Market Expansion & Research Initiative
Worked directly with CEO of VEL, Mo Hamzian to make the third space THE place
Semester long team project for a live client
VEL is a work cafe that provides a space for modern digital workers to be productive. The business has locations in Savannah, Jacksonville, Charlotte, and Charleston. The challenge of the project was to evaluate the viability of expanding their market to college students.
Ask: Should VEL expand their market to college students?
Problem: Business model innovation, environmental and operational solutions
Solution: Observational research, pitch deck design, primary and secondary research synthesis
In order to determine whether or not VEL should expand their target market to college students, we examined competitors, expendable income, and working habits. We conducted surveys, observational studies, and interviews.
After conducting our primary research, we found that college students would like for their third space to be walkable and close to where they live. We also found that individuals working in third spaces tend to be flexible and collaborative. During our surveys we discovered that the majority of college students would consider an alternative working space, but are not willing to pay for it. This was when we had the idea to charge students for the service in other ways.
Our first suggested approach based on our research was to partner with colleges and universities to create on-campus locations. This approach would entail creating hot spots on campus, in an outdoor pop-up format. The service costs would be incorporated into student tuition fees. Our second suggested approach was to make locations adjacent to college campuses.
When considering overall solutions for VEL locations, we decided to suggest possible solutions that incorporate our findings during out primary research. This includes advancing technological innovation within the spaces, providing customizable spaces to suit remote workers, and building designated areas for community bonding and collaborative work.
Our operations suggestions included the expansion of operating hours, based on the research we conducted on time spent within a third space. We also suggested the development of an app or platform that notifies customers when a private work area is available. In addition, we placed an emphasis on product packaging in vending machines, and the acquisition of entry cards in the form of lanyards to provide a sense of work community.
Team: Bella Erhamza, Ellie Massing, Sam Grimm, Abby Hanly, Nina Prodanovic, Tekla Khantadze, and Meghna Anil