New Market Creation

How to win in new markets using jobs-to-be-done thinking

Jobs-To-Be-Done Theory

People buy products and services to get jobs done

People want to get the whole job done ...

... on a single platform

Will pay more ... to get the job done better

Insight into a high-profit, market entry strategy

Define thejob-to-be-done

Discover segment

Get the whole job done

Define thejob-to-be-done

What job are people hiring my product for?

Adjust the temperature

That’s what the product does, but ...

What job are people trying to get done?

Product-centric Customer-centric

What job are people hiring my

product for?

What job is the customer trying

to get done?

Adjust the temperature

Achieve personal comfort

Control a process

Optimize process output

Kill weeds

Grow a crop

Define the job from the customer’s perspective

The entire job, not just part of it

Define thejob-to-be-done

Discover segment

Get the whole job done

Pay more to get the job done better

Over served

Under served

Satis

fact

ion

Importance

Does this segment exist in your market?

Segmentation

Traditional Segments

Vertical SizeGeography

Satis

fact

ion

Importance

Over served

Under served

Not Vertical

Satis

fact

ion

Importance

Over served

Under served

Not Geography

Satis

fact

ion

Importance

Over served

Under served

Not Size

Wrong Units

Convenient classifications do not explain differences

Must segment around unmet needs

Outcome-based segmentation

Broad MarketSa

tisfa

ction

Importance

Over served

Under served

Factor and cluster analysis: unmet needs

Satis

fact

ion

Importance

Over served

Under served

Market Segments

People will pay more to get the job done better

Willi

ngne

ss to

Pay

Low

High

No. of Job ExecutorsLow High

Willi

ngne

ss to

Pay

Low

High

No. of Job ExecutorsLow High

Need Curve™

Currently paying to get job done

Size of market

Willi

ngne

ss to

Pay

Low

High

Low High

Need Curve™

Increased Satisfaction

Premium market

No. of Job Executors

People will only pay more for significant improvement

Willi

ngne

ss to

Pay

Low

High

Customer SatisfactionLow High

Success = Know All Unmet Needs

Define thejob-to-be-done

Discover segment

Get the whole job done

Get the whole job done

Products rarely get the whole job done

Get more of the job done

Get it done significantly better

Win a disproportionate share of profits

Starve the competition of capital

Raise the barrier to entry

Adjust environment

Monitor conditions

Make modifications

Return room to original condition

Define comfort

Assess the room’s

comfort level

Determine what

variables to adjust

Determine what

adjustments to make

Achieve personal comfort

Adjust environment

Monitor conditions

Make modifications

Return room to original condition

Define comfort

Assess the room’s

comfort level

Determine what

variables to adjust

Determine what

adjustments to make

Thermostat

Adjust environment

Monitor conditions

Make modifications

Return room to original condition

Define comfort

Assess the room’s

comfort level

Determine what

variables to adjust

Determine what

adjustments to make

Nest

7 times the price

5%market share

5%market share

20%profit share

Remove dirt from carpet

Monitor dirt removal

Adjust dirt removal plan

Dispose of dirt

Determine condition of

carpet

Assess best method to remove dirt

Gather needed supplies

Set up for dirt removal

Remove dirt from carpets

Remove dirt from carpet

Monitor dirt removal

Adjust dirt removal plan

Dispose of dirt

Determine condition of

carpet

Assess best method to remove dirt

Gather needed supplies

Set up for dirt removal

Traditional vacuum

Remove dirt from carpet

Monitor dirt removal

Adjust dirt removal plan

Dispose of dirt

Determine condition of

carpet

Assess best method to remove dirt

Gather needed supplies

Set up for dirt removal

Dyson

5 times the price

24%market share

24%market share

59%profit share

Dozens of jobs done

Thousands of jobs done

5 times the price

21%market share

21%market share

72%profit share

Let’s reinvent the TV

What job are customers trying to get done?

Watch TV

Get jobs done by viewing content

View contentMonitor the

viewing experience

Modify content

selection

Assess experience

Determine what jobs the viewer wants to get done

Determine what content will get the

job done best

Organize the content for

viewing

Confirm viewing plan

Get jobs done

View contentMonitor the

viewing experience

Modify content

selection

Assess experience

Determine what jobs the viewer wants to get done

Determine what content will get the

job done best

Organize the content for

viewing

Confirm viewing plan

Traditional TV

View contentMonitor the

viewing experience

Modify content

selection

Assess experience

Determine what jobs the viewer wants to get done

Determine what content will get the

job done best

Organize the content for

viewing

Confirm viewing plan

Apple iTelevison

5%market share

20%profit share

Define thejob-to-be-done

Discover segment

Get the whole job done

Win big in new markets