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1 B to B Marketing Mastering the Life Cycle. 2 The Life Cycle The Adoption Pattern NPD and Lead Time Break Even and Pay Back Technology Push and Market.

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Presentation on theme: "1 B to B Marketing Mastering the Life Cycle. 2 The Life Cycle The Adoption Pattern NPD and Lead Time Break Even and Pay Back Technology Push and Market."— Presentation transcript:

1 1 B to B Marketing Mastering the Life Cycle

2 2 The Life Cycle The Adoption Pattern NPD and Lead Time Break Even and Pay Back Technology Push and Market Pull 2

3 3 The Life Cycle 3

4 444 What happened to these Products ?

5 55 The Product Life Cycle Time Source : Everett M. Rogers Emergence Growth Maturity Decline Sales

6 66 What’s Next ? Time Source : Everett M. Rogers Emergence Growth Maturity Decline Sales

7 77 Life Cycle of Intel Micro Processors 1985 86 87 88 89 90 91 92 93 94 95 96 97 98 99 286 386 486 Pentium Pro Source : Le Nouvel Economiste 1026

8 88 Ever Faster Cycles Source : Arcep Mars 2008 Nb of years to reach full deployment 

9 9 The Adoption Pattern 9

10 10 The Pattern of Buying Behaviour 13.5% 34% 34% 16% Time Source : Everett Rogers Innovators 2.5% Early Early Late Adopters Majority Majority Laggards

11 11

12 12 The Cumulative Buying Pattern : a S Curve 13.5% 34% 34% 16% Time Source : Geoffrey Moore Innovators 2.5% 100% 84 50 16 Early Early Late Adopters Majority Majority Laggards Technology Visionaries Pragmatists Conservatives Skeptics enthusiasts

13 13 Profits after Revenues Source : Roger Palmer Profit Loss Revenues Profit R&D Emergence Growth Maturity Decline

14 14 NPD and Lead Time 14

15 The Lead Time R&D Emergence Growth Maturity DeclineTime Source : Roger Palmer Profit Revenues Profit Loss Go/No Go Lead

16 16 Steps in R&D Idea Fuzzy Front End New Product Development Commercialization IdeaConcept Product Lead Time Chaotic Unpredictable Goal oriented High degree of certainty Results oriented Buiding value Capturing Value

17 Reading « EADS delays Airbus A350 launch » –The Financial Times as of July 27, 2012 –By Andrew Parker

18 Sales, Break Even and Pay back 18

19 Profit after Revenues R&D Emergence Growth Maturity DeclineTime Source : Roger Palmer Profit Revenues Profit Loss

20 How much Time to Break Even ? R&D Emergence Growth Maturity DeclineTime Source : Roger Palmer Profit Revenues Profit Loss Pay BackPay Off Break Even Lead Revenues

21 Training Idea case 21

22 22 Lead Time by Industry 18 months 26 months 10 years Airbus A400M Agro Food 15 years€100k Automobile 5 years €1 to 2bn Aeronautics 30 years€ 10bn Pharmaceuticals 20 years+ 10€1bn Lead Time Life Cycle R&D Spend 12 years Compound

23 23 Industries Spend R&D Source : Les Echos R&D Expenses in % of Sales 2006

24 24 Pay Back and ROI Pay Back is an easy way to compare projects Pay Back is assessed against a 3 to 5 years time period ROI = Profit/ Sales * Sales/Investment = Profit/ Investment ROI is assessed against industry benchmark

25 Leveraging the Key Factors of Success Time Source : Everett M. Rogers Sales R&D Agile A&P Milk Consolidate Divest Experience Curve Emergence Growth Maturity Decline

26 Technology Push and Market Pull 26

27 2 Business Models 27 Market Pull : Demand triggers the market –Active role of Customer –Process and methods Technology Push : the offer creates the market –Visionary guru –Launches

28 28 Market Pull The Customer generates a new idea Company develops a taylor made response Adopted by other companies after adjustment

29 29 Technology Push R&D to submit innovations Search of leveraging innovations in products Market research, test and introduction

30 30 Technology Push or Market Pull ?

31 The Patent Process 31

32 The European Patent A uniform application Procedure Allows to file for 40 European countries The patent may be filed either in French, English or German Cost is c €18 000 32

33 Reading « Summit gives birth to common EU patent » –The Financial Times as of June 29, 2012 – by Joshua Chaffin

34 TM above Patents Trademark : Brand 34

35 Ranking 35

36 36 Conclusions R&D is mandatory in most industrial markets. Life cycle planning delivers the right product in due time Strategic decisions have to be made through the life cycle to maximize profit 2 models in today’s industries –Technology Push –Market Pull


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