BUILD END USER PROFILE

Create a target Customer Profile

Develop a well defined end user profile

Describes the market segment you have chosen to attack

Can include important demographic information that will help you develop the market sizing calculation in the next step

Target Customer Profile Example

Gender Male, female

Age 17-40 y.o.

Region Cambridge MA (during initial growth stage)

OccupationStudent, young professional, internal migrant,

middle management

Social level Medium, high

Characteristics Has a smartphone,

User category Early adapters, technologically advanced

OtherActive users of social networks, outgoing

personalities

Customer profile

Customer Profile Creation

Take 30 minutes to determine your end user profile

Use the sample table for guidance

DETERMINE MARKET SIZE

Determine the Market Size

• Based on the customer profile and the market segment determine the total market size

• This is called the Total Addressable Market (TAM) – i.e. this is the maximum number of customers or dollars your product can acquire

• TAM is a key factor of a business plan

Market Sizing Example #1

Women in the US

157 M

Pregnant Annually

6 M

First Time Moms

2 M

Photo: visualphotos.com

Share via social media

Technology Savvy

Want convenience

Connect with family and friends

Extend her excitement

Share monthly pregnancy photos IntuitiveComfortable to wear

Update her care network

Use mobile “apps” to track health

Indications

Low maintenance

Real-time feedback

Easy to use

In the US, there are 2 Million women like Michelle

Connecting mommies with their babies

inTouch

Market Sizing Example #2

6.3 million mothers 4 consultations per yearx $7.99 per consultation .

= $201 million/year

LIVEDOC reassurance when you want it

US Population(300 million)

Sick or Dependent

is Sick

Internet User

Mothers (2+ kids)

College

Educated

Income$45-$120k

6.3 million mothers

Market Sizing Activity

Calculate the market size based on the customers who will buy your product. Follow the logic from the previous slides

PRICING MODELS

Possible Pricing Schemes

Free Subscription Flat price for everyone

How do you determine the flat price? $0.99 – 14.99 “Freemium”

Free for basic version Charge to unlock other capabilities or to get

another version

Pricing Activity

Determine the potential pricing model for your venture

COMPETITION

What is the competition?

Things to consider: What else is out there that could

potentially take market share away from you?

How is your product different? Functionality Quality Price

Competition exercise

Determine who your competition is

ADVERTISING & PROMOTION

How do you reach your customers or get more customers?

Advertising Schemes

Traditional: Posters Billboards Newspaper Ads TV/Radio Ads

Nontraditional: Mobile advertisements Printing on sides of cars Offering promotions Social media

Promotional Schemes

Earn a reward for the first time you use the service.

Earn a reward for every recommended friend who also uses the service.

Free trial (one week - one year free) Random draw reward for downloading

the service. These are only a few examples.

Advertising and promotion exercise

How will you advertise and promote your product?

NEW VENTURE PITCH

Example pitches

https://www.youtube.com/watch?v=r_Dgsf4iiZg

https://www.youtube.com/watch?v=dqIEE-g_-Uc

https://www.youtube.com/watch?v=2sE5UXVIkz0

What are the common themes between all these

pitches?

Flow of information – doesn’t have to be in this exact order

Hi, I’m _____ from _____The problem we’re solving is…Our solution is…This is a big opportunity because…Our target customer is…We will get customers by…We make money by…Our key competition is…We’re better because…Our team is ____ and we will succeed because ____.What we’ll do next is…Currently, we are seeking…To summarize…Thanks

From Pollenizer

Pitch exercise

Develop a 1-2 minute business pitch, practice and present to the class