Entrepreneurship 101!

Presented by:
!
!
!
!
!

!Murray McCaig!
!Managing Partner!
!MaRS Cleantech Fund!
!mmccaig@marsvf.com!
!Twitter: @murraymccaig!

Go-To-Market Strategy
4 quadrants of a successful go-to-market strategy!

What are you

selling?!

What

Who

Who are you

selling to?!

Go-To-
Market
How will you
reach your
target market?!

How

Where

Where will you

promote your
product?!

Developing a go-to-market strategy is an itera7ve

process as each component impacts the other
Pg 3!

Case Studies!
Example MaRS clients for go-to-market case studies!

Ultra low cost meter for measuring

energy usage in buildings at the
circuit board level!

Electric bike that is ultra lightweight,

foldable, and provides a unique
ergonomic sitting position (e.g. its cool)!

Cloud based data analytics and

customizable user interface!

Premium priced!

Revenue grade!

Pg 4!

What

Who
Go-To-
Market

How

Where

What are you selling?!

Pg 5!

Whole Solution!
What part of the whole solution are you selling? Can you sell?!
Example!
CircuitMeter!

What is the whole solution

to the end user?!

Value Added Services

Tenant Billing System

What portion of the whole

solution can you deliver?!
Services

Installa7on
Cloud Based UI

Core Product

Are partners readily

available for delivering the
whole solution?!

Service & Support

Data Analy7cs
So>ware/Firmware
Hardware

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!

Example Value Proposition!

Focus on benefits, NOT features!
Defining Unique Benefits!
Example: LifeBike!
Features
Independent crank system
Low, ergonomic riding posi7on

Benets
Safe and comfortable riding posi7on

18.5 lbs, carbon ber frame

Portable and compact for easy storage

Lithium ion baQery powered

Be green Dont sweat

Pg 8!

What

Who
Go-To-
Market

How

Where

Who are you selling to?!

Pg 9!

Market Segmentation
Think about segments, NOT market size and share of market!
Market!

Market Segments!

1%!
Pg 10!

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!

Determine Segment Fit with Benefits

Compare NEEDS of each segment with your primary BENEFITS!
Segment Needs vs. Solution Benefits!
LifeBike Example!

Portable / Easy Storage!

High!

Compe77on
Low!
Low!

No Sweat/ Safe Riding Position!

High!
Pg 12!

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

Market Segment

Market Size

Needs/
Solution Fit

Ease of Selling

Propensity to
Market
Spend
Concentration

Market
Access

Overall
Segment
Attractiveness

Retirement
Homes
Apartments
Tenant Owned
Buildings
Multi-tenant
Buildings

Low

High
Pg 13!

Beachhead Strategy
A beachhead strategy is a leveraged approach to market rollout!
Beachhead Market Rollout Strategy!
Example: CircuitMeter!
Tomorrow!
208,000!

Tenant
Owned
Bldings,
Major Cdn!

Multi-tenant
Bldings,
Toronto!

Tenant
Owned
Bldings,
Toronto!

117,000!
Apartments,
Top 10 US
Cities!

91,000!

3,000!

Apartments,
Major Cdn
Cities!

4,500!

Market
Penetration
(Needs-based!
Segmentation)!

Apartments,
Toronto!

700!
Bldings!

Retirement
Homes
Major Cdn
Cities!

Retirement
Homes
Top 10 US
Cities!

109,000!

5,500!

Market
Expansion!

!
Retirement
Homes Toronto!
!

Today!
Point of Attack!

Pg 14!

What

Who
Go-To-
Market

How

Where

How will you reach your target market?!

Pg 15!

Channel(s) Strategy
Many options for reaching your target market!
Channel Options!
e-Commerce!

You

Direct!
Personal
Selling!

You

Retail!
(on/offine)!

You

Indirect!

You

Component
or Private
Label!

You

Customer

Salesperson/
Reps

Retailer

Distributor/
Reps

OEM

Customer

Customer

Salesperson

Customer

Customer

Pg 16!

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!

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!

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!

What

Who
Go-To-
Market

How

Where

Where will you promote your product?!

Pg 20!

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!

Messaging
Spend time getting the message right for the market segment and DM!
LifeBike Positioning Statement!
LifeBike is
[what]!

a revolutionary lightweight electric bike with an easy

riding position !

primarily for
[target market] !

safety conscious urban commuters who dont want to

sweat it on their ride to the office.!

The compelling
reason to buy
[benefits] !

Portable and compact for easy storage in your condo;!

Comfortable and safe riding position;!
Cool!

unlike
[competitors] !

Traditional e-bikes that are uncomfortable and difficult to

ride in a congested urban environment, and!
e-Scooters/Mopeds that are heavy, slow and very uncool!
Pg 22!

Summary

What

Who
Go-To-
Market

How

Where

Pg 23!

Crossing the Chasm

Jump the chasm with a focused go-to-market!
Crossing the Chasm !

Focus on needs of
the Early Majority!

Do not require full

solution and are less
price sensitive!

Area under curve

represents number
of customers!

Pg 24!

Go-to-Market Summary!
7 steps in developing a powerful go-to-market strategy!
1. Whole solution!
2. Value proposition!

What

3. Market segmentation!

Go-To-
Market

4. Target segment!
5. Beachhead strategy!

Who

How

Where

6. Channel(s)!
7. Promotion plan!

Pg 25!

Murray McCaig!
mmccaig@marsvf.com!
Twitter: @murraymccaig!