Duke ECE 490L: How to Start New Ventures in
Electrical and Computer Engineering
Poornima Vijayashanker
poornima@femgineer....
Review
Duke ECE 490L
• Why do we need a team
• When to assemble a team
• How to assemble a team
• How to manage a team and...
Announcements
• Lab 2 - Prep Work
Duke ECE 490L
3
Idea Summary
4
Agenda
• Risk
• Positioning
• Competitive Analysis
• Differentiation Techniques
• Goal: Identify and Attract Early Adopters...
Duke ECE 490L
Still no building...
6
Duke ECE 490L
Motivation is to bring idea to product
phase. We begin validating our idea by
exploring ways to productize i...
Storytime: mistakes.
Duke ECE 490L
8
RISK.
Duke ECE 490L
9
Mitigating Personal Risk
• Market Awareness
• Past, Present, Future
• Domain Expertise
• Experienced pain
• Deep understan...
Case Study: Gilt Groupe
• Market Awareness & Domain Expertise
• Enjoyed NYC sample sales
• Understood designer fashion and...
Positioning.
Duke ECE 490L
Supplemental Reading: Positioning
12
Duke ECE 490L
Create an image or identity in the minds of
the target market.
Occupy a position in a prospective
customer’s...
Duke ECE 490L
Re-positioning: changing identity of a
product, relative to competitor. e.g. luxury
line
De-positioning: cha...
Duke ECE 490L
Product/Market Fit.
15
Duke ECE 490L
Why is this important?
16
Additional Factors that affect Positioning
Duke ECE 490L
• Price
• Promotion
• Distribution
• Packaging aka design
• Compe...
Duke ECE 490L
VS
18
Case Study: Flip Cam
• Market: consumer electronics
• Camcorders
• Competitors building for professionals and amateurs
• P...
Case Study: Flip Cam
• Understanding the user segment
• amateurs want something simple and affordable
• amateurs record sho...
Duke ECE 490L
How do we develop a position?
21
Duke ECE 490L
Goal is to identify early adopters for next
phase product development: customer
development.
22
Duke ECE 490L
User Segmentation
Differentiation
Techniques
Competitive Analysis
23
Duke ECE 490L
User Segmentation
Differentiation
Techniques
Competitive Analysis
24
Competitive Analysis
Duke ECE 490L
• Define Industry
• Competitors
• Customers and benefits they expect
• Key success factor...
3 More Steps
Duke ECE 490L
Supplemental Reading: Competitor Analysis
1. Understand history of key competitors.
2. Product ...
Market Sizing
Duke ECE 490L
• TAM: Total Addressable Market
• How big is the universe?
• SAM: Served Available Market
• Ho...
Market Sizing
Duke ECE 490L
Supplemental Reading: Market Size Hypothesis
TAM SAM
Target
Market
28
Things to Keep in Mind
Duke ECE 490L
Supplemental Reading: Market Size Hypothesis
• Data from market research firms is from...
Duke ECE 490L
Why are there so many products?
30
Duke ECE 490L
Why aren’t there more products?
31
Duke ECE 490L
MEKKO CHART
0
50
100
150
200
$10M-$50M $50M-$100M $100M-$500M $1B
Apple
Samsung
Acer
Toshiba
Market Size of ...
Duke ECE 490L
0
50
100
150
200
$10M-$50M $50M-$100M $100M-$500M $1B
Apple
Samsung
Acer
Toshiba
Moving Across Market Caps
W...
Purpose of Mekko Chart
• Understand size and competitors.
• Where to start?
• Identify holes in market.
• Mobility in mark...
Duke ECE 490L
User Segmentation
Differentiation
Techniques
Competitive Analysis
35
Differentiation Techniques
• Really need to understand competition!
• But this does NOT mean a feature checkbox comparison...
Duke ECE 490L
User Segmentation
Differentiation
Techniques
Competitive Analysis
37
Duke ECE 490L
38
User Segmentation
Duke ECE 490L
• High Level Segmentation
• Within market what are the various customer demographics
• Tak...
Duke ECE 490L
Start by focusing on needs
of neglected segment
- what doesn’t competitor
‘get’?
- what will make this group...
Duke ECE 490L
Goals of market research?
41
Goals
Duke ECE 490L
• Look at #s and market trends
• Have #s lead to questions
• Who is currently servicing the market? An...
Duke ECE 490L
Case Study: Mint
Finance
Business MarketsPersonal
Finance
People who care but
don’t want to spend
time:
Peop...
Duke ECE 490L
Resist the urge to build.
44
Duke ECE 490L
1. Come up with a hypothesis.
2. Figure out what you want to measure
3. Run an experiment.
4. Measure result...
Duke ECE 490L
Let’s form a hypothesis and set some goals.
46
Duke ECE 490L
Let’s test our hypothesis!
47
Case Study: Mint
Duke ECE 490L
• User Segment: Americans 20-30
• Budget conscious but want more money to enjoy life
• Don’...
Duke ECE 490L
Value propositions.
Supplemental Reading: Original Mint.com Landing Pages
49
Duke ECE 490L
50
Duke ECE 490L
51
Duke ECE 490L
How did we perform these tests?
52
Duke ECE 490L
Created ads and tested across a few channels.
53
Duke ECE 490L
Customer Channel
54
Duke ECE 490L
Started with search.
55
Duke ECE 490L
Because it’s the fastest.
56
Duke ECE 490L
Landing page test.
57
Duke ECE 490L
Goal: we want to see if there is an interest in
our product or service to a particular user
segment.
58
Landing Page Test
Duke ECE 490L
• Headline
• Core value proposition that describes what you are offering to the point
• Pic...
Landing Page Test
Duke ECE 490L
• Landing Page Design: in house or use Unbounce
• Measure: Google Analytics
• Drove Traffic:...
Review
Duke ECE 490L
• Risk
• Positioning
• Competitive Analysis
• Differentiation Techniques
• Goal: Identify and Attract ...
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Lecture 7: Market Research Techniques - Part 1

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In this presentation, Poornima covers positioning a product, and the three phases of market research: competitive analysis, differentiation, and user segmentation.

You can watch the lecture here: http://youtu.be/ifLONSVWnws

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Lecture 7: Market Research Techniques - Part 1

  1. 1. Duke ECE 490L: How to Start New Ventures in Electrical and Computer Engineering Poornima Vijayashanker poornima@femgineer.com Jeff Glass jeff.glass@duke.edu Akshay Raut ar118@duke.edu 1
  2. 2. Review Duke ECE 490L • Why do we need a team • When to assemble a team • How to assemble a team • How to manage a team and keep them motivated • Dealing with departures 2
  3. 3. Announcements • Lab 2 - Prep Work Duke ECE 490L 3
  4. 4. Idea Summary 4
  5. 5. Agenda • Risk • Positioning • Competitive Analysis • Differentiation Techniques • Goal: Identify and Attract Early Adopters Duke ECE 490L 5
  6. 6. Duke ECE 490L Still no building... 6
  7. 7. Duke ECE 490L Motivation is to bring idea to product phase. We begin validating our idea by exploring ways to productize it. 7
  8. 8. Storytime: mistakes. Duke ECE 490L 8
  9. 9. RISK. Duke ECE 490L 9
  10. 10. Mitigating Personal Risk • Market Awareness • Past, Present, Future • Domain Expertise • Experienced pain • Deep understanding • Networking • Market Readiness • Invention v. Re-Invention • Capital Requirements • Indicators: first mover, existing solutions Duke ECE 490L 10
  11. 11. Case Study: Gilt Groupe • Market Awareness & Domain Expertise • Enjoyed NYC sample sales • Understood designer fashion and high end brands • eBay, Bvlgari • Market Readiness • Re-Invention: online sample sals • Vente Privee Duke ECE 490L 11
  12. 12. Positioning. Duke ECE 490L Supplemental Reading: Positioning 12
  13. 13. Duke ECE 490L Create an image or identity in the minds of the target market. Occupy a position in a prospective customer’s mind - one that reflects company’s strengths and weaknesses as well as those of the competitor. 13
  14. 14. Duke ECE 490L Re-positioning: changing identity of a product, relative to competitor. e.g. luxury line De-positioning: changing identity of a competing product, relative to the identity of own product. e.g. Apple - Design 14
  15. 15. Duke ECE 490L Product/Market Fit. 15
  16. 16. Duke ECE 490L Why is this important? 16
  17. 17. Additional Factors that affect Positioning Duke ECE 490L • Price • Promotion • Distribution • Packaging aka design • Competition 17
  18. 18. Duke ECE 490L VS 18
  19. 19. Case Study: Flip Cam • Market: consumer electronics • Camcorders • Competitors building for professionals and amateurs • Position • User segment: amateurs, short clips • Price: $200-$300 • Design: not multi-functional, ease-of-use: 1-button, HD • Size, simplicity, affordability. • Technical specs • Touch screen • Used flash storage Duke ECE 490L 19
  20. 20. Case Study: Flip Cam • Understanding the user segment • amateurs want something simple and affordable • amateurs record short amounts of time • features designed around user segment use cases • positioning around simplicity and affordability Duke ECE 490L 20
  21. 21. Duke ECE 490L How do we develop a position? 21
  22. 22. Duke ECE 490L Goal is to identify early adopters for next phase product development: customer development. 22
  23. 23. Duke ECE 490L User Segmentation Differentiation Techniques Competitive Analysis 23
  24. 24. Duke ECE 490L User Segmentation Differentiation Techniques Competitive Analysis 24
  25. 25. Competitive Analysis Duke ECE 490L • Define Industry • Competitors • Customers and benefits they expect • Key success factors in industry • e.g. Social network and Search - land grab! Don’t rely on intuition! Supplemental Reading: Competitor Analysis 25
  26. 26. 3 More Steps Duke ECE 490L Supplemental Reading: Competitor Analysis 1. Understand history of key competitors. 2. Product - not a feature list! Adoption and rate of innovation. 3. Distribution - customer reach. Who do they not have? Why? 26
  27. 27. Market Sizing Duke ECE 490L • TAM: Total Addressable Market • How big is the universe? • SAM: Served Available Market • How many can I reach with my distribution channels? • Target Market • Who will be the most likely early adopters? Supplemental Reading: Market Size Hypothesis 27
  28. 28. Market Sizing Duke ECE 490L Supplemental Reading: Market Size Hypothesis TAM SAM Target Market 28
  29. 29. Things to Keep in Mind Duke ECE 490L Supplemental Reading: Market Size Hypothesis • Data from market research firms is from the past! • Need to spot trends and piece together different sources of data. • Primary demand for a product based on particular brand e.g. Tablets - Apple iPad • First mover advantage or leader • Bottoms up approach • e.g. 2M girls born in US, 1/2 cannot afford $90 doll. Targeting 6-8 year old, leaves at most 3M. 29
  30. 30. Duke ECE 490L Why are there so many products? 30
  31. 31. Duke ECE 490L Why aren’t there more products? 31
  32. 32. Duke ECE 490L MEKKO CHART 0 50 100 150 200 $10M-$50M $50M-$100M $100M-$500M $1B Apple Samsung Acer Toshiba Market Size of One Product: Tablet Sales of Tablets * Fake data! 32
  33. 33. Duke ECE 490L 0 50 100 150 200 $10M-$50M $50M-$100M $100M-$500M $1B Apple Samsung Acer Toshiba Moving Across Market Caps What does each market segment look like? * Fake data! Sales of Tablets Market Size of One Product: Tablet What does it take to move across segments? 33
  34. 34. Purpose of Mekko Chart • Understand size and competitors. • Where to start? • Identify holes in market. • Mobility in market. • Where you can go next, and what it’s going to take to get there. Duke ECE 490L 34
  35. 35. Duke ECE 490L User Segmentation Differentiation Techniques Competitive Analysis 35
  36. 36. Differentiation Techniques • Really need to understand competition! • But this does NOT mean a feature checkbox comparison. • Holistic brand building strategy. • Heart v. Head • Price • Distribution • Promotion: sell v. buy attitude • Packaging aka Design Duke ECE 490L 36
  37. 37. Duke ECE 490L User Segmentation Differentiation Techniques Competitive Analysis 37
  38. 38. Duke ECE 490L 38
  39. 39. User Segmentation Duke ECE 490L • High Level Segmentation • Within market what are the various customer demographics • Take 3 competitors • Dig into what customers love/hate • Understand substitutes • Easy to displace? Customer’s comfort with change or being ready for it. 39
  40. 40. Duke ECE 490L Start by focusing on needs of neglected segment - what doesn’t competitor ‘get’? - what will make this group loyal? Willing to switch? What will it take? - price - features - credibility - comfort 40
  41. 41. Duke ECE 490L Goals of market research? 41
  42. 42. Goals Duke ECE 490L • Look at #s and market trends • Have #s lead to questions • Who is currently servicing the market? And how much of it? • Who can we service? (Positioning) • How can we service them? (Productizing Idea) • Answers lead to identifying early adopters 42
  43. 43. Duke ECE 490L Case Study: Mint Finance Business MarketsPersonal Finance People who care but don’t want to spend time: People who care and spend time: 40+ Affluent20-30 somethings $75k 43
  44. 44. Duke ECE 490L Resist the urge to build. 44
  45. 45. Duke ECE 490L 1. Come up with a hypothesis. 2. Figure out what you want to measure 3. Run an experiment. 4. Measure results from experiment. 5. Learn. 6. Move on to next hypothesis. 45
  46. 46. Duke ECE 490L Let’s form a hypothesis and set some goals. 46
  47. 47. Duke ECE 490L Let’s test our hypothesis! 47
  48. 48. Case Study: Mint Duke ECE 490L • User Segment: Americans 20-30 • Budget conscious but want more money to enjoy life • Don’t want to spend time managing their money • May have some credit card debt 48
  49. 49. Duke ECE 490L Value propositions. Supplemental Reading: Original Mint.com Landing Pages 49
  50. 50. Duke ECE 490L 50
  51. 51. Duke ECE 490L 51
  52. 52. Duke ECE 490L How did we perform these tests? 52
  53. 53. Duke ECE 490L Created ads and tested across a few channels. 53
  54. 54. Duke ECE 490L Customer Channel 54
  55. 55. Duke ECE 490L Started with search. 55
  56. 56. Duke ECE 490L Because it’s the fastest. 56
  57. 57. Duke ECE 490L Landing page test. 57
  58. 58. Duke ECE 490L Goal: we want to see if there is an interest in our product or service to a particular user segment. 58
  59. 59. Landing Page Test Duke ECE 490L • Headline • Core value proposition that describes what you are offering to the point • Picture • Benefit statement • How your potential customers will benefit from the product or service • Call to action • What do you want the potential customer to do? • Trust indicators 59
  60. 60. Landing Page Test Duke ECE 490L • Landing Page Design: in house or use Unbounce • Measure: Google Analytics • Drove Traffic: Google AdWords 60
  61. 61. Review Duke ECE 490L • Risk • Positioning • Competitive Analysis • Differentiation Techniques • Goal: Identify and Attract Early Adopters 61
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