Ideation_Workshop_2K23.pdf

Innovation Cell NIT Kurukshetra Ideation Bootcamp Let’s Embark on a journey to ideate and create Agenda What does a good problem look like Lean Canvas Reverse Engineering Approach SWOT Analysis Total Addressable Market...

Innovation Cell NIT Kurukshetra Ideation Bootcamp Let’s Embark on a journey to ideate and create Agenda What does a good problem look like Lean Canvas Reverse Engineering Approach SWOT Analysis Total Addressable Market Break Even Analysis Guesstimates Case Study Market Research Idea Generation What does a good problem look like Reverse Engineering Approach METRICS TO EVALUATE A GOOD PROBLEM MARKET SIZE (eg. Swiggy) MARKET GROWTH (eg.Zomato) URGENCY (eg. Practo) FREQUENCY (eg. Netflix) MANDATORY TO SOLVE (eg. Byju’s) UNFAIR ADVANTAGE (eg. RAZORPAY) EM0TIONAL CONNECTION (eg. Portea Medical) A LOT OF PEOPLE HAVE SAME PROBLEM THE PROBLEM IS GROWING THE PROBLEM IS URGENT THE PROBLEM IS FREQUENT THE PROBLEM IS MANDATORY TO SOLVE PROBLEMS WHERE YOU HAVE AN UNFAIR ADVANTAGE PROBLEMS THAT CUSTOMERS FEEL EMOTIONAL ABOUT Reverse Engineering Approach Feasibility Analysis Total Addressable Market Lean Canvas Guesstimates SWOT Analysis Market Research Break Even Analysis Case Study  Total Addressable Market (TAM) The Total Addressable Market (TAM) is a business term that refers to the total revenue opportunity available for a product or service within a specific market or industry. It represents the maximum potential demand for a particular offering, assuming 100% market share, without considering any competitive or economic constraints COMPONENTS OF TAM MARKET DEFINITION GEOGRAPHICAL SCOPE CUSTOMER SEGMENTATION MARKET SIZE REVENUE PER CUSTOMER  GUESSTIMATES TOOL USED TO GUESS AND ESTIMATE A PARTICULAR NUMBER BASED ON SOME FILTERS AND CONTRAINTS  DEMAND SIDE BREAKDOWN Total Number of Cars in India APPROACH SUPPLY SIDE BREAKDOWN Rvenue of dentist’s side buisness CONTEXT SPECIFIC How many bowling balls in a Boeing  The process of evaluating the feasibility of a new product or service through research conducted directly with possible customers is called market research. In simple words it is a system of identifying Market and analyzing information of techniques and problems of marketing. Research It includes all research activities involved in marketing problems such as - Gathering, recording, analyzing utility and marketability of the product, Nature of demand, competitors and methods of marketing.  Measurement of market potential. Market share analysis. Scope of Competitive product studies. Market Short and long range forecasting. Studies of advertisement effectiveness. Research Pricing studies. Plant and warehouse studies.  Lean Canvas is a strategic management template for developing new or documenting existing business models. It consists of 9 blocks which focuses on : Problem: In this block, we list all the problems that a customer is facing. Lean Solution: Solutions of problems listed in first block which contains problem statement. Canvas Cost structure: 3rd block contains a list of all operational cost such as fixed cost , direct and indirect cost , cost of marketing, etc. Unique value proposition(U.V.P.) : It is something that differentiate your product or services from your competitors.  Customer segment: It specifies the target customers,and how customers really think and what are there preferences. Unfair advantage: Its is the secret ingredient that cannot be copied or brought. Lean Channels: Channels specify the means for customer acquisition. Canvas Key metrics: It is the performance indicator of a company.e.g.No of active users etc. Revenue streams: It includes how a company is generating revenue whether its be via subscription , direct selling or via one time cost.  Strengths SWOT Weaknesses Analysis Opportunities Threats  Break-even analysis refers to the point at which total costs and total revenue are equal. A break-even point analysis is used to determine Break-Even the number of units or dollars of revenue Analysis needed to cover total costs. Company X sells a pen. The company first determined the fixed costs, which include a lease, property tax, and salaries. They sum up to ₹1,00,000. The variable cost linked with manufacturing one pen is ₹2 per unit. So, the pen is sold at a premium price of ₹10. Therefore, to determine the break-even point of Company X, the premium pen will be: Break-even point = Fixed cost/Price per cost – Variable cost = ₹1,00,000/(₹12 – ₹2) = 1,oo,000/10 = 10,000 Therefore, given the variable costs, fixed costs, and selling price of the pen, company X would need to sell 10,000 units of pens to break-even. The above-mentioned is the concept of ‘Break-Even Analysis’. Case Study: Flipkart  Sachin and Binny Bansal, avid readers frustrated by the limited online book selection in India, weren't just complaining. They saw an opportunity in 2007. The growing internet penetration, lack of physical The Spark of bookstores, and increasing tech-savviness of an Idea Indians pointed towards a ripe market for online bookselling. Inspired by Amazon's model, they started with the tagline "Your online bookstore," aiming to make books seamlessly accessible across India.  Flipkart addressed several problems Indian book buyers faced: Limited Selection: Traditional bookstores offered A Problem a narrow range, especially outside major cities. Lack of Trust: Concerns about online payment Worth security and product authenticity were prevalent. Delivery Woes: Reliable and timely delivery Solving options were scarce. By offering a wider selection, secure payment methods, and efficient delivery (including the revolutionary Cash-on-Delivery), Flipkart tackled these head-on.  India's book market, estimated at $4 billion in 2007, presented a sizable initial TAM. However, Flipkart saw the potential of a broader e-commerce platform catering to: Total Growing Internet Users: Internet penetration was Addressable rapidly increasing, opening doors to a wider audience. Market Emerging Middle Class: With rising disposable incomes, online shopping was becoming attractive. Limited Product Availability: Many products, especially outside metros, weren't readily available offline. The Indian e-commerce market, estimated at $350 billion by 2026, validated their ambitious TAM vision.  Flipkart utilizes diverse research methods: Quantitative Surveys: Gathering customer feedback on preferences, buying behavior, and satisfaction. Market Social Media Listening: Analyzing online conversations to gauge brand sentiment and Research emerging trends. Website Analytics: Tracking user behavior on the platform to identify optimization opportunities. These insights inform product offerings, marketing, campaigns, and overall business strategy.  Problem: Difficulty accessing & purchasing diverse products in India Solution: E-commerce platform offering convenience, choice, and trust Unique Value Proposition: Wide product range, Lean competitive pricing, COD option, easy returns Customer Segments: Tech-savvy individuals, urban Canvas & semi-urban population Channels: Website, mobile app, affiliate marketing, social media Revenue Streams: Product sales, commissions, advertising, logistics services Key Metrics: Active users, order value, conversion rate, customer satisfaction  S W O T (Strengths) (Weaknesses) (Opportunities) (Threats) Regulatory changes & tax implications First-mover advantage Growing internet Economic fluctuations & in Indian e-commerce High dependence on penetration & consumer spending Extensive product range discounts & promotions smartphone adoption variations & strong vendor Competition from Expansion into new Competition from relationships domestic & categories & verticals emerging players & Robust logistics network international players Leveraging technology offline retailers & efficient delivery Challenges in rural & data analytics for Data privacy & security system market penetration personalization concerns Customer-centric Inventory management Partnering with local Flipkart continuously approach & focus on & profitability concerns businesses & artisans adapts its strategy to innovation address these internal and external factors.  Achieving profitability in 2018 wasn't a cakewalk. Key factors impacting their break-even analysis included: Variable Costs: Efficient logistics management and negotiated deals with vendors helped control inventory and delivery costs. Breaking Fixed Costs: Investments in marketing, technology, and infrastructure had to be balanced against revenue Even growth. Pricing Strategy: Initial low prices to gain market share gradually transitioned to competitive pricing with strategic discounts and promotions. Their focus on operational efficiency, strategic pricing, and continuous revenue growth eventually paved the way for profitability.