Final project for HBS Launching Tech Ventures course

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Sweatshop free and sustainable Do good Fair Trade and Organic cotton Look good Designed to be flattering Sophisticated – not distressed Fit models size 8 Construction – wide waistbands Fabric - stretchy Handmade details Kismet Denim better-fitting jeans for sophisticated women Julia Kastner 4.24.2012

Transcript of Final project for HBS Launching Tech Ventures course

Sweatshop free and sustainable

Do good

Fair Trade and Organic cotton

Look good

Designed to be flattering •  Sophisticated – not distressed •  Fit models size 8 •  Construction – wide waistbands •  Fabric - stretchy

Handmade details

Kismet Denim better-fitting jeans for sophisticated women

Julia Kastner 4.24.2012

Tested hypotheses to inform product design

Business goal: To serve affluent, sophisticated women 30+ and reduce production costs we can reduce denim washing and treatment processes:

Hypotheses:

•  Women 30+ prefer dark jeans

•  Women 30+ prefer fewer “whiskers” or artificial creases

•  Women 30+ prefer less bleach

•  Women 30+ prefer pencil legs or skinny jeans

•  Women 30+ prefer simple but branded pockets

•  Women 30+ prefer pockets without sparkles

•  Hypotheses hold true for both premium ($100+) and non-premium jeans

K

K

Chose test design – conjoint vs. survey  

Conjoint •  breaks a product concept

into relevant attributes

•  estimates the value potential customers attach to each attribute

• Powerful

• Analyze each attribute independently of others

• Expensive •  ($1,500 student tool)

• Recommended • sample size = 400 • (by Survey Analytics)*

Survey •  Show two pairs of jeans

• Ask survey taker to choose preferred picture

• Mix premium and non-premium

• Low cost

• Relatively easy to implement

• Learn basics about product features

• Difficult to write and ask non-biased, objective questions

• Hard to recruit representative respondents

Decided this was not feasible

Chose to conduct a survey

Advantages Disadvantages

*Conjoint  research  from  Jack  Geiger,  Survey  Analy<cs.  360.471.5514  

Made and conducted survey  

Filtered for age group: Asked participants to choose between pairs of jeans styles:

$89  un-­‐distressed  jeans    (Banana  Republic)  

$200  distressed  jeans    (Seven  for  All  Mankind)  

110 responses 35 age 21-29 75 age 30+

Sample questions: coating, color & legs  

Light vs. Dark

Coated vs. Clean

Skinny/Pencil vs. Boot/Flair

Sample questions: pocket brands & designs  

Levi’s vs. True Religion

Sparkle vs. No Sparkle

Survey results - styles  

Percent chose style: Total Age 21-29 Age 30+

Clean ($60) (vs. distressed with whiskers)

68% 80% 62%

Dark ($89) (vs. very light $200)

94% 97% 92%

Distressed, coated rear ($69) (vs. clean $179)

26% 17% 30%

Boot cut/flair ($179) (vs. skinny/pencil $179)

41% 31% 54%

No bleach ($179) (vs. bleached knees $179)

65% 74% 61%

•  Most  women  prefer  dark  jeans,  clean  styles  

•  Women  in  20’s  prefer  skinny;  women  30+  are  divided  between  skinny  &  boot  

Survey results: pocket branding & design  

Percent chose pocket: Total

(79 women) Age 21-29

(31 women) Age 30+

(48 women)

Seven for All Mankind ($200) (vs. no brand)

55% 51% 57%

Levi’s ($50) (vs. no brand)

63% 59% 65%

True Religion ($200) (vs. no brand)

16% 12% 18%

Sparkle ($179) (vs. design without sparkle $179)

18% 6% 24%

Bigger pocket ($50) (vs. no brand)

59% 44% 66%

• All  women  prefer  pockets  with  simple  designs  like  Levi’s  and  Seven’s  

• Women  preferred  Levi’s  pocket  slightly  more  than  a  clean  pocket  

• Most  women  surveyed  do  not  prefer  True  Religion  pockets  over  plain  pockets  

• When  shown  pockets  without  designs,  women  30+  preferred  bigger  pockets  

•  Used understanding of pocket preferences to inform ongoing graphic design of jeans pockets

•  Using preferences around colors to inform wash development process – darker colors

•  Using preferences around leg shape to inform sample development – will make both bell and pencil samples

Progress made against business objectives  

General lessons learned  

•  Conjoint is really expensive and difficult for an entrepreneur! But potentially solves survey problems.

•  Surveys can surface customer preferences – providing surprising results and confirm/disprove hypotheses

•  Hard to know if sample is representative, sufficient – especially when comparing 2 populations

•  Nuances of writing surveys – some questions were misleading – when more than one attribute was even a little bit different (e.g. one pair distressed AND darker) hard to disaggregate preferences