zinnov market expansion capabilities

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Zinnov – Market Expansion capabilities

VignetteMarch, 2009

Zinnov Management Consulting Pvt Ltd (Confidential)

Agenda

2

Our Market Expansion capabilities

Case Studies

1

2


Agenda

3


Case Studies

1

2


Market Expansion Framework

Channel Strategy

• It includes design, development and execution of a strong distribution model for our client to help them reaching out to end customers.

• It assists our clients in penetrating the market with their product offerings at a fast pace and at economical cost.

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.

Customer Insights

• It includes understanding the methods adopted by customers to solve their problems. Zinnov further analyze the gap between customer needs and market offerings.

• Understanding of customer pain points assists our clients in designing their product strategy.

Peer Group Analysis

• It includes analyzing industry best practices thereby providing guidelines on innovative strategies for the way forward.

• Our clients acquire a competitive edge by gaining market insights and information about key focus areas.

Our Market Expansion portfolio is a combination of services that help clients enter new domains and expand in the existing markets

4

Business Model

Financial Planning Vision Statement

Risk Mitigation

1 2

43

5 6

7 8


We assess opportunities by analyzing market landscape and identifying addressable segments

Opportunity Assessment1

5

Assessing the “Demand side”

Assessment of spending

Evaluation of Industryverticals

• Telecom

Projection of future spend pattern

1

• IT110

110• BFSI

• Spending by top 10 market leaders

110

2 3Revenue distribution

Identification of marketplayers• Company

1

Analyzing market maturity

1

• Company 2

• Company 3

2 3

Assessing the “Supply side”

• By Geography

• By Product

• By Vertical

• Introduction

• Growth

• Maturity

Drivers & Constraints

– Demand for products– Constraints for

products– Current scenario– Future Scenario– Gap Analysis

Macroeconomic Analysis

– Growth of economy– New Entrants – Infrastructure analysis– Government policies– Vertical wise analysis

Competitive Landscape

– Price point analysis– Market Penetration – SWOT analysis– Portfolio mapping– Sales Strategy– Clientele analysis– Growth Plans

Target Market Analysis

– Trends in the market– Pain Area analysis– Location analysis– IT spending– Channel Strategy– Profitability analysis

+ + +


Our exploratory methodology for various customer segments help generate vital insights

Customer Insights2

6

Focus Group Discussions

Customer Segmentation

Design evaluation framework

In-depth Interviews/ Follow me home

• 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.

Key Steps Detailed Description


We analyze the peer group from a high level and then deep dive into best practices demonstrated by leaders

Peer Group Analysis3

7

Objective

Market Share analysis

Segmentation

Key Parameters

High Level analysis parameters

Financial performanceProduct/service portfolio

Business modelKey customers

Geographical presence

In-depth analysis parameters

Portfolio Analysis

Customer perception

Performanceanalysis

Distribution network

Innovation Quality


We evaluate existing and potential distribution models to design customized models

Channel Strategy4

8

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

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.

Identification of channel partners Design of evaluation framework for channel partners

Distributors Resellers System Integrators

Shortlist Channel partners

Analysis of industry best practices

– Direct Sales Vs Indirect Sales– Revenue sharing model– Channel partner margins– Value chain of the product offering


We provide sound strategies to develop an effective and powerful business model

Business Model5

9

Delivery

• Zinnov helps identify the mode of delivery preferred by customers and also define a delivery strategy by product/solution based on customer segments

Preferred Mode of Deployment

• Zinnov suggests the preferred mode of deployment based on customer inputs

Role of Local Partners

• Zinnov helps define the role of local players in the ecosystem based on customer interviews

Current Profile of Partners

• Zinnov provides profile of channel partners (SI/VAR/ISV) with whom the client can partner

Target Audience Reach

• Zinnov provides short, medium, and long term recommendations on the best approach to reach target audience

Price Points

• Zinnov provides the price by product/solution based on customer segments

Business Model

a

b

ce

f

d


Resource Requirements

Budget Allocation

Cash Flow Statement

Describe a vision of company or strategic contents.



Zinnov will provide a financial plan will cover the following

Financial Plan

Zinnov provides a high level visibility into the financial plan required for India entry

Financial Planning6

10

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

Resource Requirements

Budget Allocation

Cash Flow Statement


Zinnov analyzes both tangible and intangible risks and also provides risk mitigation strategies

Risk Mitigation7

11

Possible Threat

• 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

• 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

• 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

A

B

C

Risk Identification

Risk Mitigation

Risk Definition


As a final part of the business plan, Zinnov helps define the company vision and also monitor its performance

Vision Statement8

12

Vision

Success Parameters

Dashboard

Trends

A 5 year visual of how Client’s India positioning will look post entry

Parameters on which success will be measured

Zinnov defines a dashboard on which Client can monitor its India performance

Zinnov identifies trends that market is likely to pick up over next 5 years


Agenda

13


Case Studies

1

2


Zinnov helped an IT company evaluate the market opportunity for financial software among Indian SMBs …

Case Studies1

14

IT usage by Indians

In-depth Analysis

Precise Forecast & Assessment

Data Collection

1

2

3

Zinn

ov P

roje

ct M

etho

dolo

gy

Framework of Study

Client Requirement

• The client wanted to evaluate the opportunity of offering financial software to individual customers– The offering include software

for calculating tax, Investment planning etc

Expectation from Zinnov

• The client expected Zinnov to help in mapping the needs of the Indian consumer

• They also wanted to have insights into a typical mindset of Indian customer , such as:– Tax paying habits– Investment planning– Savings pattern

Deliverable from 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


… and evaluation was done on parameters such as customer insights, key competitors and addressable market opportunity

Case Studies1

15

Project Scope

To understand the opportunity of personal finance product among Indians

Market Overview• Evaluate several market dimensions

– Size– Growth– Profitability– Value chain– Trends– Business models– Success criteria– Sources of

differentiation– Sub-markets /

spaces within


• Identify key competitors and other players in the opportunity area

• Deep-dive on competitors:– History– Performance– Business model– Unique advantage– Relevance to Client

Customer Insight

• Understand the unmet 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

BA C


Zinnov assessed the business opportunity for personal finance software among Indian consumers

Case Studies2

16

Progressive Indians’ Households(2005-2025)

Note: *Data for 2005Source: Zinnov Estimate, “ The rise of Indian Consumer Class” by Mckinsey

14.5

63.9

137.5

0

20

40

60

80

100

120

140

160

2005 2015 2025

#HHs(M)

CAGR

• Professional Services 16%• IT

–Services 8.3%–BPO 6.3%–Products 3.5%

• Agriculture 0.7%• Others 65.3%

16%

CAGR

8%

Several factors associated with this 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

• 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


Zinnov analyzed the usage behavior of web based marketing tools among Indian SMBs

17

Market Overview

Competitive landscape

Customer Insights

Market Opportunities

• Estimate the market size and growth rate for web based marketing tools

• Identify the key factors for customer segmentation

• Evaluate the current offerings by competitors

• Profile the top 3 competitors

• Estimate the potential market size

• Analyze opportunity and feasibility for a new solution

• Identify target customers for the new solution

• Assess customer satisfaction in the existing setup and identifying unmet needs

• Understand the behavior pattern in the adoption of existing offerings

A

B

C

D

Case Studies3


Zinnov analyzed the domestic market and the need for focused and localized CRM solutions…

18

Market Growth SMB Potential

Evolving IT Infrastructure Need for Localization

48%

Domestic Market Drivers

1 2

34

LowHigh

Opportunity Created

Case Studies4


Zinnov developed the India business plan for product offerings of an EDA solution provider

19

To evaluate the market opportunity for Embedded Software development tools

Market Overview

• Define Target customers

• Identify customer segmentation

• Evaluate the addressable market size

• Identify current levels of penetration


• Identify key competitors and their market share

• Assess the value add in existing competitive products

• Evaluate their business models

• Identify their distributor networks

Market Analysis

A B

Case Studies5


Zinnov with NASSCOM, envisioned the future for Indian software products and defined their roadmap

Case Studies6

20

Software Enabled Product & India

Evaluating Market Size of Indian PD Industry

MNC PD companies in India & Case Studies across PD

Models of business

Global Market Opportunity

Issues with Product Development in India

34

5

1

2


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zinnov market expansion capabilities

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