Presentation on theme: "From Mind to Market A Thinking Process Hans Pietersen 25 October 2006."— Presentation transcript:
From Mind to Market A Thinking Process Hans Pietersen 25 October 2006
Objective Use a simple analogy to develop an easy- to-remember framework with which to enter a market with a product Non-academic: No Boston Matrix, 4 P’s, SWOT analysis, Company Evaluation or investment leveraging, although these are implied.
Case Study The Product: Respisense ® baby breathing monitor The Company: Infantrust Parenting Solutions The Process: From Mind to Market ?
Case Study The Product: Respisense ® baby breathing monitor The Company: Infantrust Parenting Solutions The Process: From Mind to Market
ABC of being successful Identify a need Devise a solution Become rich
Analogy The Market = The Target The Product = The Arrow’s Tip The Plan = The Arrow’s Shaft The Vehicle = The Bow
The Problem My babies are at risk. How can I protect them?
Current State of the Art Infant breathing monitors In use for 3 decades Standard design Everybody makes them AngelCare, Tomy, BabySense, Rear, Infantec, Little Sentry, Nanny, etc., etc.
But… "The hospital one is large, bulky and has electrodes and leads to contend with, the band that goes round his chest causes skin breakdown and small blisters and the pad one only works well if he stays on it, and he is becoming active so he wiggles off it and it does not, I imagine, feel particularly comfortable lying on a hard surface?!! They all have their problems in their designs.” - Helen E., midwife & mother of Riley
The Opportunity Cannot work with co-sleeping babies Can hardly work outside a cot Can be dangerous (strangulation, choking and electrocution hazards)
Opportunity large enough? SIDS (Sudden Infant Death Syndrome, or “Cot Death”) is the leading cause of death in ages 1 to 12 months. In 1 to 6 months age group, SIDS causes more deaths than all other causes of death combined. There are no predictors for SIDS, so there is no way to determine an infant’s susceptibility to SIDS or recommend who should be monitored.
The Size of the Market 125m babies born per year world-wide 15% of USA babies die of SIDS and SIDS-like events If we extrapolate: 15% of 125m is 18 750 000 Or one baby every 2 seconds
Commercial Opportunity Market: 125 million babies Target market: 1.25 million babies (1%) Market share: 8%
Commercial Opportunity Market: 125 million babies Target market: 1.25 million babies (1%) Market share: 8% (100 000 units/year) Market value: R80 000 000 per annum We have a TARGET
Design the arrow’s tip The product must satisfy the need, In a unique way, …and be viable Question to be answered: If the arrow hits the target, will it penetrate?
A mother’s request Comparable cost Small & comfortable Highly portable Controlled response
A mother’s request Comparable cost can do Small & comfortable can do Highly portable can do Controlled response can do
Competitive Advantages Breathing stimulation (world 1 st ) Perfectly portable (world 1st) Inherently safe (world 1 st ) No cables, straps or wires No glued-on sensors No metal contact No mains connection No batteries No maintenance (world 1 st )
Development phase Birth of an idea – May ‘03 Proof of concept Oct’03 Patent process started Feb ‘04 Miniaturisation Jun’04 New sensing means Jan’05 Integration Jun’05 Refinement Aug’05 Ready Oct’05
This little piggy… Only at this stage can you consider going to market More importantly, this is where the hard work really starts …and most projects flounder Lesson: Don’t make a tip if you can’t build an arrow.
Complete the Arrow Grow tip into a projectile Close the gap between arrow and target Build your Business Plan including: Product-to-Market matching Market Entry Strategy Anticipate the Market Response
Complete the Arrow Who will you sell to How do they select What are the key criteria Who can act as intermediary Who/what influences that market What are the geographical differences What to do if things go wrong
Complete the Arrow The Marketing Plan IS the Arrow Only you can develop it Change it, chuck it, redo it, expand it, whittle it down, read it, forget it, revisit it, test it, rewrite it, review it; whatever else you do, WRITE IT. If you can’t, don’t go to market Last step: Grow into Business Plan
Add the Bow You: Know the market (where to aim) Have the product (the tip will penetrate) Have a plan (aim the arrow) Now: Build the means to launch Resources (and the Principle of Pi) Personal qualities Support Network
Planning is key to success Failing to plan is planning to fail Plan must be comprehensive Marketing is not advertising Marketing plan is core of business plan Test your plan – actively search for gaps The principle of pi
Open Discussion Only stupid questions, please – they’re easier to answer “I come in peace. Take me to your leader.”