Date post: | 09-May-2015 |
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Business |
Upload: | mars-discovery-district |
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Entrepreneurship 101!
Presented by: !Murray McCaig!! !Managing Partner!! !MaRS Cleantech Fund!! [email protected]!
!! !Twitter: @murraymccaig!
It's hard to tell with these Internet startups if they're really interested in building companies or if they're just interested in the money. I can tell you, though: If they don't really want to build a company, they won't luck into it. That's because it's so hard that if you don't have a passion, you'll give up.
Go-to-Market: Old School
Pg 4!
Make the product and then figure out how to sell it!
What Who How
Go-to-Market Strategy!
Where
Focus on the product, the ‘what’!
Next determine who you can sell it to and how to reach them!
Where to promote it an after thought!
Go-To-Market: New School
Pg 5!
Developing a go-to-market strategy is an iterative process!
What Who
How Where
Go-‐To-‐Market
4 quadrants of a strong go-‐to-‐market strategy
What are you selling?!
How will you reach your target market?!
Who are you selling to? !
Where will you promote your product?!
Grey water recycling system for commercial and residential customers!
Case Studies!
Pg 6!
Example MaRS clients for go-to-market case studies!
Pg 6!
Innovative eBike with a unique ergonomic sitting position (e.g. its cool)!
Pg 7!
What Who
How Where
Go-‐To-‐Market
What are you selling?!
What UNIQUE benefits does your product provide in comparison to 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?!
What you are selling impacts who you are selling to and how you sell it AND vice versa!
Value Proposition!
Pg 8!
What are your unique product BENEFITS? !
Value = Benefits - Costs!
Value proposition!
Pg 9!
Example MaRS clients for go-to-market case studies!
Pg 9!
Full solution!
Simple reporting!
Near zero maintenance!
Compact!
Comfortable riding position!
Example Value Proposition!
Pg 10!
Focus on benefits, NOT features!
Features Benefits
Microfiltra<on with auto flushing Near zero maintenance
WiFi connected/remote monitoring Report on your savings
Qualified installers One stop purchase
Defining Unique Benefits!Example: Greyter!
What is the whole solution to the end user?!
What portion of the whole solution can you deliver?!
Are partners readily available for delivering the whole solution?!
Whole Solution!Example!Greyter!
Core Produ
ct
Services
Installa<on
Consumables
Online Monitoring
Water Tes<ng
Financing
Smart City Integra<on
Annual Servicing
What part of the whole solution are you selling? Can you sell?!
Equipment
Pg 12!
What Who
How Where
Go-‐To-‐Market
Who are you selling to?!
Market Segmentation
Pg 13!
Think about segments, NOT market size and share of market!
Market! Market Segments!
1%!
Market Segmentation
Pg 14!
Use easily identifiable criteria to segment market!
Age Demographic?!Urban Core?!
Male!
Female!
Yes!
No!
No!
Yes!
Sex?! Market Segments (Size)!
Determine Segment Fit with Benefits
Pg 15!
Compare NEEDS of each segment with your primary BENEFITS!Po
rtabl
e / E
asy
Stor
age!
“No Sweat”/ Safe Riding Position!
Segment Needs vs. Solution Benefits!LifeBike Example!
Compe<<on
High!Low!
Low!
High!Female University
Students!
Female Bay Street Professionals!
Refining the Target Market
Pg 16!
Other factors beyond fit with benefits must be considered!
Market Segment
M.U.S.H.
Corporate, Single Tenant
Multi-tenant Buildings
Hotels
Market Size Needs/ Solution Fit
Propensity to Spend
Market Concentration
Market Access
Overall Segment
Attractiveness
Low High
Fit with Value Proposition Ease of Selling
Segmenting Beyond Fit with Value Proposition !Greyter Example!
Beachhead Strategy
Pg 17!Point of Attack!
Today!
Tomorrow!
!MUSH, US
SW!!
MUSH, US SE!
Corporate, US SW!Market
Penetration (Needs-based!Segmentation)!
Market Expansion!
(water scarcity)!
Hotels, US SE!
Multi-tenant, US SW!
Hotels, US SW!
700!Bldings!
5,500!
109,000!
4,500!
91,000!
Corporate, US Midwest!
MUSH, US Midwest!
Corporate, US SE!
3,000!
117,000!208,000!
A beachhead strategy is a leveraged approach to market rollout!
Beachhead Market Rollout Strategy!Example: Greyter!
Pg 18!
What Who
How Where
Go-‐To-‐Market
How will you reach your target market?!
How will you reach the target market?
Pg 19!
Which channel? Partners?!
Market Segments!
Channel(s) Strategy
Pg 20!
Many options for reaching your target market!
Customer You
Customer You Salesperson/Reps
Customer You Retailer
Customer You
OEM
Distributor/ Reps Salesperson
Customer You
Channel Options!
e-Commerce!
Direct!Personal Selling!
Retail!(on/offine)!
Indirect!
Component or Private Label!
In House!
Outsourced!
Deal size / Product margin !
Percent of whole product!
Solution complexity!
Competition (have they locked certain channels)!
Differentiation (can different channel provide unique strategy)!
Credibility/brand!
Importance of local knowledge!
Time to market!
Number of target customers!
!
Channel(s) Selection!
Pg 21!
Factors to consider in channel selection!
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!
Direct Sales!
Pg 22!
Key points to consider in building a high performance sales team!
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’!
Indirect Sales!
Pg 23!
Factors to consider in developing an indirect channel strategy!
Pg 24!
What Who
How Where
Go-‐To-‐Market
Where will you promote your product?!
Align your promotion plan with your target market!
Focus on reaching decision makers!
Where do the decision makers get their information?!
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)!
Promotion Plan!
Pg 25!
Where will you communicate to reach decision makers!
Messaging
Pg 26!
Spend time getting the message right for the market segment and DM!
Greyter is… [what]! … a grey water recycling system … !
…primarily for… [target market] !
… commercial building owners who want to be water smart and save money.!
The compelling reason to buy [benefits] …!
… unlike [competitors] …!
Greyter Positioning Statement!
• Short payback with water savings;!• Full solution;!• Remote monitoring;!• Near zero maintenance.!
• Low flush toilets that don’t work well; and!• Reduced flow shower heads that disappoint.!
Summary
Pg 27!
What Who
How Where
Go-‐To-‐Market
Crossing the Chasm
Pg 28!
Jump the chasm with a focused go-to-market!
Crossing the Chasm !
Area under curve represents number of customers!
Do not require full solution and are less price sensitive!
Focus on needs of the Early Majority!
1. Value proposition!
2. Whole solution!
3. Market segmentation!
4. Target segment!
5. Beachhead strategy!
6. Channel(s)!
7. Promotion plan!
Go-to-Market Summary!
Pg 29!
7 steps in developing a powerful go-to-market strategy!
What Who
How Where
Go-‐To-‐Market
thank you @murraymccaig