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Incorporate the Lessons from the Lean Startup
Introduction
Budibar is a food product that was developed by Michael McCarthy. The main intentions of creating the new food product were for the purposes of keeping the stomach full for long hours without feeling hungry. Additionally, it was meant to improve the brain functions and other brain activities. Since it was a new commodity in the market, it proved to be a formidable challenge to McCarthy. This is because many entrepreneurs have failed due to offering consumers what they do not need. In this case, McCarthy had to search for practicable means that will introduce the product in the market as quickly as possible. Therefore, when McCarthy was introducing the Budibar product in the market, he employed lean startup techniques for quick market tractions and correct any mistakes from customers feedback.
Discussion
When introducing Budibar into the market, McCarthy wanted to use the least amount of money and simultaneously, eliminate any flaws of the product. For this reason, McCarthy needed a reasonable strategy that will help him achieve this goal. When McCarthy introduced the new product, he produced enough products from his customers for the purposes of acquiring feedback from them. Therefore, McCarthy had to look for the already existing customers in the market who he knew that they would provide apple feedback. In this case, customers were willing to help and they gave their feedback to McCarthy in relation to Budibar.
Since Budibar was being introduced for the first time in the market, McCarthy needed to produce only those products that would reach the targeted consumers for feedback. Secondly, McCarthy did not need to create complex Budibars because they would cost him a lot of money as compared to creating simple Budibars that are only used for test purposes. In this case, McCarthy produced simple Budibars for the purposes of customers to write feedback for the purposes of making high quality products for sale. This is similar to lean start up strategy where the products produced are for the purposes of testing so that customers can offer feedback to the producer. Additionally, lean start up strategies states that products should be produced at the cheapest prices possible. Therefore, McCarthy employed the lean start up strategies.
Another strategy McCarthy employed when introducing Budibar was the removal of distributors or distribution channels. This is where the channel of distribution was reduced to one. This made the mark up prices to go down since there were no intermediaries. On the other hand, the flow of information was made to be direct from the customer to the producer reducing distortion of information. In most cases, intermediaries might distort information so that they can mislead their producers for their own personal gains. This means that the method was cheap and feedback from customers was first hand. Therefore, when this strategy is compared to the strategies of lean start up, they are extremely similar. This is because lean start up is meant to be cheap and efficient to one customer.
However, there was no place for customers to write their feedback to McCarthy. In this case, McCarthy had to create a new website where he would incorporate customer feedback efficiently. This new method for customer feedback was extremely cheap since it would not take much for a customer to write their feedback. Additionally, it would not cost McCarthy to view the feedbacks and act on them. On the other hand, this was the most convenient and efficient method of communicating to customers and keeping in contact with them if anything new came up. For this reason, it was a strategic move of entrepreneurship using the lean start up strategy.
Customers responded positively to Budibar and they offered their feedback. For instance, they urged McCarthy to create new products that were alternative to medicines. This is where the Budibar will range from different products depending on the medicine in the food. For example, Budibar should contain Althine 200 milligrams similar to green tea. In this case, those customers who would like to take green tea would receive it from Budibar directly. This would be cheaper easier and much better than the option of taking green tea. In this situation, McCarthy received feedback from customers and at the same time, Budibar gained market tractions with the least costs.
After receiving customers feedback in the web, McCarthy started to evaluate those suggestions that seemed to viable and realistic to be improved in the product. McCarthy created categories so that he could be able to identify those suggestions that are viable and those that are not viable. For instance, one of the categories was new food products of Budibar. In this instance, many consumers suggested that the creation of food medicine would be extremely helpful. For this reason, McCarthy started testing those medicines that would work effectively if they were prepared as a product of Budibar and at the same time, they would have that enjoyable taste for the taste buds.
This is similar to the steps and strategies of lean start up strategies. The main of the lean start up strategies is to create test products at a cheaper price where they are expected to offer their feedback. After the customers have responded to the producers about the new product that is to be introduced, the producers are expected to act in the information they have received from customers. When this steps and strategies of lean start up are compared to what McCarthy did, it can be clearly seen that they are exceedingly similar. Therefore, McCarthy employed the lean start up strategies to introduce Budibar.
The other process employed by McCarthy in the introduction of the Budibar implementing the product. Based on the customer feedback, McCarthy implemented Budibar after reviewing the feedback. In this case, he produced Budibar containing medicines for the purposes of meeting the customer needs. On the other hand, he produced tasty Budibar with different flavors to suit the different customer needs. This ensured that McCarthy removed all the flaws that were experienced in the test product of the Budibar product.
Finally, McCarthy reintroduced the new products to the already existing customers and other potential customers in the market. In this case, he used the old customers who previously tested the product to verify that improvements have been made. In this case, McCarthy retained many customers and at the same time, he gained potential customers. This situation shows that McCarthy did not spend a lot of money to create market tractions. Additionally, he had already created customer loyalty.
Finally, after the above analysis, it be clearly seen that McCarthy employed lean start up strategies to introduce Budibar in the market. This is because the last strategy of lean start up strategies is to ensure that goods and services are finally produced at high quality. On the other hand, the aim is to bring the product in the existing market already created by the test product. In this case, McCarthy has fully employed the lean start up strategies.
Conclusion
Many entrepreneurs often wonder how they are going to introduce their products into the market at a lower price. When they finally introduce them, they fail because what they have brought in the market is not what the customers wanted. In this case, entrepreneurs like Budibar have used the lean start up strategies for the purposes of reducing prices, creating market tractions and reducing flaws in the product.
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