Sponsor Bar V-Lab presentation

Solving Today’s Sponsorship Problems

OVERVIEW > Our Vision

To solve the problems between sponsors and nonprofits using online technology, while enhancing the sponsorship relationship among all stakeholders.

OVERVIEW > Our Strategy / Product

To solve the problems between sponsors and nonprofits using online technology, while enhancing the sponsorship relationship among all stakeholders.

Vision

Strategy

Product

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?

Assumptions on Business Model Canvas (B.M.C.)

OVERVIEW > 1st Problem

2 Sided Market : Who’s First?

Sponsors First

Nonprofits First

OVERVIEW > 1st Solution

We chose Nonprofits!• Easier accessible• They need sponsorship

Yeah!!!

Target one side!

OVERVIEW > Our Classic B.M. Canvas

Our assumptions to help nonprofits with sponsorship

OVERVIEW > Our Classic B.M. Canvas

We believed - Brand visibility &- Logo management

were big issues with nonprofits.

OVERVIEW > OAP Focus

Determine market size/opportunity

Understand riskiest part of BMC

Create hypotheses based on risk

Test Hypotheses

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Opportunity Analysis

The Plan

MARKET ANALYSIS >

MRKT ANALYSIS > Nonprofit Mrkt

1.6M Nonprofits in the US

$1.4Tr in Expenditure

in 2009

A lot of nonprofits & they spend a lot

MRKT ANALYSIS > Sponsorship Mrkt

Corporate Cause Spending (2011) - $1.6B

US Sponsorship Market (2011) - $18B

Global Sponsorship Market (2011) - $48B

Companies spend a lot on sponsorship!

MRKT ANALYSIS > Assumptions

What if…. • Nonprofits pay $5 to $25 per month for a solution

• 30% of nonprofits have website (480,000)

• 5% of those with websites purchase a solution (24,000)

MRKT ANALYSIS > Summary

$0

US Market Opportunity: $1.4M to $7.2M

Total US Market Size: $96M to $480M

US Corp Cause Spending: $1.8B

Revenue assumptions from nonprofits.

$$$$

MRKT ANALYSIS > Sponsor Corps

Any revenue from sponsor companies?

Coming soon to a PPT slide near you!After we complete nonprofit analysis

UNDERSTAND RISK >

UNDERSTAND RISK > ON B.M. Canvas

Value Prop is riskiest. Nothing else matters...

…until Value Prop is validated

UNDERSTAND RISK > ON B.M. Canvas

Create assumptions to test if nonprofits want a solution for:- Brand visibility &- Logo management

Next Step:

HYPOTHESIS ASSUMPTIONS >

HYPOTHESIS > Create Assumptions

(1) They are looking for sponsorship (2) they currently have sponsors (3) They will want Bar if it is free (4) They can install the bar (themselves or through developer) (5) They can add Bar to their Sponsorship Levels (6) They will add logos to the Bar (7) They will sell the bar to Sponsors (8) They are looking for creative ways (9) They will consider the pop-up as a form of advertising (10) They don't mind brands social advertising about other events on their site, once they get more sponsorship in return

UVP Assumptionsto create

HYPOTHESIS > Test Plan

(1) They are looking for sponsorship (2) they currently have sponsors (3) They will want Bar if it is free (4) They can install the bar (themselves or through developer) (5) They can add Bar to their Sponsorship Levels (6) They will add logos to the Bar (7) They will sell the bar to Sponsors (8) They are looking for creative ways (9) They will consider the pop-up as a form of advertising (10) They don't mind brands social advertising about other events on their site, once they get more sponsorship in return

Assumptions to create Interview Questions

Landing Page Testto create

TEST HYPOTHESIS ASSUMPTIONS >

TEST HYPOTHESIS > Location

27 nonprofits15 face-to-face Interviews

Customer Observation on landing page

TEST HYPOTHESIS > Learning (2 of 8)

The solution (and new value proposition) should address helping nonprofits with increasing & managing resources to get more sponsorship. Only 1 out 11 nonprofits said they would be interested in proposed solution immediately

The solution should take into consideration the ability to help nonprofits who have not started looking for sponsorship.

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2

TEST HYPOTHESIS > Learning (4 of 8)

Nonprofits tend to look for sponsors in their value-chain and geographical location (impact zone).

Sponsors visibility was the highest importance to nonprofits, but it was never listed as problem. Therefore, the conclusion is - nonprofits believe they are giving sponsor companies the best visibility they can get.

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TEST HYPOTHESIS > Learning (8 of 8)

The solution should should be compatible with wordpress plugin and drupal.

Logo management is not necessary.

The solution must not present the sponsor’s brand like an advertisement, and our value proposition should not include the word “advertising” in it.

The landing page does not clearly explain the solution and the benefit. It also does not address the nonprofits biggest challenges - no time & resources.

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WHAT WE LEARNED >

LEARNING > Dig Deeper

- Our UVP Failed

LEARNING > Dig Deeper

- Our UVP Failed

- But we have not tested it with Sponsor Companies

LEARNING > Dig Deeper

- Our UVP Failed

- But we have not tested it with Sponsor Companies

- Were our interviews done right?

NEXT STEPS >

NEXT STEPS > Use Lean B.M. Canvas

Separate UVP into Problem & Solution Hypotheses

To test whether solution or problem failed.

NEXT STEPS > Test New Hypothesis

Test new UVP (and old UVP) through Solution / Problem Hypothesis

NEXT STEPS > Interview Process

Use Ash Maurya’s Interview Process

STILL Solving Today’s Sponsorship Problems

And continuing to OEP!