Taking an Idea and getting it to the Market
Concept
Development
Feasibility
Implementation
Market
Market Size
Market Segmentation
Market Drivers
Competitive Analysis
Customer
Customer Habits & Practices
Customer Usage & Attitudes
Customer Ratings & Preferences
Process
Product/Service Definition
Intellectual Property Considerations
Process to deliver
Regulatory Considerations
Financials
Product/Service COGS
Cash Flow Requirements
P&L
Balance Sheet
Entity Legal Structure
Equity Arrangements
Milestones
Concept Definition
Overall Plan
Final Product/Service
Definition
Complete
Business Plan
Full Funding
Partial funding may
occur earlier
Target % Completion (end of Phase)
Concept
Development
Feasibility
Implementation
Market
Market Size
Market Segmentation
Market Drivers
Competitive Analysis
80 %
85%
90%
100%
60 %
90%
100%
100%
50 %
70%
95%
100%
40 %
60%
85%
100%
Customer
Customer Habits & Practices
Customer Usage & Attitudes
Customer Ratings & Preferences
Process
Product/Service Definition
Intellectual Property Considerations
Process to deliver
Regulatory Considerations
Financials
Product/Service COGS
Cash Flow Requirements
P&L
Balance Sheet
Entity Legal Structure
Equity Arrangements
Milestones
Concept Definition
Overall Plan
Final Product/Service
Definition
Complete
Business Plan
Full Funding
Partial funding may
occur earlier
It’s not really that linear
• Know how it fits into the marketplace before
you start; including competitive IP
• Know what the customer needs are and what
problem it solves in order to define it
• Know what it is before you make it
• Know how to make it before you sell it
IT = your product or service
Market
What is the market definition, size and growth rate?
How is the market defined? What are the major segments? Where does
this opportunity fit?
Define the global market today ($, units, # SKU’s);
What is the global growth rate and why?
Define the competitive landscape: % share, # SKU’s, pricing, etc.
How does this product compare to the current gold standard in the
market?
Identify competitors and develop a SWOT chart for each.
Describe the go-to-market strategy by region.
Define the patent estate for competitors.
What have been the trends and market introductions?
What new products and/or technologies have been introduced in the
last two years?
What has been the competitive reaction to these new products?
What competitive response (marketing, product development, etc.) is
expected to this introduction?
Customer
What have been the trends and market introductions?
What new products and/or technologies have been introduced in the last
two years?
What has been the competitive reaction to these new products?
What competitive response (marketing, product development, etc.) is
expected to this introduction?
Value Proposition/Customer Requirements
What are the customer needs?
Define safety, efficacy, preference
Define overall product objectives and how they address customer needs and
existing product gaps. Are international needs different from the U.S.?
Does the customer recognize the need?
Do the proposed product characteristics go against customer habits?
Do the proposed product characteristics require the customer to do things
differently.
Define the customer testing protocol- focus groups, small base testing, etc.
Process
Define the expected SKU lineup, what SKU’s will be deleted?
Describe the product characteristics – features and benefits
Overview the patent strategy, including international filings
Define elements – regulatory clearance, claims, economic outcomes, etc.
What is the regulatory plan, including international?
Is special testing required?
Safety- UL, ETL, EMC, Skin Sensitivity, etc.
The labeling and literature requirements?
Define the product development plan and funding
Are design of experiments (DOE) necessary?
What are the product specifications?
Define MSDS sheets
What are the results of the Manufacturing Trials?
Confirm process stability and capability
How much inventory was produced during these trials and now available?
Financials
Estimate Growth (+/- 10%)
$ revenue- international and domestic
Units growth
% share change
Define capital requirements and impact on manufacturing.
Develop a Year I through Year V Pro Forma P/L and Projected
NPV
Summarize Project Costs
Identify any capital expense during development
Identify Regulatory, Clinical and Customer Research costs
Identify total development costs.
Identify ad, brochure and trade show expenses.
Define legal entity structure and put it in place
Define any partnership relationships and expectations
Define valuation of near term and long term of the venture
Getting to Market
Establish the Target Market
Which countries will be included in Wave I?
Describe the customer segmentation & target audience
Who are key champions and how are they going to be leveraged?
How is the Product being positioned?
Positioning is the process of conceptualizing the product offering (as distinct from the product itself) and related communications
to achieve a distinct competitive advantage.
How is the product positioned in the absolute?
Versus the competition
What is the Marketing Campaign?
Define the Marketing Communications strategy relative to:
Advertising
e-Marketing
Public Relations
Advocacy
Clinicals
Sampling
The copy strategy should clearly state the basic benefit(s) that the product promises and which constitutes the principal basis for
purchase. It should state those features that make the benefit(s) possible- permission to believe, unique selling proposition.
What are the benefits and proof sources?
How will superiority be communicated?
Define the Brochures, Trade Shows and Ads
Define the Trade magazine ad campaign.
Provide final artwork on all aspects of marketing and advertising.
Getting to Market
Pricing Strategy
What is the pricing strategy
Describe the value proposition to target audiences?
Develop a matrix on $/SKU versus current product and competition. Provide rationale for differences.
Sales Plan
Develop Sales Presentation and additional materials
Provide a twelve (12) month forecast by units.
How much inventory needs to be on hand at launch?
What is the expected run rate for the six month time frame?
Outline the Sales Training program including dates and length of training.
Define the Trade Show strategy
What trade shows will this program be launched at?
How will the booth communicate the program/products?
Have the top accounts per sales rep been identified and a plan established on how to sell them?
Who and when will call upon major accounts?