Part two, now moves to how do I select from as many segments from the hand that I've been dealt. Remember that the idea was that we wanted to go into segments where you get easy traction, early traction as quickly as possible. And that gives you the kind of demonstrable performance that will persuade others that you can do it and to give you support. So here, what we're going to do is decide which segments we're going to go after and why for the purpose of getting traction as soon as possible. Now, it's really easy to do one of two extreme things. One is to overelaborate and end up with so many darm segments that you drown in the details. You never get around to being able to serve a few segments really well. And the other extreme is you oversimplify, and you make it too simple and uncomplicated. And you go into the business and find out that there things that you should have taken into account in serving your segments that you attack, and that you're wrong. And what that does is you end up obstructed and you end up frustrated and nobody wants that. So it's a judgment about finding the right number of segments. And generally, what we try to do is say, can we find two or three maximum, perhaps five segments that are going to be the key segments? That are the underpinning of my ability to do business with that population. So for your project, you've already worked through the segmentation factors. You've already identified the key segments. And with lucky, you've listed no more than maybe three major factors by which your market is being segmented. And now, you start to begin to think about what your choices are with respect to what segments you're going to attend to. And what we do here is come up with a table in which your column headings, you list the segmentation of your business three to perhaps five each segment. And give it a easily recognizable name, like villagers from the mountains or ill people with chronic disease. These names that you can readily understand. And then what you do is you rate the attractiveness of each one of these segments using the attractiveness scores in the table, which we see here. So looking at the table that we have in front of you now, what we have is the attractiveness scoring. And then we will identify what that really means as you begin to think about each of the attractiveness features of the segments you've elected to serve. First is pervasiveness. The issue is how widespread is the problem? A widely spread is more attractive than narrowly spread. The next one is acceptance. How accepting are the potential beneficiaries? The next one is salience, this is important. How important is this problem for them? Is it something that doesn't really matter to them at all? Or is something that you know they care about deeply? How urgent is it? Do they need to do something quickly or do they have time that they can spend getting the problem attended to? The next one is visibility. How visible is it to the people who going to benefit? Now, can they see that they're benefiting or is it difficult for them to see? So if we knew something that's reducing disease and I can't see what the impact is on that disease, except for over a long period of time. They might be much less inclined to participate in using your offering. The next one is how timely is the effect? Does this result happen quickly? Can you see immediate results? Or does it take a long time before the effect kicks in? The next issue is how credible are you as an organization providing that service? Are you somebody from within the community that's well-recognized and connected to the community? Or are you some kind of an outsider that they never seen before and have no reason to trust? The next one, performance contingency. When you see a long word like that, it basically means that it's going to be complicated. But the idea here is if I provide this service or they participate in this offering, is it likely to work every time? Or is it likely to work only occasionally? Or is that sort of midrange? So if they see something that works every time, it's much more convincing to them than every now and then somebody tries the treatment or the offering and fails. Another one which we have already looked at in looking at the most competitive analysis tables is the competitiveness of your solution. Are you unique, are you the only one that has this solution? Or are there many other organizations providing similar solutions? And then the final one is fundability. What makes it attractive to you here is how easy will it be to secure funding for you to be able to deliver this service? So what you do now is you go through the title and you score each one of these statements on the attractiveness. And what this allows you to do is end up with the total attractiveness. This is an example for Zambia Feeds, for instance, is we have the three columns. And very clearly, the center segment which is a small handouts producer, is far superior in attractiveness to the other two. And so as Elona launched this project, the first place she started was to go to villages where they were handouts producers and persuade them to buy her feed. Let's have a look now at the whole segmentation process using an example which we call the PATH example. And this is a company called PATH, which was in the process in India of starting to distribute a disinfectant they developed that would massively reduce deaths and debilitation due to bacterially-contaminated waters. One of the major options they were looking at was to distribute in small sachets of disinfectant. The product that could handle about 20 liters of water at a time. Now, you start by working down the list of segmentation factors and note any major factors that cause meaningfully separate segments. And then once you've identified that, the creative challenge is can you find a remedy for that segment that attends to the factor created by that you've identified? So let's have a look at the start of this table. We're not going to go through the whole table, we're simply going to illustrate it for a few of the factors. So our geographic accessibility. If we're looking at rural villages, the challenge there is that these rural families are in remote areas where there are no shops. So you can't expect them to come to a store to buy the product. And so, the remedy that you're going to have to put in place is to take the disinfectant to them rather than expect them to come to you to buy the disinfectant. So rural villages that are remote, we have to find some way of getting the disinfectant to them. So the second factor to have a look at is infrastructure accessibility. And what we're saying basically here is if you look at rural villages, not only do they tend to be remote. But they also tend to be in places where it's really difficult to get there because you have primitive or ineffective transportation systems. And so what you have to do now as a remedy is to kind of focus on the villages that tend to have better transportation systems when you get started. Later, you can attend to the problem of poor transportation systems. But if you start off in areas where it's very difficult to get there and it's very difficult for them to get to you, you're kind of signing your own death warrant. So unless you can apply these remedies that we're listing, this is not a viable segment for you to go to. So the third factor that we're going to have a look at here in this last example is economic accessibility. Can people afford the benefit that you are trying to offer? And in remote villages, in rural villages, people generally tend to be poor or poverty stricken and they need to be incented, they need to be willing to spend their limited resources on your product. And there might be alternative places, disposable income could be spent. So the remedy here is to basically try to find in that segment, the people to whom you're going to appeal. And clearly, the people that are going to be most receptive to this product would be mothers with young children. Because those young kids, toddlers and infants that are most susceptible to these debilitating and deadly diuretic disease. The fourth item is social cultural accessibility issue, is not a factor here. And so we're not going to be worrying about it and we're not going to be looking for a remedy. And I use this to illustrate the fact that you're not going out there trying to find as many factors as possible that just makes your life complicated. If you run into a situation where one of these factors is not relevant, just sort of breathe a sigh of relief and move on to the next one. You want to end up with as few as possible factors influencing your decision as to which segment you're going to serve. So if one went through the entire table, what we see here is an example of the completed table for our villages. And so, what this analysis suggests is that if your target segment is remote rural villages. Then some of the remedies that you're going to have to bring to bear is to the obstructions that these factors create is to focus on villages where there's initially at least some road access. Where the distribution can be done by your sales force of people who are traveling, merchants, going to villages on regular selling trips and selling these and targeting small sachets rather than big quantities. Because people can't afford big quantities to mother's with young children. And places where the village leaders have agreed that this is something that's appropriate for the young mothers to do. Because if they can't get permission from the village elders, your sales people can turn up as often as they like but they won't get any revenues. So that's the basic idea. Now, as you start to think about your segmentation, you start there, you start to generate some revenues. You can then afford the luxury of perhaps now saying, now let's have a look at even more remote villages. Where the remedy might be, instead of having someone traveling in their car to take that merchandise, find a traveling peddler. Who go around these remote areas with mules and donkeys laden with an inventory of goods and services. And persuade these peddlers to add the disinfectant to the array, to the basket of goods that they take off to their markets. And so, sort of in conclusion, what we see here is the whole process of, firstly, doing the segmentation. Finding appropriate segments and then qualifying segments as seed segments for initial attack. And now, what you have is the startup of a strategic launch of your business.
