Hypothesis LEP session 7 TransMenu

Lean Entrepreneurship Project

FreshEntrepreneurs2014World Menu

Session 7

Pauline von Nostitz 152113321 Pedro Mariz 152113366

Maria Murasheva 159114599

26.09.14 2

Component: Customer Segment

Hypothesis Restaurants, hotels and cafés face the problem of language barrier with their customers.

Test Conduct 24 interviews with restaurants, which are located within touristic areas and offer medium to high priced food & beverage.

Validation If a minimum of 65% of participated restaurants confirm language barrier problems.

Result 75% (18/24) of participants confirmed they are experiencing language barrier problems and therefore the hypothesis can be considered as valid.

FreshEntrepreneurs2014

Hypothesis

Component: Value Proposition

Hypothesis The maintenance & updating of menus is a time-consuming, labour intensive task Restaurants, hotels and cafés would prefer to outsource.


Validation If a minimum of 65% of participated restaurants confirm language barrier problems.

Result 75% (18/24) of participants confirmed they are experiencing language barrier problems and therefore the hypothesis can be considered as valid.

26.09.14 3FreshEntrepreneurs2014

Hypothesis

Component: Channels

Hypothesis Service can be offered directly (no intermediaries) to clients through a website as nowadays people accept online services easily.

Test Creation of two different landing pages with a call for action (enter email address) and sending it to numerous restaurants / post it on blogs (scoop.it, Quora, Hacker News).

Validation Achieve a conversion rate of 10-20%.

Result A conversion rate of 12,3% was reached and therefore the hypothesis can be considered as valid.


Hypothesis

Landing Pages I

26.09.14 FreshEntrepreneurs2014 5

Landing Page II


Creating traffic - Scoop.ithttp://www.scoop.it/t/transmen


Creating traffic - Quora


Creating traffic - Hacker Newshttps://news.ycombinator.com/user?i

d=Transmenu


Channels – Rank & Select


Component: Channels

Hypothesis Direct E-Mail Marketing as the main channel.

Test Creating of Email introducing TransMenu including a link to one of the landing pages and sending it to 13 restaurants (most popular ones in Lisbon according to Trip Advisor).


Result A conversion rate of 23% (3/13) was reached and therefore the hypothesis can be considered as valid.


Hypothesis

Direct E-Mail Marketing


Component: Channels

Hypothesis Social Media as complementary marketing channel.

Test Post link to landing page onto Facebook pages of restaurants. Send private message to restaurants containing information about TransMenu.


Result A conversion rate of 12% (6/50) was reached and therefore the hypothesis can be considered as valid.


Hypothesis

Social Media I


Social Media II


Component: Customer Relationships

Hypothesis The best way World Menus can offer its service is through web based personal assistance (no establishments of physical offices).


Validation If survey results show at least 65% of restaurant owners would accept a web based service offering.

Result 91% (22/24) participants confirmed they would accept a web based offering of the service and therefore the hypothesis can be considered as valid .


Hypothesis

Component: Revenue Streams

Hypothesis Restaurants will be willing to pay a fixed “menu” price for each translation language.


Validation If survey results show at least 65% of restaurant owners would accept a fixed price per language.

Result 70% (17/24) of participants confirmed they would bewilling to pay fixed “menu” price for each translation language and therefore the hypothesis can be considered as valid.


Hypothesis


Hypothesis Restaurants will be willing to pay a monthly maintenance / change fee.


Validation If survey results show at least 65% of restaurant owners would accept a fixed monthly maintenancefee.

Result Only 42% (10/24) participants stated they would be willing to pay monthly maintenance / change fee and therefore the hypothesis can NOT be considered as valid.


Hypothesis


Hypothesis Restaurants will be willing to pay a quarterly maintenance / change fee.

Test Conduct 5 follow-up interviews with restaurants, which are located within touristic areas and offer medium to high priced food & beverage.

Validation If survey results show at least 65% of restaurant owners would accept a fixed monthly maintenancefee.

Result 80 % (4/5) participants stated they would be willing to pay quarterly maintenance / change fee and therefore the hypothesis can be considered as valid.


Hypothesis - Pivoted

Component: Key Partnerships

Hypothesis World Menu will enter long-term partnerships with translation agencies, which entail the intellectual property and resources to offer its service in a cost efficient way.

Test Schedule telephone interviews with three translation agencies gathering information about their offers and ask them about their willingness to work with TransMenu.

Validation If at least 2 agencies (66%) can be found which offer service at reasonable price and are willing to work with TransMenu.

Result Translation agencies charge on average 0.10-0.16 Cents per word. All three agencies would generally be willing to enter long-term partnership with TransMenuoffering service at slightly lower price due to quantity discounts.


Hypothesis

Translation agencies - Contacts

• http://www.alphatrad.pt/

• http://www.apportugal.com/

• http://www.multilingues.eu/


http://www.alphatrad.pt/

http://www.apportugal.com/

http://www.multilingues.eu/

Component: Key Partnerships

Hypothesis World Menu will enter long-term partnerships with printing agencies, which entail the required machinery and design knowledge to offer its service in a cost efficient way.

Test Schedule telephone interviews with three printingcompanies gathering information about their offers and ask them about their willingness to work with TransMenu.

Validation If at least 2 companies (66%) can be found which offer service at reasonable price and are willing to work with TransMenu.

Result Printing companies charge on average between 1-5 Euros per Menu depending on menu style & design. Two out of three companies would generally be willing to enter long-term partnership with TransMenuoffering service at slightly lower price due to quantity discounts.


Hypothesis

Printing agencies - Contacts

• http://www.lojadasementas.pt/

• http://acertodigital.com/menuementa.html

• http://milideiasdesign.wordpress.com/2014/02/03/ementas-de-cortica-para-restaurante/


http://www.lojadasementas.pt/

http://acertodigital.com/menuementa.html

http://milideiasdesign.wordpress.com/2014/02/03/ementas-de-cortica-para-restaurante/

Interviews – Findings

0 5 10 15 20 25

Yes

No

Serving foreign clients





0

5

10

15

20

25

Yes No





0

2

4

6

8

10

12

14

16

0 1-3 5-9 10-15 16 ormore

Weekly number of serving foreign clients

Weekly number of servingforeign clients



0

5

10

15

20

25

Yes No

Offering Physical Menus (Non-Portuguese)

Offering Physical Menus(Non-Portuguese)

Other languages offered: English,

Russian


0 2 4 6 8 10

Translation Agency

Internal Employee

Friend (no charge)

Friend (charge)

Internet

Translation SmartphoneApp

Current Translation Method (Non-Portuguese Menus)

Current TranslationMethod (Non-PortugueseMenus)




0

2

4

6

8

10

12

14

16

Yes No

Adjustment Physical Menu in case of seasonal / weekly menu changes (Non-Portuguese)

Adjustment PhysicalMenu in case of seasonal /weekly menu changes(Non-Portuguese)

Small changes are translated by employees directly, more significant changes are incorporated

into menu



• Advantages of current translation method:

– Internal Employee: Saves time, money, no dealing with third / external company, „high quality“ as work for boss

– Translation Agency: High quality, convenience of outsourcing

– Friends: Low to no charge, “high quality” as work for a friend

– Internet: Wide range of languages, speed, no costs

– App: Simple usage, wide range of apps



• Disadvantages of current translation method:

– Internal Employee: “Misuse” of employees, source of errors

– Translation Agency: High costs, inconvenience of outsourcing

– Friends: Source of errors, difficult to mix friends & business

– Internet: Source of errors, different translations offered

– App: Source of errors, some costly, enduring process typing in words / phrases



0

2

4

6

8

10

12

14

16

18

20

Yes No

Complains about Language Barriers (Employees / Customers)

Complains aboutLanguage Barriers(Employees / Customers)



0

2

4

6

8

10

12

14

16

18

20

Yes No

Serving foreign clients - time consuming task

Serving foreign clients -time consuming task



0 5 10 15 20 25

Unsatisfied Customers

Unmotivated Employees

Waste of time Translatingmenus

Waste of money Translatingmenus

Loss of potenatial businessdue to translation errors

Increased wages formultilingual employees

Language Barriers - Consequences

Language Barriers -Consequences


0

1

2

3

4

5

6

7

Best Solution to Language Problem

Best Solution to LanguageProblem



10

10.5

11

11.5

12

12.5

13

13.5

Yes No

Familarity QR-codes

Familarity QR-codes




0

2

4

6

8

10

12

14

16

Yes No

Willingness to use QR-codes in own restaurant

Willingness to use QR-codes in own restaurant

However, concerns were raised Next

slide!



0 5 10 15 20

Lack of personaltouch

Confusion ofcustomers

Confusion ofemployees

Usage of QR-Codes (Concerns)

Usage of QR-Codes (Concerns)



0

2

4

6

8

10

12

14

16

18

Yes No

Willigness pay fix price per language

Willigness pay fixprice per language



0 5 10 15

1-5 Euros

6-10 Euros

11-15 Euros

16 Euros or more

Willigness to pay - price range

Willigness to pay -price range



0

2

4

6

8

10

12

Yes No

Willigness to pay monthly Maintenance Fee

Willigness to paymonthlyMaintenance Fee



0 5 10 15 20

1-3 Euro

4-7 Euro

8-11 Euro

12 Euro or more

Amount monthly Maintenance Fee

Amount monthlyMaintenance Fee



0 5 10 15

Unsatisfied Customers

Unmotivated Employees

Waste of time translatingmenus

Waste of money translatingmenus

Loss of potential business dueto translation errors

Increased wages formultilingual employees

TransMenu - Main Problem Solution to

TransMenu - MainProblem Solutionto

Business

Hypothesis LEP session 7 TransMenu