Description
how to find an opportunity through a customer gap or dissatisfaction. It gives examples wherein many companies have used to this. It also talks about the Discontentment - Criticality Tunnel and Customer Dissatisfaction Elimination (CDE) chain
How does one identify entrepreneurial opportunity?
Outline
? Customer dissatisfaction: the source of
opportunity ? Criticality- Discontentment Matrix ? Discontentment – Criticality Tunnel ? Customer dissatisfaction Elimination Chain
Customer Dissatisfaction
very necessary ? 2 independent dimensions
? Leads to the search for an alternative ? The extent of dissatisfaction is not the same ? Content analysis of customer dissatisfaction –
Extent of dissatisfaction- discontentment Features of products and processes involved in purchase and consumption ? Level of criticality of specific features and processes to customers
?
•
Criticality-Discontentment Matrix
•Most attractive market opportunity
•Natural pull •Minimum marketing efforts
Criticality-Discontentment Matrix
? Barbie
? Shattered the cuddly bobby dolls perception ? Critical need: Adult features and existing
discontentment ? Re-designed based on research ? Domino’s ? Critical need: Pizzas-high quality, delicious taste and low price combination ? Discontentment: Process involved in their purchase ? Markets can be divided based on levels of criticality & dissatisfaction ? Two options to grow:
?
?
Focus on less dissatisfied and less critical market segments Target same segment elsewhere
Criticality-Discontentment Matrix
? Dell ? Critical need: Customized configuration ? Discontentment: Price and delivery
? Harry Porter series: ? Highly critical need need of the children to fantasise with excitement in a world full of magic, with a lot of positive suspense built in
Few more examples
• Disney: focus on family & cleanliness • Visa/Master Cards: possessing cash • Gilbert Toys: Poor quality
• Electric cycle: poor technology & no sophistication
• Ford Edsel: no syling
Criticality-Discontentment Matrix
Quadrant 2: •Eg: Poor public transport •Poor quality of peripheral features •Important to identify niches •Substantial marketing efforts Quadrant 3: •Least attractive •Considerable marketing efforts
Structure of needs and dissatisfaction
Dynamism in needs
A function of number of variables like income habits trends in the society personal likes and dislikes. Because of dynamism, today’s non-critiucal products become very critical tomorrow.
Elements of discontentment
Key sources of discontentment are Product features Processes involved in buying and consumption Intangible external variables
Discontentment - Criticality Tunnel
? Dynamic external & internal environment ? Impact on customer needs, level of criticality, maturing of latent needs ? Innovative products and their relationship with
growing criticality and discontentment with existing products ? Travelling through the D-C Tunnel
D-C Tunnel Example
? Strategy of deep investment & long wait
• 25 yrs to break even in Mexico & Japan
•Product moved through the D-C tunnel •Changing the level of criticality •Higher level of efforts to move from quadrant 3 to 1 •Proactively worked
D-C Tunnel Example: Jakks Pacific
? Strategy : grow through
new product introduction in tune with dynamism & criticality ? WWF toys ? Maturing with changing socio-cultural profile ? Online stores
D-C Tunnel continued….
? Adapting to changing needs, introducing Harry Potter
characters, line of girls fashion accessories based on American Idol ? Customers tolerate variation in performance ? Customer perceived risk due to switching brands
Strategic Implications to firms
? Constantly identify changes in needs and modify
features ? Create new needs by terminating existing product before it completes its PLC ? Examples of Colour TV, Email, Intel chips
? Challenge is to create discontent with existing products
with the new product: identify needs
Where to Enter
? Peak of criticality level and extent of discontentment
Customer Dissatisfaction Elimination (CDE) chain
? Value Chain: Series of activities that create Value in a
product
Product Features
Info Collection process Google
Buying Process Amazon Boo.com
Payment Process Master Card
Delivery Process DHL, FedEx
Customer
CDE CHAIN & BUSINESS STRATEGY
DOMINO’s ? Each link formed a source of dissatisfaction, reflecting the different processes that a customer is involved in the purchase and consumption stages. ? Perfected and strengthened all links in the CDE chain. ? Built competitive advantage.
IMPORTANT LINKS
1. ORDERING PROCESS
2. DELIVERY PROCESS 3. COST & PRODUCT FEATURES ( quality , taste)
CONCLUSION
? Customer dissatisfaction is a source of opportunity.
? Customer’s level of criticality and extent of prevailing
/ emerging discontentment -useful way to identify entrepreneurial opportunities. ? Exploitation of opportunities and elimination of dissatisfaction on every link of the CDE Chain will enable organizations to be entrepreneurial. ? Thus will achieve Zero Customer Dissatisfaction.
Thank You
doc_114766558.ppt
how to find an opportunity through a customer gap or dissatisfaction. It gives examples wherein many companies have used to this. It also talks about the Discontentment - Criticality Tunnel and Customer Dissatisfaction Elimination (CDE) chain
How does one identify entrepreneurial opportunity?
Outline
? Customer dissatisfaction: the source of
opportunity ? Criticality- Discontentment Matrix ? Discontentment – Criticality Tunnel ? Customer dissatisfaction Elimination Chain
Customer Dissatisfaction
very necessary ? 2 independent dimensions
? Leads to the search for an alternative ? The extent of dissatisfaction is not the same ? Content analysis of customer dissatisfaction –
Extent of dissatisfaction- discontentment Features of products and processes involved in purchase and consumption ? Level of criticality of specific features and processes to customers
?
•
Criticality-Discontentment Matrix
•Most attractive market opportunity
•Natural pull •Minimum marketing efforts
Criticality-Discontentment Matrix
? Barbie
? Shattered the cuddly bobby dolls perception ? Critical need: Adult features and existing
discontentment ? Re-designed based on research ? Domino’s ? Critical need: Pizzas-high quality, delicious taste and low price combination ? Discontentment: Process involved in their purchase ? Markets can be divided based on levels of criticality & dissatisfaction ? Two options to grow:
?
?
Focus on less dissatisfied and less critical market segments Target same segment elsewhere
Criticality-Discontentment Matrix
? Dell ? Critical need: Customized configuration ? Discontentment: Price and delivery
? Harry Porter series: ? Highly critical need need of the children to fantasise with excitement in a world full of magic, with a lot of positive suspense built in
Few more examples
• Disney: focus on family & cleanliness • Visa/Master Cards: possessing cash • Gilbert Toys: Poor quality
• Electric cycle: poor technology & no sophistication
• Ford Edsel: no syling
Criticality-Discontentment Matrix
Quadrant 2: •Eg: Poor public transport •Poor quality of peripheral features •Important to identify niches •Substantial marketing efforts Quadrant 3: •Least attractive •Considerable marketing efforts
Structure of needs and dissatisfaction
Dynamism in needs
A function of number of variables like income habits trends in the society personal likes and dislikes. Because of dynamism, today’s non-critiucal products become very critical tomorrow.
Elements of discontentment
Key sources of discontentment are Product features Processes involved in buying and consumption Intangible external variables
Discontentment - Criticality Tunnel
? Dynamic external & internal environment ? Impact on customer needs, level of criticality, maturing of latent needs ? Innovative products and their relationship with
growing criticality and discontentment with existing products ? Travelling through the D-C Tunnel
D-C Tunnel Example
? Strategy of deep investment & long wait
• 25 yrs to break even in Mexico & Japan
•Product moved through the D-C tunnel •Changing the level of criticality •Higher level of efforts to move from quadrant 3 to 1 •Proactively worked
D-C Tunnel Example: Jakks Pacific
? Strategy : grow through
new product introduction in tune with dynamism & criticality ? WWF toys ? Maturing with changing socio-cultural profile ? Online stores
D-C Tunnel continued….
? Adapting to changing needs, introducing Harry Potter
characters, line of girls fashion accessories based on American Idol ? Customers tolerate variation in performance ? Customer perceived risk due to switching brands
Strategic Implications to firms
? Constantly identify changes in needs and modify
features ? Create new needs by terminating existing product before it completes its PLC ? Examples of Colour TV, Email, Intel chips
? Challenge is to create discontent with existing products
with the new product: identify needs
Where to Enter
? Peak of criticality level and extent of discontentment
Customer Dissatisfaction Elimination (CDE) chain
? Value Chain: Series of activities that create Value in a
product
Product Features
Info Collection process Google
Buying Process Amazon Boo.com
Payment Process Master Card
Delivery Process DHL, FedEx
Customer
CDE CHAIN & BUSINESS STRATEGY
DOMINO’s ? Each link formed a source of dissatisfaction, reflecting the different processes that a customer is involved in the purchase and consumption stages. ? Perfected and strengthened all links in the CDE chain. ? Built competitive advantage.
IMPORTANT LINKS
1. ORDERING PROCESS
2. DELIVERY PROCESS 3. COST & PRODUCT FEATURES ( quality , taste)
CONCLUSION
? Customer dissatisfaction is a source of opportunity.
? Customer’s level of criticality and extent of prevailing
/ emerging discontentment -useful way to identify entrepreneurial opportunities. ? Exploitation of opportunities and elimination of dissatisfaction on every link of the CDE Chain will enable organizations to be entrepreneurial. ? Thus will achieve Zero Customer Dissatisfaction.
Thank You
doc_114766558.ppt