Norwegian School of Entrepreneurship Master of Science Program in Innovation and Entrepreneurship ENT 4000 Group work session 3 – 09/09-08

ENT Group Work Session 3 Homework Business Idea and Marketing Plan Presentation

ENT Group Work Session 3 The Business Plan –Executive summary –Business idea –Management team –Marketing plan –Businessmodel og organization –Operational plan –Financial plan –Risk analysis

ENT Group Work Session 3 Business idea The business idea should answer the following: Who is the customer/ What is the market? –In example, is it companies/what kind of companies (size, industry etc.)? –Or is it a person/what kind of person (i.e. age 30-55, single, affluent)? –Remember that your customer is not necessarily the same as the end- user! What is the customer’s benefit / what kind of problem do you solve / what are the unique advantages? Why should the customer pay for your product or service? Are you offering a product, a service or both?

ENT Group Work Session 3 Value proposition A short summary of these questions is called a companies ”value proposition” –Product –Price –Availability –Service –Experience An example: The value proposition for Amazon.com could be described as: An easily accessible Internet site that is convenient all of the time to provide a wide selection of books, CDs, and videos at a fair price to the busy, computer-literate customer

ENT Group Work Session 3 Marketing research Marketing research: Systematic and objective identification, collection, analysis, and dissemination of information Purpose: assisting management in decision making related to the identification and solution of problems and opportunities in marketing.

ENT Group Work Session 3 Marketing plan Market, competition, and context Choice of target market –Market segmentation Market strategy –Product –Price –Place –Promotion

ENT Group Work Session 3 Marketing plan Market, competition and context –Market size I.e. number of customers, produced units and total turnover. –Market growth (next 5 years) Real numbers, trends –Competitive situation Industry What kind of companies offers the same product/service or similar How many competitors are there, what are their size, market share, strategies etc. –Context (i.e. government regulations)

ENT Group Work Session 3 Competitive situation in the marketplace Porters 5 force-model

ENT Group Work Session 3 The competitive situation Porters 5 force-model looks at how profitable an industry is → depends on the 5 forces. Bargaining power of customers – i.e. buyer concentration to firm concentration ratio; buyer volume; buyer switching costs Bargaining power of suppliers – i.e. supplier switching costs; presence of substitute inputs; threat of forward integration by suppliers relative to the threat of backward integration by firms; Threat of new entrants – i.e. the existence of barriers to entry; capital requirements; access to distribution; absolute cost advantages; learning curve advantages; expected retaliation Threat of substitute products – i.e. relative price performance of substitutes; perceived level of product differentiation Intensity of competitive rivalry – i.e. number of competitors; rate of industry growth; exit barriers; brand equity

ENT Group Work Session 3 Business idea and marketing plan For next gathering prepare a PPT presentation of the business idea and marketing plan. - Send the presentation to: - Before 23/09-08 (Monday before midnight) - Presentation should be maximum 7-10 minutes