Innovation for accessing new markets www.iseproject.eu Innovation - - PowerPoint PPT Presentation

www.iseproject.eu

Innovation for accessing new markets

www.iseproject.eu

Innovation

Solving market needs (in a sustainable way) - with (perceived) competitive advantages

www.iseproject.eu

Some figures

• 19% of products disappear during their development phase;
• Products failure after launch:
• 20 - 25 % in the industrial sectors;
• 30 % in services;
• 70 - 95 % in High-techs.
• 45 - 48% of products do not meet their sales targets;
• 44% of products fall short of their business profitability targets;
• In the Super-Hypermarkets, 22% of new references are withdrawn from the

market within one year of launch, and 75% within two years ;

Chiffres Cabinet Novacion

www.iseproject.eu

• Poor competitiveness of the proposed product
• Overestimated market potential
• Non-existent market or longer to start than expected
• The new products penetration time on the market was poorly assessed
• The difficulty of access to distribution channels
• The limited customers diversification and the high dependency risk
• Wrong choices in channels or distribution methods

Main causes of failure: external factors

www.iseproject.eu

• The lack of commercial efforts
• A poor marketing position or a bad communication policy
• Low equity and a lack of stable resources
• Operating costs poorly controlled and too high in light of the company's

potential

• A lack of ability or competence of the new manager in the key functions

Main causes of failure: internal factors

www.iseproject.eu

Innovation Key Success Factors for SME

Conditions

The Entrepreneur Willingness, openness and innovation aptitude, risk-taking, creativity, ability to adapt, ability to anticipate, skills in project management Innovation characteristics Suitability for market needs Perceived competitive advantages Price in line with perceived value Market Important potential Growth opportunity Existing entry barriers Deadlines and duration of access defined Ressources Resources dedicated to innovation (human, technical, financial ...) Marketing Network (resource centres, partner companies ...) Strategy Relevant Definition Coherence between the project and the means Openness to outside

www.iseproject.eu

Innovation steps

• Identify opportunities and define the needs
• Analyze the needs
• Define a strategy
• Implement the project

www.iseproject.eu

Opportunities Market Technological competences Competitors

Opportunity identification

• Identify opportunities and define the needs
• Analyse the needs
• Define a strategy
• Implement the project

www.iseproject.eu

• Explicit needs
• Implicit needs
• Latent/hidden needs

The needs

• Identify opportunities and define the needs
• Analyse the needs
• Define a strategy
• Implement the project

www.iseproject.eu

Purchase delivery Use Complements

Maintenance

• How long does it take to

find the product you are looking for?

• Is the place of purchase

pleasant and accessible?

• Is the transaction

environment safe?

• Can the purchase be made

quickly?

• How long does it take

for the product to be delivered?

• Is it difficult to install

the new product?

• ....
• Does the use ask for

training or an expert assistance?

• Is the product easy to store

when not in use?

• Are the product functions

effective?

• ....
• Should other products or

services be available to operate the product?

• If so, are they costly?
• ....
• Does the product

require external maintenance?

• Is it easy to maintain

and update?

• ....
• Does the product require

external maintenance?

• Is it easy to maintain and

update?

• ....

End of life

Put yourself in the customer’s position and imagine all phases of his experience to satisfy the need that technology / product / service aims to satisfy

• What are his questions / problems?
• What could improve his experience?
• What could bring him value?

Implicit or latent needs identification

www.iseproject.eu

Needs analysis- Market segmentation

3 segmentation criteria:

• Customers and users behavior
• Measurability and accessibility
• Operability

Segment evaluation:

• Company assets
• Market Attractions
• Required effort / investment level
• Identify opportunities and define the needs
• Needs analysis

– Market segmentation

• Define a strategy
• Implement the project

www.iseproject.eu

Needs analysis – Value definition

• Customer concerns
• Customer Purchase Criteria
• Price sensitivity
• ...

Identify what can have value for the customer, what problem to solve.

• Identify opportunities and define the needs
• Needs analysis

– Market segmentation

– Value definition

• Define a strategy
• Implement the project

www.iseproject.eu

= valeur perçue par le client = prix

VALEUR VALEUR CRÉÉE CRÉÉE COUT VALEUR D’ECHANGE VALEUR D’UTILITE

Marge de l’entreprise Marge d’acquisition du client

The right price is positioned between the value in use for the customer (value perceived by him) and the cost of the product, at a level guaranteeing a balanced distribution of the total value created between the company and its customer.

Price determination

• Identify opportunities and define the needs
• Needs analysis

– Market segmentation – Value definition

– Price determination

• Define a strategy
• Implement the project

www.iseproject.eu

Strategy

Reconciling the short term and the medium term

• Identify opportunities and define the needs
• Needs analysis

– Market segmentation – Value definition – Price determination

• Define a strategy
• Implement the project

www.iseproject.eu

Competitiveness strategy

• Improve processes or products to achieve lower costs – Costs

advantage

• Give the product unique characteristics, that the customer will

accept to pay more – Differentiation advantage

• To position on a niche market and to cultivate excellence –

Focalization strategy

• Identify opportunities and define the needs
• Needs analysis

– Market segmentation – Value definition – Price determination

• Define a strategy
• Implement the project

www.iseproject.eu

Eliminate

Elements that do not provide added value to the customer

Raise

The less exploited elements which may have value in the eyes of the customer

Reduce

Items which are too costly and whose goodwill is not perceived by the customer

Create

Create value that is never offered to customers

• Identify opportunities and define the needs
• Needs analysis

– Market segmentation – Value definition – Price determination

• Define a strategy
• Implement the project

ERRC Grid : competitiveness tips

www.iseproject.eu Economical Marketing Legal Technical Technological Financial Organisation, process Business model Project Validation

Project feasibility studies

• Identify opportunities and define the needs
• Needs analysis

– Market segmentation – Value definition – Price determination

• Define a strategy
• Implement the project

www.iseproject.eu

Build a partnership

To better penetrate the market and expand the offer:

• Accurate partner (referent)
• Ensure that partners are familiar with the market: market codes (practices,

language codes, regulations ...), knowledge of customers and suppliers ...

• Identify existing funding sources.
• Identify opportunities and define the needs
• Needs analysis

– Market segmentation – Value definition – Price determination

• Define a strategy
• Implement the project

www.iseproject.eu

Test the product

• Throughout the process
• Involving the customer
• Market confrontation
• Involve partners
• Identify opportunities and define the needs
• Needs analysis

– Market segmentation – Value definition – Price determination

• Define a strategy
• Implement the project

www.iseproject.eu

Thank you

Karim NEGHLI - Business consultant kneghli@aditec.org