Reaching Beyond Existing Demand

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Reaching Beyond Existing Demand Blue Ocean Strategy Chapter 5 Team 5 Section 092 – Richard Alven, Paul Briseno, Jacqueline Henderson, Matthew Tawfiq Please leave us a 5 star rating if you love this free template! Welcome to Super Easy Templates: This is an 8 x 11 PowerPoint design slide. We provide easy-to-use and customize templates for home and business use. Most of our templates are for PowerPoint 2007 and Word 2007. If you are interested in additional templates, visit our website: www.supereasytemplates.com. If you require technical support on this specific presentation, email us: support@supereasytemplates.com. Also, check the Microsoft forums for specialized assistance. Although we try to respond to all support requests, please realize that this is a free service and we cannot guarantee a timely response. All questions and answers are usually posted on our FAQ pages.

2 Conventional Practices 1. Focusing on existing customers 2. Strive for finer segmentation to accommodate buyer differences

Look to Noncustomers Don’t focus on customer differences Build on powerful commonalities in what buyers value Reach beyond existing demand to create new customers

3 Tiers of Noncustomers Fig 5.1 1st Tier 3rd Tier - Your Market 2nd Tier Fig 5.1

1st Tier Noncustomers Sit on the edge of market Become stagnant and develops a growth problem as the number increases Minimally use current market offerings/ Upon finding alternative they would immediately jump ship

2nd Tier Non Customers Refusing non-customers People who either do not use or cannot afford to use the current market offerings Find offerings unacceptable or beyond their makings JC Decaux

3rd Tier Non Customers Unexplored non-customers Have not been targeted or thought of as potential customers Do not target these people because they feel that these people meets have been met or they belong to other markets.

Disney 1st Tier Non Customers 2nd Tier Non Customers Young Children and their parents who have not latched on to any Disney Trends 2nd Tier Non Customers Early to late teens who feel they’ve outgrown the magic 3rd Tier Non Customers Young adults with no children, and senior citizens. More appealing options in all markets that Disney is involved in for this category.

Go For the Biggest Catchment! Focus on the tier that represents the biggest catchment. Explore whether there overlapping commonalities across the three tiers of noncustomers