marketing Archives - Page 24 of 56

The truth about small fish

Posted on November 30, 2010 by Steve Sammartino

When starting out or chasing new customers on an existing business it makes sense aim for smaller players first, to build confidence, and get a few small wins on the board…. right?

The problem with thinking like this is that it makes life harder and less profitable.

The truth about small fish, is that they are harder to catch than big fish. They’re more elusive than the big guys and are often much harder to convince to invest their money in whatever we are selling. With the small fish the decision is often about whether they should invest their money or not. The advantage of the big fish, is that the investment funds are usually allocated, it’s more a question of doing business with company A or company B. From a revenue perspective it’s far wiser investment of time to court a customer whose decisions to invest are already made. A $10,000 customer is harder to get than a $1,000,000 one.

The other factor worth considering is our reputation. If we become successful selling to the small players, we’ll be seen as a small solution provider. But if we land a big one it gives us a license to knock on other big doors. When the investment is time, its worth chasing the bigger reward, and the truth is that it’s often an easier sell job.

The infrastructure disadvantage

Posted on November 29, 2010 by Steve Sammartino

I was really excited to read about the new Eday hatch electric car which will be launched in 2012. It’s very cool for a few reasons including: It’s price is under $10,000. It’s an Australian startup. They are IT focused, not automotive focused. All the major functions are controlled electronically. It’s also the first eco / electric car option which isn’t priced at a premium, so it’s a total game changer.

What I find most interesting in the article is the advantage of zero infrastructure. When industries go through significant change as the automotive industry is, existing infrastructure can be a major disadvantage. Not only can it define how things should be made, but it also has the added burden of it needing to be supported financially. It demands asset utilisation and so limits the potential for a real change in product output.

The only way to innovate in an industry is to re-imagine the best way to build something from scratch. To ignore what we know about the incumbent mode of operation and create a new one. It is examples like the Eday that should inspire entrepreneurs to believe that that no company or industry is all powerful.

Visual Orgy – Retail

Posted on November 26, 2010 by Steve Sammartino

This is an amazing piece of creative work from H&M at a new retail store launch in Amsterdam. Check it out below.

[youtube=http://www.youtube.com/watch?v=2W6Eabefezg]

The same theme shines through again. Creativity wins. The production costs are clearly much less that the creative input. I wonder what other startup brands could use the visual projection idea to make something worth sharing on the web?

A Tiny Twist

Posted on November 16, 2010 by Steve Sammartino

Today I sent this tweet which got quite a bit of comment:

There were over 400 video sharing websites when Youtube launched. Often it’s smarter to do it better, than build something new.

Immediately after the tweets started coming through about other businesses which entered the market late and taken a strong hold’.

The most recent example for me is Instagr.am

It’s ‘another’ photo sharing platform to add to the long list of mobile apps for doing just this, including but certainly not limited to Flickr, Twitpic, Yfrog, img.ly, Mobypicture…. I’m sure there are hundreds.

Next thing I knew all the photos being shared on my tweet stream had all converted to the Instagr.am format – so I had check it out. Turns out Instagr.am added a tiny twist which enabled it get busy with the ‘in’ crowd. By simply adding a filter feature, it made photo sharing a whole lot more fun. What filter does is transform the pic and stylise the look to give a retro feel, add few scratches and a white Polaroid frame and you’ve got the hottest new pic app on the entire web. It’s easy to use, and once again photo sharing has been reinvented.

So what’s the lesson here?

Design matters. In fact design is the thing that wins in the long run. Humans like things of beauty. It is coded in our DNA, we prefer the beautiful. Side note: beautiful is both usable and and nice to look at, it must have both.

Existing Market. Sometimes it’s easier to build a better version of something people are using, than to invent a new market. We don’t have to invest time convincing people it is worth participating. Rather, we just need to show them why we are superior. In an industry like we apps where the switching barriers are so low usability and design are often the catalysts for this to occur.

The question for startups is this: How do we sustain a leadership position against the next tiny twist?

Why Krispy Kreme failed in Australia

Posted on November 3, 2010 by Steve Sammartino

No doubt you’ve heard the news about Krispy Kreme going into administration in Australia. Many people seemed surprised at the news given it was a such a successful launch. But when we look a little closer it’s pretty clear why they failed. They broke a few simple retail rules which are worth considering.

Why Krispy Kreme failed:

Firstly, they failed to understand that in this country they needed to operate as a specialty retailer. Instead they opened 50 stores in a few short years. When Krispy Kreme first opened their doors in this country (Sydney) it was a real treat and the store became a destination outlet. People would travel many miles to the store to buy a dozen doughnuts. You’d even see people returning on airplanes at Melbourne airport with big bags of Krispy Kreme doughnuts. It suggested that Kripsy Kreme had a strong novelty value in Australia. But it can be very misleading when people from wide spread geographies come you as a retailer of non essential items. Contrary to what the ‘spreadsheet’ might intimate, it’s rarely a good idea to take your retail offer to where they live.

To give you some perspective of the expansion folly, let’s consider this:

USA has 224 store serving population of 311 million. (1 store per 1.4m people)

Australia had 50 stores serving a population of 21 million. (1 store per 420K people)

The numbers are mind blowing and it doesn’t even take into account our vastly different food cultures.

The expansion was far too wide far too quick, and KK didn’t allow enough time to understand what their sustained demand would be prior to expansion. No doubt the temptation to expand rapidly during growth would be tempting, but sometimes the best decision we can make is to limit distribution and keep the brand exclusive.

The authentic phone message challenge

Posted on October 16, 2010 by Steve Sammartino

I’ll start by saying the concept of getting customers to “hold” on a telephone is a pretty bad idea. Then I’ll tell this story….

Today I was on hold for Optus telecommunications, which gave me a reasonably standard phone message:

“Your call is important to us. At this time we experiencing high demand for our telephone support staff, and we’ll be with you as quickly as we can. Please hold the line for the first available operator.”

Here’s what I seriously would prefer to hear:

“We’ve made a deliberate choice to only have X number of people to answer our phones. They are incredibly expensive and having any more than this would impact our profit too much. We’ve done studies which have worked out the number of people that hang up for waiting too long, and how much revenue the average phone call generates or loses for us. The number of people employed to answer our phones is just about optimal. We check this every few months. The average wait is about 5 minutes, so it’s a cool idea to put the phone on load speaker while you wait. Then you can do other stuff. If we answer and you’re not at the phone immediately, we’ll do you the the same favour of waiting a bit while you run to the phone to talk to us once we actually answer. We hope you appreciate our honesty. We reckon it’s better than giving you a load of shit that tells you how important you are. Cheers.

And so the challenge goes out to any startup or business is prepared to develop the worlds first authentic phone message be sure to let us know here at Startup blog so we can spread the awesomeness.

There’ll also be a prize for the best comment with a phone number to a company that has a message of this ilk – and the prize is $100 Amazon gift voucher.