Product & Market Development

Emad Saif Center For Entrepreneurship, Qatar University

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CHALLENGE: Product-Market-Fit

AGENDA

TOOL: Value Proposition Canvas

METHODOLOGY: Making it FIT

MIKE

• Sales Manager • Age: 28 • Always on the road

Cares about efficiency & speed

MARYAM

• Fashion Designer • Age: 35 • Shows her work

portfolio to clients in &outside office

MAHER

• Senior Accountant • Age: 48 • Works at office on

spreadsheets • multi-tasks a lot

What should they use to send emails?

2,1 6,5,4 3

Product Market

Value proposition

Customer profile

Product Market Development

Fit

Many products FAIL!

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Tool to clarify

customer needs & how to

create value for them.

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Business Model Canvas

The set of value proposition benefits that you design to attract customers

The set of customer characteristics that you assume, observe and verify in the market

Value Proposition Canvas

Value Map & Customer Profile

Customer Profile Value Map

Customer Profile choose CUSTOMER SEGMENT first

Customer Jobs Jobs describe the things your customers are trying to get done in their work or in their life

Functional jobs (tasks)

Social jobs (e.g. gain power / status)

Personal/Emotional jobs (e.g. feel good)

Supporting jobs (e.g. communication)

Customer Pains Pains describe anything that annoys your customers before, during, and after trying to get a job done or simply prevents them from getting a job done.

Undesired Costs & Situations (time, money, underperformance, mistakes)

Negative Emotions (frustrations)

Risks (technical, social, financial)

Customer Gains Gains describe the outcomes and benefits your customers want. Some gains are required, expected, or desired by customers, and some would surprise them.

Required gains

Expected gains

Desired gains Unexpected gains

(functional utility, social gains, positive emotions and cost savings)

Step into your customer shoes

Jobs

Pains

Gains

Ranking

Customer Profiling Summary

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Value Map

Products & Services This is simply a list of what you offer

Physical / tangible (e.g. manufactured goods, face-to-face customer service)

Intangible (e.g. copyrights, quality assurance)

Digital (e.g. downloads, online recommendations)

Financial (e.g. investment funds, financing services)

Pain Relievers Pain relievers describe how exactly your products and services alleviate specific customer pains

How do your products / services eliminate or reduce negative emotions, undesired costs and situations and risks?

Gain Creators Gain Creators describe how your products and services create customer gains

How do your products / services create benefits your customer expects, desires or would be surprised by?

Map how your products & services create value

Products & Services

Pains Relievers

Gains Creators

Ranking

Products & Services Rank products & services from nice to have to essential

Pain Relievers Rank pains from nice to have to essential

Gain Creators Rank gains from nice to have to essential

Value Mapping Summary

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create a VALUE PROPOSITION CANVAS

GEW Attendees

EXERCISE

???

Socialize

Attend Seminars

Take Notes

Eat

Promote self/org.

Pain of Multi-tasking

Hands full (bags & items)

Finding room location

Too Much Info to process

Seminars Too Long

Boring Seminars

Answer calls & emails

Make good connections

Get Inspired

Learn new things

Gain new skills

Free food Free giveaways

Discover new opportunities

Escape Work

Fear time wasted

Engaging Seminars

Downloadable presentations

Pens & notepads

Spacious venue

Public Attendees List

Great topics & speakers

Directions & ushers to help

Meeting corners to meet and rest

Coffee Breaks

Event smartphone app

High profile speakers

Good food

Prizes

Internet Access

Interesting topics

Tweet signs to share thoughts

Tweet

GEW Attendees

GEW Smartphone App

Carry bags

Drop-off service

the

PRODUCT: Home inspection device

Cracks in

Foundation Mold

Defective Electrical Wiring

Hidden Moisture

Startup Story

CUSTOMER SEGMENT: Home inspectors

• 20% Time saving • 80% Cheaper tool • Better quality inspection

Startup Story [After Customer Validation]

NO Product-Market FIT

The GOOD • 20% Time saving • 80% Cheaper tool • Better quality inspection

The BAD Home inspectors are GENERALISTS so the device increases their RISK!!

Listen to Customers

• Interviews

• Surveys

• Questionnaires

• Presentations

• Direct observations

Types of Fit

Problem-Solution Fit Identify relevant customer jobs, pains, and gains you believe you can address with your value proposition

Product-Market Fit Customers positively react to your value proposition and it gets traction in the market

Business Model Fit You find a business model that is scalable & profitable

1. 2.

3.

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Check Your FIT

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Personal Items Drop-off Service

GEW Attendees

Secure their personal items (jackets, bags …etc.)

Avoiding Burden of carrying or losing

enabling Peace of mind to focus on the event

Other chaotic events

MVP

is minimum features of solution to solve customer problem

Minimal Viable Product (MVP)

MVP Example Square offers the Square Reader, which allows users to accept credit card payments through their smart phones, is actually given to the customer for free. In turn, they receive 2.75% of the exchange.

Lean Startup Methodology

Summary

1. Use Value Proposition Canvas to guess the customer profile and the value map

2. Validate by talking to customers

3. Create MVP

4. Pivot

Further Reading

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THANK YOU!

Emad Saif

Center for Entrepreneurship

QATAR UNIVERSITY emadsaif@qu.edu.qa

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