Market Research and Competitive Analysis for Start up Companies ¢ Prepared by Tonée Picard for ‘eaee San Jose State University Presented on March 25, 2004Agenda + Introduction ~ Tonée Picard and Market Research + Practical techniques vs. “by the book” + Reiteratiye points about marketing + Definitions and thought processes + Examples of market research presentation + Business plan outline sample + Q8Aer Scene Dday onee Pea Professional experience ~ President, Lighthouse Venture Forum + Eduaton and mentoring organization for technology entrepreneurs end young, snesses ~ VP, Business Development, Thuridion + Responsible for strategy, marketing, business development + Strtegist for smal growing companies ~ Orgarzatonal Develoment ~ Marketing sateay = Ousourarg seieges ~ 2start up companies (Dascom and CREW) + Education — BSIBA, Business and management, University of Phoenix — MBA, Golden Gate UniversityWnat is market research + Justa set of activities? — Focused $n defined goals = Refines the directon ofthe 5 P's + Product, promotion, place and price {and positioning) + View into social processes? — Who, what when, where and why! + Necessary? — Strategy does not take place ina e bridge to pe the customer! + Valued by organizations? — Succassful organizations. — Market research supports every department yef Wiarket Research Fallacies MRis boring MR is unnecessary MR is for analysis geeks MR is a waste of time and $$ MR is easy...ha!ntent of market research + What results are you looking for? — Define measurement of market potential — Determination of market characteristics — Market share analysis — Sales analysis — Business trends + Refine opportunities to pursue and “how” — Market segmentation and niche markets — Features and benefits required for market successFiarketing 101 Se, i ( Generic mate | \. eatin / > ‘Customer or user Customer type | | Custer (seymentation) (Tugs ( Produet Marketny do Market Research Knowledge is King — Learn from others .jou wl have plenty of your own lessons Find “strategic” competitive advantages = What are your bares of entry? What are the eompattins? Develop compStitve differential opportunities ~ Why are you better? How can you be the best? Understanding of core competencies and core rigidities Develop pricing models ‘Targeted aliances/partnerships that extend reach Create the product roadmap — Features, benef oi customer/consurir ned ‘Support the creation of the companyiproductservice vision — Feed the machine wth information Identify unmet needs — Product extension into current market ~ tension into new mareetsCritical component to any business plan + Know the self = + Know the customer ia + Know the market Know the industry + Know the government OBJECTIVE: To develop an informed business in a vibrant high growth market through strategic competitive advantages@ypes Ol marke! researc + Exploratory research ~ Review ofliterature (pubs, online, mags) ~ Discussion with experts, oficial, friends and farnly ~ Study of competitors or case studies in similar industries + Descriptive research ~ Targeted at specific question or hypothesis » + Sunveysiquestionnaices ~ random sample on a relevant epuaion + Focus groups ~ tna oprosuc specie sly expense) = Use yourseivak! AS sludert..ak or hep roma targeted CEO + Experimental research — Looking for cause and effect (©. pharma research) — Watching a user group “use” the product = Story boarding service offeringsfproduct offerings to group of targeted ‘consumers@aracted resea’cl Topics and WI 5 + Advertising research + Sales and Market = Motivation research research ~ Ad effectiveness ~ Market potential a | ‘ = Market share anelysis Business Economics and Sopaceepniatenl Corporate research ~ Sales Analysis ~ Forecasting = Distibuton sles channel studies — Business Trends. = Test marketingffocus groups — Pricing studies Promational researen and studies + Financial research + Product research = Tumover andra analysis (publ = Product acespiance or penta cemparies anual repos) ~ Competitive product studies — Testing of existing products ~ Packaging design et.