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Market creation elac 2015
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.
Market creation elac 2015
- 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, ErikSimanis 2 SC Johnson: Nairobi, Kenya
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- 5. © 2015, ErikSimanis 5 = Needs ≠ Market MARKET CREATION Embed New Product Use Rou:ne into Consumers’ Lifestyles
- 6. 6 Product Performances ProductRoutines 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 CreationChallenge 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 DifferentApproach To… Marke=ng Strategy
- 13. © 2015, ErikSimanis 13 13 CONSUMER RESEARCH MARKET CREATION
- 14. © 2015, ErikSimanis 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, ErikSimanis 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,
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- 18. © 2015, ErikSimanis 18 18 MARKETING STRATEGY MARKET CREATION
- 19. © 2015, ErikSimanis 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, ErikSimanis 20 Learning Strategies There’s No Place Like Home Wash Rinse Repeat Monkey See, Monkey Do Two Heads Are BeSer Than One
- 21. © 2015, ErikSimanis 21 SC Johnson, Ghana
- 22. © 2015, ErikSimanis 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, ErikSimanis 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