Go-to-Market Strategy

Entering a new market with a new product can be an exciting and challenging endeavour, and businesses should be aware of the following challenges (adapted from ALGIE 2021):

• Competition: New products face stiff competition from established brands that have already established a strong presence in the market. Competitors (see also Competitors Analysis and Competitive Advantage through Innovation may have a loyal customer base and the resources to respond quickly to new entrants.
• Market awareness: Launching a new product in a market where there is little, or no awareness can be difficult. It may require a significant investment in marketing and advertising to create awareness and generate interest.
• Pricing: Setting the right price for a new product can be tricky. Pricing too high may deter potential customers, while pricing too low may imply lower quality or value, and lead to lower profit margins.
• Supply chain issues: New products may face challenges in the supply chain, such as securing raw materials, production delays, or distribution challenges, which can lead to delays in launch and potential loss of revenue. Another frequently observed problem is the availability of specialised spare parts and the lack of trained labour for both construction and operation & maintenance of the implemented solutions, etc.
• Regulatory requirements: Depending on the product and the industry, new products may face regulatory requirements, such as obtaining licenses or certifications, which can be time-consuming and costly.
• Customer adoption: New products may require customers to change their behaviours or routines, which can be difficult to achieve. Additionally, customers may be sceptical of new products and require social proof, such as reviews or recommendations, before making a purchase.
• Resource constraints: Launching a new product requires significant resources, including financial, human, and time. Start-ups or small businesses may face limitations in resources, which can impact the success of the launch.
• Cultural and language barriers: Doing business in a new market may require learning a new language, adapting to new cultural norms, and building relationships with new partners and customers.
• Marketing and advertising: Marketing and advertising in a new market may require a different approach, including adapting messaging and branding to local preferences (see also Media Campaigns – Video, Media Campaigns – Radio, Media Campaigns - Internet and Email, Media Campaigns - Posters and Flyers.
• Cultural and language barriers: Doing business in a new market may require learning a new language, adapting to new cultural norms, and building relationships with new partners and customers.

A Go-to-Market (GTM) Strategy is a comprehensive plan that outlines how a company will bring its product or service to market and generate revenue. It includes a detailed understanding of the target audience, marketing channels, sales tactics, and pricing strategy. A solid GTM Strategy is essential for a new product for several reasons, as it:

• Minimizes risk: A well-executed GTM Strategy can help minimize the risk of failure by ensuring that the product is launched to the right target market, with a pricing strategy that aligns with the market demand, and an effective marketing and sales plan.
• Increases chances of success: By understanding the target market, identifying the unique value proposition, and creating a comprehensive marketing and sales plan, a GTM Strategy can increase the chances of success for a new product. It helps to ensure that the product is positioned to meet customer needs and is effectively communicated to the target audience.
• Helps to allocate resources effectively: A GTM Strategy helps to identify the most effective marketing channels and sales tactics for reaching the target market. It helps to allocate resources effectively by ensuring that the budget is spent on the most effective channels and tactics to maximize Return on Investment (ROI).
• Improves customer engagement: A GTM Strategy helps to create a customer-centric approach to product launch, ensuring that the product meets customer needs and is communicated effectively to the target audience. This can lead to better customer engagement and loyalty.
• Provides a roadmap for growth: A GTM Strategy provides a roadmap for growth by identifying the key milestones and metrics for success (see Using Indicators to Measure Progress and Performance. It helps to track progress and adjust the strategy as needed to achieve the desired outcomes.

Remember that a GTM Strategy is not a one-time event, but an ongoing process that requires continuous refinement and adaptation. Stay agile and responsive to market changes and customer feedback to ensure the success of your product or service.

The Go-to-Market Canvas developed by MURPHY (2023) contains ten sections, as illustrated in Fig.1 below. Each is a dimension to consider when bringing new ideas, features or products to market. Some of them will be more applicable to your context than others.

Fig.1: The 10 sections that make up the Product Go-to-Market Canvas. Source: MURPHY (2023)

The sections of the Product Go-to-Market Canva “Value Proposition”, “Who’s buying it?” and “Distribution” have corresponding building blocks in the (Social) Business Model Canvas: “Value Proposition”, “Customer segments” and “Channels”. Other sections of the GTM Canvas are unique.

Prompting questions to help complete the sections of the GTM Canvas (MURPHY 2023):

What are you selling?

• What is the product?
• What are people buying? What problem is it solving?
• Be specific — what features will it have at launch? How much will you charge?

Who’s buying it?

• Who are your customers? Customer segments?
• Are there different types of customers? (i.e. a two-sided market)

Target Market

• Who are your target market for launch?
• Who are you specifically not targeting at launch?

Value Proposition

• Why should people buy your product?
• What is your market differentiator? What makes you different from competitors?

Distribution

• How do you plan to reach your target customers?
• Where will your customers buy your product?
• Do you have a marketing distribution strategy?

Competitors

• Who are they?
• What are they doing?
• What risks do they pose?

Launch Strategy

• What is your launch strategy?
• Do you plan to launch to the entire market (big-bang) or will you have a staged release?
• Beta? Pilot?

Post-Launch (First 30, 60, 90 days)

• What is your post-launch strategy?
• What are the critical things that need to happen in the first 30 days? 60 days? 90 days post-launch?
• What’s your customer engagement plan for those first 30, 60, 90 days?
• Do you have any specific Marketing strategies during this period?

Metrics

• What needs to be true at the end of the first day? Week? Month? Quarter?
• What signals would indicate that these are true? How do you intend to measure these?
• What key outcomes (metrics) will you be tracking post-launch?

Assumptions/Risks

• What assumptions are you making about this GTM strategy?
• What risks are we taking with the current approach?

Considerations

• What considerations do you need to take into account with the current strategy?
• Do we have technical considerations? Constraints?
• Are there teams/stakeholders/existing customers who we need to engage or inform?