A to Z of GTM For Tech Startups -2
Going To Market should not be a bigger problem than building the product itself!
Extreme GTM: When To Carpet-bomb Entire Markets
picture credit: AI-generated image by Meta Inc.
This week, our continued effort to tame the GTM beast with tips, examples, and solutions continues. Here is a live example of how OLA EV is adopting an extreme GTM strategy of carpet-bombing their target market to gain coverage.
Ola Electric, an EV-2 Wheeler manufacturer announced the company was launching 4000 new outlets across tier 2, and 3 towns in India simultaneously on Dec 25. This is an example of a rare, extreme GTM technique used in special situations.
Why carpet bomb an entire market?
The Indian EV (2-wheeler) sector is now poised for the perfect storm. The segment has reached PMF and competitors have kicked in.
Ola EV has lost its first-mover advantage with its market share falling from 37.9% to 25.3% in Nov 2024. (reports)
Bajaj and TVS, the legacy players have their EV offerings ready to challenge OLA, the newcomer. Ola EV, who recently raised money from capital markets, now needs to create a comparable network of dealers, and service outlets to increase market reach.
Sector challengers bring innovative products and disrupt markets. Legacy players will take time to catch up. Next, the innovator needs to catch up on market reach. At such times, the innovator has to create a comparable dealer network to counter legacy players.
This is a classic case of carpet coverage in the shortest time possible. It is risky and expensive but the disruptor has no options. The only way to win is to move closer to the buyer and that requires building a massive market presence. But risk is familiar territory for battle-hardened startups like Ola EV.
These same dynamics play out whenever tech disrupts sectors at a fundamental level (EV disrupting the mobility sector at large - two-wheelers, and four-wheelers individually as sub-sectors, digital tech in the payments market are examples).
When technology disrupts market segments, usually the legacy players get left behind. But not for long. They respond with their offerings. And then the tables turn on disruptors.
Carpet-bombing demands flawless execution in record time
Innovation cannot be an endless cycle in itself. At some point, the innovation has to manifest in a product offering for the business to survive and grow. Once the product offering stabilizes, the focus shifts to distribution and market coverage. The legacy players perk up their distribution networks in defense or in many cases (as in the above example) to reclaim their home turf.
The disruptor now needs to catch up by investing in its distribution and service coverage area. That is when a carpet-bombing strategy makes sense as you now have to match reach and coverage already enjoyed by the competition.
The net winner in these battles is usually the consumer because the prices drop with volume and choices increase, shifting the focus to product and service quality.
These dynamics are typical of sectors that get disrupted by tech and get more interesting by the day. Watch this space for more.
More GTM Tips:
Networking Events as a part of GTM
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