Finding	
  the	
  	
  

s	
  
Product-­‐Market-­‐Fit	
  

Ship	
  in	
  harbour	
  may	
  be	
  safe,	
  but	
  this	
  is...
at	
  Aalto	
  University	
  	
  
Ilkka	
  O.	
  Lavas	
  

	
  
Finding	
  the	
  	
  
Photo	
  by	
  	
  Lavas	
  @	
  B...
Ilkka	
  O.	
  Lavas	
  
•  2	
  books	
  about	
  entrepreneurship	
  
•  Partner,	
  board	
  member,	
  investor	
  
– ...
PorYolio	
  

EXITed:	
  
EXITed:	
  

EXITed:	
  
Mobo	
  
When	
  you	
  spend	
  8	
  hours	
  doing	
  something,	
  you	
  
should	
  be	
  able	
  enjoy	
  it	
  	
  
...
Entrepreneurial	
  Marke8ng:	
  Agility	
  
•  Agility	
  as	
  a	
  success	
  
factor?	
  
•  What	
  is	
  agility?	
  ...
BUSINESS	
  PLAN	
  
Photo:	
  Ollis	
  Leppänen	
  
hbp://liiketoimintasuunnitelmaroskakoriin.fi/	
  

1.	
  Are	
  you	
  enthusias8c?	
  
Why...
hbp://www.businessmodelgenera8on.com/downloads/business_model_canvas_poster.pdf	
  
Secrets	
  of	
  Entrepreneurial	
  marke8ng	
  

MARKETING	
  IS	
  A	
  
CONTINUALLY	
  OPTIMIZING	
  
LEARNING	
  PROCE...
AIDA	
  
•  A	
  -­‐	
  Aben8on	
  (Awareness):	
  abract	
  the	
  aben8on	
  
of	
  the	
  customer.	
  
•  I	
  -­‐	
  ...
Outbound	
  marke8ng	
  
A	
  -­‐	
  Ac8on:	
  lead	
  
customers	
  towards	
  
taking	
  ac8on	
  and/or	
  
purchasing....
Inbound	
  marke8ng	
  
1.  Abract	
  traffic	
  
1.	
  Get	
  found	
  
2.  Convert	
  visitors	
  to	
  
2-­‐4.	
  Convert...
Outbound	
  marke8ng	
  
A	
  -­‐	
  Ac8on:	
  lead	
  
customers	
  towards	
  
taking	
  ac8on	
  and/or	
  
purchasing....
Where	
  to	
  start	
  ?	
  

CHOOSE	
  YOUR	
  SEGMENT	
  
The	
  business	
  model	
  canvas	
  
	
  	
  	
  	
  	
  	
  Something	
  
	
  

Somebody	
  
Who?	
  
	
  
START	
  BY	...
Customer	
  Segment	
  Example	
  

Finns	
  in	
  Finland	
  
5.400.000	
  ppl	
  
Customer	
  Segment	
  Example	
  

Finns	
  living	
  abroad	
  
400.000	
  Finns	
  +	
  
Kids	
  800.000	
  Finns	
  

...
Case:	
  Suomikauppa.fi	
  	
  

OFFERING	
  –	
  MARKET	
  -­‐FIT	
  
Search	
  For	
  business	
  idea	
  
•  Search	
  for	
  business	
  idea	
  

–  Living	
  abroad	
  
–  Need	
  for	
  ...
w
Product	
   I	
  my	
  ant	
  to	
  have	
  Finland	
  –party	
  for	
  
finnish	
  kids.	
  

Happy	
  family.	
  
Kids	...
Timing	
  
•  We	
  we	
  not	
  first.	
  There	
  was	
  one	
  pioneer	
  who	
  
failed.	
  We	
  learned	
  from	
  pi...
Be	
  trustworthy	
  
•  ”Finland	
  is	
  not	
  a	
  country,	
  it	
  is	
  a	
  club.”,	
  everyone	
  knows	
  
someb...
Be	
  ready	
  to	
  learn	
  
•  You	
  should	
  never	
  become	
  too	
  self-­‐assured	
  that	
  you	
  
think	
  do...
Our	
  predessor	
  failed,	
  and	
  we	
  did	
  learn	
  
•  1996-­‐1998	
  there	
  the	
  pioneer	
  with	
  smaller	...
If	
  we	
  can	
  deliver	
  finnish	
  products	
  abroad,	
  who	
  else	
  may	
  be	
  interested?	
  

EXPANSION:	
  ...
The	
  business	
  model	
  canvas	
  
	
  	
  	
  	
  	
  	
  Something	
  
	
  

Somebody	
  

ELSE	
  

=Different	
  	
...
Sales?	
  

MARKETING	
  IS	
  CONNECTED	
  WITH	
  
SALES	
  
Example	
  marke8ng	
  funnel	
  
	
  
1000	
  
-­‐96%	
  
40	
  
	
  
-­‐50%	
  
	
  
20	
  
	
  
	
  
20	
  
	
  
-­‐50%...
Other	
  Cases	
  
	
  
	
  
	
  
	
  
Living	
  in	
  market	
  turbulence:	
  
Technological	
  changes	
  
Turnaround	
...
City	
  Digital	
  

Käyttäjä:	
  Urbaani	
  20-­‐45	
  v	
  aktiivinen	
  
ihminen	
  
Miksi	
  juuri	
  nyt?	
  

Digitaliza8on,	
  iPads,	
  mobile	
  penetra8on	
  is	
  	
  
big	
  enoug	
  
hbp://www.busi...
Market	
  Opportunity,	
  Growing	
  Market	
  
1985-­‐2012	
  

2012,	
  2013	
  -­‐>	
  

	
  

	
  

	
  

	
  

	
  

	
  

"   Business:	
  print	
  magazine	
  

" ...
1.	
  Know	
  
where	
  you	
  
are	
  

4.	
  Be	
  
beber	
  

4.	
  Fail	
  and	
  
Learn	
  

Never	
  	
  
Give	
  	
...
 
REMEMBER.	
  
YOUR	
  MISSION	
  IS	
  NOT	
  MONEY.	
  

	
  
MONEY	
  
IS	
  RESULT	
  

	
  

OF	
  AWESOME	
  EXECUT...
Media	
  Digitaliza8on	
  	
  
is	
  global	
  opportunity	
  
www.citydigital.fi	
  
www.ilkkaolavas.com	
  
	
  Ilkka.lav...
Aalto University product-market-fit
Aalto University product-market-fit
Aalto University product-market-fit
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Aalto University product-market-fit

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Entrepreneurial methods in finding Product-Market-Fit.

Lecture at StartupSauna

Ilkka O. Lavas
serial entrepreneur at IT and Media industry
publisher at www.citydigital.fi

Published in: Marketing
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Aalto University product-market-fit

  1. 1. Finding  the     s   Product-­‐Market-­‐Fit   Ship  in  harbour  may  be  safe,  but  this  is  not  what  ship  is  built  for.     Choose  your  des8na8on  .  Dra:  your  route.     Remember:  Success  is  not  a  des8na8on,  it’s  the  journey.     Ilkka  O.  Lavas  /  City  Digital  Ltd  at  Aalto  University  2014.  Photo  by  Mar8n  Nikolaj  (CC  BY  2.0)      
  2. 2. at  Aalto  University     Ilkka  O.  Lavas     Finding  the     Photo  by    Lavas  @  Burma   Sprite  Clone  In  Burma  /  Myanmar   Is  example  of  innova8ve  method.   Product-­‐Market-­‐Fit             Entrepreneurial  methods  
  3. 3. Ilkka  O.  Lavas   •  2  books  about  entrepreneurship   •  Partner,  board  member,  investor   –  PorYolio  of  12  businesses   –  10+  aquisi8ons  done   –  3  exits   •  Young  Entrepreneur  of  the  year   2009  in  ’Southern  Finland’   •  35years,  2  boys,  1  wife,    1576  a   connec8ons,  1035  linkedin   conns,  twiber  @lavas    
  4. 4. PorYolio   EXITed:   EXITed:   EXITed:  
  5. 5. Mobo   When  you  spend  8  hours  doing  something,  you   should  be  able  enjoy  it          Most  important  in  work  life  is  to  enjoy  work  and   your  achievements  at  work  itself     good  feeling  to  go  to   you  need  to  have   every  day   work        if  you  don’t  like  your  job  or  you  are  dissa8fied  at   job:  QUIT    
  6. 6. Entrepreneurial  Marke8ng:  Agility   •  Agility  as  a  success   factor?   •  What  is  agility?   Photo  by  Tarja  Ryhannen  Mitrovic  /   Flickr  
  7. 7. BUSINESS  PLAN  
  8. 8. Photo:  Ollis  Leppänen   hbp://liiketoimintasuunnitelmaroskakoriin.fi/   1.  Are  you  enthusias8c?   Why?  Purpose   2.  Start  from  yourself.   Your  Mission  and  Vision.   3.  Choose  where  to  start   dra:  first  steps  of  your  business   trust  your  ins8ncts     4.  Clarify  how  business  works   How  do  do  find  first  customer?   Learn  how  can  you  provide     your  first  customer  great  services   5.  Don’t  plan  too  much   6.  Just  do  it.     Learn.     Be  beber.     Execute.  
  9. 9. hbp://www.businessmodelgenera8on.com/downloads/business_model_canvas_poster.pdf  
  10. 10. Secrets  of  Entrepreneurial  marke8ng   MARKETING  IS  A   CONTINUALLY  OPTIMIZING   LEARNING  PROCESS  
  11. 11. AIDA   •  A  -­‐  Aben8on  (Awareness):  abract  the  aben8on   of  the  customer.   •  I  -­‐  Interest:  raise  customer  interest  by  focusing  on   and  demonstra8ng  advantages  and  benefits   (instead  of  focusing  on  features,  as  in  tradi8onal   adver8sing).   •  D  -­‐  Desire:  convince  customers  that  they  want   and  desire  the  product  or  service  and  that  it  will   sa8sfy  their  needs.   •  A  -­‐  Ac8on:  lead  customers  towards  taking  ac8on   and/or  purchasing.    
  12. 12. Outbound  marke8ng   A  -­‐  Ac8on:  lead   customers  towards   taking  ac8on  and/or   purchasing.   D  -­‐  Desire:  convince   customers  that  they   want  and  desire  the   product  or  service  and   that  it  will  sa8sfy  their   needs.   I  -­‐  Interest:  raise   customer  interest  by   focusing  on  and   demonstra8ng   advantages  and  benefit     ©  Ilkka  Lavas  2012  W3  Group  Finland  Oy   Choose  your     Target  Audience   (Segment)   A-­‐  Aben8on   (Awareness)   Marke8ng  message,   Gepng  no8ced  (push)  
  13. 13. Inbound  marke8ng   1.  Abract  traffic   1.  Get  found   2.  Convert  visitors  to   2-­‐4.  Convert     leads   5.  Analyze.   3.  Convert  leads  to  sales   4.  Turn  customers  into   repeat  higher  margin   customers   5.  Analyze  for  con8nuous   improvement  
  14. 14. Outbound  marke8ng   A  -­‐  Ac8on:  lead   customers  towards   taking  ac8on  and/or   purchasing.   Convert   buyers  to  buy   more  and   create   recurring   sales   D  -­‐  Desire:  convince   Convert     customers  that  they   leads     want  and  desire  the   to  sales   product  or  service  and   that  it  will  sa8sfy  their   needs.   Target  Audience   Inbound  marke8ng   Analysis   Create   Audience   Collect  Data,   Analyze,  Learn  and   Tell  your  audience   develop   (tweet,  facebook,  A-­‐  Aben8on   email)   Convert   visitors  to   leads   I  -­‐  Interest:  raise   customer  interest  by   focusing  on  and   demonstra8ng   advantages  and  benefit     ©  Ilkka  Lavas  2012  W3  Group  Finland  Oy  www.w3.fi     (Awareness)   Marke8ng  message,   Gepng  no8ced  (push)  
  15. 15. Where  to  start  ?   CHOOSE  YOUR  SEGMENT  
  16. 16. The  business  model  canvas              Something     Somebody   Who?     START  BY   THINKING   TO  WHOM     SHOULD  I  SELL  
  17. 17. Customer  Segment  Example   Finns  in  Finland   5.400.000  ppl  
  18. 18. Customer  Segment  Example   Finns  living  abroad   400.000  Finns  +   Kids  800.000  Finns    United  States    700,000    Sweden    470,000        Canada    131,040    Brazil    90,000  
  19. 19. Case:  Suomikauppa.fi     OFFERING  –  MARKET  -­‐FIT  
  20. 20. Search  For  business  idea   •  Search  for  business  idea   –  Living  abroad   –  Need  for  Finnish  food  and  products   –  There  was  no  online-­‐shop  where  you  can  buy  Finnish   products.   –  Rela8ves  sent  Finnish  Chocolate  Fazer  Sininen  and   Juhla  Mokka  Coffee.  Difficult.   •  Common  sources  for  new  ideas:  Customers,   Employees,  Friends,  Other  Entrepreneurs,   Magazines,  Seminars,  Common-­‐Life-­‐Problems/ Situa8ons  
  21. 21. w Product   I  my  ant  to  have  Finland  –party  for   finnish  kids.   Happy  family.   Kids  educated  with  finnish  food-­‐culture   Experience     Enjoy  finnish  candies     Safe  milk  for  the  baby   Delivered  directly  to  home   Safe  for  my  kids.  (vs  china)     Customers   Gains   I  want  to  teach  my  kids  how  to   make  rye  bread  yourself.   I  want  Fazer  Sininen  Chocolate   Now.   I  need  to  feed  my  babyborn.   Eat  something  luxury   Customer   Jobs   Customer  Pains     Is  it  safe  to  order  online?   What  happens  with  the  customs?   How  long  8me  do  I  have  to  wait?   How  much  do  I  have  to  pay?  
  22. 22. Timing   •  We  we  not  first.  There  was  one  pioneer  who   failed.  We  learned  from  pioneer  and  harvested   the  benefits.   •  Payment  systems?  Online  payment?   •  Are  your  customers  used  to  pay  online?   •  Are  your  customers  willing  to  buy?     •  Do  your  customers  know  of  your  existance?  How   do  I  reach  my  customers?   •  Do  your  customers  already  recognize  the  need  of   your  offering?  
  23. 23. Be  trustworthy   •  ”Finland  is  not  a  country,  it  is  a  club.”,  everyone  knows   somebody  who  knows  you.   •  You  can  sell  easily  once,  but  to  sell  the  second  8me   you  must  have  been  successful  with  the  first  delivery.   •  Returning  policies   •  Customer  service   •  Good  rela8ons  with  the  customs   •  Import  licences  (US  FDA,  Australia  etc)   •  Export  licences   •  Reliability  even  during  high  peak  seasons  
  24. 24. Be  ready  to  learn   •  You  should  never  become  too  self-­‐assured  that  you   think  don’t  need  to  learn  anything  anymore.   •  Learning  is  about  the  joy  of  imperfec8on.   •  Listen  to  your  customers,  our  first  400  products  were   from  our  customer  wish  list,  now  more  than  3000   products.   •  Our  customer  were  more  experienced  than  us  that   they  want  Taffel  Chips  and  Harwall  Jaffa  delivered  to   more  than  100  countries.   •  We  did  not  think  that  many  Finns  can’t  write  or  read   Finnish  properly  anymore  if  they  have  lived  20+  years   abroad.  
  25. 25. Our  predessor  failed,  and  we  did  learn   •  1996-­‐1998  there  the  pioneer  with  smaller   offering  at  the  same  market.   •  They  did  not  meet  the  needs  of  customers:   –  Only  30  products  (we  have  over  3000)   –  Slow  delivery  (we  deliver  very  fast  and  reliable)   –  Service  only  in  Finnish  (we  have  8  languages)   •  It  was  not  right  8me  to  do  business:  Business   opportunity  Time  window  was  not  open  yet:   –  Paying  online  was  not  very  common  
  26. 26. If  we  can  deliver  finnish  products  abroad,  who  else  may  be  interested?   EXPANSION:     CHOOSING  ANOTHER  SEGMENT  
  27. 27. The  business  model  canvas              Something     Somebody   ELSE   =Different     message!    
  28. 28. Sales?   MARKETING  IS  CONNECTED  WITH   SALES  
  29. 29. Example  marke8ng  funnel     1000   -­‐96%   40     -­‐50%     20       20     -­‐50%     10   Visitors  to  Web  Site   Organic  Traffic   Marke8ng   SEM   Other  Paid   lead  sources   Raw  Leads   Registered  Visitors  /  coocies  /  emails  /   retarge8ng  data   Qualified  Leads   We  know  this  customer  is  about  to  buy   Inside  Sales   Sales   Closed   Deal  
  30. 30. Other  Cases           Living  in  market  turbulence:   Technological  changes   Turnaround   Print  media  vs  Digimedia   Case  CITY-­‐magazine  
  31. 31. City  Digital   Käyttäjä:  Urbaani  20-­‐45  v  aktiivinen   ihminen  
  32. 32. Miksi  juuri  nyt?   Digitaliza8on,  iPads,  mobile  penetra8on  is     big  enoug   hbp://www.businessinsider.com   /state-­‐of-­‐internet-­‐slides-­‐2012-­‐10?op=1   Declining  print  revenues  and  circula8ons.   hbp://www.slideshare.net/annabholm   /wmemc-­‐presenta8on-­‐holm-­‐ulhoi-­‐uliyanova  
  33. 33. Market  Opportunity,  Growing  Market  
  34. 34. 1985-­‐2012   2012,  2013  -­‐>               "   Business:  print  magazine   "   Business:  Digital  media  family   "   Area:  HKI,  Tre,  Oulu,  Vaasa,  Turku.  Local  big   "   Area:  Finland,  Global   ci8es   " Customers:   Local,  Finnish  customers   " Customers:  Brands,  local,  Finnish  and   Interna8onal  customers  and  brands     " Circula8on  200k-­‐450k   " Circula8on  1100k   " Unique  Visitors  on  website  100k   " Unique  visitors  8000k  (8M)   "   Content  creators:  20   "   Content  creators:  150-­‐200  
  35. 35. 1.  Know   where  you   are   4.  Be   beber   4.  Fail  and   Learn   Never     Give     Up!   2.  Decide,   where  you   want  to   go.   3.  THEN   GO   Fail,  Fail,  Fail  again  but  always  fail  forward!   •  Angry  birds  was  53rd  game  of  Rovio   •  SuperCell  guys  worked  in  different  businesses  for  20   years  before  huge  win  
  36. 36.   REMEMBER.   YOUR  MISSION  IS  NOT  MONEY.     MONEY   IS  RESULT     OF  AWESOME  EXECUTION
  37. 37. Media  Digitaliza8on     is  global  opportunity   www.citydigital.fi   www.ilkkaolavas.com    Ilkka.lavas@city.fi   Twiber:  @lavas   Facebook:  IlkkaLavas   Gsm  +358  400  997969   www.city.fi/profiilit/lavas/blogi   hbp://www.linkedin.com/in/ ilkkaolavas    
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