How to Assess Growth Options
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© Canvassco 2013. How To Assess Growth Options For Your Business do it yourself guide !!!
description
Canvassco has put together ideas and business frameworks showing how to assess growth options for your business.
It adds up to an effective but simple assessment using five factors - market potential, market share, strength of value propositions, customer loyalty and potential of untapped market - to determine a “get, keep, grow and Innovation" strategy.
We give you a snapshot of powerful frameworks, "the market-fit test", created by the author of Business Model Generation and "the value proposition assessment", to build, test and analyse business ideas and concepts as part of the innovation process.
Transcript of How to Assess Growth Options
© Canvassco 2013.
How To Assess Growth Options For Your Business
do it yourself guide !!!
© Canvassco 2013.
In our day-to-day work with clients …
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... we see a pattern
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Today ...
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... the business world is evolving faster than ever before
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Emerging & Frontier Markets6
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The ASEAN Economic Community7
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Regional Free Trade Agreements8
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Competition creates Opportunity!
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Australia China US EU 27 Japan
THAILAND IMPORTS from selected trading partners
Source MINISTRY OF COMMERCE, THAILAND
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Customers are looking for innovative solutions ...10
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... but they’re still cost-conscious!11
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It’s not easy to keep growing ...
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... even if you have successfully done this in the past
201220112010200920082007
Annual sales
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You know ‘Innovation’ is the key …14
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… but you’re fully engaged with day-to-day operations ...
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... and office politics
Boss
Your sales budget is 3x
over last year. Period.
Big Boss
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So how can you innovate, and re-energize your business ...
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... with limited time and resources?
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We will show you ...
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... a simple strategic framework ...
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... to help you assess growth options
Change is what we need!
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But first you need to collect certain information
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5 factors
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1. market penetrationCustomers who purchase products within the category (#) / Total population (#)
%
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2. untapped market PotentialDemand that existing products or brands do not yet meet
?
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3. your market shareYour sales revenue / Total market size
%
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4. Customer loyalty• Customer retention • Repeat business • Referrals from customers
I love you
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5. Strength of Value PropositionsIt’s the reason why customers turn to your company rather than competitors
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Don’t worry if you can’t put numbers on
these five things
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We just need a high-level assessment ...
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High or low?
Market Penetration Market Share
Strength of Value
PropositionsCustomer Loyalty
Untapped Market Potential
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A quick consultation with your sales teamwill get the work done
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So now let’s put it all together ...
Market penetration
Market ShareCustomer Loyalty
Untapped Market Potential
Strength of Value Propositions
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… in a simple strategic flowchart
StartHighLow
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GROW Strategy
Market Penetration
Market Share
Customer Loyalty
KEEP Strategy
GET Strategy
Untapped Market Potential
Strength of Value Proposition
INNOVATIONStrategy
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GROW StrategyHighLow
Encourage current
customers to spend more
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GROW Strategy
Market Penetration
Market Share
Customer Loyalty
KEEP Strategy
GET Strategy
Untapped Market Potential
Strength of Value Proposition
INNOVATIONStrategy
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KEEP StrategyHighLow
Retain current customers
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GROW Strategy
Market Penetration
Market Share
Customer Loyalty
KEEP Strategy
GET Strategy
Strength of Value Proposition
Untapped Market Potential
INNOVATIONStrategy
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GET StrategyHighLow
Acquire new customers
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GROW Strategy
Market Penetration
Market Share
Customer Loyalty
KEEP Strategy
GET Strategy
Strength of Value Proposition
Untapped Market Potential
INNOVATIONStrategy
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INNOVATION StrategyHighLow
Create new value
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GROW Strategy
Market Penetration
Market Share
Customer Loyalty
KEEP Strategy
GET Strategy
Strength of Value Proposition
Untapped Market Potential
INNOVATIONStrategy
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So now let’s take a look at the four strategies in detail
GROW Strategy
KEEP Strategy
GET Strategy
1 2 3
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INNOVATION Strategy
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GET CUSTOMERS Awareness, interest, consideration and purchase strategies1 Market
PenetrationMarket
shareStrength of
Value PropositionGET
Strategy
HighLow
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Here, your new market has high potential ...
2014 2015 2016 2017 2018 2019
Estimated Market Size and Growth
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… but you still have a low market share
Less
than 5%
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Your value propositions are strong
...and I like it
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I bought the products...
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GET Customer Strategy
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Awareness
Consideration
Purchase
Typical Activities
Branding & Advertising
Content Creation
Traffic Generation
Engagement
Lead Generation
Purchase Decision
Conversion
Think about...
Message &
Media Channels
Why we are better than competitors?
Contract, Pricing & Negotiation
So you can accelerate your business through a sales & marketing funnel ...
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... by using various media channels
Website
Owned MediaPaid Media
“Channel in control” “pay to use
the channel”
Earned Media“customers become the channel”
Media Agency
Wow! Buzz
viral
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Website
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Keep customers Interact and retain strategies2 Market
PenetrationMarket Share
Customer Loyalty
KEEP Strategy
HighLow
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Here, your market has reached maturity …
DevelopedIntro
Growth
MaturityDecline
Time
Sales
Product Life Cycle
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… and you are the key player in the market48
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But you are losing customers !
EXIT
ENTRANCE
What?
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So you can create after sales support programs to retain customers
Loyalty Program Customer Lock-In/
Customer Surveys Customer Check-in Calls
CLUB
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GROW customer budgetsNew revenue strategy3 Market
PenetrationMarket
shareCustomer Loyalty
GROW Strategy
HighLow
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Here, you are already the market leader …
Yeah...
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… with a strong customer base
Thank you
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But new customers are hard to find
Users Non-Users
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You can only grow if existing customers increase their spend
Cross-Selling Program
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Up-Selling Program
Next-Selling Program Unbundling
+Purchase contract 2013 - 2017
Buy Now, 20% off
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Strength of Value Proposition
INNOVATION STRATEGYCreate new value to target customers4 INNOVATION
Strategy
HighLow
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Here, you may have a product but it is not what customer wants or needs
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??
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Or, you are losing competitiveness ...
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Or, you just want to keep your advantage to stay ahead of the game
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Whatever it is ...
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... you need a new growth engine
oh...
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Here are some growth options for you to think about
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Option 1 : A new product in a new market
Google Glass
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Option 2 : An existing product in a new market
Let’s go
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Option 3 : Re-segment your market & go ‘blue ocean’
Now Eve r yone Can F l yAIRBUS
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Option 4: Cannibalize your own business model
Adobe Creative Cloud
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Once you have found your new growth engine ...
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... and you have a strong value proposition ...
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... you can execute your growth strategy
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You can start by ...
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Source: www.businessmodelgeneration.com
ExpectedGains
PainPoints
Customer jobs
Gain creators
Pain relievers
Product &Services
... applying a Market Fit Test71
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This framework helps you build stuff that customers really want in a more systematic way
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Source: http://businessmodelalchemist.com
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Start by thinking what your target customers are trying to get done
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Customer jobs
Source: http://businessmodelalchemist.com
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What are your customer pain points?
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PainPoints
Customer jobs
Source: http://businessmodelalchemist.com
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What are the benefits your customer expects, desires or would be pleasantly surprised by?
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ExpectedGains
PainPoints
Customer jobs
Source: http://businessmodelalchemist.com
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Ask yourself which products and services you offer that help your customer get the job done
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ExpectedGains
PainPoints
Customer jobs
Product &Services
Source: http://businessmodelalchemist.com
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How do your products or services relieve customer pain?
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ExpectedGains
PainPoints
Customer jobs
Pain relievers
Product &Services
Source: http://businessmodelalchemist.com
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Finally, think of how your products or services create customer gain
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ExpectedGains
PainPoints
Customer jobs
Gain creators
Pain relievers
Product &Services
Source: http://businessmodelalchemist.com
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Once a breakthrough idea has been identified …
We’ve
found it!!!
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... build product mock-ups or service concepts ...
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Product!Features
Important
features
only!!!
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... and test the concept by talking to your customers
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You can apply the Value Proposition Assessment
framework
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The goal is to build, test and analyze product, sales and marketing concepts ...
Build
TestAnalyze
baselineConcepts/Ideas
with customersGo/No-Go
Measure
no-go
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... before you start burning cash with sales and marketing activities !!!
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Once you’ve found the right concept, you can accelerate your sales by using the GET strategy
Build
Testanalyze
baselineConcepts/Ideas
with customersGo/No-go
Measure & Analyze
No-Go
validated concepts/ideas
Customer Development“Get Strategy”
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The ideas presented here are not new ...
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... or revolutionary ...
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... or even particularly surprising
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But they are undervalued in almost every company we know !!!
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You know it well and can do it yourself
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Doing as much as possible in-house makes sense ...
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... so why do you need canvassco?
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Shortage of staff1 We work as an extension to your team
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Fresh perspective2 We go out of the building on fact-finding missions
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Business concept practitioners3 We use a systematic approach and tested methodology
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We are different from a typical consulting or market research firm
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We make market research affordableWe focus on things that matter to your business
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We focus on a “less is more” philosophyOur standardized report format covers all the key issues you need to know
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we are ‘transparent’We state our deliverables, our price and our methodology upfront.
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And one last thing...
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we focus on delivering concrete results to accelerate growth and achieve
sustainable success for our clients !!!
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www.canvassco.com
contact us
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Address | Canvassco (Thailand)Mahatun Plaza, 14th Floor888/143, Ploenchit Road, Bangkok 10330, Thailand
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