Module 2 Lesson 1 - Market research and validation of idea.
Learning intention - Understand the process of market research and how to validate your business idea
Success criteria: I can start investigating competitors. I can justify my business idea.
ACARA - AC9HE9K04 AC9HE9S02 AC9HE9S03
Learning activities
The young entrepreneurs now have a business idea, and have clearly articulated problems and solutions. It’s now time to find out if the idea is a goer.
Recap - E story (news.com.au or other sources). Problems and solutions with students and purpose of clearly defining these. Define what a business competitor is. 5mins
Watch ‘Why spend time doing research?’ Founda video. Define what market research is. Go through ‘competitor's analysis worksheet’ to check for understanding. 25mins
Market research blends consumer behaviour and economic trends to confirm and improve your business idea. It’s crucial to understand your consumer base from the outset. Market research lets you reduce risks even while your business is still just a gleam in your eye. Gather demographic information to better understand opportunities and limitations for gaining customers. This should include the following:
Demand: Is there a desire for your product or service? If yes/no, how do you know?
Market size: How many people would be interested in your offering?
Location: Where do your customers live and where can your business reach?
Market saturation: How many similar options/businesses are already available to consumers?
Pricing: What do potential customers pay for these alternatives?
SWOT analysis - what’s great about the product/service? What’s good about the product/service? What’s bad about the product/service? (secret sauce - check the competitor’s reviews, 3 star and below, for an insight into what’s bad about the business. Also, use the 5 star reviews for what’s great about it and what you could/should emulate), what opportunities are there for your business, what threats are there to your business.
Any barriers that may hinder you as you enter the market - available budget, experience, skill, contacts, time etc
Indirect or secondary competitors who may impact your success - a product that is in a different category altogether but which is seen as an alternative purchase choice; for example, customers are thirsty so, coffee and bottled water are indirect competitors.
Begin research. The entrepreneurs need to research 3 main competitors and 2 indirect competitors. This is a vital part of the journey - this is where some will change their idea, and begin the process again! 30min
Join Founda's community for the following resources: Founda video, competitor analysis worksheets.
Lesson 2 - Market research and validation of idea.
Learning intention - Understand the process of market research and how to validate your business idea.
Success criteria: I can continue investigating competitors. I can justify my business idea.
ACARA - AC9HE9K04 AC9HE9S02 AC9HE9S03
Learning activities
Recap - E story (news.com.au or other sources). Check for understanding about market research and how to do it. 5min
The young entrepreneurs need to finish their competitor analysis/market research by the end of the lesson. They will also need to complete the 'Competitor's analysis SWOT analysis' worksheet on their own business. This will help determine if their idea is worth pursuing, and also makes them aware of weaknesses and threats that will need to be addressed later. You cannot stress enough to them that the better/more in depth they do this, the better/more successful their business will be. 50min
Have some businesses share some insights about their research to finish. 10min
Join Founda's community for the following resources: Competitor analysis worksheets.
Lesson 3 - Market research and validation of idea.
Learning intention - Understand the process of market research and how to validate your business idea.
Success criteria: I can identify and propose my POD/USP.
ACARA - AC9HE9K04 AC9HE9S02 AC9HE9S03
Learning activities
Recap - E story (news.com.au or other sources). Check for understanding about main competitors for some individual businesses. 5min
Watch 'POD/USP’ Founda video. Define point of difference and unique selling point/proposition with the young entrepreneurs. This is where the Founda core value can come into play as a point of difference - an eco-friendly and sustainability focus is always going to resonate well. 10min.
The young entrepreneurs will need to go back to their research and identify what they are going to do differently to the competition - what will the customers recognise about their business as being the USP? What features of your business jump out at you as something that sets you apart? What can you promote that will make customers want to buy from you? What will you do to highlight your USP? By the end of the lesson, the entrepreneurs need to have clearly identified their USP and POD, ready for the next step. the following link is helpful -
https://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp
Join Founda's community for the following resources: Founda video, USP/POD worksheet.
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