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Define a Compelling Market Opportunity
November 2024
Hello wellness founders! Today, we’re going to cover an essential component of a compelling investor pitch deck: defining your market opportunity. In my journey as a founder and now as a venture capital investor—I've seen countless pitches, crafted pitch decks, and have gone through the fundraising process myself.
To help you build a compelling pitch, we’ll cover:
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STEP ONE
Understanding Your Market Landscape
🧩Where does your idea fit?
Understanding the market landscape is essential for determining your entry approach. Start by assessing where your idea fits within the broader market:
White Space: This represents untapped opportunities with little competition. If your brand addresses an unmet wellness need, it may be positioned to lead in this new space.
Fractured Market: A market with many small players and few dominant leaders may offer chances for consolidation or unique positioning.
Saturated Market: High competition means differentiation will be key. Entering this space requires a unique approach to stand out.
💡Founder Tip
Watch the market opportunity video to explore market entry strategies in more detail and examples of what works best.
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STEP TWO
Choose a Method of Market Entry
🚀Market entry strategy
Once you understand the landscape, it’s time to decide how you’ll enter the market. Each entry type has distinct advantages based on timing, resources, and brand positioning:
First to Market: Ideal for highly innovative products in white spaces.
Fast Follower: Like Calm to Headspace, aligning with existing demand in a new way.
Greenfield Entry: Building everything from the ground up with no existing infrastructure.
Late Entrant: Taking advantage of a well-understood market, often with improved offerings.
Joint Venture: Partnering to leverage existing strengths and networks.
Disruptive Entry: Innovating to meet market needs in a way competitors haven’t.
STEP THREE
Uncover Your Market Opportunity
🔍Uncover gaps and demand
To create a lasting impact, you need to understand and articulate why your business is essential right now. Explore the following elements to define your opportunity:
Market Trends: What are the broader trends in wellness, such as mental health awareness or preventative health?
Market Timing: Highlight why this moment is ideal for launching. What external factors make this product or service particularly relevant?
Consumer Behavior: How have shifts in consumer priorities created a demand for your offering?
💡Founder Tip
I’ve seen a lot of founders miss communicate the market opportunity which immediately turns off investors. Unlock pitch deck slides to communicate your market opportunity to investors here.
STEP FOUR
Strategies to Expand Your Market Share
📈Five effective strategies
Once your market entry is determined, consider how to capture and grow your share within it. Here are some effective strategies:
Partnership-Based Entry: Leveraging established networks or brands to increase visibility.
Geographic Expansion: Growing reach by entering new regions or demographics.
Piggyback Entry: Teaming up with an established brand or service to reach new audiences.
Acquisition-Based Entry: Merging with smaller brands or competitors to build market presence.
Low Cost Disrupter: Offering a cost-effective solution in a high-cost market.
Segment Expansion: Targeting new user groups within your market.
Niche Market Entry: Catering to a specific, underserved audience within wellness.
💡Founder Tip
Tactics to expand market share should complement your market landscape, and market entry strategy. Book a 1:1 coaching session to help you navigate what market entry strategy works best for your business.
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