MARKET ENTRY

STRATEGY

Presented by
BUYER VALUES MORE VALUE LESS VALUE

EASE PRODUCT
USERS SPEED QUALITY SERVICE BRAND SOLUTION PRICE OPPORTUNITY
OF USE REQUIREMENT

• Customizable plug-ins EXISTING — HIGH

• Workflow integration
Large enterprise
• User security • Only 15% penetration
(1000+ users) • Tracking and alerts rate in the industry
• Contact sharing

• Workflow integration EMERGING — HIGH

• User security POTENTIAL
Mid-sized organization • Contact sharing
• Tracking and alerts • Efficiency improvement as
(100-1000 users)
• Remote meeting high priority
• Digitization agenda

• Easy navigation NONE — MINIMAL

• Multi-channel
Startups and individuals • The market is crowded with too
(<100 users) many small players, and should
NOT be our target market
 BUYER VALUE MIGRATION

Product life cycle

Secure customer base
early and capture
opportunities at
Perceived value by customers

introduction stage
High value to customers
Limited competition
High growth & profitability for vendors

Stable value Higher value to customers

Stable competition Intense competition
Stable margins Low(er) profits

INTRODUCTION GROWTH MATURE

Time
 VALUE-BASED SEGMENTATION

SEGMENT A SEGMENT B SEGMENT C

• World class technology • High quality products • Cost effective

Overall
• Customized solution • Good price/ performance ratio • Easy to operate
strategy • Premium products & brand image • Scalability & reliability

• Retain leadership in high-end products • Introduce mid- to low-end products • Introduce low- to mid-end products
Product • Ride the wave of digital and remote • Digital leads the way • Digital takes the priority
strategy work culture • Work with customers to move up • Enter the market aggressively
• Work with customers to grow

• Convey XYZ’s willingness to help • Raise product awareness through • Emphasize XYZ products’ good
Marketing customers in a digital transition market education programs performance/price ratio
strategy • Aggressively push the idea of “Y2K” • XYZ and channel share marketing • Stress “easy to operate”
• XYZ takes the main responsibility responsibilities • Channel takes the main responsibility

• Partnering with channels having industry • Training on XYZ’s new products • Increase geographical coverage
Channel
knowledge and solution capability • Identify channels with expertise in target • Provide marketing support
strategy
industries

• Consistent, responsive customer service • Deliver standard and adequate service • Guarantee cost effective, basic-level of
Customer
• Customer training • XYZ and channel share responsibilities service
service • XYZ takes the main responsibility • Channel takes the main responsibility
 GOVERNMENT
GEOGRAPHIC
Situation Opportunity
NEW MARKET • Fragmented & unregulated • Shape and influence the
policy making process
• Multiple bureaus and
influential industry • Lack of regulatory
associations framework

CUSTOMER CHANNEL
Opportunity /
Situation Opportunity Situation
Threat

• Emerging customer sectors • Demand for new • Strong bargaining power due • Inexperience in product,
products/solutions to business capabilities coaching and training needed
• More sophisticated approach
• Higher requirement for • Deal-oriented, short-term • Control customers
quality product and approach
• Lack of loyalty
customer service

COMPETITION

Situation Threat

• Aggressive players vying for • Addressing customer

share requirements in solutions &
pricing
• Strong low end product
offerings & pricing strategy • New product launch
attacking XYZ
 COMPETITIVE MATRIX
THREATS TO OUR
COMPANY
Low High
COMPANY A

• High quality products

High End

• Price competitive against XYZ

• Weak after-sales service

Company B
COMPANY B

• High end products

• For younger demographic
Company C
Range
Mid

COMPANY C

• Good price/performance ratio

Company A
• Easy to operate
• Target industry: young professionals
• No system or software support
Low End

COMPANY D
Company D
• Localized training and services
• Target industry: young professionals
• Lowering prices to compete with Company C
 CATEGORIES
CATEGORY MARKET SELECTION CRITERIA MARKET 1 MARKET 2 MARKET 3
WEIGHTS

1. Revenue potential in the market in 4 years 100 20.0 15.0

• Amount of money prospects are willing to spend to get the job done perfectly each time 100 20.0 15.0

• Number of times per year prospects spend money trying to get the job done 100 20.0 15.0
Assess the revenue
20
potential
• Number of prospects in the stated demographic currently trying to perform the job 100 20.0 15.0

• Number of prospects in other demographics currently trying to perform the job 100 20.0 15.0

• Projected year-to-year increase in the number of prospects trying to perform the job 100 20.0 15.0

2. Percent of prospects performing the job who say their

50 8.5 50
ability to get the job done is underserved

3. Percent of prospects performing the job who say their

ability to get related consumption jobs done is
50 8.5 50
underserved. Acquiring the product/services, learning how
to use, customization, etc.

• Percent of prospects performing the job who say current methods for acquiring the product/service
0 0.0 0
are underserved. Become aware, choose, purchase, etc.
Assess the degree
to which the • Percent of prospects performing the job who say current methods for learning how to use the
17 product/service are underserved
0 0.0 0
customer needs are
underserved • Percent of prospects performing the job who say current methods for product/service customization
0 0.0 0
are underserved

• Percent of prospects performing the job who say current methods for setting the product/service up
0 0.0 0
are underserved. Preparing it for operation, getting it to work, etc.

• Percent of prospects performing the job who say the aesthetics of the product are underserved.
0 0.0 0
Look and feel, fit and finish, etc.

• Percent of prospects performing the job who say current methods for accessing the product are
0 0.0 0
underserved.
 Our market size is projected to reach $4 billion by 20XX. To capture
DIFFERENTIATION the opportunities and create market demand, our two strategic steps
are: new product introduction and customer base expansion. Only
with such parallel efforts, can we create a scalable and sustainable
marketplace.

Mid Range
High End

Low End
INTRODUCE NEW PRODUCTS Current Market Share 20XX Market Share

EXPAND CUSTOMER BASE $670 $2B

M
Government

Customer

Channel

MARKETING
MARKET CREATION STRATEGY
 Overall: corporate image building and market PRIORI
education TY

SEGMENT A XYZ’s continuous commitment to

Marketing banking
Strategy
SEGMENT B Brand awareness building

Create Demand
(Market Facing) SEGMENT C Brand awareness building

Objectives Government • Conveying XYZ’s value proposition

Strategy • Project-based initiatives
• Build XYZ brand name
• Grow the new market

STRATEGY
IMPLEMENTATION SEGMENT A
• Premium product/service,
• Solution focused

Product • Quality product

SEGMENT B • Meet customer requirement
Strategy

• Cost effectiveness
SEGMENT C • Standard product
Fulfill Demand
(Internal Capabilities)
• Strengthen relations with channel
SEGMENT A • Account plan & solution focused

Objectives Channel • Increase the number of channels

SEGMENT B • Increase new industry penetration
Strategy
• Build internal
infrastructure • Increase number of channels
SEGMENT C • Expand geographic coverage
• Retain market leadership
 COMPARATIVE MARKET STUDY

EMERGING COMPARABLE PRODUCT

0.025

0.02
Market size/GDP

0.015 • The new market’s

development is parallel to
0.01
and 3 years behind the worlds
0.005
CONCLUSION

0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 For the products
World New Market comparable to ours,
once the market forms
and enters the post-
introductory period, the
MATURE COMPARABLE PRODUCT penetration rate in the
0.05 new market will be
0.04 approximately 3 years
Market size/GDP

• The penetration rate reach behind the world

0.03
the level of the world in year
0.02 7

0.01

0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

World New Market

 SCENARIO ANALYSIS
BASE SCENARIO FAVORABLE SCENARIO SETBACK SCENARIO

• The new market’s GDP grows at an • New market’s economy grows at very low
average of 5% per year • The new market’s GDP keeps high growth speed, and results in slow demand growth
MACROECONOMIC
rate, which accelerates development
• Other macro-economic factors are neutral • New market’s currency devaluates

• Relationship between US and new • Relationship between US and new market • Relationship between US and new market
POLITICAL market maintains the current level progresses steadily deteriorates
RELATIONSHIPS • US trade with and investment in new • investment in new market is highly • US products are not encouraged or
market increases normally encouraged and well protected welcomed by new market’s government

• Institutional negotiation maintains at • The new market enters world regulated • The new market’s attempt to enter
INSTITUTIONAL
the current pace, and brings minimum organization which greatly reduces tariffs, regulated organization delays, tariffs
REGULATION
impact on product line development drops price, and raises demands remain high

• Government gives medium priority to

DEVELOPMENT • Government continues to push the • Government lowers the priority of the
digital economy in its development
AGENDA industry as a national economic pillar industry in economic development
agenda
 INDIVIDUAL IMPACT
(on Base Scenario)

FAVORABLE
• The new market’s GDP keeps high growth
MACROECONOMIC ▲5%
rate, which accelerates development
SCENARIO

• Relationship between US and new

POLITICAL market progresses steadily
RELATIONSHIPS ▲5%
• Investment in new market is highly
encouraged and well protected
New market size

▲30% $100-
INSTITUTIONAL
• The new market enters world regulated 110M
REGULATION
organization which greatly reduces tariffs, ▲5%
drops price, and raises demands

SYNERGISTIC IMPACT

• Government continues to push the

DEVELOPMENT
AGENDA
industry as a national economic ▲5%
pillar

▲20%
ADDITIVE IMPACT
 SETBACK SCENARIO INDIVIDUAL IMPACT
(on Base Scenario)

• New market’s economy grows at very low SETBACK

MACROECONOMIC speed, and results in slow demand growth
5%
• New market’s currency devaluates SCENARIO

• Relationship between US and new market

POLITICAL deteriorates
RELATIONSHIPS 5%
• US products are not encouraged or
welcomed by new market’s government

New market size

15%
$69-73M
INSTITUTIONAL • The new market’s attempt to enter regulated
REGULATION organization delays, tariffs remain high
5%

COLLECTIVE IMPACT

DEVELOPMENT • Government lowers the priority of the

AGENDA industry in economic development
5%

5%
ADDITIVE IMPACT
 COMPETITOR MARKET SHARE

COMPETITORS NEW COMPETITORS

CURRENT
PREVIOUSLY IDENTIFIED IDENTIFIED
COMPETITIVE
LANDSCAPE

22 20

Company A
Company E
Company B
3 Company F
Company C 15
Company G
Company D
20

15
5
 PRODUCT ATTRACTIVENESS
SEGMENT C
SEGMENT A SEGMENT B
Individual users and solo
Enterprise Mid-size organization
practitioners

Students, individual remote workers, project

Established multi- Professional groups Other organizations
collaborators, chat groups, freelancers, small
national corporations (Companies) and non-business
business owners, small teams,
groups
startups/bootstraps

High End

Mid Range

Low End

High Demand Medium Demand Low Demand No Demand

 PRODUCT PORTFOLIO STRATEGY

HIGH VOLUME

MAINTAIN & ENHANCE

Closely monitor competitors’ encroachment on the

High
Volume
target industry, adjust product strategies
Offering

High
according to the buyer value migration in the s
industry, and enhance customer service and
solution capabilities

OUR CAPABILITY
MID VOLUME

REACH & EXPAND

Mid
With moderate effort, enter this segment early, Volume
watch for opportunities in the non-major clients Offering
s
and large users with financial capabilities

Low
LOW VOLUME
Low
ENTER & GROW Volume
Offering
This segment represents the most rapidly growing s
sector with the greatest potential. Our product
strategy should be to enter aggressively and help
customers grow to a higher level

Low INDUSTRY GROWTH High

 TRANSFORMATION DRIVERS

CURREN FUTURE
(NEW
T MARKET)
Increasing competition

Product Focused Market evolution Customer-Centric

• Advanced sales model

Growth need and management requirement
• Primitive stage of sales model
• Focus on long-term business opportunity
• Traditional sales method; transaction
• Customer solution oriented
driven; opportunistic approach
Increasing IT sophistication and network requirement • Customer relationship building and
• Seller’s market
cultivation
• Customer dealing with several sales reps
• Account planning and management
from vendor and channel
Opportunity to leverage limited resource & valuable relationship • Channel effectiveness
VALUE DIFFERENTIATION CUSTOMER
(JOBS-TO-BE-DONE)

Differentiate
• Provide advanced and proven
technologies

• Create strong brand name and support

channel sales
OUR COMPANY COMPETITOR
• Address solution and localization (OFFERINGS)
(CAPABILITIES)
capabilities by partnering with channel
 REVENUE VS. MARKET SIZE
The new product expansion strategy will enable us to achieve a CAGR of 56.3% in sales revenue. The total sales of
US$ 43M sales in year 5 will be made of approximately $30M from high end products and about $13M from new
products.

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CAGR

Market Size 18.0 25.9 39.3 59.3 86.0 47.9%

OVERALL XYZ Share 40% 40% 40% 45% 50%

XYZ Sales 7.2 10.4 15.7 26.7 43.0 56.3%

Market Size 11.1 11.1 16.9 25.3 37.0 49.3%

EXISTING
XYZ Share 85% 85% 80% 80% 80%
PRODUCT
XYZ Sales 9.5 9.5 13.5 20.4 29.6 46.3%

NEW PRODUCT Market Size 0.9 0.9 2.2 6.3 13.4 146.8%
 MARKETING STRATEGY
TACTICS
MARKETING
POSITIONING STRATEGY PRODUCT PRICE PROMOTION DISTRIBUTION

• Improved service
• World class technology • Skimming strategy quality • Strategic partnership
• Customized solution • Provide strong solution • Company wide brand with selected channels
SEGMENT • Establish close XYZ-
• Premium pricing
• Entrenched leadership channel-customer capability advertising • For key accounts, XYZ
A •
relation • Customer training
strategy
• Referral programs leads and channels
Premium products and
brand image • Account plan • Highest level of follow
customer service

• High quality products • Penetrate new

• Penetrating strategy • Moderate pricing
• Good service • Emphasize reliability channels
SEGMENT • Brand extension: quality (e.g., 10- • Seminars and events
• Good price/ • Moderate customer • Delegate account
B performance ratio
leverage XYZ’s brand
service level
20% higher than • Creative product names
specific marketing
image in Segment A competitors)
• Scalability & reliability activities to channels

• Low pricing • Grow number of

• Product advertising
SEGMENT • Easy to operate • Penetrating strategy
• Standard product/
strategy (e.g., 5- channels
simplification/ stripped- through mass print
C • Cost effective • Establish awareness
down version
10% higher than
• Creative product names
• Partnership with
competitors) popular vendors
 INVESTMENT PROJECTION

YEAR YEAR YEAR YEAR YEAR

1 2 3 4 5
(IN
US$M)

Market size 26 39 60 86 92

10. 15. 26. 43. 50.

Revenue 4 7 7 0 3

Product launch initiatives 0.6 1.0 0.5 0.5 0.3

Marketing 0.5 1.3 1.2 1.0 1.0

Channel programs & development 0.4 1.2 0.8 0.5 0.6

Market demand investment 1.5 3.5 2.5 2.0 1.5

DEVELOPMENT TIMELINE HIGH PRIORITY MID PRIORITY LOW PRIORITY

Channel Development

Channel Training
CHANNEL
PROGRAMS
Channel Co-marketing

Channel Incentives

Segment A Product (Solution, service, simplification)

PRODUCT
Segment B Product (Service, solution)
PROGRAMS

Segment C Product (Product development)

Segment A Marketing (Ad, seminars, HQ level)

MARKETING
Segment B Marketing (Ad, branding, pricing)
PROGRAMS

Segment C Marketing (Ad, branding, pricing)

Short Term Government Programs

GOV’T PROGRAMS
Long Term Government Programs (Commercial diplomacy, Advisory Board and seminar)

QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4

 Local Competitor Enters Market

Cost of Capital Increase >5%

Copper Price Increase >25%

Exchange Rate Fluctuation

Tighter Emission Standards
Customer Preference Shift

New Substitutes Available

Work Stoppage >1 Week
Supply Chain Disruption

Supplier Consolidation
Economic Downturn

FCPA Violation
Supply Chain Disruption ●    

Customer Preference Shift ●     

Copper Price Increase >25%  ●   

RISK Work Stoppage >1 Week  ●   

INTERACTIONS Economic Downturn     ●      

Supplier Consolidation     ● 

Local Competitor Enters Market    ●    

New Substitutes Available   ● 

Cost of Capital Increase >5%   ● 

Tighter Emission Standards   ●

FCPA Violation   ●

Exchange Rate Fluctuation      ●

MARCI CHART (MITIGATE, ASSURE, REDEPLOY, & CUMULATIVE)

Very Low Low Medium High Very High I = Impact L = Likelihood V = Vulnerability S = Speed of Onset

ID RISK I L V S
ASSURANCE OF PREPAREDNESS ENHANCE RISK MITIGATION
1 Supply chain disruption 4.8 3.7 3.8 4
5
2 Customer preference shift 4.1 3.3 3.5 2

8 3 Copper price rise >10% 4.3 4.7 2.3 4

4
1 4 Work stoppage >1 week 4.4 4.5 4.1 3
Potential impact

7
2 5
11 5 Economic downturn 4.0 3.7 3.5 2
6
3 4
9 10 6 Supplier consolidation 3.8 4.2 3.2 1
12
7 Local competitors enter 3.9 4.5 3.6 1
3

2 8 New substitutes available 4.5 3.6 4.2 1

9 Cost of capital rise 2.9 4.0 2.9 3

1 10 Tighter emission standards 3.4 4.6 2.9 1

11 Legal violation 4.0 4.0 3.3 5

REDEPLOY RESOURCES MEASURE OF CUMULATIVE IMPACT
12 Exchange rate fluctuations 2.7 4.1 2.7 4
0
1.5 2 2.5 3 3.5 4 4.5 5 5.5 6

Potential Vulnerability
 GO TO MARKET PLAN

DIFFERENTIATED
BUSINESS OBJECTIVES TARGET MARKETS TARGET CUSTOMERS CHANNELS
OFFERINGS

• World class technology • World class technology • World class technology • World class technology • World class technology
• Customized solution • Customized solution • Customized solution • Customized solution • Customized solution
• Entrenched leadership • Entrenched leadership • Entrenched leadership • Entrenched leadership • Entrenched leadership
• Premium products and brand • Premium products and brand • Premium products and brand • Premium products and brand • Premium products and brand
image image image image image

MARKETING STRATEGIES KEY METRICS KEY SUCCESS FACTORS

• World class technology • World class technology • World class technology

• Customized solution • Customized solution • Customized solution
• Entrenched leadership • Entrenched leadership • Entrenched leadership
• Premium products and brand image • Premium products and brand image • Premium products and brand image
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