Sensor Market Strategy

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Developing a Strategic Marketing Plan
for your Sensor Business
Presented by
Bryan Manning
President
B & D International, LLC

Typical Strategic Planning Approach
  Strategic Planning at Hawker Siddeley
  Time consuming: ties up valuable key staff for long
periods
  Complicated
  Very expensive
  Difficult to implement

Marketing Strategy 1,2, 3
  Step 1: Where we are today

Internal and External Analysis

  TALK TO CUSTOMERS

  Company’s Core Competencies

  Know your competition

  What’s happening in your Industry

  Select company’s overall strategy

  Step 2: Where we want to go

Marketing Strategy

  Segmentation

  Targeting

  Positioning

  Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and
maintain market leadership

  Step 3: How will we get there

Marketing Tactics

  Product

  Price

  Place (channels)

  Promotion

  Purse tactics that ﬁt the Strategic Positioning

Step 1: Where we are today
Internal & External Analysis
  TALK TO CUSTOMERS
  First and most important step in any marketing
strategy
  Talking to customers important at every stage
  Concentrating on existing customers often
overlooked
  Value of existing customers can be very high

Growth Strategy Options
Best sequence
•  Start with Existing Markets/Products
•  Then Existing Markets/New Products
•  Then New Markets/Existing Products
Existing Products New Products
New
Markets
Existing
Markets
#1
Market Penetration Product Development
Market Development Diversification
#2
#3 #4

Growth Strategy Options
Best sequence
•  Start with Existing Customers/Products
•  Then Existing Customers/New Products
•  Then New Customers/Existing Products
Existing Products New Products
New
Customers
Existing
Customers
Customer Penetration
Product Development
Market Development Diversification

Feeding the Sales Pipeline
1.  Inquiries
2.  Qualified Leads
3.  Demo
4.  Technical Eval.
5.  Proposal
6.  Closing - Contract
$40M (200)
$15M (75)
$8M (40)
$5M (25)
$3M (15)
$2M (10)
%
Prob
0%
10%
30%
50%
70%
90%
Customers
Marketing Lead Generation

Feeding the Sales Pipeline
1.  Inquiries
2.  Qualified Leads
3.  Demo
4.  Technical Eval.
5.  Proposal
6.  Closing - Contract
$40M (200)
$15M (75)
$8M (40)
$5M (25)
$3M (15)
$2M (10)
%
Prob
0%
10%
30%
50%
70%
90%
Customers
Marketing Leads + Customer Leads

Talk to Existing Customers
-The first step
  Contact existing customers on a frequent basis
  Ask them is they are satisfied with your performance
  Customer Surveys
  Pursue other applications in existing locations
  Ask for contact names in other locations in the US
and overseas

Understand Your Core Competencies
  Loyal Customer base
  Brand image
  Technology (product, process, communication)
  Quality/Service
  Marketing
  Sales/Distribution channels
  Low cost producer
  Global presence

Know Your Competition
Why?
  Defend your base business
  Important in differentiation/positioning
  Forecast changes in the marketplace: (technology, pricing,
trends etc.)
How?
  Customers/salesforce
  Constantly tracking them (by yourselves or with outside help)
  Benchmarking
  Shows/Seminars/Publications

Sun Tzu The Art of War
400 – 320 BC

Sun Tzu says….
  What enables the enlightened ruler and the
sage general to achieve results beyond the
capability of the ordinary man is
FOREKNOWLEDGE
  The nature of war is ceaseless change – be
prepared to change plans in mid-course
  The expert commander strikes only when the
situation assures victory

Sun Tzu says….
  The Art of War strategic and tactical doctrines
are based on deception; the creation of false
appearances to mystify and delude the
enemy
  The indirect approach
  Ready adaptability to the enemy’s situation
  Flexible and coordinated maneuver of separate
combat elements
  And speedy concentration against points of
weakness
  The only constant in war is constant change

Gates Casts Cold Eye on Google
CARLSBAD, Calif. -- Don’t be fooled by all those speeches
about global health and high-school education. Bill Gates is
still, first and foremost, about clobbering Microsoft
Corp’s Competition.
Courtesy: The Wall Street Journal

Know What’s Happening in Your
Industry
  Keep track of trends in your industry
  Size and growth of Industry and sub-segments
  Changes and direction of new technology
  Global trends
  New players in the industry
  Keep track of trends in your Customer’s industry
  Size and growth of Industry and sub-segments
  Track new potential applications
  Vendor reduction
  Outsourcing
  Off shore manufacturing

Step 1: Where we are today
Final Step: Select Strategic Alternatives
  After an in-dept review of “where you
are today” decide on one or more
overall strategic alternatives

Strategic Alternatives
Differentiation
Low Cost
Focus
Preemptive Move
Synergy

  Michael Porter says: “Differentiation and low cost
represent the two basic strategies available to firms and that
all successful strategies will involve one or both of these
thrusts”

Differentiation
Low Cost
Focus
Preemptive Move
Synergy

Differentiation Strategy
Product offering is differentiated from the competition,
concentrating on what target customers value most
such as:
  Quality
  Reliability
  Ease of use
  Features (e.g ability to handle harsh
environments)
  Excellent Service

Focus Strategy
Focusing the business on either a:
  Focus on the type of Sensor product offered:
  Temperature and Pressure Sensors
  Level Sensors
  Non-contact Displacement Sensors
  Focus on relatively small segments or sub segments of the
market:
  Automotive braking systems market
  Brake testing systems
  Disc Brake displacement measurement

Avoid Strategy
Dilution or
Distraction
Compete
with Limited
Resources
Bypass
Competitor
Assets/Competencies
Providing
Positioning
Strategy
Reduce
Competitive
Pressures
Focus Strategy
Figure 10.4

Why Differentiation and Focus?
  The Sensors market is extremely fragmented
(there are thousands of sensor companies worldwide)
  It’s so fragmented because the market can be
subdivided by three non-exclusive basic
categories:
  Parameter sensed (Temperature, Pressure etc)
  Technology used (bi-metal, thermistors, RTDs etc)
  Specific Applications (e.g. satellite thermal control)

Why Differentiation and Focus?
  The market is therefore highly
fragmented into thousands of market
sub segments
  For example one of a sensor suppliers
focuses could be supplying Temperature
sensors using bi-metal technology for the
application of satellite thermal control

 Step 1: Where we are today















Marketing Strategy

  Segmentation

  Targeting

  Positioning

  Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and


Marketing Tactics

  Product

  Price


  Promotion


Step 2: Where we want to go..
Develop Marketing Strategy
  Segmentation
  Targeting
  Positioning
Develop a unique, sustainable value proposition backed by
compelling evidence on differentiation to establish and

Segmentation
Separate customers or potential
customers into groups with like
wants and needs

Segmentation

Segmentation
Typical Sensors Market Segmentation
  Property sensed
  Market
  Application
  Features/Benefits
  Geographic

Segmentation by Market
Automotive
Aerospace
Medical

Market by Application
Aircraft Thermal Control
Satellite Thermal Control
Aerospace Market

Targeting
What bases?
  Excellent Match with company’s Core Competencies
  Matches companies overall strategy
  Competition (or lack thereof)
  Size/growth
  Profitability
  Company’s feature and benefits match target market’s like
wants and needs
  Resources required

Positioning
  Describes the position a firm wishes to occupy in
the mind of customers in the target segment
versus the competition
  According to David Aaker, Positioning must:
  Resonate with the target market
  Differentiate from competitors
  Reflect the culture, strategy, and capabilities of the
business

Positioning
  Positioning statement should include:
  What (type of product offered)
  Who (target market and/or application)
  Differentiation (how you are different from the competition)
  Once you have developed excellent Positioning you are
80% there because your road map is in place
  You know what you are offering to who, specifically and
why they should by your product.
  Some examples….


Marketing Strategy

  Segmentation

  Targeting

  Positioning

  Develop a unique, sustainable value proposition backed
by compelling evidence on differentiation to establish
and maintain market leadership









Marketing Strategy

  Segmentation

  Targeting

  Positioning

  Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and maintain market
leadership


Marketing Tactics

  Product

  Price


  Promotion


Thank You!!

Sensor Market Strategy

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