TARGET MARKET
• IDENTIFY YOUR MARKET…
• DEFINABLE, MEANINGFUL, SIZABLE, REACHABLE.
• DEMOGRAPHIC DESCRIPTION, GEOGRAPHIC DESCRIPTION, LIFESTYLE DESCRIPTION,
PSYCHOLOGICAL DESCRIPTION.
• PURCHASING PATTERNS, BUYING SENSITIVITY
• MARKET SIZE & TRENDS
• WHAT IS WRONG
WITH A MARKET SIZE BEING TOO LARGE?
• WHAT IS THE SIZE OF OUR “MARKETS”?
• IS YOUR MARKET SIZE GROWING? ARE PEOPLE SPENDING MORE OR CUTTING BACK?
• WHAT STRATEGIC OPPORTUNITIES CAN YOU IDENTIFY BASED ON MARKET TRENDS?
• PREPARE YOUR BUSINESS PLAN:
• DESCRIPTION OF YOUR MARKET SEGMENT, SIZE & TRENDS, STRATEGIC OPPORTUNITIES.
COMPETITION
• EVERYONE HAS COMPETITION. WHY
• WHO
IS YOUR COMPETITION?
IS IT IMPORTANT TO KNOW/OBSERVE THE COMPETITION?
WHERE
ARE YOUR CUSTOMERS SHOPPING NOW?
• COMPETITIVE POSITION: ASSESS THE POSITION OF YOUR COMPETITIORS.
• WHERE ARE THEY WITH CUSTOMER PREFERENCE?
• WHAT ARE THEIR INTERNAL STRENGTHS & WEAKNESSES?
• MARKET SHARE DISTRIBUTION
• DOES YOUR MARKET HAVE DIVERSE COMPETITION, OR IS IT DOMINATED BY ONLY A FEW PLAYERS?
• HOW WILL YOU GAIN MARKET SHARE?
• CONSIDER BARRIERS TO ENTRY: START-UP COSTS, PATENTS, EXPERTISE, MARKET SATURATION.
• PREPARE YOUR BUSINESS PLAN:
• DESCRIPTION OF COMPETITION, MARKET SHARE DISTRIBUTION, COMPETITIVE POSITIONS, BARRIERS TO
ENTRY, STRATEGIC OPPORTUNITIES.
STRATEGIC POSITION & RISK
• WHY
SHOULD CUSTOMERS BUY FROM YOU
– WHAT ARE YOUR COMPETITIVE
ADVANTAGES?
• TYPES OF STRATEGIC POSITIONS:
• CUSTOMER PERCEPTION FACTORS: MOST COMMON, SOCIETAL IMPACT, FEATURES, PRICE, QUALITY,
CUSTOMER SERVICE, CONVENIENCE, ETC.
• MARKET SEGMENT: NICHE MARKETS. (EX. PLUS SIZED SHOES.)
• MARKET SHARE: DOMINATING MARKET SHARE (PEPSI & COKE)
• OPERATIONAL/TECHNOLOGICAL ADVANTAGES: SAVE MONEY BY OPERATING SMARTER.
• PROPRIETARY PRODUCTS: PATENTS, DISTRIBUTION AGREEMENTS, COPYRIGHTS, ETC.
• SALES CHANNELS: ONLINE, RETAIL, DIRECT TO CUSTOMER, HOUSE PARTIES, DOOR TO DOOR.
• BUSINESS MODEL: WHAT YOUR COMPANY DOES AND HOW IT MAKES MONEY. “FREEMIUM”
• FIRST-MOVER ADVANTAGE: FIRST TO MARKET SHARE, PARTNERSHIPS, EMPLOYEES, MEDIA, &
FINANCING.
STRATEGIC POSITION & RISK CONTINUED
• LEAN START-UP: START UP FAST AND PIVOT BASED ON CUSTOMER FEEDBACK.
• BRANDING: DISTINGUISH YOUR BRAND AND PEOPLE WILL PAY FOR IT. (NIKE)
• EVALUATING RISKS HELP YOU AVOID THEM AND DEAL WITH
PROBLEMS WHEN THEY ARISE.
• TYPES OF RISK: MARKET RISK, COMPETITIVE RISK, TECHNOLOGY RISK, PRODUCT RISK,
EXECUTION RISK, CAPITALIZATION RISK, AND GLOBAL RISK.
• S.W.O.T: STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS.
• PREPARE YOUR BUSINESS PLAN:
• STRATEGIC POSITION, COMPETITIVE ADVANTAGES, RISKS FACING YOUR COMPANY, SWOT
ANALYSIS.