1. Reaching Beyond Existing Demand
Blue Ocean Strategy
Chapter 5
Team 5 Section 092 – Richard Alven,
Paul Briseno, Jacqueline Henderson,
Matthew Tawfiq
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2. 2 Conventional Practices
1. Focusing on existing customers
2. Strive for finer segmentation to accommodate buyer differences

3. Look to Noncustomers Don’t focus on customer differences
Build on powerful commonalities in what buyers value
Reach beyond existing demand to create new customers

5. 3 Tiers of Noncustomers Fig 5.1 1st Tier 3rd Tier - Your Market
2nd Tier
Fig 5.1

6. 1st Tier Noncustomers Sit on the edge of market
Become stagnant and develops a growth problem as the number increases
Minimally use current market offerings/ Upon finding alternative they would immediately jump ship

7. 2nd Tier Non Customers Refusing non-customers
People who either do not use or cannot afford to use the current market offerings
Find offerings unacceptable or beyond their makings
JC Decaux

8. 3rd Tier Non Customers Unexplored non-customers
Have not been targeted or thought of as potential customers
Do not target these people because they feel that these people meets have been met or they belong to other markets.

9. Disney 1st Tier Non Customers 2nd Tier Non Customers
Young Children and their parents who have not latched on to any Disney Trends
2nd Tier Non Customers
Early to late teens who feel they’ve outgrown the magic
3rd Tier Non Customers
Young adults with no children, and senior citizens.
More appealing options in all markets that Disney is involved in for this category.

10. Go For the Biggest Catchment!
Focus on the tier that represents the biggest catchment.
Explore whether there overlapping commonalities across the three tiers of noncustomers