Date post: | 14-Apr-2017 |
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Entrepreneurship 101
Presented by: Murray McCaigManaging PartnerMaRS Cleantech [email protected]
Twitter: @murraymccaig
Crossing the Chasm
Pg 2
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
Go-to-Market: Old School
Pg 3
Linear process, 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?
¨ Low cost energy management solution for commercial buildings
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)
¨ 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
¨ Find energy problems faster
¨ Measure solution payback¨ Compact
¨ Comfortable riding position
Example Value Proposition
Pg 10
Focus on benefits, NOT features
Features Benefits
Circuit level data measured each second with ability to analyze power harmonics
Quickly find opAons for energy savings
Cloud based analyAcs Compare/contrast data across buildings
Low cost Fast ROI
Defining Unique BenefitsExample: CircuitMeter
¨ 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 SolutionExample
CircuitMeter
Core Produ
ct
Services
InstallaAon
Cloud Portal
Compare Equipment /Buildings
ConsulAng/ Vendor IntegraAon
Electrical FingerprinAng
Learning Algorithms
AnalyAcal Tools
What part of the whole solution are you selling? Can you sell?
Equipment
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 BENEFITSPo
rtabl
e / E
asy
Stor
age
“No Sweat”/ Safe Riding Position
Segment Needs vs. Solution BenefitsLifeBike Example
CompeAAon
HighLow
Low
HighUniversity Students
Female Professionals who Live/Work in City
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 CircuitMeter Example
Beachhead Strategy
Pg 17Point of Attack
Today
Tomorrow
MUSH, US SW
MUSH, US SE
Corporate, US SWMarket
Penetration (Needs-basedSegmentation)
Market Expansion
(High Energy Prices)
Hotels, US SE
Multi-tenant, US SW
Hotels, US SW
700Bldings
5,500
109,000
4,500
91,000
Corporate, US Midwest
MUSH, US Midwest
Corporate, US SE
3,000
117,000208,000
A beachhead strategy is a leveraged approach to market rollout
Beachhead Market Rollout StrategyExample: CircuitMeter
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
DirectPersonal 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
¨ Align your promotion plan with your target market
¨ Focus on reaching decision makers in the target market
¨ Where do the decision makers get their information?
¨ Types of promotion– Internet/Social media (Google Adwords, Facebook)– PR (mass market publications vs. specialty publications)– Word-of-mouth (social media promos)– Trade shows– White papers– Product demos– Gorilla/shock– Old school – print, TV
Promotion Plan
Pg 25
Where will you communicate to reach decision makers
Messaging in Critical
Pg 26
Spend time getting the message right for the market segment
CircuitMeter is… [what] … a forensic energy management solution …
…primarily for… [target market]
… commercial building owners who want to accurately identify energy solutions and measure solution impact.
The compelling reason to buy [benefits] …
… unlike [competitors] …
CircuitMeter Positioning Statement
• Fast payback;• Simplifies actions/ investments and measurement;• Compare with other buildings in real time.
• Expensive meter-on-chip solutions;• High level, watered down, solutions that look only at total building energy use.
Go-to-Market Summary
Pg 27
8 steps in developing a powerful go-to-market strategy
Go-‐To-‐Market
1. Value Proposition
3. Market Segmentation
6. Channel(s)7. Promotion Plan
What Who
How Where
2. Whole Solution4. Target Segment
5. Beachhead Strategy
8. Messaging