Transcript
Routes to market
February 2011 Routes to market
David Jenkins
Cambridge University Entrepreneurs; February 2011
What’s the question?
• How can we best extract value from our idea
and/or invention?
• What do we need to do to earn our first
revenue?
February 2011 Routes to market
• How should we interface with our customers?
– This is the question you get when you google ‘routes
to market’
• I’ll do my best to answer all three and use the
value chain model to link them
How can we best extract value?
• How far out do we go?
– ie which commercialisation route should we chose
• How far down do we go?
– ie how much of the value chain do we want to
capture?capture?
February 2011 Routes to market
How far out do we go?
(after Qi3; www.qi3.co.uk)
• Establish a new companySpinout/start-up
• Transfer to a licensee, with initial payments and ongoing royaltyLicence
• Work together on a joint project. Usually involves supply chain partnershipCollaborative R&D supply chain partnershipCollaborative R&D
• Provide skills to enable knowledge transferConsultancy
• Work within the company for a period of timeSecondment
• Use of facilities available in university by 3rd partyFacilities Access
February 2011 Routes to market
How far down do we go? An
introduction to the value chain
• This is the product end
– Discover: your bit. What’s the big idea? Does it have
value? Can I protect it?
discover develop deliver
value? Can I protect it?
– Develop: can I turn my big idea into a product (or
service) (more IP) for which people might pay?
– Deliver: how can I produce/manufacture this product
and/or resource the delivery of this service?
February 2011 Routes to market
How far down do we go? An
introduction to the value chain
• This is the customer end
– How can I persuade people to choose my product
and/or service and buy it?
sell supply service
and/or service and buy it?
– How do I get my product and/or service to the
customers and collect his or her money?
– What should I do to look after my customers after I’ve
made the sale ?
February 2011 Routes to market
How far down do we go? An
introduction to the value chain
• Marketing is the glue to hold it together:
– Traditional marketing is product, price, promotion and
position and there’s little wrong with that.
discover develop deliver market sell supply service
position and there’s little wrong with that.
• Product (and/or service): what exactly will my customers buy?
• Price: what’s my product and/or service worth?
• Promotion: how do I communicate?
• Position: which sales channels will I be using?
February 2011 Routes to market
Marketing actually spans the
length of the supply chain
discover develop deliver market sell supply service
inbound marketing
strategic marketing
tactical marketing
operational marketing
relationship marketing
February 2011 Routes to market
• It doesn’t matter how far down the supply chain you go you’ve still got to do some marketing
• And doing it well, continuously and consistently, will build a brand … but only if your customers are supportive.
This gives us a useful check list
for what you’ve got to do
• What’s by big idea? How do I protect itdiscover
• How can I turn my idea into something which customers will buy?develop
• How can I produce/manufacture/build my product and/or resource my service?deliver
February 2011 Routes to market
• How can I build my brand? How can I attract customers etcmarket
• How can I persuade potential customers to buy?sell
• How can I get my product and/or service to my customerssupply
• How can I look after my customers once they’ve boughtservice
If you have decided to ‘spin out’
and go all the way to market
• Then you need to decide how you will interface
with your customers:
– Remotely (typical web business);
– Directly (own sales force); or
– By proxy (use of 3rd party intermediaries)– By proxy (use of 3rd party intermediaries)
• And this decision needs to be taken for each of
the final 3 value chain elements
– Sell, supply and service
• Whatever you decide: you’ve still got to manage
February 2011 Routes to market
Your choices will be influenced
by the nature of your business
• Obvious for software, low value items, BtoC
• Challenges you to ‘drive’ customers to you
• High fixed cost, low variable cost
Web: route of choice for many
today
• Best for high value and/or technical itemsDirect sales: • Best for high value and/or technical items
• Lots of control but issues of fixed cost and roll out
Direct sales: challenge of
managing people
• Low fixed costs and rapid roll out possible
• But mega management challengeDistribution: best of both worlds?
February 2011 Routes to market
Choosing your route to market is
really a 2 hour workshop itself
• If you really want to know more come along to
the St John’s Innovation Centre, 8 Mar 11 at
11.00 (there’s a rather good free lunch)
• For more info http://bit.ly/edvc6S
February 2011 Routes to market
Thank you!
David Jenkins; i2i-management.com
helping smaller businesses to do well
February 2011 Routes to market
top related