Provides practical tips on how to prepare to enter the marketplace with your product. Relevant for all start-ups that are still in a development phase and contemplating the various pieces that need to be in place for product launch.
3. Go-To-Market Strategy
4 quadrants of a successful go-to-market strategy!
What are you What
Who
Who are you
selling?! selling to?!
Go-‐To-‐
Market
How will you Where will you
reach your promote your
target market?! How
Where
product?!
Developing
a
go-‐to-‐market
strategy
is
an
itera7ve
process
as
each
component
impacts
the
other
Pg 3!
4. Case Studies!
Example MaRS clients for go-to-market case studies!
¨ Ultra low cost meter for measuring ¨ Electric bike that is ultra lightweight,
energy usage in buildings at the foldable, and provides a unique
circuit board level! ergonomic sitting position (e.g. its cool)!
¨ Cloud based data analytics and ¨ Premium priced!
customizable user interface!
¨ Revenue grade!
Pg 4!
5. What
Who
Go-‐To-‐
Market
How
Where
What are you selling?!
Pg 5!
6. Whole Solution!
What part of the whole solution are you selling? Can you sell?!
Example!
CircuitMeter!
¨ What is the whole solution Value
Added
Services
to the end user?!
¨ What portion of the whole Tenant
Billing
System
solution can you deliver?!
Service
&
Support
¨ Are partners readily
Services
available for delivering the Installa7on
whole solution?!
Cloud
Based
UI
Core
Product
Data
Analy7cs
So>ware/Firmware
Hardware
7. Value Proposition!
What are your unique product BENEFITS?!
Value = Benefits - Costs!
¨ Value proposition MUST be based on the part of the WHOLE SOLUTION
you intend to sell!
¨ What UNIQUE benefits does your product/whole solution provide in
comparison to other competitors?!
¨ Typically compete on either (1) cost or (2) differentiation!
– Same value, <= price!
– Greater value, >= price!
¨ Costs include:!
– Risks (high when dealing with a startup); switching barriers; others?!
¨ Building your value proposition is a continuous process!
Pg 7!
8. Example Value Proposition!
Focus on benefits, NOT features!
Defining Unique Benefits!
Example: LifeBike!
Features
Benefits
Independent
crank
system
Safe
and
comfortable
riding
posi7on
Low,
ergonomic
riding
posi7on
18.5
lbs,
carbon
fiber
frame
Portable
and
compact
for
easy
storage
Lithium
ion
baQery
powered
Be
green
…
Don’t
sweat
Pg 8!
9. What
Who
Go-‐To-‐
Market
How
Where
Who are you selling to?!
Pg 9!
11. Market Segmentation
Use easily identifiable criteria to segment market!
Sex?! Urban Core?! Age Demographic?! Market Segments (Size)!
Yes!
Male!
No!
Yes!
Female!
No!
Pg 11!
12. Determine Segment Fit with Benefits
Compare NEEDS of each segment with your primary BENEFITS!
Segment Needs vs. Solution Benefits!
LifeBike Example!
High!
Portable / Easy Storage!
Compe77on
Low!
Low! High!
“No Sweat”/ Safe Riding Position! Pg 12!
13. Refining the Target Market
Other factors beyond fit with benefits must be considered!
Segmenting Beyond Fit with Value Proposition !
CircuitMeter Example!
Fit with Value Proposition Ease of Selling
Overall
Needs/ Propensity to Market Market
Market Segment Market Size
Solution Fit Spend Concentration Access
Segment
Attractiveness
Retirement
Homes
Apartments
Tenant Owned
Buildings
Multi-tenant
Buildings
Low High
Pg 13!
14. Beachhead Strategy
A beachhead strategy is a leveraged approach to market rollout!
Beachhead Market Rollout Strategy!
Example: CircuitMeter!
Tomorrow!
Tenant
208,000! 117,000!
Multi-tenant Owned Apartments,
Bldings, Bldings, Top 10 US
Toronto ! Major Cdn! Cities
!
Tenant 3,000! 91,000! Retirement
109,000!
Apartments,
Owned Homes –
Major Cdn
Bldings, Top 10 US
Cities
!
Toronto! Cities
!
4,500! 5,500!
Retirement
Apartments, Homes –
Market Toronto! Major Cdn Market
Penetration Cities
!
700! Expansion!
(Needs-based ! Bldings!
Segmentation)!
!
Retirement
Homes -
Toronto!
!
Today!
Point of Attack! Pg 14!
15. What
Who
Go-‐To-‐
Market
How
Where
How will you reach your target market?!
Pg 15!
16. Channel(s) Strategy
Many options for reaching your target market!
Channel Options!
e-Commerce! You
Customer
Direct! Salesperson/
Personal You
Reps
Customer
Selling!
Retail!
You
Retailer
Customer
(on/offine)!
Distributor/
Indirect! You
Reps
Salesperson
Customer
Component
or Private You
OEM
Customer
Label!
Pg 16!
17. Channel(s) Selection!
Factors to consider in channel selection!
¨ Deal size / Product margin !
¨ Percent of whole product!
¨ Solution complexity!
¨ Credibility/brand!
¨ Importance of local knowledge!
¨ Time to market!
¨ Number of target customers!
!
Pg 17!
18. Direct Sales!
Key points to consider in building a high performance sales team!
¨ Recruit the best … pay for performance!
¨ Top guns follow great managers!
¨ Industry experience!
¨ Be a leader … get involved!
¨ Align with business targets!
¨ Manage to targets/activity … yearly, monthly, weekly, daily (track it!)!
¨ Be aware of salespeople chasing the “big fish”!
¨ Fire fast … spend time with top performers!
¨ Training and knowledge sharing!
¨ Tweak the compensation plan!
¨ Inside sales team!
Pg 18!
19. Indirect Sales!
Factors to consider in developing an indirect channel strategy!
¨ Reps or Distributors!
¨ Selection!
– Alignment with target market!
– Reputation/brand!
¨ Management!
– Legal agreement (targets, pricing/commissions, information sharing, …)!
– Market/account split (house accounts) … customer ownership?!
– Training!
– ‘Drive-a-rounds’!
Pg 19!
20. What
Who
Go-‐To-‐
Market
How
Where
Where will you promote your product?!
Pg 20!
21. Promotion Plan!
Where will you communicate to reach decision makers!
¨ Align your promotion plan with your target market!
¨ Focus on reaching decision makers!
¨ Types of promotion!
– PR (mass, specialty)!
– Word-of-mouth!
– Social media!
– Trade shows!
– White papers!
– Product demos!
– Gorilla/shock/…!
– …. and finally, advertising (print, tv, internet)!
Pg 21!
22. Messaging
Spend time getting the message right for the market segment and DM!
LifeBike Positioning Statement!
LifeBike is… … a revolutionary lightweight electric bike with an easy
[what]! riding position … !
…primarily for… … safety conscious urban commuters who don’t want to
[target market] ! “sweat it” on their ride to the office.!
The compelling • Portable and compact for easy storage in your condo;!
reason to buy • Comfortable and safe riding position;!
[benefits] …! • Cool!
• Traditional e-bikes that are uncomfortable and difficult to
… unlike
ride in a congested urban environment, and!
[competitors] …! • e-Scooters/Mopeds that are heavy, slow and very ‘uncool’!
Pg 22!
23. Summary
What
Who
Go-‐To-‐
Market
How
Where
Pg 23!
24. Crossing the Chasm
Jump the chasm with a focused go-to-market!
Crossing the Chasm !
Area under curve
represents number
Focus on needs of of customers!
the Early Majority!
Do not require full
solution and are less
price sensitive! Pg 24!
25. Go-to-Market Summary!
7 steps in developing a powerful go-to-market strategy!
1. Whole solution!
2. Value proposition! What
Who
3. Market segmentation! Go-‐To-‐
Market
4. Target segment!
5. Beachhead strategy! How
Where
6. Channel(s)!
7. Promotion plan!
Pg 25!