BUILD END USER PROFILE

Create a target Customer Profile  Develop a well defined end user profile  Describes the market segment you have chosen to attack  Can include important demographic information that will help you develop the market sizing calculation in the next step

Target Customer Profile Example GenderMale, female Age17-40 y.o. RegionCambridge MA (during initial growth stage) Occupation Student, young professional, internal migrant, middle management Social levelMedium, high CharacteristicsHas a smartphone, User categoryEarly adapters, technologically advanced OtherActive users of social networks, outgoing personalities Customer profile

Customer Profile Creation  Take 30 minutes to determine your end user profile  Use the sample table for guidance

DETERMINE MARKET SIZE

Determine the Market Size Based on the customer profile and the market segment determine the total market size This is called the Total Addressable Market (TAM) – i.e. this is the maximum number of customers or dollars your product can acquire TAM is a key factor of a business plan

Market Sizing Example #1 Women in the US 157 M Pregnant Annually 6 M First Time Moms 2 M Photo: visualphotos.com Share via social media Technology Savvy Want convenience Connect with family and friends Extend her excitement Share monthly pregnancy photos Intuitive Comfortable to wear Update her care network Use mobile “apps” to track health Indications Low maintenance Real-time feedback Easy to use In the US, there are 2 Million women like Michelle Connecting mommies with their babies inTouch

Market Sizing Example #2 6.3 million mothers 4 consultations per year x $7.99 per consultation. = $201 million/year L IVE D OC reassurance when you want it US Population (300 million) Sick or Dependent is Sick Internet User Mothers (2+ kids) College Educat ed Income $45-$120k 6.3 million mothers

Market Sizing Activity  Calculate the market size based on the customers who will buy your product. Follow the logic from the previous slides

PRICING MODELS

Possible Pricing Schemes  Free  Subscription  Flat price for everyone How do you determine the flat price? $0.99 –  “Freemium” Free for basic version Charge to unlock other capabilities or to get another version

Pricing Activity  Determine the potential pricing model for your venture

COMPETITION

What is the competition?  Things to consider: What else is out there that could potentially take market share away from you? How is your product different?  Functionality  Quality  Price

Competition exercise  Determine who your competition is

ADVERTISING & PROMOTION

How do you reach your customers or get more customers?

Advertising Schemes  Traditional: Posters Billboards Newspaper Ads TV/Radio Ads  Nontraditional: Mobile advertisements Printing on sides of cars Offering promotions Social media

Promotional Schemes  Earn a reward for the first time you use the service.  Earn a reward for every recommended friend who also uses the service.  Free trial (one week - one year free)  Random draw reward for downloading the service.  These are only a few examples.

Advertising and promotion exercise  How will you advertise and promote your product?

NEW VENTURE PITCH

Example pitches

What are the common themes between all these pitches?

Flow of information – doesn’t have to be in this exact order Hi, I’m _____ from _____ The problem we’re solving is… Our solution is… This is a big opportunity because… Our target customer is… We will get customers by… We make money by… Our key competition is… We’re better because… Our team is ____ and we will succeed because ____. What we’ll do next is… Currently, we are seeking… To summarize… Thanks From Pollenizer

Pitch exercise  Develop a 1-2 minute business pitch, practice and present to the class