Category: Innovation

The symmetry of hindsight

Posted on by Steve Sammartino

We’ve all read the stories about how great start ups and emergent brands got their mojo. In hindsight it always seems so strategic, symmetrical and single minded.

 

This issue is hindsight. It will be something single minded and symmetrical that works. The problem is this: If we’re single minded from the start, and we get it wrong where does that leave us?

  

An old Chinese fishing proverb applies here: Cast the net wide.

 

Try everything.

Try everything quickly.

Find something that works.

Then stick to it in a single minded fashion.

 

Contrary to most modern marketing and entrepreneurial theories, we need to ‘get single minded, not start single minded.’

 

We never read about the 100 things any hero brand tried and failed with, only the winning strategy. So it all seems so perfect and well thought out. The truth is, most of the strategic wisdom arrives in hindsight. The more things we try, that greater probability we have of stumbling upon the right strategy – the one that works. But we should never fall in love with the plan before we commence.

 

It will all seem very strategic, symmetrical and single minded in hindsight.

Consumer benefits

Posted on by Steve Sammartino

Marketing expert Ben Rowe was ahead of his time on the Gillette Fusion launch, as can be seen here.

 

The jury’s in. For the first time in their illustrious history, Gillettes latest innovation hasn’t become their best seller. Gillette Fusion 5 blade razor launch has failed for two reasons. I speak with authority as a former employee at Gillette.  

 

Reason 1: We don’t have a shaving problem

Reason 2: Innovation and research are not consumer benefits

 

 fusion-2.jpg

 

Reason 1 details:

The Gillette Mach 3 and its various spin offs have made shaving about as good as it can get given we are running a sharp blade across our faces. We no longer have a shaving problem. It’s smooth, safe and comfortable. They’re trying to fix something that doesn’t need fixed. In this situation very few people will trade up, before we even consider the price premium they’re asking.

 

Reason 2 details:

8 years of shaving innovation and research doesn’t translate into an actual consumer benefit. It’s a diary, not a benefit. They’ve even placed stickers on other Gillette shaving products trying to convince consumers to switch. We won’t.

 

In the early days the Gillette strategy of obseleting themselves was a good one, but no strategy works forever, and there is always a point of diminishing returns. Seems Gillette has reached theirs.

 

Start up lesson: If your innovation doesn’t solve a problem or significantly improve the consumer experience, you haven’t got one.

Keeping promises

Posted on by Steve Sammartino

We’ve recently challenged ourselves at rentoid as part of our clustering strategy. We promised our members in ‘Melbourne Australia’ that rentoid has ‘anything’ they could possibly want to rent. Especially given our moniker for Rentoid is “the place to rent anything”. The promise can be seen here.

 

Some may think this is crazy. The fact is we couldn’t possibly have everything available for rent. But that’s where the depth of idea is:

 

Here are the possible outcomes:

  • People search Melbourne and see the depth of items for rent.

  • They may find what they need, or not.

  • If they don’t, we have promised to find what they need.

(unless they ask for something like elephant tusks!)

 

We’ll find what they need by asking other members if they have it, or we’ll find it through other means. In short we’ll keep our promise. We’ll find them what they need. 

 

The idea ensures we stretch ourselves to serve our customers and it gives us an authentic way to create a positive customer experience. Which we hope they’ll talk about.

 

If you’re in Melbourne, test us!

Zingara Cucina

Posted on by Steve Sammartino

In Australia there’s a great example of a non technology firm going viral.

Zingara Cucina – Italian for Gypsy Kitchen.

 zingara.jpg 

Here’s a short summary:

  • You can’t make a booking – you must be referred by a previous diner
  • They have only one sitting per week
  • The location is a mystery – from the exotic to the rustic.
  • The menu is also a mystery (location & menu both change weekly)
  • Diners are advised by text message of where to go shortly before the ‘event’

A more detailed report is here.

 

As you guessed, it’s the hottest restaurant in town. The only trick is finding it!

Thanks for getting in touch!

Posted on by Steve Sammartino

Got this email back from a company that sells custom t-shirts on the web called Neighbourhoodies after I sent in an email query. 

Dear Steve,

We at Neighborhoodies think Curiosity is an underrated virtue, so thank you for writing in. This email is merely to confirm that your question or comment has been successfully received. 

Here is your ticket number:

 http://www.neighborhoodies.com/ticket_view.php?tlid=8L4Q4I 

Ticket Number: 8L4Q4I0s3E8uxyt  

It is a meaningless number and you do not need it. Nevertheless, please print out this number, memorize it, then shred the number into pieces and eat it. Chew first. If at that moment your phone rings, it’s us. Let the phone ring twice then speak the code in Swiss-German, or make guttural sounds to indicate you are choking on the shredded bits.

Thank you. 

Sincerely, Neighborhoodies 

It tells me so much about them, their values, that they’re human and they have a sense of humour. All the things that ‘real people’ have and corporate facades do not.

Cost – zero. Value – infinite.  

Kudos Neighbourhoodies.

Tomorrow’s hero brands

Posted on by Steve Sammartino

I’m not about to define a brand, I’d be wasting your time as there are plenty of marketing books to do that. I am about to talk about some qualities that many brands used to have, and more importantly the features that tomorrow’s hero brands do have.

 

function first

reliable consistency

craftsmanship

thin product range

you’ll travel to buy it

limited distribution

you found out about it by recommendation

limited if any advertising expenditure

no external branding

you don’t care if people don’t know your using it

often founder defined

 

An example for me personally is Herringbone shirts. A Sydney based shirt company. Their specialty is shirts. herringbone-shirt.pngherringbone-shirt.png

 

herringbone-shirt.png

They’re expensive, but the quality is remembered long after the price is forgotten. Only those who have one would know you’re wearing it. We know the cut, the feel, the fabric and they just sit like quality garments should.

A lot of global brands once fit the above description. Then due to the brand’s own success they simply became ‘corporations’. Once this happens, the rot sets in. They go public, product ranges get expanded, the founder loses control or sells out (as they deserve to), production is outsourced, quality is compromised, distribution is expanded, branding becomes overt and crass, sales targets must be met, prices get cut, customer basses expand, the product adapts to the larger vanilla consumer…. – rinse and repeat. Until their core consumer moves on.

Outrageous commercial success often predicates a brand’s inevitable decline because it is hard to retain the focus that drove the success in the first instance.

What is your – yesterday’s hero brand?

What is your – tomorrow’s hero brand?

Top 10 movies for entrepreneurs

Posted on by Steve Sammartino

While goofing off watching cable, a great entrepreneurial movie came on – it reminded me of life in a cubicle. So here’s the startup blog top 10.   

  1. Startup.com (great documentary)
  2. Pirates of Silicon Valley (cheesy but insightful)
  3. Office Space (the motivation to escape)
  4. Fight Club (bootstrapping, viral marketing)
  5. The Corporation (don’t act like ‘em)
  6. 7 up Series (life’s journey, dreams & failure)
  7. Prison Break (strategy, contingency, alliances) only TV exception!
  8. Jerry McGuire (the courage needed)
  9. Wall Street (the game – politics of money)
  10.  readers choice…

Feel free to add what number 10 should be in comments.

(in case your wondering the movie was Office Space)