Go-To-Market Strategy Presentation - Big Idea Ventures Accelerator
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The document outlines the importance of a go-to-market (GTM) strategy for startups, highlighting key elements such as defining objectives, identifying the target customers, and creating effective marketing and sales plans. It emphasizes that 90% of startups fail, often due to poor distribution strategies, and provides a framework for testing market assumptions through minimum viable tests (MVT). The document also discusses the need for adaptability in GTM strategies, using case studies like Beyond Meat to illustrate shifts in approach based on market conditions.
Go-To-Market Strategy Presentation - Big Idea Ventures Accelerator
- 2. Agenda 1. What is GTM strategy? 2. Why is it important? 3. How do you create it? 4. Strategies and tactics you can use!
- 3. A “go-to-market strategy” outlines how your start-up plans to deliver your product to your customer/client 3 GTM - what is it?
- 4. Let’s break that down a little further. It really is all about bringing your products to market. Key elements include: • Define your objectives, KPIs, metrics • Finding the right customer/client (research, personas, pain points, use cases) • Defining market / size / opportunity (TAM / Serviceable / Attainable) • Is your business/product marketing or sales intensive/driven? • Determining your value proposition • Identifying channels (and the role each channel plays) • Determine the pricing strategy • Outlining marketing plans to support • Creating and testing your Minimum Viable Tests (MVT) GTM - how does it work?
- 5. GTM - why is it important? • 90% of all start-ups fail • 21.5% of companies suffer failure during the first year • 30% of companies fail during the second year • Most start-ups fail after having raised $1.3 million and around 20 months after their last financing round
- 6. “Scaling growth before having product/market fit is the fastest way to kill your start-up.” Sean Ellis GTM - why is it important?
- 7. GTM - why is it important? “Many entrepreneurs who build great products simply don’t have a good distribution strategy.” Marc Andreesen
- 8. GTM B2B - how do you create it? Define Mkt size / opportunity Market Intelligence, Customer Insights Value proposition / Positioning / Offering Identify distribution channels Define your Metrics (KPIs) and Objectives Figure out your pricing Define your marketing & sales plans + funnels to support MVT - Define hypothesis + risky assumptions and test & iterate Are you Marketing or Sales drive
- 9. GTM - when do you need it? MVP Product User Fit Product Market Fit Growth & Scale Right about here Then iterate Then iterate Then iterate
- 10. GTM - how does it help? • It provides start-ups with a compass to drive toward User and Product-Market fit • Helps you smartly deploy limited resources when a product is first launched and a company has one chance to make a strong, first impression • It will help you to define and adjust your sales and marketing efforts as you move through the different phases of your journey • It gives you process and structure when you need it most. This in turn provides you with feedback and learning in a structured way
- 11. Tactics and strategies start-ups can use!
- 12. Leslie’s Compass Framework for understanding the interplay between sales and marketing in a GTM strategy At the heart of a go-to-market strategy and much more - is one key question: Is your business/product marketing-intensive or sales- intensive? It is vitally important as determining if your product sales or marketing intensive means you can create the appropriate Go-to-Market as well as other key strategic pillars. To help companies work this out Leslie’s Compass was created by Stanford Lecturer Mark Leslie.
- 13. 13 Leslie’s Compass If you’re marketing-intensive, the product is bought, and sales serves marketing • Marketing generates the demand • Sales supports this effort through ensuring the product can be found easily by consumers • This means you have a marketing driven product, so your you can adjust your GTM accordingly If you’re sales-intensive, the product is sold and marketing services sales • Sales converts qualified leads to win customers • Marketing supports sales through creating and hand off qualified leads to the sales organization • This means you have a sales driven product, so your you can adjust your GTM accordingly And most importantly it helps you understand what are you are building and for who!
- 14. 14 Leslie’s Compass Key to deciding, if you are a marketing or sales driven organisation is a set of variables you need to consider (including Price, Market Size and Complexity…) to define how you should go to market. Let us examine two extreme examples - Proctor and Gamble’s Crest toothpaste and General Electric’s jet engines. For example: Price - Ask yourself: Is this a large or small economic decision for the buyer? Complexity - Ask yourself: Is this a large or small economic decision for the buyer? Touch - Ask yourself: How much agency do you have in developing your relationship with your customer? Can your efforts compound or are they mostly one-off?
- 15. MVT (Minimum Viable Test) • It tests your GTMs most important hypothesis & key risks – the things that must be right, or else the GTM won’t stand a chance • It helps you take the guesswork out by testing the riskiest elements of your GTM before you actually launch it • This helps you reduce risk, gain feedback and help predict whether a market will appreciate your product Framework for testing key hypotheses and risky assumptions of your GTM strategy
- 16. DISCOVER MVT Research and generate your GTM (Hypothesis + Risky Assumptions) Develop (MVT) based on your biggest Hypothesis + Risky Assumptions Run tests gather results and gain conviction • User Surveys, Research • Brainstorm sessions, BMC / Crazy 8’s • GTM Framework • Leap of Faith / Risky Assumptions • Interviews. Usability testing • A/B testing. Surveys, Heuristic evaluation • Analytics • Persona + Problem + Growth + Value Hypothesis validation TEST, MEASURE, LEARN • Problem / Persona / Growth / Value / Risky Assumptions • Low / High fidelity Prototypes • Mock-ups MVT (Minimum Viable Test) Launch your GTM with conviction + confidence (then iterate) Iterate + Test next assumption Framework for testing key hypotheses and risky assumptions of your GTM strategy 1. 2. 3.
- 17. GTM Agility How beyond meat shifted it GTM strategy • Beyond Meat’s initial "go-to-market" strategy - relied heavily on foodservice penetration. Placing its hamburgers and breakfast proteins in major quick-service restaurant chains was a logical approach to igniting brand awareness and helped quickly establish trust. This was clearly reflected in its sales • Fast forward to Q2 202, with the onset of COVID-19 it needed to radically alter its GTM strategy, based on the shut down of many foodservices outlets • Distribution strategy - looking at redirecting its foodservice stock into retail include B2B and D2C channels • Repackaging- for example creating new products including the “Classic Burger” value pack • Pricing - adjusting its pricing, so it is competitive (while still at a premium) to conventional burgers)
- 18. • Gastronomy first - • Products initially land on the market alongside “suitable culinary experts” • Valuable feedback, builds awareness, authenticity, credibly trust, scarcity and initial demand • Mass market foodservices second - • Ability to test things like pricing and operations, giving companies “more room to manoeuvre” before deciding on what works with consumers when it ends up in supermarkets • Legitimacy, relevancy, positioning and validation • Retail third – • Delivers scale and growth (and due to their earlier success, which validated demand, these brands were in a strong negotiating position) What’s the secret sauce Impossible Foods and Oatley’s GTM strategy
- 19. CONFIDENTIAL – DO NO SHARE Adrian M Odgers - Founder Growandco - Head of DTC The Live Green Co Thank you