Measuring the Unmeasurable, Screening the Unscreenable, Prioritizing New to the World and Disruptive...

POSITIVELY DIFFERENT MARKETING®

MEASURING THE UNMEASURABLE,

SCREENING THE UNSCREENABLE,

PRIORITIZING NEW TO THE WORLD AND

DISRUPTIVE IDEAS AND PROJECTS

OBJECTIVELYM A R K E T I N S I G H T M A R K E T I N N O V A T I O N M A R K E T S T R A T E G Y M A R K E T C O M M U N I C A T I O N S

P O S I T I V E L Y D I F F E R E N T M A R K E T I N G ®


YOU CAN OBJECTIVELY MEASURE,

PRIORITIZE AND KNOCK THE FUZZ

OFF ANYTHING

M A R K E T I N S I G H T M A R K E T I N N O V A T I O N M A R K E T S T R A T E G Y M A R K E T C O M M U N I C A T I O N S

P O S I T I V E L Y D I F F E R E N T M A R K E T I N G ®


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SCREENING FOR DUMMIES

“sorting the wheat from the chaff”


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Purpose: To objectively evaluate business opportunities in a timely fashion.

Get rid of the dead wood early; don't waste resources on ideas with poor fit.


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• Uniqueness: Is the idea original? Is it easily copied by competitors?

• Need fulfillment: Does it meet a customer need?

• Feasibility: Can we develop and launch it?

• Impact: How will our firm be affected?

• Scalability: Can we become more efficient in production?

• Strategic fit: Does it match with corporate strategy and culture?

NEW PRODUCTS MANAGEMENT Merle Crawford, Anthony Di Benedetto 11th Edition Irwin/McGraw-Hill, © 2014


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• Product or Service Description(Describe your idea, attach drawings, sketches, papers, internet or intranet references to help describe the idea or concept)

• Customer need being met or problem solved:

• Anything similar in any market:

• Existing and potential new competitors:

• Target Customer(s):

• Target Market(s)/Distribution:

• Wow factor! What is the reason to believe or use this product versus the competition or existing product?

DESCRIBE WHAT YOU MEASURE


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WHAT IS MOST IMPORTANT?

FINANCIALSSTRATEGY

?


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9



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Score (1-5)

1. Strategic fit both corporate and portfolio/product

2. Core competence fit (operations, sales, technology, distribution

3. Market fit

4. Customer fit/need

5. Uniqueness

6. ROI

Total - 22 or more to be considered

SIMPLE SCREEN


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WEIGHTED STRATEGIC SCREEN

Benefit: What’s in it for the customer and us?

Obtainability: Can we get there quickly and inexpensively?

Sustainability: Can we keep it once we’re there?

Objectivity: What happens if we don’t do it?


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Weighted

Rating Weighting Score Benefit: What’s in it for the customer and us?4 12% 0.48 1. Demonstrated need and identified customer

4 10% 0.40 2. Opportunity Size (1 = < 1% Total Sales, 2 = 1-2%, 3 = 2-3%, 4 = 4-5%, 5 = >5%)

4 3% 0.12 3. Market Size (1 = < $10MM, 3 = $30-70MM, 5 = >$100MM)

4 5% 0.20 4. Market growth (1 = < 5%/year, 3 = 7-8%/year, 5 = >10%/year)

5 10% 0.50 5. Payback (1 = < 15% ROI, 3 = 20-25% ROI, 5 = >30% ROI)

40%


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Obtainability: Can we get there quickly and inexpensively? 3 3% 0.09 6. Name/Brand/Image/Customer Fit

5 8% 0.40 7. Operations fit (1 = totally different , 3 = similar + investment, 5 = similar)

5 6% 0.30 8. Technology fit (1 = totally different , 3 = similar + investment, 5 = similar)

4 5% 0.20 9. Distribution fit (1 = totally different , 3 = similar + investment, 5 = similar)

3 3% 0.09 10. Available resources (Existing Internal= 5, New Hire = 3, External Only= 1)

4 10% 0.40 11. Our Competitive strength - Financial, Share, Technology, Manufacturing

35%


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Sustainability: Can we keep it once we’re there?3 8% 0.24 12. Barriers to entry/Legal protection/Uniqueness-secret/Competitive advantage

4 5% 0.20 13. Cost versus competition

3 4% 0.12 14. Differentiation (1 = none, 3 = customer recognized, 5 = Unique product/qual/serv)

3 3% 0.09 15. Customer loyalty

20%


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Objectivity: What happens if we don’t do it?5 5% 0.25 16. Do we understand the full implications of not proceeding with this program?

( 1 = yes, not going forward, 3 = unsure, 5 = Going forward/must do in spite of $)


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Product or Service Opportunity:ORCA BAY Seafood Seasonings and Rubs.ORCA BAY BRANDED seasonings and dry mix marinades add flavor and convenience

Customer need being met or problem solved:Up and coming customer need for organic products.

Wow factor! Reason to believe/use this product versus the competition/existing product?Higher quality, organic.

Market Size: $500,000,000 US Target Market: RetailOpportunity Size: $50,000,000 US Target Customers: Grocery, Mass, Specialty

ROI:Competitors: McCormick

Rate each evaluation criteria 1 to 5 (5 highest confidence – largest opportunity, lowest 1) and then total scores.

Weighted

Rating Weighting Score Benefit: What’s in it for the customer and us?4 12% 0.48 1. Demonstrated need and identified customer

4 10% 0.40 2. Opportunity Size (1 = < 1% Total Sales, 2 = 1-2%, 3 = 2-3%, 4 = 4-5%, 5 = >5%)

4 3% 0.12 3. Market Size (1 = < $10MM, 3 = $30-70MM, 5 = >$100MM)

4 5% 0.20 4. Market growth (1 = < 5%/year, 3 = 7-8%/year, 5 = >10%/year)

5 10% 0.50 5. Payback (1 = < 15% ROI, 3 = 20-25% ROI, 5 = >30% ROI)

40%Obtainability: Can we get there quickly and inexpensively?

3 3% 0.09 6. Name/Brand/Image/Customer Fit

5 8% 0.40 7. Operations fit (1 = totally different , 3 = similar + investment, 5 = similar)

5 6% 0.30 8. Technology fit (1 = totally different , 3 = similar + investment, 5 = similar)

4 5% 0.20 9. Distribution fit (1 = totally different , 3 = similar + investment, 5 = similar)

3 3% 0.09 10. Available resources (Existing Internal= 5, New Hire = 3, External Only= 1)

4 10% 0.40 11. Our Competitive strength - Financial, Share, Technology, Manufacturing

35%Sustainability: Can we keep it once we’re there?

3 8% 0.24 12. Barriers to entry/Legal protection/Uniqueness-secret/Competitive advantage

4 5% 0.20 13. Cost versus competition

3 4% 0.12 14. Differentiation (1 = none, 3 = customer recognized, 5 = Unique product/qual/serv)

3 3% 0.09 15. Customer loyalty

20%Objectivity: What happens if we don’t do it?

5 5% 0.25 16. Do we understand the full implications of not proceeding with this program?

( 1 = yes, not going forward, 3 = unsure, 5 = Going forward/must do in spite of $)

100% 65.28 Total Weighted Score for all 16 questions ( 64 or greater is a solid opportunity )

Required Timing/Ship Date: ______________________

Investment ($):

Resource Assessment (People, Time and Dollars):

NEW PRODUCT DEVELOPMENT SCREENTM

SCREEN


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SCREENING PROVIDES THE BASIS FOR PROJECT PRIORITIZATION


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PRIORITIZATION FACTORS


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PRIORITIZATION FACTORS

1. BALANCE: SHORT, MID AND LONG TERM

PROJECTS

2. BALANCE: RESOURCE UTILIZATION

3. OBJECTIVITY AND MARKET RESEARCH

4. WILLINGNESS TO STOP/DROP


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PORTFOLIO SCREEN


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PORTFOLIO SCREEN

New Product Development Screen - Competitive Business Opportunity Weighting

Business Attractiveness SCORE

Score 10 Score 5 Score 1 Weight LOW HIGH

Mission, Vision, Value Fit High Moderate Low 0.10 10.00 10.00

Technology Compatibility High Moderate Low 0.05 5.00 10.00

Manufacturing/Service compatibility High Moderate Low 0.05 5.00 10.00

Barriers to Entry High Moderate Low 0.10 5.00 10.00

Distribution Fit Excellent Par Poor 0.05 5.00 5.00

Business Growth Rate (%/Yr.) > 12% 5 to 12% < 5% 0.10 5.00 5.00

Distribution Network Type 1

Selective Ordinary Wide 0.10 10.00 5.00

Price Stability Good Par Poor 0.05 5.00 10.00

Customer Concentration 2 >20/80 10-20/80 <10/80 0.05 5.00 5.00

Vertical Integration Common 3 Low Moderate High 0.05 5.00 5.00

Competitive Financial Condition Poor Par Good 0.10 5.00 5.00

Industry Structure Fragmented Several < than 4 0.05 5.00 5.00

Product Life Cycle Embryonic Growth Mat/Aging 0.05 5.00 10.00

Size of Market $1BIL $.1-1BIL <$100MM 0.10 5.00 10.00

Business Attractiveness SCORE 6.00 7.50


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PORTFOLIO SCREEN

Competitive Strength SCORE

Compare to competition where appropriate Score 10 Score 5 Score 1 Weight LOW HIGH

Comp. Business Growth Rate (%/Yr.) > 10% 5 to 10% < 5% 0.15 10.00 10.00

Relative Market Share 4

> 2 1 to 2 < 1 0.20 1.00 5.00

Your Quality Level Higher Same Lower 0.10 5.00 10.00

Your Reputation/Image Higher Same Lower 0.10 5.00 10.00

Your Customers' Loyalty Strong Par Poor 0.10 5.00 10.00

Your Financial Strength Stronger Same Weaker 0.10 5.00 10.00

Your Costs vs. Competition Lower Same Higher 0.10 5.00 5.00

Your Product Differentiation Greater Same Smaller 0.10 10.00 10.00

Your Advertising/Promo Ability Stronger Par Weaker 0.05 5.00 10.00

Competitive Strength SCORE 5.45 8.50

Specific Information:Market Size:

Market Growth:

Key Competitors:


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PORTFOLIO SCREEN

Screening Criteria Business Opportunity Weighting

Low High

1. Business Attractiveness and Fit with Mission and Vision (1-10) 6 7.50a. Target Market Size $120,000BB (Scale 1-10)

b. Target Market Competitors

c. Target Market Growth 250-300%d. Target Market Profitability 78-86%GM

2. Competitive Strength (1-10) 5.45 8.50a. Ability to differentiate and bring added value (Scale 1-10)

b. Ability to create barriers

3. Economic Criteria Low High

A. Sales $(year three) Sales($) $890MM $1.4BB

B. Total Investment $ $234MM $320MMCapital EngrgMarketing OperationsSales ________

C. Human Resources (Investment $'s included above)Available/Attainable (1-10) 5.00 10.00Existing Available Internal= 10, New Hire = 5, External Only= 1

D. Profit potential • $(year three) $ $328MM $608MM • ROI % 28.0% 32.0%

Issues and Timing

Date: ____________ Evaluator: ____________________________


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MAKING SENSE OF THE UNKNOWN

Everything can be measured, it is just a matter of

combining research, adaption and adoption theory,

scenario analysis and “uncommon” sense to

measure, screen and prioritize ideas and projects

from the simple, to complex, to “new to the world”

projects.


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VOC TACTICS FOR THE UNKNOWN

New to the WorldTACTIC: Market Research acceptance and substitution for what they do now, Adaptation Analysis, Trend Time Lines, Observational, Delphi

New to CompanyTACTIC: Market Research Brand Acceptance, and product/service acceptance, Channel issues

New MarketTACTIC: Market Research Brand Acceptance, and product/service acceptance, Channel issues

New Application, Line Extension, Line EnhancementTACTIC: Market Research Acceptance


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1984 – 2014

From Motorola to

Apple


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ADAPTATION ANALYSIS

Customer Adoption Time Lines

Graphically Show Adoption Rate based Life Cycles and Substitution assumptions

TIME

VO

LU

ME

SH

AR

E

New Volume Existing Volume

New SOM Existing SOM

Repurchase Cycles


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TREND TIME LINES

Time in Years

Present

Low

High

3 5 7

Perf

orm

ance

1

5

10

Technology announcement

9Past Future12357912

Co

st p

er

watt

hour

Low

High

1

5

10Offered for sale

Shipped

First significant improvement (cost/performance)

Lithium Anode Battery Technology


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LIFE CYCLE AND REPURCHASE

TIME

VO

LU

ME

Repurchase/ Cycles

Repurchase/ Cycles


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DELPHI METHOD

The Delphi method is a structured communication

technique or method, originally developed as a

systematic, interactive forecasting method which

relies on a panel of experts. The experts answer

questionnaires in two or more rounds.


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Everything can be measured, it is just a matter of

combining research, adaption and adoption theory,

scenario analysis and “uncommon” sense to

measure, screen and prioritize ideas and projects

from the simple, to complex, to “new to the world”

projects.


FOR 23 YEARS AXIOM HAS BEEN AN

AWARD WINNING MARKETING FIRM

THAT USES INSIGHTS,

INNOVATIONS AND CONTENT

TO GROW YOUR BUSINESS.

WHAT IS AXIOM ?

Charlottesville - Charlotte - Cedar Rapids - Orange County - Minneapolis


MARKET

INSIGHT

MARKET

INNOVATION

MARKET

COMMUNICATIONS

CHANNEL

STRATEGY

AXIOM EXPERTISE


AXIOM IS A DIVERSE BAND OFMARKETEERS, INVENTORS, CRAFTSPEOPLE, PATHFINDERS,

ENGINEERS, ENTREPRENEURS, SCIENTISTS, AND PROVOCATEURS.

WE BELIEVE VOICE OF THE CUSTOMER IS THE KEY TO ALL

TRANSFORMATIVE BUSINESS RESULTS

WE EXCEL IN SEEKING THE TRUTH

AS TOLD BY THE CUSTOMER

WE PURSUE SUCCESS THROUGH

VOICE OF THE CUSTOMER


RETAIL

CONSUMER

BUILDING &

CONSTRUCTION

MEDICAL &

HEALTHCARE

AGRICULTURE &

HORTICULTURE

EDUCATION

SAMPLING OF AXIOM INDUSTRIES


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FOR MORE INFORMATION

We believe that the SOQ is an important tool that

helps to improve organizations.

Axiom.

3800 American Blvd West

Suite 1130

Bloomington, MN 55431 - USA

Phone: (612) 861-6171

E-mail: [email protected]

Date post:	15-Apr-2017
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