Zinnov Market Expansion Capabilities

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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

Zinnov Management Consulting Pvt Ltd (Confidential)

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.

6
Zinnov Management Consulting Pvt Ltd (Confidential)

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

7
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
Zinnov Management Consulting Pvt Ltd (Confidential)

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

9
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
Zinnov Management Consulting Pvt Ltd (Confidential)

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

11
Zinnov Management Consulting Pvt Ltd (Confidential)

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

14
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
Zinnov Management Consulting Pvt Ltd (Confidential)

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)

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