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Pekka Mattila
Go-to-Market Agility –A Source of Competitive Advantage
Finnish Business CouncilSingapore December 12, 2011
Group Managing DirectorAdjunct Professor of PracticeAalto University Executive Education
Pekka Mattila
Three forms of agility (Sull 2010)
1. Strategic
2. Portfolio
3. Operational• Go-to-market operations
12.12.2011
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Pekka Mattila
Aalto UniversityExecutive Education
1.Go-to-MarketAgility
Pekka Mattila
Channel system choices (Lambrecht 2010)
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Indirect channel
Direct channel
Outsourcing
Verticalintegration
Direct channel Indirect channel
Bu
y
Ow
n
Pekka Mattila
Go-to market strategies and distribution• Alternatives: penetration vs. skimming
• From masses to few
• Intensive distribution – Majority of resellers stock the 'product' and price competition may be evident
• Selective distribution –Intermediate choice
• Exclusive distribution – Only handpicked resellers or authorized dealers are allowed to sell the 'product'
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Pekka Mattila
Go-to market strategies and distribution
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Company
Customer Retailer
Customer
Wholesaler
Retailer
Customer
Wholesaler
Distributor
Retailer
Customer
Chances for agility?
Pekka Mattila
Aalto UniversityExecutive Education
2.Entering New Markets
Pekka Mattila
Direct channel
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• Digital revolution• Sudden rush of luxury brands• Imitating physical store experience
• Shop-in-shops• Pop-up stores
Pekka Mattila12.12.2011
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Pekka Mattila
Direct channel
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• Destination management• Efficient organizing of support functions• Dangerous replicas of the headquarter organization
Pekka Mattila
Outsourcing and indirect channel
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• Developing a partner network• Question of exclusivity• Interest in locking in• Incentive mechanisms
• Future of franchising?• Subway
Pekka Mattila
Outsourcing and indirect channel
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• Different ambitions• Adequate sense of urgency• Remedies for (financial) risk management
• Issues of brand management• Issues of IPR management
Pekka Mattila
Go-to-market considerations in Asia
• Importance of endorsements• Credibility of the chosen partner• Potential of word-of-mouth
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Pekka Mattila
Aalto UniversityExecutive Education
3.Introducing New Offerings
Pekka Mattila
Caze Zara
• The world’s largest apparel retailer (overtook Gap in 2008)
• New collection every two weeks• Drives store visits
• From an idea into a design in six weeks• Industry standard 5-14 months
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Pekka Mattila
Caze Zara
• ”In the summer of 2007, for instance, Zara introduced a line of slim-fit clothes, including “pencil” skirts in bright colors. Daily sales statistics revealed that the items were not selling but shed no light on why. Zara marketing managers visited the stores to explore the situation in person and learned that women loved how the slim-fit clothes looked but couldn’t fit into their usual sizes when they tried on the garments. Armed with this insight, Zara recalled the items and replaced the labels with the next sizes down. Sales exploded.” (Sull 2010)
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Pekka Mattila
Downside of agility?
• Pressure to reduce/shorten time-to-market
• Gauging immediate market feedback and response
• Recovering the investments quickly
• SCRUM
• Beta versions
• Time-to-market and quality
• Skipping steps leads to compromised
product (line) quality?12.12.2011
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Pekka Mattila
Go-to Market Agility –A Source of Competitive Advantage
Singapore 12.12.2011Group Managing DirectorAdjunct Professor of PracticeAalto University Executive Education