Go-to-market Strategy - Tips to Improve your Business Growth

A go-to-market strategy is an analytical framework that entails a detailed overview of market dynamics, entry routes, and action plan for delivering product or service to end customer. 

In developing the go-to-market strategy framework, market research is the fundamental element. It is specifically required when a business is trying to enter a new country or market, or launching a new product or an adjacent product line altogether. During this phase, businesses seek to understand multiple factors: right product-market fit, market landscape, demand/supply scenario, market demand and growth, type of consumers, competitive landscape and market share, and the regulatory environment. These factors are analyzed under market opportunity assessment and feasibility analysis.

The go-to-market strategy involves two key elements:

• Market entry strategy entails the assessment of strategic market entry/expansion options. These include forming alliances (trade), setting up own business, entering into joint ventures, licensing or mergers & acquisitions. The mode of entry is influenced by various internal and external factors, such as industry type, government policies, and infrastructure conditions. Additionally, before selecting any entry mode, businesses would assess the PESTLE scenario and do a cost-benefit analysis of each route, among others.
• Market access strategy basically defines the action plan for businesses to ensure that customers can easily access products/services, at the right place and right price. Under this, businesses asses and devise their commercial capabilities, promotional channels, value chain (distribution channels), and pricing, among other parameters. Strategizing enables businesses to launch products in the right market, which is vital to drive sales.

An effective go-to-market strategy involves assessment of the value chain which helps businesses understand the number of entities involved, the investment required and the relations to be built. For example, if the value chain is simple, the investment required would be relatively less, while if the value chain is complicated and involves too many entities, the investment requirement would be much higher and building relations would be challenging.

Businesses need to understand their business model in terms of:

• The kind of product they intend to sell and how it would bridge the gap in the market, product features and competitor benchmarking, and product USP 
• Client base and purchase behavior of customers 
• Promotional channel 
• Commercial capabilities include sales & marketing aspects—a company assesses and decides on the sales channels to supply its product/service in the market. These channels could be direct or indirect (through distributors or other entities).
• Businesses invest in promotional activities to increase their brand awareness and image. They evaluate the promotional mix comprising exhibitions, advertisements in journals, sponsorships, promotion on television, digital promotion, etc.

The go-to-market framework provides a micro-level understanding of multiple factors, helps businesses to access the market faster, define the growth path for the successful launch, reduce costs and increase profitability.