This document serves as framework to help entrepreneurs test whether their ideas are feasible and sustainable. The framework can also help entrepreneurs to determine the detailed financial resources needed to execute an idea.

1. IS OUR IDEA FEASIBLE AND SUSTAINABLE

2. Sustain, displace or
disrupt
Feasibility through the Four Ps
of Innovation
Feasibility through Idea
Description Model
Develop the product through the conventional Four (4) Ps of Marketing Mix
Product Policy Pricing Policy Distribution policy
Communication
Policy
For Product
elements
For Pricing costs
For Distribution
Costs
For Promotion
Costs
Human Resources/
Outsourcing Costs
Detailed
Resources
requirement
Financial Budget Available funds
Funds to be
acquired plus cost
of acquiring
Potter’s
competitive
forces
model

3. WHAT IS YOUR STRATEGIC POSITION
Displace Disrupt
Outperform an existing
market incumbents at
their own game by
offering cheaper
options
Turning
non – consumers into
consumers. Cater for
the consumers that
can’t afford the
existing service.
Example Example
Sustain
Improve an existing
service/product and
try to make more
money from the high
spend and before
follower copy your
idea
Example

4. THE FOUR Ps OF INNOVATION MODEL
Population Penetration Price Purchasing
frequency
Think of your target
market in numbers
Think of willingness
and able-ness
Describe your
customer's persona
It terms of
demographics
and their need
Think of the effective
way of
communicating the
solution you have for
your customers need
Think of what is the
proper channel of
delivering this
solution to your
customers needs
How much
customers might be
willing to pay. What
costs make up you
production and
selling expenses,
and what profit
margins are
expected.
How often are
your customers
likely to purchase
your product or
service, once a
month, twice a
year.
3.5 m
E-wallet users in
SA
TV ads, newspapers
SMS, Radio, Facebook
N$ 10.00/transaction
System maintenance
salaries, technology
implementation,
communication cost
5 – 20 times a month
10 x 3.5m = (35 mil x 6) = 210 millions/month in revenue

5. IDEA DESCRIPTION MODEL
Problem Solution User
Costs
Competition
Revenue
What problem are you trying to
solve? What user need are you
satisfying ?
What is your idea and how does it
work? What is the functionality
of your idea? What is your
unique value proposition to the
user? How will you market your
solution and reach the user?
Who are you helping with your
solution? Who is the most
important user?
What are the alternative solution to
the problem ? Who offers these
solution?
How are you going to make money? Who pays? How
much will they pay? How do they pay (once of or
frequency)
What will it cost to develop your solution ? What are
the ongoing fixed costs and variable costs?
Lack of affordable pure and cold
water on campus. There is a
need for affordable purified, and
cold drinking water on campus.
Install a purifying water plant on
campus. All students and staff can
therefore bring their own
containers and pay a fraction of
what they pay for bottled water.
Our value unique proposition is
that we offer pure, mineral free,
and affordable water.
Students staff members, and
campus neighbors , especially
those that are currently buying
bottled water
Tap water, bottled water, and soft
drinks from kiosks
N$ 45 000 purifying plant once off
N$ 3000 fixed rent
N$ 6000 in salaries
N$ 1000 monthly advertising costs
N$ 2.00 for 500ml x 500 clients / day x 2 (purchasing
frequency x 19 day a month = N$ 57 000 / month In
turnover

6. THE MARKETING MIX
Product
Price
Place
Promotion
This is a policy that defines a product or service
characteristics. It helps to develop a process of
product or service standardization and it looks
at all other product elements that contribute to
product cost
Physical features,
Customer service
costs , Branding,
Packaging, Licencing
This is a policy that defines the price elements
and how they affect the actual product price.
Methods of
payments, discount
offers, and product
or service price
The policy defines the products or service
distribution channel. How will the product
reach the end consumers
Retailer,
wholesalers, agents
This policy guides the mediums of
communication to be use in promotional and
advertising/communication campaigns. Surely
this will have to be guided by the product prices
Advertising, PR, sales
promotion,

7. THE MARKETING MIX - PRODUCT
Technical/physical features
• Purified water through
reverse osmosis
Branding
• No branding required
Packaging
• No packaging required
After sale service
Technology
• No after sales service required
• Coin operated and
programmed vending
machine

8. THE MARKETING MIX - PRICE
Payment Methods
Discounts
Sales promotions costs
Credit policy
 Cash
 No discounts
 Twice every month
 100% payment ratio

9. THE MARKETING MIX - PLACE
 How to get our product to the end
consumers
 How our distribution channel decision
affects our end price?
 What resources do we need for our
distribution and how much they will
cost us.
 Distribution channel benchmarking
and innovation possibilities
Direct to the consumers,
wholesaler, agents, or retailers
Distribution channel costs
Premises, Transport etc.

10. COMPETITIVE FORCES ANALYSIS [POTTER’S MODEL]
POTENTIAL ENTRANTS
SUBSTITUTES
EXISTING COMPETITORS
BUYERS
BARGAINING POWER
SUPPLIERS
BARGAINING POWER
• Number of competitors
• How their service or products
compare to yours
• What are their selling value
proposition advantage
• How many
potential suppliers
do you have
• How expensive it is
to change your
supplier
• How easily can your
suppliers increase
prices
• Do they have a
unique products
• Relationship
benefits
• How easy can your
buyers drive your
prices down?
• How much it will
cost them to switch
to the competitors?
• Are you buyers
strong enough to
decide terms for
you?
• How easy it is for new competitor to enter
the market
• Think of capital requirements, consumers
loyalty, government policy, access to
distribution channel, and patents
• Think of other ways of doing things,