This document discusses market creation and driving adoption of new products profitably. It explains that needs do not necessarily translate to a market and that market creation requires embedding a new product into consumers' lifestyles and routines. It discusses the challenges of consumer research and marketing in market creation contexts due to lack of benchmarks and consumers' inability to evaluate products until routines are embedded. It proposes focusing initial research on lifestyle changes from adoption and building learning strategies into offerings and business models. The document provides examples of market creation techniques from SC Johnson in various countries.

1. *So
Erik Simanis, PhD
Partner
The Intrapreneur Lab
www.eriksimanis.com
Market Creation:
Driving Adoption of New Products, Profitably
Brian Kurtz
Partner
The Intrapreneur Lab

2. © 2015, Erik Simanis 2
SC Johnson: Nairobi, Kenya

3. 3
$

4. 4
Solving Pressing Needs?

5. © 2015, Erik Simanis 5
=
Needs ≠ Market
MARKET
CREATION
Embed
New
Product
Use
Rou:ne
into
Consumers’
Lifestyles

6. 6
Product
Performances
Product Routines
Consumer
Performance
Built
Around
a
Product

7. 7
SCRIPT
PROPS
MOVES
CAST
Concepts
and
feelings
that
a
consumer
links
to
a
product.
Physical
ar=facts
in
a
consumer’s
life
that
touch/interact
with
a
product.
Behaviors
and
rou=nes
consumers
prac=ce
in
conjunc=on
with
a
product.
People
and
social
iden==es
that
consumers
interact
with
when
using
a
product.
Product
Performance

8. 8
Product
Performances
•
Value
experienced
by
a
consumer
based
on
the
par=cular
product
performance
•
The
more
product
performances
a
consumer
knows,
the
more
value
they
get
from
that
product
One Product, Many Performances

9. 9
…Point
of
Use
Water
Purifica=on
for
Rural
Mother
Describe a Product Performance For…

10. 10
SCRIPT
PROPS
MOVES
CAST
Concepts
and
emo=ons
that
a
consumer
links
to
a
product.
Physical
ar=facts
in
a
consumer’s
life
that
touch/interact
with
a
product.
Rou=nes
and
rou=nes
consumers
prac=ce
in
conjunc=on
with
a
product.
People
and
social
iden==es
that
consumers
interact
with
when
using
a
product.
Product
Performance

11. 11
The Market Creation Challenge
Product
rou:nes
are
complex
and
highly
personalized.
Lacking
benchmarks,
consumers
learn
new
product
rou:nes
through
repeated
experimenta:on.
Consumers
can’t
evaluate
a
product
un:l
a
product
rou:ne
is
embedded
into
their
life.

12. 12
Consumer
Research
Different Approach To…
Marke=ng
Strategy

13. © 2015, Erik Simanis 13
13
CONSUMER RESEARCH
MARKET CREATION

14. © 2015, Erik Simanis 14
Consumer
data
and
feedback
about
product
specs
and
pricing
are
liNle
more
than
random
guesses.
Focus
ini=al
research
on
the
consumer
lifestyle
changes
that
accompany
adop=on
of
a
new
product
rou=ne.
The Consumer Research Dilemma
Value
Fog

15. © 2015, Erik Simanis 15
Rela=onships
Rela=onships
Time
Interpersonal
Rela=onships
Space
Consumer Lifestyle Canvas
Budget
Iden=ty
Rou=nes

16. 16
Three-­‐Stone
Open
Fire
“Stove”
Bio-­‐Fuel
Cook
Stove
What are potential changes…
Rela%onships,Rela%onships,
Time,
Interpersonal,
Rela%onships,
Space,
Budget,
Iden%ty,
Rou%nes,

17. 17

18. © 2015, Erik Simanis 18
18
MARKETING STRATEGY
MARKET CREATION

19. © 2015, Erik Simanis 19
You
can’t
“EDUCATE”
nor
“MESSAGE”
your
way
into
a
new
market
without
breaking
the
bank.
Consumer
learning
strategies
have
to
be
built
into
the
offering
and
business
model.
The Marketing Challenge

20. © 2015, Erik Simanis 20
Learning Strategies
There’s
No
Place
Like
Home
Wash
Rinse
Repeat
Monkey
See,
Monkey
Do
Two
Heads
Are
BeSer
Than
One

21. © 2015, Erik Simanis 21
SC Johnson, Ghana

22. © 2015, Erik Simanis 22
The Market Creation Mix
PRODUCT
PLACE
PRICE
• Product
Bundle
• Mul=-­‐func=onality
• Props
• Loyalty
Awards
• Brand
Badges
&
Community
Rituals
• Product
Placement
• Subscrip=on
Pricing
• Layered
Pricing
• Group
Customer
• Skeumorphs
• Local
Codes
• Local
Characters
Value
Open
PROMOTION
VALUE
OPEN

23. © 2015, Erik Simanis 23
Are there other techniques that
could be part of a
Market Creation Mix?

24. *So
Erik Simanis, PhD
Partner
The Intrapreneur Lab
www.eriksimanis.com
Market Creation:
Driving Adoption of New Products, Profitably
Brian Kurtz
Partner
The Intrapreneur Lab