Finding the Sweet Spot Between Mass Market and Premium

Harvard Business

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

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. In fact, going back as far as 2009, watchers have documented how Apple has struggled to reach mass markets, like India’s. Apple Customers Marketing

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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. The Met, with his inclusive strategy, has activated a mass market outside the confines of the theatre and of the traditional affluent and aging opera lover. I think marketers make way too much of segmentation — the art of identifying differentiated characteristics.

Beyond Meat, and Facebook’s Pivot to Privacy

Harvard Business

Youngme, Felix, and Mihir talk about the Beyond Meat IPO and whether plant-based meat alternatives like Beyond Burger and Impossible Burger will become mass-market products. They then discuss Facebook’s announcement that it is pivoting to put greater emphasis on user privacy. Growth strategy Social platforms Economics & Society IPO Audio

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. Self-made billionaires think differently than most of us do.

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

Harvard Business

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

The Entrepreneurial Corporation: Oxymoron? | In the CEO Afterlife

In the CEO Afterlife

The giants dominated markets and gobbled up competitors; they also failed to cope with rapid change. The brain also considered the masses below them, the muscle. The change-makers are small to medium size enterprises that either lead niche categories or are keen to knock the big guy from the top rung of a mass market. Marketing. link] #branding #marketing #advertising #design Follow Me on Twitter. In the CEO Afterlife. Main menu Home. Leadership.

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How Do Consumers Choose in a World of Automated Ordering?

Harvard Business

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.

3 Kinds of Jobs That Will Thrive as Automation Advances

Harvard Business

And it’s not just low skilled, manual labor that’s at risk — “knowledge” work like operational analytics and marketing is also being taken over by sophisticated artificial intelligence algorithms. While it’s true that technology is taking over routine tasks from many workers, it is also reshaping many supply and demand trends that drive our global markets. How Technology Is Reshaping Markets. Russ Widstrand/Getty Images.

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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. The change-makers are small- to medium-size enterprises that either lead niche categories or are hell-bent on knocking the big guy from the top rung of a mass market. (This post first appeared on the Ryerson University Alumni Blog) .

Why Elon Musk’s New Strategy Makes Sense

Harvard Business

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. They then moved into the luxury market where they applied plenty of competitive pressure with the Model S. Last week Elon Musk released the second installment of Tesla’s Master Plan.

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

Harvard Business

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.

Instead of Optimizing Processes, Reimagine Them as Platforms

Harvard Business

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.

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

Harvard Business

“But some of these photos were so far from that wavelength, it’s really helping us kind of realign with the mass market.” Classic market research would tell us that most of us aspire to make healthier eating choices – but the subtleties of when and why we actually do (or don’t) tell a far more important story to marketers. Customers Innovation Market research Digital Article

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

Harvard Business

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.

The Internet of Things Needs Design, Not Just Technology

Harvard Business

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 ” The “we,” however, seldom includes the end user’s perspective, and so market acceptance continues to suffer until management pulls the plug on the product.

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

Harvard Business

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. They offer the “thrill of the hunt” for shoppers who enjoy discovering trending products at prices well below market. Big box retail stores are losing relevance, while e-commerce and specialty stores grow in appeal.

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How Volvo Reinvented Itself Through Hiring

Harvard Business

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.

The Real Reason Uber Is Giving Up in China

Harvard Business

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. The company’s losses were mounting in a bid to win market share. When Uber entered the Chinese market, it soon learned it had to change its core product.

Consumer Warning Labels Aren’t Working

Harvard Business

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.

Why Dominating Your Category Can Be a Flawed Strategy

Harvard Business

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.

Your New Hit Product Might Be Underpriced

Harvard Business

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. After bringing its new product to market, the component maker commissioned an assessment of its product development process. The odds are stacked against new products or services.

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An Inside View of How LVMH Makes Luxury More Sustainable

Harvard Business

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. As Gibb puts it, “Until recently, marketing would focus mainly on product and brand image.

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.

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.

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.

In Product Development, Let Your Customers Define Perfection

Harvard Business

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. It sold only a quarter of the number market watchers had predicted, leading the publication MarketWatch to anoint it the year’s second biggest new-product failure.

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. Any entrepreneur or marketer can learn a lesson from how new systems create new markets, and how an infinite increase in income or productivity can change everything. So how can the $300 House be marketed effectively? Mass market acceptance is rare.

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.

Beyond Mass Customization

Harvard Business Review

Rather, they focus on markets (anonymous agglomerations of customers) rather than on any real, living, breathing individual customer. Most recognize that there are no truly mass markets any more. But we must go beyond looking at market segments and niches to embracing the truism that every customer is his own market. Multiple Markets Within. After all, what could possibly be next after recognizing that every customer is his own market?

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 Hidden Power of Mundane Ideas

Harvard Business Review

The TV included many of the teens' suggestions, but didn't catch on in the mass market. Innovation Marketing Social mediaPicture this: a nutrition scientist does a study with one person, limiting him to a 1500 calorie diet and having him run for 15 minutes on a treadmill each day. The man loses three pounds in a month. Can we safely assume that this experiment, when repeated with others, will produce the exact same result? Of course not.

The Secrets to Clay Christensen's Success

Harvard Business Review

But since then he has written seven mass-market books, some aimed at general audiences and some targeting specific industries such as health care and education. This week marks the release of Clayton Christensen's highly-anticipated book, How Will You Measure Your Life (with co-authors James Allworth and Karen Dillon). The book expands on Christensen's McKinsey-award-winning HBR article , drawing life lessons from the models that form the basis of his business-oriented writing.

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. The longest line on a busy Saturday afternoon in a celebrated New York department store is at the returns desk: bad news in these troubling times when every dime counts. First in line is 18-year old Jayne, decked out in the latest Ugg boots and designer jeans.

Yelp is Leaving Chains Behind

Harvard Business Review

Review sites allow consumers to tap into a vast pool of formerly private knowledge, and that knowledge is beginning to undermine the traditional advantages of mass-market branding and advertising. As this trend gains momentum, businesses that rely on traditional marketing will be forced to adapt. The power of chain stores and chain restaurants lies in their familiarity.

Henry Ford, Innovation, and That "Faster Horse" Quote

Harvard Business Review

Instead, his initial advantage came from his creation of a virtuous circle that underpinned his vision for the first durable mass-market automobile. He adapted the moving assembly line process for the manufacture of automobiles, which allowed him to manufacture, market and sell the Model T at a significantly lower price than his competition, enabling the creation of a new and rapidly growing market.

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. Handy as this hack was in the age of mass marketing, it has become a massive source of friction for everybody interacting with services on the internet today. I knew Aaron Swartz since before he could shave, and I regard his loss as one beyond reckoning.

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.

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.

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. Sounds logical, right? After all, who else would best know how to use them? But a new study on Hollywood producers in the Strategic Management Journal reminds us that it’s not that simple.

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