VALUE PROPOSITION DESIGN TESTING FOR DEVELOPING FASHION BUSINESS

• Main Author: Putri Salsabilla, Yasa
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/67025
• Institution: Institut Teknologi Bandung

The expansion of online clothing shopping, which is a positive sign, enhances competitiveness. Due to the massive fierce competition, a company should have unique characteristics upon its value offered for its existence to be accepted and perceived by the market. The absence of an appealing value proposition that would compel prospective buyers to take a purchase action was the reason for a new business or start-up's failure. In recent years, 90% of startups fail, 20% in the first year, 30% in the second year, 50% in the fifth year, and 70% in the tenth year, with a lack of Product-Market Fit accounting for 34%of failures. Olwité is a local brand based in Bandung that concentrates on women's clothing, especially white clothes which was just established in early 2022. Olwité attempts to display all values of the brand at the start of the launch, attempting to address all pains and gains of customers wastes resources on non-value-adding value propositions. Olwité has not articulated a value proposition because there is no evidence that the jobs, pains, and gains stated actually matter to the customer; additionally, there is no evidence that the products add value to the customer. To prove that the brand's value proposition has been validated, this research implemented two of Osterwalder's Three-kind of Fit framework test: ProblemSolution Fit and Product-Market Fit, utilizing the customer profile and value map parts of the value proposition canvas. This research employs a mixed methods approach. Qualitative research was conducted through in-depth Interviews to develop empathy map and initial value proposition canvas, and data analytics to test the Product-Market Fit. Quantitative research was conducted using a survey with a 4-point Likert Scale and a keyword test to test the Problem-Solution Fit. Thus, two value proposition hypotheses were developed: sustainability and simplicity. To test the hypotheses, three stages of testing were conducted: interest validation, preference validation, and willingness to pay validation through Facebook Ads tracking actions. i The result of the test is value related sustainability becomes the most compelling value proposition with the highest willingness to pay. Furthermore, Olwité will optimize the customer relationship and channel in order to deliver the value proposition.