1. Stanford University / Venture Lab / Technology
Entrepreneurship / Class of 2012Opportunity Analysis Project
InnoShop Optimisation of shopping activities
2. Concept Prevalent shopping trolleys and shopping tills are
inconvenient for customers. Supermarkets do not utilise potential
capabilities of currently available innovative products whose
synergy would bring benefits to sellers and buyers alike. Our team
is analysing reasons for this problem and constructing a system
which supermarkets would be willing to use. We offer shopping
optimisation system, currently consisting of innovative shopping
trolleys with integrated bar code scanners, and additional services
enabling stores to employ those trolleys optimally. Trolleys and
supplemental articles can be sold and rented.
3. Understanding German market size Distribution of the number
of stores is seen in the below pie chart A total of 23369 stores
REWE group has the were most potential to be found which were
either exploited super/hypermarkets for our business
4. German market Estimated Store current market (in USD) EDEKA
12300000 LIDL 9900000 PLUS GROUP 8520000 REWE GROUP 26817000 ALDI
12570000~70M$ is the currentmarket for the shopping TOTAL
70107000carts in Germany
5. Understanding the German Cart Market The base for the
calculation in the previous slides is as follows: The cost of each
shopping cart is averaged to be 50 USD based on www.alibaba.com The
average number of carts in stores is taken around 60 according to
our observation in Hamburg, Berlin and Frankfurt The overall
estimate of the Market that our Idea can potentially
6. Survey with managers What differentiates your brand from the
rest? 1 manager: Supply chain management 1 manager: Staff
management 1 manager: Store organisation 2 managers: leadership in
discount products We as a brand strive to be market leaders in
supply chain and currently have one of the best supply chain
management models across the industry. Brand Manager in Frankfurt
area, 2012
7. Survey with managers Are you currently interested in finding
new ways to distinguish your brand? 4 Managers: yes 1 Manager :
Currently no Results of the last financial year are not so
encouraging for us to invest in this technology right now Marketing
In-charge in Hamburg area, 2012
8. Survey with managers Would you be interested in implementing
pilot project with us? a. 3 managers: yes b. 2 managers: no, our
current system is satisfactory We focus mainly on attracting
selective target customers and have various schemes to achieve it,
hence I would tell you that we value innovation, especially in
technology that would help us in brand building and thereby act as
key market differentiator Marketing In-charge in Berlin area,
2012
9. Survey with 20 end users in Germany
10. I do not like standing in long queues. They are especially
time-wasting during peak time after I finish work, and need to
goshopping. Therefore I am going to use any checkout system if it
willsave time for me.Male student in Berlin area, 2012If I need to
buy only 1 or 2 things fast, and see a lot of peoplequeuing, then I
sometimes put things back and go out.Female pensioner in Hamburg
area, 2012I shop at department store one time in a week, so I buy a
lot ofstuff at once. I could put small and fragile items safely
andconveniently into different compartments of the cart, if only
suchthing existed.Female student in Berlin area, 2012
11. Open questions for end users (20 participants): What is one
most annoying thing about shopping in this department store? 15
participants: Long queues / long waiting time to be served 3
participants: Obstructions to free moving (other carts on the way,
too narrow crossings at certain areas) 2 participants: No opinion /
no annoyance What do you think about the trolley you are currently
using? 11 participants stated moderate dissatisfaction 4
participants: high dissatisfaction 2 participants could not tell
whether they like current trolley or not 3 participants liked the
cart I dont like shopping at all. I mostly hate to stand waiting
for a long time in a queue. Shopping trolleys look like they are
designed only to be conveniently separated from each other, but not
used for convenient shopping. Employed male in Hamburg area,
2012
12. Open questions for end users (20 participants): What main
changes would be most preferred by you in the store or the cart
(one participant can give more than one suggestion)? 13
participants: Reduce waiting time / reduce queues / install more
service points 7 participants: Improve manoeuvrability of the
trolley (by reducing width / length of the cart, improving wheels)
7 participants: Lighter weight of the shopping cart 5 participants:
Improve wheels for better manoeuvrability 5 participants: Have a
shopping list fixing system (use a clip (similar to laundry clip) /
use a mini post board and pin attached) 4 participants: Have a
mobile phone fixing system on the shopping cart I dont like
shopping at all. I mostly hate to stand waiting for a long time in
a queue. Shopping trolleys look like they are designed only to be
conveniently separated from each other, but not used for convenient
shopping. Employed male in Hamburg area, 2012
13. Customer survey link The customers surveyed could opt any
number of changes. 20 customers participated in the survey and this
gave us some outlook on how customers could influence the stores to
think on improving the existing system of the cart based on
customer demandIf this technology would have impact on less waiting
timeproblem of customer certainly there would be a hugeopportunity
and with estimated market of our product wecould built a high
demand solution to the problem.
14. Pitching the cost of our product Well this needs some
caution as the existing system of carts costs 50$, we would need to
have a price near to it for conventional competitive strategy or
follow blue ocean strategy through innovation. The market space is
uncontested as we would be the first to implement an integration of
such a concept. In this scenario the competition becomes quite
irrelevant and only market differentiator product which is low cost
as well. This innovative shopping solution would give the first
company that adopts it a brand image and huge leverage that the
later entrants would not be as benefitted. This is well supported
by the survey results though sample was small, we believe that
thats the normal tendency of a consumer. This would create and
capture new demand in the market.