Go-To-Market Strategy - Entrepreneurship 101 (2012/2013)
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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.
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Go-To-Market Strategy - Entrepreneurship 101 (2012/2013)
- 2. Entrepreneurship 101! Presented by: !Murray McCaig! ! !Managing Partner! ! !MaRS Cleantech Fund! ! !mmccaig@marsvf.com! ! ! !Twitter: @murraymccaig!
- 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!
- 10. Market Segmentation Think about segments, NOT market size and share of market! Market! Market Segments! 1%! Pg 10!
- 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!