MARKET SEGMENTATION AND ENGAGEMENT

MARKET SEGMENTATION• Multiple mechanisms

– Physical (scale, location, enterprise mix, etc)– Demographic (age, gender, family status, etc)– Behavioural (collaborative / individual, passive / active, etc)– Skills / capability level– Motivational (speed, price, innovation, profit, etc)

• Multiple considerations– Value-adding potential in each segment– Relative “importance” of each segment (financial / non-financial) – Capacity and pain:gain ratio in collating associated information– Tying into the / a “product development” pipeline

PRODUCER SEGMENTATION AND ENGAGEMENT

Innovators(2.5%)

EarlyAdopters(13.5%)

Early Majority(34%)

Late Majority(34%) Late /

non-adopters (16%)

DECREASING SPEED AND/OR LEVEL OF INNOVATION / INNOVATIVE CAPACITY

LEAD USERMARKET

MAJORITY MARKET LATE / NON-ADOPTER MARKET

PRODUCER SEGMENTATION AND ENGAGEMENT

Innovators(2.5%)

EarlyAdopters(13.5%)

Early Majority(34%)

Late Majority(34%) Late /

non-adopters (16%)

= ACTIVE ENGAGEMENT = PASSIVE ENGAGEMENT

LEAD USER PROGRAM

FOCUS: GENERATION AND VALIDATION OF NEW

INNOVATIONS

MAJORITY MARKET PROGRAMS(MBfP, MMfS, GIG, etc)

FOCUS: DEMONSTRATION, COMMERCIALISATION AND ADOPTION OF VALIDATED RESEARCH

LOW / MINIMALENGAGEMENT

FOCUS: GENERAL COMMUNICATIONS

“MAJORITY MARKET” PROGRAMS

• Principles format – sector messages, local customisation• Co-investment and integrated delivery• Resources proportional to herd / flock distribution • Producer Advocate network• Awareness, KASA and practice change activities• M&E framework

SECTOR NAME STATE OF DEVELOPMENTSOUTHERN BEEF More Beef from Pastures SHEEPMEAT Making More from Sheep GOATS Going into Goats NORTHERN BEEF FutureBEEF (TBC)

SERVICING THE MARKET • Consultative mechanism for collating RD&E

needs / ideas / issues• Communication & research adoption

framework – Events, field days, workshops– Communication tools and systems (newsletters,

web resources, – Validation / demonstration activities and network– Monitoring and evaluation

• Supporting resources ($, CRM, Key Account Managers, etc)

• Needs a value proposition for producers to be involved• Must recognise confidentiality and commercial interests• Is NOT related to enterprise scale

– “large producer” activities would straddle lead user and major market• Key account management via agribusiness• “Executive Link” / peer group liaison

• Will require an effective consultation network / process– Face-to-face or electronic meetings? How frequently?– Subject-specific or “generic” innovation

• Needs to ensure it doesn’t attract an “exclusive” tag• Likely to be a unique MLA initiative

– Minimal scope or mandate for DPI interest (not under NRDES) • Will require budget and internal resources to manage – origin and who?

“LEAD USER” ENGAGEMENT

THE RD&E PIPELINE

STRATEGIC BASICRESEARCH

APPLIED RESEARCH DEVELOPMENT EXTENSION

PROOF-OF-CONCEPT“BLUE SKY” CONCEPT TOMARKET READY

DELIVERY TO (TARGET) MARKET

R&D HORIZON

HORIZON 1(> 5 YEARS)

HORIZON 2(2-5 YEARS)

HORIZON 1(<2 YEARS)

RESEA

RC

H A

DO

PTION

WHO’S RESPONSIBLE FOR WHAT?

COMMUNICATION & EVALUATION

SOUTHERN PRODUCTIVITY & QUALITY

NORTHERN PRODUCTIVITY & QUALITY

STRA

TEGIC

SCIEN

CE

NRM AH&W

STRATEGIC BASICRESEARCH

APPLIED RESEARCH DEVELOPMENT EXTENSION

RESEA

RC

H A

DO

PTION

WHO’S RESPONSIBLE FOR WHAT?

COMMUNICATION & EVALUATION

SOUTHERN PRODUCTIVITY & QUALITY

NORTHERN PRODUCTIVITY & QUALITY

STRA

TEGIC

SCIEN

CE

NRM AH&W

STRATEGIC BASICRESEARCH

APPLIED RESEARCH DEVELOPMENT EXTENSION

LEAD USERPROGRAM

MAJORITYMARKET

PROGRAM

STRATEGIC BASICRESEARCH PHASE

APPLIED RESEARCH PHASE

DEVELOPMENTPHASE

EXTENSIONPHASE

RESULT IF SUCCESSFUL KNOWLEDGE PLATFORM PROOF-OF-CONCEPT MARKET READY PRODUCT AWARENESS/SKILLS/ADOPTION

TIME HORIZON > 5 YEARS 2 – 5 YEARS < 2 YEARS 3+ YEARS

CATEGORY OUTPUT OUTPUT OUTPUT OUTCOME

EX-AN

TE EVALU

ATIO

N

(BEFO

RE EA

CH

PHA

SE)

QU

AN

TITATIVE

NPV / IRR / BCR N/A

QU

ALITA

TIVE

RER

MARKET ANALYSIS

RESEARCHER ANALYSIS

EX-POST EVA

LUA

TION

(A

FTER EA

CH

PHA

SE)

QU

AN

TITATIVE

FOCUS • System impacts• Enterprise / business

changes

• Enterprise, business and industry impacts

• Supply-demand impact

• Enterprise / business impacts of adopters versus industry average

• Management practices• Knowledge, skills and confidence

METHOD • Modelling• Case studies and/or

Producer Validation Sites

• Frontier analysis • Farm-level and DREAM

modelling

• Pre / post analysis in category B & C participants (including Producer Demonstration Sites)

QU

ALITA

TIVE

FOCUS• Researcher peer review• Production of knowledge /

papers

• Researcher and/or lead user peer review

• Definition of target market and size

• Beta testing

• Target user KSC and practice change levels

• Producer and provider satisfaction levels

METHOD• Researcher / research

organisation surveys / interviews

• Researcher / research organisation / lead user surveys / interviews

• Market research surveys

with “lead users” and advisors

• Target market surveys• Participant and non-participant

comparisons

3.1 – 3.4 – 4.1 – 4.2 – 4.3 5.1 – 5.3STRATEGIC PLAN NODES

CONSIDERATIONS• Objectives:

– Stakeholder satisfaction: targeted, timely, relevant engagement– Internal processes: more efficient…

• Generation of research ideas• Evaluation of investment value• Completion and validation of R&D• Extension to target market(s)

• Cultural change and systems (CRM, KM) will be required • Two-tiered approach

– RD&E pipeline / program development strategy– Stakeholder segmentation and target engagement

• This should help not hinder our RD&E pipeline efforts– Better delineation of roles, responsibilities and accountabilities according

to skill sets– Better definition of target markets

END