From Mind to From Mind to MarketMarket

A Thinking ProcessA Thinking Process

Hans PietersenHans Pietersen25 October 200625 October 2006

ObjectiveObjective

Use a simple Use a simple analogyanalogy to develop an easy- to develop an easy-to-remember to-remember frameworkframework with which to with which to enter a marketenter a market with a product with a product

Non-academic: No Boston Matrix, 4 P’s, Non-academic: No Boston Matrix, 4 P’s, SWOT analysis, Company Evaluation or SWOT analysis, Company Evaluation or investment leveraging, although these investment leveraging, although these are implied.are implied.

Case StudyCase Study The Product: RespisenseThe Product: Respisense®® baby breathing monitor baby breathing monitor The Company: Infantrust Parenting SolutionsThe Company: Infantrust Parenting Solutions The Process: From Mind to MarketThe Process: From Mind to Market

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Case StudyCase Study The Product: RespisenseThe Product: Respisense®® baby breathing monitor baby breathing monitor The Company: Infantrust Parenting SolutionsThe Company: Infantrust Parenting Solutions The The ProcessProcess: : From Mind to MarketFrom Mind to Market

ABC of being successfulABC of being successful

Identify a needIdentify a need Devise a solutionDevise a solution Become richBecome rich

AnalogyAnalogy

The Market = The The Market = The TargetTargetThe Product = The The Product = The Arrow’s TipArrow’s TipThe Plan = The Arrow’s The Plan = The Arrow’s ShaftShaftThe Vehicle = The BowThe Vehicle = The Bow

The ProblemThe Problem

My babies are at risk. My babies are at risk. How can I protect How can I protect them?them?

Current State of the ArtCurrent State of the Art

Infant breathing Infant breathing monitorsmonitors

In use for 3 decadesIn use for 3 decades Standard designStandard design Everybody makes Everybody makes

themthem AngelCare, Tomy, AngelCare, Tomy,

BabySense, Rear, BabySense, Rear, Infantec, Little Sentry, Infantec, Little Sentry, Nanny, etc., etc.Nanny, etc., etc.

But…But…

"The hospital one is "The hospital one is largelarge, , bulkybulky and has and has electrodes and leadselectrodes and leads to contend with, the band to contend with, the band that goes round his chest causes that goes round his chest causes skin skin breakdownbreakdown and small and small blistersblisters and and the padthe pad one one only works well if he stays on itonly works well if he stays on it, and he is , and he is becoming active so he wiggles off it and it does becoming active so he wiggles off it and it does not, I imagine, feel particularly comfortable not, I imagine, feel particularly comfortable lying on a hard surface?!! lying on a hard surface?!! They all have their They all have their problems in their designsproblems in their designs.” .”

- Helen E., midwife & mother of Riley- Helen E., midwife & mother of Riley

The OpportunityThe Opportunity

Cannot work with co-sleeping babiesCannot work with co-sleeping babies Can hardly work outside a cotCan hardly work outside a cot Can be dangerous (strangulation, Can be dangerous (strangulation,

choking and electrocution hazards)choking and electrocution hazards)

Opportunity large Opportunity large enough?enough?

SIDS (Sudden Infant Death Syndrome, or “Cot SIDS (Sudden Infant Death Syndrome, or “Cot Death”) is the Death”) is the leading cause of deathleading cause of death in ages 1 in ages 1 to 12 months.to 12 months.

In 1 to 6 months age group, In 1 to 6 months age group, SIDS causes more SIDS causes more deaths than all other causes of death deaths than all other causes of death combinedcombined..

There are no predictors for SIDSThere are no predictors for SIDS, so there is no , so there is no way to determine an infant’s susceptibility to way to determine an infant’s susceptibility to SIDS or recommend who should be monitored.SIDS or recommend who should be monitored.

The Size of the MarketThe Size of the Market

125m babies born per year world-wide125m babies born per year world-wide 15% of USA babies die of SIDS and 15% of USA babies die of SIDS and

SIDS-like eventsSIDS-like events If we extrapolate: If we extrapolate:

15% of 125m is 18 750 00015% of 125m is 18 750 000 Or one baby every 2 secondsOr one baby every 2 seconds

Commercial OpportunityCommercial Opportunity

Market: 125 million babiesMarket: 125 million babies Target market: 1.25 million babies (1%)Target market: 1.25 million babies (1%) Market share: 8%Market share: 8%

Commercial OpportunityCommercial Opportunity

Market: 125 million babiesMarket: 125 million babies Target market: 1.25 million babies (1%)Target market: 1.25 million babies (1%) Market share: 8% (100 000 units/year)Market share: 8% (100 000 units/year) Market value: R80 000 000 per annumMarket value: R80 000 000 per annum

We have a TARGET

Design the arrow’s tipDesign the arrow’s tip

The product must satisfy the need,The product must satisfy the need, In a unique way,In a unique way, ……and be viableand be viable

Question to be answered: If the arrow hits Question to be answered: If the arrow hits the target, will it penetrate?the target, will it penetrate?

A mother’s requestA mother’s request

Comparable costComparable cost Small & comfortableSmall & comfortable Highly portableHighly portable Controlled responseControlled response

A mother’s requestA mother’s request

Comparable costComparable cost can docan do Small & comfortableSmall & comfortable can docan do Highly portableHighly portable can docan do Controlled responseControlled response can docan do

Competitive AdvantagesCompetitive Advantages Breathing stimulation Breathing stimulation (world 1(world 1stst)) Perfectly portable Perfectly portable (world 1st)(world 1st) Inherently safe Inherently safe (world 1(world 1stst))

No cables, straps or wiresNo cables, straps or wires No glued-on sensorsNo glued-on sensors No metal contactNo metal contact No mains connectionNo mains connection No batteriesNo batteries

No maintenance No maintenance (world 1(world 1stst))

Development phaseDevelopment phase

Birth of an idea – May ‘03Birth of an idea – May ‘03 Proof of concept Oct’03Proof of concept Oct’03 Patent process started Feb ‘04Patent process started Feb ‘04 Miniaturisation Jun’04Miniaturisation Jun’04 New sensing means Jan’05New sensing means Jan’05 Integration Jun’05Integration Jun’05 Refinement Aug’05Refinement Aug’05 Ready Oct’05Ready Oct’05

This little piggy…This little piggy…

Only at this stage can you consider going Only at this stage can you consider going to marketto market

More importantly, this is where the hard More importantly, this is where the hard work really startswork really starts

……and most projects flounderand most projects flounder Lesson: Don’t make a tip if you can’t Lesson: Don’t make a tip if you can’t

build an arrow.build an arrow.

Complete the ArrowComplete the Arrow

Grow tip into a projectileGrow tip into a projectile Close the gap between arrow and targetClose the gap between arrow and target Build your Business Plan including:Build your Business Plan including:

Product-to-Market matchingProduct-to-Market matching Market Entry StrategyMarket Entry Strategy Anticipate the Market ResponseAnticipate the Market Response

Complete the ArrowComplete the Arrow

Who will you sell toWho will you sell to How do they selectHow do they select What are the key criteriaWhat are the key criteria Who can act as intermediaryWho can act as intermediary Who/what influences that marketWho/what influences that market What are the geographical differencesWhat are the geographical differences What to do if things go wrongWhat to do if things go wrong

Complete the ArrowComplete the Arrow

The Marketing Plan IS the ArrowThe Marketing Plan IS the Arrow Only you can develop itOnly you can develop it Change it, chuck it, redo it, expand it, Change it, chuck it, redo it, expand it,

whittle it down, read it, forget it, revisit it, whittle it down, read it, forget it, revisit it, test it, rewrite it, review it; whatever else test it, rewrite it, review it; whatever else you do, WRITE IT.you do, WRITE IT.

If you can’t, don’t go to marketIf you can’t, don’t go to market Last step: Grow into Business PlanLast step: Grow into Business Plan

Add the BowAdd the Bow

You:You: Know the market (where to aim)Know the market (where to aim) Have the product (the tip will penetrate)Have the product (the tip will penetrate) Have a plan (aim the arrow)Have a plan (aim the arrow)

Now: Build the means to launchNow: Build the means to launch Resources (and the Principle of Pi)Resources (and the Principle of Pi) Personal qualitiesPersonal qualities SupportSupport NetworkNetwork

A A Business Business ModelModel

Planning is key to Planning is key to successsuccess

Failing to plan is planning to failFailing to plan is planning to fail Plan must be comprehensivePlan must be comprehensive Marketing is not advertisingMarketing is not advertising Marketing plan is core of business planMarketing plan is core of business plan Test your plan – actively search for gapsTest your plan – actively search for gaps The principle of piThe principle of pi

Open DiscussionOpen Discussion

Only stupid questions, please – they’re easier Only stupid questions, please – they’re easier to answerto answer

“I come in peace.Take me to your leader.”