The Narrated Journey To Becoming, And Investing in, Emerging New Market Category Kings
Featuring thought leaders from the TMARA GROUP, the codifiers of the Product-Category fit (PCF) science (of becoming a market MUST-HAVE), and developers of the Market Category Generator (MCG) the investment vehicle.
Its where Emerging New Market Category Kings are produced (by default), how new demand is generated in new markets, and where early-stage investors acquire equity options in them.
SUMMARY THE JOURNEY
The summary is an introduction into the Product-Category fit (PCF) 8 test process, and the mechanics of the Market Category Generator (MCG) investment vehicle.
Hi there. The idea here is to share in a minute or 2, how we turn entrepreneurs into emerging new market category kings. Some context first, if you have a look at the classic ages and stages of a startup journey, we see them beginning life in what we euphemistically call the fountain of hope, then going through the valley of death in search of traction in a great new market, with very few reaching an all-important product-category fit.
It’s in this zone, the valley of death, where we’d like to take you through a journey which we’ve codified, in a scientific manner, and also housed in what we call the MCG, the Market Category Generator.
So like all successful journeys, let’s begin with the end in mind, and here we’d like to show you in this trailer, how we take a startup through a journey of product-category fit testing, 8 tests in total, which begin by assessing if success is in indeed one of the potential outcomes for the startup.
Test 2 to 8 thereafter, are then designed to make sure, that if you complete the tests successfully, you become what are called proven emerging new market category kings, by default.
During this narrated series, we will describe and also introduce to you a new concept called the MVV which we consider the new MVP, where instead of taking an MVP and throwing it at the market, we’re now able to first located the sweet spot in a new market category scientifically, and align your MVP towards that sweet spot accordingly, through the product-category fit test process, inside the MCG. The odds and definition of startup success improve dramatically.
So, a very big welcome to the journey of becoming (and investing in) emerging new market category kings. The rest of this narrated journey, we’ll take your step by step, or rather test by test in a snapshot manner, to give you an idea, whether you’re a startup or an investor, what the journey looks like towards becoming a king (as opposed to just a another startup commoner), and how to take investment options at an early-stage too.
The bottom-line, is that the process answers 2 fundamental questions (previously deemed impossible for entrepreneurs and investors alike), that being “IF and WHEN the start-up, can and will, reach product-category fit.
It is also noteworthy that the entire journey takes between 6 – 18 months (so an average of about 1 year to complete), and culminates in a successful Series A round, at a predetermined valuation
And finally, if you adopt the new way, the scientific product-category fit process, it becomes clear we can all stop predicting the early-stage start-up homeruns, because you’ll have found a more effective new way, which enables co-creating the kings, and all inside the MCG the investible vehicle.
A special note to local MCG investors – you get early-stage equity options in the proven kings that come through the system, and at a significant discount for those committed to the process.
Welcome, enjoy our narrated product-category fit journey, also known as the journey to becoming an emerging new market category king
LET’S GET STARTED WITH THE PCF TEST JOURNEY, THAT SHOULD A START-UP PASS ALL 8 TESTS, BECOMES AN EMERGING NEW MARKET CATEGORY KING, BY DEFAULT
What’s Included In The Narrated Journey Series Below:
TEST 1: Category Test
Welcome to the product-category fit or PCF tests proper. Test 1’s primary objective here, is to assess if success is indeed one of the probable outcomes. We know failure is, as most start-up would have little or no chance of ever succeeding, hence test 1 seeks to determine if a significant limitation for a large enough market exists, and can be diminished or removed, which by default, results in the creation of a large new market category.
Your question may be, why does our first PCF test start by asking this specific question? Because, if we’re able to understand if a significant limitation can be removed by your innovation, then it opens up uncontested space (in other words a new market category), where a new way is to be found and a whole new world of possibilities created, by default.
Here TMARA’s approach is altogether different. We do not look to solve big problems, nor address wants or unmet needs as is current startup best practice. We’re looking for a very unique type of problem – it’s called a limitation, and our testing process start point begins here, and consequently the rest of the journey to becoming a new category king is guided accordingly.
Practically, the test here, is to show a common clear way how this market is currently coping with the identified limitation, you are seeking to remove. A lack of this common coping way, will signal no significant limitation exists, and an immediate PCF show-stopper, with an immediate exit from the Market Category Generator (or MCG as you’re now more familiar)
Testing positive here however, means no fatal flaw thus far in the PCF process, signaling the start-up has earned the right to stay in the MCG, and progress to test 2 to see if it can potentially become a must-have in its new found market category (as defined by test 2 as you’ll learn in the next insert)
TEST 2: MUST-HAVE Test
Test 1 in the prior insert, assessed if success is even a possibility. Once we confirm that it is, then frankly-speaking, the rest of the tests (including this one) are designed to effectively try to fail the start-up quickly, if we discover through the scientific PCF testing process, that any fatal obstacles may come to light, to obstruct you from becoming a new market category king. Pass all the tests, then as mentioned, the startup becomes a proven emerging new market category king, by default!
Once we’ve identified a large new market category (in test 1), test 2’s objective here is to test if the startup’s new innovation can now become a must-have (not just a nice-to-have) inside that new category. This is the MVV validation process we alluded to in the trailer, where we test if the market can adopt a whole new way, whereby, by default, this would make your innovation an absolute must-have. Why? Because your innovation is the only one, that can enable that new way or new rule for the market. The test involves proving the new market can actually adopt the new way, and within a reasonable time. And, to determine if adoption is in our control, or not. We are looking for the new-rule adoption showstoppers here, otherwise we process to test 3.
TEST 3: 10x Test
The journey thus far, has sought to validate that a new market category exists, for which your innovation can become a must-have, through the market’s own minimum viable value specification, or MVV. Explained another way, it’s the validated level at which the market itself considers your innovation to be a real must-have.
Here we now test your MVP’s mettle against the MVV (you recall what that is?). Test 3 here validates being able to remove the limitation technically for the market, because this would by default, renders any current best practices and coping mechanism obsolete
The test here is to take a sample of customers experiencing the new way, who must confirm that after what they have experienced with your innovation, the current best practices and coping mechanism serve no further purpose. Any further need for these, will be a showstopper here, and therefore becoming an emerging new market category king is no longer possible. Bear with us, its technical stuff, but as your guides through the PCF process, we lead the testing and validation process to your advantage.
Passing test 3 however, means we have validated a 10x level of technical performance from your new product or MVP, and confirmed that it does enable a new way for the market.
TEST 4: New Rule Test
Test 4 continues to focus on your MVP, this time to confirm it truly “does what it says on the box”, in other words tests that by adopting the new rule we provide the market with, the market will realise the full value of your innovation, by default. Why? Because value is realized by adopting the new way or rule, not merely from adopting your technology alone.
Test 4 focuses on a sample of customers indicating how much value they realise by adopting the new rule (in other words the default value), because a lack of the full realization of value, will be a showstopper here for us.
If we lack the value features in the MVP and it doesn’t do what it claims to, then the startup fails test 4, and exits the product-category fit process here unfortunately.
Next we’ll move onto the market offer components of your product-category fit process, and we thank you for staying on the journey to becoming a new market category king.
TEST 5: Guarantee Test
Welcome to test 5. To this point, we have tested for a large enough new market category into which you can become a must-have, and validated that your new product can perform to the market’s must-have spec.
Now we test the market’s perception of value, and its willingness to embrace the new way to extract the value of your innovation. Test 5 confirms with the market, that the cost of coping with their existing limitation, is greater than the cost of your new solution, and in doing so, we must validate that the cost of their coping, is higher than the intended price of the new solution.
Here we are testing that the value economics hit the market’s sweet spot, because if it does, then the PCF show certainly goes on.
TEST 6: Rate Test
Crossing the startup valley of death, or chasm successfully, at this point, means passing this next challenge, test 6. Can we develop an un-refusable offer to the market, because having serious skin in the game, attracts customers. Why? Because guaranteed value must count, and have very little risk for customers, especially because you’re new to the market and this value guarantee serves as that reference point.
Test number 6 validates that the value guarantee actually (damn) counts, and causes a high enough sales hit rate. Achieving a below, say a 60% sales conversion rate in the market, will be a showstopper here, and this would be a fatal flaw to becoming a new market category king, even this close to the PCF finish line.
Sales must not struggle to sell the value of your new innovation, and the message to the market must result in accelerated traction, by default, because your innovation has become inevitable.
TEST 7: Prom Test
At this exciting stage of the journey to becoming a new market category king, we can sense the promised land – more specifically reaching product-category fit moment. But let’s not get ahead of ourselves, however, because we have 2 important tests to complete still, as both of these tests will prove, or not, if you can become the new way (as in let’s “google” that, you must prove you are the new way)
Test 7 is where we execute, what we call, a category defining lightning strike event. Like the name suggests, the “lightning strike event” is a high impact event, placed strategically for the highest impact within the target market eco-system’s domain, which is unashamedly self-promotional in nature, to declare in no uncertain terms that there is a new innovation in the market, that it comes with a new rule that must be adopted to realise its value, and one new emerging king in town, and you’re it. Test 7 seeks to ensure the new way is associated with the new king (you), and a lack of recognition of ownership of this new way, means a failure for us, even this close to real success.
Igniting the market, and establishing your dominion in the minds of your new market is what test 7 is seeking to do, and should you achieve this, then all that remains in the journey to become an emerging new market category king , is to, well pass the final 8th test… so let’s get straight to it….
TEST 8: WoM Test
We’re at test 8 guys, or aspiring kings more like, and the moment of truth has arrived. Let’s cut straight to the chase…we have proven there is a large new market category, into which you can become a must-have. Your product does what it says on the box, your offer to the market is frankly, un-refusable, and the market is quite interested.
Now the market needs to actually pull it out of your hands, so to speak, through a powerful word of mouth, so your compound sales growth rates and satisfaction levels tip the system in your favour, and you’re ready to scale big time. Anything less that this, and we have not achieved our ultimate objective, not to mentioned the predetermined valuation and successful series A investment round we are have aimed for.
This final test calls for the “growth hacker test” to be performed, the ultimate PCF test, which measures the power of word of mouth, where more, where more than 40% of your repeat customers signal that your innovation is now considered a certified must-must in their lives, and would be devastated should your product become unavailable.
With growth rates and customer satisfaction levels high as a result of testing positive in the last and final 8th test, we have now reached product-category fit, and can claim to have become an emerging new market category king, ready for scaling and hopefully move on to become an established king, and in due course, a dominant king.
Well done, your journey in the MCG is now complete, and our work here (certainly in this phase) is done, with the next high potential startup being invited into the MCG, and so on.
Thank you for following our product-category fit journey, describing the journey to becoming a new market category king
For further information, a chat with one of our PCF experts or details on a local MCG, please go to www.tmaragroup.com and we’ll set up a call or a coffee at your convenience.