New Market Creation
description
Transcript of New Market Creation
New Market Creation
How to win in new markets using jobs-to-be-done thinking
Jobs-To-Be-Done Theory
People buy products and services to get jobs done
People want to get the whole job done ...
... on a single platform
Will pay more ... to get the job done better
Insight into a high-profit, market entry strategy
Define thejob-to-be-done
Discover segment
Get the whole job done
Define thejob-to-be-done
What job are people hiring my product for?
Adjust the temperature
That’s what the product does, but ...
What job are people trying to get done?
Product-centric Customer-centric
What job are people hiring my
product for?
What job is the customer trying
to get done?
Adjust the temperature
Achieve personal comfort
Control a process
Optimize process output
Kill weeds
Grow a crop
Define the job from the customer’s perspective
The entire job, not just part of it
Define thejob-to-be-done
Discover segment
Get the whole job done
Pay more to get the job done better
Over served
Under served
Satis
fact
ion
Importance
Does this segment exist in your market?
Segmentation
Traditional Segments
Vertical SizeGeography
Satis
fact
ion
Importance
Over served
Under served
Not Vertical
Satis
fact
ion
Importance
Over served
Under served
Not Geography
Satis
fact
ion
Importance
Over served
Under served
Not Size
Wrong Units
Convenient classifications do not explain differences
Must segment around unmet needs
Outcome-based segmentation
Broad MarketSa
tisfa
ction
Importance
Over served
Under served
Factor and cluster analysis: unmet needs
Satis
fact
ion
Importance
Over served
Under served
Market Segments
People will pay more to get the job done better
Willi
ngne
ss to
Pay
Low
High
No. of Job ExecutorsLow High
Willi
ngne
ss to
Pay
Low
High
No. of Job ExecutorsLow High
Need Curve™
Currently paying to get job done
Size of market
Willi
ngne
ss to
Pay
Low
High
Low High
Need Curve™
Increased Satisfaction
Premium market
No. of Job Executors
People will only pay more for significant improvement
Willi
ngne
ss to
Pay
Low
High
Customer SatisfactionLow High
Success = Know All Unmet Needs
Define thejob-to-be-done
Discover segment
Get the whole job done
Get the whole job done
Products rarely get the whole job done
Get more of the job done
Get it done significantly better
Win a disproportionate share of profits
Starve the competition of capital
Raise the barrier to entry
Adjust environment
Monitor conditions
Make modifications
Return room to original condition
Define comfort
Assess the room’s
comfort level
Determine what
variables to adjust
Determine what
adjustments to make
Achieve personal comfort
Adjust environment
Monitor conditions
Make modifications
Return room to original condition
Define comfort
Assess the room’s
comfort level
Determine what
variables to adjust
Determine what
adjustments to make
Thermostat
Adjust environment
Monitor conditions
Make modifications
Return room to original condition
Define comfort
Assess the room’s
comfort level
Determine what
variables to adjust
Determine what
adjustments to make
Nest
7 times the price
5%market share
5%market share
20%profit share
Remove dirt from carpet
Monitor dirt removal
Adjust dirt removal plan
Dispose of dirt
Determine condition of
carpet
Assess best method to remove dirt
Gather needed supplies
Set up for dirt removal
Remove dirt from carpets
Remove dirt from carpet
Monitor dirt removal
Adjust dirt removal plan
Dispose of dirt
Determine condition of
carpet
Assess best method to remove dirt
Gather needed supplies
Set up for dirt removal
Traditional vacuum
Remove dirt from carpet
Monitor dirt removal
Adjust dirt removal plan
Dispose of dirt
Determine condition of
carpet
Assess best method to remove dirt
Gather needed supplies
Set up for dirt removal
Dyson
5 times the price
24%market share
24%market share
59%profit share
Dozens of jobs done
Thousands of jobs done
5 times the price
21%market share
21%market share
72%profit share
Let’s reinvent the TV
What job are customers trying to get done?
Watch TV
Get jobs done by viewing content
View contentMonitor the
viewing experience
Modify content
selection
Assess experience
Determine what jobs the viewer wants to get done
Determine what content will get the
job done best
Organize the content for
viewing
Confirm viewing plan
Get jobs done
View contentMonitor the
viewing experience
Modify content
selection
Assess experience
Determine what jobs the viewer wants to get done
Determine what content will get the
job done best
Organize the content for
viewing
Confirm viewing plan
Traditional TV
View contentMonitor the
viewing experience
Modify content
selection
Assess experience
Determine what jobs the viewer wants to get done
Determine what content will get the
job done best
Organize the content for
viewing
Confirm viewing plan
Apple iTelevison
5%market share
20%profit share
Define thejob-to-be-done
Discover segment
Get the whole job done
Win big in new markets