Market fit is making products available in the market where customers start buying. but more than a product to market there are lots of synergies to build where things go with it.

1. Market Fit in Startup Ecosystem –
An Evolved Definition & understanding
Marketing needs innovation and some out of box thinkers. As marketers, we always
invent, think and execute new things where we try to establish our products at the
retail front-end. During our academic hours in management institutes, we were
taught that a permanent journey plan (PJP) of a product passes through retailers or
intermediaries being an important channel in the ecosystem, and when space is
available to us for placing a product then we assume that we made our product-
market fit. Further, we get ourselves ready for scale and expand to other areas.
Things change with time, so it is happening in current market practices, Many
terminologies were used which over time changed. I am sure many marketers seldom
heard about following words 10 years back.
Hyperlocal, Last-mile connectivity, Omni-Channel, Retail Ecosystem, eB2B,
Social Commerce, Otif, Disruption, Angel, Bootstrap, Burning, Minimum Viable
Products (MVP), Shadow WHR, Dark warehouse, Hubs, CM-1 & CM-2, Supply
chain Aggregator, Many more in technology
Things are not new to us but there is a big gap now as things changed differently as
an approach comparing things with ground realities. New thoughts bring new
changes in the business ecosystems but they can not change the inherent
fundamental of any business. Same way when we talk about market fit, in the current
scenario we should not limit it to focus on the market or territory. Now, it is all about
product, team, distribution, and market. Mainly in the startup ecosystem Market fit
has more relevance than a corporate or emerging corporate so there we should
evolve many things simultaneously.
Supply Chain terminology like hyperlocal and last mile is also a part of market fit
today. these all words emerged from a way of doing and it is " Disruption". Disruption
is business or can we placed it as market fit. Yes, it is that's why we often talk about
new things, ideas and concepts then find someone who believes in it. The startup is
all about innovation. Some brilliant people say it "make it start and scale it fast" but
it is something different and can not be easily spelt.
Market fit is covering all major aspects of marketing i.e. Product, Market, distribution
and Team and many more things are there but in the current scenario, I am adding
few things to it:
 KYM: Know your Market
 KYC: Know your customer
 KYT: Know your Team
 KYD: Know your Distributor or Distribution System

2. KYM: Know your Market first
For Market fit, first, we need to understand the market that's why it is called focus
market. We all do this exercise, yet, we have to dig more to understand the market
well that's why first know your market. It should cover complete demography,
geography, and also a deep working of a competitive analysis is required so that one
can project their revenue for the market share in coming months or years. Before
starting a business or at the ideation stage one should do deep study otherwise
chances of failures are there always. A deep understanding of the market comes from
various resources, maybe you are coming from that background or your cofounder
has such exposure, and if not then market survey agencies are there in the market.
But I will suggest that you should visit the market areas, should meet the channels
first and then should meet customers. In retail ecosystems, customers are Retailer,
semi-wholesale, wholesaler, Mandi traders, cash & carry, etc. The market is the real
teacher who teaches us very well that's why KYM is a must before moving with
products.
“Understanding ground realities is the first
foremost stage of Market Fit”
Know Your Customer - KYC
KYC is the first task before entering the market but in Market fit, I take it second
after KYM. KYM is macro working for clicking a panorama view so here before we go
for solving the large problems of our customers we should understand them well and
within time. Before that, you need to know - Who is Your Customer? if your customer
is B2B, things will go differently and if your customer is the end consumer then it will
have different aspects. here I am talking about B2B aspects so that accordingly write-
up go in that direction.
Knowing your customer is a behaviour trait. Many things vary from market to market
like Customer buying habits, demography, Regional language, size of business,
Population and density, Competition, and Trade of Terms. For ease of understanding,
Market
Fit
KYM
KYC
KYT
KYD

3. I am taking the example of Kirana Retailers. Kirana Retailer in Rajasthan more or
less selling 50% common products as customer preferences are more or less same
compare to retailer in Delhi where their 80% consumers come from different-2 region
and culture so a hyperlocal assortment of one area is different from the adjoining
area. change in the ratio of hyperlocal assortment is 80 % in Delhi. Mumbai has 70%,
Bangalore has 60% and so on but in the Eastern part of India we will find it more
favourable as less deviation has been seen in taste and culture. for our market fit we
should know our customer well then only it will help us make strong business plan
and projections. The current scenario is a little bit noisy as many minds are working
on disrupting the ecosystem via funding and so here one should always be vigilant
on every side of strategy. This will also help you to understand that how much a
customer can buy your products per month and how many customers are there in
the market who are buying such category products from competitors. This is a must
so that your revenue projects should not go wrong. A wrong projection can lead to a
blunder in the production and distribution systems which is ultimately a financial loss.
i.e. example of average per month buying from Cash & Carry or organize distributor
is appx 7K. For a single brand like HUL they have more depth but other brands like
Bajaj, Dabur, Reckitt has per retailer average below Rs. 5000 per month. Here
competitor analysis matters.
Understanding customer is one of the first work to do: Here you need to get certain
data about them: Strength, Category, size, average monthly business, and the
overall ratio of potential customers in the focus market. for example, you can expect
a certain amount of buying from all the customers as each customer has their
priorities and way of working so always take an ideal average which you can suggest
to your distributors and sales team. Based on your such micro-level working your
sales team can produce great results.
“Customer preferences are the foremost Important
Aspect of marketing where you sit in their stomach
for a shorter period but Desire go longer”
KYT: Know your Team
In the startup ecosystem, Team is one of the main ingredients which play an
important role, they ensure that execution goes smooth in the stream. It comes from
top to bottom. First of all, founders has to be aligned with the vision and should have
proper synchronization of thought process among them. The same wavelength of
thought process should flow from promoters to Peon, and it should be visible in the
ecosystem. Certain measurements are there to implement like corporate ethics from
the very beginning. If the team is not aligned with the vision and they do not mend
according to the business ecosystem then things will not move as desired. Knowing
your team is the foremost task that every founder has to take care of. Few things
need to be taken care of while recruiting department heads and middle management
level manpower.

4.  Functional level: Always recruit industry-specific and experienced manpower,
like in Sales, Sourcing & Warehousing & Logistics always enrol from the same
industry with relevant experience. At HOD level must have min 5-year
experience. Remember – your organisation is not an institute so always recruit
industry veterans.
 Business Development: Business development in any business always have
few dynamics which anyone can apt. So, here you have to recruit people who
either worked in Telecom or beverages segment. They are fundamentally
strong enough to drive any type of business development so they will help a
better uplift in a shorter period.
 For supporting department like Finance & Accounts, compliance, IT, HR,
marketing only academic and somehow relevant experience is required
because kind of work they do need pre-defined formulas and a mix of working
culture
Build a great team because they will do special things for you and help you built
a ship in a shorter period for further sailing in the market of great opportunities.
“When a great team meets a Great market,
something
special happens”
KYD: Know your Distributor or Distribution System
Distribution is a key driver of your overall profitability. The distribution system is the
foremost and integral part of any business stream, without a perfect distribution
channel no product reaches the consumers. It is a series of businesses, sellers and
other intermediaries through your products reach end consumers.
A good distributor is the first person who takes initiative, employed workforce and
logistics, risk his financials in the market and work day and night for brands. He is
the person who connects channels and changes the mindset of retailers and ensures
the placement of goods in the frontend. Brand building journey starts from him.
Without a strong and eco-friendly distribution system, we can not think about market
fit. Selection of Distribution channel is a rigid and lengthy process but the current
ecosystem is making it easier, however, it remains a low cost and owner-driven
business so everyone has to struggle a little bit. Since margin is thin in the retail
segment so most of the mid-level channels are driven by small entrepreneurs. To
make your product-market fit one has to work smartly.
Before we go for selecting the right distribution channel we must know good about :
 Products
 Market
 Middlemen

5. Being an important task you need to go smartly and should know about :
 Competitors in the market
 Evaluate Cost and Benefits
 Priorities the option
 Growth plan.
The best way to find a Distribution channel is to start your survey from retailers i.e.
the last mile, they know them very well, also area wise penetration and SWOT will
help you to understand more. No doubt, it is a time-consuming task but reliable. The
second option is to enquire with existing C&F, CFA and market leaders. If you have
the right business development guy, then 50% of the task will be done by them being
experienced in the ecosystem that’s why it is always recommended to enrol industry
specific manpower.
Establishing a reliable distribution network can therefore be
a strong competitive advantage and help your business stay competitive. Some of
the main benefits of a distribution network are reduced costs, more transparency and
collaboration, wider customer reach and faster growth (source: https://www.mixmove.io/blog/what-is-a-
distribution-network)
Making a product market fit is a challenging task for every organisation but without
it, no one can think about building a brand. It is advisable to align first focus market,
focus consumer, your team & distribution Channels.
A Beginning – Brand