Chickadees, Windows, and Markets

I felt bad for the little chickadee that sat dazed and confused after running into my office window yesterday. He thought he had a clear and obvious path to the next pile of tasty seeds, but instead went thud and got a headache.

I thought similar things this week when I spoke with a few companies at the Eastern Analytical Symposium in New Jersey. They all had new or pending products with great hopes of penetrating some very appealing and large markets. Their chances of going thud upon entering the market definitely crossed my mind.

There were several factors that made this a distinct possibility.

• They tended to be technology-centric organizations that were focused on the new product
• The markets were well-established and had strong market leaders
• They had the sense that a number of segments would yield to their superior product/technology
• The discussions centered on the greatness of the product and not the importance of the problem

Not only did they all have the risk of finalizing, fine-tuning and supporting new technology, but they also had the risk in the marketplace, which was a new place for them. Dealing with both of these dimensions at the same time takes a lot of effort. So what can they do to reduce some of this risk and have a higher chance of not bouncing off the market? Here are a few suggestions.

• Spend the time and effort (aka $$) to develop a clear pathway into the market. Be sure you have the important stepping stones and milestones laid out and that there are lots of willing customers ready to welcome the new savior to their pressing problems.
• Closely look at your competitors and know how they position their offerings. Are there segments or niches that are not well served, where you can enter and avoid a head-on collision?
• Unlike the 1/2 ounce chickadee who is easily repelled, if you can develop some mass and momentum before you enter the market, your chances of overcoming the barriers are much higher.
• Finally you should also consider some contingent plans in case you meet unexpected resistance. Be sure the sales forecast is conservative so the company does not tank if you are 70% of plan, have a plan B in case the competitor halves his price, have some willing partners who can help with additional channels, and keep contact with the customers and marketplace. Like other important areas, early detection of symptoms is critical.

So when your excitement can’t be contained, your product is fine-tuned, and your organization is ready – go ahead and press the launch button. However, be sure you have created a clear flight path and have enough velocity to overcome the barriers – you don’t want to end up sitting on the ground with a headache wondering why the sky was so hard.