HOW TO WIN THE PRICE WAR Positioning Brought to you by: Truong Bomi
Google Day X - How to win the Price War (Truong Bomi)
Apr 13, 2017
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%Trust me
I’m a
Incentivizing
customer at
I’m a
Incentivizing
customer at
me
There’s a way out
But
Market
Business Model
Strategy
Unfair
Advantages
MARKET
Which is the biggest market with most painful problems?
Problem
Big pain?
Price is an important concern for customers booking travel online.
Hotels leave you disconnected from the city and its culture.
No easy way exists to book a room with a local or become a host.
Rental listings platform
Problem worth solving
Market size
Reachably big?
1.9 billion + 532 million 10 million
Total addressable market Servable market Target NICHE market
Trips booked worldwide Budget & online trips Trips with Airbnb
Rental listings platform
Market size
Reachably big?
Target NICHE market
Untapped Market
Rental listings platform
Fierce Competition 10 million
Create uncontested market space
Make the competition irrelevant
Create & capture new demand
Break the value – cost trade-off
Competing in existing market space
Beat the competition
Exploit existing demand
Make the value – cost trade-off
BUSINESS MODEL
Have you found the right one yet?
Discovery & validate
Business Model that works
DIRECT MULTI-SIDED MARKET PLACE
Unaware Visitors Happy Customers
Freemium Model
Franchise Model
DIRECT
Unaware Visitors Happy Users
Happy Customers
Who pays (e.g, advertisers)
MULTI-SIDED
Unaware Sellers Happy Sellers
MARKET PLACE
Unaware Visitors Happy Buyers
Unaware Sellers Happy Sellers
MARKET PLACE
We take a X% commission
on each transaction.
Unaware Visitors Happy Buyers
Units
$
ProfitLoss
Break-even
point
STRATEGY
How to go to market successfully?
Starting from
Positioning
DIFFERENTIATION RELEVANCE
Starting from
Positioning
Low price
Low quality High quality
High price
DIFFERENTIATION
Starting from
Positioning
Low Environmental friendliness
Low quality High quality
High Environmental friendliness
Relevance
Source:
Taking right strategic go-to-market steps
Moor’s model
NICHE Market
by Alexandre Wayenberg
Value MapCustomer
Profile
Then getting to
Product – Market Fitbeing in a good market with a product that can satisfy that market
Then getting to
Product – Market Fit
How would you feel if you could no longer use [product]?
1. Very disappointed
2. Somewhat disappointed
3. Not disappointed (it isn’t really that useful)
4. N/A – I no longer use [product]40%
UNFAIR
ADVANTAGES
What are the secret weapons that hinder competitors from copied or bought?
Never forget to build up
Unfair Advantages
Product ResourcesTeam Traction
Can’t be easily copied or bought
Never forget to build up
Unfair AdvantagesProduct
50% of your time on PRODUCT
50% on TRACTION
Spend
Makes customers very happy
Does it better, different than anyone else
Remember “NICHE to WIN”
Never forget to build up
Unfair AdvantagesTeam
Entrepreneurs who have sold companies
Geeks with deep technical background
Sales/Marketing who make it rain
- Dave McClure, Investor, Founder of 500 Startup -
Never forget to build up
Unfair AdvantagesResources
Bootstrapping
Seed Round
Series A, B, C,…
IPO
Never forget to build up
Unfair AdvantagesResources
Partnership
Channels
Tech
Supply
Never forget to build up
Unfair AdvantagesResources
Partnership
Channels
Tech
Supply
Traditional Delivery
Companies
Never forget to build up
Unfair AdvantagesResources
Partnership
Channels
Tech
Supply
Traditional Delivery
Companies
Never forget to build up
Unfair AdvantagesTraction
CU
STO
MER
S
TIME (months)
Product – Market Fit
500 paid customers
Scale
5000 paid customers
Never forget to build up
Unfair AdvantagesTraction
Acquisition
Activation
RETENTION
Revenue
Referral
MarketPainful problem?
Big reachable market?
Blue vs. Red Ocean?
Market
Business Model
Painful problem?
Big reachable market?
Blue vs. Red Ocean?
Direct?
Multi-sided?
Marketplace?
Market
Business Model
Strategy
Painful problem?
Big reachable market?
Blue vs. Red Ocean?
Direct?
Multi-sided?
Marketplace?
Positioning?
J.Moor’s model?
Product – Market Fit?
Market
Business Model
Strategy
Unfair
Advantages
Painful problem?
Big reachable market?
Blue vs. Red Ocean?
Direct?
Multi-sided?
Marketplace?
Positioning?
J.Moor’s model?
Product – Market Fit?
Product?
Team?
Resources?
Traction?
Market
Business Model
Strategy
Unfair
Advantages
WIN THE PRICE WAR
Painful problem?
Big reachable market?
Blue vs. Red Ocean?
Direct?
Multi-sided?
Marketplace?
Positioning?
J.Moor’s model?
Product – Market Fit?
Product?
Team?
Resources?
Traction?
For more
Growth Hacking stories
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