Sensor Market Strategy

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Developing a Strategic Marketing Plan for your Sensor Business

Presented by Bryan Manning

President B & D International, LLC


Typical Strategic Planning Approach

  Strategic Planning at Hawker Siddeley

  Time consuming: ties up valuable key staff for long periods

  Complicated

  Very expensive

  Difficult to implement


Marketing Strategy 1,2, 3

  Step 1: Where we are today Internal and External Analysis

  TALK TO CUSTOMERS   Company’s Core Competencies   Know your competition   What’s happening in your Industry

  Select company’s overall strategy

  Step 2: Where we want to go Marketing Strategy

  Segmentation   Targeting   Positioning

  Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and maintain market leadership

  Step 3: How will we get there Marketing Tactics

  Product   Price   Place (channels)   Promotion

  Purse tactics that fit the Strategic Positioning


Step 1: Where we are today

Internal & External Analysis

  TALK TO CUSTOMERS   First and most important step in any marketing

strategy   Talking to customers important at every stage   Concentrating on existing customers often

overlooked   Value of existing customers can be very high


Growth Strategy Options

Best sequence •  Start with Existing Markets/Products •  Then Existing Markets/New Products •  Then New Markets/Existing Products

Existing Products New Products

New Markets

Existing Markets

#1

Market Penetration Product Development

Market Development Diversification

#2

#3 #4


Growth Strategy Options

Best sequence •  Start with Existing Customers/Products •  Then Existing Customers/New Products •  Then New Customers/Existing Products

Existing Products New Products

New Customers

Existing Customers

Customer Penetration

Product Development

Market Development Diversification


Feeding the Sales Pipeline

1.  Inquiries

2.  Qualified Leads

3.  Demo

4.  Technical Eval.

5.  Proposal

6.  Closing - Contract

$40M (200)

$15M (75)

$8M (40)

$5M (25)

$3M (15)

$2M (10)

%

Prob

0%

10%

30%

50%

70%

90%

Customers

Marketing Lead Generation


Feeding the Sales Pipeline

1.  Inquiries

2.  Qualified Leads

3.  Demo

4.  Technical Eval.

5.  Proposal

6.  Closing - Contract

$40M (200)

$15M (75)

$8M (40)

$5M (25)

$3M (15)

$2M (10)

%

Prob

0%

10%

30%

50%

70%

90%

Customers

Marketing Leads + Customer Leads


Talk to Existing Customers -The first step

  Contact existing customers on a frequent basis

  Ask them is they are satisfied with your performance

  Customer Surveys

  Pursue other applications in existing locations

  Ask for contact names in other locations in the US and overseas


Understand Your Core Competencies

  Loyal Customer base   Brand image   Technology (product, process, communication)

  Quality/Service   Marketing   Sales/Distribution channels   Low cost producer   Global presence


Know Your Competition

Why?   Defend your base business   Important in differentiation/positioning   Forecast changes in the marketplace: (technology, pricing,

trends etc.) How?

  Customers/salesforce   Constantly tracking them (by yourselves or with outside help)   Benchmarking   Shows/Seminars/Publications


Know Your Competition Sun Tzu The Art of War

400 – 320 BC


Sun Tzu says….

  What enables the enlightened ruler and the sage general to achieve results beyond the capability of the ordinary man is FOREKNOWLEDGE

  The nature of war is ceaseless change – be prepared to change plans in mid-course

  The expert commander strikes only when the situation assures victory


Sun Tzu says….

  The Art of War strategic and tactical doctrines are based on deception; the creation of false appearances to mystify and delude the enemy   The indirect approach   Ready adaptability to the enemy’s situation   Flexible and coordinated maneuver of separate

combat elements   And speedy concentration against points of

weakness

  The only constant in war is constant change


Know Your Competition

Gates Casts Cold Eye on Google

CARLSBAD, Calif. -- Don’t be fooled by all those speeches about global health and high-school education. Bill Gates is still, first and foremost, about clobbering Microsoft Corp’s Competition. Courtesy: The Wall Street Journal


Know What’s Happening in Your Industry

  Keep track of trends in your industry   Size and growth of Industry and sub-segments   Changes and direction of new technology   Global trends   New players in the industry

  Keep track of trends in your Customer’s industry   Size and growth of Industry and sub-segments   Track new potential applications   Vendor reduction   Outsourcing   Off shore manufacturing


Step 1: Where we are today

Final Step: Select Strategic Alternatives

  After an in-dept review of “where you are today” decide on one or more overall strategic alternatives


Strategic Alternatives

Differentiation

Low Cost

Focus

Preemptive Move

Synergy



  Michael Porter says: “Differentiation and low cost represent the two basic strategies available to firms and that all successful strategies will involve one or both of these thrusts”



Differentiation

Low Cost

Focus

Preemptive Move

Synergy


Differentiation Strategy

Product offering is differentiated from the competition, concentrating on what target customers value most such as:

  Quality   Reliability   Ease of use   Features (e.g ability to handle harsh

environments)   Excellent Service


Focus Strategy

Focusing the business on either a:   Focus on the type of Sensor product offered:

  Temperature and Pressure Sensors   Level Sensors   Non-contact Displacement Sensors

  Focus on relatively small segments or sub segments of the market:   Automotive braking systems market   Brake testing systems   Disc Brake displacement measurement


Avoid Strategy Dilution or Distraction

Compete with Limited Resources

Bypass Competitor

Assets/Competencies

Providing Positioning

Strategy

Reduce Competitive Pressures

Focus Strategy

Figure 10.4


Why Differentiation and Focus?

  The Sensors market is extremely fragmented (there are thousands of sensor companies worldwide)

  It’s so fragmented because the market can be subdivided by three non-exclusive basic categories:   Parameter sensed (Temperature, Pressure etc)

  Technology used (bi-metal, thermistors, RTDs etc)

  Specific Applications (e.g. satellite thermal control)


Why Differentiation and Focus?

  The market is therefore highly fragmented into thousands of market sub segments

  For example one of a sensor suppliers focuses could be supplying Temperature sensors using bi-metal technology for the application of satellite thermal control



 Step 1: Where we are today Internal and External Analysis















Step 2: Where we want to go..

Develop Marketing Strategy


Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and maintain market leadership



Segmentation

Separate customers or potential customers into groups with like wants and needs


Segmentation



Segmentation

Typical Sensors Market Segmentation   Property sensed   Market   Application   Features/Benefits   Geographic


Segmentation by Market

Automotive

Aerospace

Medical


Market by Application

Aircraft Thermal Control

Satellite Thermal Control

Aerospace Market



Targeting What bases?   Excellent Match with company’s Core Competencies   Matches companies overall strategy   Competition (or lack thereof)   Size/growth   Profitability   Company’s feature and benefits match target market’s like

wants and needs   Resources required



Positioning   Describes the position a firm wishes to occupy in

the mind of customers in the target segment versus the competition

  According to David Aaker, Positioning must:   Resonate with the target market   Differentiate from competitors   Reflect the culture, strategy, and capabilities of the

business



Positioning   Positioning statement should include:

  What (type of product offered)   Who (target market and/or application)   Differentiation (how you are different from the competition)

  Once you have developed excellent Positioning you are 80% there because your road map is in place

  You know what you are offering to who, specifically and why they should by your product.

  Some examples….



 Step 2: Where we want to go Marketing Strategy















Thank You!!

Sensor Market Strategy

Documents

value of existing customers

existing locations

existing marketsnew

existing customersnew

existing marketsproducts

existing customersproducts

customers important

marketing strategy