ICNB5-Market & Marketing (1) PDF

Inovação e Criação de Negócios em Bioengenharia Débora Ferreira & Salomé Duarte Department of Biological Engineering, University of Minho, Braga [email protected] ; [email protected] 1 https://www.tecminho.umin...

Inovação e Criação de Negócios em Bioengenharia Débora Ferreira & Salomé Duarte Department of Biological Engineering, University of Minho, Braga [email protected] ; [email protected] 1 https://www.tecminho.uminho.pt/empreender/ignilab Program Week Theoretical Class Practical Class SEPTEMBER W1. [10/09] Introduction to the class W2. [17/09] Ideas presentation Creativity Challenge W3. [24/09] Innovation and entrepreneurship Projects distribution OCTOBER Starting a new venture. Intellectual Property and Regulation W4. [01/10] Preparation for M1 CEB-LABBELS Intelectual Property office M1. Project Idea [01/10] Market & Marketing: segmentation, beachhead market, end user profile, total addressable Discussion M1 W5. [08/10] market Preparation M2 Exercise: SWOT. Porter analysis W6. [15/10] Market: full life cycle use, product specialization, customers Preparation M2 W7. [22/10] Market: value proposition core, competition, acquiring a paying customer, follow on markets Preparation M2 W8. [29/10] Business models and Funding Preparation M2 M2. Intellectual Property & Market [29/10] NOVEMBER W9. [05/11] Tutorial – Discussion and feedback on M2 (online) Financial analysis: map sales process to acquire customer, assumptions viability analysis, W10. [12/11] Preparation M3 minimum viable business product / FINICIA W11. [19/11] Financial analysis (cont.) Preparation M3 W12. [26/11] UMinho success enterpreneurship cases Preparation M3 M3. Business Model & The Voice of the Customer [26/11] DECEMBER W13. [03/12] Tutorial – Discussion and feedback on M3 (online) W14. [10/12] Exam (1 hour) Preparation M4 W15. [17/12] How to make a pitch Preparation M4 JANUARY M4. Financial Analysis [06/01] 3 W16. [17/01] Projects Presentation – pitch (5 min) (in-person) 4 5  Three ways to start a new venture ‘Have an idea’. You have thought of something new that can change the world - or some small part of it - in a positive way, or something that can improve an existing process you are familiar with and you want to implement it ‘Have a technology’. You have come up with a technological breakthrough and want to capitalize on it, or simply expedite its deployment to have a positive effect on society. Or, you have learned about a technological breakthrough and you see great potential for a business ‘Have a passion’. You are confident and comfortable pushing yourself to develop your skills. You also might believe that being an entrepreneur is the way to have the biggest impact on the world. You simply might know that you want to work for yourself and control your own destiny, but you don’t have an idea or technology yet, so you’d like to learn about entrepreneurship while looking for a good idea, technology, and/or partner 6 How to go from “I have a passion” to “I have an idea or technology” ‘No idea or technology’ By first taking stock of your personal interests, strengths and skills, you can more readily identify good opportunities You can do this exercise either alone or with a group of potential co-founders (or teammates) 7  How to go from “I have a passion” to “I have an idea or technology” Knowledge: What was the focus of your education or career? Capability: What are you most proficient at? Connections: Who do you know that has expertise in different industries? Do you know other entrepreneurs? Financial assets: Do you have access to significant financial capital, or will you be relying on few savings? Recognition: What are you or your partners well-known for? Skills in engineering? Understanding fiber optics? Past work experience: In previous jobs you’ve held, what inefficiencies or “pain points” existed? Passion for a particular market: Does the idea of improving healthcare excite you? How about education? Energy? Transportation? Commitment: Do you have the time and effort to devote to this endeavour? Are you ready to make a new venture your primary (or only) focus? SELF ASSESSMENT 8 9 Coming up with an idea or technology How urgent is the problem? How many people have this problem? How much will the customer pay for a solution? How profitable a business can be built solving this problem? What does the competitive landscape look like? What will be your competitive advantage that makes you stand apart from all other companies? 10 11 FairPhone: An innovative SME While most companies launch new cell phones every year, this company business model is to build modular cell phones (in which you can switch components) by using 40% recyclable products https://www.fairphone.com/en/story/ 12  Coming up with an idea or technology If you already have an idea or a technology that you want to use as the basis for your company, you may be tempted to skip straight ahead to ‘Market Segmentation’ However, you should spend some time reflecting on it as you may find that your idea or technology is not as “ready to go” as you thought Or your teammates may have differing opinions, and a brainstorming session will result in a much better starting point that everyone is passionate about If you don’t have something to start with, the standard advice is to find a problem that needs to be solved that you are passionate about solving 13 GO-TO-MARKET STRATEGIES 14  Coming up with an idea or technology An excellent starting point for a new venture is a ‘market pull’ where you identify an unfilled yet meaningful need to fix some “customer pain,” something for which there exists some group of people who are willing to pay money for a solution It is called ‘market pull’ because you are being pulled by the customer to satisfy an already-defined general market demand Coming up with a good market pull is hard - otherwise, everyone would start a company The most important thing for now is to be open to the ideation process and come up with ideas that your team thinks are worth pursuing (Re)invent or improve on the basis of market demand…Produce… Sell it… Increased market share? 15 MARKET PULL 16  Coming up with an idea or technology Another starting point can be a ‘technology push’ based on some new-to-the-world concept that has the potential to create new market opportunities It could be a hardware breakthrough out of a lab with significant IP around it Or it could be taking a technology-enabled business model or process to a new market Software as a service or data analytics are other good examples In this approach, your team has a competitive advantage or early passion about an exciting invention and is searching for a market to apply it to so as to create value and impact You think of something… Engineer it into a product… Then sell it… Is there a market… yes or no? 17 TECHNOLOGY PUSH 18 19 Business-to-Business and Business-to-Consumer Value chain 20 21 22 Business-to-Business (B2B) and Business-to-Consumer (B2C) Marketing B2B B2C 24 The Marketing Concept… With increasing competition, companies searched for better ways to grow revenue and sustain an advantage over their competitors. Companies began identifying unmet customer needs and then developed products that satisfied them – the Marketing Concept was born. Success came to companies that better understood the needs and wants of their customers, and provided the precise products they desired The Marketing Concept is about understanding the needs of customers even if they do not express them Additionally, it is imperative that a company communicate their product’s value, because a product’s benefits are not intuitively understood 1 2 3 4 25 TYPES OF BUSINESS CUSTOMERS “D” – WE DON’T HAVE THAT PROBLEMS IN OUR ORGANIZATION “C” – YES WE HAVE THAT PROBLEM, BUT I DON’T KNOWN WHAT TO DO WITH IT. HOW DOES YOUR PRODUCT RELATE TO OUR SITUATION? “B” – I LIKE THE PRODUCT, BUT I NEED TO DO MORE RESEARCH “A” – BRING ME THE PROPOSAL, I CAN SIGN “A” customers are preferable, but in most industries, more than 70% are “B”, “C” and “D” 26 F. LLUSSÁ 2012 27 WHO are the consumers? Who are they? What do they want to buy? How do they want to buy? When do they want to buy? Where do they want to buy? Why do they want to buy? 28 29 WHO are the consumers? Segmentation - dividing of a population into smaller homogeneous groups based on their needs, wants, desires, and purchasing habits – this is your target market - identifies a group of individuals that can be reasonably reached simultaneously Potential users of a product must be segmented to identify those with the highest motivation to purchase or use a product. Without segmentation, it is impossible to target them appropriately The more homogeneous the needs, wants, desires, and purchasing habits, the more likely a segment will respond in a similar manner Segmenting a population is accomplished by using at least four filters: Geography, Demographics, Psychographic, Behavior/Usage 30 31 WHO are the consumers? 1. Geographic Location For biotechnology products, geography may not pose such a problem although there may be some exceptions, such as with a frozen formulation for a new nasal spray vaccine, where distributors must have freezer storage and transport capabilities. Other factors to be considered might be as broad as climate and population density or as local as types of housing, seasonal foods, and community groups and clubs. Geography can be a marketing consideration in worldwide markets and between countries, based on locations for manufacture, testing, or usage of labile products or services However, these issues usually can be overcome with a good market strategy 32 WHO are the consumers? 2. Demography Demographic characteristics are easy to identify, and include qualities such as age, sex, family status, education level, income, occupation, and race For products that are targeted toward industrial markets, some of these demographic qualities are also applicable, such as age of the organization, size of the organization, and type of industry organization E.g.: Biotech products that target physician group practices can include demographic qualities such as, type of practice, specialty, number of physicians in a practice, number of patients seen per day/week/month/year, age of the practice, and age of the physicians 33 WHO are the consumers? 3. Psychographic Psychographic segmentation is a market research method used to divide a market or customer group into segments based on their beliefs, values, lifestyle, social status, activities, interests and opinions and other psychological criteria. Psychographic segmentation is thought to be the most effective way to divide a market because it lets you know what people are thinking Psychographic segmentations tend to have a longer shelf life than behavioral and demographic segmentations 34 WHO are the consumers? 3. Psychographic Psychographic segmentation is a market research method used to divide a market or customer group into segments based on their beliefs, values, social status, activities, interests and opinions and other psychological criteria. 35 WHO are the consumers? 4. Behavior and Usage Other segmentation characteristics include consumer buying patterns, a loyalty to a particular brand, usage patterns, lifestyles, and attitudes about certain classes of products Physicians can also be segmented by behavior characteristics such as drug prescribing practices, usage of practice protocols for a particular disease, and where they send their referrals Patients can be segmented by preference of a product, usage of a type of medication, and amount of expenditures in a medical category 36 37 38 39 WHO are the consumers? Positioning Positioning has a lot to do with a customer’s perception of a product – you are positioning an image of true value associated with your product. Positioning requires that one differentiate their product from other products in the market, for potential customers to recognize your product. All products must differentiate. It is impossible for a product to be all things to all people, and still have customers value the product. For instance, some people enjoy hot tea, and others like iced tea, but one cannot capture both markets by giving everyone a single product – lukewarm tea. With biotech products, positioning utilizes benefits, value, and solutions to a specific problems, rather than just attributes of status, image, and experiential benefit, such as possible with consumer products. Biotechnology products must have an underlying improvement in effectiveness and performance in order to be successful. 40 41 42 WHO are the consumers? Branding Branding is the personal sense of benefit, value, and desirability customers associate with having a product Companies sell products, but they are really marketing brands Branding is more than just a product trade name and its recognizable product packaging – it is all the information evoked in the mind of the consumer when they encounter a product For biotechnology products, branding is strongly associated with the tangible medical benefit a product provides to the patient, or physician, or medical researcher 43 44 Examples: - understanding of client’s characteristics - answer to changes in client’s needs and desires DANONE COMMERCIALIZES SEVERAL BRANDS OF YOGURTS TOWARDS DIFFERENT TYPES OF CONSUMERS: BRANDS: BIO AND ACTIMEL TO PEOPLE ABSOLUT VODKA BETS ON THE CONCERNED WITH HEALTH; SEGMENT OF PEOPLE BETWEEN THE CORPOS DANONE TO CONTROL 18 AND 45 YEARS (WOMEN WEIGHT, REPRESENT AROUND 55% OF THE VODKA CONSUMERS) DANONINHO FOR THE YOUNGEST TARGET: NIGHT LOVERS, ACTIVE SOCIAL LIFE, FASHION CONSCIENCE 45 Examples: Real positioning: based on product characteristics Psychological positioning: based on ideas and expectations “BRANCO MAIS BRANCO NÃO HÁ!” DANONINHO YOGURT REAL POSITIONING: “IT HAS CALCIUM” PSYCHOLOGICAL POSITIONING: “IT HELPS GROWTH” TIDE REAL POSITIONING: “IT WASHES” PSYCHOLOGICAL POSITIONING: “IT WASHES WHITER” 46 47 48  Market Research: Interviews & SURVEYS Representativeness depends on the number of target consumers Define the unit – individual, family, companies The Size of the Sample - Market Facts Opinions Define the sample dimension – statistical significance Select the sample 49  How to determine the sample size for market research? https://youtu.be/GRZXEB5IOCo?si=eulSDukK2XJDD5L9 50 Market RESEARCH: Interviews & SURVEYS sample selection Sampling Methods Sampling method Characteristics Random sampling Establish an exhaustive list of all survey units and conduct a lottery between them. Expensive method, not always applicable, it must avoid duplication of individuals Quota sampling Representative sample of the population under study according to established criteria (habits, behaviours, opinions etc.). Economic, there is a risk of lack of representativity if the criteria are insufficient. If it is too high it may be difficult to find anyone that meets the criteria 51 Market RESEARCH: questionnaires Main categories of questions Questions Concept Example Advantages Drawbacks OPEN The interviewee has In your opinion what are the Reduced influence on Complex interpretation complete freedom main qualities of your car? the interviewee given the diversity and regarding the form and vagueness of answers extent of the response CLOSED The interviewee must What is the color of your car? Simplicity of the Do not permit the study choose between a answers both for the of complex behaviors, reduced number of interviewee and for opinions and attitudes possible answers the questionnaires treatment PRE-FORMATED The interviewee answers From the following reasons why It may lead the to a question with a have you bought the DVD Philips interviewees to answers limited number of in the Singer store? that they have not possible answers but still Lower price/Close to home/ previously considered has the opportunity to Variety of products/ Nice express an opinion environment/Other (explain) ATTITUDE SCALE The interviewee chooses in Regarding Opel Meriva in which Allows graduating Some interviewees may a scale the degree of segment would you classify it: consumers opinion face some difficulty in agreement or Robust-Fragile; Nervous-Soft; about various graduating their opinion disagreement with a Distinct –Ordinary in a scale product attributes statement between 1 and 7 52 Some examples: 1.How excited are you about our upcoming product? This question helps gauge initial interest and enthusiasm. 2.Would you be willing to test our product? Understanding willingness to participate in testing provides insights into potential early adopters. 3.Is our product accurately solving your problem? Assess whether your product addresses a specific pain point or need. 4.What changes would you like to see in our product? Solicit feedback on potential improvements or additional features. 5.If given the responsibility, how would you promote our product? Insights into marketing strategies and channels can be valuable. 6.How much would competitors charge for a similar product? Understanding price sensitivity and competitive pricing is essential. 7.On a scale of 1 to 10, how likely are you to purchase our product once it’s available? This question measures purchase intent. 8.What other brands are you aware of in this space? Identify competitors and assess brand awareness. 9.How do you prefer to shop (online, in-store, etc.) for products like ours? Understand customer preferences for distribution channels. 10.What media sources do you rely on to stay informed about new products? 53 Some examples: 1. How do you currently address [the problem your product solves] in your daily life? 2. What are the most significant pain points or frustrations you face when dealing with [relevant problem or task]? 3. On a scale from 1 to 10, how important is it for you to find a solution to [specific problem your product addresses]? 4. What features are most important to you when choosing a product for [specific purpose your product serves]? 5. Have you used any similar products or services in the past? If so, what did you like and dislike about them? 6. What would make you consider switching to a new product that promises to solve [specific problem] more effectively? 7. How much would you be willing to pay for a solution that effectively addresses [specific problem or need]? 8. Where do you typically look for information or recommendations about [product category or solution type]? 9. Would you be interested in participating in a product trial or beta test for a new solution to [specific problem]? 10. Is there anything else you would like to share about your experiences or needs related to [specific problem area addressed by your product]? 54 Some examples: 1. How familiar are you with [PRODUCT CATEGORY]? * Not familiar at all * Somewhat familiar * Very familiar 2. How often do you use/purchase [PRODUCT CATEGORY]? * Never * Rarely * Occasionally * Frequently * Very frequently 3. What are the most important features you look for when purchasing [PRODUCT CATEGORY]? (List multiple options) 4. How do you currently solve the problem that [PRODUCT] aims to address? 5. How satisfied are you with your current solution? * Not satisfied at all * Somewhat satisfied * Neutral * Somewhat dissatisfied * Not satisfied at all 6. If a product like [PRODUCT] were available, how likely would you be to consider purchasing it? * Not likely at all * Somewhat likely * Likely * Very likely 7. How much would you be willing to pay for a product like [PRODUCT]? 8. Are there any specific concerns or objections you have about a product like [PRODUCT]? 9. Who else in your household or organization might use [PRODUCT]? 10. Is there anything else you'd like to share about [PRODUCT CATEGORY] or your current solution? 55 Market RESEARCH B2B: with few interviews (less than 5) you may access 80% of the most relevant information → Number of consumer targets is Low B2C: market research / Questionnaires → Number of consumer targets is big 56 Marketing Tools (Summary) Market outlook: potential market (market segments) dimension Identification of consumers’ needs: price ease of installation performance low installation cost duration dimensions versatility Weight deadline design and appearance precision packing ease of use degree of innovation ease of maintenance and repair 57 International Sources of Statistical data 58 Competitive analysis Main products or services and their technical characteristics; Marketing parameters: sales prices, promotions, points of sale, forms of distribution, customer service; New product development policy; Capacity to adjust to market changes; Foreseeable reaction to the entry of a new competitor 60 Paid information 61 Competitive analysis framework 62  5 1. Economies of scale 2. Product differentiation 3. Capital requirements 4. Switching costs 5. Access to distribution channels 6. Government policy The goal of a firm's competitive strategy is to find a place within the industry where it can defend itself from these forces and successfully compete. 63 http://maaw.info/ArticleSummaries/ArtSumPorter1980Chp1.htm 64 65 66 67 68 69 70 71 SWOT analysis of production of carotenoids from microalgal sources 72 Long-term Strategic Planning To help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products. It's also known as the Growth/Share Matrix. 1. Dogs: These are products with low growth or market share. 2. Question marks or Problem Child: Products in high growth markets with low market share. 3. Stars: Products in high growth markets with high market share. 4. Cash cows: Products in low growth markets with high Boston Consulting group’s product market share 73 portfolio matrix (BCG matrix) Open (non-structured) versus Closed market (structured) Open Market An open market is an economic system with no barriers to free market activity An open market is characterized by the absence of tariffs, taxes, licensing requirements, subsidies, unionization and any other regulations or practices that interfere with a naturally functioning free market The pricing of goods or services is driven predominantly by the principles of supply and demand with limited interference or outside influence from large conglomerates or governmental agencies There may be competitive barriers to entry, but there are no regulatory barriers to entry 74 Open (non-structured) versus Closed market (structured) Closed Market A market with a prohibitive number of regulations restricting free market activity Closed markets may restrict who can participate or allow pricing to be determined by any method outside of basic supply and demand A closed market, which is also called a protectionist market, attempts to protect its domestic producers from international competition 75  NON-STRUCTURED (OPEN) versus STRUCTURED MARKETS (CLOSED) Non-structured markets Markets in the process of Strongly structured structuring markets bookstores travel agencies detergents higher education fast food nuclear industry wines cable or satellite television banking software woodworking industry automobile laundries pharmaceutical 76 Fragmented & concentrated market Fragmented means shared by several brands, each with modest shares Concentrated means it is dominated by few brands Fragmented Market Concentrated Market Analgesics market: Aspirin leads this market TV channels market: in 2018 it was leaded by with 6.5% market share (in value) SIC (29.1% share) and TVI (29%) Perfume market: Chanel leads with nº5 and Razors market: Gillete is the leader with a global with 5% of the global market market share of 46.2% (in amount) 77  Pick up your idea(s) Fill up the most adequate mini-canvas (TP 15/10) 78 Coming up with an idea or technology 79 Coming up with an idea or technology 80