Creating New Market Space

Leveraging Blue Oceans

What is a market space? Blue Ocean?

• A space that facilitates bi-directional commerce, with a role to match buyers and sellers whose contexts have sufficient similarity

• Large number of product/service sellers trying to lure customers promote competition

• Cut throat head-to-head competition calls for alternative creative business strategy, including creating a new market space

What is Blue Ocean?

• Blue Oceans represent all the industries not in existence as of now• All unknown market space, untainted by competition• First mover advantage• Ample growth opportunitiesWider, deeper potential of market space that is not yet

exploredSource: Handout, Google

How to form new market space?

Source: Handout, Google

Value Curve……Action Framework

• A value curve, also called a strategic profile, is the graphic depiction of a company’s strategy

• It captures a company’s relative performance across the key competitive factors of an industry including price

• Useful tool for product managers and marketers in defining, comparing and positioning products and services

• Action framework to form value curves:• Eliminate• Reduce• Create• Raise

Source: Handout, Google

Across Substitute Industries

• Strategy adopted to compete not only with the intra-industry rivals, but also with the substitute manufacturers

• Air Asia, Naukri.com, etc.

Through this

strategy, Air Asia reduced

key decision

parameters including

price, stop over time, etc.

In addition, the

company adopted CREATE policy by

introducing new

features such as Xpress

Boarding, Web Check

in, Hotel Discounts,

etc.

Air Asia entered a new market space to lure low income group customers by offering them air transportation at a price close to that of road travel.

“Now Everyone can Fly”

Source: Handout, Google

Across Strategic Groups

• Certain companies (Starbucks, Lacoste, Ginger Hotels, etc.) successfully find new market spaces within the same industry, however, across different strategic groups

While the price is

competitive to other peers,

Starbucks has been

successful in building a

strong brand equity

Starbucks has focused

on increasing

its quality to set high

benchmark, while

offering better place,

variety and service to

its customers

Starbucks offer more variety of products, better customer service, ambient lounges and a better brand aspiration

Source: Handout, Google

Across Chain of Buyers

• New market spaces can also be formed by identifying and targeting a new chain of buyers with distinguished needs

• Nintendo, Novo Nordisk, Bloomberg etc.

Nintendo outsold its

competitors by bringing in new

features including

reduced graphic requirements,

family fun, portable, increased

motion control

The company eliminated complexity,

reduced price,

graphics and physics, and

created group fun to lure all age

groups rather than a

specific segment

Novo Nordisk changed its customers from influencers (prescribing doctors) to direct consumers by developing new insulin pens directly to be

used by household consumers

Source: Handout, Google

Across Complementary Products/Services

• Companies reconstruct market boundaries by analysing and offering complementary products/services which support their prime product and drive sales, creating a new market dimension altogether

• Planet M, automobile, leisure deals, movie theatres, etc.

PVR Cinemas created a new market space

where the consumers were

provided with better service, comfort and

complementary services which

allowed multiplexes to

turn into complete entertainment

centersSc

reen

Size

Soun

d

Show

s

Com

fort

Food

/Sna

cks

Park

ing

Discou

nts/Mer

chan

dise

Other Competitors PVR

Source: Handout, Google

Across Functional/Emotional Appeal to Buyers

• Market spaces can be innovated based on the functional and emotional appeals of consumers, causing attraction towards brands and their new products

• IPL, Body Shop, Aroma Therapy, etc.

IPL was one of the brand

innovations that aroused

emotional feel of

entertainment and loyalty

towards their home team,

causing to be a first-of-its-kind huge success

Several other brands aim to invoke feelings of social awareness (sustainable, society and environment friendly) to promote their products

and attract a completely new market space, e.g. ITC Classmate, Body Shop, etc.

Source: Handout, Google

Across Time

• With response to the changing times, technologies and market trends, many companies adopt and convert market opportunities into market spaces

• YouTube, iTunes, etc.

YouTube offered many

better features than normal web

hosting platforms,

such as ease-of-use, search integration,

social networking,

etc.

Internet boom allowed many companies to develop online porducts (YouTube, iTunes, Facebook, Ecommerce, etc.)

Source: Handout, Google

Manan

Deep

Himanshu

Mayur

Sachin

Satyajeet