Commercialize your research: Market Analysis. Jörgen Adolfsson

Transcription

1 Commercialize your research: Market Analysis Jörgen Adolfsson

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3 Assessing and shaping new venture opportuni>es

4 Research center- consultancy with a specialist focus on the Middle East

5 Reusable surface for differen:a:ng influenza viruses of different subtypes

6 Adap:ve math program on ipad that helps low- performing 8 year- old students catch up in math

7 A system for successful reward- based learning in order to improve teaching and learning

8 The seven domains of opportunites Source: John Mullins, The New Business Road Test, 4 Ed., Pearson, 2013

9 Who is the customer?

10 Who is the customer for this board game? Developed by:

11 The customer as a market The total poten+al market for games (or board games)

12 The customer as a market segment Girls yrs old Families with kids 2-4 yrs old The hard- core gamer Dinkies who want to represent The mobile player

13 Segments within the market for airtravel (according to SAS) Price Time Convenience Source: Interview with SAS employee, April, Note: Chart does not correctly reflect the size of different market segments.

14 The customer as a value chain actor Game developer Publisher Wholesaler Retailer Consumer Logis>cs Adver>sing

15 Benefits sought/purchasing criteria can vary depending on place in value chain Publisher Retailer Consumer E.g., rapid development cycle, innova\ve game features E.g., contribu\on margin, intentory turnover per shelf sec\on E.g., a fun evening, social pres\ge

16 The customer as a buying center User Buyer Ini\ator BUYING DECISION Influencer Informa\on gatherer Decision maker

17 Purchasing criteria/sa>sfac>on requirements differ between departments Department Driver/objec>ve R&D..... Purchasing..... Produc\on.... Maintenance & support. Marke\ng... Sales.... Legal.. More cool func+onality! Low costs! Delivery reliability! No process changes! Customer sa+sfac+on! Easy to close deals! No legal risks! Gatekeeper..

18 ACTOR ROLE DECISION AND PURCHASING CRITERA

19 Match offer benefits with purchase requirements Compe\\ve prices Fast deliveries Offer benefits Plants on four con\nents Internet- based order, tracking and invoicing system Tailored produc\on and delivery schedule Handle order changes up un\l 12 hours before produc\on Delivers on Sundays and holidays and 24/7 when necessary Just- in- \me Delivery Seller Members of buying center and purchasing criteria Inventory Manager simple, safe storing, small parcels Purchasing Manager low prices Logis\cs Manager fast deliveries Produc\on Manager safety Marke\ng Manager enhances image Machine operator simple and safe to use Opera\ons Manager minimal down\me CEO worldclass, leading, offer access to exclusive network Buyer Source: Das Narayandas Building loyalty in business markets Harvard Business Review, September 2005

20 Have you chosen your target customer(s) wisely?

21 Solu>on- problem (need) fit The Value Proposition Canvas Value Proposition Customer Segment Gain Creators Gains Products & Services Customer Job(s) Pain Relievers Pains copyright: Strategyzer AG The makers of Business Model Generation and Strategyzer strategyzer.com

22 Strategic fit/alignment The resource base The offer The market, customers Source: Bruzelius & Skärvad, Integrerad Organisa+onslära, Studentligeratur, 2000 R Norman, Skapande företagsledning Bonnier Alba, 1993

23 Day Month Year No. Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? Key ac\vi\es What value do we deliver to the customer? Which one of our customer s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? Rela\onships How costly are they? For whom are we creating value? Who are our most important customers? Key partners The value proposi\on (the offer ) The target customer What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Key resources Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? Channels What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? Cost structure For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? Revenue streams (pricing) This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

24 Characters>cs of an market (or segment, or customer) More attractive Less attractive Strong firm- market match Large demand Growing demand High growth rate Stable need, behavior Predictable need, behavior Great purchasing power (lots of money) Low price sensi\vity, inelas\c demand Ligle bargaining power Reachable (communica\on, distribu\on) Low compe\\ve intensity, underserved Weak firm- market match Small demand Decreasing demand Low growth rate Unstable need, behavior Unpredictable need, behavior Low purchasing power (ligle money) High price sensi\vity, elas\c demand Extensive bargaining power Unreachable (communica\on, distribu\on) High compe\\ve intensity, overserved ADAPTED FROM: G Hooley et al, Marke\ng strategy and compe\\ve posi\oning, 4e, Pren\ce Hall, 2008 Armstrong & Kotler, Marke\ng an introduc\on, 7 ed., Pren\ce Hall, 2005

25 The seven domains of opportunites Source: John Mullins, The New Business Road Test, 4 Ed., Pearson, 2013

26 Is this a good industry?

27 Pricing power

28 Forces determining industry (or the firm s degree of freedom when seang price) Strong bargaining power when: Few Uninformed buyers Strongly impacts buyer product quality Differen\ated offers High switching costs Threat of forward integra\on Threat of new entrants A threat (low entry barriers) when: No economy of scale effect Small investment needs Access to distribu\on channels Low switching costs No permits, authoriza\ons needed Weak incumbent brands No expected revenge from incumbents Supplier bargaining power Rivalry among exis>ng compe>tors Customer bargaining power Source: M E Porter, Compe\\ve Strategy, The Free Press, 1980 A threat when: Offer same value, benefit Low price High quality Low switching costs Threat of subs>tutes Strong bargaining power when: Few and big Well- informed Buying standard prodducts Supplier important to final quality Low switching costs Threat of backward integra\on

29 Factors affec>ng degree of compe>>on (price pressure) among exis>ng rivalries Competitive intensity Lower Higher Few rivals, of varied strength Many, equally strong rivals Fast market growth Slow market growth Low fixed costs, storage costs High fixed costs, storage costs Flexible, mobile assets, resources Great perceived difference between offers Specific, customized assets, resources Small perceived difference between offers High customer switching costs Low customer switching costs Capacity increases in small steps Capacity increases in big steps Everyone follows industry conventions Low exit barriers No one follows industry conventions High exit barriers Source: M E Porter, Competitive Strategy, Free Press, 1980

30 Who is the compe>>on?

31 Industrial designer Manufacturer of RFID tags. Have problem with increasing produc\on costs.

32 Poten:al solu:ons to the problem of increasing costs of produc:on Industrial designer re- designing chip and makes it easier, cheaper to manufacture Process engineer overhauls the produc>on process Equipment manufacturer sells new produc>on line Outsourcing of produc\on of certain components to component vendor Divest manufacturing en\rely, use white label producer

33 Levels of compe>>on ( compe>>ve set ) BUDGET Customer s other costs and investments during the same budget cycle (salaries, training, adver\sing, ) SUBSTITUTE Solving the same problem but with different solu\on Re- design, process overhaul, new equipment, outsourcing, BRAND- BASED COMPETITION (direct, frontal compe\\on Zenit, Ideo, WSP, Ramboll,

34 Compe>>on = subs>tutability

35 Sales

36 Compe>>ve advantage

37 Related perspec>ves on compe>>ve advantage Customer- perceived advantage (e g cheapest, most reliable, safest) Resource (combina>on) (e g skill set, patent, system/process, size)

38 The customer- perceived compe>>ve advantage

39 Customer value = benefits - sacrifices Customer perceived value ( 6 ) Benefits Sacrifices Firm/offer agributes

40 Added value firm/project raison d etre Perceived added value Customer perceived value Your offer The customers next best alterna>ve (compe>tor)

41 Why should the customer buy from you, and not from any of the alterna>ve suppliers?

42 Related concepts Customer perceived compe\\ve advantage Value proposi\on Compelling reason to buy Unique selling proposi\on/point (USP) Differen\a\on Posi\oning Promise Image Brand

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46 Marke:ng is not a baile of products, it is a baile of percep:ons. Al Ries & Jack Trout The 22 immutable laws of marketing

47 map Importance from a customer perspec>ve High Sweet- spot Intermediate Low Weak Neutral Strong Compe>>ve posi>on

48 Characteris>cs of a strong customer perceived compe>>ve advantage Clear, understandable Important, relevant Believable, plausible Unique, dis\nct Jus\fies the price Difficult to copy, imitate Possible to deliver, live up to

49 The seven domains of opportunites Source: John Mullins, The New Business Road Test, 4 Ed., Pearson, 2013

50 Summary Iden>fy demand (market, segment, customer, buying center, distribu\on) Evaluate demand (agrac\veness, fit) Industry (five forces determining the firm s price making power) Compe\\on = subsitutability Compe>>ve advantage - resource- based - customer- perceived

51 Assignment (due for seminar 5) Prepare year 3 an>cipated income (profit and loss) statement. Revenues (price x volume) - Variable costs = Gross contribu>on (profit) margin - Fixed costs = Profit/loss