Getting a consumer durable brand in the market meant significant investments in distribution, on-ground displays, marketing and everything else that was traditionally associated with the launch of a consumer durable brand.
I.e. creating a consumer product brand required large capital, and therefore was not something that new and emerging entrepreneurs without access to capital could aspire to do.
Xiaomi just debunked that theory with a model execution of a creative & unconventional strategy.
Without opening a single store, without keeping the products on shelves in physical stores, without spending on advertising, this China-headquartered company has already become the world’s 3rd largest handset manufacturer in just under 3 years time since launch.
Continue reading “Guest Post – Building a Consumer Product Brand with Virtual Infrastructure: Going the Xiaomi Way”
That the Ice Bucket Challenge was a huge marketing success is a given. How it actually benefited the non-profits working for ALS, is a subject of debate with quite a few dissenting voices.
However, as an entrepreneur, here’s what I learnt from the campaign.
- Specificity of action AND cause, help. One without the other perhaps might not have been as successful. Take the case of the imitator ‘rice bucket challenge’ where people were asked to donate a bucket of rice to the needs. Worthy cause, but was not specific.
- Making a task ‘fun and enjoyable’ is NOT trivializing the cause. To me the ice bucket challenge illustrates that doing something fun, even when you are promoting a serious cause does not undermine the seriousness of the cause or the intent. (As an entrepreneur and marketer, this could apply to any company as well. When could we see a stock exchange do a ‘walk the ramp’ challenge for companies where managements walk the ramp in office with their colleagues cheering & joining, and they challenge someone forward to do it.).
- The task has to be relatively simple AND ‘doable’ to get wider participation. I mean, just think of why the rubble bucket challenge / mud bucket challenge did not get the same response. Imagine how challenging it would be for most people to (a) find a bucket of rubble and (b) remove all that rubble from your hair. I simply seemed impractical, though the cause was worth supporting. (To me, the message is: don’t ask others to do that you would not do yourself.)
- People want to be SEEN doing something good. The ‘pass it forward’ aspect AND the videos were critical to the success. I don’t think 99.9% of the people had any particular soft corner for supporting ALS. But being SEEN as participating in something good was cool. (I know a few friends who will say this is a case of sour grapes as no one invited me to do the challenge).
But, hats off to the team. Great job done. Keep pouring.
(PS: there have been loads of twitter jokes on this as well.. here’s my favourite on ‘I have been doing the ice bucket challenge for years. But the ice gets over after a few drinks’. Keep walking.)
References – Image Source
“Research is formalized curiosity. It is poking and prying with a purpose. ”
Zora Neale Hurston, American author
Scene 1 : A couple of years ago
You or your visionary team have a great idea for a new product!! It ‘feels’ like the answer to everyone’s problems! It will definitely be a big hit! So you get your creative heads, product designers, technical staff and experts all into a tizzy! The product must be ready in next 6 months! After hours and hours of hard work, there it is – to take the consumers by storm. You launch it with big fanfare!!
Scene 2 : Cut to the present
The ‘great’ and promising product was ‘great’ only on the drawing board! Your negative inventory is piling up; there are just not enough takers!
What went wrong?
The consumers just didn’t connect with the product or the price point was wrong or the brand personality did not appeal or the communication was not clear or the distribution was poor or the value-proposition was not meaningful!! There are a number of things that can have a very different response in the market, than you had imagined it. Continue reading “The Importance of Market Research”