Learn how to create an action plan that defines how you will reach your target customers and achieve competitive advantage. This session is geared for startups that have not yet entered the market and are contemplating what needs to be in place for product launch.

1. Entrepreneurship 101
Presented by: Murray McCaig
Managing Partner
MaRS Cleantech Fund
mmccaig@marsvf.com
Twitter: @murraymccaig

2. 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

3. 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?

4. Pg 4

5. 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?

6. ¨ 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)

7. Pg 7
What
Who
How
Where
Go-­‐To-­‐
Market
What are you selling?

8. ¨ 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

9. 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

10. 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 Benefits
Example: CircuitMeter

11. ¨ 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
CircuitMeter
Core
Product
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

12. Pg 12
What
Who
How
Where
Go-­‐To-­‐
Market
Who are you selling to?

13. Market Segmentation
Pg 13
Think about segments, NOT market size and share of market
Market Market Segments
1%

14. 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)

15. Determine Segment Fit with Benefits
Pg 15
Compare NEEDS of each segment with your primary BENEFITS
Portable/EasyStorage
“No Sweat”/ Safe Riding Position
Segment Needs vs. Solution Benefits
LifeBike Example
CompeAAon
HighLow
Low
High
University
Students
Female Professionals
who Live/Work in City

16. 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

17. Beachhead Strategy
Pg 17
Point of Attack
Today
Tomorrow
MUSH, US
SW
MUSH, US
SE
Corporate,
US SWMarket
Penetration
(Needs-based
Segmentation)
Market
Expansion
(High
Energy
Prices)
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
117,000208,000
A beachhead strategy is a leveraged approach to market rollout
Beachhead Market Rollout Strategy
Example: CircuitMeter

18. Pg 18
What
Who
How
Where
Go-­‐To-­‐
Market
How will you reach your target market?

19. How will you reach target market?
Pg 19
Which channel? Partners?
Market Segments

20. 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

21. ¨ 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

22. ¨ 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

23. ¨ 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

24. Pg 24
What
Who
How
Where
Go-­‐To-­‐
Market
Where will you promote your product?

25. ¨ 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

26. 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.

27. 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 Solution
4. Target Segment
5. Beachhead
Strategy
8. Messaging