Product designing can be divided into three crucial parts that include what, why, and how. Firstly, you need to understand what product designing means and how it can help you create a successful business. Secondly, it is essential to comprehend the significance of product designing and why it should be your top priority. Lastly, you need to know how to design your product effectively and efficiently. Before embarking on the journey of starting your own business, it is imperative to take some time out and focus on designing your product to ensure its success in the market.
What secrets does the market whisper?
When it comes to starting a new business, one of the most important steps to take is conducting thorough market research. This entails gaining a deep understanding of the ecosystem and identifying the primary stakeholders involved in your business venture. For instance, if you're planning to open a grocery store, your primary stakeholders would include the distributors who supply you with goods, the landlord from whom you lease the store, and the customers in the surrounding area. On the other hand, if you're looking to start a restaurant, your stakeholders would primarily comprise the chefs, other restaurateurs, and the consumers of your food.
Before initiating your business, it's essential to identify all the stakeholders involved and establish communication with them to learn from their experiences. This will allow you to gain insights into the market, identify potential challenges and opportunities, and develop a business strategy that caters to the needs of your target audience. For instance, a hotel owner who had just started his business identified his stakeholders to be the hotel owners, his team, and the customers in the surrounding area. He made it a point to interact and ask questions to all the members of the hotel staff, regardless of their department, to gain a better understanding of the market.
To gain insights from the receptionist, the entrepreneur asked her about the type of customers that frequented the area. Her response revealed that ten types of corporate customers and three types of retail customers were the usual patrons. Additionally, he consulted with the hotel owners to learn about their challenges and received feedback that they struggled to find work, lacked clarity in their business, and had difficulty monitoring their revenue.
Further, the entrepreneur also talked to the customers to gain insights into their experience and identified some common problems, such as high prices, uncleanliness, and unavailability of staff to resolve issues in the rooms. After analyzing the feedback received from his stakeholders, the owner came up with a proposition that included various aspects, such as clean rooms, affordable prices, and dynamic pricing. He decided to start the room rates at $99, which was inspired by a successful pricing plan used by Telstra.
To provide affordable and clean rooms, the owner used dynamic pricing, where the first room was sold for $99, and the subsequent rooms were sold for $50 to $100 more, depending on the demand. The last room was priced at $1500 to $1600, which allowed customers to have a safe and affordable price point. By leveraging insights from his stakeholders, the owner was able to identify various challenges and develop a successful business strategy that met customer needs while also generating revenue. In conclusion, conducting thorough market research and engaging with stakeholders is crucial for the success of any business venture.
Product design make our world a better place
When starting a business, it is essential to conduct thorough research to understand the needs and expectations of your target audience. For instance, if you plan to open a grocery store, it is essential to meet with the distributor, staff in nearby stores, and customers who purchase groceries regularly.
By meeting with customers, you can gain insight into their preferences and expectations. For example, a customer may express a preference for a grocery store that offers a wide variety of options and provides a choice of five or six different types of products.
In addition to understanding customer needs, it is crucial to consider the requirements of other stakeholders in your business. Distributors, for instance, require timely payment and support in selling products that do not sell as well. They also want to work with businesses that can help them grow their business.
By taking into account the needs of customers and distributors, you can design a product that meets their demands while also creating a commercially profitable business. For example, you can focus on delivering high-quality products and providing a wide range of options to customers. This way, you can become the number one grocery store in your area for delivery and choice while ensuring timely payment for distributors.
It is crucial to conduct thorough research and understand the needs of stakeholders when launching a new product. For example, the founder of Urban Company initially started a company, Cinema Box, without conducting adequate research. As a result, the company was unsuccessful and shut down. However, after learning from this experience, the founder launched Urban Clap, which became a super successful company.
Common platform unite stakeholders and empower them to solve problems together
It is important to learn from past mistakes in order to avoid repeating them. To effectively do this, it is crucial to identify the stakeholders involved in your business. For instance, hotel owners and customers are stakeholders for a business in the hospitality industry. By gaining an in-depth understanding of these stakeholders, through working as a receptionist and in the back of the house area, one business owner was able to address the problems and needs of all stakeholders through a common platform.
As a result of this approach, the business achieved a net worth of more than 10 billion dollars. Therefore, it is important to identify the stakeholders of your business and work towards creating a common platform to address their needs. This will not only lead to a J-curve and profitability, but also good valuation and investors. By doing so, you can ensure the success of your business while also maintaining a fair and helpful approach towards all stakeholders involved.