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Business Foundation
Market & Competition
Customer segmentation
01
02
03
04
About me
Value proposition & Positioning
05 Marketing & Sales Channels
Competitive advantage06
Exercise07
01 About me
Kristijonas Žibutis - Linkedin
Match My Thesis, Pictura API
50+ Countries
Copenhagen Business School, DK
Karate, Marathon, Ironman
Education
Business
Sports
Travel
Any Business: For whom
you sell what and how?
Whom - Market & Segment
What - Value Prop. & Prod.
How - Channels
Market &
Nich
Billion dollar
question
• Is there a market?
• How big is the market?
• Is it a new market or established?
• Are there competitors? How many?
• Is it easy to enter a market?
Good
Business e.g.
Value proposition &
Positioning
Value Proposition
=
Solved problem
02
• What problem am I solving?
• How much this problem cost to solve?
• Is it a pain killer or a vitamin?
• Where does my customer see a value?
Porter’s Generic Strategies
Case E.g.
Match My Thesis -
Positioning
Customer
Segmentation
Segmentation
• B2B vs B2C
• Classical segmentation
• B2B: Company size, industry, etc.
• Demographics - Age, Sex, Edu, Income
• Non-classical segmentation
• Preferences, Interests, Tastes, etc.
Which clients brings the most money?
What places they visit?
Ideal Customer Profile (ICP)
What common do they have?
The more details the better
What do they read?
Case E.g.
Match My Thesis -
Customer segments
Hack - Tip
Focus on a
segment with
large and well-
linked
communities if
possible
Marketing &
Sales
Channels
Sales Channels
Distributor
e-shop
Retail
Door-to-door
Direct Sale
• Airbnb
• Hilton
What are the channels of:
• Hilton
• Airbnb
Website
Website
What are the sales
channels of:
booking.com
On-premise
Direct sales
B2C
B2B
Direct sales
B2B
B2C
Marketing Channels
Radio
Online
TV
Print
Obvious: Google / Facebook /
Ebay / Amazon / Etsy
Offline
Less Obvious: Growth Hacking
Growth Hacking
02
• Instagram: share image on facebook
• Airbnb: integration with craigslist
• Linkedin: gmail contacts import
Pricing &
Cost structure
Case E.g.
Match My Thesis -
Pricing
Price Discrimination
In the ideal world you would charge the each
customer the maximum amount each is willing
to pay
Case E.g.
Airlines and hotels -
Price Discrimination
Case E.g.
Telia -
Price Bundling &
Unbundling
Competitive
Advantage
Terms
• Competitive advantage?
Build a moat
W. Buffet
E.g Coca Cola
Case E.g.
Skill - Channel
Break
15 min.
03
Business
Exercise
What’s the
market? How
big it is?
What market?
02
• Is there a market?
• Tomato market in ???
• Tomato market in Lithuania?
John Patterson
20 per day
1eur / unit
Helena James Jenna Doe
35 per day
1.2 eur / unit
20 per day
1.1 eur / unit
35 units / day
12.775 units
40 units / day
14.600 units
Total Market Size
: 27.375 units
35 units / day
12.775 units
15.330 eur
40 units / day
14.600 units
15.330 eur
Total Market Size
: 30.660 eur
Competitors &
Market Share
Helena James Jenna DoeJohn Patterson
100% 50% 50%
Expected
Market Share
Helena James Jenna DoeJohn Patterson
50% 33% 33%
ME
50%
ME
33%
Expected
Market Share
Helena James Jenna DoeJohn Patterson
50% 33% 33%
ME
50%
ME
33%
7.665 5.110 5.1107.665 5.110
Target segment
28 - 50
Quality Conscience
Upper income (non price sensitive)
Educated
Female
Prefers to drive
Target segment
What we sell?
Better taste
Local
Ecologic - farm grown
Sustainable
Nutritious
Value Prop.
28 - 50
Quality Conscience
Upper income (non price sensitive)
Educated
Female
Prefers to drive
Pricing?
What’s the traffic from each door?
Where does the competitor stand?
What kind of people come from each door?
Location
Traffic
Segment
Channel
What’s the traffic from each door?
Where does the competitor stand?
What kind of people come from each door?
Location
Traffic
Segment
Channel
Thanks!
Questions &
Answers

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Business Foundation - VGTU