Is There A Market For My New Product? NUIG-UL MARKET RESEARCH & VALIDATION WORKSHOP Greg Byrne

1. Is There A Market For My New Product? NUIG-UL MARKET RESEARCH & VALIDATION WORKSHOP Greg Byrne

2. The Venture's Journey| Business Growth Stages PUSH PHASE PULL PHASE 1. Venture Market 6. Brand Position Analysis 7. Key Account Management 2. Pitch 8. New Product Development 3. Personal Selling 4. Promotion 5. PR

3. Is There A Market For My New Product? Purpose of Market Research & Validation for a Start Up • develop the ‘business model’ for how the new company and new product creates,delivers and capturesvalueand then 2) test that business model in the market place to proof its operability and profitability.

4. Is There A Market For My New Product? Purpose of Market Research & Validation for a Start Up Business Model – The 10 Information, Insight and Data Sets to be sourced, analysed and tested... 1. The New Product • The ‘good bits’, the ‘bad bits’ and ‘improve its’ in qualitative research • The ‘interest’, ‘believability’ , ‘purchase intention’ and ‘pricing’ in quantitative research 2. The Buyer • Who are they? Profile them. • Where are they? • What job do they want to get done? • How many of them are there?

5. Is There A Market For My New Product? Purpose of Market Research & Validation for a Start Up Business Model – The Information, Insight and Data Sets to be sourced, analysed and tested... 3. The Value Proposition • For (define the target audience and industry) who have (define the big problem) we have (solution description-what we offer) that delivers (this big advantageous benefit –over and above competitor solutions) • Here is our track record/credentials (why you should believe us) 4. The Channels • How do buyers want to be reached (made aware) and interacted with (information, advice, service and sales)? 5. Customer Relationship • What relationship are you establishing with each segment – personal, automated, acquisitive, retentive, etc?

6. Is There A Market For My New Product? Purpose of Market Research & Validation for a Start Up Business Model – The Information, Insight and Data Sets to be sourced, analysed and tested... 6. Revenue Streams • What are buyers really willing to pay? • Transactional? Recurring? 7. Key Resources • What competencies, assets and resources underpin your Business Model? 8. Key Activities • What key activities do you need to perform well? • Which ones are crucial?

7. Is There A Market For My New Product? Purpose of Market Research & Validation for a Start Up Business Model – The Information, Insight and Data Sets to be sourced, analysed and tested... 9. Key Partners • Who do you need to rely on to operate your business model? • Who can leverage it? 10. Cost Structure • What is the resulting cost structure of your business model? • What key elements drive your cost structure?

8. Is There A Market For My New Product? Market Research & Validation in 7 Steps and 2 Stages

9. S Is There A Market For My New Product? Stage 1 Secondary Market Research. Steps 1-5 Company Context Product Concept Business Model Collaborator Competitor Customer

10. S Is There A Market For My New Product? • Stage 1 Secondary Market Research. Steps 1-5 • Secondary Market Research, also known as desk research, sources information and data that already exists • Secondary research can provide both quantitative and qualitative • information. • Market Size and Trends • Customer Profiles including Demographics • Competitors & Market Share • Competitor Marketing Mix

11. S Is There A Market For My New Product? Stage 1 Secondary Market Research. Steps 1-5 Secondary Market Research Information & Data can be sourced from: The Internet –Google Online Market Research Websites Industry Company websites Research Agencies State Agencies Industry Associations Magazines

12. S Is There A Market For My New Product? Stage 1 Secondary Market Research. Steps 1-5 Company Context Key Company Resources, Assets, Competencies Industry , Markets, Products Drivers Challenges Projections Product Concept Business Model Collaborator Competitor Customer Who are they? Their products Strengths Weaknesses The supply chain partners Who are they? Buying objectives Buying criteria, process

13. S Is There A Market For My New Product? Stage 2 Primary Market Research Steps 6 & 7 Company Context Type of company Key competencies Brand Proposition, Brand values Organisation Structure Cost Drivers Product Concept Business Model Target Markets Product Categories Revenues Channels Collaborator Competitor Customer Key Partners Differentiated offering Target Audience(s) Relationship requirements WTP

14. Is There A Market For My New Product? Stage 2 Primary Market Research Steps 6 & 7 Primary market research is where you test the potential areas of advantage and differentiation for your product and for the business (fine-tuned from the secondary market research you’ve done) Qualitative primary market research methods are exploratory and are used to answer ‘why’ and ‘how’ questions. Perceptions, Attitudes, Beliefs Quantitative primary market research answers questions as to ‘who’, ‘where’, ‘when’ and ‘how many’ and results can be projected onto larger populations. It is used to size and define markets, customer numbers, quantify interest and purchasing intentions and responses to new product concepts, advertising and branding communications.

15. Is There A Market For My New Product? Step 1: define your Business Competencies and your New Product & Business Model (concept) COMPANY 1. Business and Competencies 2. Product Concept & 3. Business Model (version 1) .

16. Is There A Market For My New Product? Step 1: define your Business competencies and your New Product & Business Model (concept) COMPANY 1.Business and Competencies • Draw your flower, depicting the core competence, the product applications and markets for those applications. Rank the markets/applications , specifying 1,2 and 3. Pages 10 and 11 of Guide

17. Is There A Market For My New Product? DRAW YOUR ‘FLOWER’ POWER Write your ‘product’ down on the first petal…then forget • What is it that you/team have or do really well…skill… • Write it down in the centre of your flower • Fill the other petals with other applications that could be made with your core • Now rank the petals according to these factors: - importance of competency to application market - growth rate of application market - competitive intensity and competitors - resource requirement • Prioritise the petals • List the top 10 buyers in each priority application market. FLOWER EXERCISE TEMPLATE PAGE 30

18. Is There A Market For My New Product? Step 1: define your Business competencies and your New Product & Business Model (concept) 2. Product Concept (version 1) Title/name - XXXXXXXXXX Who? – The Target Buyer; who will buy, influence? Why? - Motivation for purchase/use. Why will it be bought and used? When and where? - Usage Occasion. Time and location; relative to other events? Buyer Insight- What is the penetrating buyer understanding driving the idea? (The “Aha!”) What is it?- Idea description, Proposition, Benefit. What it is, what it does, and how does it improve the life of the buyer? RTB- Reason to believe the benefit Packaging Format- Format, size, material, function, (e.g. opening, drinking, dispensing, resealing, reusing, stacking, disposing, etc) Other Notes ................................................. Pages 12- 13 of Guide

19. Is There A Market For My New Product? WHY BUSINESSES BUY • Provide their own goods or services more cost effectively • Save money • Cement relationships • Position themselves strategically • Improve public relations • Solve problems More rational, logical

20. Is There A Market For My New Product? WHY CONSUMERS BUY • Meet biological needs • Increase security • Gain status or recognition – to belong • Live out fantasies • Reduce anxiety or other strong emotions • Save time or money • Solve problems can be irrational, more emotional

21. Is There A Market For My New Product? Step 1: define your Business competencies and your New Product & Business Model (concept) 3. Business Model description of how your venture ‘creates, delivers and captures value’: • The customers / segments you will serve • The value proposition you offer them • The channels through which you will reach and interact with them • The relationships you will establish with them • The revenue stream(s) of what customers are willing to pay , once off / recurring • The key resources and assets that underpin your venture and business • The key activities that are crucial to operate • The key partners / collaborators you need to rely on • The cost structure and key elements that drive costs

22. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter CONTEXT 4. Source Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites... 5. Draw the ‘product category map’ 6. Identify PEST trends that could / will impact COLLABORATOR 7. Who else is needed to make, distribute, fund, approve, install, sell, service products in the market?

23. Is There A Market For My New Product? Step 2: draw the ‘product category map’ for the market that you are going to enter CONTEXT 4. Gather Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites... Secondary Market Research is where you start a start up! Secondary research means using published information such as industry profiles, trade journals, newspapers, magazines, census data, and demographic profiles and talking to people who know about the industry, markets and products you are considering. This type of information is available in public libraries, industry associations, chambers of commerce, from vendors who sell to your industry, and from government agencies.

24. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter 4. Gather Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites... Available, current known facts about your industry, market, products, providers and customers: eg • What is the total size of your market? • Current demand in target market. • Trends in target market—growth trends, trends in consumer preferences, and trends in product development. • Provider profiles • Product features, positionings • Customer profiles and buying behaviours • Business models

25. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter 4. Gather Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites... SOURCES OF SECONDARY MARKET RESEARCH - INDUSTRY /TRENDS ANALYSIS • Listed Companies ‘form 10K & 10Qs’ from their websites • http://www.magportal.com/c/bus/ind/(search engine for magazine articles) • Marketresearch.com(Aggregated multi-sourced industry and markets analysis) • Researchandmarkets.com (world’s largest market research resource) • Mintel.com (consumer, media and market research) • Keynote.co.uk (business and market intelligence) • BizJournals.com (industry specific trends) • Companiesandmarkets.com (400,000 market reports, company reports and company financials) • Aberdeenreport.com (benchmark industry and process reports) • Strategy-business.com (industry and issue research and analysis) APPENDIX 3 Page 32

26. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter 4. Gather Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites... SOURCES OF SECONDARY MARKET RESEARCH MARKET RESEARCH DATABASES • Analysys –Billing & Customer Care, Service & Delivery Platform Strategies, CSP Operator Strategies, Telecoms Software Strategies. http://www.analysysmason.com/ • BCC Research www.bccresearch.com Multisector with emphasis on materials, food, enviro, electronics, pharma, etc • Business Insights www.globalbusinessinsights.com. Reports covering the healthcare, food, technology and energy sectors. • Datamonitor www.datamonitor.com . Multisector, in-depth market research news and reports covering pharmaceuticals, energy, financial services, etc.

27. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter 4. Gather Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites... SOURCES OF SECONDARY MARKET RESEARCH COMPANY DATABASES • Kompass www.kompass.com Global database of companies by sector, including manufacturers, distributors and services • FoodLine Web source of information for the food and drinks industry. They include Market, Science and News journals, books & patents. • MEED Projects www.meedprojects.com Project pipeline information covering the Middle East • OneSource http://www.onesource.com/ US company directory and financials. Also Freedonia market profiles for US on a number of sectors. • Emerging Medical Technologies Database http://lifescienceintelligence.com/emt.php Database only. • BioPharm Insight http://www.biopharminsight.com/includes the entire drug discovery and development pipeline, approved drugs, licensing deals, pharmaceutical sales/projections, medical devices, management contacts and more.

28. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter 4. Gather Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites... SOURCES OF SECONDARY MARKET RESEARCH KEY NEWSLETTERS • Clinica (World Medical Technology News) http://www.clinica.co.uk/home/ • Scrip (World Pharmaceutical News) http://www.scripnews.com/home/ • MedTech Insight www.medtechinsight.com (access to mag articles only, not reports) • AnimalPharm http://www.animalpharmnews.com/ • Informa (2 newsletters Media + Comm) • MEED www.meed.com (Middle East business intelligence)

29. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter 4. Gather Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites... SOURCES OF SECONDARY MARKET RESEARCH GOOGLE • Keyword searches • Google alerts Pages 16 -17 of the Guide

30. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter 4. Gather Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites... EXAMPLE Wound care product GOOGLE SEARCHING ‘Wound Care’ The Explosive Growth of the Wound Care Market We spoke with Nerac Analyst, Ron Sills, about the explosive growth we are seeing in the wound care market, the factors driving the growth, the latest products as well as how the medical and healthcare industries are attempting to reduce the costs associated with wound care. “Industry leaders like 3M, Johnson & Johnson, Convatec, Coloplast, Closure Medical, Smith & Nephew continue to develop innovative solutions for wound care as evidenced by their patent portfolios and product approvals”

31. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter 4. Gather Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites... FORM 10K INSIGHTS Wound Care ...physicians and nurses are critical to the adoption and use of advanced medical systems, a major element of the sales force's responsibility is to educate and train these medical practitioners in the application of our products, including the specific knowledge necessary for optimal clinical outcomes and reducing the cost of patient care. ...we employ approximately 200 specialists who consult with our customers regarding the often demanding and complex paperwork required by Medicare and private insurance companies. In fulfilling the paperwork requirements, these specialists enhance the overall productivity of our sales force.

32. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter 4. Gather Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites... Form 10K - Stratsys Our sales organization is responsible for the sale of our products on a worldwide basis and for the management and coordination of our growing network of authorized resellers. Our direct sales force consists of salespersons who work throughout North America, Europe and in parts of the Asia-Pacific region. Our application engineers provide professional services through pre-sales support and assist existing customers so that they can take advantage of our latest print materials and techniques to improve part quality and machine productivity. This group also leverages our customer contacts to help identify new application opportunities that utilize our proprietary processes and access to our parts printing service, 3Dpropartstm. As of December 31, 2010, our worldwide sales, application and service staff consisted of 159 employees.

33. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter 5. Draw the ‘product category map’ Product Market categories are created by needs, buying power, and products to satisfy needs. For each customer need, there are typically several products available NEED PRODUCT TYPE MARKETS BRANDS Pages 14-15 of the Guide

34. ‘ Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter Ocean Oil, Gas & Electricity Energy Displacement Biomass Geothermal Wind Viessman Solar PV Ritter Solar Thermal Day Light Thermal Thermo Photonics Energy Co.

35. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter 6. Identify PEST trends and changes that could / will impact • Change in Technology • Change in government regulations • Change in the Economy • Change in your Industry • Change in Social and culture life (style, mores) Page 18 Demographics Recession Mobility Online

36. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter SOURCES OF PEST INFORMATION • Trendhunter.com • Trendwatching.com • Springwise.com (new ideas, products and businesses) • JWTintelligence.com Fundamental changes and trends = change = opportunity

37. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter Fundamental changes and trends = change = opportunity – Mobile Money: The digital wallet became a reality for more consumers in more markets, • although we’ll see more tech advances in 2011 that will help drive this trend further into the mainstream. In 2010, among other things, the practice of texting donations became widespread after the Haiti earthquake, an updated PayPal app allowed users to exchange money by bumping phones, and various new tools turned phones into credit card terminals.

38. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter Fundamental changes and trends = change = opportunity 75,000 babies... • That is the number of babies it’s expected will be born in Ireland this year. We have the highest fertility rate in Europe, and the number of families with young children is expected to grow continuously over the rest of the decade. • Ireland’s 20-something population peaked in ‘07 • It is the 30-something population that is now causing the baby boom • Families are fashionable again after a decade of youth-driven individualism Focus on mums: they make most of the decisions about spending, savings & borrowing -for their families as well as for themselves

39. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter Fundamental changes and trends = change = opportunity 1,230,000 getting older • People over the age of fifty –all 1.2 million of them –make up over a quarter of Ireland’s total population (and over a third of the adult population). Their numbers will grow steadily over the next ten years, as will those of over 50s throughout the world. • There are approximately as many 50-somethings as teenagers in Ireland • Over 50s tend to have the lowest levels of debt across the age groups • Our cultural obsession with youth will increasingly give way to a new appreciation for maturity

40. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter Fundamental changes and trends = change = opportunity 1,940,000 online lives.... • Never has a product or service been adopted by so many people in Ireland so quickly. We’re talking Facebookof course. Nearly two thirds of internet users –that’s over 4 in 10 adults –now uses Facebook. And the number is still rising. • Internet usage in Ireland has continued to rise steadily throughout the recession –from just 4 in 10 adults in 2006 to nearly 8 in 10 today. • Irish consumers are spending a growing share of their time and money online. • The wider cultural consequences are only emerging: expect new sources of trust and authority to emerge post the recession.

41. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter Fundamental changes and trends = change = opportunity 80,000,000 euro • That’s the approximate amount in euro Irish consumers are expected to spend this year. They’ll probably save another €10 billion on top of that. Consumers spent the same amount back in 2003-4. But they won’t spend it on the same things this year. That’s the challenge if you want to get more than your fair share of the cake. • The consumer zeitgeist has been permanently changed by the recession –recovery won’t mean a return to the way things were • Consumers will remain focused on value –but that doesn’t mean a focus just on price. New priorities –driven by new needs and circumstances –will provide growth for some

42. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter COLLABORATOR 7. Who else is needed to make, distribute, fund, approve, install, sell, service products in the market?

43. Is There A Market For My New Product? Step 2: draw up the ‘product category map’ for the market that you are going to enter COLLABORATOR 7. Who else is needed to make, distribute, fund, approve, install, sell, service products in the market? THE TOTAL PRODUCT VALUE.... • The physical product itself • The brand name • Company reputation • Pre-sale activities ( eg education, demonstration by salespeople) • Post sale activities ( eg installation, technical support) • Maintenance, repair, warranty • Financing • Convenience • Availability • References • Reputation of retail outlet • Re-seller, partners

44. Is there a Market for my new product ? Steps 1-2 Where have we got to? Business Model Concept Market/Customers Size Trends Growth Product Products Concept Template Brands Competitors Collaborators Core Competence Flower Template + PEST Impact -- PEST Impact

45. Is There A Market For My New Product? Step 3: for your ‘product type solution’ category, identify the existing brand leaders and go to each ‘brand leaders’ website and extract how they describe their ‘corporate positioning’ and also their ‘product positioning’. COMPETITORS Focus on the top three.

46. Is There A Market For My New Product? Step 3: for your ‘product type solution’ category, identify the existing brand leaders and go to each ‘brand leaders’ website and extract how they describe their ‘corporate positioning’ and also their ‘product positioning’. COMPETITORS Example...for your ‘product type solution’ category, identify the existing brand leaders NEED PRODUCT TYPE SOLUTION BRANDS Brain Cognitive Nutraceutical/ Health Nawgan Function Drinks NeuroSonIQ Benevia Guide Page 19

47. Is There A Market For My New Product? Step 3: for your ‘product type solution’ category, identify the existing brand leaders and go to each ‘brand leaders’ website and extract how they describe their ‘corporate positioning’ and also their ‘product positioning’. COMPETITORS 8. Identify their corporate positioning and their product positioning 9. Check against the Business and Competencies you defined in Step 1. Where do you fit? You can’t be, or offer the exact same! Guide Page 19-20

48. Is There A Market For My New Product? Step 3: for your ‘product type solution’ category, identify the existing brand leaders and go to each ‘brand leaders’ website and extract how they describe their ‘corporate positioning’ and also their ‘product positioning’. COMPETITORS 8. Identify their corporate positioning and their product positioning

49. Is There A Market For My New Product? Step 3: for your ‘product type solution’ category, identify the existing brand leaders and go to each ‘brand leaders’ website and extract how they describe their ‘corporate positioning’ and also their ‘product positioning’. COMPETITORS 9. Check against the Business and Competencies defined in Step 1. Where do you fit? You can’t be, or offer the exact same!

50. Is There A Market For My New Product? Step 4: for each ‘corporate and product positioning’ identified in a competitor’s website, list out the ‘key customer values’ CUSTOMER 10. What are they offering in benefits to customers? What customer benefits do they talk about? 11. Identify the top, recurring (amongst existing competitors) key customer values 12. Check against the Product Concept (version 1) in Step 1. Guide Page 21