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Transcript of BUILD END USER PROFILE. Create a target Customer Profile Develop a well defined end user profile ...
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