©2004 OpenTTO.org Slide 1 OpenTTO.org - DILIGENT Phase 7 – Sales Pricing & Branding SPB Objective SIPOC Process Sales Strategies Pricing Plan Branding Plan Summary

©2004 OpenTTO.org Slide 2 SPB Objective To identify sales pricing and branding points: What are target segments are targeted and why? What are the sales channels? What team is needed to cover the channel? What pricing model is best? How is the offer branded? Produce a clear picture of the marketing and pricing and branding and the timing and capabilities required.

©2004 OpenTTO.org Slide 3 Sales, Pricing and Branding 5.0 FCS 7.1 Revi ew & Sele ct Sale s Mod el 7.2 Revi ew & Sele ct Prici ng Opti ons 7.3 Revi ew & Sele ct Bran ding 7.4 Align Sale s, Prici ng & Bran ding 7.5 Reso urce Feasi bility Chec k Business Lead Marketing Advisor Production/Pricing Advisor Branding Experts 7.0 PMR + Previous Comparative sales models Comparative pricing models Branding options & ideas 7.1Review channel and sales options and resources needed and prioritise options 7.2Review pricing models and competition and build case for pricing model selection 7.3Review branding alternatives and targets, cost effectiveness and timing, and select option. 7.4Ensure the sales strategy, pricing and branding align and mutually consistent and reinforcing. 7.5Ensure resources and people talents and skills are aligned with the delivery of 7.1, 7.2, Complete and review Confidence Index for SPB. Sales Strategy Pricing Model Branding Plan 8.O TRP Business Lead Marketing Production Team Determine the optimum sales, pricing and branding models, and the team and resources needed to execute. Process Supplier Input Output Customer Overview 6.0 PMR7.0 SPB8.0 TRP

©2004 OpenTTO.org Slide 4 SPB Suppliers and Inputs Typical questions for suppliers and inputs: Are “traditional” sales channels applicable? What models can be applied to this invention? Is comparative pricing information available? Is the market input good enough assist pricing models? Can the production/delivery cost be estimated? Is this an invention that requires branding? What are the comparative branded products and models? Templates P C S O I Transform

©2004 OpenTTO.org Slide 5 SPB Process and Transformation Analysing sales strategies: How is demand created for the product? Why would our customers purchase it? How much competition is there and why is this product different? What is the initial market segment and why? How will that market be reached? What is the right team and channels to reach that segment? What activities are most important in potentially closing a sale? Are partners needed to complement that sales strategy? What is the gross and the net return from that initial market? How does the sales strategy change over time? When does it change – what are the milestones? Templates P C S O I Transform

©2004 OpenTTO.org Slide 6 SPB Process and Transformation Analysing pricing options: How have comparative inventions been priced? How flexible are those price-points? Why is this invention different – or the same? How flexible is the market pricing and why? How does the price distribute across the sales channel? Do different customers have different price points? Are the costs to market know or can be estimated? What margins are collected across the sales channel? Are partners or alliances needed to maximise pricing? What volumes are necessary? What is the NPV of the various options? Templates P C S O I Transform

©2004 OpenTTO.org Slide 7 SPB Process and Transformation Analysing branding options: Is branding desirable and is it possible? Global or local brand? A new class or associated with established classes of brands? How much investment is possible to build the brand? Over what timeframe? What is the key communications message of the brand? Why is that important to customers? Is the brand message and impact sustainable? How will the branding capture greater NPV? How will brand success be measured? How will branding channels be coordinated? Templates P C S O I Transform

©2004 OpenTTO.org Slide 8 SPB Sales Strategy and Tactics Strategy and tactics to win customers: The weak link in many business plans Strong plan is a roadmap and builds investor confidence –Should be workable –Achievable – identify the resources –Sustainable – identify the investment Strategy defines the product, positioning, pricing, target customer, market, and competition (use inputs from previous phases) Who is the target for the initial push? Is this congruent with the alliances and distribution strategy? How will the product be positioned against the competition? What is the value proposition for those customers – that segment? How will efforts and resources be focused initially?

©2004 OpenTTO.org Slide 9 SPB Sales Tactics Many entrepreneurs fail to plan effective sales tactics: What is the appropriate sales model – direct, indirect, combination? How will the distribution channels be found and “sold”? How will distributors be educated and supported? What is a realistic ramp-up time? How will sales people be attracted, educated and retained? Will the sales model scale-up? What investment in supporting sales infrastructure is required? –In total budget 30% on sales & marketing post-development –Sales & marketing will consume 2X technology development

©2004 OpenTTO.org Slide 10 SPB Advertising and Promotion What is an effective advertising and promotions campaign: Does it support the sales strategy and tactics? –The right collateral and the right timing? –In the right hands e.g. sales staff or distributors –Able to be accessed by customers e.g. the web Packaging Pricing promotions and their impact on longer-term pricing Promotions in appropriate media aligned to sales tactics Trade shows and other eye-to-eye promotions Show these costs and how performance will be managed & measured.

©2004 OpenTTO.org Slide 11 SPB Brand Strategy Starting-up is the time to get it right: May be the most overlooked element of a start-up Engineer the brand to the initial customer segment Design a brand which matches the segment Distinguish it from competitors Convey the value proposition Create a feeling of a strong corporate identity Take control of the brand from the outset. Brand values: the brand values should be derived not from the technology, but from the business goals they help to accomplish.

©2004 OpenTTO.org Slide 12 SPB Outputs and Customers Sales, pricing and branding conclusions: Is there a clear sales strategy with an effective channel? How are the team and resources aligned behind the sales strategy? Which pricing model delivers the revenue/margin goals? How risky or how proven is the pricing model? Is the branding plan feasible and resources estimated? How does branding and sales strategy and pricing reinforce? Are the sales, pricing and branding credible to the market? Templates P C S O I Transform Sales, pricing and branding decisions are critical to delivering a credible and value-creating business plan.

©2004 OpenTTO.org Slide 13 SPB Brand Strategy Brand Strategy begins with understanding the market: What is the current state of the market you compete in? Who are the players? What will the market look like at the time of launch? Do you expect the competitors to change? The branding, pricing and sales plans reinforce each other? Who most needs what your brand is offering? Who will be the target of your marketing efforts? The most compelling reason to establish a branding strategy is to support a premium valuation

©2004 OpenTTO.org Slide 14 SPB Confidence Index How confident are you that: The sales plan is feasible and achievable? The sales plan creates and captures optimal value? The branding strategy adds value and is necessary? The branding plan is affordable? The branding, pricing and sales plans reinforce each other? The timing and team behind the sales, pricing and branding are capable of meeting the objectives?