In today’s market of radical innovation, a brand is under constant challenge to relaunch itself to the marketplace and existing customers. With that in mind, it is important to know how to launch innovation and start ups in the market place, without exhausting your resources. Going out to the wider market can be an expensive exercise, especially if you have not yet tested the proposition. The key with business start ups and the launch of new propositions, is to first think big, but then to test the market, and either scale up or exit.
One of the best points of entry is to pick a strategic segment. The strategic segment strategy is powerful on a number of levels:
1. You can come to understand the psyche of a single segment by understanding their shared situational pressures including regulatory, competitive, customer needs and trends
2. The fragmentation of media and a multi channel approach can make the contact strategies of the respective segments, complex and expensive to maintain. Picking a strategic segment can create greater efficiencies for your marketing spend.
3. You can cherry pick the segment with the best margin and best growth potential. Often these strategic segments are so significant to the category, that you can assume if it doesn’t work for that segment, the proposition is not worth pursuing.
4. You can amplify the impact of word of mouth and social branding. Because conversations in the marketplace between peers and experts are one of the most critical drivers of growth for a brand, launching into a strategic segment will create a greater sense of buzz within a given community and hence raise the stature of the brand.
Finally, remember the words of Jim Collins in From Good to Great: “first who and then what”. Your team is more important than your business ideas or plan, the first priority for a great business launch will always be your people.
Hearts and Minds
Founder Thought Leaders Circle