Category: strategy

Most Expensive

Posted on by Steve Sammartino

There is a real dichotomy emerging in most consumer markets. Ultra cheap and ultra expensive. Although it’s fair to assume that something that is 3 times the usual price should have three times the utility, chances are things aren’t so symmetrical.

In real estate a house that is twice the price is often 4 times the size and far more than twice as good. However in consumer goods, something that is 3 times more expensive, might only be 50% better.

Maybe the fact that it is the ‘most expensive’, justifies the price. The price becomes the defining feature.

Bugaboo pram

A great example of this is the Bugaboo Pram. I am sure they are better than the average pram, but how much more effective are they in real terms? Are we really going ‘off road’ with our bundle of joy? Or do we want to advertise to the world that we have spent as much as possible on a pram for our child?

Trust

Posted on by Steve Sammartino

Today I remembered why brands like Kraft, Nestle, Heinz, Kleenex et al have done so well. It’s because they were trusted. Trusted to deliver a remarkable product experience. The problem is, that what was, remarkable in 1963 is no longer remarkable in 2007.

Their trust was built on being safe, reliable, to have function and form. We wanted to feel confident that our cheese slice was safe to eat, hermitically sealed, made with quality milk, that the factory was clean. But now, that’s just table stakes. Cost of entry. The government has created laws which raise the stakes for remarkable products. This is a good thing. Raised standards on all things makes life better, but it does make entrepreneurship harder.

The problem is that trust has been abused by yesterdays’ heroes. Their products are still safe, but they took out all the good bits to make it profitable. Kraft Singles have reduced the cheese in them to the point that they are officially known as ‘Cheese Spread’ – check the label.  

Trust is great, but if we abuse it, we leave the door open for those who are authentic.

4 weeks

Posted on by Steve Sammartino

Ask yourself this. Could you get your idea to revenue in 2 to 4 weeks?

You’ll be glad you did when it takes 4 times longer than you thought.

Some context: a 6 month idea, becomes 2 years. This is 2% of your life if you live to 100.

Consumer Promotions

Posted on by Steve Sammartino

Consumer promotions simply don’t work anymore, they’re old world. Bribing your audience with the allure of a car or holiday won’t build your brand, rather damage it.

 They remind me of the kid with no friends who bought companionship because they had a motorbike or pony. There is a sense of desperation.  Occasionally someone will end up liking what’s really on offer (the person / the product), but more often, once the offer disappears so does the loyalty.Motorbike

If you’re thinking of running a consumer promotion on your start up, maybe you should think about improving your business model. Reinvest the money and time into your proposition. Something is wrong.

Single Minded Proposition – V 2.0

Posted on by Steve Sammartino

There’s nothing more powerful in marketing than this. It allows the other important things to happen. Like being remarkable, sexy, premium, eyeball worthy, first, functional or ‘the’.

There’s another reason it counts. It makes the un-fun part of a start up easier. The administration. It’s far easier to do all the non audience stuff when you only do, make or sell one thing. Accounting, banking, inventory management, production, tax, supply chain, warehousing, distribution, invoicing et al… all become less arduous.

Then we can focus on the stuff that really matters.

Rainmaking

Posted on by Steve Sammartino

In the movie The pursuit of happiness, there’s a seen where the main character asks a successful Ferarri driving stock broker his secret. He replies with two things, “People and numbers”

 pursuit-of-happyness.jpg

 

What it doesn’t mention is the subtlety of this statement. It’s actually about numbers ‘of’ people. It’s the art of rainmaking.

The most important role in any start up is your ability to make rain. (read here sell). It can only be done by hitting the pavement and phone. Our technical and strategic brilliance will need to the back seat for a while. Especially in launch phase.

Success ratios aren’t nearly as important as the number of calls we make. The former improves when we focus on the latter. 

Problem or symptom?

Posted on by Steve Sammartino

Climate change is regarded by many as the biggest problem facing the global community.  It’s an issue that is unlikely to be resolved any time soon due to the fact the climate change isn’t the problem. It’s actually the symptom. The problem is excessive consumption.

Shopping trolley

Everything we do (consume) happens to emit greenhouse gases. Driving, eating, buying, mining and buildings all consume energy and resources being manufactured, delivered and used.  Governments and corporations are unlikely to encourage reduced consumption because apparently, growth is good.

It’s no different with early stage business development. If you’ve got an issue make sure you focus on the problem, not the symptom, or you’re unlikely to solve it.