Category: Marketing Insight

Maxjet bites the dust

Posted on by Steve Sammartino

Another business class only airline has bit the dust – Maxjet. You may remember our view on why Ozjet failed.

And on this occasion we have a similar theme, but not quite as extreme. Maxjet had some of their act together and survied 4 years. Like the right routes, nice inflight service and an airline lounge. But it still had a few key flaws which still leaves the question unanswered:

maxjet-767.jpg

Is a business class only airline a viable business model?

Start up blog says: We won’t know until someone ticks all the following boxes:

  • A new and modern fleet (18 year old 767’s don’t cut it Maxjet)
  • A cabin which is world best practice business class (Flatbeds are now the benchmark Maxjet)
  • Linked to premier frequent flyer program which links to other airlines and allows code sharing (One World / Star alliance)
  • It has international & domestic coverage in it’s home market
  • Flights every hour / a large fleet
  • It has the right level of ground service (Airport lounges / chauffer service)
  • Credit Card linkages

Maybe the business class only model could only work as a sub brand of a larger network (which Lufthansa is doing). It will be interesting to see how the remaining players net out (Silver jet & Eos)

 maxjet-interior.jpg 

Insight?: Maybe people who regularly fly business class enjoy looking down on those in coach too much to leave their multi class carrier!

I’d strongly advice against starting an airline. But if you must, show your VC’s this blog entry first.

The experiment – Joseph Jaffe

Posted on by Steve Sammartino

JJ of Jaffe Juice is running an experiment to test the theory of his new book – Join the conversation. And it’s this:

Use new marketing to prove new marketing (or UNM2PNM for short)

The underlying thinking is that he use the approaches discussed in the book to promote it – hence providing a proof of concept.

So he’s given 150 books to bloggers and the like (me included) who’ll review it and ‘start the conversation’ – good bad or ugly. So when I get it, I’ll review it right here on start up blog.

  

It’ll be an interesting experiment to see how the book does in market.

‘Game changing’ – Nintendo Wii

Posted on by Steve Sammartino

If anyone ever needs proof that the market leader can be given lesson, Nintendo provides this.

 

From a brand which dominated the 1980’s with handheld games and fell into relative console obscurity during the 1990’s it’s comeback has been astounding as has the performance of the Wii.

And it’s all based on simple consumer insight:

“Games everyone can play”

  

A direct quote from their current advertising. Enough said. 

  

 nintendo-wii.png

  

They are clear console market leader now in Australia. Overtaking the previously thought ‘unbeatable’ Sony Playstation franchise. No incumbent is ever safe. This maxim will only increase in relevance over time.

Often we build complexity into things because the technology allows it. We are better off focusing on what makes sense for the end user, not what’s possible.

Chris Anderson of Long Tail fame has been espousing for a long time that the future of gaming is not in the console, but the controls. He’s obviously ahead of his time.

Start up lesson: The offer with the best user experience, always beats the offer with the best technology.

Google Alerts are rad !

Posted on by Steve Sammartino

As a courtesy if I ever blog about anyone (good or bad) I let them know it’s there. I did this recently about Neighborhoodies.

  

The founder Michael sent me an email back saying – “I already know… Google Alerts baby! Thanks”.

  

I’ve since set up on things which are of interest to me. It saves me a great deal of time, which at present is my most scarce resource.

  

The really cool thing is it’s better than an RSS feed, because it’s the google bot doing all the hard work crawling the entire web for you. Every nook and cranny.

  

All start ups should set some up on topics of interest; themselves, their startup, their industry, their competitors, their whatever….

google-alerts.jpg

Click on the image above and go straight there…

Do it. Go now. Bye.

Don’t be like Wikipedia

Posted on by Steve Sammartino

Firstly, I love Wikipedia. To quote Cameron Reilly – Everything I know I learnt on Wikipedia.

But the times they are a changin’ – says startup blog.

 wikipedia-logo.gif  

Wiki is at risk of losing the advantage which made it what it is today.  Nat at Pure Caffeine pointed out on Twitter that; “Wikipedia [is not about] creating pseudo structures of what is ‘acceptable’ scholarship”.

 

We couldn’t agree more. Wikipedia is at risk of losing its competitive advantage through moderation of articles by letting the ‘sanctioned few’ decide on what deserves an entry in the peoples encyclopedia.  

 

Correct me if I’m wrong, but…

isn’t that what Wikipedia opposes?

isn’t it “up to the market” to decide”?

shouldn’t we all have equal moderation rights?

  

Pull your socks up Jimmy Wales.

  

Start up lesson – when something makes you successful – Stick to it.

Don’t let bureaucracy destroy the basic premise of why you made it. Fight the temptation to moderate, assimilate, hydrate your proposition.

Big Ideas

Posted on by Steve Sammartino

There is no such thing as a big idea.

All ideas are the same size.

Because ideas only exist metaphysically.

An idea that really works, becomes a big idea (after we proved it).To find a big idea, first we need lots of ideas (of which all are the same size). The ideas that worked didn’t have an advantage over the other ideas. They we’re all equal, but maybe other stuff happened to that idea.

Maybe we nurtured it,

maybe we believed in it,

maybe we developed it better,

maybe we tried a bit harder,

maybe kept pushing it,

maybe we modified it slightly,

maybe we resisted the temptation to modify it…

 

….maybe that idea had an advantage because of the way we treated it?