Mark Delman - Top 10 Marketing Tips for Hardware Startups

Mark Delman, Founder of Brite-Tap, speaks on marketing for Hardware Startups from his experience holding top positions in marketing for large companies as well as successfully taking his first product to market.

Transcript

1. Top 10 Marketing Ideas To Make Your Start Up A Success Mark Delman General Manager
2. Objective Today •  Provide you with tools & ideas to make your start up a success – Determine that your product is ready for launch. – Position your product vs. competition. – Price your product – Prepare for expansion into channels.
3. #1 Test To Success – Beta Testing •  Objective – Determine strength of your product and identify areas for improvement. •  Find potential users –  Email your current users. If you don’t have any, consider: •  Industry groups •  Forums •  Blogger outreach •  Sign up agreement •  Pre-production sample to customer •  Allow them to use for 1 month •  Get them to fill out a 10-15 question survey •  Make sure they know its anonymous •  Provide an incentive to complete it
4. Test Request Call To Action •  Product Testers Wanted! We're developing a new product for chicken owners and are looking for people to test the product and provide their honest feedback. We have a limited number of pre- production samples for the test, so the program is only available to a select number of individuals. This is an exclusive chance to be the first to see this new product and your opinions and feedback will play an important role in shaping the product that we bring to market. Details •  Test Product Current chick feeders are difficult to fill and are easily contaminated when baby chicks poop into their feed pans. They can also only be used for a brief period of time when the chicks are in the brooder and can't be re- purposed for adult chickens. The product we are interested in testing solves some of these issues. Qualifications We're looking for chicken owners who meet the following criteria: •  Have raised baby chicks in the past. •  Currently have 1-5 day old baby chicks in their flock •  Have a digital camera or smart phone that you can use to send us a picture of your chicks using the product during the first week of testing. •  Are willing to agree that you will not disclose information about the product to anyone else. •  What's Involved? •  You will be given a test product to use for several weeks. •  At the end of the test period, you will complete a 10 question online survey about your experiences using the product. Your responses will be anonymous so you can be candid about your experiences. The survey will only take 3 or 4 minutes to complete. •  We require that you send us a photo of your chicks using the product. •  You will also be asked to return the test product to us using a postage paid shipping label we provide to you. •  Thank You Gift •  If you are selected and complete all the requirements of the test, we would like to thank you for your participation by giving you a $25 Visa gift card you can use to purchase anything you like. •  If we manufacture and sell the product, we will also give you a production model at no charge. •  Register To Participate Please register if you would like to participate in this product test: Registration Form
5. Sign Up Agreement •  Can be created in Google Docs or Survey Monkey •  Qualifies participant. •  Gains agreement to confidentiality
6. Test Agreement •  I have read and agree to the following: I agree that at all times I will hold in strict confidence and not disclose information about the design, construction, features, benefits or efficacy of the product that I will be testing. I will keep this information confidential for two years, or until the product is publically disclosed by ChickenWaterer.com, LLC, whichever comes first. I understand that the product I’m testing is a test product and is not at the level of performance of a commercially available product offering. The product may not operate correctly and may be substantially modified prior to the first commercial release. I also understand that the product and documentation are given to me “As Is” without warranty of any kind.
7. Beta Test Questions – Product Specific •  10-15 questions to determine satisfaction with product. Focus on key benefits. •  Most question specific to your product: •  Example: https://www.surveymonkey.com/ s/CTPWJ2F
8. #2 Determine Net Promoter & Uniqueness (Every Product) Net  Promoter   Score   Uniqueness   Score  
9. Why It Matters
10. #3 Do A Product Positioning Statement To Focus the Message •  To small flock owners (24 Chicken or less), the BriteTap waterer is the brand of consumer-grade chicken waterer that makes watering chickens easy because it completely shields the water from dirt and dropping and because it installs easily onto a water cooler; no tools or skills are required. •  To [target customer], [product name] is the brand of [competitive set] that [benefit statement] because [support] •  Benefits that are not core to the product: –  Can easily be transported. –  Can be switched to larger tank if flock grows in size. –  Doesn’t leach zinc into water like galvanized waterers. –  Doesn’t allow chickens to perch on top. –  Etc. •  Tagline: Clean Water Made Simple
11. #4 Leverage An Installed Base Leverage Installed Base Benefits •  Lowers manufacturing investment. •  Lowers unit cost. •  Opens market to a larger base of customers •  Lowers perceived cost of the product to consumer •  Lowers shipping cost via scrappy purchases. Commodity   Value  Add  
12. #5 Evaluate Competition As A Starting Point When Setting Price •  Find products in your competitive set •  Note prices at multiple channels •  Honestly evaluate your products pros and cons.
13. #6 Price with The Future In Mind •  Typical Retailer Margin 40-50% •  Typical Distributor Margin 30% •  “Your mileage may vary” – know the margin requirements for your product category
14. #7 Test Product & Price In the Real World The real world is harsh •  Manufacture a small quantity. •  Set up a web site. •  Have plans in place to promote. •  See if someone will buy. •  This is a test of both your product and your price.
15. #8 Build It & They Will Come. NOT! Customer Acquisition •  Varies by product, industry and media. •  Range from $5 to $300 per customer –  Barnes & Noble $10 –  TD Waterhouse - $175 –  Sprint- $300 •  SWAG - $20-$30 probably typical consumer product. Rule of Thumb •  Low Cost – Natural Search, PR, Social Media, Blogger Outreach, Word- of-Mouth. •  Medium Cost – Keyword Ads, email, Print Ads, Direct Mail. •  High Cost – TV Ads, Product Placements. •  Generic Name & URL May Be Cheapest marketing vehicle…Stamps.com, ChickenWaterer.com, etc.
16. #9 Seek Awards To Drive PR •  Search the Internet for design awards and enter your product. – Another proof source that your product is great. – Gives you a story that can be used to get PR coverage.
17. #10 Approach Channels Systematically •  Retailers won’t listen to you if you are an unproven business. •  Generate great consumer reviews before approaching retailers. –  Reviews give you data to support why the retailer will be successful –  And provide you with negotiating power. •  Target smaller, specialty retailers that are looking for unique products to help them compete against big box stores.
18. Resources •  Website – Volusion, Big Commerce, Shopify. •  Credit Card Processing – PayPal Merchant Services •  Email – MailChimp •  Research Surveys – Survey Monkey •  Fulfillment - Shipwire •  Cheap Design Projects – Fiverr •  A/B Testing – Optimizely •  Incentives & Retention – Granify •  Reviews – Yotpo •  Accounting – Quick Books Online
19. Final Notes and Q&A •  Copy of presentation – Mark@ChickenWaterer.com •  Free Cluck-ulator Smart Phone App •  LinkedIn – I’m Interested in meeting professionals with experience developing products based on microcontrollers such as Arduino.