1. Reach Beyond Existing Demand MICHAEL MEDRANO CASEY HARVEY MASON STONE JULIO GARCIA COURTNEY ELLIS GLEN LESLY TRAVIS TEMPEL ROBERTO PADILLA

2. Key Points  Three tiers of Noncustomers  First-tier Noncustomers  Second-tier Noncustomers  Third-tier Noncustomers  Go for the Biggest Catchment

3. 3 Tiers of Noncustomers First-Tier Noncustomers  “Soon-to-be”  They minimally use current market offerings.  Pret A Manger Tier-one: Under Armour  Ocean of untapped demand waiting to be released.  “Sweat Everyday” Commercial for Women  Capturing Women Market

4. 3 Tiers of Noncustomers Second-Tier Noncustomers  “Refusing” noncustomers who choose against your market.  Not meeting their needs.  JCDecaux  Outdoor advertising  Looking for commonalities. Tier-two: Under Armour  UA’s “refusing” noncustomers.  UA Submit an Idea.

5. 3 Tiers of Noncustomers Third-Tier Noncustomers  “Unexplored” noncustomers who are in markets distant from yours.  Not been targeted or thought of by any player in the industry  Joint Strike Fighter F-35 Lightning II  Has three variant aircrafts  Marines, Navy and Air Force  http://www.youtube.com/watch?v=7fLnDSA0lws http://www.youtube.com/watch?v=7fLnDSA0lws Tier-two: Under Armour  Initial product was for athletes  Compression shorts, shirts, workout gear  Release of general clothing to the public.  T-shirts, pants, shorts for all sports  Not just for athletes but everyone.

6. Biggest Catchment  Don’t focus on a specific tier but look across all tiers. “Go for the largest catchment”  Natural Strategic Orientation: Retain existing customers in the face of competitive pressure.  Suggestion to maximize the scale of your blue ocean.  Profit from the blue ocean, Create a win-win outcome

7. Conclusion  First Tier Noncustomers  Second Tier Noncustomers  Third Tier Noncustomers