INTRODUCTION TO

ENTREPRENEURSHIP

Entrepreneurship – Lesson 1

Before Introduction to

Entrepreneurship

Glossary

Key Terms to know before starting to learn what is

“Entrepreneurship”

Glossary

Profit- Anything earned after deducting the

cost.

Reward- Anything that leads to the increase in

the level of motivation. It can be monetary or

non-monetary.

Viable- Something that is

possible/workable/feasible/practical.

Persistence- The fact of continuing in an

opinion or course of action in spite of difficulty

or opposition.

Glossary

Persuasion- To influence or convince

someone about something.

Capital- The money used to start or run a

business.

Collateral Arrangement- Assets provided to

secure an obligation for loans/financing.

Climate- Conditions and environment for

doing something.

Glossary

Industry- Companies based on similar production processes, similar products, or similar behavior.

Livestock- Domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor.

Infrastructure- Refers to the basic physical and organizational structures needed for the operation of a society or enterprise.

Niche - It is the subset of the market on which a specific product is focused/ A comfortable or suitable position in a market.

Glossary

Prospecting- It is the first stage of the territory/customer analysis to find out potential/chances in a market.

Catalogue- A complete list/set of products/items, with pictures and other details, typically one in alphabetical or other systematic order.

Feasibility- The state or degree of being easily or conveniently done.

Title- A name that describes someone's position or job or ownership of something.

Glossary

Projection- An estimate or forecast of a future

situation based on a study of present trends.

Market- A regular gathering of buyer and seller

for the purchase and sale of something.

Segments- Each of the parts into which

something is or may be divided.

Glossary

Do you have any more?

Entrepreneurship – What does it

require?

‘3 in 4 FMCG launches fail within a year’

Tue, 9 Sep 2014 | By Lara O'Reilly -http://www.marketingweek.co.uk/

Foster’s Gold was identified by Nielsen as one of the breakthrough innovation successes of the 12,000 FMCG product launches since 2011 it analyzed.

‘3 in 4 FMCG launches fail within a

year’

More than three in four (76 per cent) new FMCG product launches fail in their first year, according to an analysis by Nielsen, but researchers there have identified four principles common to the few brands deemed “breakthrough innovation successes”.

The Nielsen Breakthrough Innovation Report, based on an analysis of 61,000 SKUs representing more than 12,000 new launches across Europe since 2011, found two thirds of products never even achieve 10,000 unit sales, meaning the majority fail to retain a retail listing beyond their first year.

‘3 in 4 FMCG launches fail within a

year’

But Nielsen says marketers can overturn historically high failure rates by changing their approach to new product development and building a passionate culture around innovation.

Johan Sjöstrand, Managing Director of Nielsen’s innovation practice in Europe, and co-author of the report, says: “Through the study process, we found proof that innovation success is never just a remarkable coincidence.

It’s about deliberate attempts to disrupt all aspects of the innovation process and challenge everyday norms, such as consumer attitudes, long-standing beliefs, launch mechanics, organisationalbehaviour and disciplines.”

‘3 in 4 FMCG launches fail within a

year’

The study has identified four components

common to the success of new product launches.

The authors of the report say the absence of any

one of these principles will “severely limit” the

possibility of success:

The four rules for breakthrough new product

innovation success

Choice

Process

Marketing

Togetherness

‘3 in 4 FMCG launches fail within a

year’

Choice: get the right innovation – make the right choice of innovation to pursue by walking in the shoes of the consumer to uncover key demand-driven insights. Ask questions like, why don’t people use a category? What causes them stress, confusion, inconvenience or compromise?

Process: get the innovation right – have the right organisational framework and processes to shape the chosen innovation into a market-ready offer that has relevance, differentiation and superiority; organisational culture must also allow weak innovation ideas to be filtered out before launch.

‘3 in 4 FMCG launches fail within a

year’

Marketing: get the activation strategy right –

creative marketing has to be original and has

to tell the story of the innovation.

Togetherness: get everyone right behind you

– breakthrough success is the product of

organisational togetherness, from top to

bottom.

‘3 in 4 FMCG launches fail within a

year’

Of the 12,000 products analysed, just seven

met Nielsen’s testing criteria for “breakthrough

innovation success”.

Each product had to have generated a

minimum of £10m in first year sales,

maintained at least 85 per cent of those sales

in the second year and had to be deemed

distinctive in the category by the researchers.

‘3 in 4 FMCG launches fail within a

year’

The seven “European Breakthrough

Innovation Winners” for 2014 are:

Foster’s Gold,

Magnum Infinity,

Milka Choco Supreme,

Mullerlight Greek-style Yoghurt,

Lucozade Energy Pink Lemonade,

Oral-B Pro-Expert All-Around Protection and

Sodebo Salade et Compagnie.

‘3 in 4 FMCG launches fail within a

year’

In addition, Nielsen also identified three further launches likely to be winners next year:

Lay’s Xtra,

Cadbury Dairy Milk Marvellous Creations and

Ariel 3-in-1 Pods.

Sjöstrand says: “Nothing in our analysis suggests innovation success is out of the reach of any marketer - regardless of whether the brand is large or small, local or multi-national, even if the category is in decline.”