Finding product-market fit for a new venture in Luxury Senior Living
Updated: Jul 20, 2022
Help find the product-market fit for a luxury senior living space for the finest Indian consumers, by using the power of business insights, customer segmentation and consumer insights.
The founder wanted to assess the commercial viability of his product idea. He wanted to know if the problem it addressed was big enough and resonated with a larger audience, as well as whether it had the potential to become financially viable.
Thinking Spree's team helped him find the product-market fit for the idea—a luxury senior living space for the finest Indian consumers. By conducting numerous research studies, our team was able to offer business insights, customer segmentation and consumer insights, along with other essential data, which were used to answer all of the founder's questions
Business Landscape Research
Our team conducted research to understand the types of people who have moved into senior living spaces, and what kind of amenities are being offered.
From our research, we found that senior living in India was spread across multiple life cycles. We saw that seniors were starting at 50 years old, with multiple stages of life—including active living, assisted living and advanced geriatrics care like nursing care, dementia care, respite care, post-operative care and chronic condition care.
After considering all the options, the founder decided that they would focus on active and assisted living. They wanted to target affluent seniors who had worked hard all their lives and were looking for a luxury retirement.
The next big question was: Out of all the target audiences that opt for senior living in India, who would be the right target for luxury senior living? How old should they be and what should be their income or funds? What other common attributes should they have?
We interviewed ten seniors from various areas of life and found out who would be most willing to look at luxury senior living options in India. By eliminating potential customers, based on their answers, we were able to identify an exact person, who is most likely going to buy the services. Finally, we created personas for the target audiences to help us visualize who they are.
We interviewed ten seniors exactly matching the personas and found out more about them.
The conversations hosted with them were more in-depth with an aim to gain a deeper understanding of their lifestyle, values, habits and problems. This enabled us to identify key aspects that would make them feel excited and what concerns they were facing.
For example, the majority of senior citizens expressed a desire to have a place where their children could easily fly down and enjoy idyllic surroundings, or they needed people to support them instantly with their medical needs. They did not want the hassle of cooking every day.
Post the product development based on consumer insights, we used conjoint analysis to identify which features would appeal to the target consumers. If the features were enticing enough, we determined whether price points were something that would be comfortable or a cause of worry. This research enabled us to establish the price range within which people were happy to pay for the services.
Results of the research showed that most consumers were extremely happy with the features and services, but price points turned out to be a huge cause of concern. This led them to think more innovatively in order to provide the requisite services within founder's ability to pay.
Results of the study
The key findings and recommendations of the study were:
The market size for active living was large enough and is growing in India progressively.
There are very few players in the Luxury segment, and there is a substantial sub-segment that would look at availing of senior living solutions.
The product's ideas resonated with the audiences however, their willingness to pay very high rents was not seen.
The founder was recommended to think of a product at 40% lower price points to make the service sellable in the Indian market.
The founders of the study avoided large capital investment in products that would not have become viable in the Indian market, and instead gained insights into customer needs and preferences that led them to redesign their products and price.
Here’s a direct quote from the founder:
“Thanks for sharing customer insights, it not only helped me understand user needs but look at business rationally''
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