Measuring the Unmeasurable, Screening the Unscreenable, Prioritizing New to the World and Disruptive...
-
Upload
productcamp-twin-cities -
Category
Technology
-
view
52 -
download
0
Transcript of Measuring the Unmeasurable, Screening the Unscreenable, Prioritizing New to the World and Disruptive...
POSITIVELY DIFFERENT MARKETING®
MEASURING THE UNMEASURABLE,
SCREENING THE UNSCREENABLE,
PRIORITIZING NEW TO THE WORLD AND
DISRUPTIVE IDEAS AND PROJECTS
OBJECTIVELYM A R K E T I N S I G H T M A R K E T I N N O V A T I O N M A R K E T S T R A T E G Y M A R K E T C O M M U N I C A T I O N S
P O S I T I V E L Y D I F F E R E N T M A R K E T I N G ®
POSITIVELY DIFFERENT MARKETING®
YOU CAN OBJECTIVELY MEASURE,
PRIORITIZE AND KNOCK THE FUZZ
OFF ANYTHING
M A R K E T I N S I G H T M A R K E T I N N O V A T I O N M A R K E T S T R A T E G Y M A R K E T C O M M U N I C A T I O N S
P O S I T I V E L Y D I F F E R E N T M A R K E T I N G ®
POSITIVELY DIFFERENT MARKETING®
3
SCREENING FOR DUMMIES
“sorting the wheat from the chaff”
POSITIVELY DIFFERENT MARKETING®
4
SCREENING FOR DUMMIES
Purpose: To objectively evaluate business opportunities in a timely fashion.
Get rid of the dead wood early; don't waste resources on ideas with poor fit.
POSITIVELY DIFFERENT MARKETING®
5
SCREENING FOR DUMMIES
• Uniqueness: Is the idea original? Is it easily copied by competitors?
• Need fulfillment: Does it meet a customer need?
• Feasibility: Can we develop and launch it?
• Impact: How will our firm be affected?
• Scalability: Can we become more efficient in production?
• Strategic fit: Does it match with corporate strategy and culture?
NEW PRODUCTS MANAGEMENT Merle Crawford, Anthony Di Benedetto 11th Edition Irwin/McGraw-Hill, © 2014
POSITIVELY DIFFERENT MARKETING®
6
SCREENING FOR DUMMIES
• Product or Service Description(Describe your idea, attach drawings, sketches, papers, internet or intranet references to help describe the idea or concept)
• Customer need being met or problem solved:
• Anything similar in any market:
• Existing and potential new competitors:
• Target Customer(s):
• Target Market(s)/Distribution:
• Wow factor! What is the reason to believe or use this product versus the competition or existing product?
DESCRIBE WHAT YOU MEASURE
POSITIVELY DIFFERENT MARKETING®
7
SCREENING FOR DUMMIES
WHAT IS MOST IMPORTANT?
FINANCIALSSTRATEGY
?
POSITIVELY DIFFERENT MARKETING®
8
SCREENING FOR DUMMIES
POSITIVELY DIFFERENT MARKETING®
9
SCREENING FOR DUMMIES
POSITIVELY DIFFERENT MARKETING®
10
SCREENING FOR DUMMIES
Score (1-5)
1. Strategic fit both corporate and portfolio/product
2. Core competence fit (operations, sales, technology, distribution
3. Market fit
4. Customer fit/need
5. Uniqueness
6. ROI
Total - 22 or more to be considered
SIMPLE SCREEN
POSITIVELY DIFFERENT MARKETING®
11
SCREENING FOR DUMMIES
WEIGHTED STRATEGIC SCREEN
Benefit: What’s in it for the customer and us?
Obtainability: Can we get there quickly and inexpensively?
Sustainability: Can we keep it once we’re there?
Objectivity: What happens if we don’t do it?
POSITIVELY DIFFERENT MARKETING®
12
SCREENING FOR DUMMIES
WEIGHTED STRATEGIC SCREEN
Weighted
Rating Weighting Score Benefit: What’s in it for the customer and us?4 12% 0.48 1. Demonstrated need and identified customer
4 10% 0.40 2. Opportunity Size (1 = < 1% Total Sales, 2 = 1-2%, 3 = 2-3%, 4 = 4-5%, 5 = >5%)
4 3% 0.12 3. Market Size (1 = < $10MM, 3 = $30-70MM, 5 = >$100MM)
4 5% 0.20 4. Market growth (1 = < 5%/year, 3 = 7-8%/year, 5 = >10%/year)
5 10% 0.50 5. Payback (1 = < 15% ROI, 3 = 20-25% ROI, 5 = >30% ROI)
40%
POSITIVELY DIFFERENT MARKETING®
13
SCREENING FOR DUMMIES
WEIGHTED STRATEGIC SCREEN
Obtainability: Can we get there quickly and inexpensively? 3 3% 0.09 6. Name/Brand/Image/Customer Fit
5 8% 0.40 7. Operations fit (1 = totally different , 3 = similar + investment, 5 = similar)
5 6% 0.30 8. Technology fit (1 = totally different , 3 = similar + investment, 5 = similar)
4 5% 0.20 9. Distribution fit (1 = totally different , 3 = similar + investment, 5 = similar)
3 3% 0.09 10. Available resources (Existing Internal= 5, New Hire = 3, External Only= 1)
4 10% 0.40 11. Our Competitive strength - Financial, Share, Technology, Manufacturing
35%
POSITIVELY DIFFERENT MARKETING®
14
SCREENING FOR DUMMIES
WEIGHTED STRATEGIC SCREEN
Sustainability: Can we keep it once we’re there?3 8% 0.24 12. Barriers to entry/Legal protection/Uniqueness-secret/Competitive advantage
4 5% 0.20 13. Cost versus competition
3 4% 0.12 14. Differentiation (1 = none, 3 = customer recognized, 5 = Unique product/qual/serv)
3 3% 0.09 15. Customer loyalty
20%
POSITIVELY DIFFERENT MARKETING®
15
SCREENING FOR DUMMIES
WEIGHTED STRATEGIC SCREEN
Objectivity: What happens if we don’t do it?5 5% 0.25 16. Do we understand the full implications of not proceeding with this program?
( 1 = yes, not going forward, 3 = unsure, 5 = Going forward/must do in spite of $)
POSITIVELY DIFFERENT MARKETING®
16
SCREENING FOR DUMMIES
WEIGHTED STRATEGIC SCREEN
Product or Service Opportunity:ORCA BAY Seafood Seasonings and Rubs.ORCA BAY BRANDED seasonings and dry mix marinades add flavor and convenience
Customer need being met or problem solved:Up and coming customer need for organic products.
Wow factor! Reason to believe/use this product versus the competition/existing product?Higher quality, organic.
Market Size: $500,000,000 US Target Market: RetailOpportunity Size: $50,000,000 US Target Customers: Grocery, Mass, Specialty
ROI:Competitors: McCormick
Rate each evaluation criteria 1 to 5 (5 highest confidence – largest opportunity, lowest 1) and then total scores.
Weighted
Rating Weighting Score Benefit: What’s in it for the customer and us?4 12% 0.48 1. Demonstrated need and identified customer
4 10% 0.40 2. Opportunity Size (1 = < 1% Total Sales, 2 = 1-2%, 3 = 2-3%, 4 = 4-5%, 5 = >5%)
4 3% 0.12 3. Market Size (1 = < $10MM, 3 = $30-70MM, 5 = >$100MM)
4 5% 0.20 4. Market growth (1 = < 5%/year, 3 = 7-8%/year, 5 = >10%/year)
5 10% 0.50 5. Payback (1 = < 15% ROI, 3 = 20-25% ROI, 5 = >30% ROI)
40%Obtainability: Can we get there quickly and inexpensively?
3 3% 0.09 6. Name/Brand/Image/Customer Fit
5 8% 0.40 7. Operations fit (1 = totally different , 3 = similar + investment, 5 = similar)
5 6% 0.30 8. Technology fit (1 = totally different , 3 = similar + investment, 5 = similar)
4 5% 0.20 9. Distribution fit (1 = totally different , 3 = similar + investment, 5 = similar)
3 3% 0.09 10. Available resources (Existing Internal= 5, New Hire = 3, External Only= 1)
4 10% 0.40 11. Our Competitive strength - Financial, Share, Technology, Manufacturing
35%Sustainability: Can we keep it once we’re there?
3 8% 0.24 12. Barriers to entry/Legal protection/Uniqueness-secret/Competitive advantage
4 5% 0.20 13. Cost versus competition
3 4% 0.12 14. Differentiation (1 = none, 3 = customer recognized, 5 = Unique product/qual/serv)
3 3% 0.09 15. Customer loyalty
20%Objectivity: What happens if we don’t do it?
5 5% 0.25 16. Do we understand the full implications of not proceeding with this program?
( 1 = yes, not going forward, 3 = unsure, 5 = Going forward/must do in spite of $)
100% 65.28 Total Weighted Score for all 16 questions ( 64 or greater is a solid opportunity )
Required Timing/Ship Date: ______________________
Investment ($):
Resource Assessment (People, Time and Dollars):
NEW PRODUCT DEVELOPMENT SCREENTM
SCREEN
POSITIVELY DIFFERENT MARKETING®
17
SCREENING FOR DUMMIES
SCREENING PROVIDES THE BASIS FOR PROJECT PRIORITIZATION
POSITIVELY DIFFERENT MARKETING®
18
SCREENING FOR DUMMIES
PRIORITIZATION FACTORS
POSITIVELY DIFFERENT MARKETING®
19
SCREENING FOR DUMMIES
PRIORITIZATION FACTORS
1. BALANCE: SHORT, MID AND LONG TERM
PROJECTS
2. BALANCE: RESOURCE UTILIZATION
3. OBJECTIVITY AND MARKET RESEARCH
4. WILLINGNESS TO STOP/DROP
POSITIVELY DIFFERENT MARKETING®
20
SCREENING FOR DUMMIES
PORTFOLIO SCREEN
POSITIVELY DIFFERENT MARKETING®
21
SCREENING FOR DUMMIES
PORTFOLIO SCREEN
New Product Development Screen - Competitive Business Opportunity Weighting
Business Attractiveness SCORE
Score 10 Score 5 Score 1 Weight LOW HIGH
Mission, Vision, Value Fit High Moderate Low 0.10 10.00 10.00
Technology Compatibility High Moderate Low 0.05 5.00 10.00
Manufacturing/Service compatibility High Moderate Low 0.05 5.00 10.00
Barriers to Entry High Moderate Low 0.10 5.00 10.00
Distribution Fit Excellent Par Poor 0.05 5.00 5.00
Business Growth Rate (%/Yr.) > 12% 5 to 12% < 5% 0.10 5.00 5.00
Distribution Network Type 1
Selective Ordinary Wide 0.10 10.00 5.00
Price Stability Good Par Poor 0.05 5.00 10.00
Customer Concentration 2 >20/80 10-20/80 <10/80 0.05 5.00 5.00
Vertical Integration Common 3 Low Moderate High 0.05 5.00 5.00
Competitive Financial Condition Poor Par Good 0.10 5.00 5.00
Industry Structure Fragmented Several < than 4 0.05 5.00 5.00
Product Life Cycle Embryonic Growth Mat/Aging 0.05 5.00 10.00
Size of Market $1BIL $.1-1BIL <$100MM 0.10 5.00 10.00
Business Attractiveness SCORE 6.00 7.50
POSITIVELY DIFFERENT MARKETING®
22
SCREENING FOR DUMMIES
PORTFOLIO SCREEN
Competitive Strength SCORE
Compare to competition where appropriate Score 10 Score 5 Score 1 Weight LOW HIGH
Comp. Business Growth Rate (%/Yr.) > 10% 5 to 10% < 5% 0.15 10.00 10.00
Relative Market Share 4
> 2 1 to 2 < 1 0.20 1.00 5.00
Your Quality Level Higher Same Lower 0.10 5.00 10.00
Your Reputation/Image Higher Same Lower 0.10 5.00 10.00
Your Customers' Loyalty Strong Par Poor 0.10 5.00 10.00
Your Financial Strength Stronger Same Weaker 0.10 5.00 10.00
Your Costs vs. Competition Lower Same Higher 0.10 5.00 5.00
Your Product Differentiation Greater Same Smaller 0.10 10.00 10.00
Your Advertising/Promo Ability Stronger Par Weaker 0.05 5.00 10.00
Competitive Strength SCORE 5.45 8.50
Specific Information:Market Size:
Market Growth:
Key Competitors:
POSITIVELY DIFFERENT MARKETING®
23
SCREENING FOR DUMMIES
PORTFOLIO SCREEN
Screening Criteria Business Opportunity Weighting
Low High
1. Business Attractiveness and Fit with Mission and Vision (1-10) 6 7.50a. Target Market Size $120,000BB (Scale 1-10)
b. Target Market Competitors
c. Target Market Growth 250-300%d. Target Market Profitability 78-86%GM
2. Competitive Strength (1-10) 5.45 8.50a. Ability to differentiate and bring added value (Scale 1-10)
b. Ability to create barriers
3. Economic Criteria Low High
A. Sales $(year three) Sales($) $890MM $1.4BB
B. Total Investment $ $234MM $320MMCapital EngrgMarketing OperationsSales ________
C. Human Resources (Investment $'s included above)Available/Attainable (1-10) 5.00 10.00Existing Available Internal= 10, New Hire = 5, External Only= 1
D. Profit potential • $(year three) $ $328MM $608MM • ROI % 28.0% 32.0%
Issues and Timing
Date: ____________ Evaluator: ____________________________
POSITIVELY DIFFERENT MARKETING®
24
MAKING SENSE OF THE UNKNOWN
Everything can be measured, it is just a matter of
combining research, adaption and adoption theory,
scenario analysis and “uncommon” sense to
measure, screen and prioritize ideas and projects
from the simple, to complex, to “new to the world”
projects.
POSITIVELY DIFFERENT MARKETING®
25
VOC TACTICS FOR THE UNKNOWN
New to the WorldTACTIC: Market Research acceptance and substitution for what they do now, Adaptation Analysis, Trend Time Lines, Observational, Delphi
New to CompanyTACTIC: Market Research Brand Acceptance, and product/service acceptance, Channel issues
New MarketTACTIC: Market Research Brand Acceptance, and product/service acceptance, Channel issues
New Application, Line Extension, Line EnhancementTACTIC: Market Research Acceptance
POSITIVELY DIFFERENT MARKETING®
26
MAKING SENSE OF THE UNKNOWN
1984 – 2014
From Motorola to
Apple
POSITIVELY DIFFERENT MARKETING®
27
ADAPTATION ANALYSIS
Customer Adoption Time Lines
Graphically Show Adoption Rate based Life Cycles and Substitution assumptions
TIME
VO
LU
ME
SH
AR
E
New Volume Existing Volume
New SOM Existing SOM
Repurchase Cycles
POSITIVELY DIFFERENT MARKETING®
28
TREND TIME LINES
Time in Years
Present
Low
High
3 5 7
Perf
orm
ance
1
5
10
Technology announcement
9Past Future12357912
Co
st p
er
watt
hour
Low
High
1
5
10Offered for sale
Shipped
First significant improvement (cost/performance)
Lithium Anode Battery Technology
POSITIVELY DIFFERENT MARKETING®
29
LIFE CYCLE AND REPURCHASE
TIME
VO
LU
ME
Repurchase/ Cycles
Repurchase/ Cycles
POSITIVELY DIFFERENT MARKETING®
30
DELPHI METHOD
The Delphi method is a structured communication
technique or method, originally developed as a
systematic, interactive forecasting method which
relies on a panel of experts. The experts answer
questionnaires in two or more rounds.
POSITIVELY DIFFERENT MARKETING®
31
MAKING SENSE OF THE UNKNOWN
Everything can be measured, it is just a matter of
combining research, adaption and adoption theory,
scenario analysis and “uncommon” sense to
measure, screen and prioritize ideas and projects
from the simple, to complex, to “new to the world”
projects.
POSITIVELY DIFFERENT MARKETING®
FOR 23 YEARS AXIOM HAS BEEN AN
AWARD WINNING MARKETING FIRM
THAT USES INSIGHTS,
INNOVATIONS AND CONTENT
TO GROW YOUR BUSINESS.
WHAT IS AXIOM ?
Charlottesville - Charlotte - Cedar Rapids - Orange County - Minneapolis
POSITIVELY DIFFERENT MARKETING®
MARKET
INSIGHT
MARKET
INNOVATION
MARKET
COMMUNICATIONS
CHANNEL
STRATEGY
AXIOM EXPERTISE
POSITIVELY DIFFERENT MARKETING®
AXIOM IS A DIVERSE BAND OFMARKETEERS, INVENTORS, CRAFTSPEOPLE, PATHFINDERS,
ENGINEERS, ENTREPRENEURS, SCIENTISTS, AND PROVOCATEURS.
WE BELIEVE VOICE OF THE CUSTOMER IS THE KEY TO ALL
TRANSFORMATIVE BUSINESS RESULTS
WE EXCEL IN SEEKING THE TRUTH
AS TOLD BY THE CUSTOMER
WE PURSUE SUCCESS THROUGH
VOICE OF THE CUSTOMER
POSITIVELY DIFFERENT MARKETING®
RETAIL
CONSUMER
BUILDING &
CONSTRUCTION
MEDICAL &
HEALTHCARE
AGRICULTURE &
HORTICULTURE
EDUCATION
SAMPLING OF AXIOM INDUSTRIES
POSITIVELY DIFFERENT MARKETING®
36
FOR MORE INFORMATION
We believe that the SOQ is an important tool that
helps to improve organizations.
Axiom.
3800 American Blvd West
Suite 1130
Bloomington, MN 55431 - USA
Phone: (612) 861-6171
E-mail: [email protected]