OAP – Opportunity Analysis Project

Technology Entrepreneurship – Stanford University

Team Members

Award winning marke-ng professional with nearly 10  years of  experience on both  the crea-ve agency  side and  the product  side. Have worked with brands & products from Fortune 500 companies. 

20 y‐old, Engineer. I love startups! 

24 y‐old, SoJware Engineer. Passionate Entrepreneur. 

21 years old, fresh grad, want to make 

this world a beLer place. 

42 years old, Business and Marke-ng professional with managerial experience  in interna-onal companies. 

Startup engineer, experienced working for companies in Asia & USA. 

21‐years old, Computer Engineer doing PG in SoJware Systems from India! 

Social Commerce for Digital Art

Our Idea: An online marketplace for on-demand custom digital art.  The site connects talented artists around the world with consumers seeking to buy simple custom digital art via a website & mobile app.

Learning from Customer Feedback

Through interviews & surveys, we tested the viability of our product by:

1.  Identifying the key problems weʼre trying to solve with our product

2.  Identifying the target customer segment that has these key problems

3.  Presenting our product and tracking whether this solves their problems and who would be interested in buying our product

4.  Learning what features are most important to our customers

Customer Survey

We interviewed a total 170+ people in a span of 4 days. For each participant we recorded demographic data such as: age, gender, country, relationship status, etc.

This allowed us to later identify the customer segment that was the most interested in our product.

Customer Survey

Validating our Problems: 2 out of 3 of our hypothesized customer problems proved to be true for the majority of our participants.

  32% agreed- Buying someone a gift that you think theyʼll like is difficult

  42% agreed- They have a hard time finding art they like

  19% agreed- They have a hard time trying to find an interesting profile picture

Customer Survey

Validating Value proposition: Overall, a significant number of our participants were interested in our product.

  30% are interested in buying custom art for themselves

  39% are interested in buying custom art as a gift for someone

  25% entered their email to be notified when our product launches

Customer Survey

Discovering our Key Customer Segment: Large percentages of participants Aged 35+ expressed they had all three of our hypothesized problems

Ages 35+ expressed the most interest in buying product for themselves and/or someone else.

The majority of people that entered their email to be notified when our product launches was 35+.

Market Size Analysis We calculated our Market Size based on learning from our surveys that our target customer segment will be woman 35years old +

  Since our product is an Online Social Marketplace, our target users will need to be on a Social Network. We used demographic data from Facebook, the worlds largest social network, to size our total market size:

✓  Target customer segment from survey results (woman - 35years old +)

✓  Facebook Data - Age and gender Statistic

Results:

  Woman 35+  US = 42.4M Facebook users

  Woman 35+ Brazil =10.78M Facebook users

  Total Market Size: 53.18M users

  Source: http://www.quintly.com/facebook-country-statistics/brazil?period=3month

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Market Size Analysis

  Woman - 35years old + (Results from our Survey)

‐  Based on the survey, 67% of woman in this age more likely to be interested to order our product/service. 53M x 67% = 35M Facebook user (Women, 35+)

‐  30% interested to buy custom art for themselves = 35M x 30% = 10.5M

‐  70% interested to buy custom art for friends = 35M x 70% = 24.5M

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Market Size Analysis   Custom Art Market Size in dollar - online market

  Pricing: researching the market of digital photography such as: Shutterfly, Fiverr, etc... we built our price of custom art for digital purpose or for gifts:

‐  Digital Art $5 ‐  Gifts ($15-$100), average estimate $45 :

•  wall decor - $85 •  wall decals - $65 •  Ornaments - $15 •  Blankets $65 •  Mugs $15 •  Mobile Cover = $15 •  T-shirt = $35 •  Pillow $45

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Market Size Analysis

  Custom Art Market Size in dollar - online market

‐  30% interested in custom art for themselves (digital art) = 10.5M users x 5$ = $52.5M

‐  70% interested in custom art for friends (gift) = 24.5M users x $45 = $1.10B

  OUR TOTAL MARKET SIZE IN DOLLARS = 1.15B

  Our market share represents 1.3% of the currently global online art sales. Reference on next page.

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Global Online Art Sales   The market share of online art sales are estimated using the overall finding from IBIS

World ʻOnline Art Sales in the US: Market Research Reportʼ 2011, which estimated the market to be $287 million in 2011. If we combine this with the overall market size ($17.4 billion) of the US art market in 2011 according to the TEFAF report, then online art sales accounts for 1.6% of the overall US art market. Although there will be regional differences, to provide an estimate for the global online art sales online we have used the same percentage (1.6%), which gives us a global online sales estimate of $870 million (based on global art market size of $56 billion in 2012 according to the recently published TEFAF report).

  In terms of estimated annual growth rate of the online art market, we have used 19% to arrive at an estimated online art market sales figure for 2016. This is the same growth rate used in rapidly growing online luxury goods market, according to the last report by Mckinsey Altagama ʻDigital Luxury Experienceʼ 2012. They estimate the overall online luxury goods market to grow from $4.9 billion in 2010 to $15 billion in 2016, representing 5.3% of the overall luxury good market estimate of $287 billion.Sources: Size of the global art market TEFAF Report 2013, March 2013

  http://www.hiscox.com/~/media/Files/H/Hiscox/content-pdf/Online-Art-Trade-Report-UPDATED-FINAL.pdf   

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