Market creation elac 2015

*So  Erik Simanis, PhD Partner The Intrapreneur Lab www.eriksimanis.com

Market Creation: Driving Adoption of New Products, Profitably

Brian Kurtz Partner The Intrapreneur Lab

© 2015, Erik Simanis 2

SC Johnson: Nairobi, Kenya

3

$  

4

Solving Pressing Needs?

© 2015, Erik Simanis 5

=  

Needs ≠ Market

MARKET  CREATION  

Embed  New  Product  Use  Rou:ne  into  

Consumers’  Lifestyles  

6

Product  Performances  

Product Routines

Consumer  Performance  Built    Around  a  Product    

7

SCRIPT  PROPS  

MOVES   CAST  

Concepts  and  feelings  that  a  

consumer  links  to  a  product.      

Physical  ar=facts  in  a  consumer’s  life  that  touch/interact  with  a  

product.      

Behaviors  and  rou=nes  consumers  prac=ce  in  conjunc=on  with  a  

product.  

People  and  social  iden==es  that  

consumers  interact  with  when  using  a  

product.  

Product  Performance  

8

Product  Performances  

•   Value  experienced  by  a  consumer  based  on  the  par=cular  product  performance  •   The  more  product  performances  a  consumer  knows,  the  more  value  they  get  from  that  product    

One Product, Many Performances

9

…Point  of  Use  Water  Purifica=on  for  Rural  Mother  

Describe a Product Performance For…

10

SCRIPT  PROPS  

MOVES  CAST  

Concepts  and  emo=ons  that  a  

consumer  links  to  a  product.      

Physical  ar=facts  in  a  consumer’s  life  that  touch/interact  with  a  

product.      

Rou=nes  and  rou=nes  consumers  prac=ce  in  conjunc=on  with  a  

product.  

People  and  social  iden==es  that  

consumers  interact  with  when  using  a  

product.  

Product  Performance  

11

The Market Creation Challenge

Product  rou:nes  are  complex  and  highly  personalized.      

Lacking  benchmarks,  consumers  learn  new  product  rou:nes  through  repeated  experimenta:on.    

Consumers  can’t  evaluate  a  product  un:l  a  product  rou:ne  is  embedded  into  their  life.    

12

Consumer  Research  

Different Approach To…

Marke=ng  Strategy  

© 2015, Erik Simanis 13 13

CONSUMER RESEARCH MARKET CREATION

© 2015, Erik Simanis 14

Consumer  data  and  feedback  about  product  specs  and  pricing  are  liNle  more  than  random  guesses.  

Focus  ini=al  research  on  the  

consumer  lifestyle  changes  that  accompany  

adop=on  of  a  new  product  rou=ne.    

The Consumer Research Dilemma

Value  Fog    

© 2015, Erik Simanis 15

Rela=onships  Rela=onships  

Time  

Interpersonal  

Rela=onships  

Space  

Consumer Lifestyle Canvas

Budget  

Iden=ty  

Rou=nes  

16

Three-­‐Stone    Open  Fire  “Stove”  

Bio-­‐Fuel    Cook  Stove  

What are potential changes…

Rela%onships,Rela%onships,

Time,

Interpersonal,

Rela%onships,Space,

Budget,

Iden%ty,

Rou%nes,

17

© 2015, Erik Simanis 18 18

MARKETING STRATEGY MARKET CREATION

© 2015, Erik Simanis 19

You  can’t  “EDUCATE”  nor  “MESSAGE”  your  way  into  a  new  market  without  breaking  the  bank.    

Consumer  learning  strategies  have  to  

be    built  into  the  offering  and  

business  model.    

The Marketing Challenge

© 2015, Erik Simanis 20

Learning Strategies

There’s  No  Place  Like  Home  

Wash  Rinse  Repeat  

Monkey  See,  Monkey  Do  

Two  Heads  Are  BeSer  Than  One  

© 2015, Erik Simanis 21

SC Johnson, Ghana

© 2015, Erik Simanis 22

The Market Creation Mix

PRODUCT  

PLACE  

PRICE  •  Product  Bundle  •  Mul=-­‐func=onality  •  Props  

•  Loyalty  Awards    •  Brand  Badges  &  

Community  Rituals  •  Product  Placement  

•  Subscrip=on  Pricing  •  Layered  Pricing  •  Group  Customer  

•  Skeumorphs    •  Local  Codes  •  Local  Characters  

Value  Open  

PROMOTION  

VALUE  OPEN  

© 2015, Erik Simanis 23

Are there other techniques that could be part of a

Market Creation Mix?

*So  Erik Simanis, PhD Partner The Intrapreneur Lab www.eriksimanis.com

Market Creation: Driving Adoption of New Products, Profitably

Brian Kurtz Partner The Intrapreneur Lab