The challenge at hand
As consumers are becoming more conscious when it comes down to sustainability, Philips wants to build a new sustainable business model. In order to make a data-driven decision on which business model is worthwhile launching, our challenge is to discover and validate the needs and desires of the customers and tailor the new business model perfectly to this.
Starting off with a qualitative research with the target audience in different countries, we identified the problems, needs and desires around products and sustainability in general. This helped us to define several value propositions related to sustainability. With online quantitative experiments we tested the value propositions on a larger scale with the target audience in different countries and prioritized them accordingly.
Based on the prioritization, we concluded to continue with one value proposition. The riskiest assumptions for this value proposition that needed to be tested were determined. For the following weeks, we continuously iterated and refined the value proposition and validated the riskiest assumptions with several rounds of qualitative and quantitative online experiments. A low fidelity prototype was created and tested with potential customers to define the appeal to solution and willingness to participate or pay. Parallel to these activities, the size of business and potential revenue were calculated and the Business Model Canvas was continuously updated.
To prove that the customers are actually willing to participate or pay in this new business model, a research proposal and set-up for an in-market pilot are defined. For this, a landing page is created and all back-end logistics are set up. When proven to be successful, it is possible to scale this business model to other product categories or countries.
Validated consumer problems, needs and desires through quantitative and qualitative research (in three different countries)
Validated value proposition via several online experiments (in three different countries)
Updated Business Model Canvas
Calculated size of business and potential revenue
Low fidelity prototype tested and validated with potential customers
Research proposal and set-up for an in-market pilot (including landing page and back-end logistics)