Introduction for Product Plan template

Brian (Yoohyun) KimProduct Marketing manager at CDNetworks

January, 2015

Contents • Environmental Landscape (Market/Technology)

• 3C analysis

• Product Concept

• Profit and Loss analysis (Financial Projection)

• Development plan (Project Schedule)

• Others (Optional, if necessary)

• Sales & Distribution

• Partner program

• Go to Market Strategy

• Appendix

• Environmental (Market) Landscape analysis

Definition1) A market landscape analyzes needs and wants in a market. The new marketing landscape creates products

and conveys messages to influence exchange.

Needs and Wants1) A need is a consumer's desire for a product's or service's specific benefit, whether that is functional or

emotional. (e.g. I am ‘hungry’, need to eat.)2) A want is the desire for products or services that are not necessary, but which consumers wish for.

(e.g. I have to decide what I ‘want to eat’.)

• Useful market/technology trend analysis tool

Market Size or Revenue (Sales) forecast1) A market research or survey which shows the target (addressable) market size or forecast is very useful.2) You can search a market report or news article from the internet and sometimes you can utilize

competitor’s IR report like annual report or market index.

Technology trend or Hot topic in industry1) A technology research report or tech-leader’s opinion on the blog is very useful.

Useful research web-site in CDN industry1) 451 research / Network Manias / Streamingmedia.com / Kocca (한국콘텐츠 진흥원), etc.

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

Environmental Landscape

An example of Market Landscape analysis

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

201X년 모바일 단말 시장은 LTE 시장 확산에 따른 OOOO 중심의 사양 경쟁 및OO 차별화 경쟁이 지속될 것으로 예상됨.

OOOO, OOOO, OOO 등의 최고/최신 사양 및 OOOO UX로 시장 경쟁력 확보

201X년 시장 환경 변화

LTE 시장 확산

- LTE 스마트폰 가입자의 경우 201X년 말 OOO만 돌파

이후 201X년 말에는 O,OOO만 명에 이를 것으로 예상

경쟁 동향

1. OOOO 중심의 사양 경쟁

- 스마트폰에 대한 소비자 기대치 상승

- 고성능/고사양: 고성능 프로세서, 고해상도 대화면 등

2. OO 차별화

- 직관적 사용 환경

- 기타 차별화 요소

*출처: 201X~1X년 LTE 시장 전망, XX 리서치 201X. XX

3C Analysis

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

• 3C (Customer/Competitor/Company) analysis

Definition1) The 3C Model is a business model, which offers a strategic look at the factors needed for success.

3C Evaluation Component Evaluation Criteria

Customer • Market Size• Market growth (Compound Annual

Growth Rate)

- Is the segmented market size is proper to our company?

- Is the market is expected to grow continuously?

- How much is the market potential per each segmented market?

Competitor • Current competitors• Potential competitors

- Are the current competitors strong and aggressive?

- Is it highly possible to enter for potential customers? Is there any technical or economical barriers to enter the market?

Company • Company’s goal (Business/Product strategy)

• Resources• Synergy with other product or business

- Does it align with company’s goal or business/product strategy?

- Do we have technical, financial and HR resources?

- Can we make a synergy with current product/business portfolio?

3C Analysis

• Useful analysis tool for 3C analysis

#1. Customer Analysis1) Identifying the target customer and surveying the target market size2) Customer dynamic research or survey which shows the target (addressable) market size or forecast is very

useful to identify it.3) Highly recommend to listen to customer’s voice through Sales representatives, customer meeting or

external Seminar/Exhibitions.

#2. Competitor analysis1) Describe why we are unique. (e.g. because price, platform, etc.)2) Highly recommend to visit competitor’s web page and attend industry technology and business seminar

regularly.3) If 1) is not possible, try to find out YouTube video clips or Slides from “Slideshare.net”.4) It is helpful to make the “Feature Comparison table” or “Listing competitor price range”.

#3. Company analysis1) Highly recommend to refer to company internal document. (e.g. Company mid-term plan, business strategy

or product strategy, etc.)2) It is helpful to make the “SWOT” diagram or “BCG” matrix.

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

An example of 3C Analysis - #1. Customer analysis

사업자간 LTE 가입자 확보 경쟁이 심화됨에 따라 OOOO, OOOO 기술 등의네트워크 고도화 및 이에 대응하는 LTE 전략 서비스 강화 예상됨.

OOOO 기술 적용 및 LTE 주요 서비스 탑재를 통해사업자 요구사항에 적극 대응

LTE M/S전망 사업자별 LTE 전략

OOOO LTE- 데이터 트래픽 관리- 기존 2G/3G망 활용 및 OO 기술 도입 통한 품질 고도화- 프리미엄 컨텐츠 서비스 강화

OOOO LTE- 가상화 기지국 기술 활용 가장 빠른 LTE 이미지 강조- OO 기술 도입

OOOO LTE- LTE 커버리지 확대 및 데이터 트래픽 관리 기술 도입- OO 기술 조기 상용화- XX 기술 201x년 하반기 중 상용화- OO 서비스 강화

A사업자

B사업자

C사업자

000K

0,0000K

2011 2012

000K

0,0000K

2011 2012

000K

0,0000K

2011 2012

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

An example of 3C Analysis - #2. Competitor analysis

Project XX Competitor 1 Competitor 2

Design

SPEC

- CPU: OO SnapXXX Dual

- 디스플레이: X.X” HD LCD

- RAM: XGB

- CPU: XX ExyXXX Quad

- 디스플레이: X.X” HD 슈퍼아몰레드

- RAM: XGB

- CPU: OO SnapXXX Dual

- 디스플레이: X.X” HD LCD

- RAM: XGB

상품성

- 최고 성능의 HW 사양 적용 및 감성

UX 적용하여 차별화

- 쿼드코어 등 최고 사양 HW 적용을

통한 사양 경쟁 우위 선점

- 명품 Style 디자인 적용을 통한

디자인 고급화 전략

차별화 요소- 음성인식 활용한 카메라 촬영 및

SNS 업데이트/이메일/메신저 송신

- 대화체 음성인식 기능 적용 - 무선 충전/타임머신 샷

경쟁 예상 모델 검토 결과, Project XX는 OOOO, OOOO 등 최고 사양 HW 및OOOO 등 UX 차별화를 통한 경쟁력 확보 가능할 것으로 예상됨.

경쟁력 포인트: 고사양 프리미엄 Segment에서 OOOO 등을 활용하여 경쟁력 확보 가능함.

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

An example of 3C Analysis - #3. Company analysis

• 세계적 수준의 기술력• 고사양에 비교적 저가인

가격경쟁력• 국내 시장 M/S 2위의

브랜드 파워

Strengths Weaknesses

Opportunities Threats

SWOTAnalysis

• 비교적 낮은 해외 브랜드인지도

• OO/XX 경쟁사와 비교시 자금력 열위

• 해외시장 수요 증가 및알뜰폰 사업자 수요 증가

• 태블릿 PC 사업 신규진출

• OO의 저가 공세• XX의 라인업 다양화

공세

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

Product Concept

• Product Concept definition

Definition1) Product concept is the understanding of the dynamics of the product in order to showcase the best

qualities and maximum features of the product. Marketers spend a lot of time and research in order to target their attended audience. Marketers will look into a product concept before marketing a product towards their customers. (*Source: Wikipedia)

2) While the "product concept" is based upon the idea that customers prefer products that have the most quality, performance, and features, some customers prefer a product that is simpler and easier to use. (*Source: Wikipedia)

3) It is helpful to include “KBF (Key Buying Factor)” or differentiator compared to competitor.4) Preferred to make “1 pager” of the product concept for future use. (e.g. Making product marketing

brochure and sales training material, etc.)5) Note: ‘1 pager’ means one page product summary document

Value Proposition1) A value proposition is a promise of value to be delivered and acknowledged and a belief from the customer

that value will be delivered and experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services. (*Source: Wikipedia)

2) Creating a value proposition is a part of business strategy, so if the value proposition of the new product is in, it seems very excellent. (*Source: Wikipedia)

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

An example of Product Concept

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

Project XX는 OO, OO 기술을 적용한 “최고의 성능”, “혁신적인 Style”의LTE 스마트폰으로, OOOO, OOOO 기능을 탑재하여 차별화된 UX를 구현함.

혁신적인 Style

- “화면은 더 커졌지만 폰은 더 작아졌다!”

- 동급 LCD 기준 최고 화면 비율

(X.X” HD 기준 XX.X% 화면 비율 달성)

- 고광택 세라믹 배터리 커버 장착

차별화된 감성 UX

- 세계 최초 카메라 음성 촬영/이미지

업로드 기능 제공 (SNS/이메일/메시지)

- 음성을 활용한 전화걸기/SMS송부하기/

이메일 보내기 가능

- 트위터/페이스북 등 SNS 서비스 음성

업데이트 가능

최고 속도 / 최고 사양

- OO SnapXXX SX 적용

최고 연산 속도를 통한 빠른 속도 제공

- 멀티태스킹 전환 및 웹 서핑 시 빠른

속도 제공

- LTE 스마트폰 중 최고 사용 시간 제공

(소모전류 절감 회로 적용/LCD 소모전류

개선/통화 및 대기시간 확대)

Powerful Performance Emotional UX Innovative Design

Profit and Loss analysis

• Gross Profit

Introduction1) Key analytical tool in analyzing a product’s operating performance.2) The Gross Profit is basically the difference between the income from sales revenue minus the actual cost

associated with generating that income.

Formula1) Gross Profit = Sales Revenue – Cost of Sales2) % of Gross Profit = Gross Profit/Revenue X 100%

Example1) Gross Profit = $55,000 = Total Revenue ($100,000) – Total Cost of Sales ($45,000)2) % of Gross Profit = $55,000 / $100,000 * 100% = 55%

• Operating Profit

Introduction1) Measures overall performance of a certain product’s operations.2) Operating expenses = Selling expenses + General and Administrative expenses

Selling & General Administrative expenses1) Selling: Marketing/Advertisement/Salesmen’s salaries2) General Administrative: Office and officer salaries/Depreciation expense/Insurance/lease

expense/Research and Development

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

Profit and Loss analysis

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

• Revenue Forecast and Cost estimation

Revenue forecast1) Before doing a Gross Profit analysis, you must have two important back data. One is the Revenue

forecasting and the other is cost of the product.2) You should get the sales forecast for the new product from Sales, however, it is not available, you should

estimate the revenue based on concrete business logic and get a confirmation from sales or managements (executive group).

Cost estimation1) Based on sales forecast, you can estimate the individual cost factor for the new product.2) With this information, you can calculate the total cost of sales with appropriate cost logic.3) And if additional CAPEX is needed, it should be included into Profit and Loss statement.

An example of Profit and Loss analysis – Sales Forecast

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

201X년 X월 201X년 X월 201X년 X월 201X년 X월 201X년 X월 Total

Project XX 수량 (K units) 00 00 00 000 000 000

판가 (\K) 000 000 000 000 000

매출액 (\M) 0,000 00,000 00,000 00,000 00,000 000,000

Project XX의 판매 계획은 아래와 같음.

평균판가는 \000K이며, 총 매출액은 판매 기간 Total \000,000M임.

* 판가 변동 비율에 대해서는 Sales 정책에 따라 달라질 수 있음.

An example of Profit and Loss analysis – Target Cost

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

Project XX는 현 수준 재료비 $XXX에서 $XX 절감 목표 달성하여 목표 재료비$XXX Target 예정임.

* 상세 절감 목표에 대해서는 유관부서 취합하여 별도 관리함.* 환율 기준은 201X년 사업계획 환율 기준임.

$XXX

$XXX

현재 재료비 목표 재료비

$XX 절감 목표 달성* 기준환율: $1=\1,000

An example of Profit and Loss analysis

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

Project XX 경제성 분석

*기준환율: $1=\1,000

총액 (\M) Unit (\K) %

매출액 270,000 900 100%

수량 (K units) 300 1

판가 (\K) 900 900

변동비 175,550 585 65.0%

매출원가 157,500 525 58.3%

재료비 150,000 500 55.6%

제조가공비 7,500 25 2.8%

판관비 18,050 60 6.7%

Royalty 6,750 23 2.5%

AS비용 8,100 27 3.0%

판촉비 2,700 9 1.0%

물류비 500 2 0.2%

고정비 28,800 96 10.7%

직접고정비 25,800 86 9.6%

연구개발비 20,000 67 7.4%

디자인개발비 300 1 0.1%

금형비 500 2 0.2%

판관비 5,000 17 1.9%

간접고정비 3,000 10 1.1%

개발 간접 고정비 1,000 3 0.4%

제조 간접 고정비 2,000 7 0.7%

영업이익 65,650 219 24.3%

Project XX

목표 재료비, 판매 계획 기준 매출액 XXX, 영업 이익 24.3%임.

Development Plan

Market Landscape

3C analysis

Product Concept

Profit and Loss

Development plan

• Development (Deployment) Plan

Development (Deployment) plan1) This document shows the development (or deployment) plan aligned with product roadmap.2) It is helpful to include the R&D resource (Man/Month) for the project and major event date. (e.g. code

complete / QA / Production)

• An example of Development Plan

상품기획단계 WS 단계 ES 단계 QA 단계

신상품 개발 발의(201X. X. X)

상품화 승인(201X. X. X)

Working Sample 승인(201X. X. X)

ES (개발완료) 승인(201X. X. X)

Production(201X. X. X)

Project XX는 201X년 X월 X일 상품화 승인, X월 X일 출하 목표임.

Others

• Sales and Distribution

Sales and Distribution1) Discuss how each segment of the market will be targeted.2) Who will sell (direct sales or Channel) and why care about this product.

• Partner Program

Partner Program1) Discuss how each type of partner will be targeted. (e.g. System integrator, VAR, reseller, etc.)2) Who will sell and why care about this product.3) How will support partners, what training, all expectations, etc.

• Go to Market Strategy

Go to Market Strategy1) Go-To-Market strategy refers to the set of integrated tactics which a company will use to connect with its

customers/business and the organizational processes it develops (such as pricing and contracting) to guide customer interactions from initial contact through fulfillment. (*Source: Wikipedia)

2) A Go-To-Market strategy usually involves answering 5 key questions: (*Source: Wikipedia)1. WHO will we actively target within the market?2. WHAT will be our product portfolio for target customers?3. HOW MUCH will we charge for our products for different customers?4. HOW will we promote our products to target customers?5. WHERE will we promote and sell our products to target customers?

Thank you

Brian (Yoohyun) KimProduct Marketing Manager| CDNetworks

brian.Yoohyun.kim@gmail.comhttp://yoohyunkim.blogspot.com