Zinnov – Market Expansion capabilities
Vignette
March, 2009
This report is solely for the use of Zinnov client and Zinnov personnel.
No part of it may be circulated, quoted, or reproduced for distribution
outside the client organization without prior written approval from Zinnov
LLC.
Agenda
1 Our Market Expansion capabilities
2
Case Studies
2
Zinnov Management Consulting Pvt Ltd (Confidential)
Agenda
1 Our Market Expansion capabilities
2
Case Studies
3
Zinnov Management Consulting Pvt Ltd (Confidential)
Our Market Expansion portfolio is a combination of services that help
clients enter new domains and expand in the existing markets
Market Expansion Framework
1
Opportunity Assessment
• It includes complete business analysis of the
viability of prospective markets or opportunity
for new products in existing markets.
• It is a combination of analyzing existing
market landscape and potential
opportunity in addressable market.
3
• Our clients acquire a competitive edge by
gaining market insights and information
about key focus areas.
• Understanding of customer pain points
assists our clients in designing their
product strategy.
• It assists our clients in penetrating the market
with their product offerings at a fast pace and
at economical cost.
Risk Mitigation
Financial Planning
4
• It includes design, development and
execution of a strong distribution model
for our client to help them reaching out
to end customers.
Business Model
7
2
• It includes understanding the methods adopted
by customers to solve their problems. Zinnov
further analyze the gap between customer
needs and market offerings.
Channel Strategy
Peer Group Analysis
• It includes analyzing industry best
practices thereby providing guidelines on
innovative strategies for the way forward.
5
Customer Insights
Vision Statement
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6
8
4
We assess opportunities by analyzing market landscape and
identifying addressable segments
Opportunity
Assessment
1
Assessing the “Demand side”
1
Evaluation of
Industry
verticals
• Teleco
2
m
•
•
Assessment
of spending
•
IT
1
Projection of
future spend
pattern
BFSI
Growth of economy
New Entrants
Infrastructure analysis
Government policies
Vertical wise analysis
Drivers & Constraints
+
Identification
of market
players
• Company
2
1
Spendin
g by top
10
market
leaders
Macroeconomic
Analysis
–
–
–
–
–
3
Assessing the “Supply side”
– Demand for products
– Constraints for
products
– Current scenario
– Future Scenario
– Gap Analysis
•
By
Geography
+
Analyzing
market
maturity
• Introductio
n
•
Company
2
•
By Product
•
Growth
•
Company
3
•
By Vertical
•
Maturity
Target Market Analysis
–
–
–
–
–
–
3
Revenue
distribution
Trends in the market
Pain Area analysis
Location analysis
IT spending
Channel Strategy
Profitability analysis
Competitive Landscape
+
–
–
–
–
–
–
–
Price point analysis
Market Penetration
SWOT analysis
Portfolio mapping
Sales Strategy
Clientele analysis
Growth Plans
5
Zinnov Management Consulting Pvt Ltd (Confidential)
2
Customer
Insights
Our exploratory methodology for various customer segments
help generate vital insights
Key Steps
Focus Group
Discussions
Design evaluation
framework
Customer
Segmentation
In-depth Interviews
/ Follow me home
Detailed Description
• We conduct focus group discussions with customers to generate insights
about existing methods for solving their problems. It assists us in building
hypothesis and to further evaluate gap in existing product offerings.
• We conduct exploratory studies to understand the mental, physical and price
barriers for customers to design evaluation framework. It is designed to
evaluate the unmet needs and pain points of customers.
• We segment the customers on various demographic cuts based on
preliminary insights from focus group discussions such as educational
qualification, IT literacy, age group, etc
• We conduct in-depth interviews and follow-me-home discussions with
customers across the various segments to generate in depths insights on
their unmet needs and pain points.
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3
Peer Group
Analysis
We analyze the peer group from a high level and then deep
dive into best practices demonstrated by leaders
Objective
Key Parameters
High Level analysis parameters
Market Share analysis
Financial performance
Product/service portfolio
Business model
Key customers
Geographical presence
In-depth analysis parameters
Innovation
Segmentation
Portfolio
Analysis
Customer
perception
Quality
Distribution
network
Performance
analysis
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Zinnov Management Consulting Pvt Ltd (Confidential)
4
Channel
Strategy
We evaluate existing and potential distribution models to
design customized models
Identification of channel partners
Identification of existing channel
partner network of peer group
companies in same industry
segment.
Identification of channel partner
network in other industries for
innovative potential opportunities.
Analysis of industry best
practices
–
–
–
–
Direct Sales Vs Indirect Sales
Revenue sharing model
Channel partner margins
Value chain of the product offering
Design of evaluation framework for channel partners
Financials
•
•
•
•
Revenue
Profit
Financial Growth
Investors
Infrastructure Capability
•
•
•
•
•
Locations
Relationship with Resellers
IT Infrastructure Setup
Communication Setup
Quality Process/Certifications
Domain Expertise
•
•
•
•
Revenue from target domain
Product offering in target domain
Years of experience in target domain
Clients references in target domain
Talent Capability
•
•
•
•
Strength of sales workforce
Workforce in target domain
Average experience of sales force
Qualification/Background of sales force
Organizational Alignment
•
•
Mid-level management structure
Synergy within organization
Shortlist Channel partners
Distributors
Resellers
System Integrators
8
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5
Business Model
We provide sound strategies to develop an effective and
powerful business model
a
Delivery
• Zinnov helps identify the mode of
delivery preferred by customers and
also define a delivery strategy by
product/solution based on customer
segments
f
b
Target
Audience Reach
• Zinnov provides short, medium, and
long term recommendations on the
best approach to reach target
audience
e
• Zinnov suggests the preferred mode
of deployment based on customer
inputs
Business Model
Current Profile
of Partners
c
Role of Local Partners
• Zinnov helps define the role of local
players in the ecosystem based on
customer interviews
• Zinnov provides profile of channel
partners (SI/VAR/ISV) with whom the
client can partner
d
Preferred Mode
of Deployment
Price Points
• Zinnov provides the price by
product/solution based on customer
segments
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Zinnov Management Consulting Pvt Ltd (Confidential)
6
Financial
Planning
Zinnov provides a high level visibility into the financial plan
required for India entry
Financial Plan
Zinnov will provide a financial plan will cover the following
Resource
Requirements
Describe a vision of company or strategic
contents.
Budget
Allocation
Describe a vision of company or strategic
contents.
Cash Flow
Statement
Describe a vision of company or strategic
contents.
Resource
Requirements
Budget
Allocation
Cash Flow
Statement
The financial plan is based on the budget inputs provided by the client and projected cash
flow keeping in mind certain assumptions for the revenues and customer sign ups
10
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7
Risk Mitigation
Zinnov analyzes both tangible and intangible risks and also
provides risk mitigation strategies
Possible Threat
Risk Identification
A
• Risk identified based on impact on all
stakeholders of India entry
• The threats will cover both macro economic and
micro level factors
• Each threat will have a detailed definition of risk
Threat Perception
Risk Definition
B
• Based on market insights, Zinnov will provide a
threat perception rating for each defined risk
• The threat level will be defined based on impact on
the end objectives defined for India entry
360 Degree Impact of Risk
Risk Mitigation
C
• Each identified and defined risk will be
measured on basis of the 360 degree impact on
the stake holders.
• The risks will also be evaluated on basis of the
end impact on the success objectives of India
entry
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Vision
Statement
As a final part of the business plan, Zinnov helps define the
company vision and also monitor its performance
Vision
Parameters on which success will
be measured
Su
cc
es
s
d
ds
Success
Parameters
Da
sh
bo
ar
Zinnov defines a dashboard on
which Client can monitor its India
performance
Tr
en
A 5 year visual of how Client’s
India positioning will look post
entry
Dashboard
Vi
sio
n
8
Trends
Zinnov identifies trends that
market is likely to pick up over
next 5 years
12
Zinnov Management Consulting Pvt Ltd (Confidential)
Agenda
1 Our Market Expansion capabilities
2
Case Studies
13
Zinnov Management Consulting Pvt Ltd (Confidential)
1
Case Studies
Zinnov helped an IT company evaluate the market opportunity
for financial software among Indian SMBs …
1
Zinnov Project Methodology
Framework of Study
• The client wanted to evaluate
Client
Requirement
the opportunity of offering
financial software to individual
customers
– The offering include software
for calculating tax, Investment
planning etc
• The client expected Zinnov to
Data Collection
IT usage
by
Indians
3
2
In-depth
Analysis
Precise
Forecast &
Assessment
help in mapping the needs of
the Indian consumer
Expectation
from
Zinnov
• They also wanted to have
insights into a typical mindset
of Indian customer , such as:
– Tax paying habits
– Investment planning
– Savings pattern
Deliverable
Deliverable from
from Zinnov
Zinnov
• Zinnov helped the client in assessing the varied software
•
which may appeal to Indian consumer.
Parts of the study included:
– Tax paying population size, their frequency of paying taxes
– Modes of tax planning (i.e. do they use chartered accounts
or independent tax planner)
– Factors which may drive Indian consumers towards buying
a software
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Zinnov Management Consulting Pvt Ltd (Confidential)
1
Case Studies
… and evaluation was done on parameters such as customer
insights, key competitors and addressable market opportunity
Project Scope
A
B
C
Market Overview
Competitive Landscape
Customer Insight
•
Evaluate several
market dimensions
– Size
– Growth
– Profitability
– Value chain
– Trends
– Business models
– Success criteria
– Sources of
differentiation
– Sub-markets /
spaces within
• Identify key competitors • Understand the unmet
and other players in the
opportunity area
• Deep-dive on
competitors:
– History
– Performance
– Business model
– Unique advantage
– Relevance to Client
and underserved needs
of SMB customers
• Understand pain points
of SMBs in existing
method
• Define barriers to
software use today
• Evaluate decision
process of SMB
To understand the opportunity of personal finance product among Indians
15
Zinnov Management Consulting Pvt Ltd (Confidential)
2
Case Studies
Zinnov assessed the business opportunity for personal
finance software among Indian consumers
Progressive Indians’ Households
(2005-2025)
#HHs
(M)
CAGR
Several
Several factors
factors associated
associated with
with this
this growth
growth
•
Increasing complexity of personal finance
− Higher disposable income
− More credit cards
− Multiple bank accounts
− Dual income household
Increasingly integrated with global marketplace
− Rising wages, driven by MNCs and IT
− Availability of global brand products, luxury
items
Favorable changes in government policies
− Consumer friendly interest rates for loans
− Opening of sectors for public investment
Rising technology adoption
− PC use
− Internet for e-commerce activity
8%
CAGR
16%
• Professional Services
16%
• IT
–Services
8.3%
–BPO
6.3%
–Products
3.5%
• Agriculture
0.7%
• Others
65.3%
• Progressive Indian households are those which
have an earning more than USD 5000
• Others shall mostly include Owner of SMB
manufacturing units, large unorganized
retailers
Note:
*Data for 2005
Source: Zinnov Estimate, “ The rise of Indian Consumer Class” by Mckinsey
Zinnov Management Consulting Pvt Ltd (Confidential)
16
3
Case Studies
Zinnov analyzed the usage behavior of web based marketing
tools among Indian SMBs
• Estimate the market size and growth
rate for web based marketing tools
• Identify the key factors for customer
segmentation
A
Market
Overview
• Estimate the potential
market size
• Analyze opportunity and
feasibility for a new
solution
• Identify target customers
for the new solution
D
Market
Opportunities
Competitive
landscape
Customer
Insights
B
• Evaluate the current
offerings by competitors
• Profile the top 3
competitors
C
• Assess customer satisfaction in the
existing setup and identifying unmet
needs
• Understand the behavior pattern in
the adoption of existing offerings
17
Zinnov Management Consulting Pvt Ltd (Confidential)
4
Case Studies
Zinnov analyzed the domestic market and the need for focused
and localized CRM solutions…
1
2
Market Growth
SMB Potential
48%
Domestic
Market Drivers
4
3
Evolving IT
Infrastructure
Need for Localization
Opportunity Created
High
Low
18
Zinnov Management Consulting Pvt Ltd (Confidential)
5
Case Studies
Zinnov developed the India business plan for product offerings
of an EDA solution provider
Market Analysis
A
B
Market Overview
Competitive Landscape
• Define Target
• Identify key competitors
customers
• Identify customer
and their market share
• Assess the value add in
segmentation
• Evaluate the
•
addressable market
size
Identify current levels
of penetration
•
•
existing competitive
products
Evaluate their business
models
Identify their distributor
networks
To evaluate the market opportunity for Embedded Software development tools
19
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6
Case Studies
Zinnov with NASSCOM, envisioned the future for Indian
software products and defined their roadmap
1
Evaluating Market Size of
Indian PD Industry
2
5
Software Enabled Product &
India
Global Market Opportunity
3
4
MNC PD companies in India &
Case Studies across PD
Models of business
Issues with Product
Development in India
20
Zinnov Management Consulting Pvt Ltd (Confidential)
Thank You !
Zinnov Contact
www.zinnov.com
[email protected]
69 "Prathiba Complex", 4th 'A'
Cross, Koramangala Ind. Layout,
5th Block, Koramangala
Bangalore – 560095
575 N. Pastoria Ave
Suite J
Sunnyvale
CA – 94085
21, Waterway Ave,
Suite 300
The Woodlands
TX – 77380
Phone: +91-80-41127925/6
Phone: +1-408-716-8432
Phone: +1-281-362-2773
Zinnov Management Consulting Pvt Ltd (Confidential)