13
Sep

Imagine you want to create a movie. The only requirement is that its story should be based on a specific book. The good news are that this book contains a great variety of amazing stories: The creation of a world by a rather interventionist almighty god, successful and disastrous adventures of whole nations under the guidance of inspiring leaders, wise prophets who fight against unfaithful monarchs, and an old man saving animals from a great rainfall.

Now, why would anyone pick the last story? Well, it may have a great brand name: Noah!

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Why is this important? If you ask people about important elements of movies they would enjoy watching, you will get the answer “a good story” very frequently, but the answer “a story that I am familiar with” very rarely, if ever. Yet, the movie industry knows that what will make people watch a movie is (at least in many cases) the latter. The abundance of remakes and sequels attest to this fact.

Let’s take the case of science fiction films. Why experiment with an original and unknown story like this:

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When you can make remakes, sequels, or prequels of a story that science fiction fans are familiar with, like this:

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In conclusion, a strong brand is without a doubt a very strong marketing tool, sometimes the most important one for market success. It may be even stronger than the product itself, even if in many cases consumers will be reluctant to admit it. This fact becomes even stronger with the wide use of social media. It is a lot easier and cooler for anyone to twit “Check out the new Spiderman movie” than “Check out this new movie that I find interesting, but you have never heard about before”.

 

Antonios (Adoni) Stamatogiannakis, Ph.D.
Assistant Professor of Marketing
IE Business School – IE University

Antonios . Stamatogiannakis @ ie . edu

5
Sep

VisionSpring: Gafas a 4$ con un retorno de inversión de 26 veces.

Written on September 5, 2014 by María López Escorial in Bottom of the Pyramid

¿Te imaginas que todas las personas a tu alrededor que ahora necesitan gafas no pudieran comprárselas?. No poder leer o estudiar, enhebrar una aguja, ver las techas del móvil, no ver el insecto que come tu cosecha, ser peluquero y no ver bien para cortar el pelo, mecánico y no poder leer las especificaciones de las piezas,….

En los países en desarrollo, mucha gente que podría ver perfectamente tiene la vida de un invidente solo porque no tiene acceso a un par de gafas.

vision spring

Siguiendo con “la innovación que realmente importa”, hoy me gustaría exponer el caso de VisionSpring, empresa que vende gafas accesibles a clientes en la base de la pirámide.

La pérdida económica generada por la falta de una visión correcta se estima en 202 billones de dolares. A su vez más de un 90% de las personas con mala visión se encuentran en países en desarrollo.
Tener una buena visión es clave para todos los trabajos manuales; tejedoras, sastres, mecánicos, artesanos…trabajos de los que dependen la mayoría de las personas en este segmento. La pérdida de visión durante sus principales años laborales afecta poderosamente su capacidad de generar ingresos y mantener a su familia.

VisionSpring fue fundada sobre el principio “Si no puedes ver, no puedes trabajar. Un estudio de la universidad de Michigan ha concluido que un par de gafas de VisionSpring incrementa la productividad de sus clientes en un 35% y tienen el potencial de generar un incremento de su ingreso de un 20%. Con un coste de 4$ el par, el retorno de la inversión para el cliente se estima en 26 veces.
¿Cuantas empresas pueden revindicar haber creado un impacto económico de 269 millones de dólares vendiendo un producto que cuesta ente 2 y 4.5$?

vision spring 1

VisionSpring se ha convertido en una de las empresas más exitosas en la base de la pirámide. Fundada en 2001 con capital filantrópico y después de múltiples ajustes al modelo de negocio gracias a la inversión de fondos sociales como Acumen Fund o Skoll Fundation,empieza a alcanzar los volúmenes necesarios para alcanzar rentabilidad, sostenibilidad y un impacto social incalculable.

VisionSpring lleva vendidas más de 2.250.000 pares de gafas en 26 países. La organización mundial de la salud estima que 703 millones de personas en el mundo podrían tener buena visión con un par de gafas, de ellas 544 solamente con gafas para leer. El recorrido es enorme.

El reto también. El cliente típico de la base de la pirámide vive en un pueblo remoto, en una choza sin agua corriente, electricidad o sanitario. La familia es normalmente analfabeta, inalcanzable por los canales de marketing habituales, no tiene ahorros o acceso al crédito y es tremendamente vulnerable en cualquier momento a enfermedades, accidentes o desastres naturales. La mayoría de ellos se han resignado a la pérdida de visión como ley de vida.

Además de un esfuerzo enorme en la reducción del coste de producción de las gafas, uno de los secretos del su éxito está en su modelo de distribución, lo que ellos llaman “HUB-and-Spoke”. Una serie de ópticas que funcionan como hub y una red de “asesores visuales” que recorren las comunidades y pueblos haciendo exámenes de visón y campañas de educación en la importancia del cuidado ocular y de una visión correcta. Dispensan in situ gafas de lectura, gafas de sol, y colirio. Casos más severos son derivados a la óptica (hub) dónde se realizan exámenes oftalmológicos más precisos. Este sistema además de permitir llegar a las comunidades más recónditas a través de una persona en la que la comunidad confía, es una fuente importante de ingresos para los asesores.
Según nos cuenta Vicky, es capaz de ganar 600 dolares al mes vendiendo gafas. Un 80% de los asesores son mujeres, lo que además genera un impacto muy positivo en su autoestima y en su prestigio y papel en su comunidad.

Otro de sus secretos, está en el desarrollo de una amplia gama de modelos y dar la posibilidad al cliente de elegir. Un kit básico de venta tiene 40 pares de gafas de diferentes estilos y graduaciones. Por paradójico que parezca, el hecho de no tener grandes recursos económicos no impide que la vanidad siga siendo importante. Según la experiencia de VisionSpring, si el cliente no se siente cómodo y atractivo con las gafas por mucho que las necesite no las va a usar nunca.

Por ello para VisionSpring, “cada par de gafas debe ser: asequible para un presupuesto muy limitado, funcional para resolver el problema de visión y con estilo para hacer que nuestros clientes se vean y sientan bien”.

Y como ellos dicen “restablecida la visión, restablecida la dignidad”

visionspring 3

Espero vuestros comentarios! Aquí o en @marialescorial

Articulo publicado en elpais.com/planetafuturo

30
Aug

The summer is almost over, and in this  post I would like to discuss issues related with the “King” of the summer industries – tourism. The question was born in my head during my vacations at my hometown, in Crete. Specifically, the official numbers for Greece – and Crete in particular – showed an increase in the number of tourists in relation to 2013 (which was also a good year). In addition, I could personally observe that there was a big number of tourists strolling on the streets. Nevertheless, the owners of tourism related businesses (e.g., small hotels, gift shops, etc.) were complaining that their business was down. And a quick look inside these businesses confirmed their view: Most shops and small hotels were not nearly as busy as last year.

So how could both of these opposing facts be true? I believe it is because of the existence of two pretty well-defined segments of tourists. The first segment, let’s call them “the relaxers” primarily care about resting and relaxing. What they want from their vacation is as few hustle as possible, even if that means missing out on a few interesting stuff. Naturally, they prefer a vacation package that they book from a travel agent. This includes a big hotel (usually part of a chain), which offers them everything: 3 meals, shops, cafes, bars, close access to a nice beach. They typically leave their hotel only for pre-scheduled excursions either to the closest town, or to a few main attractions.

The second segment, let’s call them “the explorers” primarily care about exploring and getting to know the place they visit. What they want from their vacation is new experiences, and are willing to exert more effort in discovering the “secrets” of the place they are visiting. They usually stay at small hotels, but they spend very little time there. On the contrary, they leave their hotel early in the morning, and it is not unusual for them to eat, shop, have drinks, etc. at a different place each day – or even during the same day. They plan most details of their trip on their own, perhaps with the help of friends and “experts” (e.g., tripadvisor).

So, what seems to have happened in Crete this summer, is that many tourists came (thus, the increase in the gross numbers), but most of them were “relaxers”, and few of them were “explorers” (thus, the decrease in tourism revenues for small tourism related businesses).

Now, is this a problem? I believe it is. In an uncertain industry, such as tourism, it is risky to concentrate only on one market segment. For instance, relaxers would go to any place that their travel agent sends them, as long as they can relax. But travel agents operate based on profit, so they would have no problem to send their clients to other locations, as long as they get a better price. So low prices (at the package level) are critically important for that segment, and can result in big changes in demand from year to year.

I could mention several examples, but perhaps the most convincing is the following. The Greek Ministry of Tourism, seems to want to target both the relaxers and the explorers. For instance, take a look at the following ad – it seems to be targeting for the most part the “explorers”. So are many of the videos of the official agency for tourism in Greece.

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In summary, it looks that the good results in terms of “sales” (i.e., gross tourism numbers) are not the result of a careful marketing strategy building on the competitive advantages of the brand “Greece”, but a result of competitive pricing (which, may be a result of the ongoing economic crisis in Greece). If that is the case, the positive results of Greek tourism during the last couple of years are not likely to be sustainable.  They will be over together the price advantage, largely stemming from the crisis. In order to ensure long-lasting market growth,   an aligned marketing strategy is necessary.

Antonios (Adoni) Stamatogiannakis, Ph.D.
Assistant Professor of Marketing
IE Business School – IE University

Antonios . Stamatogiannakis @ ie . edu

 

29
Aug

Also if you are not a gallery lovers, likewise can not disregard gallery in London, due to the fact that it is too much. You will certainly locate an unusual vintage snapbacks, also if the slack in the exhibit, the museum’s coffee shop is particularly active, due to the fact that we all understand the truth, the London museum of coffee will not be bad where to go.

In a Soho has Hazlitt called’s hotel, outright through rocks! The construction began in 1718 became an exclusive residence, made use of to live a vintage snapbacks called William Hazlitt paper authors, thus the name. Coldplay approach most via a night feeling antique 9 hotels and resort.

All the furniture of the display inside the hotels and resort there are hundreds of years record, is full of precious ancient publications, even the commode closestool is social antiques. Resort intro of words there is a very worth contemplating: “please address these aged individual in the space, yet if they didn’t manage you, please be sure to inform us!” Hello, cannot be haunted? You understand live an evening. Absolute rate is below you pictured.

Coldplay technique 10 in the gallery store window “tao” for baby. Do you recognize where London really rich people are shopping? Is that there are several shops yet vacant shopping arcade. This is a special can top place, even if you don’t buy things, also have to be in to see exactly what is asked for child. Located in the Piccadilly Burlington Arcade is such a location. All the shop location is little, but the standard only marketing antiques, limited edition and haute couture. Price tag in the browse home window alone, is enough to make a hassle over you for a while. The British folks will be pleased to tell you, this is the real London shop.

Love to climb, can go to the juyongguan Great Wall surface, after the vacation without checking out the man’s head, could discover creative conception. North along the Great Wall in Beijing jingbei-changcheng line nonetheless, forget on camels. See the bird’s nest, water cube, 798, could perceive the contemporary Beijing.

Along with go to all-natural surroundings, still can really feel the palate beat, to the outskirts of Beijing orchard picking fresh fruit, wonderful as well as tasty preference of fresh fruit; To wangfujing street, DongHuaMen flavor snack street, free tasks, in blend treat street documents throughout the nation to find can trigger the idea of the tongue thoughts elantra.

Also if you are not a gallery enthusiasts, also can not ignore museum in London, due to the fact that it is too much. If go worn out, could as well into the tiny New Era Hats relax to a gallery. Museum in London even ask for, the cost is not higher also, enough inside air conditioning and comfortable environment. You will certainly find an odd vintage snapbacks, also if the slack in the exhibition, the museum’s coffee shop is specifically active, because we all know the fact, the London museum of coffee will not be bad where to go.

16
Aug

Should you bet on Sustainability? Does it make business and financial sense to go for a green positioning? What can companies and brand expect for these sort of approaches?

sustainability

I could actually write a book about these questions, but would rather keep it simple today. According to a research from Havas Media Group, Brands must be meaningful. In the sense that they need to embrace values that resonate with customers. If not, you risk becoming part of the mainstream (7 out of 10 brands according to this research) and become irrelevant to your target group… I.e. your customer would not care at all if your brand disappeared…

Meaningul Brands

Bearing this is in mind, there are quite a few possible approaches here. You can create a Corporate Brand Identity around sustainability like the one of Unilever, or you could keep it simple and go step by step. And, if you opt for the latter, then the approach would be simple: Take one value that resonates with your customers and build upon it.

Meaningul Brands Info

One of the possible values is everything related to playing it Green, to positioning yourself as an Environmentally Friendly Company, who cares about Nature and the Ecosystem. And one example of this would be what not a company but an Industry has actually done: The Green approach of the Hotel Chains.

You know what I am speaking about, but let me share one recent example I got so that we are all in the same page. I just went to Penn State University for a Symposium on Digital Learning. The event took place in an Event Centre where everybody was hosted. And of course, when in the room, you could find it with signs that were basically telling something like this:

“If you want your towels to be replaced, please leave them on the floor….

If you want your bed sheets not to be changed, please leave this sign on your bed…

When deciding, please consider the amount of resources that are thrown away and the impact is has on Nature…

We are fully committed Hotel with Sustainability and appreciate your support…”

towel save planet

The result?

Firstly, most customers decide to play it green.

Secondly, the Hotel Chain makes a good impact on the brand positioning, as long as customers end up perceiving the brand as committed with sustainability.

And lastly, the Hotel Chain actually saves a lot of money for not having to wash and replace thousands of towels and bed sheets…

Food for thought

Quite simple, isn´t it? But it works and delivers quite good results. So bear in mind two things from here:

  • Brands needs to resonate with customer values, they need to resonate and engage.
  • The latter does not necessarily imply ad multimillion investment. It could be as simple as taking one value and get your message across.

I look for your comments @ignaciogafo

Reset!!!

Ignacio Gafo

 

25
Jul

A Perspective On Todays Cheap Snapbacks

Written on July 25, 2014 by Ignacio Gafo in ADVERTISING

Hats are generally made use of for covering head and safeguarding head from different risky sources like various components existing in the setting, sunshine. It can also be made use of for securing the head from various hazards. In the past cheap snapbacks were made use of to stand for the social standing of an individual or ranking of the person.

Cheap snapbacks are of many different types which are primarily utilized by individuals in different areas. Ayam hats, Barretina hats, Baseball caps, Beret hats, Seafarer hats, Employer of the levels, Pail caps, Capotain hats, Pupil cap as well as Top hat are different types of cheap hats.

Cheap snapbacks are essentially made use of in our life and now in addition to fashion it has additionally become the necessity of life. A hat consists of essentially 4 parts which play a significant part in structure of a cap. The main part of the hat is Crown which is useful in covering the leading of the head. Second part of the this snapbacks is Peak it is a stiff forecast present at the front of the hat. Its basic advantage is that it protects the eyes from sunlight and rainfall. Third part of the hat is Brim. It is an estimate comprised of stiff material. It exists flat all around the area of all-time low of royalty of the hat.

Fourth and also the last component of the hat is Sweatband. It is a ribbon existing around the bottom of the hat’s torso.

To gauge the size of the hat cap first of all all you need to measure the circumference of the head of the individual. It should be about 1.3 centimeters above compared to ears. Various hats various features. Felt hats are those kind of favorites which taxi stretched. While various other hats such as baseball style or challenging style have their structure as though they could be adjusted. Hats are readily available in conventional dimensions. Such sizes are tiny dimension, tool dimension, economy size or extra economy size. They are readily available in these particular dimensions simply and can not be changed.

Essentially snapbacks dimension is established by usually individuals by gauging the side to side along with fore as well as aft measurements and afterwards dividing the measurement by two.

Hats are essentially used for covering head as well as shielding head from various harmful sources like different components existing in the environment, sunshine. Second part of the this snapbacks is Peak it is a stiff forecast present at the front of the hat. To measure the dimension of the hat cap initially off all you have to assess the area of the head of the individual. Different hats different qualities. Hats are readily available in common sizes.

24
Jul

Desde el Retail

Uno de los síntomas de la incipiente recuperación económica, y directamente conectado con la mejora del consumo interno, sería la recuperación parcial de la innovación en los mercados de gran consumo. Como dato, el peso de las productos innovadores sobre el total ventas supera en más del 50% el alcanzado en el año anterior (6.4% acumulado a Marzo 2014).

Se trata de una recuperación basada principalmente en extensiones de línea y mejoras parciales de producto, ya que el 5% que corresponde a marcas nuevas e innovaciones radicales está aún muy lejos del 20% conseguido en el año 2007. A pesar de lo anterior, en un 30% de las categorías de gran consumo la innovación aporta más de la mitad de el crecimiento conseguido.

Y dentro de esta innovación destaca cada vez más la realizada directamente por la distribución detallista en relación con sus marcas del distribuidor. Sobresale Mercadona, con el desarrollo de espacios específicos en algunas tiendas (doce en la actualidad) donde se facilita el acceso de los clientes a nuevos productos para directamente recoger su opinión sobre ellos, sus sugerencias, y sobre todo acceder a la utilización real del producto para ver como es la experiencia de uso.

coinnovacion

No sorprende que Mercadona sea considerada como la empresa líder en nuevos lanzamientos, con 400 registrados en el año anterior. No se trata solo de una cuestión de cantidad, ya que además coloca dos nuevos productos entre las diez primeras innovaciones del año según un estudio de Kantar Worldpanel.

zanahoria

La distribución detallista no solo prioriza cada vez más el desarrollo propio de innovaciones como alternativa a la mera copia de los productos de fabricante sino que cada vez más es reconocida por el consumidor en este sentido, percibiendo la aportación de valor del producto adicionalmente al eje precio y dándole cada vez más credibilidad en segmentos de prestaciones y calidad superiores.

Y como ejemplo comentar el caso de Eroski. Recientemente tuve la oportunidad de asistir a una presentación de Ana Cuevas, directora comercial y compra de productos frescos, sobre un nuevo concepto de alimentación llamado Eroski Cooking (http://cooking.eroski.es/)

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Consiste en una línea de productos compuesta por tres componentes precocinados preparados para ser acabados en un proceso de ensamblaje . El primero sería el producto principal, la base, consistente en una relación de carnes, pescados y pasta a elegir. El paso dos incluye las guarniciones, mientras que el último paso se refiere a la elección de salsas entre un surtido de distintos sabores.

Cooking_pack

Entre los principales encontraríamos pasta con albahaca, muslo de pollo relleno de jamón, merluza al vapor, bacalao confitado y salmón a la plancha. La guarniciones incluirían champiñones estofados, salteado de guisantes con jamón, wok de verduras, arroz con langostinos o patatas carbonara entre otros. Por último, las salsas incluyen salsa verde, de oporto y hongos, de tomate, de quesos y nueces, al curry, de mostaza o piperada. Claramente se trata de propuestas alejadas de la comida preparada funcional y más próxima a la alta gastronomía.

A partir de lo anterior el número de combinaciones posibles es muy elevado ya que permite a al consumidor la personalización del producto final combinando los tres pasos o incluso reduciéndolos a dos. Esta flexibilidad de elección facilita la adaptación del menú elegido a la ocasión de consumo (regular / especial).

Otros elementos de valor aportado se refieren a la confianza que genera, ya que es el propio cliente quien manipula en última estancia un plato preparado al acabar su preparación en el momento de consumo, los beneficios referidos a calidad de componentes, o su comodidad por la rapidez de preparación.

El punto de partida en su concepción y desarrollo se sitúa en dar una nueva solución al cliente en el mercado de platos preparados que se aleje de procesos percibidos como industriales y desvinculados de la calidad y disfrute gastronómico. Y para conseguirlo se crea una línea de trabajo que intenta cambiar la forma de relacionarse entre fabricante y distribuidor, siendo los dos participes de un proyecto completo de co-creación enfocado en las necesidades del cliente y al que se unen distintos proveedores.

Proceso

Fabricantes como Angulas Aguinaga, que aportan conocimiento del producto para liderar el desarrollo de un nuevo segmento de platos semi-preparados pero que priorizan el placer de la comida y el disfrute como valor principal. O proveedores como el Basque Culinary Center, que desarrollan las recetas y asesoran en lo referido a la cocción y conservación de todos los componentes para potenciar su sabor. O como el centro tecnológíco AZTI Tecnalia, encargado de garantizar los procesos productivos y la calidad sensorial, nutricional y garantías de este nuevo proceso.

Con independencia del resultado que esta propuesta pueda obtener en el mercado supone un avance en ejes muy claros en el desarrollo de la marca del distribuidor por parte del detallista.

El primero sería el acceso a segmentos de mercado de cada vez más valor, alejados de propuestas basadas exclusivamente en el precio bajo, como forma de diferenciarse, reforzar la marca, generar fidelidad, y mejorar rentabilidad.

En segundo lugar, una integración total de todos los participantes en el proceso así como un claro foco en el consumidor.

Y en tercer lugar, y como resultado de los dos anteriores, un sustancial cambio en la ambición de desarrollo de marcas del distribuidor. Huyendo de productos de imitación, rápidos y baratos en su desarrollo, para atacar proyectos mucho más ambiciosos, más largos de llevar a cabo y mucho más complejos, y por lo tanto, que exigen una inversión considerablemente más alta

Confianza, personalización, alta gastronomía…. Valores aportados al consumidor bastante alejados del tradicional eje precio para una marca del distribuidor.

Saludos muy cordiales

12
Jul

Today I wanted to paraphrase a well-known business article (It is the Distribution, stupid!) to showcase the importance of managing Media properly when building the Personal Brand Identity. And for doing so we have two perfect examples that reflect what should be and should not be done.

lebron james

IKER CASILLAS AND HIS MISSTEP

Iker Casillas has managed its Personal Branding relatively well for many years. I am not sure how systematic and structured he was in his approach, but in the end of the day he came across to Spaniards as a brilliant goalkeeper, with a human touch (reflected when he gave a call to Xavi from Barcelona to end up a club discussion) and passion for what he did and achieved (just recall what happened with Sara Carbonero 4 years ago upon winning the Soccer Wordlcup).

iker casillas

Moreover, he has managed relatively well his presence in Social Media, where we can find him in Twitter, Facebook and even Instagram, and has actually got really good PR thanks to some of his prizes, such as the one granted by the UNPD:  Goodwill Ambassador for the Millennium Development Goals.

What came out of it? Casillas managed to create a pretty good Personal Brand around himself, as it was reflected in the research by Personality Media, and actually some advertisting contracts with well-known companies such as Liga BBVA and Procter & Gamble.

iker champu

So far so good, till recently… The misstep came two weeks ago when he published a picture of his new-born baby, one “follower” attacked the baby (he basically said that he wished the baby would drown) and Casillas replied with all kind swearing and curse words…

comentario-iker

Had Casillas the right to response back like that? Yes, of course. Was Casillas right when responding like that? Absolutely not. Casillas needs to understand that even if he has the right to do so, he has created a Personal Brand, needs to protect it, take good care about what he does and does not say in public and specially take care of Media and Digital Media. For whatever he says, specially if it is a misstep, is going to be viral and promoted all around the Globe…

 

LEBRON GOES BACK HOME

The story of Lebron is somewhat similar to the one of Iker Casillas in a bigger scale. His Personal Branding started when he was only 17 and made it in the cover of Sports Illustrated: The Chosen one was born.

lebron the chosen one

Number 1 of the NBA draft in 2003, he was really up to the expectations he raised and managed to beat quite a few records during his 7 years in the Cavs, with only something missing: An NBA Championship. In 2010, he became an unrestricted agent and had to decide whether to keep on playing in Cleveland or moving somewhere else… Everybody was awaiting and he finally made his move… A move that he announced in an ESPN TV Program (The Decision)…

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Did he have the right to look for another Team where to win the NBA Championship? Of course. Did he mange it properly from a communication perspective? Definitively not. It was considered a brutal communication misstep, an arrogant move that made him a public enemy in Cleveland and in the minds of big chunk of NBA followers (myself included).

4 years later, Lebron was facing the same situation again. He had spent 4 years with the Heats, won 2 NBA Championships, had the right to choose his team again and got everybody was awaiting his decision. And today, he announced his decision and, in contrast to what happened before, he communicated it smartly: He wrote a well-thought and respectful letter published by Sports Illustrated, where he exposes the reasons for “I´m coming back home”.

lebron coming home

The reactions are yet to come, but I can bet that his Personal Brand Image will be strongly reinforced for:

  • He has amended his previous mistakes.
  • He admits the communication mistakes he made in the past.
  • He comes across as a respectful and considerate person, that looks for something else.

SOME CLOSING THOUGHTS

  • Personal Branding has to do with who you are and specially with how you come across.
  • For the latter Media in a broad sense is critical and needs to be carefully thought and manged.
  • When being a well-known Personal Brand, you need to be mindful and aware that everything your claim is subject to be published, promoted and made viral. This works both for offline and online media.
  • Having said that, you need to define your values and positioning and stick to them, even if rational or irrational critics show up.
  • And last but not least, please consider a professional assessment for managing your Personal Brand. Brand Management well deserves some professional help.

personal branding

Look forward for your comments @ignaciogafo.

Reset!!!

Ignacio Gafo

1
Jul

One of the main problems when trying to launch a new business at the BOP is the lack of data. This is a brand new market, with fairly unknown consumer needs, unreliable statistically public data, and extremely difficult to reach consumers.

Luckily the World Bank has solve part of the problem…. Last month it has released the “Global Consumption Database” a comprehensive dataset on consumer spending patterns in developing countries.

The data has been compiled from surveys to more than a million households around the world, and is breaking down by country, by location (rural & urban areas), by consumption segment (lowest, low, middle, high), by sector, by sub-sector, and by specific products and services for 107 detailed sub-categories.

global consumption database

This is the most detailed attempt to obtain data to help size up existing demand and potential demand for specific product and services categories; identify categories where demand may be latent; and identify areas for further research.

All this is key when building and analyzing inclusive business opportunities.

Moreover the research have shown clearly 3 points that, although already known, are worth noticing,

1. Affordability and access to financing are key to success in inclusive business.
As we have seen in my previous post, people at the BOP not only have extremely low but also extremely volatile income. Therefore when buying new products affordability in terms of total amount as well as access to a vehicle to finance the product is key. Microfinance these products and therefore offer this option as a product feature is extremely important for the success of the venture. You can be financing a solar lamp, an electricity meter or construction materials, without financing the product would be difficulty sold.

2. Different segments require very different business models

Up to now, the BOP has been considered as a big segment of low income people, but as in other more mature markets, segmentation is key.
Although the segmentation used in this report is based on income, income also dictates many other attributes as literacy rates, access to other products and services or product understanding
• Lowest—below $2.97 per capita a day
• Low—between $2.97 and $8.44 per capita a day
• Middle—between $8.44 and $23.03 per capita a day
• Higher—above $23.03 per capita a day
In microfinance, we normally offered different kind of products for different segments, group lending for the lowest income segment and more develop individual lending when we start to go up in the ladder. This is mainly due to the very different financing as well as financial literacy rate among both segments. The same needs to be applied to other businesses.

3. The Bop is very young, offering great potential for companies willing to invest.

According to this study more than 61% of people at the BOP are under 30 years old. Young people are much more open to new business models and new products especially those involving new technologies. This is a huge opportunities to make things different and engage them in a different way.

Once we start to work with the data more conclusions would be driven.
Ready to start?

Waiting for your comments! Here and @marialescorial

23
Jun

With all the hype around big data analytics, it’s easy to think that high-visibility Internet companies like Amazon and Netflix invented the idea of using customer data to drive sales. But one of the earliest efforts to leverage big data—and arguably the most successful yet—began nearly 20 years ago in Europe when the British supermarket chain Tesco partnered with the consumer data-mining firm, dunnhumby.

A key factor in Tesco’s U.K. retail domination involved sending customized promotional coupons to customers based on dunnhumby’s analysis of loyalty card data. In the U.S. supermarket chain Kroger followed a similar approach with dunnhumby and reaped the returns. Despite the onslaught of Walmart and unlike most of its competition, Kroger has seen dramatic and consistent growth in its market share of U.S. grocery sales. The Lesson learned by these precocious retail powerhouses? Keep it simple.

As the never-ending parade of new technology and marketing approaches continues, it pays to take stock of the additional lessons emerging in this data-driven era of serving customers:

Serve the unwanted customer. The customers companies want to avoid at all costs sometimes turn out to be the best ones to have. When it was much smaller, the very successful U.S. automotive insurance company Progressive discovered an interesting fact about the pool of drivers who had recently had accidents. Other companies did everything they could to avoid these drivers, either charging massively higher rates or turning them down completely when they could. But Progressive realized this risk class was not homogeneous and that although some were highly likely to have another accident, others in the pool were not. Progressive discovered it could predict those less likely to have another accident by using credit scores, allowing it to embrace this market subset by being able to determine the right premium for the risk. Progressive ultimately made a lot of money using this strategy cheap snapbacks hats.

Don’t hate your customer. “We need better customers,” is how hating the customer starts. The goal is typically higher-income consumers or, if business-to-business, building relationships with larger and more prestigious firms. But a “better customer” mentality leads to under-serving the core customer base and has infected large swaths of entire industries.

The airline industry provides a great example of the “better customer” trap. While chasing after elite frequent fliers and corporate accounts, it’s created a relatively expensive product with few benefits for the vast majority of fliers and an opportunity for ultra-discount carriers like Easyjet and Spirit Airlines. Today’s airlines face the choice of going down the path of an Easyjet or delivering more benefits to the majority of customers that justifies higher prices cheap snapabcks.

Whereas the U.S.-based gaming company Harrah’s, showed us the right way to go. By leveraging data from its customer loyalty program, Harrah’s targeted the under-served, mid-level gamblers and outperformed competitors that were focusing too much attention on whales—individual players wagering massive amounts of money. Yet even though virtually everyone in the gaming industry knows this story, companies continue to make the same mistakes. Recently in Atlantic City, for instance, a casino catering to mid- to lower-end gamblers lost large amounts of money on one whale after giving him better odds than everyone else.

Inspire employees first. Even before embracing customers, the company needs to embrace itself. Research done for the Harvard Business School MBA and Executive Education program in the late 1990’s showed that professional service firms that focused on internal talent and culture significantly outperformed those that did not.

Netflix, one of the great emerging brands today with its stock more than tripling in 2013, provides the latest example of the power of making talent and culture the number one priority. Case in point: the 127-slide PowerPoint presentation Netflix executives wrote on the subject went viral with more 5 million downloads cheap snapbacks.

Drive technology deeper. Embrace technology as a tool to track success. When Zurich Insurance rebranded in 2008, they realized the brand “needed to connect with customers digitally, physically and virtually” – and make a promise on how it would deliver to consumers. It embraced analytics by defining common global measurements of satisfaction and loyalty with the goal of strengthening customer retention, changing customer behavior and prioritizing investments[1]. With the captured data, Zurich was able to identify a number of areas of improvement in customer experience – including those that could be managed with smaller investments.

 

Keeping it simple. Embracing employees. Valuing all customers. Driving technology deeper to deliver an overall great customer experience. In this era of big data, these are some of the real lessons and opportunities for companies aspiring to become the next generation of brand leaders.

I look forward to your comments and experience.

Luis Rodriguez-Baptista and Tom Agan

 

[1] “How Zurich restructured 63 brands into one” – Geoffrey Precourt, WARC Event Report series 2011

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