Where  –  Am  I  going  to  

sell  ?  Geography,  individuals  etc.  

Who  –    Am  I  compe4ng  

with  ?    Other  technologies/subs9tutes  etc.  

How  –    Am  I  going  to  sell  –  Price  point  and  business  model  

What  –    Is  the  size  of  my  

market  ?  How  much  money  am  I  going  to  make  ?  Is  it  worth  to  

solve  ?  

Compe9tors  –  local  &  global  EcoWater,  Cuno,    Brita,  GE/Zenon  Al9cor  (Amway)  Culligan,  Woojin  

Coway  

Highly  compe99ve  pricing  &    

business  models  -­‐  Rental  &  direct  sales  

or  MLM  

Customers  –  local  &  global  Their  needs  are  different  &  water  quality  is  different  

Distribu9on  channel  is  extremely  complex  –    

Online,  through  distributors,  water  

depots,  new  property  developers  

What    is  the  size  of  my  

market?  

Where    am  I  going  to  sell  (geography)?  

How  am  I  going  to  sell  (business  and  

pricing  models)?  

Which  industry  am  I  selling  into?  

Successful  Launch  

Who  am  I  compe9ng  with  (technology/

company)?  

Secondary  research  sources  •  Websites    •  Books    •  Industry  Journals  and  Research  Publica9ons  •  NewsleZers  •  Third  Party  Analyst  Reports  •  Company  Brochures  

Primary  research  sources  •  “Informa9on  specialists”  at  libraries  •  Surveys  (online  –  more  quan9ta9ve)  •  Focus  groups  (online  or  in  person  more  qualita9ve),  •  Trade  shows    •  Third  Party  Industry  Analysts  •  Through  Social  Media  (facebook,  twiZer,  Quora)  

Ques4ons  to  ask:  

-­‐Is  my  technology  really  disrup9ve?  If  so  what  is  it  replacing  ?  

-­‐Who  is  my  direct  compe9tor  at  my  price  point?  

-­‐Does  my  compe9tor  have  a  diversified  por`olio?  

How  to  find  the  answers:  

1.  Consider  patent  or  prior  art  searches  –  Public  databases  like  USPTO  or  WIPO,  or  paid  databases  like  Delphion  or  Total  Patents  

2.  Understand  your  posi9on  in  the  “value  chain”  3.  Compare  product/technology  capability/claims:  use  

product  brochures  from  trade  shows  or  product  claims  from  websites  

4.  Conduct  a  SWOT  analysis  and  Industry  analysis  (Porters  Five  Forces)  to  determine  your  compe99ve  edge  in  the  industry  

Strengths    Capabili9es?  Compe99ve  advantage?  USP’s?  Price,  value,  quality?  Experience,  

knowledge,  data?  Resources,  assets  and  people?  Loca9on  and  

geographical?  

Weaknesses    Gaps  in  capabili9es?  Lack  of  compe99ve  strengths?    

Financials?  Cashflow,  start-­‐up  cash  drain?Accredita9ons?  

 Processes  and  systems  etc.?  

Opportuni9es  Compe9tors  vulnerabili9es?  Industry  or  lifestyle  trends?  

Global  influences?    

Niche  target  markets?  Partnerships,  agencies,  

distribu9on?  Tac9cs  –  major  contacts?  

Threats  Legisla9ve  effects?  

Environmental  effects?  Compe9tor  inten9ons?  Vital  contracts  and  

partners?  Loss  of  key  staff?  Sustainable  financial  

backing?    

Internal  

External  

Favorable   Unfavorable  

-­‐What  is  my  poten9al  market  vs  addressable  market?    (i.e.  What  you  wish  it  to  be  vs.  what  is  realis9c  ?)  -­‐What  is  my  market  share  among  compe9tors?  -­‐What  is  my  market  share  in  Canada/Ontario?  

1.  Consult  market  reports  from  mul9ple  vendors    2.  Be  clear  about  the  “defini9on”  used  3.  Sizing  the  market  in  publicly  traded  space  can  be  easier  than  

with  privately  held  companies:    a.  BoZom  up  method  –  aggregate  revenues  of  all  players  

–Tier  1,  2  or  3  –  You  are  likely  in  Tier  3  b.  Use  unit  price  and  volume  of  sale  as  a  means  to  

determine  market  share  of  the  company  and  total  market  size  

b.  Look  at  annual  reports,  tax  filings,  press  releases,  Tech  blogs,  product  brochures  etc.  

4.  Market  sizing  at  regional  levels  is  more  logical    –  NA,  EU,  Asia,  Middle  East  

5.  Ul9mately  make  realis9c  assump9ons!!  

-­‐Should  I  be  selling  my  products  outside  of  North  America?  

-­‐What  are  the  cultural  &  gender  preferences  or  differences  in  that  market?  

-­‐What  are  the  regula9ons?  Are  they  favorable  or  not  ?  

-­‐What  partnerships  do  I  need?  

1.  Consult    reports  on  customer  preference  and  behavioral  changes  –  Frost  &  Sullivan,  Datamonitor,  Forrester,  Industry  Associa9ons,  GLG  healthcare    

2.  Use  social  media  to  your  advantage  –      E.g..  P&G’s  teenage  feedback  on  feminine  hygiene  products  through  social  media  sites;  Consider  focus  groups  or  expert  advisory  panel  discussions  before  developing  a  product  

3.  Tap  into  Canadian  Trade  Commissioners  office  (DFAIT)  in  other  countries  –  as  simple  as  local  news  clippings  

4.  Complete  a  P.E.S.T  analysis  for  that  par9cular  geography  to  understand  the  Poli9cal,  Environmental,  Social  and  Technological  market  forces  

Poli9cal  Government  Type  

Government  Stability  

Freedom  of  Press,  Rule  of  Law,  Bureaucracy,  Corrup9on  

Regula9on/De-­‐regula9on  trends  

Social/Employment  Legisla9on  

Likely  Poli9cal  Change  

Economic  Business  Cycle  Stage  

Growth,  Infla9on  &  Interest  Rates  

Unemployment,  Labor  Supply,  Labor  Costs  

Disposable  income/Distribu9on  

Globaliza9on  

Likely  Economic  Change  

Socio-­‐Cultural  Popula9on  Growth/Age  Profile  

Health.  Educa9on,  Social  Mobility  

Employment  PaZerns,  Aotudes  to  work  

Press,  Public  Opinion,  Aotudes  and  Taboos  

Lifestyle  Choices  

Likely  Socio-­‐Cultural  Change  

Technological  Impact  of  Emerging  Technologies  

Impact  of  Internet  and  Reduced  Communica9on  Costs  

R&D  Ac9vity  

Impact  of  Technology  Transfer  

Likely  Technological  Change  

PEST  Analysis  Framework  

-­‐Who  has  the  most  innova9ve  business  model  out  there?  i.e.  Can  I  apply  those  best  prac9ces?  

-­‐What  is  my  pricing  structure?  

-­‐What  is  my  revenue  model?  

-­‐Should  I  white  label  or  license?  

1.  Use  focus  groups  to  determine  price  points  –  B2B  or  B2C  

2.  Give  considera9on  to  geographic  loca9on  before  pricing  your  product  

3.  Consider  manufacturing  yourself  and  sell  directly  or  “white  label”  to  tap  into  a  exis9ng  company/manufacturers  with  name  recogni9on  in  your  market  place  

4.  Don’t  want  to  manufacture  it  yourself  but  license  it  out  to  others  –  Need  a  provisional  patent  before  pitching  your  idea  

Should  I  be  selling  this  to  the  DOD  instead  of  healthcare?    

Are  barriers  to  entry  low  in  certain  ver9cals?  Less  regula9ons,  price  agnos9c  ?    

Could  one  industry  be  my  first  entry  point  before  I  tackle  another  ver9cal?  

Should  I  target  government  or  the  private  sector?    

1.  Understand  the  ver9cal  markets  of  your  compe9tors  and  target  least  compe99ve  ver9cals  

2.  Are  there  any  investments  happening  in  a  par9cular  sector,  government  agency  or  country  that  could  be  an  advantage?    a.  Aper  9/11  and  other  global  incidences  –  increase  in  security  technologies    b.  Cleantech  -­‐  Ontario’s  Green  Energy  Act  and  FIT  program  in  bringing  in  investors  into  the  province;  China  inves9ng  $5  B  in  cleantech  in  next  3  years  

Is  there  really  a  market  need  here?  

Whether  the  answer  is  a    “Go”  or  “No  go”  understanding  your  market  /  customer  /  industry  dynamics  will  be  key.  

pg 24

Usha Srinivasan PhD Director of Market Intelligence MaRS Discovery District T 416-673-8144 E usrinivasan@marsdd.com W www.marsdd.com