A simple trip to the dry cleaners changed Komfwe Mumba's career path. When the Lusaka businessman picked up his clothes, he discovered that the cleaner had ruined one of his ZMW 500 dress shirt. He would have been satisfied if the owner of the cleaner had offered to replace his shirt, but he did not. He didn't even apologize to Komfwe, and that's when Komfwe decided to do something about it. Although the Lusaka market is crowded with dry cleaning establishments, komfwe left his corporate job to launch bibbentuckers, a dry cleaning operation that offers Lusaka residents better quality and better service at higher prices than other dry cleaning establishments currently in operations. He suspected that a segment of the market would be willing to pay premium prices for a dry cleaner that offered convenient locations, superior quality and service, and extra amenities. Komfwe didn't rely on his instincts alone, however. Before, starting bibbentuckers, komfwe did plenty of research and put together a business plan to guide his entrepreneurial venture. He started with the vision he had for his business. One night when he couldn't sleep, komfwe began listing the characteristics he wanted his dry cleaner to exhibit. Based on his negative experience with his former dry cleaner, komfwe listed "standing behind our work" first. He listed nine other items, including a drive-up service with curbside delivery, a computerized system that would track clothes through the entire process and would use bar code scanners to read customers cleaning preferences, and cleaning process that used the most current, environmentally friendly equipment and materials. The one item that was not on his list: low prices. "The things I wanted in a perfect dry cleaner were incompatible with discount operations” He explains. Komfwe's next step was research the industry and the market potential for his venture. He spent a solid week in the library, where he learned all about the dry cleaning industry, a ZMW 16 million a year business dominated by small independent operators who competed primarily on the basis of price. He also discovered that dry cleaning establishments accounted for a large number of customer complaints with the Better Business Bureau (BBB). The number one complaint "cleaners didn't stand behind what they did" says Komfwe with a smile. He also learned about legislation that was about to take effect that would change the way cleaners handled their cleaning solvents. 5 As he assembled his plan, Komfwe realized he could use environmentally friendly approach to cleaning as a marketing tool, something that very few operators were doing. He researched the existing competition in Lusaka and discovered that several dry cleaners were not taking a premium approach to the market. Realizing that he had to differentiate his business from his competitors, Komfwe gave his outlets a unique and appealing design. The free-standing stores, professionally appointed decor included attractive awnings and drive through lanes as well as television screens and free refreshments. "I wanted a place that people would feel comfortable leaving their best clothes, a place that paired five-star service with an establishment that didn't look like a dry cleaner," he says. One key question, to be answered, of course was “would customers be willing to pay for quality, service and convenience?" To find out, Komfwe hired a marketing firm and conducted focus groups of potential customers who discussed everything from the look of the company's buildings to its name. Komfwe even took clothes to the best 15 dry cleaners in town and let members of the focus group critique the to learn exactly what customers' expectations were. His goal was to exceed their expectations. After synthesizing all of his research into a plan, Komfwe launched Bibbentuckers in the Lusaka suburb of new kasama. From his research, he knew that typical dry cleaners generates ZMW125 000 in revenue a year. Komfwe knew his research and planning had paid off when his first store was on track to surpass ZMW 50 000 in sales in its first year and began earning a daily operation of the company to serve as a chairman of the board. He is now in another business start-up, and he and his co-founder are taking the same fastidious approach to researching the industry and the business before they are ready to launch. In fact, a team of 13 people has already spent a year researching the venture to be sure they get it right the first time. What a Business venture! a) Discuss the sources of business idea generated by Komfwe Mumba in the case study? b) Explain why it is important for entrepreneurs like Komfwe to research their industry and markets before launching a business?
A simple trip to the dry cleaners changed Komfwe Mumba's career path. When the Lusaka businessman picked up his clothes, he discovered that the cleaner had ruined one of his ZMW 500 dress shirt. He would have been satisfied if the owner of the cleaner had offered to replace his shirt, but he did not. He didn't even apologize to Komfwe, and that's when Komfwe decided to do something about it.
Although the Lusaka market is crowded with dry cleaning establishments, komfwe left his corporate job to launch bibbentuckers, a dry cleaning operation that offers Lusaka residents better quality and better service at higher prices than other dry cleaning establishments currently in operations. He suspected that a segment of the market would be willing to pay premium prices for a dry cleaner that offered convenient locations, superior quality and service, and extra amenities. Komfwe didn't rely on his instincts alone, however. Before, starting bibbentuckers, komfwe did plenty of research and put together a business plan to guide his entrepreneurial venture.
He started with the vision he had for his business. One night when he couldn't sleep, komfwe began listing the characteristics he wanted his dry cleaner to exhibit. Based on his negative experience with his former dry cleaner, komfwe listed "standing behind our work" first. He listed nine other items, including a drive-up service with curbside delivery, a computerized system that would track clothes through the entire process and would use bar code scanners to read customers cleaning preferences, and cleaning process that used the most current, environmentally friendly equipment and materials. The one item that was not on his list: low prices. "The things I wanted in a perfect dry cleaner were incompatible with discount operations” He explains.
Komfwe's next step was research the industry and the market potential for his venture. He spent a solid week in the library, where he learned all about the dry cleaning industry, a ZMW 16 million a year business dominated by small independent operators who competed primarily on the basis of price. He also discovered that dry cleaning establishments accounted for a large number of customer complaints with the Better Business Bureau (BBB). The number one complaint "cleaners didn't stand behind what they did" says Komfwe with a smile. He also learned about legislation that was about to take effect that would change the way cleaners handled their cleaning solvents.
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As he assembled his plan, Komfwe realized he could use environmentally friendly approach to cleaning as a marketing tool, something that very few operators were doing. He researched the existing competition in Lusaka and discovered that several dry cleaners were not taking a premium approach to the market. Realizing that he had to differentiate his business from his competitors, Komfwe gave his outlets a unique and appealing design. The free-standing stores, professionally appointed decor included attractive awnings and drive through lanes as well as television screens and free refreshments. "I wanted a place that people would feel comfortable leaving their best clothes, a place that paired five-star service with an establishment that didn't look like a dry cleaner," he says.
One key question, to be answered, of course was “would customers be willing to pay for quality, service and convenience?" To find out, Komfwe hired a marketing firm and conducted focus groups of potential customers who discussed everything from the look of the company's buildings to its name. Komfwe even took clothes to the best 15 dry cleaners in town and let members of the focus group critique the to learn exactly what customers' expectations were. His goal was to exceed their expectations.
After synthesizing all of his research into a plan, Komfwe launched Bibbentuckers in the Lusaka suburb of new kasama. From his research, he knew that typical dry cleaners generates ZMW125 000 in revenue a year. Komfwe knew his research and planning had paid off when his first store was on track to surpass ZMW 50 000 in sales in its first year and began earning a daily operation of the company to serve as a chairman of the board. He is now in another business start-up, and he and his co-founder are taking the same fastidious approach to researching the industry and the business before they are ready to launch. In fact, a team of 13 people has already spent a year researching the venture to be sure they get it right the first time. What a Business venture!
a) Discuss the sources of business idea generated by Komfwe Mumba in the case study?
b) Explain why it is important for entrepreneurs like Komfwe to research their industry and markets before launching a business?
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