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Data Gathering and Analysis Training 23 September 2005 26 September 2005. Data gathering vs. analysis. New focus. Historic emphasis. Low. 80% Data gathering. 50% Data gathering. Value to clients. 20% Analysis. 50% Analysis. High. Simple rules. Always ask yourself “so what?” - PowerPoint PPT Presentation
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Data Gathering and Analysis Training
23 September 2005
26 September 2005
2
Data gathering vs. analysis
20%Analysis
80%Data gathering
50%Analysis
50%Data
gathering Value to clients
Historic emphasis New focus
High
Low
3
Simple rules
Always ask yourself “so what?”
Do not wait to analyze until data collection is complete
Keep it simple and structured
Make the output of the analysis obvious
Consider analysis techniques beyond the standard tools
4
Simple rules
Always ask yourself “so what?”
Do not wait to analyze until data collection is complete
Keep it simple and structured
Make the output of the analysis obvious
Consider analysis techniques beyond the standard tools
5
The question
Should the client build a nursing home in upstate, New York?
6
Nursing Home Ownership within Market Region
Total Number of Nursing Homes: 47 Registered For Profit Homes: 23 Homes
– Represents 48.9% of total Non for Profit Homes: 24 Homes
– Represents 51.1% of total Highest Number of Registered Homes
– For Profit Corporation: 17 Homes
– Non For Profit Corporation: 14 Homes
– Government Ownership by County: 5 Homes
– For Profit Partnership: 4 Homes
7
Nursing Home Statistical Information for Market Region
Statistical Averages:– Average Number of Beds: 150 beds
– Average Number of Occupied Beds: 140 beds
– Average Percent of Occupied Beds: 93.4%
– Average Number of Staff Hours per Resident: 3.45 hours All Nursing Homes within area are Medicare and Medicaid
Certified
Source: www.medicare.gov
8
All Surrounding Counties Senior Income Data
Alld Surrounding All Ages 55 to 64 65 to 74 75 & over % of Senior PopulationCumulative % Senior
Population
Less than $10,000 24362 3635 3753 5351 10.4% 10.4%
$10,000~$14,999 18002 1946 3376 5025 8.4% 18.9%
$15,000~$19,999 17818 2020 3247 4107 7.7% 26.5%
$20,000~$24,999 17947 2497 3189 3246 7.3% 33.8%
$25,000~$29,999 19443 2859 3072 2689 7.0% 40.8%
$30,000~$34,999 18919 2550 2916 2308 6.3% 47.2%
$35,000~$39,999 18014 2679 2583 1753 5.7% 52.9%
$40,000~$44,999 17402 2439 2329 1350 5.0% 57.9%
$45,000~$49,999 16383 2536 1965 1008 4.5% 62.4%
$50,000~$59,999 32060 4726 3296 1600 7.9% 70.3%
$60,000~$74,999 39382 5743 3206 1536 8.6% 78.8%
$75,000~$99,999 44116 7025 2695 1135 8.9% 87.7%
$100,000~$124,999 24364 4177 1242 626 4.9% 92.6%
$125,000~$149,999 12132 2347 681 278 2.7% 95.3%
$150,000~$199,999 9948 2229 550 266 2.5% 97.8%
$200,000 and more 7032 1751 611 323 2.2% 100.0%
Total Households 337324 51154 38711 32601 100.0%
9
So what?
10
Can we answer the question now?
Definition of target market Total demand and trends of target market Total current supply Anticipated supply (new construction) Barriers to enter market
What do we need What do we have
What data gaps exist
11
What do we have?
Alld Surrounding All Ages 55 to 64 65 to 74 75 & over % of Senior PopulationCumulative % Senior
Population
$50,000~$59,999 32060 4726 3296 1600 7.9% 70.3%
$60,000~$74,999 39382 5743 3206 1536 8.6% 78.8%
$75,000~$99,999 44116 7025 2695 1135 8.9% 87.7%
$100,000~$124,999 24364 4177 1242 626 4.9% 92.6%
$125,000~$149,999 12132 2347 681 278 2.7% 95.3%
$150,000~$199,999 9948 2229 550 266 2.5% 97.8%
$200,000 and more 7032 1751 611 323 2.2% 100.0%
Total Households 337324 51154 38711 32601 100.0%
• 47 nursing home X 150 beds = 7,050 total beds• 93% occupancy rate• 18 % growth in 65 to 74 versus 75 & over• 57% growth in 55 to 64 versus 75 & over
Target market
12
Can we answer the question now?
Definition of target market Total demand and trends of target market Total current supply Anticipated supply (new construction) Barriers to enter market
What do we need What do we have
What data gaps exist
13
Can we answer the question now?
Definition of target market Total demand and trends of target market Total current supply Anticipated supply (new construction) Barriers to enter market
What do we need What do we have
What data gaps exist Percent of people who end up in nursing home by age New nursing home starts Number of nursing home permits filed Regulatory/ licensing requirements
14
Market feasibility in 2 years
7,050 beds7,050 beds
6,557 beds6,557 beds
8,100 beds 8,100 beds
12,997 beds12,997 beds
5,255 old +7,742 new
7 known new buildings planned @ 150 beds each
• 20% of target market will need nursing home care over age 75
• 10% of current nursing home tenants will be removed each year
Key assumptions
Current In 2 years
4,897 beds 4,897 beds
Supply
Demand
Opportunity
• Significant market opportunity exists even with the potential additional building starts
• Company should enter if licensing can be approved
Conclusion
15
Simple rules
Always ask yourself “so what?”
Do not wait to analyze until data collection is complete
Keep it simple and structured
Make the output of the analysis obvious
Consider analysis techniques beyond the standard tools
16
Market Segmentation Scenarios
1. Segment via Income– Farms with income $100,000+– In FL, GA, NC, SC– High end vegetables
2. Segment via Farmers Education Level– Farmers with some or 4 years
of college– In FL, GA, NC, SC– High end vegetables
3. Segment via Income with Increased Target States
– Farms with income $100,000+– In FL, GA, NC, SC plus
additional states– High end vegetables
4. Segment via Income with Increased Product Portfolio
– Farms with income $100,000+– In FL, GA, NC, SC– Increased portfolio of high end
vegetables
How much potential revenue can be generated from our software to better manage high end vegetable yields?
17
1. Segment via Income
FL, GA, NC, SC
Farms $100,000+
High-end vegetables
The target market: Farms with operating income of $100,000+ per year, in FL, GA, NC, SC, who grow one or more of the 15 stated high end vegetables.
Calculation of total target market (acres). Total market was segmented as using farming economical class, location and output produce from farm. Target farm size by economical class was then calculated as a percentage of the total market. The same percentage was applied to the total target produce farm land. The calculation was performed for the nation as a whole and for the four target states.
18
1. Target Market Revenue Potential
• Total acres used to produce high end vegetables
• Assuming 54% of farms producing high-end vegetables also …have income over $100,000
• Total farms over $100,000+
For the FL, GA, NC, SC.
35,100,000 Acres
$100K+: 18,954,000 Acres
High-end vegetables: 117,000 Acres
• Total Market – the total farmed acres in FL, GA, NC, SC.
Target Market
Potential Revenue: $3,525,000
Source:http:// www.usdf.gov/nassAssumption of $30 revenue per acre
19
Simple rules
Always ask yourself “so what?”
Do not wait to analyze until data collection is complete
Keep it simple and structured
Make the output of the analysis obvious
Consider analysis techniques beyond the standard tools
20
Five Force Analysis
Rivalry Among Competitors (S)
Strong rivalry among competitors Competitive price Slow market growth Intensive direct marketing Full consulting service package Active customer satisfaction improvement
Potential New Entrants (S)S: Strong
M: Moderate
W: Weak
Substitute Products (M)
Suppliers (M)
Moderate access to substitutes
Moderate suppliers bargaining power Sufficient engineers
Buyers (S) Strong bargaining power Easy access to other competitors Low cost to switch to other competitors Large numbers of alternatives available
Low entrance barrier High potential of new entrance
21
So what?
22
Opportunities• Growing market and purchase
power
• Relatively stable demand – Mexican consumer segment
• Demand for authentic Mexican food – non-Hispanic segment
• Trends towards healthy food
• Business opportunities with existing customers
Business Implications
Threats• Mass markets are dominated by
established brands• Niche markets are dominated
numerous small brands and private brands
Strengths• Reputation in the industry
• Flexible operation and responsive to the market
• Strong collaboration among R&D, marketing and sales teams
• Tailored products: customization
• Capability in food innovation
Weaknesses• Lack of brand equity• Late Mexican food market entry in
U.S.
• Customize products to overcome lack of brand equity
• Leverage strong R&D capabilities to enter growing market in R&D
• Leverage relationship with existing customers
SWOT analysis example
23
Simple rules
Always ask yourself “so what?”
Do not wait to analyze until data collection is complete
Keep it simple and structured
Make the output of the analysis obvious
Consider analysis techniques beyond the standard tools
24
Differentiate yourself
SWOT and Five Forces are overused and NOT typically used by “real” consulting firms
Let’s look at some examples….
25
Company Positioning of Salsas (perceptual maps)
Frito Lays
Campbell
Authentic
“Gringo”
Niche Market Mass marketHormel
Goya
Pillsbury
Griffith Laboratories
Private labels
Nestle
Source: OSBI Analysis
26
Company Positioning of Salsas (perceptual maps)
Frito Lays
Campbell
Authentic
“Gringo”
Niche Market Mass marketHormel
Goya
Pillsbury
Griffith Laboratories
Private labels
Nestle
Source: OSBI Analysis
Recommended Positioning
27
Market attractiveness example
Market
Characteristics
Mexican Salad Dressings
Existing Competition None
Potential Competition Low-moderate
Size of Market Small
Profit Potential High
Recommendation: Enter market
28
Market Share & % Gross Margin
Sales in Million Dollars Gross Margin in Million Dollars
1% Market Share
30% Gross Margin
0.8 0.24
1% Market Share
20% Gross Margin
0.8 0.16
5% Market Share
30% Gross Margin
3.9 1.2
5% Market Share
20% Gross Margin
3.9 0.8
Sensitivity analysis example: Salad Dressings Scenario Analysis
Market is small yet attractive and growing
Note: 1% is conservative, 5% is aggressive
29
Required Current WWQ&A functions Primus
Cyracle ServiceWare eGain
Adjacent word search
“Me too” tagging facility
Notification process Scheduled reports User satisfaction survey and related reports
Automated notification process for revalidation
Database Maintenance/Authorizations
Maintenance/nomination/promotion
Search within one iteration
Boolean search facility
Editor functions
Auto assignment of questions
Large SME text area
Search of Q&A technical databases
Comparison of the Tools
30
Company Cyracle Primus ServiceWare eGain
Microsoft
Dell
Apple
Compaq
Sun
HP
Clients using the Tools
In-house
31
Option 2: Primus
Option 1: Cyracle
Option 3: ServiceWare
Option 4: eGain
Reports
Library/FAQ
Database Maintenance/Authorizations
Responding
Authoring
Searching
Fully SupportsNo Support
Inquiry about the costs of implementation for Primus and ServiceWare
Comparison of the Tools (Harvey Balls!)
32
SWOT Analysis
Strengths Strong reputation in heavy equipment
market Low cost advantage (hire students) Excellent technical reputation leverage
from alliance with UIUC Good expertise in unique segments such
as casting and prototyping Strong expertise to add on to existing
software Easy access to large variety of software
Weaknesses Newcomer in simulation analysis industry,
does not have customer base Low name recognition for design service
industry Low awareness in simulation analysis
industry Few business opportunities, only one
location in Champaign Limited capacity for external service
Opportunities Opportunity to increase revenue due to
the sustainable and expanding market demand
Opportunity to tap into unique market segments
Opportunity to get alliance offers Opportunity to hire skilled students from
UIUC
Threats Strong competition from small local
companies Strong global competition Low entrance barriers Several alternatives exist
33
Summary: Competitive Positioning
Strengths outweigh weaknesses
Opportunities outweigh threats
Positioning in unique segments such as prototyping and casting can find a niche for ABC in the industry
34
Comparison of Customer’s Needs and ABC’s Position
Customer's Needs ABC's Position
S - Excellent reputation in generalS - Strong relationship with existing suppliersW - Newcomer in design and simulation industry S - Experience in heavy equipment and casting technology W - Limited knowledge in some other industries
Low price S - Cost advantage leverage from UIUC studentsW - High margin desired by ABC
Testing needs S - Experience in heavy equipment and casting technology W - Unfilled opportunity
Time saving W - Limited capacity S - Strong leadership teamW - Located in small townW - Limited human resource to offer public relationship
Familiarity and trust
Related experience
Ongoing and reliable communication
35
Comparison of Market Environment and ABC’s Position
Market EnvironmentS - Experience in heavy equipment and casting
technology S - Excellent reputation in generalS - Good market penetration ideasS - Huge capital for R&D investment
(differentiation potential)W - New comer in design and simulation
industry W - Limited capacity
Low entrance barrier
Excellent technical skills leveraged from UIUC
Software innovation and improvement
ABC's Position
S -
Market demand is still growing
Limited casting services
Increasing market demand in casting industry
Global competition
ABC can leverage its strengths and overcome its weaknesses
36
Overview: Strategy Implementation
Strategies to place ABC in a better position in market environment
and fulfill customer’s needs in the simulation industry
Differentiate your service by Offering prototyping Emphasizing stronger disciplines like casting simulation
Focus your energies by Using selective pricing Targeting local customers Aligning organizational support
37
So what…now?
38
Simple rules- summary
Always ask yourself “so what?”
Do not wait to analyze until data collection is complete
Keep it simple and structured
Make the output of the analysis obvious
Consider analysis techniques beyond the standard tools