Our goal is to help companies understand their markets, distribution and partnership opportunities, develop an understanding of strengths and weaknesses and allow the company to target their efforts toward the appropriate customers.
Market research is about defining your market and identifying individual players in the market. The competitive landscape includes direct and indirect competitors, as well as “doing nothing.” They key to a successful market entry process is the identification of specific companies and individuals for contacts.
Competition is about challenging the market against the companies’ strengths and their weaknesses. We will focus on an understanding of the value and distribution models.
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3
4. GOALS
• Understand your markets
• Understand your distribution and partnership opportunities
• Understand where you have strengths
• Target your efforts towards the appropriate customer
4
5. BYTHE END OF THIS SESSIONYOUWILL
UNDERSTAND
• Market research is about defining your market and identifying individual players in the
market
• The competitive landscape includes direct and indirect competitors, as well as “doing
nothing.”
5
6. THE BASICS - MARKET RESEARCH
• They key to a successful market entry process is the identification of specific companies
and individuals for contacts
• Do not target your market by broad ranges of market sizes
• Do not target your market by general listings of companies
6
7. THE BASICS - COMPETITORS
• Competitors must be challenged against your strengths and their weaknesses
• Competition is based on value and distribution models
• Cost is important, but often not the key decision point in product comparisons
7
8. DEFINETHE PROBLEM
• These farmers have [this problem] which we are attempting to solve.
• This is how the farmer will use our idea
• This is how the farmer will pay for our idea and see a return
• This is how we will distribute our idea
8
9. DEFINETHE CUSTOMER
• Your customer is “farmers of [this size] farm growing [these crops] who will be
evaluating our product in the [this season] time frame”
• And here is list of those farmers …
• Your customer is not “farmers”
9
10. DEFINETHE DISTRIBUTION NETWORK
• Our distribution network are [these businesses] and the key contact point is [this
person]
• We will leverage this distribution network by [this strategy]
• Our distribution network is not “stores who sell products like ours”
10
11. DEFINETHE PARTNERS
• Our partners are [these businesses] and the key contact point is [this person] and they
develop [this advantage to our company]
• Our partners are not “companies who develop stuff which can help our product”
11
12. MARKET SIZE
• “We have identified 25 organizations to target and expect to close on 5 of them in the
next year.The sale will be $X and we will make $Y in revenue.”
• One of the challenges in the grant process is demonstrating profitability with lower sales
numbers – being profitable in the second and third year and expanding beyond
• Do not say “The market size is $1.5B and we are seeking 1% of that market”
12
13. EARLE HAGER
LARTA PRINCIPAL ADVISOR
• LARTA Consultant for 3 years
• Energy, Biotech, and Agriculture Projects
• Principal Advisor and Commercialization Consulting
• Developed reports in commercialization
• Principal Advisor for grant processes
13
14. EARLE HAGER
THE NEUTRINO DONUT, LLC
• Focused on the management and commercialization of science
• Multiple development projects in innovative technologies over the last ten years for
domestic and international clients.
• Programs for DoE, DoD, NIH, NSF, and other agencies US and foreign universities, SBIR grant
development, and running multiple startups
• Grant Development
14
15. LET’S GET STARTED
• “Opportunities multiply as they are seized.”
― SunTzu,The Art ofWar
15
16. HOTTOPIC AREAS IN INNOVATION
• Biofuels
• Water Efficiency
• Crop Growth Efficiencies
16
17. A SUMMARY OF THE MARKET –
THE BASICS
• Market Research starts with the individual and builds to a large-scale view
• Identification of a general market,“soybean sales” does not create a market view
• Identification of the profiles of customers is how you build a market view
• Research involves sizing and developing an understanding of the customers in the market
17
18. A SUMMARY OF THE MARKET –
DEFINITIONS
• Definition of the problem for the customer
• Definition of the customer process
• Who helps the customer with decisions?
• Identification of specific contacts for future business development
• The process for working with these contacts – the local Dairy Queen
18
19. PROBLEM DEFINITION
• Relate it to small, medium, large, and corporate farms
• Relate it to geography
• Organic? Non-Organic? Both?
19
20. PROBLEM DEFINITION –
PART TWO
• Relate it to crops (food and feed crops)
• Define the problem in terms of customer issues
• Treat problems and opportunities separately
20
21. PROBLEM DEFINITION –
PART THREE
• Is this a new market, an existing market, or improvement on current processes?
• Irrigation techniques can improve yield or create new opportunities
21
22. INNOVATION PROCESS –
USE OF TECHNOLOGY
• Understand how the technology will be used
• Relate to other systems or processes
• Is this an ongoing relationship or a one-time opportunity?
• Think in terms of ongoing revenue
• If you are providing information, will the information be shared?
22
23. INNOVATION PROCESS –
DECISIONTIMEFRAMES
• Using current hardware or improving information
• What is the decision process on value and time?
• Multi-year payback?
23
24. INNOVATION PROCESS –
PURCHASING DECISIONS
• Define product purchase decision points
• Between harvests
• Before planting
• During the season
24
25. INNOVATION PROCESS –
RETURN ON INVESTMENT
• Reduce costs? Generate revenue? Expanded yields?
• Need to define specific value
• Depreciation is nice for larger farms, but not smaller farms
• Tractor GPS devices had an 18-month income/cost payback
25
26. INNOVATION PROCESS –
IMPACT OF TECHNOLOGY
• What is the process/cost of implementing and using the product?
• What is the impact of costs of capital and labor?
26
27. A SUMMARY OF THE MARKET - ANSWERS
• These farmers have [this problem] which we are attempting to solve.
• My customer is a farmer of [this size] farm growing [these crops] who will be evaluating
our product in the [this season] time frame.
• This farmer buys products from [these organizations] and gets advice from [these
groups]
27
28. COMPETITIVE LANDSCAPE –
WHO
• Your competitors are other products
• Your competitors are similar products
• Your competitors are “do nothing”
28
29. COMPETITIVE LANDSCAPE –
FEATURES
• Define the competitive space
• What are your competitors’ strengths, weaknesses, and distribution models
• How do you match up with them?
29
31. COMPETITIVE LANDSCAPE –
DISTRIBUTION
• Define the supply chain and distribution network
• Distribution is not sales – it is a tool for purchasing
• How will they sell or use the technology?
• Who sells?Who markets?Where does the money go?
31
32. COMPETITIVE LANDSCAPE –
RELATIONSHIPS AND PRICING
• How do you make the John Deere distribution network a partner, not a competitor?
• What are the competitors pricing models?
• Distribution costs are usually 40% added to the cost
32
33. BUSINESS PARTNERS –
FARMING TECHNIQUES
• Utilizing other technologies / business partners
• IBM / Watson
• BASF
• Groups that are studying farming techniques
33
34. BUSINESS PARTNERS –
SOFTWARE SYSTEMS INTHE CLOUD
• Cloud Storage
• Data stored here; partners develop applications already in this space
• Partners are certified to work with client data stored in the cloud
34
35. BUSINESS PARTNERS –
MAPS
• Mapping
• Does your product leverage mapping data?
• Many services in this space
35
36. WHAT IS MISSING?
• What is missing?
• Product development to match market / competitive requirements?
• Definitions?
• Other information?
36
38. LARTA PROCESSES
• Use the summary of information you know and don’t know in developing your
requirements to work with LARTA
• Budgeted choices for information offerings
• Leverage this program to develop your business
38
39. LARTA PROCESSES - PLANNING
• Leverage LARTA resources to develop your business plan
• Develop outline of grant information and processes
39
40. WHAT AM I DOING FIRST?
• LinkedIn
• Do not identify companies to contact
• Used LinkedIn to identify people in the companies to contact
40
41. WHAT AM I DOING FIRST –
LINKEDIN
• LinkedIn provides names, company HQ information, and websites
• Access to networks
• Identification of companies
• Identification of individuals in these companies
• Call or connect with person, not a job title
41
42. AND THEN IWILL ….
• Send invites to people in this seminar
• Send invites to LARTA
• Send invites to me
42
43. THINGS TO CHECK OUT –
AGRICULTURE DISTRIBUTION NETWORKS
• Agriculture Co-ops - https://en.wikipedia.org/wiki/Agricultural_cooperative
• Agriculture Co-ops -
https://www.rd.usda.gov/files/RD_Top100AgricultureCooperatives.pdf
• Crop Life 100 / Ag Retailers- https://www.croplife.com/top-100/
43
44. THINGS TO CHECK OUT –
DISTRIBUTION NETWORKS – PART TWO
• Agriculture Distribution Networks
• Sanders - https://www.sanders.com/company/our-story
• Pinnacle Agriculture - https://www.pinnacleag.com/
• Meridian - http://www.meridianad.com/
• Aligned Ag - http://www.alignedagdistributors.com/
44
45. THINGSTO CHECK OUT –
AMAZON CLOUD PARTNERS – SOFTWARE PROJECTS
• Precision Agriculture - https://aws.amazon.com/blogs/iot/aws-iot-driven-precision-
agriculture/
• Agriculture Success Stories - https://aws.amazon.com/blogs/startups/tag/agriculture/
• Farmobile Case Study - https://aws.amazon.com/partners/success/farmobile/
45
47. THINGS TO CHECK OUT –
WATER TECHNOLOGY PARTNERS
• MetropolitanWater of Los Angeles - http://mwdinnovates.com/#home
• Always looking for new technologies to evaluate
• TheWater Council - https://thewatercouncil.com/
• Milwaukee,WI
• Connected to water companies across the Midwest
47
48. THINGS TO CHECK OUT –
BIOFUELS PARTNERS
• Multiple Large Companies seeking new technologies
• BASF
• IBM / Watson
• Bayer
• Air Products and Chemicals
48
49. THINGS TO CHECK OUT –
CROP EFFICIENCY PARTNERS
• Multiple Large Companies seeking new technologies (and their partner networks)
• John Deere
• Caterpillar
• Co-ops
49
50. NOW THATYOU ARE EXPERTS …
• I would like two volunteers to discuss their business
• This is for ideas and sharing with the group
• “I don’t know” is a good answer
50
51. VOLUNTEER #1
• My customer is “farmers of [this size] farm growing [these crops] who will be evaluating
our product in the [this season] time frame”
• And here is list of those farmers …
51
52. VOLUNTEER #1
• These farmers have [this problem] which we are attempting to solve.
• This is how the farmer will use our idea
• This is how the farmer will pay for our idea and see a return
• This is how we will distribute our idea
52
53. VOLUNTEER #1
• Our distribution network are [these businesses] and the key contact point is [this
person]
53
54. VOLUNTEER #1
• Our partners are [these businesses] and the key contact point is [this person] and they
develop [this advantage to our company]
54
55. VOLUNTEER #2
• My customer is “farmers of [this size] farm growing [these crops] who will be evaluating
our product in the [this season] time frame”
• And here is list of those farmers …
55
56. VOLUNTEER #2
• These farmers have [this problem] which we are attempting to solve.
• This is how the farmer will use our idea
• This is how the farmer will pay for our idea and see a return
• This is how we will distribute our idea
56
57. VOLUNTEER #2
• Our distribution network are [these businesses] and the key contact point is [this
person]
57
58. VOLUNTEER #2
• Our partners are [these businesses] and the key contact point is [this person] and they
develop [this advantage to our company]
58
59. THINGS WE DID NOT DISCUSS
• Are there patents?Trade Secrets? Marketing advantages?
• EU Markets?
• Third world markets?
59
60. LARTA’S SUITE OF COMMERCIALIZATION SERVICES
Product Development &Validation
Market Research
Customer Discovery & Insights
Intellectual Property Assessment
Capital & Fundraising
Regulatory & Expansion Strategy
Manufacturing Plans
60
61. For more details on engaging with Larta Commercialization
Services, please contact:
Bandhana Katoch
Sustainability Practice Director, Larta
Email: bkatoch@larta.org
Ph: 213-538-1441
61
62. IDENTIFYING MARKETS
• The day to day processes of your customers is key
• Break down each step on action, decision, evaluation, and payment
62
63. RESEARCH SUPPLEMENTS FOR SBIR GRANTS
• TABA Funding for business development
• Rxx Funding for university research
• The PI for the project can supplement additional research subject to 51% rule
• BAA Announcements from the military
• SBIR program processes
63
64. REAL FRAMEWORK TO RE-EVALUATETHE MARKET
• The closer you are to the customer in the sales process, the more agile you will be in
your product development opportunities
• Sell to the department, not the corporation
• Sell to the business unit
• Have an ongoing subscription model
• Excuse to call and get updates
64
65. LICENSING MODELS – UNDERSTANDING THE
MARKET
• Per User / Per System
• Fully Paid up Licensing – Source Code
• Simultaneous Users
• SAAS
• Open Source with Consulting
65
66. DATA SOURCES FOR PUBLIC AND PRIVATE
COMPANIES
• https://clinicaltrials.gov/ - ClinicalTrials database
• https://www.sec.gov/edgar.shtml - EDGAR database of reporting
• https://www.sbir.gov/ - SBIR grant lists
• https://www.grants.gov/ - all grants
• https://www.linkedin.com/ - database of people and companies
66
67. DATA SOURCES FOR PUBLIC AND PRIVATE
COMPANIES
• Industry Organizations – Membership lists by companies, refer back to LinkedIn
• Conference Attendees - Attendee list of companies, refer back to LinkedIn
• Bloomberg Profiles – headquarters, contact info, websites
• Quick way to find out if company is owned by another group
• https://www.facebook.com/ - Why not?
67
68. DATA SOURCES FOR PUBLIC AND PRIVATE
COMPANIES
• https://scholar.google.com/ – Competitive Research
• https://www.uspto.gov/patents-application-process/search-patents
• Applications are more recent
• Local Industry Groups – Attend industry events
• SoCalBio, First Friday, Innovation Institute, Biocom, LA BioMed, LACI
68
69. NEXT STEPS AFTER SBIR
• TABA funding for business development
• Execute on sales
• Find partner to execute on sales programs
• Use Letter of Support Process to identify partners
• Industrial Partners may help with networking
69
70. FINDING INFORMATION ON PRIVATE COMPANIES
• LinkedIn
• People, size of company, location(s)
• Patent database
• EDGAR
• Venture Databases
70
71. MORE STUFF
• Technology Scouts
• Yet2.Com
• RangeMe
• LACI
• Individual organizations have centers for technology evaluation
71
72. WHATYOU REALLY NEED IS …
• Find the person looking for new technologies in the organization
72
73. FINALLY …
• Some best practices in market research fromTHE Earle Hager.
• Learning more about market research and having an opportunity to see Earle in action!
73
74. Q & A
• Now: Questions from the audience
Submit your
questions via
Questions-Textbox
on GoToWebinar
‘Dashboard’
Use ‘Hand Raise’
function to ask
questions live
(microphone required)
74
75. THANKYOU
The Neutrino Donut, LLC
www.neutrinodonut.com
Los Angeles and Austin
Earle Hager / ehager@neutrinodonut.com
512 431 3940
75
76. THANKYOU
• Understand your markets
• Understand your distribution and partnership opportunities
• Understand where you have strengths
• Target your efforts towards the appropriate customer
76
