Learning Launch

Challenge

I am a comercial coordinator of an outsourced company that provides  telecommunication services and sell mobile phones. Nowadays we have 15 stores  spread in the whole state of São Paulo – Brazil.

The challenge is to develop an own brand store using our know how in  telecommunication to increase the profit of the company and to decrease the risks of  the business not depending on another company (as a third-part company, we depend  on the decisions and rules of the main company).

Selection

After a lot of meetings and brainstormings we had decided that our own brand would  be in a mobile outlet store model. It means that we will sell mobile phones that are in  the end of the product cycle, so we can have better profits and also sell cheaper, once  the buying prices are really good.

Application

For our learning launch, we had decided to launch not a store, but a kiosk (mobile  stand), because the costs are lower (structure, rent, number of employees) and we  could improve/change the structure while we are still testing the customers behavior  and the product acceptance. Also the whole project is much faster to run.

(As we learn in the class, if you fail, it should be fast and cheap)

Insight and Approach

By applying the learning launch tool, we could identify that the idea was really good,  because the potential customer already existed, but they didn’t had options. The  whole Market was competing for the newest mobiles, and they forgot that a lot of  people just wanted a cheap choice eventhough it wasn’t the last release.

After the learning launch we concluded that the product had a good acceptance, but  only when the outlet product cost at least 30% less than the last release. Another thing  is  the people that prefered outlet options were from C/D/E class (familiy revenue  division)

With that conclusion we could define the range of the prices that our products would  cost and where to settle down our stores to reach the customers that would gave the  best acceptance of our products).

