Zinnov Market Expansion Capabilities

Zinnov Market Expansion capabilities
Vignette
March, 2009
This report is solely for the use of Zinnov client and Zinnov personnel.
No part of it may be circulated, quoted, or reproduced for distribution
outside the client organization without prior written approval from Zinnov
LLC.
Agenda
1 Our Market Expansion capabilities

2
Case Studies
2
Zinnov Management Consulting Pvt Ltd (Confidential)
Agenda

2
Case Studies
3
Our Market Expansion portfolio is a combination of services that help

clients enter new domains and expand in the existing markets
Market Expansion Framework
1
Opportunity Assessment
It includes complete business analysis of the

viability of prospective markets or opportunity
for new products in existing markets.
It is a combination of analyzing existing
market landscape and potential
opportunity in addressable market.
Our clients acquire a competitive edge by

gaining market insights and information
about key focus areas.
Understanding of customer pain points

assists our clients in designing their
product strategy.
It assists our clients in penetrating the market

with their product offerings at a fast pace and
at economical cost.
Risk Mitigation
Financial Planning
It includes design, development and

execution of a strong distribution model
for our client to help them reaching out
to end customers.
Business Model
It includes understanding the methods adopted

by customers to solve their problems. Zinnov
further analyze the gap between customer
needs and market offerings.
Channel Strategy
Peer Group Analysis
It includes analyzing industry best

practices thereby providing guidelines on
innovative strategies for the way forward.
Customer Insights
Vision Statement
8
4
We assess opportunities by analyzing market landscape and

identifying addressable segments
Opportunity
Assessment
Assessing the Demand side

1
Evaluation of
Industry
verticals
Teleco
Assessment
of spending
IT
Projection of
future spend
pattern
BFSI
Growth of economy
New Entrants
Infrastructure analysis
Government policies
Vertical wise analysis
Drivers & Constraints
Identification
of market
players
Company
Spendin
g by top
10
market
leaders
Macroeconomic
Analysis
Assessing the Supply side
Demand for products

Constraints for
products
Current scenario
Future Scenario
Gap Analysis
By
Geography
Analyzing
market
maturity
Introductio
n
Company
2
By Product
Growth
Company
3
By Vertical
Maturity
Target Market Analysis
Revenue
distribution
Trends in the market

Pain Area analysis
Location analysis
IT spending
Channel Strategy
Profitability analysis
Competitive Landscape
Price point analysis

Market Penetration
SWOT analysis
Portfolio mapping
Sales Strategy
Clientele analysis
Growth Plans
5
Customer
Insights
Our exploratory methodology for various customer segments

help generate vital insights
Key Steps
Focus Group
Discussions
Design evaluation
framework
Customer
Segmentation
In-depth Interviews
/ Follow me home
Detailed Description
We conduct focus group discussions with customers to generate insights

about existing methods for solving their problems. It assists us in building
hypothesis and to further evaluate gap in existing product offerings.
We conduct exploratory studies to understand the mental, physical and price

barriers for customers to design evaluation framework. It is designed to
evaluate the unmet needs and pain points of customers.
We segment the customers on various demographic cuts based on

preliminary insights from focus group discussions such as educational
qualification, IT literacy, age group, etc
We conduct in-depth interviews and follow-me-home discussions with

customers across the various segments to generate in depths insights on
their unmet needs and pain points.
6
Peer Group
Analysis
We analyze the peer group from a high level and then deep
dive into best practices demonstrated by leaders
Objective
Key Parameters
High Level analysis parameters
Market Share analysis
Financial performance
Product/service portfolio
Business model
Key customers
Geographical presence
In-depth analysis parameters
Innovation
Segmentation
Portfolio
Analysis
Customer
perception
Quality
Distribution
network
Performance
analysis
7
Channel
Strategy
We evaluate existing and potential distribution models to

design customized models
Identification of channel partners
Identification of existing channel

partner network of peer group
companies in same industry
segment.
Identification of channel partner

network in other industries for
innovative potential opportunities.
Analysis of industry best

practices
Direct Sales Vs Indirect Sales

Revenue sharing model
Channel partner margins
Value chain of the product offering
Design of evaluation framework for channel partners

Financials
Revenue
Profit
Financial Growth
Investors
Infrastructure Capability
Locations
Relationship with Resellers
IT Infrastructure Setup
Communication Setup
Quality Process/Certifications
Domain Expertise
Revenue from target domain

Product offering in target domain
Years of experience in target domain
Clients references in target domain
Talent Capability
Strength of sales workforce

Workforce in target domain
Average experience of sales force
Qualification/Background of sales force
Organizational Alignment
Mid-level management structure

Synergy within organization
Shortlist Channel partners
Distributors
Resellers
System Integrators
8
Business Model
We provide sound strategies to develop an effective and

powerful business model
a
Delivery
Zinnov helps identify the mode of

delivery preferred by customers and
also define a delivery strategy by
product/solution based on customer
segments
f
Target
Audience Reach
Zinnov provides short, medium, and

long term recommendations on the
best approach to reach target
audience
e
Zinnov suggests the preferred mode

of deployment based on customer
inputs
Business Model
Current Profile
of Partners
Role of Local Partners
Zinnov helps define the role of local

players in the ecosystem based on
customer interviews
Zinnov provides profile of channel

partners (SI/VAR/ISV) with whom the
client can partner
d
Preferred Mode
of Deployment
Price Points
Zinnov provides the price by

product/solution based on customer
segments
9
Financial
Planning
Zinnov provides a high level visibility into the financial plan

required for India entry
Financial Plan
Zinnov will provide a financial plan will cover the following
Resource
Requirements
Describe a vision of company or strategic

contents.
Budget
Allocation

contents.
Cash Flow
Statement

contents.
Resource
Requirements
Budget
Allocation
Cash Flow
Statement
The financial plan is based on the budget inputs provided by the client and projected cash
flow keeping in mind certain assumptions for the revenues and customer sign ups
10
Risk Mitigation
Zinnov analyzes both tangible and intangible risks and also

provides risk mitigation strategies
Possible Threat
Risk Identification
Risk identified based on impact on all

stakeholders of India entry
The threats will cover both macro economic and
micro level factors
Each threat will have a detailed definition of risk
Threat Perception
Risk Definition
Based on market insights, Zinnov will provide a

threat perception rating for each defined risk
The threat level will be defined based on impact on
the end objectives defined for India entry
360 Degree Impact of Risk
Risk Mitigation
Each identified and defined risk will be

measured on basis of the 360 degree impact on
the stake holders.
The risks will also be evaluated on basis of the
end impact on the success objectives of India
entry
11
Vision
Statement
As a final part of the business plan, Zinnov helps define the

company vision and also monitor its performance
Vision
Parameters on which success will

be measured
Su
cc
es
s
ds
Success
Parameters
Da
sh
bo
ar
Zinnov defines a dashboard on

which Client can monitor its India
performance
Tr
en
A 5 year visual of how Clients

India positioning will look post
entry
Dashboard
Vi
sio
n
Trends
Zinnov identifies trends that
market is likely to pick up over
next 5 years
12
Agenda

2
Case Studies
13
Case Studies
Zinnov helped an IT company evaluate the market opportunity

for financial software among Indian SMBs
1
Zinnov Project Methodology
Framework of Study
The client wanted to evaluate

Client
Requirement
the opportunity of offering

financial software to individual
customers
The offering include software
for calculating tax, Investment
planning etc
The client expected Zinnov to
Data Collection
IT usage
by
Indians
3
In-depth
Analysis
Precise
Forecast &
Assessment
help in mapping the needs of

the Indian consumer
Expectation
from
Zinnov
They also wanted to have

insights into a typical mindset
of Indian customer , such as:
Tax paying habits
Investment planning
Savings pattern
Deliverable
Deliverable from
from Zinnov
Zinnov
Zinnov helped the client in assessing the varied software
which may appeal to Indian consumer.

Parts of the study included:
Tax paying population size, their frequency of paying taxes
Modes of tax planning (i.e. do they use chartered accounts
or independent tax planner)
Factors which may drive Indian consumers towards buying
a software
14
Case Studies
and evaluation was done on parameters such as customer

insights, key competitors and addressable market opportunity
Project Scope
A
Market Overview
Customer Insight
Evaluate several
market dimensions
Size
Growth
Profitability
Value chain
Trends
Business models
Success criteria
Sources of
differentiation
Sub-markets /
spaces within
Identify key competitors Understand the unmet

and other players in the
opportunity area
Deep-dive on
competitors:
History
Performance
Business model
Unique advantage
Relevance to Client
and underserved needs

of SMB customers
Understand pain points

of SMBs in existing
method
Define barriers to
software use today
Evaluate decision
process of SMB
To understand the opportunity of personal finance product among Indians

15
Case Studies
Zinnov assessed the business opportunity for personal

finance software among Indian consumers
Progressive Indians Households
(2005-2025)
#HHs
(M)
CAGR
Several
Several factors
factors associated
associated with
with this
this growth
growth
Increasing complexity of personal finance

Higher disposable income
More credit cards
Multiple bank accounts
Dual income household
Increasingly integrated with global marketplace

Rising wages, driven by MNCs and IT
Availability of global brand products, luxury
items
Favorable changes in government policies

Consumer friendly interest rates for loans
Opening of sectors for public investment
Rising technology adoption

PC use
Internet for e-commerce activity
8%
CAGR
16%
Professional Services
16%
IT
Services
8.3%
BPO
6.3%
Products
3.5%
Agriculture
0.7%
Others
65.3%
Progressive Indian households are those which

have an earning more than USD 5000
Others shall mostly include Owner of SMB
manufacturing units, large unorganized
retailers
Note:
*Data for 2005
Source: Zinnov Estimate, The rise of Indian Consumer Class by Mckinsey
16
Case Studies
Zinnov analyzed the usage behavior of web based marketing

tools among Indian SMBs
Estimate the market size and growth

rate for web based marketing tools
Identify the key factors for customer
segmentation
Market
Overview
Estimate the potential

market size
Analyze opportunity and
feasibility for a new
solution
Identify target customers
for the new solution
Market
Opportunities
Competitive
landscape
Customer
Insights
Evaluate the current

offerings by competitors
Profile the top 3
competitors
Assess customer satisfaction in the

existing setup and identifying unmet
needs
Understand the behavior pattern in
the adoption of existing offerings
17
Case Studies
Zinnov analyzed the domestic market and the need for focused
and localized CRM solutions
2
Market Growth
SMB Potential
48%
Domestic
Market Drivers
3
Evolving IT
Infrastructure
Need for Localization
Opportunity Created
High
Low
18
Case Studies
Zinnov developed the India business plan for product offerings

of an EDA solution provider
Market Analysis
B
Market Overview
Define Target
Identify key competitors
customers
Identify customer
and their market share
Assess the value add in
segmentation
Evaluate the
addressable market
size
Identify current levels
of penetration
existing competitive
products
Evaluate their business
models
Identify their distributor
networks
To evaluate the market opportunity for Embedded Software development tools
19
Case Studies
Zinnov with NASSCOM, envisioned the future for Indian

software products and defined their roadmap
1
Evaluating Market Size of
Indian PD Industry
5
Software Enabled Product &
India
Global Market Opportunity
4
MNC PD companies in India &
Case Studies across PD
Models of business
Issues with Product

Development in India
20
Thank You !
Zinnov Contact
www.zinnov.com
info@zinnov.com
69 "Prathiba Complex", 4th 'A'

Cross, Koramangala Ind. Layout,
5th Block, Koramangala
Bangalore 560095
575 N. Pastoria Ave

Suite J
Sunnyvale
CA 94085
21, Waterway Ave,

Suite 300
The Woodlands
TX 77380
Phone: +91-80-41127925/6
Phone: +1-408-716-8432
Phone: +1-281-362-2773

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Zinnov Market Expansion capabilities

1 Our Market Expansion capabilities

1 Our Market Expansion capabilities

Our Market Expansion portfolio is a combination of services that help

It includes complete business analysis of the

Our clients acquire a competitive edge by

Understanding of customer pain points

It assists our clients in penetrating the market

It includes design, development and

It includes understanding the methods adopted

Peer Group Analysis

It includes analyzing industry best

Zinnov Management Consulting Pvt Ltd (Confidential)

We assess opportunities by analyzing market landscape and

Assessing the Demand side

Drivers & Constraints

Assessing the Supply side

Demand for products

Target Market Analysis

Trends in the market

Price point analysis

Our exploratory methodology for various customer segments

We conduct focus group discussions with customers to generate insights

We conduct exploratory studies to understand the mental, physical and price

We segment the customers on various demographic cuts based on

We conduct in-depth interviews and follow-me-home discussions with

Market Share analysis

In-depth analysis parameters

We evaluate existing and potential distribution models to

Identification of channel partners

Identification of existing channel

Identification of channel partner

Analysis of industry best

Direct Sales Vs Indirect Sales

Design of evaluation framework for channel partners

Revenue from target domain

Strength of sales workforce

Mid-level management structure

Shortlist Channel partners

We provide sound strategies to develop an effective and

Zinnov helps identify the mode of

Zinnov provides short, medium, and

Zinnov suggests the preferred mode

Role of Local Partners

Zinnov helps define the role of local

Zinnov provides profile of channel

Zinnov provides the price by

Zinnov provides a high level visibility into the financial plan

Zinnov will provide a financial plan will cover the following

Describe a vision of company or strategic

Describe a vision of company or strategic

Describe a vision of company or strategic

Zinnov analyzes both tangible and intangible risks and also

Risk identified based on impact on all

Based on market insights, Zinnov will provide a

360 Degree Impact of Risk

Each identified and defined risk will be

As a final part of the business plan, Zinnov helps define the

Parameters on which success will

Zinnov defines a dashboard on

A 5 year visual of how Clients

1 Our Market Expansion capabilities

Zinnov helped an IT company evaluate the market opportunity

Zinnov Project Methodology