VCW 4 G10F: Combating Deforestation in Brazil
Deploying Earth Observation for sustainable forest management in Brazil, targeting NGOs.
Which is the most attractive geographical market to launch Eart Observtion in forestry, in an area where illegal logging and deforestation is a significant problem?
G10F applies the Value Creation Wheel to identify Brazil as the most attractive market for its Earth Observation-based deforestation monitoring service, initially targeting NGOs.
Overview
This presentation covered G10F's plan to launch an Earth Observation (EO)-based service to combat deforestation, with Brazil as the initial target market. The Value Creation Wheel (VCW) framework was used to systematically analyze the market.
Application: Applying VCW to find the most attractive market
Discover Value (Phase 1): Defined G10F's mission (quality assistance and satisfaction for forest monitoring) and identified the problem (deforestation and wildfires). Conducted industry analysis, Porter's Five Forces, and competitor analysis. Identified target markets (initially NGOs, then ministries and companies) and aligned with SDGs (13 and 15).
Induced Solutions & Filters (Phase 2): Generated a large number of potential filters.
Selecting Filters (Phase 3): Used the POCR method to narrow down to 13 filters, categorized as economical, market, compliance, and product & services. Ranked the filters.
Value Creation Funnel (Phase 4a): Applied the filters, resulting in Brazil and Peru. Applied an additional filter (number of NGOs), leading to Brazil.
Positioning & Prototype (Phase 4b): Performed segmentation (focusing on NGOs initially) and positioning (emphasizing training and workshops to make data accessible). Defined marketing's 7 Ps.
Consolidation (Phase 5): Outlined the 3 Ms (manpower, minute, money), including team structure, timeline, and funding needs (€460,000). Presented a detailed budget and KPI analysis. Discussed limitations, restrictions and main takeaways.
Key Takeaways
Target Market: Brazil was chosen due to its high deforestation rates, presence of relevant NGOs, and potential for impact. The initial focus is on NGOs, with plans to expand to other customer segments.
Value Proposition: G10F provides a turnkey solution, including software, workshops, and ongoing support, to help clients understand and utilize EO data for forest management.
Competitive Advantage: G10F differentiates by focusing on customer education and providing tailored software and support, addressing the challenge of data interpretation for non-technical users.
Pricing: Value-based pricing, with quotations customized to each client's needs and the specific services they require.
Funding Strategy: The company will need to secure funding (€460,000) and the most significant expenses are in marketing.
Conclusion
The startup provides EO service to help customers with deforestation. For the company's next steps, it needs to develop prototype and raise funds.