Dec 02 2010

‘Relationship Modelling’ - Worksheet 03c

Every business needs a set of relationships to make all of the steps from Blueprint Modelling happen. We can break down these relationships by defining their characteristics.

The Generator
Key activities are originating and forming. This role describes the process of forming and synthesising ideas. It’s important in creativity and concept development. It’s probably where most of the strengths lie. The Generator for the YumTum App is Design. Design is my strength, and what will drive the rest of the project. Design is the starting point. 

The Realiser
Key activities include transforming ideas into finished products. This role describes the process of going from A to B, transforming raw materials or ideas into the final outcome. YumTum’s realiser involves developing, testing and making the App work.

The Distributor
This encompasses distributing finished products. This role describes the purchase of finished products or services for resale, or the co-ordination and distribution of finished products. For YumTum, this will involve promotion, marketing and launching the App on the App Store.

The Customer
Buying, consuming, utilising or experiencing the product or service. The customer will be buying YumTum via the App Store.

By looking at the above relationships, I believe that the business has weaknesses in the Realiser. I have the design, and the knowledge and will to take it to market, but I don’t have the experience to develop and make a reliable App. It’s clear to me that I will have to build a relationship with a developer at some stage, in order for the idea to become realised.


Dec 02 2010

Cash Flow

As part of the business plan, it will be expected to have some sort of cash flow. Managing cash flow is vitally important in the smooth running, survival and success of a business. The cash flow will relate directly to the marketing plan. Areas where the App is promoted and advertised more, should show an increase in sales

By using a spreadsheet with the appropriate fields, I can determine my outgoings, potential sales and net profit overall.

Because a cash flow such as mine involves a lot of careful estimation, I decided to map it as a ‘worst case scenario’, where sales are much lower than I expect them to be. This way I can prepare for any financial trouble that I may find myself in.

From the spreadsheet we can see a total profit of £18165 after year 1. This is also the ‘Total Profit After Drawings’ as Stuart and I will be splitting any profit equally rather than taking a wage. 




Dec 02 2010

Introducing… Stuart Birse

After much discussion, I have decided to bring on board my fellow NCR labs co-worker Stuart Birse to the YumTum team.

Stuart and I have been working together on a number of high quality projects for a while now, both from in University and at work. He’s highly skilled as a computer programmer and developer, with previous experience in developing Apps for iPhone.

Stuart is as enthusiastic about the project as I am, and will be taking charge of the App’s development. Myself and Stuart will be equal partners in the business as we have been in previous ventures.

Due to the fact that we both work another job, we are both happy to have YumTum running as a business in our spare time. Any financial help we need can be sourced directly from our income from work before applying for loans should it be required.

As equal business partners, Stuart and I have decided to contribute £1000 each to the start up costs. The profits from the sales of the App will then be divided equally after expenses are taken. Tax is already taken care of as part of Apple’s percentage of the sales.

The below picture was taken when Stuart won the Amor Group Prize for Software Engineering 2010.


Dec 02 2010

Marketing Plan

‘Critical Marketing Tasks’ already discussed some key deadlines for points to be actioned for YumTum.

I am a very visual person - I’d much rather look at a diagram than read a lot of text, so I thought it best to create a simple visual timeline of what I will be doing with regards to the Marketing of YumTum. I can then cross reference this with what I outlined in ‘Critical Marketing Tasks’ for more information.

To help boost the popularity of the App, it will be available for free for the first week before being priced at £0.99. 

The In-Store promotions will be seasonal to help boost sales. The seasonal meals YumTum can focus on for healthy options are Christmas Dinners and Summer BBQ’s. New year will also have strong focus, directed at those eating healthier as part of a ‘New Year’s Resolution’. The launch of YumTum should ideally also be in one of these seasons, however there is still a lot of development to do at this stage.

Our advertising will be split into two different sections.

 Online

  • Our own YumTum website, Twitter and Facebook.
  • Exposure on various food, lifestyle and design blogs (Guardian Tech, LifeHack etc)
  • Advertisements on related websites, applications and search engines. (Spotify, Google) Viral Ad campaign (Youtube, Vimeo etc.)

 

Real World

  • In Store Demonstrations around the UK (cooking a recipe that’s cheapest at that store)
  • Magazine & Print features
  • Radio & TV Advertisements (dependant on initial success as these are expensive)

               


    Dec 02 2010

    Hit Tennis - An iPhone App Sales Example

    Whilst doing some research into marketing techniques for Apps I came across this very helpful article.

    http://www.markj.net/iphone-hit-tennis-sales-stats-marketing/

    The article is written by a developer called Mark, who launched his own tennis game ‘Hit Tennis’ on the App store. Mark shares six months of sales figures from this app in order to demonstrate effect on sales of various events, some under his control and some not.

    He launched the App quickly in November 2008 to try and get some Christmas sales. His launch strategy was a simple online press campaign by emailing review sites with a YouTube demo vid, and starting off as a free app to ensure lots downloads. He quickly got small news stories and reviews on some good gaming and iPhone sites. The first 2 days saw about 70,000 free downloads. On day 3 he switched to his price of $1.99.

    I think it’s really valuable to launch an App for free to allow the consumer’s to try it. It works very similarly to food sampling - the idea being that you like the product and later purchase it, or tell your friends about it. With Apps, if you get it free you have it for life, so the theory relies on the good reviews that come from free downloads, and the word spreading about the App. This is something I think YumTum should do for a few days, perhaps a week.

    Christmas saw a huge sales spike for Hit Tennis - 4x over normal and welcome extra revenue, and then through January sales came back down to pre Christmas levels. January till April, Mark did no promotion of Hit Tennis, but was a very lucky. A competing Tennis app Touchsports Tennis was shown for a few seconds in Apple’s TV ad for the iPod touch in February, which encouraged consumers to search for Tennis Apps on the App Store.

    Reading about Mark’s success over Christmas sparked an opportunity for YumTum. Food changes with seasons, and especially with holiday related meals like Christmas Dinner and summer BBQs, the demand for recipes will increase. Another seasonal opportunity I can take is New Year, when millions of people around the world make a New Years Resolution to eat healthier or diet. I should use this to my advantage, and make more of an effort to push YumTum sales when these seasons hit. Perhaps by doing more in-store demonstrations. 

    Mark also goes on to mention that his sales increased with update’s for the Application. Something to note is that with each update on an App, the reviews get a fresh start. This way, if the App suffers because of a fault it won’t have a long lasting damaging effect.



    Dec 02 2010

    Press Release

    In order to gain interest from any blogs or forms of media to help advertise and write about YumTum, I need to write a Press Release.

    A press release is pseudo-news story, written in third person, that seeks to demonstrate to an editor or reporter the newsworthiness of a particular person, event, service or product. The aim is also to increase the chance of having a story published, and make the editors’, freelancers’, reporters’ or journalists’ job easier by presenting the release in a format and style that appeals to them.

    In my case, I need to tell them about YumTum and how successful we believe it will be.


    Nov 29 2010

    Business Feedback

    I’m fortunate enough to have a part-time internship at NCR labs. I’m able to speak to a lot of different colleagues, many of whom have developed for the iPhone in the past. My colleague Stuart Birse was the one who first introduced me to the Tesco’s API and gave me a rough understanding of how it works. He is keen to be involved in the project, and if it goes further will most likely be the developer involved for YumTum.

    The trickiest part of the App is making sure that it works consistently. It will be difficult to check if the prices are always accurate/up to date or not, but with enough extensive testing before launch you can iron out almost any flaws. Many Apps are launched and have updates to fix faults after release. Sometimes you get customers that find a glitch or a bug and they can be kind enough to make a complaint or simply let you know that something isn’t working. It’s then very easy to release an update and fix that problem. That’s one of the best things about launching something on the App Store. ” - Stuart Birse

    My father, Ron Grosset, happens to be one of Scotlands leading publishers. He’s been in this position for a number of years now, so has a very strong understanding of how to reach a target market effectively. One of his most recent successes was the idea of doing the ‘Maw Broons Cookbook’. The book as successful enough to be number 1 at Christmas in Waterstones in it’s first year of launch. Maw Broons is most famously known for being the mother of the Broons family as published by DC Thompson and co. The book is designed and set in the 1930’s which gives it a very particular charm. The recipe’s are in no way aimed to be healthy though. They are simply very traditional recipes, much like you would expect a mother of the time to be making. Health was not such a big concern back then. My dad has always been able to answer any questions in a very professional manner. He has always shown me it’s important to take criticism well, which is an important lesson to learn when building a business. When the Maw Broons Cookbook came under fire from health critics for not being as healthy as other books, this was his response:

    Maw Broon has 11 mouths to feed, for goodness sake. She’s an expert in portion control, particularly as she gets towards the end of the week. I don’t think a taste of the past will do anybody any harm once in a while.”  

    YumTum will no doubt come under criticism at some stage. But all criticism isn’t bad. It’s best to have a light hearted approach to it, much like my father did when promoting Maw Broons. If he hadn’t spoken in the same spirit that the book had, or was negative in response it would probably damage the reputation and ultimately the sales of the book.


    Nov 29 2010
    2 notes

    Customer Feedback

    I’ve been in touch with a range of different potential customers of the App in order to gain some valuable feedback before writing the Business Plan. Each interviewee was selected based on having either an iPhone or an iPod Touch or an iPad. The questions asked are deliberately open to get as much useful feedback as possible. The App was presented both on paper and as a static demo on an iPhone, and each person interviewed was given a short introduction to the idea and what it was about.

    Ross Forrest, 22, Ethnography Student at Duncan of Jordanstone. Living in student accomodation.

    What’s your first impression of YumTum?
    “It looks pretty interesting. I like the colours going on, and the logo reminds me of spaghetti in the way that it curls around. It’s nice and inviting rather than being all scary which some Apps can be like. Does that make sense?”

    What do you think of the name?
    “I like it yeah. Quite catchy and it rhymes which is always nice. If anything I would expect it relating to japanese food more than anything, but that’s me being really picky. There’s not much you can go wrong with there though.”

    What do you think of the design for the App?
    “Again I really like the colours used. It’s clear how you would navigate it all, it’s just a shame I can’t actually do anything on it yet, but I suppose it’s just a prototype for now right?”

    Could you see yourself making use of an App such as this?
    “Yeah definitely. As long as it didn’t cost very much I try most Apps in the hope that they’ll help me in some way. I eat rubbish most of the time so it would probably do me some good! And again, if it costs me less thats ideal!”

    Have you tried any other recipe Apps? What were your thoughts on them?
    “I’ve seen the Jaimie Oliver one, but not bought it. It’s pretty decent from what I hear though. Apart from that I don’t really have anything. I have a shopping list App, but that’s not very exciting.”

    Anne Thompson, 52, Travel Agent. Living with husband in her own house Edinburgh.

    What’s your first impression of YumTum?
    “Very Fancy! The idea is very good but I’ve seen quite a lot of similar things out there. I’d have to try it before I make any snap judgements though.”

    What do you think of the name?
    “It reminds me of a restaurant called BauWau’s that was open for a short while on Queensferry street. That was quite a modern place that sold a variety of HotDogs…”

    What do you think of the design for the App?
    “Looks fairly straight forward! I like the blue in the logo, and the wood effect in the background. It’s very kitcheny”

    Could you see yourself making use of an App such as this?
    “Possibly! I’ve not had my phone long so I’m still getting used to all the Apps. I already have a lot of home cooking books and I shop mostly at sainsbury’s… Maybe I could get into this top ten recipes with something though? Do I win a prize!?”

    Have you tried any other recipe Apps? What were your thoughts on them?
    “Nothing recipe based, no sorry!”

    Duncan Taylor, 29, works for an Oil Company. Living with newlywed wife near Aberdeen.

    What’s your first impression of YumTum?
    “Sounds like a cool idea. I have a bit of a beer belly going from my holidays so I should probably pay attention to this.”

    What do you think of the name?
    “Yeah its nice and catchy. It doesn’t really say much about what it is, but that’s probably what your slogan’s for.”

    What do you think of the design for the App?
    “It’s got some colour but it’s not in your face or anything. I quite like this logo sitting at the bottom. Will that be there all the time or? Me - Yes most likely. Cool, well yeah It’s nice… No complaints as long as its not mega complicated or too fiddly when it’s actually running. I can’t stand when Apps are ruined by being too stupid to use, it just makes them pointless.”

    Could you see yourself making use of an App such as this?
    “Yeah, as long as there was something there for me that I like. I keep nudging myself to eat better but I can never be bothered. New year’s not too far away so it’ll probably be a resolution of mine again, not that I did much about it last year…”

    Have you tried any other recipe Apps? What were your thoughts on them?
    “Not me personally, but there’s always a first time.”


    Nov 29 2010
    1 note

    Developing the YumTum Brand

    Before it’s time to begin writing heavily into a business plan for YumTum, it’s wise to start building what the brand will look like. This will prove useful for pitching the idea to others, and getting feedback from potential customers.

    In order to develop how YumTum should look, I’ve been looking at other brands in the same market. As mentioned before, the Waitrose App is very well designed, both in functionality and in representing the Waitrose brand. It keeps the dark green colours and font associated with Waitrose within the design. I need to make sure that the YumTum App has the same continuity as the Waitrose App does. The design should also assist the functionality.It must not appeal to all rather than one single area of it’s target market.

    After much consideration, this is the image that I believe represents YumTum and it’s values the best. The colours are intended to be fun without being childish, and the App has a “warm cooking feel to it”. I now have a logo, slogan and colourscheme to work with.


    Nov 28 2010

    Market Positioning - A lecture from Professor Tom Inns

    Tom Inns gave a lecture on Market Positioning and how it is best approached.

    It’s first important to understand the market in as much depth as possible. To do this, we need to break things down a little.

    Understanding who could buy the product?
    Market Segment
    A subgroup of consumers sharing one or more characteristics that cause them to have similar product needs.

    Market Segmentation
    The process of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs.

    YumTum’s Market Segment is difficult to break down however not impossible. The common characteristics involved would be owning an iPhone or similar, the desire to eat healthily, and the desire to save money.

    Forecasting a trend can prove helpful. There are companies existing that specialise in future trends, and how customers are likely to change/behave. One such company is TheFutureLaboratory.

    The Future Laboratory helps brands to:
    Identify future, profitable customers
    Achieve rich insights into how customers’ values will change over time
    Devise cost-effective brand strategies that ensure brand values are continually aligned
    Stay up-to-date with the latest retail, social, commercial and design trends affecting their industries

    Analysing future trends will help a business check that their values and strategies are properly ‘aligned’ or heading in the right direction. This is appropriate for my business, because YumTum needs to stay “ahead of the game’. Analysing possible future trends will allow the App to evolve and anticipate possibilities that lie ahead.

    So how can we find out more about our market?
    Observation, Role Storming, Focus Groups, Interviews and Prototypes.
    Role Storming
    This is when we try to think as closely to the consumer as possible. “get inside their heads” as such, and act out the experience of using the product first hand.
    Focus Groups
    Asking useful, and inviting questions to focus groups will spark conversation and give more useful feedback rather than yes or no answers. Asking focus groups to use the product while taking a video, or simply watching can be very useful. Props and stimuli are useful in this situation also.
    Surveys and Interviews
    Surveys can only prove useful if the person filling them out is bothered about doing it. In order to keep the user’s interest, questions should be short, and the design must be well constructed. Again, it’s useful if these questions allow for a response.
    Prototypes/Cultural Probes
    Prototypes are generally physical objects that a consumer can interact with at an early stage. They are useful in focus group situations, or one on one interviews.

    As I’ve been continually developing the project, I’ve been having mini-interview sessions with consumers to gain another perspective on the idea. I’ll be documenting more of these once the YumTum branding is in place and I can provide a form of early prototype.

    Once information is gathered from any of the above, it must be translated into something useful like a design target. A well practiced method for structuring the opinions of a customer is to use an Affinity Map. An Affinity Map provides a strong framework for organising data, and helps bring to light relationships which might not be quite so obvious as at first.
    Affinity Maps are broken down into levels of customer need. Primary, Secondary and Tertiary. Each stage is more detailed than the last. Here is an Affinity Map I developed for helping the design of the YumTum App.

    These needs can be translated further into measures or targets. How can we test or measure if this need has been fulfilled by the product?

    • Decide key areas for comparison (based on customer needs…)
    • Collect competing products together
    • Evaluate against key needs and their measures
    • Use this evaluation to identify ‘targets’ for future development.

    The targets are what form the basis for defining the Product/Service. This is usually known as the Project or Design Brief. When we define these, it’s best to place them as either Demands - requirements that must be met otherwise the product will fail, and Wishes - requirements that are desirable but can only be pursued as far as is realistic or economically viable.

    Being able to rate customer satisfaction allows a business to structure an approach to their customers, and review how well things are progressing. A well known method for analysing customer satisfaction is Kano’s model. By rating attributes against eachother like in the diagram below, we can realisticly view how satisfied a customer should be with a product.


    1 2 3 Next