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Solving Today’s Sponsorship Problems
OVERVIEW > Our Vision


To solve the problems between sponsors and
nonprofits using online technology, while
enhancing the sponsorship relationship among
all stakeholders.
OVERVIEW > Our Strategy / Product

                                                           Assumptions on
           Product                                         Business Model
                                 ?                         Canvas (B.M.C.)


   Strategy
                                 ?

             To solve the problems between sponsors and
Vision    nonprofits using online technology, while enhancing
         the sponsorship relationship among all stakeholders.
OVERVIEW > 1st Problem
            2 Sided Market : Who’s First?



 Sponsors First
                            Nonprofits First
OVERVIEW > 1st Solution

              Target one side!


We chose Nonprofits!
• Easier accessible
                                 Yeah!!!
• They need sponsorship
OVERVIEW > Our Classic B.M. Canvas
 Our assumptions to help nonprofits with sponsorship
OVERVIEW > Our Classic B.M. Canvas



              We believed
              - Brand visibility &
              - Logo management
              were big issues with nonprofits.
OVERVIEW > OAP Focus
                       The Plan


    Determine market                   Understand riskiest
1   size/opportunity                   part of BMC         2
                        Opportunity
                         Analysis

     Test Hypotheses                  Create hypotheses
4                                     based on risk       3
MARKET ANALYSIS >
MRKT ANALYSIS > Nonprofit Mrkt




      1.6M                    $1.4Tr in
   Nonprofits                Expenditure
    in the US                  in 2009



    A lot of nonprofits & they spend a lot
MRKT ANALYSIS > Sponsorship Mrkt

       Companies spend a lot on sponsorship!




Global Sponsorship   US Sponsorship    Corporate Cause
Market (2011) -      Market (2011) -   Spending (2011) -
$48B                 $18B              $1.6B
MRKT ANALYSIS > Assumptions



 What if….   • Nonprofits pay $5 to
               $25 per month for a
               solution
             • 30% of nonprofits have
               website (480,000)
             • 5% of those with
               websites purchase a
               solution (24,000)
MRKT ANALYSIS > Summary

    Revenue assumptions from nonprofits.

                    Total US Market Size:
                    $96M to $480M




   $0                                                            $$$$




    US Market Opportunity:             US Corp Cause Spending:
    $1.4M to $7.2M                     $1.8B
MRKT ANALYSIS > Sponsor Corps

     Any revenue from sponsor companies?




     Coming soon to a PPT slide near you!
           After we complete nonprofit analysis
UNDERSTAND RISK >
UNDERSTAND RISK > ON B.M. Canvas
 Value Prop is riskiest. Nothing else matters...




         …until Value Prop is validated
UNDERSTAND RISK > ON B.M. Canvas


               Next Step:
               Create assumptions to test if
               nonprofits want a solution for:
               - Brand visibility &
               - Logo management
HYPOTHESIS ASSUMPTIONS >
HYPOTHESIS > Create Assumptions
 UVP       to create
                         Assumptions
                       (1) They are looking for sponsorship
                       (2) they currently have sponsors (3)
                       They will want Bar if it is free (4)
                       They can install the bar (themselves
                       or through developer) (5) They can
                       add Bar to their Sponsorship Levels
                       (6) They will add logos to the Bar (7)
                       They will sell the bar to Sponsors (8)
                       They are looking for creative ways
                       (9) They will consider the pop-up as
                       a form of advertising (10) They
                       don't mind brands social advertising
                       about other events on their
                       site, once they get more
                       sponsorship in return
HYPOTHESIS > Test Plan
        Assumptions                      to create
                                                     Interview Questions
(1) They are looking for sponsorship
(2) they currently have sponsors (3)
They will want Bar if it is free (4)
They can install the bar (themselves
or through developer) (5) They can
add Bar to their Sponsorship Levels
(6) They will add logos to the Bar (7)
They will sell the bar to Sponsors (8)
They are looking for creative ways                   Landing Page Test
(9) They will consider the pop-up as     to create
a form of advertising (10) They
don't mind brands social advertising
about other events on their
site, once they get more
sponsorship in return
TEST HYPOTHESIS ASSUMPTIONS >
TEST HYPOTHESIS > Location




             27 nonprofits
       15 face-to-face Interviews
  Customer Observation on landing page
TEST HYPOTHESIS > Learning                               (2 of 8)




1
    The solution (and new value proposition) should address
    helping nonprofits with increasing & managing resources to
    get more sponsorship. Only 1 out 11 nonprofits said they
    would be interested in proposed solution immediately



2   The solution should take into consideration the ability to help
    nonprofits who have not started looking for sponsorship.
TEST HYPOTHESIS > Learning                               (4 of 8)




3   Nonprofits tend to look for sponsors in their value-chain and
    geographical location (impact zone).




4   Sponsors visibility was the highest importance to
    nonprofits, but it was never listed as problem. Therefore, the
    conclusion is - nonprofits believe they are giving sponsor
    companies the best visibility they can get.
TEST HYPOTHESIS > Learning                               (8 of 8)




5
    The solution must not present the sponsor’s brand like an
    advertisement, and our value proposition should not include
    the word “advertising” in it.

6   The solution should should be compatible with wordpress
    plugin and drupal.


7   Logo management is not necessary.


8
    The landing page does not clearly explain the solution and
    the benefit. It also does not address the nonprofits biggest
    challenges - no time & resources.
WHAT WE LEARNED >
LEARNING > Dig Deeper


                - Our UVP Failed 
LEARNING > Dig Deeper


                - Our UVP Failed 

                - But we have not
                  tested it with Sponsor
                  Companies 
LEARNING > Dig Deeper


                - Our UVP Failed 

                - But we have not
                  tested it with Sponsor
                  Companies 

                - Were our interviews
                  done right? 
NEXT STEPS >
NEXT STEPS > Use Lean B.M. Canvas
 Separate UVP into Problem & Solution Hypotheses




      To test whether solution or problem failed.
NEXT STEPS > Test New Hypothesis


               Test new UVP (and old UVP)
               through Solution / Problem
               Hypothesis
NEXT STEPS > Interview Process
    Use Ash Maurya’s Interview Process
STILL Solving Today’s Sponsorship Problems

         And continuing to OEP!

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Sponsor Bar V-Lab presentation

  • 2. OVERVIEW > Our Vision To solve the problems between sponsors and nonprofits using online technology, while enhancing the sponsorship relationship among all stakeholders.
  • 3. OVERVIEW > Our Strategy / Product Assumptions on Product Business Model ? Canvas (B.M.C.) Strategy ? To solve the problems between sponsors and Vision nonprofits using online technology, while enhancing the sponsorship relationship among all stakeholders.
  • 4. OVERVIEW > 1st Problem 2 Sided Market : Who’s First? Sponsors First Nonprofits First
  • 5. OVERVIEW > 1st Solution Target one side! We chose Nonprofits! • Easier accessible Yeah!!! • They need sponsorship
  • 6. OVERVIEW > Our Classic B.M. Canvas Our assumptions to help nonprofits with sponsorship
  • 7. OVERVIEW > Our Classic B.M. Canvas We believed - Brand visibility & - Logo management were big issues with nonprofits.
  • 8. OVERVIEW > OAP Focus The Plan Determine market Understand riskiest 1 size/opportunity part of BMC 2 Opportunity Analysis Test Hypotheses Create hypotheses 4 based on risk 3
  • 10. MRKT ANALYSIS > Nonprofit Mrkt 1.6M $1.4Tr in Nonprofits Expenditure in the US in 2009 A lot of nonprofits & they spend a lot
  • 11. MRKT ANALYSIS > Sponsorship Mrkt Companies spend a lot on sponsorship! Global Sponsorship US Sponsorship Corporate Cause Market (2011) - Market (2011) - Spending (2011) - $48B $18B $1.6B
  • 12. MRKT ANALYSIS > Assumptions What if…. • Nonprofits pay $5 to $25 per month for a solution • 30% of nonprofits have website (480,000) • 5% of those with websites purchase a solution (24,000)
  • 13. MRKT ANALYSIS > Summary Revenue assumptions from nonprofits. Total US Market Size: $96M to $480M $0 $$$$ US Market Opportunity: US Corp Cause Spending: $1.4M to $7.2M $1.8B
  • 14. MRKT ANALYSIS > Sponsor Corps Any revenue from sponsor companies? Coming soon to a PPT slide near you! After we complete nonprofit analysis
  • 16. UNDERSTAND RISK > ON B.M. Canvas Value Prop is riskiest. Nothing else matters... …until Value Prop is validated
  • 17. UNDERSTAND RISK > ON B.M. Canvas Next Step: Create assumptions to test if nonprofits want a solution for: - Brand visibility & - Logo management
  • 19. HYPOTHESIS > Create Assumptions UVP to create Assumptions (1) They are looking for sponsorship (2) they currently have sponsors (3) They will want Bar if it is free (4) They can install the bar (themselves or through developer) (5) They can add Bar to their Sponsorship Levels (6) They will add logos to the Bar (7) They will sell the bar to Sponsors (8) They are looking for creative ways (9) They will consider the pop-up as a form of advertising (10) They don't mind brands social advertising about other events on their site, once they get more sponsorship in return
  • 20. HYPOTHESIS > Test Plan Assumptions to create Interview Questions (1) They are looking for sponsorship (2) they currently have sponsors (3) They will want Bar if it is free (4) They can install the bar (themselves or through developer) (5) They can add Bar to their Sponsorship Levels (6) They will add logos to the Bar (7) They will sell the bar to Sponsors (8) They are looking for creative ways Landing Page Test (9) They will consider the pop-up as to create a form of advertising (10) They don't mind brands social advertising about other events on their site, once they get more sponsorship in return
  • 22. TEST HYPOTHESIS > Location 27 nonprofits 15 face-to-face Interviews Customer Observation on landing page
  • 23. TEST HYPOTHESIS > Learning (2 of 8) 1 The solution (and new value proposition) should address helping nonprofits with increasing & managing resources to get more sponsorship. Only 1 out 11 nonprofits said they would be interested in proposed solution immediately 2 The solution should take into consideration the ability to help nonprofits who have not started looking for sponsorship.
  • 24. TEST HYPOTHESIS > Learning (4 of 8) 3 Nonprofits tend to look for sponsors in their value-chain and geographical location (impact zone). 4 Sponsors visibility was the highest importance to nonprofits, but it was never listed as problem. Therefore, the conclusion is - nonprofits believe they are giving sponsor companies the best visibility they can get.
  • 25. TEST HYPOTHESIS > Learning (8 of 8) 5 The solution must not present the sponsor’s brand like an advertisement, and our value proposition should not include the word “advertising” in it. 6 The solution should should be compatible with wordpress plugin and drupal. 7 Logo management is not necessary. 8 The landing page does not clearly explain the solution and the benefit. It also does not address the nonprofits biggest challenges - no time & resources.
  • 27. LEARNING > Dig Deeper - Our UVP Failed 
  • 28. LEARNING > Dig Deeper - Our UVP Failed  - But we have not tested it with Sponsor Companies 
  • 29. LEARNING > Dig Deeper - Our UVP Failed  - But we have not tested it with Sponsor Companies  - Were our interviews done right? 
  • 31. NEXT STEPS > Use Lean B.M. Canvas Separate UVP into Problem & Solution Hypotheses To test whether solution or problem failed.
  • 32. NEXT STEPS > Test New Hypothesis Test new UVP (and old UVP) through Solution / Problem Hypothesis
  • 33. NEXT STEPS > Interview Process Use Ash Maurya’s Interview Process
  • 34. STILL Solving Today’s Sponsorship Problems And continuing to OEP!

Notas del editor

  1. IEG Predicts corporate cause sponsorship will 3.1% to $1.73B (1.68B on 2011) 2011 - sponsorship - $18.11B (US) | $48.6B (Glbl) - Expected to increase 4-5% both globally & locally `
  2. Do a timeline
  3. Total Market Size1.6M x $60/yr = $96M1.6M x $300/yr = $480MOpportunity Market Size30% have websites = 480,0005% will pay (DropBox model) = 24,000 24,000 x $60/yr = $1.4M24,000 x $300/yr = $7.2M
  4. Rev Opp from sponsor CompaniesAnalysis after we understand NPsDraw same line.