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Entrepreneurial methods in finding Product-Market-Fit. Lecture at StartupSauna Ilkka O. Lavas serial entrepreneur at IT and Media industry publisher at www.citydigital.fi
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Ship in harbour may be safe, but this is not what ship is built for.
Choose your des8na8on . Dra: your route. Remember: Success is not a des8na8on, it’s the journey.
Ilkka O. Lavas / City Digital Ltd at Aalto University 2014. Photo by Mar8n Nikolaj (CC BY 2.0)
Finding the Product-‐Market-‐Fit
Finding the
Product-‐Market-‐Fit
Entrepreneurial methods
at Aalto University
Ilkka O. Lavas
Photo by Lavas @ Burm
a Sprite Clone In Burm
a / Myanm
ar Is exam
ple of innova8ve method.
Ilkka O. Lavas
• 2 books about entrepreneurship • Partner, board member, investor – PorYolio of 12 businesses – 10+ aquisi8ons done – 3 exits
• Young Entrepreneur of the year 2009 in ’Southern Finland’
• 35years, 2 boys, 1 wife, 1576 a connec8ons, 1035 linkedin conns, twiber @lavas
PorYolio
EXITed:
EXITed:
EXITed:
Mobo
When you spend 8 hours doing something, you should be able enjoy it Most important in work life is to enjoy work and your achievements at work itself
you need to have good feeling to go to work every day if you don’t like your job or you are dissa8fied at job: QUIT
Entrepreneurial Marke8ng: Agility
• Agility as a success factor?
• What is agility?
Photo by Tarja Ryhannen Mitrovic / Flickr
BUSINESS PLAN
1. Are you enthusias8c? Why? Purpose
2. Start from yourself. Your Mission and Vision. 3. Choose where to start
dra: first steps of your business trust your ins8ncts
4. Clarify how business works How do do find first customer?
Learn how can you provide your first customer great services
5. Don’t plan too much 6. Just do it.
Learn.
Be beber.
Execute. Photo: Ollis Leppänen
hbp://liiketoimintasuunnitelmaroskakoriin.fi/
hbp://www.businessmodelgenera8on.com/downloads/business_model_canvas_poster.pdf
MARKETING IS A CONTINUALLY OPTIMIZING LEARNING PROCESS
Secrets of Entrepreneurial marke8ng
AIDA • A -‐ Aben8on (Awareness): abract the aben8on of the customer.
• I -‐ Interest: raise customer interest by focusing on and demonstra8ng advantages and benefits (instead of focusing on features, as in tradi8onal adver8sing).
• D -‐ Desire: convince customers that they want and desire the product or service and that it will sa8sfy their needs.
• A -‐ Ac8on: lead customers towards taking ac8on and/or purchasing.
Choose your Target Audience
(Segment)
A-‐ Aben8on (Awareness)
Marke8ng message, Gepng no8ced (push)
I -‐ Interest: raise customer interest by focusing on and demonstra8ng
advantages and benefit
D -‐ Desire: convince customers that they want and desire the
product or service and that it will sa8sfy their
needs.
A -‐ Ac8on: lead customers towards taking ac8on and/or
purchasing.
Outbound marke8ng
© Ilkka Lavas 2012 W3 Group Finland Oy
Inbound marke8ng
1. Abract traffic 2. Convert visitors to
leads 3. Convert leads to sales 4. Turn customers into
repeat higher margin customers
5. Analyze for con8nuous improvement
1. Get found 2-‐4. Convert 5. Analyze.
Target Audience
A-‐ Aben8on (Awareness)
Marke8ng message, Gepng no8ced (push)
I -‐ Interest: raise customer interest by focusing on and demonstra8ng
advantages and benefit
D -‐ Desire: convince customers that they want and desire the
product or service and that it will sa8sfy their
needs.
A -‐ Ac8on: lead customers towards taking ac8on and/or
purchasing.
Create Audience
Tell your audience (tweet, facebook,
email)
Convert visitors to leads
Convert leads to sales
Convert buyers to buy more and create
recurring sales
Collect Data, Analyze, Learn and
develop
Outbound marke8ng
Inbound marke8ng
© Ilkka Lavas 2012 W3 Group Finland Oy www.w3.fi
Analysis
CHOOSE YOUR SEGMENT Where to start ?
The business model canvas
Something Somebody
Who? START BY THINKING TO WHOM SHOULD I SELL
Customer Segment Example
Finns in Finland 5.400.000 ppl
Customer Segment Example
Finns living abroad 400.000 Finns + Kids 800.000 Finns
United States 700,000 Sweden 470,000 Canada 131,040 Brazil 90,000
OFFERING – MARKET -‐FIT Case: Suomikauppa.fi
Search For business idea • Search for business idea – Living abroad – Need for Finnish food and products – There was no online-‐shop where you can buy Finnish products.
– Rela8ves sent Finnish Chocolate Fazer Sininen and Juhla Mokka Coffee. Difficult.
• Common sources for new ideas: Customers, Employees, Friends, Other Entrepreneurs, Magazines, Seminars, Common-‐Life-‐Problems/Situa8ons
Product
Customer Jobs
Customer Pains
Customers Gains
Is it safe to order online? What happens with the customs? How long 8me do I have to wait? How much do I have to pay?
I want to have Finland –party for my finnish kids. I want to teach my kids how to make rye bread yourself. I want Fazer Sininen Chocolate Now. I need to feed my babyborn. Eat something luxury
Happy family. Kids educated with finnish food-‐culture Experience Enjoy finnish candies Safe milk for the baby Delivered directly to home Safe for my kids. (vs china)
Timing • We we not first. There was one pioneer who failed. We learned from pioneer and harvested the benefits.
• Payment systems? Online payment? • Are your customers used to pay online? • Are your customers willing to buy? • Do your customers know of your existance? How do I reach my customers?
• Do your customers already recognize the need of your offering?
Be trustworthy
• ”Finland is not a country, it is a club.”, everyone knows somebody who knows you.
• You can sell easily once, but to sell the second 8me you must have been successful with the first delivery.
• Returning policies • Customer service • Good rela8ons with the customs • Import licences (US FDA, Australia etc) • Export licences • Reliability even during high peak seasons
Be ready to learn • You should never become too self-‐assured that you think don’t need to learn anything anymore.
• Learning is about the joy of imperfec8on. • Listen to your customers, our first 400 products were from our customer wish list, now more than 3000 products.
• Our customer were more experienced than us that they want Taffel Chips and Harwall Jaffa delivered to more than 100 countries.
• We did not think that many Finns can’t write or read Finnish properly anymore if they have lived 20+ years abroad.
Our predessor failed, and we did learn
• 1996-‐1998 there the pioneer with smaller offering at the same market.
• They did not meet the needs of customers: – Only 30 products (we have over 3000) – Slow delivery (we deliver very fast and reliable) – Service only in Finnish (we have 8 languages)
• It was not right 8me to do business: Business opportunity Time window was not open yet: – Paying online was not very common
EXPANSION: CHOOSING ANOTHER SEGMENT
If we can deliver finnish products abroad, who else may be interested?
The business model canvas
Something Somebody
ELSE =Different message!
MARKETING IS CONNECTED WITH SALES
Sales?
Example marke8ng funnel
Organic Traffic SEM
Visitors to Web Site Other Paid lead sources
Raw Leads Registered Visitors / coocies / emails /
retarge8ng data
Qualified Leads We know this customer is about to buy
Inside Sales
Closed Deal
Marke8ng
Sales
1000 -‐96% 40
-‐50% 20 20
-‐50% 10
Other Cases
Living in market turbulence: Technological changes
Turnaround Print media vs Digimedia Case CITY-‐magazine
"City Digital on kohderyhmäverkosto, joka keski8yy kaupunkikul8uurin ilmiöihin, vapaa-‐aikaan ja viihteiseen. City Digitalin tavoi8amat käy8äjät ovat noin 20-‐45-‐vuoBaita lapse8omia kaupunkilaisia, jotka kulu8avat rahansa ja vapaa-‐aikansa itseensä. He syövät tänään sitä puuroa mitä sinä haluat huomenna. City Digital tarjoaa perinteisen display mainonnan ratkaisujen lisäksi asiakkailleen yhdessä asiakkaan lähtökohdista toteute8avia sisältömarkkinoinB toteutuksia, jotka medioiden omat "naBivit" tuo8avat. Kiinnostavat sisältömarkkinoinB toteutukset on jae8avissa niin City Digital verkostossa kuin asiakkaan omissa kanavissa."
City Digital Käyttäjä: Urbaani 20-‐45 v aktiivinen ihminen
Miksi juuri nyt?
Digitaliza8on, iPads, mobile penetra8on is big enoug hbp://www.businessinsider.com /state-‐of-‐internet-‐slides-‐2012-‐10?op=1
Declining print revenues and circula8ons. hbp://www.slideshare.net/annabholm /wmemc-‐presenta8on-‐holm-‐ulhoi-‐uliyanova
Market Opportunity, Growing Market
1985-‐2012
" Business: print magazine
" Area: HKI, Tre, Oulu, Vaasa, Turku. Local big ci8es
" Customers: Local, Finnish customers
" Circula8on 200k-‐450k
" Unique Visitors on website 100k
" Content creators: 20
2012, 2013 -‐>
" Business: Digital media family
" Area: Finland, Global
" Customers: Brands, local, Finnish and Interna8onal customers and brands
" Circula8on 1100k
" Unique visitors 8000k (8M)
" Content creators: 150-‐200
Never Give Up!
Fail, Fail, Fail again but always fail forward! • Angry birds was 53rd game of Rovio • SuperCell guys worked in different businesses for 20 years before huge win
1. Know where you
are
2. Decide, where you want to go.
3. THEN GO
4. Fail and Learn
4. Be beber
REMEMBER.
YOUR MISSION IS NOT MONEY.
MONEY
IS RESULT
OF AWESOME EXECUTION
Media Digitaliza8on is global opportunity
www.citydigital.fi www.ilkkaolavas.com [email protected]
Twiber: @lavas Facebook: IlkkaLavas Gsm +358 400 997969 www.city.fi/profiilit/lavas/blogi hbp://www.linkedin.com/in/ilkkaolavas
