New Market Investigation
“There’s gold in them thar hills” - Prospector in Destry Rides Again
When entering new markets it is important to know how the target market is comprised. The ultimate goal is often to come up with a valid ‘Go to Market” strategy that will allow you to get your message out in an effective way. In order to do this you will first need to gain a good understanding of the target market and secure intial sales. A critical first step is to define the market in terms of the nature and size of companies that make up the market.
Understanding the size of the potential market you will be serving is key in order to ensure that you dedicate appropriate resources to marketing effort and employ the correct channel strategy.
Not all customers in the target market will be the same. Segmenting the market can greatly improve the success of your marketing efforts. You can maximize your margins by prioritizing your marketing and sales activities so that you reach the segments that will see the highest value proposition for your offering.
Any incursion into a new market requires that first success. Identifying a suitable market entry point can make the difference between success and failure of the entire new venture.
Once the new market has been well defined and researched a suitable “Go to Market” strategy can be put together. This will address whether to use direct sales, inside sales or possibly a channel partner. In some cases it will make most sense to “Go to Market” with a strategic partner either in an OEM or a co-sell relationship.
ZedCan can help you develop your understanding of new markets. We can help conduct interviews with potential customers, size markets, develop /test business models and develop Go-to-Market strategies. We can then document the results to creat a compelling business plan.
MDSI – Mobile Data Solutions Inc.
MDSI had a very successful business serving customers in the Utilities, Telco and Cable/Broadband markets. The company desired to expand its markets and believed that adjacent vertical field service markets provided good opportunities. The real question was how large were these markets and which segments would prove most attractive to pursue. By pulling together census data together with other sources such as industry association information, we were able to build an estimate of the Total Available Market.
These market estimates were used as partial justification for the development of the MDSI ideligo product which in turn led to MDSI securing a multi-million dollar contract.
TrueContext is a rapidly growing Ottawa, Canada based software company. The company had developed many potential individual customer leads but was unsure of which markets would represent the best opportunity as well as the best way to reach the prospective markets.
A review of the markets into which the early customers fit revealed that certain markets represented much more potential than others. This was based on the market size and fit between the functionality offered by TrueContext’s products and that market’s needs.
Further analysis led to the need to refine the existing partner (ISV/VAR) strategy so that the Go to Market approach would yield maximum success.
As a result, TrueContext management re-focused sales and partnership resources which has led to securing new wins in the HVAC and other field service markets.