Apple: Luxury Brand or Mass Marketer?

Harvard Business Review

Meyer writes: So far, Apple has been a company focused on the mainstream, on the mass consumer, in an era where the most reliable profits could be found in the luxury market. To understand the cost of Apple products that we associate with mass market success, we mapped the U.S.

Finding the Sweet Spot Between Mass Market and Premium

Harvard Business Review

Rather than starting with their own portfolio needs and barreling ahead—a supply-driven strategy that companies rarely seem to escape—successful companies start with the consumer’s mindset and use that lens to identify market gaps. For example, Breyers, the ice cream brand, recognized that the gelato market was booming, but that super-premium gelatos were selling for 2.5

Beyond Mass Customization

First Friday Book Synopsis

Bob's blog entries The Experience Economy Harvard Business Review blog HBR email alerts Beyond Mass Customization B. Multiple Markets Within Stan Davis Future Perfect progression from mass markets through segments and niches to mass-customized markets recognize that every customer is multiple markets customers want different offerings at different times under different circumstances "the new frontier in business competition" What can you build with LEGO bricks?

At the High End, Reaching a Mass Market

Harvard Business Review

It is inclusive, an "art fair for the masses". Never before had live productions been instantly accessible to mass audiences beyond the confines of the theatre and at price point of a movie ticket.

Corporate Entrepreneurship: Turn Irony into Opportunity

In the CEO Afterlife

Corporate giants dominated markets and gobbled up competitors; along the way they failed to cope with rapid change. The brain viewed the masses below it as the muscle. (This post first appeared on the Ryerson University Alumni Blog) .

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.

Chinese and American Consumers Have Different Ideas About What Makes a Product Creative

Harvard Business Review

For example, one of the most striking differences we saw depended on whether the product was for a mass market. The Chinese believed that the mere fact that a product was for the mass market indicated the product was creative. But Americans believed that being designed for a mass market did not make a product creative. The Apple Watch was advertised as the first mass-market wearable. Marketing Global strategy Digital Article

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.

How Do Consumers Choose in a World of Automated Ordering?

Harvard Business Review

Our 2017 survey of 170 top Consumer Packaged Goods (CPG) and Retail CEOs, COOs, and CFOs revealed a conscious shift away from traditional mass production and mass marketing practices toward more personalized approaches. To begin, even the most capable and sophisticated marketing organizations will need to fundamentally change their mission and shape. Traditionally, marketing’s most important task was to broadcast the company’s brands to consumers.

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How Africa Is Challenging Marketing

Harvard Business Review

For too long, “Africa” has been considered a homogenous mass rather than a multicultural continent of diverse citizens. This shift will play out most obviously in marketing communications and advertising. The New Marketing Organization. Global business Marketing

Why Elon Musk’s New Strategy Makes Sense

Harvard Business Review

The second installment moves Tesla beyond the traditional car market, with a plan to reconfigure our cities, energy systems, and our impact on the environment. Tesla’s initial strategy began like a start-up: to build a minimum viable product to test the market.

Know the Job Your Product Was Hired for (with Help from Customer Selfies)

Harvard Business Review

“But some of these photos were so far from that wavelength, it’s really helping us kind of realign with the mass market.” Customers Innovation Market research Digital ArticleIn what world is a Snickers bar competing with a kale salad?

Find the Best Local Markets to Drive Growth

Harvard Business Review

These super geos were local profit pools that were concentrated and big enough to offer big ROI upside for marketing and sales. Sometimes it’s not immediately obvious why some geographic markets are such big consumers of a particular product. For instance, the best markets for top-sliced bread (think hot dog buns) tend to have had three to four times the profit dollars versus the average local market. Certain local markets have the right ingredients to ripen demand.

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 More Experience You Have, the Worse You Are at Bootstrapping

Harvard Business Review

Studying 837 mass-market movies released between 1996 and 2003, they collected data on the movies’ producers and their prior experience. If a company wants to generate the most revenue from its resources, it should put its most experienced leaders in charge of those resources.

RBV 15

Big-Box Retailers Have Two Options If They Want to Survive

Harvard Business Review

Customers no longer want anything that is mass-marketed. Unlike mass merchants which provide basic goods at everyday low prices, these big box players leverage the novelty of their constantly changing products and discounts.

Reis 13

How 'Aaron's Law' Is Good for Business

Harvard Business Review

Freedom of contract, however, proved inconvenient when mass markets arose, and companies needed to do business the same way with millions of customers at once. I knew Aaron Swartz since before he could shave, and I regard his loss as one beyond reckoning.

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 16

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.

Does Your Company Come Across as Too Male?

Harvard Business Review

He had no idea that the ad they’d just run to launch their latest mass-market device was so completely male-oriented. After all, Red Bull and P&G were strategically going after a market segment they had chosen to focus on. jennifer maravillas FOR HBR. “Oh no!”

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.

Netflix and Why the Future of Streaming Looks Like Old-School TV

Harvard Business Review

This makes it easier to do what Netflix was built for: experiment with the long tail rather than go for mass-market hits. CSA Images/Printstock Collection Vetta/Getty Images. Netflix hit the industry with some bombshell moves this month. First, it announced that it plans to spend $8 billion on original content next year (including on 80 new movies). This is far more than any other online player. Obviously, this is great news for its 100 million-odd customers worldwide.

Innovation's Hidden Enemies

Harvard Business Review

Nespresso took off when it stopped targeting offices and started marketing itself to households. 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. That's why Brabeck brought in Yannick Lang, a 33-year-old marketer from Philip Morris.

The Real Reason Uber Is Giving Up in China

Harvard Business Review

In a group photograph, 30 CEOs with a combined market capitalization of $2.5 It is true that Kalanick consistently called China the most important market for Uber. Uber truly wanted to succeed in its fastest-growing market, one where taxi drivers outnumber their U.S.

Instead of Optimizing Processes, Reimagine Them as Platforms

Harvard Business Review

Platform models bring a shift in emphasis—from meeting specific customer needs to encouraging mass-market adoption in order to maximize the number of interactions, or from product-related sources of competitive advantage (such as product differentiation) to network-related sources of competitive advantage (the network effects of connecting many users and third parties).” Process optimization can transform user experience.

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 14

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.

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. Gerald Lord/Getty Images. Many legacy companies would like to transform themselves into agile, talent-first organizations.

Microsoft's Kinect Misses the Mark

Harvard Business Review

The core issue: did Microsoft over-stretch in its effort to transform the gaming market? Microsoft hopes the $150 device one-ups Nintendo, which created a new market of gamers with its simple-to-use Wii system and console. Nintendo's strategy substantially changed the video gaming market and created billions of dollars of profits for the company.

VW’s Board Needed More Outsiders

Harvard Business Review

Meanwhile, Dr. Piech was obsessed with achieving dominant global market share, which included a larger presence in the U.S.

CFO 12

The $300 House: The Marketing Challenge

Harvard Business Review

Today, Seth Godin examines the challenge of marketing to the world's poor. Its success will depend on the ability to create a market for the idea. Acumen creates these markets using patient capital. So how can the $300 House be marketed effectively?

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

Harvard Business Review

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." If you had a fleet of drones to call your own, what would you do with them?

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.

How Separate Should a Corporate Spin-Off Be?

Harvard Business Review

Should the new activity have a separate stock market listing or separate funding? Shell’s preference for a strategy of vertical integration proved a disaster in aluminium, and BAT’s belief in market share was as damaging when the company entered financial services.

Your New Hit Product Might Be Underpriced

Harvard Business Review

Some products are truly innovative but stay walled up too long in R&D and then are released to market when they are no longer unique. Playmobil priced its play set far too low, which allowed customers to make money from it in the resale market.

Arkes 12

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. Warning 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.

In Product Development, Let Your Customers Define Perfection

Harvard Business Review

But by the turn of the millennium, the German automaker needed a new product for the mass market to jumpstart sales, and decided to make a vehicle for the burgeoning SUV segment. When the Cayenne came to market in 2003, it was an instant hit.

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. Evolve or die. If it ain’t broke, break it.

Piecing Together the Tesla Strategy Puzzle

Harvard Business Review

From the start, the mass-market acceptance of battery-powered cars has faced four great obstacles: The limited range of the batteries; The time it takes to charge the battery packs; The need to emplace a sufficient number of battery stations; The requirement for owners to replace the battery pack, at huge cost, after several years of use and corresponding degradation. These days, Tesla is the darling of the automotive world.