Startup Positioning - Innovify’s Approach
Simply explained, positioning is the space that the product takes in the mind of the potential buyer" (Trout and Ries).
For startups, positioning is more focused on the space that the product takes in the mind of their early adopters and it has the goal of crossing the chasm = reaching product/market fit.
At Innovify, we follow specific processes to help our startups position themselves to cross the chasm. It has several steps:
1. We look into the competitive alternatives by using a 2x2 competitive analysis or a petal diagram competitive analysis.
For the petal diagram, we select the top features of the product and we see who is in the market doing best on similar features.
2. We select the unique attributes that will differentiate the product in the market.
3. We analyse the target market characteristics such as customer segments and subsegments, channels to reach those segments and personas. For personas profiles, we go in detail into demographics, habits (tech and non-tech), motivations to use the product, potential barriers to use the product, and pain points.
4. We determine the value proposition that the product is bringing to the table for each pain point that the customer segments are having.
5. We select the market category that can be a marketplace, a new-bank, an ecomm platform, a social network, or many more.
6. We look into the market trends to understand where the investors are investing and how consumer behaviors are changing.
(Check reports such us Tech Trends 2020 from Deloitte or The New Low Touch Economy from the Board of Innovation )
Additionally, we utilise our proprietary Value Model Canvas to identify the core value creation & maximisation strategies to enable startups to develop unique positioning in the market.
As soon as this prerequisite work is ready, founders can follow 2 approaches:
Traditional Positioning Approach
A traditional one usually used internally that recommends formulating the positioning statement in the following way:
For <Target Market> who <Statement of Need>, the <Product Name> is a <Product Category> that <key benefit> unlike <competitive alternatives> our product <primary differentiation>
Example: For busy professionals looking to move house, X is a virtual assistant that provides a seamless personalised experience. X connects all the players in the market into a one-stop-shop for moving home that also ensures the quality of the customer service.
Startup-Oriented Positioning Approach
The startup-oriented approach is usually used externally and it’s shorter. It usually a combination of the solution, the market context, and the trends.
The structure is something similar to: <Product Name> helps <target market> to achieve <key benefit> by using <market trend>.
Example: X helps busy professionals have a seamless experience while moving hove by using AI.
....
Continue reading this article on Innovify's blog.
P.s. Looking for a tech partner? Let’s chat. Innovify is the startup studio that partners with ambitious founders to help them establish profitable business models and accelerate to Series A investment.