Hey there! Its been a while since I last put something out here. Really, its been a lot lately. That didn't stop me from learning though. Some months back, I learned about GTM strategy. I decided to pick a brand that "I think" they are struggling to build a strategy that will help reinvigorate it.
I decided to chose Chaka to experiment my learning (this is because compared to their competitors, I believe they can certainly do better).
Chaka is a Nigerian digital investment platform that provides access to local and international stocks, ETFs, and other investment products.
Founded in 2019 by Tosin Osibodu, a Nigerian entrepreneur with a background in finance and technology, the product was launched with the aim of democratising access to global investment opportunities for Africans, particularly Nigerians. Chaka partnered with Citi Investment Capital Ltd, a licensed Nigerian stockbroking firm, to provide brokerage services and access to the Nigerian Stock Exchange.
In November 2019, Chaka secured pre-seed funding from various investors, including Microtraction, and launched its platform to the public in the same year. The company went on in 2021, to raise $1.5 million in a seed funding round led by Breyer Capital, a Silicon Valley-based venture capital firm.
In the same year, Chaka announced its expansion to other African markets, including Ghana and Uganda, as part of its efforts to provide Africans with access to global investment opportunities.
Since then, Chaka has also partnered with various local and international financial institutions to provide its users with access to investment products such as stocks, bonds, and ETFs.
The digital investment platform industry, where Chaka operates, has a significant global market capacity, which is expected to continue growing in the coming years. The growth of the digital investment platform industry is driven by various factors, including increasing demand for investment products, the rise of mobile and online technologies, and growing interest in global investment opportunities.
According to a report by Statistica, it is forecast that the global online trading market will increase at a global compound annual growth rate of 6.4 percent per year, increasing to an estimated 13.3 billion U.S. dollars in 2026. This is from a base of around 10.21 billion U.S. dollars in 2022. This suggests that the global market capacity of the digital investment platform industry is significant and is expected to continue growing in the coming years.
In Africa, according to Statistica, the total transaction value in the Digital Investment segment is projected to reach US$28.45bn in 2023. Total transaction value is expected to show an annual growth rate (CAGR 2023-2027) of 15.48% resulting in a projected total amount of US$50.60bn by 2027.
In the Nigerian market, where Chaka is based, the digital investment platform industry is also growing, with increasing demand for investment products and services among Nigerians. According to a report by Statistica, the total transaction value in the Digital Investment segment is projected to reach US$2.93bn in 2023. The total transaction is expected to show an annual growth rate (CAGR 2023-2027) of 17.58% resulting in a projected total amount of US$5.60bn by 2027.
Overall, Chaka is operating in a growing industry with significant global and local market capacity, and is well-positioned to tap into the growing demand for digital investment platforms in Africa and beyond.
The ultimate goal of any product is to sell to users; either businesses or final users through whichever distribution channel. It is important to understand where Chaka currently stands amongst their peers. We will be considering factors like app downloads, social media followers, hype and SEO ratings as a measure of their visibility.
Though when the Guardian in 2022 published an article on "10 legit investment platforms in Nigeria with best interest rates," Chaka didn't make the list, we will pinpoint 3 other products from the list which are notably Chaka's competitions. They are Risevest, Bamboo, and Cowrywise.
What channels are the guys using to distribute their product and what are the results like? Let's look at Playstore for instance, while Chaka and Risevest stand at 100k+ downloads each, Cowrywise has 500k+ and Bamboo currently has 1M+ downloads.
On Twitter, which has now been adopted by many companies as a channel to promote their product and communicate with their users, Chaka currently has 10.8k followers, Risevest, 34.9k, Cowrywise, 43.4k followers and Bamboo, 50.2k.
A go-to-market strategy (GTM strategy) is an action plan that specifies how a company will reach target customers and achieve competitive advantage. The purpose of a GTM strategy is to provide a blueprint for delivering a product or service to the end customer, taking into account such factors as pricing and distribution. A GTM strategy is somewhat similar to a business plan, although the latter is broader in scope and considers additional factors like funding. Proper positioning, sales, pricing and distributions are factored in a GTM strategy.
6 things are, importantly, done in a GTM Strategy.
- Clarify your value proposition
- Identify your target market
- Define your pricing strategy
- Craft your promotion strategy
- Choose your Sales and distribution channels
- Set metrics and monitor performance
Chaka's value proposition is centered around offering access to diversified investment opportunities to Nigerian retail investors who may not have had access to such opportunities before. Specifically, Chaka's value proposition includes:
a. Access: Chaka provides easy access to investment opportunities in Nigerian and global capital markets through its platform, enabling users to invest in various assets such as stocks, bonds, ETFs, and other securities.
b. Convenience: The platform allows users to invest from anywhere, at any time, using their mobile devices, desktops, or tablets.
c. Affordability: Chaka provides users with low fees for transactions and investments, allowing investors to start small and build their portfolios over time.
d. Education: Chaka provides educational resources and support to help users understand the market and make informed investment decisions.
e. Security: Chaka prioritises the security of its users' data and investments through partnerships with licensed local brokers and international custodians.
Overall, Chaka's value proposition is centred around providing easy access, convenience, affordability, education, and security to Nigerian retail investors seeking to participate in the capital markets.
Chaka's target market are Nigerian retail investors who are seeking access to local and international capital markets. This includes individuals who are interested in investing in various assets such as stocks, bonds, ETFs, and other securities, but may not have had the opportunity or means to do so in the past.
Chaka's target market also includes individuals who are looking for a convenient, affordable, and secure way to invest in the capital markets. This may include young professionals, students, small business owners, and other individuals who are seeking to build their wealth and diversify their investment portfolios.
Additionally, Chaka targets individuals who are interested in learning about the capital markets and making informed investment decisions. Chaka provides educational resources and support to help users understand the market and make informed decisions, making it an attractive option for novice investors or those who are new to the world of investing.
Overall, Chaka's target market are retail investors in Nigeria who are seeking to participate in the capital markets through a convenient, affordable, and secure platform that offers a wide range of investment opportunities and educational resources.
Currently, Chaka does not charge a separate management fee. Instead, the company charges a flat fee of 1% per trade with a minimum of 100 naira and a maximum of 2,500 naira, depending on the size of the investment. This fee covers the cost of executing the trade and does not include any ongoing management fees.
However, Chaka does charge a custody fee of 0.06% per annum on the value of the assets held in a customer's account. This fee covers the cost of holding and safeguarding the customer's assets in a segregated account with a licensed local broker or international custodian.
This is a penetration pricing strategy, it is competitive enough and should be maintained because it holds up well against the competitors' pricing structures.
a. SEO contents: Web traffic is an effective way to gain more exposure for your business, and SEO is an important part of driving consumers to the brand's website.
b. Social media: Chaka should be particularly present on Twitter and Instagram. Chaka's account should be promoted and should jump randomly on conversations. The account should be as friendly as possible.
c. Referrals: Rewards should be given for referrals. Users should have a unique code that they can share to new users. The code owner will earn when the referred users make their first deposit.
d. Partnerships: Chaka should partner with organisations and businesses to have their employees use the product.
e. Loyalty: At intervals, the company should be rewarding loyal customers with perks and coupon codes.
f. Contests: The company should organise contests to drive engagement and create awareness every month.
g. Giveaways: The company should be doing random giveaways on the social media pages.
The company should use a hybrid distribution channel system. Users will be able to download the product directly from the website and from the app store or playstore.
a. At least 5,000 followers per month
b. At least 10,000 sign ups per month