Go-to-Market Agility –A Source of Competitive Advantage

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

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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


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

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

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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

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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


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

Pekka Mattila

Go-to Market Agility –A Source of Competitive Advantage

Singapore 12.12.2011Group Managing DirectorAdjunct Professor of PracticeAalto University Executive Education

Go-to-Market Agility –A Source of Competitive Advantage

Business

Transcript of Go-to-Market Agility –A Source of Competitive Advantage