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April 2021
Sina Behzadifard
Product
Management
Tools
Persona Creation
1
Kano Model
2
RICE Scoring
3
Lean Canvas
4
Business Plan
5
Product Management Tools
Persona Creation
Persona Creation: What Is a Persona?
Persona is a profile of a product’s typical customer.
Persona helps Product Managers and other people
to understand customers’:
1. Key traits
2. Behaviors
3. Goals
4. Responsibilities
5. Needs of a specific type of user.
Persona Creation: Why Are Personas Important?
Businesses build products to solve specific problems for
specific groups of people in specific aspects of their
lives.
So, It requires a thorough understanding of those groups:
1. what motivates them?
2. what challenges they face?
3. what goals they have?
4. how they view themselves?
5. what types of messages they find persuasive
(and which ones they find off-putting), etc.
One of the first steps in building any successful product
is to learn about the people who will eventually represent
its target buyer or user.
Persona Creation: What Details Matter When Building a Persona?
Personas can include many different types of personal
and professional detail about the individual, and the
specific details you choose to focus on will depend on
the type of product.
Persona Creation: What Details Matter When Building a Persona?
Age, geographic location, and education level
Persona Creation: What Details Matter When Building a Persona?
Socioeconomic status
Persona Creation: What Details Matter When Building a Persona?
Goals and dreams for their professional or personal life
Persona Creation: What Details Matter When Building a Persona?
Challenges, frustrations, and fears
Persona Creation: What Details Matter When Building a Persona?
The person’s potential biases for or against your product and company
Persona Creation: What Details Matter When Building a Persona?
How the person deals with the problem today that your product plans to solve?
Persona Creation: What Details Matter When Building a Persona?
What the person will need from your product to deem it worthwhile?
Persona Creation: What Are the Different Types of Personas?
Product managers and marketing professionals often
document various personas for their products. Doing so
helps these companies better understand how to meet
the needs of the several different audiences they are
targeting.
In Consumers products and Goods that the end-user are
customers (B2C), the product department might create
several versions of its flagship product for different
Markets:
- Affordable
- Mass-market
- Exclusive
In a B2B business, the sale of the company’s product will
often involve several people in the customer’s
organization:
- The end-user of the product
- Executives or other Decision-maker
- The person tasked with actually purchasing the
product.
Persona Creation: Customer Persona
The customer persona is a comprehensive term to
describe your product’s main persona.
B2C
For a consumer-oriented product, the user is the
Customer and the Customer persona refers to
that.
B2B
For a business that sells products to other
businesses, a customer persona could represent
either the user or the buyer personas.
Persona Creation: User Persona
A user persona is a composite biography drafted
based on market research and experience to
describe the relevant characteristics, needs, and
goals of the people who will be using a product.
B2C
For a consumer-oriented product, the user persona
will also typically be the buyer, so these two aspects
of the person’s profile can be combined. S
B2B
For a product sold to businesses, however, the
individual or team deciding to purchase the product
for the company will often be different from the
person who uses the product once the company buys
it.
For these situations, the product team will need to
develop a separate buyer persona.
Persona Creation: Buyer Persona
B2B
The buyer persona is a central figure in a B2B
organization. Often, this person will have a say in the
purchasing process.
A buyer persona can represent several influencers and
decision-makers within a company, who might not even
use the product themselves.
The buyers will, however, have different needs,
challenges, goals, and fears from the user persona.
They might, for example, be equally concerned with
protecting the company’s budget as with finding the
right solution to help the user persona improve their job.
Persona Creation: Decision-Maker Persona
B2B
Whereas a buyer persona can represent several people in
an organization who might participate in the decision-
making process, the decision-maker is typically a more-
narrow persona—often an executive at the company,
like CEO.
This type focuses on the big picture aspects of the
decision:
- Will it improve the company’s Income?
- Will it reduce the company’s Costs?
- Will it increase the company’s efficiency?
- Does it cost more than the business should spend?
- Can we develop it in-house?
Product and marketing teams selling into businesses will
need to build the product and develop the messaging in
such a way to appeal to these concerns of the decision-
maker persona.
Persona Creation: How Do I Create a Persona?
Practice #1: Create the user persona first
You should develop these profiles before doing any
strategic planning for the product. They should come
even before you draft the product’s vision.
survey.
Persona Creation: How Do I Create a Persona?
Practice #2: Build your profile based on real people
Effective personas aren’t written from guesswork. You
need to interview real people who represent the target
audience for your product. Another option is to send out
surveys to this segment. The more real-world details you
can include, the more helpful it will be.
Persona Creation: How Do I Create a Persona?
Practice #3: Use both quantitative and qualitative
research
Strike the right balance between using aggregate data
and anecdotal evidence to develop your customer
profiles. Your personas will be as realistic as possible
when you pull from market research and the personal
stories of the people you speak with or survey.
Kano Model
Kano Model: Dr. Noriaki Kano
Dr. Noriaki Kano invented the Kano Model.
Kano Model is a Quality Measurement Tool to prioritize
customer satisfaction.
Kano Model challenges the traditional belief, More is Better.
Kano Model: What is the Kano Model?
Customers needs change by time.
1. How can companies analyze customers needs?
2. What delights customers?
3. What are their basic needs?
The Kano Model
This model analyzes and addresses customers needs
in three types of customer requirements:
Kano Model: What is the Kano Model?
Satisfying Basic Needs
Satisfying Performance Needs
Satisfying Excitement Needs
Enables Companies to get into
their marker
Sustains companies
competitiveness
Makes companies to excel and be
World Class
Kano Model: What is the Kano Model?
Must-be requirements
Taken for granted
• Implied
• Self-evident
• Not expresses
• Obvious
One Dimensional Requirements [Linear]
More is Better [Stated]
• Articulated
• Specified
• Measurable
• Technical
Attractive Requirements [Exponential]
Not Expected [Unspoken]
• Not Expresses
• Customer Tailored
• Causes Customer Delight
3
2
1
Kano Model: What is the Kano Model?
Must-be requirements
Taken for granted
• Implied
• Self-evident
• Not expresses
• Obvious
One Dimensional Requirements
More is Better [Stated]
• Articulated
• Specified
• Measurable
• Technical
Attractive Requirements
Not Expected [Unspoken]
• Not Expresses
• Customer Tailored
• Causes Customer Delight
1
2
3
Include them All in the product.
Expected by Customers. No other Choice
[without them, customers become dissatisfied]
Choose the right set at the right level to ensure an
attractive and competitive product.
[with them, customer satisfaction is enhanced]
Choose only 1 or 2 of them to delight customers
and create competitive differentiation.
[with them, customers are more satisfied.]
[without them, no satisfaction decrease ]
Kano Model: When to use the Kano Model?
Determining Business Strategies
Competitive Analysis
Project Selection
New Product or Service Development
Kano Model: How to use the Kano Model?
1. Understand Customers Needs.
2. Process the Results
3. Analyze the Results
Kano Model: How to use the Kano Model?
1. Understand Customers Needs.
Ask users Question:
1. Surveys (Quantitative)
2. Interviews (Qualitative)
3. Focus Groups
4. Observations
5. Customer Complaints and Feedbacks
Kano Model: How to use the Kano Model?
1. Understand Customers Needs.
2 Questions about Features:
1. Functional Questions (+)
“How would you feel if the product had not
feature Y? “
2. Dysfunctional Questions (-)
“How would you feel if the product had feature
Y?”
5 Possible Answers:
1. I like it that way. (Like)
2. I expect it to be that way. (Must Be)
3. I am neutral. (Neutral)
4. I can live with it that way. (Live With)
5. I dislike it that way. (Dislike)
Kano Model: How to use the Kano Model?
2. Process the Results
Customer Requirement
Dysfunctional (Negative) Question
1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike
Functional
(Positive)
Question
1. Like Q A A A O
2. Must be R I I I M
3. Neutral R I I I M
4. Live with R I I I M
5. Dislike R R R R Q
One Dimensional (O)
Must-be (M)
Attractive (A)
Indifferent (I)
Reverse (R)
Questionable (Q)
There are 6 types of features based on the Kano Model.
Kano Model: How to use the Kano Model?
2. Process the Results
Customer Requirement
Dysfunctional (Negative) Question
1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike
Functional
(Positive)
Question
1. Like Q A A A O
2. Must be R I I I M
3. Neutral R I I I M
4. Live with R I I I M
5. Dislike R R R R Q
One Dimensional (O)
Must-be (M)
Attractive (A)
Indifferent (I)
Reverse (R)
Questionable (Q)
Category When feature is present When feature is absent
Reverse Dissatisfied Satisfied
Kano Model: How to use the Kano Model?
2. Process the Results
Customer Requirement
Dysfunctional (Negative) Question
1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike
Functional
(Positive)
Question
1. Like Q A A A O
2. Must be R I I I M
3. Neutral R I I I M
4. Live with R I I I M
5. Dislike R R R R Q
One Dimensional (O)
Must-be (M)
Attractive (A)
Indifferent (I)
Reverse (R)
Questionable (Q)
Category When feature is present When feature is absent
Indifferent No Feeling No Feeling
Kano Model: How to use the Kano Model?
2. Process the Results
Customer Requirement
Dysfunctional (Negative) Question
1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike
Functional
(Positive)
Question
1. Like Q A A A O
2. Must be R I I I M
3. Neutral R I I I M
4. Live with R I I I M
5. Dislike R R R R Q
One Dimensional (O)
Must-be (M)
Attractive (A)
Indifferent (I)
Reverse (R)
Questionable (Q)
Category When feature is present When feature is absent
Must be No Feeling Dissatisfied
Kano Model: How to use the Kano Model?
2. Process the Results
Customer Requirement
Dysfunctional (Negative) Question
1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike
Functional
(Positive)
Question
1. Like Q A A A O
2. Must be R I I I M
3. Neutral R I I I M
4. Live with R I I I M
5. Dislike R R R R Q
One Dimensional (O)
Must-be (M)
Attractive (A)
Indifferent (I)
Reverse (R)
Questionable (Q)
Category When feature is present When feature is absent
One Dimensional Satisfied Dissatisfied
Kano Model: How to use the Kano Model?
2. Process the Results
Customer Requirement
Dysfunctional (Negative) Question
1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike
Functional
(Positive)
Question
1. Like Q A A A O
2. Must be R I I I M
3. Neutral R I I I M
4. Live with R I I I M
5. Dislike R R R R Q
One Dimensional (O)
Must-be (M)
Attractive (A)
Indifferent (I)
Reverse (R)
Questionable (Q)
Category When feature is present When feature is absent
Questionable Rare Case: Question is phrase incorrectly or there is
a misunderstanding for customer.
Kano Model: How to use the Kano Model?
3. Analyze the Results
Prioritization
Must-be > One-Dimensional > Attractive > Unimportant
MVP
(Minimum Viable Product)
MDP
(Minimum Delightful Product)
RICE Scoring: Impact/Effort Model
RICE Scoring: History
Intercom (Messaging-software) developed the RICE
roadmap prioritization model to improve its own
internal decision-making processes.
Although the company’s product team knew about
and had used the many other prioritization models
for product managers, they struggled to find a
method that worked for Intercom’s unique set of
competing for project ideas.
To address this challenge, the team developed its
own scoring model based on four factors (reach,
impact, confidence, and effort), and a formula for
quantifying and combining them. This formula would
then output a single score that could be applied
consistently across even the most disparate types of
ideas, giving the team an objective way to determine
which initiatives to prioritize on their product
roadmap.
RICE Scoring: Reach, Impact, Confidence, & Effort
The RICE scoring model is a prioritization framework designed to help product managers determine which
products, features, and other initiatives to put on their roadmaps by scoring these items according to four
factors. These factors, which form the acronym RICE, are reach, impact, confidence, and effort.
RICE Scoring: Reach, Impact, Confidence, & Effort
Using a scoring model such as RICE can offer product
teams three benefits:
1. It can enable product managers to make better-
informed decisions.
2. Minimize personal biases in decision making.
3. Help them defend their priorities to other
stakeholders such as the executive staff.
RICE Scoring: Reach
The first factor in determining your RICE score is to get a
sense of how many people you estimate your initiative
will reach in a given timeframe.
You have to decide both what “reach” means in this
context and the timeframe over which you want to
measure it.
1. Choose a timeframe: a Quarter, a Month, or a Week
2. Decide on the customer action: transactions, free-
trial signups, or how many existing users try your new
feature.
Your Reach Score will be the number you’ve estimated.
Example:
- 150 new customers, next quarter = reach score is 150
- 1,200 new trial-download page, the next month, 30% of
those will sign up = reach score is 360.
RICE Scoring: Impact
Impact can reflect a quantitative goal, such as how many
new conversions for your project will result in when users
encounter it, or a more qualitative objective such as
increasing customer delight.
Measuring impact is difficult, because you won’t
necessarily be able to isolate your new feature as the
primary reason (or even a reason at all) for why your
users take action.
Five-tiered scoring system for estimating a
project/feature’s impact:
- Massive Impact = 3
- High Impact = 2
- Medium Impact = 1
- Low Impact = 0.5
- Minimal Impact = 0.25
RICE Scoring: Confidence
The confidence component of your RICE score helps you
control for features in which your team has data to
support one factor of your score but is relying more on
intuition for another factor.
For example, if you have data backing up your reach
estimate but your impact score represents more of a gut
feeling, your confidence score will help account for this.
When determining your confidence score for a given
project, your options are:
- High Confidence = 100%
- Medium Confidence = 80%
- Low Confidence = 50%
If you arrive at a confidence score below 50%, assume
your priorities need to be elsewhere.
RICE Scoring: Effort
Comparing to all other factors (Impact, Confidence, and
Reach), Effort has an reverse relation to all. (Benefits vs.
Costs)
In other words, if you think of RICE as a cost-benefit
analysis, the other three components are all potential
benefits while effort is the single score that represents
the costs.
To estimate it:
1. Estimate the total number of resources (product,
design, engineering, testing, etc.) needed to complete
the feature.
2. Decide about a period of time, like a Month
So, the final number will be in “person-months” and that
is your Effort score.
In other words, if you estimate a project will take a total of
three person-months, your effort score will be 3.
RICE Scoring: How is a RICE score calculated?
So, to quickly summarize the four factors:
- Reach: how many people will this impact?
- Impact: how much will this impact each person?
- Confidence: how confident are you in your estimates?
- Effort: how many “person-months” will this take?
Once you’ve estimated these factors, combine them into a single score so you can compare projects at a glance.
Here’s the simple formula:
RICE Scoring: How to use RICE scores?
The RICE score measures “total impact per time worked”
and we to maximize it.
So, what we need after calculation of the score of
features, we have to sort the list and re-evaluate them.
Are there projects/features where the score seems too
high or too low?
If so, reconsider your estimates and make changes, or
accept that your gut instinct may be wrong.
RICE can help immensely when deciding between hard-
to-compare ideas.
Product Management Tools: Prioritization and Business Plan
Lean Canvas: Why Lean Canvas?
Great Product Successful Business
Why?
Revenue is the Life-blood of business
(Paying Customers), not products.
So,
High-growth, investable businesses need a
Repeatable, Scalable Business Model.
Make Money > Create Value > Grow
Lean Canvas: Why Lean Canvas?
Startup:
“Temporary organization used to
search for a Repeatable and
Saleable Business Model.”
- Steve Blank
Goal:
Improve the chances of success
and reduce failure risks.
Process:
Start from Chaos to Order with a
Structured Thinking Model
Lean Canvas: What is Lean Canvas?
Lean Canvas = a 1-page business plan designed to find the best product-market fit (Problem-Solution Fit) in
Early-stage
Lean Canvas: What is a Lean Canvas?
1
3
6
2
7
4
1
6 5
Lean Canvas: Problem-Solution Fit
Q1: Do you have a problem worth Solving?
Q2: If yes, how to evaluate it?
Answer:
1. Make Solution and Problem Separate
2. Customer Discovery
Interviews with Potential Customers
about both Problem and Solution
Benefits:
1. Problem: Validate it “the Problem is worth Solving”
2. Product: Minimum Features to solve the Problem
Lean Canvas: 1. Problem-Customer Segments
1 1
List and Describe top 3 Problems for the
customer segments that you want to
reach.
List and Describe Existing Alternatives and
describe how you think Early Adopters are
solving their problems today.
Lean Canvas: Product-Market Fit
Q3: Am I Building something that people want?
Answer:
After having a problem worth solving and a
Solution, It’s time to learn from customers and
the quality of your solution.
In this process you will discover:
1. Your Unique Value Proposition(UVP) to customers
2. Distribution and Marketing Channels
3. Key Metrics
UVP is a bundle of benefits, from a customer’s
perspective which summarize why Customers want
your product.
Lean Canvas: Unique Value Proposition
- Thinking about Value Propositions allows you to think from other
people’s perspectives and understand their whys and learn about
what you must do or modify about your business or product
based on the people who will buy and use your product.
- Early assumptions are almost always wrong!!
- How to write about UVP?
1. Translate your offering features into customers benefits (How
you are going to solve their problems?)
2. Value Propositions are influenced by Customer Segments
and Competition.
3. Focus on the Customer and Their Story after using your
product
4. Target Early Adopters: Go-to Market Strategy
5. Answer: What? Who? Why?
6. Details Matter!! Be Different and be sure that also matters!
7. Try to Describe your product in a right concept as a High-
level concept. Like, Airbnb: Uber of Hotels
2
Lean Canvas: Solution
Q3: How you are going to solve customers problem?
Answer:
Let’s describe my product.
You need to describe:
1. What is your solution.
2. What are the features of your product.
Lean Canvas: Solution
- Be Aware about you hypotheses and assumptions. They are
untested.
- Avoid too much details. Don’t be carried away with fully defining
your solutions.
- Bind a solution to your problem. 3
Lean Canvas: Channels
Q4: How you are going to reach your customers?
Answer:
People Must know about it.
You need to describe:
1. How you are going to communicate your solution’s
benefits to your customers.
2. How you are going to sell your product.
3. How you are going to distribute you product.
Lean Canvas: Channels
There are four types of channels:
- Communication
- Distribution
- Sales
- After Sales Services and Support
Free vs. Paid
- SEO, Content(Blog & Newsletter), and Social Media are Free.
- Public Relations, Advertisements, Sponsorships are paid.
Push vs. Pull Messaging
Pull: Customers find you > Blog, SEO, Webinars
Push: You reach Customers > Advertisement, Trade Shows
First, Test the lowest hanging fruit: Easy, but Higher ROI.
In Early Stages, Avoid Partnerships. You need a proven product. So,
Sell yourself, then let others sell on behalf of you.
4
Lean Canvas: Revenue Streams and Cost Structure
Q5: How you are planning to create Revenue and Spent it?
Answer:
Financial Planning.
You need to describe:
1. How you are going to make decisions about “Pricing” of
you product.
2. What are you costs and how they consume money.
Lean Canvas: Revenue Streams and Cost Structure
5
5
Cost Structure
- Be cautious about Costs!
- Costs consume your money and revenue.
- Salaries, Infrastructure, Rent, and Marketing are
costs that you need to manage them all them
times.
- Create Budget Plans and avoid being Optimist.
Revenue Streams
- Price is Everything.
- Service vs. Product
- Competition vs. Monopoly(First-Mover)
- Freemium is an option, but not for all.
- Be a Real Pessimist.
Lean Canvas: Key Metrics
Q6: How you are going to measure your Progress?
Answer:
Indicators can let us know about our progress.
You need to describe:
1. What are your key activities that will drive usage of your
product.
2. How you are going to measure them with related
indicators.
Lean Canvas: Key Metrics
6
The Goal is to measure success with the right indicators.
Indicators must provide useful insight and allow us to take actions in short-time.
Types:
- Qualitative: Usability Testing, Session Monitoring
- Quantitative: Traffic Analysis, User Engagement
- Comparative: A/B Testing, Multivariate Testing
- Competitive: Monitoring and Tracking Competitors
Examples:
- Customer Acquisition in a Week: users visited to the site from various
channels
- Activated Users in a Month: Users enjoy their first Visit
- Monthly Recurrent Revenue: Paid users
Lean Canvas: Unfair Advantage
Q7: What can make a winner in competition?
Answer:
Something that cannot be easily copied or bought.
You need to describe:
1. What exactly is your advantage that cannot be achieved
by you competitors, real or potential.
2. It is a real thing.
Lean Canvas: Unfair Advantage
7
The hardest section to fill.
Jason Cohen: “A real unfair advantage is something that cannot be easily copied or
bought.”
Examples:
- A Partnership
- High SEO Rank
- Existing Customer Base
- Experienced Team
- Patents and Copyrights
Lean Canvas: Conclusion
Use Lean Canvas in a repeated times and
adjust your product and business based on
changes in the market and industry.
Product Management Tools: Prioritization and Business Plan
Business Plan: What Is a Business Plan?
A business plan is a written document that
describes in detail how a business—usually
a startup—defines its objectives and how it is
to go about achieving its goals.
Business Plan: What Is a Business Plan?
A business plan lays out a written roadmap for the firm
from marketing, financial, and operational goals.
A business plan includes 7 main Section:
1. Introduction (Executive Summary)
2. Team and Advisors
3. Products and Services
4. Market Study and Analysis
5. Competition Study and Analysis
6. Marketing Strategy
7. Financial Planning & Budgeting
Business Plan: Introduction (Executive Summary)
This section outlines the company/startup and includes
the mission statement along with any information about
the company's leadership, employees, operations, and
location.
This section is for people who are busy and need to
understand what this report is about, then decide to read it
or delegate its reading to the right person. So, be sure to
make it as concise as possible and clear.
Business Plan: Team and Advisors
For startups in their early days, when they don’t have a
market tested product, a team is everything that investors
and early customers are investing in them. So, providing
information about the team and the network of their
advisors can be beneficial for investors to have a better
understanding from the team.
On the other side, companies with a proven record of
achievements and product portfolios, their leadership team,
C-levels, directors, members of the board, and senior
managers can create a better picture about the direction of
the company and its projection.
Be aware that this information is a presentation of your
team. So, add relevant information that demonstrates its
capabilities and potentials.
Business Plan: Products and services
In this section, the company/startup can outline the
products and services it will offer, and may also include
pricing, product lifespan, roadmaps, and benefits to the
consumer. Other factors that may go into this section
include production and manufacturing processes,
any patents the company may have, as well as proprietary
technology. Any information about research and
development (R&D) can also be included here.
Business Plan: Products and services (Product Roadmap)
A product roadmap is a high-level visual summary that
maps out the vision and direction of your product offering
over time.
A product roadmap communicates the why and what
behind what you’re building.
A roadmap is a guiding strategic document as well as
a plan for executing the product strategy.
The product roadmap has several goals:
- Describe the vision and strategy
- Provide a guiding document for executing the
strategy
- Get internal stakeholders in alignment
- Facilitate discussion of options and scenario
planning
Roadmaps are so important for high-level decision
makings. Make sure that you include both long-term and
short-term goals at the same time. Stories always work.
Business Plan: Market Study and Analysis
A key part of any business plan is market study and
analysis. This section needs to demonstrate both your
expertise in your particular market and the attractiveness.
A market study and analysis is a quantitative and
qualitative assessment of a market. It looks into the size
of the market both in volume and in value, the various
customer segments and buying patterns, the
competition, and the economic environment in terms of
barriers to entry and regulation.
The objectives of the market analysis section of a business
plan are to show to investors that:
- You know your market
- The market is large enough to build a sustainable
business.
In order to do that I recommend the following plan:
Demographics and Segmentation
Business Plan: Market Study and Analysis
To conduct a through study from a market, you need to
include the following topics in your study and analysis:
- Demographics and Segmentation
- Target Market
- Market Need
- Competition
- Barriers to Entry
- Regulation
Business Plan: Competition Study and Analysis
The Competition Analysis section of your business plan is
devoted to analyzing your competition(both your current
competition and potential competitors who might enter
your market).
Every business has competition.
Understanding the strengths and weaknesses of your
competition(or potential competition) is critical to making
sure your business survives and grows.
In this process you need to follow a process that includes:
1. Creating a profile for current competitors
2. Identifying potential competitors
3. Finding Primary/Secondary Competitors
4. Outlining Opportunities and Risks
5. Researching about Barriers to Entry and Supplier’s
Negotiation Power
6. Researching threats of substitute products
Business Plan: Marketing strategy
This section describes how the company will attract and
keep its customer base and how it intends to reach the
consumer.
This means a clear distribution channel must be outlined.
It will also spell out advertising and marketing campaign
plans and through what types of media those campaigns
will exist on.
The marketing strategy section builds upon the market
analysis section. The marketing strategy outlines where
your business fits into the market and how you will price,
promote, and sell your product or service. It can also act as
a source of important information for potential investors
who are analyzing your business.
The 4 Ps
You can break down the key information in the marketing
strategy section using the 4 Ps of marketing concept.
Business Plan: Marketing strategy (4Ps: Product & Promotion)
Product: Product refers to either a physical product or a
service. Some of the product areas that should be included
in this section are:
- Brand name
- Related products or services
- Functionality
- Packaging
- Quality
- Warranty
Promotion: This part covers the various aspects of how
you plan on marketing your product or service. The areas
you will need to address include:
- Advertising
- Marketing budget
- Promotional strategy
- Publicity and public relations
- Sales force
- Sales promotion
Business Plan: Marketing strategy (4Ps: Price & Place)
Price: This part addresses the way you plan on pricing
your product or service. The aspects of pricing you will
need to address are:
- Bundling
- Pricing flexibility
- Pricing strategy
- Retail price
- Seasonal price
- Wholesale (volume) price
Place: Also known as Distribution, this part is all about the
delivery of your product or service to your customer. Here
are the areas you will need to cover:
- Distribution centers
- Distribution channels
- Inventory management
- Logistics
- Order processing
- Transportation
- Warehousing
Business Plan: Financial planning & Budgeting
Financial Planning: The company/Startup should include
its financial planning and future projections.
Financial statements, balance sheets, and other financial
information may be included for already-established
companies. Startups will instead include targets and
estimates for the first few years of the business and any
potential investors and their investments needed.
Budgeting: Any company/startup needs to have a budget
plan. This includes costs related to staffing, development,
manufacturing, marketing, and any other expenses related
to the business. This plan is based in the earlier
information provided in the business plan and their effects
must be demonstrated in this section in numbers.

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Product Management Tools: Prioritization and Business Plan

  • 2. Persona Creation 1 Kano Model 2 RICE Scoring 3 Lean Canvas 4 Business Plan 5 Product Management Tools
  • 4. Persona Creation: What Is a Persona? Persona is a profile of a product’s typical customer. Persona helps Product Managers and other people to understand customers’: 1. Key traits 2. Behaviors 3. Goals 4. Responsibilities 5. Needs of a specific type of user.
  • 5. Persona Creation: Why Are Personas Important? Businesses build products to solve specific problems for specific groups of people in specific aspects of their lives. So, It requires a thorough understanding of those groups: 1. what motivates them? 2. what challenges they face? 3. what goals they have? 4. how they view themselves? 5. what types of messages they find persuasive (and which ones they find off-putting), etc. One of the first steps in building any successful product is to learn about the people who will eventually represent its target buyer or user.
  • 6. Persona Creation: What Details Matter When Building a Persona? Personas can include many different types of personal and professional detail about the individual, and the specific details you choose to focus on will depend on the type of product.
  • 7. Persona Creation: What Details Matter When Building a Persona? Age, geographic location, and education level
  • 8. Persona Creation: What Details Matter When Building a Persona? Socioeconomic status
  • 9. Persona Creation: What Details Matter When Building a Persona? Goals and dreams for their professional or personal life
  • 10. Persona Creation: What Details Matter When Building a Persona? Challenges, frustrations, and fears
  • 11. Persona Creation: What Details Matter When Building a Persona? The person’s potential biases for or against your product and company
  • 12. Persona Creation: What Details Matter When Building a Persona? How the person deals with the problem today that your product plans to solve?
  • 13. Persona Creation: What Details Matter When Building a Persona? What the person will need from your product to deem it worthwhile?
  • 14. Persona Creation: What Are the Different Types of Personas? Product managers and marketing professionals often document various personas for their products. Doing so helps these companies better understand how to meet the needs of the several different audiences they are targeting. In Consumers products and Goods that the end-user are customers (B2C), the product department might create several versions of its flagship product for different Markets: - Affordable - Mass-market - Exclusive In a B2B business, the sale of the company’s product will often involve several people in the customer’s organization: - The end-user of the product - Executives or other Decision-maker - The person tasked with actually purchasing the product.
  • 15. Persona Creation: Customer Persona The customer persona is a comprehensive term to describe your product’s main persona. B2C For a consumer-oriented product, the user is the Customer and the Customer persona refers to that. B2B For a business that sells products to other businesses, a customer persona could represent either the user or the buyer personas.
  • 16. Persona Creation: User Persona A user persona is a composite biography drafted based on market research and experience to describe the relevant characteristics, needs, and goals of the people who will be using a product. B2C For a consumer-oriented product, the user persona will also typically be the buyer, so these two aspects of the person’s profile can be combined. S B2B For a product sold to businesses, however, the individual or team deciding to purchase the product for the company will often be different from the person who uses the product once the company buys it. For these situations, the product team will need to develop a separate buyer persona.
  • 17. Persona Creation: Buyer Persona B2B The buyer persona is a central figure in a B2B organization. Often, this person will have a say in the purchasing process. A buyer persona can represent several influencers and decision-makers within a company, who might not even use the product themselves. The buyers will, however, have different needs, challenges, goals, and fears from the user persona. They might, for example, be equally concerned with protecting the company’s budget as with finding the right solution to help the user persona improve their job.
  • 18. Persona Creation: Decision-Maker Persona B2B Whereas a buyer persona can represent several people in an organization who might participate in the decision- making process, the decision-maker is typically a more- narrow persona—often an executive at the company, like CEO. This type focuses on the big picture aspects of the decision: - Will it improve the company’s Income? - Will it reduce the company’s Costs? - Will it increase the company’s efficiency? - Does it cost more than the business should spend? - Can we develop it in-house? Product and marketing teams selling into businesses will need to build the product and develop the messaging in such a way to appeal to these concerns of the decision- maker persona.
  • 19. Persona Creation: How Do I Create a Persona? Practice #1: Create the user persona first You should develop these profiles before doing any strategic planning for the product. They should come even before you draft the product’s vision. survey.
  • 20. Persona Creation: How Do I Create a Persona? Practice #2: Build your profile based on real people Effective personas aren’t written from guesswork. You need to interview real people who represent the target audience for your product. Another option is to send out surveys to this segment. The more real-world details you can include, the more helpful it will be.
  • 21. Persona Creation: How Do I Create a Persona? Practice #3: Use both quantitative and qualitative research Strike the right balance between using aggregate data and anecdotal evidence to develop your customer profiles. Your personas will be as realistic as possible when you pull from market research and the personal stories of the people you speak with or survey.
  • 23. Kano Model: Dr. Noriaki Kano Dr. Noriaki Kano invented the Kano Model. Kano Model is a Quality Measurement Tool to prioritize customer satisfaction. Kano Model challenges the traditional belief, More is Better.
  • 24. Kano Model: What is the Kano Model? Customers needs change by time. 1. How can companies analyze customers needs? 2. What delights customers? 3. What are their basic needs? The Kano Model This model analyzes and addresses customers needs in three types of customer requirements:
  • 25. Kano Model: What is the Kano Model? Satisfying Basic Needs Satisfying Performance Needs Satisfying Excitement Needs Enables Companies to get into their marker Sustains companies competitiveness Makes companies to excel and be World Class
  • 26. Kano Model: What is the Kano Model? Must-be requirements Taken for granted • Implied • Self-evident • Not expresses • Obvious One Dimensional Requirements [Linear] More is Better [Stated] • Articulated • Specified • Measurable • Technical Attractive Requirements [Exponential] Not Expected [Unspoken] • Not Expresses • Customer Tailored • Causes Customer Delight 3 2 1
  • 27. Kano Model: What is the Kano Model? Must-be requirements Taken for granted • Implied • Self-evident • Not expresses • Obvious One Dimensional Requirements More is Better [Stated] • Articulated • Specified • Measurable • Technical Attractive Requirements Not Expected [Unspoken] • Not Expresses • Customer Tailored • Causes Customer Delight 1 2 3 Include them All in the product. Expected by Customers. No other Choice [without them, customers become dissatisfied] Choose the right set at the right level to ensure an attractive and competitive product. [with them, customer satisfaction is enhanced] Choose only 1 or 2 of them to delight customers and create competitive differentiation. [with them, customers are more satisfied.] [without them, no satisfaction decrease ]
  • 28. Kano Model: When to use the Kano Model? Determining Business Strategies Competitive Analysis Project Selection New Product or Service Development
  • 29. Kano Model: How to use the Kano Model? 1. Understand Customers Needs. 2. Process the Results 3. Analyze the Results
  • 30. Kano Model: How to use the Kano Model? 1. Understand Customers Needs. Ask users Question: 1. Surveys (Quantitative) 2. Interviews (Qualitative) 3. Focus Groups 4. Observations 5. Customer Complaints and Feedbacks
  • 31. Kano Model: How to use the Kano Model? 1. Understand Customers Needs. 2 Questions about Features: 1. Functional Questions (+) “How would you feel if the product had not feature Y? “ 2. Dysfunctional Questions (-) “How would you feel if the product had feature Y?” 5 Possible Answers: 1. I like it that way. (Like) 2. I expect it to be that way. (Must Be) 3. I am neutral. (Neutral) 4. I can live with it that way. (Live With) 5. I dislike it that way. (Dislike)
  • 32. Kano Model: How to use the Kano Model? 2. Process the Results Customer Requirement Dysfunctional (Negative) Question 1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike Functional (Positive) Question 1. Like Q A A A O 2. Must be R I I I M 3. Neutral R I I I M 4. Live with R I I I M 5. Dislike R R R R Q One Dimensional (O) Must-be (M) Attractive (A) Indifferent (I) Reverse (R) Questionable (Q) There are 6 types of features based on the Kano Model.
  • 33. Kano Model: How to use the Kano Model? 2. Process the Results Customer Requirement Dysfunctional (Negative) Question 1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike Functional (Positive) Question 1. Like Q A A A O 2. Must be R I I I M 3. Neutral R I I I M 4. Live with R I I I M 5. Dislike R R R R Q One Dimensional (O) Must-be (M) Attractive (A) Indifferent (I) Reverse (R) Questionable (Q) Category When feature is present When feature is absent Reverse Dissatisfied Satisfied
  • 34. Kano Model: How to use the Kano Model? 2. Process the Results Customer Requirement Dysfunctional (Negative) Question 1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike Functional (Positive) Question 1. Like Q A A A O 2. Must be R I I I M 3. Neutral R I I I M 4. Live with R I I I M 5. Dislike R R R R Q One Dimensional (O) Must-be (M) Attractive (A) Indifferent (I) Reverse (R) Questionable (Q) Category When feature is present When feature is absent Indifferent No Feeling No Feeling
  • 35. Kano Model: How to use the Kano Model? 2. Process the Results Customer Requirement Dysfunctional (Negative) Question 1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike Functional (Positive) Question 1. Like Q A A A O 2. Must be R I I I M 3. Neutral R I I I M 4. Live with R I I I M 5. Dislike R R R R Q One Dimensional (O) Must-be (M) Attractive (A) Indifferent (I) Reverse (R) Questionable (Q) Category When feature is present When feature is absent Must be No Feeling Dissatisfied
  • 36. Kano Model: How to use the Kano Model? 2. Process the Results Customer Requirement Dysfunctional (Negative) Question 1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike Functional (Positive) Question 1. Like Q A A A O 2. Must be R I I I M 3. Neutral R I I I M 4. Live with R I I I M 5. Dislike R R R R Q One Dimensional (O) Must-be (M) Attractive (A) Indifferent (I) Reverse (R) Questionable (Q) Category When feature is present When feature is absent One Dimensional Satisfied Dissatisfied
  • 37. Kano Model: How to use the Kano Model? 2. Process the Results Customer Requirement Dysfunctional (Negative) Question 1. Like 2. Must be 3. Neutral 4. Live with 5. Dislike Functional (Positive) Question 1. Like Q A A A O 2. Must be R I I I M 3. Neutral R I I I M 4. Live with R I I I M 5. Dislike R R R R Q One Dimensional (O) Must-be (M) Attractive (A) Indifferent (I) Reverse (R) Questionable (Q) Category When feature is present When feature is absent Questionable Rare Case: Question is phrase incorrectly or there is a misunderstanding for customer.
  • 38. Kano Model: How to use the Kano Model? 3. Analyze the Results Prioritization Must-be > One-Dimensional > Attractive > Unimportant MVP (Minimum Viable Product) MDP (Minimum Delightful Product)
  • 40. RICE Scoring: History Intercom (Messaging-software) developed the RICE roadmap prioritization model to improve its own internal decision-making processes. Although the company’s product team knew about and had used the many other prioritization models for product managers, they struggled to find a method that worked for Intercom’s unique set of competing for project ideas. To address this challenge, the team developed its own scoring model based on four factors (reach, impact, confidence, and effort), and a formula for quantifying and combining them. This formula would then output a single score that could be applied consistently across even the most disparate types of ideas, giving the team an objective way to determine which initiatives to prioritize on their product roadmap.
  • 41. RICE Scoring: Reach, Impact, Confidence, & Effort The RICE scoring model is a prioritization framework designed to help product managers determine which products, features, and other initiatives to put on their roadmaps by scoring these items according to four factors. These factors, which form the acronym RICE, are reach, impact, confidence, and effort.
  • 42. RICE Scoring: Reach, Impact, Confidence, & Effort Using a scoring model such as RICE can offer product teams three benefits: 1. It can enable product managers to make better- informed decisions. 2. Minimize personal biases in decision making. 3. Help them defend their priorities to other stakeholders such as the executive staff.
  • 43. RICE Scoring: Reach The first factor in determining your RICE score is to get a sense of how many people you estimate your initiative will reach in a given timeframe. You have to decide both what “reach” means in this context and the timeframe over which you want to measure it. 1. Choose a timeframe: a Quarter, a Month, or a Week 2. Decide on the customer action: transactions, free- trial signups, or how many existing users try your new feature. Your Reach Score will be the number you’ve estimated. Example: - 150 new customers, next quarter = reach score is 150 - 1,200 new trial-download page, the next month, 30% of those will sign up = reach score is 360.
  • 44. RICE Scoring: Impact Impact can reflect a quantitative goal, such as how many new conversions for your project will result in when users encounter it, or a more qualitative objective such as increasing customer delight. Measuring impact is difficult, because you won’t necessarily be able to isolate your new feature as the primary reason (or even a reason at all) for why your users take action. Five-tiered scoring system for estimating a project/feature’s impact: - Massive Impact = 3 - High Impact = 2 - Medium Impact = 1 - Low Impact = 0.5 - Minimal Impact = 0.25
  • 45. RICE Scoring: Confidence The confidence component of your RICE score helps you control for features in which your team has data to support one factor of your score but is relying more on intuition for another factor. For example, if you have data backing up your reach estimate but your impact score represents more of a gut feeling, your confidence score will help account for this. When determining your confidence score for a given project, your options are: - High Confidence = 100% - Medium Confidence = 80% - Low Confidence = 50% If you arrive at a confidence score below 50%, assume your priorities need to be elsewhere.
  • 46. RICE Scoring: Effort Comparing to all other factors (Impact, Confidence, and Reach), Effort has an reverse relation to all. (Benefits vs. Costs) In other words, if you think of RICE as a cost-benefit analysis, the other three components are all potential benefits while effort is the single score that represents the costs. To estimate it: 1. Estimate the total number of resources (product, design, engineering, testing, etc.) needed to complete the feature. 2. Decide about a period of time, like a Month So, the final number will be in “person-months” and that is your Effort score. In other words, if you estimate a project will take a total of three person-months, your effort score will be 3.
  • 47. RICE Scoring: How is a RICE score calculated? So, to quickly summarize the four factors: - Reach: how many people will this impact? - Impact: how much will this impact each person? - Confidence: how confident are you in your estimates? - Effort: how many “person-months” will this take? Once you’ve estimated these factors, combine them into a single score so you can compare projects at a glance. Here’s the simple formula:
  • 48. RICE Scoring: How to use RICE scores? The RICE score measures “total impact per time worked” and we to maximize it. So, what we need after calculation of the score of features, we have to sort the list and re-evaluate them. Are there projects/features where the score seems too high or too low? If so, reconsider your estimates and make changes, or accept that your gut instinct may be wrong. RICE can help immensely when deciding between hard- to-compare ideas.
  • 50. Lean Canvas: Why Lean Canvas? Great Product Successful Business Why? Revenue is the Life-blood of business (Paying Customers), not products. So, High-growth, investable businesses need a Repeatable, Scalable Business Model. Make Money > Create Value > Grow
  • 51. Lean Canvas: Why Lean Canvas? Startup: “Temporary organization used to search for a Repeatable and Saleable Business Model.” - Steve Blank Goal: Improve the chances of success and reduce failure risks. Process: Start from Chaos to Order with a Structured Thinking Model
  • 52. Lean Canvas: What is Lean Canvas? Lean Canvas = a 1-page business plan designed to find the best product-market fit (Problem-Solution Fit) in Early-stage
  • 53. Lean Canvas: What is a Lean Canvas? 1 3 6 2 7 4 1 6 5
  • 54. Lean Canvas: Problem-Solution Fit Q1: Do you have a problem worth Solving? Q2: If yes, how to evaluate it? Answer: 1. Make Solution and Problem Separate 2. Customer Discovery Interviews with Potential Customers about both Problem and Solution Benefits: 1. Problem: Validate it “the Problem is worth Solving” 2. Product: Minimum Features to solve the Problem
  • 55. Lean Canvas: 1. Problem-Customer Segments 1 1 List and Describe top 3 Problems for the customer segments that you want to reach. List and Describe Existing Alternatives and describe how you think Early Adopters are solving their problems today.
  • 56. Lean Canvas: Product-Market Fit Q3: Am I Building something that people want? Answer: After having a problem worth solving and a Solution, It’s time to learn from customers and the quality of your solution. In this process you will discover: 1. Your Unique Value Proposition(UVP) to customers 2. Distribution and Marketing Channels 3. Key Metrics UVP is a bundle of benefits, from a customer’s perspective which summarize why Customers want your product.
  • 57. Lean Canvas: Unique Value Proposition - Thinking about Value Propositions allows you to think from other people’s perspectives and understand their whys and learn about what you must do or modify about your business or product based on the people who will buy and use your product. - Early assumptions are almost always wrong!! - How to write about UVP? 1. Translate your offering features into customers benefits (How you are going to solve their problems?) 2. Value Propositions are influenced by Customer Segments and Competition. 3. Focus on the Customer and Their Story after using your product 4. Target Early Adopters: Go-to Market Strategy 5. Answer: What? Who? Why? 6. Details Matter!! Be Different and be sure that also matters! 7. Try to Describe your product in a right concept as a High- level concept. Like, Airbnb: Uber of Hotels 2
  • 58. Lean Canvas: Solution Q3: How you are going to solve customers problem? Answer: Let’s describe my product. You need to describe: 1. What is your solution. 2. What are the features of your product.
  • 59. Lean Canvas: Solution - Be Aware about you hypotheses and assumptions. They are untested. - Avoid too much details. Don’t be carried away with fully defining your solutions. - Bind a solution to your problem. 3
  • 60. Lean Canvas: Channels Q4: How you are going to reach your customers? Answer: People Must know about it. You need to describe: 1. How you are going to communicate your solution’s benefits to your customers. 2. How you are going to sell your product. 3. How you are going to distribute you product.
  • 61. Lean Canvas: Channels There are four types of channels: - Communication - Distribution - Sales - After Sales Services and Support Free vs. Paid - SEO, Content(Blog & Newsletter), and Social Media are Free. - Public Relations, Advertisements, Sponsorships are paid. Push vs. Pull Messaging Pull: Customers find you > Blog, SEO, Webinars Push: You reach Customers > Advertisement, Trade Shows First, Test the lowest hanging fruit: Easy, but Higher ROI. In Early Stages, Avoid Partnerships. You need a proven product. So, Sell yourself, then let others sell on behalf of you. 4
  • 62. Lean Canvas: Revenue Streams and Cost Structure Q5: How you are planning to create Revenue and Spent it? Answer: Financial Planning. You need to describe: 1. How you are going to make decisions about “Pricing” of you product. 2. What are you costs and how they consume money.
  • 63. Lean Canvas: Revenue Streams and Cost Structure 5 5 Cost Structure - Be cautious about Costs! - Costs consume your money and revenue. - Salaries, Infrastructure, Rent, and Marketing are costs that you need to manage them all them times. - Create Budget Plans and avoid being Optimist. Revenue Streams - Price is Everything. - Service vs. Product - Competition vs. Monopoly(First-Mover) - Freemium is an option, but not for all. - Be a Real Pessimist.
  • 64. Lean Canvas: Key Metrics Q6: How you are going to measure your Progress? Answer: Indicators can let us know about our progress. You need to describe: 1. What are your key activities that will drive usage of your product. 2. How you are going to measure them with related indicators.
  • 65. Lean Canvas: Key Metrics 6 The Goal is to measure success with the right indicators. Indicators must provide useful insight and allow us to take actions in short-time. Types: - Qualitative: Usability Testing, Session Monitoring - Quantitative: Traffic Analysis, User Engagement - Comparative: A/B Testing, Multivariate Testing - Competitive: Monitoring and Tracking Competitors Examples: - Customer Acquisition in a Week: users visited to the site from various channels - Activated Users in a Month: Users enjoy their first Visit - Monthly Recurrent Revenue: Paid users
  • 66. Lean Canvas: Unfair Advantage Q7: What can make a winner in competition? Answer: Something that cannot be easily copied or bought. You need to describe: 1. What exactly is your advantage that cannot be achieved by you competitors, real or potential. 2. It is a real thing.
  • 67. Lean Canvas: Unfair Advantage 7 The hardest section to fill. Jason Cohen: “A real unfair advantage is something that cannot be easily copied or bought.” Examples: - A Partnership - High SEO Rank - Existing Customer Base - Experienced Team - Patents and Copyrights
  • 68. Lean Canvas: Conclusion Use Lean Canvas in a repeated times and adjust your product and business based on changes in the market and industry.
  • 70. Business Plan: What Is a Business Plan? A business plan is a written document that describes in detail how a business—usually a startup—defines its objectives and how it is to go about achieving its goals.
  • 71. Business Plan: What Is a Business Plan? A business plan lays out a written roadmap for the firm from marketing, financial, and operational goals. A business plan includes 7 main Section: 1. Introduction (Executive Summary) 2. Team and Advisors 3. Products and Services 4. Market Study and Analysis 5. Competition Study and Analysis 6. Marketing Strategy 7. Financial Planning & Budgeting
  • 72. Business Plan: Introduction (Executive Summary) This section outlines the company/startup and includes the mission statement along with any information about the company's leadership, employees, operations, and location. This section is for people who are busy and need to understand what this report is about, then decide to read it or delegate its reading to the right person. So, be sure to make it as concise as possible and clear.
  • 73. Business Plan: Team and Advisors For startups in their early days, when they don’t have a market tested product, a team is everything that investors and early customers are investing in them. So, providing information about the team and the network of their advisors can be beneficial for investors to have a better understanding from the team. On the other side, companies with a proven record of achievements and product portfolios, their leadership team, C-levels, directors, members of the board, and senior managers can create a better picture about the direction of the company and its projection. Be aware that this information is a presentation of your team. So, add relevant information that demonstrates its capabilities and potentials.
  • 74. Business Plan: Products and services In this section, the company/startup can outline the products and services it will offer, and may also include pricing, product lifespan, roadmaps, and benefits to the consumer. Other factors that may go into this section include production and manufacturing processes, any patents the company may have, as well as proprietary technology. Any information about research and development (R&D) can also be included here.
  • 75. Business Plan: Products and services (Product Roadmap) A product roadmap is a high-level visual summary that maps out the vision and direction of your product offering over time. A product roadmap communicates the why and what behind what you’re building. A roadmap is a guiding strategic document as well as a plan for executing the product strategy. The product roadmap has several goals: - Describe the vision and strategy - Provide a guiding document for executing the strategy - Get internal stakeholders in alignment - Facilitate discussion of options and scenario planning Roadmaps are so important for high-level decision makings. Make sure that you include both long-term and short-term goals at the same time. Stories always work.
  • 76. Business Plan: Market Study and Analysis A key part of any business plan is market study and analysis. This section needs to demonstrate both your expertise in your particular market and the attractiveness. A market study and analysis is a quantitative and qualitative assessment of a market. It looks into the size of the market both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation. The objectives of the market analysis section of a business plan are to show to investors that: - You know your market - The market is large enough to build a sustainable business. In order to do that I recommend the following plan: Demographics and Segmentation
  • 77. Business Plan: Market Study and Analysis To conduct a through study from a market, you need to include the following topics in your study and analysis: - Demographics and Segmentation - Target Market - Market Need - Competition - Barriers to Entry - Regulation
  • 78. Business Plan: Competition Study and Analysis The Competition Analysis section of your business plan is devoted to analyzing your competition(both your current competition and potential competitors who might enter your market). Every business has competition. Understanding the strengths and weaknesses of your competition(or potential competition) is critical to making sure your business survives and grows. In this process you need to follow a process that includes: 1. Creating a profile for current competitors 2. Identifying potential competitors 3. Finding Primary/Secondary Competitors 4. Outlining Opportunities and Risks 5. Researching about Barriers to Entry and Supplier’s Negotiation Power 6. Researching threats of substitute products
  • 79. Business Plan: Marketing strategy This section describes how the company will attract and keep its customer base and how it intends to reach the consumer. This means a clear distribution channel must be outlined. It will also spell out advertising and marketing campaign plans and through what types of media those campaigns will exist on. The marketing strategy section builds upon the market analysis section. The marketing strategy outlines where your business fits into the market and how you will price, promote, and sell your product or service. It can also act as a source of important information for potential investors who are analyzing your business. The 4 Ps You can break down the key information in the marketing strategy section using the 4 Ps of marketing concept.
  • 80. Business Plan: Marketing strategy (4Ps: Product & Promotion) Product: Product refers to either a physical product or a service. Some of the product areas that should be included in this section are: - Brand name - Related products or services - Functionality - Packaging - Quality - Warranty Promotion: This part covers the various aspects of how you plan on marketing your product or service. The areas you will need to address include: - Advertising - Marketing budget - Promotional strategy - Publicity and public relations - Sales force - Sales promotion
  • 81. Business Plan: Marketing strategy (4Ps: Price & Place) Price: This part addresses the way you plan on pricing your product or service. The aspects of pricing you will need to address are: - Bundling - Pricing flexibility - Pricing strategy - Retail price - Seasonal price - Wholesale (volume) price Place: Also known as Distribution, this part is all about the delivery of your product or service to your customer. Here are the areas you will need to cover: - Distribution centers - Distribution channels - Inventory management - Logistics - Order processing - Transportation - Warehousing
  • 82. Business Plan: Financial planning & Budgeting Financial Planning: The company/Startup should include its financial planning and future projections. Financial statements, balance sheets, and other financial information may be included for already-established companies. Startups will instead include targets and estimates for the first few years of the business and any potential investors and their investments needed. Budgeting: Any company/startup needs to have a budget plan. This includes costs related to staffing, development, manufacturing, marketing, and any other expenses related to the business. This plan is based in the earlier information provided in the business plan and their effects must be demonstrated in this section in numbers.