met but they want a crazy cut, surely it wouldn't make sense?
Also, how does being in retail stores affect manufacturing, warranties and distribution? Do we have any assumptions on how many stoves each retailer would want?

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