Transcript Business idea and marketing plan

Master of Science Program in
Innovation and Entrepreneurship
ENT 4000
Group work session 3 – 09/09-08
Norwegian School of Entrepreneurship
Homework
Business Idea and Marketing Plan
Presentation 23.09.08
ENT 4000 - Group Work Session 3
The Business Plan
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Executive summary
Business idea
Management team
Marketing plan
Businessmodel og organization
Operational plan
Financial plan
Risk analysis
ENT 4000 - Group Work Session 3
Business idea
The business idea should answer the following:
• Who is the customer/ What is the market?
– In example, is it companies/what kind of companies (size, industry etc.)?
– Or is it a person/what kind of person (i.e. age 30-55, single, affluent)?
– Remember that your customer is not necessarily the same as the enduser!
• What is the customer’s benefit / what kind of problem do you
solve / what are the unique advantages?
• Why should the customer pay for your product or service?
• Are you offering a product, a service or both?
ENT 4000 - Group Work Session 3
Value proposition
• A short summary of these questions is called a
companies ”value proposition”
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Product
Price
Availability
Service
Experience
• An example:
The value proposition for Amazon.com could be described as:
An easily accessible Internet site that is convenient all of the
time to provide a wide selection of books, CDs, and videos at a
fair price to the busy, computer-literate customer
ENT 4000 - Group Work Session 3
Marketing research
Marketing research:
• Systematic and objective identification, collection,
analysis, and dissemination of information
Purpose:
• assisting management in decision making related to
the identification and solution of problems and
opportunities in marketing.
ENT 4000 - Group Work Session 3
Marketing plan
• Market, competition, and context
• Choice of target market
– Market segmentation
• Market strategy
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Product
Price
Place
Promotion
ENT 4000 - Group Work Session 3
Marketing plan
• Market, competition and context
– Market size
• I.e. number of customers, produced units and total turnover.
– Market growth (next 5 years)
• Real numbers, trends
– Competitive situation
• Industry
• What kind of companies offers the same product/service or
similar
• How many competitors are there, what are their size , market
share, strategies etc.
– Context (i.e. government regulations)
ENT 4000 - Group Work Session 3
Competitive situation in the
marketplace
Porters 5 force-model
ENT 4000 - Group Work Session 3
The competitive situation
Porters 5 force-model looks at how profitable an industry is → depends on the 5 forces.
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Bargaining power of customers – i.e. buyer concentration to firm concentration
ratio; buyer volume; buyer switching costs
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Bargaining power of suppliers – i.e. supplier switching costs; presence of
substitute inputs; threat of forward integration by suppliers relative to the threat of
backward integration by firms;
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Threat of new entrants – i.e. the existence of barriers to entry; capital requirements;
access to distribution; absolute cost advantages; learning curve advantages;
expected retaliation
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Threat of substitute products – i.e. relative price performance of substitutes;
perceived level of product differentiation
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Intensity of competitive rivalry – i.e. number of competitors; rate of industry
growth; exit barriers; brand equity
ENT 4000 - Group Work Session 3
Business idea and marketing plan
• For next gathering prepare a PPT presentation of the
business idea and marketing plan.
- Send the presentation to:
[email protected]
- Before 23/09-08 (Monday before midnight)
- Presentation should be maximum 7-10 minutes
ENT 4000 - Group Work Session 3