Born ASEAN Project Module 20 Attribute Map October

“Born ASEAN” Project Module 20 Attribute Map October, 2015 Advisor, Waseda University Dr. Takeru Ohe 2021/10/26 （C) Dr. Takeru Ohe, 1

Table of Contents 1. Attribute Map 2. Market Segment, Need analysis, and Importance 3. Attribute Map innovation 2021/10/26 （C) Dr. Takeru Ohe, 2

Relationship between Business Model, Business Concept and Attribute Analysis The Business Model Canvas New Business (Product or Service): Key Partners Key Activities Business Concept: Solution Value Propositions Business Concept: Value Propositions Key Resources Date: Customer Relationships Version: Customer Segments Business Concepts: Customer Segments Attribute Map Channels Attribute Map Cost Structure 2021/10/26 Revenue Streams （C) Dr. Takeru Ohe, 3

1. ATTRIBUTE MAP TO CLARIFY THE RELATIONSHIPS BETWEEN MARKET SEGMENT AND VALUE PROPOSITION 2021/10/26 (C) Prof. Takeru Ohe 4

An attribute map describes your offering in terms of what it does to please, or displease, key customer segments. Based on “The Entrepreneurial Mindset” By Rita Mc. Grath and Ian Mac. Millan Harvard University Press, 2000 2021/10/26 (C) Prof. Takeru Ohe 5

Attribute Map • Attribute Map gives you a start on capturing how well your product or service is appealing to customer's needs at the moment. • An organized way to think through customer’s needs. • Key tool to sharpen business concept: customer segment, value proposition, and solution (resources). • Market Busters, Rita Gunther Mc. Grath & Ian C. Mac. Millan, Harvard Business School Press, 2005 2021/10/26 （C) Dr. Takeru Ohe, 6

Attribute Map to Assess Customer Attitudes • A simple mapping process gives you a start on capturing how well your product or service is appealing to customer's needs at the moment. • Prepare one analysis per segment per product. 2021/10/26 (C) Prof. Takeru Ohe 7

Attribute Map to Assess Customer Attitudes • The first column of the attribute map lists the three basic attitudes that customers may hold about a feature of any product or service: negative, positive or neutral. • Along the top of the figure, we indicate the level of energy generated by the customer’s reaction to the feature, compared with competitors’ offerings. 2021/10/26 （C) Dr. Takeru Ohe, 8

Example: What do medical centers offer you? We call these attributes. Printing of examination result Service Bed Children playroom Consultation display board Barbershop Big TV at waiting room Physician with specialist certificate Restaurant ATM machine 2021/10/26 Medical Test Equipments and facilities Appointment Call center Convenience store （C) Dr. Takeru Ohe, Payment Machine Electric medical record 9

Example: Metropolitan medical center in Tokyo. More of what you want, less of what you don’t care about. (elder patients with lifestyle diseases: multiple medial problems). Neutral attributes Negative Attributes Display for waiting board Barbershop Big TV at waiting room Children playroom Service Bed Positive attributes More than one hour waiting for 5 minutes of consultation Long waiting list for Appointment with famous doctors Basic test results within 30 minutes Convenience store Physician with specialist certificate ATM machine Payment Machine Printing of examination result Easy appointment Call-center Restaurant 2021/10/26 1 （C) Dr. Takeru Ohe,

Attribute Map Definition 2021/10/26 （C) Dr. Takeru Ohe, 11

Attribute Map to Assess Customer Attitudes • Prepare one map per segment per product. • A simple mapping process gives you a start on capturing how well your product or service is appealing to customer's needs at the moment. • First column: – three basic attitudes that customers may hold about a feature of any product or service: negative, positive or neutral. • Top line: – the level of energy generated by the customer’s reaction to the feature, compared with competitors’ offerings. 2021/10/26 （C) Dr. Takeru Ohe, 12

Attribute Map • Attribute map simplifies the complexity of your proposition to your customers and your position with respect to competitors. • Attribute map describes your offering in terms of what it does to please, or displease, key customer segments. Along the rows are the reactions of a target customer segment to the features in your product or service. 2021/10/26 （C) Takeru Ohe 13

Positive, Negative, Neutral Rows • The top row shows those features and attributes that customers regard positively; these attributes might prompt them to purchase and stay loyal to your products and services. • The feature in the second row are the negative, these are things that customers dislike and would prefer to do without. • The feature in the third row are attributes about which customers are neutral. They don’t care or don’s know, about these features. 2021/10/26 （C) Takeru Ohe 14

Basic, Discriminating, Energizing Columns • The labels of the columns try to capture how your offering stacks up relative to other ways customers might meet their needs. • If customers judge that a feature is basic, it means that they take it for granted that all compositing products have that feature. • The middle column lists discriminating features- those attributes that cause customers to judge one offering to be superiors or inferior to another. • The third column shows energizing features. These are attributes that, as far as customers are concerned, dominate the decision to buy and use the product or to contract for the service. They typically evoke a powerful emotional response that can overwhelm everything else you do. 2021/10/26 （C) Takeru Ohe 15

Example: Gas Station (Customer Group: elder weekend drivers) POS Basic Discriminating Energizing Non-negotiable Differentiator Exciter NEG Friendly Smile Credit card Refill water and check tire pressure Wiper and window cleaning Car Services/Wash Tolerable NEU small parking space Slow service 2021/10/26 Background Music Dis-satisfier Hard sell paid service Broken Air Pump/Water refill Parallel So What • Vending machine Free ice tea ATM Machine Easy directions Free tissues （C) Dr. Takeru Ohe, Set up navigator for your trip destination Enranger (Unclean Toilet) (Noisy) (Long waiting time) If you have these attributes, do not start this business. 16

Example: Tokyo Metropolitan Medical Centre (Elder outpatient with multiple medial problems) POS Basic Discriminating Energizing Nonnegotiable Differentiator Exciter NEG Specialist, certificate physicians are staffed. On time & fast service Friendly/alert staff Advanced medical equipment Convenience store ATM machine Earthquake-resistant construction Payment machine Hard copy of basic test result Easy appointment through call center Mobil phone is allowed in the waiting rooms Waiting list display Tolerable Dis-satisfier More than one hour waiting for 5 minutes of consultation Enranger Long wiring list for appointment with famous doctors So what Parallel Barbershop Big TV screen at waiting room Children playroom NEU 2021/10/26 Restaurant Long personal medical data available (electric carte) Basic test results within 30 minutes needed for consultation Service bed （C) Dr. Takeru Ohe, 17

Example: Vacuum Cleaning Robot for Elder couples POSI Basic Discriminating Energizing Non-negotiable Differentiator Exciter Remove dirt, dust, hair and debris very efficiently Thin enough to clean under bed, and sofa Tolerable NEGA Dusty feeling even after cleaning Need to remove wires and stockings, etc. before cleaning Corners are difficult to clean up Dis-satisfier So what NEUT 2021/10/26 Clean automatically for 90 minutes Self docking and recharging 3 years battery life (Stack at the uneven floor) Need to clean filter and empty once a week Difficult to watch TV during cleaning Weekly schedule for cleaning Signal for full bin indicator Enrager These Theattributes should be eliminated before launching this product Parallel Booklet on how to clean homes （C) Dr. Takeru Ohe, 18

Value Propositions (Business Model Canvas) 2021/10/26 （C) Dr. Takeru Ohe, Exciter (Attribute Map) 19

Value Propositions （Exciters) Value Propositions Comments 1． Newness Some value propositions satisfy an entirely new set of needs that customers previously did not perceive because there was no similar offering 2． Performance Improving product or service performance has traditionally been a common way to create value. 3． Customization Tailoring products and services to the specific needs of individual customers or customer segments creates value in recent years, the concepts of mass customization and customer co-creation have gained importance. 4． Design is an important but difficult element to measure. 2021/10/26 （C) Takeru Ohe 20

Value Propositions（Exciters) Value Propositions Comments 5 Brand/status Customers may find value in the simple act of using and displaying a specific brand. Wearing a Rolex or Channel signifies wealth. 6 Price Offering similar value at a lower price is a common way to satisfy the needs of price-sensitive customer segments. 7 Accessibility Making products and services available to customers who previously lacked access to them is another way to create value. 8 Convenience/us ability Making things more convenient or easier to use can create substantial value. 2021/10/26 （C) Takeru Ohe 21

Value Propositions（Exciters) Value Propositions Comments 9 Getting the job done Value can be created simply by helping a customer get certain jobs done. 10 Cost reduction Helping customers reduce costs is an important way to create value. 11 Risk reduction Customers value reducing the risks they incur when purchasing products or services. For a used car buyer a one-year service guarantee reduces the risk of post purchasing breakdowns and repairs. 2021/10/26 （C) Takeru Ohe 22

Transform What You Sell in a Meaningful Way • Premise: Every offering you sell has some things customers like, some things they don’t and some things they simply don’t care about – The strategy: change your products and services to create meaningful differentiation from a customers’ point of view – Capitalize on the fact that different segments will make different tradeoffs 2021/10/26 （C) Dr. Takeru Ohe, 23

2. PREPARATION FOR ATTRIBUTE MAP 2021/10/26 （Ｃ） ㈱総合コンサルテイングオア シス 24

Three steps to Attribute Map • Step 1 – Comparison of main market segments • Step 2 – Need analysis and importance • Step 3 – Attributes for each main segment 2021/10/26 （C) Dr. Takeru Ohe, 25

Preparation for Attribute Analysis Step 1. Comparison of Main Customer Segments ① List up main market segment (main customer) ② Selling price at retail level (or out of factory price) ③ Estimate market segment size (rough estimate) ④ Estimate market growth rate （rough estimate) ⑤ List up competitors（the toughest competitor or potential competitor） 2021/10/26 （Ｃ） ㈱総合コンサルテイングオア シス 26

Comparison of Main Customer Segments Example： Vacuum Cleaning Robot ① Market Segments ② Purchase Price ③ Market Size ④ Growth Rate ⑤Competito rs １ Two pay check home and job bachelor home (3 bedroom house) 100 K Yen 100 KUnit high Busy wife, Home cleaning service ２ Full time mother with babies 100 K Yen 50 KUnit low Home cleaning service ３ Elderly retirement home 100 K Yen 18 KUnit Very high Home cleaning service ４ Office with meeting rooms 50 K Yen Office staff Cleaning service firm ５ Day care center or library 50 K Yen Day care staff Cleaning service The number of households 48. 64 Million, Comfortable households 4. 1%=1. 90 Millio, Very comfortable household 0. 7％＝ 0. 34 Million household Market size（Nihon Keizai News）2011: 180 Kunit (Roomba）、2012: 250 KUnit (Roomba) 2013: 330 KUnit （COCOROBO 100 KUnit 30%share） 27

Preparation for Attribute Analysis 2. Needs and Importance 1. List up as many as possible the customer needs or problems to be expected in service and the goods 2. The importance of the needs for the key customer segment • 2021/10/26 Fill the importance of major customer segment for each need （5=very important 4=important 3=may be either 2=not necessary 1=not necessary at all） （Ｃ） ㈱総合コンサルテイングオア シス 28

Needs Analysis and Importance 5 Very Important 4 Important 3 Either 2 not necessary 1 Not necessary at all Market Segments 1 Ａ 2 Customer needs Clean systematically several rooms 1 2 3 4 5 Two Pay check household Household with Baby Retired Household Small Offices Day care Average 5 5 4 4. 40 Ｂ Automatic recharge 5 5 4 4. 60 3 Ｃ Clean on schedule 5 5 4 4. 40 4 Ｄ Quiet cleaning 3 5 5 3 3 3. 80 5 Ｅ Easy cleaning 4 4 5 4 4 4. 20 6 Ｆ Clean under furniture and bed 4 4 5 5 4 4. 40 7 Ｇ Won’t fall down stairs 4 4 4 3 3 3. 60 8 Ｈ Wash the dust box by water 5 5 5 4 4 4. 60 2021/10/26 （C) Dr. Takeru Ohe, 29

Needs Analysis and Importance 5 Very Important 4 Important 3 Either 2 not necessary 1 Not necessary at all Market Segments Customer needs 1 2 3 4 5 Two Pay check household Household with Baby Retired Household Small Offices Day care Average 9 Ｉ Short recharging time 3 3 3. 00 10 Ｊ Long run time 3 3 3 5 5 3. 80 11 Ｋ Shiny hardwood floor 3 3 3 4 4 3. 40 12 Ｌ Clean up 4 5 5 4 4 4. 40 13 Ｍ Understand your voice 1 4 5 1 1 2. 40 14 Ｎ Communicate in Japanese, English, Chinese, and Kansai accent 1 3 3 1 1 1. 80 15 O Answer your order 1 4 5 1 1 2. 40 16 P Send picture to smartphone 4 4 3 1 1 2. 60 2021/10/26 （C) Dr. Takeru Ohe, 30

Needs Analysis and Importance 5 Very Important 4 Important 3 Either 2 not necessary 1 Not necessary at all Market Segments Customer needs 1 2 3 4 5 Two Pay check household Household with Baby Retired Household Small Offices Day care Average 17 Q Clean thick carpet 4 4 4. 00 18 R Discharge plasma cluster Ion 3 5 5 2 1 3. 20 19 S No paper 4 4 4. 00 20 T Need to clean once a week 5 5 5 4 4 4. 60 21 U Do not damage furniture 4 4 5 3 3 3. 80 22 V High efficiency vacuum 3 4 3 5 5 4. 00 3. 55 4. 18 3. 36 3. 23 3. 70 Average 2021/10/26 （C) Dr. Takeru Ohe, 31

2 -１ Attribute Map Roomba for Retired Households Basic Discriminator Energizers Nonnegotiable Differentiating Exciting Positive ・Automatic recharge ・No paper pack ・Clean up under beds and sofas ・long 90 minutes continuous cleaning Tolerable Neutral ・expensive around $500 ・Very difficult to clean up brushes without your hand dirty ・Difficult to clean up the corners of room ・Difficult to make floor shiny So What? ・Can determine the cleaning area Dissatisfying ・Clean rooms on specified time every day Enraging ・It may damage expensive furniture and carpet ・Very noisy Parallel Differentiator Negative 2021/10/26 （C) Takeru Ohe 32

2 -2 Attribute Map of COCOROBO from Sharp for Retired Households Basic Discriminator Energizers Nonnegotiable Differentiating Exciting Positive ・Automatic recharging ・Clean automatically on determined time ・No need for paper pack ・Clean under beds ・ Tolerable Dissatisfying Neutral ・$500 ・Less than 60 minutes cleaning time ・Difficult to clean up the very corner ・Difficult to make floor shiny So what? ・Response to your order ・Avoid collision with furniture enraging ・Hands become dirty when you clean up brushes Parallel differentiator Negative ・Send picture of rooms to smart phone ・Understand Chinese, English, and Japanese 2021/10/26 ・Plasma cluster ion ・Quiet cleaning noise ・Booklet how to clean rooms （C) Takeru Ohe 33

2 -3 Attribute Map of Traditional Electric Cleaner for Retired Households Name of Products：Traditional cleaner Basic Positive Differentiating Nonnegotiable ・Easy installation of paper pack • Strong suction ・Easy to trash out used pack ・Easy storage Negative Tolerable ・It is tiring to use more than five minutes (4. 2 Kg) ・long electric code ・Need paper packs Dissatisfying Neutral 2021/10/26 Exciting • Simple operation enraging ・Difficult to clean up under the beds or sofas So What? ・ Main Market Segment：Retired household Discriminator Energizers Parallel differentiator • Three free paper packs （C) Takeru Ohe 34

3. ATTRIBUTE MAP INNOVATION 2021/10/26 (C) Prof. Takeru Ohe 35

Principles for Redesigning Your Offering Basic Discriminator Positive Perform at competitive par, watch costs Negative Perform no worse Perform a little than competition better than competitors Eliminate yours, capitalize on your competitors’ Neutral Only keep if Add features that cheap, or needed would make the for other offering complete segments No such beast 2021/10/26 Pick a few attributes customers will notice and care about to focus on Energizers Execute with vigor and prepare for competitive reaction Source: Mac. Millan & Mc. Grath, 'Discover Your Products' Hidden (C) Prof. Takeru Ohe. Potential' HBR, 1997 36

Corner of the triangle enters the corner of the room. The dust station of TORNEO ROBO will receive the waste from cleaner side and store. The dust disposal requires emptying only once a month. In the cleaner side dust box is always empty and maintain the suction force. i. Robot Braava™Floor Mopping Robot Maintain gleaming hard floors every day, the easy way. 2021/10/26 （C) Dr. Takeru Ohe, 37

Re-segmenting by Innovating the Attribute Map 1. 2. 3. 4. 5. 6. Dramatically Improve Positive Features Eliminate Tolerable or Emerging Dissatisfier Infuse the Offering with Empathy Add a Compelling Parallel Offering Eliminate Complexity Capture the Full Value You Deliver 2021/10/26 （C) Dr. Takeru Ohe, 38

Application of Attribute Map • Design new product and service – Analyze customer needs and develop features which will satisfy customer needs. • Develop competitive strategy – Do attribute map of competitor's products and services, and find weak part of the competitor’s products. • Development Business Concept – Find the exciting value proposition for a particular customer segment. 2021/10/26 （C) Takeru Ohe 39

EXERCISE: ATTRIBUTE INNOVATION FOR THE ASSIGNED FIRM 2021/10/26 （C) Dr. Takeru Ohe, 40

Exercise 20 -1 Attribute Map for the assigned firm • Develop an attribute map for a main product of the assigned firm (for the main customer) ① Customer Segments ② Customer’s needs • Selecting Customer Segment ③ Develop an Attribute Map 2021/10/26 （C) Dr. Takeru Ohe, 41

Exercise 20 -1 Current Attribute Map Attribute map for the assigned firm. Develop the current attribute map for the assigned firm (for the current main customer) (using Idea Momming technique or brain storming if it is necessary) Positive Negative Neutral 2021/10/26 Basic Discriminating Energizing Nonnegotiable Differentiator Exciter Tolerable Dissatisfier Enranger So-what Parallel No such beast （C) Dr. Takeru Ohe, 42

Exercise 20 -2 Attribute Map for the competitor’s product in Myanmar • Develop an attribute map of the main competitor’s current product for Myanmar market 2021/10/26 （C) Dr. Takeru Ohe, 43

Exercise 20 -2 Competitor Attribute Map Attribute map for the assigned firm Develop the current attribute map for a main competitor Positive Negative Neutral Basic Discriminating Energizing Nonnegotiable Differentiator Exciter Tolerable Dissatisfier Enranger So-what Parallel No such beast 44

Exercise 20 -3 New Attribute Map for the assigned firm • Develop an attribute map of a new main product for (new? ) customer target for the assigned firm 2021/10/26 （C) Dr. Takeru Ohe, 45

Exercise 20 -3 New Attribute Map for the assigned firm. Develop the future attribute map (new customer target) for the assigned firm Positive Negative Neutral Basic Discriminating Energizing Nonnegotiable Differentiator Exciter Tolerable Dissatisfier Enranger So-what Parallel No such beast 46