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This report is solely for the use of Zinnov client and Zinnov personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Zinnov LLC.
Zinnov – Market Expansion capabilities
VignetteMarch, 2009
Zinnov Management Consulting Pvt Ltd (Confidential)
Agenda
2
Our Market Expansion capabilities
Case Studies
1
2
Zinnov Management Consulting Pvt Ltd (Confidential)
Agenda
3
Our Market Expansion capabilities
Case Studies
1
2
Zinnov Management Consulting Pvt Ltd (Confidential)
Market Expansion Framework
Channel Strategy
• It includes design, development and execution of a strong distribution model for our client to help them reaching out to end customers.
• It assists our clients in penetrating the market with their product offerings at a fast pace and at economical cost.
Opportunity Assessment
• It includes complete business analysis of the viability of prospective markets or opportunity for new products in existing markets.
• It is a combination of analyzing existing market landscape and potential opportunity in addressable market.
Customer Insights
• It includes understanding the methods adopted by customers to solve their problems. Zinnov further analyze the gap between customer needs and market offerings.
• Understanding of customer pain points assists our clients in designing their product strategy.
Peer Group Analysis
• It includes analyzing industry best practices thereby providing guidelines on innovative strategies for the way forward.
• Our clients acquire a competitive edge by gaining market insights and information about key focus areas.
Our Market Expansion portfolio is a combination of services that help clients enter new domains and expand in the existing markets
4
Business Model
Financial Planning Vision Statement
Risk Mitigation
1 2
43
5 6
7 8
Zinnov Management Consulting Pvt Ltd (Confidential)
We assess opportunities by analyzing market landscape and identifying addressable segments
Opportunity Assessment1
5
Assessing the “Demand side”
Assessment of spending
Evaluation of Industryverticals
• Telecom
Projection of future spend pattern
1
• IT110
110• BFSI
• Spending by top 10 market leaders
110
2 3Revenue distribution
Identification of marketplayers• Company
1
Analyzing market maturity
1
• Company 2
• Company 3
2 3
Assessing the “Supply side”
• By Geography
• By Product
• By Vertical
• Introduction
• Growth
• Maturity
Drivers & Constraints
– Demand for products– Constraints for
products– Current scenario– Future Scenario– Gap Analysis
Macroeconomic Analysis
– Growth of economy– New Entrants – Infrastructure analysis– Government policies– Vertical wise analysis
Competitive Landscape
– Price point analysis– Market Penetration – SWOT analysis– Portfolio mapping– Sales Strategy– Clientele analysis– Growth Plans
Target Market Analysis
– Trends in the market– Pain Area analysis– Location analysis– IT spending– Channel Strategy– Profitability analysis
+ + +
Zinnov Management Consulting Pvt Ltd (Confidential)
Our exploratory methodology for various customer segments help generate vital insights
Customer Insights2
6
Focus Group Discussions
Customer Segmentation
Design evaluation framework
In-depth Interviews/ Follow me home
• We conduct focus group discussions with customers to generate insights about existing methods for solving their problems. It assists us in building hypothesis and to further evaluate gap in existing product offerings.
• We conduct exploratory studies to understand the mental, physical and price barriers for customers to design evaluation framework. It is designed to evaluate the unmet needs and pain points of customers.
• We segment the customers on various demographic cuts based on preliminary insights from focus group discussions such as educational qualification, IT literacy, age group, etc
• We conduct in-depth interviews and follow-me-home discussions with customers across the various segments to generate in depths insights on their unmet needs and pain points.
Key Steps Detailed Description
Zinnov Management Consulting Pvt Ltd (Confidential)
We analyze the peer group from a high level and then deep dive into best practices demonstrated by leaders
Peer Group Analysis3
7
Objective
Market Share analysis
Segmentation
Key Parameters
High Level analysis parameters
Financial performanceProduct/service portfolio
Business modelKey customers
Geographical presence
In-depth analysis parameters
Portfolio Analysis
Customer perception
Performanceanalysis
Distribution network
Innovation Quality
Zinnov Management Consulting Pvt Ltd (Confidential)
We evaluate existing and potential distribution models to design customized models
Channel Strategy4
8
Financials• Revenue• Profit• Financial Growth• Investors
Infrastructure Capability
• Locations• Relationship with Resellers• IT Infrastructure Setup• Communication Setup• Quality Process/Certifications
Domain Expertise
• Revenue from target domain• Product offering in target domain• Years of experience in target domain• Clients references in target domain
Talent Capability• Strength of sales workforce• Workforce in target domain• Average experience of sales force• Qualification/Background of sales force
Organizational Alignment• Mid-level management structure• Synergy within organization
Identification of existing channel partner network of peer group companies in same industry segment.
Identification of channel partner network in other industries for innovative potential opportunities.
Identification of channel partners Design of evaluation framework for channel partners
Distributors Resellers System Integrators
Shortlist Channel partners
Analysis of industry best practices
– Direct Sales Vs Indirect Sales– Revenue sharing model– Channel partner margins– Value chain of the product offering
Zinnov Management Consulting Pvt Ltd (Confidential)
We provide sound strategies to develop an effective and powerful business model
Business Model5
9
Delivery
• Zinnov helps identify the mode of delivery preferred by customers and also define a delivery strategy by product/solution based on customer segments
Preferred Mode of Deployment
• Zinnov suggests the preferred mode of deployment based on customer inputs
Role of Local Partners
• Zinnov helps define the role of local players in the ecosystem based on customer interviews
Current Profile of Partners
• Zinnov provides profile of channel partners (SI/VAR/ISV) with whom the client can partner
Target Audience Reach
• Zinnov provides short, medium, and long term recommendations on the best approach to reach target audience
Price Points
• Zinnov provides the price by product/solution based on customer segments
Business Model
a
b
ce
f
d
Zinnov Management Consulting Pvt Ltd (Confidential)
Resource Requirements
Budget Allocation
Cash Flow Statement
Describe a vision of company or strategic contents.
Describe a vision of company or strategic contents.
Describe a vision of company or strategic contents.
Zinnov will provide a financial plan will cover the following
Financial Plan
Zinnov provides a high level visibility into the financial plan required for India entry
Financial Planning6
10
The financial plan is based on the budget inputs provided by the client and projected cash flow keeping in mind certain assumptions for the revenues and customer sign ups
Resource Requirements
Budget Allocation
Cash Flow Statement
Zinnov Management Consulting Pvt Ltd (Confidential)
Zinnov analyzes both tangible and intangible risks and also provides risk mitigation strategies
Risk Mitigation7
11
Possible Threat
• Risk identified based on impact on all stakeholders of India entry
• The threats will cover both macro economic and micro level factors
• Each threat will have a detailed definition of risk
Threat Perception
• Based on market insights, Zinnov will provide a threat perception rating for each defined risk
• The threat level will be defined based on impact on the end objectives defined for India entry
360 Degree Impact of Risk
• Each identified and defined risk will be measured on basis of the 360 degree impact on the stake holders.
• The risks will also be evaluated on basis of the end impact on the success objectives of India entry
A
B
C
Risk Identification
Risk Mitigation
Risk Definition
Zinnov Management Consulting Pvt Ltd (Confidential)
As a final part of the business plan, Zinnov helps define the company vision and also monitor its performance
Vision Statement8
12
Vision
Success Parameters
Dashboard
Trends
A 5 year visual of how Client’s India positioning will look post entry
Parameters on which success will be measured
Zinnov defines a dashboard on which Client can monitor its India performance
Zinnov identifies trends that market is likely to pick up over next 5 years
Zinnov Management Consulting Pvt Ltd (Confidential)
Agenda
13
Our Market Expansion capabilities
Case Studies
1
2
Zinnov Management Consulting Pvt Ltd (Confidential)
Zinnov helped an IT company evaluate the market opportunity for financial software among Indian SMBs …
Case Studies1
14
IT usage by Indians
In-depth Analysis
Precise Forecast & Assessment
Data Collection
1
2
3
Zinn
ov P
roje
ct M
etho
dolo
gy
Framework of Study
Client Requirement
• The client wanted to evaluate the opportunity of offering financial software to individual customers– The offering include software
for calculating tax, Investment planning etc
Expectation from Zinnov
• The client expected Zinnov to help in mapping the needs of the Indian consumer
• They also wanted to have insights into a typical mindset of Indian customer , such as:– Tax paying habits– Investment planning– Savings pattern
Deliverable from Zinnov
• Zinnov helped the client in assessing the varied software which may appeal to Indian consumer.
• Parts of the study included:– Tax paying population size, their frequency of paying taxes – Modes of tax planning (i.e. do they use chartered accounts
or independent tax planner)– Factors which may drive Indian consumers towards buying
a software
Zinnov Management Consulting Pvt Ltd (Confidential)
… and evaluation was done on parameters such as customer insights, key competitors and addressable market opportunity
Case Studies1
15
Project Scope
To understand the opportunity of personal finance product among Indians
Market Overview• Evaluate several market dimensions
– Size– Growth– Profitability– Value chain– Trends– Business models– Success criteria– Sources of
differentiation– Sub-markets /
spaces within
Competitive Landscape
• Identify key competitors and other players in the opportunity area
• Deep-dive on competitors:– History– Performance– Business model– Unique advantage– Relevance to Client
Customer Insight
• Understand the unmet and underserved needs of SMB customers
• Understand pain points of SMBs in existing method
• Define barriers to software use today
• Evaluate decision process of SMB
BA C
Zinnov Management Consulting Pvt Ltd (Confidential)
Zinnov assessed the business opportunity for personal finance software among Indian consumers
Case Studies2
16
Progressive Indians’ Households(2005-2025)
Note: *Data for 2005Source: Zinnov Estimate, “ The rise of Indian Consumer Class” by Mckinsey
14.5
63.9
137.5
0
20
40
60
80
100
120
140
160
2005 2015 2025
#HHs(M)
CAGR
• Professional Services 16%• IT
–Services 8.3%–BPO 6.3%–Products 3.5%
• Agriculture 0.7%• Others 65.3%
16%
CAGR
8%
Several factors associated with this growth
• Increasing complexity of personal finance− Higher disposable income− More credit cards− Multiple bank accounts− Dual income household
Increasingly integrated with global marketplace− Rising wages, driven by MNCs and IT− Availability of global brand products, luxury
items
Favorable changes in government policies− Consumer friendly interest rates for loans− Opening of sectors for public investment
Rising technology adoption− PC use− Internet for e-commerce activity
• Progressive Indian households are those which have an earning more than USD 5000
• Others shall mostly include Owner of SMB manufacturing units, large unorganized retailers
Zinnov Management Consulting Pvt Ltd (Confidential)
Zinnov analyzed the usage behavior of web based marketing tools among Indian SMBs
17
Market Overview
Competitive landscape
Customer Insights
Market Opportunities
• Estimate the market size and growth rate for web based marketing tools
• Identify the key factors for customer segmentation
• Evaluate the current offerings by competitors
• Profile the top 3 competitors
• Estimate the potential market size
• Analyze opportunity and feasibility for a new solution
• Identify target customers for the new solution
• Assess customer satisfaction in the existing setup and identifying unmet needs
• Understand the behavior pattern in the adoption of existing offerings
A
B
C
D
Case Studies3
Zinnov Management Consulting Pvt Ltd (Confidential)
Zinnov analyzed the domestic market and the need for focused and localized CRM solutions…
18
Market Growth SMB Potential
Evolving IT Infrastructure Need for Localization
48%
Domestic Market Drivers
1 2
34
LowHigh
Opportunity Created
Case Studies4
Zinnov Management Consulting Pvt Ltd (Confidential)
Zinnov developed the India business plan for product offerings of an EDA solution provider
19
To evaluate the market opportunity for Embedded Software development tools
Market Overview
• Define Target customers
• Identify customer segmentation
• Evaluate the addressable market size
• Identify current levels of penetration
Competitive Landscape
• Identify key competitors and their market share
• Assess the value add in existing competitive products
• Evaluate their business models
• Identify their distributor networks
Market Analysis
A B
Case Studies5
Zinnov Management Consulting Pvt Ltd (Confidential)
Zinnov with NASSCOM, envisioned the future for Indian software products and defined their roadmap
Case Studies6
20
Software Enabled Product & India
Evaluating Market Size of Indian PD Industry
MNC PD companies in India & Case Studies across PD
Models of business
Global Market Opportunity
Issues with Product Development in India
34
5
1
2
Zinnov Management Consulting Pvt Ltd (Confidential)
Thank You !
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Phone: +91-80-41127925/6
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Phone: +1-408-716-8432
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Phone: +1-281-362-2773
Zinnov Contact www.zinnov.com [email protected]