Finding the Sweet Spot Between Mass Market and Premium

Harvard Business Review

Persuading consumers to pay more for a product by introducing some kind of “premium” element into it has always been a challenging task—but it was one that big, established brands had managed with a reasonable amount of success until recent years. For example, Breyers, the ice cream brand, recognized that the gelato market was booming, but that super-premium gelatos were selling for 2.5

At the High End, Reaching a Mass Market

Harvard Business Review

It is inclusive, an "art fair for the masses". In 2006 Peter Gelb, general manager of the Met, introduced a revolutionary new offering for the 130-year old opera house: broadcasting its performances live in high-definition to movie theatres across the world.

Corporate Entrepreneurship: Turn Irony into Opportunity

In the CEO Afterlife

I went in assuming his students believed corporate management and entrepreneurship were principles of contradiction — the only contrarians would be members of the flat earth society. The brain viewed the masses below it as the muscle.

Three Ways Leaders Can Improve Decision Making

Lead Change Blog

In 2007, the company had a market cap of USD303 billion and manufactured four in ten of every mobile phone purchased. However, within five years the company lost 90% of its market share to Apple after the launch of the iPhone. The little-known fact is that Nokia had invested USD40 billion into creating a similar style iPhone device with color touchscreens, maps and shopping but the product never hit the shelves as management thought it would not have mass market appeal.

The 5 Habits of Mind that Self-Made Billionaires Possess

Leading Blog

Imagine what Atari might have achieved if Steve Jobs had stayed there to develop the first mass market personal computer. Focusing on the competencies of today is exactly what causes companies to get stuck in the markets they serve and the products they deliver now, with little eye for the shifts and innovation they will need for tomorrow. The key imperative for management is to differentiate between opportunities that need a Performer and those that need a Producer.

How I Discovered My Leadership Secret Weapon

Terry Starbucker

As another calendar year drew to a close, while our cable TV company was buoyed by better sales numbers as a result of new service activations and stepped up marketing, we were still struggling to reverse a downward overall trend.

The Entrepreneurial Corporation: Oxymoron? | In the CEO Afterlife

In the CEO Afterlife

I went in assuming his students believed corporate management and entrepreneurship were principles of contradiction and the only contrarians would be members of the flat earth society. The giants dominated markets and gobbled up competitors; they also failed to cope with rapid change.

CEO 173

Why Dominating Your Category Can Be a Flawed Strategy

Harvard Business Review

Of the many contributions Jack Welch has made to business wisdom, one of his most famous was “Be #1 or #2 in every market.” General Mills actually grew from #2 to #1 in market share the last few years. ” The first problem is it encourages managers to focus most of their attention on market share and not enough on the category itself. Being number one in a declining market isn’t a great place to be. steven moore for hbr.

The More Experience You Have, the Worse You Are at Bootstrapping

Harvard Business Review

But a new study on Hollywood producers in the Strategic Management Journal reminds us that it’s not that simple. The researchers behind this new study point out that recent work on RBV has focused on managers as the ones generating the revenue from the company’s resources.

RBV 12

How Volvo Reinvented Itself Through Hiring

Harvard Business Review

Its cars didn’t match up well with those of top luxury brands like Mercedes, BMW, and Audi, yet the company lacked the capacity to compete with mass-market leaders like Toyota and GM. He hired salespeople and marketers from Google, who transformed Volvo’s use of technology and social media in those disciplines. For example, its members asked why every design change in a car required a dozen signatures and managed to cut that number in half.

Innovation's Hidden Enemies

Harvard Business Review

Nespresso took off when it stopped targeting offices and started marketing itself to households. The Nespresso team had to interpet the data skillfully to present a better case to top management. If Nestle had gone only by market research — usually innovation's first enemy — the concept would never have gotten off the ground. The Nespresso system, a machine and single dose capsules, didn't fit with the company's mass-market distribution system.

The $2,000 Car

Harvard Business Review

For example, GE developed an ultra-low-cost ultrasound for rural China which is now marketed in over 100 countries. Logitech developed an affordable mouse for the China market which sells for (the Chinese equivalent of) $19.99 Deere & Company developed a small tractor, the 35-horsepower Krish, built and priced specifically for the India market, competing head on with the Indian market leader, Mahindra & Mahindra. They take a "market-back" perspective.

The Secrets to Clay Christensen's Success

Harvard Business Review

His basic two litmus tests for a good business theory are something that explains the different circumstances facing managers and the causal connection between an action and a result. Past experience as a consultant and practicing manager ensure Christensen focuses on high-impact issues, and his work manages to be both robust and usable. Innovation Managing yourself

Consumer Warning Labels Aren’t Working

Harvard Business Review

This practice leads highly cautious consumers to lump low-risk products in with mass-marketed products that actually merit such a warning and encourages many others to simply ignore warnings. Risk management Customers Communication Digital ArticleWarning labels are everywhere. They alert us to the risks of eating unhealthy foods, smoking cigarettes, taking prescription drugs, driving cars, using power tools, and performing many other activities.

Your Business Doesn’t Always Need to Change

Harvard Business Review

By now, the idea that organizations must adapt in order to maintain both relevance and market share in a rapidly changing world is so ingrained that it’s been reduced to pithy sayings. The recent failures of mass market retailers Sears and J.C. The diluted management focus, coupled with the car’s poor sales, hurt the brand and allowed competitors — especially luxury imports — to gain market share. Change management Disruptive innovation Strategy

Don't Draw the Wrong Lessons from Better Place's Bust

Harvard Business Review

Its approach was the first to align the key actors in the ecosystem in a way that addressed the critical shortcomings — range, resale value, grid capacity — that undermine the electric car as a mass-market proposition. Note to Tesla owners: you are not the mass market). Since resale value ranks high for mass market buyers, this has all the makings of a deal breaker. A small number, but these are also small markets.

The Internet of Things Needs Design, Not Just Technology

Harvard Business Review

applications pushed technology to address B2B market requirements. Increasingly, the pull of user experience will drive market demand, and product design will be critical to getting consumers to adopt offerings in this new IoT 2.0

B2B 14

When The Customer Isn't Right

Harvard Business Review

Over the last ten years we have been researching deshopping in Britain through two mass market retail case studies and surveys of 150 independent retailers and over 500 consumers. Managing returns effectively and fairly requires a dedicated, trained staff capable of distinguishing deshoppers from bona fide customers. Comprehensive, consistent, and manageable policies and processes.

Hybrid Business Models Look Ugly, but They Work

Harvard Business Review

When the Microsoft Surface first appeared, many critics panned it as a clumsy move into hardware — a device that was stuck in the middle, a half-step behind the hot market for tablets and only a half-step beyond the dying market for PCs.

The Lonely Lobby of the Job Hotel

Harvard Business Review

They went to the market with a strategy that was just about working and found jobs that were just about right. In a noisy market it's harder for the right employer and candidate to meet, but there are genuine opportunities out there: organizations are looking for enthusiastic and capable people and don't know how to find them. But the mass market doesn't work for candidates or employers — every appointment is a niche appointment.

Does Your Company Come Across as Too Male?

Harvard Business Review

Every manager, male or female, saw the difference very fast, without any preaching on my part. He had no idea that the ad they’d just run to launch their latest mass-market device was so completely male-oriented. Are you talking to 100% of the talent and 100% of the market?

VW’s Board Needed More Outsiders

Harvard Business Review

In managing the fallout from BP’s Gulf of Mexico oil spill disaster in 2010, company Chairman Carl-Henric Svanberg had to take over from CEO Tony Hayward, whose gaffes and public blaming of partners had only exacerbated the crisis.

CFO 10

Instead of Optimizing Processes, Reimagine Them as Platforms

Harvard Business Review

One applications outsourcing team, for example, proposed a clever UX tweak to help optimize a global fulfillment process their company managed for its biggest client. Instead of prioritizing process optimization around inventory management, UXes dedicated to cultivating loyalty, trial and ancillary services evolve. Customer demand and recommendations data can create predictive analytic insights that suppliers can use to manage their just-in-time inventories.

When to Make a Promise to Your Boss (and When Not To)

Harvard Business Review

Maybe even cleverer is the market that Leo Burnett targeted to introduce it — a group with a strong need (and a perfect opportunity) to socialize: college freshmen. And because batteries are the single most expensive component in electric vehicles, that would be a big step toward his dream of a mass-market Tesla car. Then managers are going to take actions to boost earnings at the expense of long-run intangible value." Communication Managing yourself

How Separate Should a Corporate Spin-Off Be?

Harvard Business Review

Should the managers in the new division have similar terms and conditions and bonus arrangements to those of their colleagues in the existing businesses? Should the new activity have a separate stock market listing or separate funding? How Samsung Gets Innovations to Market.

J.C. Penney's Real Problem: The Shrinking Middle Class

Harvard Business Review

He approved marketing campaigns that told loyal Penney''s shoppers that "you deserve to look better," basically telling them that they looked less than glamorous wearing the brand they had trusted and been comfortable with for years. There''s one big reason JCP would never be "Bloomingdale''s for the mass market," as Johnson wanted it to be, and that''s because the mass market is gone.

Is the Drone's Potential Being Shot Down Too Fast?

Harvard Business Review

What existing solution-provider, in so doing, might you manage to obliterate? There is another reason, too, that the drone market is set to take off. Thus, mass-market drones clearly hold potential for what Paul Nunes and I call "big bang disruption."

Seeing Robots Everywhere

Harvard Business Review

Seeing a potential revenue stream to fund more research robot development, the team set up a company, BeatBots , to make a very pared-down version with the same look and feel available to the consumer market. It's not easy to deliver sophisticated robotics at a $40 price point , and by managing to do that, they have a toy with mass market sales.

Any Value Proposition Hinges on the Answer to One Question

Harvard Business Review

Nearly all competitive markets confront firms with this choice. In pharmaceuticals, there are blockbuster drugs targeted at mass-markets segments. Any strategy lives or dies on the basis of its customer value proposition.

Cost 11

What U.S. CEOs Can Learn from GM’s India Failure

Harvard Business Review

Like its American compatriot Ford Motor Company , GM’s market share in India has always been in the single digits, but recently Ford has reported rising monthly sales of 36% in India. 1 — Consistent Leadership Over Time Matters in This Market. Having local autonomy is key to succeeding in India, since its market structure is fundamentally different from the West’s and therefore demands extreme customization.

Prototype Your Product, Protect Your Brand

Harvard Business Review

Designers and entrepreneurs have been experimenting with live prototyping — putting unfinished product ideas in the context of real markets and real customer situations — for years, and now bigger businesses have begun to catch on. Many executives, eager to avoid over-investing in the wrong ideas, are intrigued by this approach, but they’re leery of putting unpolished products and services out in the market. Is quality essential in your market, or simply a nice-to-have.

Create a Meaningful Life Through Meaningful Work

Harvard Business Review

In most boardrooms, the first and last question asked is: will "the markets," financial and "consumer," like your latest shiny trinket slightly better than the next guy's? Of course, that's a perfect recipe for mediocrity: to have barely satisfied weary, oppressed, jaded "consumers" already trained to demand the bare McMinimum is to have furiously smashed the glass ceiling of the lowest common mass-market denominator — and little more.

Morning Advantage: The Search for the Perfect Dating App

Harvard Business Review

There are a ton of dating apps on the market, but they all fail to please a pretty important demographic: women. And it’s likely to stay that way until a start-up comes along that manages to make mobile dating not weird by offering women — and the men they want to meet — control, incredible filters, and clarity of mission. This begs two questions: why are the most popular American brews so light in alcohol content, and why do they dominate the market?

Who's Your Brand's Editor-in-Chief?

Harvard Business Review

Here are four publishing approaches retailers are trying: The Mass Publisher. Mass publisher retailers create content of broad interest to their customers. They ask, "If we were a cable TV channel or a mass market magazine, what would our content, tone, and the experience we offered be? Most marketing aims to make consumers aware of a solution or an aspiration they had not considered. Branding Marketing Retail

IBM at 100: How to Outlast Depression, War, and Competition

Harvard Business Review

At its 100-year milestone, IBM shows us what it takes to outlast depression, war, and intense competition in order to remain a market leader in the midst of ongoing technological innovation. By 1955, IBM's revenues were $564 million and it led the world market in making computers. This innovation came to market in 1964 and quickly became a smash success, setting the standard for the industry and greatly expanding computer use around the globe.

Why Is Capital Afraid of Cities?

Harvard Business Review

Making the case for investments that produce social impact as well as market returns is not a discussion most executive directors want to have with their board — or their financial stewards on Wall Street. Large corporations know more about opportunities in Chinese markets than they do about opportunities in US cities. And it's easier to sell to a monolithic mass market than to the diverse and dynamic collection of markets that we call a city.

The Future of You

Harvard Business Review

In today's world, self-branding matters more than any other form of talent, not least because the mass market is unable (or unwilling) to distinguish between branding and talent. This is why David Beckham and Lady Gaga are much more successful than their more talented competitors — they understood that being a marketing phenomenon is more important than displaying outstanding soccer skills or musical talent, and focused more on self-branding than their counterparts did.

Brand 10

Users Are the New Growth Engine

Harvard Business Review

The purchasing habits and attitudes of today's teenagers and twenty-somethings are completely different from those exhibited by today's mass market. How can companies create and manage an effective Software Layer? Customers Internet Online marketingThis post is part of the HBR Insight Center Growing the Top Line. Today it's rare to find a CEO who won't acknowledge the impact digital technology is having on their business.

Selling to Customers Who Do Their Homework Online

Harvard Business Review

The required changes may surprise you and raise questions about effective selling in your market. At the same time, sellers must manage their existing digital media budgets a lot better. jennifer maravillas FOR HBR. Alfred P.

Price 11

The Clean-Tech Economy at the Base of the Pyramid

Harvard Business Review

companies produce the batteries required for price-competitive electric vehicles that can truly shift the market? Perhaps it is here, and not in Americans' two-car garages, where the large early market for advanced battery technology resides. based solar energy companies produce systems that compete on price, opening up huge new mass markets for renewable energy? The Chinese now account for 80% of this market and will soon take it global.

To Spur Growth, Target Profitable "Prosumers"

Harvard Business Review

For example, UnderArmour provides athletic gear used by professional athletes to the masses. Roche allows you to monitor and manage your own diabetes like a doctor. They also are finicky about marketing ("how you market it").sometimes

Price 10

An Inside View of How LVMH Makes Luxury More Sustainable

Harvard Business Review

The companies that are most vocal about environmental and social issues tend to be big, mass-market brands — well-known retailers , consumer products giants , and tech firms that are telling a new story to consumers who increasingly care about sustainability. Managing Carbon and Energy. As Gibb puts it, “Until recently, marketing would focus mainly on product and brand image.

Marketing's Russian Doll Strategy

Harvard Business Review

Marketers are up against it. Mass markets have fragmented into niches. So marketers have something to learn from non marketers. The creators and producers, Steve Frank, Chris Henze, and Kelly Kulchak, struck on an ingenious way to solve the "many markets" problem. The genius of the Psych approach is that it manages to speak to smart without alienating (or antagonizing) dumb. Marketing StrategyOne size no longer fits all.