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Opportunity recognition


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My Speech at Aalto University Helsinki Finland
Entrepreneurial Marketing -cource
Opportunity recognition
Aalto University 2013-03-14
Ilkka O. Lavas Serial Entrepreneur
Offering Market Fit

Published in: Business

Opportunity recognition

  1. 1. Opportunity recognition Offering-Market fit (Product-Market fit)
  2. 2. Ilkka O. Lavas• 2 books about entrepreneurship• Partner, board member, investor – Portfolio of 12 businesses – 10+ aquisitions done – 3 exits• Young Entrepreneur of the year 2009 in Southern Finland –area• 34years, 2 boys, 1 wife, 1153 fb connections, 1035 linkedin conns, twitter @lavas
  3. 3. Portfolio EXITed:EXITed:
  4. 4. MottoWhen you spend 8 hours doing something, youshould be able enjoy it Most important in work-life is to enjoy work andyour achievements at work itselfyou need to have good feeling to go towork every day if you don’t like your job or don’t feel good at job:QUIT
  5. 5. Entrepreneurial Marketing• Agility as a success factor?• What is agility? Photo by Tarja Ryhannen Mitrovic / Flickr
  7. 7. AIDA• A - Attention (Awareness): attract the attention of the customer.• I - Interest: raise customer interest by focusing on and demonstrating advantages and benefits (instead of focusing on features, as in traditional advertising).• D - Desire: convince customers that they want and desire the product or service and that it will satisfy their needs.• A - Action: lead customers towards taking action and/or purchasing.
  8. 8. Outbound marketing A - Action: lead Choose your customers towards Target Audience taking action and/or purchasing. (Segment) D - Desire: convince customers that they A- Attention want and desire the (Awareness) product or service and Marketing message, that it will satisfy their Getting noticed (push) needs. I - Interest: raise customer interest by focusing on and demonstrating advantages and benefit© Ilkka Lavas 2012 W3 Group Finland Oy
  9. 9. Inbound marketing1. Attract traffic 1. Get found2. Convert visitors to 2-4. Convert leads 5. Analyze.3. Convert leads to sales4. Turn customers into repeat higher margin customers5. Analyze for continuous improvement
  10. 10. Outbound marketing A - Action: lead customers towards Target Audience Inbound marketing taking action and/or purchasing. Convert Analysis buyers to buy more and Create create Audience recurring sales Collect Data, Analyze, Learn and Tell your audience D - Desire: convince Convert customers that they leads develop (tweet, facebook, A- Attention want and desire the to sales email) (Awareness) product or service and Marketing message, that it will satisfy their Getting noticed (push) needs. Convert visitors to leads I - Interest: raise customer interest by focusing on and demonstrating advantages and benefit© Ilkka Lavas 2012 W3 Group Finland Oy
  11. 11. Where to start ?CHOOSE YOUR SEGMENT
  12. 12. The business model canvas Something Somebody Who? START BY THINKING TO WHOM SHOULD I SELL
  13. 13. Customer Segment Example Finns in Finland 5.400.000 ppl
  14. 14. Customer Segment Example Finns living abroad United States 700,000 400.000 Finns + Sweden 470,000 Kids 800.000 Finns Canada 131,040 Brazil 90,000
  15. 15. Case: Suomikauppa.fiOFFERING – MARKET -FIT
  16. 16. 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. – Relatives 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/Situations
  17. 17. Happy family. ProductKids educated with finnish food-culture I want to have Finland –party for my finnish kids.Experience I want to tech my kids how to makeEnjoy finnish candies rye bread yourself.Safe milk for the baby I want Fazer Sininen Chocolate Now.Delivered directly to home I need to feed my babyborn.Safe for my kids. (vs china) Eat something luxury Customers Customer Gains Jobs Customer Pains Is it safe to order online? What happens with the customs? How long time do I have to wait? How much do I have to pay?
  18. 18. 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 that you exist? How do I reach my customers?• Do your customers already recognize the need?
  19. 19. 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 second time you must have done first delivery well.• Returning policies• Customer Service• Good relations with the customs• Import licences (US FDA, Australia etc)• Export licences• Reliability even during high peak seasons
  20. 20. Be ready to learn• You should never become so ready that you think don’t need to learn anything anymore.• Learning is about the joy of imperfection.• Listen to your customers, our first 400 product were from our customer wish list, Now we have more than 3000 products.• Our customer knew better than we 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.
  21. 21. Our predessor failed, and we did learn• 1996-1998 there was competitor with similar products and same market.• They did not meet the needs of customers: – Only 30 products – Slow delivery – Service only in Finnish• Business opportunity Time window was not open yet: – Paying online was not very common
  22. 22. If we can deliver finnish products abroad, who else may be interested?EXPANSION:CHOOSING ANOTHER SEGMENT
  23. 23. The business model canvas Something Somebody ELSE =Different message!
  24. 24. Team Entrepreneurship1+1+1+1+1=11111
  25. 25. Team RolesConsider team People with differententrepreneurship strengths:• Best growth companies • Financial are run by 3-5 people • Lawyer teams (Source TEM • Marketing kasvuyrityskatsaus 2011). • Sales • Hr • Technology • Design • Visual • …
  27. 27. Example marketing funnel Visitors to Web Site1000 Other Paid Organic Traffic SEM-96% lead sources 40 Marketing Raw Leads-50% Registered Visitors 20 Qualified Leads 20 Inside Sales-50% Sales Closed 10 Deal
  28. 28. Other Cases• Technological change – Print media vs Digimedia, Case CITY• Regulatory change – Case Samex, E-customs software
  29. 29. New book this year, (in finnish) Pysäyttämätön yrittäjyys 2013Entrepreneurship is great! (Unstoppable Entrepreneurship)OFFERING-MARKET -FIT Follow me on twitter: lavasQUESTIONS Facebook: LinkedIn: