Target Market Selection for Advanced Marine Technology
High Tech Strategies was hired to identify the market segment within the marine industry with the greatest potential for value delivery. It was discovered that technologies or products already in the marketplace could guide AMT’s choices regarding target market selection.
The Challenge
AMT management was presented with the important task of determining the best way to exploit the potential for their AR technology. Management felt there were a number of short and long-term issues to investigate prior to committing additional resources to further development. Key strategic issues included determining both near- and long-term potential applications. And in what order should AMT attempt to penetrate each market? It was also important to understand the adoption characteristics of each market.
This investigation had to identify the market segment with the most near-term interest. However, each segment must be evaluated in terms of their product adoption cycles. AMT wanted to avoid market segments that required significant continuing investment until substantial returns were generated.
Target Market Selection
Effective target market selection must include more than just speed of adoption and overall market potential. Another critical dimension is the relationship certain market segments have with one another. AMT wanted to select markets that produce revenue in the shortest amount of time, and are also linked in a way that allows the company to build upon the successes achieved in each previous segments. Determining the best revenue-producing segments as well as the linkages that exist between segments are both important requirements.
- Evaluate the business potential of a wide range of both established and emerging applications
- Build awareness and attract the interest of potential customers in the early market
- Identify the business models that are available, and under which conditions they should be considered
- Create competitive advantage to protect the key attributes of these new applications from aggressive competition
The Solution
Warren Schirtzinger guided AMT through the process of target market selection, which identifies the user segment with the highest potential for delivered value. This included the use of examples or analogies that provided a “model” for management decision making.
Warren also conducted qualitative research in both one-on-one and focus group formats in all of the different sub-segments of the marine industry. This included demonstrating augmented reality binoculars to leaders in military, commercial, cargo/container, recreational, government and academic market segments.
The Results
Complimentary systems provide exceptional economic return
AMT was able to address the present and continuing need for better aids to marine navigation. Based on strategic guidance from Warren Schirtzinger, AMT selected commercial fishing fleets as their initial target market, because of the synergistic match with existing sonar systems.
Handheld augmented reality in standard-size binoculars was the first of its kind in the marine industry. And AMT’s “Enhanced Navigation Glasses” have made a significant contribution to ensuring the safety of life at sea.
High Tech Strategies’ Contribution
- Target market characterization. We leveraged our ability to assess and prioritize various markets, and describe the characteristics of economic buyers within top growth opportunities.
- Segmentation – We successfully defined the group of customers who share similar needs and buying behaviors, and are more likely than others to adopt our client’s solution.
- Reachability of channels – Our ability to identify and prepare the best distribution channels to drive awareness and sell the complete solution was a critical success factor.
- Buying process – The client trusted our knowledge of the B2B buying process. This gave the company the confidence to embrace the six distinct customer activities required to successfully complete a sale.
The Impact
The focus of this project was guided by two fundamental elements of value delivery; cost-benefit analysis and risk perception. From this perspective, AMT executives were able to identify, attract and work with customers in the segments with the highest delivered value.
Extraordinary Value Delivery
The value of augmented reality became so compelling, that AMT was acquired by one of its largest customers in the commercial fishing industry because the competitive advantage provided was massive.
- Product line extension. In addition to electronic charting systems, AMT was able to sell add-on products to both new and established customers.
- Category leadership. The combination of augmented reality products and a partnership with Raytheon, gave AMT a leading position in the navigation segment of the marine industry.
- Stronger infrastructure. The client is increasing its marketing and sales staff, creating dedicated product and category managers, and adding a market intelligence group.
