Carlo Rino is a well-established fashion business that targets young women 18-35, who feel confident and daring. The brand sells bags from genuine and fake leather, using a developed network of suppliers. Carlo Rino is a successful business, but recently it discovered the need for an urgent innovation. At the moment, the company sells its products only in Italy, through shipping their goods, thus bringing losses of profit since considerable sums of money go to third parties. Therefore, there is a need to expand the target market covered by the brand through collaboration with new suppliers, online SMM marketing and Internet 2.0, and by establishing a pop-up store.
The business theory implies that the viability of the proposed idea should be tested for a good idea to become a testable idea. Therefore, the following hypothesis was developed about future value creation: customers will buy more products if offered the options of online and pop-up stores (Gottschalk et al., 2020). The proposed decision seems feasible since we can do this, viable since we definitely should do this, and desirable since our customers want us to do this.
The experiment will be implemented by following the experiment map presented in more detail in the PowerPoint slide. Four steps will be used to do an experiment: developing the hypothesis, verifying it through the experiment, using metrics to measure data, and applying the criteria to evaluate if the experiment was successful. Therefore, the first step of developing the hypothesis was already made; the second step will be verifying it through the experiment. Our team will do a validation experiment to ensure that customers will buy the Carlo Rino bags online and through the pop-up store. The participants will fill in the questionnaires where they will be asked about their intentions to buy the bags. Up to 1000 individuals from different countries should participate in the experiment to make it statistically worthy. After the answers of 1000 participants of a target customer category are gathered, the answers will be analyzed to conclude if the customers are willing to buy Carlo Rino products; 100 individuals from 10 countries will participate.
The criteria to measure the experiment’s success will be based on the potential customers’ willingness to buy Carlo Rino products, which will be reflected in their explicit answers and feedback. Some feedback on the most desired ways of online contact could be collected as well. No less important, the potential customers can be asked about their preferences in fashion. For instance, some buyers can be environmentally conscious and buy only eco-friendly products made from fake leather. Others may prefer that the company use non-traditional materials to produce its bags. Remarkably, the eco-aware environmentalist movements are popular now, and Carlo Rino can reform its attitude towards the materials from which the bags are produced.
Reference
Gottschalk, S., Rittmeier, F., & Engels, G. (2020). Hypothesis-driven adaptation of business models based on product line engineering. In 2020 IEEE 22nd Conference on Business Informatics (CBI) (Vol. 1, pp. 134-143). IEEE.